-CITE-
26 USC CHAPTER 38 - ENVIRONMENTAL TAXES 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle D - Miscellaneous Excise Taxes
CHAPTER 38 - ENVIRONMENTAL TAXES
-HEAD-
CHAPTER 38 - ENVIRONMENTAL TAXES
-MISC1-
Subchapter Sec.(!1)
A. Tax on petroleum 4611
B. Tax on certain chemicals 4661
C. Tax on certain imported substances 4671
D. Ozone-depleting chemicals, etc. 4681
PRIOR PROVISIONS
A prior chapter 38, consisting of sections 4521 to 4603 and
relating to import taxes, was repealed by Pub. L. 87-456, title
III, Sec. 302(d), May 24, 1962, 76 Stat. 77, and Pub. L. 94-455,
title XIX, Sec. 1904(a)(15), Oct. 4, 1976, 90 Stat. 1814.
AMENDMENTS
1989 - Pub. L. 101-239, title VII, Sec. 7506(b), Dec. 19, 1989,
103 Stat. 2369, added item for subchapter D.
1986 - Pub. L. 99-499, title V, Sec. 515(b), Oct. 17, 1986, 100
Stat. 1769, added item for subchapter C.
Pub. L. 99-499, title V, Sec. 514(a)(2), Oct. 17, 1986, 100 Stat.
1767, struck out item for subchapter C.
1980 - Pub. L. 96-510, title II, Sec. 231(b), Dec. 11, 1980, 94
Stat. 2804, added item for subchapter C.
Pub. L. 96-510, title II, Sec. 211(a), Dec. 11, 1980, 94 Stat.
2797, added chapter 38 and analysis of subchapters consisting of
items A and B.
-FOOTNOTE-
(!1) Section numbers editorially supplied.
-End-
-CITE-
26 USC Subchapter A - Tax on Petroleum 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle D - Miscellaneous Excise Taxes
CHAPTER 38 - ENVIRONMENTAL TAXES
Subchapter A - Tax on Petroleum
-HEAD-
SUBCHAPTER A - TAX ON PETROLEUM
-MISC1-
Sec.
4611. Imposition of tax.
4612. Definitions and special rules.
-End-
-CITE-
26 USC Sec. 4611 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle D - Miscellaneous Excise Taxes
CHAPTER 38 - ENVIRONMENTAL TAXES
Subchapter A - Tax on Petroleum
-HEAD-
Sec. 4611. Imposition of tax
-STATUTE-
(a) General Rule
There is hereby imposed a tax at the rate specified in subsection
(c) 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 at the rate specified in subsection (c) 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) Rate of tax
(1) In general
The rate of the taxes imposed by this section is the sum of -
(A) the Hazardous Substance Superfund financing rate, and
(B) the Oil Spill Liability Trust Fund financing rate.
(2) Rates
For purposes of paragraph (1) -
(A) the Hazardous Substance Superfund financing rate is 9.7
cents a barrel, and
(B) the Oil Spill Liability Trust Fund financing rate is 5
cents a barrel.
(d) 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.
(e) Application of Hazardous Substance Superfund financing rate
(1) In general
Except as provided in paragraphs (2) and (3), the Hazardous
Substance Superfund financing rate under this section shall apply
after December 31, 1986, and before January 1, 1996.
(2) No tax if unobligated balance in Fund exceeds $3,500,000,000
If on December 31, 1993, or December 31, 1994 -
(A) the unobligated balance in the Hazardous Substance
Superfund exceeds $3,500,000,000, and
(B) the Secretary, after consultation with the Administrator
of the Environmental Protection Agency, determines that the
unobligated balance in the Hazardous Substance Superfund will
exceed $3,500,000,000 on December 31 of 1994 or 1995,
respectively, if no tax is imposed under section 59A, this
section, and sections 4661 and 4671,
then no tax shall be imposed under this section (to the extent
attributable to the Hazardous Substance Superfund financing rate)
during 1994 or 1995, as the case may be.
(3) No tax if amounts collected exceed $11,970,000,000
(A) Estimates by Secretary
The Secretary as of the close of each calendar quarter (and
at such other times as the Secretary determines appropriate)
shall make an estimate of the amount of taxes which will be
collected under section 59A, this section (to the extent
attributable to the Hazardous Substance Superfund financing
rate), and sections 4661 and 4671 and credited to the Hazardous
Substance Superfund during the period beginning January 1,
1987, and ending December 31, 1995.
(B) Termination if $11,970,000,000 credited before January 1,
1996
If the Secretary estimates under subparagraph (A) that more
than $11,970,000,000 will be credited to the Fund before
January 1, 1996, the Hazardous Substance Superfund financing
rate under this section shall not apply after the date on which
(as estimated by the Secretary) $11,970,000,000 will be so
credited to the Fund.
(f) Application of Oil Spill Liability Trust Fund financing rate
(1) In general
Except as provided in paragraph (2), the Oil Spill Liability
Trust Fund financing rate under subsection (c) shall apply after
December 31, 1989, and before January 1, 1995.
(2) No tax if unobligated balance in fund exceeds $1,000,000,000
The Oil Spill Liability Trust Fund financing rate shall not
apply during any calendar quarter if the Secretary estimates that
as of the close of the preceding calendar quarter the unobligated
balance in the Oil Spill Liability Trust Fund exceeds
$1,000,000,000.
-SOURCE-
(Added Pub. L. 96-510, title II, Sec. 211(a), Dec. 11, 1980, 94
Stat. 2797; amended Pub. L. 99-499, title V, Secs. 511(a), 512(a),
(b), Oct. 17, 1986, 100 Stat. 1760, 1761; Pub. L. 99-509, title
VIII, Sec. 8032(a), (c)(1), (2), Oct. 21, 1986, 100 Stat. 1957,
1958; Pub. L. 100-647, title VI, Sec. 6108, Nov. 10, 1988, 102
Stat. 3712; Pub. L. 101-221, Sec. 8(a), Dec. 12, 1989, 103 Stat.
1891; Pub. L. 101-239, title VII, Sec. 7505(a), (b), Dec. 19, 1989,
103 Stat. 2363; Pub. L. 101-508, title XI, Sec. 11231(a)(1)(B),
(2), (b), Nov. 5, 1990, 104 Stat. 1388-445.)
-COD-
CODIFICATION
Amendments by Pub. L. 99-509, title VIII, Sec. 8031(a), (b), and
(d)(1), Oct. 21, 1986, 100 Stat. 1955, to subsecs. (a) to (e) of
this section were not executed to text pursuant to Pub. L. 99-509,
title VIII, Sec. 8031(e)(2), which provided that the amendments
made by section 8031 shall not take effect if the Superfund
Amendments and Reauthorization Act of 1986 is enacted. The
Superfund Amendments and Reauthorization Act of 1986 was enacted as
Pub. L. 99-499, approved Oct. 17, 1986.
-MISC1-
AMENDMENTS
1990 - Subsec. (e)(1). Pub. L. 101-508, Sec. 11231(a)(1)(B),
substituted "January 1, 1996" for "January 1, 1992".
Subsec. (e)(2). Pub. L. 101-508, Sec. 11231(a)(2), substituted
"1993" for "1989" and "1994" for "1990" in introductory provisions
and "1994" for "1990" and "1995" for "1991" in subpar. (B) and
concluding provisions.
Subsec. (e)(3). Pub. L. 101-508, Sec. 11231(b), substituted
"$11,970,000,000" for "$6,650,000,000" in heading.
Subsec. (e)(3)(A). Pub. L. 101-508, Sec. 11231(b), substituted
"December 31, 1995" for "December 31, 1991".
Subsec. (e)(3)(B). Pub. L. 101-508, Sec. 11231(a)(1)(B), (b),
substituted "January 1, 1996" for "January 1, 1992" in heading and
text and "$11,970,000,000" for "$6,650,000,000" in heading and
twice in text.
1989 - Subsec. (c)(2)(A). Pub. L. 101-221 amended subpar. (A)
generally. Prior to amendment, subpar. (A) read as follows: "the
Hazardous Substance Superfund financing rate is -
"(i) except as provided in clause (ii), 8.2 cents a barrel, and
"(ii) 11.7 cents a barrel in the case of the tax imposed by
subsection (a)(2), and".
Subsec. (c)(2)(B). Pub. L. 101-239, Sec. 7505(b), substituted "5
cents" for "1.3 cents".
