I 

114TH CONGRESS 

1ST SESSION H. R. 2971 

To amend the Internal Revenue Code of 1986 to bring certainty to the 

funding of the Highway Trust Fund, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 8, 2015 

Mr. RICE of South Carolina introduced the following bill; which was referred 

to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to bring certainty to the funding of the Highway Trust Fund, and 

for other purposes. 

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 ‘‘Highway Trust Fund 

5 Certainty Act’’. 

6 SEC. 2. INCREASE IN FUELS TAXES. 

7 (a) MOTOR FUELS.— 

8 (1) REPEAL OF TERMINATION.—Section 

9 4081(d) of the Internal Revenue Code of 1986 is 

10 amended by striking paragraph (1) and redesigVerDate Sep 11 2014 04:49 Jul 09, 2015 Jkt 049200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2971.IH H2971

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1 nating paragraphs (2) and (3) as paragraphs (1) 

2 and (2), respectively. 

3 (2) INFLATION ADJUSTMENT.—Section 

4 4081(a)(2) of such Code is amended— 

5 (A) in subparagraph (A)(i) by striking 

6 ‘‘18.3 cents per gallon’’ and inserting ‘‘28.4 

7 cents per gallon’’, 

8 (B) in subparagraph (A)(iii) by striking 

9 ‘‘24.3 cents per gallon’’ and inserting ‘‘34.4 

10 cents per gallon’’, 

11 (C) in subparagraph (D) by striking ‘‘sub12 stituting ‘19.7 cents’ for ‘24.3 cents’ ’’ and in13 serting ‘‘substituting ‘27.9 cents’ for ‘34.4 

14 cents’ ’’, and 

15 (D) by adding at the end the following: 

16 ‘‘(E) ADJUSTMENT FOR INFLATION.—In 

17 the case of a calendar year beginning after De18 cember 31, 2015, the rates of tax in subpara19 graph (A) (i) and (iii) and subparagraph (D) 

20 shall each be increased by an amount equal 

21 to— 

22 ‘‘(i) such rate, multiplied by 

23 ‘‘(ii) the cost of living adjustment de24 termined under section 1(f)(3) for the cal25 endar year, determined by substituting 


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1 ‘calendar year 2014’ for ‘calendar year 

2 1992’ in subparagraph (B) thereof. 

3 Any increase under the preceding sentence shall 

4 be rounded to the nearest 0.1 cents.’’. 

5 (b) SPECIAL FUELS.— 

6 (1) INCREASE AND EXTENSION.—Section 4041 

7 of such Code is amended— 

8 (A) in subsection (a)(1)(C)(iii)(I) by strik9 ing ‘‘7.3 cents per gallon (4.3 cents per gallon 

10 after September 30, 2016)’’ and inserting ‘‘17.4 

11 cents per gallon’’, 

12 (B) in subsection (a)(2)(B)(ii) by striking 

13 ‘‘24.3 cents per gallon’’ and inserting ‘‘34.4 

14 cents per gallon’’, and 

15 (C) in subsection (a)(3)(A) by striking 

16 ‘‘18.3 cents’’ and inserting ‘‘28.4 cents’’. 

17 (2) ADJUSTMENT FOR INFLATION.—Section 

18 4041(a) of such Code is amended by adding at the 

19 end the following: 

20 ‘‘(4) ADJUSTMENT FOR INFLATION.—In the 

21 case of a calendar year beginning after December 

22 31, 2015, the rates of tax in paragraphs 

23 (1)(C)(iii)(I), (2)(B)(ii), and (3)(A) shall each be in24 creased by an amount equal to— 

25 ‘‘(A) such rate, multiplied by 


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1 ‘‘(B) the cost of living adjustment deter2 mined under section 1(f)(3) for the calendar 

3 year, determined by substituting ‘calendar year 

4 2014’ for ‘calendar year 1992’ in subparagraph 

5 (B) thereof. 

6 Any increase under the preceding sentence shall be 

7 rounded to the nearest 0.1 cents.’’. 

8 (3) CERTAIN ALCOHOL FUELS.— 

9 (A) PERMANENT EXTENSION.—Section 

10 4041(m)(1) of such Code is amended— 

11 (i) in subparagraph (A) by striking ‘‘, 

12 and before October 1, 2016’’, 

13 (ii) in subparagraph (A)(i) by striking 

14 ‘‘9.15 cents per gallon’’ and inserting 

15 ‘‘19.25 cents per gallon’’, 

16 (iii) in subparagraph (A)(ii) by strik17 ing ‘‘11.3 cents per gallon’’ and inserting 

18 ‘‘21.4 cents per gallon’’, 

19 (iv) by striking subparagraph (B), 

20 and 

21 (v) by redesignating clauses (i) and 

22 (ii) of subparagraph (A) (as amended by 

23 clauses (ii) and (iii)) as subparagraphs (A) 

24 and (B), respectively, and moving such 


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1 subparagraphs (as so redesignated) 2 ems 

2 to the left. 

