H. R. 3—794
educational institutions that strive to develop and enhance 
technologies, including digital project simulation, that save 
money and time by using efficient methods of design, construc-
tion, and operation for transportation infrastructure projects. 
(c) REPORT.—
(1) IN GENERAL.—Not later than one year after completion 
of the project described in subsection (a), the Secretary shall 
submit to the Committee on Transportation and Infrastructure 
of the House of Representatives and the Committee on Environ-
ment and Public Works of the Senate a detailed report com-
paring the application of digital project simulation for such 
project to more traditional approaches to planning, design, and 
construction. 
(2) PERFORMANCE MEASURES AND RECOMMENDATIONS.—The 
report shall also include—
(A) a description of the performance measures applied, 
including cost comparisons and length of construction; and 
(B) recommendations, if any, for administrative or 
legislative action. 
(d) DEFINITION.—For purposes of this section, the term ‘‘digital 
project simulation’’ means computer-assisted three-dimensional 
technology and digital lifecycle management. 
SEC. 10211. ENVIRONMENTAL PROGRAMS. 
(a) OKLAHOMA.—Notwithstanding any other provision of law, 
if the Administrator of the Environmental Protection Agency 
(referred to in this section as the ‘‘Administrator’’) determines that 
a regulatory program submitted by the State of Oklahoma for 
approval by the Administrator under a law administered by the 
Administrator meets applicable requirements of the law, and the 
Administrator approves the State to administer the State program 
under the law with respect to areas in the State that are not 
Indian country, on request of the State, the Administrator shall 
approve the State to administer the State program in the areas 
of the State that are in Indian country, without any further dem-
onstration of authority by the State. 
(b) TREATMENT AS STATE.—Notwithstanding any other provision 
of law, the Administrator may treat an Indian tribe in the State 
of Oklahoma as a State under a law administered by the Adminis-
trator only if—
(1) the Indian tribe meets requirements under the law 
to be treated as a State; and 
(2) the Indian tribe and the agency of the State of Okla-
homa with federally delegated program authority enter into 
a cooperative agreement, subject to review and approval of 
the Administrator after notice and opportunity for public 
hearing, under which the Indian tribe and that State agency 
agree to treatment of the Indian tribe as a State and to jointly 
plan administer program requirements. 
SEC. 10212. RESCISSION OF UNOBLIGATED BALANCES. 
(a) IN GENERAL.—On September 30, 2009, $8,543,000,000 of 
the unobligated balances of funds apportioned before such date 
to the States for the Interstate maintenance, national highway 
system, bridge, congestion mitigation and air quality improvement, 
surface transportation (other than the STP set-aside programs), 
metropolitan planning, minimum guarantee, Appalachian develop-
ment highway system, recreational trails, safe routes to school,
H. R. 3—795
freight intermodal connectors, coordinated border infrastructure, 
high risk rural road, and highway safety improvement programs, 
and each of the STP set-aside programs, is rescinded. 
(b) ALLOCATION AMONG STATES.—The Secretary shall determine 
each State’s share of the amount to be rescinded by subsection 
(a) on September 30, 2009, by multiplying $8,543,000,000 by the 
ratio of the aggregate amount apportioned to such State for fiscal 
years 2004 through 2009 for all the programs referred to in sub-
section (a) to the aggregate amount apportioned to all States for 
such fiscal years for those programs. 
(c) CALCULATIONS.—To determine the allocation of the amount 
to be rescinded for a State under subsection (b) among the programs 
referred to in subsection (a), the Secretary shall make the following 
calculations: 
(1) The Secretary shall multiply such amount to be 
rescinded by the ratio that the aggregate amount of unobligated 
funds available to the State on September 30, 2009, for each 
such program bears to the aggregate amount of unobligated 
funds available to the State on September 30, 2009, for all 
such programs. 
(2) The Secretary shall multiply such amount to be 
rescinded by the ratio that the aggregate of the amount appor-
tioned to the State for each such program for fiscal years 
2004 through 2009 bears to the aggregate amount apportioned 
to the State for all such programs for fiscal years 2004 through 
2009. 
(d) ALLOCATION AMONG PROGRAMS.—
(1) IN GENERAL.—The Secretary, in consultation with the 
State, shall rescind for the State from each program referred 
to in subsection (a) the amount determined for the program 
under subsection (c)(1). 
(2) SPECIAL RULE.—
(A) RESTORATION OF FUNDS FOR COVERED PROGRAMS.—
If the rescission calculated under subsection (c)(1) for a 
covered program exceeds the amount calculated for the 
covered program under subsection (c)(2), the State shall 
immediately restore to the apportionment account for the 
covered program from the unobligated balances of programs 
referred to in subsection (a) (other than covered programs) 
the amount of funds required so that the net rescission 
from the covered program does not exceed the amount 
calculated for the covered program under subsection (c)(2). 
(B) TREATMENT
OF
RESTORED
FUNDS.—Any funds 
restored under subparagraph (A) shall be deemed to be 
the funds that were rescinded for the purposes of obligation. 
(3) COVERED
PROGRAM
DEFINED.—In paragraph (2), the 
term ‘‘covered program’’ means a program authorized under 
sections 130 and 152 of title 23, United States Code, paragraph 
(2) or (3) of section 133(d) of that title, section 144 of that 
title, section 149 of that title, or section 1404 of this Act. 
(e) TREATMENT OF SAFETY PROGRAMS.—In making calculations 
under subsections (c)(1), (c)(2), and (d)(2), the Secretary shall treat 
the STP set-aside program for safety programs and the highway 
safety improvement program as a single program. 
(f) STP SET-ASIDE PROGRAM DEFINED.—In this section, the 
term ‘‘STP set-aside program’’ means the amount set aside under 
section 133(d) of title 23, United States Code, for each of the
H. R. 3—796
safety programs, transportation enhancement activities, and divi-
sion between urbanized areas of over 200,000 population and other 
areas. 
SEC. 10213. TRIBAL LAND. 
Section 707(a) of Public Law 106–568 (25 U.S.C. 1041e(a)) 
is amended—
(1) in paragraph (1) by striking ‘‘(1) IN GENERAL.—’’; and 
(2) by striking paragraph (2). 
Subtitle C—Specific Vehicle Safety-related 
Rulings 
SEC. 10301. VEHICLE ROLLOVER PREVENTION AND CRASH MITIGA-
TION. 
(a) IN GENERAL.—Subchapter II of chapter 301 is amended 
by adding at the end the following: 
‘‘§ 30128. Vehicle rollover prevention and crash mitigation 
‘‘(a) IN GENERAL.—The Secretary shall initiate rulemaking pro-
ceedings, for the purpose of establishing rules or standards that 
will reduce vehicle rollover crashes and mitigate deaths and injuries 
associated with such crashes for motor vehicles with a gross vehicle 
weight rating of not more than 10,000 pounds. 
‘‘(b) ROLLOVER
PREVENTION.—One of the rulemaking pro-
ceedings initiated under subsection (a) shall be to establish perform-
ance criteria to reduce the occurrence of rollovers consistent with 
stability enhancing technologies. The Secretary shall issue a pro-
posed rule in this proceeding by rule by October 1, 2006, and 
a final rule by April 1, 2009. 
‘‘(c) OCCUPANT EJECTION PREVENTION.—
‘‘(1) IN GENERAL.—The Secretary shall also initiate a rule-
making proceeding to establish performance standards to 
reduce complete and partial ejections of vehicle occupants from 
outboard seating positions. In formulating the standards the 
Secretary shall consider various ejection mitigation systems. 
The Secretary shall issue a final rule under this paragraph 
no later than October 1, 2009. 
‘‘(2) DOOR
LOCKS
AND
DOOR
RETENTION.—The Secretary 
shall complete the rulemaking proceeding initiated to upgrade 
Federal Motor Vehicle Safety Standard No. 206, relating to 
door locks and door retention, no later than 30 months after 
the date of enactment of this section. 
‘‘(d) PROTECTION OF OCCUPANTS.—One of the rulemaking pro-
ceedings initiated under subsection (a) shall be to establish perform-
ance criteria to upgrade Federal Motor Vehicle Safety Standard 
No. 216 relating to roof strength for driver and passenger sides. 
The Secretary may consider industry and independent dynamic 
tests that realistically duplicate the actual forces transmitted during 
a rollover crash. The Secretary shall issue a proposed rule by 
December 31, 2005, and a final rule by July 1, 2008. 
‘‘(e) DEADLINES.—If the Secretary determines that the deadline 
for a final rule under this section cannot be met, the Secretary 
shall—
H. R. 3—797
‘‘(1) notify the Senate Committee on Commerce, Science, 
and Transportation and the House of Representatives Com-
mittee on Energy and Commerce and explain why that deadline 
cannot be met; and 
‘‘(2) establish a new deadline.’’. 
