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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4848 Introduced in House (IH)]

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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Repeal and Rebuild Act of 2014''.

SEC. 2. REPEAL OF EXCISE TAX ON GASOLINE.

    (a) In General.--Section 4081(a)(2)(A)(i) of the Internal Revenue 
Code of 1986 is amended by striking ``18.3 cents per gallon'' and 
inserting ``0 cents per gallon''.
    (b) Conforming Amendments.--
            (1) Section 4081(d)(1) of the Internal Revenue Code of 1986 
        is amended by striking ``clauses (i) and'' and inserting 
        ``clause''.
            (2) Section 4041(a)(2)(B)(i) of the Internal Revenue Code 
        of 1986 is amended by striking ``the rate of tax specified in 
        section 4081(a)(2)(A)(i) which is in effect at the time of such 
        sale or use,'' and inserting ``18.3 cents per gallon''.
    (c) Effective Date.--The amendments made by this section shall 
apply to fuel sold or used after December 31, 2014.

SEC. 3. REPEAL OF EXCISE TAX ON TIRES.

    (a) In General.--Subchapter A of chapter 32 of subtitle D of the 
Internal Revenue Code of 1986 is amended by striking part II (relating 
to tires).
    (b) Conforming Amendments.--
            (1) The table of parts for subchapter A of chapter 32 of 
        subtitle D of the Internal Revenue Code of 1986 is amended by 
        striking the item relating to part II.
            (2) Section 9503(b)(1) of the Internal Revenue Code of 1986 
        is amended by striking subparagraph (C) and redesignating 
        subparagraphs (D) and (E) as subparagraphs (C) and (D), 
        respectively.
            (3) Section 6412(a)(1) of the Internal Revenue Code of 1986 
        is amended--
                    (A) in the text by striking ``4071 or'', and
                    (B) in the heading by striking ``Tires and 
                taxable'' and inserting ``Taxable''.
            (4) Section 6416 of the Internal Revenue Code of 1986 is 
        amended by striking subparagraph (C) of subsection (b)(1).
            (5) Section 4218 of the Internal Revenue Code of 1986 is 
        amended--
                    (A) in subsection (a) by striking ``(other than a 
                tire taxable under section 4071)'', and
                    (B) by striking subsection (b) and redesignating 
                subsection (c) as subsection (b).
            (6) Section 4221 of the Internal Revenue Code of 1986 is 
        amended--
                    (A) in subsection (a) by striking ``or 4071,'', and
                    (B) in subsection (e) by striking paragraph (2).
            (7) Section 4051 of the Internal Revenue Code of 1986 is 
        amended by striking subsection (e).
    (c) Effective Date.--
            (1) Except as provided by paragraph (2), the amendments 
        made by this section shall apply to sales after December 31, 
        2014.
            (2) The amendments made by paragraphs (3), (4), (5), and 
        (6) of subsection (b) shall apply to taxes imposed after 
        December 31, 2014.
    (d) Special Rule for Floor Stocks Refunds Relating to Tires and 
Taxable Fuels.--In the case of an article subject to the tax imposed by 
section 4071 or 4081 before January 1, 2015, which has been sold, held, 
and not used and is intended for sale in the manner specified by 
section 6412(a)(1) of the Internal Revenue Code of 1986, such section 
shall be applied by substituting--
            (1) ``January 1, 2015'' for ``October 1, 2016'',
            (2) ``July 1, 2015'' for ``January 1, 2017'', and
            (3) ``October 1, 2015'' for ``March 31, 2017''.

SEC. 4. DOUBLE INDEXATION OF DIESEL FUELS TAX.

