I 

110TH CONGRESS 

1ST SESSION H. R. 2480 

To amend the Internal Revenue Code of 1986 to suspend the Federal motor 

fuel excise taxes until the average price of unleaded gasoline is below 

$3 per gallon for at least 6 months. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 24, 2007 

Mr. HILL (for himself and Mrs. BOYDA of Kansas) introduced the following 

bill; which was referred to the Committee on Ways and Means, and in 

addition to the Committee on Energy and Commerce, for a period to be 

subsequently determined by the Speaker, in each case for consideration 

of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Internal Revenue Code of 1986 to suspend 

the Federal motor fuel excise taxes until the average 

price of unleaded gasoline is below $3 per gallon for 

at least 6 months. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Gas Price Relief Act 

5 of 2007’’. 

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1 SEC. 2. TEMPORARY SUSPENSION OF MOTOR FUEL TAXES. 

2 (a) IN GENERAL.—Section 4081 of the Internal Rev3 enue Code of 1986 (relating to imposition of tax on gaso4 line, diesel fuel, and kerosene) is amended by adding at 

5 the end the following new subsection: 

6 ‘‘(f) TEMPORARY SUSPENSION OF TAXES.— 

7 ‘‘(1) IN GENERAL.—During the suspension pe8 riod, each rate of tax referred to in paragraph (2) 

9 shall be zero. 

10 ‘‘(2) RATES OF TAX.—The rates of tax referred 

11 to in this paragraph are the rates of tax otherwise 

12 applicable under— 

13 ‘‘(A) paragraphs (1), (2), and (3) of sec14 tion 4041(a) (relating to retail taxes on diesel 

15 fuel, special motor fuels, and compressed nat16 ural gas), 

17 ‘‘(B) section 4041(d) (relating to addi18 tional taxes to fund Leaking Underground Stor19 age Tank Trust Fund), 

20 ‘‘(C) section 4041(m) (relating to certain 

21 alcohol fuels), 

22 ‘‘(D) clauses (i) and (iii) of subsection 

23 (a)(2)(A) (relating to gasoline, diesel fuel, and 

24 kerosene), and 

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1 ‘‘(E) subsection (a)(2)(B) (relating to 

2 Leaking Underground Storage Tank Trust 

3 Fund tax). 

4 ‘‘(3) EXCEPTIONS.—Paragraph (1) shall not 

5 apply to— 

6 ‘‘(A) any tax imposed by section 4041 on 

7 fuel sold for use or used in a train or motor8 boat, and 

9 ‘‘(B) any tax imposed by section 4081 on 

10 gasoline or kerosene used for aviation. 

11 ‘‘(4) SUSPENSION PERIOD.—For purposes of 

12 this subsection, the term ‘suspension period’ means 

13 the period beginning on the date of the enactment 

14 of this subsection and ending on the last day of the 

15 first period of 6 consecutive months beginning after 

16 such date that the national average price of un17 leaded regular gasoline is less than $3.00 per gallon 

18 (as determined under section 6 of the Gas Price Re19 lief Act of 2007). 

20 ‘‘(5) MAINTENANCE OF TRUST FUND DEPOS21 ITS.—In determining the amounts to be appro22 priated to any trust fund, an amount equal to the 

23 reduction in revenues to the Treasury by reason of 

24 a reduction under this subsection in any rate shall 

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1 be treated as taxes received in the Treasury under 

2 such rate.’’. 

3 (b) EFFECTIVE DATE.—The amendments made by 

4 this section shall take effect on the date of the enactment 

5 of this Act. 

6 SEC. 3. REPEAL OF EXPENSING FOR CERTAIN REFINERIES. 

7 (a) IN GENERAL.—Section 179C of the Internal Rev8 enue Code of 1986 (relating to election to expense certain 

9 refineries) is hereby repealed. 

10 (b) TECHNICAL AMENDMENTS.— 

11 (1) Section 1245(a) of such Code is amended 

12 by striking ‘‘179C,’’ each place it appears. 

13 (2) Section 263(a)(1) of such Code is amended 

14 by adding ‘‘or’’ at the end of subparagraph (H), by 

15 striking ‘‘, or’’ at the end of subparagraph (I) and 

16 inserting a period, and by striking subparagraph 

17 (J). 

18 (3) Section 312(k)(3)(B) of such Code is 

19 amended by striking ‘‘179B, or 179C’’ each place it 

20 appears in the heading and the text and inserting ‘‘, 

21 or 179B’’. 

22 (4) The table of sections for part VI of sub23 chapter B of chapter 1 of such Code is amended by 

24 striking the item relating to section 179C. 

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1 (c) TRANSFER OF EQUIVALENT TAX LIABILITY TO

2 HIGHWAY TRUST FUND.—There are hereby appropriated 

3 to the Highway Trust Fund amounts equivalent to the ag4 gregate net increase in tax liabilities under chapter 1 of 

5 the Internal Revenue Code of 1986 which is attributable 

6 to the repeal of section 179C of such Code by subsection 

7 (a). Such appropriated amounts shall be transferred from 

8 the general fund of the Treasury on the basis of estimates 

9 of such tax liabilities made by the Secretary of the Treas10 ury. Transfers shall be made pursuant to a schedule made 

11 by the Secretary of the Treasury that takes into account 

12 estimated timing of collection of such liabilities. Proper 

13 adjustments shall be made in amounts transferred to the 

14 extent prior estimates were in excess of or less than the 

15 amounts required to be transferred. 

