Repeal and Rebuild Act of 2014

To amend the Internal Revenue Code of 1986 to repeal the gas tax and rebuild our roads and bridges. 1. Short title This Act may be cited as the Repeal and Rebuild Act of 2014 2. Repeal of excise tax on gasoline (a) In general Section 4081(a)(2)(A)(i) 18.3 cents per gallon 0 cents per gallon (b) Conforming amendments (1) Section 4081(d)(1) clauses (i) and clause (2) Section 4041(a)(2)(B)(i) the rate of tax specified in section 4081(a)(2)(A)(i) which is in effect at the time of such sale or use, 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. 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) (3) Section 6412(a)(1) (A) in the text by striking 4071 or (B) in the heading by striking Tires and taxable Taxable (4) Section 6416 (5) Section 4218 (A) in subsection (a) by striking (other than a tire taxable under section 4071) (B) by striking subsection (b) and redesignating subsection (c) as subsection (b). (6) Section 4221 (A) in subsection (a) by striking or 4071, (B) in subsection (e) by striking paragraph (2). (7) Section 4051 (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 October 1, 2016 (2) July 1, 2015 January 1, 2017 (3) October 1, 2015 March 31, 2017 4. Double indexation of diesel fuels tax (a) In general Paragraph (2) of section 4081(a) (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 (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 (ix) Annual motor fuel use The term annual motor fuel use (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 (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) The rate 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. 5. Increase in tax on petroleum; transfer to Highway Trust Fund (a) In general Paragraph (1) of section 4611(c) and , and (C) the Highway Trust Fund financing rate. . (b) Rates (1) In general Paragraph (2) of section 4611(c) and , and (C) the Highway Trust Fund financing rate is $6.75 a barrel. . (2) Adjustment for inflation Section 4611(c) (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 (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 (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) and , and (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) and (4) under section 4611(g)(3). . (e) Effective date The amendments made by this section shall take effect on January 1, 2015. 6. Transportation bonds (a) Issuance The Secretary of the Treasury shall, pursuant to subchapter I of chapter 31 (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) (c) Transfers of transportation bond proceeds Section 9503(b) (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 (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 (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 . (e) Conforming amendment Section 9503(e)(5)(B) or the Temporary Transportation Bond Repayment Account (f) Effective date The amendments made by this section shall apply to periods after December 31, 2014.

Summary: Repeal and Rebuild Act of 2014 - Amends the Internal Revenue Code to: (1) repeal the excise tax on gasoline and tires after 2014, (2) impose an additional $6.75 per barrel tax on crude oil and petroleum products, and (3) provide for double indexation (i.e., the sum of the highway construction cost adjustment and the CAFE fuel saved adjustment) of the diesel fuel tax rate. Transfers revenues from the increased petroleum tax to the Highway Trust Fund. Directs the Secretary of the Treasury to issue transportation bonds with a term of 10 years and transfer bond proceeds to the Highway Trust Fund.