To amend the Internal Revenue Code of 1986 to repeal the excise tax on heavy trucks and trailers, and for other purposes.

Summary: Heavy Truck Tax Fairness Act of 2010 - Amends the Internal Revenue Code to: (1) repeal the excise tax on heavy trucks and trailers sold at retail; (2) increase the rate of tax on diesel fuel or kerosene to 31.6 cents per gallon; and (3) impose a floor stocks tax with respect to certain taxable fuels..

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Heavy Truck Tax Fairness Act of 
2010''.

SEC. 2. REPEAL OF EXCISE TAX ON HEAVY TRUCKS AND TRAILERS.

    (a) In General.--Chapter 31 of the Internal Revenue Code of 1986 
(relating to retail excise taxes) is amended by striking subchapter C 
(relating to heavy trucks and trailers).
    (b) Conforming Amendments.--
            (1) Section 4002(d)(2) of such Code is amended by inserting 
        ``(as in effect be the date of the enactment of the Heavy Truck 
        Tax Fairness Act of 2010)'' after ``section 4052(b)''.
            (2) Section 4072(c) of such Code is amended by inserting 
        ``(as in effect be the date of the enactment of the Heavy Truck 
        Tax Fairness Act of 2010)'' after ``section 4053(8)''.
            (3) Section 4221 of such Code is amended--
                    (A) in subsection (a) by striking ``4051, or'', and
                    (B) in subsection (c) by striking ``, 4001(d) or 
                4053(6)'' and inserting ``or 4001(d)''.
            (4) Section 4222(d) of such Code is amended by striking 
        ``4053(6),''.
            (5) Section 4293 of such Code is amended by striking 
        ``section 4051,''.
            (6) Section 6416(b)(6) of such Code is amended--
                    (A) in subparagraph (A) by inserting ``on or before 
                the date of the enactment of Heavy Truck Tax Fairness 
                Act of 2010'' after ``section 4051'', and
                    (B) in subparagraph (B) by inserting ``on or before 
                such date'' after ``section 4051''.
            (7) Section 9503(b)(1) of such Code is amended by striking 
        subparagraph (B) and redesignating subparagraphs (C), (D), and 
        (E) as subparagraphs (B), (C), and (D), respectively.
            (8) The table of subchapters for chapter 31 of such Code is 
        amended by striking the item relating to subchapter C.
    (c) Effective Date.--The amendments made by this section shall 
apply to articles sold by the manufacturer, producer, or importer after 
the date of the enactment of this Act.

SEC. 3. INCREASE IN TAX ON DIESEL FUEL OR KEROSENE.

    (a) In General.--
            (1) Clause (iii) of section 4081(a)(2)(A) of the Internal 
        Revenue Code of 1986 is amended by striking ``24.3 cents'' and 
        inserting ``31.6 cents''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply to fuel removed, entered, or sold after the date of 
        the enactment of this Act.
    (b) Floor Stocks Tax.--
            (1) 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.
            (2) Liability for tax and method of payment.--
                    (A) Liability for tax.--A person holding a liquid 
                on the floor stocks tax 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 of payment.--The tax imposed by paragraph 
                (1) shall be paid on or before the date which is 6 
                months after the floor stocks tax date.
            (3) Definitions.--For purposes of this subsection--
                    (A) 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).
                    (B) Taxable liquid.--The term ``taxable liquid'' 
                means diesel fuel and kerosene (other than aviation-
                grade kerosene).
                    (C) Floor stocks date.--The term ``floor stocks tax 
                date'' means the date of the enactment of this Act.
                    (D) Secretary.--The term ``Secretary'' means the 
                Secretary of the Treasury.
            (4) Exception for exempt uses.--The tax imposed by 
        paragraph (1) 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 such Code is allowable for 
        such use.
            (5) Exception for fuel held in vehicle tank.--No tax shall 
        be imposed by paragraph (1) on taxable liquid held in the tank 
        of a motor vehicle or motorboat.
            (6) Exception for certain amounts of fuel.--
                    (A) In general.--No tax shall be imposed by 
                paragraph (1) 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 subparagraph.
                    (B) Exempt fuel.--For purposes of subparagraph (1), 
                there shall not be taken into account fuel held by any 
                person which is exempt from the tax imposed by 
                paragraph (1) by reason of paragraph (4) or (5).
                    (C) Controlled groups.--For purposes of this 
                section--
                            (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 clause (i) shall apply to a group of persons 
                        under common control where 1 or more of such 
                        persons is not a corporation.
            (7) 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 
        paragraph (1) to the same extent as if such taxes were imposed 
        by such chapter.