```

[House Report 112-44]
[From the U.S. Government Publishing Office]

112th Congress                                             Rept. 112-44
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     Part 1

======================================================================

 
  AIRPORT AND AIRWAY TRUST FUND FINANCING REAUTHORIZATION ACT OF 2011

                                _______
                                

 March 29, 2011.--Committed to the Committee of the Whole House in the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Camp, from the Committee on Ways and Means, submitted the following

                              R E P O R T

                        [To accompany H.R. 1034]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Ways and Means, to whom was referred the 
bill (H.R. 1034) to amend the Internal Revenue Code of 1986 to 
extend the funding and expenditure authority of the Airport and 
Airway Trust Fund, having considered the same, report favorably 
thereon without amendment and recommend that the bill do pass.

                                CONTENTS

                                                                   Page
  I. SUMMARY AND BACKGROUND...........................................1
 II. EXPLANATION OF THE BILL..........................................2
          A. Extension of Airport and Airway Trust Fund 
              Expenditure Authority..............................     2
          B. Extension of Taxes Funding the Airport and Airway 
              Trust Fund.........................................     3
III. VOTES OF THE COMMITTEE...........................................6
 IV. BUDGET EFFECTS OF THE BILL.......................................7
  V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE......11
 VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED...........12

                         SUMMARY AND BACKGROUND

                         A. Purpose and Summary

    The bill, H.R.1034 (the ``Airport And Airway Trust Fund 
Financing Reauthorization Act of 2011''), as reported by the 
Committee on Ways and Means, reauthorizes the Airport and 
Airway Trust Fund expenditure authority and associated taxes, 
at their current rates, through September 30, 2014.

                 B. Background and Need for Legislation

    There have been a series of temporary extensions of Airport 
and Airway Trust Fund expenditure and tax authority beginning 
in 2007. The latest temporary extension expires March 31, 2011.

                         C. Legislative History

Background

    H.R. 1034 was introduced on March 11, 2011, and was 
referred to the Committee on Ways and Means and to the 
Committee on Transportation and Infrastructure.

Committee action

    The Committee on Ways and Means marked up the bill on March 
16, 2011, and ordered the bill favorably reported by voice 
vote.

                      II. EXPLANATION OF THE BILL

  A. Extension of Airport and Airway Trust Fund Expenditure Authority

                              PRESENT LAW

In general

    The Airport and Airway Trust Fund was created in 1970 to 
finance a major portion of Federal expenditures on national 
aviation programs. Operation of the Airport and Airway Trust 
Fund is governed by the Internal Revenue Code (the ``Code'')\1\ 
and authorizing statutes. The Code provisions govern deposit of 
revenues into the trust fund and approve the use of trust fund 
money (as provided by appropriation acts) for expenditure 
purposes in authorizing statutes as in effect on the date of 
enactment of the latest authorizing Act. The authorizing acts 
provide specific trust fund expenditure programs and purposes.
---------------------------------------------------------------------------
    \1\Unless otherwise stated, all section references are to the 
Internal Revenue Code of 1986, as amended.
---------------------------------------------------------------------------
    Authorized expenditures from the Airport and Airway Trust 
Fund include the following principal programs:
    1. Airport Improvement Program (airport planning, 
construction, noise compatibility programs, and safety 
projects);
    2. Facilities and Equipment program (costs of acquiring, 
establishing, and improving the air traffic control 
facilities);
    3. Research, Engineering, and Development program (FAA 
research and development activities);
    4. FAA Operations and Maintenance (``O&M'') programs; and
    5. Certain other aviation-related programs specified in 
authorizing acts.
    Part of the O&M programs is financed from General Fund 
monies as well. Of the total FAA appropriations, the General 
Fund contribution has ranged from 15 to 24 percent in recent 
years.\2\
---------------------------------------------------------------------------
    \2\Congressional Budget Office, Financing Federal Aviation 
Programs: Statement of Robert A. Sunshine before the House Committee on 
Ways and Means (May 7, 2009) at 3.