SEC. 10302. SIDE-IMPACT CRASH PROTECTION RULEMAKING. 
(a) RULEMAKING.—The Secretary shall complete a rulemaking 
proceeding under chapter 301 of title 49, United States Code, to 
establish a standard designed to enhance passenger motor vehicle 
occupant protection, in all seating positions, in side impact crashes. 
The Secretary shall issue a final rule by July 1, 2008. 
(b) DEADLINES.—If the Secretary determines that the deadline 
for a final rule under this section cannot be met, the Secretary 
shall—
(1) notify the Senate Committee on Commerce, Science, 
and Transportation and the House of Representatives Com-
mittee on Energy and Commerce and explain why that deadline 
cannot be met; and 
(2) establish a new deadline. 
SEC. 10303. TIRE RESEARCH. 
Within 2 years after the date of enactment of this Act, the 
Secretary shall transmit a report to the Senate Committee on 
Commerce, Science, and Transportation and the House of Rep-
resentatives Committee on Energy and Commerce on research con-
ducted to address tire aging. The report shall include a summary 
of any Federal agency findings, activities, conclusions, and rec-
ommendations concerning tire aging and recommendations for 
potential rulemaking regarding tire aging. 
(a) CONFORMING
AMENDMENT.—The chapter analysis for 
chapter 301 is amended by inserting after the item relating to 
section 30127 the following:
‘‘30128. Vehicle accident ejection protection.’’.
SEC. 10304. VEHICLE BACKOVER AVOIDANCE TECHNOLOGY STUDY. 
(a) IN GENERAL.—The Administrator of the National Highway 
Traffic Safety Administration shall conduct a study of effective 
methods for reducing the incidence of injury and death outside 
of parked passenger motor vehicles with a gross vehicle weight 
rating of not more than 10,000 pounds attributable to movement 
of such vehicles. The Administrator shall complete the study within 
1 year after the date of enactment of this Act and report its 
findings to the Senate Committee on Commerce, Science, and 
Transportation and the House of Representatives Committee on 
Energy and Commerce not later than 15 months after the date 
of enactment of this Act. 
(b) SPECIFIC ISSUES TO BE COVERED.—The study required by 
subsection (a) shall—
(1) include an analysis of backover prevention technology; 
(2) identify, evaluate, and compare the available tech-
nologies for detecting people or objects behind a motor vehicle 
with a gross vehicle weight rating of not more than 10,000 
pounds for their accuracy, effectiveness, cost, and feasibility 
for installation; and
H. R. 3—798
(3) provide an estimate of cost savings that would result 
from widespread use of backover prevention devices and tech-
nologies in motor vehicles with a gross vehicle weight rating 
of not more than 10,000 pounds, including savings attributable 
to the prevention of—
(A) injuries and fatalities; and 
(B) damage to bumpers and other motor vehicle parts 
and damage to other objects. 
SEC. 10305. NONTRAFFIC INCIDENT DATA COLLECTION. 
(a) IN GENERAL.—In conjunction with the study required in 
section 10304, the National Highway Traffic Safety Administration 
shall establish a method to collect and maintain data on the number 
and types of injuries and deaths involving motor vehicles with 
a gross vehicle weight rating of not more than 10,000 pounds 
in non-traffic incidents. 
(b) DATA COLLECTION
AND PUBLICATION.—The Secretary of 
Transportation shall publish the data collected under subsection 
(a) no less frequently than biennially. 
SEC. 10306. STUDY OF SAFETY BELT USE TECHNOLOGIES. 
The Secretary shall conduct a review of safety belt use tech-
nologies to consider possible revisions in strategies for achieving 
further gains in safety belt use. The Secretary shall complete the 
study by July 1, 2008. 
SEC. 10307. AMENDMENT OF AUTOMOBILE INFORMATION DISCLOSURE 
ACT. 
(a) SAFETY LABELING REQUIREMENT.—Section 3 of the Auto-
mobile Information Disclosure Act (15 U.S.C. 1232) is amended—
(1) by striking ‘‘and’’ after the semicolon in subsection 
(e); 
(2) by inserting ‘‘and’’ after the semicolon in subsection 
(f)(3); 
(3) by striking ‘‘(3).’’ in subsection (f)(4) and inserting ‘‘(3);’’; 
and 
(4) by adding at the end the following: 
‘‘(g) if one or more safety ratings for such automobile have 
been assigned and formally published or released by the National 
Highway Traffic Safety Administration under the New Car Assess-
ment Program, information about safety ratings that—
‘‘(1) includes a graphic depiction of the number of stars, 
or other applicable rating, that corresponds to each such 
assigned safety rating displayed in a clearly differentiated 
fashion indicating the maximum possible safety rating; 
‘‘(2) refers to frontal impact crash tests, side impact crash 
tests, and rollover resistance tests (whether or not such auto-
mobile has been assigned a safety rating for such tests); 
‘‘(3) contains information describing the nature and 
meaning of the crash test data presented and a reference to 
additional 
vehicle 
safety 
resources, 
including 
http://
www.safecar.gov; and 
‘‘(4) is presented in a legible, visible, and prominent fashion 
and covers at least—
‘‘(A) 8 percent of the total area of the label; or 
‘‘(B) an area with a minimum length of 41⁄2 inches 
and a minimum height of 31⁄2 inches; and
H. R. 3—799
‘‘(h) if an automobile has not been tested by the National 
Highway Traffic Safety Administration under the New Car Assess-
ment Program, or safety ratings for such automobile have not 
been assigned in one or more rating categories, a statement to 
that effect.’’. 
(b) REGULATIONS.—The Secretary of Transportation shall issue 
regulations to ensure that the labeling requirements under sub-
sections (g) and (h) of section 3 of the Automobile Information 
Disclosure Act, as added by subsection (a), are implemented by 
September 1, 2007. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated to the Secretary of Transportation, to accelerate 
the testing processes and increasing the number of vehicles tested 
under the New Car Assessment Program of the National Highway 
Traffic Safety Administration—
(1) $15,000,000 for fiscal year 2006; 
(2) $8,134,065 for fiscal year 2007; 
(3) $8,418,760 for fiscal year 2008; 
(4) $8,713,410 for fiscal year 2009; and 
(5) $9,018,385 for fiscal year 2010. 
SEC. 10308. POWER WINDOW SWITCHES. 
The Secretary shall upgrade Federal Motor Vehicle Safety 
Standard 118 to require that power windows in motor vehicles 
not in excess of 10,000 pounds have switches that raise the window 
only when the switch is pulled up or out. The Secretary shall 
issue a final rule implementing this section by April 1, 2007. 
SEC. 10309. 15-PASSENGER VAN SAFETY. 
(a) TESTING.—
(1) IN
GENERAL.—The Secretary of Transportation shall 
require the testing of 15-passenger vans as part of the rollover 
resistance program of the National Highway Traffic Safety 
Administration’s new car assessment program. 
(2) 15-PASSENGER VAN DEFINED.—In this subsection, the 
term ‘‘15-passenger van’’ means a vehicle that seats 10 to 
14 passengers, not including the driver. 
(b) PROHIBITION OF PURCHASE, RENTAL, OR LEASE OF NONCOM-
PLYING 15-PASSENGER VANS FOR SCHOOL USE.—Section 30112(a) 
is amended—
(1) by inserting ‘‘(1)’’ before ‘‘Except as provided’’; and 
(2) by adding at the end the following: 
‘‘(2) Except as provided in this section, sections 30113 and 
30114 of this title, and subchapter III of this chapter, a school 
or school system may not purchase or lease a new 15-passenger 
van if it will be used significantly by, or on behalf of, the school 
or school system to transport preprimary, primary, or secondary 
school students to or from school or an event related to school, 
unless the 15-passenger van complies with the motor vehicle stand-
ards prescribed for school buses and multifunction school activity 
buses under this title. This paragraph does not apply to the pur-
chase or lease of a 15-passenger van under a contract executed 
before the date of enactment of this paragraph.’’. 
(c) PENALTY.—Section 30165(a) is amended—
(1) by redesignating paragraph (2) as paragraph (3); and 
(2) by inserting after paragraph (1) the following: 
‘‘(2) SCHOOL BUSES.—
H. R. 3—800
‘‘(A) IN GENERAL.—Notwithstanding paragraph (1), the 
maximum amount of a civil penalty under this paragraph 
shall be $10,000 in the case of—
‘‘(i) the manufacture, sale, offer for sale, introduction 
or delivery for introduction into interstate commerce, or 
importation of a school bus or school bus equipment (as 
those terms are defined in section 30125(a) of this title) 
in violation of section 30112(a)(1) of this title; or 
‘‘(ii) a violation of section 30112(a)(2) of this title. 
