L. 89-44, Title VIII, § 809 (a), 79 Stat. 165; May 21, 1970, Pub. L. 91–258, Title II, §§ 205 (c) (7) and 207 (b), 84 Stat. 242, 248.)

Sec. 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 otherwise than as a fuel in a highway vehicle (1) which (at the time of such use) is registered, or is required to be registered, for highway use under the laws of any State or foreign country, or (2) which, in the case of a highway vehicle owned by the United States, is used on the highway, the Secretary or his delegate shall pay (without interest) to the ultimate purchaser of such gasoline an amount equal to 1 cent for each gallon of gasoline so used on which tax was paid at the rate of 3 cents a gallon and 2 cents for each gallon of gasoline so used on which tax was paid at the rate of 4 cents a gallon. Except as provided in paragraph (3) of subsection (e) of this section, in the case of gasoline used after June 30, 1970, as a fuel in an aircraft, the Secretary or his delegate 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) Local transit systems

(1) ALLOWANCE.-Except as provided in subsection (i), if gasoline is used during any calendar quarter in vehicles while engaged in furnishing scheduled common carrier public passenger land transportation service along regular routes, the Secretary or his delegate shall, subject to the provisions of paragraph (2), pay (without interest) to the ultimate purchaser of such gasoline the amount determined by multiplying

(A) 1 cent for each gallon of gasoline so used on which tax was paid at the rate of 3 cents a gallon and 2 cents for each gallon of gasoline so used on which tax was paid at the rate of 4 cents a gallon, by

(B) the percentage which the ultimate purchaser's commuter fare revenue derived from such scheduled service during such quarter was of his total passenger fare revenue derived from such scheduled service during such quarter.

(2) LIMITATION.-Paragraph (1) shall apply in respect of gasoline used during any calendar quarter only if at least 60 percent of the total passenger fare revenue derived during such quarter from scheduled service described in paragraph (1) by the person filing the claim was attributable to commuter fare revenue derived during such quarter by such person from such scheduled service.

(c) Time for filing claims; period covered

(1) GASOLINE USED BEFORE JULY 1, 1965.-Except as provided in paragraphs (2) and (3), not more than one claim may be filed under subsection (a), and not more than one claim may be filed under subsection (b), by any person with respect to gasoline used during the one-year period ending on June 30 of any year. No claim shall be allowed under this paragraph with respect to any one-year period unless filed on or before September 30 of the year in which such one-year period ends.

(2) EXCEPTION.-Except as provided in paragraph (3), if $1,000 or more is payable under this section to any person with respect to gasoline used during a calendar quarter, a claim may be filed under this section by such person with respect to gasoline used during such quarter. No claim filed under this paragraph shall be allowed unless filed on or before the last day of the first calendar quarter following the calendar quarter for which the claim is filed.

(3) GASOLINE USED AFTER JUNE 30, 1965.—

(A) In general.-In the case of gasoline used after June 30, 1965

(i) except as provided in subparagraph (B), not more than one claim may be filed under subsection (a), and not more than one claim may be filed under subsection (b), by any person with respect to gasoline used during his taxable year; and (ii) no claim shall be allowed under this subparagraph 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 paragraph, a person's taxable year shall be his taxable year for purposes of subtitle A, except that a person's first taxable year beginning after June 30, 1965, shall include the period after June 30, 1965, and before the beginning of such first taxable

year.

(B) Exception. If $1,000 or more is payable under this section to any person with respect to gasoline used during any of the first three quarters of his taxable year, a claim may be filed under this section by such person with respect to gasoline used during such quarter. No claim filed under this subparagraph shall be allowed unless filed on or before the last day of the first quarter following the quarter for which the claim is filed.

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

(2) COMMUTER FARE REVENUE.-The term "commuter fare revenue" means revenue attributable to fares derived from the transportation of persons and attributable to

(A) amounts paid for transportation which do not exceed 60

cents,

(B) amounts paid for commutation or season tickets for single trips of less than 30 miles, oi

(C) amounts paid for commutation tickets for one month or less.

