I 
110TH CONGRESS 
1ST SESSION H. R. 1569 
To amend the Internal Revenue Code of 1986 to suspend the excise tax 
on highway motor fuels when average United States retail gasoline prices 
exceed $2.75 per gallon. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 19, 2007 
Mr. MCHUGH introduced the following bill; which was referred to the 
Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to suspend 
the excise tax on highway motor fuels when average 
United States retail gasoline prices exceed $2.75 per 
gallon. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Gasoline Tax Relief 
Act of 2007’’. 
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SEC. 2. SUSPENSION OF FUEL TAXES ON HIGHWAY MOTOR 
FUELS WHEN WEEKLY UNITED STATES RE-
TAIL GASOLINE PRICES EXCEED BENCH-
MARK. 
(a) IN GENERAL.—Section 4081 of the Internal Rev-
enue Code of 1986 (relating to imposition of tax on motor 
and aviation fuels) is amended by adding at the end the 
following new subsection: 
‘‘(f) SUSPENSION OF HIGHWAY MOTOR FUEL TAXES 
WHEN RETAIL GASOLINE EXCEEDS BENCHMARK.— 
‘‘(1) IN GENERAL.—During any suspension pe-
riod, the tax imposed by section 4041 or 4081 on 
highway motor fuel shall be suspended. 
‘‘(2) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) SUSPENSION
PERIOD.—The term 
‘suspension period’ means— 
‘‘(i) the 60-day period beginning 7 
days after the date of enactment of this 
subsection, and 
‘‘(ii) after such 60-day period, any pe-
riod— 
‘‘(I) beginning 7 days after the 
date on which the weekly United 
States retail gasoline price for regular 
grade conventional areas (as published 
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ccoleman on PROD1PC60 with BILLS
by the Energy Information Adminis-
tration, Department of Energy), inclu-
sive of such tax, is greater than the 
benchmark price, and 
‘‘(II) ending 7 days after the 
date on which such price (as so pub-
lished), without regard to this sub-
section, does not exceed the bench-
mark price. 
‘‘(B) BENCHMARK
PRICE.—For purposes 
of this subsection— 
‘‘(i) IN GENERAL.—The term ‘bench-
mark price’ means $2.75 per gallon. 
‘‘(ii) ADJUSTMENT FOR INFLATION.— 
In the case of any calendar year beginning 
after 2007, the dollar amount in clause (i) 
shall be increased by an amount equal to— 
‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the cost-of-living adjust-
ment determined under section 1(f)(3) 
for such calendar year, determined by 
substituting ‘calendar year 2006’ for 
‘calendar year 1992’ in subparagraph 
(B) thereof. 
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Any increase determined under subclause 
(II) shall be rounded to the nearest cent. 
‘‘(C) HIGHWAY MOTOR FUEL.—The term 
‘highway motor fuel’ means any fuel subject to 
tax under section 4041 or 4081 other than 
aviation gasoline and aviation-grade kerosene.’’. 
(b) MAINTENANCE
OF TRUST FUNDS DEPOSITS; 
AMOUNTS APPROPRIATED TO TRUST FUNDS TREATED AS 
TAXES.— 
(1) IN
GENERAL.—There is hereby appro-
priated (out of any money in the Treasury not other-
wise appropriated) to each trust fund which would 
(but for this subsection) receive reduced revenues as 
a result of a suspension in a rate of tax by reason 
of section 4081(f)(1) of the Internal Revenue Code 
of 1986 (as added by this section) an amount equal 
to such reduction in revenues. Amounts appropriated 
by the preceding sentence to any trust fund— 
(A) shall be transferred from the general 
fund at such times and in such manner as to 
replicate to the extent possible the transfers 
which would have occurred had subsection (a) 
not been enacted, and 
(B) shall be treated for all purposes of 
Federal law as taxes received under the appro-
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priate section referred to in such section 
4081(f)(1). 
(c) EFFECTIVE DATE.—The amendment made by 
this section shall take effect on the date of the enactment 
of this Act. 
(d) FLOOR STOCK REFUNDS.— 
(1) IN GENERAL.—If— 
(A) before the tax suspension date, tax has 
been imposed under section 4081 of the Inter-
nal Revenue Code of 1986 on any highway 
motor fuel, and 
(B) on such date such fuel is held by a 
dealer and has not been used and is intended 
for sale, 
there shall be credited or refunded (without interest) 
to the person who paid such tax (hereafter in this 
subsection referred to as the ‘‘taxpayer’’) an amount 
equal to the excess of the tax paid by the taxpayer 
over the tax which would be imposed on such fuel 
had the taxable event occurred on such date. 
