26 USC 4662 - Definitions and special rules
(a) Definitions
For purposes of this subchapter
For purposes of this subchapter
(1) Taxable chemical
Except as provided in subsection (b), the term taxable chemical means any substance
Except as provided in subsection (b), the term taxable chemical means any substance
(B) which is manufactured or produced in the United States or entered into the United States for consumption, use, or warehousing.
(3) Importer
The term importer means the person entering the taxable chemical for consumption, use, or warehousing.
The term importer means the person entering the taxable chemical for consumption, use, or warehousing.
(4) Ton
The term ton means 2,000 pounds. In the case of any taxable chemical which is a gas, the term ton means the amount of such gas in cubic feet which is the equivalent of 2,000 pounds on a molecular weight basis.
The term ton means 2,000 pounds. In the case of any taxable chemical which is a gas, the term ton means the amount of such gas in cubic feet which is the equivalent of 2,000 pounds on a molecular weight basis.
(5) Fractional part of ton
In the case of a fraction of a ton, the tax imposed by section 4661 shall be the same fraction of the amount of such tax imposed on a whole ton.
In the case of a fraction of a ton, the tax imposed by section 4661 shall be the same fraction of the amount of such tax imposed on a whole ton.
(b) Exceptions; other special rules
For purposes of this subchapter
For purposes of this subchapter
(1) Methane or butane used as a fuel
Under regulations prescribed by the Secretary, methane or butane shall be treated as a taxable chemical only if it is used otherwise than as a fuel or in the manufacture or production of any motor fuel, diesel fuel, aviation fuel, or jet fuel (and, for purposes of section 4661 (a), the person so using it shall be treated as the manufacturer thereof).
Under regulations prescribed by the Secretary, methane or butane shall be treated as a taxable chemical only if it is used otherwise than as a fuel or in the manufacture or production of any motor fuel, diesel fuel, aviation fuel, or jet fuel (and, for purposes of section 4661 (a), the person so using it shall be treated as the manufacturer thereof).
(2) Substances used in the production of fertilizer
(A) In general
In the case of nitric acid, sulfuric acid, ammonia, or methane used to produce ammonia which is a qualified fertilizer substance, no tax shall be imposed under section 4661 (a).
In the case of nitric acid, sulfuric acid, ammonia, or methane used to produce ammonia which is a qualified fertilizer substance, no tax shall be imposed under section 4661 (a).
(B) Qualified fertilizer substance
For purposes of this section, the term qualified fertilizer substance means any substance
For purposes of this section, the term qualified fertilizer substance means any substance
(i) used in a qualified fertilizer use by the manufacturer, producer, or importer,
(ii) sold for use by any purchaser in a qualified fertilizer use, or
(iii) sold for resale by any purchaser for use, or resale for ultimate use, in a qualified fertilizer use.
(C) Qualified fertilizer use
The term qualified fertilizer use means any use in the manufacture or production of fertilizer or for direct application as a fertilizer.
The term qualified fertilizer use means any use in the manufacture or production of fertilizer or for direct application as a fertilizer.
(D) Taxation of nonqualified sale or use
For purposes of section 4661 (a), if no tax was imposed by such section on the sale or use of any chemical by reason of subparagraph (A), the first person who sells or uses such chemical other than in a sale or use described in subparagraph (A) shall be treated as the manufacturer of such chemical.
For purposes of section 4661 (a), if no tax was imposed by such section on the sale or use of any chemical by reason of subparagraph (A), the first person who sells or uses such chemical other than in a sale or use described in subparagraph (A) shall be treated as the manufacturer of such chemical.
(3) Sulfuric acid produced as a byproduct of air pollution control
In the case of sulfuric acid produced solely as a byproduct of and on the same site as air pollution control equipment, no tax shall be imposed under section 4661.
In the case of sulfuric acid produced solely as a byproduct of and on the same site as air pollution control equipment, no tax shall be imposed under section 4661.
(4) Substances derived from coal
For purposes of this subchapter, the term taxable chemical shall not include any substance to the extent derived from coal.
For purposes of this subchapter, the term taxable chemical shall not include any substance to the extent derived from coal.
(5) Substances used in the production of motor fuel, etc.
(A) In general
In the case of any chemical described in subparagraph (D) which is a qualified fuel substance, no tax shall be imposed under section 4661 (a).
In the case of any chemical described in subparagraph (D) which is a qualified fuel substance, no tax shall be imposed under section 4661 (a).
(B) Qualified fuel substance
For purposes of this section, the term qualified fuel substance means any substance
For purposes of this section, the term qualified fuel substance means any substance
(i) used in a qualified fuel use by the manufacturer, producer, or importer,
(ii) sold for use by any purchaser in a qualified fuel use, or
(iii) sold for resale by any purchaser for use, or resale for ultimate use, in a qualified fuel use.
