§ 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—
(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
(B)
Qualified fertilizer substance
For purposes of this section, the term “qualified fertilizer substance” means any substance—
(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.
(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.
(B)
Qualified fuel substance
For purposes of this section, the term “qualified fuel substance” means any substance—
(C)
Qualified fuel use
For purposes of this subsection, the term “qualified fuel use” means—
(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.
(6)
Substance having transitory presence during refining process, etc.
(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
(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—
(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
(B)
Qualified animal feed substance
For purposes of this section, the term “qualified animal feed substance” means any substance—
(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.
(10)
Hydrocarbon streams containing mixtures of 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—
(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—
(ii)
such other person shall, for purposes of section
4661, be treated as the manufacturer, producer, or importer of such chemical.
(d)
Refund or credit for certain uses
(1)
In general
Under regulations prescribed by the Secretary, if—
(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
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
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
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.
(2)
Credit or refund where tax paid
(A)
In general
Except as provided in subparagraph (B), if—
credit or refund (without interest) of such tax shall be allowed or made to the person who paid such tax.
(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—