# Pub. L. 96-223: changes to the Internal Revenue Code 1980-04-02, 94 Stat. 278. Source: . ## Legislative history - Bill: [H.R. 3919](https://www.congress.gov/bill/96th-congress/house-bill/3919) ## § 34: Certain uses of gasoline and special fuels - § 34(a): Pub. L. 96–223 substituted “6427(i)” for “6427(h)”. - § 34(b): Pub. L. 96–223 substituted “6427(i)” for “6427(h)”. ## § 40: Alcohol, etc., used as fuel - Enacted 26 U.S.C. § 40. ## § 45K: Credit for producing fuel from a nonconventional source - Enacted 26 U.S.C. § 45K. ## § 46: Amount of credit - § 46: Pub. L. 96–223, § 221(a), revised provisions relating to energy percentage by substituting a tabular format embracing separate coverage for solar, wind, or geothermal property, ocean thermal property, qualified hydroelectric generating property, and biomass property using percentages varying between 10 and 15 percent and covering periods from Oct. 1, 1978, to Dec. 31, 1985, with longer periods for certain long-term projects and certain hydroelectric generating property for provisions that had set the energy percentage at 10 percent for the period beginning Oct. 1, 1978, and ending Dec. 31, 1982, and zero with respect to any other period. - § 46: Pub. L. 96–223, § 222(e)(2), inserted provision that in the case of any qualified hydroelectric generating property which is a fish passageway, the special rule for certain energy property embraced in the first sentence would not apply to any period after 1979 for which the energy percentage for such property is greater than zero. - § 46: Pub. L. 96–223, § 223(b)(1)(A), inserted “and” at end of cl. (i), substituted a period for “(other than solar wind energy property), and” at end of cl. (ii), and struck out cl. (iii) which had provided for the application of so much of the credit allowed by section 38 as was attributable to the application of the energy percentage to solar or wind energy property. - § 46: Pub. L. 96–223. § 223(b)(1)(B), struck out “other than solar or wind energy property” after “energy property” in heading. - § 46: Pub. L. 96–223, § 223(b)(1)(C), struck out subpar. (C) which related to a refundable credit for solar or wind energy property. ## § 48: Energy credit - § 48(a)(2)(B): Pub. L. 96–223, § 222(i)(2), added cl. (xi). - § 48(a)(10)(A): Pub. L. 96–223, § 223(a)(1), as amended by Pub. L. 97–448, § 202(c), provided that “petroleum or petroleum products” does not include petroleum coke or petroleum pitch. - § 48: Pub. L. 96–223, § 221(b)(1), substituted “For any period for which the energy percentage determined under section 46(a)(2)(C) for any energy property is greater than zero” for “For the period beginning on October 1, 1978, and ending on December 31, 1982” in provisions preceding subpar. (A) and, in subpars. (A) and (B), substituted “such energy property” and “such property” for “any energy property”. - § 48: Pub. L. 96–223, § 222(a), added cls. (vii), (viii), and (ix). - § 48: Pub. L. 96–223, § 222(b), (g)(2), struck out “(other than coke or coke gas)” after “solid fuel” in cl. (iii) and, in cl. (v), substituted provisions relating to equipment which converts coal into a substitute for a petroleum or natural gas derived feedstock for the manufacture of chemicals or other products and equipment which converts coal into methanol, ammonia, or hydroprocessed coal liquid or solid for provisions which had related simply to equipment which used coal as feedstock for the manufacture of chemicals or other products other than coke or coke gas, added cl. (ix), and, following cl. (ix), inserted provision that the equipment described in cl. (vii) includes equipment used for the storage of fuel derived from garbage at the site at which such fuel was produced from garbage. - § 48: Pub. L. 96–223, § 222(i)(1)(A), redesignated subpar. (C) as (B). Former subpar. (B), which excluded public