§ 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—
(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—
(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—
(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
(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).
(e)
Other definitions
For purposes of this subchapter—
(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
(B)
Qualified sale
For purposes of subparagraph (A), the term “qualified sale” means any sale by the manufacturer, producer, or importer of any substance—
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, tax
On 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
(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.