§§ 205(b)(1), (c), (8), 207(b), 84 Stat. 241, 242, 248; Dec. 31, 1970, Pub. L. 91-605, Title III, § 303(a)(11), 84 Stat. 1744; May 5, 1976, Pub. L. 94-280, Title III, § 303(a)(11), 90 Stat. 456; Oct. 4, 1976, Pub. L. 94-455, Title XIX, § 1906(a)(27)(A)(i), (B)-(D), (b)(13)(A), 90 Stat. 1827, 1828, 1834; Nov. 6, 1978, Pub. L. 95-599, Title V, § 502(a)(10), 92 Stat. 2756; Nov. 9, 1978, Pub. L. 95-618, Title II, §§ 222(a)(1), 233(a)(1), (3)(A), 92 Stat. 3186, 3190; Apr. 1, 1980, Pub. L. 96-222, Title I, § 108(c)(1), 94 Stat. 226; Pub. L. 97-424, Title V, §§ 511(c)(1), (3), 515(b)(7), 516(a)(6), Jan. 6, 1983, 96 Stat. 2170, 2171, 2182, 2183; Pub. L. 97-473, Title II, § 202(b)(12), Jan. 14, 1983, 96 Stat. 2610.)

Sec. 6424. Lubricating oil used for certain nontaxable purposes. [Repealed. Pub. L. 97-424, Title V. § 515(b)(5), Jan. 6, 1983, 96 Stat. 2181.]

Sec. 6427. Fuels not used for taxable purposes.

(a) Nontaxable uses.-Except as provided in subsection (i), if tax has been imposed under section 4041(a), or (c) on the sale of any fuel and the purchaser uses such fuel other than for the use for which sold, or resells such fuel, the Secretary shall pay (without interest) to him an amount equal to—

(1) the amount of tax imposed on the sale of the fuel to him, reduced by

(2) if he uses the fuel, the amount of tax which would have been imposed under section 4041 on such use if no tax under section 4041 had been imposed on the sale of the fuel.

(b) Intercity, local, or school buses.

(1) Allowance.-Except as provided in paragraph (2) and subsection (i), if any fuel on the sale of which tax was imposed by subsection (a) of section 4041 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 fuel an amount equal to the product of the number of gallons of such fuel so used multiplied by the rate at which tax was imposed on such fuel by subsection (a) of section 4041. (2) Limitation in case of nonscheduled intercity or local buses.— Paragraph (1)(A) shall not apply in respect of fuel 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) Use for farming purposes.-Except as provided in subsection (i), if any fuel on the sale of which tax was imposed under section 4041(a) or

(c) is used on a farm for farming purposes (within the meaning of section 6420(c)), the Secretary shall pay (without interest) to the purchaser an amount equal to the amount of the tax imposed on the sale of the fuel. For purposes of this subsection, if fuel is used on a farm by any person other than the owner, tenant, or operator of such farm, the rules of paragraph (4) of section 6420(c) shall be applied (except that "liquid taxable under section 4041" shall be substitued for "gasoline" each place it appears in such paragraph (4)).

(d) Use by certain aircraft museums or in certain helicopters.-Except as provided in subsection (i), if—

(1) any gasoline on which tax was imposed by section 4081, or (2) any fuel on the sale of which tax was imposed under section 4041,

is used by an aircraft museum (as defined in section 4041(h)(2)) in an aircraft or vehicle owned by such museum and used exclusively for purposes set forth in section 4041(h)(2)(C), or is used in a helicopter for a purpose described in section 4041(), the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline or fuel an amount equal to the aggregate amount of the tax imposed on such gasoline or fuel.

(e) Use in certain taxicabs.—

(1) In general.-Except as provided in subsection (i), if—

or

(A) any gasoline on which tax is imposed by section 4081,

(B) any fuel on the sale of which tax is imposed by section 4041,

is used in a qualified taxicab while engaged exclusively in furnishing qualified taxicab services, the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline or fuel an amount determined at the rates of 4 cents a gallon.

