{"identifier":"/us/usc/t26/s6427","title":26,"num":"\u00a7\u202f6427.","heading":"Fuels not used for taxable purposes","text":"\u00a7\u202f6427.\nFuels not used for taxable purposes\n(a)\nNontaxable uses\nExcept as provided in subsection (k), if tax has been imposed under paragraph (2) or (3) of section 4041(a) or section 4041(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\u2014\n(1) the amount of tax imposed on the sale of the fuel to him, reduced by\n(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.\n(b)\nIntercity, local, or school buses\n(1)\nAllowance\nExcept as otherwise provided in this subsection and subsection (k), if any fuel other than gasoline (as defined in section 4083(a)) on the sale of which tax was imposed by section 4041(a) or 4081 is used in an automobile bus while engaged in\u2014\n(A) furnishing (for compensation) passenger land transportation available to the general public, or\n(B) the transportation of students and employees of schools (as defined in the last sentence of section 4221(d)(7)(C)),\nthe 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 section 4041(a) or 4081, as the case may be.\n(2)\nReduction in refund in certain cases\n(A)\nIn general\nExcept as provided in subparagraphs (B) and (C), the rate of tax taken into account under paragraph (1) shall be 7.4 cents per gallon less than the aggregate rate at which tax was imposed on such fuel by section 4041(a) or 4081, as the case may be.\n(B)\nException for school bus transportation\nSubparagraph (A) shall not apply to fuel used in an automobile bus while engaged in the transportation described in paragraph (1)(B).\n(C)\nException for certain intracity transportation\nSubparagraph (A) shall not apply to fuel used in any automobile bus while engaged in furnishing (for compensation) intracity passenger land transportation\u2014\n(i) which is available to the general public, and\n(ii) which is scheduled and along regular routes,\nbut only if such bus is a qualified local bus.\n(D)\nQualified local bus\nFor purposes of this paragraph, the term \u201cqualified local bus\u201d means any local bus\u2014\n(i) which has a seating capacity of at least 20 adults (not including the driver), and\n(ii) which is under contract (or is receiving more than a nominal subsidy) from any State or local government (as defined in section 4221(d)) to furnish such transportation.\n(3)\nLimitation in case of nonscheduled intercity or local buses\nParagraph (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).\n(4)\nRefunds for use of diesel fuel in certain intercity buses\nWith respect to any fuel to which paragraph (2)(A) applies, if the ultimate purchaser of such fuel waives (at such time and in such form and manner as the Secretary shall prescribe) the right to payment under paragraph (1) and assigns such right to the ultimate vendor, then the Secretary shall pay the amount which would be paid under paragraph (1) to such ultimate vendor, but only if such ultimate vendor\u2014\n(A) is registered under section 4101, and\n(B) meets the requirements of subparagraph (A), (B), or (D) of section 6416(a)(1).\n(c)\nUse for farming purposes\nExcept as provided in subsection (k), if any fuel on the sale of which tax was imposed under paragraph (2) or (3) of section 4041(a) or section 4041(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 \u201cliquid taxable under section 4041\u201d shall be substituted for \u201cgasoline\u201d each place it appears in such paragraph (4)).\n(d)\nUse by certain aircraft museums or in certain other aircraft uses\nExcept as provided in subsection (k), if\u2014\n(1) any gasoline on which tax was imposed by section 4081, or\n(2) any fuel on the sale of which tax was imposed under section 4041,\nis 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 or a fixed-wing aircraft for a purpose described in section 4041(\nl\n(e)\nAlcohol, biodiesel, alternative fuel, or sustainable aviation fuel\nExcept as provided in subsection (k)\u2014\n(1)\nUsed to produce a mixture\nIf any person produces a mixture described in section 6426 in such person\u2019s trade or business, the Secretary shall pay (without interest) to such person an amount equal to the alcohol fuel mixture credit or the biodiesel mixture credit or the alternative fuel mixture credit or the sustainable aviation fuel mixture credit with respect to such mixture.\n(2)\nAlternative fuel\nIf any person sells or uses an alternative fuel (as defined in section 6426(d)(2)) for a purpose described in section 6426(d)(1) in such person\u2019s trade or business, the Secretary shall pay (without interest) to such person an amount equal to the alternative fuel credit with respect to such fuel.\n(3)\nCoordination with other repayment provisions\nNo amount shall be payable under paragraph (1) or (2) with respect to any mixture or alternative fuel with respect to which an amount is allowed as a credit under section 6426.\n(4)\nRegistration requirement for alternative fuels\nThe Secretary shall not make any payment under this subsection to any person with respect to any alternative fuel credit or alternative fuel mixture credit unless the person is registered under section 4101.\n(5)\nLimitation to fuels with connection to the United States\nNo amount shall be payable under paragraph (1) or (2) with respect to any mixture or alternative fuel if credit is not allowed with respect to such mixture or alternative fuel by reason of section 6426(i).\n(6)\nTermination\nThis subsection shall not apply with respect to\u2014\n(A) any alcohol fuel mixture (as defined in section 6426(b)(3)) sold or used after\nDecember 31, 2011\n(B) any biodiesel mixture (as defined in section 6426(c)(3)) sold or used after\nDecember 31, 2024\n(C) any alternative fuel (as defined in section 6426(d)(2)) sold or used after\nDecember 31, 2024\n(D) any alternative fuel mixture (as defined in section 6426(e)(2)) sold or used after\nDecember 31, 2011\n(E) any qualified mixture of sustainable aviation fuel (as defined in section 6426(k)(3))\n1\n1 See References in Text note below.