‘‘(B) RELATED SERIES OF VIOLATIONS.—A separate viola-
tion occurs for each motor vehicle or item of motor vehicle 
equipment and for each failure or refusal to allow or per-
form an act required by that section. The maximum penalty 
under this paragraph for a related series of violations is 
$15,000,000.’’. 
SEC. 10310. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to the Secretary to 
carry out this subtitle, chapter 301 of title 49, and part C of 
subtitle VI of title 49, United States Code—
(1) $136,000,000 for fiscal year 2006; 
(2) $142,800,000 for fiscal year 2007; 
(3) $149,900,000 for fiscal year 2008; and 
(4) $157,400,000 for fiscal year 2009.
TITLE 
XI—HIGHWAY 
REAUTHORIZA-
TION AND EXCISE TAX SIMPLIFICA-
TION 
SEC. 11100. AMENDMENT OF 1986 CODE. 
Except as otherwise expressly provided, whenever in this title 
an amendment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference shall 
be considered to be made to a section or other provision of the 
Internal Revenue Code of 1986. 
Subtitle A—Trust Fund Reauthorization 
SEC. 11101. EXTENSION OF HIGHWAY-RELATED TAXES AND TRUST 
FUNDS. 
(a) EXTENSION OF TAXES.—
(1) IN
GENERAL.—The following provisions are each 
amended by striking ‘‘2005’’ each place it appears and inserting 
‘‘2011’’: 
(A) Section 4041(a)(1)(C)(iii)(I) (relating to rate of tax 
on certain buses). 
(B) Section 4041(a)(2)(B) (relating to rate of tax on 
special motor fuels). 
(C) Section 4041(m)(1) (relating to certain alcohol 
fuels). 
(D) Section 4051(c) (relating to termination of tax on 
heavy trucks and trailers). 
(E) Section 4071(d) (relating to termination of tax on 
tires).
H. R. 3—801
(F) Section 4081(d)(1) (relating to termination of tax 
on gasoline, diesel fuel, and kerosene). 
(2) EXTENSION OF TAX, ETC., ON USE OF CERTAIN HEAVY 
VEHICLES.—The following provisions are each amended by 
striking ‘‘2006’’ each place it appears and inserting ‘‘2011’’: 
(A) Section 4481(f) (relating to period tax in effect). 
(B) Section 4482(c)(4) (relating to taxable period). 
(C) Section 4482(d) (relating to special rule for taxable 
period in which termination date occurs). 
(3) FLOOR STOCKS REFUNDS.—Section 6412(a)(1) (relating 
to floor stocks refunds) is amended—
(A) by striking ‘‘2005’’ each place it appears and 
inserting ‘‘2011’’, and 
(B) by striking ‘‘2006’’ each place it appears and 
inserting ‘‘2012’’. 
(b) EXTENSION OF CERTAIN EXEMPTIONS.—
(1) CERTAIN TAX-FREE SALES.—Section 4221(a) (relating to 
certain tax-free sales) is amended by striking ‘‘2005’’ and 
inserting ‘‘2011’’. 
(2) TERMINATION OF EXEMPTIONS FOR HIGHWAY USE TAX.—
Section 4483(h) (relating to termination of exemptions for high-
way use tax) is amended by striking ‘‘2006’’ and inserting 
‘‘2011’’. 
(c) EXTENSION OF TRANSFERS OF CERTAIN TAXES.—
(1) IN GENERAL.—Paragraphs (1) and (2) of subsection (b), 
and paragraphs (2) and (3) of subsection (c), of section 9503 
(relating to the Highway Trust Fund) are each amended—
(A) by striking ‘‘2005’’ each place it appears and 
inserting ‘‘2011’’, and 
(B) by striking ‘‘2006’’ each place it appears and 
inserting ‘‘2012’’. 
(2) MOTORBOAT AND SMALL-ENGINE FUEL TAX TRANSFERS.—
(A) 
IN
GENERAL.—Subparagraph 
(A) 
of 
section 
9503(c)(5) is amended by striking ‘‘2005’’ and inserting 
‘‘2011’’. 
(B) CONFORMING AMENDMENTS TO LAND AND WATER 
CONSERVATION
FUND.—Section 201(b) of the Land and 
Water Conservation Fund Act of 1965 (16 U.S.C. 460l–
11(b)) is amended—
(i) by striking ‘‘2003’’ and inserting ‘‘2011’’, and 
(ii) by striking ‘‘2004’’ each place it appears and 
inserting ‘‘2012’’. 
(d) EXTENSION AND EXPANSION OF EXPENDITURES FROM TRUST 
FUNDS.—
(1) HIGHWAY TRUST FUND.—
(A) HIGHWAY
ACCOUNT.—Paragraph (1) of section 
9503(c) of such Code is amended to read as follows: 
‘‘(1) FEDERAL-AID HIGHWAY PROGRAM.—Except as provided 
in subsection (e), amounts in the Highway Trust Fund shall 
be available, as provided by appropriation Acts, for making 
expenditures before September 30, 2009 (October 1, 2009, in 
the case of expenditures for administrative expenses), to meet 
those obligations of the United States heretofore or hereafter 
incurred which are authorized to be paid out of the Highway 
Trust Fund under the Safe, Accountable, Flexible, Efficient 
Transportation Equity Act: A Legacy for Users or any other 
provision of law which was referred to in this paragraph before
H. R. 3—802
the date of the enactment of such Act (as such Act and provi-
sions of law are in effect on the date of the enactment of 
such Act).’’. 
(B) MASS TRANSIT ACCOUNT.—Paragraph (3) of section 
9503(e) of such Code is amended to read as follows: 
‘‘(3) EXPENDITURES FROM ACCOUNT.—Amounts in the Mass 
Transit Account shall be available, as provided by appropriation 
Acts, for making capital or capital related expenditures 
(including capital expenditures for new projects) before October 
1, 2009, in accordance with the Safe, Accountable, Flexible, 
Efficient Transportation Equity Act: A Legacy for Users or 
any other provision of law which was referred to in this para-
graph before the date of the enactment of such Act (as such 
Act and provisions of law are in effect on the date of the 
enactment of such Act).’’. 
(C) EXCEPTION
TO
LIMITATION
ON
TRANSFERS.—
Subparagraph (B) of section 9503(b)(6) is amended by 
striking ‘‘July 31, 2005’’ and inserting ‘‘September 30, 2009 
(October 1, 2009, in the case of expenditures for administra-
tive expenses)’’. 
(2) AQUATIC RESOURCES TRUST FUND.—
(A) SPORT FISH RESTORATION ACCOUNT.—Paragraph (2) 
of section 9504(b) is amended by striking ‘‘Surface 
Transportation Extension Act of 2005, Part V’’ each place 
it appears and inserting ‘‘Safe, Accountable, Flexible, Effi-
cient Transportation Equity Act: A Legacy for Users’’. 
(B) EXCEPTION TO LIMITATION ON TRANSFERS.—Para-
graph (2) of section 9504(d) is amended by striking ‘‘July 
31, 2005’’ and inserting ‘‘October 1, 2009’’. 
(e) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on the date of the enactment of this Act. 
SEC. 11102. MODIFICATION OF ADJUSTMENTS OF APPORTIONMENTS. 
(a) IN GENERAL.—Section 9503(d) (relating to adjustments for 
apportionments) is amended—
(1) by striking ‘‘24-month’’ in paragraph (1)(B) and inserting 
‘‘48-month’’, and 
(2) by striking ‘‘2 YEARS’ ’’ IN THE HEADING FOR PARAGRAPH 
(3) AND INSERTING ‘‘4 YEARS’ ’’. 
(b) MEASUREMENT OF NET HIGHWAY RECEIPTS.—Section 9503(d) 
is amended by redesignating paragraph (6) as paragraph (7) and 
by inserting after paragraph (5) the following new paragraph: 
‘‘(6) MEASUREMENT OF NET HIGHWAY RECEIPTS.—For pur-
poses of making any estimate under paragraph (1) of net high-
way receipts for periods ending after the date specified in 
subsection (b)(1), the Secretary shall treat—
‘‘(A) each expiring provision of subsection (b) which 
is related to appropriations or transfers to the Highway 
Trust Fund to have been extended through the end of 
the 48-month period referred to in paragraph (1)(B), and 
‘‘(B) with respect to each tax imposed under the sec-
tions referred to in subsection (b)(1), the rate of such tax 
during the 48-month period referred to in paragraph (1)(B) 
to be the same as the rate of such tax as in effect on 
the date of such estimate.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on the date of the enactment of this Act.
H. R. 3—803
Subtitle B—Excise Tax Reform and 
Simplification 
PART 1—HIGHWAY EXCISE TAXES 
SEC. 11111. MODIFICATION OF GAS GUZZLER TAX. 
(a) UNIFORM APPLICATION OF TAX.—Subparagraph (A) of section 
4064(b)(1) (defining automobile) is amended by striking the second 
sentence. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall take effect on October 1, 2005. 
