A bill to amend the Internal Revenue Code of 1986 to permit tax-free sales of certain fuels, and for other purposes.

Amends the Internal Revenue Code to prohibit, with limited exceptions, the imposition of the excise tax on diesel and aviation fuels in connection with sales to a purchaser for use in public intercity, local, or school buses or for statutorily nontaxable uses (including off-highway business uses, State or local government uses, and shipping uses). Sets forth registration requirements for both sellers and purchasers participating in exempt sales. Establishes reporting requirements for producers and importers and penalties for failure to report.

Permits expedited procedures for refunds or income tax credits with respect to retail sales of diesel and aviation fuel employed in nontaxable uses. Provides for the payment of interest in connection with such refunds.

Treats marine retailers of taxable fuel as producers for purposes of the excise tax on diesel and aviation fuels.