,i #aadth ,,congress #ast ,session ,h4 ,r4 #biga ,,in ,,the ,,house ,,of ,,representatives ,july #h1 #bjae ,mr4 ,rice of ,south ,carolina introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to bring certainty to the funding of the ,highway ,trust ,fund1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,highway ,trust ,fund ,certainty ,act4 #b4 ,increase in fuels taxes 7a7 ,motor fuels 7#a7 ,repeal of termination ,section #djha7;d7 of the ,internal ,revenue ,code of #aihf is amended by striking paragraph 7#a7 and redesignating paragraphs 7#b7 and 7#c7 as paragraphs 7#a7 and 7#b71 respectively4 7#b7 ,inflation adjustment ,section #djha7;a77#b7 of such ,code is amended-- 7,a7 in subparagraph 7,a77i7 by striking #ah4c cents per gallon and inserting #bh4d cents per gallon1 7,b7 in subparagraph 7,a77iii7 by striking #bd4c cents per gallon and inserting #cd4d cents per gallon1 7,c7 in subparagraph 7,d7 by striking substituting #ai4g cents for #bd4c cents and inserting substituting #bg4i cents for #cd4d cents1 and 7,d7 by adding at the end the following3 7,e7 ,adjustment for inflation ,in the case of a calendar year beginning after ,december #ca1 #bjae1 the rates of tax in subparagraph 7,a7 7i7 and 7iii7 and subparagraph 7,d7 shall each be increased by an amount equal to-- 7i7 such rate1 multiplied by 7ii7 the cost of living adjustment determined under section #a7;f77#c7 for the calendar year1 determined by substituting calendar year #bjad for calendar year #aiib in subparagraph 7,b7 thereof4 ,any increase under the preceding sentence shall be rounded to the nearest #j4a cents4 4 7b7 ,special fuels 7#a7 ,increase and extension ,section #djda of such ,code is amended-- 7,a7 in subsection 7a77#a77;,c77iii77,i7 by striking #g4c cents per gallon 7#d4c cents per gallon after ,september #cj1 #bjaf7 and inserting #ag4d cents per gallon1 7,b7 in subsection 7a77#b77;,b77ii7 by striking #bd4c cents per gallon and inserting #cd4d cents per gallon1 and 7,c7 in subsection 7a77#c77;,a7 by striking #ah4c cents and inserting #bh4d cents4 7#b7 ,adjustment for inflation ,section #djda7;a7 of such ,code is amended by adding at the end the following3 7#d7 ,adjustment for inflation ,in the case of a calendar year beginning after ,december #ca1 #bjae1 the rates of tax in paragraphs 7#a77;,c77iii77,i71 7#b77;,b77ii71 and 7#c77;,a7 shall each be increased by an amount equal to-- 7,a7 such rate1 multiplied by 7,b7 the cost of living adjustment determined under section #a7;f77#c7 for the calendar year1 determined by substituting calendar year #bjad for calendar year #aiib in subparagraph 7,b7 thereof4 ,any increase under the preceding sentence shall be rounded to the nearest #j4a cents4 4 7#c7 ,certain alcohol fuels 7,a7 ,permanent extension ,section #djda7m77#a7 of such ,code is amended-- 7i7 in subparagraph 7,a7 by striking 1 and before ,october #a1 #bjaf1 7ii7 in subparagraph 7,a77i7 by striking #i4ae cents per gallon and inserting #ai4be cents per gallon1 7iii7 in subparagraph 7,a77ii7 by striking #aa4c cents per gallon and inserting #ba4d cents per gallon1 7iv7 by striking subparagraph 7,b71 and 7v7 by redesignating clauses 7i7 and 7ii7 of subparagraph 7,a7 7as amended by clauses 7ii7 and 7iii77 as subparagraphs 7,a7 and 7,b71 respectively1 and moving such subparagraphs 7as so redesignated7 #b ems to the left4 7,b7 ,adjustment for inflation ,section #djda7m7 of such ,code is amended by adding at the end the following3 7#c7 ,adjustment for inflation ,in the case of a calendar year beginning after ,december #ca1 #bjae1 the rates of tax in paragraph 7#a7 7,a7 and 7,b7 shall each be increased by an amount equal to-- 7,a7 such rate1 multiplied by 7,b7 the cost of living adjustment determined under section #a7;f77#c7 for the calendar year1 determined by substituting calendar year #bjad for calendar year #aiib in subparagraph 7,b7 thereof4 ,any increase under the preceding sentence shall be rounded to the nearest #j4a cents4 4 7#d7 ,fuel used in certain buses 7,a7 ,permanent extension ,section #fdbg7;b77#b77;,a7 of such ,code is amended by striking #g4d cents and inserting #ag4e cents4 7,b7 ,adjustment for inflation ,section #fdbg7;b7 of such ,code is amended by adding at the end the following3 7#e7 ,adjustment for inflation ,in the case of calendar years beginning ,january #a1 #bjaf-- 7,a7 the rate of tax in paragraph 7#b77;,a7 shall be increased by #aj4a cents1 and 7,b7 such rate 7as increased by subparagraph 7,a77 shall be increased by an amount equal to such rate 7as so increased7 multiplied by the cost of living adjustment determined under