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United States Code (Last Updated: May 24, 2014) |
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Title 26. INTERNAL REVENUE CODE |
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SubTitle F. Procedure and Administration |
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Chapter 65. ABATEMENTS, CREDITS, AND REFUNDS |
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SubChapter B. Rules of Special Application |
§ 6421. Gasoline used for certain nonhighway purposes, used by local transit systems, or sold for certain exempt purposes
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(a) Nonhighway uses Except as provided in subsection (i), if gasoline is used in an off-highway business use, the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline an amount equal to the amount determined by multiplying the number of gallons so used by the rate at which tax was imposed on such gasoline under section 4081. Except as provided in paragraph (2) of subsection (f) of this section, in the case of gasoline used as a fuel in an aircraft, the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline an amount equal to the amount determined by multiplying the number of gallons of gasoline so used by the rate at which tax was imposed on such gasoline under section 4081.
(b) Intercity, local, or school buses (1) Allowance Except as provided in paragraph (2) and subsection (i), if gasoline is used in an automobile bus while engaged in— (A) furnishing (for compensation) passenger land transportation available to the general public, or (B) the transportation of students and employees of schools (as defined in the last sentence of section 4221(d)(7)(C)), the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline an amount equal to the product of the number of gallons of gasoline so used multiplied by the rate at which tax was imposed on such gasoline by section 4081. (2) Limitation in case of nonscheduled intercity or local buses Paragraph (1)(A) shall not apply in respect of gasoline used in any automobile bus while engaged in furnishing transportation which is not scheduled and not along regular routes unless the seating capacity of such bus is at least 20 adults (not including the driver).
(c) Exempt purposes If gasoline is sold to any person for any purpose described in paragraph (2), (3), (4) a subdivision of an Indian tribal government as a political subdivision of a State), see section 7871.
Prior Provisions
A prior section 6421 was renumbered section 6422 of this title.
Amendments
2006—Subsec. (c). Pub. L. 109–280, which directed the substitution of “(5), or (6)” for “or (5)” in section 6421(c), without specifying the act to be amended, was executed by making the substitution in subsec. (c) of this section, which is section 6421 of the Internal Revenue Code of 1986, to reflect the probable intent of Congress.
2005—Subsec. (f)(2)(A). Pub. L. 109–59, § 11151(b)(3)(A), substituted “aviation which is not commercial aviation (as defined in section 4083(b))” for “noncommercial aviation (as defined in section 4041(c)(2))”.
Subsec. (f)(2)(B). Pub. L. 109–59, § 11151(b)(3)(B), substituted “commercial aviation” for “aviation which is not noncommercial aviation”.
2004—Subsec. (e)(2)(C). Pub. L. 108–357, § 851(d)(1), added subpar. (C).
Subsec. (f)(3)(B). Pub. L. 108–357, § 241(a)(2)(C), amended subpar. (B) generally. Prior to amendment, subpar (B) read as follows: “so much of the rate specified in section 4081(a)(2)(A) as does not exceed—
“(i) 6.8 cents per gallon after
“(ii) 5.55 cents per gallon after
“(iii) 4.3 cents per gallon after
1998—Subsecs. (a), (b)(1). Pub. L. 105–206, § 6023(24)(C), substituted “subsection (i)” for “subsection (j)”.
Subsec. (c). Pub. L. 105–206, § 6010(g)(3), substituted “(2) and (3)” for “(2)(A) and (3)” and inserted at end “Subsection (a) shall not apply to gasoline to which this subsection applies.”
Subsec. (d)(2). Pub. L. 105–178, § 9009(b)(3), reenacted heading without change and amended text of par. (2) generally. Prior to amendment, text read as follows: “If $1,000 or more is payable under this section to any person with respect to gasoline used during any of the first three quarters of his taxable year, a claim may be filed under this section by such person with respect to gasoline used during such quarter. No claim filed under this paragraph shall be allowed unless filed on or before the last day of the first quarter following the quarter for which the claim is filed.”