---------------------------------------------------------------------------

Limits on airport and airway trust fund expenditures

    No expenditures are currently permitted to be made from the 
Airport and Airway Trust Fund after March 31, 2011. Because the 
purposes for which Airport and Airway Trust Fund monies are 
permitted to be expended are fixed as of the date of enactment 
of the Airport and Airway Extension Act of 2010, Part IV, the 
Code must be amended to authorize new Airport and Airway Trust 
Fund expenditure purposes. In addition, the Code contains a 
specific enforcement provision to prevent expenditure of 
Airport and Airway Trust Fund monies for purposes not 
authorized under section 9502. Should such unapproved 
expenditures occur, no further aviation excise tax receipts 
will be transferred to the Airport and Airway Trust Fund. 
Rather, the aviation taxes would continue to be imposed, but 
the receipts would be retained in the General Fund.

                           REASONS FOR CHANGE

    Having a multi-faceted and reliable transportation system 
provides a strong foundation for promoting commerce, increasing 
economic growth, and encouraging business development. Many 
communities throughout the United States continue to face high 
unemployment. The Committee believes that reauthorizing the 
Airport and Airway Trust Fund expenditure authority will help 
communities attract business development, as well as support 
and create jobs associated with the operation and improvement 
of the nation's airports and air infrastructure.

                        EXPLANATION OF PROVISION

    The provision authorizes expenditures from the Airport and 
Airway Trust Fund through September 30, 2014, and revises the 
purposes for which money from the Airport and Airway Trust Fund 
funds are permitted to be expended to include those obligations 
authorized under the reauthorization legislation of 2011 (i.e., 
the ``FAA Reauthorization and Reform Act of 2011,'' which sets 
forth aviation program expenditure purposes through September 
30, 2014).

                             EFFECTIVE DATE

    The provision takes effect on date of enactment.

    B. Extension of Taxes Funding the Airport and Airway Trust Fund

                              PRESENT LAW

Overview

    Excise taxes are imposed on amounts paid for commercial air 
passenger and freight transportation and on fuels used in 
commercial aviation and noncommercial aviation (i.e., 
transportation that is not ``for hire'') to fund the Airport 
and Airway Trust Fund. The present aviation excise taxes are as 
follows:
---------------------------------------------------------------------------
    \3\The domestic flight segment portion of the tax is adjusted 
annually (effective each January 1) for inflation (adjustments based on 
the changes in the consumer price index (the ``CPI'')).
    \4\The international travel facilities tax rate is adjusted 
annually for inflation (measured by changes in the CPI).
    \5\Like most other taxable motor fuels, aviation fuels are subject 
to an additional 0.1-cent-per-gallon excise tax to fund the Leaking 
Underground Storage Tank Trust Fund.

------------------------------------------------------------------------
          Tax (and Code section)                      Tax rates
------------------------------------------------------------------------
Domestic air passengers (sec. 4261).......  7.5 percent of fare, plus
                                             $3.70 (2011) per domestic
                                             flight segment
                                             generally.\3\
International travel facilities tax (sec.   $16.30 (2011) per arrival or
 4261).                                      departure.\4\
Amounts paid for right to award free or     7.5 percent of amount paid.
 reduced rate passenger air transportation
 (sec. 4261).
Air cargo (freight) transportation (sec.    6.25 percent of amount
 4271).                                      charged for domestic
                                             transportation; no tax on
                                             international cargo
                                             transportation.
Aviation fuels (sec. 4081):\5\
    1. Commercial aviation................  4.3 cents per gallon.
    2. Non-commercial (general) aviation:.
          Aviation gasoline.......  19.3 cents per gallon.
          Jet fuel................  21.8 cents per gallon.
------------------------------------------------------------------------

    All Airport and Airway Trust Fund excise taxes, except for 
4.3 cents per gallon of the taxes on aviation fuels, are 
scheduled to expire after March 31, 2011. The 4.3-cents-per-
gallon fuels tax rate is permanent.

Taxes on transportation of persons by air

            Domestic air passenger excise tax
    Domestic air passenger transportation generally is subject 
to a two-part excise tax. The first component is an ad valorem 
tax imposed at the rate of 7.5 percent of the amount paid for 
the transportation. The second component is a flight segment 
tax. For 2011, the flight segment tax rate is $3.70.\6\ A 
flight segment is defined as transportation involving a single 
take-off and a single landing. For example, travel from New 
York to San Francisco, with an intermediate stop in Chicago, 
consists of two flight segments (without regard to whether the 
passenger changes aircraft in Chicago).
---------------------------------------------------------------------------
    \6\Sec. 4261(b)(1) and 4261(d)(4). The Code provides for a $3 tax 
indexed annually for inflation, effective each January 1, resulting in 
the current rate of $3.70.