Subsec. (f). Pub. L. 101-239, Sec. 7505(a)(1), amended subsec.
(f) generally, substituting pars. (1) and (2) for former pars. (1)
general applicability, (2) commencement date, and (3) limit on tax
of $300,000,000.
1988 - Subsec. (f)(2)(B). Pub. L. 100-647 substituted "December
31, 1990" for "September 1, 1987".
1986 - Subsecs. (a), (b)(1). Pub. L. 99-499, Sec. 512(a),
substituted "at the rate specified in subsection (c)" for "of 0.79
cent a barrel".
Subsec. (c). Pub. L. 99-509, Sec. 8032(a), amended subsec. (c)
generally. Prior to amendment, subsec. (c) read as follows:
"(1) In general. - Except as provided in paragraph (2), the rate
of the taxes imposed by this section is 8.2 cents a barrel.
"(2) Imported petroleum products. - The rate of the tax imposed
by subsection (a)(2) shall be 11.7 cents a barrel."
Pub. L. 99-499, Sec. 512(b), added subsec. (c) and redesignated
former subsec. (c) as (d).
Subsec. (d). Pub. L. 99-499, Sec. 512(b), redesignated subsec.
(c) as (d). Former subsec. (d) redesignated (e).
Subsec. (e). Pub. L. 99-509, Sec. 8032(c)(1), substituted
"Hazardous Substance Superfund financing rate" for "taxes" in
heading, substituted "the Hazardous Substance Superfund financing
rate under this section" for "the taxes imposed by this section" in
par. (1), inserted "(to the extent attributable to the Hazardous
Substance Superfund financing rate)" after "this section" in pars.
(2) and (3)(A), and substituted "the Hazardous Substance Superfund
financing rate under this section shall not apply" for "no tax
shall be imposed under this section" in par. (3)(B).
Pub. L. 99-499, Secs. 511(a), 512(b), amended subsec. (d)
generally and redesignated it as (e). Prior to amendment and
redesignation, subsec. (d), termination, read as follows: "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 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)."
Subsec. (f). Pub. L. 99-509, Sec. 8032(c)(2), added subsec. (f).
EFFECTIVE DATE OF 1989 AMENDMENT
Section 8(b) of Pub. L. 101-221 provided that: "The amendment
made by subsection (a) [amending this section] shall take effect on
the date of enactment of this Act [Dec. 12, 1989]."
EFFECTIVE DATE OF 1986 AMENDMENTS
Section 8032(d) of Pub. L. 99-509, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
"(1) In general. - Except as provided in paragraph (2), the
amendments made by this section [amending this section and sections
4612, 4661, 4671, and 9507 of this title] shall take effect on the
commencement date (as defined in section 4611(f)(2) of the Internal
Revenue Code of 1986 [formerly I.R.C. 1954], as added by this
section).
"(2) Coordination with superfund reauthorization. - The
amendments made by this section shall take effect only if the
Superfund Amendments and Reauthorization Act of 1986 [Pub. L.
99-499, approved Oct. 17, 1986] is enacted."
[Section 7505(d)(1) of Pub. L. 101-239 provided that: "For
purposes of sections 8032(d) and 8033(c) of the Omnibus Budget
Reconciliation Act of 1986 [Pub. L. 99-509, set out as notes above
and under section 9509 of this title], the commencement date is
January 1, 1990."]
Section 511(c) of Pub. L. 99-499 provided that: "The amendments
made by this section [amending this section and repealing section
9653 of Title 42, The Public Health and Welfare] shall take effect
on January 1, 1987."
Section 512(d) of Pub. L. 99-499 provided that: "The amendments
made by this section [amending this section and section 4612 of
this title] shall take effect on January 1, 1987."
EFFECTIVE DATE
Section 211(c) of Pub. L. 96-510 provided that: "The amendments
made by this section [enacting subchapters A and B of this chapter]
shall take effect on April 1, 1981."
SHORT TITLE
For short title of title II of Pub. L. 96-510 as the "Hazardous
Substance Response Revenue Act of 1980", see Short Title of 1980
Amendment note, set out under section 1 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 59A, 4612, 4661, 4671,
9507, 9509 of this title.
-End-
-CITE-
26 USC Sec. 4612 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle D - Miscellaneous Excise Taxes
CHAPTER 38 - ENVIRONMENTAL TAXES
Subchapter A - Tax on Petroleum
-HEAD-
Sec. 4612. Definitions and special rules
-STATUTE-
(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
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 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) Credit where crude oil returned to pipeline
Under regulations prescribed by the Secretary, if an operator of
a United States refinery -
(1) removes crude oil from a pipeline, and
(2) returns a portion of such crude oil into a stream of other
crude oil in the same pipeline,
there shall be allowed as a credit against the tax imposed by
section 4611 to such operator an amount equal to the product of the
rate of tax imposed by section 4611 on the crude oil so removed by
such operator and the number of barrels of crude oil returned by
such operator to such pipeline. Any crude oil so returned shall be
treated for purposes of this subchapter as crude oil on which no
tax has been imposed by section 4611.
(d) Credit against portion of tax attributable to oil spill rate
There shall be allowed as a credit against so much of the tax
imposed by section 4611 as is attributable to the Oil Spill
Liability Trust Fund financing rate for any period an amount equal
to the excess of -
(1) the sum of -
(A) the aggregate amounts paid by the taxpayer before January
1, 1987, into the Deepwater Port Liability Trust Fund and the
Offshore Oil Pollution Compensation Fund, and
(B) the interest accrued on such amounts before such date,
over
(2) the amount of such payments taken into account under this
subsection for all prior periods.
The preceding sentence shall also apply to amounts paid by the
taxpayer into the Trans-Alaska Pipeline Liability Fund to the
extent of amounts transferred from such Fund into the Oil Spill
Liability Trust Fund. For purposes of this subsection, all
taxpayers which would be members of the same affiliated group (as
defined in section 1504(a)) if section 1504(a)(2) were applied by
substituting "100 percent" for "80 percent" shall be treated as 1
taxpayer.
(e) Income tax credit for unused payments into Trans-Alaska
Pipeline Liability Fund
(1) In general
For purposes of section 38, the current year business credit
shall include the credit determined under this subsection.
(2) Determination of credit
(A) In general
The credit determined under this subsection for any taxable
year is an amount equal to the aggregate credit which would be
allowed to the taxpayer under subsection (d) for amounts paid
into the Trans-Alaska Pipeline Liability Fund had the Oil Spill
Liability Trust Fund financing rate not ceased to apply.
(B) Limitation
(i) In general
The amount of the credit determined under this subsection
for any taxable year with respect to any taxpayer shall not
exceed the excess of -
(I) the amount determined under clause (ii), over
(II) the aggregate amount of the credit determined under
this subsection for prior taxable years with respect to
such taxpayer.
(ii) Overall limitation
The amount determined under this clause with respect to any
taxpayer is the excess of -
(I) the aggregate amount of credit which would have been
allowed under subsection (d) to the taxpayer for periods
before the termination date specified in section
4611(f)(1), if amounts in the Trans-Alaska Pipeline
Liability Fund which are actually transferred into the Oil
Spill Liability Fund were tranferred (!1) on January 1,
1990, and the Oil Spill Liability Trust Fund financing rate
did not terminate before such termination date, over
(II) the aggregate amount of the credit allowed under
subsection (d) to the taxpayer.
(3) Cost of income tax credit borne by Trust Fund
(A) In general
The Secretary shall from time to time transfer from the Oil
Spill Liability Trust Fund to the general fund of the Treasury
amounts equal to the credits allowed by reason of this
subsection.
(B) Trust Fund balance may not be reduced below $1,000,000,000
Transfers may be made under subparagraph (A) only to the
extent that the unobligated balance of the Oil Spill Liability
Trust Fund exceeds $1,000,000,000. If any transfer is not made
by reason of the preceding sentence, such transfer shall be
made as soon as permitted under such sentence.
(4) No carryback
No portion of the unused business credit for any taxable year
which is attributable to the credit determined under this
subsection may be carried to a taxable year beginning on or
before the date of the enactment of this paragraph.
(f) 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.
