EFFECTIVE DATE OF 1976 AMENDMENT Amendment of subsecs. (a)(1), (b)(1), (e) by section 1904(b)(1), (2) of Pub. L. 94-455 effective on the first day of the first month which begins more than 90 days after Oct. 4, 1976, see section 1904(d) of Pub. L. 94-455, set out as a note under section 4041 of this title.

Amendment of subsec. (a)(3) by section 1906(a)(24)(A) of Pub. L. 94-455 effective on the first day of the first month which begins more than 90 days after Oct. 4, 1976, see section 1906(d)(1) of Pub. L. 94-455, set out as a note under section 6013 of this title.

Section 1906(a)(24)(B)(ii) of Pub. L. 94-455 provided that: "The repeals made by clause (i) [striking out prior subsec. (b)(2)(G) to (J) of this section] shall apply with respect to the use or resale for use of liquids after December 31, 1976."

Section 2108(b) of Pub. L. 94-455 provided that: "The amendment made by this section [enacting subsec. (b)(2)(T), redesignating subsec. (b)(2)(K) of this section by section 1906(a)(24)(B)(i) of Pub. L. 94-455] shall apply to parts and accessories sold after the date of the enactment of this Act [Oct. 4, 1976]." EFFECTIVE DATE OF 1971 AMENDMENT

Amendment by Pub. L. 92-178 applicable with respect to articles sold on or after the day after Dec. 10, 1971, see section 401(h)(1) of Pub. L. 92-178, set out as a note under section 4061 of this title.

EFFECTIVE DATE OF 1970 AMENDMENTS

Section 302(c) of Pub. L. 91-614 provided that: "The amendments made by subsections (a) and (b) of this section [amending this section] shall apply only with respect to claims for credit or refund filed after the date of the enactment of this Act [Dec. 31, 1970], but only if the filing of the claim is not barred on the day after the date of the enactment of this Act by any law or rule of law."

Amendment by Pub. L. 91-258 effective on July 1, 1970, see section 211(a) of Pub. L. 91-258, set out as a note under section 4041 of this title.

EFFECTIVE DATE OF 1965 Amendment

Amendment of subsec. (b)(5) by section 207(c) of Pub. L. 89-44 effective June 22, 1965, see section 701(a) of Pub. L. 89-44, set out as an Effective Date of 1965 Amendment note under section 4061 of this title.

Subsec. (b)(2)(R) applicable with respect to articles sold on or after June 22, 1965, see section 801(e) of Pub. L. 89-44, set out as a note under section 4063 of this title.

Amendment of administrative provisions of section by section 601 of Pub. L. 89-44 to take effect in a manner consistent with the effective date of change of tax provisions to which related, see section 701(e) of Pub. L. 89-44, set out as a note under section 6103 of this title.

EFFECTIVE DATE OF 1962 AMENDMENT

Section 5(d) of Pub. L. 87-508 provided in part that: "The amendments made by subsection (c)(3) [amending subsec. (b)(2)(H) of this section] shall apply only in respect to the use or sale of special fuels made on or after November 16, 1962."

EFFECTIVE DATE OF 1961 AMENDMENT Amendment by Pub. L. 87-61 applicable only in the case of gasoline sold on or after Oct. 1, 1961, see section 208 of Pub. L. 87-61, set out as a note under section 4041 of this title.

EFFECTIVE DATE OF 1960 AMENDMENTS Amendment by Pub. L. 86-781 applicable with respect to articles sold on or after the first day of the first calendar quarter beginning more than twenty days after Sept. 14, 1960, see section 3 of Pub. L.

86-781, set out as a note under section 4216 of this title.

Amendment by Pub. L. 86-418 applicable only with respect to bicycle tires and tubes sold by the manufacturer, producer, or importer thereof on or after the first day of the first month which begins more than 10 days after April 8, 1960, see section 4 of Pub. L. 86-418. set out as a note under section 4221 of this title.

EFFECTIVE DATE OF 1958 AMENDMENTS

Section 163(b) of Pub. L. 85-859 provided that: "Section 6416(b) of the Internal Revenue Code of 1954, as amended by this Act, shall apply only with respect to articles exported, sold, or resold, as the case may be, on or after the effective date specified in section 1(c) of this Act [set out as a note under section 6415 of this title]."

For effective date of amendment by Pub. L. 85-475, see section 4(c) of Pub. L. 85-475, set out as a note under section 6415 of this title.