(2) TIME FOR FILING CLAIMS.—No credit or re-
fund shall be allowed or made under this subsection 
unless— 
(A) claim therefor is filed with the Sec-
retary of the Treasury before the date which is 
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6 months after the tax suspension date based 
on a request submitted to the taxpayer before 
the date which is 3 months after the tax sus-
pension date by the dealer who held the high-
way motor fuel on such date, and 
(B) the taxpayer has repaid or agreed to 
repay the amount so claimed to such dealer or 
has obtained the written consent of such dealer 
to the allowance of the credit or the making of 
the refund. 
(3) EXCEPTION
FOR
FUEL
HELD
IN
RETAIL 
STOCKS.—No credit or refund shall be allowed under 
this subsection with respect to any highway motor 
fuel in retail stocks held at the place where intended 
to be sold at retail. 
(4) DEFINITIONS.—For purposes of this sub-
section— 
(A) TAX
SUSPENSION
DATE.—The term 
‘‘tax suspension date’’ means the first day of 
any suspension period in effect under section 
4081(f) of the Internal Revenue Code of 1986 
(as added by subsection (a) of this section). 
(B) OTHER TERMS.—The terms ‘‘dealer’’ 
and ‘‘held by a dealer’’ have the respective 
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meanings given to such terms by section 6412 
of such Code. 
(5) CERTAIN RULES TO APPLY.—Rules similar 
to the rules of subsections (b) and (c) of section 
6412 of such Code shall apply for purposes of this 
subsection. 
(e) FLOOR STOCKS TAX.— 
(1) IMPOSITION OF TAX.—In the case of any 
highway motor fuel which is held on the tax restora-
tion date by any person, there is hereby imposed a 
floor stocks tax equal to the excess of the tax which 
would be imposed on such fuel had the taxable event 
occurred on such date over the tax (if any) pre-
viously paid (and not credited or refunded) on such 
fuel. 
(2) LIABILITY FOR TAX AND METHOD OF PAY-
MENT.— 
(A) LIABILITY
FOR
TAX.—The person 
holding highway motor fuel on the tax restora-
tion date to which the tax imposed by para-
graph (1) applies shall be liable for such tax. 
(B) METHOD OF PAYMENT.—The tax im-
posed by paragraph (1) shall be paid in such 
manner as the Secretary shall prescribe. 
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(C) TIME
FOR
PAYMENT.—The tax im-
posed by paragraph (1) shall be paid on or be-
fore the 45th day after the tax restoration date. 
(3) DEFINITIONS.—For purposes of this sub-
section— 
(A) TAX RESTORATION DATE.—The term 
‘‘tax restoration date’’ means the first day after 
the end of any suspension period (as defined in 
section 4081(f) of the Internal Revenue Code of 
1986). 
(B) HIGHWAY
MOTOR
FUEL.—The term 
‘‘highway motor fuel’’ has the meaning given to 
such term by section 4081(f) of such Code. 
(C) HELD
BY
A
PERSON.—A highway 
motor fuel shall be considered as held by a per-
son if title thereto has passed to such person 
(whether or not delivery to the person has been 
made). 
(D) SECRETARY.—The term ‘‘Secretary’’ 
means the Secretary of the Treasury or the 
Secretary’s delegate. 
(4) EXCEPTION FOR EXEMPT USES.—The tax 
imposed by paragraph (1) shall not apply to any 
highway motor fuel held by any person exclusively 
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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 im-
posed by paragraph (1) on any highway motor 
fuel held on the tax restoration date by any per-
son 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 sub-
paragraph (A), there shall not be taken into ac-
count any highway motor fuel held by any per-
son 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.— 
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(I) IN
GENERAL.—All persons 
treated as a controlled group shall be 
treated as 1 person. 
(II) CONTROLLED
GROUP.—The 
term ‘‘controlled group’’ has the 
meaning given to such term by sub-
section (a) of section 1563 of such 
Code; except that for such purposes 
the phrase ‘‘more than 50 percent’’ 
shall be substituted for the phrase ‘‘at 
least 80 percent’’ each place it ap-
pears in such subsection. 
(ii) 
NONINCORPORATED
PERSONS 
UNDER COMMON CONTROL.—Under regula-
tions prescribed by the Secretary, prin-
ciples similar to the principles of subpara-
graph (A) shall apply to a group of per-
sons 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 section 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 
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the same extent as if such taxes were imposed by 
such section. 
Æ 
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