\nDecember 31, 2024\n[(f)\nRepealed. Pub. L. 109\u201359, title XI, \u00a7\u202f11151(a)(1), Aug. 10, 2005, 119 Stat. 1968]\n[(g)\nRepealed. Pub. L. 104\u2013188, title I, \u00a7\u202f1606(a), Aug. 20, 1996, 110 Stat. 1839]\n(h)\nBlend stocks not used for producing taxable fuel\n(1)\nGasoline blend stocks or additives not used for producing gasoline\nExcept as provided in subsection (k), if any gasoline blend stock or additive (within the meaning of section 4083(a)(2)) is not used by any person to produce gasoline and such person establishes that the ultimate use of such gasoline blend stock or additive is not to produce gasoline, the Secretary shall pay (without interest) to such person an amount equal to the aggregate amount of the tax imposed on such person with respect to such gasoline blend stock or additive.\n(2)\nDiesel fuel blend stocks or additives not used for producing diesel\nExcept as provided in subsection (k), if any diesel fuel blend stock is not used by any person to produce diesel fuel and such person establishes that the ultimate use of such diesel fuel blend stock is not to produce diesel fuel, the Secretary shall pay (without interest) to such person an amount equal to the aggregate amount of the tax imposed on such person with respect to such diesel fuel blend stock.\n(i)\nTime for filing claims; period covered\n(1)\nGeneral rule\nExcept as otherwise provided in this subsection, not more than one claim may be filed under subsection (a), (b), (c), (d), (h), (\nl\no\n(2)\nExceptions\n(A)\nIn general\nIf, at the close of any quarter of the taxable year of any person, at least $750 is payable in the aggregate under subsections (a), (b), (d), (h), (\n(i) such quarter, or\n(ii) any prior quarter (for which no other claim has been filed) during such taxable year,\na claim may be filed under this section with respect to such fuel.\n(B)\nTime for filing claim\nNo claim filed under this paragraph shall be allowed unless filed during the first quarter following the last quarter included in the claim.\n(C)\nNonapplication of paragraph\nThis paragraph shall not apply to any fuel used solely in any off-highway business use described in section 6421(e)(2)(C).\n(3)\nSpecial rule for mixture credits and the alternative fuel credit\n(A)\nIn general\nA claim may be filed under subsection (e)(1) by any person with respect to a mixture described in section 6426 or under subsection (e)(2) by any person with respect to an alternative fuel (as defined in section 6426(d)(2)) for any period\u2014\n(i) for which $200 or more is payable under such subsection (e)(1) or (e)(2), and\n(ii) which is not less than 1 week.\nIn the case of an electronic claim, this subparagraph shall be applied without regard to clause (i).\n(B)\nPayment of claim\nNotwithstanding subsection (e)(1) or (e)(2), if the Secretary has not paid pursuant to a claim filed under this section within 45 days of the date of the filing of such claim (20 days in the case of an electronic claim), the claim shall be paid with interest from such date determined by using the overpayment rate and method under section 6621.\n(C)\nTime for filing claim\nNo claim filed under this paragraph shall be allowed unless filed on or before the last day of the first quarter following the earliest quarter included in the claim.\n(4)\nSpecial rule for vendor refunds\n(A)\nIn general\nA claim may be filed under paragraph (4)(C) or (5) of subsection (\n(i) for which $200 or more ($100 or more in the case of kerosene) is payable under paragraph (4)(C) or (5) of subsection (\nl\n(ii) which is not less than 1 week.\nNotwithstanding subsection (\nl\nl\nl\n(B)\nTime for filing claim\nNo claim filed under this paragraph shall be allowed unless filed on or before the last day of the first quarter following the earliest quarter included in the claim.\n(j)\nApplicable laws\n(1)\nIn general\nAll provisions of law, including penalties, applicable in respect of the taxes imposed by sections 4041 and 4081 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.\n(2)\nExamination of books and witnesses\nFor 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(a) (relating to examination of books and witnesses) as if the claimant were the person liable for tax.\n(k)\nIncome tax credit in lieu of payment\n(1)\nPersons not subject to income tax\nPayment shall be made under this section only to\u2014\n(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\n(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).\n(2)\nException\nParagraph (1) shall not apply to a payment of a claim filed under paragraph (2), (3), or (4) of subsection (i).\n(3)\nAllowance of credit against income tax\nFor allowances of credit against the income tax imposed by subtitle A for fuel used or resold by the purchaser, see section 34.\n(l)\nNontaxable uses of diesel fuel and kerosene\n(1)\nIn general\nExcept as otherwise provided in this subsection and in subsection (k), if any diesel fuel or kerosene on which tax has been imposed by section 4041 or 4081 is used by any person in a nontaxable use, the Secretary shall pay (without interest) to the ultimate purchaser of such fuel an amount equal to the aggregate amount of tax imposed on such fuel under section 4041 or 4081, as the case may be, reduced by any payment made to the ultimate vendor under paragraph (4)(C)(i).\n(2)\nNontaxable use\nFor purposes of this subsection, the term \u201cnontaxable use\u201d means any use which is exempt from the tax imposed by section 4041(a)(1) other than by reason of a prior imposition of tax.\n(3)\nRefund of certain taxes on fuel used in diesel-powered trains\nFor purposes of this subsection, the term \u201cnontaxable use\u201d includes fuel used in a diesel-powered train. The preceding sentence shall not apply with respect to\u2014\n(A) the Leaking Underground Storage Tank Trust Fund financing rate under sections 4041 and 4081, and\n(B) so much of the rate specified in section 4081(a)(2)(A) as does not exceed the rate applicable under section 4041(a)(1)(C)(ii).\nThe preceding sentence shall not apply in the case of fuel sold for exclusive use by a State or any political subdivision thereof.\n(4)\nRefunds for kerosene used in aviation\n(A)\nKerosene used in commercial aviation\nIn the case of kerosene used in commercial aviation (as defined in section 4083(b)) (other than supplies for vessels or aircraft within the meaning of section 4221(d)(3)), paragraph (1) shall not apply to so much of the tax imposed by section 4041 or 4081, as the case may be, as is attributable to\u2014\n(i) the Leaking Underground Storage Tank Trust Fund financing rate imposed by such section, and\n(ii) so much of the rate of tax specified in section 4041(c) or 4081(a)(2)(A)(iii), as the case may be, as does not exceed 4.3 cents per gallon.