Internal Revenue Code:Sec. 4082. Exemptions for diesel fuel and kerosene
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Location in Internal Revenue Code
TITLE 26 - INTERNAL REVENUE CODE
Subtitle D - Miscellaneous Excise Taxes
CHAPTER 32 - MANUFACTURERS EXCISE TAXES
Subchapter A - Automotive and Related Items
PART III - PETROLEUM PRODUCTS
Subpart A - Motor and aviation fuels
Statute
Sec. 4082. Exemptions for diesel fuel and kerosene
(a) In general
The tax imposed by section 4081 (other than such tax at the
Leaking Underground Storage Tank Trust Fund financing rate
imposed in all cases other than for export) shall not apply
to diesel fuel and kerosene -
(1) which the Secretary determines is destined for a nontaxable
use,
(2) which is indelibly dyed by mechanical injection in
accordance with regulations
which the Secretary shall prescribe, and
(3) which meets such marking requirements (if any) as may be
prescribed by the Secretary in regulations.
Such regulations shall allow an individual choice of dye color
approved by the Secretary or chosen from any list of approved dye
colors that the Secretary may publish.
(b) Nontaxable use
For purposes of this section, the term ''nontaxable use'' means -
(1) any use which is exempt from the tax imposed by section
4041(a)(1) other than by reason of a prior imposition of tax,
(2) any use in a train, and
(3) any use described in section 4041(a)(1)(C)(iii)(II).
The term `nontaxable use' does not include the use of
kerosene in an aircraft.
(c) Exception to dyeing requirements
Paragraph (2) of subsection (a) shall not apply with respect to
any diesel fuel and kerosene -
(1) removed, entered, or sold in a State for ultimate sale or
use in an area of such State during the period such area is
exempted from the fuel dyeing requirements under subsection (i)
of section 211 of the Clean Air Act (as in effect on the date of
the enactment of this subsection) by the Administrator of the
Environmental Protection Agency under paragraph (4) of such
subsection (i) (as so in effect), and
(2) the use of which is certified pursuant to regulations
issued by the Secretary.
(d) Additional exceptions to dyeing requirements for kerosene
(1) [Deleted by PL 108-357, Sec.853(a)(5)(B)(ii).]
(1) Use for non-fuel feedstock purposes
Subsection (a)(2) shall not apply to kerosene -
(A) received by pipeline or vessel for use by the person
receiving the kerosene in the manufacture or production of any
substance (other than gasoline, diesel fuel, or special fuels
referred to in section 4041), or
(B) to the extent provided in regulations, removed or entered
-
(i) for such a use by the person removing or entering the
kerosene, or
(ii) for resale by such person for such a use by the
purchaser,
but only if the person receiving, removing, or entering the
kerosene and such purchaser (if any) are registered under section
4101 with respect to the tax imposed by section 4081.
(2) Wholesale distributors
To the extent provided in regulations, subsection (a)(2) shall
not apply to kerosene received by a wholesale distributor of
kerosene if such distributor -
(A) is registered under section 4101 with respect to the tax
imposed by section 4081 on kerosene, and
(B) sells kerosene exclusively to ultimate vendors described
in section 6427(l)(5)(B) with respect to kerosene.
(e) Kerosene Removed into an Aircraft.--In the case of
kerosene which is exempt from the tax imposed by section 4041(c) (other
than by reason of a prior imposition of tax) and which is removed from
any refinery or terminal directly into the fuel tank of an aircraft, the
rate of tax under section 4081(a)(2)(A)(iii) shall be zero.
For purposes of this subsection, any removal described in
section 4081(a)(3)(A) shall be treated as a removal from a terminal
but only if such terminal is located within a secure area of an airport.
(f) Regulations
The Secretary shall prescribe such regulations as may be
necessary to carry out this section, including regulations
requiring the conspicuous labeling of retail diesel fuel and
kerosene pumps and other delivery facilities to assure that persons
are aware of which fuel is available only for nontaxable uses.
