eral Fund to the Highway Trust Fund, in order to 
maintain solvency. 
(2) The Congressional Budget Office estimates 
after the end of Fiscal year 2014, annual General 
Fund transfers of approximately $15 billion will be 
necessary in order to maintain current Highway 
Trust Fund spending levels. 
(3) The Congressional Budget Office also esti-
mates that in order to provide funding for surface 
transportation projects where the Federal benefit 
outweighs the cost, an additional $83 billion a year 
would need to be allocated to the Highway and 
Transit Trust Funds. 
(4) The American Society for Civil Engineers 
estimates that in order to meet our economic and 
transportation needs, the United States should in-
vest at least an additional $500 billion in our sur-
face transportation system by 2020. 
(5) The National Commission on Fiscal Reform 
and Responsibility report, often referred to as the 
‘‘Simpson-Bowles’’ plan, includes a recommendation 
to raise the gas tax by fifteen cents. 
(6) The National Surface Transportation Infra-
structure Financing Commission recommended, in 
their 2009 report, that Congress take action to pre-
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vent the Highway Trust Fund from becoming insol-
vent, and to avoid any reductions in infrastructure 
spending. The Commission also noted that a Federal 
funding system based on a vehicle miles traveled sys-
tem, is the consensus choice for the future. 
(b) SENSE OF CONGRESS REGARDING REPLACEMENT 
OF GAS TAX.—It is the sense of Congress that by 2024 
the gas tax should be repealed and replaced with a more 
sustainable, stable funding source. 
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 2014, 
18.3 cents per gallon, 
‘‘(II) for tax imposed during 
2014, 26.3 cents per gallon, 
‘‘(III) for tax imposed during 
2015, 30.3 cents per gallon, and 
‘‘(IV) for tax imposed after 2015 
and before 2025, 33.3 cents per gal-
lon,’’. 
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(b) 
DIESEL
FUEL
OR
KEROSENE.—Section 
4081(a)(2)(A)(iii) of the Internal Revenue Code of 1986 
is amended to read as follows: 
‘‘(iii) in the case of diesel fuel or ker-
osene— 
‘‘(I) for tax imposed before 2014, 
24.3 cents per gallon, 
‘‘(II) for tax imposed during 
2014, 32.3 cents per gallon, 
‘‘(III) for tax imposed during 
2015, 36.3 cents per gallon, and 
‘‘(IV) for tax imposed after 2015 
and before 2025, 39.3 cents per gal-
lon,’’. 
(c) INCREASE FOR INFLATION.—Paragraph (2) of 
section 4081(a) of such Code is amended by adding at 
the end the following: 
‘‘(E) ADJUSTMENT
FOR
INFLATION.—In 
the case of any calendar year beginning after 
2016, the rates of tax contained in clauses 
(i)(IV) and (iii)(IV) of subparagraph (A) shall 
each be increased 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-
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endar year, determined by substituting 
‘calendar year 2015’ for ‘calendar year 
1992’ in subparagraph (B) thereof. 
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 the Internal Revenue Code of 1986 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 subparagraph (A) (without regard to this subpara-
graph)’’. 
(e) TERMINATION.—Section 4081(d)(1) of the Inter-
nal Revenue Code of 1986 is amended by striking ‘‘Sep-
tember 30, 2016’’ and inserting ‘‘December 31, 2024’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to fuels or liquids removed, en-
tered, or sold after December 31, 2013. 
SEC. 4. FLOOR STOCKS TAX. 
(a) IMPOSITION OF TAX.—In the case of any taxable 
liquid which is held on the floor stocks tax 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 
liquid under section 4041 or 4081 of the Internal Revenue 
Code of 1986 had the taxable event occurred on the floor 
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stocks tax date over the tax paid under any such section 
on such liquid. 
(b) LIABILITY
FOR TAX
AND METHOD
OF PAY-
MENT.— 
(1) LIABILITY FOR TAX.—A person holding a 
liquid on the floor stocks tax date to which the tax 
imposed by subsection (a) applies shall be liable for 
such tax. 
(2) METHOD OF PAYMENT.—The tax imposed 
by subsection (a) shall be paid in such manner as 
the Secretary shall prescribe. 
(3) TIME OF PAYMENT.—The tax imposed by 
subsection (a) shall be paid on or before the date 
which is 6 months after the floor stocks tax date. 
(c) DEFINITIONS.—For purposes of this section— 
(1) HELD BY A PERSON.—A liquid shall be con-
sidered as held by a person if title thereto has 
passed to such person (whether or not delivery to 
the person has been made). 
(2) TAXABLE LIQUID.—The term ‘‘taxable liq-
uid’’ means diesel fuel and kerosene (other than 
aviation-grade kerosene). 
(3) FLOOR
STOCKS
DATE.—The term ‘‘floor 
stocks tax date’’ means any January 1 of any cal-
endar year beginning after the date of the enactment 
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smartinez on DSK6TPTVN1PROD with BILLS
of this Act on which a rate of tax under section 
4041 or 4081 of such Code increases pursuant to an 
amendment made by section 2. 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury. 
(d) EXCEPTION FOR EXEMPT USES.—The tax im-
posed by subsection (a) shall not apply to taxable liquid 
held by any person exclusively for any use to the extent 
a credit or refund of the tax imposed by a section 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 tax-
able liquid held in the tank of a motor vehicle or motor-
boat. 
(f) EXCEPTION FOR CERTAIN AMOUNTS OF FUEL.— 
(1) IN GENERAL.—No tax shall be imposed by 
subsection (A) on any liquid held on the floor stocks 
tax date by any person if the aggregate amount of 
liquid held by such person on such date does not ex-
ceed 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 Sec-
retary) such information as the Secretary shall re-
quire for purposes of this paragraph. 
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(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 section— 
(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 clause (i) shall apply to a 
group of persons under common control where 
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one or more of such persons is not a corpora-
tion. 
(g) OTHER LAWS APPLICABLE.—All provisions of 
law, including penalties, applicable with respect to the 
taxes imposed by chapter 31 or 32 of such Code shall, 
insofar as applicable and not inconsistent with the provi-
sions of this section, apply with respect to the floor stock 
taxes imposed by subsection (a) to the same extent as if 
such taxes were imposed by such chapter. 
Æ 
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