Title 26 — Internal Revenue Code
Chapter 38 — Environmental Taxes
§ 4662. Definitions and special rules
Statutory text
Definitions
For purposes of this subchapter—
Taxable chemical
Except as provided in subsection (b), the term “taxable chemical” means any substance—
which is listed in the table under section 4661(b), and
which is manufactured or produced in the United States or entered into the United States for consumption, use, or warehousing.
United States
The term “United States” has the meaning given such term by section 4612(a)(4).
Importer
The term “importer” means the person entering the taxable chemical for consumption, use, or warehousing.
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.
Fractional part of ton
In the case of a fraction of a ton, the tax imposed by section 4661 shall be the same fraction of the amount of such tax imposed on a whole ton.
Exceptions; other special rules
For purposes of this subchapter—
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 or in the manufacture or production of any motor fuel, diesel fuel, aviation fuel, or jet fuel (and, for purposes of section 4661(a), the person so using it shall be treated as the manufacturer thereof).
Substances used in the production of fertilizer
In general
In the case of nitric acid, sulfuric acid, ammonia, or methane used to produce ammonia which is a qualified fertilizer substance, no tax shall be imposed under section 4661(a).
Qualified fertilizer substance
For purposes of this section, the term “qualified fertilizer substance” means any substance—
used in a qualified fertilizer use by the manufacturer, producer, or importer,
sold for use by any purchaser in a qualified fertilizer use, or
sold for resale by any purchaser for use, or resale for ultimate use, in a qualified fertilizer use.
Qualified fertilizer use
The term “qualified fertilizer use” means any use in the manufacture or production of fertilizer or for direct application as a fertilizer.
Taxation of nonqualified sale or use
For purposes of section 4661(a), if no tax was imposed by such section on the sale or use of any chemical by reason of subparagraph (A), the first person who sells or uses such chemical other than in a sale or use described in subparagraph (A) shall be treated as the manufacturer of such chemical.
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.
Substances derived from coal
For purposes of this subchapter, the term “taxable chemical” shall not include any substance to the extent derived from coal.
Substances used in the production of motor fuel, etc.
In general
In the case of any chemical described in subparagraph (D) which is a qualified fuel substance, no tax shall be imposed under section 4661(a).
Qualified fuel substance
For purposes of this section, the term “qualified fuel substance” means any substance—
used in a qualified fuel use by the manufacturer, producer, or importer,
sold for use by any purchaser in a qualified fuel use, or
sold for resale by any purchaser for use, or resale for ultimate use, in a qualified fuel use.
Qualified fuel use
For purposes of this subsection, the term “qualified fuel use” means—
any use in the manufacture or production of any motor fuel, diesel fuel, aviation fuel, or jet fuel, or
any use as such a fuel.
Chemicals to which paragraph applies
For purposes of this subsection, the chemicals described in this subparagraph are acetylene, benzene, butylene, butadiene, ethylene, naphthalene, propylene, toluene, and xylene.
Taxation of nonqualified sale or use
For purposes of section 4661(a), if no tax was imposed by such section on the sale or use of any chemical by reason of subparagraph (A), the first person who sells or uses such chemical other than in a sale or use described in subparagraph (A) shall be treated as the manufacturer of such chemical.
Substance having transitory presence during refining process, etc.
In general
No tax shall be imposed under section 4661(a) on any taxable chemical described in subparagraph (B) by reason of the transitory presence of such chemical during any process of smelting, refining, or otherwise extracting any substance not subject to tax under section 4661(a).
Chemicals to which subparagraph (A) applies
The chemicals described in this subparagraph are—
barium sulfide, cupric sulfate, cupric oxide, cuprous oxide, lead oxide, zinc chloride, and zinc sulfate, and
any solution or mixture containing any chemical described in clause (i).
Removal treated as use
Nothing in subparagraph (A) shall be construed to apply to any chemical which is removed from or ceases to be part of any smelting, refining, or other extraction process.
Special rule for xylene
Except in the case of any substance imported into the United States or exported from the United States, the term “xylene” does not include any separated isomer of xylene.
