1.Short title; amendment of
1986 Code; table of contents
(a)This Act may be cited as the Highway Reauthorization and Excise Tax Simplification Act
of 2005
.
(b)Except as otherwise expressly provided, whenever in
this Act an amendment or repeal is expressed in terms of an amendment to, or
repeal of, a section or other provision, the reference shall be considered to
be made to a section or other provision of the Internal Revenue Code of
1986.
(c)The table of contents for this Act is as follows:
Sec. 1. Short title; amendment of 1986 Code; table of
contents.
TITLE I—Trust Fund reauthorization
Sec. 101. Extension of highway-related taxes and trust
funds.
Sec. 102. Modification of adjustments of
apportionments.
TITLE II—Excise tax reform and simplification
Subtitle A—Highway excise taxes
Sec. 201. Modification of gas guzzler tax.
Subtitle B—Aquatic excise taxes
Sec. 211. Elimination of Aquatic Resources Trust Fund and
transformation of Sport Fish Restoration Account.
Sec. 212. Repeal of harbor maintenance tax on
exports.
Sec. 213. Cap on excise tax on certain fishing
equipment.
Subtitle C—Aerial excise taxes
Sec. 221. Clarification of excise tax exemptions for
agricultural aerial applicators and exemption for fixed-wing aircraft engaged
in forestry operations.
Sec. 222. Modification of rural airport definition.
Sec. 223. Exemption from taxes for transportation provided by
seaplanes.
Sec. 224. Certain sightseeing flights exempt from taxes on air
transportation.
Subtitle D—Taxes relating to alcohol
Sec. 231. Repeal of special occupational taxes on producers and
marketers of alcoholic beverages.
Sec. 232. Modification of limitation on rate of rum excise tax
cover over to Puerto Rico and Virgin Islands.
Sec. 233. Income tax credit for distilled spirits wholesalers
and for distilled spirits in control State bailment warehouses for costs of
carrying Federal excise taxes on bottled distilled spirits.
Sec. 234. Quarterly excise tax filing for small alcohol excise
taxpayers.
Subtitle E—Sport excise taxes
Sec. 241. Custom gunsmiths.
TITLE III—Miscellaneous provisions
Sec. 301. Motor Fuel Tax Enforcement Advisory
Commission.
Sec. 302. National Surface Transportation Infrastructure
Financing Commission.
Sec. 303. Expansion of Highway Trust Fund expenditure purposes
to include funding for studies of supplemental or alternative financing for the
Highway Trust Fund.
Sec. 304. Delta regional transportation plan.
Sec. 305. Build America Corporation.
Sec. 306. Increase in dollar limitation for qualified
transportation fringe benefits.
TITLE IV—Fuels-related technical corrections
Sec. 401. Fuels-related technical corrections.
TITLE V—Revenue offset provisions
Sec. 501. Treatment of contingent payment convertible debt
instruments.
Sec. 502. Frivolous tax submissions.
Sec. 503. Increase in certain criminal penalties.
Sec. 504. Doubling of certain penalties, fines, and interest on
underpayments related to certain offshore financial arrangements.
Sec. 505. Modification of interaction between subpart
F and passive foreign investment company
rules.
Sec. 506. Declaration by chief executive officer relating to
Federal annual corporate income tax return.
Sec. 507. Treasury regulations on foreign tax
credit.
<enum>I</enum><header>Trust Fund
reauthorization</header>
<section changed="added" id="IDF31C2DF235BE4ABA8E7C821E24E29409"><enum>101.</enum><header>Extension of
highway-related taxes and trust funds</header>
<subsection changed="added" id="ID44CDF3AFD7A442C89AA67D3059BD0662"><enum>(a)</enum><header>Extension of
taxes</header>
<paragraph changed="added" id="ID411527EB8ADD400FB2E7E3AB1A714A00"><enum>(1)</enum><header>In
general</header><text>The following provisions are each amended by striking
<quote>2005</quote> each place it appears and inserting
<quote>2011</quote>:</text>
<subparagraph changed="added" id="ID80558EE103B544028697AB47FEFF463A"><enum>(A)</enum><text>Section
4041(a)(1)(C)(iii)(I) (relating to rate of tax on certain buses).</text>
</subparagraph><subparagraph changed="added" id="IDD27264E096BB443EAFFDE99439CDABDB"><enum>(B)</enum><text>Section
4041(a)(2)(B) (relating to rate of tax on special motor fuels).</text>
</subparagraph><subparagraph changed="added" id="ID20EBBD146E124A7B843FC9313DEF3B9F"><enum>(C)</enum><text>Section
4041(m)(1) (relating to certain alcohol fuels).</text>
</subparagraph><subparagraph changed="added" id="IDB12FF6B7731A4701BE1BEC4E92052406"><enum>(D)</enum><text>Section 4051(c)
(relating to termination of tax on heavy trucks and trailers).</text>
</subparagraph><subparagraph changed="added" id="ID6DA95E5EA74C4AA9BF0AB0DAB6EAD5CC"><enum>(E)</enum><text>Section 4071(d)
(relating to termination of tax on tires).</text>
</subparagraph><subparagraph changed="added" id="ID0B2872B31C114887B70AC689CA471A72"><enum>(F)</enum><text>Section
4081(d)(1) (relating to termination of tax on gasoline, diesel fuel, and
kerosene).</text>
</subparagraph><subparagraph changed="added" id="ID6FC9F1C58B434EFEB0603DCF8DB03CB4"><enum>(G)</enum><text>Section 4481(f)
(relating to period tax in effect).</text>
</subparagraph><subparagraph changed="added" id="ID92BB2FF0211046BF9F224043E15E776A"><enum>(H)</enum><text>Section
4482(c)(4) (relating to taxable period).</text>
</subparagraph><subparagraph changed="added" id="ID42D7485487984CD9B9E190A01545975B"><enum>(I)</enum><text>Section 4482(d)
(relating to special rule for taxable period in which termination date
occurs).</text>
</subparagraph></paragraph><paragraph changed="added" id="IDB9033A8EEDCD4280B8DAA9B7F4858BBE"><enum>(2)</enum><header>Floor stocks
refunds</header><text>Section 6412(a)(1) (relating to floor stocks refunds) is
amended—</text>
<subparagraph changed="added" id="ID1C76077B84574951A04673971E9BEEF7"><enum>(A)</enum><text>by striking
<quote>2005</quote> each place it appears and inserting <quote>2011</quote>,
and</text>
</subparagraph><subparagraph changed="added" id="ID32FD3ACECEC84F448DDF7544614E446E"><enum>(B)</enum><text>by striking
<quote>2006</quote> each place it appears and inserting
<quote>2012</quote>.</text>
</subparagraph></paragraph></subsection><subsection changed="added" id="ID14214E2EE567474196B72C6B1E11554C"><enum>(b)</enum><header>Extension of
certain exemptions</header><text>The following provisions are each amended by
striking <quote>2005</quote> and inserting <quote>2011</quote>:</text>
<paragraph changed="added" id="ID4BC16D9B050E4D8DB4A4E95C838799D6"><enum>(1)</enum><text>Section 4221(a)
(relating to certain tax-free sales).</text>
</paragraph><paragraph changed="added" id="IDF12B3973BE4E4BD4A2EBE8FAD7D421E1"><enum>(2)</enum><text>Section 4483(h)
(relating to termination of exemptions for highway use tax).</text>
</paragraph></subsection><subsection changed="added" id="ID22DA80CB87E54F2E912E3DA35B1948FE"><enum>(c)</enum><header>Extension of
deposits into trust funds</header>
<paragraph changed="added" id="ID17D4901A774746E2976FA9DAE6F2F2D8"><enum>(1)</enum><header>In
general</header><text>Paragraphs (1) and (2) of subsection (b), and paragraphs
(2) and (3) of subsection (c), of section 9503 (relating to the Highway Trust
Fund) are each amended—</text>
<subparagraph changed="added" id="ID9E60577DF26342A7945BEAB6F4A1A8A6"><enum>(A)</enum><text>by striking
<quote>2005</quote> each place it appears and inserting <quote>2011</quote>,
and</text>
</subparagraph><subparagraph changed="added" id="IDF216FF78251F4F8CADBA9873C0A63BF8"><enum>(B)</enum><text>by striking
<quote>2006</quote> each place it appears and inserting
<quote>2012</quote>.</text>
</subparagraph></paragraph><paragraph changed="added" id="IDCB850996DCF84F909DD68C5198C2C505"><enum>(2)</enum><header>Motorboat and
small-engine fuel tax transfers</header>
<subparagraph changed="added" id="ID72DB923DD931489DB64F1AD1D9E480FA"><enum>(A)</enum><header>In
general</header><text>Paragraphs (4)(A)(i) and (5)(A) of section 9503(c) are
each amended by striking <quote>2005</quote> and inserting
<quote>2011</quote>.</text>
</subparagraph><subparagraph changed="added" id="ID64449CD5265949749B4667891012D612"><enum>(B)</enum><header>Conforming
amendments to land and water conservation fund</header><text>Section 201(b) of
the <act-name parsable-cite="LWCFA">Land and Water Conservation Fund Act of
1965</act-name> (16 U.S.C. 460l–11(b)) is amended—</text>
<clause changed="added" id="IDE719E26CDC294AAEAB626056BC98C3F4"><enum>(i)</enum><text>by striking
<quote>2003</quote> and inserting <quote>2009</quote>, and</text>
</clause><clause changed="added" id="ID3CA3F7255F4B486B982AE80B8BE3756B"><enum>(ii)</enum><text>by striking
<quote>2004</quote> each place it appears and inserting
<quote>2010</quote>.</text>
</clause></subparagraph></paragraph></subsection><subsection changed="added" id="ID2822EFEAB6364361A8503DA7D04EC814"><enum>(d)</enum><header>Extension and
expansion of expenditures from trust funds</header>
<paragraph changed="added" id="ID18CA9F4986124513AD157413A74464F7"><enum>(1)</enum><header>Highway Trust
Fund</header>
<subparagraph changed="added" id="ID1209D99DB1664842BC498DEF0AF88EC4"><enum>(A)</enum><header>Highway
account</header><text>Paragraph (1) of section 9503(c) is amended—</text>
<clause changed="added" id="ID8301F1D9443646739F8C68A846070502"><enum>(i)</enum><text>in the matter
before subparagraph (A), by striking <quote>June 1, 2005</quote> and inserting
<quote>October 1, 2009</quote>,</text>
</clause><clause changed="added" id="ID95B0F7E50F0F4F2DBEBC0053003A98E2"><enum>(ii)</enum><text>by striking
<quote>or</quote> at the end of subparagraph (J),</text>
</clause><clause changed="added" id="IDF317D422B4F444668C4218C42E9F699C"><enum>(iii)</enum><text>by striking the
period at the end of subparagraph (K) and inserting <quote>, or</quote>,</text>
</clause><clause changed="added" id="ID517461214CC54F65A6FD553CFD5BDF2C"><enum>(iv)</enum><text>by inserting
after subparagraph (K) the following new subparagraph:</text>
<quoted-block id="ID455BC9A61BAE4FA99D279DC2E5BE27D7">
<subparagraph changed="added" id="IDC0DC3F3CA267436B8359A6E13D38272C"><enum>(L)</enum><text>authorized to be
paid out of the Highway Trust Fund under the Safe, Accountable, Flexible, and
Efficient Transportation Equity Act of
2005.</text>
</subparagraph><after-quoted-block>,
and</after-quoted-block></quoted-block>
</clause><clause changed="added" id="ID949569221F334C67BCD96CECF95644EF"><enum>(v)</enum><text>in the matter
after subparagraph (L), as added by clause (iv), by striking <quote>Surface
Transportation Extension Act of 2004, Part V</quote> and inserting <quote>Safe,
Accountable, Flexible, and Efficient Transportation Equity Act of
2005</quote>.</text>
</clause></subparagraph><subparagraph changed="added" id="ID189BCEAB7EE84AF8BABDFCADE677D3DC"><enum>(B)</enum><header>Mass transit
account</header><text>Paragraph (3) of section 9503(e) is amended—</text>
<clause changed="added" id="IDBDA30926C5554CE8A24FB32EE7B8815F"><enum>(i)</enum><text>in the matter
before subparagraph (A), by striking <quote>June 1, 2005</quote> and inserting
<quote>October 1, 2009</quote>,</text>
</clause><clause changed="added" id="IDA0B061DF1441487F964BAC1512BF5C68"><enum>(ii)</enum><text>by striking
<quote>or</quote> at the end of subparagraph (H),</text>
</clause><clause changed="added" id="IDDC50D041CF974841AADADFCE51995268"><enum>(iii)</enum><text>by inserting
<quote>or</quote> at the end of subparagraph (I),</text>
</clause><clause changed="added" id="ID3DEE4061C81640889E2CB875FBD2D077"><enum>(iv)</enum><text>by inserting
after subparagraph (I) the following new subparagraph:</text>
<quoted-block id="ID35236E2F815641B99A014D0CB2A8A7CD">
<subparagraph changed="added" id="ID7C99AA913B234EF6B72BC6F5A03F69C6"><enum>(J)</enum><text>Safe,
Accountable, Flexible, and Efficient Transportation Equity Act of
2005,</text>
</subparagraph><after-quoted-block>,
and</after-quoted-block></quoted-block>
</clause><clause changed="added" id="ID675016EFBD1041A4ACD1A18DFE4B3012"><enum>(v)</enum><text>in the matter
after subparagraph (J), as added by clause (iv), by striking <quote>Surface
Transportation Extension Act of 2004, Part V</quote> and inserting <quote>Safe,
Accountable, Flexible, and Efficient Transportation Equity Act of
2005</quote>.</text>
</clause></subparagraph><subparagraph changed="added" id="IDF278185658944F98882F20BE75FA14C5"><enum>(C)</enum><header>Exception to
limitation on transfers</header><text>Subparagraph (B) of section 9503(b)(6) is
amended by striking <quote>June 1, 2005</quote> and inserting <quote>October 1,
2009</quote>.</text>
</subparagraph></paragraph><paragraph changed="added" id="IDE2EEED664C434AC481F093930E7FAD65"><enum>(2)</enum><header>Aquatic
resources trust fund</header>
<subparagraph changed="added" id="ID7004A0C829324AA59DAB835E3FCC3D63"><enum>(A)</enum><header>Sport fish
restoration account</header><text>Paragraph (2) of section 9504(b) is amended
by striking <quote>Surface Transportation Extension Act of 2004, Part V</quote>
each place it appears and inserting <quote>Safe, Accountable, Flexible, and
Efficient Transportation Equity Act of 2005</quote> .</text>
</subparagraph><subparagraph changed="added" id="IDAB66E56AED894C94B17E33ED0F39A574"><enum>(B)</enum><header>Exception to
limitation on transfers</header><text>Paragraph (2) of section 9504(d) is
amended by striking <quote>June 1, 2005</quote> and inserting <quote>October 1,
2009</quote>.</text>
</subparagraph></paragraph></subsection><subsection changed="added" commented="no" display-inline="no-display-inline" id="ID79EDB830A0474F6B93C94B18F9B77532"><enum>(e)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on the
date of the enactment of this Act.</text>
</subsection></section><section id="IDE329D1A5FBF443548BE6627476EB8C51"><enum>102.</enum><header>Modification
of adjustments of apportionments</header>
<subsection id="IDA2B57B7F53C84467A8D1ECE807773A06"><enum>(a)</enum><header>In
general</header><text>Section 9503(d) (relating to adjustments for
