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HR 658 EAS 
duced by the amount of tax that would be imposed 
under section 4041 if no tax under section 4081 had 
been imposed.’’. 
(4) CONFORMING AMENDMENTS.— 
(A) Subparagraph (B) of section 4082(d)(2) 
is amended by striking ‘‘6427(l)(5)(B)’’ and in-
serting ‘‘6427(l)(6)(B)’’. 
(B) Paragraph (4) of section 6427(i) is 
amended— 
(i) by striking ‘‘(4)(C) or (5)’’ and in-
serting ‘‘(4)(B) or (6)’’, and 
(ii) by striking ‘‘, (l)(4)(C)(ii), and 
(l)(5)’’ and inserting ‘‘and (l)(6)’’. 
(C) Subsection (l) of section 6427 is amend-
ed by striking ‘‘DIESEL FUEL AND KEROSENE’’ 
in the heading and inserting ‘‘DIESEL FUEL, 
KEROSENE, AND AVIATION FUEL’’. 
(D) Paragraph (1) of section 6427(l) is 
amended by striking ‘‘paragraph (4)(C)(i)’’ and 
inserting ‘‘paragraph (4)(B)’’. 
(E) Paragraph (4) of section 6427(l) is 
amended— 
(i) by striking ‘‘KEROSENE USED IN 
AVIATION’’ in the heading and inserting
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HR 658 EAS 
‘‘AVIATION-GRADE KEROSENE USED IN COM-
MERCIAL AVIATION’’, and 
(ii) in subparagraph (A)— 
(I) by striking ‘‘kerosene’’ and in-
serting ‘‘aviation-grade kerosene’’, 
(II) by striking ‘‘KEROSENE USED 
IN
COMMERCIAL
AVIATION’’ in the 
heading and inserting ‘‘IN GENERAL’’. 
(d) TRANSFERS TO THE AIRPORT AND AIRWAY TRUST 
FUND.— 
(1) IN GENERAL.—Subparagraph (C) of section 
9502(b)(1) is amended to read as follows: 
‘‘(C) section 4081 with respect to aviation 
gasoline and aviation-grade kerosene, and’’. 
(2) TRANSFERS ON ACCOUNT OF CERTAIN RE-
FUNDS.— 
(A) IN GENERAL.—Subsection (d) of section 
9502 is amended— 
(i) by striking ‘‘(other than subsection 
(l)(4) thereof)’’ in paragraph (2), and 
(ii) by striking ‘‘(other than payments 
made by reason of paragraph (4) of section 
6427(l))’’ in paragraph (3). 
(B) CONFORMING AMENDMENTS.—
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(i) Paragraph (4) of section 9503(b) is 
amended by striking ‘‘or’’ at the end of sub-
paragraph (C), by striking the period at the 
end of subparagraph (D) and inserting a 
comma, and by inserting after subpara-
graph (D) the following new subparagraphs: 
‘‘(E) section 4081 to the extent attributable 
to the rate specified in clause (ii) or (iv) of sec-
tion 4081(a)(2)(A), or 
‘‘(F) section 4041(c).’’. 
(ii) Subsection (c) of section 9503 is 
amended by striking paragraph (5). 
(iii) Subsection (a) of section 9502 is 
amended— 
(I) by striking ‘‘appropriated, 
credited, or paid into’’ and inserting 
‘‘appropriated or credited to’’, and 
(II) 
by 
striking 
‘‘, 
section 
9503(c)(5),’’. 
(e) EFFECTIVE DATE.—The amendments made by this 
section shall apply to fuels removed, entered, or sold after 
March 31, 2011. 
(f) FLOOR STOCKS TAX.— 
(1) IMPOSITION OF TAX.—In the case of avia-
tion-grade kerosene fuel which is held on April 1,
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2011, by any person, there is hereby imposed a floor 
stocks tax on aviation-grade kerosene equal to— 
(A) the tax which would have been imposed 
before such date on such kerosene had the amend-
ments made by this section been in effect at all 
times before such date, reduced by 
(B) the tax imposed before such date on 
such kerosene under section 4081 of the Internal 
Revenue Code of 1986, as in effect on such date. 
(2) LIABILITY FOR TAX AND METHOD OF PAY-
MENT.— 
(A) LIABILITY FOR TAX.—A person holding 
aviation-grade kerosene on April 1, 2011, shall 
be liable for such tax. 
(B) TIME AND 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 shall prescribe. 
(3) TRANSFER OF FLOOR STOCK TAX REVENUES 
TO TRUST FUNDS.—For purposes of determining the 
amount transferred to the Airport and Airway Trust 
Fund, the tax imposed by this subsection shall be 
treated as imposed by section 4081(a)(2)(A)(iv) of the 
Internal Revenue Code of 1986.
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(4) DEFINITIONS.—For purposes of this sub-
section— 
(A) AVIATION-GRADE KEROSENE.—The term 
‘‘aviation-grade kerosene’’ means aviation-grade 
kerosene as such term is used within the mean-
ing of section 4081 of the Internal Revenue Code 
of 1986. 
(B) HELD BY A PERSON.—Aviation-grade 
kerosene 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’’ 
means the Secretary of the Treasury or the Sec-
retary’s delegate. 
(5) EXCEPTION
FOR
EXEMPT
USES.—The tax 
imposed by paragraph (1) shall not apply to any 
aviation-grade kerosene held by any person exclu-
sively for any use to the extent a credit or refund of 
the tax is allowable under the Internal Revenue Code 
of 1986 for such use. 
(6) EXCEPTION FOR CERTAIN AMOUNTS OF AVIA-
TION-GRADE KEROSENE.— 
(A) IN GENERAL.—No tax shall be imposed 
by paragraph (1) on any aviation-grade kerosene 
held on April 1, 2011, by any person if the ag-