I

104TH CONGRESS

2D SESSION H. R. 4106

To amend the Internal Revenue Code of 1986 to provide that 0.5 cent

of the general revenue portion of the highway motor fuel taxes shall

be deposited into an Intercity Passenger Rail Trust Fund and to deposit

the remainder of such portion into the Highway Trust Fund.

IN THE HOUSE OF REPRESENTATIVES

SEPTEMBER 18, 1996

Mrs. JOHNSON of Connecticut (for herself, Mr. CASTLE, Mr. CLINGER, Mr.

HOUGHTON, Mr. SERRANO, Mr. BACHUS, and Mr. LEWIS of Georgia) introduced the following bill; which was referred to the Committee on Ways

and Means, and in addition to the Committee on Transportation and Infrastructure, for a period to be subsequently determined by the Speaker,

in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To amend the Internal Revenue Code of 1986 to provide

that 0.5 cent of the general revenue portion of the highway motor fuel taxes shall be deposited into an Intercity

Passenger Rail Trust Fund and to deposit the remainder

of such portion into the Highway Trust Fund.

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 ‘‘Intercity Passenger

5 Rail Trust Fund Act of 1996’’.
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1 SEC. 2. 0.5 CENT OF GENERAL REVENUE PORTION OF THE

2 HIGHWAY MOTOR FUEL TAXES DEPOSITED

3 INTO INTERCITY PASSENGER RAIL TRUST

4 FUND.

5 (a) ESTABLISHMENT OF TRUST FUND.—Subchapter

6 A of chapter 98 of the Internal Revenue Code of 1986

7 (relating to trust fund code) is amended by adding at the

8 end the following new section:

9 ‘‘SEC. 9512. INTERCITY PASSENGER RAIL TRUST FUND.

10 ‘‘(a) CREATION OF TRUST FUND.—There is estab11 lished in the Treasury of the United States a trust fund

12 to be known as the ‘Intercity Passenger Rail Trust Fund’,

13 consisting of such amounts as may be appropriated or

14 credited to the Trust Fund as provided in this section or

15 section 9602(b).

16 ‘‘(b) TRANSFERS TO TRUST FUND.—There are here17 by appropriated to the Intercity Passenger Rail Trust

18 Fund amounts equivalent to 0.5 cent for each gallon with

19 respect to which tax was imposed under section 4041 or

20 4081. Only taxes imposed after December 31, 1996, and

21 before October 1, 2001, shall be taken into account under

22 the preceding sentence.

23 ‘‘(c) EXPENDITURES FROM TRUST FUND.—

24 ‘‘(1) IN GENERAL.—Except as provided in para25 graph (2), amounts in the Intercity Passenger Rail
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1 Trust Fund shall be available, as provided by appro2 priation Acts, to finance qualified expenses of—

3 ‘‘(A) the National Railroad Passenger Cor4 poration, and

5 ‘‘(B) each eligible State, to the extent de6 termined under paragraph (3).

7 ‘‘(2) DIRECT SPENDING AMOUNTS.—The follow8 ing amounts in the Intercity Passenger Rail Trust

9 Fund are hereby appropriated to finance qualified

10 expenses:

Amount

‘‘Fiscal year: Available:

1997 .........................................................................................$540,000,000

1998 ......................................................................................... 751,000,000

1999 ......................................................................................... 766,000,000

2000 ......................................................................................... 781,000,000

2001 ......................................................................................... 797,000,000.

11 ‘‘(3) MAXIMUM AMOUNT OF FUNDS TO ELIGI12 BLE STATES.—Each eligible State shall receive

13 under this subsection an amount equal to the lesser

14 of—

15 ‘‘(A) the State’s qualified expenses for the

16 fiscal year, or

17 ‘‘(B) the product of—

‘‘(i) 1 18 ⁄12 of 1 percent of the lesser of—

19 ‘‘(I) the aggregate amounts ap20 propriated and credited to the Inter21 city Passenger Rail Trust Fund under

22 subsection (a) for such fiscal year, or
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1 ‘‘(II) the aggregate amounts ap2 propriated from the Intercity Pas3 senger Rail Trust Fund under this

4 subsection for such fiscal year, and

5 ‘‘(ii) the number of months such State

6 was an eligible State in the preceding fiscal

7 year.

