Intercity Passenger Rail Trust Fund Act of 1997

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 established 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 credited to the Trust Fund as provided in this section 
or section 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 before 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 without fiscal year limitation to 
        finance qualified expenses of--
                    ``(A) the National Railroad Passenger Corporation, 
                and
                    ``(B) each non-Amtrak State, to the extent 
                determined under paragraph (2).
            ``(2) Maximum amount of funds to non-Amtrak states.--Each 
        non-Amtrak 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 
                                Intercity Passenger Rail Trust Fund 
                                under subsection (a) for such fiscal 
                                year, or
                                    ``(II) the aggregate amounts 
                                appropriated from the Intercity 
                                Passenger Rail Trust Fund for such 
                                fiscal year, and
                            ``(ii) the number of months such State is a 
                        non-Amtrak State in such 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.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Qualified expenses.--The term `qualified expenses' 
        means expenses incurred, with respect to obligations made, 
        after September 30, 1997, and before October 1, 2002--
                    ``(A) for--
                            ``(i) in the case of the National Railroad 
                        Passenger Corporation, the acquisition of 
                        equipment, rolling stock, and other capital 
                        improvements, the upgrading of maintenance 
                        facilities, and the maintenance of existing 
                        equipment, in intercity passenger rail service, 
                        and the payment of interest and principal on 
                        obligations incurred for such acquisition, 
                        upgrading, and maintenance, and
                            ``(ii) in the case of a non-Amtrak State, 
                        the acquisition of equipment, rolling stock, 
                        and other capital improvements, the upgrading 
                        of maintenance facilities, and 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 Transportation 
                on October 1 as meeting the requirements 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-Amtrak 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 October 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 payment of such expenses.
    ``(f) Tax Treatment of Trust Fund Expenditures.--With respect to 
any payment of qualified expenses from the Intercity Passenger Rail 
Trust Fund during 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 taxpayer 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 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.''
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to taxes imposed after September 30, 1997.

Summary: Intercity Passenger Rail Trust Fund Act of 1997 - Amends the Internal Revenue Code to establish in the Treasury the Intercity Passenger Rail Trust Fund to finance qualified expenses of:  (1) the National Railroad Passenger Corporation; and (2) non-Amtrak States.