II 

109TH CONGRESS 

1ST SESSION S. 1981 

To amend the Internal Revenue Code of 1986 to impose a temporary windfall 

profit tax on crude oil, to rebate a portion of the tax collected back 

to American consumers, to fund programs under the Low-Income Home 

Energy Assistance Act of 1981 and tax incentives for the manufacture 

of energy efficient motor vehicles by using a portion of the proceeds 

of such tax, and to deposit the balance of the tax collected into the 

Highway Trust Fund to support the funding of highway projects and 

to aid highway users, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 9, 2005 

Mr. DURBIN introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to impose 

a temporary windfall profit tax on crude oil, to rebate 

a portion of the tax collected back to American consumers, to fund programs under the Low-Income Home 

Energy Assistance Act of 1981 and tax incentives for 

the manufacture of energy efficient motor vehicles by 

using a portion of the proceeds of such tax, and to 

deposit the balance of the tax collected into the Highway 

Trust Fund to support the funding of highway projects 

and to aid highway users, and for other purposes. 
2 

•S 1981 IS

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 ‘‘Windfall Profits Tax 

5 Act of 2005’’. 

6 SEC. 2. WINDFALL PROFITS TAX. 

7 (a) IN GENERAL.—Subtitle E of the Internal Rev8 enue Code of 1986 (relating to alcohol, tobacco, and cer9 tain other excise taxes) is amended by adding at the end 

10 thereof the following new chapter: 

11 ‘‘CHAPTER 56—WINDFALL PROFITS ON 

12 CRUDE OIL 

‘‘Sec. 5896. Imposition of tax. 

‘‘Sec. 5897. Windfall profit; removal price; adjusted base price; qualified investment. 

‘‘Sec. 5898. Special rules and definitions. 

13 ‘‘SEC. 5896. IMPOSITION OF TAX. 

14 ‘‘(a) IN GENERAL.—In addition to any other tax im15 posed under this title, there is hereby imposed on any inte16 grated oil company (as defined in section 291(b)(4)) an 

17 excise tax equal to the amount equal to 50 percent of the 

18 windfall profit from all barrels of taxable crude oil re19 moved from the property during each taxable year. 

20 ‘‘(b) FRACTIONAL PART OF BARREL.—In the case of 

21 a fraction of a barrel, the tax imposed by subsection (a) 

22 shall be the same fraction of the amount of such tax im23 posed on the whole barrel. 
3 

•S 1981 IS

1 ‘‘(c) TAX PAID BY PRODUCER.—The tax imposed by 

2 this section shall be paid by the producer of the taxable 

3 crude oil. 

4 ‘‘SEC. 5897. WINDFALL PROFIT; REMOVAL PRICE; AD5 JUSTED BASE PRICE. 

6 ‘‘(a) GENERAL RULE.—For purposes of this chapter, 

7 the term ‘windfall profit’ means the excess of the removal 

8 price of the barrel of taxable crude oil over the adjusted 

9 base price of such barrel. 

10 ‘‘(b) REMOVAL PRICE.—For purposes of this chap11 ter— 

12 ‘‘(1) IN GENERAL.—Except as otherwise pro13 vided in this subsection, the term ‘removal price’ 

14 means the amount for which the barrel of taxable 

15 crude oil is sold. 

16 ‘‘(2) SALES BETWEEN RELATED PERSONS.—In 

17 the case of a sale between related persons, the re18 moval price shall not be less than the constructive 

19 sales price for purposes of determining gross income 

20 from the property under section 613. 

21 ‘‘(3) OIL REMOVED FROM PROPERTY BEFORE

22 SALE.—If crude oil is removed from the property be23 fore it is sold, the removal price shall be the con24 structive sales price for purposes of determining 

25 gross income from the property under section 613. 
4 

•S 1981 IS

1 ‘‘(4) REFINING BEGUN ON PROPERTY.—If the 

2 manufacture or conversion of crude oil into refined 

3 products begins before such oil is removed from the 

4 property— 

5 ‘‘(A) such oil shall be treated as removed 

6 on the day such manufacture or conversion be7 gins, and 

8 ‘‘(B) the removal price shall be the con9 structive sales price for purposes of determining 

10 gross income from the property under section 

11 613. 

