Highway Trust Fund Certainty Act

To amend the Internal Revenue Code of 1986 to bring certainty to the funding of the Highway Trust Fund, and for other purposes. 1. Short title This Act may be cited as the Highway Trust Fund Certainty Act 2. Increase in fuels taxes (a) Motor fuels (1) Repeal of termination Section 4081(d) (2) Inflation adjustment Section 4081(a)(2) of such Code is amended— (A) in subparagraph (A)(i) by striking 18.3 cents per gallon 28.4 cents per gallon (B) in subparagraph (A)(iii) by striking 24.3 cents per gallon 34.4 cents per gallon (C) in subparagraph (D) by striking substituting 19.7 cents 24.3 cents substituting 27.9 cents 34.4 cents (D) by adding at the end the following: (E) Adjustment for inflation In the case of a calendar year beginning after December 31, 2015, the rates of tax in subparagraph (A) (i) and (iii) and subparagraph (D) shall each be increased by an amount equal to— (i) such rate, multiplied by (ii) the cost of living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting calendar year 2014 calendar year 1992 Any increase under the preceding sentence shall be rounded to the nearest 0.1 cents. . (b) Special fuels (1) Increase and extension Section 4041 of such Code is amended— (A) in subsection (a)(1)(C)(iii)(I) by striking 7.3 cents per gallon (4.3 cents per gallon after September 30, 2016) 17.4 cents per gallon (B) in subsection (a)(2)(B)(ii) by striking 24.3 cents per gallon 34.4 cents per gallon (C) in subsection (a)(3)(A) by striking 18.3 cents 28.4 cents (2) Adjustment for inflation Section 4041(a) of such Code is amended by adding at the end the following: (4) Adjustment for inflation In the case of a calendar year beginning after December 31, 2015, the rates of tax in paragraphs (1)(C)(iii)(I), (2)(B)(ii), and (3)(A) shall each be increased by an amount equal to— (A) such rate, multiplied by (B) the cost of living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting calendar year 2014 calendar year 1992 Any increase under the preceding sentence shall be rounded to the nearest 0.1 cents. . (3) Certain alcohol fuels (A) Permanent extension Section 4041(m)(1) of such Code is amended— (i) in subparagraph (A) by striking , and before October 1, 2016 (ii) in subparagraph (A)(i) by striking 9.15 cents per gallon 19.25 cents per gallon (iii) in subparagraph (A)(ii) by striking 11.3 cents per gallon 21.4 cents per gallon (iv) by striking subparagraph (B), and (v) by redesignating clauses (i) and (ii) of subparagraph (A) (as amended by clauses (ii) and (iii)) as subparagraphs (A) and (B), respectively, and moving such subparagraphs (as so redesignated) 2 ems to the left. (B) Adjustment for inflation Section 4041(m) of such Code is amended by adding at the end the following: (3) Adjustment for inflation In the case of a calendar year beginning after December 31, 2015, the rates of tax in paragraph (1) (A) and (B) shall each be increased by an amount equal to— (A) such rate, multiplied by (B) the cost of living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting calendar year 2014 calendar year 1992 Any increase under the preceding sentence shall be rounded to the nearest 0.1 cents. . (4) Fuel used in certain buses (A) Permanent extension Section 6427(b)(2)(A) of such Code is amended by striking 7.4 cents 17.5 cents (B) Adjustment for inflation Section 6427(b) of such Code is amended by adding at the end the following: (5) Adjustment for inflation In the case of calendar years beginning January 1, 2016— (A) the rate of tax in paragraph (2)(A) shall be increased by 10.1 cents, and (B) such rate (as increased by subparagraph (A)) shall be increased by an amount equal to such rate (as so increased) multiplied by the cost of living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting calendar year 2014 calendar year 1992 . (c) Effective date The amendments made by this section shall apply to years beginning after December 31, 2015. (d) Floor stocks tax (1) Imposition of tax In the case of any highway motor fuel which is held on January 1, 2016, by any person, there is hereby imposed a floor stocks tax equal to the excess of— (A) the tax which would be imposed on such fuel had the amendments made by this section applied to highway motor fuels for periods before January 1, 2016, over (B) the tax (if any) previously paid (and not credited or refunded) on such fuel. (2) Liability for tax and method of payment (A) Liability for tax The person holding the highway motor fuel on January 1, 2016, to which the tax imposed by paragraph (1) applies shall be liable for such tax. (B) Method of payment The tax imposed by paragraph (1) shall be paid at such time and in such manner as the Secretary of the Treasury (or the Secretary’s delegate) shall prescribe. (3) Definitions For purposes of this subsection— (A) Highway motor fuel The term highway motor fuel (B) Held by a person A highway motor fuel shall be considered as held by a person if title thereto has passed to such person (whether or not delivery to the person has been made). (C) Secretary The term Secretary (4) Exception for exempt uses The tax imposed by paragraph (1) shall not apply to any highway motor fuel held by any person exclusively for any use to the extent a credit or refund of the tax is allowable for such use. (5) Exception for certain amounts of fuel (A) In general No tax shall be imposed by paragraph (1) on any highway motor fuel held on January 1, 2016, by any person if the aggregate amount of such highway motor fuel held by such person on such date does not exceed 2,000 gallons. The preceding sentence shall apply only if such person submits to the Secretary (at the time and in