§ 4661. Imposition of tax

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1980

   Hazardous Substance Response Revenue Act of 1980

   Pub. L. 96–510 title II § 211(a) · 94 Stat. 2767

   Enacted · 26 U.S.C. § 4661

   Added Pub. L. 96–510, title II, § 211(a), Dec. 11, 1980, 94 Stat. 2798

   Source evidence

   Code source credit
   Added Pub. L. 96–510, title II, § 211(a), Dec. 11, 1980, 94 Stat. 2798

   Enacted provision · exact public law section
   (a) General Rule.— Subtitle D (relating to miscellaneous excise taxes) is amended by inserting after chapter 37 the following new chapter: “CHAPTER 38— ENVIRONMENTAL TAXES “Subchapter A. Tax on petroleum. “Subchapter B. Tax on certain chemicals. “Subchapter A— Tax on Petroleum “Sec. 4611. Imposition of tax. “Sec. 4612. Definitions and special rules. “SEC. 4611. IMPOSITION OF TAX. “(a) General Rule.— There is hereby imposed a tax of 0.79 cent a barrel on— “(1) crude oil received at a United States refinery, and “(2) petroleum products entered into the United States for consumption, use, or warehousing. “(b) Tax on Certain Uses and Exportation.— “(1) In general.— If— “(A) any domestic crude oil is used in or exported from the United States, and “(B) before such use or exportation, no tax was imposed on such crude oil under subsection (a), then a tax of 0.79 cent a barrel is hereby imposed on such crude oil. “(2) Exception for use on premises where produced.— Paragraph (1) shall not apply to any use of crude oil for extracting oil or natural gas on the premises where such crude oil was produced. “(c) Persons Liable for Tax.— “(1) Crude oil received at refinery.— The tax imposed by subsection (a)(1) shall be paid by the operator of the United States refinery. “(2) Imported petroleum product.— The tax imposed by subsection (a)(2) shall be paid by the person entering the product for consumption, use, or warehousing. “(3) Tax on certain uses or exports.— The tax imposed by subsection (b) shall be paid by the person using or exporting the crude oil, as the case may be. “(d) Termination.— The taxes imposed by this section shall not apply after September 30, 1985, except that if on September 30, 1983, or September 30, 1984— “(1) the unobligated balance in the Hazardous Substance Response Trust Fund as of such date exceeds $900,000,000, and “(2) the Secretary, after consultation with the Administrator of the Environmental Protection Agency, determines that such unobligated balance will exceed $500,000,000 on September 30 of the following year if no tax is imposed under section 4611 Post, p. 2798. or 4661 during the calendar year following the date referred to above, then no tax shall be imposed by this section during the first calendar year beginning after the date referred to in paragraph (1). “SEC. 4612. DEFINITIONS AND SPECIAL RULES. “(a) Definitions.— For purposes of this subchapter— “(1) Crude oil.— The term ‘crude oil’ includes crude oil condensates and natural gasoline. “(2) Domestic crude oil.— The term ‘domestic crude oil’ means any crude oil produced from a well located in the United States. “(3) Petroleum product.— The term ‘petroleum product’ includes crude oil. “(4) United states.— “(A) In general.— The term ‘United States’ means the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, any possession of the United States, the Commonwealth of the Northern Mariana Islands, and the Trust Territory of the Pacific Islands. “(B) United states includes continental shelf areas.— 26 USC 638. The principles of section 638 shall apply for purposes of the term ‘United States’. “(C) United states includes foreign trade zones.— The term ‘United States’ includes any foreign trade zone of the United States. “(5) United states refinery.— The term ‘United States refinery’ means any facility in the United States at which crude oil is refined. “(6) Refineries which produce natural gasoline.— In the case of any United States refinery which produces natural gasoline from natural gas, the gasoline so produced shall be treated as received at such refinery at the time so produced. “(7) Premises.— The term ‘premises’ has the same meaning as when used for purposes of determining gross income from the property under section 613. “(8) Barrel.— The term ‘barrel’ means 42 United States gallons. “(9) Fractional part of barrel.— In the case of a fraction of a barrel, the tax imposed by section 4611 shall be the same fraction of the amount of such tax imposed on a whole barrel. “(b) Only 1 Tax Imposed with Respect to Any Product.— No tax Ante, p. 2797. shall be imposed by section 4611 with respect to any petroleum product if the person who would be liable for such tax establishes that a prior tax imposed by such section has been imposed with respect to such product. “(c) Disposition of Revenues From Puerto Rico and the Virgin Islands.— The provisions of subsections (a)(3) and (b)(3) of section 7652 shall not apply to any tax imposed by section 4611. “Subchapter B— Tax on Certain Chemicals “Sec. 4661. Imposition of tax. “Sec. 4662. Definitions and special rules. “SEC. 4661. IMPOSITION OF TAX. “(a) General Rule.— There is hereby imposed a tax on any taxable chemical sold by the manufacturer, producer, or importer thereof. “(b) Amount of Tax.