26 U.S.C. § 4041: Imposition of tax

§ 48.4041-0 Applicability of regulations relating to diesel fuel after December 31, 1993.§ 48.4041-3 Application of tax on sales of special motor fuel for use in motor vehicles and motorboats.§ 48.4041-4 Application of tax on sales of liquid for use as fuel in aircraft in noncommercial aviation.§ 48.4041-5 Sales of diesel and special motor fuels and fuel for use in aircraft; rules of general application.§ 48.4041-6 Application of tax on use of taxable liquid fuel.§ 48.4041-7 Dual use of taxable liquid fuel.§ 48.4041-8 Definitions.§ 48.4041-9 Exemption for farm use.§ 48.4041-10 Exemption for use as supplies for vessels or aircraft.§ 48.4041-11 Tax-free sales of fuel for use in noncommercial aviation only if sellers and certain purchasers are registered.§ 48.4041-12 Sales by United States, etc.§ 48.4041-13 Other credits or refunds.§ 48.4041-14 Exemption for sale to or use by certain aircraft museums.§ 48.4041-15 Sales to States or political subdivisions thereof.§ 48.4041-16 Sales for export.§ 48.4041-17 Tax-free retail sales to certain nonprofit educational organizations.§ 48.4041-19 Exemption for qualified methanol and ethanol fuel.§ 48.4041-20 Partially exempt methanol and ethanol fuel.§ 48.4041-21 Compressed natural gas (CNG).Prop. § 48.4041-21 Proposed 1994 · Compressed natural gas.Prop. § 48.4041-0 Proposed 2008 · [Amended]Prop. § 48.4041-18 Proposed 2008 · [Removed and Reserved]Prop. § 48.4041-19 Proposed 2008 · Reduction in tax for qualified methanol or ethanol fuel and partially exempt methanol or ethanol fuel.Prop. § 48.4041-20 Proposed 2008 · [Removed and Reserved]Prop. § 48.4041-8 Proposed 2016 ·

Amended 1986, 1987

1987 Pub. L. 100-203 Pub. L. 100–203, § 10502(b)(4), struck out subsec. (n) which related to tax on diesel fuel for highway vehicle use being imposed on sale to retailer.
1986 Pub. L. 99-514 Pub. L. 99–514, § 1702(a), added subsec. (n).

Cases: Western Company of North America v. United States, 699 F.2d 264 (5th Cir. 1983); United States v. Pesaturo, 476 F.3d 60 (1st Cir. 2007); Executive Jet Aviation, Inc. v. United States, 125 F.3d 1463 (Fed. Cir. 1997)

Forms: Form 843

Final rules 3

(a) Diesel fuel and special motor fuels

Amended 1956, 1959, 1961, 1983

1983 Pub. L. 97-424 Pub. L. 97–424, §§ 511(a)(2), 516(a)(1)(A), added subsec. (a), and struck out former subsec. (a) which provided for a tax of 4 cents a gallon on diesel fuel.
1961 Pub. L. 87-61 Pub. L. 87–61, § 201(a), increased tax on diesel fuel from 3 to 4 cents a gallon, and substituted “a tax of 2 cents a gallon shall be imposed under paragraph (2)” for “a tax of 1 cent a gallon shall be imposed under paragraph (2)”.
1959 Pub. L. 86-342 Pub. L. 86–342, § 201(b)(2), struck out “in lieu of 3 cents a gallon” after “shall be 2 cents a gallon”.
1956 Act June 29, 1956, § 202(a), increased tax on diesel fuel from 2 cents a gallon to 3 cents a gallon, and inserted provisions which retained tax at 2 cents a gallon for diesel fuel used in vehicles not registered, and not required to be registered, for highway use, or vehicles owned by the United States and not used on the highway.

Cited by 17

(1) Tax on diesel fuel and kerosene in certain cases

Amended 1984, 1987, 1990, 1993, 1996, 1997, 2004

2004 Pub. L. 108-357 Pub. L. 108–357, § 853(a)(6)(B), inserted “and kerosene” after “diesel fuel” in heading.
1997 Pub. L. 105-34 Pub. L. 105–34, § 902(b)(2), struck out heading and text of subpar. (D). Text read as follows: “In the case of any sale for use, or use, of fuel in a diesel-powered motorboat—
“(i) no tax shall be imposed by subsection (a) or (d)(1) during the period beginning on the date which is 7 days after the date of the enactment of the Small Business Job Protection Act of 1996 and ending on December 31, 1997,
“(ii) effective during the period after September 30, 1999, and before January 1, 2000, the rate of tax imposed by this paragraph is 24.3 cents per gallon, and
“(iii) the termination of the tax under subsection (d) shall not occur before January 1, 2000.”
1996 Pub. L. 104-188 Pub. L. 104–188, § 1208, added cl. (i) and redesignated former cls. (i) and (ii) as (ii) and (iii), respectively.
1993 Pub. L. 103-66 Pub. L. 103–66, § 13242(d)(3), amended heading and text of par. (1) generally. Prior to amendment, text read as follows: “There is hereby imposed a tax on any liquid (other than any product taxable under section 4081)—
“(A) sold by any person to an owner, lessee, or other operator of a diesel-powered highway vehicle or diesel-powered boat for use as a fuel in such vehicle or boat, or
“(B) used by any person as a fuel in a diesel-powered highway vehicle or diesel-powered boat unless there was a taxable sale of such liquid under subparagraph (A).
The rate of the tax imposed by this paragraph shall be the sum of the Highway Trust Fund financing rate and the diesel fuel deficit reduction rate in effect under section 4091 at the time of such sale or use. No tax shall be imposed by this paragraph on the sale or use of any liquid if there was a taxable sale of such liquid under section 4091.”
1993 Pub. L. 103-66 Pub. L. 103–66, § 13163(a)(2), substituted “diesel-powered highway vehicle or diesel-powered boat” for “diesel-powered highway vehicle” in subpars. (A) and (B) and “such vehicle or boat” for “such vehicle” in subpar. (A).
1990 Pub. L. 101-508 Pub. L. 101–508, § 11211(b)(6)(C)(i), struck out “of 15 cents a gallon” after “imposed a tax” in introductory provisions and inserted before last sentence “The rate of the tax imposed by this paragraph shall be the sum of the Highway Trust Fund financing rate and the diesel fuel deficit reduction rate in effect under section 4091 at the time of such sale or use.”
1987 Pub. L. 100-203 Pub. L. 100–203, § 10502(b)(1), in heading substituted “Tax on diesel fuel where no tax imposed on fuel under section 4091” for “Diesel fuel” and in text inserted sentence at end that no tax be imposed by this paragraph on the sale or use of any liquid if there was a taxable sale of such liquid under section 4091.
1984 Pub. L. 98-369 Pub. L. 98–369, § 911(a), substituted “15 cents” for “9 cents”.

Cited by 20

(A) In general There is hereby imposed a tax on any liquid other than gasoline (as defined in section 4083)—

Amended 1997

1997 Pub. L. 105-34 Pub. L. 105–34, § 902(b)(1), substituted “or a diesel-powered train” for “, a diesel-powered train, or a diesel-powered boat” in cls. (i) and (ii) and “vehicle or train” for “vehicle, train, or boat” in cl. (i).

Cited by 4

(i) sold by any person to an owner, lessee, or other operator of a diesel-powered highway vehicle or a diesel-powered train for use as a fuel in such vehicle or train, or

Cited by 1

(ii) used by any person as a fuel in a diesel-powered highway vehicle or a diesel-powered train unless there was a taxable sale of such fuel under clause (i).

(B) Exemption for previously taxed fuel No tax shall be imposed by this paragraph on the sale or use of any liquid if tax was imposed on such liquid under section 4081 (other than such tax at the Leaking Underground Storage Tank Trust Fund financing rate) and the tax thereon was not credited or refunded.

Amended 2004, 2005

2005 Pub. L. 109-59 Pub. L. 109–59, § 11161(b)(3)(A), struck out last sentence which read as follows: “This subparagraph shall not apply to aviation-grade kerosene.”
2005 Pub. L. 109-58 Pub. L. 109–58, § 1362(b)(2)(A), inserted “(other than such tax at the Leaking Underground Storage Tank Trust Fund financing rate)” after “section 4081”.
2004 Pub. L. 108-357 Pub. L. 108–357, § 853(a)(6)(A), inserted at end “This subparagraph shall not apply to aviation-grade kerosene.”

Cited by 4

(i) In general Except as otherwise provided in this subparagraph, the rate of the tax imposed by this paragraph shall be the rate of tax specified in section 4081(a)(2)(A) on diesel fuel which is in effect at the time of such sale or use.

