article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Intercity Passenger Rail Trust Fund Act of 1997''. SEC. 2. INTERCITY PASSENGER RAIL TRUST FUND. (a) Establishment of Trust Fund.--Subchapter A of chapter 98 of the Internal Revenue Code of 1986 (relating to trust fund code) is amended by adding at the end the following new section: ``SEC. 9512. INTERCITY PASSENGER RAIL TRUST FUND. ``(a) Creation of Trust Fund.--There is established in the Treasury of the United States a trust fund to be known as the `Intercity Passenger Rail Trust Fund', consisting of such amounts as may be transferred or credited to the Trust Fund as provided in this section or section 9602(b). ``(b) Transfer to Intercity Passenger Rail Trust Fund of Amounts Equivalent to Certain Taxes.--There are hereby appropriated to the Intercity Passenger Rail Trust Fund amounts equivalent to the taxes received in the Treasury at the rate of .5 cent for each gallon with respect to which tax is imposed under section 4041 or 4081 after September 30, 1997, and before October 1, 2002, but only to the extent such taxes are not attributable to the Highway Trust Fund financing rate. ``(c) Expenditures From Trust Fund.-- ``(1) In general.--Amounts in the Intercity Passenger Rail Trust Fund shall be available without fiscal year limitation to finance qualified expenses of-- ``(A) the National Railroad Passenger Corporation, and ``(B) each non-Amtrak State, to the extent determined under paragraph (2). ``(2) Maximum amount of funds to non-Amtrak states.--Each non-Amtrak State shall receive under this subsection an amount equal to the lesser of-- ``(A) the State's qualified expenses for the fiscal year, or ``(B) the product of-- ``(i) \1/12\ of 1 percent of the lesser of-- ``(I) the aggregate amounts transferred and credited to the Intercity Passenger Rail Trust Fund under subsection (a) for such fiscal year, or ``(II) the aggregate amounts appropriated from the Intercity Passenger Rail Trust Fund for such fiscal year, and ``(ii) the number of months such State is a non-Amtrak State in such fiscal year. If the amount determined under subparagraph (B) exceeds the amount under subparagraph (A) for any fiscal year, the amount under subparagraph (B) for the following fiscal year shall be increased by the amount of such excess. ``(d) Definitions.--For purposes of this section-- ``(1) Qualified expenses.--The term `qualified expenses' means expenses incurred, with respect to obligations made, after September 30, 1997, and before October 1, 2002-- ``(A) for-- ``(i) in the case of the National Railroad Passenger Corporation, the acquisition of equipment, rolling stock, and other capital improvements, the upgrading of maintenance facilities, and the maintenance of existing equipment, in intercity passenger rail service, and the payment of interest and principal on obligations incurred for such acquisition, upgrading, and maintenance, and ``(ii) in the case of a non-Amtrak State, the acquisition of equipment, rolling stock, and other capital improvements, the upgrading of maintenance facilities, and the maintenance of existing equipment, in intercity passenger rail or bus service, and the payment of interest and principal on obligations incurred for such acquisition, upgrading, and maintenance, and ``(B) certified by the Secretary of Transportation on October 1 as meeting the requirements of subparagraph (A) and as qualified for payment under subsection (e) for the fiscal year beginning on such date. ``(2) Non-Amtrak state.--The term `non-Amtrak State' means any State which does not receive intercity passenger rail service from the National Railroad Passenger Corporation. ``(e) Contract Authority.--Notwithstanding any other provision of law, the Secretary of Transportation shall certify expenses as qualified for a fiscal year on October 1 of such year, in an amount not to exceed the amount of receipts estimated by the Secretary of the Treasury to be transferred to the Intercity Passenger Rail Trust Fund for such fiscal year. Such certification shall result in a contractual obligation of the United States for the payment of such expenses. ``(f) Tax Treatment of Trust Fund Expenditures.--With respect to any payment of qualified expenses from the Intercity Passenger Rail Trust Fund during any taxable year to a taxpayer-- ``(1) such payment shall not be included in the gross income of the taxpayer for such taxable year, ``(2) no deduction shall be allowed to the taxpayer with respect to any amount paid or incurred which is attributable to such payment, and ``(3) the basis of any property shall be reduced by the portion of the cost of such property which is attributable to such payment. ``(g) Termination.--The Secretary shall determine and retain, not later than October 1, 2002, the amount in the Intercity Passenger Rail Trust Fund necessary to pay any outstanding qualified expenses, and shall transfer any amount not so retained to the general fund of the Treasury.'' (b) Conforming Amendment.--The table of sections for subchapter A of chapter 98 of such Code (relating to trust fund code) is amended by adding at the end the following new item: ``Sec. 9512. Intercity Passenger Rail Trust Fund.'' (c) Effective Date.--The amendments made by this section shall apply with respect to taxes imposed after September 30, 1997.
summary: Intercity Passenger Rail Trust Fund Act of 1997 - Amends the Internal Revenue Code to establish in the Treasury the Intercity Passenger Rail Trust Fund to finance qualified expenses of: (1) the National Railroad Passenger Corporation; and (2) non-Amtrak States.