CHAPTER 38 —ENVIRONMENTAL TAXES
Editorial Notes
Prior Provisions
A prior
Amendments
1989—
1986—
1980—
1 Section numbers editorially supplied.
Subchapter A—Tax on Petroleum
§4611. Imposition of tax
(a) General Rule
There is hereby imposed a tax at the rate specified in subsection (c) on—
(1) crude oil received at a United States refinery, and
(2) petroleum products entered into the United States for consumption, use, or warehousing.
(b) Tax on certain uses and exportation
(1) In general
If—
(A) any domestic crude oil is used in or exported from the United States, and
(B) before such use or exportation, no tax was imposed on such crude oil under subsection (a),
then a tax at the rate specified in subsection (c) is hereby imposed on such crude oil.
(2) Exception for use on premises where produced
Paragraph (1) shall not apply to any use of crude oil for extracting oil or natural gas on the premises where such crude oil was produced.
(c) Rate of tax
(1) In general
The rate of the taxes imposed by this section is the sum of—
(A) the Hazardous Substance Superfund financing rate, and
(B) the Oil Spill Liability Trust Fund financing rate.
(2) Rates
For purposes of paragraph (1)—
(A) the Hazardous Substance Superfund financing rate is 16.4 cents a barrel, and
(B) the Oil Spill Liability Trust Fund financing rate is—
(i) in the case of crude oil received or petroleum products entered before January 1, 2017, 8 cents a barrel, and
(ii) in the case of crude oil received or petroleum products entered after December 31, 2016, 9 cents a barrel.
(3) Adjustment for inflation
(A) In general
In the case of a year beginning after 2023, the amount in paragraph (2)(A) shall be increased by an amount equal to—
(i) such amount, multiplied by
(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting "calendar year 2022" for "calendar year 2016" in subparagraph (A)(ii) thereof.
(B) Rounding
If any amount as adjusted under subparagraph (A) is not a multiple of $0.01, such amount shall be rounded to the next lowest multiple of $0.01.
(d) Persons liable for tax
(1) Crude oil received at refinery
The tax imposed by subsection (a)(1) shall be paid by the operator of the United States refinery.
(2) Imported petroleum product
The tax imposed by subsection (a)(2) shall be paid by the person entering the product for consumption, use, or warehousing.
(3) Tax on certain uses or exports
The tax imposed by subsection (b) shall be paid by the person using or exporting the crude oil, as the case may be.
[(e) Repealed. Pub. L. 117–169, title I, §13601(a)(1), Aug. 16, 2022, 136 Stat. 1981 ]
(f) Application of Oil Spill Liability Trust Fund financing rate
(1) In general
Except as provided in paragraph (2), the Oil Spill Liability Trust Fund financing rate under subsection (c) shall apply on and after April 1, 2006, or if later, the date which is 30 days after the last day of any calendar quarter for which the Secretary estimates that, as of the close of that quarter, the unobligated balance in the Oil Spill Liability Trust Fund is less than $2,000,000,000.
(2) Termination
The Oil Spill Liability Trust Fund financing rate shall not apply after December 31, 2025.
(Added
Editorial Notes
Codification
Amendments by
Amendments
2022—Subsec. (c)(2)(A).
Subsec. (c)(3).
Subsec. (e).
2020—Subsec. (f)(2).
2019—Subsec. (f)(2).
2018—Subsec. (f)(2).
2014—Subsec. (e)(2)(B).
Subsec. (e)(3)(A).
2008—Subsec. (c)(2)(B).
Subsec. (f)(1).
Subsec. (f)(2), (3).
2005—Subsec. (f).
"(1)
"(2)
1990—Subsec. (e)(1).
Subsec. (e)(2).
Subsec. (e)(3).
Subsec. (e)(3)(A).
Subsec. (e)(3)(B).
1989—Subsec. (c)(2)(A).
"(i) except as provided in clause (ii), 8.2 cents a barrel, and
"(ii) 11.7 cents a barrel in the case of the tax imposed by subsection (a)(2), and".
Subsec. (c)(2)(B).
Subsec. (f).
1988—Subsec. (f)(2)(B).
1986—Subsecs. (a), (b)(1).
Subsec. (c).
"(1)
"(2)
Subsec. (d).
Subsec. (e).