\n(B)\nKerosene used in noncommercial aviation\nIn the case of kerosene used in aviation that is not commercial aviation (as so defined) (other than any use which is exempt from the tax imposed by section 4041(c) other than by reason of a prior imposition of tax), paragraph (1) shall not apply to\u2014\n(i) any tax imposed by subsection (c) or (d)(2) of section 4041, and\n(ii) so much of the tax imposed by section 4081 as is attributable to\u2014\n(I) the Leaking Underground Storage Tank Trust Fund financing rate imposed by such section, and\n(II) so much of the rate of tax specified in section 4081(a)(2)(A)(iii) as does not exceed the rate specified in section 4081(a)(2)(C)(ii).\n(C)\nPayments to ultimate, registered vendor\n(i)\nIn general\nWith respect to any kerosene used in aviation (other than kerosene described in clause (ii) or kerosene to which paragraph (5) applies), if the ultimate purchaser of such kerosene waives (at such time and in such form and manner as the Secretary shall prescribe) the right to payment under paragraph (1) and assigns such right to the ultimate vendor, then the Secretary shall pay the amount which would be paid under paragraph (1) to such ultimate vendor, but only if such ultimate vendor\u2014\n(I) is registered under section 4101, and\n(II) meets the requirements of subparagraph (A), (B), or (D) of section 6416(a)(1).\n(ii)\nPayments for kerosene used in noncommercial aviation\nThe amount which would be paid under paragraph (1) with respect to any kerosene to which subparagraph (B) applies shall be paid only to the ultimate vendor of such kerosene. A payment shall be made to such vendor if such vendor\u2014\n(I) is registered under section 4101, and\n(II) meets the requirements of subparagraph (A), (B), or (D) of section 6416(a)(1).\n(5)\nRegistered vendors to administer claims for refund of diesel fuel or kerosene sold to State and local governments\n(A)\nIn general\nParagraph (1) shall not apply to diesel fuel or kerosene used by a State or local government.\n(B)\nSales of kerosene not for use in motor fuel\nParagraph (1) shall not apply to kerosene (other than kerosene used in aviation) sold by a vendor\u2014\n(i) for any use if such sale is from a pump which (as determined under regulations prescribed by the Secretary) is not suitable for use in fueling any diesel-powered highway vehicle or train, or\n(ii) to the extent provided by the Secretary, for blending with heating oil to be used during periods of extreme or unseasonable cold.\n(C)\nPayment to ultimate, registered vendor\nExcept as provided in subparagraph (D), the amount which would (but for subparagraph (A) or (B)) have been paid under paragraph (1) with respect to any fuel shall be paid to the ultimate vendor of such fuel, if such vendor\u2014\n(i) is registered under section 4101, and\n(ii) meets the requirements of subparagraph (A), (B), or (D) of section 6416(a)(1).\n(D)\nCredit card issuer\nFor purposes of this paragraph, if the purchase of any fuel described in subparagraph (A) (determined without regard to the registration status of the ultimate vendor) is made by means of a credit card issued to the ultimate purchaser, the Secretary shall pay to the person extending the credit to the ultimate purchaser the amount which would have been paid under paragraph (1) (but for subparagraph (A)), but only if such person meets the requirements of clauses (i), (ii), and (iii) of section 6416(a)(4)(B). If such clause (i), (ii), or (iii) is not met by such person extending the credit to the ultimate purchaser, then such person shall collect an amount equal to the tax from the ultimate purchaser and only such ultimate purchaser may claim such amount.\n(m)\nDiesel fuel used to produce emulsion\n(1)\nIn general\nExcept as provided in subsection (k), if any diesel fuel on which tax was imposed by section 4081 at the regular tax rate is used by any person in producing an emulsion described in section 4081(a)(2)(D) which is sold or used in such person\u2019s trade or business, the Secretary shall pay (without interest) to such person an amount equal to the excess of the regular tax rate over the incentive tax rate with respect to such fuel.\n(2)\nDefinitions\nFor purposes of paragraph (1)\u2014\n(A)\nRegular tax rate\nThe term \u201cregular tax rate\u201d means the aggregate rate of tax imposed by section 4081 determined without regard to section 4081(a)(2)(D).\n(B)\nIncentive tax rate\nThe term \u201cincentive tax rate\u201d means the aggregate rate of tax imposed by section 4081 determined with regard to section 4081(a)(2)(D).\n(n)\nRegulations\nThe Secretary may by regulations prescribe the conditions, not inconsistent with the provisions of this section, under which payments may be made under this section.\n(o)\nPayments for taxes imposed by section 4041(d)\nFor purposes of subsections (a), (b), and (c), the taxes imposed by section 4041(d) shall be treated as imposed by section 4041(a).\n(p)\nCross references\n(1) For civil penalty for excessive claims under this section, see section 6675.\n(2) For fraud penalties, etc., see chapter 75 (section 7201 and following, relating to crimes, other offenses, and forfeitures).\n(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.","url":"https://projectusc.org/usc/t26/s6427.html","content":[{"t":"sec","id":"/us/usc/t26/s6427","children":[{"t":"num","text":"\u00a7\u202f6427."},{"t":"heading","text":"Fuels not used for taxable purposes"},{"t":"subsec","id":"/us/usc/t26/s6427/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"Nontaxable uses"},{"t":"chapeau","text":"Except as provided in subsection (k), if tax has been imposed under paragraph (2) or (3) of section 4041(a) or section 4041(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\u2014"},{"t":"para","id":"/us/usc/t26/s6427/a/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" the amount of tax imposed on the sale of the fuel to him, reduced by","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s6427/a/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" 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.