(ii) Rate of tax on trains In the case of any sale for use, or use, of diesel fuel in a train, the rate of tax imposed by this paragraph shall be—

Cited by 2

(I) 3.3 cents per gallon after December 31, 2004, and before July 1, 2005,

Amended 2004

2004 Pub. L. 108-357 Pub. L. 108–357, § 241(a)(1), added subcls. (I) to (III) and struck out former subcls. (I) to (III) which read as follows:
2004 “(I) 6.8 cents per gallon after September 30, 1993, and before October 1, 1995,
2004 “(II) 5.55 cents per gallon after September 30, 1995, and before November 1, 1998, and
2004 “(III) 4.3 cents per gallon after October 31, 1998.”

(II) 2.3 cents per gallon after June 30, 2005, and before January 1, 2007, and

Amended 1998, 2004

2004 Pub. L. 108-357 Pub. L. 108–357, § 241(a)(1), added subcls. (I) to (III) and struck out former subcls. (I) to (III) which read as follows:
2004 “(I) 6.8 cents per gallon after September 30, 1993, and before October 1, 1995,
2004 “(II) 5.55 cents per gallon after September 30, 1995, and before November 1, 1998, and
2004 “(III) 4.3 cents per gallon after October 31, 1998.”
1998 Pub. L. 105-178 Pub. L. 105–178, § 9006(a)(1), substituted “November 1, 1998” for “October 1, 1999”.

(III) 0 after December 31, 2006.

Amended 1998, 2004

2004 Pub. L. 108-357 Pub. L. 108–357, § 241(a)(1), added subcls. (I) to (III) and struck out former subcls. (I) to (III) which read as follows:
2004 “(I) 6.8 cents per gallon after September 30, 1993, and before October 1, 1995,
2004 “(II) 5.55 cents per gallon after September 30, 1995, and before November 1, 1998, and
2004 “(III) 4.3 cents per gallon after October 31, 1998.”
1998 Pub. L. 105-178 Pub. L. 105–178, § 9006(a)(2), substituted “October 31, 1998” for “September 30, 1999”.

(iii) Rate of tax on certain buses

(I) In general Except as provided in subclause (II), in the case of fuel sold for use or used in a use described in section 6427(b)(1) (after the application of section 6427(b)(3)), the rate of tax imposed by this paragraph shall be 7.3 cents per gallon (4.3 cents per gallon after September 30, 2028).

Amended 1998, 2005, 2011, 2012, 2015, 2021

2021 Pub. L. 117-58 Pub. L. 117–58, § 80102(a)(1)(A), substituted “September 30, 2028” for “September 30, 2022”.
2015 Pub. L. 114-94 Pub. L. 114–94, § 31102(a)(1)(A), substituted “September 30, 2022” for “September 30, 2016”.
2012 Pub. L. 112-141 Pub. L. 112–141, § 40102(a)(1)(A), substituted “September 30, 2016” for “June 30, 2012”.
2012 Pub. L. 112-140 Pub. L. 112–140, §§ 1(c), 402(a)(1)(A), temporarily substituted “July 6, 2012” for “June 30, 2012”. See Effective and Termination Dates of 2012 Amendment note below.
2012 Pub. L. 112-102 Pub. L. 112–102, § 402(a)(1)(A), substituted “June 30, 2012” for “March 31, 2012”.
2011 Pub. L. 112-30 Pub. L. 112–30, § 142(a)(1)(A), substituted “March 31, 2012” for “September 30, 2011”.
2005 Pub. L. 109-59 Pub. L. 109–59, § 11101(a)(1)(A), substituted “2011” for “2005”.
1998 Pub. L. 105-178 Pub. L. 105–178, § 9002(a)(1)(A), substituted “2005” for “1999”.

(II) School bus and intracity transportation No tax shall be imposed by this paragraph on any sale for use, or use, described in subparagraph (B) or (C) of section 6427(b)(2).

Cited by 2

(2) Alternative fuels

Amended 1990, 1993, 1997, 2005

2005 Pub. L. 109-59 Pub. L. 109–59, § 11113(a)(3), substituted “Alternative fuels” for “Special motor fuels” in heading.
1997 Pub. L. 105-34 Pub. L. 105–34, § 907(a)(1), amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “There is hereby imposed a tax on benzol, benzene, naphtha, liquefied petroleum gas, casing head and natural gasoline, or any other liquid (other than kerosene, gas oil, or fuel oil, or any product taxable under section 4081)—
“(A) sold by any person to an owner, lessee, or other operator of a motor vehicle or motorboat for use as a fuel in such motor vehicle or motorboat, or
“(B) used by any person as a fuel in a motor vehicle or motorboat unless there was a taxable sale of such liquid under subparagraph (A).
The rate of the tax imposed by this paragraph shall be the rate of tax specified in section 4081(a)(2)(A)(i) on gasoline which is in effect at the time of such sale or use.”
1997 Pub. L. 105-34 Pub. L. 105–34, § 1601(f)(4)(B), substituted “section 4081(a)(2)(A)(i)” for “section 4081(a)(2)(A)” in concluding provisions.
1993 Pub. L. 103-66 Pub. L. 103–66, § 13242(d)(4), in introductory provisions, struck out “or paragraph (1) of this subsection” after “section 4081” and, in closing provisions, substituted “The rate of the tax imposed by this paragraph shall be the rate of tax specified in section 4081(a)(2)(A) on gasoline which is in effect at the time of such sale or use.” for “The rate of the tax imposed by this paragraph shall be the sum of the Highway Trust Fund financing rate and the deficit reduction rate in effect under section 4081 at the time of such sale or use.”
1990 Pub. L. 101-508 Pub. L. 101–508, § 11211(b)(3), substituted “imposed a tax” for “imposed a tax of 9 cents a gallon” in introductory provisions and inserted at end “The rate of the tax imposed by this paragraph shall be the sum of the Highway Trust Fund financing rate and the deficit reduction rate in effect under section 4081 at the time of such sale or use.”

Cited by 17

(A) In general There is hereby imposed a tax on any liquid (other than gas oil, fuel oil, or any product taxable under section 4081 (other than such tax at the Leaking Underground Storage Tank Trust Fund financing rate))—

Amended 1997, 2005

2005 Pub. L. 109-58 Pub. L. 109–58, § 1362(b)(2)(A), inserted “(other than such tax at the Leaking Underground Storage Tank Trust Fund financing rate)” after “section 4081” in introductory provisions.
1997 Pub. L. 105-34 Pub. L. 105–34, § 1032(e)(1), struck out “kerosene,” after “(other than” in introductory provisions.

Cited by 3

(i) sold by any person to an owner, lessee, or other operator of a motor vehicle or motorboat for use as a fuel in such motor vehicle or motorboat, or

Cited by 1

(ii) used by any person as a fuel in a motor vehicle or motorboat unless there was a taxable sale of such liquid under clause (i).

(B) Rate of tax The rate of the tax imposed by this paragraph shall be—

Amended 1998, 2005

2005 Pub. L. 109-59 Pub. L. 109–59, § 11113(a)(1)(C), struck out concluding provisions which read as follows: “In the case of any sale or use after September 30, 2011, clause (ii) shall be applied by substituting ‘3.2 cents’ for ‘13.6 cents’, and clause (iii) shall be applied by substituting ‘2.8 cents’ for ‘11.9 cents’.”
2005 Pub. L. 109-59 Pub. L. 109–59, § 11101(a)(1)(B), substituted “2011” for “2005” in concluding provisions.
1998 Pub. L. 105-178 Pub. L. 105–178, § 9002(a)(1)(B), substituted “2005” for “1999” in concluding provisions.

Cited by 3

(i) except as otherwise provided in this subparagraph, the rate of tax specified in section 4081(a)(2)(A)(i) which is in effect at the time of such sale or use,

Amended 2005

2005 Pub. L. 109-59 Pub. L. 109–59, § 11113(a)(1)(A), inserted “and” at end.

(ii) in the case of liquefied petroleum gas, 18.3 cents per energy equivalent of a gallon of gasoline,

Amended 2005, 2015

2015 Pub. L. 114-41 Pub. L. 114–41, § 2008(a)(1), added cl. (ii). Former cl. (ii) redesignated (iii).
2005 Pub. L. 109-59 Pub. L. 109–59, § 11151(e)(2), substituted “section 45K(c)(3)” for “section 29(c)(3)”.
2005 Pub. L. 109-59 Pub. L. 109–59, § 11113(a)(1)(B), (D), added cl. (ii) and struck out former cl. (ii) which read as follows: “13.6 cents per gallon in the case of liquefied petroleum gas, and”.