EFFECTIVE DATE OF 1956 AmendmenTS

Act Apr. 2, 1956, § 2(b)(2), provided that: "The amendment made by paragraph (1) [amending subsec. (b)(2)(C)] shall apply with respect to liquid sold after December 31, 1955."

Amendment by act June 29, 1956, effective June 29, 1956, see section 211 of act June 29, 1956, set out as a note under section 4041 of this title.

EFFECTIVE DATE OF 1955 AMENDMENTS

Section 3 of act Aug. 11, 1955, ch. 805, provided that: "The amendments made by the first section and section 2 of this Act [Aug. 11, 1955] shall take effect on the first day of the first month which begins more than ten days after the date of the enactment of this Act (Aug. 11, 1955]. Notwithstanding the preceding sentence

"(1) the repeal of section 6416(b)(2)(G) of the Internal Revenue Code of 1954 shall apply only with respect to articles sold by the manufacturer, producer, or importer on or after the first day of the first month which begins more than 10 days after the date of the enactment of this Act [Aug. 11, 19551, and

"(2) section 6416(b)(3)(B) of the Internal Revenue Code of 1954, as amended by subsection (i) of the first section of this Act [Aug. 11, 1955], shall apply with respect to articles used on or after such first day by the manufacturer or producer as material in the manufacture of, production of, or as a component part of, another article."

Section 3 of act Aug. 11, 1955, ch. 793, provided that: "The amendments made by this Act [amending sections 4091, 4092, and 6416(b)(2)(I) of this title] shall take effect on the first day of the first calendar quarter which begins more than ten days after the date of the enactment of this Act [Aug. 11, 1955]".

OVERPAYMENT OF TAX ON CERTAIN RADIO RECEIVING SETS AND RADIO AND TELEVISION COMPONENTS Section 163(e) of Pub. L. 85-859 provided that: "If"(1) a radio receiving set, an automobile radio receiving set, or a radio or television component was (before any other use) used as a component part of any other article, and

"(2) such other article was (before any other use) by any person exported, or sold to a State or local government for the exclusive use of a State or local government,

then any tax imposed by chapter 32 of the Internal Revenue Code of 1954 (or the corresponding provisions of prior revenue law) in respect of such set or component which has been paid shall be deemed to have been an overpayment, by the manufacturer, producer, or importer of such other article, at the time paid. No credit or refund shall be allowed or made under this subsection unless the manufacturer, pro

ducer, or importer of such other article establishes to the satisfaction of the Secretary of the Treasury or his delegate that he did not include the amount of the tax in the price of such other article (and has not collected the amount of the tax from the purchaser of such other article), that the amount of the tax has been repaid to the ultimate purchaser of such other article, or that he has obtained the written consent of such ultimate purchaser to the allowance of the credit or the making of the refund. No interest shall be allowed or paid in respect of any such overpayment."

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 4216, 4227, 6421, 6511, 6612, 7851 of this title.

[§ 6417.

Repealed. Pub. L. 94-455, title XIX, § 1906(a)(25), Oct. 4, 1976, 90 Stat. 1827]

Section, act Aug. 16, 1954, ch. 736, 68A Stat. 801, related to a tax credit or refund to any person who has sold to a State, or a political subdivision thereof, any article containing any oil, combination, or mixture, upon the processing of which a tax has been paid under former section 4511, and to a refund to the exporter of the tax paid under former subchapter B of chapter 37.

EFFECTIVE DATE OF REPEAL

Repeal effective on the first day of the first month which begins more than 90 days after Oct. 4, 1976, see section 1906(d)(1) of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section 6013 of this title.

§ 6418. Sugar

(a) Use as livestock feed or for distillation or production of alcohol

Upon the use of any manufactured sugar, or article manufactured therefrom, as livestock feed, or in the production of livestock feed, or for the distillation of alcohol, or for the production of alcohol (other than alcohol produced for human food consumption), there shall be paid by the Secretary to the person so using such manufactured sugar, or article manufactured therefrom, the amount of any tax paid under section 4501 with respect thereto.

(b) Exportation

Upon the exportation from the United States to a foreign country, or the shipment from the United States to any possession of the United States except Puerto Rico, of any manufactured sugar, or any article manufactured wholly or partly from manufactured sugar, with respect to which tax under the provisions of section 4501(a) has been paid, the amount of such tax shall be paid by the Secretary to the consignor named in the bill of lading under which the article was exported or shipped to a possession, or to the shipper, or to the manufacturer of the manufactured sugar or of the articles exported, if the consignor waives any claim thereto in favor of such shipper or manufacturer.