"(1) the unobligated balance in the Hazardous Substance Response Trust Fund as of such date exceeds $900,000,000, and
"(2) the Secretary, after consultation with the Administrator of the Environmental Protection Agency, determines that such unobligated balance will exceed $500,000,000 on September 30 of the following year if no tax is imposed under section 4611 or 4661 during the calendar year following the date referred to above,
then no tax shall be imposed by this section during the first calendar year beginning after the date referred to in paragraph (1)."
Subsec. (f).
Statutory Notes and Related Subsidiaries
Effective Date of 2022 Amendment
Effective Date of 2020 Amendment
Effective Date of 2019 Amendment
Effective Date of 2018 Amendment
Effective Date of 2014 Amendment
Amendment by
Effective Date of 2008 Amendment
Effective Date of 1989 Amendment
Effective Date of 1986 Amendments
"(1)
"(2)
[
Effective Date
Short Title
For short title of title II of
§4612. Definitions and special rules
(a) Definitions
For purposes of this subchapter—
(1) Crude oil
The term "crude oil" includes crude oil condensates and natural gasoline.
(2) Domestic crude oil
The term "domestic crude oil" means any crude oil produced from a well located in the United States.
(3) Petroleum product
The term "petroleum product" includes crude oil.
(4) United States
(A) In general
The term "United States" means the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, any possession of the United States, the Commonwealth of the Northern Mariana Islands, and the Trust Territory of the Pacific Islands.
(B) United States includes continental shelf areas
The principles of section 638 shall apply for purposes of the term "United States".
(C) United States includes foreign trade zones
The term "United States" includes any foreign trade zone of the United States.
(5) United States refinery
The term "United States refinery" means any facility in the United States at which crude oil is refined.
(6) Refineries which produce natural gasoline
In the case of any United States refinery which produces natural gasoline from natural gas, the gasoline so produced shall be treated as received at such refinery at the time so produced.
(7) Premises
The term "premises" has the same meaning as when used for purposes of determining gross income from the property under section 613.
(8) Barrel
The term "barrel" means 42 United States gallons.
(9) Fractional part of barrel
In the case of a fraction of a barrel, the tax imposed by section 4611 shall be the same fraction of the amount of such tax imposed on a whole barrel.
(b) Only 1 tax imposed with respect to any product
No tax shall be imposed by section 4611 with respect to any petroleum product if the person who would be liable for such tax establishes that a prior tax imposed by such section has been imposed with respect to such product.
(c) Credit where crude oil returned to pipeline
Under regulations prescribed by the Secretary, if an operator of a United States refinery—
(1) removes crude oil from a pipeline, and
(2) returns a portion of such crude oil into a stream of other crude oil in the same pipeline,
there shall be allowed as a credit against the tax imposed by section 4611 to such operator an amount equal to the product of the rate of tax imposed by section 4611 on the crude oil so removed by such operator and the number of barrels of crude oil returned by such operator to such pipeline. Any crude oil so returned shall be treated for purposes of this subchapter as crude oil on which no tax has been imposed by section 4611.
(d) Credit against portion of tax attributable to oil spill rate
There shall be allowed as a credit against so much of the tax imposed by section 4611 as is attributable to the Oil Spill Liability Trust Fund financing rate for any period an amount equal to the excess of—
(1) the sum of—
(A) the aggregate amounts paid by the taxpayer before January 1, 1987, into the Deepwater Port Liability Trust Fund and the Offshore Oil Pollution Compensation Fund, and
(B) the interest accrued on such amounts before such date, over
(2) the amount of such payments taken into account under this subsection for all prior periods.
The preceding sentence shall also apply to amounts paid by the taxpayer into the Trans-Alaska Pipeline Liability Fund to the extent of amounts transferred from such Fund into the Oil Spill Liability Trust Fund. For purposes of this subsection, all taxpayers which would be members of the same affiliated group (as defined in section 1504(a)) if section 1504(a)(2) were applied by substituting "100 percent" for "80 percent" shall be treated as 1 taxpayer.
(e) Income tax credit for unused payments into Trans-Alaska Pipeline Liability Fund
(1) In general
For purposes of section 38, the current year business credit shall include the credit determined under this subsection.
(2) Determination of credit
(A) In general
The credit determined under this subsection for any taxable year is an amount equal to the aggregate credit which would be allowed to the taxpayer under subsection (d) for amounts paid into the Trans-Alaska Pipeline Liability Fund had the Oil Spill Liability Trust Fund financing rate not ceased to apply.
(B) Limitation
(i) In general
The amount of the credit determined under this subsection for any taxable year with respect to any taxpayer shall not exceed the excess of—
(I) the amount determined under clause (ii), over
(II) the aggregate amount of the credit determined under this subsection for prior taxable years with respect to such taxpayer.
