[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1889 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 1889

To amend the Internal Revenue Code of 1986 to suspend the excise tax on 
              highway motor fuels, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 12, 2011

  Mr. Shuler 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 suspend the excise tax on 
              highway motor fuels, and for other purposes.

    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 ``Gas Tax Holiday Act''.

SEC. 2. SUSPENSION OF FUEL TAXES ON HIGHWAY MOTOR FUELS.

    (a) In General.--Section 4081 of the Internal Revenue Code of 1986 
(relating to imposition of tax on motor and aviation fuels) is amended 
by adding at the end the following new subsection:
    ``(f) Suspension of Highway Motor Fuel Taxes.--
            ``(1) In general.--During the suspension period, the tax 
        imposed by section 4041 or 4081 on highway motor fuel shall be 
        suspended.
            ``(2) Definitions.--For purposes of this subsection--
                    ``(A) Suspension period.--The term `suspension 
                period' means the 45-day period beginning 7 days after 
                the date of enactment of this subsection.
                    ``(B) Highway motor fuel.--The term `highway motor 
                fuel' means any fuel subject to tax under section 4041 
                or 4081 other than aviation gasoline and aviation-grade 
                kerosene.''.
    (b) Maintenance of Trust Funds Deposits; Amounts Appropriated to 
Trust Funds Treated as Taxes.--
            (1) In general.--There is hereby appropriated (out of any 
        money in the Treasury not otherwise appropriated) to each trust 
        fund which would (but for this subsection) receive reduced 
        revenues as a result of a suspension in a rate of tax by reason 
        of section 4081(f)(1) of the Internal Revenue Code of 1986 (as 
        added by this section) an amount equal to such reduction in 
        revenues. Amounts appropriated by the preceding sentence to any 
        trust fund--
                    (A) shall be transferred from the general fund at 
                such times and in such manner as to replicate to the 
                extent possible the transfers which would have occurred 
                had subsection (a) not been enacted, and
                    (B) shall be treated for all purposes of Federal 
                law as taxes received under the appropriate section 
                referred to in such section 4081(f)(1).
            (2) Mitigation of potential impact on trust funds.--
        Appropriations by paragraph (1) shall include such amounts as 
        are necessary to mitigate potential impacts on such trust funds 
        due to incurring costs associated with such reduction in 
        revenues.
    (c) Consumers to Benefit From Suspension.--It is the sense of 
Congress that consumers should immediately receive the benefit of the 
18.4 cents per gallon tax reduction by reason of the amendment made by 
section (a).
    (d) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.
    (e) Floor Stock Refunds.--
            (1) In general.--If--
                    (A) before the tax suspension date, tax has been 
                imposed under section 4081 of the Internal Revenue Code 
                of 1986 on any highway motor fuel, and
                    (B) on such date such fuel 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 subsection referred 
        to as the ``taxpayer'') an amount equal to the excess of the 
        tax paid by the taxpayer over the tax which would be imposed on 
        such fuel had the taxable event occurred on such date.
            (2) Time for filing claims.--No credit or refund shall be 
        allowed or made under this subsection unless--
                    (A) claim therefor is filed with the Secretary of 
                the Treasury before the date which is 6 months after 
                the tax suspension date based on a request submitted to 
                the taxpayer before the date which is 3 months after 
                the tax suspension date by the dealer who held the 
                highway motor fuel on 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.
