I 
116TH CONGRESS 
1ST SESSION H. R. 2864 
To amend the Internal Revenue Code of 1986 to increase the excise tax 
on gasoline, diesel, and kerosene fuels. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 21, 2019 
Mr. BLUMENAUER 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 increase 
the excise tax on gasoline, diesel, and kerosene fuels. 
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 ‘‘Rebuild America Act 
of 2019’’. 
SEC. 2. SENSE OF CONGRESS. 
It is the sense of Congress that by 2029 the gas tax 
should be repealed and replaced with a more sustainable, 
stable funding source. 
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SEC. 3. TAX ON MOTOR FUELS. 
(a) GASOLINE OTHER THAN AVIATION GASOLINE.— 
Section 4081(a)(2)(A)(i) of the Internal Revenue Code of 
1986 is amended to read as follows: 
‘‘(i) in the case of gasoline other than 
aviation gasoline— 
‘‘(I) for tax imposed before 2020, 
18.3 cents per gallon, 
‘‘(II) for tax imposed during 
2020, 23.3 cents per gallon, 
‘‘(III) for tax imposed during 
2021, 28.3 cents per gallon, 
‘‘(IV) for tax imposed during 
2022, 33.3 cents per gallon, 
‘‘(V) for tax imposed during 
2023, 38.3 cents per gallon, and 
‘‘(VI) for tax imposed after 2023, 
43.3 cents per gallon,’’. 
(b) 
DIESEL
FUEL
OR
KEROSENE.—Section 
4081(a)(2)(A)(iii) of such Code is amended to read as fol-
lows: 
‘‘(iii) in the case of diesel fuel or ker-
osene— 
‘‘(I) for tax imposed before 2020, 
24.3 cents per gallon, 
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‘‘(II) for tax imposed during 
2020, 29.3 cents per gallon, 
‘‘(III) for tax imposed during 
2021, 34.3 cents per gallon, 
‘‘(IV) for tax imposed during 
2022, 39.3 cents per gallon, 
‘‘(V) for tax imposed during 
2023, 44.3 cents per gallon, and 
‘‘(VI) for tax imposed after 2023, 
49.3 cents per gallon.’’. 
(c) INCREASE FOR INFLATION.—Section 4081(a)(2) 
of such Code is amended by adding at the end the fol-
lowing: 
‘‘(E) ADJUSTMENT
FOR
INFLATION.—In 
the case of any calendar year beginning after 
2024, the rates of tax contained in clauses (i) 
and (iii) of subparagraph (A) shall each be in-
creased by an amount equal to— 
‘‘(i) such rate, multiplied by 
‘‘(ii) the cost of living adjustment de-
termined under section 1(f)(3) for the cal-
endar year, determined by substituting 
‘calendar year 2023’ for ‘calendar year 
2016’ in subparagraph (A)(ii) thereof. 
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Any increase under the preceding sentence shall 
be rounded to the nearest 0.1 cents.’’. 
(d) 
DIESEL-WATER
FUEL
EMULSION.—Section 
4081(a)(2)(D) of such Code is amended by striking ‘‘ ‘19.7 
cents’ for ‘24.3 cents’ ’’ and inserting ‘‘a rate equal to 71 
percent of the rate in effect under such subparagraph 
(without regard to this subparagraph)’’. 
(e) TERMINATION.—Section 4081(d)(1) of such Code 
is amended by striking ‘‘September 30, 2022’’ and insert-
ing ‘‘December 31, 2029’’. 
(f) ALLOCATION IN ACCOUNTS IN HIGHWAY TRUST 
FUND.— 
(1) IN GENERAL.—Section 9503(e)(2)(A) of the 
Internal Revenue Code of 1986 is amended to read 
as follows: 
‘‘(A) except as otherwise provided in this 
sentence— 
‘‘(i) 2.86 cents per gallon with respect 
to taxes imposed during calendar years be-
fore 2020, 
‘‘(ii) 3.86 cents per gallon with re-
spect to taxes imposed during calendar 
year 2020, 
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‘‘(iii) 4.86 cents per gallon with re-
spect to taxes imposed during calendar 
year 2021, 
‘‘(iv) 5.86 cents per gallon with re-
spect to taxes imposed during calendar 
year 2022, 
‘‘(v) 6.86 cents per gallon with respect 
to taxes imposed during calendar year 
2023, and 
‘‘(vi) 7.86 center per gallon with re-
spect to taxes imposed after calendar year 
2023,’’. 
(2) ADJUSTMENT
FOR
INFLATION.—Section 
9503(e) of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new 
paragraph: 
‘‘(6) ADJUSTMENT
FOR
INFLATION.—In the 
case of any calendar year beginning after 2024, the 
rate of tax contained in paragraph (2)(A) shall be 
increased by an amount equal to— 
‘‘(A) such rate, multiplied by 
‘‘(B) the cost of living adjustment deter-
mined under section 1(f)(3) for the calendar 
year, determined by substituting ‘calendar year 
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2023’ for ‘calendar year 2016’ in subparagraph 
(A)(ii) thereof. 
Any increase under the preceding sentence shall be 
rounded to the nearest 0.1 cents.’’. 
(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply to fuel removed, entered, or sold 
after December 31, 2018. 
SEC. 4. FLOOR STOCKS TAX. 
(a) IMPOSITION OF TAX.—In the case of taxed fuel 
to which a qualified person holds title on January 1, 2020, 
there is hereby imposed on such fuel a tax at a rate of 
5 cents per gallon. 
(b) TAXED FUEL DEFINED.—The term ‘‘taxed fuel’’ 
means taxable fuel (as such term is defined in section 
4083(a)(1)), other than aviation fuel, on which tax was 
imposed (and not credited or refunded) under section 
4081 of the Internal Revenue Code of 1986 before Janu-
ary 1, 2020. 
(c) QUALIFIED PERSON DEFINED.—For purposes of 
this section— 
(1) IN GENERAL.—The term ‘‘qualified person’’ 
means a person who, on January 1, 2020, holds title 
to not less than 2,000 gallons of taxed fuel (other 
than fuel held in the tank of a motor vehicle or mo-
torboat) held for sale. 
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(2) AGGREGATION RULE.—For purposes of the 
2,000 gallon requirement, all members of the same 
controlled group of corporations (within the meaning 
of section 267(f)) and all persons under common 
control (within the meaning of section 52(b) but de-
termined by treating an interest of more than 50 
percent as a controlling interest) shall be treated as 
1 person. 
(d) OTHER PROVISIONS OF LAW.—All provisions of 
law, including penalties, applicable with respect to the 
taxes imposed by section 4081 of the Internal Revenue 
Code of 1986 shall, insofar as applicable and not incon-
sistent with the provisions of this section, apply with re-
spect to the taxes imposed by subsection (a) to the same 
extent as if such taxes were imposed by such section 4081. 
Æ 
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