(ii) Overall limitation
The amount determined under this clause with respect to any taxpayer is the excess of—
(I) the aggregate amount of credit which would have been allowed under subsection (d) to the taxpayer for periods before the termination date specified in section 4611(f)(1), if amounts in the Trans-Alaska Pipeline Liability Fund which are actually transferred into the Oil Spill Liability Fund were transferred on January 1, 1990, and the Oil Spill Liability Trust Fund financing rate did not terminate before such termination date, over
(II) the aggregate amount of the credit allowed under subsection (d) to the taxpayer.
(3) Cost of income tax credit borne by Trust Fund
(A) In general
The Secretary shall from time to time transfer from the Oil Spill Liability Trust Fund to the general fund of the Treasury amounts equal to the credits allowed by reason of this subsection.
(B) Trust Fund balance may not be reduced below $1,000,000,000
Transfers may be made under subparagraph (A) only to the extent that the unobligated balance of the Oil Spill Liability Trust Fund exceeds $1,000,000,000. If any transfer is not made by reason of the preceding sentence, such transfer shall be made as soon as permitted under such sentence.
(4) No carryback
No portion of the unused business credit for any taxable year which is attributable to the credit determined under this subsection may be carried to a taxable year beginning on or before the date of the enactment of this paragraph.
(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 4611.
(Added
Editorial Notes
References in Text
The date of the enactment of this paragraph, referred to in subsec. (e)(4), is the date of the enactment of
Codification
Amendments by
Amendments
2018—Subsec. (e)(2)(B)(ii)(I).
1992—Subsecs. (e), (f).
1990—Subsec. (d).
1989—Subsec. (d).
1986—Subsec. (c).
Subsec. (d).
Subsec. (e).
Statutory Notes and Related Subsidiaries
Effective Date of 1992 Amendment
Effective Date of 1990 Amendment
Amendment by
Effective Date of 1986 Amendments
Amendment by
Amendment by
Executive Documents
Termination of Trust Territory of the Pacific Islands
For termination of Trust Territory of the Pacific Islands, see note set out preceding
Subchapter B—Tax on Certain Chemicals
§4661. Imposition of tax
(a) General rule
There is hereby imposed a tax on any taxable chemical sold by the manufacturer, producer, or importer thereof.
(b) Amount of Tax
The amount of tax imposed by subsection (a) shall be determined in accordance with the following table:
| In the case of: | The tax is the following amount per ton: |
|---|---|
| Acetylene | $9.74 |
| Benzene | 9.74 |
| Butane | 9.74 |
| Butylene | 9.74 |
| Butadiene | 9.74 |
| Ethylene | 9.74 |
| Methane | 6.88 |
| Napthalene | 9.74 |
| Propylene | 9.74 |
| Toluene | 9.74 |
| Xylene | 9.74 |
| Ammonia | 5.28 |
| Antimony | 8.90 |
| Antimony trioxide | 7.50 |
| Arsenic | 8.90 |
| Arsenic trioxide | 6.82 |
| Barium sulfide | 4.60 |
| Bromine | 8.90 |
| Cadmium | 8.90 |
| Chlorine | 5.40 |
| Chromium | 8.90 |
| Chromite | 3.04 |
| Potassium dichromate | 3.38 |
| Sodium dichromate | 3.74 |
| Cobalt | 8.90 |
| Cupric sulfate | 3.74 |
| Cupric oxide | 7.18 |
| Cuprous oxide | 7.94 |
| Hydrochloric acid | 0.58 |
| Hydrogen fluoride | 8.46 |
| Lead oxide | 8.28 |
| Mercury | 8.90 |
| Nickel | 8.90 |
| Phosphorus | 8.90 |
| Stannous chloride | 5.70 |
| Stannic chloride | 4.24 |
| Zinc chloride | 4.44 |
| Zinc sulfate | 3.80 |
| Potassium hydroxide | 0.44 |
| Sodium hydroxide | 0.56 |
| Sulfuric acid | 0.52 |
| Nitric acid | 0.48. |
(c) Termination
No tax shall be imposed by this section after December 31, 2031.
(Added
Editorial Notes
Codification
Amendment by
Amendments
2021—Subsec. (b).
Subsec. (c).
1986—Subsec. (b).
Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 2021 Amendment
Effective Date of 1986 Amendments
Amendment by
"(1)
"(2)
"(A)
"(i)
"(ii)
"(B)
"(C)
"(3)
"(A)
"(B)
"(C)
"(D)
"(4)
"(5)
"(A)
"(B)
"(C)
"(D)
Effective Date
Subchapter effective Apr. 1, 1981, see section 211(c) of
§4662. Definitions and special rules
(a) Definitions
For purposes of this subchapter—
(1) Taxable chemical
Except as provided in subsection (b), the term "taxable chemical" means any substance—
(A) which is listed in the table under section 4661(b), and
(B) which is manufactured or produced in the United States or entered into the United States for consumption, use, or warehousing.
(2) United States
The term "United States" has the meaning given such term by section 4612(a)(4).
(3) Importer
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.
(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.
(b) Exceptions; other special rules
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).
(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).
(B) Qualified fertilizer 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.
(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.
(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.
(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.
(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).
(B) Qualified fuel 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—
(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.
(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.
(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).
(B) Chemicals to which subparagraph (A) applies
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.
(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.
(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).
(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.
(C) Required corrective action
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.
(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.
(9) Substances used in the production of animal feed
(A) In general
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—
(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.
(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.
(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.
(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—
(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.
(D) Organic taxable chemical
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.
(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—
(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—
(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 person's registration number and the internal revenue district in which such person is registered.
(C) Inventory exchange
For purposes of this paragraph, the term "inventory exchange" means any exchange in which 2 persons exchange property which is, in the hands of each person, property described in section 1221(a)(1).
(d) Refund or credit for certain uses
(1) In general
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—
(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—
(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—
(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.
(B) Proof of export required
Rules similar to the rules of section 4221(b) shall apply for purposes of subparagraph (A).
(2) Credit or refund where tax paid
(A) In general
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
(II) such chemical was used as a material in the manufacture or production of a substance which was exported by any person and which, at the time of export, was a taxable substance (as defined in section 4672(a)),
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—
(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—
(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.
(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.
(Added
Editorial Notes
References in Text
Sections 3005, 3004, and 3008 of the Solid Waste Disposal Act, referred to in subsec. (b)(8)(C)(i)(I), and section 1004 of that Act, referred to in subsec. (b)(8)(E), are classified to sections 6925, 6924, 6928, and 6903, respectively, of Title 42, The Public Health and Welfare.
Section 106 of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, referred to in subsec. (b)(8)(C)(i)(II), is classified to
Amendments
1999—Subsec. (c)(2)(C).
1988—Subsec. (b)(10)(A).
Subsec. (e)(3), (4).
1986—Subsec. (b)(7).
Subsec. (b)(8).
Subsec. (b)(9).
Subsec. (b)(10).
Subsec. (c).
Subsec. (d)(1).
Subsec. (d)(4).
Subsecs. (e), (f).
1984—Subsec. (b)(1).
Subsec. (b)(2)(A).
Subsec. (b)(2)(B) to (D).
Subsec. (b)(5), (6).
Subsec. (c).
Subsec. (d)(2)(B).
Subsec. (d)(3).
Statutory Notes and Related Subsidiaries
Effective Date of 1999 Amendment
Amendment by
Effective Date of 1988 Amendment
Amendment by
Effective Date of 1986 Amendment
Amendment by
Effective Date of 1984 Amendment
"(1)
"(2)
Subchapter C—Tax on Certain Imported Substances
Editorial Notes
Prior Provisions
A prior subchapter C related to tax on hazardous wastes, consisted of sections 4681 and 4682, prior to repeal by
§4671. Imposition of tax
(a) General rule
There is hereby imposed a tax on any taxable substance sold or used by the importer thereof.
(b) Amount of tax
(1) In general
Except as provided in paragraph (2), the amount of the tax imposed by subsection (a) with respect to any taxable substance shall be the amount of the tax which would have been imposed by section 4661 on the taxable chemicals used as materials in the manufacture or production of such substance if such taxable chemicals had been sold in the United States for use in the manufacture or production of such taxable substance.
(2) Rate where importer does not furnish information to Secretary
If the importer does not furnish to the Secretary (at such time and in such manner as the Secretary shall prescribe) sufficient information to determine under paragraph (1) the amount of the tax imposed by subsection (a) on any taxable substance, the amount of the tax imposed on such taxable substance shall be 10 percent of the appraised value of such substance as of the time such substance was entered into the United States for consumption, use, or warehousing.