Subsec. (f)(3)(B)(ii). Pub. L. 105–178, § 9006(b)(1)(A), substituted “
Subsec. (f)(3)(B)(iii). Pub. L. 105–178, § 9006(b)(1)(B), substituted “
Subsecs. (i) to (k). Pub. L. 105–206, § 6023(24)(A), redesignated subsecs. (j) and (k) as (i) and (j), respectively.
1997—Subsec. (e)(2)(B)(iii), (iv). Pub. L. 105–34 struck out cls. (iii) and (iv) which read as follows:
“(iii) Exception for diesel fuel.—The term ‘off-highway business use’ shall include the use of diesel fuel in a boat in the active conduct of—
“(I) a trade or business of commercial fishing or transporting persons or property for compensation or hire, and
“(II) except as provided in clause (iv), any other trade or business.
“(iv) Noncommercial boats.—In the case of a boat used predominantly in any activity which is of a type generally considered to constitute entertainment, amusement, or recreation, clause (iii)(II) shall not apply to—
“(I) the taxes under sections 4041(a)(1) and 4081 for the period after
“(II) so much of the tax under sections 4041(a)(1) and 4081 as does not exceed 4.3 cents per gallon for the period after
1996—Subsec. (f)(2)(A). Pub. L. 104–188 substituted “4041(c)(2)” for “4041(c)(4)”.
1993—Subsec. (c). Pub. L. 103–66, § 13242(d)(22), inserted at end “The preceding sentence shall apply notwithstanding paragraphs (2)(A) and (3) of subsection (f).”
Subsec. (e)(1). Pub. L. 103–66, § 13242(d)(20), substituted “section 4083(a)” for “section 4082(b)”.
Subsec. (e)(2)(B). Pub. L. 103–66, § 13163(b), amended heading and text of subpar. (B) generally. Prior to amendment, text read as follows: “The term ‘off-highway business use’ does not include any use in a motorboat. The preceding sentence shall not apply to use in a vessel employed in the fisheries or in the whaling business.”
Subsec. (f)(2)(B). Pub. L. 103–66, § 13242(d)(23), inserted before period at end “and, in the case of fuel purchased after
Subsec. (f)(3). Pub. L. 103–66, § 13242(d)(24), amended heading and text of par. (3) generally. Prior to amendment, text read as follows: “This section shall not apply with respect to the tax imposed by section 4081 at the Leaking Underground Storage Tank Trust Fund financing rate and at the deficit reduction rate on gasoline used as a fuel in a train.”
Pub. L. 103–66, § 13241(f)(6), inserted “and deficit reduction tax” after “tax” in heading and “and at the deficit reduction rate” after “financing rate” in text.
Subsec. (i). Pub. L. 103–66, § 13241(f)(7), struck out heading and text of subsec. (i). Text read as follows: “Except with respect to taxes imposed by section 4081 at the Leaking Underground Storage Tank Trust Fund financing rate, this section shall apply only with respect to gasoline purchased before
1991—Subsec. (i). Pub. L. 102–240 substituted “1999” for “1995”.
1990—Subsec. (i). Pub. L. 101–508 substituted “1995” for “1993”.
1989—Subsec. (g)(2). Pub. L. 101–239 substituted “section 7602(a)” for “section 7602”.
1988—Subsec. (a). Pub. L. 100–647, § 2001(d)(3)(F), substituted “paragraph (2) of subsection (f)” for “paragraph (3) of subsection (e)”.
Pub. L. 100–647, § 1017(c)(7), substituted “subsection (j)” for “subsection (i)”.
Subsec. (b)(1). Pub. L. 100–647, § 1017(c)(7), substituted “subsection (j)” for “subsection (i)”.
Subsec. (d)(3). Pub. L. 100–647, § 1017(c)(15), added par. (3).
Subsec. (f)(2). Pub. L. 100–647, § 2001(d)(3)(E), added par. (2) and struck out former par. (2) which read as follows: “This section shall not apply in respect of gasoline which is used as a fuel in an aircraft in noncommercial aviation (as defined in section 4041(c)(4)).”
