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not exceed the rate specified in section 
4081(a)(2)(C)(ii). 
‘‘(B) PAYMENT TO ULTIMATE, REGISTERED 
VENDOR.—The amount which would be paid 
under paragraph (1) with respect to any ker-
osene shall be paid only to the ultimate vendor 
of such kerosene. A payment shall be made to 
such vendor if such vendor— 
‘‘(i) is registered under section 4101, 
and 
‘‘(ii) meets the requirements of sub-
paragraph (A), (B), or (D) of section 
6416(a)(1).’’. 
(3) CONFORMING AMENDMENTS.— 
(A) Section 4041(a)(1)(B) is amended by 
striking the last sentence. 
(B) The heading for subsection (l) of section 
6427 is amended by striking ‘‘, Kerosene and 
Aviation Fuel’’ and inserting ‘‘and Kerosene’’. 
(C) Section 4082(d)(2)(B) is amended by 
striking ‘‘section 6427(l)(5)(B)’’ and inserting 
‘‘section 6427(l)(6)(B)’’. 
(D) Section 6427(i)(4)(A) is amended—
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(i) by striking ‘‘paragraph (4)(B) or 
(5)’’ both places it appears and inserting 
‘‘paragraph (4)(B), (5), or (6)’’, and 
(ii) by striking ‘‘subsection (b)(4) and 
subsection (l)(5)’’ in the last sentence and 
inserting ‘‘subsections (b)(4), (l)(5), and 
(l)(6)’’. 
(E) Paragraph (4) of section 6427(l) is 
amended— 
(i) by striking ‘‘aviation-grade’’ in 
subparagraph (A), 
(ii) 
by 
striking 
‘‘section 
4081(a)(2)(A)(iv)’’ and inserting ‘‘section 
4081(a)(2)(iii)’’, 
(iii) by striking ‘‘aviation-grade ker-
osene’’ in subparagraph (B) and inserting 
‘‘kerosene used in commercial aviation as 
described in subparagraph (A)’’, and 
(iv) by striking ‘‘AVIATION-GRADE KER-
OSENE’’ in the heading thereof and insert-
ing ‘‘KEROSENE
USED
IN
COMMERCIAL 
AVIATION’’. 
(F) Section 6427(l)(6)(B), as redesignated 
by paragraph (2)(B), is amended by striking
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‘‘aviation-grade kerosene’’ and inserting ‘‘ker-
osene used in aviation’’. 
(c) TRANSFERS FROM HIGHWAY TRUST FUND
OF 
TAXES ON FUELS USED IN AVIATION TO AIRPORT AND AIR-
WAY TRUST FUND.— 
(1) IN GENERAL.—Section 9503(c) (relating to 
expenditures from Highway Trust Fund) is amended 
by adding at the end the following new paragraph: 
‘‘(7) TRANSFERS FROM THE TRUST FUND FOR 
CERTAIN AVIATION FUEL TAXES.—The Secretary shall 
pay at least monthly from the Highway Trust Fund 
into the Airport and Airway Trust Fund amounts (as 
determined by the Secretary) equivalent to the taxes 
received on or after October 1, 2005, and before Octo-
ber 1, 2011, under section 4081 with respect to so 
much of the rate of tax as does not exceed— 
‘‘(A) 4.3 cents per gallon of kerosene with 
respect to which a payment has been made by 
the Secretary under section 6427(l)(4), and 
‘‘(B) 21.8 cents per gallon of kerosene with 
respect to which a payment has been made by 
the Secretary under section 6427(l)(5). 
Transfers under the preceding sentence shall be made 
on the basis of estimates by the Secretary, and proper 
adjustments shall be made in the amounts subse-
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quently transferred to the extent prior estimates were 
in excess of or less than the amounts required to be 
transferred.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 9502(a) is amended by striking 
‘‘appropriated or credited to the Airport and 
Airway Trust Fund as provided in this section 
or section 9602(b)’’ and inserting ‘‘appropriated, 
credited, or paid into the Airport and Airway 
Trust Fund as provided in this section, section 
9503(c)(7), or section 9602(b)’’. 