Recycled chromium, cobalt, and nickel
In general
No tax shall be imposed under section 4661(a) on any chromium, cobalt, or nickel which is diverted or recovered in the United States from any solid waste as part of a recycling process (and not as part of the original manufacturing or production process).
Exemption not to apply while corrective action uncompleted
Subparagraph (A) shall not apply during any period that required corrective action by the taxpayer at the unit at which the recycling occurs is uncompleted.
Required corrective action
For purposes of subparagraph (B), required corrective action shall be treated as uncompleted during the period—
beginning on the date that the corrective action is required by the Administrator or an authorized State pursuant to—
a final permit under section 3005 of the Solid Waste Disposal Act or a final order under section 3004 or 3008 of such Act, or
a final order under section 106 of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, and
ending on the date the Administrator or such State (as the case may be) certifies to the Secretary that such corrective action has been completed.
Special rule for groundwater treatment
In the case of corrective action requiring groundwater treatment, such action shall be treated as completed as of the close of the 10-year period beginning on the date such action is required if such treatment complies with the permit or order applicable under subparagraph (C)(i) throughout such period. The preceding sentence shall cease to apply beginning on the date such treatment ceases to comply with such permit or order.
Solid waste
For purposes of this paragraph, the term “solid waste” has the meaning given such term by section 1004 of the Solid Waste Disposal Act, except that such term shall not include any byproduct, coproduct, or other waste from any process of smelting, refining, or otherwise extracting any metal.
Substances used in the production of animal feed
In general
In the case of—
nitric acid,
sulfuric acid,
ammonia, or
methane used to produce ammonia,
which is a qualified animal feed substance, no tax shall be imposed under section 4661(a).
Qualified animal feed substance
For purposes of this section, the term “qualified animal feed substance” means any substance—
used in a qualified animal feed use by the manufacturer, producer, or importer,
sold for use by any purchaser in a qualified animal feed use, or
sold for resale by any purchaser for use, or resale for ultimate use, in a qualified animal feed use.
Qualified animal feed use
The term “qualified animal feed use” means any use in the manufacture or production of animal feed or animal feed supplements, or of ingredients used in animal feed or animal feed supplements.
Taxation of nonqualified sale or use
For purposes of section 4661(a), if no tax was imposed by such section on the sale or use of any chemical by reason of subparagraph (A), the 1st person who sells or uses such chemical other than in a sale or use described in subparagraph (A) shall be treated as the manufacturer of such chemical.
Hydrocarbon streams containing mixtures of organic taxable chemicals
In general
No tax shall be imposed under section 4661(a) on any organic taxable chemical while such chemical is part of an intermediate hydrocarbon stream containing one or more organic taxable chemicals.
Removal, etc., treated as use
For purposes of this part, if any organic taxable chemical on which no tax was imposed by reason of subparagraph (A) is isolated, extracted, or otherwise removed from, or ceases to be part of, an intermediate hydrocarbon stream—
such isolation, extraction, removal, or cessation shall be treated as use by the person causing such event, and
such person shall be treated as the manufacturer of such chemical.
Registration requirement
Subparagraph (A) shall not apply to any sale of any intermediate hydrocarbon stream unless the registration requirements of clauses (i) and (ii) of subsection (c)(2)(B) are satisfied.
Organic taxable chemical
For purposes of this paragraph, the term “organic taxable chemical” means any taxable chemical which is an organic substance.
Use and certain exchanges by manufacturer, etc.
Use treated as sale
Except as provided in subsections (b) and (e), if any person manufactures, produces, or imports any 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.
Special rules for inventory exchanges
In general
Except as provided in this paragraph, in any case in which a manufacturer, producer, or importer of a taxable chemical exchanges such chemical as part of an inventory exchange with another person—
such exchange shall not be treated as a sale, and
such other person shall, for purposes of section 4661, be treated as the manufacturer, producer, or importer of such chemical.
Registration requirement
Subparagraph (A) shall not apply to any inventory exchange unless—
both parties are registered with the Secretary as manufacturers, producers, or importers of taxable chemicals, and
the person receiving the taxable chemical has, at such time as the Secretary may prescribe, notified the manufacturer, producer, or importer of such person’s registration number and the internal revenue district in which such person is registered.