utility property from the terms “alternative energy property”, “solar or wind energy property”, or “recycling equipment”, was struck out. - § 48: Pub. L. 96–223, § 222(i)(1)(A), (3), redesignated subpar. (D) as (C) and inserted following cl. (ii) provision that, for the purposes of the preceding sentence, in the case of property which is alternative energy property solely by reason of the amendments made by section 222(b) of the Crude Oil Windfall Profit Tax Act of 1980, “January 1, 1980” was to be substituted for “October 1, 1978”. Former subpar. (C) redesignated (B). - § 48: Pub. L. 96–223, § 222(c), added subpar. (C). - § 48: Pub. L. 96–223, § 222(d), added subpar. (L), redesignated former subpar. (L) as (M), and inserted provision that the Secretary shall not specify any property under subpar. (M) unless he determines that such specification meets the requirements of par. (9) of section 44C(c) for specification of items under section 44C(c)(4)(A)(viii). - § 48: Pub. L. 96–223, § 221(b)(2), substituted “one-half of the energy percentage determined under section 46(a)(2)(C)” for “5 percent”. - § 48: Pub. L. 96–223, § 223(c)(1), completely revised par. (11) to incorporate property financed by subsidized energy financing, effective with regard to periods after Dec. 31, 1982. Prior to the revision par. (11) read as follows: “In the case of property which is financed in whole or in part by the proceeds of an industrial development bond (within the meaning of section 103(b)(2)) the interest on which is exempt from tax under section 103, the energy percentage shall be one-half of the energy percentage determined under section 46(a)(2)(C).” - § 48: Pub. L. 96–223, § 222(e)(1), added par. (13). - § 48: Pub. L. 96–223, § 222(f), added par. (14). - § 48: Pub. L. 96–223, § 222(g)(1), added par. (15). - § 48: Pub. L. 96–223, § 222(h), added par. (16). - § 48: Pub. L. 96–223, § 222(i)(1)(B), added par. (17). ## § 87: Alcohol and biodiesel fuels credits - Enacted 26 U.S.C. § 87. ## § 103: Interest on State and local bonds - § 103(b): Pub. L. 96–223, § 242(a)(1), added subpar. (H). - § 103(b): Pub. L. 96–223, § 242(a)(2), added par. (8) and redesignated former par. (8) as (9). - § 103: Pub. L. 96–223, § 241(a), added subsec. (g). Former subsec. (g) redesignated (i). - § 103: Pub. L. 96–223, § 244(a), added subsec. (h). - § 103: Pub. L. 96–223, §§ 241(a), 244(a), redesignated former subsec. (g) as (i). ## § 164: Taxes - § 164(a): Pub. L. 96–223 added par. (5). ## § 193: Tertiary injectants - Enacted 26 U.S.C. § 193. ## § 263: Capital expenditures - § 263(a)(1)(G): Pub. L. 96–223 added subpar. (G). ## § 265: Expenses and interest relating to tax-exempt income - § 265: Pub. L. 96–223 inserted “, or to purchase or carry obligations or shares, or to make deposits or other investments, the interest on which is described in section 116(c) to the extent such interest is excludable from gross income under section 116” after “subtitle”. ## § 306: Dispositions of certain stock - § 306(a), § 306(b): Pub. L. 96–223 repealed the amendments made by Pub. L. 95–600, § 702(a)(1), (2). See 1978 Amendment notes below. ## § 381: Carryovers in certain corporate acquisitions - § 381(c): Pub. L. 96–223 added par. (27). ## § 383: Special limitations on certain excess credits, etc. - § 383: Pub. L. 96–223, § 232(b)(2)(D), in section 383, as in effect prior to amendment by Pub. L. 94–455, § 806(f)(2), as related to section 382(a) of this title, inserted reference to unused alcohol fuel credits in section catchline and reference to any unused credit of the corporation which could otherwise be carried forward under section 44E(e)(2) in text. - § 383: Pub. L. 96–223, § 232(b)(2)(C), in section 383, as amended by Pub. L. 94–455, § 806(f)(2), as related to section 382(a) of this title, inserted reference to unused alcohol fuel credits