SEC. 11112. EXCLUSION FOR TRACTORS WEIGHING 19,500 POUNDS OR 
LESS FROM FEDERAL EXCISE TAX ON HEAVY TRUCKS 
AND TRAILERS. 
(a) IN GENERAL.—Subsection (a) of section 4051 (relating to 
imposition of tax) is amended by redesignating paragraph (4) as 
paragraph (5) and by inserting after paragraph (3) the following 
new paragraph: 
‘‘(4) EXCLUSION FOR TRACTORS WEIGHING 19,500 POUNDS OR 
LESS.—The tax imposed by paragraph (1) shall not apply to 
tractors of the kind chiefly used for highway transportation 
in combination with a trailer or semitrailer if—
‘‘(A) such tractor has a gross vehicle weight of 19,500 
pounds or less (as determined by the Secretary), and 
‘‘(B) such tractor, in combination with a trailer or 
semitrailer, has a gross combined weight of 33,000 pounds 
or less (as determined by the Secretary).’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to sales after September 30, 2005. 
SEC. 11113. VOLUMETRIC EXCISE TAX CREDIT FOR ALTERNATIVE 
FUELS. 
(a) IMPOSITION OF TAX.—
(1) IN
GENERAL.—Section 4041(a)(2)(B) (relating to rate 
of tax) is amended—
(A) by adding ‘‘and’’ at the end of clause (i), 
(B) by striking clauses (ii) and (iii), 
(C) by striking the last sentence, and 
(D) by adding after clause (i) the following new clause: 
‘‘(ii) in the case of liquefied natural gas, any liquid 
fuel (other than ethanol and methanol) derived from 
coal (including peat), and liquid hydrocarbons derived 
from biomass (as defined in section 29(c)(3)), 24.3 cents 
per gallon.’’. 
(2) TREATMENT
OF
COMPRESSED
NATURAL
GAS.—Section 
4041(a)(3) (relating to compressed natural gas) is amended—
(A) by striking ‘‘48.54 cents per MCF (determined at 
standard temperature and pressure)’’ in subparagraph (A) 
and inserting ‘‘18.3 cents per energy equivalent of a gallon 
of gasoline’’, and 
(B) by striking ‘‘MCF’’ in subparagraph (C) and 
inserting ‘‘energy equivalent of a gallon of gasoline’’. 
(3) NEW REFERENCE.—The heading for paragraph (2) of 
section 4041(a) is amended by striking ‘‘SPECIAL MOTOR FUELS’’ 
and inserting ‘‘ALTERNATIVE FUELS’’.
H. R. 3—804
(b) CREDIT
FOR ALTERNATIVE FUEL
AND ALTERNATIVE FUEL 
MIXTURES.—
(1) IN
GENERAL.—Section 6426(a) (relating to allowance 
of credits) is amended to read as follows: 
‘‘(a) ALLOWANCE
OF CREDITS.—There shall be allowed as a 
credit—
‘‘(1) against the tax imposed by section 4081 an amount 
equal to the sum of the credits described in subsections (b), 
(c), and (e), and 
‘‘(2) against the tax imposed by section 4041 an amount 
equal to the sum of the credits described in subsection (d). 
No credit shall be allowed in the case of the credits described 
in subsections (d) and (e) unless the taxpayer is registered under 
section 4101.’’. 
(2) ALTERNATIVE
FUEL
AND
ALTERNATIVE
FUEL
MIXTURE 
CREDIT.—Section 6426 (relating to credit for alcohol fuel and 
biodiesel mixtures) is amended by redesignating subsections 
(d) and (e) as subsections (f) and (g) and by inserting after 
subsection (c) the following new subsections: 
‘‘(d) ALTERNATIVE FUEL CREDIT.—
‘‘(1) IN GENERAL.—For purposes of this section, the alter-
native fuel credit is the product of 50 cents and the number 
of gallons of an alternative fuel or gasoline gallon equivalents 
of a nonliquid alternative fuel sold by the taxpayer for use 
as a fuel in a motor vehicle or motorboat, or so used by the 
taxpayer. 
‘‘(2) ALTERNATIVE FUEL.—For purposes of this section, the 
term ‘alternative fuel’ means—
‘‘(A) liquefied petroleum gas, 
‘‘(B) P Series Fuels (as defined by the Secretary of 
Energy under section 13211(2) of title 42, United States 
Code), 
‘‘(C) compressed or liquefied natural gas, 
‘‘(D) liquefied hydrogen, 
‘‘(E) any liquid fuel derived from coal (including peat) 
through the Fischer-Tropsch process, and 
‘‘(F) liquid hydrocarbons derived from biomass (as 
defined in section 29(c)(3)). 
Such term does not include ethanol, methanol, or biodiesel. 
‘‘(3) GASOLINE GALLON EQUIVALENT.—For purposes of this 
subsection, the term ‘gasoline gallon equivalent’ means, with 
respect to any nonliquid alternative fuel, the amount of such 
fuel having a Btu content of 124,800 (higher heating value). 
‘‘(4) TERMINATION.—This subsection shall not apply to any 
sale or use for any period after September 30, 2009 (September 
30, 2014, in the case of any sale or use involving liquefied 
hydrogen). 
‘‘(e) ALTERNATIVE FUEL MIXTURE CREDIT.—
‘‘(1) IN GENERAL.—For purposes of this section, the alter-
native fuel mixture credit is the product of 50 cents and the 
number of gallons of alternative fuel used by the taxpayer 
in producing any alternative fuel mixture for sale or use in 
a trade or business of the taxpayer. 
‘‘(2) ALTERNATIVE FUEL MIXTURE.—For purposes of this sec-
tion, the term ‘alternative fuel mixture’ means a mixture of 
alternative fuel and taxable fuel (as defined in subparagraph 
(A), (B), or (C) of section 4083(a)(1)) which—
H. R. 3—805
‘‘(A) is sold by the taxpayer producing such mixture 
to any person for use as fuel, or 
‘‘(B) is used as a fuel by the taxpayer producing such 
mixture. 
‘‘(3) TERMINATION.—This subsection shall not apply to any 
sale or use for any period after September 30, 2009 (September 
30, 2014, in the case of any sale or use involving liquefied 
hydrogen).’’. 
(3) CONFORMING AMENDMENTS.—
(A) The section heading for section 6426 is amended 
by striking ‘‘ALCOHOL FUEL AND BIODIESEL’’ and inserting 
‘‘ALCOHOL FUEL, BIODIESEL, AND ALTERNATIVE FUEL’’. 
(B) The table of sections for subchapter B of chapter 
65 is amended by striking ‘‘alcohol fuel and biodiesel’’ in 
the item relating to section 6426 and inserting ‘‘alcohol 
fuel, biodiesel, and alternative fuel’’. 
(C) Section 6427(e) is amended—
(i) by inserting ‘‘or the alternative fuel mixture 
credit’’ after ‘‘biodiesel mixture credit’’ in paragraph 
(1), 
(ii) by redesignating paragraph (2) as paragraph 
(3) and paragraph (4) as paragraph (5), 
(iii) by inserting after paragraph (1) the following 
new paragraph: 
‘‘(2) ALTERNATIVE FUEL.—If any person sells or uses an 
alternative fuel (as defined in section 6426(d)(2)) for a purpose 
described in section 6426(d)(1) in such person’s trade or busi-
ness, the Secretary shall pay (without interest) to such person 
an amount equal to the alternative fuel credit with respect 
to such fuel.’’, 
(iv) by striking ‘‘under paragraph (1) with respect 
to any mixture’’ in paragraph (3) (as redesignated by 
clause (ii)) and inserting ‘‘under paragraph (1) or (2) 
with respect to any mixture or alternative fuel’’, 
(v) by inserting after paragraph (3) (as so redesig-
nated) the following new paragraph: 
‘‘(4) 
REGISTRATION
REQUIREMENT
FOR
ALTERNATIVE 
FUELS.—The Secretary shall not make any payment under this 
subsection to any person with respect to any alternative fuel 
credit or alternative fuel mixture credit unless the person is 
registered under section 4101.’’, 
(vi) by striking ‘‘and’’ at the end of paragraph 
(5)(A) (as redesignated by clause (ii)), 
(vii) by striking the period at the end of paragraph 
(5)(B) (as so redesignated) and inserting a comma, 
(viii) by adding at the end of paragraph (5) (as 
so redesignated) the following new subparagraphs: 
‘‘(C) except as provided in subparagraph (D), any alter-
native fuel or alternative fuel mixture (as defined in sub-
section (d)(2) or (e)(3) of section 6426) sold or used after 
September 30, 2009, and 
‘‘(D) any alternative fuel or alternative fuel mixture 
(as so defined) involving liquefied hydrogen sold or used 
after September 30, 2014.’’, and 
(ix) by striking ‘‘OR BIODIESEL USED TO PRODUCE 
ALCOHOL
FUEL
AND
BIODIESEL
MIXTURES’’ in the
H. R. 3—806
heading and inserting ‘‘, BIODIESEL, OR ALTERNATIVE 
FUEL’’. 