---------------------------------------------------------------------------
    The flight segment component of the tax does not apply to 
segments to or from qualified ``rural airports.'' For any 
calendar year, a rural airport is defined as an airport that in 
the second preceding calendar year had fewer than 100,000 
commercial passenger departures, and meets one of the following 
three additional requirements: (1) the airport is not located 
within 75 miles of another airport that had more than 100,000 
such departures in that year; (2) the airport is receiving 
payments under the Federal ``essential air service'' program; 
or (3) the airport is not connected by paved roads to another 
airport.\7\
---------------------------------------------------------------------------
    \7\In the case of an airport qualifying as ``rural'' because it is 
not connected by paved roads to another airport, only departures for 
flight segments of 100 miles or more are considered in calculating 
whether the airport has fewer than 100,000 commercial passenger 
departures. The Department of Transportation has published a list of 
airports that meet the definition of rural airports. See Rev. Proc. 
2005-45.
---------------------------------------------------------------------------
    The domestic air passenger excise tax applies to ``taxable 
transportation.'' Taxable transportation means transportation 
by air that begins in the United States or in the portion of 
Canada or Mexico that is not more than 225 miles from the 
nearest point in the continental United States and ends in the 
United States or in such 225-mile zone. If the domestic 
transportation is paid for outside of the United States, it is 
taxable only if it begins and ends in the United States.
    For purposes of the domestic air passenger excise tax, 
taxable transportation does not include ``uninterrupted 
international air transportation.'' Uninterrupted international 
air transportation is any transportation that does not both 
begin and end in the United States or within the 225-mile zone 
and does not have a layover time of more than 12 hours. The tax 
on international air passenger transportation is discussed 
below.
            International travel facilities tax
    For 2011, international air passenger transportation is 
subject to a tax of $16.30 per arrival or departure in lieu of 
the taxes imposed on domestic air passenger transportation if 
the transportation begins or ends in the United States.\8\ The 
definition of international transportation includes certain 
purely domestic transportation that is associated with an 
international journey. Under these rules, a passenger traveling 
on separate domestic segments integral to international travel 
is exempt from the domestic passenger taxes on those segments 
if the stopover time at any point within the United States does 
not exceed 12 hours.
---------------------------------------------------------------------------
    \8\Secs. 4261(c) and 4261(d)(4). The international air facilities 
tax rate of $12 is indexed annually for inflation, effective each 
January 1, resulting in the current rate of $16.30.
---------------------------------------------------------------------------
    In the case of a domestic segment beginning or ending in 
Alaska or Hawaii, the tax applies to departures only and is 
$8.20 for calendar year 2011.
            ``Free'' travel
    Both the domestic air passenger tax and the use of 
international air facilities tax apply only to transportation 
for which an amount is paid. Thus, free travel, such as that 
awarded in ``frequent flyer'' programs and nonrevenue travel by 
airline industry employees, is not subject to tax. However, 
amounts paid to air carriers (in cash or in kind) for the right 
to award free or reduced-fare transportation are treated as 
amounts paid for taxable air transportation and are subject to 
the 7.5 percent ad valorem tax (but not the flight segment tax 
or the use of international air facilities tax). Examples of 
such payments are purchases of miles by credit card companies 
and affiliates (including airline affiliates) for use as 
``rewards'' to cardholders.
            Disclosure of air passenger transportation taxes on tickets 
                    and in advertising
    Transportation providers are subject to special penalties 
relating to the disclosure of the amount of the passenger taxes 
on tickets and in advertising. The ticket is required to show 
the total amount paid for such transportation and the tax. The 
same requirements apply to advertisements. In addition, if the 
advertising separately states the amount to be paid for the 
transportation or the amount of taxes, the total shall be 
stated at least as prominently as the more prominently stated 
of the tax or the amount paid for transportation. Failure to 
satisfy these disclosure requirements is a misdemeanor, upon 
conviction of which the guilty party is fined not more than 
$100 per violation.\9\
---------------------------------------------------------------------------
    \9\Sec. 7275.
---------------------------------------------------------------------------

Tax on transportation of property (cargo) by air

    Amounts equivalent to the taxes received from the 
transportation of property by air are transferred to the 
Airport and Airway Trust Fund. Domestic air cargo 
transportation is subject to a 6.25 percent ad valorem excise 
tax on the amount paid for the transportation.\10\ The tax 
applies only to transportation that both begins and ends in the 
United States. There is no disclosure requirement for the air 
cargo tax.