(iii) in the case of any liquid fuel (other than ethanol and methanol) derived from coal (including peat) and liquid hydrocarbons derived from biomass (as defined in section 45K(c)(3)), 24.3 cents per gallon, and

Amended 2005, 2015

2015 Pub. L. 114-41 Pub. L. 114–41, § 2008(b)(3), struck out “liquefied natural gas,” before “any liquid fuel” and substituted “peat) and” for “peat), and”.
2015 Pub. L. 114-41 Pub. L. 114–41, § 2008(a)(1), redesignated cl. (ii) as (iii).
2005 Pub. L. 109-59 Pub. L. 109–59, § 11113(a)(1)(B), struck out cl. (iii) which read as follows: “11.9 cents per gallon in the case of liquefied natural gas.”

(iv) in the case of liquefied natural gas, 24.3 cents per energy equivalent of a gallon of diesel.

Amended 2015

2015 Pub. L. 114-41 Pub. L. 114–41, § 2008(b)(1), added cl. (iv).

(C) Energy equivalent of a gallon of gasoline For purposes of this paragraph, the term “energy equivalent of a gallon of gasoline” means, with respect to a liquefied petroleum gas fuel, the amount of such fuel having a Btu content of 115,400 (lower heating value). For purposes of the preceding sentence, a Btu content of 115,400 (lower heating value) is equal to 5.75 pounds of liquefied petroleum gas.

Amended 2015

2015 Pub. L. 114-41 Pub. L. 114–41, § 2008(a)(2), added subpar. (C).

Cited by 2

(D) Energy equivalent of a gallon of diesel For purposes of this paragraph, the term “energy equivalent of a gallon of diesel” means, with respect to a liquefied natural gas fuel, the amount of such fuel having a Btu content of 128,700 (lower heating value). For purposes of the preceding sentence, a Btu content of 128,700 (lower heating value) is equal to 6.06 pounds of liquefied natural gas.

Amended 2015

2015 Pub. L. 114-41 Pub. L. 114–41, § 2008(b)(2), added subpar. (D).

Cited by 2

(3) Compressed natural gas

Amended 1987, 1990, 1993

1993 Pub. L. 103-66 Pub. L. 103–66, § 13241(e)(1), added par. (3).
1990 Pub. L. 101-508 Pub. L. 101–508, § 11211(b)(6)(C)(ii), struck out par. (3) which provided that on and after Oct. 1, 1993, the taxes imposed by subsec. (a) shall not apply.
1987 Pub. L. 100-17 Pub. L. 100–17, § 502(a)(1), substituted “1993” for “1988”.

Cited by 3

(A) In general There is hereby imposed a tax on compressed natural gas—

Amended 2005

2005 Pub. L. 109-59 Pub. L. 109–59, § 11113(a)(2)(A), substituted “18.3 cents per energy equivalent of a gallon of gasoline” for “48.54 cents per MCF (determined at standard temperature and pressure)” in concluding provisions.

(i) sold by any person to an owner, lessee, or other operator of a motor vehicle or motorboat for use as a fuel in such motor vehicle or motorboat, or

Cited by 1

(ii) used by any person as a fuel in a motor vehicle or motorboat unless there was a taxable sale of such gas under clause (i).

Cited by 1

The rate of the tax imposed by this paragraph shall be 18.3 cents per energy equivalent of a gallon of gasoline.

(B) Bus uses No tax shall be imposed by this paragraph on any sale for use, or use, described in subparagraph (B) or (C) of section 6427(b)(2) (relating to school bus and intracity transportation).

Cited by 1

(C) Administrative provisions For purposes of applying this title with respect to the taxes imposed by this subsection, references to any liquid subject to tax under this subsection shall be treated as including references to compressed natural gas subject to tax under this paragraph, and references to gallons shall be treated as including references to energy equivalent of a gallon of gasoline with respect to such gas.

Amended 2005

2005 Pub. L. 109-59 Pub. L. 109–59, § 11113(a)(2)(B), substituted “energy equivalent of a gallon of gasoline” for “MCF”.

(D) Energy equivalent of a gallon of gasoline For purposes of this paragraph, the term “energy equivalent of a gallon of gasoline” means 5.66 pounds of compressed natural gas.

Amended 2015

2015 Pub. L. 114-41 Pub. L. 114–41, § 2008(c), added subpar. (D).

(b) Exemption for off-highway business use; reduction in tax for qualified methanol and ethanol fuel

Amended 1956, 1959, 1961, 1965, 1970, 1978, 1983, 1986, 1988

1988 Pub. L. 100-647 Pub. L. 100–647, § 2001(d)(3)(C), struck out par. (3) which coordinated subsec. (b) with taxes imposed by subsec. (d).
1986 Pub. L. 99-514 Pub. L. 99–514, § 422(a)(2), substituted “reduction in tax” for “exemption” in heading.
1986 Pub. L. 99-499 Pub. L. 99–499, § 521(d)(1), added par. (3).
1983 Pub. L. 97-424 Pub. L. 97–424, § 511(b)(1), (c)(2), added subsec. (b), and struck out former subsec. (b) which provided for a tax of 4 cents a gallon on special motor fuels.
1978 Pub. L. 95-618 Pub. L. 95–618, §§ 222(a)(2), 233(a)(3)(B), substituted “, in a qualified business use” for “otherwise than as a fuel in a highway vehicle (A) which (at the time of such sale or use) is registered, or is required to be registered, for highway use under the laws of any State or foreign country, or (B) which, in the case of a highway vehicle owned by the United States, is used on the highway” and “is used otherwise than in a qualified business use” for “is used as a fuel in a highway vehicle (A) which (at the time of such use) is registered, or is required to be registered, for highway use under the laws of any State or foreign country, or (B) which, in the case of a highway vehicle owned by the United States, is used on the highway” and inserted provision that for purposes of this subsection “qualified business use” has the meaning given to such term by section 6421(d)(2).
1970 Pub. L. 91-258 Pub. L. 91–258, § 202(b)(1) and (2), substituted “motor vehicle or motorboat” for “motor vehicle, motorboat, or airplane”, twice in par. (1) and once in par. (2), and “in” for “for the propulsion of” in par. (1) preceding “such motor vehicle”, in par. (2) preceding “a motor vehicle” and in text following par. (2) before “a highway vehicle (A)” in two places, respectively.
1965 Pub. L. 89-44 Pub. L. 89–44 inserted “casinghead and natural gasoline,” after “liquefied petroleum gas,” in text preceding par. (1).
1961 Pub. L. 87-61 Pub. L. 87–61, § 201(a), increased tax on special motor fuels from 3 to 4 cents a gallon, and substituted “a tax of 2 cents a gallon shall be imposed under paragraph (2)” for “a tax of 1 cent a gallon shall be imposed under paragraph (2)”.
1959 Pub. L. 86-342 Pub. L. 86–342, § 201(b)(2), struck out “in lieu of 3 cents a gallon” after “shall be 2 cents a gallon”.
1956 Act June 29, 1956, § 202(b), increased tax on special motor fuels from 2 cents a gallon to 3 cents a gallon, and inserted provisions which retained tax at 2 cents a gallon for special motor fuels sold for use or used otherwise than as a fuel for the propulsion of a highway vehicle which is registered, or is required to be registered, for highway use, or vehicles owned by the United States used on the highway.

Cited by 2

(1) Exemption for off-highway business use

Cited by 1

(A) In general No tax shall be imposed by subsection (a) on liquids sold for use or used in an off-highway business use.

Amended 1988, 2005

2005 Pub. L. 109-58 Pub. L. 109–58, § 1362(b)(2)(B), which directed amendment of subpar. (A) by striking out “or (d)(1))”, was executed by striking out “or (d)(1)” after “subsection (a)” to reflect the probable intent of Congress.
1988 Pub. L. 100-647 Pub. L. 100–647, § 2001(d)(3)(A), inserted reference to subsection (d)(1).

Cited by 1

(B) Tax where other use If a liquid on which no tax was imposed by reason of subparagraph (A) is used otherwise than in an off-highway business use, a tax shall be imposed by paragraph (1)(B), (2)(B), or (3)(A)(ii) of subsection (a) (whichever is appropriate) and by the corresponding provision of subsection (d)(1) (if any).

Amended 1988, 1993

1993 Pub. L. 103-66 Pub. L. 103–66, § 13242(d)(5)(A), substituted “paragraph (1)(B), (2)(B), or (3)(A)(ii)” for “paragraph (1)(B) or (2)(B)” and inserted before period at end “(if any)”.
1988 Pub. L. 100-647 Pub. L. 100–647, § 2001(d)(3)(B), inserted “and by the corresponding provision of subsection (d)(1)” before the period.

