[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6106 Introduced in House (IH)]

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110th CONGRESS
  2d Session
                                H. R. 6106

 To amend the Internal Revenue Code of 1986 to temporarily reduce the 
   excise tax on diesel fuel and kerosene to the rate applicable to 
                               gasoline.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 21, 2008

Mrs. Bono Mack introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to temporarily reduce the 
   excise tax on diesel fuel and kerosene to the rate applicable to 
                               gasoline.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``The Diesel Tax Fairness Act of 
2008''.

SEC. 2. TEMPORARY REDUCTION IN EXCISE TAX ON KEROSENE AND DIESEL FUEL 
              TO THE RATE APPLICABLE TO GASOLINE.

    (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 Reduction of Tax on Diesel Fuel and Kerosene (Other 
Than Aviation-Grade Kerosene).--
            ``(1) In general.--During the temporary reduction period--
                    ``(A) the rate of tax applicable under subsection 
                (a)(2)(A)(iii) shall be 18.3 cents, and
                    ``(B) the rate of tax applicable under subsection 
                (a)(2)(D) shall be 14.8 cents.
            ``(2) Temporary reduction period.--For purposes of this 
        subsection, the temporary reduction period is the period--
                    ``(A) beginning on the date of the enactment of 
                this subsection, and
                    ``(B) ending on December 31, 2010.
            ``(3) 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 amendment made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 3. FLOOR STOCKS REFUNDS.

    (a) In General.--If--
            (1) before the date of the enactment of this Act, a tax 
        referred to in section 4081(f)(1) 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.

SEC. 4. 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 section 4041 or 4081 of the Internal 
Revenue Code of 1986 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 
        diesel fuel and kerosene (other than aviation-grade kerosene).
            (3) Floor stocks date.--The term ``floor stocks tax date'' 
        means January 1, 2011.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
    (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.

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