(B) Section 9502(b)(1) is amended— 
(i) by striking ‘‘subsections (c) and (e) 
of section 4041’’ in subparagraph (A) and 
inserting ‘‘section 4041(c)’’, and 
(ii) by striking ‘‘and aviation-grade 
kerosene’’ in subparagraph (C) and insert-
ing ‘‘and kerosene to the extent attributable 
to 
the 
rate 
specified 
in 
section 
4081(a)(2)(C)’’. 
(C) Section 9503(b) is amended by striking 
paragraph (3). 
(d) CERTAIN REFUNDS NOT TRANSFERRED FROM 
AIRPORT AND AIRWAY TRUST FUND.—Section 9502(d)(2) 
(relating to transfers from Airport and Airway Trust Fund
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on account of certain refunds) is amended by inserting 
‘‘(other than subsections (l)(4) and (l)(5) thereof)’’ after ‘‘or 
6427 (relating to fuels not used for taxable purposes)’’. 
(e) EFFECTIVE DATE.—The amendments made by this 
section shall apply to fuels or liquids removed, entered, or 
sold after September 30, 2005. 
SEC. 1562. REPEAL OF ULTIMATE VENDOR REFUND CLAIMS 
WITH RESPECT TO FARMING. 
(a) IN
GENERAL.—Subparagraph (A) of section 
6427(l)(6) (relating to registered vendors to administer 
claims for refund of diesel fuel or kerosene sold to farmers 
and State and local governments), as redesignated by sec-
tion 1561, is amended to read as follows: 
‘‘(A) IN
GENERAL.—Paragraph (1) shall 
not apply to diesel fuel or kerosene used by a 
State or local government.’’. 
(b) CONFORMING AMENDMENT.—The heading of para-
graph (6) of section 6427(l), as so redesignated, is amended 
by striking ‘‘FARMERS AND’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to sales after September 30, 2005. 
SEC. 1563. REFUNDS OF EXCISE TAXES ON EXEMPT SALES 
OF FUEL BY CREDIT CARD. 
(a) REGISTRATION OF PERSON EXTENDING CREDIT ON 
CERTAIN EXEMPT SALES OF FUEL.—Section 4101(a) (re-
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lating to registration) is amended by adding at the end the 
following new paragraph: 
‘‘(4) REGISTRATION
OF
PERSONS
EXTENDING 
CREDIT ON CERTAIN EXEMPT SALES OF FUEL.—The 
Secretary shall require registration by any person 
which— 
‘‘(A) extends credit by credit card to any ul-
timate purchaser described in subparagraph (C) 
or (D) of section 6416(b)(2) for the purchase of 
taxable fuel upon which tax has been imposed 
under section 4041 or 4081, and 
‘‘(B) does not collect the amount of such tax 
from such ultimate purchaser.’’. 
(b) REFUNDS OF TAX ON GASOLINE.— 
(1) IN
GENERAL.—Paragraph (4) of section 
6416(a) (relating to condition to allowance) is 
amended— 
(A) by inserting ‘‘except as provided in sub-
paragraph (B),’’ after ‘‘For purposes of this sub-
section,’’ in subparagraph (A), 
(B) by redesignating subparagraph (B) as 
subparagraph (C) and by inserting after sub-
paragraph (A) the following new subparagraph: 
‘‘(B) CREDIT CARD ISSUER.—For purposes 
of this subsection, if the purchase of gasoline de-
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scribed in subparagraph (A) (determined without 
regard to the registration status of the ultimate 
vendor) is made by means of a credit card issued 
to the ultimate purchaser, paragraph (1) shall 
not apply and the person extending the credit to 
the ultimate purchaser shall be treated as the 
person (and the only person) who paid the tax, 
but only if such person— 
‘‘(i) 
is 
registered 
under 
section 
4101(a)(4), and 
‘‘(ii) has established, under regulations 
prescribed by the Secretary, that such per-
son— 
‘‘(I) has not collected the amount 
of the tax from the person who pur-
chased such article, or 
‘‘(II) has obtained the written 
consent from the ultimate purchaser to 
the allowance of the credit or refund, 
and 
‘‘(iii) has so established that such per-
son— 
‘‘(I) has repaid or agreed to repay 
the amount of the tax to the ultimate 
vendor,
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‘‘(II) has obtained the written 
consent of the ultimate vendor to the 
allowance of the credit or refund, or 
‘‘(III) has otherwise made ar-
rangements which directly or indi-
rectly assure the ultimate vendor of re-
imbursement of such tax. 