-SOURCE-
(Added Pub. L. 96-510, title II, Sec. 211(a), Dec. 11, 1980, 94
Stat. 2798; amended Pub. L. 99-499, title V, Sec. 512(c), Oct. 17,
1986, 100 Stat. 1761; Pub. L. 99-509, title VIII, Sec. 8032(b),
Oct. 21, 1986, 100 Stat. 1957; Pub. L. 101-239, title VII, Sec.
7505(c), Dec. 19, 1989, 103 Stat. 2363; Pub. L. 101-380, title IX,
Sec. 9002, Aug. 18, 1990, 104 Stat. 574; Pub. L. 102-486, title
XIX, Sec. 1922(a), Oct. 24, 1992, 106 Stat. 3028.)
-REFTEXT-
REFERENCES IN TEXT
The date of the enactment of this paragraph, referred to in
subsec. (e)(4), is the date of the enactment of Pub. L. 102-486,
which was approved Oct. 24, 1992.
-COD-
CODIFICATION
Amendments by Pub. L. 99-509, title VIII, Sec. 8031(c), Oct. 21,
1986, 100 Stat. 1955, to subsecs. (c) and (d) of this section were
not executed to text pursuant to Pub. L. 99-509, title VIII, Sec.
8031(e)(2), which provided that the amendments made by section 8031
shall not take effect if the Superfund Amendments and
Reauthorization Act of 1986 is enacted. The Superfund Amendments
and Reauthorization Act of 1986 was enacted as Pub. L. 99-499,
approved Oct. 17, 1986.
-MISC1-
AMENDMENTS
1992 - Subsecs. (e), (f). Pub. L. 102-486 added subsec. (e) and
redesignated former subsec. (e) as (f).
1990 - Subsec. (d). Pub. L. 101-380 substituted at end "For
purposes of this subsection, all taxpayers which would be members
of the same affiliated group (as defined in section 1504(a)) if
section 1504(a)(2) were applied by substituting '100 percent' for
'80 percent' shall be treated as 1 taxpayer." for "Amounts may be
transferred from the Trans-Alaska Pipeline Liability Fund into the
Oil Spill Liability Trust Fund only to the extent the
administrators of the Trans-Alaska Pipeline Liability Fund
determine that such amounts are not needed to satisfy claims
against such Fund."
1989 - Subsec. (d). Pub. L. 101-239 inserted at end "The
preceding sentence shall also apply to amounts paid by the taxpayer
into the Trans-Alaska Pipeline Liability Fund to the extent of
amounts transferred from such Fund into the Oil Spill Liability
Trust Fund. Amounts may be transferred from the Trans-Alaska
Pipeline Liability Fund into the Oil Spill Liability Trust Fund
only to the extent the administrators of the Trans-Alaska Pipeline
Liability Fund determine that such amounts are not needed to
satisfy claims against such Fund."
1986 - Subsec. (c). Pub. L. 99-499 added subsec. (c) and
redesignated former subsec. (c) as (d).
Subsec. (d). Pub. L. 99-509 added subsec. (d) and redesignated
former subsec. (d) as (e).
Pub. L. 99-499 redesignated former subsec. (c) as (d).
Subsec. (e). Pub. L. 99-509 redesignated former subsec. (d) as
(e).
EFFECTIVE DATE OF 1992 AMENDMENT
Section 1922(b) of Pub. L. 102-486 provided that: "The amendments
made by this section [amending this section] shall apply to taxable
years beginning after the date of the enactment of this Act [Oct.
24, 1992]."
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101-380 applicable to incidents occurring
after Aug. 18, 1990, see section 1020 of Pub. L. 101-380, set out
as an Effective Date note under section 2701 of Title 33,
Navigation and Navigable Waters.
EFFECTIVE DATE OF 1986 AMENDMENTS
Amendment by Pub. L. 99-509 effective on commencement date as
defined in section 4611(f)(2), see section 8032(d) of Pub. L.
99-509, set out as a note under section 4611 of this title.
Amendment by Pub. L. 99-499 effective Jan. 1, 1987, see section
512(d) of Pub. L. 99-499, set out as a note under section 4611 of
this title.
-TRANS-
TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS
For termination of Trust Territory of the Pacific Islands, see
note set out preceding section 1681 of Title 48, Territories and
Insular Possessions.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 4132, 4662, 4682 of this
title.
-FOOTNOTE-
(!1) So in original. Probably should be "transferred".
-End-
-CITE-
26 USC Subchapter B - Tax on Certain Chemicals 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle D - Miscellaneous Excise Taxes
CHAPTER 38 - ENVIRONMENTAL TAXES
Subchapter B - Tax on Certain Chemicals
-HEAD-
SUBCHAPTER B - TAX ON CERTAIN CHEMICALS
-MISC1-
Sec.
4661. Imposition of tax.
4662. Definitions and special rules.
-End-
-CITE-
26 USC Sec. 4661 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle D - Miscellaneous Excise Taxes
CHAPTER 38 - ENVIRONMENTAL TAXES
Subchapter B - Tax on Certain Chemicals
-HEAD-
Sec. 4661. Imposition of tax
-STATUTE-
(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:
The tax is the
following
In the case of: 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
For periods before 1992, the item relating to xylene in the
preceding table shall be applied by substituting "10.13" for
"4.87".
(c) Termination
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-
(Added Pub. L. 96-510, title II, Sec. 211(a), Dec. 11, 1980, 94
Stat. 2798; amended Pub. L. 99-499, title V, Sec. 513(a), Oct. 17,
1986, 100 Stat. 1761; Pub. L. 99-509, title VIII, Sec. 8032(c)(3),
Oct. 21, 1986, 100 Stat. 1958.)
-COD-
CODIFICATION
Amendment by Pub. L. 99-509, title VIII, Sec. 8031(d)(2), Oct.
21, 1986, 100 Stat. 1956, to subsec. (c) of this section was not
executed to text pursuant to Pub. L. 99-509, title VIII, Sec.
8031(e)(2), which provided that the amendments made by section 8031
shall not take effect if the Superfund Amendments and
Reauthorization Act of 1986 is enacted. The Superfund Amendments
and Reauthorization Act of 1986 was enacted as Pub. L. 99-499,
approved Oct. 17, 1986.
-MISC1-
AMENDMENTS
1986 - 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'."
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)".
EFFECTIVE DATE OF 1986 AMENDMENTS
Amendment by Pub. L. 99-509 effective on commencement date as
defined in section 4611(f)(2), see section 8032(d) of Pub. L.
99-509, set out as a note under section 4611 of this title.
Section 513(h) of Pub. L. 99-499, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
"(1) In general. - Except as otherwise provided in this
subsection, the amendments made by this section [amending this
section and section 4662 of this title] shall take effect on
January 1, 1987.
"(2) Repeal of tax on xylene for periods before october 1, 1985.
-
"(A) Refund of tax previously imposed. -
"(i) In general. - In the case of any tax imposed by section
4661 of the Internal Revenue Code of 1986 [formerly I.R.C.
1954] on the sale or use of xylene before October 1, 1985, such
tax (including interest, additions to tax, and additional
amounts) shall not be assessed, and if assessed, the assessment
shall be abated, and if collected shall be credited or refunded
(with interest) as an overpayment.
"(ii) Condition to allowance. - Clause (i) shall not apply to
a sale of xylene unless the person who (but for clause (i))
would be liable for the tax imposed by section 4661 on such
sale meets requirements similar to the requirements of
paragraph (1) of section 6416(a) of such Code. For purposes of
the preceding sentence, subparagraph (A) of section 6416(a)(1)
of such Code shall be applied without regard to the material
preceding 'has not collected'.
"(B) Waiver of statute of limitations. - If on the date of the
enactment of this Act [Oct. 17, 1986] (or at any time within 1
year after such date of enactment) refund or credit of any
overpayment of tax resulting from the application of subparagraph
(A) is barred by any law or rule of law, refund or credit of such
overpayment shall, nevertheless, be made or allowed if claim
therefor is filed before the date 1 year after the date of the
enactment of this Act.
"(C) Xylene to include isomers. - For purposes of this
paragraph, the term 'xylene' shall include any isomer of xylene
whether or not separated.
"(3) Inventory exchanges. -
"(A) In general. - Except as otherwise provided in this
paragraph, the amendment made by subsection (f) [amending section
4662 of this title] shall apply as if included in the amendments
made by section 211 of the Hazardous Substance Response Revenue
Act of 1980 [Pub. L. 96-510, enacting this chapter].