(3) Authority to prescribe rate in lieu of paragraph (2) rate
The Secretary may prescribe for each taxable substance a tax which, if prescribed, shall apply in lieu of the tax specified in paragraph (2) with respect to such substance. The tax prescribed by the Secretary shall be equal to the amount of tax which would be imposed by subsection (a) with respect to the taxable substance if such substance were produced using the predominant method of production of such substance.
(c) Exemptions for substances taxed under sections 4611 and 4661
No tax shall be imposed by this section on the sale or use of any substance if tax is imposed on such sale or use under section 4611 or 4661.
(d) Tax-free sales, etc. for substances used as certain fuels or in the production of fertilizer or animal feed
Rules similar to the following rules shall apply for purposes of applying this section with respect to taxable substances used or sold for use as described in such rules:
(1) Paragraphs (2), (5), and (9) of section 4662(b) (relating to tax-free sales of chemicals used as fuel or in the production of fertilizer or animal feed).
(2) Paragraphs (2), (3), and (4) of section 4662(d) (relating to refund or credit of tax on certain chemicals used as fuel or in the production of fertilizer or animal feed).
(e) Termination
No tax shall be imposed by this section after December 31, 2031.
(Added
Editorial Notes
Amendments
2021—Subsec. (b)(2).
Subsec. (e).
1986—Subsec. (e).
Statutory Notes and Related Subsidiaries
Effective Date of 2021 Amendment
Amendment by
Effective Date of 1986 Amendment
Amendment by
Effective Date
Study and Report
§4672. Definitions and special rules
(a) Taxable substance
For purposes of this subchapter—
(1) In general
The term "taxable substance" means any substance which, at the time of sale or use by the importer, is listed as a taxable substance by the Secretary for purposes of this subchapter.
(2) Determination of substances on list
A substance shall be listed under paragraph (1) if—
(A) the substance is contained in the list under paragraph (3), or
(B) the Secretary determines, in consultation with the Administrator of the Environmental Protection Agency and the Commissioner of U.S. Customs and Border Protection, that taxable chemicals constitute more than 20 percent of the weight (or more than 20 percent of the value) of the materials used to produce such substance (determined on the basis of the predominant method of production).
If an importer or exporter of any substance requests that the Secretary determine whether such substance be listed as a taxable substance under paragraph (1) or be removed from such listing, the Secretary shall make such determination within 180 days after the date the request was filed.
(3) Initial list of taxable substances
| Cumene | Methylene chloride |
| Styrene | Polypropylene |
| Ammonium nitrate | Propylene glycol |
| Nickel oxide | Formaldehyde |
| Isopropyl alcohol | Acetone |
| Ethylene glycol | Acrylonitrile |
| Vinyl chloride | Methanol |
| Polyethylene resins, total | Propylene oxide |
| Polybutadiene | Polypropylene resins |
| Styrene-butadiene, latex | Ethylene oxide |
| Styrene-butadiene, snpf | Ethylene dichloride |
| Synthetic rubber, not containing fillers | Cyclohexane |
| Urea | Isophthalic acid |
| Ferronickel | Maleic anhydride |
| Ferrochromium nov 3 pct | Phthalic anhydride |
| Ferrochrome ov 3 pct. carbon | Ethyl methyl ketone |
| Unwrought nickel | Chloroform |
| Nickel waste and scrap | Carbon tetrachloride |
| Wrought nickel rods and wire | Chromic acid |
| Nickel powders | Hydrogen peroxide |
| Phenolic resins | Polystyrene homopolymer resins |
| Polyvinylchloride resins | Melamine |
| Polystyrene resins and copolymers | Acrylic and methacrylic acid resins |
| Ethyl alcohol for nonbeverage use | Vinyl resins |
| Ethylbenzene | Vinyl resins, NSPF. |
(4) Modifications to list
The Secretary shall add to the list under paragraph (3) substances which meet either the weight or value tests of paragraph (2)(B) and may remove from such list only substances which meet neither of such tests.
(b) Other definitions
For purposes of this subchapter—
(1) Importer
The term "importer" means the person entering the taxable substance for consumption, use, or warehousing.
(2) Taxable chemicals; United States
The terms "taxable chemical" and "United States" have the respective meanings given such terms by section 4662(a).
(c) 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 4671.
(Added
Editorial Notes
Amendments
2021—Subsec. (a)(2)(B).
1988—Subsec. (a)(2).
Subsec. (a)(2)(B).
Subsec. (a)(4).