Inventory exchange
For purposes of this paragraph, the term “inventory exchange” means any exchange in which 2 persons exchange property which is, in the hands of each person, property described in section 1221(a)(1).
Refund or credit for certain uses
In general
Under regulations prescribed by the Secretary, if—
a tax under section 4661 was paid with respect to any taxable chemical, and
such chemical was used by any person in the manufacture or production of any other substance which is a taxable chemical,
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 (or which would have been imposed by such section on such other substance but for subsection (b) or (e) of this section).
Use as fertilizer
Under regulations prescribed by the Secretary, if—
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
any person uses such substance as a qualified fertilizer 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.
Use as qualified fuel
Under regulations prescribed by the Secretary, if—
a tax under section 4661 was paid with respect to any chemical described in subparagraph (D) of subsection (b)(5) without regard to subsection (b)(5), and
any person uses such chemical as a qualified fuel substance,
then an amount equal to the excess of the tax so paid over the tax determined with regard to subsection (b)(5) 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.
Use in the production of animal feed
Under regulations prescribed by the Secretary, if—
a tax under section 4661 was paid with respect to nitric acid, sulfuric acid, ammonia, or methane used to produce ammonia, without regard to subsection (b)(9), and
any person uses such substance as a qualified animal feed substance,
then an amount equal to the excess of the tax so paid over the tax determined with regard to subsection (b)(9) 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.
Exemption for exports of taxable chemicals
Tax-free sales
In general
No tax shall be imposed under section 4661 on the sale by the manufacturer or producer of any taxable chemical for export, or for resale by the purchaser to a second purchaser for export.
Proof of export required
Rules similar to the rules of section 4221(b) shall apply for purposes of subparagraph (A).
Credit or refund where tax paid
In general
Except as provided in subparagraph (B), if—
tax under section 4661 was paid with respect to any taxable chemical, and
such chemical was exported by any person, or
such chemical was used as a material in the manufacture or production of a substance which was exported by any person and which, at the time of export, was a taxable substance (as defined in section 4672(a)),
credit or refund (without interest) of such tax shall be allowed or made to the person who paid such tax.
Condition to allowance
No credit or refund shall be allowed or made under subparagraph (A) unless the person who paid the tax establishes that he—
has repaid or agreed to repay the amount of the tax to the person who exported the taxable chemical or taxable substance (as so defined), or
has obtained the written consent of such exporter to the allowance of the credit or the making of the refund.
Refunds directly to exporter
The Secretary shall provide, in regulations, the circumstances under which a credit or refund (without interest) of the tax under section 4661 shall be allowed or made to the person who exported the taxable chemical or taxable substance, where—
the person who paid the tax waives his claim to the amount of such credit or refund, and
the person exporting the taxable chemical or taxable substance provides such information as the Secretary may require in such regulations.
Regulations
The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this subsection.
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.
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.
Hazardous Substance Response Revenue Act of 1980
Pub. L. 96–510 title II § 211(a) · 94 Stat. 2767
Enacted · 26 U.S.C. § 4662
Added Pub. L. 96–510, title II, § 211(a), Dec. 11, 1980, 94 Stat. 2799
Source evidence
Code source credit
Added Pub. L. 96–510, title II, § 211(a), Dec. 11, 1980, 94 Stat. 2799Enacted 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.Tax Reform Act of 1984
