I
104TH CONGRESS
1ST SESSION
H. R. 2789
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
DECEMBER 15, 1995
Mrs. JOHNSON of Connecticut introduced the following bill; which was referred
to the Committee on Ways and Means, and in addition to the Committee
on Transportation and Infrastructure, for a period to be subsequently de-
termined 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 1995’’.
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 section 9503(c)(7)
or section 9602(b).
‘‘(b) EXPENDITURES FROM TRUST FUND.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), amounts in the Intercity Passenger Rail
Trust Fund shall be available, as provided by appro-
priation Acts, to finance qualified expenses of—
‘‘(A) the National Railroad Passenger Cor-
poration, and
‘‘(B) each eligible State, to the extent de-
termined under paragraph (3).
‘‘(2) DIRECT SPENDING AMOUNTS.—The follow-
ing amounts in the Intercity Passenger Rail Trust
Fund are hereby appropriated to finance qualified
expenses:
Amount
‘‘Fiscal year:
Available:
1996 .........................................................................................$131,000,000
1997 ......................................................................................... 663,000,000
1998 ......................................................................................... 667,000,000
1999 ......................................................................................... 670,000,000
2000 ......................................................................................... 672,000,000.
‘‘(3) MAXIMUM AMOUNT OF FUNDS TO ELIGI-
BLE
STATES.—Each eligible State shall receive
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 under this
subsection for such fiscal year, and
‘‘(ii) the number of months such State
was an eligible State in the preceding fiscal
year.
If the amount determined under subparagraph (B)
exceeds the amount under subparagraph (A) for any
fiscal year, the amount under subparagraph (B) for
the following fiscal year shall be increased by the
amount of such excess.
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) QUALIFIED EXPENSES.—The term ‘quali-
fied expenses’ means expenses incurred, with respect
to obligations made, after December 31, 1995, and
before October 1, 2000—
‘‘(A) in the case of—
‘‘(i) the National Railroad Passenger
Corporation, for capital improvements in
intercity passenger rail service, or
‘‘(ii) an eligible State, for capital im-
provements in intercity rail service, and
‘‘(B) certified by the Secretary of Trans-
portation as meeting the requirements of sub-
paragraph (A).
‘‘(2) ELIGIBLE
STATE.—The term ‘eligible
State’ means any State which does not receive inter-
city passenger rail service from the National Rail-
road Passenger Corporation.
‘‘(d) TERMINATION.—The Secretary shall determine
and retain, not later than October 1, 2000, 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 Mass Transit Account
under section 9503(e).’’
(b) TRANSFERS FROM HIGHWAY TRUST FUND.—
Section 9503(c) of the Internal Revenue Code of 1986 (re-
lating to expenditures from Highway Trust Fund) is
amended by adding at the end the following new para-
graph:
‘‘(7) TRANSFERS
FROM
TRUST
FUND
FOR
INTERCITY PASSENGER RAIL.—
‘‘(A) IN
GENERAL.—The Secretary shall
transfer from time to time from the Highway
Trust Fund to the Intercity Passenger Rail
Trust Fund under section 9512 the intercity
passenger rail portion of the amounts appro-
priated to the Highway Trust Fund under sub-
section (b) which are attributable to taxes
under sections 4041 and 4081 imposed after
December 31, 1995, and before October 1,
2000.
‘‘(B) INTERCITY
PASSENGER
RAIL
POR-
TION.—For purposes of subparagraph (A), the
term ‘intercity passenger rail portion’ means
the amount—
‘‘(i) determined at the rate of 0.5 cent
for each gallon with respect to which tax
was imposed under section 4041 or 4081,
and
‘‘(ii) reduced (but not below zero) by
the amount by which—
‘‘(I) the outlays of the Mass
Transit Account for the fiscal year
with respect to which such tax was
imposed, as estimated by the Sec-
retary, exceed
‘‘(II) the available funds in the
Mass Transit Account for such fiscal
year (as so estimated).’’
(c) CONFORMING AMENDMENTS.—
(1) Section 9503(e)(2) of the Internal Revenue
Code of 1986 (relating to transfers to mass transit
account) is amended by striking ‘‘4081.’’ and insert-
ing ‘‘4081 (for the period beginning after December
31, 1995, and ending before October 1, 2000, an
amount determined at the rate of 1.5 cents for each
such gallon, increased by the amount described in
subsection (c)(7)(B)(ii)).’’.
(2) The table of sections for subchapter A of
chapter 98 of such Code (relating to trust fund
code) is amended by adding at the end the following
new item:
‘‘Sec. 9512. Intercity Passenger Rail Trust Fund.’’
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to taxes imposed after
December 31, 1995.
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