(c) 
ADDITIONAL
REGISTRATION
REQUIREMENTS.—Section 
4101(a)(1) (relating to registration) is amended by striking 
‘‘4041(a)(1)’’ and inserting ‘‘4041(a)’’. 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall apply to any sale or use for any period after September 
30, 2006. 
PART 2—AQUATIC EXCISE TAXES 
SEC. 11115. ELIMINATION OF AQUATIC RESOURCES TRUST FUND AND 
TRANSFORMATION 
OF 
SPORT 
FISH 
RESTORATION 
ACCOUNT. 
(a) SIMPLIFICATION OF FUNDING FOR BOAT SAFETY ACCOUNT.—
(1) IN GENERAL.—Paragraph (4) of section 9503(c) (relating 
to transfers from Trust Fund for motorboat fuel taxes) is 
amended—
(A) by striking so much of that paragraph as precedes 
subparagraph (D), 
(B) by redesignating subparagraphs (D) and (E) as 
subparagraphs (C) and (D), respectively, and 
(C) by inserting before subparagraph (C) (as so redesig-
nated) the following: 
‘‘(4) TRANSFERS FROM THE TRUST FUND FOR MOTORBOAT 
FUEL TAXES.—
‘‘(A) TRANSFER
TO
LAND
AND
WATER
CONSERVATION 
FUND.—
‘‘(i) IN GENERAL.—The Secretary shall pay from 
time to time from the Highway Trust Fund into the 
land and water conservation fund provided for in title 
I of the Land and Water Conservation Fund Act of 
1965 amounts (as determined by the Secretary) equiva-
lent to the motorboat fuel taxes received on or after 
October 1, 2005, and before October 1, 2011. 
‘‘(ii) LIMITATION.—The aggregate amount trans-
ferred under this subparagraph during any fiscal year 
shall not exceed $1,000,000. 
‘‘(B) EXCESS FUNDS TRANSFERRED TO SPORT FISH RES-
TORATION AND BOATING TRUST FUND.—Any amounts in the 
Highway Trust Fund—
‘‘(i) which are attributable to motorboat fuel taxes, 
and 
‘‘(ii) which are not transferred from the Highway 
Trust Fund under subparagraph (A), 
shall be transferred by the Secretary from the Highway 
Trust Fund into the Sport Fish Restoration and Boating 
Trust Fund.’’. 
(2) CONFORMING
AMENDMENT.—Paragraph (5) of section 
9503(c) is amended by striking ‘‘Account in the Aquatic 
Resources’’ in subparagraph (A) and inserting ‘‘and Boating’’. 
(b) MERGING OF ACCOUNTS.—
(1) IN GENERAL.—Subsection (a) of section 9504 is amended 
to read as follows: 
‘‘(a) CREATION OF TRUST FUND.—There is hereby established 
in the Treasury of the United States a trust fund to be known 
as the ‘Sport Fish Restoration and Boating Trust Fund’. Such
H. R. 3—807
Trust Fund shall consist of such amounts as may be appropriated, 
credited, or paid to it as provided in this section, section 9503(c)(4), 
section 9503(c)(5), or section 9602(b).’’. 
(2) CONFORMING AMENDMENTS.—
(A) Subsection (b) of section 9504, as amended by sec-
tion 11101 of this Act, is amended—
(i) by striking ‘‘ACCOUNT’’ in the heading thereof 
and inserting ‘‘AND BOATING TRUST FUND’’, 
(ii) by striking ‘‘Account’’ both places it appears 
in paragraphs (1) and (2) and inserting ‘‘and Boating 
Trust Fund’’, and 
(iii) by striking ‘‘ACCOUNT’’ both places it appears 
in the headings for paragraphs (1) and (2) and inserting 
‘‘TRUST FUND’’. 
(B) Subsection (d) of section 9504, as amended by sec-
tion 11101 of this Act, is amended—
(i) by striking ‘‘AQUATIC
RESOURCES’’ in the 
heading thereof, 
(ii) by striking ‘‘any Account in the Aquatic 
Resources’’ in paragraph (1) and inserting ‘‘the Sport 
Fish Restoration and Boating’’, and 
(iii) by striking ‘‘any such Account’’ in paragraph 
(1) and inserting ‘‘such Trust Fund’’. 
(C) Subsection (e) of section 9504 is amended by 
striking ‘‘Boat Safety Account and Sport Fish Restoration 
Account’’ and inserting ‘‘Sport Fish Restoration and Boating 
Trust Fund’’. 
(D) Section 9504 is amended by striking ‘‘AQUATIC 
RESOURCES’’ in the heading thereof and inserting ‘‘SPORT 
FISH RESTORATION AND BOATING’’. 
(E) The item relating to section 9504 in the table 
of sections for subchapter A of chapter 98 is amended 
by striking ‘‘aquatic resources’’ and inserting ‘‘sport fish 
restoration and boating’’. 
(F) Paragraph (2) of section 1511(e) of the Homeland 
Security Act of 2002 (6 U.S.C. 551(e)) is amended by 
striking ‘‘Aquatic Resources Trust Fund of the Highway 
Trust Fund’’ and inserting ‘‘Sport Fish Restoration and 
Boating Trust Fund’’. 
(c) PHASEOUT OF BOAT SAFETY ACCOUNT.—Subsection (c) of 
section 9504 is amended to read as follows: 
‘‘(c) EXPENDITURES FROM BOAT SAFETY ACCOUNT.—Amounts 
remaining in the Boat Safety Account on October 1, 2005, and 
amounts thereafter credited to the Account under section 9602(b), 
shall be available, without further appropriation, for making 
expenditures before October 1, 2010, to carry out the purposes 
of section 15 of the Dingell-Johnson Sport Fish Restoration Act 
(as in effect on the date of the enactment of the Safe, Accountable, 
Flexible, Efficient Transportation Equity Act: A Legacy for Users). 
For purposes of section 9602, the Boat Safety Account shall be 
treated as a Trust Fund established by this subchapter.’’. 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on October 1, 2005. 
SEC. 11116. REPEAL OF HARBOR MAINTENANCE TAX ON EXPORTS. 
(a) IN GENERAL.—Subsection (d) of section 4462 (relating to 
definitions and special rules) is amended to read as follows:
H. R. 3—808
‘‘(d) NONAPPLICABILITY OF TAX TO EXPORTS.—The tax imposed 
by section 4461(a) shall not apply to any port use with respect 
to any commercial cargo to be exported from the United States.’’. 
(b) CONFORMING AMENDMENTS.—
(1) Section 4461(c)(1) is amended by adding ‘‘or’’ at the 
end of subparagraph (A), by striking subparagraph (B), and 
by redesignating subparagraph (C) as subparagraph (B). 
(2) Section 4461(c)(2) is amended by striking ‘‘imposed—
’’ and all that follows through ‘‘in any other case,’’ and inserting 
‘‘imposed’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect before, on, and after the date of the enactment 
of this Act. 
SEC. 11117. CAP ON EXCISE TAX ON CERTAIN FISHING EQUIPMENT. 
(a) IN GENERAL.—Paragraph (1) of section 4161(a) (relating 
to sport fishing equipment) is amended to read as follows: 
‘‘(1) IMPOSITION OF TAX.—
‘‘(A) IN
GENERAL.—There is hereby imposed on the 
sale of any article of sport fishing equipment by the manu-
facturer, producer, or importer a tax equal to 10 percent 
of the price for which so sold. 
‘‘(B) LIMITATION
ON
TAX
IMPOSED
ON
FISHING
RODS 
AND POLES.—The tax imposed by subparagraph (A) on any 
fishing rod or pole shall not exceed $10.’’. 
(b) CONFORMING AMENDMENTS.—Section 4161(a)(2) is amended 
by striking ‘‘paragraph (1)’’ both places it appears and inserting 
‘‘paragraph (1)(A)’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to articles sold by the manufacturer, producer, or 
importer after September 30, 2005. 
PART 3—AERIAL EXCISE TAXES 
SEC. 11121. CLARIFICATION OF EXCISE TAX EXEMPTIONS FOR AGRI-
CULTURAL AERIAL APPLICATORS AND EXEMPTION FOR 
FIXED-WING AIRCRAFT ENGAGED IN FORESTRY OPER-
ATIONS. 
(a) NO WAIVER BY FARM OWNER, TENANT, OR OPERATOR NEC-
ESSARY.—Subparagraph (B) of section 6420(c)(4) (relating to certain 
farming use other than by owner, etc.) is amended to read as 
follows: 
‘‘(B) if the person so using the gasoline is an aerial 
or other applicator of fertilizers or other substances and 
is the ultimate purchaser of the gasoline, then subpara-
graph (A) of this paragraph shall not apply and the aerial 
or other applicator shall be treated as having used such 
gasoline on a farm for farming purposes.’’. 
