26 U.S.C. § 6427: Fuels not used for taxable purposes

§ 48.6427-0 Off-highway business use.§ 48.6427-1 Credit or payments to purchaser of special fuels resold or used for nontaxable, farming, or other purposes.§ 48.6427-2 Credits or payments to purchaser of diesel or special motor fuels used in intercity, local, or school buses.§ 48.6427-3 Time for filing claim for credit or payment.§ 48.6427-4 Applicable laws.§ 48.6427-5 Records to be kept in substantiation of credits or payments.§ 48.6427-6 Limitation on credit or refund of tax paid on fuel used in intercity, local or school buses after July 31, 1984.§ 48.6427-8 Diesel fuel and kerosene; claims by ultimate purchasers.§ 48.6427-9 Diesel fuel and kerosene; claims by registered ultimate vendors (farming and State use).§ 48.6427-10 Kerosene; claims by registered ultimate vendors (blocked pumps).§ 48.6427-11 Kerosene; claims by registered ultimate vendors (blending).Prop. § 48.6427-10 Proposed 1994 · Credit or payment with respect to gasoline used to produce gasohol.Prop. § 48.6427-8 Proposed 2008 · Prop. § 48.6427-12 Proposed 2008 · Alcohol, alternative fuel, biodiesel, and renewable diesel.

Amended 1987, 1988, 1989, 1990, 1998, 2005, 2007

2007 Pub. L. 110-172 Pub. L. 110–172, § 11(a)(39)(A), redesignated subsec. (q) as (p) and struck out heading and text of former subsec. (p). Text of former subsec. (p) read as follows: “Except as provided in subsection (k), if—
“(1) any tax is imposed by section 4081 at a rate determined under subsection (c) thereof on gasohol (as defined in such subsection), and
“(2) such gasohol is used as a fuel in any aircraft in noncommercial aviation (as defined in section 4041(c)(2),
the Secretary shall pay (without interest) to the ultimate purchaser of such gasohol an amount equal to 1.4 cents (2 cents in the case of a mixture none of the alcohol in which consists of ethanol) multiplied by the number of gallons of gasohol so used.”
2005 Pub. L. 109-58 Pub. L. 109–58, § 1343(b)(1), redesignated subsec. (p) as (q).
1998 Pub. L. 105-206 Pub. L. 105–206, § 6023(26)(A), redesignated subsec. (q) as (o).
1998 Pub. L. 105-206 Pub. L. 105–206, § 6023(16), substituted “section 4041(c)(2)” for “section 4041(c)(4)”.
1998 Pub. L. 105-206 Pub. L. 105–206, § 6023(26)(A), redesignated subsec. (r) as (p).
1990 Pub. L. 101-508 Pub. L. 101–508, § 11211(b)(6)(E)(ii), substituted heading for one which read: “Gasoline used in noncommercial aviation during period rate reduction in effect” and amended text generally. Prior to amendment, text read as follows: “Except as provided in subsection (k), if—
“(1) any tax is imposed by section 4081 on any gasoline,
“(2) such gasoline is used during 1991 as a fuel in any aircraft in noncommercial aviation (as defined in section 4041(c)(4)), and
“(3) no tax is imposed by section 4041(c)(2) on taxable events occurring during 1991 by reason of section 4283,
the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline an amount equal to the excess of the aggregate amount of tax paid under section 4081 on the gasoline so used over an amount equal to 6 cents multiplied by the number of gallons of gasoline so used.”
1989 Pub. L. 101-239 Pub. L. 101–239, § 7501(b)(3), substituted “1991” for “1990” in pars. (2) and (3).
1989 Pub. L. 101-239 Pub. L. 101–239, § 7822(b)(4), redesignated subsec. (q), relating to payments for taxes imposed by section 4041(d), as (p).
1988 Pub. L. 100-647 Pub. L. 100–647, § 2004(s)(3), redesignated subsec. (p), relating to gasoline used in noncommercial aviation during period rate reduction in effect, as (q). Former subsec. (q), relating to cross references, redesignated (r).
1988 Pub. L. 100-647 Pub. L. 100–647, § 2004(s)(3), redesignated subsec. (q), relating to cross references, as (r).
1987 Pub. L. 100-223 Pub. L. 100–223, § 405(b)(1), redesignated subsec. (p), relating to payments for taxes imposed by section 4041(d), as (q).
1987 Pub. L. 100-203 Pub. L. 100–203, § 10502(c)(1), redesignated subsec. (p), relating to cross references, as (q).

Cases: The Western Company of North America v. United States, 323 F.3d 1024 (Fed. Cir. 2003); FPL Group, Inc. v. Commissioner, 116 T.C. 73 (2001); Valley Ice & Fuel Co. v. United States, 30 F.3d 635 (5th Cir. 1994)

Forms: Form 4136; Form 8849; Form 843; Form 1065

Final rules 4

(a) Nontaxable uses Except as provided in subsection (k), if tax has been imposed under paragraph (2) or (3) of section 4041(a) or section 4041(c) on the sale of any fuel and the purchaser uses such fuel other than for the use for which sold, or resells such fuel, the Secretary shall pay (without interest) to him an amount equal to—

Amended 1976, 1978, 1980, 1983, 1984, 1986, 1993

1993 Pub. L. 103-66 Pub. L. 103–66, § 13242(d)(21), substituted “paragraph (2) or (3) of section 4041(a) or section 4041(c)” for “section 4041(a) or (c)” in introductory provisions.
1986 Pub. L. 99-514 Pub. L. 99–514, § 1703(e)(2)(A), substituted “subsection (k)” for “subsection (j)”.
1984 Pub. L. 98-369 Pub. L. 98–369, § 911(d)(2)(B), substituted “subsection (j)” for “subsection (i)”.
1983 Pub. L. 97-424 Pub. L. 97–424, § 511(g)(2)(B), substituted “section 4041(a) or (c)” for “section 4041(a), (b), or (c)”.
1980 Pub. L. 96-223 Pub. L. 96–223, § 232(d)(4)(B), substituted “subsection (i)” for “subsection (h)”.
1978 Pub. L. 95-599 Pub. L. 95–599, § 505(c)(2), substituted “subsection (h)” for “subsection (g)”.
1976 Pub. L. 94-530 Pub. L. 94–530, § 1(c)(2), substituted “subsection (g)” for “subsection (f)”.
1976 Pub. L. 94-455 Pub. L. 94–455, § 1906(a)(31)(A), (b)(13)(A), struck out “, after June 30, 1970,” after “sale of any fuel and” and “or his delegate” after “Secretary”.

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(1) the amount of tax imposed on the sale of the fuel to him, reduced by

(2) if he uses the fuel, the amount of tax which would have been imposed under section 4041 on such use if no tax under section 4041 had been imposed on the sale of the fuel.

(c) Use for farming purposes Except as provided in subsection (k), if any fuel on the sale of which tax was imposed under paragraph (2) or (3) of section 4041(a) or section 4041(c) is used on a farm for farming purposes (within the meaning of section 6420(c)), the Secretary shall pay (without interest) to the purchaser an amount equal to the amount of the tax imposed on the sale of the fuel. For purposes of this subsection, if fuel is used on a farm by any person other than the owner, tenant, or operator of such farm, the rules of paragraph (4) of section 6420(c) shall be applied (except that “liquid taxable under section 4041” shall be substituted for “gasoline” each place it appears in such paragraph (4)).

Amended 1976, 1978, 1980, 1983, 1984, 1986, 1993

1993 Pub. L. 103-66 Pub. L. 103–66, § 13242(d)(21), substituted “paragraph (2) or (3) of section 4041(a) or section 4041(c)” for “section 4041(a) or (c)”.
1986 Pub. L. 99-514 Pub. L. 99–514, § 1703(e)(2)(A), substituted “subsection (k)” for “subsection (j)”.
1984 Pub. L. 98-369 Pub. L. 98–369, § 911(d)(2)(B), substituted “subsection (j)” for “subsection (i)”.
1983 Pub. L. 97-424 Pub. L. 97–424, § 511(g)(2)(D), substituted “section 4041(a) or (c)” for “section 4041(a), (b), or (c)”.
1980 Pub. L. 96-223 Pub. L. 96–223, § 232(d)(4)(B), substituted “subsection (i)” for “subsection (h)”.
1978 Pub. L. 95-599 Pub. L. 95–599, § 505(c)(2), substituted “subsection (h)” for “subsection (g)”.
1978 Pub. L. 95-458 Pub. L. 95–458 substituted provision requiring that the rules of section 6420(c)(4) be applied in determining the user and purchaser of fuel if the fuel was used on a farm by any person other than the owner, tenant, or operator for provision which deemed the owner, tenant, or operator of the farm as the user and purchaser if fuel was used on the farm by any other person.
1976 Pub. L. 94-530 Pub. L. 94–530, § 1(c)(2), substituted “subsection (g)” for “subsection (f)”.
1976 Pub. L. 94-455 Pub. L. 94–455, § 1906(a)(31)(A), (b)(13)(A), struck out “, after June 30, 1970,” before “used on a farm” and “or his delegate” after “Secretary”.

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(d) Use by certain aircraft museums or in certain other aircraft uses Except as provided in subsection (k), if—

NOT“Except as provided in subsection (k),” Opening words

“is used by an aircraft museum (as defined in section 4041(h)(2)) in an aircraft or vehicle owned by such museum and used exclusively for purposes set forth in section 4041(h)(2)(C), or is used in a helicopter or a fixed-wing aircraft for a purpose described in section 4041(l),” Closing words

Textual readingANY OF= payment to the ultimate purchaser

(1) any gasoline on which tax was imposed by section 4081, or

(2) any fuel on the sale of which tax was imposed under section 4041,

is used by an aircraft museum (as defined in section 4041(h)(2)) in an aircraft or vehicle owned by such museum and used exclusively for purposes set forth in section 4041(h)(2)(C), or is used in a helicopter or a fixed-wing aircraft for a purpose described in section 4041(l), the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline or fuel an amount equal to the aggregate amount of the tax imposed on such gasoline or fuel.

Amended 1976, 1978, 1980, 1982, 1984, 1986, 1998

1998 Pub. L. 105-206 Pub. L. 105–206, § 6016(b), in heading, substituted “other aircraft uses” for “helicopters” and, in concluding provisions, inserted “or a fixed-wing aircraft” after “helicopter”.
1986 Pub. L. 99-514 Pub. L. 99–514, § 1703(e)(2)(A), substituted “subsection (k)” for “subsection (j)”.
1984 Pub. L. 98-369 Pub. L. 98–369, § 911(d)(2)(B), substituted “subsection (j)” for “subsection (i)”.
1982 Pub. L. 97-248 Pub. L. 97–248 inserted “or in certain helicopters” after “museums” in heading and “or is used in a helicopter for a purpose described in section 4041(l),” after “section 4041(h)(2)(C),” in text.
1980 Pub. L. 96-223 Pub. L. 96–223, § 232(d)(4)(B), substituted “subsection (i)” for “subsection (h)”.
1978 Pub. L. 95-600 Pub. L. 95–600 struck out “or his delegate” after “Secretary”.
1978 Pub. L. 95-599 Pub. L. 95–599, § 505(c)(2), substituted “subsection (h)” for “subsection (g)”.
1976 Pub. L. 94-530 Pub. L. 94–530, § 1(b), added subsec. (d). Former subsec. (d) redesignated (e).

