Intercity Passenger Rail Trust Fund Act of 1996

Summary: Intercity Passenger Rail Trust Fund Act of 1996 - Amends the Internal Revenue Code to establish in the Treasury the Intercity Passenger Rail Trust Fund which shall finance qualified intercity passenger rail service expenses of:  (1) the National Railroad Passenger Corporation; and (2) eligible States.  Transfers to the Fund a specified percentage of the general revenue portion of the highway motor fuel taxes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Intercity Passenger Rail Trust Fund 
Act of 1996''.

SEC. 2. 0.5 CENT OF GENERAL REVENUE PORTION OF THE HIGHWAY MOTOR FUEL 
              TAXES DEPOSITED INTO INTERCITY PASSENGER RAIL TRUST FUND.

    (a) Establishment of Trust Fund.--Subchapter A of chapter 98 of the 
Internal Revenue Code of 1986 (relating to trust fund code) is amended 
by adding at the end the following new section:

``SEC. 9512. INTERCITY PASSENGER RAIL TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Intercity 
Passenger Rail Trust Fund', consisting of such amounts as may be 
appropriated or credited to the Trust Fund as provided in this section 
or section 9602(b).
    ``(b) Transfers to Trust Fund.--There are hereby appropriated to 
the Intercity Passenger Rail Trust Fund amounts equivalent to 0.5 cent 
for each gallon with respect to which tax was imposed under section 
4041 or 4081. Only taxes imposed after December 31, 1996, and before 
October 1, 2001, shall be taken into account under the preceding 
sentence.
    ``(c) Expenditures From Trust Fund.--
            ``(1) In general.--Except as provided in paragraph (2), 
        amounts in the Intercity Passenger Rail Trust Fund shall be 
        available, as provided by appropriation Acts, to finance 
        qualified expenses of--
                    ``(A) the National Railroad Passenger Corporation, 
                and
                    ``(B) each eligible State, to the extent determined 
                under paragraph (3).
            ``(2) Direct spending amounts.--The following amounts in 
        the Intercity Passenger Rail Trust Fund are hereby appropriated 
        to finance qualified expenses:
                                                                 Amount
``Fiscal year:                                               Available:
    1997..........................................        $540,000,000 
    1998..........................................         751,000,000 
    1999..........................................         766,000,000 
    2000..........................................         781,000,000 
    2001..........................................         797,000,000.
            ``(3) Maximum amount of funds to eligible states.--Each 
        eligible State shall receive under this subsection an amount 
        equal to the lesser of--
                    ``(A) the State's qualified expenses for the fiscal 
                year, or
                    ``(B) the product of--
                            ``(i) \1/12\ of 1 percent of the lesser 
                        of--
                                    ``(I) the aggregate amounts 
                                appropriated and credited to the 
                                Intercity Passenger Rail Trust Fund 
                                under subsection (a) for such fiscal 
                                year, or
                                    ``(II) the aggregate amounts 
                                appropriated from the Intercity 
                                Passenger Rail Trust Fund under this 
                                subsection for such fiscal year, and
                            ``(ii) the number of months such State was 
                        an eligible State in the preceding fiscal year.
        If the amount determined under subparagraph (B) exceeds the 
        amount under subparagraph (A) for any fiscal year, the amount 
        under subparagraph (B) for the following fiscal year shall be 
        increased by the amount of such excess.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Qualified expenses.--The term `qualified expenses' 
        means expenses incurred, with respect to obligations made after 
        December 31, 1996, and before October 1, 2001, if such expense 
        is--
                    ``(A) in the case of--
                            ``(i) the National Railroad Passenger 
                        Corporation, for capital improvements in 
                        intercity passenger rail service (or for 
                        amortization of principal and interest on any 
                        loan incurred such improvements), or
                            ``(ii) an eligible State, for capital 
                        improvements in intercity rail service (or for 
                        amortization of principal and interest on any 
                        loan incurred such improvements), and
                    ``(B) certified by the Secretary of Transportation 
                as meeting the requirements of subparagraph (A).
            ``(2) Eligible state.--The term `eligible State' means any 
        State which does not receive intercity passenger rail service 
        from the National Railroad Passenger Corporation.
    ``(e) Termination.--The Secretary shall determine and retain, not 
later than October 1, 2001, the amount in the Intercity Passenger Rail 
Trust Fund necessary to pay any outstanding qualified expenses, and 
shall transfer any amount not so retained to the general fund of the 
Treasury.''
    (b) Conforming Amendment.--The table of sections for subchapter A 
of chapter 98 of such Code (relating to trust fund code) is amended by 
adding at the end the following new item:

                              ``Sec. 9512. Intercity Passenger Rail 
                                        Trust Fund.''
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to taxes imposed after December 31, 1996.

SEC. 3. REMAINDER OF GENERAL REVENUE PORTION OF HIGHWAY MOTOR FUEL 
              EXCISE TAX REVENUES TO BE DEPOSITED INTO HIGHWAY TRUST 
              FUND.

    (a) In General.--Paragraph (4) of section 9503(b) of the Internal 
Revenue Code of 1986 (relating to certain additional taxes not 
transferred to Highway Trust Fund) is amended to read as follows:
            ``(4) Certain taxes not transferred to highway trust 
        fund.--For purposes of paragraphs (1) and (2), there shall not 
        be taken into account--
                    ``(A) the taxes imposed by section 4041(d),
                    ``(B) the taxes imposed by section 4081 to the 
                extent attributable to the rate specified in section 
                4081(a)(2)(B), and
                    ``(C) the taxes imposed by sections 4041 and 4081 
                to the extent that amounts equivalent to such taxes are 
                appropriated to the Intercity Passenger Rail Trust Fund 
                by section 9512(b).''
    (b) Conforming Amendments.--
            (1) Subparagraph (B) of section 40(e)(1) of such Code is 
        amended by striking ``during which the Highway Trust Fund 
        financing rate under section 4081(a)(2) is not in effect'' and 
        inserting ``during which the rates of tax specified in section 
        4081(a)(2)(A) are not in effect''.
            (2) The last sentence of subparagraph (A) of section 
        9503(c)(2) of such Code is amended by striking ``by taking into 
        account only the Highway Trust Fund financing rate applicable 
        to any fuel'' and inserting ``by taking into account only the 
        portion of the taxes which are deposited into the Highway Trust 
        Fund''.
            (3) Subsection (f) of section 9503 of such Code is hereby 
        repealed.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxes imposed after December 31, 1996.