under subparagraph (A) for a purpose which is 
not a surface transportation purpose as de-
scribed in subparagraph (A), the improperly 
used amounts shall be deducted from any 
amount the State would otherwise receive from 
the Highway Trust Fund for the fiscal year 
which begins after the date of the determina-
tion.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section takes effect on October 1, 2014. 
SEC. 7. REDUCTION IN TAXES ON GASOLINE, DIESEL FUEL, 
KEROSENE, AND SPECIAL FUELS FUNDING 
HIGHWAY TRUST FUND. 
(a) REDUCTION IN TAX RATE.— 
(1) IN GENERAL.—Section 4081(a)(2)(A) of the 
Internal Revenue Code of 1986 is amended— 
(A) in clause (i), by striking ‘‘18.3 cents’’ 
and inserting ‘‘3.7 cents’’; and 
(B) in clause (iii), by striking ‘‘24.3 cents’’ 
and inserting ‘‘5.0 cents’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 4081(a)(2)(D) of such Code is 
amended— 
(i) by striking ‘‘19.7 cents’’ and in-
serting ‘‘4.1 cents’’, and 
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(ii) by striking ‘‘24.3 cents’’ and in-
serting ‘‘5.0 cents’’. 
(B) Section 6427(b)(2)(A) of such Code is 
amended by striking ‘‘7.4 cents’’ and inserting 
‘‘1.5 cents’’. 
(b) ADDITIONAL CONFORMING AMENDMENTS.— 
(1) Section 4041(a)(1)(C)(iii)(I) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘7.3 
cents per gallon (4.3 cents per gallon after Sep-
tember 30, 2016)’’ and inserting ‘‘1.4 cents per gal-
lon (zero after September 30, 2021)’’. 
(2) Section 4041(a)(2)(B)(ii) of such Code is 
amended by striking ‘‘24.3 cents’’ and inserting ‘‘5.0 
cents’’. 
(3) Section 4041(a)(3)(A) of such Code is 
amended by striking ‘‘18.3 cents’’ and inserting ‘‘3.7 
cents’’. 
(4) Section 4041(m)(1) of such Code is amend-
ed— 
(A) in subparagraph (A), by striking 
‘‘2016’’ and inserting ‘‘2021,’’; 
(B) in subparagraph (A)(i), by striking 
‘‘9.15 cents’’ and inserting ‘‘1.8 cents’’; 
(C) in subparagraph (A)(ii), by striking 
‘‘11.3 cents’’ and inserting ‘‘2.3 cents’’; and 
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(D) by striking subparagraph (B) and in-
serting the following: 
‘‘(B) zero after September 30, 2021.’’. 
(5) Section 4081(d)(1) of such Code is amend-
ed by striking ‘‘4.3 cents per gallon after September 
30, 2016’’ and inserting ‘‘zero after September 30, 
2021’’. 
(6) Section 9503(b) of such Code is amended— 
(A) in paragraphs (1) and (2), by striking 
‘‘October 1, 2016’’ both places it appears and 
inserting ‘‘October 1, 2021’’; 
(B) in the heading of paragraph (2), by 
striking ‘‘OCTOBER 1, 2016’’ and inserting ‘‘OC-
TOBER 1, 2021’’; 
(C) in paragraph (2), by striking ‘‘after 
September 30, 2016, and before July 1, 2017’’ 
and inserting ‘‘after September 30, 2021, and 
before July 1, 2022’’; and 
(D) in paragraph (6)(B), by striking ‘‘Oc-
tober 1, 2014’’ and inserting ‘‘October 1, 
2019’’. 
(c) FLOOR STOCK REFUNDS.— 
(1) IN GENERAL.—If— 
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(A) before October 1, 2019, tax has been 
imposed under section 4081 of the Internal 
Revenue Code of 1986 on any liquid; and 
(B) on such date such liquid 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 (in this subsection 
referred to as the ‘‘taxpayer’’) an amount equal to 
the excess of the tax paid by the taxpayer over the 
amount of such tax which would be imposed on such 
liquid 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 April 1, 2020; 
and 
(B) in any case where liquid is held by a 
dealer (other than the taxpayer) on October 1, 
2019— 
(i) the dealer submits a request for re-
fund or credit to the taxpayer before Janu-
ary 1, 2020; and 
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(ii) 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 cred-
it 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 liquid in retail 
stocks held at the place where intended to be sold 
at retail. 
(4) DEFINITIONS.—For purposes of this sub-
section, the terms ‘‘dealer’’ and ‘‘held by a dealer’’ 
have the respective meanings given to such terms by 
section 6412 of such Code; except that the term 
‘‘dealer’’ includes a producer. 
(5) CERTAIN RULES TO APPLY.—Rules similar 
to the rules of subsections (b) and (c) of section 
6412 and sections 6206 and 6675 of such Code shall 
apply for purposes of this subsection. 
(d) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to fuel removed after September 30, 
2019. 
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