(e) Alcohol, biodiesel, alternative fuel, or sustainable aviation fuel Except as provided in subsection (k)—

Amended 1978, 1990, 2004, 2005, 2022

2022 Pub. L. 117-169 Pub. L. 117–169, § 13203(d)(2)(B)(i), substituted “alternative fuel, or sustainable aviation fuel” for “or alternative fuel” in heading.
2005 Pub. L. 109-59 Pub. L. 109–59, § 11113(b)(3)(C)(ix), substituted “, biodiesel, or alternative fuel” for “or biodiesel used to produce alcohol fuel and biodiesel mixtures” in heading.
2004 Pub. L. 108-357 Pub. L. 108–357, § 301(c)(9), added subsec. (e).
1990 Pub. L. 101-508 Pub. L. 101–508, § 11801(a)(46), struck out subsec. (e) which required payment of refunds of gasoline or fuel tax to ultimate purchasers where such gasoline or fuel was used in a qualified taxicab engaged exclusively in furnishing qualified taxicab services.
1978 Pub. L. 95-599 Pub. L. 95–599, § 505(a)(2), added subsec. (e) and redesignated former subsec. (e) as (f).

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(1) Used to produce a mixture If any person produces a mixture described in section 6426 in such person’s trade or business, the Secretary shall pay (without interest) to such person an amount equal to the alcohol fuel mixture credit or the biodiesel mixture credit or the alternative fuel mixture credit or the sustainable aviation fuel mixture credit with respect to such mixture.

Amended 1976, 1980, 1983, 1984, 1986, 1987, 2005, 2022

2022 Pub. L. 117-169 Pub. L. 117–169, § 13203(d)(2)(B)(ii), inserted “or the sustainable aviation fuel mixture credit” after “alternative fuel mixture credit”.
2005 Pub. L. 109-59 Pub. L. 109–59, § 11113(b)(3)(C)(i), inserted “or the alternative fuel mixture credit” after “biodiesel mixture credit”.
1987 Pub. L. 100-203 Pub. L. 100–203, § 10502(c)(3), inserted “or 4091” after “section 4041”.
1986 Pub. L. 99-514 Pub. L. 99–514, § 1703(e)(2)(A), substituted “subsection (k)” for “subsection (j)”.
1984 Pub. L. 98-369 Pub. L. 98–369, § 911(d)(2)(B), substituted “subsection (j)” for “subsection (i)”.
1983 Pub. L. 97-424 Pub. L. 97–424, § 511(e)(1), substituted “an amount determined at the rate of 4 cents a gallon” for “an amount equal to the aggregate amount of the tax imposed on such gasoline or fuel”.
1980 Pub. L. 96-223 Pub. L. 96–223, § 232(d)(4)(B), substituted “subsection (i)” for “subsection (h)”.
1976 Pub. L. 94-530 Pub. L. 94–530, § 1(b), (c)(3), redesignated former subsec. (d)(1) as (e)(1) and substituted “(a), (b), (c), or (d)” for “(a), (b), or (c)”. Former subsec. (e) redesignated (f).

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(2) Alternative fuel If any person sells or uses an alternative fuel (as defined in section 6426(d)(2)) for a purpose described in section 6426(d)(1) in such person’s trade or business, the Secretary shall pay (without interest) to such person an amount equal to the alternative fuel credit with respect to such fuel.

Amended 1976, 1983, 2005

2005 Pub. L. 109-59 Pub. L. 109–59, § 11113(b)(3)(C)(iii), added par. (2). Former par. (2) redesignated (3).
1983 Pub. L. 97-424 Pub. L. 97–424, § 511(e)(3), struck out “is not prohibited under the laws, regulations, or procedures of such Federal, State, or local authority, and” after “(ii)”.
1976 Pub. L. 94-530 Pub. L. 94–530, § 1(b), (c)(4), redesignated former subsec. (d)(2) as (e)(2) and substituted “(a), (b), and (d)” for “(a) and (b)”.

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(3) Coordination with other repayment provisions No amount shall be payable under paragraph (1) or (2) with respect to any mixture or alternative fuel with respect to which an amount is allowed as a credit under section 6426.

Amended 1980, 1983, 1984, 1986, 2005, 2007

2007 Pub. L. 110-172 Pub. L. 110–172, § 11(a)(37), redesignated par. (3), relating to termination, as (5).
2005 Pub. L. 109-59 Pub. L. 109–59, § 11113(b)(3)(C)(iv), substituted “under paragraph (1) or (2) with respect to any mixture or alternative fuel” for “under paragraph (1) with respect to any mixture”.
2005 Pub. L. 109-59 Pub. L. 109–59, § 11113(b)(3)(C)(ii), redesignated par. (2) as (3).
1986 Pub. L. 99-514 Pub. L. 99–514, § 422(b), substituted “September 30, 1988” for “September 30, 1985”.
1984 Pub. L. 98-369 Pub. L. 98–369, § 914, substituted “September 30, 1985” for “September 30, 1984”.
1983 Pub. L. 97-424 Pub. L. 97–424, § 511(e)(2), substituted “September 30, 1984” for “December 31, 1982”.
1980 Pub. L. 96-541 Pub. L. 96–541 extended subsec. (e) termination date to Dec. 31, 1982, from Dec. 31, 1980.

(4) Registration requirement for alternative fuels The Secretary shall not make any payment under this subsection to any person with respect to any alternative fuel credit or alternative fuel mixture credit unless the person is registered under section 4101.

Amended 2005

2005 Pub. L. 109-59 Pub. L. 109–59, § 11113(b)(3)(C)(v), added par. (4).
2005 Pub. L. 109-58 Pub. L. 109–58, § 1344(a), which directed amendment of par. (4)(B) by substituting “2008” for “2006”, could not be executed because there was no par. (4) prior to amendment by Pub. L. 109–59, § 11113(b)(3)(C)(v). See 2007 Amendment note above relating to subsec. (e)(5)(B).

(5) Limitation to fuels with connection to the United States No amount shall be payable under paragraph (1) or (2) with respect to any mixture or alternative fuel if credit is not allowed with respect to such mixture or alternative fuel by reason of section 6426(i).

Amended 2005, 2007, 2008

2008 Pub. L. 110-343 Pub. L. 110–343, § 203(c)(2), added par. (5). Former par. (5) redesignated (6).
2008 Pub. L. 110-343 Pub. L. 110–343, § 202(a), substituted “December 31, 2009” for “December 31, 2008”.
2007 Pub. L. 110-172 Pub. L. 110–172, § 11(a)(37), redesignated par. (3), relating to termination, as (5).
2007 Pub. L. 110-172 Pub. L. 110–172, § 11(e)(1), substituted “2008” for “2006”.
2005 Pub. L. 109-59 Pub. L. 109–59, § 11113(b)(3)(C)(ii), which directed amendment of subsec. (e) by redesignating par. (4) as (5), could not be executed because there was no par. (4) prior to amendment by Pub. L. 109–59, § 11113(b)(3)(C)(v). See 2005 and 2007 Amendment notes above.
2005 Pub. L. 109-59 Pub. L. 109–59, § 11113(b)(3)(C)(vi)–(viii), added subpars. (C) and (D).

(6) Termination This subsection shall not apply with respect to—

Amended 2008

2008 Pub. L. 110-343 Pub. L. 110–343, § 203(c)(2), redesignated par. (5) as (6).

(A) any alcohol fuel mixture (as defined in section 6426(b)(3)) sold or used after December 31, 2011,

Amended 2010

2010 Pub. L. 111-312 Pub. L. 111–312, § 708(c)(1), substituted “December 31, 2011” for “December 31, 2010”.

(B) any biodiesel mixture (as defined in section 6426(c)(3)) sold or used after December 31, 2024,

Amended 2010, 2013, 2014, 2015, 2018, 2019, 2022

2022 Pub. L. 117-169 Pub. L. 117–169, § 13201(b)(2), substituted “December 31, 2024” for “December 31, 2022”.
2019 Pub. L. 116-94 Pub. L. 116–94, § 121(b)(1)(B), substituted “December 31, 2022” for “December 31, 2017”.
2018 Pub. L. 115-123 Pub. L. 115–123, § 40407(b)(2), substituted “December 31, 2017” for “December 31, 2016”.
2015 Pub. L. 114-113 Pub. L. 114–113, § 185(b)(2), substituted “December 31, 2016” for “December 31, 2014”.
2014 Pub. L. 113-295 Pub. L. 113–295, § 160(a)(2), substituted “December 31, 2014” for “December 31, 2013”.
2013 Pub. L. 112-240 Pub. L. 112–240, § 405(b)(2), substituted “December 31, 2013” for “December 31, 2011”.
2010 Pub. L. 111-312 Pub. L. 111–312, § 701(b)(2), substituted “December 31, 2011” for “December 31, 2009”.

Amended 2008, 2010, 2013, 2014, 2015, 2018, 2019, 2020, 2022

2022 Pub. L. 117-169 Pub. L. 117–169, § 13201(e), substituted “December 31, 2024” for “December 31, 2021”.
2020 Pub. L. 116-260 Pub. L. 116–260 substituted “December 31, 2021” for “December 31, 2020”.
2019 Pub. L. 116-94 Pub. L. 116–94, § 133(a)(2), substituted “December 31, 2020” for “December 31, 2017”.
2018 Pub. L. 115-123 Pub. L. 115–123, § 40415(a)(2), substituted “December 31, 2017” for “December 31, 2016”.
2015 Pub. L. 114-113 Pub. L. 114–113, § 192(a)(2), substituted “December 31, 2016” for “December 31, 2014”.
2014 Pub. L. 113-295 Pub. L. 113–295, § 160(c)(2)(A), (B), substituted “any” for “except as provided in subparagraph (D), any” and inserted “and” at end.
2014 Pub. L. 113-295 Pub. L. 113–295, § 160(b)(2), substituted “December 31, 2014” for “December 31, 2013”.
2013 Pub. L. 112-240 Pub. L. 112–240, § 412(b)(1), substituted “(as defined in section 6426(d)(2))” for “or alternative fuel mixture (as defined in subsection (d)(2) or (e)(3) of section 6426)” and “December 31, 2013,” for “December 31, 2011, and”.
2010 Pub. L. 111-312 Pub. L. 111–312, § 704(a), substituted “December 31, 2011” for “December 31, 2009”.
2008 Pub. L. 110-343 Pub. L. 110–343, § 204(a)(3), which directed amendment of subsec. (e)(5)(C) by substituting “December 31, 2009” for “September 30, 2009”, was executed by making the substitution in par. (6)(C), to reflect the probable intent of Congress and the redesignation of par. (5) as (6) by Pub. L. 110–343, § 203(c)(2). See above.

