†
783
HR 3 EAS
4041(a)(1) other than by reason of a prior imposition
of tax.’’.
(B) REFUNDS FOR NONCOMMERCIAL AVIA-
TION.—Section 6427(l) (relating to nontaxable
uses of diesel fuel, kerosene and aviation fuel) is
amended by redesignating paragraph (5) as
paragraph (6) and by inserting after paragraph
(4) the following new paragraph:
‘‘(5) REFUNDS FOR KEROSENE USED IN NON-
COMMERCIAL AVIATION.—
‘‘(A) IN GENERAL.—In the case of kerosene
used in aviation not described in paragraph
(4)(A) (other than any use which is exempt from
the tax imposed by section 4041(c) other than by
reason of a prior imposition of tax), paragraph
(1) shall not apply to so much of the tax imposed
by section 4081 as is attributable to—
‘‘(i) the Leaking Underground Storage
Tank Trust Fund financing rate imposed
by such section, and
‘‘(ii) so much of the rate of tax speci-
fied in section 4081(a)(2)(A)(iii) as does
not exceed the rate specified in section
4081(a)(2)(C)(ii).
†
784
HR 3 EAS
‘‘(B) PAYMENT TO ULTIMATE, REGISTERED
VENDOR.—The amount which would be paid
under paragraph (1) with respect to any ker-
osene shall be paid to the ultimate vendor of such
kerosene, if such vendor—
‘‘(i) is registered under section 4101,
and
‘‘(ii) meets the requirements of sub-
paragraph (A), (B), or (D) of section
6416(a)(1).’’.
(3) CONFORMING AMENDMENTS.—
(A) Section 4041(a)(1)(B) is amended by
striking the last sentence.
(B) The heading for subsection (l) of section
6427 is amended by striking ‘‘, KEROSENE AND
AVIATION
FUEL’’ and inserting ‘‘AND
KER-
OSENE’’.
(C) Section 4082(d)(2)(B) is amended by
striking ‘‘section 6427(l)(5)(B)’’ and inserting
‘‘section 6427(l)(6)(B)’’.
(D) Section 6427(i)(4)(A) is amended—
(i) by striking ‘‘paragraph (4)(B) or
(5)’’ both places it appears and inserting
‘‘paragraph (4)(B), (5), or (6)’’, and
†
785
HR 3 EAS
(ii) by striking ‘‘subsection (b)(4) and
subsection (l)(5)’’ in the last sentence and
inserting ‘‘subsections (b)(4), (l)(5), and
(l)(6)’’.
(E) Paragraph (4) of section 6427(l) is
amended—
(i) by striking ‘‘aviation-grade’’ in
subparagraph (A),
(ii) 
by 
striking 
‘‘section
4081(a)(2)(A)(iv)’’ and inserting ‘‘section
4081(a)(2)(iii)’’,
(iii) by striking ‘‘aviation-grade ker-
osene’’ in subparagraph (B) and inserting
‘‘kerosene used in commercial aviation as
described in subparagraph (A)’’, and
(iv) by striking ‘‘AVIATION-GRADE KER-
OSENE’’ in the heading thereof and insert-
ing ‘‘KEROSENE
USED
IN
COMMERCIAL
AVIATION’’.
(F) Section 6427(l)(6)(B), as redesignated
by paragraph (2)(B), is amended by striking
‘‘aviation-grade kerosene’’ and inserting ‘‘ker-
osene used in aviation’’.
†
786
HR 3 EAS
(c) TRANSFERS FROM HIGHWAY TRUST FUND
OF
TAXES ON FUELS USED IN AVIATION TO AIRPORT AND AIR-
WAY TRUST FUND.—
(1) IN GENERAL.—Section 9503(c) (relating to
expenditures from Highway Trust Fund), as amended
by this Act, is amended by adding at the end the fol-
lowing new paragraph:
‘‘(7) TRANSFERS FROM THE TRUST FUND FOR
CERTAIN AVIATION FUEL TAXES.—The Secretary shall
pay from time to time from the Highway Trust Fund
into the Airport and Airway Trust Fund amounts (as
determined by the Secretary) equivalent to the taxes
received on or after October 1, 2005, and before Octo-
ber 1, 2011, under sections 4041 and 4081 with re-
spect to fuels used in a nontaxable use (as described
in section 6427(l)(2)(B)) to the extent such amounts
exceed the amounts paid with respect to such use
under paragraphs (4) and (5) of section 6427(l).’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 9502(a) is amended by striking
‘‘appropriated or credited to the Airport and
Airway Trust Fund as provided in this section
or section 9602(b)’’ and inserting ‘‘appropriated,
credited, or paid into the Airport and Airway
†
787
HR 3 EAS
Trust Fund as provided in this section, section
9503(c)(7), or section 9602(b)’’.
(B) Section 9502(b)(1) is amended—
(i) by striking ‘‘subsections (c) and (e)
of section 4041’’ in subparagraph (A) and
inserting ‘‘section 4041(c)’’, and
(ii) by striking ‘‘and aviation-grade
kerosene’’ in subparagraph (C) and insert-
ing ‘‘and kerosene to the extent attributable
to 
the 
rate 
specified 
in 
section
4081(a)(2)(C)’’.
(C) Section 9503(b) is amended by striking
paragraph (3).
(d) EFFECTIVE DATE.—The amendments made by this
section shall apply to fuels or liquids removed, entered, or
sold after September 30, 2005.
SEC. 5612. REPEAL OF ULTIMATE VENDOR REFUND CLAIMS
WITH RESPECT TO FARMING.