apportionments) is amended—</text>
<paragraph id="ID3757CB51EAEB4107825DFE9D6A8DD1A4"><enum>(1)</enum><text>by striking
<quote>24-month</quote> in paragraph (1)(B) and inserting
<quote>48-month</quote>, and</text>
</paragraph><paragraph id="ID0378561FEB7849A68311892355C22A47"><enum>(2)</enum><text>by striking
<quote><header-in-text level="paragraph" style="OLC">2 years'
</header-in-text></quote> in the heading for paragraph (3) and inserting
<quote><header-in-text level="paragraph" style="OLC">4 years'
</header-in-text></quote>.</text>
</paragraph></subsection><subsection id="IDF2FE5FF4D75941119DFF20EB232A87F2"><enum>(b)</enum><header>Measurement of
net highway receipts</header><text>Section 9503(d) is amended by redesignating
paragraph (6) as paragraph (7) and by inserting after paragraph (5) the
following new paragraph:</text>
<quoted-block id="ID9D60CA2A40284EA593A82ED621FA85B6">
<paragraph id="IDDD9510EBC4DE4802B8F5225957DEF867"><enum>(6)</enum><header>Measurement of
net highway receipts</header><text>For purposes of making any estimate under
paragraph (1) of net highway receipts for periods ending after the date
specified in subsection (b)(1), the Secretary shall treat—</text>
<subparagraph id="ID8A0F550A29F641EF8DEAD8B020F0D574"><enum>(A)</enum><text>each expiring
provision of subsection (b) which is related to appropriations or transfers to
the Highway Trust Fund to have been extended through the end of the 48-month
period referred to in paragraph (1)(B), and</text>
</subparagraph><subparagraph id="ID405D6E629A3E4CD29EE7BEA9B7155251"><enum>(B)</enum><text>with respect to
each tax imposed under the sections referred to in subsection (b)(1), the rate
of such tax during the 48-month period referred to in paragraph (1)(B) to be
the same as the rate of such tax as in effect on the date of such
estimate.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDDCCD8B6F5D2F404AAB0D9583E6F1295D"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on the
date of the enactment of this Act.</text>
</subsection></section><enum>II</enum><header>Excise tax
reform and simplification</header>
<subtitle id="ID23984DF94EF84ECE8CF8F1A3FC579DD4"><enum>A</enum><header>Highway excise
taxes</header>
<section id="id336D56FA21B74C4BA713C400B577F61C"><enum>201.</enum><header>Modification
of gas guzzler tax</header>
<subsection id="ID62C1EA3BC7C24598A2C6722C9F41E274"><enum>(a)</enum><header>Uniform
application of tax</header><text>Subparagraph (A) of section 4064(b)(1)
(defining automobile) is amended by striking the second sentence.</text>
</subsection><subsection id="ID5EEAF13033EB4F01AA9010B36A92D258"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall take effect on
October 1, 2005.</text>
</subsection></section></subtitle><subtitle id="IDC861CBE3533D4DE0A7DBE09A3248E032"><enum>B</enum><header>Aquatic excise
taxes</header>
<section id="id752C6CE31BAC42339CB2D65E2A4F0B37"><enum>211.</enum><header>Elimination of
Aquatic Resources Trust Fund and transformation of Sport Fish Restoration
Account</header>
<subsection id="IDD1FC64B149A54CF0ABFE0CFAD16EC1A7"><enum>(a)</enum><header>Simplification
of funding for Boat Safety Account</header>
<paragraph id="ID495C6C1C4C0746BE80CCC4722F3791CD"><enum>(1)</enum><header>In
general</header><text>Section 9503(c)(4) (relating to transfers from Trust Fund
for motorboat fuel taxes) is amended—</text>
<subparagraph id="IDB3C6AE92A5D846F39AB966E98987A9B0"><enum>(A)</enum><text>by striking
<quote>Fund—</quote> and all that follows through <quote>shall be
transferred</quote> in subparagraph (B) and inserting <quote>Fund which is
attributable to motorboat fuel taxes shall be transferred</quote>,</text>
</subparagraph><subparagraph id="ID0DB1504FCF7547A8BA9095C2F1E5F178"><enum>(B)</enum><text>by striking
subparagraph (A), and</text>
</subparagraph><subparagraph id="ID20E02E0BCC1D4909ADAB90FCC982643E"><enum>(C)</enum><text>by redesignating
subparagraphs (B) through (E) as subparagraphs (A) through (D),
respectively.</text>
</subparagraph></paragraph><paragraph id="IDA9FFB4FA92754638BFA4EEFCA09D511E"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph id="ID62BF56A844C8488BA4AF01CC99451420"><enum>(A)</enum><text>Subparagraph (B)
of section 9503(c)(4), as redesignated by paragraph (1)(C), is amended—</text>
<clause id="ID0BCCA65B6CAD4337A5FC69C6BE86FCC7"><enum>(i)</enum><text>by
striking <quote><header-in-text level="subsection" style="OLC">account</header-in-text></quote> in the heading and inserting
<quote><header-in-text level="subsection" style="OLC">and boating trust
fund</header-in-text></quote>,</text>
</clause><clause id="ID50B5CE37B7C4426D9DF33D33724AC509"><enum>(ii)</enum><text>by
striking <quote>or (B)</quote> in clause (ii), and</text>
</clause><clause id="ID6667E4F82FCD4E2097B26048E9D6234B"><enum>(iii)</enum><text>by striking
<quote>account in the Aquatic Resources</quote> and inserting <quote>and
Boating</quote>.</text>
</clause></subparagraph><subparagraph id="ID7FD4CAA019AA4BE388D26043F04F11A0"><enum>(B)</enum><text>Paragraph (5) of
section 9503(c) is amended by striking <quote>Account in the Aquatic
Resources</quote> in subparagraph (A) and inserting <quote>and
Boating</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="ID50AD6129B92D44E4A9822B4D1B3E7D4A"><enum>(b)</enum><header>Merging of
accounts</header>
<paragraph id="IDA14FAC9508374661B89C81EBDA572E5F"><enum>(1)</enum><header>In
general</header><text>Subsection (a) of section 9504 is amended to read as
follows:</text>
<quoted-block id="ID9EE26A87FDBD41BDA9A72642A5C5D934">
<subsection id="ID6B2D7D41A6504CB9AE1BC4011E079488"><enum>(a)</enum><header>Creation of
Trust Fund</header><text>There is hereby established in the Treasury of the
United States a trust fund to be known as the <quote>Sport Fish Restoration and
Boating Trust Fund</quote>. Such Trust Fund shall consist of such amounts as
may be appropriated, credited, or paid to it as provided in this section,
section 9503(c)(4), section 9503(c)(5), or section
9602(b).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID8B565191D9B64878811CD6351856D76F"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph id="ID0ADFB7333162458CBA9C3CB075CB83C1"><enum>(A)</enum><text>Subsection (b) of
section 9504, as amended by section 101 of this Act, is amended—</text>
<clause id="IDC7FF58B2990D4887BFC3B9CB9D241EF8"><enum>(i)</enum><text>by
striking <quote><header-in-text level="subsection" style="OLC">Account</header-in-text></quote> in the heading and inserting
<quote><header-in-text level="subsection" style="OLC">and Boating Trust
Fund</header-in-text></quote>,</text>
</clause><clause id="ID70521AFD785B4318B2608336D3ACFA2D"><enum>(ii)</enum><text>by
striking <quote>Account</quote> both places it appears in paragraphs (1) and
(2) and inserting <quote>and Boating Trust Fund</quote>, and</text>
</clause><clause id="IDF05629E516D2415A83CBEA0FA353D77D"><enum>(iii)</enum><text>by striking
<quote><header-in-text level="paragraph" style="OLC">account</header-in-text></quote> both places it appears in the
headings for paragraphs (1) and (2) and inserting <quote><header-in-text level="paragraph" style="OLC">and boating trust
fund</header-in-text></quote>.</text>
</clause></subparagraph><subparagraph id="IDBA22EAAD10AE4828888E7D5155BBF2F3"><enum>(B)</enum><text>Subsection (d) of
section 9504, as amended by section 101 of this Act, is amended—</text>
<clause id="IDD1738DE0333E45DE95C2373F0F88FFBF"><enum>(i)</enum><text>by
striking “<header-in-text level="subsection" style="OLC">Aquatic
Resources</header-in-text>” in the heading,</text>
</clause><clause id="ID8C26266772C44BCFA738A73FBAB6F1AB"><enum>(ii)</enum><text>by
striking <quote>any Account in the Aquatic Resources</quote> in paragraph (1)
and inserting <quote>the Sports Fish Restoration and Boating</quote>,
and</text>
</clause><clause id="IDF2D40F0A45F34282B310722DBCF5BA65"><enum>(iii)</enum><text>by striking
<quote>any such Account</quote> in paragraph (1) and inserting <quote>such
Trust Fund</quote>.</text>
</clause></subparagraph><subparagraph id="IDE018DF71039849CC9E815D31AC4D195A"><enum>(C)</enum><text>Subsection (e) of
section 9504 is amended by striking <quote>Boat Safety Account and Sport Fish
Restoration Account</quote> and inserting <quote>Sport Fish Restoration and
Boating Trust Fund</quote>.</text>
</subparagraph><subparagraph id="IDB53DDC6E32B14A71B95E3B8FC3B8ACFA"><enum>(D)</enum><text>Section 9504 is
amended by striking <quote><header-in-text level="section" style="OLC">aquatic
resources</header-in-text></quote> in the heading and inserting<header-in-text level="section" style="OLC"></header-in-text><quote><header-in-text level="section" style="OLC">sport fish restoration and
boating</header-in-text></quote>.</text>
</subparagraph><subparagraph id="ID859855C174B94F12B769AA98CEAD1D7C"><enum>(E)</enum><text>The item relating
to section 9504 in the table of sections for subchapter A of chapter 98 is
amended by striking <quote>aquatic resources</quote> and inserting <quote>sport
fish restoration and boating</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="ID8DE4780F67344F76947DA39B2ECE5BCA"><enum>(c)</enum><header>Phaseout of
Boat Safety Account</header><text>Subsection (c) of section 9504 is amended to
read as follows:</text>
<quoted-block id="ID7FA1A6C2C4284872ACE3B57E1D418214">
<subsection id="ID956F359B217A4F748989161A3E9F9D58"><enum>(c)</enum><header>Expenditures
from Boat Safety Account</header><text>Amounts remaining in the Boat Safety
Account on October 1, 2005, and amounts thereafter credited to the Account
under section 9602(b), shall be available, without further appropriation, for
making expenditures before October 1, 2010, to carry out the purposes of
section 15 of the Dingell-Johnson Sport Fish Restoration Act (as in effect on
the date of the enactment of the Safe, Accountable, Flexible, and Efficient
Transportation Equity Act of 2005). For purposes of section 9602, the Boat
Safety Account shall be treated as a Trust Fund established by this
subchapter.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID267F5500703F4837BB502470C1CF8D85"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on
October 1, 2005.</text>
</subsection></section><section id="IDD5702B3F9EB74E038F0F67C82DC525AB"><enum>212.</enum><header>Repeal of
harbor maintenance tax on exports</header>
<subsection id="ID1FE4BFB9EAF84295AB19DB5E7326ED52"><enum>(a)</enum><header>In
general</header><text>Subsection (d) of section 4462 (relating to definitions
and special rules) is amended to read as follows:</text>
<quoted-block id="ID6C7257E6D8294AE389507D8273E5A4A5">
<subsection id="ID658A2F00BE8543928B39FE30D52D0F25"><enum>(d)</enum><header>Nonapplicability
of tax to exports</header><text>The tax imposed by section 4461(a) shall not
apply to any port use with respect to any commercial cargo to be exported from
the United
States.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDF345F1FC5685417E952600FD05A68794"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="ID85125D8D4F334D46BBDD1E2BC4F7A5C9"><enum>(1)</enum><text>Section
4461(c)(1) is amended by adding <quote>or</quote> at the end of subparagraph
(A), by striking subparagraph (B), and by redesignating subparagraph (C) as
subparagraph (B).</text>
</paragraph><paragraph id="ID1E11FBEC814F4F3AABD924CEC1897856"><enum>(2)</enum><text>Section
4461(c)(2) is amended by striking <quote>imposed—</quote> and all that follows
through <quote>in any other case,</quote> and inserting
<quote>imposed</quote>.</text>
</paragraph></subsection><subsection id="ID7E9F468D180B4130BE975AF129BCF0F0"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect
before, on, and after the date of the enactment of this Act.</text>
</subsection></section><section id="IDEF44DC5CF9E3461E8E49AAEBAB7A0E8B"><enum>213.</enum><header>Cap on excise
tax on certain fishing equipment</header>
<subsection id="ID4057FD0C787C46DF8473629245499811"><enum>(a)</enum><header>In
general</header><text>Paragraph (1) of section 4161(a) (relating to sport
fishing equipment) is amended to read as follows:</text>
<quoted-block id="IDEE5D0CFE50854D7684AE5EC38146C121">
<paragraph id="ID15BB8F35767E4B61AA244E82D361BBCD"><enum>(1)</enum><header>Imposition of
tax</header>
<subparagraph id="ID4C83D4FFCD5941E5B58A087D0749EE80"><enum>(A)</enum><header>In
general</header><text>There is hereby imposed on the sale of any article of
sport fishing equipment by the manufacturer, producer, or importer a tax equal
to 10 percent of the price for which so sold.</text>
</subparagraph><subparagraph id="ID7E3C831FB3E04503B31C986D79FAB40E"><enum>(B)</enum><header>Limitation on
tax imposed on fishing rods and poles</header><text>The tax imposed by
subparagraph (A) on any fishing rod or pole shall not exceed
$10.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDB051F1C2002F49EAAB7B71D5348C92BA"><enum>(b)</enum><header>Conforming
amendments</header><text>Section 4161(a)(2) is amended by striking
<quote>paragraph (1)</quote> both places it appears and inserting
<quote>paragraph (1)(A)</quote>.</text>
</subsection><subsection id="IDCB60E199BE0F4BF689D5200AD3AF62A8"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to articles
sold by the manufacturer, producer, or importer after September 30,
2005.</text>
</subsection></section></subtitle><subtitle id="ID4AB20718CA3E4213B1455F197B5DCB19"><enum>C</enum><header>Aerial excise
taxes</header>
<section id="ID12C57369029F4ABA9D004A52BB16E74B"><enum>221.</enum><header>Clarification
of excise tax exemptions for agricultural aerial applicators and exemption for
fixed-wing aircraft engaged in forestry operations</header>
<subsection id="ID1EA192304E9347059969083D77D08411"><enum>(a)</enum><header>No waiver by
farm owner, tenant, or operator necessary</header><text>Subparagraph (B) of
section 6420(c)(4) (relating to certain farming use other than by owner, etc.)