(D) any alternative fuel mixture (as defined in section 6426(e)(2)) sold or used after December 31, 2011, and

Amended 2013, 2014

2014 Pub. L. 113-295 Pub. L. 113–295, § 160(c)(2)(C), redesignated subpar. (E) as (D) and struck out former subpar. (D) which read as follows: “any alternative fuel (as so defined) involving liquefied hydrogen sold or used after September 30, 2014, and”.
2013 Pub. L. 112-240 Pub. L. 112–240, § 412(b)(2)(A), struck out “or alternative fuel mixture” after “any alternative fuel”.

(E) any qualified mixture of sustainable aviation fuel (as defined in section 6426(k)(3)) [OLRC note: See References in Text note below.] sold or used after December 31, 2024.

Amended 2013, 2014, 2022

2022 Pub. L. 117-169 Pub. L. 117–169, § 13203(d)(2)(B)(iii), added subpar. (E).
2014 Pub. L. 113-295 Pub. L. 113–295, § 160(c)(2)(C), redesignated subpar. (E) as (D) and struck out former subpar. (D) which read as follows: “any alternative fuel (as so defined) involving liquefied hydrogen sold or used after September 30, 2014, and”.
2013 Pub. L. 112-240 Pub. L. 112–240, § 412(b)(2)(B), (3), added subpar. (E).

[(f) Repealed. Pub. L. 109–59, title XI, § 11151(a)(1), Aug. 10, 2005, 119 Stat. 1968]

Amended 1976, 1978, 1980, 1983, 1984, 1986, 1987, 1988, 1989, 1990, 1993, 1996, 1997, 1998, 2005

2005 Pub. L. 109-59 Pub. L. 109–59, § 11151(a)(1), struck out subsec. (f) which related to payment by Secretary of an amount equal to the excess of the regular tax rate over the incentive tax rate with respect to any gasoline, diesel fuel, kerosene, or aviation fuel on which tax was imposed by section 4081 or 4091 at the regular tax rate, which is used by any person in producing a mixture described in section 4081(c) or 4091(c)(1)(A), and which is sold or used in such person’s trade or business.
1998 Pub. L. 105-206 Pub. L. 105–206, § 6023(25), struck out “, (e),” after “subsection (d)”.
1998 Pub. L. 105-178 Pub. L. 105–178, § 9003(a)(2), substituted “2007” for “1999”.
1997 Pub. L. 105-34 Pub. L. 105–34, § 1032(e)(7), inserted “kerosene,” after “diesel fuel,” in subsec. heading and in text of par. (1).
1997 Pub. L. 105-34 Pub. L. 105–34, § 1032(e)(8), substituted “, diesel fuel, or kerosene” for “or diesel fuel”.
1997 Pub. L. 105-34 Pub. L. 105–34, § 1032(e)(7), inserted “kerosene,” after “diesel fuel,”.
1996 Pub. L. 104-188 Pub. L. 104–188, § 1703(k), substituted “1999” for “1995”.
1993 Pub. L. 103-66 Pub. L. 103–66, § 13242(d)(26)(A), substituted “or 4091(c)(1)(A)” for “, 4091(c)(1)(A), or 4091(d)(1)(A)”.
1993 Pub. L. 103-66 Pub. L. 103–66, § 13242(d)(26)(B), amended heading and text of par. (2) generally. Prior to amendment, text read as follows: “For purposes of paragraph (1)—
“(A) Regular tax rate.—The term ‘regular tax rate’ means—
“(i) in the case of gasoline, the aggregate rate of tax imposed by section 4081 determined without regard to subsection (c) thereof,
“(ii) in the case of diesel fuel, the aggregate rate of tax imposed by section 4091 on such fuel determined without regard to subsection (c) thereof, and
“(iii) in the case of aviation fuel, the aggregate rate of tax imposed by section 4091 on such fuel determined without regard to subsection (d) thereof.
“(B) Incentive tax rate.—The term ‘incentive tax rate’ means—
“(i) in the case of gasoline, the aggregate rate of tax imposed by section 4081 with respect to fuel described in subsection (c)(1) thereof,
“(ii) in the case of diesel fuel, the aggregate rate of tax imposed by section 4091 with respect to fuel described in subsection (c)(1)(B) thereof, and
“(iii) in the case of aviation fuel, the aggregate rate of tax imposed by section 4091 with respect to fuel described in subsection (d)(1)(B) thereof.”
1990 Pub. L. 101-508 Pub. L. 101–508, § 11213(b)(3), amended subsec. (f) generally, restructuring and restating pars. (1) to (3) as (1) to (4) and extending the termination date from Sept. 30, 1993, to Sept. 30, 1995.
1989 Pub. L. 101-239 Pub. L. 101–239, § 7812(a), made technical correction to directory language of Pub. L. 100–647, § 2001(d)(7)(C), see 1988 Amendment note below.
1988 Pub. L. 100-647 Pub. L. 100–647, § 2001(d)(7)(B), substituted “regular tax rate” for “regular Highway Trust Fund financing rate” in two places and “incentive tax rate” for “incentive Highway Trust Fund Financing rate”, notwithstanding directory language that “incentive tax rate” was to be substituted for “Highway Trust Fund financing rate”.
1988 Pub. L. 100-647 Pub. L. 100–647, § 2001(d)(7)(C), as amended by Pub. L. 101–239, § 7812(a), amended subpar. (B) generally. Prior to amendment, subpar. (B) defined “regular Highway Trust Fund financing rate” and “incentive Highway Trust Fund Financing rate”.
1987 Pub. L. 100-203 Pub. L. 100–203, § 10502(c)(4), amended subsec. (f) generally, substituting new heading for “Gasoline used to produce certain alcohol fuels”, and revising and restating as pars. (1) to (3) provisions of former pars. (1) and (2).
1986 Pub. L. 99-514 Pub. L. 99–514, § 1703(e)(2)(A), substituted “subsection (k)” for “subsection (j)”.
1986 Pub. L. 99-499 Pub. L. 99–499, § 521(c)(3)(C), which directed the substitution of “at the Highway Trust Fund financing rate” for “at the rate”, was executed by making the substitution for the first such reference as the probable intent of Congress.
1984 Pub. L. 98-369 Pub. L. 98–369, § 911(d)(2)(B), substituted “subsection (j)” for “subsection (i)”.
1984 Pub. L. 98-369 Pub. L. 98–369, § 912(d), substituted “5⅔ cents” for “45⁄9 cents”.
1984 Pub. L. 98-369 Pub. L. 98–369, § 732(a)(3), substituted “45⁄9 cents” for “5 cents”.
1983 Pub. L. 97-424 Pub. L. 97–424, § 511(d)(4), substituted “on which a tax” for “on which tax”, inserted “at the rate of 9 cents a gallon” after “is imposed by section 4081”, and substituted “the amount determined at the rate of 5 cents a gallon” for “the aggregate amount of the tax imposed on such gasoline”.
1983 Pub. L. 97-424 Pub. L. 97–424, § 511(d)(4), substituted provision that no amount shall be payable under paragraph (1) with respect to any gasoline with respect to which an amount is payable under subsection (d) or (e) of this section or under section 6420 or 6421, for provision that no amount would be payable under subsection (d) or (e) of this section or under section 6420 or 6421 with respect to any gasoline with respect to which an amount was payable under paragraph (1).
1980 Pub. L. 96-223 Pub. L. 96–223, § 232(d)(1)(A), (2), (4)(C), added subsec. (f), redesignated former subsec. (f) as (g), and in subsec. (g) as so redesignated, inserted reference to subsec. (f) in par. (1), added par. (2)(A)(iii), and, in par. (2)(B), substituted “If the requirements of clause (ii) or clause (iii) of subparagraph (A) are met by any person for any quarter but the requirements of subparagraph (A)(i) are not met by such person for such quarter, such person may file a claim under subparagraph (A) for such quarter only with respect to amounts referred to in the clause (or clauses) of subparagraph (A) the requirements of which are met by such person for such quarter” for “If a claim may be filed by any person under subparagraph (A)(ii) but not under subparagraph (A)(i) for any quarter, such person may file a claim under subparagraph (A) for such quarter only with respect to amounts payable under subsection (e)”. Former subsec. (g) redesignated (h).
1978 Pub. L. 95-599 Pub. L. 95–599, § 505(a)(1), (b), (c)(3), redesignated former subsec. (e) as (f) and, in par. (1), substituted “(d), or (e)” for “or (d)” and amended par. (2) generally, designating existing provisions as subpars. (A)(i) and (c) and adding subpars. (A)(ii) and (B). Former subsec. (f) redesignated (g).
1976 Pub. L. 94-530 Pub. L. 94–530, § 1(b), redesignated former subsec. (e) as (f). Former subsec. (f) redesignated (g) and amended.
1976 Pub. L. 94-455 Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.

Cited by 5

[(g) Repealed. Pub. L. 104–188, title I, § 1606(a), Aug. 20, 1996, 110 Stat. 1839]

Amended 1976, 1978, 1980, 1984, 1986, 1987, 1990, 1991, 1996

1996 Pub. L. 104-188 Pub. L. 104–188, § 1606(a), struck out subsec. (g) which related to advance repayment of increased diesel fuel tax to original purchasers of diesel-powered automobiles and light trucks.
1991 Pub. L. 102-240 Pub. L. 102–240 substituted “1999” for “1995”.
1990 Pub. L. 101-508 Pub. L. 101–508, § 11211(d)(7), substituted “1995” for “1993”.
1987 Pub. L. 100-17 Pub. L. 100–17, § 502(b)(8), substituted “1993” for “1988”.
1986 Pub. L. 99-514 Pub. L. 99–514, § 1899A(56), substituted “amount” for “anount”.
1986 Pub. L. 99-514 Pub. L. 99–514, § 1703(e)(2)(A), substituted “subsection (k)” for “subsection (j)”.
1984 Pub. L. 98-369 Pub. L. 98–369, § 911(b), added subsec. (g). Former subsec. (g) redesignated (h).
1980 Pub. L. 96-223 Pub. L. 96–223, § 232(d)(1)(A), (2), (4)(C), added subsec. (f), redesignated former subsec. (f) as (g), and in subsec. (g) as so redesignated, inserted reference to subsec. (f) in par. (1), added par. (2)(A)(iii), and, in par. (2)(B), substituted “If the requirements of clause (ii) or clause (iii) of subparagraph (A) are met by any person for any quarter but the requirements of subparagraph (A)(i) are not met by such person for such quarter, such person may file a claim under subparagraph (A) for such quarter only with respect to amounts referred to in the clause (or clauses) of subparagraph (A) the requirements of which are met by such person for such quarter” for “If a claim may be filed by any person under subparagraph (A)(ii) but not under subparagraph (A)(i) for any quarter, such person may file a claim under subparagraph (A) for such quarter only with respect to amounts payable under subsection (e)”. Former subsec. (g) redesignated (h).
1978 Pub. L. 95-599 Pub. L. 95–599, § 505(a)(1), redesignated former subsec. (f) as (g). Former subsec. (g) redesignated (h).
1976 Pub. L. 94-530 Pub. L. 94–530, § 1(b), (c)(5), redesignated former subsec. (f) as (g) and substituted “subsection (e)(2)” for “subsection (d)(2)” in par. (2).