(g) Cross reference
For tax on train and certain bus uses of fuel purchased
tax-free, see subsections (a)(1) and (d)(3) of section 4041.
Sources
(Aug. 16, 1954, ch. 736, 68A Stat. 483; Pub. L. 86-342, title II,
Sec. 201(e)(1), (2), Sept. 21, 1959, 73 Stat. 615; Pub. L. 89-44,
title VIII, Sec. 802(a)(1), (b)(1), June 21, 1965, 79 Stat. 159;
Pub. L. 91-258, title II, Sec. 205(c)(6), May 21, 1970, 84 Stat.
242; Pub. L. 98-369, div. A, title VII, Sec. 733(a), 734(c)(1),
July 18, 1984, 98 Stat. 977, 979; Pub. L. 99-514, title XVII, Sec.
1703(a), Oct. 22, 1986, 100 Stat. 2775; Pub. L. 103-66, title XIII,
Sec. 13242(a), Aug. 10, 1993, 107 Stat. 517; Pub. L. 104-188, title
I, Sec. 1801(a), Aug. 20, 1996, 110 Stat. 1891; Pub. L. 105-34,
title X, Sec. 1032(c)(1), (2), (e)(3)(A), Aug. 5, 1997, 111 Stat.
933, 935; Pub. L. 105-206, title VI, Sec. 6010(h)(3), (4), July 22,
1998, 112 Stat. 815.)
References in Text
REFERENCES IN TEXT
Subsection (i) of section 211 of the Clean Air Act, referred to
in subsec. (c)(1), is classified to section 7545(i) of Title 42,
The Public Health and Welfare.
The date of the enactment of this subsection, referred to in
subsec. (c)(1), is the date of enactment of Pub. L. 104-188, which
was approved Aug. 20, 1996.
Miscellaneous
AMENDMENTS
2005 - Public Law 109-059. Section 4082(b)
is amended by striking `aviation-grade'. Section 4082(e) is amended--
by striking `aviation-grade', by striking `section 4081(a)(2)(A)(iv)'
and inserting `section 4081(a)(2)(A)(iii)', and by striking
`Aviation-Grade Kerosene' in the heading thereof and inserting
`Kerosene Removed Into an Aircraft'. Section 4082(d)(2)(B) is
amended by striking `section 6427(l)(5)(B)' and inserting
`section 6427(l)(6)(B). Section (e) is amended by adding at the end
the following new sentence: "For purposes of this subsection, any removal
described in section 4081(a)(3)(A) shall be treated as a removal from a terminal
but only if such terminal is located within a secure area of an airport."
Effective Date- The amendments made by this section shall apply to fuels
or liquids removed, entered, or sold after September 30, 2005.
2004 - Pub.L. 108-357, Sec. 853(a)(5)(A). Section 4082 is amended by
redesignating subsections (e) and (f) as subsections (f) and (g),
respectively, and by inserting after subsection (d) the following
new subsection: "(e) Aviation-Grade Kerosene...."
2004 - Pub.L. 108-357, Sec. 853(a)(5)(B). Subsection (b) of section 4082
is amended by adding at the end the following new flush sentence:
"The term `nontaxable use' does not include the use of aviation-grade
kerosene in an aircraft.". Section 4082(d) is amended by striking
paragraph (1) and by redesignating paragraphs (2) and (3) as
paragraphs (1) and (2), respectively.
2004 - Sub.Sec.857(a),Pub.L.108-357, amended Sec.4082(b)(3) by
amending to read as follows: "(3) any use described in section
4041(a)(1)(C)(iii)(II).".
2004 - Sub.Sec.854(b),Pub.L.108-357; Dye Injector Security.--Not
later than 180 days after the date of the enactment of
this Act, the Secretary of the Treasury shall issue regulations
regarding mechanical dye injection systems described in the
amendment made by subsection (a), and such regulations shall
include standards for making such systems tamper resistant.