section #a7;f77#c7 for the calendar year1 determined by substituting calendar year #bjad for calendar year #aiib in subparagraph 7,b7 thereof1 and rounded to the nearest #j4a cents4 4 7c7 ,effective date ,the amendments made by this section shall apply to years beginning after ,december #ca1 #bjae4 7d7 ,floor stocks tax 7#a7 ,imposition of tax ,in the case of any highway motor fuel which is held on ,january #a1 #bjaf1 by any person1 there is hereby imposed a floor stocks tax equal to the excess of-- 7,a7 the tax which would be imposed on such fuel had the amendments made by this section applied to highway motor fuels for periods before ,january #a1 #bjaf1 over 7,b7 the tax 7if any7 previously paid 7and not credited or refunded7 on such fuel4 7#b7 ,liability for tax and method of payment 7,a7 ,liability for tax ,the person holding the highway motor fuel on ,january #a1 #bjaf1 to which the tax imposed by paragraph 7#a7 applies shall be liable for such tax4 7,b7 ,method of payment ,the tax imposed by paragraph 7#a7 shall be paid at such time and in such manner as the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall prescribe4 7#c7 ,definitions ,for purposes of this subsection-- 7,a7 ,highway motor fuel ,the term highway motor fuel means any fuel the tax rate of which is increased by an amendment made by this section4 7,b7 ,held by a person ,a highway motor fuel shall be considered as held by a person if title thereto has passed to such person 7whether or not delivery to the person has been made74 7,c7 ,secretary ,the term ,secretary means the ,secretary of the ,treasury or the ,secretary's delegate4 7#d7 ,exception for exempt uses ,the tax imposed by paragraph 7#a7 shall not apply to any highway motor fuel held by any person exclusively for any use to the extent a credit or refund of the tax is allowable for such use4 7#e7 ,exception for certain amounts of fuel 7,a7 ,in general ,no tax shall be imposed by paragraph 7#a7 on any highway motor fuel held on ,january #a1 #bjaf1 by any person if the aggregate amount of such highway motor fuel held by such person on such date does not exceed #b1jjj gallons4 ,the preceding sentence shall apply only if such person submits to the ,secretary 7at the time and in the manner required by the ,secretary7 such information as the ,secretary shall require for purposes of this subparagraph4 7,b7 ,exempt fuel ,for purposes of subparagraph 7,a71 there shall not be taken into account any highway motor fuel held by any person which is exempt from the tax imposed by paragraph 7#a7 by reason of paragraph 7#d74 7,c7 ,controlled groups ,for purposes of this subsection-- 7i7 ,corporations 7,i7 ,in general ,all persons treated as a controlled group shall be treated as #a person4 7,,ii7 ,controlled group ,the term controlled group has the meaning given to such term by subsection 7a7 of section #aefc of such ,code2 except that for such purposes the phrase more than #ej percent shall be substituted for the phrase at least #hj percent each place it appears in such subsection4 7ii7 ,nonincorporated persons under common control ,under regulations prescribed by the ,secretary1 principles similar to the principles of subparagraph 7,a7 shall apply to a group of persons under common control if #a or more of such persons is not a corporation4 7#f7 ,other laws applicable ,all provisions of law1 including penalties1 applicable with respect to the taxes imposed by sections #djda and #djha of such ,code shall1 insofar as applicable and not inconsistent with the provisions of this subsection1 apply with respect to the floor stock taxes imposed by paragraph 7#a7 to the same extent as if such taxes were imposed by such sections4 #c4 ,working citizens tax relief 7a7 ,in general ,subpart ,c of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #cf the following new section3 #cf;,a4 ,working citizens credit 7a7 ,allowance of credit ,in the case of an eligible individual1 there shall be allowed as a credit against the tax imposed by this subtitle for the calendar years beginning after ,december #ca1 #bjae1 an amount equal to the lesser of-- 7#a7 #c4a percent of earned income of the taxpayer1 or 7#b7 #acc 7#bff in the case of a joint return74 7b7 ,limitation based on modified adjusted gross income 7#a7 ,in general ,the amount allowable as a credit under subsection 7a7 7determined without regard to this paragraph and subsection 7c77 for the taxable year shall be reduced 7but not below zero7 by one percent of so much of the taxpayer's modified adjusted gross income as exceeds #gd1iej 7#adi1ijj in the case of a