"(B) Recipient must agree to treatment as manufacturer. - In
the case of any inventory exchange before January 1, 1987, the
amendment made by subsection (f) shall apply only if the person
receiving the chemical from the manufacturer, producer, or
importer in the exchange agrees to be treated as the
manufacturer, producer, or importer of such chemical for purposes
of subchapter B of chapter 38 of the Internal Revenue Code of
1986.
"(C) Exception where manufacturer paid tax. - In the case of
any inventory exchange before January 1, 1987, the amendment made
by subsection (f) shall not apply if the manufacturer, producer,
or importer treated such exchange as a sale for purposes of
section 4661 of such Code and paid the tax imposed by such
section.
"(D) Registration requirements. - Section 4662(c)(2)(B) of such
Code (as added by subsection (f)) shall apply to exchanges made
after December 31, 1986.
"(4) Exports of taxable substances. - Subclause (II) of section
4662(e)(2)(A)(ii) of such Code (as added by this section) shall not
apply to the export of any taxable substance (as defined in section
4672(a) of such Code) before January 1, 1989.
"(5) Sales of intermediate hydrocarbon streams. -
"(A) In general. - Except as otherwise provided in this
paragraph, the amendment made by subsection (g) [amending section
4662 of this title] shall apply as if included in the amendments
made by section 211 of the Hazardous Substances Response Revenue
Act of 1980.
"(B) Purchaser must agree to treatment as manufacturer. - In
the case of any sale before January 1, 1987, of any intermediate
hydrocarbon stream, the amendment made by subsection (g) shall
apply only if the purchaser agrees to be treated as the
manufacturer, producer, or importer for purposes of subchapter B
of chapter 38 of such Code.
"(C) Exception where manufacturer paid tax. - In the case of
any sale before January 1, 1987, of any intermediate hydrocarbon
stream, the amendment made by subsection (g) shall not apply if
the manufacturer, producer, or importer of such stream paid the
tax imposed by section 4661 with respect to such sale on all
taxable chemicals contained in such stream.
"(D) Registration requirements. - Section 4662(b)(10)(C) of
such Code (as added by subsection (g)) shall apply to exchanges
made after December 31, 1986."
EFFECTIVE DATE
Subchapter effective Apr. 1, 1981, see section 211(c) of Pub. L.
96-510, set out as a note under section 4611 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 4611, 4662, 4671, 9507 of
this title.
-End-
-CITE-
26 USC Sec. 4662 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle D - Miscellaneous Excise Taxes
CHAPTER 38 - ENVIRONMENTAL TAXES
Subchapter B - Tax on Certain Chemicals
-HEAD-
Sec. 4662. Definitions and special rules
-STATUTE-
(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
(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).
(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 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 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).
(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 fertilizer
substance, no tax shall be imposed under section 4661(a).
(B) Qualified fertilizer substance
For purposes of this section, the term "qualified fertilizer
substance" means any substance -
(i) used in a qualified fertilizer use by the manufacturer,
producer, or importer,
(ii) sold for use by any purchaser in a qualified
fertilizer use, or
(iii) sold for resale by any purchaser for use, or resale
for ultimate use, in a qualified fertilizer use.
(C) 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.
(D) 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.
(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.
(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.
(7) 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.
(8) Recycled chromium, cobalt, and nickel
(A) 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).
(B) 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.
(C) Required corrective action
For purposes of subparagraph (B), required corrective action
shall be treated as uncompleted during the period -
(i) beginning on the date that the corrective action is
required by the Administrator or an authorized State pursuant
to -
(I) 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
(II) a final order under section 106 of the Comprehensive
Environmental Response, Compensation, and Liability Act of
1980, and
(ii) 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.
(D) 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.
(E) 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.
(9) Substances used in the production of animal feed
(A) In general
In the case of -
(i) nitric acid,
(ii) sulfuric acid,
(iii) ammonia, or
(iv) methane used to produce ammonia,
which is a qualified animal feed substance, no tax shall be
imposed under section 4661(a).
(B) Qualified animal feed substance
For purposes of this section, the term "qualified animal feed
substance" means any substance -
(i) used in a qualified animal feed use by the
manufacturer, producer, or importer,
(ii) sold for use by any purchaser in a qualified animal
feed use, or
(iii) sold for resale by any purchaser for use, or resale
for ultimate use, in a qualified animal feed use.
(C) 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.
(D) 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.
(10) Hydrocarbon streams containing mixtures of organic taxable
chemicals
(A) 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.
(B) 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 -
(i) such isolation, extraction, removal, or cessation shall
be treated as use by the person causing such event, and
(ii) such person shall be treated as the manufacturer of
such chemical.
(C) 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.
(D) Organic taxable chemical
For purposes of this paragraph, the term "organic taxable
chemical" means any taxable chemical which is an organic
substance.
(c) Use and certain exchanges by manufacturer, etc.
(1) 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.
(2) Special rules for inventory exchanges
(A) 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 -
(i) such exchange shall not be treated as a sale, and
(ii) such other person shall, for purposes of section 4661,
be treated as the manufacturer, producer, or importer of such
chemical.
(B) Registration requirement
Subparagraph (A) shall not apply to any inventory exchange
unless -
(i) both parties are registered with the Secretary as
manufacturers, producers, or importers of taxable chemicals,
and
(ii) 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.
(C) 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).
(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 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).
(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 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.
(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.
(4) Use in the production of animal feed
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 produce
ammonia, without regard to subsection (b)(9), and
(B) 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.
(e) Exemption for exports of taxable chemicals
(1) Tax-free sales
(A) 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.
(B) Proof of export required
Rules similar to the rules of section 4221(b) shall apply for
purposes of subparagraph (A).
(2) Credit or refund where tax paid
(A) In general
Except as provided in subparagraph (B), if -
(i) tax under section 4661 was paid with respect to any
taxable chemical, and
(ii)(I) such chemical was exported by any person, or
(II) 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.
(B) 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 -
(i) 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
(ii) has obtained the written consent of such exporter to
the allowance of the credit or the making of the refund.
(3) 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 -
(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.
(4) Regulations
The Secretary shall prescribe such regulations as may be
necessary to carry out the purposes of this subsection.
(f) 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.
-SOURCE-
(Added Pub. L. 96-510, title II, Sec. 211(a), Dec. 11, 1980, 94
Stat. 2799; amended Pub. L. 98-369, div. A, title X, Sec.
1019(a)-(c), July 18, 1984, 98 Stat. 1022-1024; Pub. L. 99-499,
title V, Sec. 513(b)-(g), Oct. 17, 1986, 100 Stat. 1762-1765; Pub.
L. 100-647, title II, Sec. 2001(a), Nov. 10, 1988, 102 Stat. 3593;
Pub. L. 106-170, title V, Sec. 532(c)(2)(U), Dec. 17, 1999, 113
Stat. 1931.)
-REFTEXT-
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.
-MISC1-
AMENDMENTS
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, Sec. 2001(a)(2),
substituted "one or more" for "a mixture of".
Subsec. (e)(3), (4). Pub. L. 100-647, Sec. 2001(a)(1), added par.
(3) and redesignated former par. (3) as (4).
1986 - Subsec. (b)(7). Pub. L. 99-499, Sec. 513(c), added par.
(7).
Subsec. (b)(8). Pub. L. 99-499, Sec. 513(d), added par. (8).
Subsec. (b)(9). Pub. L. 99-499, Sec. 513(e)(1), added par. (9).
Subsec. (b)(10). Pub. L. 99-499, Sec. 513(g), added par. (10).
Subsec. (c). Pub. L. 99-499, Sec. 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, Sec. 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, Sec. 513(e)(2), added par. (4).
Subsecs. (e), (f). Pub. L. 99-499, Sec. 513(b)(1), added subsec.
(e) and redesignated former subsec. (e) as (f).
1984 - Subsec. (b)(1). Pub. L. 98-369, Sec. 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, Sec. 1019(b)(2)(A),
substituted "qualified fertilizer substance" for "qualified
substance".
Subsec. (b)(2)(B) to (D). Pub. L. 98-369, Sec. 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, Sec. 1019(a)(1), added pars.
(5) and (6).
Subsec. (c). Pub. L. 98-369, Sec. 1019(c), substituted "Except as
provided in subsection (b), if" for "If".
Subsec. (d)(2)(B). Pub. L. 98-369, Sec. 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, Sec. 1019(a)(2), added par. (3).
