Highway Trust Fund Certainty Act

Summary: Highway Trust Fund Certainty Act  This bill amends the Internal Revenue Code to: (1) increase the current excise tax rates on gasoline and diesel fuel or kerosene and special fuels and to repeal the reversion of increased fuel tax rates to 4.3 cents per gallon after September 30, 2016, (2) make permanent the excise tax on certain alcohol fuels and fuels used in certain buses, (3) allow U.S. citizens a new tax credit after 2015 for the lesser of 3.1% of earned income or $133, and (4) allow additional appropriations to the Highway and Mass Transit Accounts of the Highway Trust Fund and provide for repayments from such Fund to the general fund of the Treasury for amounts advanced to such Fund. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Highway Trust Fund Certainty Act''.

SEC. 2. INCREASE IN FUELS TAXES.

    (a) Motor Fuels.--
            (1) Repeal of termination.--Section 4081(d) of the Internal 
        Revenue Code of 1986 is amended by striking paragraph (1) and 
        redesignating paragraphs (2) and (3) as paragraphs (1) and (2), 
        respectively.
            (2) Inflation adjustment.--Section 4081(a)(2) of such Code 
        is amended--
                    (A) in subparagraph (A)(i) by striking ``18.3 cents 
                per gallon'' and inserting ``28.4 cents per gallon'',
                    (B) in subparagraph (A)(iii) by striking ``24.3 
                cents per gallon'' and inserting ``34.4 cents per 
                gallon'',
                    (C) in subparagraph (D) by striking ``substituting 
                `19.7 cents' for `24.3 cents''' and inserting 
                ``substituting `27.9 cents' for `34.4 cents''', and
                    (D) by adding at the end the following:
                    ``(E) Adjustment for inflation.--In the case of a 
                calendar year beginning after December 31, 2015, the 
                rates of tax in subparagraph (A) (i) and (iii) and 
                subparagraph (D) shall each be increased by an amount 
                equal to--
                            ``(i) such rate, multiplied by
                            ``(ii) the cost of living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year, determined by substituting 
                        `calendar year 2014' for `calendar year 1992' 
                        in subparagraph (B) thereof.
                Any increase under the preceding sentence shall be 
                rounded to the nearest 0.1 cents.''.
    (b) Special Fuels.--
            (1) Increase and extension.--Section 4041 of such Code is 
        amended--
                    (A) in subsection (a)(1)(C)(iii)(I) by striking 
                ``7.3 cents per gallon (4.3 cents per gallon after 
                September 30, 2016)'' and inserting ``17.4 cents per 
                gallon'',
                    (B) in subsection (a)(2)(B)(ii) by striking ``24.3 
                cents per gallon'' and inserting ``34.4 cents per 
                gallon'', and
                    (C) in subsection (a)(3)(A) by striking ``18.3 
                cents'' and inserting ``28.4 cents''.
            (2) Adjustment for inflation.--Section 4041(a) of such Code 
        is amended by adding at the end the following:
            ``(4) Adjustment for inflation.--In the case of a calendar 
        year beginning after December 31, 2015, the rates of tax in 
        paragraphs (1)(C)(iii)(I), (2)(B)(ii), and (3)(A) shall each be 
        increased by an amount equal to--
                    ``(A) such rate, multiplied by
                    ``(B) the cost of living adjustment determined 
                under section 1(f)(3) for the calendar year, determined 
                by substituting `calendar year 2014' for `calendar year 
                1992' in subparagraph (B) thereof.
        Any increase under the preceding sentence shall be rounded to 
        the nearest 0.1 cents.''.
            (3) Certain alcohol fuels.--
                    (A) Permanent extension.--Section 4041(m)(1) of 
                such Code is amended--
                            (i) in subparagraph (A) by striking ``, and 