    (a) In General.--Paragraph (2) of section 4081(a) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
subparagraph:
                    ``(E) Index for highway construction cost inflation 
                and fuel efficiency.--
                            ``(i) In general.--In the case of any 
                        calendar year after 2014, the 24.3 cents rate 
                        in subparagraph (A)(iii) and the 19.7 cents 
                        rate in subparagraph (D), shall each be 
                        increased by an amount equal to--
                                    ``(I) such dollar amount, 
                                multiplied by
                                    ``(II) the double indexation for 
                                the calendar year.
                        Any increase determined under subparagraph (A) 
                        shall be rounded to the nearest tenth of a 
                        cent.
                            ``(ii) Exception for fuel used in 
                        aviation.--The adjustment under clause (i) 
                        shall not apply with respect to the rate of tax 
                        under subparagraph (A)(iii) by reason of 
                        subparagraph (C).
                            ``(iii) Double indexation.--For purposes of 
                        clause (i), the double indexation for any 
                        calendar year is the sum of--
                                    ``(I) the highway construction cost 
                                adjustment, and
                                    ``(II) the CAFE fuel saved 
                                adjustment.
                            ``(iv) Highway construction cost 
                        adjustment.--For purposes of clause (iii), the 
                        highway construction cost adjustment for any 
                        calendar year is the percentage (if any) by 
                        which--
                                    ``(I) the National Highway 
                                Construction Cost Index for the 
                                preceding calendar year, exceeds
                                    ``(II) the National Highway 
                                Construction Cost Index for calendar 
                                year 2013.
                            ``(v) National highway construction cost 
                        index for any calendar year.--For purposes of 
                        clause (iv), the National Highway Construction 
                        Cost Index for any calendar year is the average 
                        of the National Highway Construction Cost Index 
                        as of the close of the 12-month period ending 
                        on August 31 of such calendar year.
                            ``(vi) National highway construction cost 
                        index.--For purposes of clause (iv), the term 
                        `National Highway Construction Cost Index' 
                        means the last National Highway Construction 
                        Cost Index published by the Department of 
                        Transportation.
                            ``(vii) CAFE fuel saved adjustment.--For 
                        purposes of clause (iii), the CAFE fuel saved 
                        adjustment for a calendar year is the 
                        percentage (if any) by which annual motor fuel 
                        use is reduced by the estimated CAFE fuel saved 
                        for that calendar year from the annual motor 
                        fuel use for the prior calendar year.
                            ``(viii) Estimated cafe fuel saved.--The 
                        term `estimated CAFE fuel saved' for a calendar 
                        year means the combined fuel saved estimates 
                        issued by the National Highway Traffic Safety 
                        Administration and the Environmental Protection 
                        Agency for passenger automobiles and light 
                        trucks and published in the Federal Register on 
                        May 7, 2010, and October 15, 2012, as part of 
                        final rules to implement corporate average fuel 
                        economy standards, and such successor estimates 
                        included in successor rules.
                            ``(ix) Annual motor fuel use.--The term 
                        `annual motor fuel use' means the total number 
                        of gallons of gasoline used in a calendar year 
                        in highway use, as published by the Federal 
                        Highway Administration as part of its annual 
                        motor fuel use survey.
                            ``(x) Notice.--Not later than December 15, 
                        2014, and annually thereafter, the Secretary 
                        shall publish the rates of tax as adjusted 
                        under this subparagraph for the succeeding 
                        calendar year.''.
    (b) Retail Fuel Excise Tax.--Subsection (a) of section 4041 of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new paragraph:
            ``(4) Highway inflation adjustment.--
                    ``(A) In general.--In the case of any calendar year 
                after 2014, each dollar amount in paragraphs 
                (1)(C)(iii)(I), (2)(B)(ii), and (3)(A) of this 
                subsection and in subsections (b)(2)(A)(i), 
                (b)(2)(C)(i), and (m)(1) shall be increased by an 
                amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the double indexation determined 
                        under section 4081(a)(2)(E) for the calendar 
                        year.
                    ``(B) Rounding.--Any increase determined under 
                subparagraph (A) shall be rounded to the nearest tenth 
                of a cent.''.
    (c) Conforming Amendment.--Subparagraph (A) of section 4081(a)(2) 
of the Internal Revenue Code of 1986 is amended by striking ``The 
rate'' and inserting ``Except as provided in subparagraph (C), the 
rate''.
    (d) Effective Date.--The amendments made by this section shall 
apply to periods beginning after December 31, 2014.

SEC. 5. INCREASE IN TAX ON PETROLEUM; TRANSFER TO HIGHWAY TRUST FUND.