(C) Qualified fuel use
For purposes of this subsection, the term qualified fuel use means
For purposes of this subsection, the term qualified fuel use means
(i) any use in the manufacture or production of any motor fuel, diesel fuel, aviation fuel, or jet fuel, or
(ii) any use as such a fuel.
(D) Chemicals to which paragraph applies
For purposes of this subsection, the chemicals described in this subparagraph are acetylene, benzene, butylene, butadiene, ethylene, naphthalene, propylene, toluene, and xylene.
For purposes of this subsection, the chemicals described in this subparagraph are acetylene, benzene, butylene, butadiene, ethylene, naphthalene, propylene, toluene, and xylene.
(E) Taxation of nonqualified sale or use
For purposes of section 4661 (a), if no tax was imposed by such section on the sale or use of any chemical by reason of subparagraph (A), the first person who sells or uses such chemical other than in a sale or use described in subparagraph (A) shall be treated as the manufacturer of such chemical.
For purposes of section 4661 (a), if no tax was imposed by such section on the sale or use of any chemical by reason of subparagraph (A), the first person who sells or uses such chemical other than in a sale or use described in subparagraph (A) shall be treated as the manufacturer of such chemical.
(6) Substance having transitory presence during refining process, etc.
(A) In general
No tax shall be imposed under section 4661 (a) on any taxable chemical described in subparagraph (B) by reason of the transitory presence of such chemical during any process of smelting, refining, or otherwise extracting any substance not subject to tax under section 4661 (a).
No tax shall be imposed under section 4661 (a) on any taxable chemical described in subparagraph (B) by reason of the transitory presence of such chemical during any process of smelting, refining, or otherwise extracting any substance not subject to tax under section 4661 (a).
(B) Chemicals to which subparagraph (A) applies
The chemicals described in this subparagraph are
The chemicals described in this subparagraph are
(i) barium sulfide, cupric sulfate, cupric oxide, cuprous oxide, lead oxide, zinc chloride, and zinc sulfate, and
(ii) any solution or mixture containing any chemical described in clause (i).
(C) Removal treated as use
Nothing in subparagraph (A) shall be construed to apply to any chemical which is removed from or ceases to be part of any smelting, refining, or other extraction process.
Nothing in subparagraph (A) shall be construed to apply to any chemical which is removed from or ceases to be part of any smelting, refining, or other extraction process.
(7) Special rule for xylene
Except in the case of any substance imported into the United States or exported from the United States, the term xylene does not include any separated isomer of xylene.
Except in the case of any substance imported into the United States or exported from the United States, the term xylene does not include any separated isomer of xylene.
(8) Recycled chromium, cobalt, and nickel
(A) In general
No tax shall be imposed under section 4661 (a) on any chromium, cobalt, or nickel which is diverted or recovered in the United States from any solid waste as part of a recycling process (and not as part of the original manufacturing or production process).
No tax shall be imposed under section 4661 (a) on any chromium, cobalt, or nickel which is diverted or recovered in the United States from any solid waste as part of a recycling process (and not as part of the original manufacturing or production process).
(B) Exemption not to apply while corrective action uncompleted
Subparagraph (A) shall not apply during any period that required corrective action by the taxpayer at the unit at which the recycling occurs is uncompleted.
Subparagraph (A) shall not apply during any period that required corrective action by the taxpayer at the unit at which the recycling occurs is uncompleted.
(C) Required corrective action
For purposes of subparagraph (B), required corrective action shall be treated as uncompleted during the period
For purposes of subparagraph (B), required corrective action shall be treated as uncompleted during the period
(i) beginning on the date that the corrective action is required by the Administrator or an authorized State pursuant to
(I) a final permit under section 3005 of the Solid Waste Disposal Act or a final order under section 3004 or 3008 of such Act, or
(II) a final order under section 106 of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, and
(ii) ending on the date the Administrator or such State (as the case may be) certifies to the Secretary that such corrective action has been completed.
(D) Special rule for groundwater treatment
In the case of corrective action requiring groundwater treatment, such action shall be treated as completed as of the close of the 10-year period beginning on the date such action is required if such treatment complies with the permit or order applicable under subparagraph (C)(i) throughout such period. The preceding sentence shall cease to apply beginning on the date such treatment ceases to comply with such permit or order.
In the case of corrective action requiring groundwater treatment, such action shall be treated as completed as of the close of the 10-year period beginning on the date such action is required if such treatment complies with the permit or order applicable under subparagraph (C)(i) throughout such period. The preceding sentence shall cease to apply beginning on the date such treatment ceases to comply with such permit or order.