If clause (i), (ii), or (iii) is not met by such per-
son extending the credit to the ultimate pur-
chaser, then such person shall collect an amount 
equal to the tax from the ultimate purchaser and 
only such ultimate purchaser may claim such 
credit or refund.’’, 
(C) by striking ‘‘subparagraph (A)’’ in sub-
paragraph (C), as redesignated by paragraph 
(2), and inserting ‘‘subparagraph (A) or (B)’’, 
(D) by inserting ‘‘or credit card issuer’’ 
after ‘‘vendor’’ in subparagraph (C), as so redes-
ignated, and 
(E) by inserting ‘‘OR CREDIT CARD ISSUER’’ 
after ‘‘VENDOR’’ in the heading thereof. 
(2) 
CONFORMING
AMENDMENT.—Section 
6416(b)(2) is amended by adding at the end the fol-
lowing new sentence: ‘‘Subparagraphs (C) and (D) 
shall not apply in the case of any tax imposed on
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gasoline under section 4081 if the requirements of 
subsection (a)(4) are not met.’’ 
(c) DIESEL FUEL OR KEROSENE.—Paragraph (6) of 
section 6427(l) (relating to nontaxable uses of diesel fuel 
and kerosene), as redesignated by section 1561, is amend-
ed— 
(1) by striking ‘‘The amount’’ in subparagraph 
(C) and inserting ‘‘Except as provided in subpara-
graph (D), the amount’’, and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(D) CREDIT CARD ISSUER.—For purposes 
of this paragraph, if the purchase of any fuel de-
scribed in subparagraph (A) (determined without 
regard to the registration status of the ultimate 
vendor) is made by means of a credit card issued 
to the ultimate purchaser, the Secretary shall 
pay to the person extending the credit to the ulti-
mate purchaser the amount which would have 
been paid under paragraph (1) (but for subpara-
graph (A)), but only if such person meets the re-
quirements of clauses (i), (ii), and (iii) of section 
6416(a)(4)(B). If such clause (i), (ii), or (iii) is 
not met by such person extending the credit to 
the ultimate purchaser, then such person shall
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collect an amount equal to the tax from the ulti-
mate purchaser and only such ultimate pur-
chaser may claim such amount.’’. 
(d) CONFORMING PENALTY AMENDMENTS.— 
(1) Section 6206 (relating to special rules appli-
cable to excessive claims under sections 6420, 6421, 
and 6427) is amended— 
(A) by striking ‘‘Any portion’’ in the first 
sentence and inserting ‘‘Any portion of a refund 
made under section 6416(a)(4) and any por-
tion’’, 
(B) by striking ‘‘payments under sections 
6420’’ in the first sentence and inserting ‘‘re-
funds under section 6416(a)(4) and payments 
under sections 6420’’, 
(C) by striking ‘‘section 6420’’ in the second 
sentence and inserting ‘‘section 6416(a)(4), 
6420’’, and 
(D) by striking ‘‘SECTIONS
6420, 6421, 
AND 6427’’ in the heading thereof and inserting 
‘‘CERTAIN SECTIONS’’. 
(2) Section 6675(a) is amended by inserting 
‘‘section 6416(a)(4) (relating to certain sales of gaso-
line),’’ after ‘‘made under’’.
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(3) Section 6675(b)(1) is amended by inserting 
‘‘6416(a)(4),’’ after ‘‘under section’’. 
(4) The item relating to section 6206 in the table 
of sections for subchapter A of chapter 63 is amended 
by striking ‘‘sections 6420, 6421, and 6427’’ and in-
serting ‘‘certain sections’’. 
