To amend the Internal Revenue Code of 1986 to reduce motor fuel excise taxes during periods of high fuel prices.

Summary: Gas Price Spike Relief Act of 2005 - Amends the Internal Revenue Code to allow a 4.3 cents per gallon reduction in the rate of excise tax for gasoline, diesel fuel, special fuels, and certain methanol or ethanol fuels during any period of months in which the motor fuel price index is 10 percent greater than such index for the immediately preceding month (temporary rate reduction period). Allows dealers in such fuels to apply for tax refunds during a temporary rate reduction period.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Gas Price Spike Relief Act of 
2005''.

SEC. 2. TEMPORARY 4.3-CENT REDUCTION IN CERTAIN FUEL TAX RATES.

    (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) Temporary 4.3-Cent Reduction in Certain Fuel Tax Rates.--
            ``(1) In general.--During a temporary rate reduction period 
        with respect to any taxable fuel, the rate of tax referred to 
        in paragraph (2) otherwise applicable to such fuel shall be 
        reduced (but not below zero) by 4.3 cents per gallon.
            ``(2) Rates of tax.--The rates of tax referred to in this 
        paragraph are--
                    ``(A) each rate of tax under subsection (a)(2)(A) 
                (relating to gasoline and diesel fuel),
                    ``(B) each rate of tax under paragraph (1) or (2) 
                of section 4041(a) (relating to diesel fuel and special 
                fuels), and
                    ``(C) the rate of tax under section 4041(m)(1)(A) 
                (relating to certain methanol or ethanol fuels).
            ``(3) Comparable treatment for compressed natural gas.--No 
        tax shall be imposed by section 4041(a)(3) on any sale or use 
        during a temporary rate reduction period with respect to 
        gasoline.
            ``(4) Comparable treatment under certain refund rules.--In 
        the case of fuel on which tax is imposed during a temporary 
        rate reduction period, each of the comparable rates otherwise 
        applicable under sections 6421(f)(3)(B)(ii), 6427(b)(2)(A), and 
        6427(l)(3)(B)(ii) shall be reduced (but not below zero) by 4.3 
        cents per gallon.
            ``(5) Temporary rate reduction period.--For purposes of 
        this subsection--
                    ``(A) In general.--The term `temporary rate 
                reduction period' means, with respect to any taxable 
                fuel, any period of months (as determined by the 
                Secretary) during which the motor fuel price index for 
                such fuel is 10 percent greater than such index for the 
                base month.
                    ``(B) Base month.--The term `base month' means, 
                with respect to any period, the last month before such 
                period.
                    ``(C) Motor fuel price index.--The term `motor fuel 
                price index' means--
                            ``(i) Highway motor fuel.--In the case of 
                        fuel other than aviation-grade kerosene, the 
                        index comprised of the motor fuel price 
                        component of the Consumer Price Index (as 
                        defined in section 1(f)(5)).
                            ``(ii) Aviation-grade kerosene.--In the 
                        case of aviation-grade kerosene, the index 
                        comprised of the average monthly price of such 
                        kerosene (for end users) as published by the 
                        Energy Information Administration of the 
                        Department of Energy.
                    ``(D) Data.--The motor fuel price index for any 
                month which is taken into account for purposes of this 
                subsection shall be such index for the 2d preceding 
                month.
            ``(6) Trust funds held harmless.--Amounts appropriated to 
        the Highway Trust Fund and the Airport and Airways Trust Fund 
        shall be determined as if this subsection had never been 
        enacted.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 3. FLOOR STOCKS REFUNDS.

    (a) In General.--If--
            (1) before the first day of any temporary rate reduction 
        period, tax has been imposed under section 4081 of the Internal 
        Revenue Code of 1986 on any liquid, and
            (2) on such first day 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 section 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.
    (b) Time for Filing Claims.--No credit or refund shall be allowed 
or made under this section with respect to any temporary rate reduction 
period unless--
            (1) claim therefor is filed with the Secretary of the 
        Treasury before the date which is 6 months after the first day 
        of such period, based on a request submitted to the taxpayer 
        before the date which is 3 months after such first day, by the 
        dealer who held the liquid on such first day, and
            (2) 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.
    (c) Exception for Fuel Held in Retail Stocks.--No credit or refund 
shall be allowed under this section with respect to any liquid in 
retail stocks held at the place where intended to be sold at retail.
    (d) Definitions.--For purposes of this section--
            (1) In general.--The terms ``dealer'' and ``held by a 
        dealer'' have the respective meanings given to such terms by 
        section 6412 of such Code.
            (2) Temporary rate reduction period.--The term ``temporary 
        rate reduction period'' has the meaning given to such term by 
        section 4081(f)(5) of such Code.
    (e) 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 section.

SEC. 4. FLOOR STOCKS TAX.

    (a) Imposition of Tax.--In the case of taxable fuel on which tax 
was imposed under section 4081 of the Internal Revenue Code of 1986 
during any temporary rate reduction period, and which is held on the 
first day after such period by any person, there is hereby imposed a 
floor stocks tax of 4.3 cents per gallon.
    (b) Liability for Tax and Method of Payment.--
            (1) Liability for tax.--A person holding taxable fuel on 
        the first day after a temporary rate reduction period to which 
        the tax imposed by subsection (a) applies shall be liable for 
        such tax.
            (2) Method of payment.--The tax imposed by subsection (a) 
        shall be paid in such manner as the Secretary shall prescribe.
            (3) Time for payment.--The tax imposed by subsection (a) 
        shall be paid on or before the date which is 3 months after the 
        close of the temporary rate reduction period to which such tax 
        relates.
    (c) Definitions.--For purposes of this section--
            (1) Temporary rate reduction period.--The term ``temporary 
        rate reduction period'' has the meaning given to such term by 
        section 4081(f)(5) of such Code.
            (2) Held by a person.--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).
            (3) Taxable fuel.--The term ``taxable fuel'' has the 
        meaning given to such term by section 4083 of such Code.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury or his delegate.
    (d) Exception for Exempt Uses.--The tax imposed by subsection (a) 
shall not apply to taxable fuel held by any person exclusively for any 
use to the extent a credit or refund of the tax imposed by section 4081 
of such Code is allowable for such use.
    (e) Exception for Fuel Held in Vehicle Tank.--No tax shall be 
imposed by subsection (a) on taxable fuel held in the tank of a motor 
vehicle or motorboat.
    (f) Exception for Certain Amounts of Fuel.--
            (1) In general.--No tax shall be imposed by subsection 
        (a)--
                    (A) on gasoline held on the first day after any 
                temporary rate reduction period, by any person if the 
                aggregate amount of gasoline held by such person on 
                such date does not exceed 4,000 gallons, and
                    (B) on diesel fuel held on such first day by any 
                person if the aggregate amount of diesel 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 paragraph.
            (2) Exempt fuel.--For purposes of paragraph (1), there 
        shall not be taken into account fuel held by any person which 
        is exempt from the tax imposed by subsection (a) by reason of 
        subsection (d) or (e).
            (3) Controlled groups.--For purposes of this section--
                    (A) 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 ``more 
                        than 50 percent'' shall be substituted for ``at 
                        least 80 percent'' each place it appears in 
                        such subsection.
                    (B) 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 where 1 or more of such persons is not a 
                corporation.
    (g) 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 subsection (a) to the same extent as if such taxes 
were imposed by such section 4081.