I 
113TH CONGRESS 
2D SESSION 
H. R. 4848 
To amend the Internal Revenue Code of 1986 to repeal the gas tax and 
rebuild our roads and bridges. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 11, 2014 
Mr. DEFAZIO 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 repeal 
the gas tax and rebuild our roads and bridges. 
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 ‘‘Repeal and Rebuild 
Act of 2014’’. 
SEC. 2. REPEAL OF EXCISE TAX ON GASOLINE. 
(a) IN GENERAL.—Section 4081(a)(2)(A)(i) of the 
Internal Revenue Code of 1986 is amended by striking 
‘‘18.3 cents per gallon’’ and inserting ‘‘0 cents per gallon’’. 
(b) CONFORMING AMENDMENTS.— 
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(1) Section 4081(d)(1) of the Internal Revenue 
Code of 1986 is amended by striking ‘‘clauses (i) 
and’’ and inserting ‘‘clause’’. 
(2) Section 4041(a)(2)(B)(i) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘the 
rate of tax specified in section 4081(a)(2)(A)(i) 
which is in effect at the time of such sale or use,’’ 
and inserting ‘‘18.3 cents per gallon’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to fuel sold or used after December 
31, 2014. 
SEC. 3. REPEAL OF EXCISE TAX ON TIRES. 
(a) IN GENERAL.—Subchapter A of chapter 32 of 
subtitle D of the Internal Revenue Code of 1986 is amend-
ed by striking part II (relating to tires). 
(b) CONFORMING AMENDMENTS.— 
(1) The table of parts for subchapter A of chap-
ter 32 of subtitle D of the Internal Revenue Code 
of 1986 is amended by striking the item relating to 
part II. 
(2) Section 9503(b)(1) of the Internal Revenue 
Code of 1986 is amended by striking subparagraph 
(C) and redesignating subparagraphs (D) and (E) as 
subparagraphs (C) and (D), respectively. 
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(3) Section 6412(a)(1) of the Internal Revenue 
Code of 1986 is amended— 
(A) in the text by striking ‘‘4071 or’’, and 
(B) in the heading by striking ‘‘TIRES AND 
TAXABLE’’ and inserting ‘‘TAXABLE’’. 
(4) Section 6416 of the Internal Revenue Code 
of 1986 is amended by striking subparagraph (C) of 
subsection (b)(1). 
(5) Section 4218 of the Internal Revenue Code 
of 1986 is amended— 
(A) in subsection (a) by striking ‘‘(other 
than a tire taxable under section 4071)’’, and 
(B) by striking subsection (b) and redesig-
nating subsection (c) as subsection (b). 
(6) Section 4221 of the Internal Revenue Code 
of 1986 is amended— 
(A) in subsection (a) by striking ‘‘or 
4071,’’, and 
(B) in subsection (e) by striking paragraph 
(2). 
(7) Section 4051 of the Internal Revenue Code 
of 1986 is amended by striking subsection (e). 
(c) EFFECTIVE DATE.— 
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(1) Except as provided by paragraph (2), the 
amendments made by this section shall apply to 
sales after December 31, 2014. 
(2) The amendments made by paragraphs (3), 
(4), (5), and (6) of subsection (b) shall apply to 
taxes imposed after December 31, 2014. 
(d) SPECIAL RULE FOR FLOOR STOCKS REFUNDS 
RELATING TO TIRES AND TAXABLE FUELS.—In the case 
of an article subject to the tax imposed by section 4071 
or 4081 before January 1, 2015, which has been sold, 
held, and not used and is intended for sale in the manner 
specified by section 6412(a)(1) of the Internal Revenue 
Code of 1986, such section shall be applied by sub-
stituting— 
(1) ‘‘January 1, 2015’’ for ‘‘October 1, 2016’’, 
(2) ‘‘July 1, 2015’’ for ‘‘January 1, 2017’’, and 
(3) ‘‘October 1, 2015’’ for ‘‘March 31, 2017’’. 