is amended to read as follows:</text>
<quoted-block id="IDE94D33A28E1443E3A354F8C86EAC3FC2">
<subparagraph id="IDD115A5D9E2C64F96844ED26B03AD8E0A"><enum>(B)</enum><text>if the person so
using the gasoline is an aerial or other applicator of fertilizers or other
substances and is the ultimate purchaser of the gasoline, then subparagraph (A)
of this paragraph shall not apply and the aerial or other applicator shall be
treated as having used such gasoline on a farm for farming
purposes.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID5B6899933D314CD68E4D7601FDECBC40"><enum>(b)</enum><header>Exemption
includes fuel used between airfield and farm</header><text>Section 6420(c)(4),
as amended by subsection (a), is amended by adding at the end the following new
flush sentence:</text>
<quoted-block display-inline="no-display-inline" id="idB003DD6DF1AA4B87B9A5F8AD4F2C20BC" style="OLC">
<quoted-block-continuation-text quoted-block-continuation-text-level="paragraph">In the
case of an aerial applicator, gasoline shall be treated as used on a farm for
farming purposes if the gasoline is used for the direct flight between the
airfield and 1 or more
farms.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDEC3A3E9711A94327B993F38CFC5B4ADF"><enum>(c)</enum><header>Exemption from
tax on air Transportation of persons for forestry purposes extended to
Fixed-Wing aircraft</header><text>Subsection (f) of section 4261 (relating to
tax on air transportation of persons) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="IDB8D176EAA9624062A5DBA048B471742E" style="OLC">
<subsection id="ID86A7F517826841BD888ED1540642904B"><enum>(f)</enum><header>Exemption for
certain uses</header><text>No tax shall be imposed under subsection (a) or (b)
on air transportation—</text>
<paragraph id="IDDE5CD658F447451EAB6676078C04D56B"><enum>(1)</enum><text>by helicopter for
the purpose of transporting individuals, equipment, or supplies in the
exploration for, or the development or removal of, hard minerals, oil, or gas,
or</text>
</paragraph><paragraph id="IDA1DEB63D948D4C909B7BEFAA4B229B09"><enum>(2)</enum><text>by helicopter or
by fixed-wing aircraft for the purpose of the planting, cultivation, cutting,
or transportation of, or caring for, trees (including logging
operations),</text>
</paragraph><continuation-text continuation-text-level="subsection">but only
if the helicopter or fixed-wing aircraft does not take off from, or land at, a
facility eligible for assistance under the Airport and Airway Development Act
of 1970, or otherwise use services provided pursuant to section 44509 or
44913(b) or subchapter I of chapter 471 of title 49, United States Code, during
such use. In the case of helicopter transportation described in paragraph (1),
this subsection shall be applied by treating each flight segment as a distinct
flight.</continuation-text></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID96D98DEFE1454799A34DF30AFD03CAE3"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to fuel use
or air transportation after September 30, 2005.</text>
</subsection></section><section id="ID436D43D7C4D64208A77251B83A46AEE1"><enum>222.</enum><header>Modification
of rural airport definition</header>
<subsection id="ID6A48F06B2937448FBD4DDAE05204C26C"><enum>(a)</enum><header>In
general</header><text>Section 4261(e)(1)(B) (defining rural airport) is
amended—</text>
<paragraph id="IDEB5D125D5DCB4432ADFBC27A0BA41C53"><enum>(1)</enum><text>by inserting
<quote>(in the case of any airport described in clause (ii)(III), on flight
segments of at least 100 miles)</quote> after <quote>by air</quote> in clause
(i), and</text>
</paragraph><paragraph id="ID3DB71AC2380D4B2C81687BA12030070E"><enum>(2)</enum><text>by striking
<quote>or</quote> at the end of subclause (I) of clause (ii), by striking the
period at the end of subclause (II) of clause (ii) and inserting <quote>,
or</quote>, and by adding at the end of clause (ii) the following new
subclause:</text>
<quoted-block id="IDCAA66D75212041EE86E8091F477ABE19">
<subclause id="ID5F6490D7F5E64F55820F6A391BC8138E"><enum>(III)</enum><text>is not
connected by paved roads to another
airport.</text>
</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="IDD518B4C3D64946D098896E5E3D3CE22C"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on
October 1, 2005.</text>
</subsection></section><section id="ID188C9D536F9B4176981D61DABE8D935B"><enum>223.</enum><header>Exemption from
taxes for transportation provided by seaplanes</header>
<subsection id="ID3B718EC0FDF646F89E512A6FF4BB64AC"><enum>(a)</enum><header>In
general</header><text>Section 4261 (relating to imposition of tax) is amended
by redesignating subsection (i) as subsection (j) and by inserting after
subsection (h) the following new subsection:</text>
<quoted-block id="IDA8325B2D417C4768B6CA335C40E371DA">
<subsection id="IDF6C44374F6F8461C8A44337DB8897F54"><enum>(i)</enum><header>Exemption for
seaplanes</header><text>No tax shall be imposed by this section or section 4271
on any air transportation by a seaplane with respect to any segment consisting
of a takeoff from, and a landing on, water, but only if the places at which
such takeoff and landing occur have not received and are not receiving
financial assistance from the Airport and Airways Trust
Fund.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID30813E3EAB564CE991135B349922F49E"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
transportation beginning after September 30, 2005.</text>
</subsection></section><section id="IDA4A0CA8B7DFE4C689262B4BAC884814D"><enum>224.</enum><header>Certain
sightseeing flights exempt from taxes on air transportation</header>
<subsection id="ID54EBEEF7C83046FEB9EFB36E7C9BEDEE"><enum>(a)</enum><header>In
general</header><text>Section 4281 (relating to small aircraft on
nonestablished lines) is amended by adding at the end the following new
sentence: <quote>For purposes of this section, an aircraft shall not be
considered as operated on an established line at any time during which such
aircraft is being operated on a flight the sole purpose of which is
sightseeing.</quote>.</text>
</subsection><subsection id="IDBD555DE0F3A14F6EBAE7305D59FFAA9D"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply with respect
to transportation beginning after September 30, 2005, but shall not apply to
any amount paid before such date for such transportation.</text>
</subsection></section></subtitle><subtitle id="IDEA6D754B38974277B121D63073FED5E5"><enum>D</enum><header>Taxes relating to
alcohol</header>
<section id="IDFA0BE1DE5B814D7A984C7EC00E04898E"><enum>231.</enum><header>Repeal of
special occupational taxes on producers and marketers of alcoholic
beverages</header>
<subsection id="IDA976BC80D4C74C3F8DEECB29FED76A54"><enum>(a)</enum><header>Repeal of
occupational taxes</header>
<paragraph id="ID606436386A7D47DFB44555D14AAE7D64"><enum>(1)</enum><header>In
general</header><text>The following provisions of part II of subchapter A of
chapter 51 (relating to occupational taxes) are hereby repealed:</text>
<subparagraph id="ID22FF2433614A447BA6DA72ACBDAE1B83"><enum>(A)</enum><text>Subpart A
(relating to proprietors of distilled spirits plants, bonded wine cellars,
etc.).</text>
</subparagraph><subparagraph id="IDB2F82DCBAA7047F1AA694C918BFC06FA"><enum>(B)</enum><text>Subpart B
(relating to brewer).</text>
</subparagraph><subparagraph id="ID0FD393823787446CADB927744ADE35E7"><enum>(C)</enum><text>Subpart D
(relating to wholesale dealers) (other than sections 5114 and 5116).</text>
</subparagraph><subparagraph id="IDA1A7CF7934734746A1331FC5FBABA758"><enum>(D)</enum><text>Subpart E
(relating to retail dealers) (other than section 5124).</text>
</subparagraph><subparagraph id="ID64B7F873D2D84632B07CDCA84A9112AC"><enum>(E)</enum><text>Subpart G
(relating to general provisions) (other than sections 5142, 5143, 5145, and
5146).</text>
</subparagraph></paragraph><paragraph id="IDC8E1272E6880429F999C8016D7A4FFA4"><enum>(2)</enum><header>Nonbeverage
domestic drawback</header><text>Section 5131 is amended by striking <quote>, on
payment of a special tax per annum,</quote>.</text>
</paragraph><paragraph id="IDAC16B419A1C94EA9B39C964991C39E6C"><enum>(3)</enum><header>Industrial use
of distilled spirits</header><text>Section 5276 is hereby repealed.</text>
</paragraph></subsection><subsection id="IDA8F32E37D8F949A4B2DB0374808649F2"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="ID13E4CC7C50BB4B5886D81F2D302E8851"><enum>(1)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="ID3F2752E7210446F8890DE26B97156B21"><enum>(A)</enum><text>The heading for part II
of subchapter A of chapter 51 and the table of subparts for such part are
amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id811447453C5C49F79388F6B27AA94AB8" style="OLC">
<part id="ID717FBD53C0CC430DB25455594DB5EDDD"><enum>II</enum><header>Miscellaneous
provisions</header>
<toc>
<toc-entry level="section">Subpart A. Manufacturers of
stills.</toc-entry>
<toc-entry level="section">Subpart B. Nonbeverage domestic drawback
claimants.</toc-entry>
<toc-entry level="section">Subpart C. Recordkeeping and
registration by dealers.</toc-entry>
<toc-entry level="section">Subpart D. Other provisions.</toc-entry>
</toc>
</part><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="ID2EB67F6FEFE94883AA71EC33E08BCA4D" indent="up1"><enum>(B)</enum><text>The table of parts for such subchapter
A is amended by striking the item relating to part II and inserting the
following new item:</text>
<quoted-block display-inline="no-display-inline" id="idD041641DE99348A2AEB5A0A6FC5E3CEE" style="OLC">
<toc>
<toc-entry level="section">Part II. Miscellaneous
provisions.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="ID137278722E0446DF87A30C753A69BE24"><enum>(2)</enum><text>Subpart C of part
II of such subchapter (relating to manufacturers of stills) is redesignated as
subpart A.</text>
</paragraph><paragraph id="ID5F7782B16B904CECB11F5E86009D6E88"><enum>(3)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="IDCBC8F97573D44684AF65EB124E48D9EA"><enum>(A)</enum><text>Subpart F of such part
II (relating to nonbeverage domestic drawback claimants) is redesignated as
subpart B and sections 5131 through 5134 are redesignated as sections 5111
through 5114, respectively.</text>
</subparagraph><subparagraph id="ID0AAC457F54A04EAA883010A82CFB061B" indent="up1"><enum>(B)</enum><text>The table of sections for such subpart
B, as so redesignated, is amended—</text>
<clause id="IDF8F45856F31C40CE88BFCE59E4CD12CB"><enum>(i)</enum><text>by redesignating the items relating
to sections 5131 through 5134 as relating to sections 5111 through 5114,
respectively, and</text>
</clause><clause id="ID9CA0E41D0E9742DCA5AC66D121E43E52"><enum>(ii)</enum><text>by striking <quote>and rate of
tax</quote> in the item relating to section 5111, as so redesignated.</text>
</clause></subparagraph><subparagraph id="IDF048C2F89B9646768855329E7E892EB3" indent="up1"><enum>(C)</enum><text>Section 5111, as redesignated by
subparagraph (A), is amended—</text>
<clause id="ID56C55EC28B6D445BA650A4E98896BE44"><enum>(i)</enum><text>by striking
<quote><header-in-text><enum-in-header><header-in-text level="section">and rate
of tax</header-in-text></enum-in-header></header-in-text></quote> in the
section heading,</text>
</clause><clause id="ID4567D1A270064E17A4979E8FBDBB4CE3"><enum>(ii)</enum><text>by striking the subsection heading
for subsection (a), and</text>
</clause><clause id="IDA081188092E34A9B9E247159BE98E99C"><enum>(iii)</enum><text>by striking subsection
(b).</text>
</clause></subparagraph></paragraph><paragraph id="IDCF874F0FDFFC46C8859BA76C90AD6ED4"><enum>(4)</enum><text>Part II of
subchapter A of chapter 51 is amended by adding after subpart B, as
redesignated by paragraph (3), the following new subpart:</text>
<quoted-block display-inline="no-display-inline" id="id20916FEABA0F4EB88A4042987965E79F" style="OLC">
<subpart id="IDBC5D4C48C6B74BB5AB5772AD519C9A4C"><enum>C</enum><header>Recordkeeping and
registration by dealers</header>
<toc>
<toc-entry idref="ID6D4002910B89479ABBED529CCA9E88BD" level="section">Sec. 5121. Recordkeeping by wholesale dealers.</toc-entry>
<toc-entry idref="ID61F4CEF07EA94673AF0E6769EC7C38E3" level="section">Sec. 5122. Recordkeeping by retail dealers.</toc-entry>
<toc-entry level="section">Sec. 5123. Preservation and inspection
of records, and entry of premises for inspection.</toc-entry>
<toc-entry idref="idF90A80E1C55C4DA3A1EC055EE47A96AD" level="section">Sec. 5124. Registration by dealers.</toc-entry>
</toc>
</subpart><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID943C0BE1411D4D949F630B9380F7617D"><enum>(5)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="ID5664F0C8E85B4215AC4F96808730601F"><enum>(A)</enum><text>Section 5114 (relating
to records) is moved to subpart C of such part II and inserted after the table
of sections for such subpart.</text>
</subparagraph><subparagraph id="IDB9627BE4CCC0434B9EA1B4427730C5E9" indent="up1"><enum>(B)</enum><text>Section 5114 is amended—</text>
<clause id="ID3BB5073539844DCAAB9B5A10B1ED6A3F"><enum>(i)</enum><text>by striking the section heading and
inserting the following new heading:</text>
<quoted-block display-inline="no-display-inline" id="idD41C0012DCAF4F4AB8579DD93FB4C824" style="OLC">
<section id="ID6D4002910B89479ABBED529CCA9E88BD"><enum>5121.</enum><header>Recordkeeping
by wholesale
dealers</header>
</section><after-quoted-block>,</after-quoted-block></quoted-block>
</clause><continuation-text continuation-text-level="clause" indent="subparagraph">and</continuation-text><clause id="ID8F48DACF81E642B19EB303CD482B4993" indent="up1"><enum>(ii)</enum><text>by redesignating subsection (c) as
subsection (d) and by inserting after subsection (b) the following new
subsection:</text>
<quoted-block id="IDA07C3A53F9CE428CBC93AD3D3C9BC3D9">
<subsection id="ID5424AF149C4747B1BA2B5A57AFDB6BAB"><enum>(c)</enum><header>Wholesale
dealers</header><text>For purposes of this part—</text>
<paragraph id="ID285E7AD075E040CFB3E4A9C05CDC421D"><enum>(1)</enum><header>Wholesale
dealer in liquors</header><text>The term <term>wholesale dealer in
liquors</term> means any dealer (other than a wholesale dealer in beer) who
sells, or offers for sale, distilled spirits, wines, or beer, to another
dealer.</text>
</paragraph><paragraph id="ID1EBF6C4C875B48D4B62D8134F74B6BDF"><enum>(2)</enum><header>Wholesale
dealer in beer</header><text>The term <term>wholesale dealer in beer</term>
means any dealer who sells, or offers for sale, beer, but not distilled spirits
or wines, to another dealer.</text>
</paragraph><paragraph id="ID6CED933B3834481AB84718F27024BC56"><enum>(3)</enum><header>Dealer</header><text>The
term <term>dealer</term> means any person who sells, or offers for sale, any
distilled spirits, wines, or beer.</text>
</paragraph><paragraph id="ID19F6A1DA06EC43848A987C341FBD0081"><enum>(4)</enum><header>Presumption in
case of sale of 20 wine gallons or more</header><text>The sale, or offer for
sale, of distilled spirits, wines, or beer, in quantities of 20 wine gallons or
more to the same person at the same time, shall be presumptive evidence that
the person making such sale, or offer for sale, is engaged in or carrying on
the business of a wholesale dealer in liquors or a wholesale dealer in beer, as
the case may be. Such presumption may be overcome by evidence satisfactorily
showing that such sale, or offer for sale, was made to a person other than a
dealer.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="IDFB9F4AD5F5BC4460948422978A44B3DF" indent="up1"><enum>(C)</enum><text>Paragraph (3) of section 5121(d), as
so redesignated, is amended by striking <quote>section 5146</quote> and
inserting <quote>section 5123</quote>.</text>
</subparagraph></paragraph><paragraph id="ID1480FE637D73456594FB83ABF61A8E69"><enum>(6)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="ID9439483DAF0242918BFD048B17B4A48E"><enum>(A)</enum><text>Section 5124 (relating
to records) is moved to subpart C of part II of subchapter A of chapter 51 and
inserted after section 5121.</text>
</subparagraph><subparagraph id="ID82FB52A32E9940DD8142E11225629BC0" indent="up1"><enum>(B)</enum><text>Section 5124 is amended—</text>
<clause id="ID8D43B95BDFDC4E0284C2B55CC54FEF3F"><enum>(i)</enum><text>by striking the section heading and
inserting the following new heading:</text>
<quoted-block id="IDC3E716DA58774EFEAB112B2E5C773312">
<section id="ID61F4CEF07EA94673AF0E6769EC7C38E3"><enum>5122.</enum><header>Recordkeeping
by retail
dealers</header>
</section><after-quoted-block>,</after-quoted-block></quoted-block>
</clause><clause id="ID3529DEE2B0D14A9CA256249DF90E260A" indent="up1"><enum>(ii)</enum><text>by striking <quote>section
5146</quote> in subsection (c) and inserting <quote>section 5123</quote>,
and</text>