(C) Off-highway business use defined For purposes of this subsection, the term “off-highway business use” has the meaning given to such term by section 6421(e)(2); except that such term shall not, for purposes of subsection (a)(1), include use in a diesel-powered train.

Amended 1988, 1993

1993 Pub. L. 103-66 Pub. L. 103–66, § 13242(d)(5)(B), inserted before period at end “; except that such term shall not, for purposes of subsection (a)(1), include use in a diesel-powered train”.
1988 Pub. L. 100-647 Pub. L. 100–647, § 1017(c)(3), substituted “section 6421(e)(2)” for “section 6421(d)(2)”.

(2) Qualified methanol and ethanol fuel

Cited by 6

(A) In general In the case of any qualified methanol or ethanol fuel—

Amended 1986, 1988

1988 Pub. L. 100-647 Pub. L. 100–647, § 2001(d)(3)(D), amended subpar. (A) generally, inserting “(i)” before “subsection (a)(2)” and adding cl. (ii).
1986 Pub. L. 99-514 Pub. L. 99–514, § 422(a)(1), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “No tax shall be imposed by subsection (a) on any qualified methanol or ethanol fuel.”

Cited by 1

(i) the rate applicable under subsection (a)(2) shall be the applicable blender rate per gallon less than the otherwise applicable rate (6 cents per gallon in the case of a mixture none of the alcohol in which consists of ethanol), and

Amended 1990, 1993, 1998

1998 Pub. L. 105-178 Pub. L. 105–178, § 9003(b)(2)(A)(i), substituted “the applicable blender rate” for “5.4 cents”.
1993 Pub. L. 103-66 Pub. L. 103–66, § 13242(d)(5)(C), struck out “Highway Trust Fund financing” before “rate applicable”.
1990 Pub. L. 101-508 Pub. L. 101–508, § 11211(b)(6)(D), amended cl. (i) generally. Prior to amendment, cl. (i) read as follows: “subsection (a)(2) shall be applied by substituting ‘3 cents’ for ‘9 cents’, and”.

Cited by 2

(ii) subsection (d)(1) shall be applied by substituting “0.05 cent” for “0.1 cent” with respect to the sales and uses to which clause (i) applies.

(B) Qualified methanol and ethanol fuel produced from coal The term “qualified methanol or ethanol fuel” means any liquid at least 85 percent of which consists of methanol, ethanol, or other alcohol produced from coal (including peat).

Amended 2004, 2006

2006 Pub. L. 109-432 Pub. L. 109–432, § 208(c), substituted “and ethanol fuel produced from coal” for “or ethanol fuel” in heading.
2004 Pub. L. 108-357 Pub. L. 108–357, § 301(c)(5), substituted “coal (including peat)” for “a substance other than petroleum or natural gas”.

Cited by 1

Amended 1987, 1990, 1998

1998 Pub. L. 105-178 Pub. L. 105–178, § 9003(b)(2)(A)(ii), added subpar. (C). Former subpar. (C) redesignated (D).
1998 Pub. L. 105-178 Pub. L. 105–178, § 9003(a)(1)(A), substituted “2007” for “2000”.
1990 Pub. L. 101-508 Pub. L. 101–508, § 11211(e)(1), substituted “2000” for “1993”.
1987 Pub. L. 100-17 Pub. L. 100–17, § 502(b)(1), substituted “1993” for “1988”.

(i) except as provided in clause (ii), 5.4 cents, and

(ii) for sales or uses during calendar years 2001 through 2008, ⅒ of the blender amount applicable under section 40(h)(2) for the calendar year in which the sale or use occurs.

Amended 2006

2006 Pub. L. 109-432 Pub. L. 109–432, § 208(b), substituted “2008” for “2007”.

Cited by 1

(D) Termination On and after January 1, 2009, subparagraph (A) shall not apply.

Amended 1998, 2006

2006 Pub. L. 109-432 Pub. L. 109–432, § 208(a), substituted “January 1, 2009” for “October 1, 2007”.
1998 Pub. L. 105-178 Pub. L. 105–178, § 9003(b)(2)(A)(ii), redesignated subpar. (C) as (D).

Amended 1955, 1956, 1961, 1970, 1980, 1982, 1987, 1990, 1993, 1996, 2004, 2005

2005 Pub. L. 109-59 Pub. L. 109–59, § 11161(b)(1)(D), substituted “Certain liquids used as a fuel in aviation” for “Aviation-grade kerosene” in heading.
2004 Pub. L. 108-357 Pub. L. 108–357, § 853(d)(2)(A), amended heading and text of subsec. (c) generally, substituting provisions relating to imposition of tax upon aviation-grade kerosene and providing exemption for fuel previously taxed under section 4081, for provisions relating to imposition of tax on nongasoline fuels where no tax had been imposed under section 4091.
1996 Pub. L. 104-188 Pub. L. 104–188, § 1609(g)(3)(A), redesignated par. (4) as (2).
1996 Pub. L. 104-188 Pub. L. 104–188, § 1609(g)(3)(A), redesignated par. (5) as (3).
1996 Pub. L. 104-188 Pub. L. 104–188, § 1609(a)(3), inserted “, and during the period beginning on the date which is 7 calendar days after the date of the enactment of the Small Business Job Protection Act of 1996 and ending on December 31, 1996” after “December 31, 1995”.
1993 Pub. L. 103-66 Pub. L. 103–66, § 13242(d)(8), inserted at end “The termination under the preceding sentence shall not apply to so much of the tax imposed by paragraph (1) as does not exceed 4.3 cents per gallon.”
1990 Pub. L. 101-508 Pub. L. 101–508, § 11213(d)(2)(B), substituted “1995” for “1990”.
1990 Pub. L. 101-508 Pub. L. 101–508, § 11213(e)(3), struck out par. (6) which provided cross reference to section 4283 for reduction of rates of taxes imposed by subsec. (c)(1) and (2) in certain circumstances.
1987 Pub. L. 100-223 Pub. L. 100–223, § 402(b), substituted “1990” for “1987”.
1987 Pub. L. 100-223 Pub. L. 100–223, § 405(b)(3), added par. (6).
1982 Pub. L. 97-248 Pub. L. 97–248, § 279(a), in par. (1) substituted “14 cents” for “7 cents”, in par. (3) substituted “8 cents a gallon (10½ cents a gallon in the case of any gasoline with respect to which a tax is imposed under section 4081 at the rate set forth in subsection (b) thereof)” for “3 cents a gallon”, and in par. (5) substituted provisions that the taxes imposed by pars. (1) and (2) shall apply during the period beginning on Sept. 1, 1982, and ending on Dec. 31, 1987, for provisions that on and after Oct. 1, 1980, the taxes imposed by pars. (1) and (2) would not apply.
1980 Pub. L. 96-298 Pub. L. 96–298 extended termination date to “October 1, 1980” from “July 1, 1980”.
1970 Pub. L. 91-258 Pub. L. 91–258, § 202(a), added subsec. (c). Former subsec. (c) redesignated (e).
1961 Pub. L. 87-61 Pub. L. 87–61, § 201(c), substituted “October 1, 1972” for “July 1, 1972”.
1956 Act June 29, 1956, § 202(c), substituted “July 1, 1972” for “April 1, 1956” and provided for nonapplication of second and third sentences of subsec. (a) and (b).
1956 Act Mar. 29, 1956, substituted “April 1, 1957” for “April 1, 1956”.
1955 Act Mar. 30, 1955, substituted “April 1, 1956” for “April 1, 1955”.

Cited by 15

(1) In general There is hereby imposed a tax upon any liquid for use as a fuel other than aviation gasoline—

Amended 1987, 1990, 1993, 1997, 2005

2005 Pub. L. 109-59 Pub. L. 109–59, § 11161(b)(1)(A), substituted “any liquid for use as a fuel other than aviation gasoline” for “aviation-grade kerosene” in introductory provisions.
1997 Pub. L. 105-34 Pub. L. 105–34, § 1032(e)(2), substituted “kerosene and any other liquid” for “any liquid” in introductory provisions.
1993 Pub. L. 103-66 Pub. L. 103–66, § 13242(d)(6), substituted “The rate of the tax imposed by this paragraph shall be the rate of tax specified in section 4091(b)(1) which is in effect at the time of such sale or use.” for “The rate of the tax imposed by this paragraph shall be the sum of the Airport and Airway Trust Fund financing rate and the aviation fuel deficit reduction rate in effect under section 4091 at the time of such sale or use.” in concluding provisions.
1993 Pub. L. 103-66 Pub. L. 103–66, § 13241(b)(2)(B)(iii), struck out “of 17.5 cents per gallon” before “upon any liquid” in introductory provisions and inserted “The rate of the tax imposed by this paragraph shall be the sum of the Airport and Airway Trust Fund financing rate and the aviation fuel deficit reduction rate in effect under section 4091 at the time of such sale or use.” before last sentence in concluding provisions.
1990 Pub. L. 101-508 Pub. L. 101–508, § 11213(b)(2)(A), substituted “17.5 cents” for “14 cents”.
1987 Pub. L. 100-203 Pub. L. 100–203, § 10502(b)(2), in heading substituted “Tax on nongasoline fuels where no tax imposed on fuel under section 4091” for “In general” and in text inserted sentence at end that no tax be imposed by this paragraph on the sale or use of any liquid if there was a taxable sale of such liquid under section 4091.