---------------------------------------------------------------------------
    \10\Sec. 4271.
---------------------------------------------------------------------------

Aviation fuel taxes

    The Code imposes excise taxes on gasoline used in 
commercial aviation (4.3 cents per gallon) and noncommercial 
aviation (19.3 cents per gallon), and on jet fuel (kerosene) 
and other aviation fuels used in commercial aviation (4.3 cents 
per gallon) and noncommercial aviation (21.8 cents per 
gallon).\11\ Amounts equivalent to these taxes are transferred 
to the Airport and Airway Trust Fund.
---------------------------------------------------------------------------
    \11\These fuels are also subject to an additional 0.1 cent per 
gallon for the Leaking Underground Storage Tank Trust Fund. If there 
was not a taxable sale of the fuel pursuant to section 4081 of the 
Code, a backup tax exists under section 4041(c) for such fuel that is 
subsequently sold or used in aviation.
---------------------------------------------------------------------------

                           REASONS FOR CHANGE

    Funding operations and improvements to the nation's 
airports and air infrastructure is vitally important to 
creating and sustaining economic growth and promoting commerce. 
However, such funding must be accomplished in a fiscally 
responsible way. The pending multi-year reauthorization bill 
(H.R. 658) reduces spending as compared to current FAA spending 
trends, and therefore, does not require additional revenue 
beyond current levels.\12\ As a result, the Committee believes 
only an extension of the present-law Airport and Airway Trust 
Fund excise taxes through September 30, 2014 is needed.
---------------------------------------------------------------------------
    \12\The bill sets funding levels at the aggregate FY 2008 level. 
See H. Rpt. 112-29, Part 1 (112th Cong. 1st Sess.) at 74.
---------------------------------------------------------------------------

                        EXPLANATION OF PROVISION

    The provision extends the present-law Airport and Airway 
Trust Fund excise taxes through September 30, 2014.

                             EFFECTIVE DATE

    The provision takes effect on the date of enactment.

                      III. VOTES OF THE COMMITTEE

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the following statements are made 
concerning the vote of the Committee on Ways and Means in its 
consideration of H.R. 1034, the ``Airport and Airway Trust Fund 
Financing Reauthorization Act of 2011.''

                    MOTION TO REPORT RECOMMENDATIONS

    H.R. 1034 was ordered favorably reported by voice vote 
(with a quorum being present).

                     IV. BUDGET EFFECTS OF THE BILL

               A. Committee Estimate of Budgetary Effects

    In compliance with clause 3(d) of rule XIII of the Rules of 
the House of Representatives, the following statement is made 
concerning the effects on the budget of the revenue provisions 
of the bill, H.R. 1034 as reported.
    The bill, as reported, is estimated to have the following 
effects on budget receipts for fiscal years 2011-2021:

B. Statement Regarding New Budget Authority and Tax Expenditures Budget 
                               Authority

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee states that the 
bill involves no new or increased budget authority. The 
Committee states further that the bill involves no new or 
increased tax expenditures.

      C. Cost Estimate Prepared by the Congressional Budget Office

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, requiring a cost estimate 
prepared by the CBO, the following statement by CBO is 
provided.

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, March 25, 2011.
Hon. Dave Camp,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1034, the Airport 
and Airway Trust Fund Financing Reauthorization Act of 2011.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Megan 
Carroll.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

H.R. 1034--Airport and Airway Trust Fund Financing Reauthorization Act 
        of 2011

    Summary: H.R. 1034 would extend through fiscal year 2014 
the existing taxes that are dedicated to the Airport and Airway 
Trust Fund (AATF) and the Federal Aviation Administration's 
(FAA's) authority to expend amounts credited to that fund. 
Previously, the Airport and Airway Extension Act of 2010, Part 
IV (Public Law 111-329) extended aviation-related taxes through 
March 31, 2011, and the FAA's authority to expend amounts in 
the AATF through April 1, 2011.