Cited by 3

(h) Blend stocks not used for producing taxable fuel

Amended 1976, 1978, 1980, 1984, 1986, 1993, 2004

2004 Pub. L. 108-357 Pub. L. 108–357, § 870(b), amended heading and text of subsec. (h) generally. Prior to amendment, text read as follows: “Except as provided in subsection (k), if any gasoline blend stock or additive (within the meaning of section 4083(a)(2)) is not used by any person to produce gasoline and such person establishes that the ultimate use of such gasoline blend stock or additive is not to produce gasoline, the Secretary shall pay (without interest) to such person an amount equal to the aggregate amount of the tax imposed on such person with respect to such gasoline blend stock or additive.”
1993 Pub. L. 103-66 Pub. L. 103–66, § 13242(d)(27), substituted “section 4083(a)(2)” for “section 4082(b)”.
1986 Pub. L. 99-514 Pub. L. 99–514, § 1703(e)(1)(B), added subsec. (h). Former subsec. (h) redesignated (i).
1984 Pub. L. 98-369 Pub. L. 98–369, § 911(b), redesignated former subsec. (g) as (h). Former subsec. (h) redesignated (i).
1980 Pub. L. 96-223 Pub. L. 96–223, § 232(d)(1)(A), redesignated former subsec. (g) as (h). Former subsec. (h) redesignated (i).
1978 Pub. L. 95-599 Pub. L. 95–599, § 505(a)(1), (c)(4), redesignated former subsec. (g) as (h) and substituted “(f)(2)” for “(e)(2)”. Former subsec. (h) redesignated (i).
1976 Pub. L. 94-530 Pub. L. 94–530, § 1(b), redesignated former subsecs. (g) and (h) as (h) and (i), respectively.
1976 Pub. L. 94-455 Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.

Cited by 1

(1) Gasoline blend stocks or additives not used for producing gasoline Except as provided in subsection (k), if any gasoline blend stock or additive (within the meaning of section 4083(a)(2)) is not used by any person to produce gasoline and such person establishes that the ultimate use of such gasoline blend stock or additive is not to produce gasoline, the Secretary shall pay (without interest) to such person an amount equal to the aggregate amount of the tax imposed on such person with respect to such gasoline blend stock or additive.

Amended 1984

1984 Pub. L. 98-369 Pub. L. 98–369, § 911(d)(2)(C), substituted “(f), or (g)” for “or (f)”, and inserted “(or a qualified diesel powered highway vehicle purchased)” after “fuel used” in two places.

(2) Diesel fuel blend stocks or additives not used for producing diesel Except as provided in subsection (k), if any diesel fuel blend stock is not used by any person to produce diesel fuel and such person establishes that the ultimate use of such diesel fuel blend stock is not to produce diesel fuel, the Secretary shall pay (without interest) to such person an amount equal to the aggregate amount of the tax imposed on such person with respect to such diesel fuel blend stock.

Amended 1984

1984 Pub. L. 98-369 Pub. L. 98–369, § 911(d)(2)(D), substituted “(e), and (g)” for “and (e)”, and inserted “(or a qualified diesel powered highway vehicle purchased)” after “fuel used” in two places.

(i) Time for filing claims; period covered

Amended 1976, 1978, 1980, 1984, 1986, 1993, 1997, 1998

1998 Pub. L. 105-178 Pub. L. 105–178, § 9009(b)(1), redesignated par. (5) as (4) and struck out par. (4) which read as follows:
1998 “(4) Special rule for refunds under subsection (l).—
“(A) In general.—If at the close of any of the 1st 3 quarters of the taxable year of any person, at least $750 is payable under subsection (l) to such person with respect to fuel used during such quarter or any prior quarter during the taxable year (and for which no other claim has been filed), a claim may be filed under subsection (l) with respect to such fuel.
“(B) Time for filing claim.—No claim filed under this paragraph shall be allowed unless filed during the 1st quarter following the last quarter included in the claim.”
1997 Pub. L. 105-34 Pub. L. 105–34, § 1032(c)(3)(E), inserted “($100 or more in the case of kerosene)” after “$200 or more”.
1993 Pub. L. 103-66 Pub. L. 103–66, § 13242(c)(2)(A), added par. (5).
1986 Pub. L. 99-514 Pub. L. 99–514, § 1703(e)(1)(A), redesignated subsec. (h) as (i). Former subsec. (i) redesignated (j).
1984 Pub. L. 98-369 Pub. L. 98–369, § 911(b), redesignated former subsec. (h) as (i). Former subsec. (i) redesignated (j).
1980 Pub. L. 96-223 Pub. L. 96–223, § 232(d)(1)(A), (4)(D), redesignated former subsec. (h) as (i), and in par. (2) of subsec. (i) as so redesignated, substituted “subsection (g)(2)” for “subsection (f)(2)”. Former subsec. (i) redesignated (j).
1978 Pub. L. 95-599 Pub. L. 95–599, § 505(a)(1), redesignated former subsecs. (h) and (i) as (i) and (j), respectively.
1976 Pub. L. 94-530 Pub. L. 94–530, § 1(b), redesignated former subsecs. (g) and (h) as (h) and (i), respectively.

Cited by 7

(1) General rule Except as otherwise provided in this subsection, not more than one claim may be filed under subsection (a), (b), (c), (d), (h), (l), (m), or (o) by any person with respect to fuel used during his taxable year; and no claim shall be allowed under this paragraph with respect to fuel used during any taxable year unless filed by the purchaser not later than the time prescribed by law for filing a claim for credit or refund of overpayment of income tax for such taxable year. For purposes of this paragraph, a person’s taxable year shall be his taxable year for purposes of subtitle A.

Amended 1986, 1987, 1988, 1989, 1990, 1993, 1996, 1998, 2005

2005 Pub. L. 109-58 Pub. L. 109–58, § 1343(b)(3), inserted “(m),” after “(l),” in par. (1) and in par. (2)(A) in introductory provisions.
1998 Pub. L. 105-206 Pub. L. 105–206, § 6023(26)(B), substituted “(o)” for “(q)”.
1996 Pub. L. 104-188 Pub. L. 104–188, § 1606(b)(2), struck out “(g),” after “(d),” and “(or a qualified diesel powered highway vehicle purchased)” after “with respect to fuel used” wherever appearing.
1993 Pub. L. 103-66 Pub. L. 103–66, § 13242(c)(2)(B), substituted “otherwise provided in this subsection” for “provided in paragraphs (2), (3), and (4)”.
1990 Pub. L. 101-508 Pub. L. 101–508, § 11801(c)(23)(A), struck out “(e),” before “(g),”.
1989 Pub. L. 101-239 Pub. L. 101–239, § 7822(b)(1), substituted “subsection (a), (b), (c), (d), (e), (g), (h), (l), or (q) by any person” for “subsection (a), (b), (c), (d), (e),, (g), (h), or (l) by any person”.
1988 Pub. L. 100-647 Pub. L. 100–647, § 3002(c)(1), substituted “paragraphs (2), (3), and (4)” for “paragraph (2)”.
1987 Pub. L. 100-223 Pub. L. 100–223, § 405(b)(2)(A), which directed substitution of “(h), or (p)” for “or (h)”, could not be executed because of prior amendment by Pub. L. 100–203. See below.
1987 Pub. L. 100-203 Pub. L. 100–203, § 10502(c)(5)(A), substituted “(h), or (l)” for “or (h)”.
1986 Pub. L. 99-514 Pub. L. 99–514, § 1703(d)(1)(B)(i), (e)(2)(B), struck out “(f)” after “subsection (a), (b), (c), (d), (e),” and substituted “(g), or (h)” for “or (g)”.

(2) Exceptions

Cited by 3

(A) In general If, at the close of any quarter of the taxable year of any person, at least $750 is payable in the aggregate under subsections (a), (b), (d), (h), (l), (m), and (o) of this section and section 6421 to such person with respect to fuel used during—

Amended 1986, 1990, 1996, 1998, 2005

2005 Pub. L. 109-58 Pub. L. 109–58, § 1343(b)(3), inserted “(m),” after “(l),” in par. (1) and in par. (2)(A) in introductory provisions.
1998 Pub. L. 105-206 Pub. L. 105–206, § 6023(26)(B), substituted “(o)” for “(q)”.
1998 Pub. L. 105-178 Pub. L. 105–178, § 9009(a), reenacted heading without change and amended text of subpar. (A) generally. Prior to amendment, text read as follows: “If $1,000 or more is payable under subsections (a), (b), (d), (h), and (q) to any person with respect to fuel used during any of the first 3 quarters of his taxable year, a claim may be filed under this section with respect to fuel used, during such quarter.”
1996 Pub. L. 104-188 Pub. L. 104–188, § 1606(b)(2), struck out “(g),” after “(d),” and “(or a qualified diesel powered highway vehicle purchased)” after “with respect to fuel used” wherever appearing.
1990 Pub. L. 101-508 Pub. L. 101–508, § 11801(c)(23)(B), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “If—
“(i) $1,000 or more is payable under subsections (a), (b), (d), (e), (g), (h), and (q), or
“(ii) $50 or more is payable under subsection (e),
to any person with respect to fuel used (or a qualified diesel powered highway vehicle purchased) during any of the first three quarters of his taxable year, a claim may be filed under this section by the purchaser with respect to fuel used (or a qualified diesel powered highway vehicle purchased) during such quarter.”
1986 Pub. L. 99-514 Pub. L. 99–514, § 1703(d)(1)(B)(ii), inserted “or” at end of cl. (i), struck out “or” at end of cl. (ii), and struck out cl. (iii) which read as follows: “$200 or more is payable under subsection (f),”.

(i) such quarter, or

Amended 1986, 1987, 1988, 1989

1989 Pub. L. 101-239 Pub. L. 101–239, § 7822(b)(2), amended cl. (i) generally. Prior to amendment, cl. (i) read as follows: “$1,000 or more is payable under subsections (a), (b), (d), (e), (g), (h), and or”.
1988 Pub. L. 100-647 Pub. L. 100–647, § 3002(c)(2), struck out “(l),” after “and”.
1987 Pub. L. 100-223 Pub. L. 100–223, § 405(b)(2)(B), which directed substitution of “(h), and (p)” for “and (h)”, could not be executed because of prior amendment by Pub. L. 100–203. See below.
1987 Pub. L. 100-203 Pub. L. 100–203, § 10502(c)(5)(B), substituted “(h), and (l)” for “and (h)”.
1986 Pub. L. 99-514 Pub. L. 99–514, § 1703(e)(2)(C), substituted “(g), and (h)” for “and (g)”.