(A) sold by any person to an owner, lessee, or other operator of an aircraft for use in such aircraft, or

Cited by 4

(B) used by any person in an aircraft unless there was a taxable sale of such fuel under subparagraph (A).

Cited by 2

(2) Exemption for previously taxed fuel No tax shall be imposed by this subsection on the sale or use of any liquid for use as a fuel other than aviation gasoline if tax was imposed on such liquid under section 4081 (other than such tax at the Leaking Underground Storage Tank Trust Fund financing rate) and the tax thereon was not credited or refunded.

Amended 1993, 1996, 1997, 2005

2005 Pub. L. 109-59 Pub. L. 109–59, § 11161(b)(1)(B), substituted “liquid for use as a fuel other than aviation gasoline” for “aviation-grade kerosene”.
2005 Pub. L. 109-58 Pub. L. 109–58, § 1362(b)(2)(A), inserted “(other than such tax at the Leaking Underground Storage Tank Trust Fund financing rate)” after “section 4081”.
1997 Pub. L. 105-34 Pub. L. 105–34, § 1435(b), inserted “or by reason of section 4261(h)” before period at end.
1996 Pub. L. 104-188 Pub. L. 104–188, § 1609(g)(3)(A), redesignated par. (4) as (2) and struck out former par. (2) which read as follows:
1996 “(2) Gasoline.—There is hereby imposed a tax (at the rate specified in paragraph (3)) upon gasoline (as defined in section 4083)—
“(A) sold by any person to an owner, lessee, or other operator of an aircraft, for use as a fuel in such aircraft in noncommercial aviation; or
“(B) used by any person as a fuel in an aircraft in noncommercial aviation, unless there was a taxable sale of such product under subparagraph (A).
The tax imposed by this paragraph shall be in addition to any tax imposed under section 4081.”
1993 Pub. L. 103-66 Pub. L. 103–66, § 13242(d)(7), substituted “gasoline (as defined in section 4083)” for “any product taxable under section 4081”.

Cited by 4

(3) Rate of tax The rate of tax imposed by this subsection shall be 21.8 cents per gallon (4.3 cents per gallon with respect to any sale or use for commercial aviation).

Amended 1970, 1976, 1978, 1983, 1988, 1990, 1993, 1996, 1997, 2005

2005 Pub. L. 109-59 Pub. L. 109–59, § 11161(b)(1)(C), added par. (3) and struck out former par. (3) which read as follows: “The rate of tax imposed by this subsection shall be the rate of tax applicable under section 4081(a)(2)(A)(iv) which is in effect at the time of such sale or use.”
1997 Pub. L. 105-2 Pub. L. 105–2 amended heading and text of par. (3) generally. Prior to amendment, text read as follows: “The taxes imposed by paragraph (1) shall apply during the period beginning on September 1, 1982, and ending on December 31, 1995, and during the period beginning on the date which is 7 calendar days after the date of the enactment of the Small Business Job Protection Act of 1996 and ending on December 31, 1996. The termination under the preceding sentence shall not apply to so much of the tax imposed by paragraph (1) as does not exceed 4.3 cents per gallon.”
1997 Pub. L. 105-34 Pub. L. 105–34, § 1031(a)(3), substituted “September 30, 2007” for “September 30, 1997”.
1996 Pub. L. 104-188 Pub. L. 104–188, § 1609(g)(3), redesignated par. (5) as (3) and substituted “paragraph (1)” for “paragraphs (1) and (2)”, and struck out former par. (3) which read as follows:
1996 “(3) Rate of tax.—The rate of tax imposed by paragraph (2) on any gasoline is 1 cent per gallon.”
1993 Pub. L. 103-66 Pub. L. 103–66, § 13241(b)(2)(A), amended heading and text of par. (3) generally. Prior to amendment, text read as follows: “The rate of tax imposed by paragraph (2) on any gasoline is the excess of 15 cents a gallon over the sum of the Highway Trust Fund financing rate plus the deficit reduction rate at which tax was imposed on such gasoline under section 4081.”
1990 Pub. L. 101-508 Pub. L. 101–508, § 11211(a)(4), substituted “15 cents” for “12 cents” and “the sum of the Highway Trust Fund financing rate plus the deficit reduction rate” for “the Highway Trust Fund financing rate”.
1988 Pub. L. 100-647 Pub. L. 100–647, § 2001(d)(2), substituted “the Highway Trust Fund financing rate at which” for “the rate at which”.
1983 Pub. L. 97-424 Pub. L. 97–424, § 511(g)(1), substituted provision that the rate of tax imposed by par. (2) on any gasoline is the excess of 12 cents a gallon over the rate at which tax was imposed on such gasoline under section 4081 for provision that the rate of tax imposed by par. (2) was 8 cents a gallon (10½ cents a gallon in the case of any gasoline with respect to which a tax was imposed under section 4081 at the rate set forth in subsec. (b) thereof).
1978 Pub. L. 95-599 Pub. L. 95–599, § 502(b), struck out termination date of Sept. 30, 1979 for 3 cents per gallon rate of tax and struck out provision for a 5½ cents per gallon rate of tax after such date.
1976 Pub. L. 94-280 Pub. L. 94–280, § 303(a)(1), substituted “1979” for “1977” in two places.
1970 Pub. L. 91-605 Pub. L. 91–605, § 303(a)(1), substituted “1977” for “1972” in two places.

(d) Additional taxes to fund Leaking Underground Storage Tank Trust Fund

Amended 1956, 1970, 1986

1986 Pub. L. 99-499 Pub. L. 99–499, § 521(a)(2), added subsec. (d) and redesignated former subsec. (d) as (e).
1970 Pub. L. 91-258 Pub. L. 91–258, § 202(a), added subsec. (d). Former subsec. (d) redesignated (f).
1956 Act Apr. 2, 1956, added subsec. (d).

Cited by 6

(1) Tax on sales and uses subject to tax under subsection (a) In addition to the taxes imposed by subsection (a), there is hereby imposed a tax of 0.1 cent a gallon on the sale or use of any liquid (other than liquefied petroleum gas and other than liquefied natural gas) if tax is imposed by subsection (a)(1) or (2) on such sale or use. No tax shall be imposed under the preceding sentence on the sale or use of any liquid if tax was imposed with respect to such liquid under section 4081 at the Leaking Underground Storage Tank Trust Fund financing rate.

Amended 1987, 1993, 1997, 2007

2007 Pub. L. 110-172 Pub. L. 110–172, § 6(d)(1)(A), inserted last sentence.
1997 Pub. L. 105-34 Pub. L. 105–34, § 907(a)(2), inserted “and other than liquefied natural gas” after “liquefied petroleum gas”.
1993 Pub. L. 103-66 Pub. L. 103–66, § 13241(e)(2), substituted “subsection (a)(1) or (2)” for “subsection (a)” before “on such sale or use”.
1987 Pub. L. 100-203 Pub. L. 100–203, § 10502(b)(3), added par. (1), substituting new heading for “Liquids other than gasoline, etc., used in motor vehicles, motorboats, or trains”, and struck out text of former par. (1) which read as follows: “In addition to the taxes imposed by subsection (a), there is hereby imposed a tax of 0.1 cents a gallon on benzol, benzene, naphtha, casing head and natural gasoline, or any other liquid (other than kerosene, gas oil, liquefied petroleum gas, or fuel oil, or any product taxable under section 4081)—
“(A) sold by any person to an owner, lessee, or other operator of a motor vehicle, motorboat, or train for use as a fuel in such motor vehicle, motorboat, or train, or
“(B) used by any person as a fuel in a motor vehicle, motorboat, or train unless there was a taxable sale of such liquid under subparagraph (A).”