    Pursuant to rules that govern the calculation of CBO's 
baseline, certain expiring provisions of law--such as those 
that govern taxes credited to the AATF--are assumed to continue 
beyond their scheduled expiration date for budget projection 
purposes. H.R. 1034 would continue aviation-related taxes at 
levels that are consistent with those projected in CBO's 
baseline over the 2011-2014 period (roughly $11.2 billion in 
2011, increasing to $13.1 billion by 2014). As a result, the 
Joint Committee on Taxation (JCT) estimates that enacting the 
bill would not affect revenues, relative to that baseline. 
Further, the bill would not affect direct spending; therefore, 
pay-as-you-go procedures do not apply.
    By extending the authority to expend amounts from the AATF, 
the bill would authorize the appropriation of amounts credited 
to the fund over the 2011-2014 period. As a result, CBO 
estimates that implementing H.R. 1034 would increase 
discretionary spending by $36.4 billion over the 2011-2016 
period, assuming appropriation of amounts anticipated to be 
credited to the AATF.
    JCT has determined that H.R. 1034 contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act (UMRA).
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 1034 is shown in the following table. 
The costs of this legislation fall within budget function 400 
(transportation).

----------------------------------------------------------------------------------------------------------------
                                                             By fiscal year, in millions of dollars--
                                                ----------------------------------------------------------------
                                                   2011     2012     2013     2014     2015     2016   2011-2016
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

AATF Spending Under Current Law:
    Estimated Budget Authority\a\..............   10,977        0        0        0        0        0    10,977
    Estimated Outlays..........................   10,572    4,147    2,582      966      372      241    18,880
Proposed Changes:
  Estimated Authorization Level................      332   11,904   12,533   13,261        0        0    38,030
    Estimated Outlays..........................      190    6,882    9,423   11,780    5,068    3,012    36,355
Spending Under H.R. 1034:
    Estimated Authorization Level..............   11,309   11,904   12,533   13,261        0        0    49,007
    Estimated Outlays..........................   10,762   11,029   12,005   12,746    5,440    3,253    55,235
----------------------------------------------------------------------------------------------------------------
Note: AATF = Airport and Airway Trust Fund.
\a\Annualized level of budget authority provided in Public Law 112-6.

    Basis of estimate: For this estimate, CBO assumes that H.R. 
1034 will be enacted in the spring of 2011. Outlay estimates 
are based on historical spending patterns for FAA programs.
    The AATF is an accounting mechanism in the federal budget 
that records receipts from certain aviation-related taxes and 
spending for a major portion of the FAA's activities. The fund 
is also credited with interest on its unexpended balances. 
Annual spending from the fund is not automatically triggered by 
the collection of tax revenues or transfers of interest 
earnings but is controlled by annual appropriation acts.
    A full-year appropriation for aviation programs in 2011 has 
not yet been enacted. For this estimate, CBO has assumed that 
the partial-year funding already provided under Public Law 112-
6, Additional Continuing Appropriation Amendments, 2011, will 
be increased proportionately--annualized--to provide full-year 
funding. On an annualized basis, funding for aviation programs 
drawn from the AATF for 2011 currently totals nearly $11 
billion. CBO estimates that spending from the AATF under 
current law will total $18.9 billion over the 2011-2016 period. 
That estimate includes outlays stemming from authority provided 
under Public Law 112-6 and from funding provided prior to 2011.
    By extending the authority to expend amounts from the AATF, 
H.R. 1034 would authorize the appropriation of amounts credited 
to the fund over the 2011-2014 period. CBO estimates that such 
amounts would total $11.3 billion in 2011 ($332 million more 
than is currently available under Public Law 112-6) and $49 
billion over the 2011-2014 period. (That 4-year total includes 
roughly $48.3 billion in revenues from aviation-related taxes 
and about $700 million in intergovernmental interest.) Assuming 
appropriation of the estimated amounts, CBO estimates that 
increased spending under H.R. 1034 would total $36.4 billion 
over the 2011-2016 period, with additional spending occurring 
in later years.
    Pay-As-You-Go considerations: None.
    Intergovernmental and private-sector impact: JCT has 
determined that H.R. 1034 contains no intergovernmental or 
private-sector mandates as defined in UMRA.
    Estimate prepared by: Megan Carroll.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                    D. Macroeconomic Impact Analysis

    In compliance with clause 3(h)(2) of rule XIII of the Rules 
of the House of Representatives, the following statement is 
made by the Joint Committee on Taxation with respect to the 
provisions of the bill amending the Internal Revenue Code of 
1986: The effects of the bill on economic activity are so small 
as to be incalculable within the context of a model of the 
aggregate economy.