(b) EXEMPTION INCLUDES FUEL USED BETWEEN AIRFIELD AND 
FARM.—Section 6420(c)(4), as amended by subsection (a), is 
amended by adding at the end the following new flush sentence: 
‘‘In the case of an aerial applicator, gasoline shall be treated 
as used on a farm for farming purposes if the gasoline is 
used for the direct flight between the airfield and one or more 
farms.’’. 
(c) EXEMPTION FROM TAX ON AIR TRANSPORTATION OF PERSONS 
FOR FORESTRY PURPOSES EXTENDED TO FIXED-WING AIRCRAFT.—
H. R. 3—809
Subsection (f) of section 4261 (relating to tax on air transportation 
of persons) is amended to read as follows: 
‘‘(f) EXEMPTION FOR CERTAIN USES.—No tax shall be imposed 
under subsection (a) or (b) on air transportation—
‘‘(1) by helicopter for the purpose of transporting individ-
uals, equipment, or supplies in the exploration for, or the 
development or removal of, hard minerals, oil, or gas, or 
‘‘(2) by helicopter or by fixed-wing aircraft for the purpose 
of the planting, cultivation, cutting, or transportation of, or 
caring for, trees (including logging operations), 
but only if the helicopter or fixed-wing aircraft does not take off 
from, or land at, a facility eligible for assistance under the Airport 
and Airway Development Act of 1970, or otherwise use services 
provided pursuant to section 44509 or 44913(b) or subchapter I 
of chapter 471 of title 49, United States Code, during such use. 
In the case of helicopter transportation described in paragraph 
(1), this subsection shall be applied by treating each flight segment 
as a distinct flight.’’. 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall apply to fuel use or air transportation after September 30, 
2005. 
SEC. 11122. MODIFICATION OF RURAL AIRPORT DEFINITION. 
(a) IN GENERAL.—Section 4261(e)(1)(B) (defining rural airport) 
is amended—
(1) by inserting ‘‘(in the case of any airport described in 
clause (ii)(III), on flight segments of at least 100 miles)’’ after 
‘‘by air’’ in clause (i), and 
(2) by striking ‘‘or’’ at the end of subclause (I) of clause 
(ii), by striking the period at the end of subclause (II) of clause 
(ii) and inserting ‘‘, or’’, and by adding at the end of clause 
(ii) the following new subclause: 
‘‘(III) is not connected by paved roads to 
another airport.’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on October 1, 2005. 
SEC. 11123. EXEMPTION FROM TAXES ON TRANSPORTATION PROVIDED 
BY SEAPLANES. 
(a) IN GENERAL.—Section 4261 (relating to imposition of tax) 
is amended by redesignating subsection (i) as subsection (j) and 
by inserting after subsection (h) the following new subsection: 
‘‘(i) EXEMPTION FOR SEAPLANES.—No tax shall be imposed by 
this section or section 4271 on any air transportation by a seaplane 
with respect to any segment consisting of a takeoff from, and 
a landing on, water, but only if the places at which such takeoff 
and landing occur have not received and are not receiving financial 
assistance from the Airport and Airways Trust Fund.’’. 
(b) RATE OF FUEL TAX FOR SEAPLANES SUBJECT TO EXEMP-
TION.—Subsection (b) of section 4083 is amended by striking ‘‘section 
4261(h)’’ and inserting ‘‘subsection (h) or (i) of section 4261’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to transportation beginning after September 30, 2005. 
SEC. 11124. CERTAIN SIGHTSEEING FLIGHTS EXEMPT FROM TAXES 
ON AIR TRANSPORTATION. 
(a) IN GENERAL.—Section 4281 (relating to small aircraft on 
nonestablished lines) is amended by adding at the end the following
H. R. 3—810
new sentence: ‘‘For purposes of this section, an aircraft shall not 
be considered as operated on an established line at any time during 
which such aircraft is being operated on a flight the sole purpose 
of which is sightseeing.’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply with respect to transportation beginning after Sep-
tember 30, 2005, but shall not apply to any amount paid before 
such date for such transportation. 
PART 4—TAXES RELATING TO ALCOHOL 
SEC. 11125. REPEAL OF SPECIAL OCCUPATIONAL TAXES ON PRO-
DUCERS AND MARKETERS OF ALCOHOLIC BEVERAGES. 
(a) REPEAL OF OCCUPATIONAL TAXES.—
(1) IN GENERAL.—The following provisions of part II of 
subchapter A of chapter 51 (relating to occupational taxes) 
are hereby repealed: 
(A) Subpart A (relating to proprietors of distilled spirits 
plants, bonded wine cellars, etc.). 
(B) Subpart B (relating to brewer). 
(C) Subpart D (relating to wholesale dealers) (other 
than sections 5114 and 5116). 
(D) Subpart E (relating to retail dealers) (other than 
section 5124). 
(E) Subpart G (relating to general provisions) (other 
than sections 5142, 5143, 5145, and 5146). 
(2) NONBEVERAGE DOMESTIC DRAWBACK.—Section 5131 is 
amended by striking ‘‘, on payment of a special tax per annum,’’. 
(3) INDUSTRIAL USE OF DISTILLED SPIRITS.—Section 5276 
is hereby repealed. 
(b) CONFORMING AMENDMENTS.—
(1)(A) The heading for part II of subchapter A of chapter 
51 and the table of subparts for such part are amended to 
read as follows: 
‘‘PART II—MISCELLANEOUS PROVISIONS
‘‘Subpart A. Manufacturers of stills. 
‘‘Subpart B. Nonbeverage domestic drawback claimants. 
‘‘Subpart C. Recordkeeping by dealers. 
‘‘Subpart D. Other provisions.’’.
(B) The table of parts for such subchapter A is amended 
by striking the item relating to part II and inserting the fol-
lowing new item:
‘‘Part II. Miscellaneous provisions.’’.
(2) Subpart C of part II of such subchapter (relating to 
manufacturers of stills) is redesignated as subpart A. 
(3)(A) Subpart F of such part II (relating to nonbeverage 
domestic drawback claimants) is redesignated as subpart B 
and sections 5131 through 5134 are redesignated as sections 
5111 through 5114, respectively. 
(B) The table of sections for such subpart B, as so redesig-
nated, is amended—
(i) by redesignating the items relating to sections 5131 
through 5134 as relating to sections 5111 through 5114, 
respectively, and
H. R. 3—811
(ii) by striking ‘‘and rate of tax’’ in the item relating 
to section 5111, as so redesignated. 
(C) Section 5111, as redesignated by subparagraph (A), 
is amended—
(i) by striking ‘‘AND
RATE
OF
TAX’’ in the section 
heading, 
(ii) by striking the subsection heading for subsection 
(a), and 
(iii) by striking subsection (b). 
(4) Part II of subchapter A of chapter 51 is amended 
by adding after subpart B, as redesignated by paragraph (3), 
the following new subpart: 
‘‘Subpart C—Recordkeeping and Registration by 
Dealers
‘‘Sec. 5121. Recordkeeping by wholesale dealers. 
‘‘Sec. 5122. Recordkeeping by retail dealers. 
‘‘Sec. 5123. Preservation and inspection of records, and entry of premises for in-
spection. 
‘‘Sec. 5124. Registration by dealers.’’.
(5)(A) Section 5114 (relating to records) is moved to subpart 
C of such part II and inserted after the table of sections 
for such subpart. 
(B) Section 5114 is amended—
(i) by striking the section heading and inserting the 
following new heading: 
‘‘SEC. 5432. RECORDKEEPING BY WHOLESALE DEALERS.’’; 
and 
(ii) by redesignating subsection (c) as subsection (d) 
and by inserting after subsection (b) the following new 
subsection: 
‘‘(c) WHOLESALE DEALERS.—For purposes of this part—
‘‘(1) WHOLESALE DEALER IN LIQUORS.—The term ‘wholesale 
dealer in liquors’ means any dealer (other than a wholesale 
dealer in beer) who sells, or offers for sale, distilled spirits, 
wines, or beer, to another dealer. 
‘‘(2) WHOLESALE
DEALER
IN
BEER.—The term ‘wholesale 
dealer in beer’ means any dealer who sells, or offers for sale, 
beer, but not distilled spirits or wines, to another dealer. 
‘‘(3) DEALER.—The term ‘dealer’ means any person who 
sells, or offers for sale, any distilled spirits, wines, or beer. 
