Gas Tax Relief Act

In the case of taxable fuel (as defined in section 4083(a)(1) of the Internal Revenue Code of 1986) removed, entered, or sold on or after the date of the enactment of this Act and before the applicable date—

(1) the rate of tax under clauses (i) and (iii) of section 4081(a)(2)(A) of the Internal Revenue Code of 1986 shall be zero, and

(2) the Leaking Underground Storage Tank Trust Fund financing rate under section 4081(a)(2)(B) of such Code shall not apply to taxable fuel to which the rate under paragraph (1) applies.

The Secretary of the Treasury shall transfer from the general fund to the Highway Trust Fund established under section 9503(a) of the Internal Revenue Code of 1986 and the Leaking Underground Storage Tank Trust Fund established under section 9508(a) of such Code amounts equal to the reduction in amounts credited (but for this subsection) to each such Trust Fund by reason of subsection (a).

Amounts transferred to the Leaking Underground Storage Tank Trust Fund under paragraph (1) shall be treated for purposes of sections 9503(b)(1) and 9508(b)(2) of such Code as taxes received in the Treasury under section 4081 of such Code attributable to the Leaking Underground Storage Tank Trust Fund financing rate.

Amounts transferred to the Highway Trust Fund under paragraph (1) shall be treated for purposes of section 9503(b)(1) of such Code as taxes received in the Treasury under section 4081 of such Code which are not attributable to the Leaking Underground Storage Tank Trust Fund financing rate.

For purposes of this section, the term applicable date means—

(1) the date which is 90 days after the date of enactment of this Act,

(2) if the President determines, in the President's sole discretion, that economic conditions merit an additional suspension of the tax on taxable fuels described in subsection (a), the date that is 215 days after the date of enactment of this Act, and

(3) if the President determines that a phased-in reimplementation of the tax on taxable fuels described in subsection (a) is appropriate, the President may provide for such phased-in reimplementation through incremental restoration of the rates otherwise applicable under section 4081 beginning on the date that is 90 days after the date of enactment of this Act.