     V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE

          A. Committee Oversight Findings and Recommendations

    With respect to clause 3(c)(1) of rule XIII of the Rules of 
the House of Representatives (relating to oversight findings), 
the Committee advises that given the need to provide stable 
funding for the national aviation system, it is appropriate to 
report the bill providing a multi-year reauthorization of taxes 
and Airport and Airway Trust Fund expenditure authority 
favorably to the House of Representatives with the 
recommendation that the bill do pass.

        B. Statement of General Performance Goals and Objectives

    With respect to clause 3(c)(4) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that the 
bill contains no measure that authorizes funding, so no 
statement of general performance goals and objectives for which 
any measure authorizes funding is required.

              C. Information Relating to Unfunded Mandates

    This information is provided in accordance with section 423 
of the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104-
4).
    The Committee has determined that the bill does not contain 
Federal mandates on the private sector. The Committee has 
determined that the bill does not impose a Federal 
intergovernmental mandate on State, local, or tribal 
governments.

                D. Applicability of House Rule XXI 5(b)

    Rule XXI 5(b) of the Rules of the House of Representatives 
provides, in part, that ``A bill or joint resolution, 
amendment, or conference report carrying a Federal income tax 
rate increase may not be considered as passed or agreed to 
unless so determined by a vote of not less than three-fifths of 
the Members voting, a quorum being present.'' The Committee has 
carefully reviewed the provisions of the bill, and states that 
the provisions of the bill do not involve any Federal income 
tax rate increases within the meaning of the rule.

                       E. Tax Complexity Analysis

    Section 4022(b) of the Internal Revenue Service Reform and 
Restructuring Act of 1998 (the ``IRS Reform Act'') requires the 
staff of the Joint Committee on Taxation (in consultation with 
the Internal Revenue Service and the Treasury Department) to 
provide a tax complexity analysis. The complexity analysis is 
required for all legislation reported by the Senate Committee 
on Finance, the House Committee on Ways and Means, or any 
committee of conference if the legislation includes a provision 
that directly or indirectly amends the Internal Revenue Code 
and has widespread applicability to individuals or small 
businesses.
    Pursuant to clause 3(h)(1) of rule XIII of the Rules of the 
House of Representatives, the staff of the Joint Committee on 
Taxation has determined that a complexity analysis is not 
required under section 4022(b) of the IRS Reform Act because 
the bill contains no provisions that have ``widespread 
applicability'' to individuals or small businesses within the 
meaning of that section.

  F. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee has carefully reviewed 
the provisions of the bill, and states that the provisions of 
the bill do not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits within the meaning of the 
rule.

       VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

INTERNAL REVENUE CODE OF 1986

           *       *       *       *       *       *       *

Subtitle D--Miscellaneous Excise Taxes

           *       *       *       *       *       *       *

CHAPTER 32--MANUFACTURERS EXCISE TAXES

           *       *       *       *       *       *       *

Subchapter A--Automotive and Related Items

           *       *       *       *       *       *       *

PART III--PETROLEUM PRODUCTS

           *       *       *       *       *       *       *

                  Subpart A--Motor and Aviation Fuels

SEC. 4081. IMPOSITION OF TAX.

  (a) * * *

           *       *       *       *       *       *       *

  (d) Termination.--
          (1) * * *
          (2) Aviation fuels.--The rates of tax specified in 
        subsection (a)(2)(A)(ii) and (a)(2)(C)(ii) shall be 4.3 
        cents per gallon--
                  (A) * * *
                  (B) after [March 31, 2011] September 30, 
                2014.

           *       *       *       *       *       *       *

CHAPTER 33--FACILITIES AND SERVICES

           *       *       *       *       *       *       *

Subchapter C--Transportation by Air

           *       *       *       *       *       *       *

                            PART I--PERSONS

SEC. 4261. IMPOSITION OF TAX.

  (a) * * *

           *       *       *       *       *       *       *

  (j) Application of Taxes.--
          (1) In general.--The taxes imposed by this section 
        shall apply to--
                  (A) transportation beginning during the 
                period--
                          (i) * * *
                          (ii) ending on [March 31, 2011] 
                        September 30, 2014, and (B) amounts 
                        paid during such period for 
                        transportation beginning after such 
                        period.