(Aug. 16, 1954, ch. 736, 68A Stat. 801; May 29, 1956, ch. 342, § 21(b), 70 Stat. 221; May 24, 1962, Pub. L. 87-456, title III, § 302(c), 76 Stat. 77; Nov. 8, 1965, Pub. L. 89-331, § 9(b), 79 Stat. 1278; Oct. 4, 1976, Pub. L. 94-455, title XIX, § 1906(b)(13)(A), 90 Stat. 1834.)

AMENDMENTS

1976-Subsecs. (a), (b). Pub. L. 94-455 struck out "or his delegate" following "Secretary".

1965-Subsec. (a). Pub. L. 89-331 inserted "or production" following "distillation" in the subsection heading and "or for the production of alcohol (other than alcohol produced for human food consumption)," following "the distillation of alcohol," in the text.

1962-Subsec. (b). Pub. L. 87-456 eliminated provisions which prohibited the Secretary or his delegate from making payment of the tax with respect to any manufactured sugar, or article, upon which, through substitution or otherwise, a drawback of any tax paid under section 4501(b) has been or is to be claimed under any provisions of law made applicable by section 4504.

1956-Subsec. (a). Act May 29, 1956, substituted "4501" for "4501(a)".

EFFECTIVE DATE OF 1965 AMENDMENT Amendment by Pub. L. 89-331 effective Nov. 8, 1965, see section 14 of Pub. L. 89-331.

EFFECTIVE DATE OF 1962 AMENDMENT

Amendment by Pub. L. 87-456 effective with respect to articles entered, or withdrawn from warehouse, for consumption on or after Aug. 31, 1963, see section 501(a) of Pub. L. 87-456, set out as an Effective Date of Tariff Classification Act of 1962 note preceding section 1202 of Title 19, Customs Duties.

EFFECTIVE DATE OF 1956 AMENDMENT Amendment by act May 29, 1956, effective as of Jan. 1, 1956, see section 22 of act May 29, 1956.

CROSS REFERENCES

Limitations on credit or refund, see section 6511 of this title.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 6511, 7655 of this title.

§ 6419. Excise tax on wagering

(a) Credit or refund generally

No overpayment of tax imposed by chapter 35 shall be credited or refunded (otherwise than under subsection (b)), in pursuance of a court decision or otherwise, unless the person who paid the tax establishes, in accordance with regulations prescribed by the Secretary, (1) that he has not collected (whether as a separate charge or otherwise) the amount of the tax from the person who placed the wager on which the tax was imposed, or (2) that he has repaid the amount of the tax to the person who placed such wager, or unless he files with the Secretary written consent of the person who placed such wager to the allowance of the credit or the making of the refund. In the case of any laid-off wager, no overpayment of tax imposed by chapter 35 shall be so credited or refunded to the person with whom such laid-off wager was placed unless he establishes, in accordance with regulations prescribed by the Secretary, that the provisions of the preceding sentence have been complied with both with respect to the person who placed the laid-off wager with him and with respect to the person who placed the original wager.

(b) Credit or refund on wagers laid-off by taxpayer

Where any taxpayer lays off part or all of a wager with another person who is liable for tax imposed by chapter 35 on the amount so laid off, a credit against such tax shall be allowed, or a refund shall be made to, the taxpayer laying off such amount. Such credit or refund shall be in an amount which bears the same ratio to the amount of tax which such taxpayer paid on the original wager as the amount so laid off bears to the amount of the original wager. Credit or refund under this subsection shall be allowed or made only in accordance with regulations prescribed by the Secretary, and no interest shall be allowed with respect to any amount so credited or refunded.

(Aug. 16, 1954, ch. 736, 68A Stat. 801; Oct. 4, 1976, Pub. L. 94-455, title XIX, § 1906(b)(13)(A), 90 Stat. 1834.)

AMENDMENTS

1976-Subsecs. (a), (b). Pub. L. 94-455 struck out "or his delegate" following "Secretary".

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 6612 of this title.

§ 6420. Gasoline used on farms

(a) Gasoline

Except as provided in subsection (g), if gasoline is used on a farm for farming purposes, the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline the amount determined by multiplying

(1) the number of gallons so used, by

(2) the rate of tax on gasoline under section 4081 which applied on the date he purchased such gasoline.

(b) Time for filing claims; period covered

Not more than one claim may be filed under this section by any person with respect to gasoline used during his taxable year, and no claim shall be allowed under this section with respect to gasoline used during any taxable year unless filed by such person 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 subsection, a person's taxable year shall be his taxable year for purposes of subtitle A.