12 ‘‘(5) PROPERTY.—The term ‘property’ has the 

13 meaning given such term by section 614. 

14 ‘‘(c) ADJUSTED BASE PRICE DEFINED.— 

15 ‘‘(1) IN GENERAL.—For purposes of this chap16 ter, the term ‘adjusted base price’ means $40 for 

17 each barrel of taxable crude oil plus an amount 

18 equal to— 

19 ‘‘(A) such base price, multiplied by 

20 ‘‘(B) the inflation adjustment for the cal21 endar year in which the taxable crude oil is re22 moved from the property. 

23 The amount determined under the preceding sen24 tence shall be rounded to the nearest cent. 

25 ‘‘(2) INFLATION ADJUSTMENT.— 
5 

•S 1981 IS

1 ‘‘(A) IN GENERAL.—For purposes of para2 graph (1), the inflation adjustment for any cal3 endar year after 2006 is the percentage by 

4 which— 

5 ‘‘(i) the implicit price deflator for the 

6 gross national product for the preceding 

7 calendar year, exceeds 

8 ‘‘(ii) such deflator for the calendar 

9 year ending December 31, 2005. 

10 ‘‘(B) FIRST REVISION OF PRICE DEFLATOR

11 USED.—For purposes of subparagraph (A), the 

12 first revision of the price deflator shall be used. 

13 ‘‘SEC. 5898. SPECIAL RULES AND DEFINITIONS . 

14 ‘‘(a) WITHHOLDING AND DEPOSIT OF TAX.—The 

15 Secretary shall provide such rules as are necessary for the 

16 withholding and deposit of the tax imposed under section 

17 5896 on any taxable crude oil. 

18 ‘‘(b) RECORDS AND INFORMATION.—Each taxpayer 

19 liable for tax under section 5896 shall keep such records, 

20 make such returns, and furnish such information (to the 

21 Secretary and to other persons having an interest in the 

22 taxable crude oil) with respect to such oil as the Secretary 

23 may by regulations prescribe. 
6 

•S 1981 IS

1 ‘‘(c) RETURN OF WINDFALL PROFIT TAX.—The Sec2 retary shall provide for the filing and the time of such 

3 filing of the return of the tax imposed under section 5896. 

4 ‘‘(d) DEFINITIONS.—For purposes of this chapter— 

5 ‘‘(1) PRODUCER.—The term ‘producer’ means 

6 the holder of the economic interest with respect to 

7 the crude oil. 

8 ‘‘(2) CRUDE OIL.— 

9 ‘‘(A) IN GENERAL.—The term ‘crude oil’ 

10 includes crude oil condensates and natural gas11 oline. 

12 ‘‘(B) EXCLUSION OF NEWLY DISCOVERED

13 OIL.—Such term shall not include any oil pro14 duced from a well drilled after the date of the 

15 enactment of the Windfall Profits Tax Act of 

16 2005, except with respect to any oil produced 

17 from a well drilled after such date on any prov18 en oil or gas property (within the meaning of 

19 section 613A(c)(9)(A)). 

20 ‘‘(3) BARREL.—The term ‘barrel’ means 42 

21 United States gallons. 

22 ‘‘(e) ADJUSTMENT OF REMOVAL PRICE.—In deter23 mining the removal price of oil from a property in the case 

24 of any transaction, the Secretary may adjust the removal 

25 price to reflect clearly the fair market value of oil removed. 
7 

•S 1981 IS

1 ‘‘(f) REGULATIONS.—The Secretary shall prescribe 

2 such regulations as may be necessary or appropriate to 

3 carry out the purposes of this chapter. 

4 ‘‘(g) TERMINATION.—This section shall not apply to 

5 taxable crude oil removed after the date which is 10 years 

6 after the date of the enactment of this section.’’. 

7 (b) CLERICAL AMENDMENT.—The table of chapters 

8 for subtitle E of the Internal Revenue Code of 1986 is 

9 amended by adding at the end the following new item: 

‘‘CHAPTER 56. Windfall Profit on Crude Oil.’’. 

10 (c) DEDUCTIBILITY OF WINDFALL PROFIT TAX.— 

11 The first sentence of section 164(a) of the Internal Rev12 enue Code of 1986 (relating to deduction for taxes) is 

13 amended by inserting after paragraph (5) the following 

14 new paragraph: 

15 ‘‘(6) The windfall profit tax imposed by section 

16 5896.’’. 