Pub. L. 98–369 § 1019(a)(3) · 98 Stat. 494
Inserted · 26 U.S.C. § 4662(b)(1)
Pub. L. 98–369, § 1019(a)(3), inserted “or in the manufacture or production of any motor fuel, diesel fuel, aviation fuel, or jet fuel”
Source evidence
Code amendment note
Subsec. (b)(1). Pub. L. 98–369, § 1019(a)(3), inserted “or in the manufacture or production of any motor fuel, diesel fuel, aviation fuel, or jet fuel”.Enacted provision · exact public law section
(3) Methane and butane used in production of motor fuel, etc.— Paragraph (1) of section 4662(b) is amended by inserting “or in the manufacture or production of any motor fuel, diesel fuel, aviation fuel, or jet fuel” after “than as a fuel”.Tax Reform Act of 1984
Pub. L. 98–369 § 1019(b)(2)(A) · 98 Stat. 494
Substituted · 26 U.S.C. § 4662(b)(2)(A)
Pub. L. 98–369, § 1019(b)(2)(A), substituted “qualified fertilizer substance” for “qualified substance”
Source evidence
Code amendment note
Subsec. (b)(2)(A). Pub. L. 98–369, § 1019(b)(2)(A), substituted “qualified fertilizer substance” for “qualified substance”.Enacted provision · exact public law section
(B) Subparagraph (B) of section 4662(d)(2) is amended to read as follows: “(B) any person uses such substance as a qualified fertilizer substance,”.Tax Reform Act of 1984
Pub. L. 98–369 § 1019(b)(1) · 98 Stat. 494
Inserted · 26 U.S.C. § 4662(b)(2)(B)(D)
Pub. L. 98–369, § 1019(b)(1), inserted “fertilizer” after “qualified” wherever appearing in subpar. (B)
Substituted · 26 U.S.C. § 4662(b)(2)(B)(D)
Pub. L. 98–369, § 1019(b)(1), inserted “fertilizer” after “Qualified” in subpar. (C) heading and in text substituted “The term ‘qualified fertilizer use’ means any use in the manufacture or production of fertilizer or for direct application as a fertilizer” for “For purposes of this subsection, the term ‘qualified use’ means any use in the manufacture or production of a fertilizer”
Added · 26 U.S.C. § 4662(b)(2)(B)(D)
Pub. L. 98–369, § 1019(b)(1), added subpar. (D)
Source evidence
Code amendment note
Subsec. (b)(2)(B) to (D). Pub. L. 98–369, § 1019(b)(1), inserted “fertilizer” after “qualified” wherever appearing in subpar. (B), inserted “fertilizer” after “Qualified” in subpar. (C) heading and in text substituted “The term ‘qualified fertilizer use’ means any use in the manufacture or production of fertilizer or for direct application as a fertilizer” for “For purposes of this subsection, the term ‘qualified use’ means any use in the manufacture or production of a fertilizer”, and added subpar. (D).Enacted provision · exact public law section
(B) Subparagraph (B) of section 4662(d)(2) is amended to read as follows: “(B) any person uses such substance as a qualified fertilizer substance,”.Tax Reform Act of 1984
Pub. L. 98–369 § 1019(a)(1) · 98 Stat. 494
Added · 26 U.S.C. § 4662(b)(5); 26 U.S.C. § 4662(b)(6)
Pub. L. 98–369, § 1019(a)(1), added pars. (5) and (6)
Source evidence
Code amendment note
Subsec. (b)(5), (6). Pub. L. 98–369, § 1019(a)(1), added pars. (5) and (6).Enacted provision · exact public law section
(1) In general.— Subsection (b) of section 4662 (relating to definitions and special rules with respect to tax on certain chemicals) is amended by adding at the end thereof the following new paragraphs: “(5) Substances used in the production of motor fuel, etc.— “(A) In general.— In the case of any chemical described in subparagraph (D) which is a qualified fuel substance, no tax shall be imposed under section 4661(a). “(B) Qualified fuel substance.— For purposes of this section, the term ‘qualified fuel substance’ means any substance— “(i) used in a qualified fuel use by the manufacturer, producer, or importer, “(ii) sold for use by any purchaser in a qualified fuel use, or “(iii) sold for resale by any purchaser for use, or resale for ultimate use, in a qualified fuel use. “(C) Qualified fuel use.— For purposes of this subsection, the term ‘qualified fuel use’ means— “(i) any use in the manufacture or production of any motor fuel, diesel fuel, aviation fuel, or jet fuel, or “(ii) any use as such a fuel. “(D) Chemicals to which paragraph applies.