</clause><clause id="IDEC4C7F6391C349B99EDD73E8EDCB92AE" indent="up1"><enum>(iii)</enum><text>by redesignating subsection (c) as
subsection (d) and inserting after subsection (b) the following new
subsection:</text>
<quoted-block id="ID3D20DB0BF1F04CC39D67DA20BC5B9058">
<subsection id="IDD8D061B8662F4BD8A4EEEE48ABFC2C6A"><enum>(c)</enum><header>Retail
dealers</header><text>For purposes of this section—</text>
<paragraph id="ID2531E81B54924E1CB9F7338FC8A32B5F"><enum>(1)</enum><header>Retail dealer
in liquors</header><text>The term <term>retail dealer in liquors</term> means
any dealer (other than a retail dealer in beer or a limited retail dealer) who
sells, or offers for sale, distilled spirits, wines, or beer, to any person
other than a dealer.</text>
</paragraph><paragraph id="ID1F0764FD260D42AE82B3991C3FA309A4"><enum>(2)</enum><header>Retail dealer
in beer</header><text>The term <term>retail dealer in beer</term> means any
dealer (other than a limited retail dealer) who sells, or offers for sale,
beer, but not distilled spirits or wines, to any person other than a
dealer.</text>
</paragraph><paragraph id="IDDE1B0F696DA447359922680685E9991F"><enum>(3)</enum><header>Limited retail
dealer</header><text>The term <term>limited retail dealer</term> means any
fraternal, civic, church, labor, charitable, benevolent, or ex-servicemen’s
organization making sales of distilled spirits, wine or beer on the occasion of
any kind of entertainment, dance, picnic, bazaar, or festival held by it, or
any person making sales of distilled spirits, wine or beer to the members,
guests, or patrons of bona fide fairs, reunions, picnics, carnivals, or other
similar outings, if such organization or person is not otherwise engaged in
business as a dealer.</text>
</paragraph><paragraph id="ID391B44AA8633479382684D638F7CF33C"><enum>(4)</enum><header>Dealer</header><text>The
term <term>dealer</term> has the meaning given such term by section
5121(c)(3).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</clause></subparagraph></paragraph><paragraph id="ID04EADF40983345028E5C0A1DD4B68DCB"><enum>(7)</enum><text>Section 5146 is
moved to subpart C of part II of subchapter A of chapter 51, inserted after
section 5122, and redesignated as section 5123.</text>
</paragraph><paragraph id="id78B490D79172440F8E4BD1B374453C1F"><enum>(8)</enum><text>Subpart C of part
II of subchapter A of chapter 51, as amended by paragraph (7), is amended by
adding at the end the following new section:</text>
<quoted-block display-inline="no-display-inline" id="id63432CC5826E4A45987BA74F861A592F" style="OLC">
<section id="idF90A80E1C55C4DA3A1EC055EE47A96AD"><enum>5124.</enum><header>Registration
by dealers</header><text display-inline="no-display-inline">Every dealer who is
subject to the recordkeeping requirements under section 5121 or 5122 shall
register with the Secretary such dealer's name or style, place of residence,
trade or business, and the place where such trade or business is to be carried
on. In case of a firm or company, the names of the several persons constituting
the same, and the places of residence, shall be so
registered.</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id9BF8CF2B150B4FF39EE09FFCBC13455E"><enum>(9)</enum><text>Section 7012 is
amended by redesignating paragraphs (4) and (5) as paragraphs (5) and (6),
respectively, and by inserting after paragraph (3) the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="idDEB5875F8FE448C4A1452E32E16F2CAC" style="OLC">
<paragraph id="idE4CC6283AE124E618B04D5B3E245B886"><enum>(4)</enum><text>For provisions
relating to registration by dealers in distilled spirits, wines, and beer, see
section
5124.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID5935C809285848EEB1C7BB434BE7503B"><enum>(10)</enum><text>Part II of
subchapter A of chapter 51 is amended by inserting after subpart C the
following new subpart:</text>
<quoted-block id="ID35163FDE8F124D39B0DE70E0696BD8CA">
<subpart id="ID7D55902996704806B8D89B1A06320AF5"><enum>D</enum><header>Other
provisions</header>
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 5131. Packaging distilled spirits
for industrial uses.</toc-entry>
<toc-entry level="section">Sec. 5132. Prohibited purchases by
dealers.</toc-entry>
</toc>
</subpart><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID39574839264947849B0EB91F7D692963"><enum>(11)</enum><text>Section 5116 is
moved to subpart D of part II of subchapter A of chapter 51, inserted after the
table of sections, redesignated as section 5131, and amended by inserting
<quote>(as defined in section 5121(c))</quote> after <quote>dealer</quote> in
subsection (a).</text>
</paragraph><paragraph id="IDB1CBBB563B0541AABA4B6EEE9CC19082"><enum>(12)</enum><text>Subpart D of
part II of subchapter A of chapter 51 is amended by adding at the end the
following new section:</text>
<quoted-block display-inline="no-display-inline" id="ID7B63D98075E44B4A8AE77D6DC799C49B" style="OLC">
<section id="IDA502C66E8E784CA9AFF80C42CEE5F818"><enum>5132.</enum><header>Prohibited
purchases by dealers</header>
<subsection id="ID3143FA21F70B4744929CE63E8627C770"><enum>(a)</enum><header>In
general</header><text>Except as provided in regulations prescribed by the
Secretary, it shall be unlawful for a dealer to purchase distilled spirits for
resale from any person other than a wholesale dealer in liquors who is required
to keep the records prescribed by section 5121.</text>
</subsection><subsection id="IDA589A34945C547A384103E8478959999"><enum>(b)</enum><header>Limited retail
dealers</header><text>A limited retail dealer may lawfully purchase distilled
spirits for resale from a retail dealer in liquors.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID54E1CE00378C43F49681A7BFBB478DCF"><enum>(c)</enum><header>Penalty and
forfeiture</header>
<toc regeneration="no-regeneration">
<toc-entry level="section">For penalty and forfeiture provisions
applicable to violations of subsection (a), see sections 5687 and
7302.</toc-entry>
</toc>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDF8B675913A9D48CEBDD81F558C974948"><enum>(13)</enum><text>Subsection (b)
of section 5002 is amended—</text>
<subparagraph id="ID275204899F1848CA9811EB2550D090A1"><enum>(A)</enum><text>by striking
<quote>section 5112(a)</quote> and inserting <quote>section
5121(c)(3)</quote>,</text>
</subparagraph><subparagraph id="ID4B94281EECE9445D991AF7CB39E2981E"><enum>(B)</enum><text>by striking
<quote>section 5112</quote> and inserting <quote>section
5121(c)</quote>,</text>
</subparagraph><subparagraph id="IDEA17BBDF146F4F5B8238F6D85B1E5B14"><enum>(C)</enum><text>by striking
<quote>section 5122</quote> and inserting <quote>section
5122(c)</quote>.</text>
</subparagraph></paragraph><paragraph id="ID626178053B26457E918B55D9181D494D"><enum>(14)</enum><text>Subparagraph (A)
of section 5010(c)(2) is amended by striking <quote>section 5134</quote> and
inserting <quote>section 5114</quote>.</text>
</paragraph><paragraph id="ID2B451F3A5F214A7795FFD1315F32FE0A"><enum>(15)</enum><text>Subsection (d)
of section 5052 is amended to read as follows:</text>
<quoted-block id="ID2A4E0F96C10B4D3C968B89D3E4EE646A">
<subsection id="ID4C945A2B92A04A37ADF4292B36E753B6"><enum>(d)</enum><header>Brewer</header><text>For
purposes of this chapter, the term <term>brewer</term> means any person who
brews beer or produces beer for sale. Such term shall not include any person
who produces only beer exempt from tax under section
5053(e).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID880DC42C9FF14B3EA690C1FC2E5AAC7A"><enum>(16)</enum><text>The text of
section 5182 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idA1CFDC4C5A6441F78EF54985054C79B7" style="OLC">
<toc>
<toc-entry level="section">For provisions requiring recordkeeping by
wholesale liquor dealers, see section 5112, and by retail liquor dealers, see
section
5122.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID530B41D5A5B14D35B82A5842FE3576F5"><enum>(17)</enum><text>Subsection (b)
of section 5402 is amended by striking <quote>section 5092</quote> and
inserting <quote>section 5052(d)</quote>.</text>
</paragraph><paragraph id="ID95D7E7BCBA5D4CD7B1FF6498EBCD6B89"><enum>(18)</enum><text>Section 5671 is
amended by striking <quote>or 5091</quote>.</text>
</paragraph><paragraph id="IDA20155F787E743E2A04198F1D8362DEB"><enum>(19)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="ID5652602453284C40875F982DE04026D2"><enum>(A)</enum><text>Part V of subchapter J
of chapter 51 is hereby repealed.</text>
</subparagraph><subparagraph id="ID7FEAD486900B4CADAE3728D1E8403838" indent="up1"><enum>(B)</enum><text>The table of parts for such subchapter
J is amended by striking the item relating to part V.</text>
</subparagraph></paragraph><paragraph id="ID76C7AD40114D4377AF30028354D22F98"><enum>(20)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="ID2A7751CCD2224CAEAFC70176738436E2"><enum>(A)</enum><text>Sections 5142, 5143,
and 5145 are moved to subchapter D of chapter 52, inserted after section 5731,
redesignated as sections 5732, 5733, and 5734, respectively, and amended by
striking <quote>this part</quote> each place it appears and inserting
<quote>this subchapter</quote>.</text>
</subparagraph><subparagraph id="IDE2E733BEA8894F21AFE9A6093F0533FB" indent="up1"><enum>(B)</enum><text>Section 5732, as redesignated by
subparagraph (A), is amended by striking <quote>(except the tax imposed by
section 5131)</quote> each place it appears.</text>
</subparagraph><subparagraph id="IDD4E8A0A666A6442EA1EEF22B4D8F8BBD" indent="up1"><enum>(C)</enum><text>Paragraph (2) of section 5733(c), as
redesignated by subparagraph (A), is amended by striking <quote>liquors</quote>
both places it appears and inserting <quote>tobacco products and cigarette
papers and tubes</quote>.</text>
</subparagraph><subparagraph id="IDB3D51C1C52534E6E8263E182CD3C0346" indent="up1"><enum>(D)</enum><text>The table of sections for subchapter D
of chapter 52 is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id50FE122F8F154907A1B9E5B566759A1B" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 5732. Payment of tax.</toc-entry>
<toc-entry level="section">Sec. 5733. Provisions relating to
liability for occupational taxes.</toc-entry>
<toc-entry level="section">Sec. 5734. Application of State
laws.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="IDA309A306EB1F47A69296BD7AFC098A72" indent="up1"><enum>(E)</enum><text>Section 5731 is amended by striking
subsection (c) and by redesignating subsection (d) as subsection (c).</text>
</subparagraph></paragraph><paragraph id="IDB632BC6A2D7D4584BCF1112F53D5E646"><enum>(21)</enum><text>Subsection (c)
of section 6071 is amended by striking <quote>section 5142</quote> and
inserting <quote>section 5732</quote>.</text>
</paragraph><paragraph id="ID75A0D31E4DEC49C488298B3454416FBB"><enum>(22)</enum><text>Paragraph (1) of
section 7652(g) is amended—</text>
<subparagraph id="IDCDE044CBC77F4BA5B5000751D73A05A5"><enum>(A)</enum><text>by striking
<quote>subpart F</quote> and inserting <quote>subpart B</quote>, and</text>
</subparagraph><subparagraph id="IDB47967E014B84B9B83D2F03BE83223DF"><enum>(B)</enum><text>by striking
<quote>section 5131(a)</quote> and inserting <quote>section
5111</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDBCD47B247D1A494F8A94908E4E479F85"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on
July 1, 2008, but shall not apply to taxes imposed for periods before such
date.</text>
</subsection></section><section id="IDF5C9E4EF163140908B3E077A2DB40C7B"><enum>232.</enum><header>Modification
of limitation on rate of rum excise tax cover over to Puerto Rico and Virgin
Islands</header>
<subsection id="ID74119231A43B4A4384BF4697AE21BFBD"><enum>(a)</enum><header>In
general</header><text>Section 7652(f)(1) (relating to limitation on cover over
of tax on distilled spirits) is amended by inserting <quote>, and $13.50 in the
case of distilled spirits brought into the United States after December 31,
2005, and before January 1, 2007</quote> after <quote>2006</quote>.</text>
</subsection><subsection id="IDB0FDB5172948489C9FE1A04331BBF6FC"><enum>(b)</enum><header>Special
rule</header>
<paragraph id="ID3F6D2017C93B4FBA9F79A5811491779F"><enum>(1)</enum><header>In
general</header><text>After December 31, 2005, and before January 1, 2007, the
Commonwealth of Puerto Rico shall make a Conservation Trust Fund transfer from
the treasury of Puerto Rico within 30 days from the date of each cover
overpayment to such treasury under section 7652(e) of the Internal Revenue Code
of 1986.</text>
</paragraph><paragraph id="IDED6B0C6F7B064FE28A7D5DE1DA928CB4"><enum>(2)</enum><header>Conservation
Trust Fund transfer</header>
<subparagraph id="IDF8114E2A6AA64BD59CE9C1553C959D9D"><enum>(A)</enum><header>In
general</header><text>For purposes of this subsection, the term
<term>Conservation Trust Fund transfer</term> means a transfer to the Puerto
Rico Conservation Trust Fund of an amount equal to 50 cents per proof gallon of
the taxes imposed under section 5001 or section 7652 of such Code on distilled
spirits that are covered over to the treasury of Puerto Rico under section
7652(e) of such Code.</text>
</subparagraph><subparagraph id="ID42D49570F8C84470AC8302F3C30BE132"><enum>(B)</enum><header>Treatment of
transfer</header><text>Each Conservation Trust Fund transfer shall be treated
as principal for an endowment, the income from which to be available for use by
the Puerto Rico Conservation Trust Fund for the purposes for which the Trust
Fund was established.</text>
</subparagraph><subparagraph id="IDB8B48A8D3D9542AA931380152E9C72C9"><enum>(C)</enum><header>Result of
nontransfer</header>
<clause id="IDA8BA01AD2085432B848036454F224C22"><enum>(i)</enum><header>In
general</header><text>Upon notification by the Secretary of the Interior that a
Conservation Trust Fund transfer has not been made by the Commonwealth of
Puerto Rico, the Secretary of the Treasury shall, except as provided in clause
(ii), deduct and withhold from the next cover overpayment to be made to the
treasury of Puerto Rico under section 7652(e) of such Code an amount equal to
the appropriate Conservation Trust Fund transfer and interest thereon at the
underpayment rate established under section 6621 of such Code as of the due
date of such transfer. The Secretary of the Treasury shall transfer such amount
deducted and withheld, and the interest thereon, directly to the Puerto Rico
Conservation Trust Fund.</text>
</clause><clause id="IDC8E81E3C80894F9DBAD3882C9407C92D"><enum>(ii)</enum><header>Good-cause
exception</header><text>If the Secretary of the Interior finds, after
consultation with the Governor of Puerto Rico, that the failure by the
Commonwealth of Puerto Rico to make a required transfer was for good cause, and
notifies the Secretary of the Treasury of the finding of such good cause before
the due date of the next cover overpayment following the notification of
nontransfer, then the Secretary of the Treasury shall not deduct the amount of
such nontransfer from any cover overpayment.</text>
</clause></subparagraph></paragraph><paragraph id="ID15A5C22B497640B2915CE6709416FA45"><enum>(3)</enum><header>Puerto Rico
Conservation Trust Fund</header><text>For purposes of this subsection, the term
<term>Puerto Rico Conservation Trust Fund</term> means the fund established
pursuant to a Memorandum of Understanding between the United States Department
of the Interior and the Commonwealth of Puerto Rico, dated December 24,
1968.</text>
</paragraph></subsection></section><section id="id1C585CCEED664C19BF519BAA901B5E9F"><enum>233.</enum><header>Income tax
credit for distilled spirits wholesalers and for distilled spirits in control
State bailment warehouses for costs of carrying Federal excise taxes on bottled
distilled spirits</header>
<subsection id="id01065A9925F74A40A57B7DDFD1B2C2E8"><enum>(a)</enum><header>In
general</header><text>Subpart A of part I of subchapter A of chapter 51
(relating to gallonage and occupational taxes) is amended by adding at the end
the following new section:</text>
<quoted-block id="idA98E4931940E4CADB05CF96E766E89AC">
<section id="id21CE5178BAE140E397DBFA12B7B5BBEB"><enum>5011.</enum><header>Income tax
credit for average cost of carrying excise tax</header>
<subsection id="idACEEB83111FE4DE0A67DFCB757C17DBC"><enum>(a)</enum><header>In
general</header><text>For purposes of section 38, the amount of the distilled
spirits credit for any taxable year is the amount equal to the product
of—</text>
<paragraph id="idB4DF389557E84CDFA40A2B88F7B74831"><enum>(1)</enum><text>in the case
of—</text>
<subparagraph id="id68FBDF3CF45446D5BAA877D086F4B0EA"><enum>(A)</enum><text>any eligible
wholesaler, the number of cases of bottled distilled spirits—</text>
<clause id="idAB0DD6E019D248149E1944B6AE07DCBE"><enum>(i)</enum><text>which were