                        before October 1, 2016'',
                            (ii) in subparagraph (A)(i) by striking 
                        ``9.15 cents per gallon'' and inserting ``19.25 
                        cents per gallon'',
                            (iii) in subparagraph (A)(ii) by striking 
                        ``11.3 cents per gallon'' and inserting ``21.4 
                        cents per gallon'',
                            (iv) by striking subparagraph (B), and
                            (v) by redesignating clauses (i) and (ii) 
                        of subparagraph (A) (as amended by clauses (ii) 
                        and (iii)) as subparagraphs (A) and (B), 
                        respectively, and moving such subparagraphs (as 
                        so redesignated) 2 ems to the left.
                    (B) Adjustment for inflation.--Section 4041(m) of 
                such Code is amended by adding at the end the 
                following:
            ``(3) Adjustment for inflation.--In the case of a calendar 
        year beginning after December 31, 2015, the rates of tax in 
        paragraph (1) (A) and (B) shall each be increased by an amount 
        equal to--
                    ``(A) such rate, multiplied by
                    ``(B) the cost of living adjustment determined 
                under section 1(f)(3) for the calendar year, determined 
                by substituting `calendar year 2014' for `calendar year 
                1992' in subparagraph (B) thereof.
        Any increase under the preceding sentence shall be rounded to 
        the nearest 0.1 cents.''.
            (4) Fuel used in certain buses.--
                    (A) Permanent extension.--Section 6427(b)(2)(A) of 
                such Code is amended by striking ``7.4 cents'' and 
                inserting ``17.5 cents''.
                    (B) Adjustment for inflation.--Section 6427(b) of 
                such Code is amended by adding at the end the 
                following:
            ``(5) Adjustment for inflation.--In the case of calendar 
        years beginning January 1, 2016--
                    ``(A) the rate of tax in paragraph (2)(A) shall be 
                increased by 10.1 cents, and
                    ``(B) such rate (as increased by subparagraph (A)) 
                shall be increased by an amount equal to such rate (as 
                so increased) multiplied by the cost of living 
                adjustment determined under section 1(f)(3) for the 
                calendar year, determined by substituting `calendar 
                year 2014' for `calendar year 1992' in subparagraph (B) 
                thereof, and rounded to the nearest 0.1 cents.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to years beginning after December 31, 2015.
    (d) Floor Stocks Tax.--
            (1) Imposition of tax.--In the case of any highway motor 
        fuel which is held on January 1, 2016, by any person, there is 
        hereby imposed a floor stocks tax equal to the excess of--
                    (A) the tax which would be imposed on such fuel had 
                the amendments made by this section applied to highway 
                motor fuels for periods before January 1, 2016, over
                    (B) 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 the 
                highway motor fuel on January 1, 2016, 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 at such time and in such 
                manner as the Secretary of the Treasury (or the 
                Secretary's delegate) shall prescribe.
            (3) Definitions.--For purposes of this subsection--
                    (A) Highway motor fuel.--The term ``highway motor 
                fuel'' means any fuel the tax rate of which is 
                increased by an amendment made by this section.
                    (B) 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).
                    (C) 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 January 
                1, 2016, 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 sections 4041 and 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 sections.