Subsec. (f)(3). Pub. L. 100–647, § 2001(d)(3)(E), added par. (3).
Subsec. (f)(4). Pub. L. 100–647, § 2001(d)(3)(E), struck out par. (4) which read as follows: “This section shall not apply with respect to the tax imposed by section 4081 at the Leaking Underground Storage Tank Trust Fund financing rate on gasoline used in any off-highway business use other than use in a vessel employed in the fisheries or in the whaling business.”
Subsec. (i). Pub. L. 100–647, § 1017(c)(6), redesignated subsec. (i), relating to income tax credit in lieu of payment, as (j).
Subsec. (j). Pub. L. 100–647, § 1017(c)(6), (8), redesignated subsec. (i), relating to income tax credit in lieu of payment, as (j), and substituted “subsection (d)(2)” for “subsection (c)(2)” in par. (2). Former subsec. (j) redesignated (k).
Subsec. (k). Pub. L. 100–647, § 1017(c)(6), redesignated former subsec. (j) as (k).
1987—Subsec. (e)(2)(C). Pub. L. 100–203, § 10502(d)(9), struck out subpar. (C) which specified section 4221(a)(3) and (d)(3), section 6416(b)(2)(B), and section 4041(g)(1) as provisions exempting from tax, gasoline and special motor fuels used for commercial fishing vessels.
Subsec. (i). Pub. L. 100–17 substituted “1993” for “1988” in the subsec. (h) which was redesignated (i) by section 1703(c) of Pub. L. 99–514.
Subsec. (j). Pub. L. 100–203, § 10502(d)(10), redesignated pars. (2) to (4) as (1) to (3), respectively, and struck out former par. (1) which read as follows: “For rate of tax in case of special fuels used in noncommercial aviation or for nonhighway purposes, see section 4041.”
1986—Pub. L. 99–514, § 1703(c)(2)(D), substituted “, used by local transit systems, or sold for certain exempt purposes” for “or by local transmit systems” in section catchline.
Subsec. (c). Pub. L. 99–514, § 1703(c)(1)(B), added subsec. (c). Former subsec. (c) redesignated (d).
Subsec. (d). Pub. L. 99–514, § 1703(c)(1)(A), (2)(A), redesignated subsec. (c) as (d) and, in par. (1), substituted “not more than claim may be filed under subsection (b), and not more than one claim may be filed under subsection (c)” for “and not more than one claim may be filed under subsection (b)”. Former subsec. (d) redesignated (e).
Subsec. (e). Pub. L. 99–514, § 1703(c)(1)(A), redesignated subsec. (d) as (e). Former subsec. (e) redesignated (f).
Subsec. (e)(4). Pub. L. 99–499, § 521(c)(2)(B), added par. (4).
Subsec. (f). Pub. L. 99–514, § 1703(c)(1)(A), (2)(B), redesignated subsec. (e) as (f), redesignated pars. (2) and (3) as (1) and (2), respectively, and struck out former par. (1) “Exempt sales” which read as follows: “No amount shall be payable under this section with respect to any gasoline which the Secretary determines was exempt from the tax imposed by section 4081. The amount which (but for this sentence) would be payable under this section with respect to any gasoline shall be reduced by any other amount which the Secretary determines is payable under this section, or is refundable under any provision of this title, to any person with respect to such gasoline.” Former subsec. (f) redesignated (g).
Subsec. (g). Pub. L. 99–514, § 1703(c)(1)(A), redesignated subsec. (f) as (g). Former subsec. (g) redesignated (h).
Subsec. (h). Pub. L. 99–514, § 1703(c)(1)(A), redesignated subsec. (g) as (h). Former subsec. (h) redesignated (i).
Pub. L. 99–499, § 521(c)(2)(A), substituted “Except with respect to taxes imposed by section 4081 at the Leaking Underground Storage Tank Trust Fund financing rate, this section” for “This section”.