(ii) any prior quarter (for which no other claim has been filed) during such taxable year,

a claim may be filed under this section with respect to such fuel.

(B) Time for filing claim No claim filed under this paragraph shall be allowed unless filed during the first quarter following the last quarter included in the claim.

Amended 1986, 1989, 1990, 1998

1998 Pub. L. 105-206 Pub. L. 105–206, § 6017(a), reenacted heading without change and amended text of subpar. (B) generally. Prior to amendment, text read as follows: “No claim filed under this paragraph shall be allowed unless filed on or before the last day of the first quarter following the quarter for which the claim is filed.”
1990 Pub. L. 101-508 Pub. L. 101–508, § 11801(c)(23)(C), redesignated subpar. (C) as (B) and struck out former subpar. (B) “Special rule” which read as follows: “If the requirements of subparagraph (A)(ii) are met by any person for any quarter but the requirements of subparagraph (A)(i) are not met by such person for such quarter, such person may file a claim under subparagraph (A) for such quarter only with respect to amounts referred to in subparagraph (A)(ii).”
1989 Pub. L. 101-239 Pub. L. 101–239, § 7822(b)(3), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “If the requirements of clause (ii) of subparagraph (A) are met by any person for any quarter but the requirements of subparagraph (A)(i) are not met by such person for such quarter, such person may file a claim under subparagraph (A) for such quarter only with respect to amounts referred to in the clause of subparagraph (A) the requirements of which are met by such person for such quarter.”
1986 Pub. L. 99-514 Pub. L. 99–514, § 1703(d)(1)(B)(ii)(III), struck out “(or clauses)” after “referred to in the clause”. Notwithstanding directory language that the amendment be made to subpar. (A) of this par., the amendment was executed to subpar. (B), the only place in the section where “(or clauses)” appeared, to reflect the probable intent of Congress.
1986 Pub. L. 99-514 Pub. L. 99–514, § 1703(d)(1)(B)(iii), struck out “or clause (iii)” after “If the requirements of clause (ii)”. Notwithstanding directory language that the amendment be made to subsec. (f)(2)(B) of this section, the amendment was executed to subsec. (i)(2)(B), the only place in the section where “or clause (iii)” appeared, to reflect the probable intent of Congress.

(C) Nonapplication of paragraph This paragraph shall not apply to any fuel used solely in any off-highway business use described in section 6421(e)(2)(C).

Amended 1990, 2004

2004 Pub. L. 108-357 Pub. L. 108–357, § 851(d)(3), added subpar. (C).
1990 Pub. L. 101-508 Pub. L. 101–508, § 11801(c)(23)(C), redesignated subpar. (C) as (B) and struck out former subpar. (B) “Special rule” which read as follows: “If the requirements of subparagraph (A)(ii) are met by any person for any quarter but the requirements of subparagraph (A)(i) are not met by such person for such quarter, such person may file a claim under subparagraph (A) for such quarter only with respect to amounts referred to in subparagraph (A)(ii).”

(3) Special rule for mixture credits and the alternative fuel credit

Amended 1984, 1986, 1993, 2004, 2007

2007 Pub. L. 110-172 Pub. L. 110–172, § 5(a)(1)(C), substituted “mixture credits and the alternative fuel credit” for “alcohol fuel and biodiesel mixture credit” in heading.
2004 Pub. L. 108-357 Pub. L. 108–357, § 301(c)(10)(F), substituted “alcohol fuel and biodiesel mixture” for “alcohol mixture” in heading.
1993 Pub. L. 103-66 Pub. L. 103–66, § 13242(d)(28)(A), substituted “alcohol mixture” for “gasohol” in heading.
1986 Pub. L. 99-514 Pub. L. 99–514, § 1703(d)(1), added par. (3).
1984 Pub. L. 98-369 Pub. L. 98–369, § 474(r)(38), substituted “section 34” for “section 39”.

Cited by 1

(A) In general A claim may be filed under subsection (e)(1) by any person with respect to a mixture described in section 6426 or under subsection (e)(2) by any person with respect to an alternative fuel (as defined in section 6426(d)(2)) for any period—

Amended 1993, 1997, 2004, 2007

2007 Pub. L. 110-172 Pub. L. 110–172, § 5(a)(1)(A), in introductory provisions, inserted “or under subsection (e)(2) by any person with respect to an alternative fuel (as defined in section 6426(d)(2))” after “section 6426”.
2004 Pub. L. 108-357 Pub. L. 108–357, § 301(c)(10)(A)–(C), substituted “a mixture described in section 6426” for “gasoline, diesel fuel, or kerosene used to produce a qualified alcohol mixture (as defined in section 4081(c)(3))” in introductory provisions, substituted “subsection (e)(1)” for “subsection (f)” in two places, and inserted concluding provisions.
1997 Pub. L. 105-34 Pub. L. 105–34, § 1032(e)(9), substituted “, diesel fuel, or kerosene” for “or diesel fuel” in introductory provisions.
1993 Pub. L. 103-66 Pub. L. 103–66, § 13242(d)(28)(B), substituted “gasoline or diesel fuel used to produce a qualified alcohol mixture (as defined in section 4081(c)(3))” for “gasoline used to produce gasohol (as defined in section 4081(c)(1))”.

(i) for which $200 or more is payable under such subsection (e)(1) or (e)(2), and

Amended 2007

2007 Pub. L. 110-172 Pub. L. 110–172, § 5(a)(1)(B), inserted “or (e)(2)” after “subsection (e)(1)”.

Cited by 1

(ii) which is not less than 1 week.

In the case of an electronic claim, this subparagraph shall be applied without regard to clause (i).

(B) Payment of claim Notwithstanding subsection (e)(1) or (e)(2), if the Secretary has not paid pursuant to a claim filed under this section within 45 days of the date of the filing of such claim (20 days in the case of an electronic claim), the claim shall be paid with interest from such date determined by using the overpayment rate and method under section 6621.

Amended 2004

2004 Pub. L. 108-357 Pub. L. 108–357, § 301(c)(10)(D), (E), substituted “subsection (e)(1)” for “subsection (f)(1)” and “45 days of the date of the filing of such claim (20 days in the case of an electronic claim)” for “20 days of the date of the filing of such claim”.

Cited by 2

(C) Time for filing claim No claim filed under this paragraph shall be allowed unless filed on or before the last day of the first quarter following the earliest quarter included in the claim.

Amended 1993

1993 Pub. L. 103-66 Pub. L. 103–66, § 13242(c)(2)(D), added subpar. (C).

(4) Special rule for vendor refunds

Amended 1988, 1993, 1997, 1998

1998 Pub. L. 105-178 Pub. L. 105–178, § 9009(b)(1), redesignated par. (5) as (4) and struck out par. (4) which read as follows:
1998 “(4) Special rule for refunds under subsection (l).—
“(A) In general.—If at the close of any of the 1st 3 quarters of the taxable year of any person, at least $750 is payable under subsection (l) to such person with respect to fuel used during such quarter or any prior quarter during the taxable year (and for which no other claim has been filed), a claim may be filed under subsection (l) with respect to such fuel.
“(B) Time for filing claim.—No claim filed under this paragraph shall be allowed unless filed during the 1st quarter following the last quarter included in the claim.”
1997 Pub. L. 105-34 Pub. L. 105–34, § 1032(e)(10), amended heading generally. Prior to amendment, heading read as follows: “Special rule for nontaxable uses of diesel fuel and aviation fuel taxed under section 4081 or 4091”.
1993 Pub. L. 103-66 Pub. L. 103–66, § 13242(d)(30), inserted “4081 or” before “4091” in heading.
1988 Pub. L. 100-647 Pub. L. 100–647, § 3002(a), added par. (4).

Cited by 2

(A) In general A claim may be filed under paragraph (4)(C) or (5) of subsection (l) by any person with respect to fuel sold by such person for any period—

Amended 2004, 2005, 2006

2006 Pub. L. 109-432 Pub. L. 109–432, § 420(b)(3), substituted “paragraph (4)(C) or (5)” for “paragraph (4)(B), (5), or (6)” in introductory provisions and cl. (i) and “(l)(4)(C)(ii), and (l)(5)” for “(l)(5), and (l)(6)” in concluding provisions.
2005 Pub. L. 109-59 Pub. L. 109–59, § 11161(b)(3)(D)(ii), which directed amendment of subpar. (A) by substituting “subsections (b)(4), (l)(5), and (l)(6)” for “subsection (b)(4) and subsection (l)(5)” in concluding provisions, was executed by making the substitution for “subsections (b)(4) and subsection (l)(5)” to reflect the probable intent of Congress.
2005 Pub. L. 109-59 Pub. L. 109–59, § 11161(b)(3)(D)(i), substituted “paragraph (4)(B), (5), or (6)” for “paragraph (4)(B) or (5)” in two places.
2004 Pub. L. 108-357 Pub. L. 108–357, § 857(c), which directed the insertion of “subsections (b)(4) and” after “filed under”, was executed by making the insertion in concluding provisions, to reflect the probable intent of Congress.
2004 Pub. L. 108-357 Pub. L. 108–357, § 853(c)(2), substituted “paragraph (4)(B) or (5) of subsection (l)” for “subsection (l)(5)” in introductory provisions and in cl. (i) and substituted “subsection (l)(5)” for “the preceding sentence” before period at end of concluding provisions.

(i) for which $200 or more ($100 or more in the case of kerosene) is payable under paragraph (4)(C) or (5) of subsection (l), and

(ii) which is not less than 1 week.

Notwithstanding subsection (l)(1), paragraph (3)(B) shall apply to claims filed under subsections (b)(4), (l)(4)(C)(ii), and (l)(5).

(B) Time for filing claim No claim filed under this paragraph shall be allowed unless filed on or before the last day of the first quarter following the earliest quarter included in the claim.

(j) Applicable laws

Amended 1978, 1980, 1984, 1986

1986 Pub. L. 99-514 Pub. L. 99–514, § 1703(e)(1)(A), redesignated subsec. (i) as (j). Former subsec. (j) redesignated (k).
1984 Pub. L. 98-369 Pub. L. 98–369, § 911(b), redesignated former subsec. (i), relating to income tax credit in lieu of payment, as (j). Former subsec. (j), relating to special rules with respect to noncommercial aviation, redesignated (k).
1984 Pub. L. 98-369 Pub. L. 98–369, § 734(c)(2), added subsec. (j) relating to special rules with respect to noncommercial aviation. Former subsec. (j), relating to regulations, redesignated (k).
1980 Pub. L. 96-223 Pub. L. 96–223, § 232(d)(1)(A), redesignated former subsecs. (i) and (j) as (j) and (k), respectively.
1978 Pub. L. 95-599 Pub. L. 95–599, § 505(a)(1), redesignated former subsecs. (h) and (i) as (i) and (j), respectively.