(e) EFFECTIVE DATE.—The amendments made by this 
section shall apply to sales after December 31, 2005. 
SEC. 1564. ADDITIONAL REQUIREMENT FOR EXEMPT PUR-
CHASES. 
(a) STATE AND LOCAL GOVERNMENTS.— 
(1) Subparagraph (C) of section 6416(b)(2) (re-
lating to specified uses and resales) is amended to 
read as follows: 
‘‘(C) sold to a State or local government for 
the exclusive use of a State or local government 
(as defined in section 4221(d)(4) and certified as 
such by the State) or sold to a qualified volun-
teer fire department (as defined in section 
150(e)(2) and certified as such by the State) for 
its exclusive use;’’. 
(2) Section 4041(g)(2) (relating to other exemp-
tions) is amended by striking ‘‘or the District of Co-
lumbia’’ and inserting ‘‘the District of Columbia, or 
a qualified volunteer fire department (as defined in
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section 150(e)(2)) (and certified as such by the State 
or the District of Columbia)’’. 
(b) NONPROFIT EDUCATIONAL ORGANIZATIONS.— 
(1) Section 6416(b)(2)(D) is amended by insert-
ing ‘‘(as defined in section 4221(d)(5) and certified to 
be in good standing by the State in which such orga-
nization is providing educational services)’’ after ‘‘or-
ganization’’. 
(2) Section 4041(g)(4) is amended— 
(A) by inserting ‘‘(certified to be in good 
standing by the State in which such organiza-
tion is providing educational services)’’ after 
‘‘organization’’ the first place it appears, and 
(B) by striking ‘‘use by a’’ and inserting 
‘‘use by such a’’. 
(c) NONAPPLICATION
OF
CERTIFICATION
REQUIRE-
MENTS FOR THE REFUND OF CERTAIN TAXES.—Section 
6416(b)(2) is amended by adding at the end the following 
new sentence: ‘‘With respect to any tax paid under sub-
chapter D of chapter 32, the certification requirements 
under subparagraphs (C) and (D) shall not apply.’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to sales after December 31, 2005.
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SEC. 1565. REREGISTRATION IN EVENT OF CHANGE IN OWN-
ERSHIP. 
(a) IN GENERAL.—Section 4101(a) (relating to reg-
istration) is amended by adding at the end the following 
new paragraph: 
‘‘(4) REREGISTRATION IN EVENT OF CHANGE IN 
OWNERSHIP.—Under regulations prescribed by the 
Secretary, a person (other than a corporation the 
stock of which is regularly traded on an established 
securities market) shall be required to reregister under 
this section if after a transaction (or series of related 
transactions) more than 50 percent of ownership in-
terests in, or assets of, such person are held by persons 
other than persons (or persons related thereto) who 
held more than 50 percent of such interests or assets 
before the transaction (or series of related trans-
actions).’’. 
(b) CONFORMING AMENDMENTS.— 
(1) CIVIL PENALTY.—Section 6719 (relating to 
failure to register) is amended— 
(A) by inserting ‘‘or reregister’’ after ‘‘reg-
ister’’ each place it appears, 
(B) by inserting ‘‘OR REREGISTER’’ after 
‘‘REGISTER’’ in the heading for subsection (a), 
and
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(C) by inserting ‘‘OR REREGISTER’’ after 
‘‘REGISTER’’ in the heading thereof. 
(2) CRIMINAL PENALTY.—Section 7232 (relating 
to failure to register under section 4101, false rep-
resentations of registration status, etc.) is amended— 
(A) by inserting ‘‘or reregister’’ after ‘‘reg-
ister’’, 
(B) by inserting ‘‘or reregistration’’ after 
‘‘registration’’, and 
(C) by inserting ‘‘OR REREGISTER’’ after 
‘‘REGISTER’’ in the heading thereof. 
(3) ADDITIONAL CIVIL PENALTY.—Section 7272 
(relating to penalty for failure to register) is amend-
ed— 
(A) by inserting ‘‘or reregister’’ after ‘‘fail-
ure to register’’ in subsection (a), 
(B) by inserting ‘‘OR REREGISTER’’ after 
‘‘REGISTER’’ in the heading thereof. 
