Repeal of excise taxes on diesel fuel

(a) Section 4041 taxes Section 4041(a)(1) of the Internal Revenue Code of 1986 is hereby repealed. (b) Section 4081 taxes Section 4081(a)(2)(A) of such Code is amended by inserting and at the end of clause (i), by striking, and at the end of clause (ii) and inserting a period, and by striking clause (iii). (c) Conforming amendments (1) The heading of section 4041(a) of such Code is amended by striking Diesel fuel and special motor fuels and inserting Special motor fuels. (2) Section 4041(b)(1)(C) of such Code is amended by striking; except that such term shall not, for purposes of subsection (a)(1), include use in a diesel-powered train. (3) Section 4041(d) of such Code is amended by striking paragraph (3) and by redesignating paragraphs (4) and (5) as paragraphs (3) and (4). (4) Section 4081(a)(2) of such Code is amended by striking subparagraph (D). (5) Section 4081 of such Code is amended by striking subsection (c) and by redesignating subsections (d) and (e) as subsections (c) and (d). (6) Section 4081(c)(1) of such Code (as so redesignated) is amended by striking The rates of tax specified in clauses (i) and (iii) of subsection (a)(2)(A) and inserting The rate of tax specified in subsection (a)(2)(A)(i). (d) Effective date The amendments made by this section shall apply to diesel fuel sold, used, removed, or entered after the date of the enactment of this Act.