(c) Meaning of terms

For purposes of this section-

(1) Use on a farm for farming purposes

Gasoline shall be treated as used on a farm for farming purposes only if used (A) in carrying on a trade or business, (B) on a farm situated in the United States, and (C) for farming purposes.

(2) Farm

The term "farm" includes stock, dairy, poultry, fruit, fur-bearing animal, and truck farms, plantations, ranches, nurseries, ranges, greenhouses or other similar structures used primarily for the raising of agricultural or horticultural commodities, and orchards.

(3) Farming purposes

Gasoline shall be treated as used for farming purposes only if used

(A) by the owner, tenant, or operator of a farm, in connection with cultivating the soil, or in connection with raising or harvesting any agricultural or horticultural commodity, including the raising, shearing, feeding, caring for, training, and management of livestock, bees, poultry, and furbearing animals and wildlife, on a farm of which he is the owner, tenant, or operator;

(B) by the owner, tenant, or operator of a farm, in handling, drying, packing, grading, or storing any agricultural or horticultural commodity in its unmanufactured state; but only if such owner, tenant or operator produced more than one-half of the commodity which he so treated during the period with respect to which claim is filed;

(C) by the owner, tenant, or operator of a farm, in connection with

(i) the planting, cultivating, caring for, or cutting of trees, or

(ii) the preparation (other than milling) of trees for market,

incidental to farming operations; or

(D) by the owner, tenant, or operator of a farm, in connection with the operation, management, conservation, improvement, or maintenance of such farm and its tools and equipment.

(4) Certain farming use other than by owner, etc.

In applying paragraph (3)(A) to a use on a farm for any purpose described in paragraph (3)(A) by any person other than the owner, tenant, or operator of such farm

(A) the owner, tenant, or operator of such farm shall be treated as the user and ultimate purchaser of the gasoline, except that (B) if—

(i) the person so using the gasoline is an aerial or other applicator of fertilizers or other substances and is the ultimate purchaser of the gasoline, and

(ii) the person described in subparagraph (A) waives (at such time and in such form and manner as the Secretary shall prescribe) his right to be treated as the user and ultimate purchaser of the gasoline,

then subparagraph (A) of this paragraph shall not apply and the aerial or other applicator shall be treated as having used such gasoline on a farm for farming purposes.

(5) Gasoline

The term "gasoline" has the meaning given to such term by section 4082(b).

(d) Exempt sales; other payments or refunds available

No amount shall be payable under this section with respect to any gasoline which the Secretary determines was exempt from the tax imposed by section 4081. The amount which (but for this sentence) would be payable under this section with respect to any gasoline shall be re

duced by any other amount which the Secretary determines is payable under this section, or is refundable under any provision of this title, to any person with respect to such gasoline.

(e) Applicable laws

(1) In general

All provisions of law, including penalties, applicable in respect of the tax imposed by section 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.

(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. (3) Fractional parts of a dollar

Section 7504 (granting the Secretary discretion with respect to fractional parts of a dollar) shall not apply.

(f) Regulations

The Secretary may by regulations prescribe the conditions, not inconsistent with the provisions of this section, under which payments may by made under this section.

(g) Income tax credit in lieu of payment

(1) Persons not subject to income tax

Payment shall be made under subsection (a), only to

(A) the United States or an agency or instrumentality thereof, a State, a political subdivision of a State, or an 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) Allowance of credit against income tax

For allowance of credit against the tax imposed by subtitle A see section 39.

(h) Termination

This section shall apply only with respect to gasoline purchased before October 1, 1988. (i) Cross references

(1) For exemption from tax in case of special fuels used on a farm for farming purposes, see section 4041(f). (2) For civil penalty for excessive claim under this section see section 6675.

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

(4) 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.

'So in original. Probably should be "and".

(Added Apr. 2, 1956, ch. 160, § 1, 70 Stat. 87, and amended Sept. 2, 1958, Pub. L. 85-859, title I, § 163(d)(2), 72 Stat. 1311; June 21, 1965, Pub. L. 89-44, title VIII, § 809(a), 79 Stat. 165; May 21, 1970, Pub. L. 91-258, title II, §§ 205(c)(7), 207(b), 84 Stat. 242, 248; Oct. 4, 1976, Pub. L. 94-455, title XIX, §§ 1906(a)(26), (b)(6)(A), (13)(A), 90 Stat. 1827, 1833, 1834; Oct. 14, 1978, Pub. L. 95-458, § 3(a), (c), 92 Stat. 1257; Jan. 6, 1983, Pub. L. 97-424, title V, §§ 511(f), 516(b)(4), 96 Stat. 2172, 2183; Jan. 14, 1983, Pub. L. 97-473, title II, § 202(b)(12), 96 Stat. 2610.)