bottled in the United States, and</text>
</clause><clause id="idF13A001576F34D159A5657442EC2FFDC"><enum>(ii)</enum><text>which are
purchased by such wholesaler during the taxable year directly from the bottler
of such spirits, or</text>
</clause></subparagraph><subparagraph id="idFE5345FFCA054324A2E2E3871CF8E2B4"><enum>(B)</enum><text>any person which
is subject to section 5005 and which is not an eligible wholesaler, the number
of cases of bottled distilled spirits which are stored in a warehouse operated
by, or on behalf of, a State or political subdivision thereof, or an agency of
either, on which title has not passed on an unconditional sale basis,
and</text>
</subparagraph></paragraph><paragraph id="idF3AE9ABF18CB4269862DDC7230DC6814"><enum>(2)</enum><text>the average
tax-financing cost per case for the most recent calendar year ending before the
beginning of such taxable year.</text>
</paragraph></subsection><subsection id="idAE2AAA41C7A34E4DBAF22DA5D7D355FA"><enum>(b)</enum><header>Eligible
wholesaler</header><text>For purposes of this section, the term <term>eligible
wholesaler</term> means any person which holds a permit under the Federal
Alcohol Administration Act as a wholesaler of distilled spirits which is not a
State or political subdivision thereof, or an agency of either.</text>
</subsection><subsection id="idA12CAF20A1B342288E0C22F76BC8F50B"><enum>(c)</enum><header>Average
Tax-Financing cost</header>
<paragraph id="id45820C37475C4058A3AFFBF2BCD1A24E"><enum>(1)</enum><header>In
general</header><text>For purposes of this section, the average tax-financing
cost per case for any calendar year is the amount of interest which would
accrue at the deemed financing rate during a 60-day period on an amount equal
to the deemed Federal excise tax per case.</text>
</paragraph><paragraph id="id689C116B47F146CABDA721E571AA5E08"><enum>(2)</enum><header>Deemed
financing rate</header><text>For purposes of paragraph (1), the deemed
financing rate for any calendar year is the average of the corporate
overpayment rates under paragraph (1) of section 6621(a) (determined without
regard to the last sentence of such paragraph) for calendar quarters of such
year.</text>
</paragraph><paragraph id="idB0F12588ADDB470F8F4D3EEDC2317474"><enum>(3)</enum><header>Deemed Federal
excise tax per case</header><text>For purposes of paragraph (1), the deemed
Federal excise tax per case is $25.68.</text>
</paragraph></subsection><subsection id="idA4741A76C1B04831B300550B58DCFC68"><enum>(d)</enum><header>Other
definitions and special rules</header><text>For purposes of this
section—</text>
<paragraph id="idA98BA6FD2DBF42FCB8BF68C6C2E0B451"><enum>(1)</enum><header>Case</header><text>The
term <term>case</term> means 12 80-proof 750-milliliter bottles.</text>
</paragraph><paragraph id="idC41D292B0F644963BF8AFBD0EE1BEC48"><enum>(2)</enum><header>Number of cases
in lot</header><text>The number of cases in any lot of distilled spirits shall
be determined by dividing the number of liters in such lot by
9.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idCAD0FF42A9424D80B369AD9A31EB8F04"><enum>(b)</enum><header>Credit treated
as part of general business credit</header><text>Section 38(b) (relating to
current year business credit) is amended by striking <quote>plus</quote> at the
end of paragraph (18), by striking the period at the end of paragraph (19), and
inserting <quote>, plus</quote>, and by adding at the end the following new
paragraph:</text>
<quoted-block id="id96968E59F49548218D78E7FE4AC58D31">
<paragraph id="id458AA1E799114BBDB2B573B333A35D2C"><enum>(20)</enum><text>the distilled
spirits credit determined under section
5011(a).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idB80520F4074A4D468B33AFDF31F6345E"><enum>(c)</enum><header>Conforming
amendment</header><text>The table of sections for subpart A of part I of
subchapter A of chapter 51 is amended by adding at the end the following new
item:</text>
<quoted-block display-inline="no-display-inline" id="id485998A1D1874D0E8052441928B74005" style="OLC">
<toc>
<toc-entry level="section">Sec. 5011. Income tax credit for average
cost of carrying excise
tax.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idDB17563DFF7548DFB537A8E538C046B7"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after September 30, 2005.</text>
</subsection></section><section id="id953FE89B0AC042CB860E927541470898" section-type="subsequent-section"><enum>234.</enum><header>Quarterly excise tax
filing for small alcohol excise taxpayers</header>
<subsection id="id843EB405B331447A85C3849888EBCE53"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subsection (d) of
section 5061 (relating to time for collecting tax on distilled spirits, wines,
and beer) is amended by redesignating paragraphs (4) and (5) as paragraphs (5)
and (6), respectively, and by inserting after paragraph (3) the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="idB92F44731F834CD7B165D574FB564489" style="OLC">
<paragraph id="idEF8FBD52059849599DB7C2A77C3688A8"><enum>(4)</enum><header>Taxpayers
liable for taxes of not more than $50,000</header>
<subparagraph id="id8D65A2C0A4D14E05A55BCD62C0B26C43"><enum>(A)</enum><header>In
general</header><text>In the case of any taxpayer who reasonably expects to be
liable for not more than $50,000 in taxes imposed with respect to distilled
spirits, wines, and beer under subparts A, C, and D for the calendar year and
who was liable for not more than $50,000 in such taxes in the preceding
calendar year, the last day for the payment of tax shall be the 14th day after
the last day of the calendar quarter during which the action giving rise to the
imposition of such tax occurs.</text>
</subparagraph><subparagraph id="idC6CAC570848641AB84498C9A6A34CFA0"><enum>(B)</enum><header>No application
after limit exceeded</header><text>Subparagraph (A) shall not apply to any
taxpayer for any portion of the calendar year following the first date on which
the aggregate amount of tax due under subparts A, C, and D from such taxpayer
during such calendar year exceeds $50,000, and any tax under such subparts
which has not been paid on such date shall be due on the 14th day after the
last day of the semimonthly period in which such date occurs.</text>
</subparagraph><subparagraph id="id5F19CED91ECA4F4DB98348803F4DD293"><enum>(C)</enum><header>Calendar
quarter</header><text>For purposes of this paragraph, the term <term>calendar
quarter</term> means the three-month period ending on March 31, June 30,
September 30, or December
31.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idA4BF04D917B44747ACEAD0793922207B"><enum>(b)</enum><header>Conforming
amendment</header><text>Section 5061(d)(6), as redesignated by subsection (a),
is amended by striking <quote>paragraph (4)</quote> and inserting
<quote>paragraph (5)</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idE7E33DF1C6EF40DF93137065784440B1"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply with respect
to quarterly periods beginning on and after January 1, 2006.</text>
</subsection></section></subtitle><subtitle id="ID418AA455EB9D46CBB6CBD49A61DDFAEE"><enum>E</enum><header>Sport excise
taxes</header>
<section id="ID47DC754D720E4AD2B5B3C249A55D3F91"><enum>241.</enum><header>Custom
gunsmiths</header>
<subsection id="IDEC49144D4DD34A5DBCDE0B4E2D607819"><enum>(a)</enum><header>Small
manufacturers exempt from firearms excise tax</header><text>Section 4182
(relating to exemptions) is amended by redesignating subsection (c) as
subsection (d) and by inserting after subsection (b) the following new
subsection:</text>
<quoted-block id="ID11CF766822FF44D0AC16C2471FEEC156">
<subsection id="ID5A81ECFC48BC4ED8AA623A6EB05557AD"><enum>(c)</enum><header>Small
manufacturers, etc</header>
<paragraph id="IDA3107932FECA45DD9BC08D44FB256021"><enum>(1)</enum><header>In
general</header><text>The tax imposed by section 4181 shall not apply to any
pistol, revolver, or firearm described in such section if manufactured,
produced, or imported by a person who manufactures, produces, and imports less
than an aggregate of 50 of such articles during the calendar year.</text>
</paragraph><paragraph id="ID132D6D1D953E4B2B89B7EDB13B45319E"><enum>(2)</enum><header>Controlled
groups</header><text>All persons treated as a single employer for purposes of
subsection (a) or (b) of section 52 shall be treated as one person for purposes
of paragraph
(1).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDDEFF6116DA354561B281FD7EA54C683E"><enum>(b)</enum><header>Effective
date</header>
<paragraph id="IDB2B00732FAE345F4BBF7CC39C7211766"><enum>(1)</enum><header>In
general</header><text>The amendments made by this section shall apply to
articles sold by the manufacturer, producer, or importer after September 30,
2005.</text>
</paragraph><paragraph id="IDABB6DA3095CA442DAD5F14969C2DE3BD"><enum>(2)</enum><header>No
inference</header><text>Nothing in the amendments made by this section shall be
construed to create any inference with respect to the proper tax treatment of
any sales before the effective date of such amendments.</text>
</paragraph></subsection></section></subtitle><enum>III</enum><header>Miscellaneous
provisions</header>
<section id="IDC2F9A941EB424A0D8DD420A37AE69DDF"><enum>301.</enum><header>Motor Fuel Tax
Enforcement Advisory Commission</header>
<subsection id="IDB737F50A9DAF4AB79A028D8012BC2CD6"><enum>(a)</enum><header>Establishment</header><text>There
is established a Motor Fuel Tax Enforcement Advisory Commission (in this
section referred to as the <quote>Commission</quote>).</text>
</subsection><subsection id="ID5B8379097FC64B339A2C47973B89D77A"><enum>(b)</enum><header>Function</header><text>The
Commission shall—</text>
<paragraph id="ID659129FF02E543E2A0A1D84F202D45E6"><enum>(1)</enum><text>review motor fuel
revenue collections, historical and current;</text>
</paragraph><paragraph id="ID735C43BAC3DD4144982B724E544A0516"><enum>(2)</enum><text>review the
progress of investigations;</text>
</paragraph><paragraph id="ID588D82F3E2044BAC92CE44883D1A79E2"><enum>(3)</enum><text>develop and
review legislative proposals with respect to motor fuel taxes;</text>
</paragraph><paragraph id="ID40E21E637FB14F1E9E58582AF25AE216"><enum>(4)</enum><text>monitor the
progress of administrative regulation projects relating to motor fuel
taxes;</text>
</paragraph><paragraph id="ID585664DC87724E8D9944E107AC3F1F4E"><enum>(5)</enum><text>review the
results of Federal and State agency cooperative efforts regarding motor fuel
taxes;</text>
</paragraph><paragraph id="IDBF10745A71944F4C8BFB490FF14F488E"><enum>(6)</enum><text>review the
results of Federal interagency cooperative efforts regarding motor fuel taxes;
and</text>
</paragraph><paragraph id="ID2978CBD5521543EA98EAC3EB7407B826"><enum>(7)</enum><text>evaluate and make
recommendations to the President and Congress regarding—</text>
<subparagraph id="IDE93F7D327B5740DDB5A59C85F490E2D8"><enum>(A)</enum><text>the effectiveness
of existing Federal enforcement programs regarding motor fuel taxes,</text>
</subparagraph><subparagraph id="ID5315C0EB19294A1A8DE0976F78B56472"><enum>(B)</enum><text>enforcement
personnel allocation, and</text>
</subparagraph><subparagraph id="ID6BF58ABBF4B24A83A0153ABD847C5D27"><enum>(C)</enum><text>proposals for
regulatory projects, legislation, and funding.</text>
</subparagraph></paragraph></subsection><subsection id="IDFEAF7B9179034941ABB13CDC86355953"><enum>(c)</enum><header>Membership</header>
<paragraph id="ID0A256430012E48FE86B9FF95922FB8C3"><enum>(1)</enum><header>Appointment</header><text>The
Commission shall be composed of the following representatives appointed by the
Chairmen and the Ranking Members of the Committee on Finance of the Senate and
the Committee on Ways and Means of the House of Representatives:</text>
<subparagraph id="IDBEAEF08C97404AABA72655573330F77E"><enum>(A)</enum><text>At least 1
representative from each of the following Federal entities: the Department of
Homeland Security, the Department of Transportation—Office of Inspector
General, the Federal Highway Administration, the Department of Defense, and the
Department of Justice.</text>
</subparagraph><subparagraph id="IDFC014E2ADF4641EE9FED7438DCEBF721"><enum>(B)</enum><text>At least 1
representative from the Federation of State Tax Administrators.</text>
</subparagraph><subparagraph id="ID03CB14036DEE4524BCA99A234CD14FAA"><enum>(C)</enum><text>At least 1
representative from any State department of transportation.</text>
</subparagraph><subparagraph id="IDCCAC4B8EF68241B198F2ECB5AEEACBE8"><enum>(D)</enum><text>2 representatives
from the highway construction industry.</text>
</subparagraph><subparagraph id="ID3491E8A4C45F4C609988741C7246EB53"><enum>(E)</enum><text>6 representatives
from industries relating to fuel distribution — refiners (2 representatives),
distributors (1 representative), pipelines (1 representative), and terminal
operators (2 representatives).</text>
</subparagraph><subparagraph id="ID4F5FAB8300234D0E87FF5399E94B438F"><enum>(F)</enum><text>1 representative
from the retail fuel industry.</text>
</subparagraph><subparagraph id="IDFEFD525156B348A890C311A87517B7E5"><enum>(G)</enum><text>2 representatives
from the staff of the Committee on Finance of the Senate and 2 representatives
from the staff of the Committee on Ways and Means of the House of
Representatives.</text>
</subparagraph></paragraph><paragraph id="ID23B979F2239D4215B48EB23CCFD5778D"><enum>(2)</enum><header>Terms</header><text>Members
shall be appointed for the life of the Commission.</text>
</paragraph><paragraph id="IDCE341A11724947C89AE2A0E1B20C9A7D"><enum>(3)</enum><header>Vacancies</header><text>A
vacancy in the Commission shall be filled in the manner in which the original
appointment was made.</text>
</paragraph><paragraph id="IDC734E8D236CB4573B82ABAF8AB140BDB"><enum>(4)</enum><header>Travel
expenses</header><text>Members shall serve without pay but shall receive travel
expenses, including per diem in lieu of subsistence, in accordance with
sections 5702 and 5703 of title 5, United States Code.</text>
</paragraph><paragraph id="ID1CFDB78DBB1349119C04D681009EC8DC"><enum>(5)</enum><header>Chairman</header><text>The
Chairman of the Commission shall be elected by the members.</text>
</paragraph></subsection><subsection id="IDC239E4CC6F274493ACECFF8336B577E1"><enum>(d)</enum><header>Funding</header><text>Such
sums as are necessary shall be available from the Highway Trust fund for the
expenses of the Commission.</text>
</subsection><subsection id="IDEA3CD4782CFF48C7A9614895A523F616"><enum>(e)</enum><header>Consultation</header><text>Upon
request of the Commission, representatives of the Department of the Treasury
and the Internal Revenue Service shall be available for consultation to assist
the Commission in carrying out its duties under this section.</text>
</subsection><subsection id="ID240EFAA6F4744164AD363C6C7408998E"><enum>(f)</enum><header>Obtaining
data</header><text>The Commission may secure directly from any department or
agency of the United States, information (other than information required by
any law to be kept confidential by such department or agency) necessary for the
Commission to carry out its duties under this section. Upon request of the
Commission, the head of that department or agency shall furnish such
nonconfidential information to the Commission. The Commission shall also gather
evidence through such means as it may deem appropriate, including through
holding hearings and soliciting comments by means of Federal Register
notices.</text>
</subsection><subsection id="ID68687C15D72C43EF986EA26994A12AD9"><enum>(g)</enum><header>Termination</header><text>The
Commission shall terminate as of the close of September 30, 2009.</text>
</subsection></section><section id="ID10A45E9396CC41069CE4063A0FFC19C6"><enum>302.</enum><header>National
Surface Transportation Infrastructure Financing Commission</header>
<subsection id="ID61C49873CFBB420AA71E3EB812897E4A"><enum>(a)</enum><header>Establishment</header><text>There
is established a National Surface Transportation Infrastructure Financing
Commission (in this section referred to as the <quote>Commission</quote>). The
Commission shall hold its first meeting within 90 days of the appointment of
the eighth individual to be named to the Commission.</text>
</subsection><subsection id="ID5D52A49437D24279A1B2A42FFD965BE0"><enum>(b)</enum><header>Function</header>
<paragraph id="ID95D21EE6EA1D4967BC520590598832E9"><enum>(1)</enum><header>In
general</header><text>The Commission shall, with respect to the period
beginning on the date of the enactment of this Act and ending before
2016—</text>
<subparagraph id="ID9BDB372BA91A4F50A27A5B8F6D7B15D0"><enum>(A)</enum><text>make a thorough
investigation and study of revenues flowing into the Highway Trust Fund under