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s6427/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Intercity, local, or school buses"},{"t":"para","id":"/us/usc/t26/s6427/b/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Allowance"},{"t":"chapeau","text":"Except as otherwise provided in this subsection and subsection (k), if any fuel other than gasoline (as defined in section 4083(a)) on the sale of which tax was imposed by section 4041(a) or 4081 is used in an automobile bus while engaged in\u2014"},{"t":"subpara","id":"/us/usc/t26/s6427/b/1/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" furnishing (for compensation) passenger land transportation available to the general public, or","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s6427/b/1/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" the transportation of students and employees of schools (as defined in the last sentence of section 4221(d)(7)(C)),","tail":"\n"}],"tail":"\n\n"},{"t":"continuation","text":"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 section 4041(a) or 4081, as the case may be.","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s6427/b/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Reduction in refund in certain cases"},{"t":"subpara","id":"/us/usc/t26/s6427/b/2/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"Except as provided in subparagraphs (B) and (C), the rate of tax taken into account under paragraph (1) shall be 7.4 cents per gallon less than the aggregate rate at which tax was imposed on such fuel by section 4041(a) or 4081, as the case may be.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s6427/b/2/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Exception for school bus transportation"},{"t":"content","children":[{"t":"p","text":"Subparagraph (A) shall not apply to fuel used in an automobile bus while engaged in the transportation described in paragraph (1)(B).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s6427/b/2/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Exception for certain intracity transportation"},{"t":"chapeau","text":"Subparagraph (A) shall not apply to fuel used in any automobile bus while engaged in furnishing (for compensation) intracity passenger land transportation\u2014"},{"t":"clause","id":"/us/usc/t26/s6427/b/2/C/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" which is available to the general public, and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s6427/b/2/C/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" which is scheduled and along regular routes,","tail":"\n"}],"tail":"\n\n"},{"t":"continuation","text":"but only if such bus is a qualified local bus.","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s6427/b/2/D","children":[{"t":"num","text":"(D)"},{"t":"heading","text":"Qualified local bus"},{"t":"chapeau","text":"For purposes of this paragraph, the term \u201cqualified local bus\u201d means any local bus\u2014"},{"t":"clause","id":"/us/usc/t26/s6427/b/2/D/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" which has a seating capacity of at least 20 adults (not including the driver), and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s6427/b/2/D/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" which is under contract (or is receiving more than a nominal subsidy) from any State or local government (as defined in section 4221(d)) to furnish such transportation.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s6427/b/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Limitation in case of nonscheduled intercity or local buses"},{"t":"content","children":[{"t":"p","text":"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).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s6427/b/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Refunds for use of diesel fuel in certain intercity buses"},{"t":"chapeau","text":"With respect to any fuel to which paragraph (2)(A) applies, if the ultimate purchaser of such fuel waives (at such time and in such form and manner as the Secretary shall prescribe) the right to payment under paragraph (1) and assigns such right to the ultimate vendor, then the Secretary shall pay the amount which would be paid under paragraph (1) to such ultimate vendor, but only if such ultimate vendor\u2014"},{"t":"subpara","id":"/us/usc/t26/s6427/b/4/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" is registered under section 4101, and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s6427/b/4/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" meets the requirements of subparagraph (A), (B), or (D) of section 6416(a)(1).","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s6427/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Use for farming purposes"},{"t":"content","children":[{"t":"p","text":"Except as provided in subsection (k), if any fuel on the sale of which tax was imposed under paragraph (2) or (3) of section 4041(a) or section 4041(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 \u201cliquid taxable under section 4041\u201d shall be substituted for \u201cgasoline\u201d each place it appears in such paragraph (4)).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s6427/d","children":[{"t":"num","text":"(d)"},{"t":"heading","text":"Use by certain aircraft museums or in certain other aircraft uses"},{"t":"chapeau","text":"Except as provided in subsection (k), if\u2014"},{"t":"para","id":"/us/usc/t26/s6427/d/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" any gasoline on which tax was imposed by section 4081, or","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s6427/d/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" any fuel on the sale of which tax was imposed under section 4041,","tail":"\n"}],"tail":"\n\n"},{"t":"continuation","text":"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 or a fixed-wing aircraft for a purpose described in section 4041(","children":[{"t":"text","text":"l","tail":"), 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."}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s6427/e","children":[{"t":"num","text":"(e)"},{"t":"heading","text":"Alcohol, biodiesel, alternative fuel, or sustainable aviation fuel"},{"t":"chapeau","text":"Except as provided in subsection (k)\u2014"},{"t":"para","id":"/us/usc/t26/s6427/e/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Used to produce a mixture"},{"t":"content","children":[{"t":"p","text":"If any person produces a mixture described in section 6426 in such person\u2019s trade or business, the Secretary shall pay (without interest) to such person an amount equal to the alcohol fuel mixture credit or the biodiesel mixture credit or the alternative fuel mixture credit or the sustainable aviation fuel mixture credit with respect to such mixture.