Subsec. (i). Pub. L. 99–514, § 1703(c)(1)(A), redesignated subsec. (h), relating to effective date, as (i).
1984—Subsec. (i)(3). Pub. L. 98–369 substituted “section 34” for “section 39”.
1983—Subsec. (a). Pub. L. 97–424, § 511(c)(1), substituted provision that, except as provided in subsection (i), if gasoline is used in an off-highway business use, the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline an amount equal to the amount determined by multiplying the number of gallons so used by the rate at which tax was imposed on such gasoline under section 4081, for provision that, except as provided in subsection (i), if gasoline were used in a qualified business use, the Secretary would pay (without interest) to the ultimate purchaser of such gasoline an amount equal to 1 cent for each gallon of gasoline so used on which tax had been paid at the rate of 3 cents a gallon and 2 cents for each gallon of gasoline so used on which tax had been paid at the rate of 4 cents a gallon.
Subsec. (d)(2). Pub. L. 97–424, § 511(c)(3), substituted “Off-Highway” for “Qualified” in heading, and “off-highway business use” for “qualified business use” wherever appearing in text.
Subsec. (d)(2)(C). Pub. L. 97–424, § 515(b)(7), substituted “and special motor fuels” for “, special motor fuels, and lubricating oil” after “gasoline”.
Subsec. (h). Pub. L. 97–424, § 516(a)(6), substituted “1988” for “1984”.
Subsec. (j)(4). Pub. L. 97–473 added par. (4).
1980—Subsec. (d)(2)(B). Pub. L. 96–222 inserted provisions requiring that the preceding sentence not apply to use in a vessel employed in the fisheries or in the whaling business.
1978—Subsec. (a). Pub. L. 95–618, § 222(a)(1)(A), substituted “Except as provided in subsection (i), if gasoline is used in a qualified business use” for “Except as provided in subsection (i), if gasoline is used otherwise than as a fuel in a highway vehicle (1) which (at the time of such use) is registered, or is required to be registered, for highway use under the laws of any State or foreign country, or (2) which, in the case of a vehicle owned by the United States, is used on the highway”.
Subsec. (b). Pub. L. 95–618, § 233(a)(1), among other changes, provided for the refund or credit of the taxes paid on gasoline but only to the extent such gasoline is used in a bus engaged in furnishing (for compensation) passenger land transportation available to the general public or in school bus transportation operations.
Subsec. (d)(2). Pub. L. 95–618, § 233(a)(3)(A), redesignated par. (3) as (2), and struck out former par. (2) which defined “commuter fare revenue”.
Subsec. (d)(3). Pub. L. 95–618, §§ 222(a)(1)(B), 233(a)(3)(A), added par. (3) and redesignated former par. (3) as (2).
Subsec. (h). Pub. L. 95–599 substituted “1984” for “1979”.
1976—Subsec. (a). Pub. L. 94–455, § 1906(a)(27)(A)(i), (b)(13)(A), struck out “or his delegate” after “Secretary” wherever appearing, and substituted “in the case of gasoline used as a fuel” for “in the case of gasoline used after
Subsec. (b)(1). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
Subsec. (c). Pub. L. 94–455, § 1906(a)(27)(B), among other changes, struck out provisions relating to gasoline used before
Subsec. (e)(1). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
Subsec. (e)(3). Pub. L. 94–455, § 1906(a)(27)(A)(i), struck out “after
Subsecs. (f), (g). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
Subsec. (h). Pub. L. 94–455, § 1906(a)(27)(C), struck out “after
Pub. L. 94–280 substituted “1979” for “1977”.
Subsec. (i)(1). Pub. L. 94–455, § 1906(a)(27)(D)(i), struck out “with respect to gasoline used after
Subsec. (i)(2). Pub. L. 94–455, § 1906(a)(27)(D)(ii), substituted “subsection (c)(2)” for “subsection (c)(3)(B)”.