SEC. 3. WORKING CITIZENS TAX RELIEF.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 36 the following new section:

``SEC. 36A. WORKING CITIZENS CREDIT.

    ``(a) Allowance of Credit.--In the case of an eligible individual, 
there shall be allowed as a credit against the tax imposed by this 
subtitle for the calendar years beginning after December 31, 2015, an 
amount equal to the lesser of--
            ``(1) 3.1 percent of earned income of the taxpayer, or
            ``(2) $133 ($266 in the case of a joint return).
    ``(b) Limitation Based on Modified Adjusted Gross Income.--
            ``(1) In general.--The amount allowable as a credit under 
        subsection (a) (determined without regard to this paragraph and 
        subsection (c)) for the taxable year shall be reduced (but not 
        below zero) by one percent of so much of the taxpayer's 
        modified adjusted gross income as exceeds $74,950 ($149,900 in 
        the case of a joint return).
            ``(2) Modified adjusted gross income.--For purposes of 
        subparagraph (A), the term `modified adjusted gross income' 
        means the adjusted gross income of the taxpayer for the taxable 
        year increased by any amount excluded from gross income under 
        section 911, 931, or 933.
    ``(c) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Eligible individual.--
                    ``(A) In general.--The term `eligible individual' 
                means any individual other than--
                            ``(i) any nonresident alien individual,
                            ``(ii) any individual with respect to whom 
                        a deduction under section 151 is allowable to 
                        another taxpayer for a taxable year beginning 
                        in the calendar year in which the individual's 
                        taxable year begins, and
                            ``(iii) an estate or trust.
                    ``(B) Identification number requirement.--Such term 
                shall not include any individual who does not include 
                on the return of tax for the taxable year--
                            ``(i) such individual's social security 
                        account number, and
                            ``(ii) in the case of a joint return, the 
                        social security account number of one of the 
                        taxpayers on such return.
                For purposes of the preceding sentence, the social 
                security account number shall not include a TIN issued 
                by the Internal Revenue Service.
            ``(2) Earned income.--The term `earned income' has the 
        meaning given such term by section 32(c)(2), except that such 
        term shall not include net earnings from self-employment which 
        are not taken into account in computing taxable income. For 
        purposes of the preceding sentence, any amount excluded from 
        gross income by reason of section 112 shall be treated as 
        earned income which is taken into account in computing taxable 
        income for the taxable year.''.
    (b) Refunds Disregarded in the Administration of Federal Programs 
and Federally Assisted Programs.--Any credit or refund allowed or made 
to any individual by reason of section 36A of the Internal Revenue Code 
of 1986 (as added by this section) or by reason of subsection (b) of 
this section shall not be taken into account as income and shall not be 
taken into account as resources for the month of receipt and the 
following 2 months, for purposes of determining the eligibility of such 
individual or any other individual for benefits or assistance, or the 
amount or extent of benefits or assistance, under any Federal program 
or under any State or local program financed in whole or in part with 
Federal funds.
    (c) Authority Relating to Clerical Errors.--Section 6213(g)(2) of 
such Code is amended by striking ``and'' at the end of subparagraph 
(M), by striking the period at the end of subparagraph (N) and 
inserting ``, and'', and by adding at the end the following new 
subparagraph:
                    ``(O) an omission of the correct social security 
                account number required under section 36A(c)(1)(B).''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2015.

SEC. 4. REPAYABLE ADVANCES TO HIGHWAY TRUST FUND.

    (a) Repayable Advances.--Section 9503(f) of the Internal Revenue 
Code of 1986 is amended by redesignating paragraph (7) as paragraph (8) 
and by inserting after paragraph (6) the following new paragraph:
            ``(7) 2015 shortfall advance.--Out of money in the Treasury 
        not otherwise appropriated, there is hereby appropriated--
                    ``(A) $8,000,000,000 to the Highway Account (as 
                defined in subsection (e)(5)(B)) in the Highway Trust 
                Fund; and
                    ``(B) $3,000,000,000 to the Mass Transit Account in 
                the Highway Trust Fund.''.
    (b) Repayment of Advances.--Section 9503(c) of such Code is amended 
by adding at the end the following:
            ``(6) Transfers from highway trust fund for certain 
        repayments of certain advances.--
                    ``(A) In general.--The Secretary shall pay from 
                time to time from the Highway Trust Fund into the 
                general fund of the Treasury amounts equivalent to 
                amounts transferred to the Highway Trust Fund that are 
                attributable to the operation of sections 4041(a)(4), 
                4041(m)(3), and 4081(a)(2)(E).
                    ``(B) Limitation.--No amount shall be transferred 
                under this paragraph after the aggregate amount 
                transferred under subparagraph (A) equals 
                $11,000,000,000.
                    ``(C) Transfers based on estimates.--Transfers 
                under subparagraph (A) shall be made on the basis of 
                estimates by the Secretary, and proper adjustments 
                shall be made in amounts subsequently transferred to 
                the extent prior estimates were in excess or less than 
                the amounts required to be transferred.
                    ``(D) Transfers made proportionally.--Transfers 
                under subparagraph (A) shall be borne by the Highway 
                Account and the Mass Transit Account in proportion to 
                the respective revenues transferred under subsection 
                (f)(7) to the Highway Account and the Mass Transit 
                Account.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on August 1, 2015.