17 (d) AMERICAN CONSUMER REBATE.— 

18 (1) IN GENERAL.—Subchapter B of chapter 65 

19 of the Internal Revenue Code of 1986 (relating to 

20 rules of special application in the case of abate21 ments, credits, and refunds) is amended by adding 

22 at the end the following new section: 

23 ‘‘SEC. 6430. AMERICAN CONSUMER REBATE. 

24 ‘‘(a) GENERAL RULE.—Except as otherwise provided 

25 in this section, each individual shall be treated as having 
8 

•S 1981 IS

1 made a payment against the tax imposed by chapter 1 in 

2 an amount equal tol 

3 ‘‘(1) in the case of any taxable year beginning 

4 in 2006, $150, and 

5 ‘‘(2) in the case of any taxable year beginning 

6 after 2006, the applicable amount. 

7 ‘‘(b) APPLICABLE AMOUNT.—For purposes of this 

8 section, the applicable amount for any taxpayer for any 

9 taxable year shall be determined by the Secretary not later 

10 than December 31 (beginning in 2007) taking into ac11 count the number of such taxpayers and 75 percent of 

12 the amount of revenues in the Treasury resulting from the 

13 tax imposed by section 5896 for such taxable year. 

14 ‘‘(c) CREDITS AND REFUNDS.—Under regulations 

15 prescribed by the Secretary, any amount treated as a pay16 ment under subsection (a) for the taxable year shall be 

17 credited against the tax liability of the taxpayer under sec18 tion 1 for such taxable year or, in the absence of such 

19 tax liability of the taxpayer for such taxable year, refunded 

20 to the taxpayer. 

21 ‘‘(d) CERTAIN PERSONS NOT ELIGIBLE.—This sec22 tion shall not apply to— 

23 ‘‘(1) any individual with respect to whom a de24 duction under section 151 is allowable to another 

25 taxpayer for a taxable year beginning in the cal-
9 

•S 1981 IS

1 endar year in which such individual’s taxable year 

2 begins, 

3 ‘‘(2) any estate or trust, or 

4 ‘‘(3) any nonresident alien individual.’’. 

5 (2) CONFORMING AMENDMENT.—Section 

6 1324(b)(2) of title 31, United States Code, is 

7 amended by inserting before the period ‘‘, or enacted 

8 by the Windfall Profits Tax Act of 2005’’. 

9 (3) CLERICAL AMENDMENT.—The table of sec10 tions for subchapter B of chapter 65 of the Internal 

11 Revenue Code of 1986 is amended by adding at the 

12 end the following new item: 

‘‘Sec. 6430. American consumer rebate.’’. 

13 (4) EFFECTIVE DATE.—The amendments made 

14 by this subsection shall take effect on the date of the 

15 enactment of this Act. 

16 (e) LOW INCOME HOME ENERGY ASSISTANCE TRUST

17 FUND.— 

18 (1) IN GENERAL.—Subchapter A of chapter 98 

19 of the Internal Revenue Code of 1986 (relating to 

20 trust fund code) is amended by adding at the end 

21 the following new section: 

22 ‘‘SEC. 9511. LOW-INCOME HOME ENERGY ASSISTANCE 

23 TRUST FUND. 

24 ‘‘(a) CREATION OF TRUST FUND.—There is estab25 lished in the Treasury of the United States a trust fund 
10 

•S 1981 IS

1 to be known as the ‘Low-Income Home Energy Assistance 

2 Trust Fund’, consisting of any amount appropriated or 

3 credited to the Trust Fund as provided in this section or 

4 section 9602(b). 

5 ‘‘(b) TRANSFERS TO TRUST FUND.—There are here6 by appropriated to the Low-Income Home Energy Assist7 ance Trust Fund for each fiscal year beginning after Sep8 tember 30, 2005, amounts equivalent to 7.5 percent of the 

9 taxes received in the Treasury under section 5896 (relat10 ing to windfall profit tax on crude oil) for such fiscal year. 

