EXTENSION OF AIRPORT AND AIRWAY TRUST FUND EXCISE TAXES.

SEC. 1609. EXTENSION OF AIRPORT AND AIRWAY TRUST FUND EXCISE TAXES. (a) Fuel Tax.— (1) Subparagraph (A) of section 4091(b)(3) is amended to read as follows: “(A) The rate of tax specified in paragraph (1) shall be 4.3 cents per gallon— “(i) after December 31, 1995, and before the date which is 7 calendar days after the date of the enactment of the Small Business Job Protection Act of 1996, and “(ii) after December 31, 1996.”. (2) Section 4081(d) is amended— (A) by adding at the end the following new paragraph: “(3) Aviation gasoline.— After December 31, 1996, the rate of tax specified in subsection (a)(2)(A)(i) on aviation gasoline shall be 4.3 cents per gallon.”, and (B) by inserting “(other than the tax on aviation gasoline)” after “subsection (a)(2)(A)”. (3) Section 4041(c)(5) is amended by inserting “, and during the period beginning on the date which is 7 calendar days after the date of the enactment of the Small Business Job Protection Act of 1996 and ending on December 31, 1996” after “December 31, 1995”. (b) Ticket Taxes.— Sections 4261(g) and 4271(d) are each amended by striking “January 1, 1996” and inserting “January 1, 1996, and to transportation beginning on or after the date which is 7 calendar days after the date of the enactment of the Small Business Job Protection Act of 1996 and before January 1, 1997”. (c) Transfers to Airport and Airway Trust Fund.— (1) Subsection (b) of section 9502 is amended by striking “January 1, 1996” each place it appears and inserting “January 1, 1997”. (2) Paragraph (3) of section 9502(1) is amended to read as follows: “(3) Termination.— Notwithstanding the preceding provisions of this subsection, the Airport and Airway Trust Fund financing rate shall be zero with respect to— “(A) taxes imposed after December 31, 1995, and before the date which is 7 calendar days after the date of the enactment of the Small Business Job Protection Act of 1996, and “(B) taxes imposed after December 31, 1996.”. 110 STAT. 1842 (3) Subsection (d) of section 9502 is amended by adding at the end the following new paragraph: “(5) Transfers from airport and airway trust fund on account of refunds of taxes on transportation by air.— The Secretary of the Treasury shall pay from time to time from the Airport and Airway Trust Fund into the general fund of the Treasury amounts equivalent to the amounts paid after December 31, 1995, under section 6402 (relating to authority to make credits or refunds) or section 6415 (relating to credits or refunds to persons who collected certain taxes) in respect of taxes under sections 4261 and 4271.”. (d) Excise Tax Exemption for Certain Emergency Medical Transportation by Air Ambulance.— Subsection (f) of section 4261 (relating to imposition of tax on transportation by air) is amended to read as follows: “(f) Exemption for Air Ambulances Providing Certain Emergency Medical Transportation.— No tax shall be imposed under this section or section 4271 on any air transportation for the purpose of providing emergency medical services— “(1) by helicopter, or “(2) by a fixed-wing aircraft equipped for and exclusively dedicated to acute care emergency medical services.”. (e) Exemption for Certain Helicopter Uses.— Subsection (e) of section 4261 is amended by adding at the end the following new sentence: “In the case of helicopter transportation described in paragraph (1), this subsection shall be applied by treating each flight segment as a distinct flight.”. (f) Flight-By-Flight Determination of Availability for Hire For Affiliated Groups.— Section 4282 is amended by redesignating subsection (b) as subsection (c) and by inserting after subsection (a) the following new subsection: “(b) Availability for Hire.— For purposes of subsection (a), the determination of whether an aircraft is available for hire by persons who are not members of an affiliated group shall be made on a flight-by-flight basis.” (g) Consolidation of Taxes On Aviation Gasoline.— (1) In general.— Subparagraph (A) of section 4081(a)(2) (relating to imposition of tax on gasoline and diesel fuel) is amended by redesignating clause (ii) as clause (iii) and by striking clause (i) and inserting the following: “(i) in the case of gasoline other than aviation gasoline, 18.3 cents per gallon, “(ii) in the case of aviation gasoline, 19.3 cents per gallon, and”. (2) Termination.— Subsection (d) of section 4081 is amended by redesignating paragraph (2) as paragraph (3) and by inserting after paragraph (1) the following new paragraph: “(2) Aviation Gasoline.— On and after January 1, 1997, the rate specified in subsection (a)(2)(A)(ii) shall be 4.3 cents per gallon.” (3) Repeal of retail level tax.— (A) Subsection (c) of section 4041 is amended by striking paragraphs (2) and (3) and by redesignating paragraphs (4) and (5) as paragraphs (2) and (3), respectively. 110 STAT. 1843 (B) Paragraph (3) of section 4041(c), as redesignated by paragraph (1), is amended by striking “paragraphs (1) and (2)” and inserting “paragraph (1)”. (4) Conforming amendments.— (A) Paragraph (1) of section 4041(k) is amended by adding “and” at the end of subparagraph (A), by striking “, and” at the end of subparagraph (B) and inserting a period, and by striking subparagraph (C). (B) Paragraph (1) of section 4081(d) is amended by striking “each rate of tax specified in subsection (a)(2)(A)” and inserting “the rates of tax specified in clauses (i) and (iii) of subsection (a)(2)(A)”. (C) Sections 6421(f)(2)(A) and 9502(f)(1)(A) are each amended by striking “section 4041(c)(4)” and inserting “section 4041(c)(2)”. (D) Paragraph (2) of section 9502(b) is amended by striking “14 cents” and inserting “15 cents”. (h) Floor Stocks Taxes on Aviation Fuel.— (1) Imposition of tax.— In the case of aviation fuel on which tax was imposed under section 4091 of the Internal Revenue Code of 1986 before the tax-increase date described in paragraph (3)(A)(i) and which is held on such date by any person, there is hereby imposed a floor stocks tax of 17.5 cents per gallon. (2) Liability for tax and method of payment.— (A) Liability for tax.— A person holding aviation fuel on a tax-increase 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) with respect to any tax-increase date shall be paid on or before the first day of the 7th month beginning after such tax-increase date. (3) Definitions.— For purposes of this subsection— (A) Tax increase date.— The term “true-increase date” means the date which is 7 calendar days after the date of the enactment of this Act. (B) Aviation fuel.— The term “aviation fuel” has the meaning given such term by section 4093 of such Code. (C) Held by a person.— Aviation 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 his delegate. (4) Exception for exempt uses.— The tax imposed by paragraph (1) shall not apply to aviation fuel held by any person on any tax-increase date exclusively for any use for which a credit or refund of the entire tax imposed by section 4091 of such Code is allowable for aviation fuel purchased on or after such tax-increase date for such use. (5) Exception for certain amounts of fuel.— (A) In general.— No tax shall be imposed by paragraph (1) on aviation fuel held on any tax-increase date by any person if the aggregate amount of aviation fuel110 STAT. 1844 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 paragraph. (B) Exempt fuel.— For purposes of subparagraph (A), there shall not be taken into account fue 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 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. (6) Other law applicable.— All provisions of law, including penalties, applicable with respect to the taxes imposed by section 4091 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 4091. (i) Effective Date.— The amendments made by this section shall take effect on the 7th calendar day after the date of the enactment of this Act, except that the amendments made by subsection (b) shall not apply to any amount paid before such date.