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 Dec. 17, 1999, 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 Jan. 1, 1987, 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
Section 1019(d) of Pub. L. 98-369 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 [July 18,
1984] 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."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 4671, 4672, 4682 of this
title.
-End-
-CITE-
26 USC Subchapter C - Tax on Certain Imported Substances 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle D - Miscellaneous Excise Taxes
CHAPTER 38 - ENVIRONMENTAL TAXES
Subchapter C - Tax on Certain Imported Substances
-HEAD-
SUBCHAPTER C - TAX ON CERTAIN IMPORTED SUBSTANCES
-MISC1-
Sec.
4671. Imposition of tax.
4672. Definitions and special rules.
PRIOR PROVISIONS
A prior subchapter C related to tax on hazardous wastes,
consisted of sections 4681 and 4682, prior to repeal by Pub. L.
99-499, title V, Sec. 514(a)(1), Oct. 17, 1986, 100 Stat. 1767.
-End-
-CITE-
26 USC Sec. 4671 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle D - Miscellaneous Excise Taxes
CHAPTER 38 - ENVIRONMENTAL TAXES
Subchapter C - Tax on Certain Imported Substances
-HEAD-
Sec. 4671. Imposition of tax
-STATUTE-
(a) General rule
There is hereby imposed a tax on any taxable substance sold or
used by the importer thereof.
(b) Amount of tax
(1) In general
Except as provided in paragraph (2), the amount of the tax
imposed by subsection (a) with respect to any taxable substance
shall be the amount of the tax which would have been imposed by
section 4661 on the taxable chemicals used as materials in the
manufacture or production of such substance if such taxable
chemicals had been sold in the United States for use in the
manufacture or production of such taxable substance.
(2) Rate where importer does not furnish information to Secretary
If the importer does not furnish to the Secretary (at such time
and in such manner as the Secretary shall prescribe) sufficient
information to determine under paragraph (1) the amount of the
tax imposed by subsection (a) on any taxable substance, the
amount of the tax imposed on such taxable substance shall be 5
percent of the appraised value of such substance as of the time
such substance was entered into the United States for
consumption, use, or warehousing.
(3) Authority to prescribe rate in lieu of paragraph (2) rate
The Secretary may prescribe for each taxable substance a tax
which, if prescribed, shall apply in lieu of the tax specified in
paragraph (2) with respect to such substance. The tax prescribed
by the Secretary shall be equal to the amount of tax which would
be imposed by subsection (a) with respect to the taxable
substance if such substance were produced using the predominant
method of production of such substance.
(c) Exemptions for substances taxed under sections 4611 and 4661
No tax shall be imposed by this section on the sale or use of any
substance if tax is imposed on such sale or use under section 4611
or 4661.
(d) Tax-free sales, etc. for substances used as certain fuels or in
the production of fertilizer or animal feed
Rules similar to the following rules shall apply for purposes of
applying this section with respect to taxable substances used or
sold for use as described in such rules:
(1) Paragraphs (2), (5), and (9) of section 4662(b) (relating
to tax-free sales of chemicals used as fuel or in the production
of fertilizer or animal feed).
(2) Paragraphs (2), (3), and (4) of section 4662(d) (relating
to refund or credit of tax on certain chemicals used as fuel or
in the production of fertilizer or animal feed).
(e) Termination
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-
(Added Pub. L. 99-499, title V, Sec. 515(a), Oct. 17, 1986, 100
Stat. 1767; amended Pub. L. 99-509, title VIII, Sec. 8032(c)(3),
Oct. 21, 1986, 100 Stat. 1958.)
-MISC1-
AMENDMENTS
1986 - Subsec. (e). 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)".
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by Pub. L. 99-509 effective on commencement date as
defined in section 4611(f)(2), see section 8032(d) of Pub. L.
99-509, set out as a note under section 4611 of this title.
EFFECTIVE DATE
Section 515(c) of Pub. L. 99-499 provided that: "The amendments
made by this section [enacting this subchapter] shall take effect
on January 1, 1989."
STUDY AND REPORT
Section 515(d) of Pub. L. 99-499 provided that:
"(1) In general. - The Secretary of the Treasury or his delegate
shall conduct a study of issues relating to the implementation of -
"(A) the tax imposed by the section 4671 of the Internal
Revenue Code of 1986 (as added by this section), and
"(B) the credit for exports of taxable substances under section
4661(e)(2)(A)(ii)(II) of such Code.
In conducting such study, the Secretary of the Treasury or his
delegate shall consult with the Environmental Protection Agency and
the International Trade Commission.
"(2) Report. - The report of the study under paragraph (1) shall
be submitted not later than January 1, 1988, to the Committee on
Ways and Means of the House of Representatives and the Committee on
Finance of the Senate."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 4611, 4672, 4681, 9507 of
this title.
-End-
-CITE-
26 USC Sec. 4672 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle D - Miscellaneous Excise Taxes
CHAPTER 38 - ENVIRONMENTAL TAXES
Subchapter C - Tax on Certain Imported Substances
-HEAD-
Sec. 4672. Definitions and special rules
-STATUTE-
(a) Taxable substance
For purposes of this subchapter -
(1) In general
The term "taxable substance" means any substance which, at the
time of sale or use by the importer, is listed as a taxable
substance by the Secretary for purposes of this subchapter.
(2) Determination of substances on list
A substance shall be listed under paragraph (1) if -
(A) the substance is contained in the list under paragraph
(3), or
(B) the Secretary determines, in consultation with the
Administrator of the Environmental Protection Agency and the
Commissioner of Customs, that taxable chemicals constitute more
than 50 percent of the weight (or more than 50 percent of the
value) of the materials used to produce such substance
(determined on the basis of the predominant method of
production).
If an importer or exporter of any substance requests that the
Secretary determine whether such substance be listed as a taxable
substance under paragraph (1) or be removed from such listing,
the Secretary shall make such determination within 180 days after
the date the request was filed.
(3) Initial list of taxable substances
Cumene Methylene chloride
Styrene Polypropylene
Ammonium nitrate Propylene glycol
Nickel oxide Formaldehyde
Isopropyl alcohol Acetone
Ethylene glycol Acrylonitrile
Vinyl chloride Methanol
Polyethylene resins, total Propylene oxide
Polybutadiene Polypropylene resins
Styrene-butadiene, latex Ethylene oxide
Styrene-butadiene, snpf Ethylene dichloride
Synthetic rubber, not containing Cyclohexane
fillers
Urea Isophthalic acid
Ferronickel Maleic anhydride
Ferrochromium nov 3 pct Phthalic anhydride
Ferrochrome ov 3 pct. carbon Ethyl methyl ketone
Unwrought nickel Chloroform
Nickel waste and scrap Carbon tetrachloride
Wrought nickel rods and wire Chromic acid
Nickel powders Hydrogen peroxide
Phenolic resins Polystyrene homopolymer
resins
Polyvinylchloride resins Melamine
Polystyrene resins and copolymers Acrylic and methacrylic
acid resins
Ethyl alcohol for nonbeverage use Vinyl resins
Ethylbenzene Vinyl resins, NSPF.
--------------------------------------------------------------------
(4) Modifications to list
The Secretary shall add to the list under paragraph (3)
substances which meet either the weight or value tests of
paragraph (2)(B) and may remove from such list only substances
which meet neither of such tests.
(b) Other definitions
For purposes of this subchapter -
(1) Importer
The term "importer" means the person entering the taxable
substance for consumption, use, or warehousing.
(2) Taxable chemicals; United States
The terms "taxable chemical" and "United States" have the
respective meanings given such terms by section 4662(a).
(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 4671.
-SOURCE-
(Added Pub. L. 99-499, title V, Sec. 515(a), Oct. 17, 1986, 100
Stat. 1768; amended Pub. L. 100-647, title II, Sec. 2001(b), Nov.
10, 1988, 102 Stat. 3594.)
-MISC1-
AMENDMENTS
1988 - Subsec. (a)(2). Pub. L. 100-647, Sec. 2001(b)(2), inserted
at end "If an importer or exporter of any substance requests that
the Secretary determine whether such substance be listed as a
taxable substance under paragraph (1) or be removed from such
listing, the Secretary shall make such determination within 180
days after the date the request was filed."
Subsec. (a)(2)(B). Pub. L. 100-647, Sec. 2001(b)(1), inserted
"(or more than 50 percent of the value)" after "weight".