11 ‘‘(c) EXPENDITURES FROM TRUST FUND.—Amounts 

12 in the Low Income Home Energy Assistance Trust Fund 

13 shall be available, without further appropriation, for each 

14 fiscal year to carry out the program under the Low-In15 come Home Energy Assistance Act of 1981 for which 

16 funds are authorized under section 2602(b) of such Act 

17 for such fiscal year, but only if not less than 

18 $1,800,000,000 has been appropriated for such program 

19 for such fiscal year (determined without regard to any 

20 amount appropriated to the Low Income Home Energy 

21 Assistance Trust Fund).’’. 

22 (2) CLERICAL AMENDMENT.—The table of sec23 tions for such subchapter is amended by adding at 

24 the end the following new item: 

‘‘Sec. 9511. Low-Income Home Energy Assistance Trust Fund.’’. 
11 

•S 1981 IS

1 (f) ENERGY EFFICIENT MOTOR VEHICLES MANU2 FACTURING CREDIT.— 

3 (1) IN GENERAL.—Subpart B of part IV of 

4 subchapter A of chapter 1 of the Internal Revenue 

5 Code of 1986 (relating to foreign tax credit, etc.) is 

6 amended by adding at the end the following new sec7 tion: 

8 ‘‘SEC. 30D. ENERGY EFFICIENT MOTOR VEHICLES MANU9 FACTURING CREDIT. 

10 ‘‘(a) CREDIT ALLOWED.—In the case of an eligible 

11 taxpayer, subject to a credit allocation under subsection 

12 (e) to such eligible taxpayer, there shall be allowed as a 

13 credit against the tax imposed by this chapter for the tax14 able year to an amount equal to the sum of— 

15 ‘‘(1) the initial investment credit determined 

16 under subsection (b) for the taxable year, 

17 ‘‘(2) the fuel economy achievement credit deter18 mined under subsection (c) for such taxable year, 

19 and 

20 ‘‘(3) the eligible components R&D credit deter21 mined under subsection (d) for such taxable year. 

22 ‘‘(b) INITIAL INVESTMENT CREDIT.—For purposes 

23 of this section, the initial investment credit is equal to 20 

24 percent of the qualified investment of an eligible taxpayer 
12 

•S 1981 IS

1 with respect to energy efficient motor vehicles during the 

2 taxable year beginning in 2006. 

3 ‘‘(c) FUEL ECONOMY ACHIEVEMENT CREDIT.—For 

4 purposes of this section— 

5 ‘‘(1) IN GENERAL.—In the case of an eligible 

6 taxpayer who meets the requirements of paragraph 

7 (2) for a model year ending in a taxable year speci8 fied in the table contained in paragraph (3), the fuel 

9 economy achievement credit for such taxable year is 

10 equal to 30 percent of the sum of— 

11 ‘‘(A) at the election of the eligible tax12 payer, such qualified investment for any pre13 ceding taxable year beginning after 2005 if 

14 such taxable year has not previously been taken 

15 into account under this subsection by such tax16 payer, plus 

17 ‘‘(B) at the election of the eligible tax18 payer, the qualified investment with respect to 

19 energy efficient motor vehicles of the eligible 

20 taxpayer for the taxable year beginning in 

21 2015. 

22 ‘‘(2) DEMONSTRATED COMBINED FLEET ECON23 OMY IMPROVEMENTS.—The requirements of this 

24 paragraph are met for any model year ending in a 

25 taxable year if the eligible taxpayer can demonstrate 
13 

•S 1981 IS

1 to the satisfaction of the Secretary that the percent2 age by which the taxpayer’s overall combined fuel 

3 economy standard for the taxpayer’s vehicle fleet for 

4 such model year exceeds such standard for such tax5 payer’s 2005 model year as reported to the National 

6 Highway Traffic Safety Administration under sec7 tion 32907 of title 49, United States Code, is not 

8 less than the percentage determined for such model 

9 year under paragraph (3). 

10 ‘‘(3) PERCENTAGE INCREASE.—The percentage 

11 determined under this paragraph for any taxable 

12 year is equal to— 

‘‘Model year ending in Percentage 

taxable year increase 

2008 ................................................................................................... 5

2009 ................................................................................................... 10

2010 ................................................................................................... 15

2011 ................................................................................................... 20

2012 ................................................................................................... 27.5

2013 ................................................................................................... 35

2014 ................................................................................................... 42.5

2015 ................................................................................................... 50. 

