[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2401 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                S. 2401

 To amend the Internal Revenue Code of 1986 to allow a refund of motor 
  fuel excise taxes for the actual off-highway use of certain mobile 
                          machinery vehicles.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            December 3, 2007

 Ms. Cantwell (for herself, Mr. Allard, Mr. Isakson, Mr. Salazar, and 
Mr. Brownback) introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to allow a refund of motor 
  fuel excise taxes for the actual off-highway use of certain mobile 
                          machinery vehicles.

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

SECTION 1. REFUND OF MOTOR FUEL EXCISE TAXES FOR ACTUAL OFF-HIGHWAY USE 
              OF CERTAIN MOBILE MACHINERY VEHICLES.

    (a) In General.--Subparagraph (C) of section 6421(e)(2) of the 
Internal Revenue Code of 1986 (relating to off-highway business use of 
mobile machinery) is amended by adding at the end the following new 
clauses:
                            ``(v) Use of mobile machinery with greater 
                        highway miles.--If--
                                    ``(I) a vehicle meets the 
                                requirements of clause (iii) but does 
                                not (but for this clause) meet the 
                                requirements of clause (iv), and
                                    ``(II) more than 50 percent of the 
                                fuel use of such vehicle during a 
                                taxable year is in non-propulsive 
                                operations,
                        such vehicle shall be treated as meeting the 
                        requirements of clause (iv) for such taxable 
                        year.
                            ``(vi) Amount of fuel used in non-
                        propulsive operations.--For purposes of 
                        vehicles described in clause (v),
                                    ``(I) only the fuel used in non-
                                propulsive operations may be taken into 
                                account as off-highway business use of 
                                such vehicle for such taxable year, and
                                    ``(II) the Secretary shall 
                                establish standard percentage exemption 
                                rates for vehicle types that the 
                                Secretary determines to qualify under 
                                clause (v).''.
    (b) Refunds Borne by General Fund.--Paragraph (2) of section 
9503(c) of such Code (relating to transfers from Highway Trust Fund for 
certain repayment and credits) is amended by adding at the end the 
following new subparagraph:
                    ``(D) Exception for use in certain mobile 
                machinery.--Subparagraph (A) shall not apply to amounts 
                paid by reason of clauses (v) and (vi) of section 
                6421(e)(2)(C).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxes on fuel used in taxable years beginning after the date 
of the enactment of this Act.
                                 <all>