Short title

This Act may be cited as the

Gas Price Relief Act of 2007

Temporary suspension of motor fuel taxes

(a)

In general

Section 4081 of the Internal Revenue Code of 1986 (relating to imposition of tax on gasoline, diesel fuel, and kerosene) is amended by adding at the end the following new subsection:

(f)

Temporary suspension of taxes

(1)

In general

During the suspension period, each rate of tax referred to in paragraph (2) shall be zero. (2)

Rates of tax

The rates of tax referred to in this paragraph are the rates of tax otherwise applicable under— (A)paragraphs (1), (2), and (3) of section 4041(a) (relating to retail taxes on diesel fuel, special motor fuels, and compressed natural gas), (B)section 4041(d) (relating to additional taxes to fund Leaking Underground Storage Tank Trust Fund), (C)section 4041(m) (relating to certain alcohol fuels), (D)clauses (i) and (iii) of subsection (a)(2)(A) (relating to gasoline, diesel fuel, and kerosene), and (E)subsection (a)(2)(B) (relating to Leaking Underground Storage Tank Trust Fund tax). (3)

Exceptions

Paragraph (1) shall not apply to— (A)any tax imposed by section 4041 on fuel sold for use or used in a train or motorboat, and (B)any tax imposed by section 4081 on gasoline or kerosene used for aviation. (4)

Suspension period

For purposes of this subsection, the term suspension period means the period beginning on the date of the enactment of this subsection and ending on the last day of the first period of 6 consecutive months beginning after such date that the national average price of unleaded regular gasoline is less than $3.00 per gallon (as determined under section 6 of the Gas Price Relief Act of 2007). (5)

Maintenance of trust fund deposits

In determining the amounts to be appropriated to any trust fund, an amount equal to the reduction in revenues to the Treasury by reason of a reduction under this subsection in any rate shall be treated as taxes received in the Treasury under such rate.

(b)

Effective date

The amendments made by this section shall take effect on the date of the enactment of this Act.

Repeal of expensing for certain refineries

(a)

In general

Section 179C of the Internal Revenue Code of 1986 (relating to election to expense certain refineries) is hereby repealed. (b)

Technical amendments

(1)Section 1245(a) of such Code is amended by striking 179C, each place it appears. (2)Section 263(a)(1) of such Code is amended by adding or at the end of subparagraph (H), by striking , or at the end of subparagraph (I) and inserting a period, and by striking subparagraph (J). (3)Section 312(k)(3)(B) of such Code is amended by striking 179B, or 179C each place it appears in the heading and the text and inserting , or 179B. (4)The table of sections for part VI of subchapter B of chapter 1 of such Code is amended by striking the item relating to section 179C. (c)

Transfer of equivalent tax liability to highway trust fund

There are hereby appropriated to the Highway Trust Fund amounts equivalent to the aggregate net increase in tax liabilities under chapter 1 of the Internal Revenue Code of 1986 which is attributable to the repeal of section 179C of such Code by subsection (a). Such appropriated amounts shall be transferred from the general fund of the Treasury on the basis of estimates of such tax liabilities made by the Secretary of the Treasury. Transfers shall be made pursuant to a schedule made by the Secretary of the Treasury that takes into account estimated timing of collection of such liabilities. Proper adjustments shall be made in amounts transferred to the extent prior estimates were in excess of or less than the amounts required to be transferred. (d)

Effective date

The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.

Floor stock refunds

(a)

In general

If— (1)before the date of the enactment of this Act, a tax referred to in section 4081(f)(2) of the Internal Revenue Code of 1986 has been imposed on any liquid, and (2)on such date such liquid is held by a dealer and has not been used and is intended for sale,

there shall be credited or refunded (without interest) to the person who paid such tax (hereafter in this section referred to as the taxpayer) an amount equal to the excess of the tax paid by the taxpayer over the amount of such tax which would be imposed on such liquid had the taxable event occurred on such date.

(b)

Time for filing claims

No credit or refund shall be allowed or made under this section unless— (1)claim therefor is filed with the Secretary of the Treasury before the date which is 6 months after the date of the enactment of this Act, and (2)in any case where liquid is held by a dealer (other than the taxpayer) on the date of the enactment of this Act— (A)the dealer submits a request for refund or credit to the taxpayer before the date which is 3 months after such date, and (B)the taxpayer has repaid or agreed to repay the amount so claimed to such dealer or has obtained the written consent of such dealer to the allowance of the credit or the making of the refund. (c)

Exception for fuel held in retail stocks

No credit or refund shall be allowed under this section with respect to any liquid in retail stocks held at the place where intended to be sold at retail. (d)

Definitions

For purposes of this section, the terms dealer and held by a dealer have the respective meanings given to such terms by section 6412 of such Code; except that the term dealer includes a producer. (e)

Certain rules To apply

Rules similar to the rules of subsections (b) and (c) of section 6412 of such Code shall apply for purposes of this section.