Subsec. (i)(3). Pub. L. 94–455, § 1906(a)(27)(D)(iii), struck out “for gasoline used after
1970—Subsec. (a). Pub. L. 91–258, § 205(b)(1)(A), inserted requirement that, except as provided in par. (3) of subsec. (e) of this section, where gasoline is used after
Subsec. (c)(3)(A)(ii). Pub. L. 91–258, § 207(b), substituted “a claim for credit or refund of overpayment of income tax” for “an income tax return” after “time prescribed by law for filing”.
Subsec. (e)(3). Pub. L. 91–258, § 205(b)(1)(B), added par. (3).
Subsec. (h). Pub. L. 91–605 substituted “1977” for “1972”.
Subsec. (j)(1). Pub. L. 91–258, § 205(c)(8), substituted “For rate of tax in case of special fuels used in noncommercial aviation or for nonhighway purposes, see section 4041” for “For reduced rate of tax in case of diesel fuel and special motor fuels used for certain nonhighway purposes, see subsections (a) and (b) of section 4041”.
Subsec. (j)(2). Pub. L. 91–258, § 205(c)(8), redesignated par. (4) as (2). Former par. (2), which provided “For partial refund of tax in case of diesel fuel and special motor fuels used for certain nonhighway purposes, see section 6416(b)(2)(I) and (J)”, was struck out.
Subsec. (j)(3). Pub. L. 91–258, § 205(c)(8), redesignated par. (5) as (3). Former par. (3), which provided “For partial refund of tax in case of diesel fuel and special motor fuels used by local transit systems, see section 6416(b)(2)(H)”, was struck out.
Subsec. (j)(4), (5). Pub. L. 91–258, § 205(c)(8), redesignated pars. (4) and (5) as (2) and (3), respectively.
1965—Subsec. (a). Pub. L. 89–44, § 809(b)(1)(A), substituted “Except as provided in subsection (i), if” for “If”.
Subsec. (b). Pub. L. 89–44, § 809(b)(1)(A), substituted “Except as provided in subsection (i), if” for “If”.
Subsec. (c)(1). Pub. L. 89–44, § 809(b)(2)(A), struck out “General rule” in heading and inserted in lieu thereof “Gasoline used before
Subsec. (c)(2). Pub. L. 89–44, § 809(b)(2)(B), substituted “Except as provided in paragraph (3), if” for “If”.
Subsec. (c)(3). Pub. L. 89–44, § 809(b)(2)(C), added par. (3).
Subsec. (e)(1). Pub. L. 89–44, § 809(b)(3), substituted “payable” for “paid” in first sentence.
Subsecs. (i), (j). Pub. L. 89–44, § 809(b)(1)(B), added subsec. (i) and redesignated former subsec. (i) as (j).
1962—Subsec. (b)(1)(B), (2). Pub. L. 87–508, § 5(c)(2)(A), substituted “commuter fare revenue” for “tax-exempt passenger fare revenue” in two places and struck out “(not including the tax imposed by section 4261, relating to the tax on transportation of persons)” after “total passenger fare revenue” in two places.
Subsec. (d)(2). Pub. L. 87–508, § 5(c)(2)(B), substituted definition of “commuter fare revenue” for definition of “tax-exempt passenger fare revenue”.
1961—Subsec. (h). Pub. L. 87–61, substituted “
1959—Subsec. (a). Pub. L. 86–342 substituted “1 cent for each gallon of gasoline so used on which tax was paid at the rate of 3 cents a gallon and 2 cents for each gallon of gasoline so used on which tax was paid at the rate of 4 cents a gallon” for “1 cent for each gallon of gasoline so used”.
Subsec. (b)(1)(A). Pub. L. 86–342 substituted “1 cent at the rate of 3 cents a gallon and 2 cents for each gallon of gasoline so used on which tax was paid at the rate of 4 cents a gallon” for “1 cent for each gallon of gasoline so used”.