joint return74 7#b7 ,modified adjusted gross income ,for purposes of subparagraph 7,a71 the term modified adjusted gross income means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section #iaa1 #ica1 or #icc4 7c7 ,definitions and special rules ,for purposes of this section-- 7#a7 ,eligible individual 7,a7 ,in general ,the term eligible individual means any individual other than-- 7i7 any nonresident alien individual1 7ii7 any individual with respect to whom a deduction under section #aea is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual's taxable year begins1 and 7iii7 an estate or trust4 7,b7 ,identification number requirement ,such term shall not include any individual who does not include on the return of tax for the taxable year-- 7i7 such individual's social security account number1 and 7ii7 in the case of a joint return1 the social security account number of one of the taxpayers on such return4 ,for purposes of the preceding sentence1 the social security account number shall not include a ,,tin issued by the ,internal ,revenue ,service4 7#b7 ,earned income ,the term earned income has the meaning given such term by section #cb7;c77#b71 except that such term shall not include net earnings from self-employment which are not taken into account in computing taxable income4 ,for purposes of the preceding sentence1 any amount excluded from gross income by reason of section #aab shall be treated as earned income which is taken into account in computing taxable income for the taxable year4 4 7b7 ,refunds disregarded in the administration of federal programs and federally assisted programs ,any credit or refund allowed or made to any individual by reason of section #cf;,a of the ,internal ,revenue ,code of #aihf 7as added by this section7 or by reason of subsection 7b7 of this section shall not be taken into account as income and shall not be taken into account as resources for the month of receipt and the following #b months1 for purposes of determining the eligibility of such individual or any other individual for benefits or assistance1 or the amount or extent of benefits or assistance1 under any ,federal program or under any ,state or local program financed in whole or in part with ,federal funds4 7c7 ,authority relating to clerical errors ,section #fbac7;g77#b7 of such ,code is amended by striking and at the end of subparagraph 7,m71 by striking the period at the end of subparagraph 7,n7 and inserting 1 and1 and by adding at the end the following new subparagraph3 7,o7 an omission of the correct social security account number required under section #cf;,a7c77#a77;,b74 4 7d7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjae4 #d4 ,repayable advances to highway trust fund 7a7 ,repayable advances ,section #iejc7;f7 of the ,internal ,revenue ,code of #aihf is amended by redesignating paragraph 7#g7 as paragraph 7#h7 and by inserting after paragraph 7#f7 the following new paragraph3 7#g7 #bjae shortfall advance ,out of money in the ,treasury not otherwise appropriated1 there is hereby appropriated-- 7,a7 #h1jjj1jjj1jjj to the ,highway ,account 7as defined in subsection 7e77#e77;,b77 in the ,highway ,trust ,fund2 and 7,b7 #c1jjj1jjj1jjj to the ,mass ,transit ,account in the ,highway ,trust ,fund4 4 7b7 ,repayment of advances ,section #iejc7;c7 of such ,code is amended by adding at the end the following3 7#f7 ,transfers from highway trust fund for certain repayments of certain advances 7,a7 ,in general ,the ,secretary shall pay from time to time from the ,highway ,trust ,fund into the general fund of the ,treasury amounts equivalent to amounts transferred to the ,highway ,trust ,fund that are attributable to the operation of sections #djda7;a77#d71 #djda7m77#c71 and #djha7;a77#b77;,e74 7,b7 ,limitation ,no amount shall be transferred under this paragraph after the aggregate amount transferred under subparagraph 7,a7 equals #aa1jjj1jjj1jjj4 7,c7 ,transfers based on estimates ,transfers under subparagraph 7,a7 shall be made on the basis of estimates by the ,secretary1 and proper adjustments shall be made in amounts subsequently transferred to the extent prior estimates were in excess or less than the amounts required to be transferred4 7,d7 ,transfers made proportionally ,transfers under subparagraph 7,a7 shall be borne by the ,highway ,account and the ,mass ,transit ,account in proportion to the respective revenues transferred under subsection 7f77#g7 to the ,highway ,account and the ,mass ,transit ,account4 4 7c7 ,effective date ,the amendments made by this section shall take effect on ,august #a1 #bjae4