(1) In general All provisions of law, including penalties, applicable in respect of the taxes imposed by sections 4041 and 4081 shall, insofar as applicable and not inconsistent with this section, apply in respect of the payments provided for in this section to the same extent as if such payments constituted refunds of overpayments of the tax so imposed.

Amended 1993, 2004

2004 Pub. L. 108-357 Pub. L. 108–357, § 853(d)(2)(J), substituted “and 4081” for “, 4081, and 4091”.
1993 Pub. L. 103-66 Pub. L. 103–66, § 13242(d)(29), substituted “sections 4041, 4081, and 4091” for “section 4041”.

(2) Examination of books and witnesses For the purpose of ascertaining the correctness of any claim made under this section, or the correctness of any payment made in respect of any such claim, the Secretary shall have the authority granted by paragraphs (1), (2), and (3) of section 7602(a) (relating to examination of books and witnesses) as if the claimant were the person liable for tax.

Amended 1984, 1989

1989 Pub. L. 101-239 Pub. L. 101–239, § 7841(d)(20), substituted “section 7602(a)” for “section 7602”.
1984 Pub. L. 98-369 Pub. L. 98–369, § 911(d)(2)(E), which directed the amendment of subsec. (k)(2) by substituting “(h)(2)” for ‘(g)(2)” was executed to subsec. (j)(2) to reflect the probable intent of Congress.

(k) Income tax credit in lieu of payment

Amended 1980, 1983, 1984, 1986

1986 Pub. L. 99-514 Pub. L. 99–514, § 1703(e)(1)(A), redesignated subsec. (j) as (k). Former subsec. (k) redesignated (l).
1984 Pub. L. 98-369 Pub. L. 98–369, § 911(b), redesignated former subsec. (j), relating to special rules with respect to noncommercial aviation, as (k). Former subsec. (k), relating to regulations, redesignated (l).
1984 Pub. L. 98-369 Pub. L. 98–369, § 734(c)(2), redesignated former subsec. (j), relating to regulations, as (k). Former subsec. (k), relating to termination of subsections, redesignated (l).
1983 Pub. L. 97-424 Pub. L. 97–424, § 516(b)(5), added subsec. (k). Former subsec. (k) redesignated (l).
1980 Pub. L. 96-223 Pub. L. 96–223, § 232(d)(1)(A), redesignated former subsecs. (i) and (j) as (j) and (k), respectively.

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(1) Persons not subject to income tax Payment shall be made under this section only to—

Textual readingANY OF= payment may be made under this section

(A) the United States or an agency or instrumentality thereof, a State, a political subdivision of a State, or any agency or instrumentality of one or more States or political subdivisions, or

(B) an organization exempt from tax under section 501(a) (other than an organization required to make a return of the tax imposed under subtitle A for its taxable year).

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(2) Exception Paragraph (1) shall not apply to a payment of a claim filed under paragraph (2), (3), or (4) of subsection (i).

Amended 1986, 1988, 1993, 1998

1998 Pub. L. 105-178 Pub. L. 105–178, § 9009(b)(2), reenacted heading without change and amended text of par. (2) generally. Prior to amendment, text read as follows: “Paragraph (1) shall not apply to a payment of a claim filed under paragraph (2), (3), (4), or (5) of subsection (i).”
1993 Pub. L. 103-66 Pub. L. 103–66, § 13242(c)(2)(C), substituted “(4), or (5)” for “or (4)”.
1988 Pub. L. 100-647 Pub. L. 100–647, § 3002(b), substituted “paragraph (2), (3), or (4)” for “paragraph (2) or (3)”.
1988 Pub. L. 100-647 Pub. L. 100–647, § 1017(c)(10), substituted “paragraph (2) or (3) of subsection (i).” for “subsection” and all that followed, thereby effecting the purpose of the amendment contained in section 1703(e)(2)(E) of Pub. L. 99–514. See 1986 Amendment note below.
1986 Pub. L. 99-514 Pub. L. 99–514, § 1703(e)(2)(E), which directed the substitution of “(i)(2)” for “subsection (h)(2)” in subsec. (i)(2) (as so redesignated), was executed to subsec. (k)(2), the only place in the section where “subsection (h)(2)” appeared, to reflect the probable intent of Congress. See 1988 Amendment note above.
1986 Pub. L. 99-514 Pub. L. 99–514, § 1703(d)(1)(B)(iv), substituted “subsection (h)(2) or (h)(3)” for “subsection (h)(2)”.

(3) Allowance of credit against income tax For allowances of credit against the income tax imposed by subtitle A for fuel used or resold by the purchaser, see section 34.

Amended 1983

1983 Pub. L. 97-473 Pub. L. 97–473 purported to add par. (3). See par. below for subsec. (l)(3).

(l) Nontaxable uses of diesel fuel and kerosene

Amended 1983, 1984, 1986, 1987, 1993, 1997, 2005, 2006

2006 Pub. L. 109-432 Pub. L. 109–432, § 420(b)(1), redesignated par. (6) as (5) and struck out former par. (5), which related to refunds for kerosene used in noncommercial aviation.
2005 Pub. L. 109-59 Pub. L. 109–59, § 11161(b)(3)(B), substituted “and kerosene” for “, kerosene and aviation fuel” in heading.
2005 Pub. L. 109-59 Pub. L. 109–59, § 11162(b), struck out “farmers and” before “State and local governments” in heading.
2005 Pub. L. 109-59 Pub. L. 109–59, § 11161(b)(2)(B), redesignated par. (5) as (6).
2005 Pub. L. 109-59 Pub. L. 109–59, § 11162(a), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “Paragraph (1) shall not apply to diesel fuel or kerosene used—
“(i) on a farm for farming purposes (within the meaning of section 6420(c)), or
“(ii) by a State or local government.”
2005 Pub. L. 109-59 Pub. L. 109–59, § 11161(b)(3)(F), substituted “kerosene used in aviation” for “aviation-grade kerosene” in introductory provisions.
2005 Pub. L. 109-59 Pub. L. 109–59, § 11163(c)(1), substituted “Except as provided in subparagraph (D), the amount” for “The amount” in introductory provisions.
2005 Pub. L. 109-59 Pub. L. 109–59, § 11163(c)(2), added subpar. (D).
1997 Pub. L. 105-34 Pub. L. 105–34, § 1032(c)(3)(D), inserted “, kerosene,” after “diesel fuel” in heading.
1993 Pub. L. 103-66 Pub. L. 103–66, § 13242(d)(31), amended subsec. heading and headings and text of pars. (1) to (4) generally. Prior to amendment, pars. (1) to (4) read as follows:
1993 “(1) In general.—Except as provided in subsection (k) and in paragraphs (3) and (4) of this subsection, if any fuel on which tax has been imposed by section 4091 is used by any person in a nontaxable use, the Secretary shall pay (without interest) to the ultimate purchaser of such fuel an amount equal to the aggregate amount of tax imposed on such fuel under section 4091.
1993 “(2) Nontaxable use.—For purposes of this subsection, the term ‘nontaxable use’ means, with respect to any fuel, any use of such fuel if such use is exempt under section 4041 from the taxes imposed by subsections (a)(1) and (c)(1) of section 4041 (other than by reason of the imposition of tax on any sale thereof).
1993 “(3) No refund of certain taxes on fuel used in diesel-powered trains.—In the case of fuel used in a diesel-powered train, paragraph (1) shall not apply to so much of the tax imposed by section 4091 as is attributable to the Leaking Underground Storage Tank Trust Fund financing rate and the diesel fuel deficit reduction rate imposed by such section. The preceding sentence shall not apply in the case of fuel sold for exclusive use by a State or any political subdivision thereof.
1993 “(4) No refund of leaking underground storage tank trust fund taxes on fuel used in commercial aviation.—In the case of fuel used in commercial aviation (as defined in section 4093(c)(2)(B)) (other than supplies for vessels or aircraft within the meaning of section 4221(d)(3)), paragraph (1) shall not apply to so much of the tax imposed by section 4091 as is attributable to the Leaking Underground Storage Tank Trust Fund financing rate imposed by such section.”
1993 Pub. L. 103-66 Pub. L. 103–66, § 13241(f)(9), added pars. (3) and (4) and struck out former pars. (3) and (4) which read as follows:
1993 “(3) No refund of leaking underground storage tank trust fund financing tax.—Paragraph (1) shall not apply to so much of the tax imposed by section 4091 as is attributable to the Leaking Underground Storage Tank Trust Fund financing rate imposed by such section in the case of—
“(A) fuel used in a diesel-powered train, and
“(B) fuel used in any aircraft (except as supplies for vessels or aircraft within the meaning of section 4221(d)(3)).
1993 “(4) No refund of deficit reduction tax on fuel used in trains.—In the case of fuel used in a diesel-powered train, paragraph (1) also shall not apply to so much of the tax imposed by section 4091 as is attributable to the diesel fuel deficit reduction rate imposed by such section.” See 1996 Amendment note for subsec. (l)(4) above.
1987 Pub. L. 100-203 Pub. L. 100–203, § 10502(c)(1), added subsec. (l) and redesignated former subsecs. (l) to (n) as (m) to (o), respectively.
1986 Pub. L. 99-514 Pub. L. 99–514, § 1703(e)(1)(A), redesignated subsec. (k) as (l). Former subsec. (l) redesignated (m).
1984 Pub. L. 98-369 Pub. L. 98–369, § 911(b), redesignated former subsec. (k), relating to regulations, as (l). Former subsec. (l), relating to termination of subsections, redesignated (m).
1984 Pub. L. 98-369 Pub. L. 98–369, § 734(c)(2), redesignated former subsec. (k), relating to termination of subsections, as (l). Former subsec. (l), relating to cross references, redesignated (m).
1983 Pub. L. 97-424 Pub. L. 97–424, § 516(b)(5), redesignated former subsec. (k) as (l).

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(1) In general Except as otherwise provided in this subsection and in subsection (k), if any diesel fuel or kerosene on which tax has been imposed by section 4041 or 4081 is used by any person in a nontaxable use, the Secretary shall pay (without interest) to the ultimate purchaser of such fuel an amount equal to the aggregate amount of tax imposed on such fuel under section 4041 or 4081, as the case may be, reduced by any payment made to the ultimate vendor under paragraph (4)(C)(i).