           *       *       *       *       *       *       *

                           PART II--PROPERTY

SEC. 4271. IMPOSITION OF TAX.

  (a) * * *

           *       *       *       *       *       *       *

  (d) Application of Tax.--
          (1) In general.--The tax imposed by subsection (a) 
        shall apply to--
                  (A) transportation beginning during the 
                period--
                          (i) * * *
                          (ii) ending on [March 31, 2011] 
                        September 30, 2014, and (B) amounts 
                        paid during such period for 
                        transportation beginning after such 
                        period.

           *       *       *       *       *       *       *

Subtitle I--Trust Fund Code

           *       *       *       *       *       *       *

CHAPTER 98--TRUST FUND CODE

           *       *       *       *       *       *       *

Subchapter A--Establishment of Trust Funds

           *       *       *       *       *       *       *

SEC. 9502. AIRPORT AND AIRWAY TRUST FUND.

  (a) * * *

           *       *       *       *       *       *       *

  (d) Expenditures From Airport and Airway Trust Fund.--
          (1) Airport and airway program.--Amounts in the 
        Airport and Airway Trust Fund shall be available, as 
        provided by appropriation Acts, for making expenditures 
        before [April 1, 2011] October 1, 2014, to meet those 
        obligations of the United States--
                  (A) incurred under title I of the Airport and 
                Airway Development Act of 1970 or of the 
                Airport and Airway Development Act Amendments 
                of 1976 or of the Aviation Safety and Noise 
                Abatement Act of 1979 or under the Fiscal Year 
                1981 Airport Development Authorization Act or 
                the provisions of the Airport and Airway 
                Improvement Act of 1982 or the Airport and 
                Airway Safety and Capacity Expansion Act of 
                1987 or the Federal Aviation Administration 
                Research, Engineering, and Development 
                Authorization Act of 1990 or the Aviation 
                Safety and Capacity Expansion Act of 1990 or 
                the Airport and Airway Safety, Capacity, Noise 
                Improvement, and Intermodal Transportation Act 
                of 1992 or the Airport Improvement Program 
                Temporary Extension Act of 1994 or the Federal 
                Aviation Administration Authorization Act of 
                1994 or the Federal Aviation Reauthorization 
                Act of 1996 or the provisions of the Omnibus 
                Consolidated and Emergency Supplemental 
                Appropriations Act, 1999 providing for payments 
                from the Airport and Airway Trust Fund or the 
                Interim Federal Aviation Administration 
                Authorization Act or section 6002 of the 1999 
                Emergency Supplemental Appropriations Act, 
                Public Law 106-59, or the Wendell H. Ford 
                Aviation Investment and Reform Act for the 21st 
                Century or the Aviation and Transportation 
                Security Act or the Vision 100--Century of 
                Aviation Reauthorization Act or any joint 
                resolution making continuing appropriations for 
                the fiscal year 2008 or the Department of 
                Transportation Appropriations Act, 2008 or the 
                Airport and Airway Extension Act of 2008 or the 
                Federal Aviation Administration Extension Act 
                of 2008 or the Federal Aviation Administration 
                Extension Act of 2008, Part II or the Federal 
                Aviation Administration Extension Act of 2009 
                or any joint resolution making continuing 
                appropriations for the fiscal year 2010 or the 
                Fiscal Year 2010 Federal Aviation 
                Administration Extension Act or the Fiscal Year 
                2010 Federal Aviation Administration Extension 
                Act, Part II or the Federal Aviation 
                Administration Extension Act of 2010 or the 
                Airport and Airway Extension Act of 2010 or the 
                Airport and Airway Extension Act of 2010, Part 
                II or the Airline Safety and Federal Aviation 
                Administration Extension Act of 2010 or the 
                Airport and Airway Extension Act of 2010, Part 
                III or the Airport and Airway Extension Act of 
                2010, Part IV or the FAA Reauthorization and 
                Reform Act of 2011;

           *       *       *       *       *       *       *

  (e) Limitation on transfers to Trust Fund.--
          (1) * * *
          (2) Exception for prior obligations.--Paragraph (1) 
        shall not apply to any expenditure to liquidate any 
        contract entered into (or for any amount otherwise 
        obligated) before [April 1, 2011] October 1, 2014, in 
        accordance with the provisions of this section.

           *       *       *       *       *       *       *

                                  
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