in section catchline and reference to any unused credit of the corporation under section 44E(e)(2) in text. ## § 473: Qualified liquidations of LIFO inventories - Enacted 26 U.S.C. § 473. ## § 584: Common trust funds - § 584(c)(2): Pub. L. 96–223 inserted “or interest” after “dividends” in heading and text. ## § 643: Definitions applicable to subparts A, B, C, and D - § 643(a)(7): Pub. L. 96–223 inserted “or interest” after “dividends” in heading and text. ## § 691: Recipients of income in respect of decedents - § 691(c)(2)(A), § 691(c)(2)(C): Pub. L. 96–223 repealed the amendments made by Pub. L. 94–455, § 2005(a)(4). See 1976 Amendment notes below. ## § 702: Income and credits of partner - § 702(a)(5): Pub. L. 96–223 inserted “or interest” after “dividends”. ## § 854: Limitations applicable to dividends received from regulated investment company - § 854(b): Pub. L. 96–223, § 404(b)(6), temporarily substituted “Other dividends and taxable interest” for “Other dividends” in heading, substituted “Deduction under section 243” for “General rule” in heading for par. (1), struck out “the exclusion under section 116 and” after “in computing” in text of par. (1) following subpar. (B), added par. (2), redesignated former pars. (2) and (3) as (3) and (4), respectively, and, in par. (4) as so redesignated, substituted “116(b)(2)” for “116(b)” and “116(c)(2)” for “116(c)” in subpar. (B) and added subpar. (C). ## § 857: Taxation of real estate investment trusts and their beneficiaries - § 857(c): Pub. L. 96–223 temporarily substituted “Limitations applicable to dividends received from real estate investment trusts” for “Restrictions applicable to dividends received from real estate investment trusts” in heading, designated existing provisions as par. (1), substituted “(1) Capital gain dividend.—For purposes of section 116 (relating to exclusion for dividends and interest received by individuals), a capital gain dividend (as defined in subsection (b)(3)(C)) received from a real estate investment trust shall not be considered a dividend” for “For purposes of section 116 (relating to an exclusion for dividends received by individuals) and section 243 (relating to deductions for dividends received by corporations), a dividend received from a real estate investment trust which meets the requirements of this part shall not be considered as a dividend” in par. (1) as so designated, and added pars. (2) to (6). ## § 1001: Determination of amount of and recognition of gain or loss - § 1001(e)(1): Pub. L. 96–223 repealed the amendment made by Pub. L. 95–600. See 1978 Amendment note below. ## § 1014: Basis of property acquired from a decedent - § 1014(d): Pub. L. 96–223 repealed the amendment made by Pub. L. 94–455, § 2005(a)(1). See 1976 Amendment note below. ## § 1016: Adjustments to basis - § 1016(a)(23): Pub. L. 96–223, § 401(a), repealed the amendments made by Pub. L. 94–455, § 2005(a)(3), and Pub. L. 95–600, § 702(r)(3). See 1976 and 1978 Amendment notes below. - § 1016(c): Pub. L. 96–223, § 401(c)(1), struck out provision relating to the net appreciation of in value of certain property and struck out references to section 1023 of this title. ## § 1023: Cross references ## § 1040: Transfer of certain farm, etc., real property - § 1040: Pub. L. 96–223 substituted “Use of farm, etc., property to satisfy pecuniary bequest” for “Use of certain appreciated carryover basis property to satisfy pecuniary request” in section catchline, generally revised subsecs. (a) and (b) to reflect the repeal elsewhere in the Code of carryover basis provisions, and struck out subsec. (d) which had provided that, for purposes of this section, references to carryover basis property should be treated as including a reference to property the valuation of which is determined under section 2032A. Pub. L. 96–222 added subsec. (d). ## § 