            (3) Exception for fuel held in retail stocks.--No credit or 
        refund shall be allowed under this subsection with respect to 
        any highway motor fuel in retail stocks held at the place where 
        intended to be sold at retail.
            (4) Definitions.--For purposes of this subsection--
                    (A) Tax suspension date.--The term ``tax suspension 
                date'' means the first day of any suspension period in 
                effect under section 4081(f) of the Internal Revenue 
                Code of 1986 (as added by subsection (a) of this 
                section).
                    (B) Other terms.--The terms ``dealer'' and ``held 
                by a dealer'' have the respective meanings given to 
                such terms by section 6412 of such Code.
            (5) 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 subsection.
    (f) Floor Stocks Tax.--
            (1) Imposition of tax.--In the case of any highway motor 
        fuel which is held on the tax restoration 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 fuel had the taxable 
        event occurred on such date over the tax (if any) previously 
        paid (and not credited or refunded) on such fuel.
            (2) Liability for tax and method of payment.--
                    (A) Liability for tax.--The person holding highway 
                motor fuel on the tax restoration date to which the tax 
                imposed by paragraph (1) applies shall be liable for 
                such tax.
                    (B) Method of payment.--The tax imposed by 
                paragraph (1) shall be paid in such manner as the 
                Secretary shall prescribe.
                    (C) Time for payment.--The tax imposed by paragraph 
                (1) shall be paid on or before the 45th day after the 
                tax restoration date.
            (3) Definitions.--For purposes of this subsection--
                    (A) Tax restoration date.--The term ``tax 
                restoration date'' means the first day after the end of 
                the suspension period (as defined in section 4081(f) of 
                the Internal Revenue Code of 1986).
                    (B) Highway motor fuel.--The term ``highway motor 
                fuel'' has the meaning given to such term by section 
                4081(f) of such Code.
                    (C) Held by a person.--A highway motor fuel 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).
                    (D) Secretary.--The term ``Secretary'' means the 
                Secretary of the Treasury or the Secretary's delegate.
            (4) Exception for exempt uses.--The tax imposed by 
        paragraph (1) shall not apply to any highway motor fuel held by 
        any person exclusively for any use to the extent a credit or 
        refund of the tax is allowable for such use.
            (5) Exception for certain amounts of fuel.--
                    (A) In general.--No tax shall be imposed by 
                paragraph (1) on any highway motor fuel held on the tax 
                restoration date by any person if the aggregate amount 
                of such highway motor fuel 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 subparagraph.
                    (B) Exempt fuel.--For purposes of subparagraph (A), 
                there shall not be taken into account any highway motor 
                fuel held by any person which is exempt from the tax 
                imposed by paragraph (1) by reason of paragraph (4).
                    (C) Controlled groups.--For purposes of this 
                subsection--
                            (i) 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.
                            (ii) 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 if 1 or more of 
                        such persons is not a corporation.
            (6) Other laws applicable.--All provisions of law, 
        including penalties, applicable with respect to the taxes 
        imposed by section 4081 of such Code shall, insofar as 
        applicable and not inconsistent with the provisions of this 
        subsection, apply with respect to the floor stock taxes imposed 
        by paragraph (1) to the same extent as if such taxes were 
        imposed by such section.

