To amend the Internal Revenue Code of 1986 to reduce the Federal excise tax on highway motor fuels when the weekly United States retail gasoline price, regular grade, is greater than $3.00 per gallon.

Summary: Emergency Gas Price Relief Act of 2005 - Amends the Internal Revenue Code to reduce highway motor fuel excise taxes by 10 cents per gallon, beginning on the date when the retail price for gasoline is greater than $3.00 per gallon and ending when such price is less than $2.50 per gallon (reduction period). Provides for adjustments to such excise tax for floor stocks of highway motor fuels held by dealers prior to the reduction period (credits or refunds) or after the reduction period (floor stocks tax).

SECTION 1. SHORT TITLE.

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

SEC. 2. REDUCTION OF FUEL TAXES ON HIGHWAY MOTOR FUELS WHEN WEEKLY 
              UNITED STATES RETAIL GASOLINE PRICES EXCEED BENCHMARK.

    (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) Reduction of Highway Motor Fuel Taxes When Retail Gasoline 
Exceeds Benchmark.--
            ``(1) In general.--During any reduction period, the rate of 
        tax imposed by section 4041 or 4081 on highway motor fuel shall 
        be reduced by 10 cents per gallon.
            ``(2) Definitions and special rule.--For purposes of this 
        subsection--
                    ``(A) Reduction period.--The term `reduction 
                period' means the period--
                            ``(i) beginning on the date on which the 
                        weekly United States retail gasoline price, 
                        regular grade (as published by the Energy 
                        Information Administration, Department of 
                        Energy), is greater than $3.00 per gallon, and
                            ``(ii) ending on the date on which such 
                        price (as so published) is less than $2.50 per 
                        gallon.
                    ``(B) Highway motor fuel.--The term `highway motor 
                fuel' means any fuel subject to tax under section 4041 
                or 4081 other than aviation gasoline and aviation-grade 
                kerosene.''.
    (b) Maintenance of Trust Funds Deposits; Amounts Appropriated to 
Trust Funds Treated as Taxes.--
            (1) In general.--There is hereby appropriated (out of any 
        money in the Treasury not otherwise appropriated) to each trust 
        fund which would (but for this subsection) receive reduced 
        revenues as a result of a reduction in a rate of tax by reason 
        of section 4081(f)(1) of the Internal Revenue Code of 1986 (as 
        added by this section) an amount equal to such reduction in 
        revenues. Amounts appropriated by the preceding sentence to any 
        trust fund--
                    (A) shall be transferred from the general fund at 
                such times and in such manner as to replicate to the 
                extent possible the transfers which would have occurred 
                had subsection (a) not been enacted, and
                    (B) shall be treated for all purposes of Federal 
                law as taxes received under the appropriate section 
                referred to in such section 4081(f)(1).
    (c) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 3. FLOOR STOCK REFUNDS.

    (a) In General.--If--
            (1) before the tax rate reduction date, tax has been 
        imposed under section 4081 of the Internal Revenue Code of 1986 
        on any highway motor fuel, and
            (2) on such date such fuel 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 tax which would be imposed on such fuel 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 unless--
            (1) claim therefor is filed with the Secretary of the 
        Treasury before the date which is 6 months after the tax rate 
        reduction date based on a request submitted to the taxpayer 
        before the date which is 3 months after the tax rate reduction 
        date by the dealer who held the highway motor fuel on such 
        date, 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 highway motor 
fuel in retail stocks held at the place where intended to be sold at 
retail.
    (d) Definitions.--For purposes of this section--
            (1) Tax rate reduction date.--The term ``tax rate reduction 
        date'' means the first day of any reduction period in effect 
        under section 4081(f) of the Internal Revenue Code of 1986 (as 
        added by section 2 of this Act).
            (2) Other terms.--The terms ``dealer'' and ``held by a 
        dealer'' have the respective meanings given to such terms by 
        section 6412 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 any highway motor fuel which 
is held on the tax restoration 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 fuel had the taxable event occurred on such date 
over the tax (if any) previously paid (and not credited or refunded) on 
such fuel.
    (b) Liability for Tax and Method of Payment.--
            (1) Liability for tax.--The person holding highway motor 
        fuel on the tax restoration date 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 45th day after the tax 
        restoration date.
    (c) Definitions.--For purposes of this section--
            (1) Tax restoration date.--The term ``tax restoration 
        date'' means the first day after the reduction period (as 
        defined in section 4081(f) of the Internal Revenue Code of 
        1986).
            (2) Highway motor fuel.--The term ``highway motor fuel'' 
        has the meaning given to such term by section 4081(f) of such 
        Code.
            (3) 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).
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury or the Secretary's delegate.
    (d) Exception for Exempt Uses.--The tax imposed by subsection (a) 
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.
    (e) Exception for Certain Amounts of Fuel.--
            (1) In general.--No tax shall be imposed by subsection (a) 
        on any highway motor fuel held on the tax restoration date 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 paragraph.
            (2) Exempt fuel.--For purposes of paragraph (1), there 
        shall not be taken into account any highway motor fuel held by 
        any person which is exempt from the tax imposed by subsection 
        (a) by reason of subsection (d).
            (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 the 
                        phrase ``more than 50 percent'' shall be 
                        substituted for the phrase ``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 if 1 or more of such persons is not a 
                corporation.
    (f) Other Laws Applicable.--All provisions of law, including 
penalties, applicable with respect to the taxes imposed by section 
4081of 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 subsection (a) to the same extent as if such taxes 
were imposed by such sections.