"(A)
"(B)
Statutory Notes and Related Subsidiaries
Change of Name
"Commissioner of U.S. Customs and Border Protection" substituted for "Commissioner of Customs" in subsec. (a)(2)(B) on authority of section 802(d)(2) of
Effective Date of 2021 Amendment
Amendment by
Effective Date of 1988 Amendment
Amendment by
Effective Date
Section effective Jan. 1, 1989, see section 515(c) of
Transfer of Functions
For transfer of functions, personnel, assets, and liabilities of the United States Customs Service of the Department of the Treasury, including functions of the Secretary of the Treasury relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see
Presumption As a Taxable Substance for Prior Determinations
Publication of Initial List
Subchapter D—Ozone-Depleting Chemicals, Etc.
§4681. Imposition of tax
(a) General rule
There is hereby imposed a tax on—
(1) any ozone-depleting chemical sold or used by the manufacturer, producer, or importer thereof, and
(2) any imported taxable product sold or used by the importer thereof.
(b) Amount of tax
(1) Ozone-depleting chemicals
(A) In general
The amount of the tax imposed by subsection (a) on each pound of ozone-depleting chemical shall be an amount equal to—
(i) the base tax amount, multiplied by
(ii) the ozone-depletion factor for such chemical.
(B) Base tax amount
The base tax amount for purposes of subparagraph (A) with respect to any sale or use during any calendar year after 1995 shall be $5.35 increased by 45 cents for each year after 1995.
(2) Imported taxable product
(A) In general
The amount of the tax imposed by subsection (a) on any imported taxable product shall be the amount of tax which would have been imposed by subsection (a) on the ozone-depleting chemicals used as materials in the manufacture or production of such product if such ozone-depleting chemicals had been sold in the United States on the date of the sale of such imported taxable product.
(B) Certain rules to apply
Rules similar to the rules of paragraphs (2) and (3) of section 4671(b) shall apply.
(Added
Editorial Notes
Prior Provisions
A prior section 4681, added
Amendments
1997—Subsec. (b)(1)(B).
| "Calendar year: | Base tax amount: |
|---|---|
| 1993 | 3.35 |
| 1994 | 4.35 |
| 1995 | 5.35." |
Subsec. (b)(1)(C).
1992—Subsec. (b)(1)(B).
1990—Subsec. (b)(1)(B).
Subsec. (b)(1)(C).
Statutory Notes and Related Subsidiaries
Effective Date of 1992 Amendment
Effective Date of 1990 Amendment
Effective Date
"(1)
"(2)
"(3)
§4682. Definitions and special rules
(a) Ozone-depleting chemical
For purposes of this subchapter—
(1) In general
The term "ozone-depleting chemical" means any substance—
(A) which, at the time of the sale or use by the manufacturer, producer, or importer, is listed as an ozone-depleting chemical in the table contained in paragraph (2), and
(B) which is manufactured or produced in the United States or entered into the United States for consumption, use, or warehousing.
(2) Ozone-depleting chemicals
| Common name: | Chemical nomenclature: |
|---|---|
| CFC–11 | trichlorofluoromethane |
| CFC–12 | dichlorodifluoromethane |
| CFC–113 | trichlorotrifluoroethane |
| CFC–114 | 1,2-dichloro-1,1,2,2-tetra- fluoroethane |
| CFC–115 | chloropentafluoroethane |
| Halon-1211 | bromochlorodifluoro- methane |
| Halon-1301 | bromotrifluoromethane |
| Halon-2402 | dibromotetrafluoroethane |
| Carbon tetrachloride | Tetrachloromethane |
| Methyl chloroform | 1,1,1-trichloroethane |
| CFC–13 | CF3Cl |
| CFC–111 | C2FCl5 |
| CFC–112 | C2F2Cl4 |
| CFC–211 | C3FCl7 |
| CFC–212 | C3F2Cl6 |
| CFC–213 | C3F3Cl5 |
| CFC–214 | C3F4Cl4 |
| CFC–215 | C3F5Cl3 |
| CFC–216 | C3F6Cl2 |
| CFC–217 | C3F7Cl. |
(b) Ozone-depletion factor
For purposes of this subchapter, the term "ozone-depletion factor" means, with respect to an ozone-depleting chemical, the factor assigned to such chemical under the following table:
| Ozone-depleting chemical: | Ozone-depletion factor: |
|---|---|
| CFC–11 | 1.0 |
| CFC–12 | 1.0 |
| CFC–113 | 0.8 |
| CFC–114 | 1.0 |
| CFC–115 | 0.6 |
| Halon-1211 | 3.0 |
| Halon-1301 | 10.0 |
| Halon-2402 | 6.0 |
| Carbon tetrachloride | 1.1 |
| Methyl chloroform | 0.1 |
| CFC–13 | 1.0 |
| CFC–111 | 1.0 |
| CFC–112 | 1.0 |
| CFC–211 | 1.0 |
| CFC–212 | 1.0 |
| CFC–213 | 1.0 |
| CFC–214 | 1.0 |
| CFC–215 | 1.0 |
| CFC–216 | 1.0 |
| CFC–217 | 1.0. |
(c) Imported taxable product
For purposes of this subchapter—
(1) In general
The term "imported taxable product" means any product (other than an ozone-depleting chemical) entered into the United States for consumption, use, or warehousing if any ozone-depleting chemical was used as material in the manufacture or production of such product.