PRIOR PROVISIONS

A prior section 6420 was renumbered section 6422.

AMENDMENTS

1983-Subsec. (c)(4)(B). Pub. L. 97-424, § 511(f), substituted provision that, if the person so using the gasoline is an aerial or other applicator of fertilizers or other substances and is the ultimate purchaser of the gasoline, and the person described in subparagraph (A) waives (at such time and in such form and manner as the Secretary shall prescribe) his right to be treated as the user and ultimate purchaser of the gasoline, then subparagraph (A) of this paragraph shall not apply and the aerial or other applicator shall be treated as having used such gasoline on a farm for farming purposes, for provision that, if the person so using the gasoline were an aerial applicator who was the ultimate purchaser of the gasoline and the person described in subparagraph (A) waived (at such time and in such form and manner as the Secretary was to prescribe) his right to be treated as the user and ultimate purchaser of the gasoline, then subparagraph (A) of this paragraph would not apply and the aerial applicator would be treated as having used such gasoline on a farm for farming purposes.

Subsec. (h). Pub. L. 97-424, § 516(b)(4), added subsec. (h). Former subsec. (h) redesignated (i).

Subsec. (h)(4). Pub. L. 97-473 purported to add par. (4). See Amendment note below for subsec. (i)(4). Subsec. (i). Pub. L. 97-424, § 516(b)(4), redesignated former subsec. (h) as (i).

Subsec. (i)(4). Pub. L. 97-473 added par. (4). Notwithstanding the directory language that par. (4) be added to subsec. (h), it was added to subsec. (i) to reflect the probable intent of Congress and the intervening redesignation of subsec. (h) as (i) by Pub. L. 97-424.

1978-Subsec. (c)(3)(A). Pub. L. 95-458, § 3(c), struck out provision that if the use of gasoline is by any person other than the owner, tenant, or operator of a farm, then in applying subsec. (a) of this subparagraph, the owner, tenant, or operator of the farm on which gasoline or a liquid taxable under section 4041 is used would be treated as the user or ultimate purchaser of the gasoline or liquid.

Subsec. (c)(4), (5). Pub. L. 95-458, § 3(a), added par. (4) and redesignated former par. (4) as (5).

1976-Subsec. (a). Pub. L. 94-455, § 1906(a)(26) (C)(ii), (b)(13)(A), substituted "subsection (g)" for "subsection (h)" and struck out "or his delegate" following "Secretary".

Subsec. (b). Pub. L. 94-455, § 1906(a)(26)(A), among other changes, struck out provisions relating to gasoline used before July 1, 1965, and struck out requirement that a person's first taxable year beginning after June 30, 1965, include the period after June 30, 1965. and before the beginning of that first taxable year.

Subsec. (c)(3)(A). Pub. L. 94-455, § 1906(b)(6)(A), among other changes, struck out “and for purposes of section 6416(b)(2)(G)(ii) (but not for purposes of section 4041)," following "in applying subsection (a) to this subparagraph," and provision that if the use of gasoline is by any person other than the owner, tenant, or operator of the farm, then, for purposes of applying section 6416(b)(2)(G)(ii), any tax paid under

section 4041 in respect of a liquid used on a farm for farming purposes be treated as having been paid by the owner, tenant, or operator of the farm on which such liquid is used.

Subsec. (d). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary".

Subsec. (e)(1). Pub. L. 94-455, § 1906(a)(26)(B), substituted "apply in respect" for "apply in in respect". Subsec. (e)(2). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary". Subsec. (f). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary".

Subsec. (g). Pub. L. 94-455, § 1906(a)(26)(C)(i), (D), redesignated subsec. (h) as (g), and as so redesignated, struck out in par. (1) "with respect to gasoline used after June 30, 1965," following "subsection (a)" and in par. (2) "for gasoline used after June 30, 1965" following "subtitle A". Former subsec. (g), which provided that this section applies only with respect to gasoline purchased after Dec. 31, 1955, was struck out.

Subsecs. (h), (i). Pub. L. 94-455, § 1906(a)(26)(C)(i), redesignated subsecs. (h) and (i) as (g) and (h), respectively.