SEC. 4. DOUBLE INDEXATION OF DIESEL FUELS TAX. 
(a) IN GENERAL.—Paragraph (2) of section 4081(a) 
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following new subparagraph: 
‘‘(E) INDEX FOR HIGHWAY CONSTRUCTION 
COST INFLATION AND FUEL EFFICIENCY.— 
‘‘(i) IN GENERAL.—In the case of any 
calendar year after 2014, the 24.3 cents 
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rate in subparagraph (A)(iii) and the 19.7 
cents rate in subparagraph (D), shall each 
be increased by an amount equal to— 
‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the double indexation for 
the calendar year. 
Any increase determined under subpara-
graph (A) shall be rounded to the nearest 
tenth of a cent. 
‘‘(ii) EXCEPTION FOR FUEL USED IN 
AVIATION.—The adjustment under clause 
(i) shall not apply with respect to the rate 
of tax under subparagraph (A)(iii) by rea-
son of subparagraph (C). 
‘‘(iii) 
DOUBLE
INDEXATION.—For 
purposes of clause (i), the double index-
ation for any calendar year is the sum of— 
‘‘(I) the highway construction 
cost adjustment, and 
‘‘(II) the CAFE fuel saved ad-
justment. 
‘‘(iv) HIGHWAY CONSTRUCTION COST 
ADJUSTMENT.—For purposes of clause 
(iii), the highway construction cost adjust-
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ment for any calendar year is the percent-
age (if any) by which— 
‘‘(I) the National Highway Con-
struction Cost Index for the preceding 
calendar year, exceeds 
‘‘(II) the National Highway Con-
struction Cost Index for calendar year 
2013. 
‘‘(v) NATIONAL HIGHWAY CONSTRUC-
TION
COST
INDEX
FOR
ANY
CALENDAR 
YEAR.—For purposes of clause (iv), the 
National Highway Construction Cost Index 
for any calendar year is the average of the 
National Highway Construction Cost Index 
as of the close of the 12-month period end-
ing on August 31 of such calendar year. 
‘‘(vi) NATIONAL HIGHWAY CONSTRUC-
TION COST INDEX.—For purposes of clause 
(iv), the term ‘National Highway Construc-
tion Cost Index’ means the last National 
Highway Construction Cost Index pub-
lished by the Department of Transpor-
tation. 
‘‘(vii) CAFE FUEL
SAVED
ADJUST-
MENT.—For purposes of clause (iii), the 
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CAFE fuel saved adjustment for a cal-
endar year is the percentage (if any) by 
which annual motor fuel use is reduced by 
the estimated CAFE fuel saved for that 
calendar year from the annual motor fuel 
use for the prior calendar year. 
‘‘(viii) 
ESTIMATED
CAFE
FUEL 
SAVED.—The term ‘estimated CAFE fuel 
saved’ for a calendar year means the com-
bined fuel saved estimates issued by the 
National Highway Traffic Safety Adminis-
tration and the Environmental Protection 
Agency for passenger automobiles and 
light trucks and published in the Federal 
Register on May 7, 2010, and October 15, 
2012, as part of final rules to implement 
corporate average fuel economy standards, 
and such successor estimates included in 
successor rules. 
‘‘(ix) ANNUAL
MOTOR
FUEL
USE.— 
The term ‘annual motor fuel use’ means 
the total number of gallons of gasoline 
used in a calendar year in highway use, as 
published by the Federal Highway Admin-
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istration as part of its annual motor fuel 
use survey. 
‘‘(x) NOTICE.—Not later than Decem-
ber 15, 2014, and annually thereafter, the 
Secretary shall publish the rates of tax as 
adjusted under this subparagraph for the 
succeeding calendar year.’’. 