(2) Definitions.-For purposes of this subsection—

(A) Qualified taxicab services.-The term "qualified taxicab services" means the furnishing of nonscheduled passenger land transportation for a fixed fare by a taxicab which is operated by a person who

(i) is licensed to engage in the trade or business of furnishing such transportation by a Federal, State, or local authority having jurisdiction over a substantial portion of such transportation furnished by such person, and

(ii) is not prohibited by company policy from furnishing (with the consent of the passengers) shared transportation. (B) Qualified taxicab.-Except as provided by subparagraph (C), the term "qualified taxicab" means any land vehicle the passenger capacity of which is less than 10 adults, including the driver.

(C) Certain gas-guzzling taxicabs excluded.-The term "qualified taxicab" does not include any vehicle if—

(i) such vehicle was acquired by the person operating such vehicle after 1978,

(ii) the model year of such vehicle is 1978 or later, and (iii) the fuel economy of the model type of such vehicle is less than or equal to the average fuel economy standard applicable under section 502(a) of the Motor Vehicle Information and Cost Savings Act to the model year of such vehicle.

The preceding sentence shall not apply to any vehicle manufactured by a manufacturer to which an exemption under section 502(c) of the Motor Vehicle Information and Cost Savings Act was granted (or on application could have been granted) for the model year of such vehicle. Terms used in this subparagraph shall have the same meaning, as when used in Title V of the Motor Vehicle Information and Cost Savings Act.

(3) Termination.-This subsection shall not apply after September 30, 1984.

(f) Gasoline used to produce certain alcohol fuels.—

(1) In general.-Except as provided in subsection (i), if any gasoline on which a tax is imposed by section 4081 at the rate of 9 cents a gallon is used by any person in producing a mixture described in section 4081(c) which is sold or used in such person's trade or business, the Secretary shall pay (without interest) to such person an amount equal to the amount determined at the rate of 5 cents a gallon. The preceding sentence shall not apply with respect to any mixture sold or used after December 31, 1992.

(2) Coordination with other repayment provisions.-No amount shall be payable under paragraph (1) with respect to any gasoline with respect to which an amount is payable under subsection (d) or (e) of this section or under section 6420 or 6421. (g) Time for filing claims; period covered.

(1) General rule.-Except as provided in paragraph (2), not more than one claim may be filed under subsection (a), (b), (c), (d), (e), or (f) by any person with respect to fuel used during his taxable year; and no claim shall be allowed under this paragraph with respect to fuel used during any taxable year unless filed by the purchaser not later than the time prescribed by law for filing a claim for credit or refund of overpayment of income tax for such taxable year. For purposes of this paragraph, a person's taxable year shall be his taxable year for purposes of subtitle A.

(2) Exceptions.

(A) In general.—If—

(i) $1,000 or more is payable under subsections (a), (b), (d), and (e),

(ii) $50 or more is payable under subsection (e), or (iii) $200 or more is payable under subsection (f), to any person with respect to fuel used during any of the first three quarters of his taxable year, a claim may be filed under this section by the purchaser with respect to fuel used during such quarter.

(B) Special rule.—If the requirements of clause (ii) or clause (iii) of subparagraph (A) are met by any person for any quarter but the requirements of subparagraph (A)(i) are not met by such person for such quarter, such person may file a claim under subparagraph (A) for such quarter only with respect to amounts referred to in the clause (or clauses) of subparagraph (A) the requirements of which are met by such person for such quarter.

(C) Time for filing claim.-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.

(h) Applicable laws.

(1) In general.—All provisions of law, including penalties, applicable in respect of the taxes imposed by section 4041 shall, insofar as applicable and not inconsistent with this section, apply in respect of the payments provided for in this section to the same extent as if such payments constituted refunds of overpayments of the tax so imposed.