the manner required by the Secretary) such information as the Secretary shall require for purposes of this subparagraph. (B) Exempt fuel For purposes of subparagraph (A), there shall not be taken into account any highway motor fuel held by any person which is exempt from the tax imposed by paragraph (1) by reason of paragraph (4). (C) Controlled groups For purposes of this subsection— (i) Corporations (I) In general All persons treated as a controlled group shall be treated as 1 person. (II) Controlled group The term controlled group more than 50 percent at least 80 percent (ii) Nonincorporated persons under common control Under regulations prescribed by the Secretary, principles similar to the principles of subparagraph (A) shall apply to a group of persons under common control if 1 or more of such persons is not a corporation. (6) Other laws applicable All provisions of law, including penalties, applicable with respect to the taxes imposed by sections 4041 and 4081 of such Code shall, insofar as applicable and not inconsistent with the provisions of this subsection, apply with respect to the floor stock taxes imposed by paragraph (1) to the same extent as if such taxes were imposed by such sections. 3. Working citizens tax relief (a) In general Subpart C of part IV of subchapter A of chapter 1 36A. Working citizens credit (a) Allowance of credit In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this subtitle for the calendar years beginning after December 31, 2015, an amount equal to the lesser of— (1) 3.1 percent of earned income of the taxpayer, or (2) $133 ($266 in the case of a joint return). (b) Limitation based on modified adjusted gross income (1) In general The amount allowable as a credit under subsection (a) (determined without regard to this paragraph and subsection (c)) for the taxable year shall be reduced (but not below zero) by one percent of so much of the taxpayer’s modified adjusted gross income as exceeds $74,950 ($149,900 in the case of a joint return). (2) Modified adjusted gross income For purposes of subparagraph (A), the term modified adjusted gross income (c) Definitions and special rules For purposes of this section— (1) Eligible individual (A) In general The term eligible individual (i) any nonresident alien individual, (ii) any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, and (iii) an estate or trust. (B) Identification number requirement Such term shall not include any individual who does not include on the return of tax for the taxable year— (i) such individual’s social security account number, and (ii) in the case of a joint return, the social security account number of one of the taxpayers on such return. For purposes of the preceding sentence, the social security account number shall not include a TIN issued by the Internal Revenue Service. (2) Earned income The term earned income . (b) Refunds disregarded in the administration of federal programs and federally assisted programs Any credit or refund allowed or made to any individual by reason of section 36A (c) Authority relating to clerical errors Section 6213(g)(2) of such Code is amended by striking and , and (O) an omission of the correct social security account number required under section 36A(c)(1)(B). . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2015. 4. Repayable advances to highway trust fund (a) Repayable advances Section 9503(f) (7) 2015 shortfall advance Out of money in the Treasury not otherwise appropriated, there is hereby appropriated— (A) $8,000,000,000 to the Highway Account (as defined in subsection (e)(5)(B)) in the Highway Trust Fund; and (B) $3,000,000,000 to the Mass Transit Account in the Highway Trust Fund. . (b) Repayment of advances Section 9503(c) of such Code is amended by adding at the end the following: (6) Transfers from highway trust fund for certain repayments of certain advances (A) In general The Secretary shall pay from time to time from the Highway Trust Fund into the general fund of the Treasury amounts equivalent to amounts transferred to the Highway Trust Fund that are attributable to the operation of sections 4041(a)(4), 4041(m)(3), and 4081(a)(2)(E). (B) Limitation No amount shall be transferred under this paragraph after the aggregate amount transferred under subparagraph (A) equals $11,000,000,000. (C) Transfers based on estimates Transfers under subparagraph (A) shall be made on the basis of estimates by the Secretary, and proper adjustments shall be made in amounts subsequently transferred to the extent prior estimates were in excess or less than the amounts required to be transferred. (D) Transfers made proportionally Transfers under subparagraph (A) shall be borne by the Highway Account and the Mass Transit Account in proportion to the respective revenues transferred under subsection (f)(7) to the Highway Account and the Mass Transit Account. . (c) Effective date The amendments made by this section shall take effect on August 1, 2015.

Summary: Highway Trust Fund Certainty Act This bill amends the Internal Revenue Code to: (1) increase the current excise tax rates on gasoline and diesel fuel or kerosene and special fuels and to repeal the reversion of increased fuel tax rates to 4.3 cents per gallon after September 30, 2016, (2) make permanent the excise tax on certain alcohol fuels and fuels used in certain buses, (3) allow U.S. citizens a new tax credit after 2015 for the lesser of 3.1% of earned income or $133, and (4) allow additional appropriations to the Highway and Mass Transit Accounts of the Highway Trust Fund and provide for repayments from such Fund to the general fund of the Treasury for amounts advanced to such Fund.