— For purposes of this subsection, the chemicals described in this subparagraph are acetylene, benzene, butylene, butadiene, ethylene, naphthalene, propylene, toluene, and xylene. “(E) Taxation of nonqualified sale or use.— For purposes of section 4661(a), if no tax was imposed by such section on the sale or use of any chemical by reason of subparagraph (A), the first person who sells or uses such chemical other than in a sale or use described in subparagraph (A) shall be treated as the manufacturer of such chemical. “(6) Substance having transitory presence during refining process, etc.— “(A) In general.— No tax shall be imposed under section 4661(a) on any taxable chemical described in subparagraph (B) by reason of the transitory presence of such chemical during any process of smelting, refining, or otherwise extracting any substance not subject to tax under section 4661(a). “(B) Chemicals to which subparagraph (a) applies.— The chemicals described in this subparagraph are— “(i) barium sulfide, cupric sulfate, cupric oxide, cuprous oxide, lead oxide, zinc chloride, and zinc sulfate, and “(ii) any solution or mixture containing any chemical described in clause (i). “(C) Removal treated as use.— Nothing in subparagraph (A) shall be construed to apply to any chemical which is removed from or ceases to be part of any smelting, refining, or other extraction process.”Tax Reform Act of 1984
Pub. L. 98–369 § 1019(c) · 98 Stat. 494
Substituted · 26 U.S.C. § 4662(c)
Pub. L. 98–369, § 1019(c), substituted “Except as provided in subsection (b), if” for “If”
Source evidence
Code amendment note
Subsec. (c). Pub. L. 98–369, § 1019(c), substituted “Except as provided in subsection (b), if” for “If”.Enacted provision · exact public law section
(c) Conforming Amendment.— Subsection (c) of section 4662 (relating to use by manufacturer, etc., considered sale) is amended by striking out “If” and inserting in lieu thereof “Except as provided in subsection (b), if’.Tax Reform Act of 1984
Pub. L. 98–369 § 1019(b)(2)(B) · 98 Stat. 494
Inserted · 26 U.S.C. § 4662(d)(2)(B)
Pub. L. 98–369, § 1019(b)(2)(B), inserted “fertilizer” after “qualified”
Struck · 26 U.S.C. § 4662(d)(2)(B)
Pub. L. 98–369, § 1019(b)(2)(B), struck out “, or sells such substance for use,” after “such substance”
Source evidence
Code amendment note
Subsec. (d)(2)(B). Pub. L. 98–369, § 1019(b)(2)(B), inserted “fertilizer” after “qualified” and struck out “, or sells such substance for use,” after “such substance”.Enacted provision · exact public law section
(B) Subparagraph (B) of section 4662(d)(2) is amended to read as follows: “(B) any person uses such substance as a qualified fertilizer substance,”.Tax Reform Act of 1984
Pub. L. 98–369 § 1019(a)(2) · 98 Stat. 494
Added · 26 U.S.C. § 4662(d)(3)
Pub. L. 98–369, § 1019(a)(2), added par. (3)
Source evidence
Code amendment note
Subsec. (d)(3). Pub. L. 98–369, § 1019(a)(2), added par. (3).Enacted provision · exact public law section
(2) Credit or refund for use as qualified fuel, etc.— Subsection (d) of section 4662 (relating to refund or credit 26 USC 4662. for certain uses) is amended by adding at the end thereof the following new paragraph: “(3) Use as qualified fuel.— Under regulations prescribed by the Secretary, if— “(A) a tax under section 4661 was paid with respect to any chemical described in subparagraph (D) of subsection (b)(5) without regard to subsection (b)(5), and “(B) any person uses such chemical as a qualified fuel substance, then an amount equal to the excess of the tax so paid over the tax determined with regard to subsection (b)(5) 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.”Pub. L. 99–499 § 513(c) · 100 Stat. 1762-1765
Added · 26 U.S.C. § 4662(b)(7)
Pub. L. 99–499, § 513(c), added par. (7)
Unresolved: Pub. L. 99–499 was not found in the local Statutes at Large index.
Source evidence
Code amendment note
Subsec. (b)(7). Pub. L. 99–499, § 513(c), added par. (7).Pub. L. 99–499 § 513(d) · 100 Stat. 1762-1765
Added · 26 U.S.C. § 4662(b)(8)
Pub. L. 99–499, § 513(d), added par. (8)
Unresolved: Pub. L. 99–499 was not found in the local Statutes at Large index.