— The amount of the tax imposed by subsection (a) shall be determined in accordance with the following table:   “In the case of: The tax is the following amount per ton Acetylene $4.87 Benzene $4.87 Butane 4.87 Butylene 4.87 Butadiene 4.87 Ethylene 4.87 Methane 3.44 Naphthalene 4.87 Propylene 4.87 Toluene 4.87 Xylene 4.87 Ammonia 2.64 Antimony 4.45 Antimony trioxide 3.75 Arsenic 4.45 Arsenic trioxide 3.41 Barium sulfide 2.30 Bromine 4.45 Cadmium 4.45 Chlorine 2.70 Chromium 4.45 Chromite 1.52 Potassium dichromate 1.69 Sodium dichromate 1.87 Cobalt 4.45 Cupric sulfate 1.87 Cupric oxide 3.59 Cuprous oxide 3.97 Hydrochloric acid 0.29 Hydrogen fluoride 4.23 Lead oxide 4.14 Mercury 4.45 Nickel 4.45 Phosphorus 4.45 Stannous chloride 2.85 Stannic chloride 2.12 Zinc chloride 2.22 Zinc sulfate 1.90 Potassium hydroxide 0.22 Sodium hydroxide 0.28 Sulfuric acid 0.26 Nitric acid 0.24 “(c) Termination.— No tax shall be imposed under this section during any period during which no tax is imposed under section 4611(a). Ante, p. 2797. “SEC. 4662. DEFINITIONS AND SPECIAL RULES. “(a) Definitions.— For purposes of this subchapter— “(1) Taxable chemical.— Except as provided in subsection (b), the term ‘taxable chemical’ means any substance— “(A) which is listed in the table under section 4661(b), and Ante, p. 2798. “(B) which is manufactured or produced in the United States or entered into the United States for consumption, use, or warehousing. “(2) United states.— The term ‘United States’ has the meaning given such term by section 4612(a)(4). Ante, p. 2798. “(3) Importer.— The term ‘importer’ means the person entering the taxable chemical for consumption, use, or warehousing. “(4) Ton.— The term ‘ton’ means 2,000 pounds. In the case of any taxable chemical which is a gas, the term ‘ton’ means the amount of such gas in cubic feet which is the equivalent of 2,000 pounds on a molecular weight basis. “(5) Fractional part of ton.— In the case of a fraction of a Ante, p. 2798. ton, the tax imposed by section 4661 shall be the same fraction of the amount of such tax imposed on a whole ton. “(b) Exceptions; Other Special Rules.— For purposes of this subchapter— “(1) Methane or butane used as a fuel.— Under regulations prescribed by the Secretary, methane or butane shall be treated as a taxable chemical only if it is used otherwise than as a fuel (and, for purposes of section 4661(a), the person so using it shall be treated as the manufacturer thereof). “(2) Substances used in the production of fertilizer.— “(A) In general.— In the case of nitric acid, sulfuric acid, ammonia, or methane used to produce ammonia which is a qualified substance, no tax shall be imposed under section 4661(a). “(B) Qualified substance.— For purposes of this section, the term ‘qualified substance’ means any substance— “(i) used in a qualified use by the manufacturer, producer, or importer, “(ii) sold for use by the purchaser in a qualified use, or “(iii) sold for resale by the purchaser to a second purchaser for use by such second purchaser in a qualified use. “(C) Qualified use.— For purposes of this subsection, the term ‘qualified use’ means any use in the manufacture or production of a fertilizer. “(3) Sulfuric acid produced as a byproduct of air pollution control.— In the case of sulfuric acid produced solely as a byproduct of and on the same site as air pollution control equipment, no tax shall be imposed under section 4661. “(4) Substances derived from coal.— For purposes of this subchapter, the term ‘taxable chemical’ shall not include any substance to the extent derived from coal. “(c) Use by Manufacturer, Etc., Considered Sale.— If any person manufactures, produces, or imports a taxable chemical and uses such chemical, then such person shall be liable for tax under section 4661 in the same manner as if such chemical were sold by such person. “(d) Refund or Credit for Certain Uses.— “(1) In general.— Under regulations prescribed by the Secretary, if— “(A) a tax under section 4661 was paid with respect to any taxable chemical, and “(B) such chemical was used by any person in the manufacture or production of any other substance the sale of which by such person would be taxable under such section, then an amount equal to the tax so paid shall be allowed as a credit or refund (without interest) to such person in the same manner as if it were an overpayment of tax imposed by such section. In any case to which this paragraph applies, the amount of any such credit or refund shall not exceed the amount of tax imposed by such section on the other substance manufactured or produced. “(2) Use as fertilizer.— Under regulations prescribed by the Secretary, if— “(A) a tax under section 4661 was paid with respect to nitric acid, sulfuric acid, ammonia, or methane used to make ammonia without regard to subsection (b)(2), and “(B) any person uses such substance, or sells such substance for use, as a qualified substance, then an amount equal to the excess of the tax so paid over the tax determined with regard to subsection (b)(2) shall be allowed as a credit or refund (without interest) to such person in the same manner as if it were an overpayment of tax imposed by this section. “(e) Disposition of Revenues From Puerto Rico and the Virgin Islands.— The provisions of subsections (a)(3) and (b)(3) of section 7652 shall not apply to any tax imposed by section 4661.”. 26 USC 7652. Ante, p. 2798.

