I 

113TH CONGRESS 

2D SESSION H. R. 4848 

To amend the Internal Revenue Code of 1986 to repeal the gas tax and 

rebuild our roads and bridges. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 11, 2014 

Mr. DEFAZIO 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 repeal 

the gas tax and rebuild our roads and bridges. 

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 ‘‘Repeal and Rebuild 

5 Act of 2014’’. 

6 SEC. 2. REPEAL OF EXCISE TAX ON GASOLINE. 

7 (a) IN GENERAL.—Section 4081(a)(2)(A)(i) of the 

8 Internal Revenue Code of 1986 is amended by striking 

9 ‘‘18.3 cents per gallon’’ and inserting ‘‘0 cents per gallon’’. 

10 (b) CONFORMING AMENDMENTS.— 


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1 (1) Section 4081(d)(1) of the Internal Revenue 

2 Code of 1986 is amended by striking ‘‘clauses (i) 

3 and’’ and inserting ‘‘clause’’. 

4 (2) Section 4041(a)(2)(B)(i) of the Internal 

5 Revenue Code of 1986 is amended by striking ‘‘the 

6 rate of tax specified in section 4081(a)(2)(A)(i) 

7 which is in effect at the time of such sale or use,’’ 

8 and inserting ‘‘18.3 cents per gallon’’. 

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

10 this section shall apply to fuel sold or used after December 

11 31, 2014. 

12 SEC. 3. REPEAL OF EXCISE TAX ON TIRES. 

13 (a) IN GENERAL.—Subchapter A of chapter 32 of 

14 subtitle D of the Internal Revenue Code of 1986 is amend15 ed by striking part II (relating to tires). 

16 (b) CONFORMING AMENDMENTS.— 

17 (1) The table of parts for subchapter A of chap18 ter 32 of subtitle D of the Internal Revenue Code 

19 of 1986 is amended by striking the item relating to 

20 part II. 

21 (2) Section 9503(b)(1) of the Internal Revenue 

22 Code of 1986 is amended by striking subparagraph 

23 (C) and redesignating subparagraphs (D) and (E) as 

24 subparagraphs (C) and (D), respectively. 


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1 (3) Section 6412(a)(1) of the Internal Revenue 

2 Code of 1986 is amended— 

3 (A) in the text by striking ‘‘4071 or’’, and 

4 (B) in the heading by striking ‘‘TIRES AND

5 TAXABLE’’ and inserting ‘‘TAXABLE’’. 

6 (4) Section 6416 of the Internal Revenue Code 

7 of 1986 is amended by striking subparagraph (C) of 

8 subsection (b)(1). 

9 (5) Section 4218 of the Internal Revenue Code 

10 of 1986 is amended— 

11 (A) in subsection (a) by striking ‘‘(other 

12 than a tire taxable under section 4071)’’, and 

13 (B) by striking subsection (b) and redesig14 nating subsection (c) as subsection (b). 

15 (6) Section 4221 of the Internal Revenue Code 

16 of 1986 is amended— 

17 (A) in subsection (a) by striking ‘‘or 

18 4071,’’, and 

19 (B) in subsection (e) by striking paragraph 

20 (2). 

21 (7) Section 4051 of the Internal Revenue Code 

22 of 1986 is amended by striking subsection (e). 

23 (c) EFFECTIVE DATE.— 


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1 (1) Except as provided by paragraph (2), the 

2 amendments made by this section shall apply to 

3 sales after December 31, 2014. 

4 (2) The amendments made by paragraphs (3), 

5 (4), (5), and (6) of subsection (b) shall apply to 

6 taxes imposed after December 31, 2014. 

7 (d) SPECIAL RULE FOR FLOOR STOCKS REFUNDS

8 RELATING TO TIRES AND TAXABLE FUELS.—In the case 

9 of an article subject to the tax imposed by section 4071 

10 or 4081 before January 1, 2015, which has been sold, 

11 held, and not used and is intended for sale in the manner 

12 specified by section 6412(a)(1) of the Internal Revenue 

13 Code of 1986, such section shall be applied by sub14 stituting— 

15 (1) ‘‘January 1, 2015’’ for ‘‘October 1, 2016’’, 

16 (2) ‘‘July 1, 2015’’ for ‘‘January 1, 2017’’, and 

17 (3) ‘‘October 1, 2015’’ for ‘‘March 31, 2017’’. 