13 ‘‘(d) ELIGIBLE COMPONENTS R&D CREDIT.—For 

14 purposes of this section, the eligible R&D credit for any 

15 taxable year is equal to 30 percent of the research and 

16 development costs paid or incurred by an eligible taxpayer 

17 for such taxable year with respect to eligible components 

18 used or to be used in the manufacture of energy efficient 

19 motor vehicles. 

20 ‘‘(e) LIMITATION.— 
14 

•S 1981 IS

1 ‘‘(1) INITIAL INVESTMENT CREDIT AND FUEL

2 ECONOMY ACHIEVEMENT CREDIT.—Subject to para3 graph (2), the aggregate amount of initial invest4 ment credits and fuel economy achievement credits 

5 allowed under subsection (a) for any taxable year be6 ginning in a calendar year after 2005 shall be allo7 cated by the Secretary among all eligible tax8 payers— 

9 ‘‘(A) based on each eligible taxpayer’s per10 centage of the total qualified investment of all 

11 such taxpayers, and 

12 ‘‘(B) such that such aggregate amount 

13 does not exceed— 

14 ‘‘(i) $1,000,000,000, plus 

15 ‘‘(ii) any amount of credit unallocated 

16 during any preceding calendar year. 

17 ‘‘(2) ELIGIBLE COMPONENTS R&D CREDIT.—Of 

18 the dollar amount available for allocation under 

19 paragraph (1) for any taxable year, 10 percent of 

20 such amount shall be allocated in the same manner 

21 by the Secretary among all eligible taxpayers with 

22 respect to the eligible components R&D credit. 

23 ‘‘(f) QUALIFIED INVESTMENT.—For purposes of this 

24 section— 
15 

•S 1981 IS

1 ‘‘(1) IN GENERAL.—The qualified investment 

2 for any taxable year is equal to the incremental costs 

3 incurred during such taxable year— 

4 ‘‘(A) to re-equip or expand any manufac5 turing facility of the eligible taxpayer to 

6 produce energy efficient motor vehicles or to 

7 produce eligible components, and 

8 ‘‘(B) for engineering integration of such 

9 vehicles and components as described in sub10 section (h). 

11 ‘‘(2) ATTRIBUTION RULES.—In the event a fa12 cility of the eligible taxpayer produces both energy 

13 efficient motor vehicles and conventional motor vehi14 cles, or eligible and non-eligible components, only the 

15 qualified investment attributable to production of en16 ergy efficient motor vehicles and the research and 

17 development costs attributable to eligible components 

18 shall be taken into account. 

19 ‘‘(g) ENERGY EFFICIENT MOTOR VEHICLES AND EL20 IGIBLE COMPONENTS.—For purposes of this section— 

21 ‘‘(1) ENERGY EFFICIENT MOTOR VEHICLE.— 

22 The term ‘energy efficient motor vehicle’ means— 

23 ‘‘(A) any new advanced lean burn tech24 nology motor vehicle (as defined in section 

25 30B(c)(3) determined without regard to sub-
16 

•S 1981 IS

1 paragraph (A)(iv)(II) thereof or the weight lim2 itation under subparagraph (A)(iv)(I) thereof), 

3 ‘‘(B) any new qualified hybrid motor vehi4 cle (as defined in section 30B(d)(3)(A) deter5 mined without regard to subparagraph 

6 (A)(ii)(II) thereof, the weight limitation under 

7 subparagraph (A)(ii)(I) thereof, and subpara8 graph (A)(iv) thereof), or 

9 ‘‘(C) any other new technology motor vehi10 cle identified by the Secretary as offering a sub11 stantial increase in fuel economy. 

12 ‘‘(2) ELIGIBLE COMPONENTS.—The term ‘eligi13 ble component’ means any component inherent to 

14 any energy efficient motor vehicle, including— 

15 ‘‘(A) with respect to any gasoline-electric 

16 new qualified hybrid motor vehicle— 

17 ‘‘(i) electric motor or generator, 

18 ‘‘(ii) power split device, 

19 ‘‘(iii) power control unit, 

20 ‘‘(iv) power controls, 

21 ‘‘(v) integrated starter generator, or 

22 ‘‘(vi) battery, 

23 ‘‘(B) with respect to any new advanced 

24 lean burn technology motor vehicle— 

25 ‘‘(i) diesel engine, 
17 

•S 1981 IS

1 ‘‘(ii) turbocharger, 

2 ‘‘(iii) fuel injection system, or 

3 ‘‘(iv) after-treatment system, such as 

4 a particle filter or NOx absorber, and 

5 ‘‘(C) with respect to any energy efficient 

6 motor vehicle, any other component approved 

7 by the Secretary. 