3 (B) ADJUSTMENT FOR INFLATION.—Sec4 tion 4041(m) of such Code is amended by add5 ing at the end the following: 

6 ‘‘(3) ADJUSTMENT FOR INFLATION.—In the 

7 case of a calendar year beginning after December 

8 31, 2015, the rates of tax in paragraph (1) (A) and 

9 (B) shall each be increased by an amount equal to— 

10 ‘‘(A) such rate, multiplied by 

11 ‘‘(B) the cost of living adjustment deter12 mined under section 1(f)(3) for the calendar 

13 year, determined by substituting ‘calendar year 

14 2014’ for ‘calendar year 1992’ in subparagraph 

15 (B) thereof. 

16 Any increase under the preceding sentence shall be 

17 rounded to the nearest 0.1 cents.’’. 

18 (4) FUEL USED IN CERTAIN BUSES.— 

19 (A) PERMANENT EXTENSION.—Section 

20 6427(b)(2)(A) of such Code is amended by 

21 striking ‘‘7.4 cents’’ and inserting ‘‘17.5 cents’’. 

22 (B) ADJUSTMENT FOR INFLATION.—Sec23 tion 6427(b) of such Code is amended by add24 ing at the end the following: 


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1 ‘‘(5) ADJUSTMENT FOR INFLATION.—In the 

2 case of calendar years beginning January 1, 2016— 

3 ‘‘(A) the rate of tax in paragraph (2)(A) 

4 shall be increased by 10.1 cents, and 

5 ‘‘(B) such rate (as increased by subpara6 graph (A)) shall be increased by an amount 

7 equal to such rate (as so increased) multiplied 

8 by the cost of living adjustment determined 

9 under section 1(f)(3) for the calendar year, de10 termined by substituting ‘calendar year 2014’ 

11 for ‘calendar year 1992’ in subparagraph (B) 

12 thereof, and rounded to the nearest 0.1 cents.’’. 

13 (c) EFFECTIVE DATE.—The amendments made by 

14 this section shall apply to years beginning after December 

15 31, 2015. 

16 (d) FLOOR STOCKS TAX.— 

17 (1) IMPOSITION OF TAX.—In the case of any 

18 highway motor fuel which is held on January 1, 

19 2016, by any person, there is hereby imposed a floor 

20 stocks tax equal to the excess of— 

21 (A) the tax which would be imposed on 

22 such fuel had the amendments made by this 

23 section applied to highway motor fuels for peri24 ods before January 1, 2016, over 


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1 (B) the tax (if any) previously paid (and 

2 not credited or refunded) on such fuel. 

3 (2) LIABILITY FOR TAX AND METHOD OF PAY4 MENT.— 

5 (A) LIABILITY FOR TAX.—The person 

6 holding the highway motor fuel on January 1, 

7 2016, to which the tax imposed by paragraph 

8 (1) applies shall be liable for such tax. 

9 (B) METHOD OF PAYMENT.—The tax im10 posed by paragraph (1) shall be paid at such 

11 time and in such manner as the Secretary of 

12 the Treasury (or the Secretary’s delegate) shall 

13 prescribe. 

14 (3) DEFINITIONS.—For purposes of this sub15 section— 

16 (A) HIGHWAY MOTOR FUEL.—The term 

17 ‘‘highway motor fuel’’ means any fuel the tax 

18 rate of which is increased by an amendment 

19 made by this section. 

20 (B) HELD BY A PERSON.—A highway 

21 motor fuel shall be considered as held by a per22 son if title thereto has passed to such person 

23 (whether or not delivery to the person has been 

24 made). 


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1 (C) SECRETARY.—The term ‘‘Secretary’’ 

2 means the Secretary of the Treasury or the 

3 Secretary’s delegate. 

4 (4) EXCEPTION FOR EXEMPT USES.—The tax 

5 imposed by paragraph (1) shall not apply to any 

6 highway motor fuel held by any person exclusively 

7 for any use to the extent a credit or refund of the 

8 tax is allowable for such use. 