Amended 1990, 1997, 2004, 2006

2006 Pub. L. 109-432 Pub. L. 109–432, § 420(b)(4), substituted “paragraph (4)(C)(i)” for “paragraph (4)(B)”.
2004 Pub. L. 108-357 Pub. L. 108–357, § 853(d)(2)(K)(i), reenacted heading without change and amended text of par. (1) generally. Prior to amendment, text read as follows: “Except as otherwise provided in this subsection and in subsection (k), if—
“(A) any diesel fuel or kerosene on which tax has been imposed by section 4041 or 4081, or
“(B) any aviation fuel on which tax has been imposed by section 4091,
is used by any person in a nontaxable use, the Secretary shall pay (without interest) to the ultimate purchaser of such fuel an amount equal to the aggregate amount of tax imposed on such fuel under section 4041, 4081, or 4091, as the case may be.”
1997 Pub. L. 105-34 Pub. L. 105–34, § 1032(c)(3)(A), inserted “or kerosene” after “diesel fuel”.
1990 Pub. L. 101-508 Pub. L. 101–508, § 11211(b)(4)(B)(ii), inserted reference to par. (4).

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(2) Nontaxable use For purposes of this subsection, the term “nontaxable use” means any use which is exempt from the tax imposed by section 4041(a)(1) other than by reason of a prior imposition of tax.

Amended 1988, 1997, 2004, 2005

2005 Pub. L. 109-59 Pub. L. 109–59, § 11161(b)(2)(A), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “For purposes of this subsection, the term ‘nontaxable use’ means—
“(A) in the case of diesel fuel or kerosene, any use which is exempt from the tax imposed by section 4041(a)(1) other than by reason of a prior imposition of tax, and
“(B) in the case of aviation-grade kerosene—
“(i) any use which is exempt from the tax imposed by section 4041(c) other than by reason of a prior imposition of tax, or
“(ii) any use in commercial aviation (within the meaning of section 4083(b)).”
2004 Pub. L. 108-357 Pub. L. 108–357, § 853(c)(3), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “in the case of aviation fuel, any use which is exempt from the tax imposed by section 4041(c)(1) other than by reason of a prior imposition of tax.”
1997 Pub. L. 105-34 Pub. L. 105–34, § 1032(c)(3)(A), inserted “or kerosene” after “diesel fuel”.
1988 Pub. L. 100-647 Pub. L. 100–647, § 2001(d)(7)(D), inserted “under section 4041” after “exempt”.

(3) Refund of certain taxes on fuel used in diesel-powered trains For purposes of this subsection, the term “nontaxable use” includes fuel used in a diesel-powered train. The preceding sentence shall not apply with respect to—

Amended 1983

1983 Pub. L. 97-473 Pub. L. 97–473 added par. (3). Notwithstanding the directory language that par. (3) be added to subsec. (k), it was added to subsec. (l) to reflect the probable intent of Congress and the intervening redesignation of subsec. (k) as (l) by Pub. L. 97–424.

(A) the Leaking Underground Storage Tank Trust Fund financing rate under sections 4041 and 4081, and

(B) so much of the rate specified in section 4081(a)(2)(A) as does not exceed the rate applicable under section 4041(a)(1)(C)(ii).

Amended 1988, 1998, 2004

2004 Pub. L. 108-357 Pub. L. 108–357, § 241(a)(2)(D), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “so much of the rate specified in section 4081(a)(2)(A) as does not exceed—
“(i) 6.8 cents per gallon after September 30, 1993, and before October 1, 1995,
“(ii) 5.55 cents per gallon after September 30, 1995, and before November 1, 1998, and
“(iii) 4.3 cents per gallon after October 31, 1998.”
1998 Pub. L. 105-178 Pub. L. 105–178, § 9006(b)(2)(A), substituted “November 1, 1998” for “October 1, 1999”.
1998 Pub. L. 105-178 Pub. L. 105–178, § 9006(b)(2)(B), substituted “October 31, 1998” for “September 30, 1999”.
1988 Pub. L. 100-647 Pub. L. 100–647, § 2004(s)(2), inserted “(except as supplies for vessels or aircraft within the meaning of section 4221(d)(3))” after “aircraft”.

The preceding sentence shall not apply in the case of fuel sold for exclusive use by a State or any political subdivision thereof.

(4) Refunds for kerosene used in aviation

Amended 1990, 1996, 2004, 2005, 2006

2006 Pub. L. 109-432 Pub. L. 109–432, § 420(a), amended heading and text of par. (4) generally, substituting provisions relating to refunds for kerosene used in commercial aviation, refunds for kerosene used in noncommercial aviation, and payments to ultimate, registered vendor, consisting of subpars. (A) to (C), for provisions relating to refunds for kerosene used in commercial aviation and payment to ultimate, registered vendor, consisting of subpars. (A) and (B).
2005 Pub. L. 109-59 Pub. L. 109–59, § 11161(b)(3)(E)(iv), substituted “kerosene used in commercial aviation” for “aviation-grade kerosene” in heading.
2004 Pub. L. 108-357 Pub. L. 108–357, § 853(c)(1), amended heading and text of par. (4) generally. Text read as follows: “In the case of fuel used in commercial aviation (as defined in section 4092(b)) (other than supplies for vessels or aircraft within the meaning of section 4221(d)(3)), paragraph (1) shall not apply to so much of the tax imposed by section 4091 as is attributable to—
“(A) the Leaking Underground Storage Tank Trust Fund financing rate imposed by such section, and
“(B) in the case of fuel purchased after September 30, 1995, so much of the rate of tax specified in section 4091(b)(1) as does not exceed 4.3 cents per gallon.”
1996 Pub. L. 104-188 Pub. L. 104–188, § 1702(b)(2)(B), amended par. (4), as in effect before the amendments made by the Revenue Reconciliation Act of 1993 [ch. I, §§ 13001–13444, of title XIII of Pub. L. 103–66], by inserting before the period “unless such fuel was used by a State or any political subdivision thereof”. See 1993 Amendment note below for subsec. (l).
1990 Pub. L. 101-508 Pub. L. 101–508, § 11211(b)(4)(B)(i), added par. (4).

(A) Kerosene used in commercial aviation In the case of kerosene used in commercial aviation (as defined in section 4083(b)) (other than supplies for vessels or aircraft within the meaning of section 4221(d)(3)), paragraph (1) shall not apply to so much of the tax imposed by section 4041 or 4081, as the case may be, as is attributable to—

Amended 2005

2005 Pub. L. 109-59 Pub. L. 109–59, § 11161(b)(3)(E)(i), struck out “aviation-grade” before “kerosene” in introductory provisions.

(i) the Leaking Underground Storage Tank Trust Fund financing rate imposed by such section, and

(ii) so much of the rate of tax specified in section 4041(c) or 4081(a)(2)(A)(iii), as the case may be, as does not exceed 4.3 cents per gallon.

Amended 2005, 2007

2007 Pub. L. 110-172 Pub. L. 110–172, § 11(a)(38), which directed substitution of “section 4081(a)(2)(A)(iii)” for “section 4081(a)(2)(iii)”, could not be executed, because “section 4081(a)(2)(iii)” did not appear subsequent to amendment by Pub. L. 109–432, § 420(a). See 2006 Amendment note below.
2005 Pub. L. 109-59 Pub. L. 109–59, § 11161(b)(3)(E)(ii), substituted “section 4081(a)(2)(iii)” for “section 4081(a)(2)(A)(iv)”.

(B) Kerosene used in noncommercial aviation In the case of kerosene used in aviation that is not commercial aviation (as so defined) (other than any use which is exempt from the tax imposed by section 4041(c) other than by reason of a prior imposition of tax), paragraph (1) shall not apply to—

Amended 2005

2005 Pub. L. 109-59 Pub. L. 109–59, § 11161(b)(3)(E)(iii), substituted “kerosene used in commercial aviation as described in subparagraph (A)” for “aviation-grade kerosene” in introductory provisions.

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(i) any tax imposed by subsection (c) or (d)(2) of section 4041, and

(ii) so much of the tax imposed by section 4081 as is attributable to—

(I) the Leaking Underground Storage Tank Trust Fund financing rate imposed by such section, and

(II) so much of the rate of tax specified in section 4081(a)(2)(A)(iii) as does not exceed the rate specified in section 4081(a)(2)(C)(ii).

(i) In general With respect to any kerosene used in aviation (other than kerosene described in clause (ii) or kerosene to which paragraph (5) applies), if the ultimate purchaser of such kerosene waives (at such time and in such form and manner as the Secretary shall prescribe) the right to payment under paragraph (1) and assigns such right to the ultimate vendor, then the Secretary shall pay the amount which would be paid under paragraph (1) to such ultimate vendor, but only if such ultimate vendor—

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(I) is registered under section 4101, and

(II) meets the requirements of subparagraph (A), (B), or (D) of section 6416(a)(1).

(ii) Payments for kerosene used in noncommercial aviation The amount which would be paid under paragraph (1) with respect to any kerosene to which subparagraph (B) applies shall be paid only to the ultimate vendor of such kerosene. A payment shall be made to such vendor if such vendor—

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(I) is registered under section 4101, and

(II) meets the requirements of subparagraph (A), (B), or (D) of section 6416(a)(1).

(5) Registered vendors to administer claims for refund of diesel fuel or kerosene sold to State and local governments

Amended 1993, 1997, 2005, 2006

2006 Pub. L. 109-432 Pub. L. 109–432, § 420(b)(1), redesignated par. (6) as (5) and struck out former par. (5), which related to refunds for kerosene used in noncommercial aviation.
2005 Pub. L. 109-59 Pub. L. 109–59, § 11161(b)(2)(B), added par. (5). Former par. (5) redesignated (6).
1997 Pub. L. 105-34 Pub. L. 105–34, § 1032(c)(3)(A), inserted “or kerosene” after “diesel fuel” in heading.
1993 Pub. L. 103-66 Pub. L. 103–66, § 13242(c)(1), added par. (5).

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(A) In general Paragraph (1) shall not apply to diesel fuel or kerosene used by a State or local government.

Amended 1997

1997 Pub. L. 105-34 Pub. L. 105–34, § 1032(c)(3)(A), inserted “or kerosene” after “diesel fuel” in introductory provisions.

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(B) Sales of kerosene not for use in motor fuel Paragraph (1) shall not apply to kerosene (other than kerosene used in aviation) sold by a vendor—

Amended 1997, 2004

2004 Pub. L. 108-357 Pub. L. 108–357, § 853(d)(2)(K)(ii), substituted “Paragraph (1) shall not apply to kerosene (other than aviation-grade kerosene)” for “Paragraph (1)(A) shall not apply to kerosene” in introductory provisions.
1997 Pub. L. 105-34 Pub. L. 105–34, § 1032(c)(3)(B), added subpar. (B) and redesignated former subpar. (B) as (C).

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(i) for any use if such sale is from a pump which (as determined under regulations prescribed by the Secretary) is not suitable for use in fueling any diesel-powered highway vehicle or train, or

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(ii) to the extent provided by the Secretary, for blending with heating oil to be used during periods of extreme or unseasonable cold.