‘‘(4) PRESUMPTION IN CASE OF SALE OF 20 WINE GALLONS 
OR MORE.—The sale, or offer for sale, of distilled spirits, wines, 
or beer, in quantities of 20 wine gallons or more to the same 
person at the same time, shall be presumptive evidence that 
the person making such sale, or offer for sale, is engaged 
in or carrying on the business of a wholesale dealer in liquors 
or a wholesale dealer in beer, as the case may be. Such 
presumption may be overcome by evidence satisfactorily 
showing that such sale, or offer for sale, was made to a person 
other than a dealer.’’. 
(C) Paragraph (3) of section 5121(d), as so redesignated, 
is amended by striking ‘‘section 5146’’ and inserting ‘‘section 
5123’’.
H. R. 3—812
(6)(A) Section 5124 (relating to records) is moved to subpart 
C of part II of subchapter A of chapter 51 and inserted after 
section 5121. 
(B) Section 5124 is amended—
(i) by striking the section heading and inserting the 
following new heading: 
‘‘SEC. 5122. RECORDKEEPING BY RETAIL DEALERS.’’, 
(ii) by striking ‘‘section 5146’’ in subsection (c) and inserting 
‘‘section 5123’’, and 
(iii) by redesignating subsection (c) as subsection (d) and 
inserting after subsection (b) the following new subsection: 
‘‘(c) RETAIL DEALERS.—For purposes of this section—
‘‘(1) RETAIL DEALER IN LIQUORS.—The term ‘retail dealer 
in liquors’ means any dealer (other than a retail dealer in 
beer or a limited retail dealer) who sells, or offers for sale, 
distilled spirits, wines, or beer, to any person other than a 
dealer. 
‘‘(2) RETAIL DEALER IN BEER.—The term ‘retail dealer in 
beer’ means any dealer (other than a limited retail dealer) 
who sells, or offers for sale, beer, but not distilled spirits or 
wines, to any person other than a dealer. 
‘‘(3) LIMITED
RETAIL
DEALER.—The term ‘limited retail 
dealer’ means any fraternal, civic, church, labor, charitable, 
benevolent, or ex-servicemen’s organization making sales of 
distilled spirits, wine or beer on the occasion of any kind 
of entertainment, dance, picnic, bazaar, or festival held by 
it, or any person making sales of distilled spirits, wine or 
beer to the members, guests, or patrons of bona fide fairs, 
reunions, picnics, carnivals, or other similar outings, if such 
organization or person is not otherwise engaged in business 
as a dealer. 
‘‘(4) DEALER.—The term ‘dealer’ has the meaning given 
such term by section 5121(c)(3).’’. 
(7) Section 5146 is moved to subpart C of part II of sub-
chapter A of chapter 51, inserted after section 5122, and 
redesignated as section 5123. 
(8) Subpart C of part II of subchapter A of chapter 51, 
as amended by paragraph (7), is amended by adding at the 
end the following new section: 
‘‘SEC. 5124. REGISTRATION BY DEALERS. 
‘‘Every dealer who is subject to the recordkeeping requirements 
under section 5121 or 5122 shall register with the Secretary such 
dealer’s name or style, place of residence, trade or business, and 
the place where such trade or business is to be carried on. In 
the case of a firm or company, the names of the several persons 
constituting the same, and the places of residence, shall be so 
registered.’’. 
(9) Section 7012 is amended by redesignating paragraphs 
(4) and (5) as paragraphs (5) and (6), respectively, and by 
inserting after paragraph (3) the following new paragraph: 
‘‘(4) For provisions relating to registration by dealers in 
distilled spirits, wines, and beer, see section 5124.’’. 
(10) Part II of subchapter A of chapter 51 is amended 
by inserting after subpart C the following new subpart:
H. R. 3—813
‘‘Subpart D—Other Provisions
‘‘Sec. 5131. Packaging distilled spirits for industrial uses. 
‘‘Sec. 5132. Prohibited purchases by dealers.’’.
(11) Section 5116 is moved to subpart D of part II of 
subchapter A of chapter 51, inserted after the table of sections, 
redesignated as section 5131, and amended by inserting ‘‘(as 
defined in section 5121(c))’’ after ‘‘dealer’’ in subsection (a). 
(12) Subpart D of part II of subchapter A of chapter 51 
is amended by adding at the end the following new section: 
‘‘SEC. 5132. PROHIBITED PURCHASES BY DEALERS. 
‘‘(a) IN GENERAL.—Except as provided in regulations prescribed 
by the Secretary, it shall be unlawful for a dealer to purchase 
distilled spirits for resale from any person other than a wholesale 
dealer in liquors who is required to keep the records prescribed 
by section 5121. 
‘‘(b) LIMITED RETAIL DEALERS.—A limited retail dealer may 
lawfully purchase distilled spirits for resale from a retail dealer 
in liquors. 
‘‘(c) PENALTY AND FORFEITURE.—
‘‘For penalty and forfeiture provisions applicable to violations of subsection (a), see 
sections 5687 and 7302.’’.
(13) Subsection (b) of section 5002 is amended—
(A) by striking ‘‘section 5112(a)’’ and inserting ‘‘section 
5121(c)(3)’’, 
(B) by striking ‘‘section 5112’’ and inserting ‘‘section 
5121(c)’’, and 
(C) by striking ‘‘section 5122’’ and inserting ‘‘section 
5122(c)’’. 
(14) Subparagraph (A) of section 5010(c)(2) is amended 
by striking ‘‘section 5134’’ and inserting ‘‘section 5114’’. 
(15) Subsection (d) of section 5052 is amended to read 
as follows: 
‘‘(d) BREWER.—For purposes of this chapter, the term ‘brewer’ 
means any person who brews beer or produces beer for sale. Such 
term shall not include any person who produces only beer exempt 
from tax under section 5053(e).’’. 
(16) The text of section 5182 is amended to read as follows:
‘‘For provisions requiring recordkeeping by wholesale liquor dealers, see section 
5112, and by retail liquor dealers, see section 5122.’’.
(17) Subsection (b) of section 5402 is amended by striking 
‘‘section 5092’’ and inserting ‘‘section 5052(d)’’. 
(18) Section 5671 is amended by striking ‘‘or 5091’’. 
(19)(A) Part V of subchapter J of chapter 51 is hereby 
repealed. 
(B) The table of parts for such subchapter J is amended 
by striking the item relating to part V. 
(20)(A) Sections 5142, 5143, and 5145 are moved to sub-
chapter D of chapter 52, inserted after section 5731, redesig-
nated as sections 5732, 5733, and 5734, respectively, and 
amended by striking ‘‘this part’’ each place it appears and 
inserting ‘‘this subchapter’’. 
(B) Section 5732, as redesignated by subparagraph (A), 
is amended by striking ‘‘(except the tax imposed by section 
5131)’’ each place it appears.
H. R. 3—814
(C) Paragraph (2) of section 5733(c), as redesignated by 
subparagraph (A), is amended by striking ‘‘liquors’’ both places 
it appears and inserting ‘‘tobacco products and cigarette papers 
and tubes’’. 
(D) The table of sections for subchapter D of chapter 52 
is amended by adding at the end the following:
‘‘Sec. 5732. Payment of tax. 
‘‘Sec. 5733. Provisions relating to liability for occupational taxes. 
‘‘Sec. 5734. Application of State laws.’’.
(E) Section 5731 is amended by striking subsection (c) 
and by redesignating subsection (d) as subsection (c). 
(21) Subsection (c) of section 6071 is amended by striking 
‘‘section 5142’’ and inserting ‘‘section 5732’’. 
(22) Paragraph (1) of section 7652(g) is amended—
(A) by striking ‘‘subpart F’’ and inserting ‘‘subpart B’’, 
and 
(B) by striking ‘‘section 5131(a)’’ and inserting ‘‘section 
5111’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on July 1, 2008, but shall not apply to taxes 
imposed for periods before such date. 
SEC. 11126. INCOME TAX CREDIT FOR DISTILLED SPIRITS WHOLE-
SALERS AND FOR DISTILLED SPIRITS IN CONTROL STATE 
BAILMENT WAREHOUSES FOR COSTS OF CARRYING FED-
ERAL EXCISE TAXES ON BOTTLED DISTILLED SPIRITS. 
(a) IN GENERAL.—Subpart A of part I of subchapter A of chapter 
51 (relating to gallonage and occupational taxes) is amended by 
adding at the end the following new section: 
‘‘SEC. 5011. INCOME TAX CREDIT FOR AVERAGE COST OF CARRYING 
EXCISE TAX. 
‘‘(a) IN GENERAL.—For purposes of section 38, the amount of 
the distilled spirits credit for any taxable year is the amount equal 
to the product of—
‘‘(1) in the case of—
‘‘(A) any eligible wholesaler, the number of cases of 
bottled distilled spirits—
‘‘(i) which were bottled in the United States, and 
‘‘(ii) which are purchased by such wholesaler 
during the taxable year directly from the bottler of 
such spirits, or 
‘‘(B) any person which is subject to section 5005 and 
which is not an eligible wholesaler, the number of cases 
of bottled distilled spirits which are stored in a warehouse 
operated by, or on behalf of, a State or political subdivision 
thereof, or an agency of either, on which title has not 
passed on an unconditional sale basis, and 
‘‘(2) the average tax-financing cost per case for the most 
recent calendar year ending before the beginning of such tax-
able year. 