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s6427/e/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Alternative fuel"},{"t":"content","children":[{"t":"p","text":"If any person sells or uses an alternative fuel (as defined in section 6426(d)(2)) for a purpose described in section 6426(d)(1) in such person\u2019s trade or business, the Secretary shall pay (without interest) to such person an amount equal to the alternative fuel credit with respect to such fuel.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s6427/e/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Coordination with other repayment provisions"},{"t":"content","children":[{"t":"p","text":"No amount shall be payable under paragraph (1) or (2) with respect to any mixture or alternative fuel with respect to which an amount is allowed as a credit under section 6426.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s6427/e/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Registration requirement for alternative fuels"},{"t":"content","children":[{"t":"p","text":"The Secretary shall not make any payment under this subsection to any person with respect to any alternative fuel credit or alternative fuel mixture credit unless the person is registered under section 4101.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s6427/e/5","children":[{"t":"num","text":"(5)"},{"t":"heading","text":"Limitation to fuels with connection to the United States"},{"t":"content","children":[{"t":"p","text":"No amount shall be payable under paragraph (1) or (2) with respect to any mixture or alternative fuel if credit is not allowed with respect to such mixture or alternative fuel by reason of section 6426(i).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s6427/e/6","children":[{"t":"num","text":"(6)"},{"t":"heading","text":"Termination"},{"t":"chapeau","text":"This subsection shall not apply with respect to\u2014"},{"t":"subpara","id":"/us/usc/t26/s6427/e/6/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" any alcohol fuel mixture (as defined in section 6426(b)(3)) sold or used after ","children":[{"t":"text","text":"December 31, 2011","tail":","}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s6427/e/6/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" any biodiesel mixture (as defined in section 6426(c)(3)) sold or used after ","children":[{"t":"text","text":"December 31, 2024","tail":","}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s6427/e/6/C","children":[{"t":"num","text":"(C)"},{"t":"content","text":" any alternative fuel (as defined in section 6426(d)(2)) sold or used after ","children":[{"t":"text","text":"December 31, 2024","tail":","}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s6427/e/6/D","children":[{"t":"num","text":"(D)"},{"t":"content","text":" any alternative fuel mixture (as defined in section 6426(e)(2)) sold or used after ","children":[{"t":"text","text":"December 31, 2011","tail":", and"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s6427/e/6/E","children":[{"t":"num","text":"(E)"},{"t":"content","text":" any qualified mixture of sustainable aviation fuel (as defined in section 6426(k)(3))\u202f","children":[{"t":"ref","text":"1"},{"t":"num","text":"1","tail":"\u202fSee References in Text note below."},{"t":"text","text":"\u202fSee References in Text note below.","tail":" sold or used after "},{"t":"text","text":"December 31, 2024","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s6427/f","children":[{"t":"num","text":"[(f)"},{"t":"heading","text":"Repealed. Pub. L. 109\u201359, title XI, \u00a7\u202f11151(a)(1), Aug. 10, 2005, 119 Stat. 1968]"},{"t":"content","tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s6427/g","children":[{"t":"num","text":"[(g)"},{"t":"heading","text":"Repealed. Pub. L. 104\u2013188, title I, \u00a7\u202f1606(a), Aug. 20, 1996, 110 Stat. 1839]"},{"t":"content","tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s6427/h","children":[{"t":"num","text":"(h)"},{"t":"heading","text":"Blend stocks not used for producing taxable fuel"},{"t":"para","id":"/us/usc/t26/s6427/h/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Gasoline blend stocks or additives not used for producing gasoline"},{"t":"content","children":[{"t":"p","text":"Except as provided in subsection (k), if any gasoline blend stock or additive (within the meaning of section 4083(a)(2)) is not used by any person to produce gasoline and such person establishes that the ultimate use of such gasoline blend stock or additive is not to produce gasoline, the Secretary shall pay (without interest) to such person an amount equal to the aggregate amount of the tax imposed on such person with respect to such gasoline blend stock or additive.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s6427/h/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Diesel fuel blend stocks or additives not used for producing diesel"},{"t":"content","children":[{"t":"p","text":"Except as provided in subsection (k), if any diesel fuel blend stock is not used by any person to produce diesel fuel and such person establishes that the ultimate use of such diesel fuel blend stock is not to produce diesel fuel, the Secretary shall pay (without interest) to such person an amount equal to the aggregate amount of the tax imposed on such person with respect to such diesel fuel blend stock.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s6427/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"Time for filing claims; period covered"},{"t":"para","id":"/us/usc/t26/s6427/i/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"General rule"},{"t":"content","children":[{"t":"p","text":"Except as otherwise provided in this subsection, not more than one claim may be filed under subsection (a), (b), (c), (d), (h), (","children":[{"t":"text","text":"l","tail":"), (m), or ("},{"t":"text","text":"o","tail":") 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\u2019s taxable year shall be his taxable year for purposes of subtitle A."