A bill to decrease the rates of taxes imposed on fuels containing alcohol from existing rates through 1987, to provide annual increases in the rates of such taxes beginning in 1988 until the existing rates of such taxes are reached, to increase the rate of tax imposed on leaded gasoline, and for other purposes.

Amends the Internal Revenue Code to reduce the excise tax on gasoline, diesel fuel, and special motor fuels containing alcohol from four cents to one cent per gallon through 1987. Increases such tax to: (1) two cents in 1988; (2) three cents in 1989; and (3) four cents between 1990 and 1993.

Increases the excise tax on leaded gasoline from nine cents to 11 cents per gallon. Revises the rules relating to the refund of floor stock excise taxes on gasoline and gasohol.

Provides for a temporary increase through 1989 in the amount of the income tax credit allowed for alcohol used as a fuel. Provides for a temporary increase through 1989 in the customs duty on alcohol imported for use as a fuel.