(3) CLERICAL AMENDMENTS.—The item relating 
to section 6719 in the table of sections for part I of 
subchapter B of chapter 68, the item relating to sec-
tion 7232 in the table of sections for part II of sub-
chapter A of chapter 75, and the item relating to sec-
tion 7272 in the table of sections for subchapter B of
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chapter 75 are each amended by inserting ‘‘or rereg-
ister’’ after ‘‘register’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to actions, or failures to act, after the 
date of the enactment of this Act. 
SEC. 1566. TREATMENT OF DEEP-DRAFT VESSELS. 
(a) IN GENERAL.—On and after the date of the enact-
ment of this Act, the Secretary of the Treasury shall require 
that a vessel described in section 4042(c)(1) of the Internal 
Revenue Code of 1986 be considered a vessel for purposes 
of the registration of the operator of such vessel under sec-
tion 4101 of such Code, unless such operator uses such vessel 
exclusively for purposes of the entry of taxable fuel. 
(b) EXEMPTION FOR DOMESTIC BULK TRANSFERS BY 
DEEP-DRAFT VESSELS.— 
(1) IN GENERAL.—Subparagraph (B) of section 
4081(a)(1) (relating to tax on removal, entry, or sale) 
is amended to read as follows: 
‘‘(B) EXEMPTION FOR BULK TRANSFERS TO 
REGISTERED TERMINALS OR REFINERIES.— 
‘‘(i) IN GENERAL.—The tax imposed by 
this paragraph shall not apply to any re-
moval or entry of a taxable fuel transferred 
in bulk by pipeline or vessel to a terminal 
or refinery if the person removing or enter-
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ing the taxable fuel, the operator of such 
pipeline or vessel (except as provided in 
clause (ii)), and the operator of such ter-
minal or refinery are registered under sec-
tion 4101. 
‘‘(ii) NONAPPLICATION
OF
REGISTRA-
TION TO VESSEL OPERATORS ENTERING BY 
DEEP-DRAFT
VESSEL.—For purposes of 
clause (i), a vessel operator is not required 
to be registered with respect to the entry of 
a taxable fuel transferred in bulk by a vessel 
described in section 4042(c)(1).’’. 
(2) EFFECTIVE DATE.—The amendment made by 
this subsection shall take effect on the date of the en-
actment of this Act. 
SEC. 1567. RECONCILIATION OF ON-LOADED CARGO TO EN-
TERED CARGO. 
(a) IN GENERAL.—Subsection (a) of section 343 of the 
Trade Act of 2002 is amended by inserting at the end the 
following new paragraph: 
‘‘(4) TRANSMISSION
OF
DATA.—Pursuant to 
paragraph (2), not later than 1 year after the date 
of enactment of this paragraph, the Secretary of 
Homeland Security, after consultation with the Sec-
retary of the Treasury, shall establish an electronic
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data interchange system through which the United 
States Customs and Border Protection shall transmit 
to the Internal Revenue Service information per-
taining to cargoes of any taxable fuel (as defined in 
section 4083 of the Internal Revenue Code of 1986) 
that the United States Customs and Border Protec-
tion has obtained electronically under its regulations 
adopted in accordance with paragraph (1). For this 
purpose, not later than 1 year after the date of enact-
ment of this paragraph, all filers of required cargo in-
formation for such taxable fuels (as so defined) must 
provide such information to the United States Cus-
toms and Border Protection through such electronic 
data interchange system.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall take effect on the date of the enactment of this 
Act. 
SEC. 1568. TAXATION OF GASOLINE BLENDSTOCKS AND 
KEROSENE. 
With respect to fuel entered or removed after September 
30, 2005, the Secretary of the Treasury shall, in applying 
section 4083 of the Internal Revenue Code of 1986— 
(1) prohibit the nonbulk entry or removal of any 
gasoline blend stock without the imposition of tax 
under section 4081 of such Code, and