1223: Holding period of property - § 1223(11): Pub. L. 96–223 repealed the amendment made by Pub. L. 95–600. See 1978 Amendment note below. ## § 1245: Gain from dispositions of certain depreciable property - § 1245(a)(2): Pub. L. 96–223, § 251(a)(2)(C)(i)–(iii), inserted references to section 193 in subpar. (D) and text following subpar. (D). - § 1245(a)(3)(D): Pub. L. 96–223, § 251(a)(2)(C)(i), inserted reference to section 193. ## § 1250: Gain from dispositions of certain depreciable realty - § 1250(b)(3): Pub. L. 96–223 inserted reference to section 193. ## § 4041: Imposition of tax - § 4041(k): Pub. L. 96–223 added par. (3). ## § 4081: Imposition of tax - § 4081(c): Pub. L. 96–223, § 232(d)(3), inserted “(or with respect to which a credit or payment was allowed or made by reason of section 6427(f)(1))” after “this subsection”. - § 4081(c): Pub. L. 96–223, § 232(b)(3)(A), inserted provision that “alcohol” does not include alcohol with a proof of less than 190 (determined without regard to any added denaturants). - § 4081(c): Pub. L. 96–223, § 232(a)(1), added par. (4). ## § 5004: Lien for tax - § 5004(a)(2)(B): Pub. L. 96–223 substituted “(11), or (12),” for “or (11),”. ## § 5005: Persons liable for tax - § 5005(d): Pub. L. 96–223 substituted “(11), or (12),” for “or (11),”. ## § 5181: Distilled spirits for fuel use - Enacted 26 U.S.C. § 5181. ## § 5182: Cross references ## § 5214: Withdrawal of distilled spirits from bonded premises free of tax or without payment of tax - § 5214(a)(12): Pub. L. 96–223 added par. (12). ## § 5601: Criminal penalties - § 5601(a)(15): Pub. L. 96–223 added par. (15). ## § 6050D: Returns relating to energy grants and financing - Enacted 26 U.S.C. § 6050D. ## § 6096: Designation by individuals - § 6096(b): Pub. L. 96–223, §§ 231(b)(2), 232(b)(3)(C), inserted reference to sections 44D and 44E. ## § 6161: Extension of time for paying tax - § 6161(b)(1): Pub. L. 96–223 inserted references to chapter 45. ## § 6211: Definition of a deficiency - § 6211(a): Pub. L. 96–223, § 101(f)(1)(A), (2), inserted references to chapter 45 in provisions preceding par. (1). - § 6211(b)(2): Pub. L. 96–223, § 101(f)(1)(B), inserted reference to chapter 45. - § 6211(b): Pub. L. 96–223, § 101(f)(3), added pars. (5) and (6). ## § 6212: Notice of deficiency - § 6212(a): Pub. L. 96–223, § 101(f)(1)(C), inserted reference to chapter 45. - § 6212(b)(1): Pub. L. 96–223, § 101(f)(4), substituted “and certain excise taxes” for “taxes imposed by chapter 42” in section catchline and inserted references to chapter 45 in two places in text. - § 6212(c)(1): Pub. L. 96–223, § 101(f)(5), substituted “of chapter 42 tax” for “or of chapter 42 tax” and inserted “, or of chapter 45 tax for the same taxable period” after “to which such petition relates”. ## § 6213: Restrictions applicable to deficiencies; petition to Tax Court - § 6213(a): Pub. L. 96–223, § 101(f)(1)(D), inserted reference to chapter 45. - § 6213(f)(1), § 6213(f)(2): Pub. L. 96–223, § 101(f)(1)(E), inserted reference to chapter 45. ## § 6214: Determinations by Tax Court - § 6214(c): Pub. L. 96–223, § 101(f)(1)(F), inserted reference to chapter 45. - § 6214(d): Pub. L. 96–223, § 101(f)(1)(G), inserted reference to chapter 45. ## § 6302: Mode or time of collection - § 6302(d): Pub. L. 96–223 designated existing cross reference as par. (1), substituted “For treatment of earned income advance amounts” for “For treatment of payment of earned income advance amounts”, and added par. (2). ## § 6344: Cross references - § 6344(a)(1): Pub. L. 96–223 inserted reference to chapter 45. ## § 6401: Amounts treated as overpayments - § 6401: Pub. L. 96–223 struck out subsec. (d) which made a cross reference to section 46(a)(9)(C) for a rule allowing a refund for excess investment credit attributable to solar or wind energy property. ## § 6427: Fuels not