8 If the amount determined under subparagraph (B)

9 exceeds the amount under subparagraph (A) for any

10 fiscal year, the amount under subparagraph (B) for

11 the following fiscal year shall be increased by the

12 amount of such excess.

13 ‘‘(d) DEFINITIONS.—For purposes of this section—

14 ‘‘(1) QUALIFIED EXPENSES.—The term ‘quali15 fied expenses’ means expenses incurred, with respect

16 to obligations made after December 31, 1996, and

17 before October 1, 2001, if such expense is—

18 ‘‘(A) in the case of—

19 ‘‘(i) the National Railroad Passenger

20 Corporation, for capital improvements in

21 intercity passenger rail service (or for am22 ortization of principal and interest on any

23 loan incurred such improvements), or

24 ‘‘(ii) an eligible State, for capital im25 provements in intercity rail service (or for
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1 amortization of principal and interest on

2 any loan incurred such improvements), and

3 ‘‘(B) certified by the Secretary of Trans4 portation as meeting the requirements of sub5 paragraph (A).

6 ‘‘(2) ELIGIBLE STATE.—The term ‘eligible

7 State’ means any State which does not receive inter8 city passenger rail service from the National Rail9 road Passenger Corporation.

10 ‘‘(e) TERMINATION.—The Secretary shall determine

11 and retain, not later than October 1, 2001, the amount

12 in the Intercity Passenger Rail Trust Fund necessary to

13 pay any outstanding qualified expenses, and shall transfer

14 any amount not so retained to the general fund of the

15 Treasury.’’

16 (b) CONFORMING AMENDMENT.—The table of sec17 tions for subchapter A of chapter 98 of such Code (relat18 ing to trust fund code) is amended by adding at the end

19 the following new item:

‘‘Sec. 9512. Intercity Passenger Rail Trust Fund.’’

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

21 this section shall apply with respect to taxes imposed after

22 December 31, 1996.
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1 SEC. 3. REMAINDER OF GENERAL REVENUE PORTION OF

2 HIGHWAY MOTOR FUEL EXCISE TAX REVE3 NUES TO BE DEPOSITED INTO HIGHWAY

4 TRUST FUND.

5 (a) IN GENERAL.—Paragraph (4) of section 9503(b)

6 of the Internal Revenue Code of 1986 (relating to certain

7 additional taxes not transferred to Highway Trust Fund)

8 is amended to read as follows:

9 ‘‘(4) CERTAIN TAXES NOT TRANSFERRED TO

10 HIGHWAY TRUST FUND.—For purposes of para11 graphs (1) and (2), there shall not be taken into ac12 count—

13 ‘‘(A) the taxes imposed by section 4041(d),

14 ‘‘(B) the taxes imposed by section 4081 to

15 the extent attributable to the rate specified in

16 section 4081(a)(2)(B), and

17 ‘‘(C) the taxes imposed by sections 4041

18 and 4081 to the extent that amounts equivalent

19 to such taxes are appropriated to the Intercity

20 Passenger Rail Trust Fund by section

21 9512(b).’’

22 (b) CONFORMING AMENDMENTS.—

23 (1) Subparagraph (B) of section 40(e)(1) of

24 such Code is amended by striking ‘‘during which the

25 Highway Trust Fund financing rate under section

26 4081(a)(2) is not in effect’’ and inserting ‘‘during
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1 which the rates of tax specified in section

2 4081(a)(2)(A) are not in effect’’.

3 (2) The last sentence of subparagraph (A) of

4 section 9503(c)(2) of such Code is amended by strik5 ing ‘‘by taking into account only the Highway Trust

6 Fund financing rate applicable to any fuel’’ and in7 serting ‘‘by taking into account only the portion of

8 the taxes which are deposited into the Highway

9 Trust Fund’’.

10 (3) Subsection (f) of section 9503 of such Code

11 is hereby repealed.

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

13 this section shall apply to taxes imposed after December

14 31, 1996.

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