(E) Solid waste
For purposes of this paragraph, the term solid waste has the meaning given such term by section 1004 of the Solid Waste Disposal Act, except that such term shall not include any byproduct, coproduct, or other waste from any process of smelting, refining, or otherwise extracting any metal.
For purposes of this paragraph, the term solid waste has the meaning given such term by section 1004 of the Solid Waste Disposal Act, except that such term shall not include any byproduct, coproduct, or other waste from any process of smelting, refining, or otherwise extracting any metal.
(9) Substances used in the production of animal feed
(A) In general
In the case of
In the case of
(i) nitric acid,
(ii) sulfuric acid,
(iii) ammonia, or
(iv) methane used to produce ammonia,
which is a qualified animal feed substance, no tax shall be imposed under section 4661 (a).
(B) Qualified animal feed substance
For purposes of this section, the term qualified animal feed substance means any substance
For purposes of this section, the term qualified animal feed substance means any substance
(i) used in a qualified animal feed use by the manufacturer, producer, or importer,
(ii) sold for use by any purchaser in a qualified animal feed use, or
(iii) sold for resale by any purchaser for use, or resale for ultimate use, in a qualified animal feed use.
(C) Qualified animal feed use
The term qualified animal feed use means any use in the manufacture or production of animal feed or animal feed supplements, or of ingredients used in animal feed or animal feed supplements.
The term qualified animal feed use means any use in the manufacture or production of animal feed or animal feed supplements, or of ingredients used in animal feed or animal feed supplements.
(D) Taxation of nonqualified sale or use
For purposes of section 4661 (a), if no tax was imposed by such section on the sale or use of any chemical by reason of subparagraph (A), the 1st person who sells or uses such chemical other than in a sale or use described in subparagraph (A) shall be treated as the manufacturer of such chemical.
For purposes of section 4661 (a), if no tax was imposed by such section on the sale or use of any chemical by reason of subparagraph (A), the 1st person who sells or uses such chemical other than in a sale or use described in subparagraph (A) shall be treated as the manufacturer of such chemical.
(10) Hydrocarbon streams containing mixtures of organic taxable chemicals
(A) In general
No tax shall be imposed under section 4661 (a) on any organic taxable chemical while such chemical is part of an intermediate hydrocarbon stream containing one or more organic taxable chemicals.
No tax shall be imposed under section 4661 (a) on any organic taxable chemical while such chemical is part of an intermediate hydrocarbon stream containing one or more organic taxable chemicals.
(B) Removal, etc., treated as use
For purposes of this part, if any organic taxable chemical on which no tax was imposed by reason of subparagraph (A) is isolated, extracted, or otherwise removed from, or ceases to be part of, an intermediate hydrocarbon stream
For purposes of this part, if any organic taxable chemical on which no tax was imposed by reason of subparagraph (A) is isolated, extracted, or otherwise removed from, or ceases to be part of, an intermediate hydrocarbon stream
(i) such isolation, extraction, removal, or cessation shall be treated as use by the person causing such event, and
(ii) such person shall be treated as the manufacturer of such chemical.
(C) Registration requirement
Subparagraph (A) shall not apply to any sale of any intermediate hydrocarbon stream unless the registration requirements of clauses (i) and (ii) of subsection (c)(2)(B) are satisfied.
Subparagraph (A) shall not apply to any sale of any intermediate hydrocarbon stream unless the registration requirements of clauses (i) and (ii) of subsection (c)(2)(B) are satisfied.
(D) Organic taxable chemical
For purposes of this paragraph, the term organic taxable chemical means any taxable chemical which is an organic substance.
For purposes of this paragraph, the term organic taxable chemical means any taxable chemical which is an organic substance.
(c) Use and certain exchanges by manufacturer, etc.
(1) Use treated as sale
Except as provided in subsections (b) and (e), if any person manufactures, produces, or imports any taxable chemical and uses such chemical, then such person shall be liable for tax under section 4661 in the same manner as if such chemical were sold by such person.
Except as provided in subsections (b) and (e), if any person manufactures, produces, or imports any taxable chemical and uses such chemical, then such person shall be liable for tax under section 4661 in the same manner as if such chemical were sold by such person.
(2) Special rules for inventory exchanges
(A) In general
Except as provided in this paragraph, in any case in which a manufacturer, producer, or importer of a taxable chemical exchanges such chemical as part of an inventory exchange with another person
Except as provided in this paragraph, in any case in which a manufacturer, producer, or importer of a taxable chemical exchanges such chemical as part of an inventory exchange with another person
(i) such exchange shall not be treated as a sale, and
(ii) such other person shall, for purposes of section 4661, be treated as the manufacturer, producer, or importer of such chemical.