18 SEC. 4. DOUBLE INDEXATION OF DIESEL FUELS TAX. 

19 (a) IN GENERAL.—Paragraph (2) of section 4081(a) 

20 of the Internal Revenue Code of 1986 is amended by add21 ing at the end the following new subparagraph: 

22 ‘‘(E) INDEX FOR HIGHWAY CONSTRUCTION

23 COST INFLATION AND FUEL EFFICIENCY.— 

24 ‘‘(i) IN GENERAL.—In the case of any 

25 calendar year after 2014, the 24.3 cents 


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1 rate in subparagraph (A)(iii) and the 19.7 

2 cents rate in subparagraph (D), shall each 

3 be increased by an amount equal to— 

4 ‘‘(I) such dollar amount, multi5 plied by 

6 ‘‘(II) the double indexation for 

7 the calendar year. 

8 Any increase determined under subpara9 graph (A) shall be rounded to the nearest 

10 tenth of a cent. 

11 ‘‘(ii) EXCEPTION FOR FUEL USED IN

12 AVIATION.—The adjustment under clause 

13 (i) shall not apply with respect to the rate 

14 of tax under subparagraph (A)(iii) by rea15 son of subparagraph (C). 

16 ‘‘(iii) DOUBLE INDEXATION.—For 

17 purposes of clause (i), the double index18 ation for any calendar year is the sum of— 

19 ‘‘(I) the highway construction 

20 cost adjustment, and 

21 ‘‘(II) the CAFE fuel saved ad22 justment. 

23 ‘‘(iv) HIGHWAY CONSTRUCTION COST

24 ADJUSTMENT.—For purposes of clause 

25 (iii), the highway construction cost adjustVerDate Mar 15 2010 22:23 Jun 13, 2014 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H4848.IH H4848

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1 ment for any calendar year is the percent2 age (if any) by which— 

3 ‘‘(I) the National Highway Con4 struction Cost Index for the preceding 

5 calendar year, exceeds 

6 ‘‘(II) the National Highway Con7 struction Cost Index for calendar year 

8 2013. 

9 ‘‘(v) NATIONAL HIGHWAY CONSTRUC10 TION COST INDEX FOR ANY CALENDAR

11 YEAR.—For purposes of clause (iv), the 

12 National Highway Construction Cost Index 

13 for any calendar year is the average of the 

14 National Highway Construction Cost Index 

15 as of the close of the 12-month period end16 ing on August 31 of such calendar year. 

17 ‘‘(vi) NATIONAL HIGHWAY CONSTRUC18 TION COST INDEX.—For purposes of clause 

19 (iv), the term ‘National Highway Construc20 tion Cost Index’ means the last National 

21 Highway Construction Cost Index pub22 lished by the Department of Transpor23 tation. 

24 ‘‘(vii) CAFE FUEL SAVED ADJUST25 MENT.—For purposes of clause (iii), the 


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1 CAFE fuel saved adjustment for a cal2 endar year is the percentage (if any) by 

3 which annual motor fuel use is reduced by 

4 the estimated CAFE fuel saved for that 

5 calendar year from the annual motor fuel 

6 use for the prior calendar year. 

7 ‘‘(viii) ESTIMATED CAFE FUEL

8 SAVED.—The term ‘estimated CAFE fuel 

9 saved’ for a calendar year means the com10 bined fuel saved estimates issued by the 

11 National Highway Traffic Safety Adminis12 tration and the Environmental Protection 

13 Agency for passenger automobiles and 

14 light trucks and published in the Federal 

15 Register on May 7, 2010, and October 15, 

16 2012, as part of final rules to implement 

17 corporate average fuel economy standards, 

18 and such successor estimates included in 

19 successor rules. 

20 ‘‘(ix) ANNUAL MOTOR FUEL USE.— 

21 The term ‘annual motor fuel use’ means 

22 the total number of gallons of gasoline 

23 used in a calendar year in highway use, as 

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1 istration as part of its annual motor fuel 

2 use survey. 

3 ‘‘(x) NOTICE.—Not later than Decem4 ber 15, 2014, and annually thereafter, the 

5 Secretary shall publish the rates of tax as 

6 adjusted under this subparagraph for the 

7 succeeding calendar year.’’. 