Subsec. (a)(4). Pub. L. 100-647, Sec. 2001(b)(3), amended par.
(4) generally. Prior to amendment, par. (4) read as follows:
"(A) In general. - The Secretary may add substances to or remove
substances from the list under paragraph (3) (including items
listed by reason of paragraph (2)) as necessary to carry out the
purposes of this subchapter.
"(B) Authority to add substances to list based on value. - The
Secretary may, to the extent necessary to carry out the purposes of
this subchapter, add any substance to the list under paragraph (3)
if such substance would be described in paragraph (2)(B) if 'value'
were substituted for 'weight' therein."
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
Section effective Jan. 1, 1989, see section 515(c) of Pub. L.
99-499, set out as a note under section 4671 of this title.
-TRANS-
TRANSFER OF FUNCTIONS
For transfer of functions, personnel, assets, and liabilities of
the United States Customs Service of the Department of the
Treasury, including functions of the Secretary of the Treasury
relating thereto, to the Secretary of Homeland Security, and for
treatment of related references, see sections 203(1), 551(d),
552(d), and 557 of Title 6, Domestic Security, and the Department
of Homeland Security Reorganization Plan of November 25, 2002, as
modified, set out as a note under section 542 of Title 6.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 4662 of this title.
-End-
-CITE-
26 USC Subchapter D - Ozone-Depleting Chemicals, Etc. 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle D - Miscellaneous Excise Taxes
CHAPTER 38 - ENVIRONMENTAL TAXES
Subchapter D - Ozone-Depleting Chemicals, Etc.
-HEAD-
SUBCHAPTER D - OZONE-DEPLETING CHEMICALS, ETC.
-MISC1-
Sec.
4681. Imposition of tax.
4682. Definitions and special rules.
-SECREF-
SUBCHAPTER REFERRED TO IN OTHER SECTIONS
This subchapter is referred to in section 6302 of this title.
-End-
-CITE-
26 USC Sec. 4681 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle D - Miscellaneous Excise Taxes
CHAPTER 38 - ENVIRONMENTAL TAXES
Subchapter D - Ozone-Depleting Chemicals, Etc.
-HEAD-
Sec. 4681. Imposition of tax
-STATUTE-
(a) General rule
There is hereby imposed a tax on -
(1) any ozone-depleting chemical sold or used by the
manufacturer, producer, or importer thereof, and
(2) any imported taxable product sold or used by the importer
thereof.
(b) Amount of tax
(1) Ozone-depleting chemicals
(A) In general
The amount of the tax imposed by subsection (a) on each pound
of ozone-depleting chemical shall be an amount equal to -
(i) the base tax amount, multiplied by
(ii) the ozone-depletion factor for such chemical.
(B) Base tax amount
The base tax amount for purposes of subparagraph (A) with
respect to any sale or use during any calendar year after 1995
shall be $5.35 increased by 45 cents for each year after 1995.
(2) Imported taxable product
(A) In general
The amount of the tax imposed by subsection (a) on any
imported taxable product shall be the amount of tax which would
have been imposed by subsection (a) on the ozone-depleting
chemicals used as materials in the manufacture or production of
such product if such ozone-depleting chemicals had been sold in
the United States on the date of the sale of such imported
taxable product.
(B) Certain rules to apply
Rules similar to the rules of paragraphs (2) and (3) of
section 4671(b) shall apply.
-SOURCE-
(Added Pub. L. 101-239, title VII, Sec. 7506(a), Dec. 19, 1989, 103
Stat. 2364; amended Pub. L. 101-508, title XI, Sec. 11203(c), Nov.
5, 1990, 104 Stat. 1388-422; Pub. L. 102-486, title XIX, Sec.
1931(a), Oct. 24, 1992, 106 Stat. 3029; Pub. L. 105-34, title XIV,
Sec. 1432(c)(1), Aug. 5, 1997, 111 Stat. 1050.)
-MISC1-
PRIOR PROVISIONS
A prior section 4681, added Pub. L. 96-510, title II, Sec.
231(a), Dec. 11, 1980, 94 Stat. 2804, was contained in subchapter C
of this chapter prior to repeal by Pub. L. 99-499, title V, Sec.
514(a)(1), (c), Oct. 17, 1986, 100 Stat. 1767, effective Oct. 1,
1983, with provision for waiver of statute of limitations on claims
for overpayment.
AMENDMENTS
1997 - Subsec. (b)(1)(B). Pub. L. 105-34 added subpar. (B) and
struck out heading and text of former subpar. (B). Text read as
follows: "The base tax amount for purposes of subparagraph (A) with
respect to any sale or use during a calendar year before 1996 with
respect to any ozone-depleting chemical is the amount determined
under the following table for such calendar year:
Base tax
"Calendar year: amount:
1993 3.35
1994 4.35
1995 5.35."
Subsec. (b)(1)(C). Pub. L. 105-34 struck out heading and text of
subpar. (C). Text read as follows: "The base tax amount for
purposes of subparagraph (A) with respect to any sale or use of an
ozone-depleting chemical during a calendar year after the last year
specified in the table under subparagraph (B) applicable to such
chemical shall be the base tax amount for such last year increased
by 45 cents for each year after such last year."
1992 - Subsec. (b)(1)(B). Pub. L. 102-486 amended subpar. (B)
generally, substituting present provisions for former provisions
which provided for base tax amounts in cl. (i) of initially listed
chemicals for 1990 to 1994 and in cl. (ii) of newly listed
chemicals for 1991 to 1995.
1990 - Subsec. (b)(1)(B). Pub. L. 101-508 amended subpar. (B)
generally, designating existing provision as cl. (i), inserting
"with respect to any ozone-depleting chemical other than a newly
listed chemical (as defined in section 4682(d)(3)(C))", and adding
cl. (ii).
Subsec. (b)(1)(C). Pub. L. 101-508 amended subpar. (C) generally.
Prior to amendment, subpar. (C) read as follows: "The base tax
amount for purposes of subparagraph (A) with respect to any sale or
use during a calendar year after 1994 shall be the base tax amount
for 1994 increased by 45 cents for each year after 1994."
EFFECTIVE DATE OF 1992 AMENDMENT
Section 1931(d) of Pub. L. 102-486 provided that: "The amendments
made by this section [amending this section and section 4682 of
this title] shall apply to taxable chemicals sold or used on or
after January 1, 1993."
EFFECTIVE DATE OF 1990 AMENDMENT
Section 11203(e) of Pub. L. 101-508 provided that: "The
amendments made by this section [amending this section and section
4682 of this title] shall take effect on January 1, 1991."
EFFECTIVE DATE
Section 7506(c) of Pub. L. 101-239 provided that:
"(1) In general. - The amendments made by this section [enacting
this subchapter] shall take effect on January 1, 1990.
"(2) No deposits required before april 1, 1990. - No deposit of
any tax imposed by subchapter D of chapter 38 of the Internal
Revenue Code of 1986, as added by this section, shall be required
to be made before April 1, 1990.
"(3) Notification of changes in international agreements. - The
Secretary of the Treasury or his delegate shall notify the
Committee on Ways and Means of the House of Representatives and the
Committee on Finance of the Senate of changes in the Montreal
Protocol and of other international agreements to which the United
States is a signatory relating to ozone-depleting chemicals."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 4682 of this title.
-End-
-CITE-
26 USC Sec. 4682 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle D - Miscellaneous Excise Taxes
CHAPTER 38 - ENVIRONMENTAL TAXES
Subchapter D - Ozone-Depleting Chemicals, Etc.
-HEAD-
Sec. 4682. Definitions and special rules
-STATUTE-
(a) Ozone-depleting chemical
For purposes of this subchapter -
(1) In general
The term "ozone-depleting chemical" means any substance -
(A) which, at the time of the sale or use by the
manufacturer, producer, or importer, is listed as an
ozone-depleting chemical in the table contained in paragraph
(2), and
(B) which is manufactured or produced in the United States or
entered into the United States for consumption, use, or
warehousing.
