I 

115TH CONGRESS 

1ST SESSION H. R. 1458 

To amend the Internal Revenue Code of 1986 to increase the excise tax 

on gasoline, diesel, and kerosene fuels. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 9, 2017 

Mr. BLUMENAUER (for himself, Mr. POCAN, Mrs. NAPOLITANO, Mr. ELLISON, 

Mr. HUFFMAN, Mr. CARTWRIGHT, Mr. LARSEN of Washington, Mr. 

CAPUANO, Ms. CLARK of Massachusetts, Mr. DEUTCH, Mr. BEYER, Mr. 

MOULTON, Mr. SIRES, Ms. SCHAKOWSKY, Mr. LOWENTHAL, Mr. 

BRENDAN F. BOYLE of Pennsylvania, Mr. HASTINGS, Mr. COHEN, Mr. 

GRIJALVA, Mr. WELCH, and Ms. MCCOLLUM) 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 increase 

the excise tax on gasoline, diesel, and kerosene fuels. 

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 ‘‘Raise And Index to 

5 Sustainably and Efficiently Invest in Transportation Act 

6 of 2017’’ or the ‘‘RAISE IT Act’’. 

7 SEC. 2. FINDINGS; SENSE OF CONGRESS. 

8 (a) FINDINGS.—The Congress finds the following: 


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1 (1) Since the passage of SAFETEA–LU, Con2 gress has transferred over $140 billion from the 

3 General Fund to the Highway Trust Fund, in order 

4 to maintain solvency. 

5 (2) The Congressional Budget Office estimates 

6 after the end of Fiscal year 2021, annual General 

7 Fund transfers of over $20 billion will be necessary 

8 in order to maintain current Highway Trust Fund 

9 spending levels. 

10 (3) The American Society for Civil Engineers 

11 estimates that in order to meet our economic and 

12 transportation needs, the United States should in13 vest an additional $1.1 trillion in our surface trans14 portation system by 2025. 

15 (4) The National Commission on Fiscal Reform 

16 and Responsibility report, often referred to as the 

17 ‘‘Simpson-Bowles’’ plan, includes a recommendation 

18 to raise the gas tax by fifteen cents. 

19 (5) The National Surface Transportation Infra20 structure Financing Commission recommended, in 

21 their 2009 report, that Congress take action to pre22 vent the Highway Trust Fund from becoming insol23 vent, and to avoid any reductions in infrastructure 

24 spending. The Commission also noted that a Federal 


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1 funding system based on a vehicle miles traveled sys2 tem, is the consensus choice for the future. 

3 (6) Nine different states raised gas taxes to 

4 generate transportation revenue in 2015 and 2016. 

5 (b) SENSE OF CONGRESS REGARDING REPLACEMENT

6 OF GAS TAX.—It is the sense of Congress that by 2027 

7 the gas tax should be repealed and replaced with a more 

8 sustainable, stable funding source. 

9 SEC. 3. TAX ON MOTOR FUELS. 

10 (a) GASOLINE OTHER THAN AVIATION GASOLINE.— 

11 Section 4081(a)(2)(A)(i) of the Internal Revenue Code of 

12 1986 is amended to read as follows: 

13 ‘‘(i) in the case of gasoline other than 

14 aviation gasoline— 

15 ‘‘(I) for tax imposed before 2018, 

16 18.3 cents per gallon, 

17 ‘‘(II) for tax imposed during 

18 2018, 26.3 cents per gallon, 

19 ‘‘(III) for tax imposed during 

20 2019, 30.3 cents per gallon, and 

21 ‘‘(IV) for tax imposed after 2019 

22 and before 2030, 33.3 cents per gal23 lon,’’. 


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1 (b) DIESEL FUEL OR KEROSENE.—Section 

2 4081(a)(2)(A)(iii) of the Internal Revenue Code of 1986 

3 is amended to read as follows: 

4 ‘‘(iii) in the case of diesel fuel or ker5 osene— 

6 ‘‘(I) for tax imposed before 2018, 

7 24.3 cents per gallon, 

8 ‘‘(II) for tax imposed during 

9 2018, 32.3 cents per gallon, 

10 ‘‘(III) for tax imposed during 

11 2019, 36.3 cents per gallon, and 

12 ‘‘(IV) for tax imposed after 2019 

13 and before 2029, 39.3 cents per gal14 lon,’’. 

15 (c) INCREASE FOR INFLATION.—Paragraph (2) of 

16 section 4081(a) of such Code is amended by adding at 

17 the end the following: 

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

19 the case of any calendar year beginning after 

20 2019, the rates of tax contained in clauses 

21 (i)(IV) and (iii)(IV) of subparagraph (A) shall 

22 each be increased by an amount equal to— 

23 ‘‘(i) such rate, multiplied by 

24 ‘‘(ii) the cost of living adjustment de25 termined under section 1(f)(3) for the calVerDate Sep 11 2014 06:22 Mar 16, 2017 Jkt 069200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1458.IH H1458

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1 endar year, determined by substituting 

2 ‘calendar year 2018’ for ‘calendar year 

3 1992’ in subparagraph (B) thereof. 

4 Any increase under the preceding sentence shall 

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

6 (d) DIESEL-WATER FUEL EMULSION.—Section 

7 4081(a)(2)(D) of the Internal Revenue Code of 1986 is 

8 amended by striking ‘‘19.7 cents’’ for ‘‘24.3 cents’’ and 

9 inserting ‘‘a rate equal to 71 percent of the rate in effect 

10 under subparagraph (A) (without regard to this subpara11 graph)’’. 

12 (e) TERMINATION.—Section 4081(d)(1) of the Inter13 nal Revenue Code of 1986 is amended by striking ‘‘Sep14 tember 30, 2022’’ and inserting ‘‘December 31, 2028’’. 

15 (f) ALLOCATION IN ACCOUNTS IN HIGHWAY TRUST

16 FUND.— 

17 (1) IN GENERAL.—Section 9503(e)(2)(A) of the 

18 Internal Revenue Code of 1986 is amended to read 

19 as follows: 

20 ‘‘(A) except as otherwise provided in this 

21 sentence— 

22 ‘‘(i) 2.86 cents per gallon with respect 

23 to taxes imposed during calendar year 

24 2017, 


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1 ‘‘(ii) 3.86 cents per gallon with re2 spect to taxes imposed during calendar 

3 year 2018, 

4 ‘‘(iii) 4.86 cents per gallon with re5 spect to taxes imposed during calendar 

6 year 2019, and 

7 ‘‘(iv) 5.86 cents per gallon with re8 spect to taxes imposed after calendar year 

9 2019,’’. 

10 (2) ADJUSTMENT FOR INFLATION.—Section 

11 9503(e) of the Internal Revenue Code of 1986 is 

12 amended by adding at the end the following new 

13 paragraph: 

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

15 case of any calendar year beginning after 2019, the 

16 rate of tax contained in paragraph (2)(A)(iv) shall 

17 be increased by an amount equal to— 

18 ‘‘(A) such rate, multiplied by 

19 ‘‘(B) the cost of living adjustment deter20 mined under section 1(f)(3) for the calendar 

21 year, determined by substituting ‘calendar year 

22 2018’ for ‘calendar year 1992’ in subparagraph 

23 (B) thereof. 

24 Any increase under the preceding sentence shall be 

25 rounded to the nearest 0.1 cents.’’. 


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1 (g) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to fuels or liquids removed, en3 tered, or sold after December 31, 2017. 

4 SEC. 4. FLOOR STOCKS TAX. 

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

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

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

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

9 liquid under section 4041 or 4081 of the Internal Revenue 

10 Code of 1986 had the taxable event occurred on the floor 

11 stocks tax date over the tax paid under any such section 

12 on such liquid. 

13 (b) LIABILITY FOR TAX AND METHOD OF PAY14 MENT.— 

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

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

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

18 such tax. 

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

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

21 the Secretary shall prescribe. 

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

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

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

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


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1 (1) HELD BY A PERSON.—A liquid shall be con2 sidered as held by a person if title thereto has 

3 passed to such person (whether or not delivery to 

4 the person has been made). 

5 (2) TAXABLE LIQUID.—The term ‘‘taxable liq6 uid’’ means diesel fuel and kerosene (other than 

7 aviation-grade kerosene). 

8 (3) FLOOR STOCKS DATE.—The term ‘‘floor 

9 stocks tax date’’ means any January 1 of any cal10 endar year beginning after the date of the enactment 

11 of this Act on which a rate of tax under section 

12 4041 or 4081 of such Code increases pursuant to an 

13 amendment made by section 2. 

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

15 the Secretary of the Treasury. 

16 (d) EXCEPTION FOR EXEMPT USES.—The tax im17 posed by subsection (a) shall not apply to taxable liquid 

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

19 a credit or refund of the tax imposed by a section of such 

20 Code is allowable for such use. 

21 (e) EXCEPTION FOR FUEL HELD IN VEHICLE

22 TANK.—No tax shall be imposed by subsection (a) on tax23 able liquid held in the tank of a motor vehicle or motor24 boat. 

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


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

2 subsection (A) on any liquid held on the floor stocks 

3 tax date by any person if the aggregate amount of 

4 liquid held by such person on such date does not ex5 ceed 2,000 gallons. The preceding sentence shall 

6 apply only if such person submits to the Secretary 

7 (at the time and in the manner required by the Sec8 retary) such information as the Secretary shall re9 quire for purposes of this paragraph. 

10 (2) EXEMPT FUEL.—For purposes of para11 graph (1), there shall not be taken into account fuel 

12 held by any person which is exempt from the tax im13 posed by subsection (a) by reason of subsection (d) 

14 or (e). 

15 (3) CONTROLLED GROUPS.—For purposes of 

16 this section— 

17 (A) CORPORATIONS.— 

18 (i) IN GENERAL.—All persons treated 

19 as a controlled group shall be treated as 1 

20 person. 

21 (ii) CONTROLLED GROUP.—The term 

22 ‘‘controlled group’’ has the meaning given 

23 to such term by subsection (a) of section 

24 1563 of such Code; except that for such 

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1 cent’’ shall be substituted for the phrase 

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

3 in such subsection. 

4 (B) NONINCORPORATED PERSONS UNDER

5 COMMON CONTROL.—Under regulations pre6 scribed by the Secretary, principles similar to 

7 the principles of clause (i) shall apply to a 

8 group of persons under common control where 

9 one or more of such persons is not a corpora10 tion. 

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

12 law, including penalties, applicable with respect to the 

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

14 insofar as applicable and not inconsistent with the provi15 sions of this section, apply with respect to the floor stock 

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

17 such taxes were imposed by such chapter. 

Æ 


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