Source evidence
Code amendment note
Subsec. (b)(8). Pub. L. 99–499, § 513(d), added par. (8).Pub. L. 99–499 § 513(e)(1) · 100 Stat. 1762-1765
Added · 26 U.S.C. § 4662(b)(9)
Pub. L. 99–499, § 513(e)(1), added par. (9)
Unresolved: Pub. L. 99–499 was not found in the local Statutes at Large index.
Source evidence
Code amendment note
Subsec. (b)(9). Pub. L. 99–499, § 513(e)(1), added par. (9).Pub. L. 99–499 § 513(g) · 100 Stat. 1762-1765
Added · 26 U.S.C. § 4662(b)(10)
Pub. L. 99–499, § 513(g), added par. (10)
Unresolved: Pub. L. 99–499 was not found in the local Statutes at Large index.
Source evidence
Code amendment note
Subsec. (b)(10). Pub. L. 99–499, § 513(g), added par. (10).Pub. L. 99–499 § 513(f) · 100 Stat. 1762-1765
Amended · 26 U.S.C. § 4662(c)
Pub. L. 99–499, § 513(f), amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: “Except as provided in subsection (b), 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.”
Unresolved: Pub. L. 99–499 was not found in the local Statutes at Large index.
Source evidence
Code amendment note
Subsec. (c). Pub. L. 99–499, § 513(f), amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: “Except as provided in subsection (b), 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.”Pub. L. 99–499 § 513(b)(2) · 100 Stat. 1762-1765
Substituted · 26 U.S.C. § 4662(d)(1)
Pub. L. 99–499, § 513(b)(2), substituted “which is a taxable chemical” for “the sale of which by such person would be taxable under such section”, in subpar. (B)
Substituted · 26 U.S.C. § 4662(d)(1)
Pub. L. 99–499, § 513(b)(2), substituted “imposed by such section on the other substance manufactured or produced (or which would have been imposed by such section on such other substance but for subsection (b) or (e) of this section)” for “imposed by such section on the other substance manufactured or produced” in last sentence
Unresolved: Pub. L. 99–499 was not found in the local Statutes at Large index.
Source evidence
Code amendment note
Subsec. (d)(1). Pub. L. 99–499, § 513(b)(2), substituted “which is a taxable chemical” for “the sale of which by such person would be taxable under such section”, in subpar. (B), and substituted “imposed by such section on the other substance manufactured or produced (or which would have been imposed by such section on such other substance but for subsection (b) or (e) of this section)” for “imposed by such section on the other substance manufactured or produced” in last sentence.Pub. L. 99–499 § 513(e)(2) · 100 Stat. 1762-1765
Added · 26 U.S.C. § 4662(d)(4)
Pub. L. 99–499, § 513(e)(2), added par. (4)
Unresolved: Pub. L. 99–499 was not found in the local Statutes at Large index.
Source evidence
Code amendment note
Subsec. (d)(4). Pub. L. 99–499, § 513(e)(2), added par. (4).Pub. L. 99–499 § 513(b)(1) · 100 Stat. 1762-1765
Added · 26 U.S.C. § 4662(e); 26 U.S.C. § 4662(f)
Pub. L. 99–499, § 513(b)(1), added subsec. (e)
Redesignated · 26 U.S.C. § 4662(e); 26 U.S.C. § 4662(f)
Pub. L. 99–499, § 513(b)(1), redesignated former subsec. (e) as (f)
Unresolved: Pub. L. 99–499 was not found in the local Statutes at Large index.