Cited by 2

(2) Liquids used in aviation In addition to the taxes imposed by subsection (c), there is hereby imposed a tax of 0.1 cent a gallon on any liquid (other than gasoline (as defined in section 4083))—

Amended 1987, 1993, 2004

2004 Pub. L. 108-357 Pub. L. 108–357, § 853(d)(2)(B), substituted “section 4081” for “section 4091” in concluding provisions.
1993 Pub. L. 103-66 Pub. L. 103–66, § 13242(d)(9), (10), redesignated par. (3) as (2), substituted “(other than gasoline (as defined in section 4083))” for “(other than any product taxable under section 4081)”, and struck out heading and text of former par. (2). Text read as follows: “There is hereby imposed a tax of 0.1 cent a gallon on any liquid (other than a product taxable under section 4081)—
“(A) sold by any person to an owner, lessee, or other operator of a diesel-powered train for use as a fuel in such train, or
“(B) used by any person as a fuel in a diesel-powered train unless there was a taxable sale of such liquid under subparagraph (A).
No tax shall be imposed by this paragraph on the sale or use of any liquid if there was a taxable sale of such liquid under section 4091.”
1987 Pub. L. 100-203 Pub. L. 100–203, § 10502(b)(3), added par. (2), substituting new heading for “Liquids used in aviation”, and struck out text of former par. (2) which read as follows: “In addition to the taxes imposed by subsection (c) and section 4081, there is hereby imposed a tax of 0.1 cents a gallon on any liquid—
“(A) sold by any person to an owner, lessee, or other operator of an aircraft for use as a fuel in such aircraft, or
“(B) used by any person as a fuel in an aircraft unless there was a taxable sale of such liquid under subparagraph (A).
The tax imposed by this paragraph shall not apply to any product taxable under section 4081 which is used as a fuel in an aircraft other than in noncommercial aviation.”

Cited by 1

(A) sold by any person to an owner, lessee, or other operator of an aircraft for use as a fuel in such aircraft, or

Cited by 1

(B) used by any person as a fuel in an aircraft unless there was a taxable sale of such liquid under subparagraph (A).

No tax shall be imposed by this paragraph on the sale or use of any liquid if there was a taxable sale of such liquid under section 4081.

(3) Diesel fuel used in trains In the case of any sale for use or use after December 31, 2006, there is hereby imposed a tax of 0.1 cent per gallon on any liquid other than gasoline (as defined in section 4083)—

Amended 1987, 1993, 2004

2004 Pub. L. 108-357 Pub. L. 108–357, § 241(a)(2)(A), added par. (3) and redesignated former par. (3) as (4).
1993 Pub. L. 103-66 Pub. L. 103–66, § 13242(d)(9), redesignated pars. (3) and (4) as (2) and (3), respectively.
1987 Pub. L. 100-203 Pub. L. 100–203, § 10502(b)(3), added par. (3) and redesignated former par. (3) as (4).

Cited by 1

(A) sold by any person to an owner, lessee, or other operator of a diesel-powered train for use as a fuel in such train, or

Cited by 1

(B) used by any person as a fuel in a diesel-powered train unless there was a taxable sale of such fuel under subparagraph (A).

No tax shall be imposed by this paragraph on the sale or use of any liquid if tax was imposed on such liquid under section 4081.

(4) Termination The taxes imposed by this subsection shall not apply during any period during which the Leaking Underground Storage Tank Trust Fund financing rate under section 4081 does not apply.

Amended 1987, 1993, 2004

2004 Pub. L. 108-357 Pub. L. 108–357, § 241(a)(2)(A), added par. (3) and redesignated former par. (3) as (4).
1993 Pub. L. 103-66 Pub. L. 103–66, § 13242(d)(9), redesignated pars. (3) and (4) as (2) and (3), respectively.
1987 Pub. L. 100-203 Pub. L. 100–203, § 10502(b)(3), added par. (3) and redesignated former par. (3) as (4).

(5) Nonapplication of exemptions other than for exports For purposes of this section, the tax imposed under this subsection shall be determined without regard to subsections (b)(1)(A), (f), (g), (h), and (l). The preceding sentence shall not apply with respect to subsection (g)(3) and so much of subsection (g)(1) as relates to vessels (within the meaning of section 4221(d)(3)) employed in foreign trade or trade between the United States and any of its possessions.

Amended 2005, 2007

2007 Pub. L. 110-172 Pub. L. 110–172, § 6(d)(2)(A), (3), inserted “(b)(1)(A),” after “without regard to subsections”, struck out “(other than with respect to any sale for export under paragraph (3) thereof)” after “(f), (g)”, and inserted last sentence.
2005 Pub. L. 109-58 Pub. L. 109–58, § 1362(b)(2)(C), added par. (5).

Cited by 1

[(e) Repealed. Pub. L. 108–357, title VIII, § 853(d)(2)(C), Oct. 22, 2004, 118 Stat. 1613]

Amended 1958, 1970, 1976, 1978, 1983, 1986, 2004

2004 Pub. L. 108-357 Pub. L. 108–357, § 853(d)(2)(C), struck out heading and text of subsec. (e). Text read as follows: “If a liquid on which tax was imposed on the sale thereof is taxable at a higher rate under subsection (c)(1) of this section on the use thereof, there is hereby imposed a tax equal to the difference between the tax so imposed and the tax payable at such higher rate.”
1986 Pub. L. 99-499 Pub. L. 99–499, § 521(a)(2), added subsec. (d) and redesignated former subsec. (d) as (e).
1983 Pub. L. 97-424 Pub. L. 97–424, § 516(a)(1)(B), struck out subsec. (e) which provided that the taxes imposed by subsecs. (a) and (b) would be 1½ cents a gallon and that second and third sentences of subsecs. (a) and (b) would not apply on and after Oct. 1, 1984.
1978 Pub. L. 95-599 Pub. L. 95–599, § 502(a)(1), substituted “1984” for “1979”.
1976 Pub. L. 94-280 Pub. L. 94–280, § 303(a)(2), substituted “1979” for “1977”.
1970 Pub. L. 91-605 Pub. L. 91–605, § 303(a)(2), substituted “1977” for “1972”.
1970 Pub. L. 91-258 Pub. L. 91–258, § 202(a), redesignated former subsec. (c) as (e), substituting in par. (1) “subsections (a) and (b)” and “,” for “this section” and “;”. Former subsec. (e) redesignated (g).
1958 Pub. L. 85-859 Pub. L. 85–859 added subsec. (e).

(f) Exemption for farm use

Amended 1959, 1961, 1970, 1983, 1986, 1987, 1988, 1990, 1991, 1993

1993 Pub. L. 103-66 Pub. L. 103–66, § 13241(f)(1), struck out heading and text of par. (3). Text read as follows: “Except with respect to the taxes imposed by subsection (d), paragraph (1) shall not apply on and after October 1, 1999.”
1991 Pub. L. 102-240 Pub. L. 102–240 substituted “1999” for “1995”.
1990 Pub. L. 101-508 Pub. L. 101–508, § 11211(d)(1), (2), substituted “1995” for “1993”.
1988 Pub. L. 100-647 Pub. L. 100–647, § 1017(c)(4), amended par. (3) generally, substituting “paragraph (1) shall not apply on and after October 1, 1993” for “on and after October 1, 1993, paragraph (1) shall not apply”.
1987 Pub. L. 100-17 Pub. L. 100–17, § 502(b)(2), (3), substituted “1993” for “1988”.
1986 Pub. L. 99-499 Pub. L. 99–499, § 521(d)(2), substituted “Except with respect to the taxes imposed by subsection (d), on and after” for “On and after”.
1983 Pub. L. 97-424 Pub. L. 97–424, § 516(b)(1)(A), added par. (3).
1970 Pub. L. 91-258 Pub. L. 91–258, § 202(a), redesignated former subsec. (d) as (f), substituting in par. (1) prohibition against imposition of tax “under this section on any liquid sold for use or used on a farm for farming purposes” for prior provisions that “(A) no tax shall be imposed under subsection (a)(1) or (b)(1) on the sale of any liquid sold for use on a farm for farming purposes, and (B) no tax shall be imposed under subsection (a)(2) or (b)(2) on the use of any liquid used on a farm for farming purposes”.
1961 Pub. L. 87-61 Pub. L. 87–61, § 201(d), repealed subsec. (f) which authorized a temporary increase in taxes under subsecs. (a) and (b).
1959 Pub. L. 86-342 Pub. L. 86–342, § 201(b)(1), added subsec. (f).

Cited by 2

(1) Exemption Under regulations prescribed by the Secretary, no tax shall be imposed under this section on any liquid sold for use or used on a farm for farming purposes.

