neering 
and 
design 
work, 
and 
other 
preconstruction activities; and 
(B) construction, reconstruction, rehabili-
tation, acquisition of real property (including 
land related to a project and improvements to 
land), environmental mitigation, construction 
contingencies, acquisition of equipment, and 
operational improvements. 
(3) PROGRAM.—The term ‘‘program’’ means 
the National Freight Mobility Infrastructure Im-
provement Program established under subsection 
(a). 
(4) STATE.—The term ‘‘State’’ has the mean-
ing given such term in section 101(a) of title 23, 
United States Code. 
SEC. 3. FREIGHT MOBILITY INFRASTRUCTURE TAX. 
(a) IMPOSITION OF TAX.—Chapter 33 of the Internal 
Revenue Code of 1986 is amended by adding after sub-
chapter C the following new subchapter: 
‘‘Subchapter D—Transportation by Freight 
and Highway 
‘‘Sec. 4286. Imposition of tax. 
‘‘SEC. 4286. IMPOSITION OF TAX. 
‘‘(a) IN GENERAL.—There is hereby imposed upon 
taxable ground transportation of property within the 
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United States a tax equal to 1 percent of the amount paid 
for such transportation. 
‘‘(b) BY WHOM PAID.— 
‘‘(1) IN
GENERAL.—Except as provided by 
paragraph (2), the tax imposed by subsection (a) 
shall be paid— 
‘‘(A) by the person making the payment 
subject to tax, or 
‘‘(B) in the case of transportation by a re-
lated person, by the person for whom such 
transportation is made. 
‘‘(2) PAYMENTS MADE OUTSIDE THE UNITED 
STATES.—If a payment subject to tax under sub-
section (a) is made outside the United States and 
the person making such payment does not pay such 
tax, such tax— 
‘‘(A) shall be paid by the person to whom 
the property is delivered in the United States 
after the final segment of transportation in the 
United States, and 
‘‘(B) shall be collected by the person fur-
nishing the last segment of such transportation. 
‘‘(3) DETERMINATIONS OF AMOUNTS PAID IN 
CERTAIN CASES.—For purposes of this section, rules 
similar to the rules of section 4271(c) shall apply. 
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‘‘(c) TRANSPORTATION BY RELATED PERSONS.—In 
the case of transportation of property by the taxpayer or 
a person related to the taxpayer, the fair market value 
of such transportation shall be the amount which would 
be paid for transporting such property if such property 
were transported by an unrelated person, determined on 
an arms’ length basis. 
‘‘(d) DEFINITIONS.—For purposes of this sub-
chapter— 
‘‘(1) TAXABLE GROUND TRANSPORTATION.— 
‘‘(A) IN
GENERAL.—The term ‘taxable 
ground transportation’ means transportation of 
property by— 
‘‘(i) freight rail, or 
‘‘(ii) commercial motor vehicle (as de-
fined in section 31101(1) of title 49, 
United States Code) for a distance of more 
than 50 miles. 
‘‘(B) PASSENGER BAGGAGE EXCLUDED.— 
For purposes of subparagraph (A), the term 
‘property’ does not include baggage accom-
panying a passenger traveling on an established 
line. 
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‘‘(2) RELATED PERSON.—A person (hereinafter 
in this paragraph referred to as the ‘related person’) 
is related to any person if— 
‘‘(A) the related person bears a relation-
ship to such person specified in section 267(b) 
or 707(b)(1), or 
‘‘(B) the related person and such person 
are engaged in trades or businesses under com-
mon control (within the meaning of subsections 
(a) and (b) of section 52). 
For purposes of the preceding sentence, in applying 
section 267(b) and 707(b)(1), ‘10 percent’ shall be 
substituted for ‘50 percent’. 
‘‘(e) TRANSFER OF AMOUNTS EQUIVALENT TO TAX 
TO NATIONAL FREIGHT MOBILITY INFRASTRUCTURE 
FUND.—There are hereby appropriated to the National 
Freight Mobility Infrastructure Fund amounts equivalent 
to the taxes received in the Treasury under subsection (a). 
‘‘(f) EXEMPTION FOR UNITED STATES AND POSSES-
SIONS AND STATE AND LOCAL GOVERNMENTS.—The tax 
imposed by subsection (a) shall not apply to the transpor-
tation of property purchased for the exclusive use of the 
United States, or any State or political subdivision there-
of.’’. 
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(b) CREDITS OR REFUNDS TO PERSONS WHO COL-
LECTED CERTAIN TAXES.—Section 6415 of such Code is 
amended by striking ‘‘or 4271’’ each place it appears and 
inserting ‘‘4271, or 4286’’. 
(c) REGULATIONS.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary of 
the Treasury shall issue regulations to carry out the 
amendments made by this section. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to transportation beginning on or 
after the last day of the 180-day period beginning on the 
date of the issuance of regulations under subsection (c). 
SEC. 4. NATIONAL FREIGHT MOBILITY INFRASTRUCTURE 
FUND. 
Subchapter A of chapter 98 of the Internal Revenue 
Code of 1986 is amended by adding at the end the fol-
lowing new section: 
‘‘SEC. 9512. NATIONAL FREIGHT MOBILITY INFRASTRUC-
TURE FUND. 
‘‘(a) CREATION OF TRUST FUND.—There is estab-
lished in the Treasury of the United States a trust fund 
to be known as the ‘National Freight Mobility Infrastruc-
ture Fund’ (hereinafter in this section referred to as the 
‘Fund’) consisting of such amounts as may be appro-
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priated or credited to such Fund as provided in this sec-
tion or section 9602(b). 
‘‘(b) TRANSFERS TO THE FUND.—There are hereby 
appropriated to the Fund amounts equivalent to taxes re-
ceived in the Treasury under section 4286. 
‘‘(c) EXPENDITURES FROM FUND.—Amounts in the 
Fund shall be made available to the Secretary of Trans-
portation for each of the fiscal years 2014 to 2039, with-
out further appropriation, for making expenditures to 
meet the obligations of the United States to carry out sec-
tion 2 of the Freight Infrastructure Reinvestment Act of 
2013, not more than 4 percent of which for any fiscal year 
may be used for administrative expenses.’’. 
Æ 
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