Source evidence
Code amendment note
Subsecs. (e), (f). Pub. L. 99–499, § 513(b)(1), added subsec. (e) and redesignated former subsec. (e) as (f).Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 2001(a)(2) · 102 Stat. 3342
Substituted · 26 U.S.C. § 4662(b)(10)(A)
Pub. L. 100–647, § 2001(a)(2), substituted “one or more” for “a mixture of”
Source evidence
Code amendment note
Subsec. (b)(10)(A). Pub. L. 100–647, § 2001(a)(2), substituted “one or more” for “a mixture of”.Enacted provision · exact public law section
(2) Subparagraph (A) of section 4662(b)(10) of the 1986 Code is amended by striking out “a mixture of” and inserting in lieu thereof “one or more”.Technical and Miscellaneous Revenue Act of 1988
Pub. L. 100–647 § 2001(a)(1) · 102 Stat. 3342
Added · 26 U.S.C. § 4662(e)(3); 26 U.S.C. § 4662(e)(4)
Pub. L. 100–647, § 2001(a)(1), added par. (3)
Redesignated · 26 U.S.C. § 4662(e)(3); 26 U.S.C. § 4662(e)(4)
Pub. L. 100–647, § 2001(a)(1), redesignated former par. (3) as (4)
Source evidence
Code amendment note
Subsec. (e)(3), (4). Pub. L. 100–647, § 2001(a)(1), added par. (3) and redesignated former par. (3) as (4).Enacted provision · exact public law section
(1) Subsection (e) of section 4662 of the 1986 Code is amended by redesignating paragraph (3) as paragraph (4) and by inserting after paragraph (2) the following new paragraph: “(3) Refunds directly to exporter.— The Secretary shall Regulations. provide, in regulations, the circumstances under which a credit or refund (without interest) of the tax under section 4661 shall be allowed or made to the person who exported the taxable chemical or taxable substance, where— “(A) the person who paid the tax waives his claim to the amount of such credit or refund, and “(B) the person exporting the taxable chemical or taxable substance provides such information as the Secretary may require in such regulations.”Tax Relief Extension Act of 1999
Pub. L. 106–170 title V § 532(c)(2)(U) · 113 Stat. 1860
Substituted · 26 U.S.C. § 4662(c)(2)(C)
Pub. L. 106–170 substituted “section 1221(a)(1)” for “section 1221(1)”
Source evidence
Code amendment note
Subsec. (c)(2)(C). Pub. L. 106–170 substituted “section 1221(a)(1)” for “section 1221(1)”.Enacted provision · exact public law section
(U) Section 4662(c)(2)(C).Effective date note
Amendment by Pub. L. 106–170 applicable to any instrument held, acquired, or entered into, any transaction entered into, and supplies held or acquired on or after Dec. 17, 1999, see section 532(d) of Pub. L. 106–170, set out as a note under section 170 of this title.
15 of 25 references resolved to an enrolled provision · 10 unresolved
Editorial Notes
References in Text
Sections 3005, 3004, and 3008 of the Solid Waste Disposal Act, referred to in subsec. (b)(8)(C)(i)(I), and section 1004 of that Act, referred to in subsec. (b)(8)(E), are classified to sections 6925, 6924, 6928, and 6903, respectively, of Title 42, The Public Health and Welfare.
Section 106 of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, referred to in subsec. (b)(8)(C)(i)(II), is classified to section 9606 of Title 42.
Amendments1984–1999 · 4 rounds
1999
Subsec. (c)(2)(C). Pub. L. 106–170 substituted “section 1221(a)(1)” for “section 1221(1)”.
1988
Subsec. (b)(10)(A). Pub. L. 100–647, § 2001(a)(2), substituted “one or more” for “a mixture of”.
Subsec. (e)(3), (4). Pub. L. 100–647, § 2001(a)(1), added par. (3) and redesignated former par. (3) as (4).
1986
Subsec. (b)(7). Pub. L. 99–499, § 513(c), added par. (7).
Subsec. (b)(8). Pub. L. 99–499, § 513(d), added par. (8).
Subsec. (b)(9). Pub. L. 99–499, § 513(e)(1), added par. (9).
Subsec. (b)(10). Pub. L. 99–499, § 513(g), added par. (10).
Subsec. (c). Pub. L. 99–499, § 513(f), amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: “Except as provided in subsection (b), 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.”
Subsec. (d)(1). Pub. L. 99–499, § 513(b)(2), substituted “which is a taxable chemical” for “the sale of which by such person would be taxable under such section”, in subpar. (B), and substituted “imposed by such section on the other substance manufactured or produced (or which would have been imposed by such section on such other substance but for subsection (b) or (e) of this section)” for “imposed by such section on the other substance manufactured or produced” in last sentence.
Subsec. (d)(4). Pub. L. 99–499, § 513(e)(2), added par. (4).