2004 - Sub.Sec.854(a),Pub.L.108-357, amended Sec.4082(a)(2)
by inserting ``by mechanical injection'' after ``indelibly dyed''.
2004 - Pub. L. 108-357, Sec. 851(d)(2). Subsection (b) of section
4082 is amended by inserting before the period at the end the
following: "and such term shall not include any use described in
section 6421(e)(2)(C)".
Effective date.--The <<NOTE: 26 USC 4082 note.>> amendments made by
this subsection shall apply to taxable years beginning after the
date of the enactment of this Act.
2004 - Subsec.241(a)(2)(B),Pub.L.108-357, amended Sec.4082(f)
by striking ``section 4041(a)(1)'' and inserting
``subsections (a)(1) and (d)(3) of section 4041''.
1998 - Subsec. (d)(1). Pub. L. 105-206, Sec. 6010(h)(3),
reenacted heading without change and amended text of par. (1)
generally. Prior to amendment, text read as follows: ''Subsection
(a)(2) shall not apply to a removal, entry, or sale of
aviation-grade kerosene (as determined under regulations prescribed
by the Secretary) if the person receiving the kerosene is
registered under section 4101 with respect to the tax imposed by
section 4091.''
Subsec. (d)(3). Pub. L. 105-206, Sec. 6010(h)(4), substituted
''kerosene received by'' for ''a removal, entry, or sale of
kerosene to'' in introductory provisions.
1997 - Pub. L. 105-34, Sec. 1032(e)(3)(A), inserted ''and
kerosene'' after ''diesel fuel'' in section catchline.
Subsecs. (a), (c). Pub. L. 105-34, Sec. 1032(c)(1), substituted
''diesel fuel and kerosene'' for ''diesel fuel'' in introductory
provisions.
Subsec. (d). Pub. L. 105-34, Sec. 1032(c)(2), added subsec. (d).
Former subsec. (d) redesignated (e).
Pub. L. 105-34, Sec. 1032(c)(1), substituted ''diesel fuel and
kerosene'' for ''diesel fuel''.
Subsecs. (e), (f). Pub. L. 105-34, Sec. 1032(c)(2), redesignated
subsecs. (d) and (e) as (e) and (f), respectively.
1996 - Subsecs. (c) to (e). Pub. L. 104-188 added subsec. (c) and
redesignated former subsecs. (c) and (d) as (d) and (e),
respectively.
1993 - Pub. L. 103-66 amended heading and text generally. Prior
to amendment, text read as follows:
''(a) Gasoline. - For purposes of this subpart, the term
'gasoline' includes, to the extent prescribed in regulations -
''(1) gasoline blend stocks, and
''(2) products commonly used as additives in gasoline.
For purposes of paragraph (1), the term 'gasoline blend stocks'
means any petroleum product component of gasoline.
''(b) Certain Uses Defined as Removal. - If a refiner, importer,
terminal operator, blender, or compounder uses (other than in the
production of gasoline or special fuels referred to in section
4041) gasoline refined, imported, blended, or compounded by him,
such use shall for the purposes of this chapter be considered a
removal.''
1986 - Subsec. (a). Pub. L. 99-514 amended subsec. (a) generally,
substituting definitions of ''gasoline'' and ''gasoline blended
stocks'' for definition of ''producer''.
Subsec. (b). Pub. L. 99-514 amended subsec. (b) generally,
substituting provisions that certain use of gasoline be considered
removal for provisions defining ''gasoline''.
Subsecs. (c) to (e). Pub. L. 99-514, in amending section
generally, struck out subsecs. (c) to (e) which defined ''sales'',
''wholesale distributor'', and ''producer'', respectively.