8 ‘‘(h) ENGINEERING INTEGRATION COSTS.—For pur9 poses of subsection (f)(1)(B), costs for engineering inte10 gration are costs incurred prior to the market introduction 

11 of energy efficient vehicles for engineering tasks related 

12 to— 

13 ‘‘(1) incorporating eligible components into the 

14 design of energy efficient motor vehicles, and 

15 ‘‘(2) designing new tooling and equipment for 

16 production facilities which produce eligible compo17 nents or energy efficient motor vehicles. 

18 ‘‘(i) ELIGIBLE TAXPAYER.—For purposes of this sec19 tion, the term ‘eligible taxpayer’ means, with respect to 

20 any taxable year, any taxpayer if more than 25 percent 

21 of the taxpayer’s gross receipts for the taxable year is de22 rived from the manufacture of motor vehicles or any com23 ponent parts of such vehicles. 
18 

•S 1981 IS

1 ‘‘(j) LIMITATION BASED ON AMOUNT OF TAX.—The 

2 credit allowed under subsection (a) for the taxable year 

3 shall not exceed the excess of— 

4 ‘‘(1) the sum of— 

5 ‘‘(A) the regular tax liability (as defined in 

6 section 26(b)) for such taxable year, plus 

7 ‘‘(B) the tax imposed by section 55 for 

8 such taxable year, over 

9 ‘‘(2) the sum of the credits allowable under sub10 part A and sections 27, 30, 30B, and 30C for the 

11 taxable year. 

12 ‘‘(k) REDUCTION IN BASIS.—For purposes of this 

13 subtitle, if a credit is allowed under this section for any 

14 expenditure with respect to any property, the increase in 

15 the basis of such property which would (but for this para16 graph) result from such expenditure shall be reduced by 

17 the amount of the credit so allowed. 

18 ‘‘(l) NO DOUBLE BENEFIT.— 

19 ‘‘(1) COORDINATION WITH OTHER DEDUCTIONS

20 AND CREDITS.—The amount of any deduction or 

21 other credit allowable under this chapter for any 

22 cost taken into account in determining the amount 

23 of the credit under subsection (a) shall be reduced 

24 by the amount of such credit attributable to such 

25 cost. 
19 

•S 1981 IS

1 ‘‘(2) RESEARCH AND DEVELOPMENT COSTS.— 

2 ‘‘(A) IN GENERAL.—Except as provided in 

3 subparagraph (B), any amount described in 

4 subsection (d) taken into account in deter5 mining the amount of the credit under sub6 section (a) for any taxable year shall not be 

7 taken into account for purposes of determining 

8 the credit under section 41 for such taxable 

9 year. 

10 ‘‘(B) COSTS TAKEN INTO ACCOUNT IN DE11 TERMINING BASE PERIOD RESEARCH EX12 PENSES.—Any amounts described in subsection 

13 (d) taken into account in determining the 

14 amount of the credit under subsection (a) for 

15 any taxable year which are qualified research 

16 expenses (within the meaning of section 41(b)) 

17 shall be taken into account in determining base 

18 period research expenses for purposes of apply19 ing section 41 to subsequent taxable years. 

20 ‘‘(m) BUSINESS CARRYOVERS ALLOWED.—If the 

21 credit allowable under subsection (a) for a taxable year 

22 exceeds the limitation under subsection (j) for such tax23 able year, such excess (to the extent of the credit allowable 

24 with respect to property subject to the allowance for depre25 ciation) shall be allowed as a credit carryback and 
20 

•S 1981 IS

1 carryforward under rules similar to the rules of section 

2 39. 

3 ‘‘(n) DEFINITIONS AND SPECIAL RULES.—For pur4 poses of this section— 

5 ‘‘(1) DEFINITIONS.—Any term which is used in 

6 this section and in chapter 329 of title 49, United 

7 States Code, shall have the meaning given such term 

8 by such chapter. 

