I 
110TH CONGRESS 
2D SESSION 
H. R. 6487 
To amend the Internal Revenue Code of 1986 to provide for a temporary 
reduction in the tax imposed on diesel fuel. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 14, 2008 
Ms. GIFFORDS 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 provide 
for a temporary reduction in the tax imposed on diesel fuel. 
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 ‘‘Diesel Tax Parity Act 
of 2008’’. 
SEC. 2. TEMPORARY REDUCTION IN DIESEL FUEL TAXES. 
(a) REDUCTION.— 
(1) IN GENERAL.—Section 4081 of the Internal 
Revenue Code of 1986 (relating to imposition of tax 
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on gasoline, diesel fuel, and kerosene) is amended by 
adding at the end the following new subsection: 
‘‘(f) TEMPORARY REDUCTION OF TAXES ON DIESEL 
FUEL.— 
‘‘(1) IN GENERAL.—During the applicable pe-
riod— 
‘‘(A) the rate of tax on diesel fuel under 
subsection (a)(2)(A)(iii) shall be 18.3 cents per 
gallon, and 
‘‘(B) the rate of tax with respect to diesel- 
water fuel emulsion described in subsection 
(a)(2)(D) shall be 14.84 cents per gallon. 
‘‘(2) APPLICABLE
PERIOD.—For purposes of 
this subsection, the term ‘applicable period’ means 
the period beginning on the date that is 30 days 
after the date of the enactment of this subsection 
and ending on December 31, 2008. 
‘‘(3) MAINTENANCE OF TRUST FUND DEPOS-
ITS.—In determining the amounts to be appro-
priated to the Highway Trust Fund under section 
9503 and to the Leaking Underground Storage 
Tank Trust Fund under 9508, an amount equal to 
the reduction in revenues to the Treasury by reason 
of this subsection shall be treated as taxes received 
in the Treasury under this section or section 4041.’’. 
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(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall take effect on the date of the 
enactment of this Act. 
(b) FLOOR STOCK REFUNDS.— 
(1) IN GENERAL.—If— 
(A) before the tax reduction date, a tax re-
ferred to in section 4081(f)(1) of the Internal 
Revenue Code of 1986 has been imposed under 
such Code 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 (hereafter in this 
subsection referred to as the ‘‘taxpayer’’), against 
the taxpayer’s subsequent semi-monthly deposit of 
such tax, 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 tax-
able event occurred on the tax reduction date. 
(2) TIME FOR FILING CLAIMS; CERTIFICATIONS 
NECESSARY TO FILE CLAIMS.— 
(A) IN
GENERAL.—No credit or refund 
shall be allowed or made under this sub-
section— 
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(i) unless claim therefor is filed with 
the Secretary before the date which is 6 
months after the tax reduction date, and 
(ii) in any case where liquid is held by 
a dealer (other than the taxpayer) on the 
tax reduction date, unless the taxpayer 
files with the Secretary— 
(I) a certification that the tax-
payer has given a credit to such deal-
er with respect to such liquid against 
the dealer’s first purchase of liquid 
from the taxpayer subsequent to the 
tax reduction date, and 
(II) a certification by such dealer 
that such dealer has given a credit to 
a succeeding dealer (if any) with re-
spect to such liquid against the suc-
ceeding dealer’s first purchase of liq-
uid from such dealer subsequent to 
the tax reduction date. 
(B) REASONABLENESS
OF
CLAIMS
CER-
TIFIED.—Any certification made under sub-
paragraph (A) shall include an additional cer-
tification that the claim for credit was reason-
ably based on the taxpayer’s or dealer’s past 
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business relationship with the succeeding deal-
er. 
(3) DEFINITIONS.—For purposes of this sub-
section— 
(A) the terms ‘‘dealer’’ and ‘‘held by a 
dealer’’ have the respective meanings given to 
such terms by section 6412 of such Code; ex-
cept that the term ‘‘dealer’’ includes a pro-
ducer, and 
(B) the term ‘‘tax reduction date’’ means 
the date that is 30 days after the date of the 
enactment of this Act. 