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s6427/i/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Exceptions"},{"t":"subpara","id":"/us/usc/t26/s6427/i/2/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"If, at the close of any quarter of the taxable year of any person, at least $750 is payable in the aggregate under subsections (a), (b), (d), (h), (","children":[{"t":"text","text":"l","tail":"), (m), and ("},{"t":"text","text":"o","tail":") of this section and section 6421 to such person with respect to fuel used during\u2014"}]},{"t":"clause","id":"/us/usc/t26/s6427/i/2/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" such quarter, or","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s6427/i/2/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" any prior quarter (for which no other claim has been filed) during such taxable year,","tail":"\n"}],"tail":"\n\n"},{"t":"continuation","text":"a claim may be filed under this section with respect to such fuel.","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s6427/i/2/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Time for filing claim"},{"t":"content","children":[{"t":"p","text":"No claim filed under this paragraph shall be allowed unless filed during the first quarter following the last quarter included in the claim.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s6427/i/2/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Nonapplication of paragraph"},{"t":"content","children":[{"t":"p","text":"This paragraph shall not apply to any fuel used solely in any off-highway business use described in section 6421(e)(2)(C).","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s6427/i/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Special rule for mixture credits and the alternative fuel credit"},{"t":"subpara","id":"/us/usc/t26/s6427/i/3/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"A claim may be filed under subsection (e)(1) by any person with respect to a mixture described in section 6426 or under subsection (e)(2) by any person with respect to an alternative fuel (as defined in section 6426(d)(2)) for any period\u2014"},{"t":"clause","id":"/us/usc/t26/s6427/i/3/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" for which $200 or more is payable under such subsection (e)(1) or (e)(2), and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s6427/i/3/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" which is not less than 1 week.","tail":"\n"}],"tail":"\n\n"},{"t":"continuation","text":"In the case of an electronic claim, this subparagraph shall be applied without regard to clause (i).","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s6427/i/3/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Payment of claim"},{"t":"content","children":[{"t":"p","text":"Notwithstanding subsection (e)(1) or (e)(2), if the Secretary has not paid pursuant to a claim filed under this section within 45 days of the date of the filing of such claim (20 days in the case of an electronic claim), the claim shall be paid with interest from such date determined by using the overpayment rate and method under section 6621.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s6427/i/3/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Time for filing claim"},{"t":"content","children":[{"t":"p","text":"No claim filed under this paragraph shall be allowed unless filed on or before the last day of the first quarter following the earliest quarter included in the claim.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s6427/i/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Special rule for vendor refunds"},{"t":"subpara","id":"/us/usc/t26/s6427/i/4/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"A claim may be filed under paragraph (4)(C) or (5) of subsection (","children":[{"t":"text","text":"l","tail":") by any person with respect to fuel sold by such person for any period\u2014"}]},{"t":"clause","id":"/us/usc/t26/s6427/i/4/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" for which $200 or more ($100 or more in the case of kerosene) is payable under paragraph (4)(C) or (5) of subsection (","children":[{"t":"text","text":"l","tail":"), and"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s6427/i/4/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" which is not less than 1 week.","tail":"\n"}],"tail":"\n\n"},{"t":"continuation","text":"Notwithstanding subsection (","children":[{"t":"text","text":"l","tail":")(1), paragraph (3)(B) shall apply to claims filed under subsections (b)(4), ("},{"t":"text","text":"l","tail":")(4)(C)(ii), and ("},{"t":"text","text":"l","tail":")(5)."}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s6427/i/4/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Time for filing claim"},{"t":"content","children":[{"t":"p","text":"No claim filed under this paragraph shall be allowed unless filed on or before the last day of the first quarter following the earliest quarter included in the claim.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s6427/j","children":[{"t":"num","text":"(j)"},{"t":"heading","text":"Applicable laws"},{"t":"para","id":"/us/usc/t26/s6427/j/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"All provisions of law, including penalties, applicable in respect of the taxes imposed by sections 4041 and 4081 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.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s6427/j/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Examination of books and witnesses"},{"t":"content","children":[{"t":"p","text":"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(a) (relating to examination of books and witnesses) as if the claimant were the person liable for tax.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s6427/k","children":[{"t":"num","text":"(k)"},{"t":"heading","text":"Income tax credit in lieu of payment"},{"t":"para","id":"/us/usc/t26/s6427/k/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Persons not subject to income tax"},{"t":"chapeau","text":"Payment shall be made under this section only to\u2014"},{"t":"subpara","id":"/us/usc/t26/s6427/k/1/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" 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","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s6427/k/1/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" 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).