Floor stocks tax

(a)

Imposition of tax

In the case of any taxable liquid which is held on the floor stocks tax date by any person, there is hereby imposed a floor stocks tax equal to the excess of the tax which would be imposed on such liquid under any section of the Internal Revenue Code of 1986 referred to in section 4081(f)(2) of such Code had the taxable event occurred on the floor stocks tax date over the tax paid under any such section on such liquid. (b)

Liability for tax and method of payment

(1)

Liability for tax

A person holding a liquid on the floor stocks tax date to which the tax imposed by subsection (a) applies shall be liable for such tax. (2)

Method of payment

The tax imposed by subsection (a) shall be paid in such manner as the Secretary shall prescribe. (3)

Time of payment

The tax imposed by subsection (a) shall be paid on or before the date which is 6 months after the floor stocks tax date. (c)

Definitions

For purposes of this section— (1)

Held by a person

A liquid shall be considered as held by a person if title thereto has passed to such person (whether or not delivery to the person has been made). (2)

Taxable liquid

The term taxable liquid means any liquid on which a tax referred to in section 4081(a)(2) of such Code is imposed on the floor stocks tax date. (3)

Floor stock tax date

The term floor stocks tax date means the first day after the suspension period (as defined in section 4081(f)(4) of such Code). (4)

Secretary

The term Secretary means the Secretary of the Treasury or the Secretary's delegate. (d)

Exception for exempt uses

The tax imposed by subsection (a) shall not apply to taxable liquid held by any person exclusively for any use to the extent a credit or refund of the tax imposed by a section of the Code referred to in section 4081(a)(2) of such Code is allowable for such use. (e)

Exception for fuel held in vehicle tank

No tax shall be imposed by subsection (a) on taxable liquid held in the tank of a motor vehicle or motorboat. (f)

Exception for certain amounts of fuel

(1)

In general

No tax shall be imposed by subsection (a) on any liquid held on the floor stocks tax date by any person if the aggregate amount of liquid held by such person on such date does not exceed 2,000 gallons. The preceding sentence shall apply only if such person submits to the Secretary (at the time and in the manner required by the Secretary) such information as the Secretary shall require for purposes of this paragraph. (2)

Exempt fuel

For purposes of paragraph (1), there shall not be taken into account fuel held by any person which is exempt from the tax imposed by subsection (a) by reason of subsection (d) or (e). (3)

Controlled groups

For purposes of this section— (A)

Corporations

(i)

In general

All persons treated as a controlled group shall be treated as 1 person. (ii)

Controlled group

The term controlled group has the meaning given to such term by subsection (a) of section 1563 of such Code; except that for such purposes the phrase more than 50 percent shall be substituted for the phrase at least 80 percent each place it appears in such subsection. (B)

Nonincorporated persons under common control

Under regulations prescribed by the Secretary, principles similar to the principles of subparagraph (A) shall apply to a group of persons under common control where 1 or more of such persons is not a corporation. (g)

Other laws applicable

All provisions of law, including penalties, applicable with respect to the taxes imposed by chapter 31 or 32 of such Code shall, insofar as applicable and not inconsistent with the provisions of this section, apply with respect to the floor stock taxes imposed by subsection (a) to the same extent as if such taxes were imposed by such chapter.

Gasoline price monitoring

(a)

Establishment of monitoring program

The Federal Trade Commission shall carry out a program to monitor gasoline prices in the United States. (b)

Monthly determination of national average price of unleaded regular gasoline

In carrying out the program, the Commission shall determine for each month the national average price of unleaded regular gasoline at retail stations. (c)

Reports

Not later than the 15th day of each month beginning after the 180th day following the date of enactment of this Act, the Commission shall— (1)transmit to Congress a report containing the results of monitoring conducted under the program in the preceding month, including the determination required under subsection (b); and (2)make a copy of the report available to the public in an electronic format on an Internet website maintained by the Commission.

Commission on gas price relief

(a)

Establishment

Not later than three months after the date of enactment of this Act, the Speaker of the House of Representatives shall establish a Commission on Gas Price Relief. (b)

Study and report

The Commission shall conduct a study of the causes of high oil prices and submit a report to the House of Representatives within 1 year after the date on which such Commission is established. The report shall include a determination of revenue raisers in addition to the repeal of section 179C of the Internal Revenue Code of 1986 (made by section 3 of this Act) that would help replenish the Treasury for the loss in revenue resulting from any suspension of the Federal excise taxes on motor fuels under section 4081(f) of the Internal Revenue Code of 1986 (as added by section 2 of this Act). (c)

Membership

The Commission shall be comprised of 9 Members, as follows: (1)The Chairman of the Committee on Ways and Means, ex officio. (2)The Chairman of the Committee on Energy and Commerce, ex officio. (3)One member, appointed by the Chairman of the Committee on Ways and Means, who shall not be from the same political party as the Chairman. (4)One member, appointed by the Chairman of the Committee on Energy and Commerce, who shall not be from the same political party as the Chairman. (5)Five members appointed by the Speaker, of whom at least two shall not be from the same political party as the Speaker. (d)

Co-chairs

The Chairman of the Committee on Ways and Means and the Chairman of the Committee on Energy and Commerce shall serve as co-chairmen of the Commission.