(B) Registration requirement
Subparagraph (A) shall not apply to any inventory exchange unless
Subparagraph (A) shall not apply to any inventory exchange unless
(i) both parties are registered with the Secretary as manufacturers, producers, or importers of taxable chemicals, and
(ii) the person receiving the taxable chemical has, at such time as the Secretary may prescribe, notified the manufacturer, producer, or importer of such persons registration number and the internal revenue district in which such person is registered.
(d) Refund or credit for certain uses
(1) In general
Under regulations prescribed by the Secretary, if
Under regulations prescribed by the Secretary, if
(A) a tax under section 4661 was paid with respect to any taxable chemical, and
(B) such chemical was used by any person in the manufacture or production of any other substance which is a taxable chemical,
then an amount equal to the tax so paid shall be allowed as a credit or refund (without interest) to such person in the same manner as if it were an overpayment of tax imposed by such section. In any case to which this paragraph applies, the amount of any such credit or refund shall not exceed the amount of tax imposed by such section on the other substance manufactured or produced (or which would have been imposed by such section on such other substance but for subsection (b) or (e) of this section).
(2) Use as fertilizer
Under regulations prescribed by the Secretary, if
Under regulations prescribed by the Secretary, if
(A) a tax under section 4661 was paid with respect to nitric acid, sulfuric acid, ammonia, or methane used to make ammonia without regard to subsection (b)(2), and
(B) any person uses such substance as a qualified fertilizer substance,
then an amount equal to the excess of the tax so paid over the tax determined with regard to subsection (b)(2) shall be allowed as a credit or refund (without interest) to such person in the same manner as if it were an overpayment of tax imposed by this section.
(3) Use as qualified fuel
Under regulations prescribed by the Secretary, if
Under regulations prescribed by the Secretary, if
(A) a tax under section 4661 was paid with respect to any chemical described in subparagraph (D) of subsection (b)(5) without regard to subsection (b)(5), and
(B) any person uses such chemical as a qualified fuel substance,
then an amount equal to the excess of the tax so paid over the tax determined with regard to subsection (b)(5) shall be allowed as a credit or refund (without interest) to such person in the same manner as if it were an overpayment of tax imposed by this section.
(4) Use in the production of animal feed
Under regulations prescribed by the Secretary, if
Under regulations prescribed by the Secretary, if
(A) a tax under section 4661 was paid with respect to nitric acid, sulfuric acid, ammonia, or methane used to produce ammonia, without regard to subsection (b)(9), and
(B) any person uses such substance as a qualified animal feed substance,
then an amount equal to the excess of the tax so paid over the tax determined with regard to subsection (b)(9) shall be allowed as a credit or refund (without interest) to such person in the same manner as if it were an overpayment of tax imposed by this section.
(e) Exemption for exports of taxable chemicals
(1) Tax-free sales
(A) In general
No tax shall be imposed under section 4661 on the sale by the manufacturer or producer of any taxable chemical for export, or for resale by the purchaser to a second purchaser for export.
No tax shall be imposed under section 4661 on the sale by the manufacturer or producer of any taxable chemical for export, or for resale by the purchaser to a second purchaser for export.
(2) Credit or refund where tax paid
(A) In general
Except as provided in subparagraph (B), if
Except as provided in subparagraph (B), if
(i) tax under section 4661 was paid with respect to any taxable chemical, and
(ii)
(I) such chemical was exported by any person, or
credit or refund (without interest) of such tax shall be allowed or made to the person who paid such tax.
(B) Condition to allowance
No credit or refund shall be allowed or made under subparagraph (A) unless the person who paid the tax establishes that he
No credit or refund shall be allowed or made under subparagraph (A) unless the person who paid the tax establishes that he
(i) has repaid or agreed to repay the amount of the tax to the person who exported the taxable chemical or taxable substance (as so defined), or
(ii) has obtained the written consent of such exporter to the allowance of the credit or the making of the refund.
(3) Refunds directly to exporter
The Secretary shall provide, in regulations, the circumstances under which a credit or refund (without interest) of the tax under section 4661 shall be allowed or made to the person who exported the taxable chemical or taxable substance, where
The Secretary shall provide, in regulations, the circumstances under which a credit or refund (without interest) of the tax under section 4661 shall be allowed or made to the person who exported the taxable chemical or taxable substance, where
(A) the person who paid the tax waives his claim to the amount of such credit or refund, and
(B) the person exporting the taxable chemical or taxable substance provides such information as the Secretary may require in such regulations.
(4) Regulations
The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this subsection.
The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this subsection.
(f) Disposition of revenues from Puerto Rico and the Virgin Islands
The provisions of subsections (a)(3) and (b)(3) of section 7652 shall not apply to any tax imposed by section 4661.
The provisions of subsections (a)(3) and (b)(3) of section 7652 shall not apply to any tax imposed by section 4661.