# Pub. L. 95-618: changes to the Internal Revenue Code 1978-11-09, 92 Stat. 3191. Source: . ## Legislative history - Bill: [H.R. 5263](https://www.congress.gov/bill/95th-congress/house-bill/5263) ## § 34: Certain uses of gasoline and special fuels - § 34(a)(3): Pub. L. 95–618 substituted “for certain nontaxable purposes” for “otherwise than in a highway motor vehicle”. ## § 46: Amount of credit - § 46: Pub. L. 95–618, § 301(a)(1), among other changes, inserted provisions relating to an alternative energy property tax credit which would pay for a certain percentage of the cost of equipment which uses sources of energy other than oil and gas and of associated pollution control, handling, and preparation equipment. - § 46: Pub. L. 95–618, § 301(c)(1), added par. (10). - § 46: Pub. L. 95–618, § 301(a)(2)(A), substituted “For the period beginning on January 1, 1981, in the case of any property” for “To the extent that subsection (a)(2)(C) applies to property” and inserted provisions that the preceding sentence not apply for purposes of applying the energy percentage. - § 46: Pub. L. 95–618, § 241(a), added par. (6). - § 46: Pub. L. 95–618, § 301(a)(2)(B), substituted “, the Tax Reform Act of 1976, and the Energy Tax Act of 1978” for “and the Tax Reform Act of 1976”. ## § 47: Rehabilitation credit - § 47(a): Pub. L. 95–618, § 241(b)(1), added par. (4), redesignated former par. (4) as (5) and substituted “paragraph (2) or (4)” for “paragraph (2)”. - § 47(a): Pub. L. 95–618, § 241(b)(3), substituted “paragraph (5)” for “paragraph (4)”. ## § 48: Energy credit - § 48(a)(1): Pub. L. 95–618, § 301(d)(1), inserted “(other than an air conditioning or heating unit)” after “personal property”. - § 48(a)(10): Pub. L. 95–618, § 301(d)(2), added par. (10). - § 48: Pub. L. 95–618, § 301(b), added subsecs. (l) and (m) and redesignated former subsec. (l) as (n). - § 48: Pub. L. 95–618, § 301(b), redesignated former subsec. (l) as (n). ## § 140: Cross references to other Acts - § 140: Pub. L. 95–618 renumbered section 124 of this title as this section. ## § 167: Depreciation - § 167: Pub. L. 95–618, § 301(d)(3), added subsec. (p). Former subsec. (p) redesignated (r). - § 167: Pub. L. 95–618, § 301(e)(1), added subsec. (q). - § 167: Pub. L. 95–618, § 301(d)(3), redesignated former subsec. (p) as (r). ## § 263: Capital expenditures - § 263(c): Pub. L. 95–618 inserted “and geothermal wells” after “gas wells” in heading and in text inserted provision that such regulations also grant the option to deduct as expenses intangible drilling and development costs in the case of wells drilled for any geothermal deposit (as defined in section 613(e)(3)) to the same extent and in the same manner as such expenses are deductible in the case of oil and gas wells. ## § 465: Deductions limited to amount at risk - § 465(c)(1)(E): Pub. L. 95–618, § 402(d)(1), added subpar. (E). - § 465(c)(2): Pub. L. 95–618, § 402(d)(2), added subpar. (E). ## § 613: Percentage depletion - § 613(c)(1): Pub. L. 95–618, § 403(a)(2)(A), inserted “and other than a geothermal deposit” after “oil or gas well”. - § 613(e): Pub. L. 95–618, § 403(a)(1), added subsec. (e). ## § 613A: Limitations on percentage depletion in case of oil and gas wells - § 613A(b)(1): Pub. L. 95–618, § 403(a)(2)(B), struck out subpar. (C) which related to a computation in accordance with section 613 with respect to any geothermal deposit in the United States or in a possession of the United States which is determined to be a gas well. - § 613A(b)(2), § 613A(b)(3): Pub. L. 95–618, § 403(b)(1), (2), added par. (2), redesignated former par. (2) as (3) and, as so redesignated, added subpar. (C). ## § 614: Definition of property - § 614(b): Pub. L. 95–618, § 403(a)(2)(C), inserted “or geothermal deposits” after “gas wells” in heading and introductory provisions. - § 614(c): Pub. L. 95–618, § 403(a)(2)(D), substituted “oil and gas wells and geothermal deposits” for “oil and gas wells” wherever appearing. ## § 751: Unrealized receivables and inventory items - § 751(c): Pub. L. 95–618 substituted “oil, gas, or geothermal property” for “oil or gas property” in second sentence. ## § 1016: Adjustments to basis - § 1016(a)(21): Pub. L. 95–618, § 101(b)(3), added par. (21) relating to an adjustment to the extent provided in section 44C. - § 1016(d): Pub. L. 95–618, § 201(b), added subsec. (d). Former subsec. (d) redesignated (e). - § 1016(e): Pub. L. 95–618, § 201(b), redesignated former subsec. (d) as (e). ## § 1254: Gain from disposition of interest in oil, gas, geothermal, or other mineral properties - § 1254: Pub. L. 95–618, § 402(c)(3), substituted “oil, gas, or geothermal” for “oil or gas” in section catchline. - § 1254(a)(1), § 1254(a)(2): Pub. L. 95–618, § 402(c)(1), substituted “oil, gas, or geothermal property” for “oil or gas property” wherever appearing. - § 1254(a)(3): Pub. L. 95–618, § 402(c)(2), substituted “Oil, gas, or geothermal” for “Oil or gas” in heading and in text substituted “The term ‘oil, gas, or geothermal property’ means” for “The term ‘oil or gas property’ means”. ## § 4041: Imposition of tax - § 4041(b): 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). - § 4041(k): Pub. L. 95–618, § 221(b)(1), added subsec. (k). ## § 4064: Gas guzzler tax - Enacted 26 U.S.C. § 4064. ## § 4081: Imposition of tax - § 4081(c): Pub. L. 95–618 added subsec. (c). ## § 4217: Leases - § 4217(e): Pub. L. 95–618 added subsec. (e). ## § 4221: Certain tax-free sales - § 4221(a): Pub. L. 95–618, § 201(c)(1), inserted provision that paragraphs (4) and (5) not apply to the tax imposed by section 4064. - § 4221(d)(7): Pub. L. 95–618, § 233(c)(2), added par. (7). - § 4221(e): Pub. L. 95–618, § 233(c)(1), substituted provisions relating to the applicability of the taxes imposed by section 4071(a)(1) and (3) in the case of tires or inner tubes for tires sold for use by the purchaser on or in connection with a qualified bus and the tax imposed by section 4071(a)(4) in the case of tread rubber sold for use by the purchaser in the recapping or retreading of any tire to be used by the purchaser on or in connection with a qualified bus for provisions relating to the applicability of the tax imposed by section 4061(a) to a bus sold to any person for use exclusively in transporting students and employees of schools operated by State or local governments or by nonprofit educational organizations. - § 4221(e): Pub. L. 95–618, § 232(a), added par. (6). ## § 4222: Registration - § 4222(d): Pub. L. 95–618 substituted “4063(a)(7), 4063(b), 4064(b)(1)(C),” for “4063(a)(6) and (7), 4063(b),”. ## § 4293: Exemption for United States and possessions - § 4293: Pub. L. 95–618 substituted “taxes imposed by sections 4064 and 4121” for “tax imposed by section 4121”. ## § 4483: Exemptions - § 4483(c): Pub. L. 95–618 inserted “(as in effect on the day before the date of the enactment of the Energy Tax Act of 1978)” after “section 6421(b)(2)”. ## § 6096: Designation by individuals - § 6096(b): Pub. L. 95–618 inserted reference to section 44C. ## § 6401: Amounts treated as overpayments - § 6401: Pub. L. 95–618 added subsec. (d). ## § 6412: Floor stocks refunds - § 6412(a)(1): Pub. L. 95–618 struck out “and buses” after “Trucks” in heading. ## § 6416: Certain taxes on sales and services - § 6416(b)(2): Pub. L. 95–618 substituted in subpar. (I) “in the case of any article taxable under section 4061(b), sold for use by the purchaser on or in connection with an automobile bus” for “in the case of a bus chasis or body taxable under section 4061(a), sold to any person for use as described in section 4063(a)(6) or 4221(e)(5)” and added subpars. (L) and (M) and provision following subpar. (M). ## § 6421: Gasoline used for certain nonhighway purposes, used by local transit systems, or sold for certain exempt purposes - § 6421(a): Pub. L. 95–618, § 222(a)(1)(A), substituted “Except as provided in subsection (i), if gasoline is used in a qualified business use” for “Except as provided in subsection (i), if gasoline is used otherwise than as a fuel in a highway vehicle (1) 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 (2) which, in the case of a vehicle owned by the United States, is used on the highway”. - § 6421(b): Pub. L. 95–618, § 233(a)(1), among other changes, provided for the refund or credit of the taxes paid on gasoline but only to the extent such gasoline is used in a bus engaged in furnishing (for compensation) passenger land transportation available to the general public or in school bus transportation operations. - § 6421(d)(2): Pub. L. 95–618, § 233(a)(3)(A), redesignated par. (3) as (2), and struck out former par. (2) which defined “commuter fare revenue”. - § 6421(d)(3): Pub. L. 95–618, §§ 222(a)(1)(B), 233(a)(3)(A), added par. (3) and redesignated former par. (3) as (2). ## § 6427: Fuels not used for taxable purposes - § 6427(b): Pub. L. 95–618, among other changes, provided for the refund or credit of the taxes paid on fuel pursuant to section 4041(a) or (b) but only to the extent such fuel is used in a bus engaged in furnishing (for compensation) passenger land transportation available to the general public or in school bus transportation operations. ## § 6504: Cross references - § 6504(9): Pub. L. 95–618 substituted “used for certain nontaxable purposes” for “not used in highway motor vehicles”. ## § 6675: Excessive claims with respect to the use of certain fuels - § 6675(a): Pub. L. 95–618 substituted “used for certain nontaxable purposes” for “not used in highway motor vehicles”.