Amended 1976

1976 Pub. L. 94-455 Pub. L. 94–455, § 1906(b)(13(A), struck out “or his delegate” after “Secretary”.

Cited by 1

(2) Use on a farm for farming purposes For purposes of paragraph (1) of this subsection, use on a farm for farming purposes shall be determined in accordance with paragraphs (1), (2), and (3) of section 6420(c).

(g) Other exemptions Under regulations prescribed by the Secretary, no tax shall be imposed under this section—

Amended 1970, 1976, 1983, 1986, 1987, 1990, 1991, 1993

1993 Pub. L. 103-66 Pub. L. 103–66, § 13241(f)(2), struck out at end “Except with respect to the taxes imposed by subsection (d), paragraphs (2) and (4) shall not apply on and after October 1, 1999.”
1991 Pub. L. 102-240 Pub. L. 102–240 substituted “1999” for “1995”.
1990 Pub. L. 101-508 Pub. L. 101–508, § 11211(d)(1), (2), substituted “1995” for “1993”.
1987 Pub. L. 100-17 Pub. L. 100–17, § 502(b)(2), (3), substituted “1993” for “1988”.
1986 Pub. L. 99-499 Pub. L. 99–499, § 521(d)(3), substituted “Except with respect to the taxes imposed by subsection (d), paragraphs” for “Paragraphs” in last sentence.
1983 Pub. L. 97-424 Pub. L. 97–424, § 516(b)(1)(B), inserted provision that pars. (2) and (4) shall not apply on and after Oct. 1, 1988.
1976 Pub. L. 94-455 Pub. L. 94–455, §§ 1904(a)(1)(B), 1906(b)(13)(A), designated existing provisions as par. (1), substituted “Other exemptions” for “Exemptions for use as supplies for vessels” after “(g)”, struck out “or his delegate” after “Secretary”, and added pars. (2) to (4) and definition of “nonprofit educational organization”.
1970 Pub. L. 91-258 Pub. L. 91–258, § 202(a), redesignated former subsec. (e) as (g), substituting “this section on any liquid sold” for “subsection (b) in the case of any fuel sold”.

Cited by 1

(1) on any liquid sold for use or used as supplies for vessels or aircraft (within the meaning of section 4221(d)(3));

Cited by 1

(2) with respect to the sale of any liquid for the exclusive use of any State, any political subdivision of a State, or the District of Columbia, or with respect to the use by any of the foregoing of any liquid as a fuel;

Cited by 1

(3) upon the sale of any liquid for export, or for shipment to a possession of the United States, and in due course so exported or shipped;

Cited by 1

(4) with respect to the sale of any liquid to a nonprofit educational organization for its exclusive use, or with respect to the use by a nonprofit educational organization of any liquid as a fuel; and

Cited by 2

(5) with respect to the sale of any liquid to a qualified blood collector organization (as defined in section 7701(a)(49)) for such organization’s exclusive use in the collection, storage, or transportation of blood.

Amended 2006

2006 Pub. L. 109-280 Pub. L. 109–280, which directed the addition of par. (5) to section 4041(g), without specifying the act to be amended, was executed to subsec. (g) of this section, which is section 4041 of the Internal Revenue Code of 1986, to reflect the probable intent of Congress.

For purposes of paragraph (4), the term “nonprofit educational organization” means an educational organization described in section 170(b)(1)(A)(ii) which is exempt from income tax under section 501(a). The term also includes a school operated as an activity of an organization described in section 501(c)(3) which is exempt from income tax under section 501(a), if such school normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on.

(h) Exemption for use by certain aircraft museums

Amended 1970, 1976

1976 Pub. L. 94-530 Pub. L. 94–530 added subsec. (h). Former subsec. (h) redesignated “(i) Registration”.
1976 Pub. L. 94-455 Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
1970 Pub. L. 91-258 Pub. L. 91–258, § 202(a), added subsec. (h).

Cited by 1

(1) Exemption Under regulations prescribed by the Secretary, no tax shall be imposed under this section on any liquid sold for use or used by an aircraft museum in an aircraft or vehicle owned by such museum and used exclusively for purposes set forth in paragraph (2)(C).

(2) Definition of aircraft museum For purposes of this subsection, the term “aircraft museum” means an organization—

“an organization—” Opening words

Textual readingALL OF= an aircraft museum

(A) described in section 501(c)(3) which is exempt from income tax under section 501(a),

(B) operated as a museum under charter by a State or the District of Columbia, and

(C) operated exclusively for the procurement, care, and exhibition of aircraft of the type used for combat or transport in World War II.

Cited by 2

Amended 1978

1978 Pub. L. 95-600 Pub. L. 95–600, § 703(l)(1), substituted “term ‘aircraft museum’ means” for “term ‘aircraft’ means”.

Cited by 2

[(i) Repealed. Pub. L. 108–357, title VIII, § 853(d)(2)(D), Oct. 22, 2004, 118 Stat. 1613]

Amended 1976, 1978, 2004

2004 Pub. L. 108-357 Pub. L. 108–357, § 853(d)(2)(D), struck out heading and text of subsec. (i). Text read as follows: “If any liquid is sold by any person for use as a fuel in an aircraft, it shall be presumed for purposes of this section that a tax imposed by this section applies to the sale of such liquid unless the purchaser is registered in such manner (and furnished such information in respect of the use of the liquid) as the Secretary shall by regulations provide.”
1978 Pub. L. 95-600 Pub. L. 95–600, § 703(l)(2), redesignated subsec. (i), relating to sales by United States, or by any agency or instrumentality of United States, as (j).
1976 Pub. L. 94-455 Pub. L. 94–455, § 1904(a)(1)(C), added subsec. (i) relating to sales by United States.
1976 Pub. L. 94-530 Pub. L. 94–530 redesignated former subsec. (h) as “(i) Registration”.

Cited by 2

(j) Sales by United States, etc. The taxes imposed by this section shall apply with respect to liquids sold at retail by the United States, or by any agency or instrumentality of the United States, unless sales by such agency or instrumentality are by statute specifically exempted from such taxes.

Amended 1978

1978 Pub. L. 95-600 Pub. L. 95–600, § 703(l)(2), redesignated subsec. (i), relating to sales by United States, or by any agency or instrumentality of United States, as (j).

[(k) Repealed. Pub. L. 108–357, title III, § 301(c)(6), Oct. 22, 2004, 118 Stat. 1461]

Amended 1978, 1980, 1983, 1984, 1987, 1990, 1993, 1996, 1998, 2004

2004 Pub. L. 108-357 Pub. L. 108–357, § 301(c)(6), struck out subsec. (k) which related to rates of tax in the case of the sale or use of any fuels containing alcohol.
1998 Pub. L. 105-178 Pub. L. 105–178, § 9003(a)(1)(B), substituted “2007” for “2000”.
1996 Pub. L. 104-188 Pub. L. 104–188, § 1609(g)(4)(A), inserted “and” at end of subpar. (A), substituted period for “, and” at end of subpar. (B), and struck out subpar. (C) which read as follows: “no tax shall be imposed by subsection (c)(2).”
1993 Pub. L. 103-66 Pub. L. 103–66, § 13242(d)(11), struck out “Highway Trust Fund financing” before “rates under paragraphs” and substituted “section 4081(c)” for “sections 4081(c) and 4091(c), as the case may be”.
1993 Pub. L. 103-66 Pub. L. 103–66, § 13242(d)(12), substituted “4091(c)” for “4091(d)”.
1990 Pub. L. 101-508 Pub. L. 101–508, § 11211(b)(6)(E)(i), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “subsection (a)(1) shall be applied by substituting ‘9 cents’ for ‘15 cents’, and”.
1990 Pub. L. 101-508 Pub. L. 101–508, § 11213(b)(2)(B)(i), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “no tax shall be imposed by subsection (c)(1), and”.
1990 Pub. L. 101-508 Pub. L. 101–508, § 11211(b)(6)(E)(i), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “subsection (a)(2) shall be applied by substituting ‘3 cents’ for ‘9 cents’, and”.
1990 Pub. L. 101-508 Pub. L. 101–508, § 11211(b)(6)(E)(i), amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: “no tax shall be imposed by subsection (c).”
1990 Pub. L. 101-508 Pub. L. 101–508, § 11211(e)(2), substituted “2000” for “1993”.
1987 Pub. L. 100-17 Pub. L. 100–17, § 502(c)(1), substituted “September 30, 1993” for “December 31, 1992”.
1984 Pub. L. 98-369 Pub. L. 98–369, § 912(a), in amending par. (1) generally, substituted “liquid” for “liquid fuel” in provisions preceding subpar. (A), in subpar. (A), substituted “subsection (a)(1) shall be applied by substituting ‘9 cents’ for ‘15 cents’, and” for “subsection (a) shall be applied by substituting ‘4 cents’ for ‘9 cents’ each place it appears, and”, added subpar. (B), and redesignated former subpar. (B) as (C).
1983 Pub. L. 97-424 Pub. L. 97–424, § 511(d)(2), in par. (1) substituted provisions for a 4-cent tax on the sale or use of any liquid fuel at least 10 percent of which consists of alcohol for provisions that no tax be imposed by this section on the sale or use of such fuel, and in par. (2) substituted “to which paragraph (1) applied” for “on which tax was not imposed by reason of this subsection” after “alcohol” and inserted provision that any tax imposed on such sale shall be reduced by the amount (if any) of the tax imposed on the sale of such mixture.
1980 Pub. L. 96-223 Pub. L. 96–223 added par. (3).
1978 Pub. L. 95-618 Pub. L. 95–618, § 221(b)(1), added subsec. (k).