16 (d) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to property placed in service after 

18 the date of the enactment of this Act. 

19 SEC. 4. FLOOR STOCK REFUNDS. 

20 (a) IN GENERAL.—If— 

21 (1) before the date of the enactment of this 

22 Act, a tax referred to in section 4081(f)(2) of the 

23 Internal Revenue Code of 1986 has been imposed on 

24 any liquid, and 

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1 (2) on such date such liquid is held by a dealer 

2 and has not been used and is intended for sale, 

3 there shall be credited or refunded (without interest) to 

4 the person who paid such tax (hereafter in this section 

5 referred to as the ‘‘taxpayer’’) an amount equal to the ex6 cess of the tax paid by the taxpayer over the amount of 

7 such tax which would be imposed on such liquid had the 

8 taxable event occurred on such date. 

9 (b) TIME FOR FILING CLAIMS.—No credit or refund 

10 shall be allowed or made under this section unless— 

11 (1) claim therefor is filed with the Secretary of 

12 the Treasury before the date which is 6 months 

13 after the date of the enactment of this Act, and 

14 (2) in any case where liquid is held by a dealer 

15 (other than the taxpayer) on the date of the enact16 ment of this Act— 

17 (A) the dealer submits a request for refund 

18 or credit to the taxpayer before the date which 

19 is 3 months after such date, and 

20 (B) the taxpayer has repaid or agreed to 

21 repay the amount so claimed to such dealer or 

22 has obtained the written consent of such dealer 

23 to the allowance of the credit or the making of 

24 the refund. 

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1 (c) EXCEPTION FOR FUEL HELD IN RETAIL

2 STOCKS.—No credit or refund shall be allowed under this 

3 section with respect to any liquid in retail stocks held at 

4 the place where intended to be sold at retail. 

5 (d) DEFINITIONS.—For purposes of this section, the 

6 terms ‘‘dealer’’ and ‘‘held by a dealer’’ have the respective 

7 meanings given to such terms by section 6412 of such 

8 Code; except that the term ‘‘dealer’’ includes a producer. 

9 (e) CERTAIN RULES TO APPLY.—Rules similar to the 

10 rules of subsections (b) and (c) of section 6412 of such 

11 Code shall apply for purposes of this section. 

12 SEC. 5. FLOOR STOCKS TAX. 

13 (a) IMPOSITION OF TAX.—In the case of any taxable 

14 liquid which is held on the floor stocks tax date by any 

15 person, there is hereby imposed a floor stocks tax equal 

16 to the excess of the tax which would be imposed on such 

17 liquid under any section of the Internal Revenue Code of 

18 1986 referred to in section 4081(f)(2) of such Code had 

19 the taxable event occurred on the floor stocks tax date over 

20 the tax paid under any such section on such liquid. 

21 (b) LIABILITY FOR TAX AND METHOD OF PAY22 MENT.— 

23 (1) LIABILITY FOR TAX.—A person holding a 

24 liquid on the floor stocks tax date to which the tax 

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1 imposed by subsection (a) applies shall be liable for 

2 such tax. 

3 (2) METHOD OF PAYMENT.—The tax imposed 

4 by subsection (a) shall be paid in such manner as 

5 the Secretary shall prescribe. 

6 (3) TIME OF PAYMENT.—The tax imposed by 

7 subsection (a) shall be paid on or before the date 

8 which is 6 months after the floor stocks tax date. 

9 (c) DEFINITIONS.—For purposes of this section— 

10 (1) HELD BY A PERSON.—A liquid shall be con11 sidered as ‘‘held by a person’’ if title thereto has 

12 passed to such person (whether or not delivery to 

13 the person has been made). 

14 (2) TAXABLE LIQUID.—The term ‘‘taxable liq15 uid’’ means any liquid on which a tax referred to in 

16 section 4081(a)(2) of such Code is imposed on the 

17 floor stocks tax date. 

18 (3) FLOOR STOCK TAX DATE.—The term ‘‘floor 

19 stocks tax date’’ means the first day after the sus20 pension period (as defined in section 4081(f)(4) of 

21 such Code). 

22 (4) SECRETARY.—The term ‘‘Secretary’’ means 

23 the Secretary of the Treasury or the Secretary’s del24 egate. 

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1 (d) EXCEPTION FOR EXEMPT USES.—The tax im2 posed by subsection (a) shall not apply to taxable liquid 

3 held by any person exclusively for any use to the extent 

4 a credit or refund of the tax imposed by a section of the 

5 Code referred to in section 4081(a)(2) of such Code is al6 lowable for such use. 

7 (e) EXCEPTION FOR FUEL HELD IN VEHICLE

8 TANK.—No tax shall be imposed by subsection (a) on tax9 able liquid held in the tank of a motor vehicle or motor10 boat. 