8 (b) RETAIL FUEL EXCISE TAX.—Subsection (a) of 

9 section 4041 of the Internal Revenue Code of 1986 is 

10 amended by adding at the end the following new para11 graph: 

12 ‘‘(4) HIGHWAY INFLATION ADJUSTMENT.— 

13 ‘‘(A) IN GENERAL.—In the case of any cal14 endar year after 2014, each dollar amount in 

15 paragraphs (1)(C)(iii)(I), (2)(B)(ii), and (3)(A) 

16 of this subsection and in subsections 

17 (b)(2)(A)(i), (b)(2)(C)(i), and (m)(1) shall be 

18 increased by an amount equal to— 

19 ‘‘(i) such dollar amount, multiplied by 

20 ‘‘(ii) the double indexation determined 

21 under section 4081(a)(2)(E) for the cal22 endar year. 

23 ‘‘(B) ROUNDING.—Any increase deter24 mined under subparagraph (A) shall be rounded 

25 to the nearest tenth of a cent.’’. 


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1 (c) CONFORMING AMENDMENT.—Subparagraph (A) 

2 of section 4081(a)(2) of the Internal Revenue Code of 

3 1986 is amended by striking ‘‘The rate’’ and inserting 

4 ‘‘Except as provided in subparagraph (C), the rate’’. 

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

6 this section shall apply to periods beginning after Decem7 ber 31, 2014. 

8 SEC. 5. INCREASE IN TAX ON PETROLEUM; TRANSFER TO 

9 HIGHWAY TRUST FUND. 

10 (a) IN GENERAL.—Paragraph (1) of section 4611(c) 

11 of the Internal Revenue Code of 1986 is amended by strik12 ing ‘‘and’’ at the end of subparagraph (A), by striking 

13 the period at the end of subparagraph (B) and inserting 

14 ‘‘, and’’, and by inserting after subparagraph (B) the fol15 lowing new subparagraph: 

16 ‘‘(C) the Highway Trust Fund financing 

17 rate.’’. 

18 (b) RATES.— 

19 (1) IN GENERAL.—Paragraph (2) of section 

20 4611(c) of the Internal Revenue Code of 1986 is 

21 amended by striking ‘‘and’’ at the end of subpara22 graph (A), by striking the period at the end of sub23 paragraph (B) and inserting ‘‘, and’’, and by insert24 ing after subparagraph (B) the following new sub25 paragraph: 


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1 ‘‘(C) the Highway Trust Fund financing 

2 rate is $6.75 a barrel.’’. 

3 (2) ADJUSTMENT FOR INFLATION.—Section 

4 4611(c) of the Internal Revenue Code of 1986 is 

5 amended by adding at the end the following: 

6 ‘‘(3) HIGHWAY TRUST FUND FINANCING RATE

7 INFLATION ADJUSTMENT.— 

8 ‘‘(A) IN GENERAL.—In the case of any cal9 endar year after 2014, the dollar amount in 

10 paragraph (2)(C) shall be increased by an 

11 amount equal to— 

12 ‘‘(i) such dollar amount, multiplied by 

13 ‘‘(ii) the double indexation determined 

14 under section 4081(a)(2)(E) for the cal15 endar year. 

16 ‘‘(B) ROUNDING.—Any increase deter17 mined under subparagraph (A) shall be rounded 

18 to the nearest tenth of a cent.’’. 

19 (3) CREDIT FOR MANUFACTURERS TAX.—Sec20 tion 4611 of the Internal Revenue Code of 1986 is 

21 amended by adding at the end the following: 

22 ‘‘(g) CREDIT FOR MANUFACTURERS TAX.— 

23 ‘‘(1) IN GENERAL.—Under regulations pre24 scribed by the Secretary, there shall be allowed to 

25 the person liable for the tax under subsection (d) a 


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1 credit against so much of the tax imposed by sub2 section (a) as relates to the Highway Trust Fund fi3 nancing rate for each gallon of fuel— 

4 ‘‘(A) produced, removed (within the mean5 ing of section 4083(c)), or sold (as the case 

6 may be) with respect to the barrel of crude oil 

7 or petroleum on which tax is imposed under 

8 subsection (a), and 

9 ‘‘(B) on which tax is imposed under sec10 tion 4081(a). 