1970-Subsec. (b)(2)(B). Pub. L. 91-258, § 207(b), substituted "a claim for credit or refund of overpayment of income tax" for "an income tax return" following "time prescribed by law for filing".

Subsec. (i)(1). Pub. L. 91-258, § 205(c)(7)(A), (B), substituted "special fuels" for "diesel fuel and special motor fuels" and "section 4041(f)" for "section 4041(d)", respectively.

1965-Subsec. (a). Pub. L. 89-44, § 809(a)(1)(A), struck out "If" and inserted in lieu thereof "Except as provided in subsection (h), if".

Subsec. (b). Pub. L. 89-44, § 809(a)(2), designated existing provisions as par. (1) and made it applicable to gasoline used before July 1, 1965, and added par. (2). Subsec. (d). Pub. L. 89-44, § 809(a)(3), struck out "paid" in the first sentence and inserted "payable" in lieu thereof.

EFFECTIVE DATE OF 1983 AmendmenT Amendment by section 511 of Pub. L. 97-424 effective Apr. 1, 1983, see section 511(h)(1) of Pub. L. 97-424, set out as a note under section 4041 of this title.

EFFECTIVE DATE OF 1978 Amendment

Section 3(d) of Pub. L. 95-458 provided that: "The amendments made by this section [amending sections 6420 and 6427 of this title] shall take effect on the first day of the first calendar quarter which begins more than 90 days after the date of the enactment of this Act [Oct. 14, 1978]."

EFFECTIVE DATE OF 1976 AMENDMENT Amendment of subsecs. (a), (b), (e), (g), (h), (i) by section 1906(a)(26) of Pub. L. 94-455 effective on the first day of the first month which begins more than 90 days after Oct. 4, 1976, see section 1906(d)(1) of Pub. L. 94-455, set out as a note under section 6013 of this title.

Section 1906(b)(6)(B) of Pub. L. 94-455 provided that: "The amendments made by subparagraph (A) [amending subsec. (c)(3)(A) of this section] shall apply with respect to the use of liquids after December 31, 1970."

EFFECTIVE DATE OF 1970 Amendment

Amendment by Pub. L. 91-258 effective July 1, 1970, and applicable with respect to taxable years ending after June 30, 1970, respectively, see section 211(a), (b)

of Pub. L. 91-258, set out as a note under section 4041 of this title.

EFFECTIVE DATE OF 1965 AMENDMENT

Section 809(f) of Pub. L. 89-44 provided that: "The amendments made by subsections (a) and (b) [amending this section and section 6421(a), (b), (c)(1), (2), (3), (e)(1), (i) and (j) of this title] shall apply with respect to gasoline used on or after July 1, 1965. The amendments made by subsections (c) and (d) [renumbering section 39 as 40, adding new section 39 and amending sections 72(n)(3), 874(a), 1314(a)(1)(A), 1481(b)(2)(A)(i), 6201(a)(4), 6211(b)(4), 6213(e)(3) and 6401(b) of this title] shall apply to taxable years beginning on or after July 1, 1965."

EFFECTIVE DATE OF 1958 AMENDMENT Amendment by Pub. L. 85-859 effective on the first day of the first calendar quarter which begins more than 60 days after Sept. 2, 1958, see section 1(c) of Pub. L. 85-859, set out as a note under section 6415 of this title.

CROSS REFERENCES

Time and place for examination pursuant to subsection (e)(2) of this section, see section 7605 of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 39, 48, 451, 4041, 4084, 6206, 6416, 6421, 6427, 6504, 6511, 6612, 6675, 7210, 7603, 7604, 7605, 7609, 7610, 9502, 9503 of this title; title 49 App. section 1742.

§ 6421. Gasoline used for certain nonhighway purposes or by local transit systems

(a) Nonhighway uses

Except as provided in subsection (i), if gasoline is used in an off-highway business use, the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline an amount equal to the amount determined by multiplying the number of gallons so used by the rate at which tax was imposed on such gasoline under section 4081. Except as provided in paragraph (3) of subsection (e) of this section, in the case of gasoline used as a fuel in an aircraft, the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline an amount equal to the amount determined by multiplying the number of gallons of gasoline so used by the rate at which tax was imposed on such gasoline under section 4081.

(b) Intercity, local, or school buses (1) Allowance

Except as provided in paragraph (2) and subsection (i), if gasoline 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 gasoline an amount equal to the product of the number of gallons of gasoline so used multiplied by the rate at which tax was imposed on such gasoline by section 4081.