current law, including the individual components of the overall flow of such
revenues;</text>
</subparagraph><subparagraph id="ID8EAAE86C756048609CE1E95BA787E4E4"><enum>(B)</enum><text>consider whether
the amount of such revenues is likely to increase, decline, or remain
unchanged, absent changes in the law, particularly by taking into account the
impact of possible changes in public vehicular choice, fuel use, or travel
alternatives that could be expected to reduce or increase revenues into the
Highway Trust Fund;</text>
</subparagraph><subparagraph id="ID244B12FEAF204BE58F322DC5A7DB92BA"><enum>(C)</enum><text>consider
alternative approaches to generating revenues for the Highway Trust Fund, and
the level of revenues that such alternatives would yield;</text>
</subparagraph><subparagraph id="ID528F49413BCC424CB996612C4876D6D8"><enum>(D)</enum><text>consider highway
and transit needs and whether additional revenues into the Highway Trust Fund,
or other Federal revenues dedicated to highway and transit infrastructure,
would be required in order to meet such needs; and</text>
</subparagraph><subparagraph id="ID59BF18AEBC5548CDA75E96B89D3CB6B1"><enum>(E)</enum><text>study such other
matters closely related to the subjects described in the preceding
subparagraphs as it may deem appropriate.</text>
</subparagraph></paragraph><paragraph id="ID61562A7822EA48ECA671177D70A62A31"><enum>(2)</enum><header>Preparation of
report</header><text>Based on such investigation and study, the Commission
shall develop a final report, with recommendations and the bases for those
recommendations, indicating policies that should be adopted, or not adopted, to
achieve various levels of annual revenue for the Highway Trust Fund and to
enable the Highway Trust Fund to receive revenues sufficient to meet highway
and transit needs. Such recommendations shall address, among other matters as
the Commission may deem appropriate—</text>
<subparagraph id="IDC70AB81543924C6AB8C0BE86A5BB4BF1"><enum>(A)</enum><text>what levels of
revenue are required by the Federal Highway Trust Fund in order for it to meet
needs to maintain and improve the condition and performance of the Nation’s
highway and transit systems;</text>
</subparagraph><subparagraph id="IDE707A5C10EB34772BD8CBBBAB6489AF6"><enum>(B)</enum><text>what levels of
revenue are required by the Federal Highway Trust Fund in order to ensure that
Federal levels of investment in highways and transit do not decline in real
terms; and</text>
</subparagraph><subparagraph id="ID02DD078604A8492381E515EBB88FE715"><enum>(C)</enum><text>the extent, if
any, to which the Highway Trust Fund should be augmented by other mechanisms or
funds as a Federal means of financing highway and transit infrastructure
investments.</text>
</subparagraph></paragraph></subsection><subsection id="ID915AE3D8408842E8B983E19A4E286624"><enum>(c)</enum><header>Membership</header>
<paragraph id="IDFF08BBB08BA045F0AD7E5AED53925FA3"><enum>(1)</enum><header>Appointment</header><text>The
Commission shall be composed of 15 members, appointed as follows:</text>
<subparagraph id="IDC06A8B9A2F0F436187C6098BFD4135DB"><enum>(A)</enum><text>7 members
appointed by the Secretary of Transportation, in consultation with the
Secretary of the Treasury.</text>
</subparagraph><subparagraph id="IDB547BAC020B34228A799AD0289D099ED"><enum>(B)</enum><text>2 members
appointed by the Chairman of the Committee on Ways and Means of the House of
Representatives.</text>
</subparagraph><subparagraph id="IDCDFF75B607174197AA9A64B3E1D1E174"><enum>(C)</enum><text>2 members
appointed by the Ranking Minority Member of the Committee on Ways and Means of
the House of Representatives.</text>
</subparagraph><subparagraph id="ID0BB10263080D4E9BA0B61F6CBFA4980C"><enum>(D)</enum><text>2 members
appointed by the Chairman of the Committee on Finance of the Senate.</text>
</subparagraph><subparagraph id="ID2B5F4D613BE743C3949CE969482681B8"><enum>(E)</enum><text>2 members
appointed by the Ranking Minority Member of the Committee on Finance of the
Senate.</text>
</subparagraph></paragraph><paragraph id="IDDCD7F09ACCE642F88D7636A20D6CDC73"><enum>(2)</enum><header>Qualifications</header><text>Members
appointed pursuant to paragraph (1) shall be appointed from among individuals
knowledgeable in the fields of public transportation finance or highway and
transit programs, policy, and needs, and may include representatives of
interested parties, such as State and local governments or other public
transportation authorities or agencies, representatives of the transportation
construction industry (including suppliers of technology, machinery and
materials), transportation labor (including construction and providers),
transportation providers, the financial community, and users of highway and
transit systems.</text>
</paragraph><paragraph id="IDAE9228CFE628476C89BC631494714B5C"><enum>(3)</enum><header>Terms</header><text>Members
shall be appointed for the life of the Commission.</text>
</paragraph><paragraph id="IDD9E6D5178F0F4133A7191BF7FBD42854"><enum>(4)</enum><header>Vacancies</header><text>A
vacancy in the Commission shall be filled in the manner in which the original
appointment was made.</text>
</paragraph><paragraph id="ID8E0212E923FD4C8DA3EBE6889F766959"><enum>(5)</enum><header>Travel
expenses</header><text>Members shall serve without pay but shall receive travel
expenses, including per diem in lieu of subsistence, in accordance with
sections 5702 and 5703 of title 5, United States Code.</text>
</paragraph><paragraph id="IDC59B9E10FACD4C809AA1CC0F7AEA116A"><enum>(6)</enum><header>Chairman</header><text>The
Chairman of the Commission shall be elected by the members.</text>
</paragraph></subsection><subsection id="ID6CEBAC7B947D401B8AC633FB2DDCB4AE"><enum>(d)</enum><header>Staff</header><text>The
Commission may appoint and fix the pay of such personnel as it considers
appropriate.</text>
</subsection><subsection id="IDBCB3421B74E144DFB6C4F73486233CFE"><enum>(e)</enum><header>Funding</header><text>Funding
for the Commission shall be provided by the Secretary of the Treasury and by
the Secretary of Transportation, out of funds available to those agencies for
administrative and policy functions.</text>
</subsection><subsection id="ID69D1E356B59B4BE686F85F2AF3DA6494"><enum>(f)</enum><header>Staff of
Federal agencies</header><text>Upon request of the Commission, the head of any
department or agency of the United States may detail any of the personnel of
that department or agency to the Commission to assist in carrying out its
duties under this section.</text>
</subsection><subsection id="ID84773AB34B3E46DA8836A990F2D6C957"><enum>(g)</enum><header>Obtaining
data</header><text>The Commission may secure directly from any department or
agency of the United States, information (other than information required by
any law to be kept confidential by such department or agency) necessary for the
Commission to carry out its duties under this section. Upon request of the
Commission, the head of that department or agency shall furnish such
nonconfidential information to the Commission. The Commission shall also gather
evidence through such means as it may deem appropriate, including through
holding hearings and soliciting comments by means of Federal Register
notices.</text>
</subsection><subsection id="IDF6AC037CDD324F28978611A9D83B168A"><enum>(h)</enum><header>Report</header><text>Not
later than 2 years after the date of its first meeting, the Commission shall
transmit its final report, including recommendations, to the Secretary of
Transportation, the Secretary of the Treasury, and the Committee on Ways and
Means of the House of Representatives, the Committee on Finance of the Senate,
the Committee on Transportation and Infrastructure of the House of
Representatives, the Committee on Environment and Public Works of the Senate,
and the Committee on Banking, Housing, and Urban Affairs of the Senate.</text>
</subsection><subsection id="IDE742D5C98EB1405BA81070D9B5D6166D"><enum>(i)</enum><header>Termination</header><text>The
Commission shall terminate on the 180th day following the date of transmittal
of the report under subsection (h). All records and papers of the Commission
shall thereupon be delivered to the Administrator of General Services for
deposit in the National Archives.</text>
</subsection></section><section id="ID78C49A79F7DF434FB21B528689E507EA"><enum>303.</enum><header>Expansion of
Highway Trust Fund expenditure purposes to include funding for studies of
supplemental or alternative financing for the Highway Trust Fund</header>
<subsection id="IDB3DC6AB981E34635BFBBA9F08A06250D"><enum>(a)</enum><header>In
general</header><text>From amounts available in the Highway Trust Fund, there
is authorized to be expended for 2 comprehensive studies of supplemental or
alternative funding sources for the Highway Trust Fund—</text>
<paragraph id="ID90DB4F2838424773B76F6A5DB17B3055"><enum>(1)</enum><text>$1,000,000 to the
Western Transportation Institute of the College of Engineering at Montana State
University for the study and report described in subsection (b), and</text>
</paragraph><paragraph id="ID2175938A7E0E48719102F430812DA721"><enum>(2)</enum><text>$16,500,000 to
the Public Policy Center of the University of Iowa for the study and report
described in subsection (c).</text>
</paragraph></subsection><subsection id="ID0013B3957742442FB43FAA08BB4CD320"><enum>(b)</enum><header>Study of
funding mechanisms</header><text>Not later than December 31, 2006, the Western
Transportation Institute of the College of Engineering at Montana State
University shall report to the Secretary of the Treasury and the Secretary of
Transportation on a study of highway funding mechanisms of other industrialized
nations, an examination of the viability of alternative funding proposals,
including congestion pricing, greater reliance on tolls, privatization of
facilities, and bonding for construction of added capacity, and an examination
of increasing the rates of motor fuels taxes in effect on the date of the
enactment of this Act, including the indexation of such rates.</text>
</subsection><subsection id="IDDA0A76CAAC43499DA17BA35475857806"><enum>(c)</enum><header>Study on field
test of Onboard computer assessment of highway use taxes</header><text>Not
later than December 31, 2011, the Public Policy Center of the University of
Iowa shall direct, analyze, and report to the Secretary of the Treasury and the
Secretary of Transportation on a long-term field test of an approach to
assessing highway use taxes based upon actual mileage driven by a specific
vehicle on specific types of highways by use of an onboard computer—</text>
<paragraph id="IDE70410233A934A4DB5902A59E385C675"><enum>(1)</enum><text>which is linked
to satellites to calculate highway mileage traversed,</text>
</paragraph><paragraph id="ID545A07AC32804DD0856F565A49AE4DBC"><enum>(2)</enum><text>which computes
the appropriate highway use tax for each of the Federal, State, and local
governments as the vehicle makes use of the highways, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID58B708935A904D6A9690ED033E523B28"><enum>(3)</enum><text>the data from
which is periodically downloaded by the vehicle owner to a collection center
for an assessment of highway use taxes due in each jurisdiction traversed. The
components of the field test shall include 2 years for preparation, including
selection of vendors and test participants, and 3-year testing period.</text>
</paragraph></subsection></section><section id="ID417920104C3B4DFC90AA7DD57D16BF7F"><enum>304.</enum><header>Delta regional
transportation plan</header>
<subsection id="IDA45D23907C1B4927A5C1241EAD07A5BF"><enum>(a)</enum><header>Study</header><text>The
Delta Regional Authority shall conduct a study of the transportation assets and
needs in the States of Alabama, Arkansas, Illinois, Kentucky, Louisiana,
Mississippi, Missouri, and Tennessee which comprise the Delta region.</text>
</subsection><subsection id="ID7E289B1A14524EADB260A4AF1FA2497A"><enum>(b)</enum><header>Regional
strategic Transportation Plan</header><text>Upon completion of the study
required under subsection (a), the Delta Regional Authority shall establish a
regional strategic transportation plan to achieve efficient transportation
systems in the Delta region. In developing the regional strategic
transportation plan, the Delta Regional Authority shall consult with local
planning and development districts, local and regional governments,
metropolitan planning organizations, State transportation entities, and Federal
transportation agencies.</text>
</subsection><subsection id="IDEBDE1E64423241828FF90923A4451769"><enum>(c)</enum><header>Elements of
study and Plan</header><text>The study and plan under this section shall
include the following transportation modes and systems: transit, rail, highway,
interstate, bridges, air, airports, waterways, and ports.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDA92CE684099348E38921F62B3C35249F"><enum>(d)</enum><header>Authorization
of appropriations</header><text>There is authorized to be appropriated to the
Delta Regional Authority $500,000 for each of the fiscal years 2005 and 2006 to
carry out the purposes of this section, to remain available until
expended.</text>
</subsection></section><section id="idA3708893B94C447FB088F4417C41ED1E"><enum>305.</enum><header>Build America
Corporation</header>
<subsection id="ID6B47EF33904A468DA3501BEDA60CE66F"><enum>(a)</enum><header>Establishment
of Build America Corporation</header><text display-inline="yes-display-inline">There is established a nonprofit
corporation, to be known as the <quote>Build America Corporation</quote>. The
Build America Corporation is not an agency or establishment of the United
States Government. The purpose of the Corporation is to issue Build America
bonds. The Corporation shall be subject, to the extent consistent with this
section, to the laws of the State of Delaware applicable to corporations not
for profit.</text>
</subsection><subsection id="ID662B599DB9B34601AB726380DF8A01E8"><enum>(b)</enum><header>Use of Build
America bond proceeds</header><text>The proceeds from the sale of any Build
America bonds issued by the Build America Corporation as authorized by
subsection (a) may be used to fund any qualified project.</text>
</subsection><subsection id="IDF6A62CF7266848C9B20D32741B32DB10"><enum>(c)</enum><header>Qualified
projects</header><text>For purposes of this section—</text>
<paragraph id="IDE3A1F9843F9247F38F42ADD077DB7B47"><enum>(1)</enum><header>In
general</header><text>With respect to any Build America bonds issued by the
Build America Corporation as authorized by subsection (a), the term
<term>qualified project</term> means any—</text>
<subparagraph id="IDB08F537F1FF9468DB5E2290F7F56B0AA"><enum>(A)</enum><text>qualified highway
project,</text>
</subparagraph><subparagraph id="IDE26A3676CBDB4BF6BAB735AF47F52136"><enum>(B)</enum><text>qualified public
transportation project, and</text>
</subparagraph><subparagraph id="IDF0440E4CBB3142C6949D5193C536800E"><enum>(C)</enum><text>congestion relief
project,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">proposed by
1 or more States and approved by the Build America Corporation, which meets the
requirements under subparagraphs (A), (B), and (C) of paragraph (5).</continuation-text></paragraph><paragraph id="ID2EC1DF18084A48458CB0131514A72EA8"><enum>(2)</enum><header>Qualified
highway project</header><text>The term <term>qualified highway project</term>
means a project for highway facilities or other facilities which are eligible
for assistance under title 23, United States Code.</text>
</paragraph><paragraph id="ID5B5E6EAF166044AA913B52556AD7695C"><enum>(3)</enum><header>Qualified
public transportation project</header><text>The term <term>qualified public
transportation project</term> means a project for public transportation
facilities or other facilities which are eligible for assistance under title
49, United States Code.</text>
</paragraph><paragraph id="IDE4CB660BA4634BD29E7FC2DD67BC23DF"><enum>(4)</enum><header>Congestion
relief project</header><text>The term <term>congestion relief project</term>
means an intermodal freight transfer facility, freight rail facility, freight
movement corridor, intercity passenger rail facility, intercity bus facility,
border crossing facility, or other public or private facility approved as a
congestion relief project by the Secretary of Transportation. In making such
approvals, the Secretary of Transportation shall—</text>
<subparagraph id="IDE834ED2E1345425D8B684BA58DEB8D30"><enum>(A)</enum><text>consider the
economic, environmental, mobility, and national security improvements to be
realized through the project, and</text>
</subparagraph><subparagraph id="ID327BA5F928194A6AAA87F4597440345D"><enum>(B)</enum><text>give preference