(b) RETAIL FUEL EXCISE TAX.—Subsection (a) of 
section 4041 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new para-
graph: 
‘‘(4) HIGHWAY INFLATION ADJUSTMENT.— 
‘‘(A) IN GENERAL.—In the case of any cal-
endar year after 2014, each dollar amount in 
paragraphs (1)(C)(iii)(I), (2)(B)(ii), and (3)(A) 
of 
this 
subsection 
and 
in 
subsections 
(b)(2)(A)(i), (b)(2)(C)(i), and (m)(1) shall be 
increased by an amount equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the double indexation determined 
under section 4081(a)(2)(E) for the cal-
endar year. 
‘‘(B) ROUNDING.—Any increase deter-
mined under subparagraph (A) shall be rounded 
to the nearest tenth of a cent.’’. 
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‘‘(C) the Highway Trust Fund financing 
rate is $6.75 a barrel.’’. 
(2) ADJUSTMENT
FOR
INFLATION.—Section 
4611(c) of the Internal Revenue Code of 1986 is 
amended by adding at the end the following: 
‘‘(3) HIGHWAY TRUST FUND FINANCING RATE 
INFLATION ADJUSTMENT.— 
‘‘(A) IN GENERAL.—In the case of any cal-
endar year after 2014, the dollar amount in 
paragraph (2)(C) shall be increased by an 
amount equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the double indexation determined 
under section 4081(a)(2)(E) for the cal-
endar year. 
‘‘(B) ROUNDING.—Any increase deter-
mined under subparagraph (A) shall be rounded 
to the nearest tenth of a cent.’’. 
(3) CREDIT FOR MANUFACTURERS TAX.—Sec-
tion 4611 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following: 
‘‘(g) CREDIT FOR MANUFACTURERS TAX.— 
‘‘(1) IN
GENERAL.—Under regulations pre-
scribed by the Secretary, there shall be allowed to 
the person liable for the tax under subsection (d) a 
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credit against so much of the tax imposed by sub-
section (a) as relates to the Highway Trust Fund fi-
nancing rate for each gallon of fuel— 
‘‘(A) produced, removed (within the mean-
ing of section 4083(c)), or sold (as the case 
may be) with respect to the barrel of crude oil 
or petroleum on which tax is imposed under 
subsection (a), and 
‘‘(B) on which tax is imposed under sec-
tion 4081(a). 
‘‘(2) NOT
APPLICABLE
TO
GASOLINE.—Para-
graph (1) shall not apply to gasoline (as defined in 
section 4083(a)(2)). 
‘‘(3) AMOUNT OF CREDIT.—The amount of the 
credit allowable under paragraph (1) with respect to 
a gallon of a type of fuel produced from a barrel 
shall be the product of— 
‘‘(A) the Highway Trust Fund financing 
rate (as defined in section 4611(c)(2)) multi-
plied by 1⁄42, 
‘‘(B) the sum of— 
‘‘(i) 1, plus 
‘‘(ii) the absolute value of the proc-
essing gain from the refinery yield (ex-
pressed as a decimal number) for the sec-
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ond calendar year preceding the year in 
which payment under paragraph (1) is 
made, as determined by the Energy Infor-
mation Administration of the Department 
of Energy, and 
‘‘(C) the refinery yield for a product (ex-
pressed as a decimal number) for the second 
calendar year preceding the year in which pay-
ment under paragraph (1) is made, as deter-
mined by the Energy Information Administra-
tion of the Department of Energy.’’. 
(4) LEAKING
UNDERGROUND
STORAGE
TANK 
TRUST FUND TAX.—Section 4611 of the Internal 
Revenue Code of 1986, as amended by paragraph 
(3), is amended by adding at the end the following: 
‘‘(h) LEAKING
UNDERGROUND
STORAGE
TANK 
TRUST FUND TAX.—The rate of tax specified in sub-
section (c)(1)(C) shall be increased by 0.1 cent per gallon 
equivalent. For purposes of the preceding sentence, the 
per gallon equivalent shall be determined in accordance 
with section 4611(g)(3) by inserting 0.1 cent per gallon 
for the Highway Trust Fund financing rate in subpara-
graph (A) thereof. The increase in tax under this sub-
section shall in this title be added to and treated as part 
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of the Leaking Underground Storage Tank Trust Fund 
financing rate under section 4081(a)(2)(B).’’. 