SEC. 3. DENIAL OF TAX BENEFITS TO CERTAIN OIL AND GAS COMPANIES.

    (a) Amortization of Geological and Geophysical Expenditures.--
            (1) In general.--Subparagraph (A) of section 167(h)(5) of 
        the Internal Revenue Code of 1986 is amended by inserting 
        ``(and for the 1-year period beginning on the date of enactment 
        of the Gas Tax Holiday Act, any company which is not a small, 
        independent oil and gas company)'' after ``major integrated oil 
        company,''.
            (2) Conforming amendment.--The heading for paragraph (5) of 
        section 167(h) of such Code is amended by inserting ``and other 
        large taxpayers''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to amounts paid or incurred after the date of the 
        enactment of this Act.
    (b) Producing Oil and Gas From Marginal Wells.--
            (1) In general.--Section 45I of the Internal Revenue Code 
        of 1986 is amended by adding at the end the following new 
        subsection:
    ``(e) Exception for Taxpayer Who Is Not Small, Independent Oil and 
Gas Company.--
            ``(1) In general.--In the case of the first taxable year 
        beginning after the date of the enactment of the Gas Tax 
        Holiday Act, subsection (a) shall not apply to any taxpayer 
        which is not a small, independent oil and gas company.
            ``(2) Aggregation rule.--For purposes of paragraph (1), all 
        persons treated as a single employer under subsections (a) and 
        (b) of section 52 shall be treated as 1 person.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply to credits determined for taxable years beginning 
        after the date of the enactment of this Act.
    (c) Enhanced Oil Recovery Credit.--
            (1) In general.--Section 43 of the Internal Revenue Code of 
        1986 is amended by adding at the end the following new 
        subsection:
    ``(f) Exception for Taxpayer Who Is Not Small, Independent Oil and 
Gas Company.--
            ``(1) In general.--In the case of the first taxable year 
        beginning after the date of the enactment of the Gas Tax 
        Holiday Act, subsection (a) shall not apply to any taxpayer 
        which is not a small, independent oil and gas company.
            ``(2) Aggregation rule.--For purposes of paragraph (1), all 
        persons treated as a single employer under subsections (a) and 
        (b) of section 52 shall be treated as 1 person.''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to amounts paid or incurred in taxable years 
        beginning after the date of the enactment of this Act.
    (d) Intangible Drilling and Development Costs in the Case of Oil 
and Gas Wells.--
            (1) In general.--Subsection (c) of section 263 of the 
        Internal Revenue Code of 1986 is amended by adding at the end 
        the following new sentence: ``This subsection shall not apply 
        to amounts paid or incurred by a taxpayer for the 1-year period 
        beginning on the date of the enactment of the Gas Tax Holiday 
        Act which is not a small, independent oil and gas company, 
        determined by deeming all persons treated as a single employer 
        under subsections (a) and (b) of section 52 as 1 person.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to amounts paid or incurred in taxable years 
        beginning after the date of the enactment of this Act.
    (e) Percentage Depletion.--
            (1) In general.--Section 613A of the Internal Revenue Code 
        of 1986 is amended by adding at the end the following new 
        subsection:
    ``(f) Exception for Taxpayer Who Is Not Small, Independent Oil and 
Gas Company.--
            ``(1) In general.--In the case of the first taxable year 
        beginning after the date of the enactment of the Gas Tax 
        Holiday Act, this section and section 611 shall not apply to 
        any taxpayer which is not a small, independent oil and gas 
        company.
            ``(2) Aggregation rule.--For purposes of paragraph (1), all 
        persons treated as a single employer under subsections (a) and 
        (b) of section 52 shall be treated as 1 person.''.
            (2) Conforming amendment.--Section 613A(c)(1) of such Code 
        is amended by striking ``subsection (d)'' and inserting 
        ``subsections (d) and (f)''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning after the date of the 
        enactment of this Act.
    (f) Tertiary Injectants.--
            (1) In general.--Section 193 of the Internal Revenue Code 
        of 1986 is amended by adding at the end the following new 
        subsection:
    ``(d) Exception for Taxpayer Who Is Not Small, Independent Oil and 
Gas Company.--
            ``(1) In general.--In the case of the first taxable year 
        beginning after the date of the enactment of the Gas Tax 
        Holiday Act, subsection (a) shall not apply to any taxpayer 
        which is not a small, independent oil and gas company.
            ``(2) Exception for qualified carbon dioxide disposed in 
        secure geological storage.--Paragraph (1) shall not apply in 
        the case of any qualified tertiary injectant expense paid or 
        incurred for any tertiary injectant is qualified carbon dioxide 
        (as defined in section 45Q(b)) which is disposed of by the 
        taxpayer in secure geological storage (as defined by section 
        45Q(d)).
            ``(3) Aggregation rule.--For purposes of paragraph (1), all 
        persons treated as a single employer under subsections (a) and 
        (b) of section 52 shall be treated as 1 person.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to expenses incurred after the date of the 
        enactment of this Act.
    (g) Passive Activity Losses and Credits Limited.--Paragraph (3) of 
section 469(c) of the Internal Revenue Code of 1986 is amended by 
adding at the end the following:
                    ``(C) Exception for taxpayer who is not small, 
                independent oil and gas company.--
                            ``(i) In general.--In the case of the first 