1958—Subsec. (c). Pub. L. 85–859, § 164(a), permitted, in cases where $1,000 or more is payable to any person with respect to gasoline used during a calendar quarter, the filing of a claim on or before the last day of the first calendar quarter following the calendar quarter for which the claim is filed.
Subsec. (i)(2), (3). Pub. L. 85–859, § 163(d)(3), substituted “section 6416(b)(2)(I) and (J)” for “section 6416(b)(2) (J) and (K)” in cl. (2), and “section 6416(b)(2)(H)” for “section 6416(b)(2)(L)” in cl. (3).
1956—Subsec. (d)(2). Act
Effective Date Of Amendment
Amendment by Pub. L. 109–280 effective
Amendment by Pub. L. 109–59 effective as if included in the provisions of the American Jobs Creation Act of 2004, Pub. L. 108–357, to which such amendment relates, see section 11151(f)(1) of Pub. L. 109–59, set out as a note under section 4081 of this title.
Amendment by section 241(a)(2)(C) of Pub. L. 108–357 effective
Amendment by section 851(d)(1) of Pub. L. 108–357 applicable to taxable years beginning after
Amendment by section 6023(24)(A), (C) of Pub. L. 105–206 effective
Amendment by section 6010(g)(3) of Pub. L. 105–206 effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, Pub. L. 105–34, to which such amendment relates, see section 6024 of Pub. L. 105–206, set out as a note under section 1 of this title.
Pub. L. 105–178, title IX, § 9009(c),
Amendment by Pub. L. 105–34 effective
Amendment by Pub. L. 104–188 effective on 7th calendar day after
Amendment by section 13163(b) of Pub. L. 103–66 effective
Amendment by section 13241(f)(6), (7) of Pub. L. 103–66 effective
Amendment by section 13242(d)(20), (22)–(24) of Pub. L. 103–66 effective
Amendment by section 1017(c)(6)–(8), (15) of Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.
Amendment by section 2001(d)(3)(E), (F) of Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Superfund Revenue Act of 1986, Pub. L. 99–499, title V, to which it relates, see section 2001(e) of Pub. L. 100–647, set out as a note under section 56 of this title.
Amendment by Pub. L. 100–203 applicable to sales after
Amendment by Pub. L. 99–514 applicable to gasoline removed (as defined in section 4082 of this title as amended by section 1703 of Pub. L. 99–514) after
Amendment by Pub. L. 99–499 effective
Amendment by Pub. L. 98–369 applicable to taxable years beginning after
For effective date of amendment by Pub. L. 97–473, see section 204 of Pub. L. 97–473, set out as an Effective Date note under section 7871 of this title.
Amendment by section 511(c)(1), (3) of Pub. L. 97–424 effective
Amendment by section 515(b)(7) of Pub. L. 97–424 applicable with respect to articles sold after
Amendment by Pub. L. 96–222 effective as if included in the provisions of the Energy Tax Act of 1978, Pub. L. 95–618, to which such amendment relates, see section 108(c)(7) of Pub. L. 96–222, set out as a note under section 48 of this title.
Amendment by section 222(a)(1) of Pub. L. 95–618 applicable with respect to uses after
Amendment by section 233(a)(1), (3)(A) of Pub. L. 95–618 effective on first day of first calendar month which begins more than 10 days after
Pub. L. 94–455, title XIX, § 1906(a)(27)(A)(ii),
Amendment by section 1906(a)(27)(B)–(D), (b)(13)(A) of Pub. L. 94–455 effective on first day of first month which begins more than 90 days after
Amendment by section 205(b)(1), (c)(8) of Pub. L. 91–258 effective
Amendment by Pub. L. 89–44 applicable with respect to gasoline used on or after
Pub. L. 87–508, § 5(d),
Amendment by Pub. L. 87–61 effective
Amendment by section 163(d)(3) of Pub. L. 85–859 effective on first day of first calendar quarter which begins more than 60 days after
Pub. L. 85–859, title I, § 164(b),
Amendment by act