9 ‘‘(2) SPECIAL RULES.—Rules similar to the 

10 rules of paragraphs (4) and (5) of section 179A(e) 

11 and paragraphs (1) and (2) of section 41(f) shall 

12 apply. 

13 ‘‘(o) ELECTION NOT TO TAKE CREDIT.—No credit 

14 shall be allowed under subsection (a) for any property if 

15 the taxpayer elects not to have this section apply to such 

16 property. 

17 ‘‘(p) REGULATIONS.—The Secretary shall prescribe 

18 such regulations as necessary to carry out the provisions 

19 of this section. 

20 ‘‘(q) TERMINATION.—This section shall not apply to 

21 any qualified investment made after December 31, 2015.’’. 

22 (2) CONFORMING AMENDMENTS.— 

23 (A) Section 1016(a) of such Code is 

24 amended by striking ‘‘and’’ at the end of para25 graph (36), by striking the period at the end of 
21 

•S 1981 IS

1 paragraph (37) and inserting ‘‘, and’’, and by 

2 adding at the end the following new paragraph: 

3 ‘‘(38) to the extent provided in section 

4 30D(k).’’. 

5 (B) Section 6501(m) of such Code is 

6 amended by inserting ‘‘30D(o),’’ after 

7 ‘‘30C(e)(5),’’. 

8 (C) The table of sections for subpart B of 

9 part IV of subchapter A of chapter 1 of such 

10 Code is amended by inserting after the item re11 lating to section 30C the following new item: 

‘‘Sec. 30D. Energy efficient motor vehicles manufacturing credit.’’. 

12 (3) EFFECTIVE DATE.—The amendments made 

13 by this subsection shall apply to amounts incurred in 

14 taxable years beginning after December 31, 2005. 

15 (g) TRANSFER TO HIGHWAY TRUST FUND TO FUND

16 HIGHWAY PROJECTS AND AID HIGHWAY USERS.— 

17 (1) IN GENERAL.—Section 9503(b)(1) of the 

18 Internal Revenue Code of 1986 (relating to certain 

19 taxes) is amended— 

20 (A) by inserting ‘‘(before January 1, 2016, 

21 in the case of taxes under section 5896)’’ after 

22 ‘‘2011’’, 

23 (B) by striking ‘‘and’’ at the end of sub24 paragraph (D), 
22 

•S 1981 IS

1 (C) by striking the period at the end of 

2 subparagraph (E) and inserting ‘‘, and’’, 

3 (D) by inserting after subparagraph (E) 

4 the following new subparagraph: 

5 ‘‘(F) section 5896 (relating to windfall 

6 profit tax).’’, and 

7 (E) by adding at the end the following new 

8 sentence: ‘‘For purposes of this paragraph, the 

9 aggregate amount which is appropriated to the 

10 Highway Trust Fund as determined by ref11 erence to taxes received under section 5896 

12 shall be reduced by the aggregate amount of 

13 the American consumer rebate determined 

14 under section 6430, the amount appropriated 

15 for each fiscal year to the Low-Income Home 

16 Energy Assistance Trust Fund under section 

17 9511(b), and an amount of $1,000,000,000 for 

18 each of fiscal years 2006 through 2015.’’ 

19 (2) PORTION TO MASS TRANSIT ACCOUNT.— 

20 Section 9503(e)(2) of such Code (relating to trans21 fers to Mass Transit Account) is amended by insert22 ing ‘‘and 18.5 percent of the amounts appropriated 

23 to the Highway Trust Fund under subsection (b) 

24 which are attributable to the tax under section 

25 5896’’ after ‘‘1983’’. 
23 

•S 1981 IS

1 (3) SPECIAL RULE REGARDING HIGHWAY

2 PROJECTS FUNDED BY WINDFALL PROFIT TAX REV3 ENUES.—Notwithstanding section 120 of title 23, 

4 United States Code, the Federal share of the cost of 

5 any project or activity carried out using funds de6 posited in the Highway Trust Fund under section 

7 9503(b)(1)(F) of the Internal Revenue Code of 1986 

8 shall be 100 percent to the extent such funds are 

9 available under such section. 

10 (h) EFFECTIVE DATE.—Except as otherwise pro11 vided, the amendments made by this section shall apply 

12 to crude oil removed after the date of the enactment of 

13 this Act, in taxable years ending after such date. 

Æ