S.Amdt. 2388

1. Adds SEC. _____. FUNDING FOR FREIGHT CORRIDOR IMPROVEMENT wherever appropriate

   Adds a section

   Inserted: SEC. _____. FUNDING FOR FREIGHT CORRIDOR IMPROVEMENT.

   Inserted: (a) Increase in Tax on Diesel Fuel.--

   Inserted: (1) In general.--Section 4081(a)(2) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

   Inserted: "(E) Temporary increase in rate of tax on diesel fuel.--In the case of diesel fuel and diesel-water fuel emulsions removed, sold, or entered before January 1, 2022--

   Inserted: "(i) the rate of tax under subparagraph (A)(iii) shall be 34.3 cents, and

   Inserted: "(ii) subparagraph (D) shall be applied by substituting '27.7' for '19.7'.".

   Inserted: (2) Effective date.--The amendment made by this section shall apply to diesel fuel and diesel-water fuel emulsions removed, entered, or sold after December 31, 2015.

   Inserted: (b) Advanced Repayment of Increase to Owners and Original Purchasers of Diesel-powered Automobiles and Light Trucks.--

   Inserted: (1) In general.--Section 6427 of the Internal Revenue Code of 1986 is amended by inserting after subsection (f) the following new subsection:

   Inserted: "(g) Advance Repayment of Increased Diesel Fuel Tax to Owners and Original Purchasers of Diesel-powered Automobiles and Light Trucks.--

   Inserted: "(1) In general.--Except as provided in subsection (k), the Secretary shall pay (without interest) an amount equal to the diesel fuel differential amount to the original purchaser of any qualified diesel-powered highway vehicle purchased after such date.

   Inserted: "(2) Qualified diesel-powered highway vehicle.--For purposes of this subsection, the term 'qualified diesel-powered highway vehicle' means any diesel-powered highway vehicle which--

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   Inserted: "(A) has at least 4 wheels,

   Inserted: "(B) has a gross vehicle weight rating of 10,000 pounds or less, and

   Inserted: "(C) is registered for highway use in the United States under the laws of any State.

   Inserted: "(3) Diesel fuel differential amount.--For purposes of this subsection, the 'diesel fuel differential amount' shall be determined as follows:

   Inserted: ----------------------------------------------------------------------------------------------------------------In the case of a truck or "Year of purchase van, the diesel fuel In the case of any other highway vehicle, differential amount is-- the diesel fuel differential amount is--

   Inserted: 2016.................................. $240......................... $180 2017.................................. 200.......................... 150 2018.................................. 160.......................... 120 2019.................................. 120.......................... 90 2020.................................. 80........................... 60 2021.................................. 40........................... 30 2022 and thereafter................... 0............................ 0.

   Inserted: "(4) Original purchaser.--For purposes of this subsection--

   Inserted: "(A) In general.--Except as provided in subparagraph (B), the term 'original purchaser' means the first person to purchase the qualified diesel-powered vehicle for use other than resale.

   Inserted: "(B) Exception for certain persons not subject to fuels tax.--The term 'original purchaser' shall not include any State or local government (as defined in section 4221(d)(4)) or any nonprofit educational organization (as defined in section 4221(d)(5)).

   Inserted: "(C) Treatment of demonstration use by dealer.--For purposes of subparagraph (A), use as a demonstrator by a dealer shall not be taken into account.

   Inserted: "(5) Special rule for certain vehicles held on january 1, 2016.--In the case of any person holding a qualified diesel-powered highway vehicle on January 1, 2016, such person shall be treated as if the person originally purchased such vehicle on January 1, 2016.

   Inserted: "(6) Basis reduction.--For the purposes of subtitle A, the basis of any qualified diesel-powered highway vehicle shall be reduced by the amount payable under this subsection with respect to such vehicle.".

   Inserted: (2) Effective date.--The amendment made by this subsection shall apply to vehicles purchased after December 31, 2015.

   Inserted: (c) Freight Corridor Improvement Account.--

   Inserted: (1) In general.--Section 9503 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

   Inserted: "(g) Establishment of Freight Corridor Improvement Account.--

   Inserted: "(1) Creation of account.--There is established in the Highway Trust Fund a separate account to be known as the 'Freight Corridor Improvement Account' consisting of such amounts as may be transferred or credited to the Freight Corridor Improvement Account as provided in this section or section 9602(b).

   Inserted: "(2) Transfers to freight corridor improvement account.--The Secretary of the Treasury shall transfer to the Freight Corridor Improvement Account an amount equal to 10 cents per gallon of the amounts appropriated to the Highway Trust Fund under subsection (b) which are attributable to the tax imposed on diesel fuel and diesel-water fuel emulsions under section 4081.

   Inserted: "(3) Expenditures from account.--

   Inserted: "(A) In general.--Amounts in the Freight Corridor Improvement Account shall be available, as provided by appropriation Acts, for expenditures before October 1, 2022, which are--

   Inserted: "(i) in accordance with section 167 of title23, United States Code, as in effect on the date of the enactment of the DRIVE Act, and

   Inserted: "(ii) for the primary highway freight system designated under section 167(d) of such title, determined without regard to paragraph (3) thereof.

   Inserted: "(B) Amounts related to advance repayment of increased diesel fuel taxes.--The Secretary shall pay from time to time from the Freight Corridor Improvement Account to the general fund of the Treasury amounts (as determined by the Secretary) equivalent to the payments made under section 6427(g).".

   Inserted: (2) Conforming amendment.--Section 9503(e)(5)(B) of such Code is amended by inserting "or the Freight Corridor Improvement Account" after "Mass Transit Account".

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   Original wording

   At the appropriate place, insert the following:

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As printed