[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6634 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 6634

 To amend the Internal Revenue Code of 1986 to allow dyed diesel to be 
            sold in rural areas for use in highway vehicles.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 29, 2008

   Mr. Hill 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 allow dyed diesel to be 
            sold in rural areas for use in highway vehicles.

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

SECTION 1. DYED DIESEL SOLD IN RURAL AREAS FOR USE IN HIGHWAY VEHICLES.

    (a) In General.--Paragraph (1) of section 4041(a) of the Internal 
Revenue Code of 1986 (relating to tax on diesel fuel and kerosene in 
certain cases) is amended by adding at the end the following new 
subparagraph:
                    ``(D) Exception for fuel sold in rural areas for 
                use in highway vehicles.--
                            ``(i) In general.--Subparagraph (A) shall 
                        not apply to any liquid sold in a rural area to 
                        any operator of a diesel-powered highway 
                        vehicle for use as a fuel in such vehicle.
                            ``(ii) Exception.--Clause (i) shall not 
                        apply to any sale for use in a vehicle which 
                        has a gross vehicle weight of 25,000 pounds or 
                        more.
                            ``(iii) Rural area.--For purposes of this 
                        subparagraph, the term `rural area' means any 
                        area other than--
                                    ``(I) a city or town that has a 
                                population of greater than 50,000 
                                inhabitants,
                                    ``(II) any urbanized area (as 
                                defined by the Bureau of the Census) 
                                contiguous and adjacent to a city or 
                                town described in subclause (I), and
                                    ``(III) any collection of census 
                                blocks contiguous to each other (as 
                                defined by the Bureau of the Census) 
                                that--
                                            ``(aa) is adjacent to a 
                                        city or town described in 
                                        subclause (I) or an urbanized 
                                        area described in subclause 
                                        (II), and
                                            ``(bb) has a housing 
                                        density that the Secretary 
                                        estimates is greater than 200 
                                        housing units per square mile.
                            ``(iv) Termination.--Clause (i) shall not 
                        apply to any sale after 1 year after the date 
                        of the enactment of this subparagraph.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to sales after the date of the enactment of this Act.
                                 <all>