(2) Examination of books and witnesses.-For the purpose of ascertaining the correctness of any claim made under this section, or the correctness of any payment made in respect of any such claim, the Secretary shall have the authority granted by paragraphs (1), (2), and (3) of section 7602 (relating to examination of books and witnesses) as if the claimant were the person liable for tax. (i) Income tax credit in lieu of payment.—

(1) Persons not subject to income tax.-Payment shall be made under this section only to

(A) the United States or an agency or instrumentality thereof, a State, a political subdivision of a State, or any agency or instrumentality of one or more States or political subdivisions,

or

(B) an organization exempt from tax under section 501(a) (other than an organization required to make a return of the tax imposed under subtitle A for its taxable year).

(2) Exception.-Paragraph (1) shall not apply to a payment of a claim filed under subsection (g)(2).

(3) Allowance of credit against income tax.

For allowances of credit against the income tax imposed by subtitle A for fuel used or resold by the purchaser, see section 39.

(j) Regulations.-The Secretary may by regulations prescribe the conditions, not inconsistent with the provisions of this section, under which payments may be made under this section.

(k) Termination of subsections (a), (b), (c), and (d).—Subsections (a), (b), (c), and (d) shall only apply with respect to fuels purchased before October 1, 1988.

(1) Cross references.—

(1) For civil penalty for excessive claims under this section, see section 6675.

(2) For fraud penalties, etc., see chapter 75 (section 7201 and following, relating to crimes, other offenses, and forfeitures).

(3) For treatment of an Indian tribal government as a State (and a subdivision of an Indian tribal government as a political subdivision of a State), see section 7871.

(Added Pub. L. 91-258, Title II, § 207(a), May 21, 1970, 84 Stat. 246, and amended Pub. L. 94-455, Title XIX, § 1906(a)(31)(A), (b)(13)(A), Oct. 4, 1976, 90 Stat. 1829, 1834; Pub. L. 94-530, § 1(b), (c)(2)–(5), Oct. 17, 1976, 90 Stat. 2487, 2488; Pub. L. 95-458, § 3(b), Oct. 14, 1978, 92 Stat. 1257; Pub. L. 95-599, Title V, § 505(a), (b), (c)(2)-(4), Nov. 6, 1978, 92 Stat. 2758-2760; Pub. L. 95-600, Title VII, § 703(D)(3), Nov. 6, 1978, 92 Stat. 2942; Pub. L. 95-618, Title II, § 233(a)(2), Nov. 9, 1978, 92 Stat. 3190; Pub. L. 96-223, Title II, § 232(d)(1), (2), (4)(B)-(D), Apr. 2, 1980, 94 Stat. 277, 278; Pub.L. 96-541, § 4, Dec. 17, 1980, 94 Stat. 3205; Pub.L. 97-248, Title II, § 279(b)(2), Sept. 3, 1982, 96 Stat. 563; Pub. L. 97-424, Title V, §§ 511(d)(4), (e)(1)−(3), (g)(2)(B)–(D), 516(b)(5), Jan. 6, 1983, 96 Stat. 2171, 2172, 2173; Pub. L. 97-473, Title II, § 202(b)(13), Jan. 14, 1983, 96 Stat. 2610.)

Sec. 6504. Cross references.

For limitation period in case of—

(1) Adjustments to accrued foreign taxes, see section 905(c).

(2) Change of treatment with respect to itemized deductions and zero bracket amount where taxpayer and his spouse make separate returns, see section 63(g)(5).

(3) Involuntary conversion of property, see section 1033(a)(2)(C) and (D).

(4) Gain upon sale or exchange of principal residence, see section 1034(j).

(5) Application by fiduciary for discharge from personal liability for estate tax, see section 2204.

(6) Insolvent banks and trust companies, see section 7507.
(7) Service in a combat zone, etc., see section 7508.

(8) Claims against transferees and fiduciaries, see chapter 71.