(a) IN
GENERAL.—Subparagraph (A) of section
6427(l)(6) (relating to registered vendors to administer
claims for refund of diesel fuel or kerosene sold to farmers
and State and local governments), as redesignated by sec-
tion 5611, is amended to read as follows:
†
788
HR 3 EAS
‘‘(A) IN
GENERAL.—Paragraph (1) shall
not apply to diesel fuel or kerosene used by a
State or local government.’’.
(b) CONFORMING AMENDMENT.—The heading of para-
graph (6) of section 6427(l), as so redesignated, is amended
by striking ‘‘FARMERS AND’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall apply to sales after September 30, 2005.
SEC. 5613. REFUNDS OF EXCISE TAXES ON EXEMPT SALES
OF FUEL BY CREDIT CARD.
(a) GASOLINE.—
(1) IN
GENERAL.—Paragraph (4) of section
6416(a) (relating to condition to allowance) is
amended—
(A) by inserting ‘‘except as provided in sub-
paragraph (B),’’ after ‘‘For purposes of this sub-
section,’’ in subparagraph (A),
(B) by redesignating subparagraph (B) as
subparagraph (C) and by inserting after sub-
paragraph (A) the following new subparagraph:
‘‘(B) CREDIT CARD ISSUER.—For purposes
of this subsection, if the sale of gasoline described
in subparagraph (A) (determined without regard
to the registration status of the ultimate vendor)
is made by means of a credit card issued to the
†
789
HR 3 EAS
ultimate purchaser, paragraph (1) shall not
apply and the person extending the credit to the
ultimate purchaser shall be treated as the person
(and the only person) who paid the tax, but only
if such person—
‘‘(i) is registered under section 4101,
and
‘‘(ii) has established, under regulations
prescribed by the Secretary, that such
person—
‘‘(I) has not collected the amount
of the tax from the person who pur-
chased such article, or
‘‘(II) has obtained the written
consent from the ultimate purchaser to
the allowance of the credit or refund,
and
‘‘(iii) has so established that such
person—
‘‘(I) has repaid or agreed to repay
the amount of the tax to the ultimate
vendor,
‘‘(II) has obtained the written
consent of the ultimate vendor to the
allowance of the credit or refund, or
†
790
HR 3 EAS
‘‘(III) has otherwise made ar-
rangements which directly or indi-
rectly assure the ultimate vendor of re-
imbursement of such tax.’’,
(C) by striking ‘‘subparagraph (A)’’ in sub-
paragraph (C), as redesignated by paragraph
(2), and inserting ‘‘subparagraph (A) or (B)’’,
(D) by inserting ‘‘or credit card issuer’’
after ‘‘vendor’’ in subparagraph (C), as so redes-
ignated, and
(E) by inserting ‘‘OR CREDIT CARD ISSUER’’
after ‘‘VENDOR’’ in the heading thereof.
(2) 
CONFORMING
AMENDMENT.—Section
6416(b)(2) is amended by adding at the end the fol-
lowing new sentence: ‘‘Subparagraphs (C) and (D)
shall not apply in the case of any tax imposed on
gasoline under section 4081 if the requirements of
subsection (a)(4) are not met.’’
(b) DIESEL FUEL OR KEROSENE.—Paragraph (6) of
section 6427(l) (relating to nontaxable uses of diesel fuel
and kerosene), as redesignated by section 5611, is
amended—
(1) by striking ‘‘The amount’’ in subparagraph
(C) and inserting ‘‘Except as provided in subpara-
graph (D), the amount’’, and
†
791
HR 3 EAS
(2) by adding at the end the following new sub-
paragraph:
‘‘(D) CREDIT CARD ISSUER.—For purposes
of this paragraph, if the sale of any fuel de-
scribed in subparagraph (A) (determined without
regard to the registration status of the ultimate
vendor) is made by means of a credit card issued
to the ultimate purchaser, the Secretary shall
pay to the person extending the credit to the ulti-
mate purchaser the amount which would have
been paid under paragraph (1) (but for subpara-
graph (A) or (B)), but only if such person meets
the requirements of clauses (i), (ii), and (iii) of
section 6416(a)(4)(B).’’.
(c) CONFORMING PENALTY AMENDMENTS.—
(1) Section 6206 (relating to special rules appli-
cable to excessive claims under sections 6420, 6421,
and 6427) is amended—
(A) by striking ‘‘Any portion’’ in the first
sentence and inserting ‘‘Any portion of a refund
made under section 6416(a)(4) and any por-
tion’’,
(B) by striking ‘‘payments under sections
6420’’ in the first sentence and inserting ‘‘re-
†
792
HR 3 EAS
funds under section 6416(a)(4) and payments
under sections 6420’’,
(C) by striking ‘‘section 6420’’ in the second
sentence and inserting ‘‘section 6416(a)(4),
6420’’, and
(D) by striking ‘‘SECTIONS
6420, 6421,
AND 6427’’ in the heading thereof and inserting
‘‘CERTAIN SECTIONS’’.
(2) Section 6675(a) is amended by inserting
‘‘section 6416(a)(4) (relating to certain sales of gaso-
line),’’ after ‘‘made under’’.
(3) Section 6675(b)(1) is amended by inserting
‘‘6416(a)(4),’’ after ‘‘under section’’.
(4) The item relating to section 6206 in the table
of sections for subchapter A of chapter 63 is amended
by striking ‘‘sections 6420, 6421, and 6427’’ and in-
serting ‘‘certain sections’’.
(d) EFFECTIVE DATE.—The amendments made by this
section shall apply to sales after December 31, 2005.
SEC. 5614. ADDITIONAL REQUIREMENT FOR EXEMPT PUR-
CHASES.
(a) STATE AND LOCAL GOVERNMENTS.—
(1) Subparagraph (C) of section 6416(b)(2) (re-
lating to specified uses and resales) is amended to
read as follows: