I 

116TH CONGRESS 

1ST SESSION H. R. 2864 

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

on gasoline, diesel, and kerosene fuels. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 21, 2019 

Mr. BLUMENAUER 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 ‘‘Rebuild America Act 

5 of 2019’’. 

6 SEC. 2. SENSE OF CONGRESS. 

7 It is the sense of Congress that by 2029 the gas tax 

8 should be repealed and replaced with a more sustainable, 

9 stable funding source. 


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1 SEC. 3. TAX ON MOTOR FUELS. 

2 (a) GASOLINE OTHER THAN AVIATION GASOLINE.— 

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

4 1986 is amended to read as follows: 

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

6 aviation gasoline— 

7 ‘‘(I) for tax imposed before 2020, 

8 18.3 cents per gallon, 

9 ‘‘(II) for tax imposed during 

10 2020, 23.3 cents per gallon, 

11 ‘‘(III) for tax imposed during 

12 2021, 28.3 cents per gallon, 

13 ‘‘(IV) for tax imposed during 

14 2022, 33.3 cents per gallon, 

15 ‘‘(V) for tax imposed during 

16 2023, 38.3 cents per gallon, and 

17 ‘‘(VI) for tax imposed after 2023, 

18 43.3 cents per gallon,’’. 

19 (b) DIESEL FUEL OR KEROSENE.—Section 

20 4081(a)(2)(A)(iii) of such Code is amended to read as fol21 lows: 

22 ‘‘(iii) in the case of diesel fuel or ker23 osene— 

24 ‘‘(I) for tax imposed before 2020, 

25 24.3 cents per gallon, 


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1 ‘‘(II) for tax imposed during 

2 2020, 29.3 cents per gallon, 

3 ‘‘(III) for tax imposed during 

4 2021, 34.3 cents per gallon, 

5 ‘‘(IV) for tax imposed during 

6 2022, 39.3 cents per gallon, 

7 ‘‘(V) for tax imposed during 

8 2023, 44.3 cents per gallon, and 

9 ‘‘(VI) for tax imposed after 2023, 

10 49.3 cents per gallon.’’. 

11 (c) INCREASE FOR INFLATION.—Section 4081(a)(2) 

12 of such Code is amended by adding at the end the fol13 lowing: 

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

15 the case of any calendar year beginning after 

16 2024, the rates of tax contained in clauses (i) 

17 and (iii) of subparagraph (A) shall each be in18 creased by an amount equal to— 

19 ‘‘(i) such rate, multiplied by 

20 ‘‘(ii) the cost of living adjustment de21 termined under section 1(f)(3) for the cal22 endar year, determined by substituting 

23 ‘calendar year 2023’ for ‘calendar year 

24 2016’ in subparagraph (A)(ii) thereof. 


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1 Any increase under the preceding sentence shall 

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

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

4 4081(a)(2)(D) of such Code is amended by striking ‘‘ ‘19.7 

5 cents’ for ‘24.3 cents’ ’’ and inserting ‘‘a rate equal to 71 

6 percent of the rate in effect under such subparagraph 

7 (without regard to this subparagraph)’’. 

8 (e) TERMINATION.—Section 4081(d)(1) of such Code 

9 is amended by striking ‘‘September 30, 2022’’ and insert10 ing ‘‘December 31, 2029’’. 

11 (f) ALLOCATION IN ACCOUNTS IN HIGHWAY TRUST

12 FUND.— 

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

14 Internal Revenue Code of 1986 is amended to read 

15 as follows: 

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

17 sentence— 

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

19 to taxes imposed during calendar years be20 fore 2020, 

21 ‘‘(ii) 3.86 cents per gallon with re22 spect to taxes imposed during calendar 

23 year 2020, 


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1 ‘‘(iii) 4.86 cents per gallon with re2 spect to taxes imposed during calendar 

3 year 2021, 

4 ‘‘(iv) 5.86 cents per gallon with re5 spect to taxes imposed during calendar 

6 year 2022, 

7 ‘‘(v) 6.86 cents per gallon with respect 

8 to taxes imposed during calendar year 

9 2023, and 

10 ‘‘(vi) 7.86 center per gallon with re11 spect to taxes imposed after calendar year 

12 2023,’’. 

13 (2) ADJUSTMENT FOR INFLATION.—Section 

14 9503(e) of the Internal Revenue Code of 1986 is 

15 amended by adding at the end the following new 

16 paragraph: 

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

18 case of any calendar year beginning after 2024, the 

19 rate of tax contained in paragraph (2)(A) shall be 

20 increased by an amount equal to— 

21 ‘‘(A) such rate, multiplied by 

22 ‘‘(B) the cost of living adjustment deter23 mined under section 1(f)(3) for the calendar 

24 year, determined by substituting ‘calendar year 


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1 2023’ for ‘calendar year 2016’ in subparagraph 

2 (A)(ii) thereof. 

3 Any increase under the preceding sentence shall be 

4 rounded to the nearest 0.1 cents.’’. 

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

6 this section shall apply to fuel removed, entered, or sold 

7 after December 31, 2018. 

8 SEC. 4. FLOOR STOCKS TAX. 

9 (a) IMPOSITION OF TAX.—In the case of taxed fuel 

10 to which a qualified person holds title on January 1, 2020, 

11 there is hereby imposed on such fuel a tax at a rate of 

12 5 cents per gallon. 

13 (b) TAXED FUEL DEFINED.—The term ‘‘taxed fuel’’ 

14 means taxable fuel (as such term is defined in section 

15 4083(a)(1)), other than aviation fuel, on which tax was 

16 imposed (and not credited or refunded) under section 

17 4081 of the Internal Revenue Code of 1986 before Janu18 ary 1, 2020. 

19 (c) QUALIFIED PERSON DEFINED.—For purposes of 

20 this section— 

21 (1) IN GENERAL.—The term ‘‘qualified person’’ 

22 means a person who, on January 1, 2020, holds title 

23 to not less than 2,000 gallons of taxed fuel (other 

24 than fuel held in the tank of a motor vehicle or mo25 torboat) held for sale. 


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1 (2) AGGREGATION RULE.—For purposes of the 

2 2,000 gallon requirement, all members of the same 

3 controlled group of corporations (within the meaning 

4 of section 267(f)) and all persons under common 

5 control (within the meaning of section 52(b) but de6 termined by treating an interest of more than 50 

7 percent as a controlling interest) shall be treated as 

8 1 person. 

9 (d) OTHER PROVISIONS OF LAW.—All provisions of 

10 law, including penalties, applicable with respect to the 

11 taxes imposed by section 4081 of the Internal Revenue 

12 Code of 1986 shall, insofar as applicable and not incon13 sistent with the provisions of this section, apply with re14 spect to the taxes imposed by subsection (a) to the same 

15 extent as if such taxes were imposed by such section 4081. 

Æ 


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