11 (f) EXCEPTION FOR CERTAIN AMOUNTS OF FUEL.— 

12 (1) IN GENERAL.—No tax shall be imposed by 

13 subsection (a) on any liquid held on the floor stocks 

14 tax date by any person if the aggregate amount of 

15 liquid held by such person on such date does not ex16 ceed 2,000 gallons. The preceding sentence shall 

17 apply only if such person submits to the Secretary 

18 (at the time and in the manner required by the Sec19 retary) such information as the Secretary shall re20 quire for purposes of this paragraph. 

21 (2) EXEMPT FUEL.—For purposes of para22 graph (1), there shall not be taken into account fuel 

23 held by any person which is exempt from the tax im24 posed by subsection (a) by reason of subsection (d) 

25 or (e). 

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1 (3) CONTROLLED GROUPS.—For purposes of 

2 this section— 

3 (A) CORPORATIONS.— 

4 (i) IN GENERAL.—All persons treated 

5 as a controlled group shall be treated as 1 

6 person. 

7 (ii) CONTROLLED GROUP.—The term 

8 ‘‘controlled group’’ has the meaning given 

9 to such term by subsection (a) of section 

10 1563 of such Code; except that for such 

11 purposes the phrase ‘‘more than 50 per12 cent’’ shall be substituted for the phrase 

13 ‘‘at least 80 percent’’ each place it appears 

14 in such subsection. 

15 (B) NONINCORPORATED PERSONS UNDER

16 COMMON CONTROL.—Under regulations pre17 scribed by the Secretary, principles similar to 

18 the principles of subparagraph (A) shall apply 

19 to a group of persons under common control 

20 where 1 or more of such persons is not a cor21 poration. 

22 (g) OTHER LAWS APPLICABLE.—All provisions of 

23 law, including penalties, applicable with respect to the 

24 taxes imposed by chapter 31 or 32 of such Code shall, 

25 insofar as applicable and not inconsistent with the provimstockstill on PROD1PC66 with BILLS

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1 sions of this section, apply with respect to the floor stock 

2 taxes imposed by subsection (a) to the same extent as if 

3 such taxes were imposed by such chapter. 

4 SEC. 6. GASOLINE PRICE MONITORING. 

5 (a) ESTABLISHMENT OF MONITORING PROGRAM.— 

6 The Federal Trade Commission shall carry out a program 

7 to monitor gasoline prices in the United States. 

8 (b) MONTHLY DETERMINATION OF NATIONAL AVER9 AGE PRICE OF UNLEADED REGULAR GASOLINE.—In car10 rying out the program, the Commission shall determine 

11 for each month the national average price of unleaded reg12 ular gasoline at retail stations. 

13 (c) REPORTS.—Not later than the 15th day of each 

14 month beginning after the 180th day following the date 

15 of enactment of this Act, the Commission shall— 

16 (1) transmit to Congress a report containing 

17 the results of monitoring conducted under the pro18 gram in the preceding month, including the deter19 mination required under subsection (b); and 

20 (2) make a copy of the report available to the 

21 public in an electronic format on an Internet website 

22 maintained by the Commission. 

23 SEC. 7. COMMISSION ON GAS PRICE RELIEF. 

24 (a) ESTABLISHMENT.—Not later than three months 

25 after the date of enactment of this Act, the Speaker of 

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1 the House of Representatives shall establish a Commission 

2 on Gas Price Relief. 

3 (b) STUDY AND REPORT.—The Commission shall 

4 conduct a study of the causes of high oil prices and submit 

5 a report to the House of Representatives within 1 year 

6 after the date on which such Commission is established. 

7 The report shall include a determination of revenue raisers 

8 in addition to the repeal of section 179C of the Internal 

9 Revenue Code of 1986 (made by section 3 of this Act) 

10 that would help replenish the Treasury for the loss in rev11 enue resulting from any suspension of the Federal excise 

12 taxes on motor fuels under section 4081(f) of the Internal 

13 Revenue Code of 1986 (as added by section 2 of this Act). 

14 (c) MEMBERSHIP.—The Commission shall be com15 prised of 9 Members, as follows: 

16 (1) The Chairman of the Committee on Ways 

17 and Means, ex officio. 

18 (2) The Chairman of the Committee on Energy 

19 and Commerce, ex officio. 

20 (3) One member, appointed by the Chairman of 

21 the Committee on Ways and Means, who shall not 

22 be from the same political party as the Chairman. 

23 (4) One member, appointed by the Chairman of 

24 the Committee on Energy and Commerce, who shall 

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1 not be from the same political party as the Chair2 man. 

3 (5) Five members appointed by the Speaker, of 

4 whom at least two shall not be from the same polit5 ical party as the Speaker. 

6 (d) CO-CHAIRS.—The Chairman of the Committee on 

7 Ways and Means and the Chairman of the Committee on 

8 Energy and Commerce shall serve as co-chairmen of the 

9 Commission. 

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