§ 4082. Exemptions for diesel fuel and kerosene
(a)
In general
The tax imposed by section
4081 shall not apply to diesel fuel and kerosene—
(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—
(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
(d)
Additional exceptions to dyeing requirements for kerosene
(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
(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—
(f)
Exception for Leaking Underground Storage Tank Trust Fund financing rate
(1)
In general
Subsection (a) shall not apply to the tax imposed under section
4081 at the Leaking Underground Storage Tank Trust Fund financing rate.
(2)
Exception for export, etc.
Paragraph (1) shall not apply with respect to any fuel if the Secretary determines that such fuel is destined for export or for use by the purchaser as supplies for vessels (within the meaning of section
4221
(d)(3)) employed in foreign trade or trade between the United States and any of its possessions.
(g)
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.
(h)
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.