to projects with national or regional significance, including any projects
sponsored by a coalition of States or a combination of States and private
sector entities, in terms of generating economic benefits, supporting
international commerce, or otherwise enhancing the national transportation
system.</text>
</subparagraph></paragraph><paragraph id="ID1DCE6702EFB642DA8855B6D83BCF989F"><enum>(5)</enum><header>Additional
requirements for qualified projects</header><text>For purposes of paragraph
(1)—</text>
<subparagraph id="ID3F72E8624B3E4AC8BB583C7D6FF87FC5"><enum>(A)</enum><header>Costs of
qualified projects</header><text>The requirement of this subparagraph is met if
the costs of the qualified project funded by Build America bonds only relate to
capital investments and do not include any costs relating to operations,
maintenance, or rolling stock.</text>
</subparagraph><subparagraph id="IDD2AD4FF2445C4D258FBE8B19A48F47C8"><enum>(B)</enum><header>Applicability
of Federal law</header><text>The requirement of this subparagraph is met if the
requirements of any Federal law, including titles 23, 40, and 49 of the United
States Code, which would otherwise apply to projects to which the United States
is a party or to funds made available under such law and projects assisted with
those funds are applied to—</text>
<clause id="ID2E1C4D239A8C497FB1717AD7CD9B9C6D"><enum>(i)</enum><text>funds made
available under Build America bonds for similar qualified projects, and</text>
</clause><clause id="IDC883EA524611483B900C3628E3BB2CC2"><enum>(ii)</enum><text>similar
qualified projects assisted by the Build America Corporation through the use of
such funds.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID7686CEB08D53482C94EFAA16876E9B6C"><enum>(C)</enum><header>Utilization of
updated construction technology for qualified projects</header><text>The
requirement of this subparagraph is met if the appropriate State agency
relating to the qualified project has updated its accepted construction
technologies to match a list prescribed by the Secretary of Transportation and
in effect on the date of the approval of the project as a qualified
project.</text>
</subparagraph></paragraph></subsection></section><section id="ID50138D0F85B642BA8DCBEDB53387F2BF"><enum>306.</enum><header>Increase in
dollar limitation for qualified transportation fringe benefits</header>
<subsection id="IDFE8EC87C2EB24CC0BB822D9600DF3F00"><enum>(a)</enum><header>In
general</header><text>Section 132(f)(2) (relating to limitation on exclusion)
is amended—</text>
<paragraph id="id10448C26E10C47C38F9F46F474DD9F7A"><enum>(1)</enum><text>by striking
<quote>$100</quote> in subparagraph (A) and inserting <quote>$155</quote>,
and</text>
</paragraph><paragraph id="id611C0C144CAC40BE92586377DAC354B1"><enum>(2)</enum><text>by striking
<quote>$175</quote> in subparagraph (B) and inserting
<quote>$200</quote>.</text>
</paragraph></subsection><subsection id="IDC5CAB42CB2584F24A95F32C533AC0447"><enum>(b)</enum><header>Inflation
adjustment conforming amendments</header><text>Subparagraph (A) of section
132(f)(6) (relating to inflation adjustment) is amended—</text>
<paragraph id="ID8AA37C4D0DD84F9DA202C51D91BD4D72"><enum>(1)</enum><text>by striking the
last sentence,</text>
</paragraph><paragraph id="ID607830BDAB7749C18587FAB3477F43C8"><enum>(2)</enum><text>by striking
<quote>1999</quote> and inserting <quote>2008</quote>, and</text>
</paragraph><paragraph id="ID04D92940CD60462E9F16255446CDC99E"><enum>(3)</enum><text>by striking
<quote>1998</quote> and inserting <quote>2007</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID1153634F283C4A129D19FE5B429DD8FA"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2005.</text>
</subsection></section><enum>IV</enum><header>Fuels-related
technical corrections</header>
<section changed="added" id="IDD92157A309734E678B111F6F416087C3"><enum>401.</enum><header>Fuels-related
technical corrections</header>
<subsection changed="added" id="ID09F90C57C36F48E5A8AD2EE737738D53"><enum>(a)</enum><header>Amendments
related to section <enum-in-header>301</enum-in-header> of the American Jobs
Creation Act of 2004</header><text>Section 6427 is amended—</text>
<paragraph changed="added" id="IDB5C8D11B8A084032A1A848614E130F37"><enum>(1)</enum><text>by striking
subsection (f), and</text>
</paragraph><paragraph changed="added" id="IDA5147B49AA8B402FAECA6819E8293A4D"><enum>(2)</enum><text>by striking
subsection (o) and redesignating subsection (p) as subsection (o).</text>
</paragraph></subsection><subsection changed="added" id="ID7E005F841DD74EC09052BADB6CFC8BE3"><enum>(b)</enum><header>Amendments
related to section <enum-in-header>853</enum-in-header> of the American Jobs
Creation Act of 2004</header>
<paragraph changed="added" id="ID30CC08ED42714520ACEBD1F9403F5064"><enum>(1)</enum><text>Subparagraph (C)
of section 4081(a)(2) is amended by striking <quote>for use in commercial
aviation</quote> and inserting <quote>for use in commercial aviation by a
person registered for such use under section 4101</quote>.</text>
</paragraph><paragraph changed="added" id="IDBCDD4D44383D4273900B9E375AC7286C"><enum>(2)</enum><text>So much of
paragraph (2) of section 4081(d) as precedes subparagraph (A) is amended to
read as follows:</text>
<quoted-block id="IDD75B6B3A150F42DB9AA0A18B0064C2AF">
<paragraph changed="added" id="ID63269405109C497EB2E3F17ED3A502A4"><enum>(2)</enum><header>Aviation
fuels</header><text>The rates of tax specified in clauses (ii) and (iv) of
subsection (a)(2)(A) shall be 4.3 cents per
gallon—</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection changed="added" id="idB47118077D0447BBBD7339790A52E09D"><enum>(c)</enum><header>Amendment
related to section <enum-in-header>9005</enum-in-header> of the Transportation
Equity Act for the 21st Century</header><text>The last sentence of paragraph
(2) of section 9504(b) is amended by striking <quote>subparagraph (B)</quote>,
and inserting <quote>subparagraph (C)</quote>.</text>
</subsection><subsection changed="added" commented="no" display-inline="no-display-inline" id="ID63B702739E494E3A86EA14256772F5EA"><enum>(d)</enum><header>Effective
dates</header>
<paragraph changed="added" commented="no" display-inline="no-display-inline" id="id8EB97AD0DE264031A6908379F511423F"><enum>(1)</enum><header>American Jobs
Creation Act of 2004</header><text>The amendments made by subsections (a) and
(b) shall take effect as if included in the provisions of the American Jobs
Creation Act of 2004 to which they relate.</text>
</paragraph><paragraph changed="added" commented="no" display-inline="no-display-inline" id="id2EC9982EAEA64F44B2AB2DEE67237AAA"><enum>(2)</enum><header>Transportation
Equity Act for the 21st Century</header><text>The amendment made by subsection
(c) shall take effect as if included in the provision of the Transportation
Equity Act for the 21st Century to which it relates.</text>
</paragraph></subsection></section><enum>V</enum><header>Revenue offset
provisions</header>
<section id="ID15A8803CD9284B6CA5CE307A639993DF"><enum>501.</enum><header>Treatment of
contingent payment convertible debt instruments</header>
<subsection id="IDD9E5A50C58354681830614E6805FB6B0"><enum>(a)</enum><header>In
general</header><text>Section 1275(d) (relating to regulation authority) is
amended—</text>
<paragraph id="ID0306B8FCF21949F885796692EF202497"><enum>(1)</enum><text>by striking
<quote>The Secretary</quote> and inserting the following:</text>
<quoted-block id="ID1A7B2CB20B1842B7BB818B9433A0ECA3">
<paragraph id="ID5D18F7A038554439B8E07C70C169657B"><enum>(1)</enum><header>In
general</header><text>The Secretary</text>
</paragraph><after-quoted-block>,
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID17A3C5B5CB2D471AB7B7B7B4E110B05F"><enum>(2)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block id="IDB32EA89BBD9B47BFAB03A27720910832">
<paragraph id="IDA61199BEEEA8456980ACD85324449CF2"><enum>(2)</enum><header>Treatment of
contingent payment convertible debt</header>
<subparagraph id="ID1676FD11CD784571905CD41E72B51B7E"><enum>(A)</enum><header>In
general</header><text>In the case of a debt instrument which—</text>
<clause id="IDF6C54F29CA344EF7944BF923CBD48FD1"><enum>(i)</enum><text>is convertible
into stock of the issuing corporation, into stock or debt of a related party
(within the meaning of section 267(b) or 707(b)(1)), or into cash or other
property in an amount equal to the approximate value of such stock or debt,
and</text>
</clause><clause id="ID005EBB4C4EF840EA81E325F3D5D5C620"><enum>(ii)</enum><text>provides for
contingent payments,</text>
</clause><continuation-text continuation-text-level="subparagraph">any
regulations which require original issue discount to be determined by reference
to the comparable yield of a noncontingent fixed-rate debt instrument shall be
applied as if the regulations require that such comparable yield be determined
by reference to a noncontingent fixed-rate debt instrument which is convertible
into stock.</continuation-text></subparagraph><subparagraph id="ID10439E1B5B464E7ABC6FE01AD56407E5"><enum>(B)</enum><header>Special
rule</header><text>For purposes of subparagraph (A), the comparable yield shall
be determined without taking into account the yield resulting from the
conversion of a debt instrument into
stock.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID2753BE6D15FD4CE297095D0A763CC6B2"><enum>(b)</enum><header>Cross
reference</header><text>Section 163(e)(6) (relating to cross references) is
amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idE837F90A2F9F4A70B4235DA3CDF377C4" style="OLC">
<quoted-block-continuation-text quoted-block-continuation-text-level="subparagraph">For the
treatment of contingent payment convertible debt, see section
1275(d)(2).</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDA016557A44E6440685D9F1C1CE0B7D69"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to debt
instruments issued on or after the date of the enactment of this Act.</text>
</subsection></section><section id="ID0A54D37543CB4959A10FEF51C1748775"><enum>502.</enum><header>Frivolous tax
submissions</header>
<subsection id="ID52571B07A279488EB111C199B0ED2FF2"><enum>(a)</enum><header>Civil
penalties</header><text>Section 6702 is amended to read as follows:</text>
<quoted-block id="ID3A9FFB86ECA94A43928574054FBC0F85">
<section id="ID5C4D1B4A218B44F69FEC3172C671635D"><enum>6702.</enum><header>Frivolous tax
submissions</header>
<subsection id="ID49728D8116DD447CB0B99C4E5F09BA78"><enum>(a)</enum><header>Civil penalty
for frivolous tax returns</header><text>A person shall pay a penalty of $5,000
if—</text>
<paragraph id="IDE6E90BD18AF3451ABE9582641A7C864D"><enum>(1)</enum><text>such person files
what purports to be a return of a tax imposed by this title but which—</text>
<subparagraph id="ID8905EE84538D4E7F84E514987E6E58EA"><enum>(A)</enum><text>does not contain
information on which the substantial correctness of the self-assessment may be
judged, or</text>
</subparagraph><subparagraph id="ID941291E5D6A24BEA8AFB31720964EDEA"><enum>(B)</enum><text>contains
information that on its face indicates that the self-assessment is
substantially incorrect; and</text>
</subparagraph></paragraph><paragraph id="IDF7467E44C9F94B71B57D84FAD4AF0EC4"><enum>(2)</enum><text>the conduct
referred to in paragraph (1)—</text>
<subparagraph id="ID48A37E8EB51546559C4269C68DD97474"><enum>(A)</enum><text>is based on a
position which the Secretary has identified as frivolous under subsection (c),
or</text>
</subparagraph><subparagraph id="IDD5286A2BB2B14D448BB110AE8FDC044E"><enum>(B)</enum><text>reflects a desire
to delay or impede the administration of Federal tax laws.</text>
</subparagraph></paragraph></subsection><subsection id="ID7671895BC8C64AFEA0FE553E2624FC33"><enum>(b)</enum><header>Civil penalty
for specified frivolous submissions</header>
<paragraph id="IDB3AF1B837B9C43BF8756C4E5EC68EF19"><enum>(1)</enum><header>Imposition of
penalty</header><text>Except as provided in paragraph (3), any person who
submits a specified frivolous submission shall pay a penalty of $5,000.</text>
</paragraph><paragraph id="ID80090736F01B4E7AA292BC43C5EFF279"><enum>(2)</enum><header>Specified
frivolous submission</header><text>For purposes of this section—</text>
<subparagraph id="ID9AA8ABD13D8D4F70A6B6BBBAA17FFBC5"><enum>(A)</enum><header>Specified
frivolous submission</header><text>The term <term>specified frivolous
submission</term> means a specified submission if any portion of such
submission—</text>
<clause id="IDEAF79DABFEDB454092F78EB20D4D5F8D"><enum>(i)</enum><text>is based on a
position which the Secretary has identified as frivolous under subsection (c),
or</text>
</clause><clause id="ID6196D940BC2B4FDBB15EEE1663468259"><enum>(ii)</enum><text>reflects a
desire to delay or impede the administration of Federal tax laws.</text>
</clause></subparagraph><subparagraph id="ID284C66CF81774839BF747B49AEB81896"><enum>(B)</enum><header>Specified
submission</header><text>The term <term>specified submission</term>
means—</text>
<clause id="ID9D1BA0275D764095BBFB37DB6E650E8A"><enum>(i)</enum><text>a
request for a hearing under—</text>
<subclause id="ID46D78494F40148ACB6A720824F851373"><enum>(I)</enum><text>section 6320
(relating to notice and opportunity for hearing upon filing of notice of lien),
or</text>
</subclause><subclause id="ID9270FF52BFA14ED9B9D9E7A243E51936"><enum>(II)</enum><text>section 6330
(relating to notice and opportunity for hearing before levy), and</text>
</subclause></clause><clause id="IDB29384FBA0204B4FBE0D9490D6C34924"><enum>(ii)</enum><text>an application
under—</text>
<subclause id="ID8B2E955FD9C945B58DDC02CBD3BD083C"><enum>(I)</enum><text>section 6159
(relating to agreements for payment of tax liability in installments),</text>
</subclause><subclause id="IDA6FCA084F5F64A15ACA3AFDF7ED23301"><enum>(II)</enum><text>section 7122
(relating to compromises), or</text>
</subclause><subclause id="ID8F9E6A952A8E403CB1CA7D8CB34D4D50"><enum>(III)</enum><text>section 7811
(relating to taxpayer assistance orders).</text>
</subclause></clause></subparagraph></paragraph><paragraph id="ID8B97DC9289D649C8A0C62E90484D66BB"><enum>(3)</enum><header>Opportunity to
withdraw submission</header><text>If the Secretary provides a person with
notice that a submission is a specified frivolous submission and such person
withdraws such submission within 30 days after such notice, the penalty imposed
under paragraph (1) shall not apply with respect to such submission.</text>
</paragraph></subsection><subsection id="ID6294E85B47C24B63873FEF103F863503"><enum>(c)</enum><header>Listing of
frivolous positions</header><text>The Secretary shall prescribe (and
periodically revise) a list of positions which the Secretary has identified as
being frivolous for purposes of this subsection. The Secretary shall not
include in such list any position that the Secretary determines meets the
requirement of section 6662(d)(2)(B)(ii)(II).</text>
</subsection><subsection id="IDCF05F3C388C746AF8604F20CDF269B31"><enum>(d)</enum><header>Reduction of
penalty</header><text>The Secretary may reduce the amount of any penalty
imposed under this section if the Secretary determines that such reduction
would promote compliance with and administration of the Federal tax
laws.</text>
</subsection><subsection id="IDF46BA8066BB4494F988F07CA3474A6A3"><enum>(e)</enum><header>Penalties in
addition to other penalties</header><text>The penalties imposed by this section
shall be in addition to any other penalty provided by
law.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID3B32DEAA97484712897F55A2AE24845F"><enum>(b)</enum><header>Treatment of
frivolous requests for hearings before levy</header>
<paragraph id="IDAABB6825EC1E4FCC9F1F875B1AE5701F"><enum>(1)</enum><header>Frivolous
requests disregarded</header><text>Section 6330 (relating to notice and
opportunity for hearing before levy) is amended by adding at the end the
following new subsection:</text>
<quoted-block id="IDD6A7DCFF44034B048ACE9CB641B5A1B4">
<subsection id="ID3EDA1BF598064FFA8F050359C17937CB"><enum>(g)</enum><header>Frivolous
requests for hearing, etc</header><text>Notwithstanding any other provision of
this section, if the Secretary determines that any portion of a request for a
hearing under this section or section 6320 meets the requirement of clause (i)
or (ii) of section 6702(b)(2)(A), then the Secretary may treat such portion as
if it were never submitted and such portion shall not be subject to any further
administrative or judicial
review.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID5ACD6CFF80AA4B2088D5AD2A7D04EC69"><enum>(2)</enum><header>Preclusion from
raising frivolous issues at hearing</header><text>Section 6330(c)(4) is
amended—</text>
<subparagraph id="ID21FB89D42944432E8A021F2BE6FE9EB8"><enum>(A)</enum><text>by striking