11 ‘‘(2) NOT APPLICABLE TO GASOLINE.—Para12 graph (1) shall not apply to gasoline (as defined in 

13 section 4083(a)(2)). 

14 ‘‘(3) AMOUNT OF CREDIT.—The amount of the 

15 credit allowable under paragraph (1) with respect to 

16 a gallon of a type of fuel produced from a barrel 

17 shall be the product of— 

18 ‘‘(A) the Highway Trust Fund financing 

19 rate (as defined in section 4611(c)(2)) multiplied by 1 20 ⁄42, 

21 ‘‘(B) the sum of— 

22 ‘‘(i) 1, plus 

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1 ond calendar year preceding the year in 

2 which payment under paragraph (1) is 

3 made, as determined by the Energy Infor4 mation Administration of the Department 

5 of Energy, and 

6 ‘‘(C) the refinery yield for a product (ex7 pressed as a decimal number) for the second 

8 calendar year preceding the year in which pay9 ment under paragraph (1) is made, as deter10 mined by the Energy Information Administra11 tion of the Department of Energy.’’. 

12 (4) LEAKING UNDERGROUND STORAGE TANK

13 TRUST FUND TAX.—Section 4611 of the Internal 

14 Revenue Code of 1986, as amended by paragraph 

15 (3), is amended by adding at the end the following: 

16 ‘‘(h) LEAKING UNDERGROUND STORAGE TANK

17 TRUST FUND TAX.—The rate of tax specified in sub18 section (c)(1)(C) shall be increased by 0.1 cent per gallon 

19 equivalent. For purposes of the preceding sentence, the 

20 per gallon equivalent shall be determined in accordance 

21 with section 4611(g)(3) by inserting 0.1 cent per gallon 

22 for the Highway Trust Fund financing rate in subpara23 graph (A) thereof. The increase in tax under this sub24 section shall in this title be added to and treated as part 


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1 of the Leaking Underground Storage Tank Trust Fund 

2 financing rate under section 4081(a)(2)(B).’’. 

3 (c) CREDIT FOR ALCOHOL FUEL, BIODIESEL, AND

4 ALTERNATIVE FUEL MIXTURES.—Section 6426(a) of the 

5 Internal Revenue Code of 1986 is amended by striking 

6 ‘‘and’’ at the end of paragraph (1), by striking the period 

7 at the end of paragraph (2) and inserting ‘‘, and’’, and 

8 by inserting after paragraph (2) the following: 

9 ‘‘(3) against so much of the tax imposed by sec10 tion 4611 as is attributable to subsection (c)(1)(C) 

11 an amount equal to the sum of the credits described 

12 in subsections (b), (c), and (e), determined on the 

13 same fraction of the amount of such tax as the gal14 lon of taxable fuel is of the whole barrel.’’. 

15 (d) CONFORMING AMENDMENT.—Section 34(a) of 

16 the Internal Revenue Code of 1986 is amended by striking 

17 ‘‘and’’ at the end of paragraph (2), by striking the period 

18 at the end of paragraph (3), and by inserting after para19 graph (3) the following new paragraph: 

20 ‘‘(4) under section 4611(g)(3).’’. 

21 (e) EFFECTIVE DATE.—The amendments made by 

22 this section shall take effect on January 1, 2015. 

23 SEC. 6. TRANSPORTATION BONDS. 

24 (a) ISSUANCE.—The Secretary of the Treasury shall, 

25 pursuant to subchapter I of chapter 31 of title 31, United 


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1 States Code, issue bonds which meet the terms and condi2 tions of subsection (b), and the bond revenue (other than 

3 capitalized interest described in subsection (b)(2)) shall be 

4 transferred to the Highway Trust Fund and allocated be5 tween the Highway Account and the Mass Transit Ac6 count using the same ratio as provided under section 

7 9503(e)(2) of the Internal Revenue Code of 1986. 

8 (b) TERMS AND CONDITIONS.—The terms and condi9 tions of bonds referred to in this subsection are the fol10 lowing: 

11 (1) TERM.—Bonds issued under subsection (a) 

12 shall have a term of 10 years. 

