I
105TH CONGRESS
1ST SESSION
H. R. 1437
To amend the Internal Revenue Code of 1986 to provide for the establishment
of an intercity passenger rail trust fund, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 24, 1997
Mr. CASTLE (for himself, Mrs. JOHNSON of Connecticut, Mr. CARDIN, Mr.
BACHUS, Mr. DEFAZIO, Mr. BOEHLERT, Mr. MCGOVERN, Mr. NEAL of
Massachusetts, Mr. SERRANO, Mr. BEREUTER, Mr. LAHOOD, Mr. LEWIS
of Georgia, and Mr. OLVER) introduced the following bill; which was re-
ferred to the Committee on Ways and Means, and in addition to the
Committee on Transportation and Infrastructure, for a period to be sub-
sequently determined by the Speaker, in each case for consideration of
such provisions as fall within the jurisdiction of the committee concerned
A BILL
To amend the Internal Revenue Code of 1986 to provide
for the establishment of an intercity passenger rail trust
fund, and for other purposes.
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 ‘‘Intercity Passenger
Rail Trust Fund Act of 1997’’.
SEC. 2. INTERCITY PASSENGER RAIL TRUST FUND.
(a) ESTABLISHMENT OF TRUST FUND.—Subchapter
A of chapter 98 of the Internal Revenue Code of 1986
(relating to trust fund code) is amended by adding at the
end the following new section:
‘‘SEC. 9512. INTERCITY PASSENGER RAIL TRUST 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 ‘Intercity Passenger Rail Trust Fund’,
consisting of such amounts as may be transferred or cred-
ited to the Trust Fund as provided in this section or sec-
tion 9602(b).
‘‘(b) TRANSFER
TO INTERCITY PASSENGER RAIL
TRUST FUND OF AMOUNTS EQUIVALENT TO CERTAIN
TAXES.—There are hereby appropriated to the Intercity
Passenger Rail Trust Fund amounts equivalent to the
taxes received in the Treasury at the rate of .5 cent for
each gallon with respect to which tax is imposed under
section 4041 or 4081 after September 30, 1997, and be-
fore October 1, 2002, but only to the extent such taxes
are not attributable to the Highway Trust Fund financing
rate.
‘‘(c) EXPENDITURES FROM TRUST FUND.—
‘‘(1) IN GENERAL.—Amounts in the Intercity
Passenger Rail Trust Fund shall be available with-
out fiscal year limitation to finance qualified ex-
penses of—
‘‘(A) the National Railroad Passenger Cor-
poration, and
‘‘(B) each non-Amtrak State, to the extent
determined under paragraph (2).
‘‘(2) MAXIMUM AMOUNT OF FUNDS TO NON-AM-
TRAK
STATES.—Each non-Amtrak State shall re-
ceive under this subsection an amount equal to the
lesser of—
‘‘(A) the State’s qualified expenses for the
fiscal year, or
‘‘(B) the product of—
‘‘(i) 1⁄12 of 1 percent of the lesser of—
‘‘(I) 
the 
aggregate 
amounts
transferred and credited to the Inter-
city Passenger Rail Trust Fund under
subsection (a) for such fiscal year, or
‘‘(II) the aggregate amounts ap-
propriated from the Intercity Pas-
senger Rail Trust Fund for such fiscal
year, and
‘‘(ii) the number of months such State
is a non-Amtrak State in such fiscal year.
the maintenance of existing equipment, in
intercity passenger rail or bus service, and
the payment of interest and principal on
obligations incurred for such acquisition,
upgrading, and maintenance, and
‘‘(B) certified by the Secretary of Trans-
portation on October 1 as meeting the require-
ments of subparagraph (A) and as qualified for
payment under subsection (e) for the fiscal year
beginning on such date.
‘‘(2) NON-AMTRAK STATE.—The term ‘non-Am-
trak State’ means any State which does not receive
intercity passenger rail service from the National
Railroad Passenger Corporation.
‘‘(e) CONTRACT AUTHORITY.—Notwithstanding any
other provision of law, the Secretary of Transportation
shall certify expenses as qualified for a fiscal year on Octo-
ber 1 of such year, in an amount not to exceed the amount
of receipts estimated by the Secretary of the Treasury to
be transferred to the Intercity Passenger Rail Trust Fund
for such fiscal year. Such certification shall result in a
contractual obligation of the United States for the pay-
ment of such expenses.
‘‘(f) TAX TREATMENT OF TRUST FUND EXPENDI-
TURES.—With respect to any payment of qualified ex-
penses from the Intercity Passenger Rail Trust Fund dur-
ing any taxable year to a taxpayer—
‘‘(1) such payment shall not be included in the
gross income of the taxpayer for such taxable year,
‘‘(2) no deduction shall be allowed to the tax-
payer with respect to any amount paid or incurred
which is attributable to such payment, and
‘‘(3) the basis of any property shall be reduced
by the portion of the cost of such property which is
attributable to such payment.
‘‘(g) TERMINATION.—The Secretary shall determine
and retain, not later than October 1, 2002, the amount
in the Intercity Passenger Rail Trust Fund necessary to
pay any outstanding qualified expenses, and shall transfer
any amount not so retained to the general fund of the
Treasury.’’
(b) CONFORMING AMENDMENT.—The table of sec-
tions for subchapter A of chapter 98 of such Code (relat-
ing to trust fund code) is amended by adding at the end
the following new item:
‘‘Sec. 9512. Intercity Passenger Rail Trust Fund.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to taxes imposed after
September 30, 1997.
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