9 (5) EXCEPTION FOR CERTAIN AMOUNTS OF

10 FUEL.— 

11 (A) IN GENERAL.—No tax shall be im12 posed by paragraph (1) on any highway motor 

13 fuel held on January 1, 2016, by any person if 

14 the aggregate amount of such highway motor 

15 fuel held by such person on such date does not 

16 exceed 2,000 gallons. The preceding sentence 

17 shall apply only if such person submits to the 

18 Secretary (at the time and in the manner re19 quired by the Secretary) such information as 

20 the Secretary shall require for purposes of this 

21 subparagraph. 

22 (B) EXEMPT FUEL.—For purposes of sub23 paragraph (A), there shall not be taken into ac24 count any highway motor fuel held by any perVerDate Sep 11 2014 04:49 Jul 09, 2015 Jkt 049200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H2971.IH H2971

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1 son which is exempt from the tax imposed by 

2 paragraph (1) by reason of paragraph (4). 

3 (C) CONTROLLED GROUPS.—For purposes 

4 of this subsection— 

5 (i) CORPORATIONS.— 

6 (I) IN GENERAL.—All persons 

7 treated as a controlled group shall be 

8 treated as 1 person. 

9 (II) CONTROLLED GROUP.—The 

10 term ‘‘controlled group’’ has the 

11 meaning given to such term by sub12 section (a) of section 1563 of such 

13 Code; except that for such purposes 

14 the phrase ‘‘more than 50 percent’’ 

15 shall be substituted for the phrase ‘‘at 

16 least 80 percent’’ each place it ap17 pears in such subsection. 

18 (ii) NONINCORPORATED PERSONS

19 UNDER COMMON CONTROL.—Under regula20 tions prescribed by the Secretary, prin21 ciples similar to the principles of subpara22 graph (A) shall apply to a group of per23 sons under common control if 1 or more of 

24 such persons is not a corporation. 


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1 (6) OTHER LAWS APPLICABLE.—All provisions 

2 of law, including penalties, applicable with respect to 

3 the taxes imposed by sections 4041 and 4081 of 

4 such Code shall, insofar as applicable and not incon5 sistent with the provisions of this subsection, apply 

6 with respect to the floor stock taxes imposed by 

7 paragraph (1) to the same extent as if such taxes 

8 were imposed by such sections. 

9 SEC. 3. WORKING CITIZENS TAX RELIEF. 

10 (a) IN GENERAL.—Subpart C of part IV of sub11 chapter A of chapter 1 of the Internal Revenue Code of 

12 1986 is amended by inserting after section 36 the fol13 lowing new section: 

14 ‘‘SEC. 36A. WORKING CITIZENS CREDIT. 

15 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli16 gible individual, there shall be allowed as a credit against 

17 the tax imposed by this subtitle for the calendar years be18 ginning after December 31, 2015, an amount equal to the 

19 lesser of— 

20 ‘‘(1) 3.1 percent of earned income of the tax21 payer, or 

22 ‘‘(2) $133 ($266 in the case of a joint return). 

23 ‘‘(b) LIMITATION BASED ON MODIFIED ADJUSTED

24 GROSS INCOME.— 


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1 ‘‘(1) IN GENERAL.—The amount allowable as a 

2 credit under subsection (a) (determined without re3 gard to this paragraph and subsection (c)) for the 

4 taxable year shall be reduced (but not below zero) by 

5 one percent of so much of the taxpayer’s modified 

6 adjusted gross income as exceeds $74,950 ($149,900 

7 in the case of a joint return). 

8 ‘‘(2) MODIFIED ADJUSTED GROSS INCOME.— 

9 For purposes of subparagraph (A), the term ‘modi10 fied adjusted gross income’ means the adjusted 

11 gross income of the taxpayer for the taxable year in12 creased by any amount excluded from gross income 

13 under section 911, 931, or 933. 

14 ‘‘(c) DEFINITIONS AND SPECIAL RULES.—For pur15 poses of this section— 

16 ‘‘(1) ELIGIBLE INDIVIDUAL.— 

17 ‘‘(A) IN GENERAL.—The term ‘eligible in18 dividual’ means any individual other than— 

19 ‘‘(i) any nonresident alien individual, 

20 ‘‘(ii) any individual with respect to 

21 whom a deduction under section 151 is al22 lowable to another taxpayer for a taxable 

23 year beginning in the calendar year in 

24 which the individual’s taxable year begins, 

25 and 


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1 ‘‘(iii) an estate or trust. 

2 ‘‘(B) IDENTIFICATION NUMBER REQUIRE3 MENT.—Such term shall not include any indi4 vidual who does not include on the return of tax 

5 for the taxable year— 

6 ‘‘(i) such individual’s social security 

7 account number, and 

8 ‘‘(ii) in the case of a joint return, the 

9 social security account number of one of 

10 the taxpayers on such return. 