13 (2) INTEREST.—Interest shall be paid from the 

14 Temporary Transportation Bond Repayment Ac15 count. 

16 (3) CAPITALIZED INTEREST.—The Secretary of 

17 the Treasury may include capitalized interest in the 

18 principal amount of bonds issued under subsection 

19 (a) to pay the interest that the issuer estimates will 

20 become due and payable on the bonds prior to the 

21 receipt of sufficient transfers under section 

22 9503(g)(2) of the Internal Revenue Code of 1986 to 

23 the Temporary Transportation Bond Repayment Ac24 count. Capitalized interest shall be deposited into the 


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1 Transportation Bond Repayment Account and ap2 plied to interest on such bonds. 

3 (4) AMOUNT OUTSTANDING.—The total face 

4 amount of bonds issued under this section may not 

5 exceed the amount the Secretary of the Treasury de6 termines can be redeemed, taking into account this 

7 section and section 9503(g) of the Internal Revenue 

8 Code of 1986. 

9 (c) TRANSFERS OF TRANSPORTATION BOND PRO10 CEEDS.—Section 9503(b) of the Internal Revenue Code 

11 of 1986 is amended by adding at the end the following 

12 new paragraph: 

13 ‘‘(7) TRANSFERS OF TRANSPORTATION BOND

14 PROCEEDS.—There are hereby appropriated to the 

15 Highway Trust Fund amounts equivalent to the pro16 ceeds received in the Treasury before October 1, 

17 2016, under section 6(a) of the Repeal and Rebuild 

18 Act of 2014.’’. 

19 (d) TEMPORARY TRANSPORTATION BOND REPAY20 MENT ACCOUNT.—Section 9503 of the Internal Revenue 

21 Code of 1986 is amended by adding at the end the fol22 lowing new subsection: 

23 ‘‘(g) ESTABLISHMENT OF TEMPORARY TRANSPOR24 TATION BOND REPAYMENT ACCOUNT.— 


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1 ‘‘(1) CREATION OF ACCOUNT.—There is estab2 lished in the Highway Trust Fund a separate ac3 count to be known as the ‘Temporary Transpor4 tation Bond Repayment Account’ consisting of such 

5 amounts as may be transferred or credited to the 

6 Temporary Transportation Bond Repayment Ac7 count as provided in this section. 

8 ‘‘(2) TRANSFERS TO TEMPORARY TRANSPOR9 TATION BOND REPAYMENT ACCOUNT.—The Sec10 retary of the Treasury shall transfer to the Tem11 porary Transportation Bond Repayment Account the 

12 excess of— 

13 ‘‘(A) the portion of the amounts appro14 priated to the Highway Trust Fund under sub15 section (b) which are attributable to the in16 crease in taxes under— 

17 ‘‘(i) section 4041 by reason of section 

18 4041(a)(4), 

19 ‘‘(ii) section 4081 by reason of section 

20 4081(a)(2)(E), and 

21 ‘‘(iii) section 4461 by reason of sec22 tion 4611(c)(2)(C) and after the applica23 tion of section 4461(g), over 

24 ‘‘(B) the amount estimated by the Sec25 retary which would have been collected under 


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1 section 4081(a)(2)(A)(i) and part II of sub2 chapter A of chapter 32 if such provisions had 

3 not been repealed. 

4 ‘‘(3) EXPENDITURES FROM ACCOUNT.— 

5 Amounts in the Temporary Transportation Bond 

6 Repayment Account shall be available for redeeming 

7 bonds issued under section 6 of the Repeal and Re8 build Act of 2014. 

9 ‘‘(4) TERMINATION.—The Temporary Trans10 portation Bond Repayment Account shall close after 

11 all bonds issued under section 6 of the Repeal and 

12 Rebuild Act of 2014 have been redeemed and all 

13 amounts in the account and all future revenue that 

14 would have transferred to the account shall be trans15 ferred to the Highway Trust Fund and allocated be16 tween the Highway Account and the Mass Transit 

17 Account in the same ratio as provided under sub18 section (e)(2).’’. 

19 (e) CONFORMING AMENDMENT.—Section 

20 9503(e)(5)(B) of the Internal Revenue Code of 1986 is 

21 amended by inserting ‘‘or the Temporary Transportation 

22 Bond Repayment Account’’ before the period at the end. 


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

2 this section shall apply to periods after December 31, 

3 2014. 

Æ 


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