(e) Exempt sales; other payments or refunds available

(1) EXEMPT SALES.-No amount shall be payable under this section with respect to any gasoline which the Secretary or his delegate 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 reduced by any other amount which the Secretary or his delegate determines is payable under this section, or is refundable under any provision of this title, to any person with respect to such gasoline.

(2) GASOLINE USED ON FARMS.-This section shall not apply in respect of gasoline which was (within the meaning of paragraphs (1), (2), and (3) of section 6420 (c)) used on a farm for farming purposes.

(3) GASOLINE USED IN NONCOMMERCIAL AVIATION.-This section shall not apply in respect of gasoline which is used after June 30, 1970, as a fuel in an aircraft in noncommercial aviation (as defined in section 4041 (c) (4)).

(f) 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 or his delegate 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. (g) Regulations

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

(h) Effective date

This section shall apply only with respect to gasoline purchased after June 30, 1956, and before October 1, 1979.

(i) Income tax credit in lieu of payment

(1) PERSONS NOT SUBJECT TO INCOME TAX.-Payment shall be made under subsections (a) and (b) with respect to gasoline used after June 30, 1965, 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) EXCEPTION.-Paragraph (1) shall not apply to a payment of a claim filed under subsection (c) (3) (B).

(3) ALLOWANCE OF CREDIT AGAINST INCOME TAX.-For allowance of credit against the tax imposed by subtitle A for gasoline used after June 30, 1965, see section 39.

(j) Cross references

(1) For rate of tax in case of special fuels used in noncommercial aviation or for nonhighway purposes, see section 4041.

(2) For civil penalty for excessive claims 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).

(Added June 29, 1956, c. 462, Title II, § 208 (c), 70 Stat. 394, and amended July 25, 1956, c. 725, § 2, 70 Stat. 644; Sept. 2, 1958, Pub. L. 85-859, Title I, §§ 163 (d) (3), 164(a), 72 Stat. 1312; Sept. 21, 1959, Pub. L. 86–342, Title II, § 201(d) (2), 73 Stat. 615; June 29, 1961, Pub. L. 87-61, Title II, § 201 (e), 75 Stat. 124; June 28, 1962, Pub. L. 87-508, § 5(c) (2), 76 Stat. 118; June 21, 1965, Pub. L. 89-44, Title VIII, § 809(b), 79 Stat. 166; May 21, 1970, Pub. L. 91-258, Title II, §§ 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.)

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Sec. 6424. Lubricating oil not used in highway motor vehicles.

(a) Payments

Except as provided in subsection (g), if lubricating oil (other than cutting oils, as defined in section 4092 (b), and other than oil which has previously been used) is used otherwise than in a highway motor vehicle, the Secretary or his delegate shall pay (without interest) to the ultimate purchaser of such lubricating oil an amount equal to 6 cents for each gallon of lubricating oil so used.

(b) 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) by any person

with respect to lubricating oil use during his taxable year. No claim shall be allowed under this paragraph with respect to lubricating oil 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, except that a person's first taxable year beginning after December 31, 1965, shall include the period after December 31, 1965, and before the beginning of such first taxable year.

(2) EXCEPTION.-If $1,000 or more is payable under this section to any person with respect to lubricating oil used during any of the first three quarters of his taxable year, a claim may be filed under this section by such person with respect to lubricating oil used during such quarter. 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.

(c) Exempt sales

No amount shall be payable under this section with respect to any lubricating oil which the Secretary or his delegate determines was exempt from the tax imposed by section 4091. The amount which (but for this sentence) would be payable under this section with respect to any lubricating oil shall be reduced by any other amount which the Secretary or his delegate determines is payable under this section, or is refundable under any provision of this title, to any person with respect to such lubricating oil. (d) Applicable laws

(1) IN GENERAL.-All provisions of law, including penalties, applicable in respect of the tax imposed by section 4091 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 or his delegate 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.

(e) Regulations

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

(f) Effective date

This section shall apply only with respect to lubricating oil placed in use after December 31, 1965.