(2) Ozone-depleting chemicals
Common name: Chemical nomenclature:
--------------------------------------------------------------------
CFC-11 trichlorofluoromethane
CFC-12 dichlorodifluoromethane
CFC-113 trichlorotrifluoroethane
CFC-114 1,2-dichloro-1,1,2,2-tetra-
fluoroethane
CFC-115 chloropentafluoroethane
Halon-1211 bromochlorodifluoro- methane
Halon-1301 bromotrifluoromethane
Halon-2402 dibromotetrafluoroethane
Carbon tetrachloride Tetrachloromethane
Methyl chloroform 1,1,1-trichloroethane
CFC-13 CF3Cl
CFC-111 C2FCl5
CFC-112 C2F2Cl4
CFC-211 C3FCl7
CFC-212 C3F2Cl6
CFC-213 C3F3Cl5
CFC-214 C3F4Cl4
CFC-215 C3F5Cl3
CFC-216 C3F6Cl2
CFC-217 C3F7Cl.
--------------------------------------------------------------------
(b) Ozone-depletion factor
For purposes of this subchapter, the term "ozone-depletion
factor" means, with respect to an ozone-depleting chemical, the
factor assigned to such chemical under the following table:
Ozone-depleting chemical: Ozone-depletion
factor:
CFC-11 1.0
CFC-12 1.0
CFC-113 0.8
CFC-114 1.0
CFC-115 0.6
Halon-1211 3.0
Halon-1301 10.0
Halon-2402 6.0
Carbon tetrachloride 1.1
Methyl chloroform 0.1
CFC-13. 1.0
CFC-111 1.0
CFC-112 1.0
CFC-211 1.0
CFC-212 1.0
CFC-213 1.0
CFC-214 1.0
CFC-215 1.0
CFC-216 1.0
CFC-217 1.0.
(c) Imported taxable product
For purposes of this subchapter -
(1) In general
The term "imported taxable product" means any product (other
than an ozone-depleting chemical) entered into the United States
for consumption, use, or warehousing if any ozone-depleting
chemical was used as material in the manufacture or production of
such product.
(2) De minimis exception
The term "imported taxable product" shall not include any
product specified in regulations prescribed by the Secretary as
using a de minimis amount of ozone-depleting chemicals as
materials in the manufacture or production thereof. The preceding
sentence shall not apply to any product in which any
ozone-depleting chemical (other than methyl chloroform) is used
for purposes of refrigeration or air conditioning, creating an
aerosol or foam, or manufacturing electronic components.
(d) Exceptions
(1) Recycling
No tax shall be imposed by section 4681 on any ozone-depleting
chemical which is diverted or recovered in the United States as
part of a recycling process (and not as part of the original
manufacturing or production process), or on any recycled
Halon-1301 or recycled Halon-2402 imported from any country which
is a signatory to the Montreal Protocol on Substances that
Deplete the Ozone Layer.
(2) Use in further manufacture
(A) In general
No tax shall be imposed by section 4681 -
(i) on the use of any ozone-depleting chemical in the
manufacture or production of any other chemical if the
ozone-depleting chemical is entirely consumed in such use,
(ii) on the sale by the manufacturer, producer, or importer
of any ozone-depleting chemical -
(I) for a use by the purchaser which meets the
requirements of clause (i), or
(II) for resale by the purchaser to a second purchaser
for a use by the second purchaser which meets the
requirements of clause (i).
Clause (ii) shall apply only if the manufacturer, producer, and
importer, and the 1st and 2d purchasers (if any), meet such
registration requirements as may be prescribed by the
Secretary.
(B) Credit or refund
Under regulations prescribed by the Secretary, if -
(i) a tax under this subchapter was paid with respect to
any ozone-depleting chemical, and
(ii) such chemical was used (and entirely consumed) by any
person in the manufacture or production of any other
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 section
4681.
(3) Exports
(A) In general
Except as provided in subparagraph (B), rules similar to the
rules of section 4662(e) (other than section
4662(e)(2)(A)(ii)(II)) shall apply for purposes of this
subchapter.
(B) Limit on benefit
(i) In general
The aggregate tax benefit allowable under subparagraph (A)
with respect to ozone-depleting chemicals manufactured,
produced, or imported by any person during a calendar year
shall not exceed the sum of -
(I) the amount equal to the 1986 export percentage of the
aggregate tax which would (but for this subsection and
subsection (g)) be imposed by this subchapter with respect
to the maximum quantity of ozone-depleting chemicals
permitted to be manufactured or produced by such person
during such calendar year under regulations prescribed by
the Environmental Protection Agency (other than chemicals
with respect to which subclause (II) applies),
(II) the aggregate tax which would (but for this
subsection and subsection (g)) be imposed by this
subchapter with respect to any additional production
allowance granted to such person with respect to
ozone-depleting chemicals manufactured or produced by such
person during such calendar year by the Environmental
Protection Agency under 40 CFR Part 82 (as in effect on
September 14, 1989), and
(III) the aggregate tax which was imposed by this
subchapter with respect to ozone-depleting chemicals
imported by such person during the calendar year.
(ii) 1986 export percentage
A person's 1986 export percentage is the percentage equal
to the ozone-depletion factor adjusted pounds of
ozone-depleting chemicals manufactured or produced by such
person during 1986 which were exported during 1986, divided
by the ozone-depletion factor adjusted pounds of all
ozone-depleting chemicals manufactured or produced by such
person during 1986. The percentage determined under the
preceding sentence shall be computed by taking into account
the sum of such person's direct 1986 exports (as determined
by the Environmental Protection Agency) and such person's
indirect 1986 exports (as allocated to such person by such
Agency in determining such person's consumption and
production rights for ozone-depleting chemicals).
(C) Separate application of limit for newly listed chemicals
(i) In general
Subparagraph (B) shall be applied separately with respect
to newly listed chemicals and other chemicals.
(ii) Application to newly listed chemicals
In applying subparagraph (B) to newly listed chemicals -
(I) subparagraph (B) shall be applied by substituting
"1989" for "1986" each place it appears, and
(II) clause (i)(II) thereof shall be applied by
substituting for the regulations referred to therein any
regulations (whether or not prescribed by the Secretary)
which the Secretary determines are comparable to the
regulations referred to in such clause with respect to
newly listed chemicals.
(iii) Newly listed chemical
For purposes of this subparagraph, the term "newly listed
chemical" means any substance which appears in the table
contained in subsection (a)(2) below Halon-2402.
(e) Other definitions
For purposes of this subchapter -
(1) Importer
The term "importer" means the person entering the article for
consumption, use, or warehousing.
(2) United States
The term "United States" has the meaning given such term by
section 4612(a)(4).
(f) Special rules
(1) Fractional parts of a pound
In the case of a fraction of a pound, the tax imposed by this
subchapter shall be the same fraction of the amount of such tax
imposed on a whole pound.
(2) 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 this subchapter.
(g) Chemicals used as propellants in metered-dose inhalers
(1) Exemption from tax
(A) In general
No tax shall be imposed by section 4681 on -
(i) any use of any substance as a propellant in
metered-dose inhalers, or
(ii) any qualified sale by the manufacturer, producer, or
importer of any substance.
(B) Qualified sale
For purposes of subparagraph (A), the term "qualified sale"
means any sale by the manufacturer, producer, or importer of
any substance -
(i) for use by the purchaser as a propellant in metered
dose inhalers, or
(ii) for resale by the purchaser to a 2d purchaser for such
use by the 2d purchaser.
The preceding sentence shall apply only if the manufacturer,
producer, and importer, and the 1st and 2d purchasers (if any)
meet such registration requirements as may be prescribed by the
Secretary.
(2) Overpayments
If any substance on which tax was paid under this subchapter is
used by any person as a propellant in metered-dose inhalers,
credit or refund without interest shall be allowed to such person
in an amount equal to the tax so paid. Amounts payable under the
preceding sentence with respect to uses during the taxable year
shall be treated as described in section 34(a) for such year
unless claim thereof has been timely filed under this paragraph.
(h) Imposition of floor stocks taxes
(1) January 1, 1990, tax
On any ozone-depleting chemical which on January 1, 1990, is
held by any person (other than the manufacturer, producer, or
importer thereof) for sale or for use in further manufacture,
there is hereby imposed a floor stocks tax in an amount equal to
the tax which would be imposed by section 4681 on such chemical
if the sale of such chemical by the manufacturer, producer, or
importer thereof had occurred during 1990.
(2) Other tax-increase dates
(A) In general
If, on any tax-increase date, any ozone-depleting chemical is
held by any person (other than the manufacturer, producer, or
importer thereof) for sale or for use in further manufacture,
there is hereby imposed a floor stocks tax.