1984 - Subsec. (d). Pub. L. 98-369, Sec. 733(a), in amending
subsec. (d) generally, redesignated existing provisions of par. (1)
as subpar. (A) and added subpar. (B), and in par. (2) inserted
''but only if such person'' before ''elects''.
Subsec. (e). Pub. L. 98-369, Sec. 734(c)(1), added subpar. (e).
1970 - Subsec. (c). Pub. L. 91-258 substituted ''special fuels
referred to in section 4041'' for ''special motor fuels referred to
in section 4041(b)''.
1965 - Subsec. (b). Pub. L. 89-44, Sec. 802(a)(1), substituted
''gasoline which are suitable for use as a motor fuel'' for
''gasoline (including casinghead and natural gasoline''.
Subsec. (d)(2). Pub. L. 89-44, Sec. 802(b)(1), struck out ''and
give a bond'' after ''elects to register''.
1959 - Subsec. (a). Pub. L. 86-342, Sec. 201(e)(1), inserted
reference to wholesale distributor.
Subsec. (d). Pub. L. 86-342, Sec. 201(e)(2), added subsec. (d).
EFFECTIVE DATE OF 2004 AMENDMENT
Amendment by Pub.L.108-357, Sec.857, amended Sec.4082(b)(3);
Effective Date.--The amendments made by this section shall apply
to fuel sold after December 31, 2004.
Amendment by Pub.L.108-357, Sec.854, amended Sec.4082(a)(2);
Effective Date.--The amendments made by subsections 854(a) shall
take effect on the 180th day after the date on which the Secretary
issues the regulations described in subsection (b).
EFFECTIVE DATE OF 1998 AMENDMENT
Amendment by 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.
EFFECTIVE DATE OF 1997 AMENDMENT
Amendment by Pub. L. 105-34 effective July 1, 1998, see section
1032(f)(1) of Pub. L. 105-34, as amended, set out as a note under
section 4041 of this title.
EFFECTIVE DATE OF 1996 AMENDMENT
Section 1801(b) of Pub. L. 104-188 provided that: ''The
amendments made by this section (amending this section) shall apply
with respect to fuel removed, entered, or sold on or after the
first day of the first calendar quarter beginning after the date of
the enactment of this Act (Aug. 20, 1996).''
EFFECTIVE DATE OF 1993 AMENDMENT
Amendment by Pub. L. 103-66 effective Jan. 1, 1994, see section
13242(e) of Pub. L. 103-66, set out as a note under section 4041 of
this title.
EFFECTIVE DATE OF 1986 AMENDMENT
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 Dec. 31, 1987, see section 1703(h) of Pub. L.
99-514, set out as a note under section 4081 of this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Section 733(b) of Pub. L. 98-369 provided that: ''The amendment
made by subsection (a) (amending this section) shall take effect on
the first day of the first calendar quarter beginning after the
date of the enactment of this Act (July 18, 1984).''
Section 734(c)(3) of Pub. L. 98-369 provided that: ''The
amendments made by this subsection (amending this section and
section 6427 of this title) shall take effect on the first day of
the first calendar quarter beginning after the date of the
enactment of this Act (July 18, 1984).''
EFFECTIVE DATE OF 1970 AMENDMENT
Amendment by Pub. L. 91-258 effective July 1, 1970, see section
211(a) of Pub. L. 91-258, set out as a note under section 4041 of
this title.
EFFECTIVE DATE OF 1965 AMENDMENT
Section 802(d)(1) of Pub. L. 89-44 provided that: ''The
amendments made by subsections (a)(1), (b), and (c) (amending this
section and sections 4101, 4222, 7103, and 7232 of this title)
shall apply with respect to articles sold on or after July 1,
1965.''
EFFECTIVE DATE OF 1959 AMENDMENT
Section 201(e)(3) of Pub. L. 86-342 provided that: ''The
amendments made by paragraphs (1) and (2) (amending this section)
shall take effect on January 1, 1960.''
References
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 4101, 6715, 7851 of this
title.