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s6427/k/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Exception"},{"t":"content","children":[{"t":"p","text":"Paragraph (1) shall not apply to a payment of a claim filed under paragraph (2), (3), or (4) of subsection (i).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s6427/k/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Allowance of credit against income tax"},{"t":"content","children":[{"t":"p","text":"For allowances of credit against the income tax imposed by subtitle A for fuel used or resold by the purchaser, see section 34.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s6427/l","children":[{"t":"num","text":"(l)"},{"t":"heading","text":"Nontaxable uses of diesel fuel and kerosene"},{"t":"para","id":"/us/usc/t26/s6427/l/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"Except as otherwise provided in this subsection and in subsection (k), if any diesel fuel or kerosene on which tax has been imposed by section 4041 or 4081 is used by any person in a nontaxable use, the Secretary shall pay (without interest) to the ultimate purchaser of such fuel an amount equal to the aggregate amount of tax imposed on such fuel under section 4041 or 4081, as the case may be, reduced by any payment made to the ultimate vendor under paragraph (4)(C)(i).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s6427/l/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Nontaxable use"},{"t":"content","children":[{"t":"p","text":"For purposes of this subsection, the term \u201cnontaxable use\u201d means any use which is exempt from the tax imposed by section 4041(a)(1) other than by reason of a prior imposition of tax.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s6427/l/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Refund of certain taxes on fuel used in diesel-powered trains"},{"t":"chapeau","text":"For purposes of this subsection, the term \u201cnontaxable use\u201d includes fuel used in a diesel-powered train. The preceding sentence shall not apply with respect to\u2014"},{"t":"subpara","id":"/us/usc/t26/s6427/l/3/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" the Leaking Underground Storage Tank Trust Fund financing rate under sections 4041 and 4081, and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s6427/l/3/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" so much of the rate specified in section 4081(a)(2)(A) as does not exceed the rate applicable under section 4041(a)(1)(C)(ii).","tail":"\n"}],"tail":"\n\n"},{"t":"continuation","text":"The preceding sentence shall not apply in the case of fuel sold for exclusive use by a State or any political subdivision thereof.","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s6427/l/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Refunds for kerosene used in aviation"},{"t":"subpara","id":"/us/usc/t26/s6427/l/4/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Kerosene used in commercial aviation"},{"t":"chapeau","text":"In the case of kerosene used in commercial aviation (as defined in section 4083(b)) (other than supplies for vessels or aircraft within the meaning of section 4221(d)(3)), paragraph (1) shall not apply to so much of the tax imposed by section 4041 or 4081, as the case may be, as is attributable to\u2014"},{"t":"clause","id":"/us/usc/t26/s6427/l/4/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" the Leaking Underground Storage Tank Trust Fund financing rate imposed by such section, and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s6427/l/4/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" so much of the rate of tax specified in section 4041(c) or 4081(a)(2)(A)(iii), as the case may be, as does not exceed 4.3 cents per gallon.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s6427/l/4/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Kerosene used in noncommercial aviation"},{"t":"chapeau","text":"In the case of kerosene used in aviation that is not commercial aviation (as so defined) (other than any use which is exempt from the tax imposed by section 4041(c) other than by reason of a prior imposition of tax), paragraph (1) shall not apply to\u2014"},{"t":"clause","id":"/us/usc/t26/s6427/l/4/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" any tax imposed by subsection (c) or (d)(2) of section 4041, and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s6427/l/4/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"chapeau","text":" so much of the tax imposed by section 4081 as is attributable to\u2014"},{"t":"subclause","id":"/us/usc/t26/s6427/l/4/B/ii/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" the Leaking Underground Storage Tank Trust Fund financing rate imposed by such section, and","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t26/s6427/l/4/B/ii/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" so much of the rate of tax specified in section 4081(a)(2)(A)(iii) as does not exceed the rate specified in section 4081(a)(2)(C)(ii).","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s6427/l/4/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Payments to ultimate, registered vendor"},{"t":"clause","id":"/us/usc/t26/s6427/l/4/C/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"With respect to any kerosene used in aviation (other than kerosene described in clause (ii) or kerosene to which paragraph (5) applies), if the ultimate purchaser of such kerosene waives (at such time and in such form and manner as the Secretary shall prescribe) the right to payment under paragraph (1) and assigns such right to the ultimate vendor, then the Secretary shall pay the amount which would be paid under paragraph (1) to such ultimate vendor, but only if such ultimate vendor\u2014"},{"t":"subclause","id":"/us/usc/t26/s6427/l/4/C/i/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" is registered under section 4101, and","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t26/s6427/l/4/C/i/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" meets the requirements of subparagraph (A), (B), or (D) of section 6416(a)(1).