text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Gasoline Tax Relief Act of 2006''.
  
  SEC. 2. SUSPENSION OF FUEL TAXES ON HIGHWAY MOTOR FUELS WHEN WEEKLY 
                UNITED STATES RETAIL GASOLINE PRICES EXCEED BENCHMARK.
  
      (a) In General.--Section 4081 of the Internal Revenue Code of 1986 
  (relating to imposition of tax on motor and aviation fuels) is amended 
  by adding at the end the following new subsection:
      ``(f) Suspension of Highway Motor Fuel Taxes When Retail Gasoline 
  Exceeds Benchmark.--
              ``(1) In general.--During any suspension period, the tax 
          imposed by section 4041 or 4081 on highway motor fuel shall be 
          suspended.
              ``(2) Definitions.--For purposes of this subsection--
                      ``(A) Suspension period.--The term `suspension 
                  period' means--
                              ``(i) the 60-day period beginning 7 days 
                          after the date of enactment of this subsection, 
                          and
                              ``(ii) after such 60-day period, any 
                          period--
                                      ``(I) beginning 7 days after the 
                                  date on which the weekly United States 
                                  retail gasoline price for regular grade 
                                  conventional areas (as published by the 
                                  Energy Information Administration, 
                                  Department of Energy), inclusive of 
                                  such tax, is greater than the benchmark 
                                  price, and
                                      ``(II) ending 7 days after the date 
                                  on which such price (as so published), 
                                  without regard to this subsection, does 
                                  not exceed the benchmark price.
                      ``(B) Benchmark price.--For purposes of this 
                  subsection--
                              ``(i) In general.--The term `benchmark 
                          price' means $2.75 per gallon.
                              ``(ii) Adjustment for inflation.--In the 
                          case of any calendar year beginning after 2006, 
                          the dollar amount in clause (i) shall be 
                          increased by an amount equal to--
                                      ``(I) such dollar amount, 
                                  multiplied by
                                      ``(II) the cost-of-living 
                                  adjustment determined under section 
                                  1(f)(3) for such calendar year, 
                                  determined by substituting `calendar 
                                  year 2005' for `calendar year 1992' in 
                                  subparagraph (B) thereof.
                          Any increase determined under subclause (II) 
                          shall be rounded to the nearest cent.
                      ``(C) Highway motor fuel.--The term `highway motor 
                  fuel' means any fuel subject to tax under section 4041 
                  or 4081 other than aviation gasoline and aviation-grade 
                  kerosene.''.
      (b) Maintenance of Trust Funds Deposits; Amounts Appropriated to 
  Trust Funds Treated as Taxes.--
              (1) In general.--There is hereby appropriated (out of any 
          money in the Treasury not otherwise appropriated) to each trust 
          fund which would (but for this subsection) receive reduced 
          revenues as a result of a suspension in a rate of tax by reason 
          of section 4081(f)(1) of the Internal Revenue Code of 1986 (as 
          added by this section) an amount equal to such reduction in 
          revenues. Amounts appropriated by the preceding sentence to any 
          trust fund--
                      (A) shall be transferred from the general fund at 
                  such times and in such manner as to replicate to the 
                  extent possible the transfers which would have occurred 
                  had subsection (a) not been enacted, and
                      (B) shall be treated for all purposes of Federal 
                  law as taxes received under the appropriate section 
                  referred to in such section 4081(f)(1).
      (c) Effective Date.--The amendment made by this section shall take 
  effect on the date of the enactment of this Act.
      (d) Floor Stock Refunds.--
              (1) In general.--If--
                      (A) before the tax suspension date, tax has been 
                  imposed under section 4081 of the Internal Revenue Code 
                  of 1986 on any highway motor fuel, and
                      (B) on such date such fuel 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'') an amount equal to the excess of the 
          tax paid by the taxpayer over the tax which would be imposed on 
          such fuel had the taxable event occurred on such date.
              (2) Time for filing claims.--No credit or refund shall be 
          allowed or made under this subsection unless--
                      (A) claim therefor is filed with the Secretary of 
                  the Treasury before the date which is 6 months after 
                  the tax suspension date based on a request submitted to 
                  the taxpayer before the date which is 3 months after 
                  the tax suspension date by the dealer who held the 
                  highway motor fuel on such date, and
                      (B) the taxpayer has repaid or agreed to repay the 
                  amount so claimed to such dealer or has obtained the 
                  written consent of such dealer to the allowance of the 
                  credit or the making of the refund.
              (3) Exception for fuel held in retail stocks.--No credit or 
          refund shall be allowed under this subsection with respect to 
          any highway motor fuel in retail stocks held at the place where 
          intended to be sold at retail.
              (4) Definitions.--For purposes of this subsection--
                      (A) Tax suspension date.--The term ``tax suspension 
                  date'' means the first day of any suspension period in 
                  effect under section 4081(f) of the Internal Revenue 
                  Code of 1986 (as added by subsection (a) of this 
                  section).
                      (B) Other terms.--The terms ``dealer'' and ``held 
                  by a dealer'' have the respective meanings given to 
                  such terms by section 6412 of such Code.
              (5) 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.
      (e) Floor Stocks Tax.--
              (1) Imposition of tax.--In the case of any highway motor 
          fuel which is held on the tax restoration date by any person, 
          there is hereby imposed a floor stocks tax equal to the excess 
          of the tax which would be imposed on such fuel had the taxable 
          event occurred on such date over the tax (if any) previously 
          paid (and not credited or refunded) on such fuel.
              (2) Liability for tax and method of payment.--
                      (A) Liability for tax.--The person holding highway 
                  motor fuel on the tax restoration 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 45th day after the 
                  tax restoration date.
              (3) Definitions.--For purposes of this subsection--
                      (A) Tax restoration date.--The term ``tax 
                  restoration date'' means the first day after the end of 
                  any suspension period (as defined in section 4081(f) of 
                  the Internal Revenue Code of 1986).
                      (B) Highway motor fuel.--The term ``highway motor 
                  fuel'' has the meaning given to such term by section 
                  4081(f) of such Code.
                      (C) Held by a person.--A highway motor fuel 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).
                      (D) Secretary.--The term ``Secretary'' means the 
                  Secretary of the Treasury or the Secretary's delegate.
              (4) Exception for exempt uses.--The tax imposed by 
          paragraph (1) 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 use.
              (5) Exception for certain amounts of fuel.--
                      (A) In general.--No tax shall be imposed by 
                  paragraph (1) on any highway motor fuel held on the tax 
                  restoration date by any person if the aggregate amount 
                  of such highway motor 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 any highway motor 
                  fuel held by any person which is exempt from the tax 
                  imposed by paragraph (1) by reason of paragraph (4).
                      (C) Controlled groups.--For purposes of this 
                  subsection--
                              (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 subparagraph (A) shall apply to a group of 
                          persons under common control if 1 or more of 
                          such persons is not a corporation.
              (6) Other laws 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 
          subsection, 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.
target: Gasoline Tax Relief Act of 2006 - Amends the Internal Revenue Code to suspend excise taxes on diesel and other highway motor fuels during specified periods when weekly retail gasoline prices as published by the Department of Energy exceed $2.75 per gallon.
feat_title: To amend the Internal Revenue Code of 1986 to suspend the excise tax on highway motor fuels when average United States retail gasoline prices exceed $2.75 per gallon.