(4) CERTAIN RULES TO APPLY.—Rules similar 
to the rules of subsections (b) and (c) of section 
6412 of such Code shall apply for purposes of this 
subsection. 
(c) FLOOR STOCKS TAX.— 
(1) IMPOSITION OF TAX.—In the case of any 
liquid on which tax would have been imposed under 
section 4081 of the Internal Revenue Code of 1986 
during the applicable period but for the amendment 
made by subsection (a), and which is held on the 
floor stocks tax date by any person, there is hereby 
imposed a floor stocks tax in an amount equal to the 
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tax which would be imposed on such liquid had the 
taxable event occurred on the floor stocks tax date. 
(2) LIABILITY FOR TAX AND METHOD OF PAY-
MENT.— 
(A) LIABILITY FOR TAX.—A person hold-
ing a liquid on the floor stocks tax date to 
which the tax imposed by paragraph (1) applies 
shall be liable for such tax. 
(B) METHOD OF PAYMENT.—The tax im-
posed by paragraph (1) shall be paid in such 
manner as the Secretary shall prescribe. 
(C) TIME
FOR
PAYMENT.—The tax im-
posed by paragraph (1) shall be paid on or be-
fore the date which is 6 months after the floor 
stocks tax date. 
(3) DEFINITIONS.—For purposes of this sub-
section— 
(A) HELD BY A PERSON.—A liquid shall 
be considered as ‘‘held by a person’’ if title 
thereto has passed to such person (whether or 
not delivery to the person has been made). 
(B) DIESEL
FUEL.—The term ‘‘diesel 
fuel’’ has the meaning given such term by sec-
tion 4083 of such Code. 
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(C) FLOOR STOCKS TAX DATE.—The term 
‘‘floor stocks tax date’’ means January 1, 2009. 
(D) APPLICABLE PERIOD.—The term ‘‘ap-
plicable period’’ means the period described in 
section 4081(f)(2) of such Code. 
(4) EXCEPTION FOR EXEMPT USES.—The tax 
imposed by paragraph (1) shall not apply to diesel 
fuel held by any person exclusively for any use to the 
extent a credit or refund of the tax imposed by sec-
tion 4081 of such Code is allowable for such use. 
(5) EXCEPTION FOR FUEL HELD IN VEHICLE 
TANK.—No tax shall be imposed by paragraph (1) 
on diesel fuel held in the tank of a motor vehicle. 
(6) EXCEPTION
FOR
CERTAIN
AMOUNTS
OF 
FUEL.— 
(A) IN
GENERAL.—No tax shall be im-
posed by paragraph (1) on diesel fuel held on 
such date by any person if the aggregate 
amount of diesel 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 subparagraph. 
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(B) EXEMPT FUEL.—For purposes of sub-
paragraph (A), there shall not be taken into ac-
count fuel held by any person which is exempt 
from the tax imposed by paragraph (1) by rea-
son of paragraph (4) or (5). 
(C) CONTROLLED GROUPS.—For purposes 
of this paragraph— 
(i) 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 sub-
section (a) of section 1563 of such 
Code; except that for such purposes 
the phrase ‘‘more than 50 percent’’ 
shall be substituted for the phrase ‘‘at 
least 80 percent’’ each place it ap-
pears in such subsection. 
(ii) 
NONINCORPORATED
PERSONS 
UNDER COMMON CONTROL.—Under regula-
tions prescribed by the Secretary, prin-
ciples similar to the principles of clause (i) 
shall apply to a group of persons under 
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common control where 1 or more of such 
persons is not a corporation. 
(7) OTHER LAW APPLICABLE.—All provisions of 
law, including penalties, applicable with respect to 
the taxes imposed by section 4081 of such Code 
shall, insofar as applicable and not inconsistent with 
the provisions of this paragraph, apply with respect 
to the floor stock taxes imposed by paragraph (1) to 
the same extent as if such taxes were imposed by 
such section 4081. 
(d) SECRETARY.—For purposes of this section, the 
term ‘‘Secretary’’ means the Secretary of the Treasury or 
the Secretary’s delegate. 
Æ 
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