Title: Rebuild America Act of 2019
Policy area: Taxation

Summary:
Rebuild America Act of 2019
This bill provides for an incremental increase in the excise taxes on gasoline, diesel, and kerosene fuels over a five-year period.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2864 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 2864

 To amend the Internal Revenue Code of 1986 to increase the excise tax 
                on gasoline, diesel, and kerosene fuels.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 21, 2019

Mr. Blumenauer introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to increase the excise tax 
                on gasoline, diesel, and kerosene fuels.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rebuild America Act of 2019''.

SEC. 2. SENSE OF CONGRESS.

    It is the sense of Congress that by 2029 the gas tax should be 
repealed and replaced with a more sustainable, stable funding source.

SEC. 3. TAX ON MOTOR FUELS.

    (a) Gasoline Other Than Aviation Gasoline.--Section 
4081(a)(2)(A)(i) of the Internal Revenue Code of 1986 is amended to 
read as follows:
                            ``(i) in the case of gasoline other than 
                        aviation gasoline--
                                    ``(I) for tax imposed before 2020, 
                                18.3 cents per gallon,
                                    ``(II) for tax imposed during 2020, 
                                23.3 cents per gallon,
                                    ``(III) for tax imposed during 
                                2021, 28.3 cents per gallon,
                                    ``(IV) for tax imposed during 2022, 
                                33.3 cents per gallon,
                                    ``(V) for tax imposed during 2023, 
                                38.3 cents per gallon, and
                                    ``(VI) for tax imposed after 2023, 
                                43.3 cents per gallon,''.
    (b) Diesel Fuel or Kerosene.--Section 4081(a)(2)(A)(iii) of such 
Code is amended to read as follows:
                            ``(iii) in the case of diesel fuel or 
                        kerosene--
                                    ``(I) for tax imposed before 2020, 
                                24.3 cents per gallon,
                                    ``(II) for tax imposed during 2020, 
                                29.3 cents per gallon,
                                    ``(III) for tax imposed during 
                                2021, 34.3 cents per gallon,
                                    ``(IV) for tax imposed during 2022, 
                                39.3 cents per gallon,
                                    ``(V) for tax imposed during 2023, 
                                44.3 cents per gallon, and
                                    ``(VI) for tax imposed after 2023, 
                                49.3 cents per gallon.''.
    (c) Increase for Inflation.--Section 4081(a)(2) of such Code is 
amended by adding at the end the following:
                    ``(E) Adjustment for inflation.--In the case of any 
                calendar year beginning after 2024, the rates of tax 
                contained in clauses (i) and (iii) of subparagraph (A) 
                shall each be increased by an amount equal to--
                            ``(i) such rate, multiplied by
                            ``(ii) the cost of living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year, determined by substituting 
                        `calendar year 2023' for `calendar year 2016' 
                        in subparagraph (A)(ii) thereof.
                Any increase under the preceding sentence shall be 
                rounded to the nearest 0.1 cents.''.
    (d) Diesel-Water Fuel Emulsion.--Section 4081(a)(2)(D) of such Code 
is amended by striking ```19.7 cents' for `24.3 cents''' and inserting 
``a rate equal to 71 percent of the rate in effect under such 
subparagraph (without regard to this subparagraph)''.
    (e) Termination.--Section 4081(d)(1) of such Code is amended by 
striking ``September 30, 2022'' and inserting ``December 31, 2029''.
    (f) Allocation in Accounts in Highway Trust Fund.--
            (1) In general.--Section 9503(e)(2)(A) of the Internal 
        Revenue Code of 1986 is amended to read as follows:
                    ``(A) except as otherwise provided in this 
                sentence--
                            ``(i) 2.86 cents per gallon with respect to 
                        taxes imposed during calendar years before 
                        2020,
                            ``(ii) 3.86 cents per gallon with respect 
                        to taxes imposed during calendar year 2020,
                            ``(iii) 4.86 cents per gallon with respect 
                        to taxes imposed during calendar year 2021,
                            ``(iv) 5.86 cents per gallon with respect 
                        to taxes imposed during calendar year 2022,
                            ``(v) 6.86 cents per gallon with respect to 
                        taxes imposed during calendar year 2023, and
                            ``(vi) 7.86 center per gallon with respect 
                        to taxes imposed after calendar year 2023,''.
            (2) Adjustment for inflation.--Section 9503(e) of the 
        Internal Revenue Code of 1986 is amended by adding at the end 
        the following new paragraph:
            ``(6) Adjustment for inflation.--In the case of any 
        calendar year beginning after 2024, the rate of tax contained 
        in paragraph (2)(A) shall be increased by an amount equal to--
                    ``(A) such rate, multiplied by
                    ``(B) the cost of living adjustment determined 
                under section 1(f)(3) for the calendar year, determined 
                by substituting `calendar year 2023' for `calendar year 
                2016' in subparagraph (A)(ii) thereof.
        Any increase under the preceding sentence shall be rounded to 
        the nearest 0.1 cents.''.
    (g) Effective Date.--The amendments made by this section shall 
apply to fuel removed, entered, or sold after December 31, 2018.

SEC. 4. FLOOR STOCKS TAX.

    (a) Imposition of Tax.--In the case of taxed fuel to which a 
qualified person holds title on January 1, 2020, there is hereby 
imposed on such fuel a tax at a rate of 5 cents per gallon.
    (b) Taxed Fuel Defined.--The term ``taxed fuel'' means taxable fuel 
(as such term is defined in section 4083(a)(1)), other than aviation 
fuel, on which tax was imposed (and not credited or refunded) under 
section 4081 of the Internal Revenue Code of 1986 before January 1, 
2020.
    (c) Qualified Person Defined.--For purposes of this section--
            (1) In general.--The term ``qualified person'' means a 
        person who, on January 1, 2020, holds title to not less than 
        2,000 gallons of taxed fuel (other than fuel held in the tank 
        of a motor vehicle or motorboat) held for sale.
            (2) Aggregation rule.--For purposes of the 2,000 gallon 
        requirement, all members of the same controlled group of 
        corporations (within the meaning of section 267(f)) and all 
        persons under common control (within the meaning of section 
        52(b) but determined by treating an interest of more than 50 
        percent as a controlling interest) shall be treated as 1 
        person.
    (d) Other Provisions of Law.--All provisions of law, including 
penalties, applicable with respect to the taxes imposed by section 4081 
of the Internal Revenue Code of 1986 shall, insofar as applicable and 
not inconsistent with the provisions of this section, apply with 
respect to the taxes imposed by subsection (a) to the same extent as if 
such taxes were imposed by such section 4081.
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