(c) CREDIT FOR ALCOHOL FUEL, BIODIESEL, AND 
ALTERNATIVE FUEL MIXTURES.—Section 6426(a) of the 
Internal Revenue Code of 1986 is amended by striking 
‘‘and’’ at the end of paragraph (1), by striking the period 
at the end of paragraph (2) and inserting ‘‘, and’’, and 
by inserting after paragraph (2) the following: 
‘‘(3) against so much of the tax imposed by sec-
tion 4611 as is attributable to subsection (c)(1)(C) 
an amount equal to the sum of the credits described 
in subsections (b), (c), and (e), determined on the 
same fraction of the amount of such tax as the gal-
lon of taxable fuel is of the whole barrel.’’. 
(d) CONFORMING AMENDMENT.—Section 34(a) of 
the Internal Revenue Code of 1986 is amended by striking 
‘‘and’’ at the end of paragraph (2), by striking the period 
at the end of paragraph (3), and by inserting after para-
graph (3) the following new paragraph: 
‘‘(4) under section 4611(g)(3).’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on January 1, 2015. 
SEC. 6. TRANSPORTATION BONDS. 
(a) ISSUANCE.—The Secretary of the Treasury shall, 
pursuant to subchapter I of chapter 31 of title 31, United 
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States Code, issue bonds which meet the terms and condi-
tions of subsection (b), and the bond revenue (other than 
capitalized interest described in subsection (b)(2)) shall be 
transferred to the Highway Trust Fund and allocated be-
tween the Highway Account and the Mass Transit Ac-
count using the same ratio as provided under section 
9503(e)(2) of the Internal Revenue Code of 1986. 
(b) TERMS AND CONDITIONS.—The terms and condi-
tions of bonds referred to in this subsection are the fol-
lowing: 
(1) TERM.—Bonds issued under subsection (a) 
shall have a term of 10 years. 
(2) INTEREST.—Interest shall be paid from the 
Temporary Transportation Bond Repayment Ac-
count. 
(3) CAPITALIZED INTEREST.—The Secretary of 
the Treasury may include capitalized interest in the 
principal amount of bonds issued under subsection 
(a) to pay the interest that the issuer estimates will 
become due and payable on the bonds prior to the 
receipt 
of 
sufficient 
transfers 
under 
section 
9503(g)(2) of the Internal Revenue Code of 1986 to 
the Temporary Transportation Bond Repayment Ac-
count. Capitalized interest shall be deposited into the 
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Transportation Bond Repayment Account and ap-
plied to interest on such bonds. 
(4) AMOUNT
OUTSTANDING.—The total face 
amount of bonds issued under this section may not 
exceed the amount the Secretary of the Treasury de-
termines can be redeemed, taking into account this 
section and section 9503(g) of the Internal Revenue 
Code of 1986. 
(c) TRANSFERS OF TRANSPORTATION BOND PRO-
CEEDS.—Section 9503(b) of the Internal Revenue Code 
of 1986 is amended by adding at the end the following 
new paragraph: 
‘‘(7) TRANSFERS
OF
TRANSPORTATION
BOND 
PROCEEDS.—There are hereby appropriated to the 
Highway Trust Fund amounts equivalent to the pro-
ceeds received in the Treasury before October 1, 
2016, under section 6(a) of the Repeal and Rebuild 
Act of 2014.’’. 
(d) TEMPORARY TRANSPORTATION BOND REPAY-
MENT ACCOUNT.—Section 9503 of the Internal Revenue 
Code of 1986 is amended by adding at the end the fol-
lowing new subsection: 
‘‘(g) ESTABLISHMENT OF TEMPORARY TRANSPOR-
TATION BOND REPAYMENT ACCOUNT.— 
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