2. 1986

   Pub. L. 99–499 title V § 513(a) · 100 Stat. 1761

   Substituted · 26 U.S.C. § 4661(b)

   Pub. L. 99–499 inserted at end “For periods before 1992, the item relating to xylene in the preceding table shall be applied by substituting ‘10.13’ for ‘4.87’.”

   Unresolved: Pub. L. 99–499 was not found in the local Statutes at Large index.

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 99–499 inserted at end “For periods before 1992, the item relating to xylene in the preceding table shall be applied by substituting ‘10.13’ for ‘4.87’.”

3. 1986

   Omnibus Budget Reconciliation Act of 1986

   Pub. L. 99–509 title VIII § 8032(c)(3) · 100 Stat. 1874

   Substituted · 26 U.S.C. § 4661(c)

   Pub. L. 99–509 substituted “the Hazardous Substance Superfund financing rate under section 4611 does not apply” for “no tax is imposed under section 4611(a)”

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 99–509 substituted “the Hazardous Substance Superfund financing rate under section 4611 does not apply” for “no tax is imposed under section 4611(a)”.

   Enacted provision · exact public law section
   (3) Sections 4661(c) and 4671(e) of such Code (relating to Ante, pp. 1761, 1956. termination of environmental taxes) are each amended by striking out “no tax is imposed under section 4611(a)” and inserting in lieu thereof “the Hazardous Substance Superfund financing rate under section 4611 does not apply”.

4. 2021

   Infrastructure Investment and Jobs Act

   Pub. L. 117–58 § 80201(b)(1) · 135 Stat. 429

   Amended · 26 U.S.C. § 4661(b)

   Pub. L. 117–58, § 80201(b)(1), amended subsec. (b) generally. Prior to amendment, subsec. (b) set out the amount of tax on certain taxable chemicals

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 117–58, § 80201(b)(1), amended subsec. (b) generally. Prior to amendment, subsec. (b) set out the amount of tax on certain taxable chemicals.

   Enacted provision · exact public law section
   (1) In general.— Section 4661(b) of the Internal Revenue Code of 1986 26 USC 4661. is amended to read as follows: “(b) Amount of Tax.— The amount of tax imposed by subsection (a) shall be determined in accordance with the following table: “In the case of:The tax is the following amount per ton: Acetylene$9.74   Benzene9.74   Butane9.74   Butylene9.74   Butadiene9.74   Ethylene9.74   Methane6.88   Napthalene9.74   Propylene9.74   Toluene9.74   Xylene9.74   Ammonia5.28   Antimony8.90   Antimony trioxide7.50   Arsenic8.90   Arsenic trioxide6.82   Barium sulfide4.60   Bromine8.90   Cadmium8.90   Chlorine5.40   Chromium8.90   Chromite3.04   Potassium dichromate3.38   Sodium dichromate3.74   Cobalt8.90   Cupric sulfate3.74   Cupric oxide7.18   Cuprous oxide7.94   Hydrochloric acid0.58   Hydrogen fluoride8.46   Lead oxide8.28   Mercury8.90   Nickel8.90   Phosphorus8.90   Stannous chloride5.70   Stannic chloride4.24   Zinc chloride4.44   Zinc sulfate3.80   Potassium hydroxide0.44   Sodium hydroxide0.56   Sulfuric acid0.52   Nitric acid0.48.”.

   Effective date note
   Pub. L. 117–58, div. H, title II, § 80201(d), Nov. 15, 2021, 135 Stat. 1330, provided that: “The amendments made by this section [amending this section and sections 4671 and 4672 of this title] shall take effect on July 1, 2022.”

5. 2021

   Infrastructure Investment and Jobs Act

   Pub. L. 117–58 § 80201(a)(1) · 135 Stat. 429

   Amended · 26 U.S.C. § 4661(c)

   Pub. L. 117–58, § 80201(a)(1), amended subsec. (c) generally. Prior to amendment, text read as follows: “No tax shall be imposed under this section during any period during which the Hazardous Substance Superfund financing rate under section 4611 does not apply.”

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 117–58, § 80201(a)(1), amended subsec. (c) generally. Prior to amendment, text read as follows: “No tax shall be imposed under this section during any period during which the Hazardous Substance Superfund financing rate under section 4611 does not apply.”

   Enacted provision · exact public law section
   (1) In general.— Section 4661(c) of the Internal Revenue Code of 1986 is amended to read as follows: “(c) Termination.— No tax shall be imposed by this section after December 31, 2031.” .

   Effective date note
   Pub. L. 117–58, div. H, title II, § 80201(d), Nov. 15, 2021, 135 Stat. 1330, provided that: “The amendments made by this section [amending this section and sections 4671 and 4672 of this title] shall take effect on July 1, 2022.”

4 of 5 references resolved to an enrolled provision · 1 unresolved