11 For purposes of the preceding sentence, the so12 cial security account number shall not include a 

13 TIN issued by the Internal Revenue Service. 

14 ‘‘(2) EARNED INCOME.—The term ‘earned in15 come’ has the meaning given such term by section 

16 32(c)(2), except that such term shall not include net 

17 earnings from self-employment which are not taken 

18 into account in computing taxable income. For pur19 poses of the preceding sentence, any amount ex20 cluded from gross income by reason of section 112 

21 shall be treated as earned income which is taken 

22 into account in computing taxable income for the 

23 taxable year.’’. 

24 (b) REFUNDS DISREGARDED IN THE ADMINISTRA25 TION OF FEDERAL PROGRAMS AND FEDERALLY ASVerDate Sep 11 2014 04:49 Jul 09, 2015 Jkt 049200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H2971.IH H2971

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1 SISTED PROGRAMS.—Any credit or refund allowed or 

2 made to any individual by reason of section 36A of the 

3 Internal Revenue Code of 1986 (as added by this section) 

4 or by reason of subsection (b) of this section shall not be 

5 taken into account as income and shall not be taken into 

6 account as resources for the month of receipt and the fol7 lowing 2 months, for purposes of determining the eligi8 bility of such individual or any other individual for benefits 

9 or assistance, or the amount or extent of benefits or assist10 ance, under any Federal program or under any State or 

11 local program financed in whole or in part with Federal 

12 funds. 

13 (c) AUTHORITY RELATING TO CLERICAL ERRORS.— 

14 Section 6213(g)(2) of such Code is amended by striking 

15 ‘‘and’’ at the end of subparagraph (M), by striking the 

16 period at the end of subparagraph (N) and inserting ‘‘, 

17 and’’, and by adding at the end the following new subpara18 graph: 

19 ‘‘(O) an omission of the correct social secu20 rity account number required under section 

21 36A(c)(1)(B).’’. 

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

23 this section shall apply to taxable years beginning after 

24 December 31, 2015. 


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1 SEC. 4. REPAYABLE ADVANCES TO HIGHWAY TRUST FUND. 

2 (a) REPAYABLE ADVANCES.—Section 9503(f) of the 

3 Internal Revenue Code of 1986 is amended by redesig4 nating paragraph (7) as paragraph (8) and by inserting 

5 after paragraph (6) the following new paragraph: 

6 ‘‘(7) 2015 SHORTFALL ADVANCE.—Out of 

7 money in the Treasury not otherwise appropriated, 

8 there is hereby appropriated— 

9 ‘‘(A) $8,000,000,000 to the Highway Ac10 count (as defined in subsection (e)(5)(B)) in 

11 the Highway Trust Fund; and 

12 ‘‘(B) $3,000,000,000 to the Mass Transit 

13 Account in the Highway Trust Fund.’’. 

14 (b) REPAYMENT OF ADVANCES.—Section 9503(c) of 

15 such Code is amended by adding at the end the following: 

16 ‘‘(6) TRANSFERS FROM HIGHWAY TRUST FUND

17 FOR CERTAIN REPAYMENTS OF CERTAIN AD18 VANCES.— 

19 ‘‘(A) IN GENERAL.—The Secretary shall 

20 pay from time to time from the Highway Trust 

21 Fund into the general fund of the Treasury 

22 amounts equivalent to amounts transferred to 

23 the Highway Trust Fund that are attributable 

24 to the operation of sections 4041(a)(4), 

25 4041(m)(3), and 4081(a)(2)(E). 


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1 ‘‘(B) LIMITATION.—No amount shall be 

2 transferred under this paragraph after the ag3 gregate amount transferred under subpara4 graph (A) equals $11,000,000,000. 

5 ‘‘(C) TRANSFERS BASED ON ESTIMATES.— 

6 Transfers under subparagraph (A) shall be 

7 made on the basis of estimates by the Sec8 retary, and proper adjustments shall be made 

9 in amounts subsequently transferred to the ex10 tent prior estimates were in excess or less than 

11 the amounts required to be transferred. 

12 ‘‘(D) TRANSFERS MADE PROPORTION13 ALLY.—Transfers under subparagraph (A) shall 

14 be borne by the Highway Account and the Mass 

15 Transit Account in proportion to the respective 

16 revenues transferred under subsection (f)(7) to 

17 the Highway Account and the Mass Transit Ac18 count.’’. 

19 (c) EFFECTIVE DATE.—The amendments made by 

20 this section shall take effect on August 1, 2015. 

Æ 


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