used for taxable purposes - § 6427(a), § 6427(b)(1), § 6427(c), § 6427(d), § 6427(e)(1): Pub. L. 96–223, § 232(d)(4)(B), substituted “subsection (i)” for “subsection (h)”. - § 6427(f), § 6427(g): 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). - § 6427(h): Pub. L. 96–223, § 232(d)(1)(A), redesignated former subsec. (g) as (h). Former subsec. (h) redesignated (i). - § 6427(i): 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). - § 6427(j), § 6427(k): Pub. L. 96–223, § 232(d)(1)(A), redesignated former subsecs. (i) and (j) as (j) and (k), respectively. ## § 6501: Limitations on assessment and collection - § 6501: Pub. L. 96–223 added subsec. (q). Former subsec. (q), as added by section 212(a) of Pub. L. 95–600, redesignated (o). Former subsec. (q), as added by section 321(b)(2) of Pub. L. 95–600, redesignated (p). ## § 6511: Limitations on credit or refund - § 6511(h): Pub. L. 96–223 added subsec. (h) and redesignated former subsec. (h) as (i). - § 6511(i): Pub. L. 96–223 redesignated former subsec. (h) as (i). ## § 6512: Limitations in case of petition to Tax Court - § 6512(a): Pub. L. 96–223, § 101(f)(6)(A), substituted “certain excise taxes” for “chapter 41, 42, 43, or 44 taxes” and “decedent, of tax imposed” for “decedent, or of tax imposed” and inserted “, or of tax imposed by chapter 45 for the same taxable period” after “to which such petition relates” in provisions preceding par. (1). - § 6512(b)(1): Pub. L. 96–223, § 101(f)(6)(B), substituted “of tax imposed by chapter 41” for “or of tax imposed by chapter 41” and inserted “, or of tax imposed by chapter 45 for the same taxable period” after “to which such petition relates”. ## § 6601: Interest on underpayment, nonpayment, or extensions of time for payment, of tax - § 6601(c): Pub. L. 96–223 substituted “certain excise tax cases” for “chapter 41, 42, 43, or 44 tax cases” in heading. ## § 6611: Interest on overpayments - § 6611(h), § 6611: Pub. L. 96–223 added subsec. (h) and redesignated former subsec. (h) as (i). ## § 6652: Failure to file certain information returns, registration statements, etc. - § 6652(b): Pub. L. 96–223 inserted reference to statement required by section 6050C (relating to information regarding windfall profit tax on crude oil). ## § 6653: Failure to pay stamp tax - § 6653: Pub. L. 96–223 substituted “, gift, or windfall profit taxes” for “or gift taxes” in heading, and in text substituted “,” for “or” before “by chapter 12” and inserted “, or by chapter 45 (relating to windfall profit tax)” before “is due to negligence”. ## § 6862: Jeopardy assessment of taxes other than income, estate, gift, and certain excise taxes - § 6862(a): Pub. L. 96–223 which directed the substitution of “the excise taxes imposed by chapters 41, 42, 43, 44, and 45” for “certain excise taxes” was executed by inserting reference to chapter 45 in view of the amendment by Pub. L. 96–222. ## § 7210: Failure to obey summons - § 7210: Pub. L. 96–223 substituted “6427(h)(2)” for “6427(g)(2)”. ## § 7422: Civil actions for refund - § 7422(e): Pub. L. 96–223 inserted reference to chapter 45. ## § 7512: Separate accounting for certain collected taxes, etc. - § 7512(a), § 7512(b), § 7512(c): Pub. L. 96–223 inserted references to tax imposed by section 4986. ## § 7603: Service of summons - § 7603: Pub. L. 96–223 substituted “6427(h)(2)” for “6427(g)(2)”. ## § 7604: Enforcement of summons - § 7604(b), § 7604(c)(2): Pub. L. 96–223 substituted “6427(h)(2)” for “6427(g)(2)”. ## § 7605: Time and place of examination - § 7605(a): Pub. L. 96–223 substituted “6427(h)(2)” for “6427(g)(2)” wherever appearing. ## § 7609: Special procedures for third-party summonses - § 7609(c)(1): Pub. L. 96–223 substituted “6427(h)(2)” for “6427(g)(2)”. ## § 7610: Fees and costs for witnesses - § 7610(c): Pub. L. 96–223 substituted “6427(h)(2)” for “6427(g)(2)”.