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(l) Exemption for certain uses No tax shall be imposed under this section on any liquid sold for use in, or used in, a helicopter or a fixed-wing aircraft for purposes of providing transportation with respect to which the requirements of subsection (f) or (g) of section 4261 are met.

Amended 1982, 1984, 1986, 1987, 1997, 1998

1998 Pub. L. 105-206 Pub. L. 105–206 substituted “subsection (f) or (g)” for “subsection (e) or (f)”.
1997 Pub. L. 105-34 Pub. L. 105–34, § 1601(f)(4)(A), struck out “helicopter” after “certain” in heading and inserted “or a fixed-wing aircraft” after “helicopter” in text.
1987 Pub. L. 100-223 Pub. L. 100–223, § 404(b), amended subsec. (l) generally. Prior to amendment, subsec. (l) read as follows: “No tax shall be imposed under this section on any liquid sold for use in, or used in, a helicopter for the purpose of—
“(1) transporting individuals, equipment, or supplies in the exploration for, or the development or removal of, hard minerals, oil, or gas, or
“(2) the planting, cultivation, cutting or transportation of, or caring for, trees (including logging operation),
but only if the helicopter does not take off from, or land at, a facility eligible for assistance under the Airport and Airway Development Act of 1970, or otherwise use services provided pursuant to the Airport and Airway Improvement Act of 1982 during such use.”
1986 Pub. L. 99-514 Pub. L. 99–514, § 1879(c)(1), amended par. (1) generally. Prior to amendment, par. (1) read as follows:
1986 “transporting individuals, equipment, or supplies in—
“(A) the exploration for, or the development or removal of, hard minerals, or
“(B) the exploration for oil or gas, or”.
1984 Pub. L. 98-369 Pub. L. 98–369, § 1018(a), designated existing provisions as subpar. (A) and added subpar. (B).
1982 Pub. L. 97-248 Pub. L. 97–248, § 279(b)(1), added subsec. (l).

(m) Certain alcohol fuels

Amended 1984

1984 Pub. L. 98-369 Pub. L. 98–369, § 913(a), added subsec. (m).

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(1) In general In the case of the sale or use of any partially exempt methanol or ethanol fuel the rate of the tax imposed by subsection (a)(2) shall be—

Amended 2004

2004 Pub. L. 108-357 Pub. L. 108–357, § 853(d)(2)(E), reenacted heading without change and amended text of par. (1) generally, substituting provisions relating to rates of tax after Sept. 30, 1997, and before Oct. 1, 2005, and rates of tax after Sept. 30, 2005, for provisions relating to rates of tax after Sept. 30, 1997, and before Oct. 1, 2005, rates of tax after Sept. 30, 2005, and rate of tax imposed by subsec. (c)(1).

(A) after September 30, 1997, and before October 1, 2028—

Amended 1990, 1993, 1997, 1998, 2005, 2011, 2012, 2015, 2021

2021 Pub. L. 117-58 Pub. L. 117–58, § 80102(a)(2)(A), substituted “October 1, 2028” for “October 1, 2022” in introductory provisions.
2015 Pub. L. 114-94 Pub. L. 114–94, § 31102(a)(2)(A), substituted “October 1, 2022” for “October 1, 2016” in introductory provisions.
2012 Pub. L. 112-141 Pub. L. 112–141, § 40102(a)(2)(A), substituted “October 1, 2016” for “July 1, 2012” in introductory provisions.
2012 Pub. L. 112-140 Pub. L. 112–140, §§ 1(c), 402(a)(2)(A), temporarily substituted “July 7, 2012” for “July 1, 2012” in introductory provisions. See Effective and Termination Dates of 2012 Amendment note below.
2012 Pub. L. 112-102 Pub. L. 112–102, § 402(a)(2)(A), substituted “July 1, 2012” for “April 1, 2012” in introductory provisions.
2011 Pub. L. 112-30 Pub. L. 112–30, § 142(a)(2)(A), substituted “April 1, 2012” for “October 1, 2011” in introductory provisions.
2005 Pub. L. 109-59 Pub. L. 109–59, § 11101(a)(1)(C), substituted “2011” for “2005” in introductory provisions.
1998 Pub. L. 105-178 Pub. L. 105–178, § 9002(a)(1)(C), substituted “2005” for “1999” in two places.
1997 Pub. L. 105-34 Pub. L. 105–34, § 907(b), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “the rate of the tax imposed by subsection (a)(2) shall be—
“(i) 11.3 cents per gallon after September 30, 1993, and before October 1, 1999, and
“(ii) 4.3 cents per gallon after September 30, 1999, and”.
1993 Pub. L. 103-66 Pub. L. 103–66, § 13242(d)(13), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “under subsection (a)(2)—
“(i) the Highway Trust Fund financing rate shall be 5.75 cents per gallon, and
“(ii) the deficit reduction rate shall be 5.55 cents per gallon.”
1993 Pub. L. 103-66 Pub. L. 103–66, § 13241(c), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “under subsection (a)(2) the Highway Trust Fund financing rate shall be 5.75 cents per gallon and the deficit reduction rate shall be 1.25 cents per gallon, and”.
1990 Pub. L. 101-508 Pub. L. 101–508, § 11211(b)(6)(F), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “subsection (a)(2) shall be applied by substituting ‘4½ cents’ for ‘9 cents’, and”.

(i) in the case of fuel none of the alcohol in which consists of ethanol, 9.15 cents per gallon, and

(ii) in any other case, 11.3 cents per gallon, and

(B) after September 30, 2028—

Amended 1990, 1993, 2005, 2011, 2012, 2015, 2021

2021 Pub. L. 117-58 Pub. L. 117–58, § 80102(a)(1)(B), substituted “September 30, 2028” for “September 30, 2022” in introductory provisions.
2015 Pub. L. 114-94 Pub. L. 114–94, § 31102(a)(1)(B), substituted “September 30, 2022” for “September 30, 2016” in introductory provisions.
2012 Pub. L. 112-141 Pub. L. 112–141, § 40102(a)(1)(B), substituted “September 30, 2016” for “June 30, 2012” in introductory provisions.
2012 Pub. L. 112-140 Pub. L. 112–140, §§ 1(c), 402(a)(1)(B), temporarily substituted “July 6, 2012” for “June 30, 2012” in introductory provisions. See Effective and Termination Dates of 2012 Amendment note below.
2012 Pub. L. 112-102 Pub. L. 112–102, § 402(a)(1)(B), substituted “June 30, 2012” for “March 31, 2012” in introductory provisions.
2011 Pub. L. 112-30 Pub. L. 112–30, § 142(a)(1)(B), substituted “March 31, 2012” for “September 30, 2011” in introductory provisions.
2005 Pub. L. 109-59 Pub. L. 109–59, § 11101(a)(1)(C), substituted “2011” for “2005” in introductory provisions.
1993 Pub. L. 103-66 Pub. L. 103–66, § 13242(d)(13), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “the rate of the tax imposed by subsection (c)(1) shall be the comparable rate under section 4091(d)(1).”
1990 Pub. L. 101-508 Pub. L. 101–508, § 11213(b)(2)(B)(ii), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “no tax shall be imposed by subsection (c).”

(i) in the case of fuel none of the alcohol in which consists of ethanol, 2.15 cents per gallon, and

(ii) in any other case, 4.3 cents per gallon.

(2) Partially exempt methanol or ethanol fuel The term “partially exempt methanol or ethanol fuel” means any liquid at least 85 percent of which consists of methanol, ethanol, or other alcohol produced from natural gas.

Textual readingALL OF= partially exempt methanol or ethanol fuel

“any liquid”

“at least 85 percent of which consists of methanol, ethanol, or other alcohol produced from natural gas”

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