(B) Amount of tax
The amount of the tax imposed by subparagraph (A) shall be
the excess (if any) of -
(i) the tax which would be imposed under section 4681 on
such substance if the sale of such chemical by the
manufacturer, producer, or importer thereof had occurred on
the tax-increase date, over
(ii) the prior tax (if any) imposed by this subchapter on
such substance.
(C) Tax-increase date
For purposes of this paragraph, the term "tax-increase date"
means January 1 of any calendar year after 1991.
(3) Due date
The taxes imposed by this subsection on January 1 of any
calendar year shall be paid on or before June 30 of such year.
(4) Application of other laws
All other provisions of law, including penalties, applicable
with respect to the taxes imposed by section 4681 shall apply to
the floor stocks taxes imposed by this subsection.
-SOURCE-
(Added Pub. L. 101-239, title VII, Sec. 7506(a), Dec. 19, 1989, 103
Stat. 2365; amended Pub. L. 101-508, title XI, Secs. 11203(a), (b),
(d), 11701(g), Nov. 5, 1990, 104 Stat. 1388-421, 1388-422,
1388-508; Pub. L. 102-486, title XIX, Secs. 1931(b), (c),
1932(a)-(c), Oct. 24, 1992, 106 Stat. 3029-3031; Pub. L. 104-188,
title I, Sec. 1803(a)(1), (b), Aug. 20, 1996, 110 Stat. 1892, 1893;
Pub. L. 105-34, title IX, Sec. 903(a), title XIV, Sec. 1432(c)(2),
Aug. 5, 1997, 111 Stat. 873, 1051.)
-MISC1-
PRIOR PROVISIONS
A prior section 4682, added Pub. L. 96-510, title II, Sec.
231(a), Dec. 11, 1980, 94 Stat. 2804, was contained in subchapter C
of this chapter, prior to repeal by Pub. L. 99-499, title V, Sec.
514(a)(1), (c), Oct. 17, 1986, 100 Stat. 1767, effective Oct. 1,
1983, with provision for waiver of statute of limitations on claims
for overpayment.
AMENDMENTS
1997 - Subsec. (d)(1). Pub. L. 105-34, Sec. 903(a), substituted
"recycled Halon-1301 or recycled Halon-2402" for "recycled halon".
Subsec. (g). Pub. L. 105-34, Sec. 1432(c)(2), amended subsec. (g)
generally. Prior to amendment, subsec. (g) consisted of pars. (1)
to (5) relating to taxes imposed during 1990 to 1993 on halons,
chemicals used in rigid foam insulation, and methyl chloroform and
taxes imposed on chemicals used as propellants in metered-dose
inhalers.
1996 - Subsec. (d)(1). Pub. L. 104-188, Sec. 1803(a)(1), inserted
before period at end ", or on any recycled halon imported from any
country which is a signatory to the Montreal Protocol on Substances
that Deplete the Ozone Layer".
Subsec. (g)(4). Pub. L. 104-188, Sec. 1803(b), amended par. (4)
generally, substituting provisions relating to chemicals used as
propellants in metered-dose inhalers for provisions relating to
chemicals used for sterilizing medical instruments and as
propellants in metered-dose inhalers, including provisions relating
to rate of tax, overpayments, and applicable period.
1992 - Subsec. (g)(2)(A). Pub. L. 102-486, Sec. 1932(a), in
table, for sales or use during 1993, decreased applicable
percentages from 3.3, 1.0, and 1.6 to 2.49, 0.75, and 1.24 in the
case of Halon-1211, Halon-1301, and Halon-2402, respectively, and
struck out applicable percentages for sales or use during 1991 and
1992.
Subsec. (g)(2)(B). Pub. L. 102-486, Sec. 1931(b), in table
decreased applicable percentage in the case of sales or use in 1993
from 10 to 7.46.
Subsec. (g)(4), (5). Pub. L. 102-486, Sec. 1932(b), (c), added
pars. (4) and (5).
Subsec. (h)(2)(C). Pub. L. 102-486, Sec. 1931(c), substituted
"any calendar year after 1991" for "1991, 1992, 1993, and 1994".
1990 - Subsecs. (a)(2), (b). Pub. L. 101-508, Sec. 11203(a),
inserted items for "Carbon tetrachloride" through "CFC-217" in
tables.
Subsec. (c)(2). Pub. L. 101-508, Sec. 11203(d)(1), inserted
"(other than methyl chloroform)".
Subsec. (d)(3)(B)(i). Pub. L. 101-508, Sec. 11701(g)(1),
substituted ", produced, or imported" for "or produced" in
introductory provisions.
Subsec. (d)(3)(B)(i)(I). Pub. L. 101-508, Sec. 11701(g)(2),
amended subcl. (I) generally. Prior to amendment, subcl. (I) read
as follows: "the amount equal to the 1986 export percentage of the
aggregate tax imposed by this subchapter with respect to
ozone-depleting chemicals manufactured or produced by such person
during such calendar year (other than chemicals with respect to
which subclause (II) applies), and".
Subsec. (d)(3)(B)(i)(II). Pub. L. 101-508, Sec. 11701(g)(3),
substituted "tax which would (but for this subsection and
subsection (g)) be imposed" for "tax imposed".
Subsec. (d)(3)(B)(i)(III). Pub. L. 101-508, Sec. 11701(g)(4),
added subcl. (III).
Subsec. (d)(3)(B)(ii). Pub. L. 101-508, Sec. 11701(g)(5),
substituted last sentence for former last sentence which read as
follows: "The percentage determined under the preceding sentence
shall be based on data published by the Environmental Protection
Agency."
Subsec. (d)(3)(C). Pub. L. 101-508, Sec. 11203(b), added subpar.
(C).
Subsec. (h)(3). Pub. L. 101-508, Sec. 11203(d)(2), substituted
"June 30" for "April 1".
EFFECTIVE DATE OF 1997 AMENDMENT
Section 903(b) of Pub. L. 105-34 provided that: "The amendment
made by subsection (a) [amending this section] shall take effect on
the date of the enactment of this Act [Aug. 5, 1997]."
EFFECTIVE DATE OF 1996 AMENDMENT
Section 1803(c) of Pub. L. 104-188 provided that:
"(1) Recycled halon. -
"(A) In general. - Except as provided in subparagraph (B), the
amendment made by subsection (a)(1) [amending this section] shall
take effect on January 1, 1997.
"(B) Halon-1211. - In the case of Halon-1211, the amendment
made by subsection (a)(1) shall take effect on January 1, 1998.
"(2) Metered-dose inhalers. - The amendment made by subsection
(b) [amending this section] shall take effect on the 7th day after
the date of the enactment of this Act [Aug. 20, 1996]."
EFFECTIVE DATE OF 1992 AMENDMENT
Amendment by section 1931(b), (c) of Pub. L. 102-486 applicable
to taxable chemicals sold or used on or after Jan. 1, 1993, see
section 1931(d) of Pub. L. 102-486, set out as a note under section
4681 of this title.
Section 1932(d) of Pub. L. 102-486 provided that: "The amendments
made by this section [amending this section] shall apply to sales
and uses on or after January 1, 1993."
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by section 11203(a), (b), and (d) of Pub. L. 101-508
effective Jan. 1, 1991, see section 11203(e) of Pub. L. 101-508,
set out as a note under section 4681 of this title.
Amendment by section 11701(g) of Pub. L. 101-508 effective,
except as otherwise provided, as if included in the provision of
the Revenue Reconciliation Act of 1989, Pub. L. 101-239, title VII,
to which such amendment relates, see section 11701(n) of Pub. L.
101-508, set out as a note under section 42 of this title.
CERTIFICATION SYSTEM
Section 1803(a)(2) of Pub. L. 104-188 provided that: "The
Secretary of the Treasury, after consultation with the
Administrator of the Environmental Protection Agency, shall develop
a certification system to ensure compliance with the recycling
requirement for imported halon under section 4682(d)(1) of the
Internal Revenue Code of 1986, as amended by paragraph (1)."
DEPOSITS FOR FIRST QUARTER OF 1991
Section 11203(f) of Pub. L. 101-508 provided that: "No deposit of
any tax imposed by subchapter D of chapter 38 of the Internal
Revenue Code of 1986 on any substance treated as an ozone-depleting
chemical by reason of the amendment made by subsection (a)(1)
[amending this section] shall be required to be made before April
1, 1991."
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