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(C) Payment to ultimate, registered vendor Except as provided in subparagraph (D), the amount which would (but for subparagraph (A) or (B)) have been paid under paragraph (1) with respect to any fuel shall be paid to the ultimate vendor of such fuel, if such vendor—

Amended 1997

1997 Pub. L. 105-34 Pub. L. 105–34, § 1032(c)(3)(B), (C), redesignated subpar. (B) as (C) and substituted “subparagraph (A) or (B)” for “subparagraph (A)” in introductory provisions.

(i) is registered under section 4101, and

(ii) meets the requirements of subparagraph (A), (B), or (D) of section 6416(a)(1).

(D) Credit card issuer For purposes of this paragraph, if the purchase of any fuel described in subparagraph (A) (determined without regard to the registration status of the ultimate vendor) is made by means of a credit card issued to the ultimate purchaser, the Secretary shall pay to the person extending the credit to the ultimate purchaser the amount which would have been paid under paragraph (1) (but for subparagraph (A)), but only if such person meets the requirements of clauses (i), (ii), and (iii) of section 6416(a)(4)(B). If such clause (i), (ii), or (iii) is not met by such person extending the credit to the ultimate purchaser, then such person shall collect an amount equal to the tax from the ultimate purchaser and only such ultimate purchaser may claim such amount.

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(m) Diesel fuel used to produce emulsion

Amended 1984, 1986, 1987, 1988, 1993, 1998, 2005

2005 Pub. L. 109-58 Pub. L. 109–58, § 1343(b)(1), added subsec. (m) and redesignated former subsec. (m) as (n). Former subsec. (n) redesignated (o).
1998 Pub. L. 105-206 Pub. L. 105–206, § 6023(26)(A), redesignated subsecs. (n), (p), (q), and (r) as (m), (n), (o), and (p), respectively.
1993 Pub. L. 103-66 Pub. L. 103–66, § 13241(f)(10), struck out heading and text of subsec. (m). Text read as follows: “For purposes of subsection (a), in the case of gasoline—
“(1) on which tax was imposed under section 4041(c)(2),
“(2) on which tax was not imposed under section 4081, and
“(3) which was not used as an off-highway business use (within the meaning of section 6421(e)(2)),
the amount of the payment under subsection (a) shall be an amount equal to the amount of gasoline used as described in subsection (a) or resold multiplied by the rate equal to the excess of the rate of tax imposed by section 4041(c)(2) over the rate of tax imposed by section 4081.”
1988 Pub. L. 100-647 Pub. L. 100–647, § 1017(c)(3), substituted “6421(e)(2)” for ‘6421(d)(2)”.
1987 Pub. L. 100-203 Pub. L. 100–203, § 10502(c)(1), added subsec. (l) and redesignated former subsecs. (l) to (n) as (m) to (o), respectively.
1986 Pub. L. 99-514 Pub. L. 99–514, § 1703(e)(1)(A), redesignated subsec. (l) as (m). Former subsec. (m) redesignated (n).
1986 Pub. L. 99-499 Pub. L. 99–499, § 521(c)(3)(A), substituted “Except with respect to taxes imposed by section 4041(d) and section 4081 at the Leaking Underground Storage Tank Trust Fund financing rate, subsections” for “Subsection”.
1984 Pub. L. 98-369 Pub. L. 98–369, § 911(b), (d)(2)(F), redesignated former subsec. (l), relating to termination of subsections, as (m) and substituted “(d), and (g)” for “and (d)” in heading and text. Former subsec. (m), relating to cross references, redesignated (n).
1984 Pub. L. 98-369 Pub. L. 98–369, § 734(c)(2), redesignated former subsec. (l), relating to cross references, as (m).

(1) In general Except as provided in subsection (k), if any diesel fuel on which tax was imposed by section 4081 at the regular tax rate is used by any person in producing an emulsion described in section 4081(a)(2)(D) which is sold or used in such person’s trade or business, the Secretary shall pay (without interest) to such person an amount equal to the excess of the regular tax rate over the incentive tax rate with respect to such fuel.

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(2) Definitions For purposes of paragraph (1)—

(A) Regular tax rate The term “regular tax rate” means the aggregate rate of tax imposed by section 4081 determined without regard to section 4081(a)(2)(D).

(B) Incentive tax rate The term “incentive tax rate” means the aggregate rate of tax imposed by section 4081 determined with regard to section 4081(a)(2)(D).

(n) Regulations The Secretary may by regulations prescribe the conditions, not inconsistent with the provisions of this section, under which payments may be made under this section.

Amended 1984, 1986, 1987, 1998, 2005

2005 Pub. L. 109-58 Pub. L. 109–58, § 1343(b)(1), added subsec. (m) and redesignated former subsec. (m) as (n). Former subsec. (n) redesignated (o).
1998 Pub. L. 105-206 Pub. L. 105–206, § 6023(26)(A), redesignated subsecs. (n), (p), (q), and (r) as (m), (n), (o), and (p), respectively.
1987 Pub. L. 100-203 Pub. L. 100–203, § 10502(c)(1), added subsec. (l) and redesignated former subsecs. (l) to (n) as (m) to (o), respectively.
1986 Pub. L. 99-514 Pub. L. 99–514, § 1703(e)(1)(A), (2)(C), (D), redesignated subsec. (m) as (n) and substituted “(g), and (h)” for “and (g)” in heading and text. Former subsec. (n) redesignated (o).
1986 Pub. L. 99-499 Pub. L. 99–499, § 521(c)(3)(B)(i), added subsec. (n). Former subsec. (n) redesignated (o).
1984 Pub. L. 98-369 Pub. L. 98–369, § 911(b), redesignated former subsec. (m), relating to cross references, as (n).

(o) Payments for taxes imposed by section 4041(d) For purposes of subsections (a), (b), and (c), the taxes imposed by section 4041(d) shall be treated as imposed by section 4041(a).

Amended 1986, 1987, 1990, 1991, 1993, 1998, 2005

2005 Pub. L. 109-58 Pub. L. 109–58, § 1343(b)(1), redesignated subsec. (n) as (o). Former subsec. (o) redesignated (p).
2005 Pub. L. 109-59 Pub. L. 109–59, § 11151(a)(2), which directed the redesignation of subsec. (p) as (o) and the striking of former subsec. (o), to be treated as not having been enacted. See Construction of Amendment by Pub. L. 109–59 note below.
1998 Pub. L. 105-206 Pub. L. 105–206, § 6023(26)(A), redesignated subsecs. (n), (p), (q), and (r) as (m), (n), (o), and (p), respectively.
1993 Pub. L. 103-66 Pub. L. 103–66, § 13241(f)(10), struck out heading and text of subsec. (o). Text read as follows: “Except with respect to taxes imposed by section 4041(d) and sections 4081 and 4091 at the Leaking Underground Storage Tank Trust Fund financing rate, subsections (a), (b), (c), (d), (g), (h), and (l) shall only apply with respect to fuels purchased before 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)(8), substituted “1995” for “1993”.
1987 Pub. L. 100-203 Pub. L. 100–203, § 10502(c)(1), (6), redesignated subsec. (n) as (o) and amended it generally, substituting new heading for “Termination of subsections (a), (b), (c), (d), (g), and (h)” and amending text generally. Prior to amendment, text read as follows: “Except with respect to taxes imposed by section 4041(d) and section 4081 at the Leaking Underground Storage Tank Trust Fund financing rate, subsections (a), (b), (c), (d), (g), and (h) shall only apply with respect to fuels purchased before October 1, 1993.” Former subsec. (o) redesignated (p).
1987 Pub. L. 100-17 Pub. L. 100–17, § 502(b)(9), substituted “1993” for “1988” in subsec. (m), which was successively redesignated to subsec. (o) by Pub. L. 99–514 and Pub. L. 100–203.
1986 Pub. L. 99-514 Pub. L. 99–514, § 1703(e)(1)(A), as amended by Pub. L. 99–499, § 521(c)(3)(B)(ii), redesignated subsec. (n), as added by Pub. L. 99–499, § 521(c)(3)(B)(i), as (o). Former subsec. (o) redesignated (p).
1986 Pub. L. 99-499 Pub. L. 99–499, § 521(c)(3)(B)(i), redesignated subsec. (n) as (o).

(p) Cross references

Amended 1986, 1987, 1988, 1989, 1998, 2005, 2007

2007 Pub. L. 110-172 Pub. L. 110–172, § 11(a)(39)(A), redesignated subsec. (q) as (p) and struck out heading and text of former subsec. (p). Text of former subsec. (p) read as follows: “Except as provided in subsection (k), if—
“(1) any tax is imposed by section 4081 at a rate determined under subsection (c) thereof on gasohol (as defined in such subsection), and
“(2) such gasohol is used as a fuel in any aircraft in noncommercial aviation (as defined in section 4041(c)(2),
the Secretary shall pay (without interest) to the ultimate purchaser of such gasohol an amount equal to 1.4 cents (2 cents in the case of a mixture none of the alcohol in which consists of ethanol) multiplied by the number of gallons of gasohol so used.”
2005 Pub. L. 109-58 Pub. L. 109–58, § 1343(b)(1), redesignated subsec. (o) as (p). Former subsec. (p) redesignated (q).
2005 Pub. L. 109-59 Pub. L. 109–59, § 11151(a)(2), which directed the redesignation of subsec. (p) as (o), to be treated as not having been enacted. See Construction of Amendment by Pub. L. 109–59 note below.
1998 Pub. L. 105-206 Pub. L. 105–206, § 6023(26)(A), redesignated subsecs. (n), (p), (q), and (r) as (m), (n), (o), and (p), respectively.
1989 Pub. L. 101-239 Pub. L. 101–239, § 7822(b)(4), redesignated subsec. (q), relating to payments for taxes imposed by section 4041(d), as (p).
1988 Pub. L. 100-647 Pub. L. 100–647, § 2004(s)(3), redesignated subsec. (p), relating to gasoline used in noncommercial aviation during period rate reduction in effect, as (q). Former subsec. (q), relating to cross references, redesignated (r).
1987 Pub. L. 100-223 Pub. L. 100–223, § 405(b)(1), added subsec. (p). Former subsec. (p) redesignated (q).
1987 Pub. L. 100-203 Pub. L. 100–203, § 10502(c)(1), redesignated subsec. (o) as (p). Former subsec. (p) redesignated (q).
1986 Pub. L. 99-514 Pub. L. 99–514, § 1703(e)(1)(A), as amended by Pub. L. 99–499, § 521(c)(3)(B)(ii), redesignated subsec. (o) as (p).

(1) For civil penalty for excessive claims under this section, see section 6675.

(2) For fraud penalties, etc., see chapter 75 (section 7201 and following, relating to crimes, other offenses, and forfeitures).

(3) For treatment of an Indian tribal government as a State (and a subdivision of an Indian tribal government as a political subdivision of a State), see section 7871.