    (a) In General.--Paragraph (1) of section 4611(c) of the Internal 
Revenue Code of 1986 is amended by striking ``and'' at the end of 
subparagraph (A), by striking the period at the end of subparagraph (B) 
and inserting ``, and'', and by inserting after subparagraph (B) the 
following new subparagraph:
                    ``(C) the Highway Trust Fund financing rate.''.
    (b) Rates.--
            (1) In general.--Paragraph (2) of section 4611(c) of the 
        Internal Revenue Code of 1986 is amended by striking ``and'' at 
        the end of subparagraph (A), by striking the period at the end 
        of subparagraph (B) and inserting ``, and'', and by inserting 
        after subparagraph (B) the following new subparagraph:
                    ``(C) the Highway Trust Fund financing rate is 
                $6.75 a barrel.''.
            (2) Adjustment for inflation.--Section 4611(c) of the 
        Internal Revenue Code of 1986 is amended by adding at the end 
        the following:
            ``(3) Highway trust fund financing rate inflation 
        adjustment.--
                    ``(A) In general.--In the case of any calendar year 
                after 2014, the dollar amount in paragraph (2)(C) shall 
                be increased by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the double indexation determined 
                        under section 4081(a)(2)(E) for the calendar 
                        year.
                    ``(B) Rounding.--Any increase determined under 
                subparagraph (A) shall be rounded to the nearest tenth 
                of a cent.''.
            (3) Credit for manufacturers tax.--Section 4611 of the 
        Internal Revenue Code of 1986 is amended by adding at the end 
        the following:
    ``(g) Credit for Manufacturers Tax.--
            ``(1) In general.--Under regulations prescribed by the 
        Secretary, there shall be allowed to the person liable for the 
        tax under subsection (d) a credit against so much of the tax 
        imposed by subsection (a) as relates to the Highway Trust Fund 
        financing rate for each gallon of fuel--
                    ``(A) produced, removed (within the meaning of 
                section 4083(c)), or sold (as the case may be) with 
                respect to the barrel of crude oil or petroleum on 
                which tax is imposed under subsection (a), and
                    ``(B) on which tax is imposed under section 
                4081(a).
            ``(2) Not applicable to gasoline.--Paragraph (1) shall not 
        apply to gasoline (as defined in section 4083(a)(2)).
            ``(3) Amount of credit.--The amount of the credit allowable 
        under paragraph (1) with respect to a gallon of a type of fuel 
        produced from a barrel shall be the product of--
                    ``(A) the Highway Trust Fund financing rate (as 
                defined in section 4611(c)(2)) multiplied by \1/42\,
                    ``(B) the sum of--
                            ``(i) 1, plus
                            ``(ii) the absolute value of the processing 
                        gain from the refinery yield (expressed as a 
                        decimal number) for the second calendar year 
                        preceding the year in which payment under 
                        paragraph (1) is made, as determined by the 
                        Energy Information Administration of the 
                        Department of Energy, and
                    ``(C) the refinery yield for a product (expressed 
                as a decimal number) for the second calendar year 
                preceding the year in which payment under paragraph (1) 
                is made, as determined by the Energy Information 
                Administration of the Department of Energy.''.
            (4) Leaking underground storage tank trust fund tax.--
        Section 4611 of the Internal Revenue Code of 1986, as amended 
        by paragraph (3), is amended by adding at the end the 
        following:
    ``(h) Leaking Underground Storage Tank Trust Fund Tax.--The rate of 
tax specified in subsection (c)(1)(C) shall be increased by 0.1 cent 
per gallon equivalent. For purposes of the preceding sentence, the per 
gallon equivalent shall be determined in accordance with section 
4611(g)(3) by inserting 0.1 cent per gallon for the Highway Trust Fund 
financing rate in subparagraph (A) thereof. The increase in tax under 
this subsection shall in this title be added to and treated as part of 
the Leaking Underground Storage Tank Trust Fund financing rate under 
section 4081(a)(2)(B).''.
    (c) Credit for Alcohol Fuel, Biodiesel, and Alternative Fuel 
Mixtures.--Section 6426(a) of the Internal Revenue Code of 1986 is 
amended by striking ``and'' at the end of paragraph (1), by striking 
the period at the end of paragraph (2) and inserting ``, and'', and by 
inserting after paragraph (2) the following:
            ``(3) against so much of the tax imposed by section 4611 as 
        is attributable to subsection (c)(1)(C) an amount equal to the 
        sum of the credits described in subsections (b), (c), and (e), 
        determined on the same fraction of the amount of such tax as 
        the gallon of taxable fuel is of the whole barrel.''.
    (d) Conforming Amendment.--Section 34(a) of the Internal Revenue 
Code of 1986 is amended by striking ``and'' at the end of paragraph 
(2), by striking the period at the end of paragraph (3), and by 
inserting after paragraph (3) the following new paragraph:
            ``(4) under section 4611(g)(3).''.
    (e) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2015.