‘‘(b) ELIGIBLE WHOLESALER.—For purposes of this section, the 
term ‘eligible wholesaler’ means any person which holds a permit 
under the Federal Alcohol Administration Act as a wholesaler of 
distilled spirits which is not a State or political subdivision thereof, 
or an agency of either. 
‘‘(c) AVERAGE TAX-FINANCING COST.—
H. R. 3—815
‘‘(1) IN GENERAL.—For purposes of this section, the average 
tax-financing cost per case for any calendar year is the amount 
of interest which would accrue at the deemed financing rate 
during a 60-day period on an amount equal to the deemed 
Federal excise tax per case. 
‘‘(2) DEEMED FINANCING RATE.—For purposes of paragraph 
(1), the deemed financing rate for any calendar year is the 
average of the corporate overpayment rates under paragraph 
(1) of section 6621(a) (determined without regard to the last 
sentence of such paragraph) for calendar quarters of such year. 
‘‘(3) DEEMED FEDERAL EXCISE TAX PER CASE.—For purposes 
of paragraph (1), the deemed Federal excise tax per case is 
$25.68. 
‘‘(d) OTHER DEFINITIONS AND SPECIAL RULES.—For purposes 
of this section—
‘‘(1) CASE.—The term ‘case’ means 12 80-proof 750-milliliter 
bottles. 
‘‘(2) NUMBER OF CASES IN LOT.—The number of cases in 
any lot of distilled spirits shall be determined by dividing 
the number of liters in such lot by 9.’’. 
(b) CREDIT TREATED AS PART OF GENERAL BUSINESS CREDIT.—
Section 38(b) (relating to current year business credit) is amended 
by striking ‘‘plus’’ at the end of paragraph (18), by striking the 
period at the end of paragraph (19), and inserting ‘‘, plus’’, and 
by adding at the end the following new paragraph: 
‘‘(20) the distilled spirits credit determined under section 
5011(a).’’. 
(c) CONFORMING AMENDMENT.—The table of sections for subpart 
A of part I of subchapter A of chapter 51 is amended by adding 
at the end the following new item:
‘‘Sec. 5011. Income tax credit for average cost of carrying excise tax.’’.
(d) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after September 30, 2005. 
SEC. 11127. QUARTERLY EXCISE TAX FILING FOR SMALL ALCOHOL 
EXCISE TAXPAYERS. 
(a) IN GENERAL.—Subsection (d) of section 5061 (relating to 
time for collecting tax on distilled spirits, wines, and beer) is 
amended by redesignating paragraphs (4) and (5) as paragraphs 
(5) and (6), respectively, and by inserting after paragraph (3) the 
following new paragraph: 
‘‘(4) TAXPAYERS
LIABLE
FOR
TAXES
OF
NOT
MORE
THAN 
$50,000.—
‘‘(A) IN GENERAL.—In the case of any taxpayer who 
reasonably expects to be liable for not more than $50,000 
in taxes imposed with respect to distilled spirits, wines, 
and beer under subparts A, C, and D and section 7652 
for the calendar year and who was liable for not more 
than $50,000 in such taxes in the preceding calendar year, 
the last day for the payment of tax on withdrawals, 
removals, and entries (and articles brought into the United 
States from Puerto Rico) under bond for deferred payment 
shall be the 14th day after the last day of the calendar 
quarter during which the action giving rise to the imposi-
tion of such tax occurs. 
‘‘(B) 
NO
APPLICATION
AFTER
LIMIT
EXCEEDED.—
Subparagraph (A) shall not apply to any taxpayer for any
H. R. 3—816
portion of the calendar year following the first date on 
which the aggregate amount of tax due under subparts 
A, C, and D and section 7652 from such taxpayer during 
such calendar year exceeds $50,000, and any tax under 
such subparts which has not been paid on such date shall 
be due on the 14th day after the last day of the semi-
monthly period in which such date occurs. 
‘‘(C) CALENDAR QUARTER.—For purposes of this para-
graph, the term ‘calendar quarter’ means the three-month 
period ending on March 31, June 30, September 30, or 
December 31.’’. 
(b) CONFORMING AMENDMENT.—Section 5061(d)(6), as redesig-
nated by subsection (a), is amended by striking ‘‘paragraph (4)’’ 
and inserting ‘‘paragraph (5)’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply with respect to quarterly periods beginning on and 
after January 1, 2006. 
PART 5—SPORT EXCISE TAXES 
SEC. 11131. CUSTOM GUNSMITHS. 
(a) SMALL MANUFACTURERS EXEMPT FROM FIREARMS EXCISE 
TAX.—Section 4182 (relating to exemptions) is amended by redesig-
nating subsection (c) as subsection (d) and by inserting after sub-
section (b) the following new subsection: 
‘‘(c) SMALL MANUFACTURERS, ETC.—
‘‘(1) IN GENERAL.—The tax imposed by section 4181 shall 
not apply to any pistol, revolver, or firearm described in such 
section if manufactured, produced, or imported by a person 
who manufactures, produces, and imports less than an aggre-
gate of 50 of such articles during the calendar year. 
‘‘(2) CONTROLLED GROUPS.—All persons treated as a single 
employer for purposes of subsection (a) or (b) of section 52 
shall be treated as one person for purposes of paragraph (1).’’. 
(b) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by this section 
shall apply to articles sold by the manufacturer, producer, 
or importer after September 30, 2005. 
(2) NO INFERENCE.—Nothing in the amendments made by 
this section shall be construed to create any inference with 
respect to the proper tax treatment of any sales before the 
effective date of such amendments. 
Subtitle C—Miscellaneous Provisions 
SEC. 11141. MOTOR FUEL TAX ENFORCEMENT ADVISORY COMMISSION. 
(a) ESTABLISHMENT.—There is established a Motor Fuel Tax 
Enforcement Advisory Commission (in this section referred to as 
the ‘‘Commission’’). 
(b) FUNCTION.—The Commission shall—
(1) review motor fuel revenue collections, historical and 
current; 
(2) review the progress of investigations with respect to 
motor fuel taxes; 
(3) develop and review legislative proposals with respect 
to motor fuel taxes;
H. R. 3—817
(4) monitor the progress of administrative regulation 
projects relating to motor fuel taxes; 
(5) review the results of Federal and State agency coopera-
tive efforts regarding motor fuel taxes; 
(6) review the results of Federal interagency cooperative 
efforts regarding motor fuel taxes; and 
(7) evaluate and make recommendations to the President 
and Congress regarding—
(A) the effectiveness of existing Federal enforcement 
programs regarding motor fuel taxes, 
(B) enforcement personnel allocation, and 
(C) proposals for regulatory projects, legislation, and 
funding. 
(c) MEMBERSHIP.—
(1) APPOINTMENT.—The Commission shall be composed of 
the following representatives appointed by the Chairmen and 
the Ranking Members of the Committee on Finance of the 
Senate and the Committee on Ways and Means of the House 
of Representatives: 
(A) At least one representative from each of the fol-
lowing Federal entities: the Department of Homeland Secu-
rity, the Department of Transportation—Office of Inspector 
General, the Federal Highway Administration, the Depart-
ment of Defense, and the Department of Justice. 
(B) At least one representative from the Federation 
of State Tax Administrators. 
(C) At least one representative from any State depart-
ment of transportation. 
(D) Two representatives from the highway construction 
industry. 
(E) Six representatives from industries relating to fuel 
distribution—refiners (two representatives), distributors 
(one representative), pipelines (one representative), and ter-
minal operators (two representatives). 
(F) One representative from the retail fuel industry. 
(G) Two representatives from the staff of the Com-
mittee on Finance of the Senate and two representatives 
from the staff of the Committee on Ways and Means of 
the House of Representatives. 
(2) TERMS.—Members shall be appointed for the life of 
the Commission. 
(3) VACANCIES.—A vacancy in the Commission shall be 
filled in the manner in which the original appointment was 
made. 
(4) TRAVEL EXPENSES.—Members shall serve without pay 
but shall receive travel expenses, including per diem in lieu 
of subsistence, in accordance with sections 5702 and 5703 of 
title 5, United States Code. 
(5) CHAIRMAN.—The Chairman of the Commission shall 
be elected by the members. 
(d) FUNDING.—Such sums as are necessary shall be available 
from the Highway Trust fund for the expenses of the Commission. 
(e) CONSULTATION.—Upon request of the Commission, rep-
resentatives of the Department of the Treasury and the Internal 
Revenue Service shall be available for consultation to assist the 
Commission in carrying out its duties under this section.