<quote>(A)</quote> and inserting <quote>(A)(i)</quote>;</text>
</subparagraph><subparagraph id="ID36414E01B25C4B75B8A010E6034A25D5"><enum>(B)</enum><text>by striking
<quote>(B)</quote> and inserting <quote>(ii)</quote>;</text>
</subparagraph><subparagraph id="IDB84C117CCB144981A2FDE8C226C64190"><enum>(C)</enum><text>by striking the
period at the end of the first sentence and inserting <quote>; or</quote>;
and</text>
</subparagraph><subparagraph id="ID980727D3F718443A9F7B9319EAC67577"><enum>(D)</enum><text>by inserting
after subparagraph (A)(ii) (as so redesignated) the following:</text>
<quoted-block id="ID2ECC1111A75E41EAAB204A3F5FA60885">
<subparagraph id="ID33B671BC0C674ED69D2B8A01BE5C2EC3"><enum>(B)</enum><text>the issue meets
the requirement of clause (i) or (ii) of section
6702(b)(2)(A).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="ID9921AF03E6B0455BB6FB84416499040B"><enum>(3)</enum><header>Statement of
grounds</header><text>Section 6330(b)(1) is amended by striking <quote>under
subsection (a)(3)(B)</quote> and inserting <quote>in writing under subsection
(a)(3)(B) and states the grounds for the requested hearing</quote>.</text>
</paragraph></subsection><subsection id="IDA2AE521728134D7E83C92B994FAF1AAE"><enum>(c)</enum><header>Treatment of
frivolous requests for hearings upon filing of notice of
lien</header><text>Section 6320 is amended—</text>
<paragraph id="ID2ADD7AB5FCDE41B6B324EB2835E4BD8B"><enum>(1)</enum><text>in subsection
(b)(1), by striking <quote>under subsection (a)(3)(B)</quote> and inserting
<quote>in writing under subsection (a)(3)(B) and states the grounds for the
requested hearing</quote>, and</text>
</paragraph><paragraph id="ID69BD3958F6264A46B0A777A1F4DB4DAF"><enum>(2)</enum><text>in subsection
(c), by striking <quote>and (e)</quote> and inserting <quote>(e), and
(g)</quote>.</text>
</paragraph></subsection><subsection id="ID2EA065045D4849B8AB19762024C8BABF"><enum>(d)</enum><header>Treatment of
frivolous applications for Offers-in-Compromise and installment
agreements</header><text>Section 7122 is amended by adding at the end the
following new subsection:</text>
<quoted-block id="IDFFC5EC7AFE1A4C4E9B3B387FEC7EA828">
<subsection id="ID1C5E8F90C3AE4B83A30FE5A9E1903348"><enum>(e)</enum><header>Frivolous
submissions, etc</header><text>Notwithstanding any other provision of this
section, if the Secretary determines that any portion of an application for an
offer-in-compromise or installment agreement submitted under this section or
section 6159 meets the requirement of clause (i) or (ii) of section
6702(b)(2)(A), then the Secretary may treat such portion as if it were never
submitted and such portion shall not be subject to any further administrative
or judicial
review.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDFC25176CE05941398312E28283F51549"><enum>(e)</enum><header>Clerical
amendment</header><text>The table of sections for part I of subchapter B of
chapter 68 is amended by striking the item relating to section 6702 and
inserting the following new item:</text>
<quoted-block id="ID1C2FCD26433D457E91AB83181DE8FD76" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 6702. Frivolous tax
submissions.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID72B57794044D47DB8DE427401DEC4B5A"><enum>(f)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
submissions made and issues raised after the date on which the Secretary first
prescribes a list under section 6702(c) of the Internal Revenue Code of 1986,
as amended by subsection (a).</text>
</subsection></section><section id="ID45AC35DDF8FB4E0388D4C49E96D913D9"><enum>503.</enum><header>Increase in
certain criminal penalties</header>
<subsection id="IDCA3566004F064E31A81EC56358EE42D9"><enum>(a)</enum><header>In
general</header><text>Section 7206 (relating to fraud and false statements) is
amended—</text>
<paragraph id="IDF161DB0AB4014565BD413AA8C892FE7F"><enum>(1)</enum><text>by striking “Any
person who—” and inserting “(a)<header-in-text level="subsection" style="OLC">
In general</header-in-text>.—Any person who—”, and</text>
</paragraph><paragraph id="IDEC3554882F34411091225CCD1B93B9E3"><enum>(2)</enum><text>by adding at the
end the following new subsection:</text>
<quoted-block id="ID83BAB75A0941499E82D7124001D5DB84">
<subsection id="IDFC0495C40AF2440DA943F54170B64F1A"><enum>(b)</enum><header>Increase in
monetary limitation for underpayment or overpayment of tax due to
fraud</header><text>If any portion of any underpayment (as defined in section
6664(a)) or overpayment (as defined in section 6401(a)) of tax required to be
shown on a return is attributable to fraudulent action described in subsection
(a), the applicable dollar amount under subsection (a) shall in no event be
less than an amount equal to such portion. A rule similar to the rule under
section 6663(b) shall apply for purposes of determining the portion so
attributable.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID03DF6628157E41F1B30E855549680254"><enum>(b)</enum><header>Increase in
penalties</header>
<paragraph id="ID3B0844BF65CE40809343B39680AE2254"><enum>(1)</enum><header>Attempt to
evade or defeat tax</header><text>Section 7201 is amended—</text>
<subparagraph id="ID47DAF13FE644481B8E6C6BB582227A65"><enum>(A)</enum><text>by striking
<quote>$100,000</quote> and inserting <quote>$500,000</quote>,</text>
</subparagraph><subparagraph id="ID06154B0107BB43C1A615964A7441F645"><enum>(B)</enum><text>by striking
<quote>$500,000</quote> and inserting <quote>$1,000,000</quote>, and</text>
</subparagraph><subparagraph id="IDC59A9EE6BAE5427482A2D724FB4F4CB0"><enum>(C)</enum><text>by striking
<quote>5 years</quote> and inserting <quote>10 years</quote>.</text>
</subparagraph></paragraph><paragraph id="ID72A2EA42B8A64549B667484F4A161C88"><enum>(2)</enum><header>Willful failure
to file return, supply information, or pay tax</header><text>Section 7203 is
amended—</text>
<subparagraph id="ID0D7E046DC5B74A15852459E1CE9B18DB"><enum>(A)</enum><text>in the first
sentence—</text>
<clause id="IDD47CD8E2329542E3BCC86A109240DEA2"><enum>(i)</enum><text>by
striking <quote>Any person</quote> and inserting the following:</text>
<quoted-block id="IDF35EE4F0835C491592DB83923C00A248">
<subsection id="ID46C9E2D2C9EF430898BA38BD151837C2"><enum>(a)</enum><header>In
general</header><text>Any person</text>
</subsection><after-quoted-block>,
and</after-quoted-block></quoted-block>
</clause><clause id="IDED3FA5C16D84402984F7B8D7E2E324FC"><enum>(ii)</enum><text>by
striking <quote>$25,000</quote> and inserting <quote>$50,000</quote>,</text>
</clause></subparagraph><subparagraph id="IDA63124083E2544419FCC08DCC819DD0A"><enum>(B)</enum><text>in the third
sentence, by striking <quote>section</quote> and inserting
<quote>subsection</quote>, and</text>
</subparagraph><subparagraph id="ID4AD155A48144493D8CEFAB23DE1B962D"><enum>(C)</enum><text>by adding at the
end the following new subsection:</text>
<quoted-block id="ID4C6CBBF5B0C4477A826E4C3CC0F18EC3">
<subsection id="ID3647E03E408843198422070EE462473F"><enum>(b)</enum><header>Aggravated
failure To file</header>
<paragraph id="IDF5D8F40DF9344BAFB40E148C58E50E80"><enum>(1)</enum><header>In
general</header><text>In the case of any failure described in paragraph (2),
the first sentence of subsection (a) shall be applied by substituting—</text>
<subparagraph id="IDA7089CA951E54F038161AF30C52924AA"><enum>(A)</enum><text><quote>felony</quote>
for <quote>misdemeanor</quote>,</text>
</subparagraph><subparagraph id="ID50CD242B913B49688E799E49F09B26C6"><enum>(B)</enum><text><quote>$500,000
($1,000,000</quote> for <quote>$25,000 ($100,000</quote>, and</text>
</subparagraph><subparagraph id="ID17AADFC9FEB24B6E914EE33036F85E99"><enum>(C)</enum><text><quote>10
years</quote> for <quote>1 year</quote>.</text>
</subparagraph></paragraph><paragraph id="ID9C2459406DFB4C02B9C2EEAAF87E6E42"><enum>(2)</enum><header>Failure
described</header><text>A failure described in this paragraph is a failure to
make a return described in subsection (a) for a period of 3 or more consecutive
taxable years and the aggregated tax liability for such period is at least
$100,000.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="ID390321B86DEE45BAA0C25E640D026166"><enum>(3)</enum><header>Fraud and false
statements</header><text>Section 7206(a) (as redesignated by subsection (a)) is
amended—</text>
<subparagraph id="IDBD752590B73A46909CE76D59A921BAD8"><enum>(A)</enum><text>by striking
<quote>$100,000</quote> and inserting <quote>$500,000</quote>,</text>
</subparagraph><subparagraph id="IDB3C6512293944DD2ACAC51E3E11C6587"><enum>(B)</enum><text>by striking
<quote>$500,000</quote> and inserting <quote>$1,000,000</quote>, and</text>
</subparagraph><subparagraph id="ID9A338CD53E3A448588B068C144ADF4A6"><enum>(C)</enum><text>by striking
<quote>3 years</quote> and inserting <quote>5 years</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="ID926CEFEC83A0440BAD8CAE2E0A51D57D"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to actions,
and failures to act, occurring after the date of the enactment of this
Act.</text>
</subsection></section><section id="IDFB567AFEF17845F7A14E6D4070450630"><enum>504.</enum><header>Doubling of
certain penalties, fines, and interest on underpayments related to certain
offshore financial arrangements</header>
<subsection id="IDDDD29D5717F34ABA969E7C345410EA2F"><enum>(a)</enum><header>Determination
of penalty</header>
<paragraph id="IDB7E7908475244D2CAA50CDD1A106BA2E"><enum>(1)</enum><header>In
general</header><text>Notwithstanding any other provision of law, in the case
of an applicable taxpayer—</text>
<subparagraph id="ID07E7885624264311A91F256AC8E583D9"><enum>(A)</enum><text>the determination
as to whether any interest or applicable penalty is to be imposed with respect
to any arrangement to which any initiative described in paragraph (2) applied,
or to any underpayment of Federal income tax attributable to items arising in
connection with any arrangement described in paragraph (2), shall be made
without regard to section 6664 of the Internal Revenue Code of 1986, and</text>
</subparagraph><subparagraph id="ID46E2B8D80C6C4E04AA6EA3248FDBB20C"><enum>(B)</enum><text>if any such
interest or applicable penalty is imposed, the amount of such interest or
penalty shall be equal to twice that determined without regard to this
section.</text>
</subparagraph></paragraph><paragraph id="ID440679BDC8184AFB87B9C45BBE626263"><enum>(2)</enum><header>Applicable
taxpayer</header><text>For purposes of this subsection, the term
<term>applicable taxpayer</term> means a taxpayer who was eligible to
participate in, but did not participate in—</text>
<subparagraph id="ID8CC220DD2E6F4C748AADFAE8B7E2CF19"><enum>(A)</enum><text>the Department of
the Treasury’s Offshore Voluntary Compliance Initiative, or</text>
</subparagraph><subparagraph id="IDD209A7A5D8974290B4A35DCF539CA35D"><enum>(B)</enum><text>the Department of
the Treasury’s voluntary disclosure initiative which applies to the taxpayer by
reason of the taxpayer’s underreporting of United States income tax liability
through financial arrangements which rely on the use of offshore arrangements
which were the subject of the initiative described in subparagraph (A).</text>
</subparagraph></paragraph></subsection><subsection id="ID29338813B0404F4BA625A8CD97322847"><enum>(b)</enum><header>Definitions and
rules</header><text>For purposes of this section—</text>
<paragraph id="IDE5AFC9F5427B43E6997964A87CE764C1"><enum>(1)</enum><header>Applicable
penalty</header><text>The term <term>applicable penalty</term> means any
penalty, addition to tax, or fine imposed under chapter 68 of the Internal
Revenue Code of 1986.</text>
</paragraph><paragraph id="ID1A3D86993BB14C0C80DB7B27A2400BD6"><enum>(2)</enum><header>Voluntary
Offshore Compliance Initiative</header><text>The term <term>Voluntary Offshore
Compliance Initiative</term> means the program established by the Department of
the Treasury in January 2003, under which any taxpayer was eligible to
voluntarily disclose previously undisclosed income on assets placed in offshore
accounts and accessed through credit card and other financial
arrangements.</text>
</paragraph><paragraph id="ID1148836693EC4D86807F209AC642698C"><enum>(3)</enum><header>Participation</header><text>A
taxpayer shall be treated as having participated in the Voluntary Offshore
Compliance Initiative if the taxpayer submitted the request in a timely manner
and all information requested by the Secretary of the Treasury or his delegate
within a reasonable period of time following the request.</text>
</paragraph></subsection><subsection id="ID5EA4774A892948B49CD1CDE3B94AF1BC"><enum>(c)</enum><header>Effective
date</header><text>The provisions of this section shall apply to interest,
penalties, additions to tax, and fines with respect to any taxable year if, as
of the date of the enactment of this Act, the assessment of any tax, penalty,
or interest with respect to such taxable year is not prevented by the operation
of any law or rule of law.</text>
</subsection></section><section id="IDDB9E45CD438649AFABA167E61210F761"><enum>505.</enum><header>Modification
of interaction between subpart <enum-in-header>F</enum-in-header> and passive
foreign investment company rules</header>
<subsection id="IDD1A3849DD40A403391E1257E4ECE6766"><enum>(a)</enum><header>Limitation on
exception from PFIC rules for United States shareholders of controlled foreign
corporations</header><text>Paragraph (2) of section 1297(e) (relating to
passive foreign investment company) is amended by adding at the end the
following flush sentence:</text>
<quoted-block display-inline="no-display-inline" id="IDBCE10ED34FD24F988929793A0FD4054C" style="OLC">
<quoted-block-continuation-text quoted-block-continuation-text-level="paragraph">Such term
shall not include any period if the earning of subpart F income by such
corporation during such period would result in only a remote likelihood of an
inclusion in gross income under section
951(a)(1)(A)(i).</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID814218C17FD84820A8ECE69396093F4C"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to taxable
years of controlled foreign corporations beginning after March 2, 2005, and to
taxable years of United States shareholders with or within which such taxable
years of controlled foreign corporations end.</text>
</subsection></section><section id="IDCA83AA492CFE4807BA3C667B9E799CBE"><enum>506.</enum><header>Declaration by
chief executive officer relating to Federal annual corporate income tax
return</header>
<subsection id="ID02C3CA2A5CCA465C9682D82FADF71EFD"><enum>(a)</enum><header>In
general</header><text>The Federal annual tax return of a corporation with
respect to income shall also include a declaration signed by the chief
executive officer of such corporation (or other such officer of the corporation
as the Secretary of the Treasury may designate if the corporation does not have
a chief executive officer), under penalties of perjury, that the corporation
has in place processes and procedures that ensure that such return complies
with the Internal Revenue Code of 1986 and that the chief executive officer was
provided reasonable assurance of the accuracy of all material aspects of such
return. The preceding sentence shall not apply to any return of a regulated
investment company (within the meaning of section 851 of such Code).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID0CEC983CE2554EADAF9999B81D72F9EA"><enum>(b)</enum><header>Effective
date</header><text>This section shall apply to Federal annual tax returns for
taxable years ending after the date of the enactment of this Act.</text>
</subsection></section><section id="ID12BB37CC25F6458FA99EF6209F726AFE"><enum>507.</enum><header>Treasury
regulations on foreign tax credit</header><text display-inline="no-display-inline">Section 901 (relating to taxes of foreign
countries and of possessions of United States) is amended by redesignating
subsection (m) as subsection (n) and by inserting after subsection (l) the
following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="id564436E6BFFB4F1DB8DBFFC9F89973BB" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="ID491FDBF66BA240A785BCB2E502CF5333"><enum>(m)</enum><header>Regulations</header><text>The
Secretary may prescribe regulations disallowing a credit under subsection (a)
for all or a portion of any foreign tax, or allocating a foreign tax among 2 or
more persons, in cases where the foreign tax is imposed on any person in
respect of income of another person or in other cases involving the
inappropriate separation of the foreign tax from the related foreign
income.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section>
June 14, 2005
Read twice and placed on the calendar