To amend the Internal Revenue Code of 1986 to repeal the 1993 4.3-cent increases in highway motor fuel taxes.

Summary: Amends the Internal Revenue Code to reduce by 4.3 cents the tax on non-aviation gasoline, diesel fuel, and kerosene.

SECTION 1. REPEAL OF 1993 INCREASES IN HIGHWAY MOTOR FUEL TAXES.

    (a) Highway Gasoline.--Clause (i) of section 4081(a)(2)(A) of the 
Internal Revenue Code of 1986 is amended by striking ``18.3 cents'' and 
inserting ``14 cents''.
    (b) Diesel Fuel and Kerosene.--Clause (iii) of section 
4081(a)(2)(A) of such Code is amended by striking ``24.3 cents'' and 
inserting ``20 cents''.
    (c) Technical Amendments.--
            (1) Subparagraph (B) of section 40(e)(1) of such Code is 
        amended by striking ``during which the rates of tax under 
        section 4081(a)(2)(A) are 4.3 cents per gallon'' and inserting 
        ``during which the rate of tax under section 4081(a)(2)(A)(i) 
        does not apply''.
            (2) Subparagraph (A) of section 4041(a)(1) of such Code is 
        amended by striking ``or a diesel-powered train'' each place it 
        appears and by striking ``or train''.
            (3) Subparagraph (C) of section 4041(a)(1) of such Code is 
        amended by striking clause (ii) and by redesignating clause 
        (iii) as clause (ii).
            (4) Subclause (I) of section 4041(a)(1)(C)(ii) of such 
        Code, as redesignated by paragraph (3), is amended by striking 
        ``7.3 cents'' and inserting ``3 cents'' and by striking ``4.3 
        cents per gallon'' and inserting ``zero''.
            (5) Subsection (a) of section 4041 of such Code is amended 
        by striking paragraph (3).
            (6) Subparagraph (C) of section 4041(b)(1) of such Code is 
        amended by striking all that follows ``section 6421(e)(2)'' and 
        inserting a period.
            (7) Subparagraph (B) of section 4041(a)(2) of such Code is 
        amended by striking all that follows clause (i) and inserting 
        the following new clauses:
                            ``(ii) 10.4 cents per gallon in the case of 
                        liquefied petroleum gas, and
                            ``(iii) 9.1 cents per gallon in the case of 
                        liquefied natural gas.''
            (8) Paragraph (3) of section 4041(c) of such Code is 
        amended to read as follows:
            ``(3) Termination.--The rate of the taxes imposed by 
        paragraph (1) shall be zero after September 30, 2007.''
            (9) Subsection (d) of section 4041 of such Code is amended 
        by redesignating paragraph (3) as paragraph (4) and by 
        inserting after paragraph (2) the following new paragraph:
            ``(3) Diesel fuel used in trains.--There is hereby imposed 
        a tax of 0.1 cent per gallon on any liquid other than gasoline 
        (as defined in section 4083)--
                    ``(A) sold by any person to an owner, lessee, or 
                other operator of a diesel-powered train for use as a 
                fuel in such train, or
                    ``(B) used by any person as a fuel in a diesel-
                powered train unless there was a taxable sale of such 
                fuel under subparagraph (A).
        No tax shall be imposed by this paragraph on the sale or use of 
        any liquid if tax was imposed on such liquid under section 
        4081.''
            (10) Clauses (i) and (ii) of section 4041(m)(1)(A) of such 
        Code are amended to read as follows:
                            ``(i) 7 cents per gallon on and after the 
                        date of the enactment of this clause and before 
                        October 1, 2005, and
                            ``(ii) zero after September 30, 2005, 
                        and''.
            (11) Subsection (c) of section 4081 of such Code is amended 
        by striking paragraph (6) and by redesignating paragraphs (7) 
        and (8) as paragraphs (6) and (7), respectively.
            (12) Paragraph (1) of section 4081(d) of such Code is 
        amended by striking ``4.3 cents per gallon'' and inserting 
        ``zero''.
            (13) Subsection (f) of section 4082 of such Code is amended 
        by striking ``section 4041(a)(1)'' and inserting ``subsections 
        (d)(3) and (a)(1) of section 4041, respectively''.
            (14) Paragraph (3) of section 4083(a) of such Code is 
        amended by striking ``or a diesel-powered train''.
            (15) Paragraph (3) of section 6421(f) of such Code is 
        amended to read as follows:
            ``(3) Gasoline used in trains.--In the case of gasoline 
        used as a fuel in a train, this section shall not apply with 
        respect to the Leaking Underground Storage Tank Trust Fund 
        financing rate under section 4081.''
            (16) Subparagraph (A) of section 6427(b)(2) of such Code is 
        amended by striking ``7.4 cents'' and inserting ``3.1 cents''.
            (17) Paragraph (3) of section 6427(l) of such Code is 
        amended to read as follows:
            ``(3) Refund of certain taxes on fuel used in diesel-
        powered trains.--For purposes of this subsection, the term 
        `nontaxable use' includes fuel used in a diesel-powered train. 
        The preceding sentence shall not apply to the tax imposed by 
        section 4041(d) and the Leaking Underground Storage Tank Trust 
        Fund financing rate under section 4081 except with respect to 
        fuel sold for exclusive use by a State or any political 
        subdivision thereof.''
    (d) Effective Date.--The amendments 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 date of the enactment of this Act, 
                tax has been imposed under section 4081 of the Internal 
                Revenue Code of 1986 on any liquid, and
                    (B) on such date such liquid 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 amount of such tax which 
        would be imposed on such liquid 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 date of the enactment of this Act, based on a 
                request submitted to the taxpayer before the date which 
                is 3 months after such date of enactment, by the dealer 
                who held the liquid on such date of enactment, 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 liquid in retail stocks held at the place where intended to 
        be sold at retail.
            (4) Definitions.--For purposes of this subsection, 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.