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s6427/l/4/C/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Payments for kerosene used in noncommercial aviation"},{"t":"chapeau","text":"The amount which would be paid under paragraph (1) with respect to any kerosene to which subparagraph (B) applies shall be paid only to the ultimate vendor of such kerosene. A payment shall be made to such vendor if such vendor\u2014"},{"t":"subclause","id":"/us/usc/t26/s6427/l/4/C/ii/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" is registered under section 4101, and","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t26/s6427/l/4/C/ii/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" meets the requirements of subparagraph (A), (B), or (D) of section 6416(a)(1).","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s6427/l/5","children":[{"t":"num","text":"(5)"},{"t":"heading","text":"Registered vendors to administer claims for refund of diesel fuel or kerosene sold to State and local governments"},{"t":"subpara","id":"/us/usc/t26/s6427/l/5/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"Paragraph (1) shall not apply to diesel fuel or kerosene used by a State or local government.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s6427/l/5/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Sales of kerosene not for use in motor fuel"},{"t":"chapeau","text":"Paragraph (1) shall not apply to kerosene (other than kerosene used in aviation) sold by a vendor\u2014"},{"t":"clause","id":"/us/usc/t26/s6427/l/5/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" for any use if such sale is from a pump which (as determined under regulations prescribed by the Secretary) is not suitable for use in fueling any diesel-powered highway vehicle or train, or","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s6427/l/5/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" to the extent provided by the Secretary, for blending with heating oil to be used during periods of extreme or unseasonable cold.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s6427/l/5/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Payment to ultimate, registered vendor"},{"t":"chapeau","text":"Except as provided in subparagraph (D), the amount which would (but for subparagraph (A) or (B)) have been paid under paragraph (1) with respect to any fuel shall be paid to the ultimate vendor of such fuel, if such vendor\u2014"},{"t":"clause","id":"/us/usc/t26/s6427/l/5/C/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" is registered under section 4101, and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t26/s6427/l/5/C/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" meets the requirements of subparagraph (A), (B), or (D) of section 6416(a)(1).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s6427/l/5/D","children":[{"t":"num","text":"(D)"},{"t":"heading","text":"Credit card issuer"},{"t":"content","children":[{"t":"p","text":"For purposes of this paragraph, if the purchase of any fuel described in subparagraph (A) (determined without regard to the registration status of the ultimate vendor) is made by means of a credit card issued to the ultimate purchaser, the Secretary shall pay to the person extending the credit to the ultimate purchaser the amount which would have been paid under paragraph (1) (but for subparagraph (A)), but only if such person meets the requirements of clauses (i), (ii), and (iii) of section 6416(a)(4)(B). If such clause (i), (ii), or (iii) is not met by such person extending the credit to the ultimate purchaser, then such person shall collect an amount equal to the tax from the ultimate purchaser and only such ultimate purchaser may claim such amount.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s6427/m","children":[{"t":"num","text":"(m)"},{"t":"heading","text":"Diesel fuel used to produce emulsion"},{"t":"para","id":"/us/usc/t26/s6427/m/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"Except as provided in subsection (k), if any diesel fuel on which tax was imposed by section 4081 at the regular tax rate is used by any person in producing an emulsion described in section 4081(a)(2)(D) which is sold or used in such person\u2019s trade or business, the Secretary shall pay (without interest) to such person an amount equal to the excess of the regular tax rate over the incentive tax rate with respect to such fuel.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s6427/m/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Definitions"},{"t":"chapeau","text":"For purposes of paragraph (1)\u2014"},{"t":"subpara","id":"/us/usc/t26/s6427/m/2/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Regular tax rate"},{"t":"content","children":[{"t":"p","text":"The term \u201cregular tax rate\u201d means the aggregate rate of tax imposed by section 4081 determined without regard to section 4081(a)(2)(D).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s6427/m/2/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Incentive tax rate"},{"t":"content","children":[{"t":"p","text":"The term \u201cincentive tax rate\u201d means the aggregate rate of tax imposed by section 4081 determined with regard to section 4081(a)(2)(D).","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s6427/n","children":[{"t":"num","text":"(n)"},{"t":"heading","text":"Regulations"},{"t":"content","children":[{"t":"p","text":"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.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s6427/o","children":[{"t":"num","text":"(o)"},{"t":"heading","text":"Payments for taxes imposed by section 4041(d)"},{"t":"content","children":[{"t":"p","text":"For purposes of subsections (a), (b), and (c), the taxes imposed by section 4041(d) shall be treated as imposed by section 4041(a).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s6427/p","children":[{"t":"num","text":"(p)"},{"t":"heading","text":"Cross references"},{"t":"para","id":"/us/usc/t26/s6427/p/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" For civil penalty for excessive claims under this section, see section 6675.","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s6427/p/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" For fraud penalties, etc., see chapter 75 (section 7201 and following, relating to crimes, other offenses, and forfeitures).","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s6427/p/3","children":[{"t":"num","text":"(3)"},{"t":"content","text":" 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.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}