by section 4081 or 4091 of such Code is allowable for such
use.
(e) EXCEPTION
FOR
FUEL
HELD
IN
VEHICLE
TANK.—No tax shall be imposed by subsection (a) on gas-
oline or diesel fuel held in the tank of a motor vehicle or
motorboat.
(f) EXCEPTION FOR CERTAIN AMOUNTS OF FUEL.—
(1) IN GENERAL.—No tax shall be imposed by
subsection (a)—
(A) on gasoline held on January 1, 1997,
by any person if the aggregate amount of gaso-
line held by such person on such date does not
exceed 4,000 gallons, and
(B) on diesel fuel or aviation fuel held on
such date by any person if the aggregate
amount of diesel fuel or aviation fuel held by
such person on such date does not exceed 2,000
gallons.
The preceding sentence shall apply only if such per-
son 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
paragraph.
(2) EXEMPT
FUEL.—For purposes of para-
graph (1), there shall not be taken into account fuel
held by any person which is exempt from the tax im-
posed by subsection (a) by reason of subsection (d)
or (e).
(3) CONTROLLED
GROUPS.—For purposes of
this subsection—
(A) CORPORATIONS.—
(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 subsection (a) of section
1563 of such Code; except that for such
purposes the phrase ‘‘more than 50 per-
cent’’ shall be substituted for the phrase
‘‘at least 80 percent’’ each place it appears
in such subsection.
(B) NONINCORPORATED PERSONS UNDER
COMMON
CONTROL.—Under regulations pre-
scribed by the Secretary, principles similar to
the principles of subparagraph (A) shall apply
to a group of persons under common control
where 1 or more of such persons is not a cor-
poration.
(g) OTHER LAW APPLICABLE.—All provisions of law,
including penalties, applicable with respect to the taxes
imposed by section 4081 of such Code in the case of gaso-
line and diesel fuel and section 4091 of such Code in the
case of aviation fuel shall, insofar as applicable and not
inconsistent with the provisions of this subsection, apply
with respect to the floor stock taxes imposed by subsection
(a) to the same extent as if such taxes were imposed by
such section 4081 or 4091.
SEC. 4. OFFSETTING REDUCTIONS IN DEFENSE BUDGET
AUTHORITY.
(a) REQUIRED REDUCTION.—Not later than 20 days
after the date of the enactment of this Act, the Secretary
of Defense shall cancel available budget authority in cur-
rent defense procurement accounts in such amounts as
may be necessary to achieve a reduction in the amount
of $2,900,000,000 in outlays by the Department of De-
fense from such accounts during the period beginning on
the date of the enactment of this Act and ending at the
close of December 31, 1996.
(b) IDENTIFICATION OF PROGRAMS TO BE CUT.—
The Secretary of Defense shall submit to Congress a re-
port specifying the programs, projects, and activities of
the Department of Defense from which cancellations of
budget authority are made for the purposes of subsection
(a). Such report shall show the specific dollar amount of
budget authority cancelled from each such program,
project, or activity.
(c) EFFECT
OF CANCELLATIONS.—Amounts can-
celled under this section shall not be available for obliga-
tion for any purpose.
(d) DEFINITIONS.—For purposes of this section:
(1) 
AVAILABLE
BUDGET
AUTHORITY.—The
term ‘‘available budget authority’’ means amounts
appropriated before the date of the enactment of
this Act for the Department of Defense that remain
available for obligation as of such date.
(2) CURRENT PROCUREMENT ACCOUNTS.—The
term ‘‘current defense procurement accounts’’ means
appropriation accounts provided under the major
heading ‘‘PROCUREMENT’’ in any Act making ap-
propriations for the Department of Defense that was
enacted before the date of the enactment of this Act
and for which, with respect to any such account, the
period of availability for obligation has not expired
as of such date.
Æ