 |
United States Code (Last Updated: May 24, 2014) |
 |
Title 26. INTERNAL REVENUE CODE |
|
SubTitle D. Miscellaneous Excise Taxes |
|
Chapter 38. ENVIRONMENTAL TAXES |
|
SubChapter D. Ozone-Depleting Chemicals, Etc. |
§ 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) January 1, 1990 , taxOn any ozone-depleting chemical which on
January 1, 1990 , 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 in an amount equal to the tax which would be imposed by section 4681 on such chemical if the sale of such chemical by the manufacturer, producer, or importer thereof had occurred during 1990.(2) Other tax-increase dates (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 after 1991.
(3) 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.
(4) 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.
Prior Provisions
A prior section 4682, added Pub. L. 96–510, title II, § 231(a),
Amendments
1997—Subsec. (d)(1). Pub. L. 105–34, § 903(a), substituted “recycled Halon-1301 or recycled Halon-2402” for “recycled halon”.
Subsec. (g). Pub. L. 105–34, § 1432(c)(2), amended subsec. (g) generally. Prior to amendment, subsec. (g) consisted of pars. (1) to (5) relating to taxes imposed during 1990 to 1993 on halons, chemicals used in rigid foam insulation, and methyl chloroform and taxes imposed on chemicals used as propellants in metered-dose inhalers.
1996—Subsec. (d)(1). Pub. L. 104–188, § 1803(a)(1), inserted before period at end “, or on any recycled halon imported from any country which is a signatory to the Montreal Protocol on Substances that Deplete the Ozone Layer”.
Subsec. (g)(4). Pub. L. 104–188, § 1803(b), amended par. (4) generally, substituting provisions relating to chemicals used as propellants in metered-dose inhalers for provisions relating to chemicals used for sterilizing medical instruments and as propellants in metered-dose inhalers, including provisions relating to rate of tax, overpayments, and applicable period.
1992—Subsec. (g)(2)(A). Pub. L. 102–486, § 1932(a), in table, for sales or use during 1993, decreased applicable percentages from 3.3, 1.0, and 1.6 to 2.49, 0.75, and 1.24 in the case of Halon-1211, Halon-1301, and Halon-2402, respectively, and struck out applicable percentages for sales or use during 1991 and 1992.
Subsec. (g)(2)(B). Pub. L. 102–486, § 1931(b), in table decreased applicable percentage in the case of sales or use in 1993 from 10 to 7.46.
Subsec. (g)(4), (5). Pub. L. 102–486, § 1932(b), (c), added pars. (4) and (5).
Subsec. (h)(2)(C). Pub. L. 102–486, § 1931(c), substituted “any calendar year after 1991” for “1991, 1992, 1993, and 1994”.
1990—Subsecs. (a)(2), (b). Pub. L. 101–508, § 11203(a), inserted items for “Carbon tetrachloride” through “CFC–217” in tables.
Subsec. (c)(2). Pub. L. 101–508, § 11203(d)(1), inserted “(other than methyl chloroform)”.
Subsec. (d)(3)(B)(i). Pub. L. 101–508, § 11701(g)(1), substituted “, produced, or imported” for “or produced” in introductory provisions.
Subsec. (d)(3)(B)(i)(I). Pub. L. 101–508, § 11701(g)(2), amended subcl. (I) generally. Prior to amendment, subcl. (I) read as follows: “the amount equal to the 1986 export percentage of the aggregate tax imposed by this subchapter with respect to ozone-depleting chemicals manufactured or produced by such person during such calendar year (other than chemicals with respect to which subclause (II) applies), and”.
Subsec. (d)(3)(B)(i)(II). Pub. L. 101–508, § 11701(g)(3), substituted “tax which would (but for this subsection and subsection (g)) be imposed” for “tax imposed”.
Subsec. (d)(3)(B)(i)(III). Pub. L. 101–508, § 11701(g)(4), added subcl. (III).
Subsec. (d)(3)(B)(ii). Pub. L. 101–508, § 11701(g)(5), substituted last sentence for former last sentence which read as follows: “The percentage determined under the preceding sentence shall be based on data published by the Environmental Protection Agency.”
Subsec. (d)(3)(C). Pub. L. 101–508, § 11203(b), added subpar. (C).
Subsec. (h)(3). Pub. L. 101–508, § 11203(d)(2), substituted “June 30” for “April 1”.
Effective Date Of Amendment
Pub. L. 105–34, title IX, § 903(b),
Pub. L. 104–188, title I, § 1803(c),
Amendment by section 1931(b), (c) of Pub. L. 102–486 applicable to taxable chemicals sold or used on or after
Pub. L. 102–486, title XIX, § 1932(d),
Amendment by section 11203(a), (b), and (d) of Pub. L. 101–508 effective
Amendment by section 11701(g) of Pub. L. 101–508 effective, except as otherwise provided, as if included in the provision of the Revenue Reconciliation Act of 1989, Pub. L. 101–239, title VII, to which such amendment relates, see section 11701(n) of Pub. L. 101–508, set out as a note under section 42 of this title.
Miscellaneous
Pub. L. 104–188, title I, § 1803(a)(2),
Pub. L. 101–508, title XI, § 11203(f),