                        taxable year beginning after the date of the 
                        enactment of the Gas Tax Holiday Act, 
                        subparagraph (A) shall not apply to any 
                        taxpayer which is not a small, independent oil 
                        and gas company.
                            ``(ii) Aggregation rule.--For purposes of 
                        clause (i), all persons treated as a single 
                        employer under subsections (a) and (b) of 
                        section 52 shall be treated as 1 person.''.
    (h) Income Attributable to Domestic Production Activities.--
            (1) In general.--Section 199 of the Internal Revenue Code 
        of 1986 is amended by adding at the end the following new 
        subsection:
    ``(e) Exception for Taxpayer Who Is Not Small, Independent Oil and 
Gas Company.--In the case of the first taxable year beginning after the 
date of the enactment of the Gas Tax Holiday Act, subsection (a) shall 
not apply to the income derived from the production, transportation, or 
distribution of oil, natural gas, or any primary product (within the 
meaning of subsection (d)(9)) thereof by any taxpayer which is an oil 
and gas company which is not a small, independent oil and gas 
company.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to taxable years beginning after the date of the 
        enactment of this Act.
    (i) Prohibition on Using Last-In, First-Out Accounting for Major 
Integrated Oil Companies.--
            (1) In general.--Section 472 of the Internal Revenue Code 
        of 1986 is amended by adding at the end the following new 
        subsection:
    ``(h) Certain Oil Companies.--Notwithstanding any other provision 
of this section, an oil and gas company which is not a small, 
independent oil and gas company may not use the method provided in 
subsection (b) in inventorying of any goods.''.
            (2) Effective date and special rule.--
                    (A) In general.--The amendment made by paragraph 
                (1) shall apply to taxable years beginning after the 
                date of the enactment of this Act.
                    (B) Change in method of accounting.--In the case of 
                any taxpayer required by the amendment made by this 
                paragraph to change its method of accounting for its 
                first taxable year beginning after the date of the 
                enactment of this Act--
                            (i) such change shall be treated as 
                        initiated by the taxpayer,
                            (ii) such change shall be treated as made 
                        with the consent of the Secretary of the 
                        Treasury, and
                            (iii) the net amount of the adjustments 
                        required to be taken into account by the 
                        taxpayer under section 481 of the Internal 
                        Revenue Code of 1986 shall be taken into 
                        account ratably over a period (not greater than 
                        8 taxable years) beginning with such first 
                        taxable year.
    (j) Modifications of Foreign Tax Credit Rules Applicable to Dual 
Capacity Taxpayers.--
            (1) In general.--Section 901 of the Internal Revenue Code 
        of 1986 is amended by redesignating subsection (n) as 
        subsection (o) and by inserting after subsection (m) the 
        following new subsection:
    ``(n) Special Rules Relating to Dual Capacity Taxpayers.--
            ``(1) General rule.--Notwithstanding any other provision of 
        this chapter, any amount paid or accrued by a dual capacity 
        taxpayer to a foreign country or possession of the United 
        States for any period with respect to combined foreign oil and 
        gas income (as defined in section 907(b)(1)) shall not be 
        considered a tax to the extent such amount exceeds the amount 
        (determined in accordance with regulations) which would have 
        been required to be paid if the taxpayer were not a dual 
        capacity taxpayer.
            ``(2) Dual capacity taxpayer.--For purposes of this 
        subsection, the term `dual capacity taxpayer' means, with 
        respect to any foreign country or possession of the United 
        States, a person who--
                    ``(A) is subject to a levy of such country or 
                possession, and
                    ``(B) receives (or will receive) directly or 
                indirectly a specific economic benefit (as determined 
                in accordance with regulations) from such country or 
                possession.''.
            (2) Effective date.--
                    (A) In general.--The amendments made by this 
                subsection shall apply to taxes paid or accrued in 
                taxable years beginning after the date of the enactment 
                of this Act.
                    (B) Contrary treaty obligations upheld.--The 
                amendments made by this subsection shall not apply to 
                the extent contrary to any treaty obligation of the 
                United States.

SEC. 4. RULES RELATING TO RECEIPTS AND EXPENDITURES FROM TREASURY.

    (a) Extension of Section 3 Provisions.--If the Secretary of the 
Treasury determines that the expenditures from the Federal Treasury 
required to carry out the provisions of section 2 of this Act are 
greater than the revenues raised by the provisions of section 3 of this 
Act, the Secretary shall extend the period for which the provisions of 
section 3 are effective for such time as the Secretary determines is 
necessary to raise sufficient revenues to equal such expenditures.
    (b) Use of Excess Revenues for Debt Reduction.--The excess revenues 
from the suspension of tax subsidies for oil and gas by reason of the 
amendments made by section 3 over the expenditures required to carry 
out the provisions of section 2 shall remain in the Treasury for 
purposes of debt reduction.
                                 <all>