[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6487 Introduced in House (IH)]
110th CONGRESS
2d Session
H. R. 6487
To amend the Internal Revenue Code of 1986 to provide for a temporary
reduction in the tax imposed on diesel fuel.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 14, 2008
Ms. Giffords 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 provide for a temporary
reduction in the tax imposed on diesel fuel.
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 ``Diesel Tax Parity Act of 2008''.
SEC. 2. TEMPORARY REDUCTION IN DIESEL FUEL TAXES.
(a) Reduction.--
(1) In general.--Section 4081 of the Internal Revenue Code
of 1986 (relating to imposition of tax on gasoline, diesel
fuel, and kerosene) is amended by adding at the end the
following new subsection:
``(f) Temporary Reduction of Taxes on Diesel Fuel.--
``(1) In general.--During the applicable period--
``(A) the rate of tax on diesel fuel under
subsection (a)(2)(A)(iii) shall be 18.3 cents per
gallon, and
``(B) the rate of tax with respect to diesel-water
fuel emulsion described in subsection (a)(2)(D) shall
be 14.84 cents per gallon.
``(2) Applicable period.--For purposes of this subsection,
the term `applicable period' means the period beginning on the
date that is 30 days after the date of the enactment of this
subsection and ending on December 31, 2008.
``(3) Maintenance of trust fund deposits.--In determining
the amounts to be appropriated to the Highway Trust Fund under
section 9503 and to the Leaking Underground Storage Tank Trust
Fund under 9508, an amount equal to the reduction in revenues
to the Treasury by reason of this subsection shall be treated
as taxes received in the Treasury under this section or section
4041.''.
(2) Effective date.--The amendment made by this subsection
shall take effect on the date of the enactment of this Act.
(b) Floor Stock Refunds.--
(1) In general.--If--
(A) before the tax reduction date, a tax referred
to in section 4081(f)(1) of the Internal Revenue Code
of 1986 has been imposed under such Code on any liquid,
and
(B) on such date such liquid is held by a dealer
and has not been used and is intended for sale,
there shall be credited or refunded (without interest) to the
person who paid such tax (hereafter in this subsection referred
to as the ``taxpayer''), against the taxpayer's subsequent
semi-monthly deposit of such tax, an amount equal to the excess
of the tax paid by the taxpayer over the amount of such tax
which would be imposed on such liquid had the taxable event
occurred on the tax reduction date.
(2) Time for filing claims; certifications necessary to
file claims.--
(A) In general.--No credit or refund shall be
allowed or made under this subsection--
(i) unless claim therefor is filed with the
Secretary before the date which is 6 months
after the tax reduction date, and
(ii) in any case where liquid is held by a
dealer (other than the taxpayer) on the tax
reduction date, unless the taxpayer files with
the Secretary--
(I) a certification that the
taxpayer has given a credit to such
dealer with respect to such liquid
against the dealer's first purchase of
liquid from the taxpayer subsequent to
the tax reduction date, and
(II) a certification by such dealer
that such dealer has given a credit to
a succeeding dealer (if any) with
respect to such liquid against the
succeeding dealer's first purchase of
liquid from such dealer subsequent to
the tax reduction date.
(B) Reasonableness of claims certified.--Any
certification made under subparagraph (A) shall include
an additional certification that the claim for credit
was reasonably based on the taxpayer's or dealer's past
business relationship with the succeeding dealer.
(3) Definitions.--For purposes of this subsection--
(A) the terms ``dealer'' and ``held by a dealer''
have the respective meanings given to such terms by
section 6412 of such Code; except that the term
``dealer'' includes a producer, and
(B) the term ``tax reduction date'' means the date
that is 30 days after the date of the enactment of this
Act.
(4) Certain rules to apply.--Rules similar to the rules of
subsections (b) and (c) of section 6412 of such Code shall
apply for purposes of this subsection.
(c) Floor Stocks Tax.--
(1) Imposition of tax.--In the case of any liquid on which
tax would have been imposed under section 4081 of the Internal
Revenue Code of 1986 during the applicable period but for the
amendment made by subsection (a), and which is held on the
floor stocks tax date by any person, there is hereby imposed a
floor stocks tax in an amount equal to the tax which would be
imposed on such liquid had the taxable event occurred on the
floor stocks tax date.
(2) Liability for tax and method of payment.--
(A) Liability for tax.--A person holding a liquid
on the floor stocks tax date to which the tax imposed
by paragraph (1) applies shall be liable for such tax.
(B) Method of payment.--The tax imposed by
paragraph (1) shall be paid in such manner as the
Secretary shall prescribe.
(C) Time for payment.--The tax imposed by paragraph
(1) shall be paid on or before the date which is 6
months after the floor stocks tax date.
(3) Definitions.--For purposes of this subsection--
(A) Held by a person.--A liquid shall be considered
as ``held by a person'' if title thereto has passed to
such person (whether or not delivery to the person has
been made).
(B) Diesel fuel.--The term ``diesel fuel'' has the
meaning given such term by section 4083 of such Code.
(C) Floor stocks tax date.--The term ``floor stocks
tax date'' means January 1, 2009.
(D) Applicable period.--The term ``applicable
period'' means the period described in section
4081(f)(2) of such Code.
(4) Exception for exempt uses.--The tax imposed by
paragraph (1) shall not apply to diesel fuel held by any person
exclusively for any use to the extent a credit or refund of the
tax imposed by section 4081 of such Code is allowable for such
use.
(5) Exception for fuel held in vehicle tank.--No tax shall
be imposed by paragraph (1) on diesel fuel held in the tank of
a motor vehicle.
(6) Exception for certain amounts of fuel.--
(A) In general.--No tax shall be imposed by
paragraph (1) on diesel fuel held on such date by any
person if the aggregate amount of diesel fuel held by
such person on such date does not exceed 2,000 gallons.
The preceding sentence shall apply only if such person
submits to the Secretary (at the time and in the manner
required by the Secretary) such information as the
Secretary shall require for purposes of this
subparagraph.
(B) Exempt fuel.--For purposes of subparagraph (A),
there shall not be taken into account fuel held by any
person which is exempt from the tax imposed by
paragraph (1) by reason of paragraph (4) or (5).
(C) Controlled groups.--For purposes of this
paragraph--
(i) Corporations.--
(I) In general.--All persons
treated as a controlled group shall be
treated as 1 person.
(II) Controlled group.--The term
``controlled group'' has the meaning
given to such term by subsection (a) of
section 1563 of such Code; except that
for such purposes the phrase ``more
than 50 percent'' shall be substituted
for the phrase ``at least 80 percent''
each place it appears in such
subsection.
(ii) Nonincorporated persons under common
control.--Under regulations prescribed by the
Secretary, principles similar to the principles
of clause (i) shall apply to a group of persons
under common control where 1 or more of such
persons is not a corporation.
(7) Other law applicable.--All provisions of law, including
penalties, applicable with respect to the taxes imposed by
section 4081 of such Code shall, insofar as applicable and not
inconsistent with the provisions of this paragraph, apply with
respect to the floor stock taxes imposed by paragraph (1) to
the same extent as if such taxes were imposed by such section
4081.
(d) Secretary.--For purposes of this section, the term
``Secretary'' means the Secretary of the Treasury or the Secretary's
delegate.
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