US (United States) Code. Title 26. Subtitle D: Miscellaneous Excise Taxes. Chapter 38: Environmental taxes

Codificación normativa de EEUU (Estados Unidos). Legislación federal estadounidense # Internal revenue code

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-CITE-

26 USC CHAPTER 38 - ENVIRONMENTAL TAXES 01/06/03

-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relating to import taxes, was repealed by Pub.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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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 01/06/03

-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. 01/06/03

-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 01/06/03

-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 01/06/03

-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."

-End-