SEC. 6. TRANSPORTATION BONDS.

    (a) Issuance.--The Secretary of the Treasury shall, pursuant to 
subchapter I of chapter 31 of title 31, United States Code, issue bonds 
which meet the terms and conditions of subsection (b), and the bond 
revenue (other than capitalized interest described in subsection 
(b)(2)) shall be transferred to the Highway Trust Fund and allocated 
between the Highway Account and the Mass Transit Account using the same 
ratio as provided under section 9503(e)(2) of the Internal Revenue Code 
of 1986.
    (b) Terms and Conditions.--The terms and conditions of bonds 
referred to in this subsection are the following:
            (1) Term.--Bonds issued under subsection (a) shall have a 
        term of 10 years.
            (2) Interest.--Interest shall be paid from the Temporary 
        Transportation Bond Repayment Account.
            (3) Capitalized interest.--The Secretary of the Treasury 
        may include capitalized interest in the principal amount of 
        bonds issued under subsection (a) to pay the interest that the 
        issuer estimates will become due and payable on the bonds prior 
        to the receipt of sufficient transfers under section 9503(g)(2) 
        of the Internal Revenue Code of 1986 to the Temporary 
        Transportation Bond Repayment Account. Capitalized interest 
        shall be deposited into the Transportation Bond Repayment 
        Account and applied to interest on such bonds.
            (4) Amount outstanding.--The total face amount of bonds 
        issued under this section may not exceed the amount the 
        Secretary of the Treasury determines can be redeemed, taking 
        into account this section and section 9503(g) of the Internal 
        Revenue Code of 1986.
    (c) Transfers of Transportation Bond Proceeds.--Section 9503(b) of 
the Internal Revenue Code of 1986 is amended by adding at the end the 
following new paragraph:
            ``(7) Transfers of transportation bond proceeds.--There are 
        hereby appropriated to the Highway Trust Fund amounts 
        equivalent to the proceeds received in the Treasury before 
        October 1, 2016, under section 6(a) of the Repeal and Rebuild 
        Act of 2014.''.
    (d) Temporary Transportation Bond Repayment Account.--Section 9503 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new subsection:
    ``(g) Establishment of Temporary Transportation Bond Repayment 
Account.--
            ``(1) Creation of account.--There is established in the 
        Highway Trust Fund a separate account to be known as the 
        `Temporary Transportation Bond Repayment Account' consisting of 
        such amounts as may be transferred or credited to the Temporary 
        Transportation Bond Repayment Account as provided in this 
        section.
            ``(2) Transfers to temporary transportation bond repayment 
        account.--The Secretary of the Treasury shall transfer to the 
        Temporary Transportation Bond Repayment Account the excess of--
                    ``(A) the portion of the amounts appropriated to 
                the Highway Trust Fund under subsection (b) which are 
                attributable to the increase in taxes under--
                            ``(i) section 4041 by reason of section 
                        4041(a)(4),
                            ``(ii) section 4081 by reason of section 
                        4081(a)(2)(E), and
                            ``(iii) section 4461 by reason of section 
                        4611(c)(2)(C) and after the application of 
                        section 4461(g), over
                    ``(B) the amount estimated by the Secretary which 
                would have been collected under section 
                4081(a)(2)(A)(i) and part II of subchapter A of chapter 
                32 if such provisions had not been repealed.
            ``(3) Expenditures from account.--Amounts in the Temporary 
        Transportation Bond Repayment Account shall be available for 
        redeeming bonds issued under section 6 of the Repeal and 
        Rebuild Act of 2014.
            ``(4) Termination.--The Temporary Transportation Bond 
        Repayment Account shall close after all bonds issued under 
        section 6 of the Repeal and Rebuild Act of 2014 have been 
        redeemed and all amounts in the account and all future revenue 
        that would have transferred to the account shall be transferred 
        to the Highway Trust Fund and allocated between the Highway 
        Account and the Mass Transit Account in the same ratio as 
        provided under subsection (e)(2).''.
    (e) Conforming Amendment.--Section 9503(e)(5)(B) of the Internal 
Revenue Code of 1986 is amended by inserting ``or the Temporary 
Transportation Bond Repayment Account'' before the period at the end.
    (f) Effective Date.--The amendments made by this section shall 
apply to periods after December 31, 2014.
                                 <all>
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