(2) De minimis exception
The term "imported taxable product" shall not include any product specified in regulations prescribed by the Secretary as using a de minimis amount of ozone-depleting chemicals as materials in the manufacture or production thereof. The preceding sentence shall not apply to any product in which any ozone-depleting chemical (other than methyl chloroform) is used for purposes of refrigeration or air conditioning, creating an aerosol or foam, or manufacturing electronic components.
(d) Exceptions
(1) Recycling
No tax shall be imposed by section 4681 on any ozone-depleting chemical which is diverted or recovered in the United States as part of a recycling process (and not as part of the original manufacturing or production process), or on any recycled Halon-1301 or recycled Halon-2402 imported from any country which is a signatory to the Montreal Protocol on Substances that Deplete the Ozone Layer.
(2) Use in further manufacture
(A) In general
No tax shall be imposed by section 4681—
(i) on the use of any ozone-depleting chemical in the manufacture or production of any other chemical if the ozone-depleting chemical is entirely consumed in such use,
(ii) on the sale by the manufacturer, producer, or importer of any ozone-depleting chemical—
(I) for a use by the purchaser which meets the requirements of clause (i), or
(II) for resale by the purchaser to a second purchaser for a use by the second purchaser which meets the requirements of clause (i).
Clause (ii) shall apply only if the manufacturer, producer, and importer, and the 1st and 2d purchasers (if any), meet such registration requirements as may be prescribed by the Secretary.
(B) Credit or refund
Under regulations prescribed by the Secretary, if—
(i) a tax under this subchapter was paid with respect to any ozone-depleting chemical, and
(ii) such chemical was used (and entirely consumed) by any person in the manufacture or production of any other 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 section 4681.
(3) Exports
(A) In general
Except as provided in subparagraph (B), rules similar to the rules of section 4662(e) (other than section 4662(e)(2)(A)(ii)(II)) shall apply for purposes of this subchapter.
(B) Limit on benefit
(i) In general
The aggregate tax benefit allowable under subparagraph (A) with respect to ozone-depleting chemicals manufactured, produced, or imported by any person during a calendar year shall not exceed the sum of—
(I) the amount equal to the 1986 export percentage of the aggregate tax which would (but for this subsection and subsection (g)) be imposed by this subchapter with respect to the maximum quantity of ozone-depleting chemicals permitted to be manufactured or produced by such person during such calendar year under regulations prescribed by the Environmental Protection Agency (other than chemicals with respect to which subclause (II) applies),
(II) the aggregate tax which would (but for this subsection and subsection (g)) be imposed by this subchapter with respect to any additional production allowance granted to such person with respect to ozone-depleting chemicals manufactured or produced by such person during such calendar year by the Environmental Protection Agency under 40 CFR Part 82 (as in effect on September 14, 1989), and
(III) the aggregate tax which was imposed by this subchapter with respect to ozone-depleting chemicals imported by such person during the calendar year.
(ii) 1986 export percentage
A person's 1986 export percentage is the percentage equal to the ozone-depletion factor adjusted pounds of ozone-depleting chemicals manufactured or produced by such person during 1986 which were exported during 1986, divided by the ozone-depletion factor adjusted pounds of all ozone-depleting chemicals manufactured or produced by such person during 1986. The percentage determined under the preceding sentence shall be computed by taking into account the sum of such person's direct 1986 exports (as determined by the Environmental Protection Agency) and such person's indirect 1986 exports (as allocated to such person by such Agency in determining such person's consumption and production rights for ozone-depleting chemicals).