Subsecs. (e), (f). Pub. L. 99–499, § 513(b)(1), added subsec. (e) and redesignated former subsec. (e) as (f).
1984
Subsec. (b)(1). Pub. L. 98–369, § 1019(a)(3), inserted “or in the manufacture or production of any motor fuel, diesel fuel, aviation fuel, or jet fuel”.
Subsec. (b)(2)(A). Pub. L. 98–369, § 1019(b)(2)(A), substituted “qualified fertilizer substance” for “qualified substance”.
Subsec. (b)(2)(B) to (D). Pub. L. 98–369, § 1019(b)(1), inserted “fertilizer” after “qualified” wherever appearing in subpar. (B), inserted “fertilizer” after “Qualified” in subpar. (C) heading and in text substituted “The term ‘qualified fertilizer use’ means any use in the manufacture or production of fertilizer or for direct application as a fertilizer” for “For purposes of this subsection, the term ‘qualified use’ means any use in the manufacture or production of a fertilizer”, and added subpar. (D).
Subsec. (b)(5), (6). Pub. L. 98–369, § 1019(a)(1), added pars. (5) and (6).
Subsec. (c). Pub. L. 98–369, § 1019(c), substituted “Except as provided in subsection (b), if” for “If”.
Subsec. (d)(2)(B). Pub. L. 98–369, § 1019(b)(2)(B), inserted “fertilizer” after “qualified” and struck out “, or sells such substance for use,” after “such substance”.
Subsec. (d)(3). Pub. L. 98–369, § 1019(a)(2), added par. (3).
Statutory Notes and Related Subsidiaries
Effective Date of 1999 Amendment
Amendment by Pub. L. 106–170 applicable to any instrument held, acquired, or entered into, any transaction entered into, and supplies held or acquired on or after , see section 532(d) of Pub. L. 106–170, set out as a note under section 170 of this title.
Effective Date of 1988 Amendment
Amendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Superfund Revenue Act of 1986, Pub. L. 99–499, title V, to which it relates, see section 2001(e) of Pub. L. 100–647, set out as a note under section 56 of this title.
Effective Date of 1986 Amendment
Amendment by Pub. L. 99–499 effective , except as otherwise provided, see section 513(h) of Pub. L. 99–499, set out as a note under section 4661 of this title.
Effective Date of 1984 Amendment
Pub. L. 98–369, div. A, title X, § 1019(d), , 98 Stat. 1024, provided that:
“(1) In general.—
The amendments made by this section [amending this section] shall take effect as if included in the amendments made by section 211(a) of the Hazardous Substance Response Revenue Act of 1980 [Pub. L. 96–510, which enacted this section].
“(2) Waiver of limitation.—
If refund or credit of any overpayment of tax resulting from the application of the amendments made by this section is prevented at any time before the date which for one year after the date of the enactment of this Act [] by the operation of any law or rule of law (including res judicata), refund or credit of such overpayment (to the extent attributable to the application of such amendments) may, nevertheless, be made or allowed if claim therefor is filed on or before the date which for one year after the date of the enactment of this Act.”
Credits
1980–1999 · 5 acts
- 1980Added Pub. L. 96–510, title II, § 211(a), , 94 Stat. 2799
- 1984amended Pub. L. 98–369, div. A, title X, § 1019(a)–(c), , 98 Stat. 1022–1024
- 1986Pub. L. 99–499, title V, § 513(b)–(g), , 100 Stat. 1762–1765
- 1988Pub. L. 100–647, title II, § 2001(a), , 102 Stat. 3593
- 1999Pub. L. 106–170, title V, § 532(c)(2)(U), , 113 Stat. 1931.
Show as published
(Added Pub. L. 96–510, title II, § 211(a), , 94 Stat. 2799; amended Pub. L. 98–369, div. A, title X, § 1019(a)–(c), , 98 Stat. 1022–1024; Pub. L. 99–499, title V, § 513(b)–(g), , 100 Stat. 1762–1765; Pub. L. 100–647, title II, § 2001(a), , 102 Stat. 3593; Pub. L. 106–170, title V, § 532(c)(2)(U), , 113 Stat. 1931.)