(C) Separate application of limit for newly listed chemicals
(i) In general
Subparagraph (B) shall be applied separately with respect to newly listed chemicals and other chemicals.
(ii) Application to newly listed chemicals
In applying subparagraph (B) to newly listed chemicals—
(I) subparagraph (B) shall be applied by substituting "1989" for "1986" each place it appears, and
(II) clause (i)(II) thereof shall be applied by substituting for the regulations referred to therein any regulations (whether or not prescribed by the Secretary) which the Secretary determines are comparable to the regulations referred to in such clause with respect to newly listed chemicals.
(iii) Newly listed chemical
For purposes of this subparagraph, the term "newly listed chemical" means any substance which appears in the table contained in subsection (a)(2) below Halon-2402.
(e) Other definitions
For purposes of this subchapter—
(1) Importer
The term "importer" means the person entering the article for consumption, use, or warehousing.
(2) United States
The term "United States" has the meaning given such term by section 4612(a)(4).
(f) Special rules
(1) Fractional parts of a pound
In the case of a fraction of a pound, the tax imposed by this subchapter shall be the same fraction of the amount of such tax imposed on a whole pound.
(2) 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 this subchapter.
(g) Chemicals used as propellants in metered-dose inhalers
(1) Exemption from tax
(A) In general
No tax shall be imposed by section 4681 on—
(i) any use of any substance as a propellant in metered-dose inhalers, or
(ii) any qualified sale by the manufacturer, producer, or importer of any substance.
(B) Qualified sale
For purposes of subparagraph (A), the term "qualified sale" means any sale by the manufacturer, producer, or importer of any substance—
(i) for use by the purchaser as a propellant in metered dose inhalers, or
(ii) for resale by the purchaser to a 2d purchaser for such use by the 2d purchaser.
The preceding sentence shall apply only if the manufacturer, producer, and importer, and the 1st and 2d purchasers (if any) meet such registration requirements as may be prescribed by the Secretary.
(2) Overpayments
If any substance on which tax was paid under this subchapter is used by any person as a propellant in metered-dose inhalers, credit or refund without interest shall be allowed to such person in an amount equal to the tax so paid. Amounts payable under the preceding sentence with respect to uses during the taxable year shall be treated as described in section 34(a) for such year unless claim thereof has been timely filed under this paragraph.
(h) Imposition of floor stocks taxes
(1) In general
(A) In general
If, on any tax-increase date, any ozone-depleting chemical is held by any person (other than the manufacturer, producer, or importer thereof) for sale or for use in further manufacture, there is hereby imposed a floor stocks tax.
(B) Amount of tax
The amount of the tax imposed by subparagraph (A) shall be the excess (if any) of—
(i) the tax which would be imposed under section 4681 on such substance if the sale of such chemical by the manufacturer, producer, or importer thereof had occurred on the tax-increase date, over
(ii) the prior tax (if any) imposed by this subchapter on such substance.
(C) Tax-increase date
For purposes of this paragraph, the term "tax-increase date" means January 1 of any calendar year.
(2) Due date
The taxes imposed by this subsection on January 1 of any calendar year shall be paid on or before June 30 of such year.
(3) Application of other laws
All other provisions of law, including penalties, applicable with respect to the taxes imposed by section 4681 shall apply to the floor stocks taxes imposed by this subsection.
(Added
Editorial Notes
Prior Provisions
A prior section 4682, added
Amendments
2014—Subsec. (h).
1997—Subsec. (d)(1).
Subsec. (g).
1996—Subsec. (d)(1).
Subsec. (g)(4).
1992—Subsec. (g)(2)(A).
Subsec. (g)(2)(B).
Subsec. (g)(4), (5).
Subsec. (h)(2)(C).
1990—Subsecs. (a)(2), (b).
Subsec. (c)(2).
Subsec. (d)(3)(B)(i).
Subsec. (d)(3)(B)(i)(I).
Subsec. (d)(3)(B)(i)(II).
Subsec. (d)(3)(B)(i)(III).
Subsec. (d)(3)(B)(ii).
Subsec. (d)(3)(C).
Subsec. (h)(3).
Statutory Notes and Related Subsidiaries
Effective Date of 2014 Amendment
Amendment by
Effective Date of 1997 Amendment
Effective Date of 1996 Amendment
"(1)
"(A)
"(B)
"(2)
Effective Date of 1992 Amendment
Amendment by section 1931(b), (c) of
Effective Date of 1990 Amendment
Amendment by section 11203(a), (b), and (d) of
Amendment by section 11701(g) of