
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC4612]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                 Subtitle D--Miscellaneous Excise Taxes
 
                     CHAPTER 38--ENVIRONMENTAL TAXES
 
                     Subchapter A--Tax on Petroleum
 
Sec. 4612. Definitions and special rules


(a) Definitions

    For purposes of this subchapter--

                            (1) Crude oil

        The term ``crude oil'' includes crude oil condensates and 
    natural gasoline.

                       (2) Domestic crude oil

        The term ``domestic crude oil'' means any crude oil produced 
    from a well located in the United States.

                        (3) Petroleum product

        The term ``petroleum product'' includes crude oil.

                          (4) United States

        (A) In general

            The term ``United States'' means the 50 States, the District 
        of Columbia, the Commonwealth of Puerto Rico, any possession of 
        the United States, the Commonwealth of the Northern Mariana 
        Islands, and the Trust Territory of the Pacific Islands.

        (B) United States includes continental shelf areas

            The principles of section 638 shall apply for purposes of 
        the term ``United States''.

        (C) United States includes foreign trade zones

            The term ``United States'' includes any foreign trade zone 
        of the United States.

                     (5) United States refinery

        The term ``United States refinery'' means any facility in the 
    United States at which crude oil is refined.

            (6) Refineries which produce natural gasoline

        In the case of any United States refinery which produces natural 
    gasoline from natural gas, the gasoline so produced shall be treated 
    as received at such refinery at the time so produced.

                            (7) Premises

        The term ``premises'' has the same meaning as when used for 
    purposes of determining gross income from the property under section 
    613.

                             (8) Barrel

        The term ``barrel'' means 42 United States gallons.

                    (9) Fractional part of barrel

        In the case of a fraction of a barrel, the tax imposed by 
    section 4611 shall be the same fraction of the amount of such tax 
    imposed on a whole barrel.

(b) Only 1 tax imposed with respect to any product

    No tax shall be imposed by section 4611 with respect to any 
petroleum product if the person who would be liable for such tax 
establishes that a prior tax imposed by such section has been imposed 
with respect to such product.

(c) Credit where crude oil returned to pipeline

    Under regulations prescribed by the Secretary, if an operator of a 
United States refinery--
        (1) removes crude oil from a pipeline, and
        (2) returns a portion of such crude oil into a stream of other 
    crude oil in the same pipeline,

there shall be allowed as a credit against the tax imposed by section 
4611 to such operator an amount equal to the product of the rate of tax 
imposed by section 4611 on the crude oil so removed by such operator and 
the number of barrels of crude oil returned by such operator to such 
pipeline. Any crude oil so returned shall be treated for purposes of 
this subchapter as crude oil on which no tax has been imposed by section 
4611.

(d) Credit against portion of tax attributable to oil spill rate

    There shall be allowed as a credit against so much of the tax 
imposed by section 4611 as is attributable to the Oil Spill Liability 
Trust Fund financing rate for any period an amount equal to the excess 
of--
        (1) the sum of--
            (A) the aggregate amounts paid by the taxpayer before 
        January 1, 1987, into the Deepwater Port Liability Trust Fund 
        and the Offshore Oil Pollution Compensation Fund, and
            (B) the interest accrued on such amounts before such date, 
        over

        (2) the amount of such payments taken into account under this 
    subsection for all prior periods.

The preceding sentence shall also apply to amounts paid by the taxpayer 
into the Trans-Alaska Pipeline Liability Fund to the extent of amounts 
transferred from such Fund into the Oil Spill Liability Trust Fund. For 
purposes of this subsection, all taxpayers which would be members of the 
same affiliated group (as defined in section 1504(a)) if section 
1504(a)(2) were applied by substituting ``100 percent'' for ``80 
percent'' shall be treated as 1 taxpayer.

(e) Income tax credit for unused payments into Trans-Alaska Pipeline 
        Liability Fund

                           (1) In general

        For purposes of section 38, the current year business credit 
    shall include the credit determined under this subsection.

                     (2) Determination of credit

        (A) In general

            The credit determined under this subsection for any taxable 
        year is an amount equal to the aggregate credit which would be 
        allowed to the taxpayer under subsection (d) for amounts paid 
        into the Trans-Alaska Pipeline Liability Fund had the Oil Spill 
        Liability Trust Fund financing rate not ceased to apply.

        (B) Limitation

            (i) In general

                The amount of the credit determined under this 
            subsection for any taxable year with respect to any taxpayer 
            shall not exceed the excess of--
                    (I) the amount determined under clause (ii), over
                    (II) the aggregate amount of the credit determined 
                under this subsection for prior taxable years with 
                respect to such taxpayer.
            (ii) Overall limitation

                The amount determined under this clause with respect to 
            any taxpayer is the excess of--
                    (I) the aggregate amount of credit which would have 
                been allowed under subsection (d) to the taxpayer for 
                periods before the termination date specified in section 
                4611(f)(1), if amounts in the Trans-Alaska Pipeline 
                Liability Fund which are actually transferred into the 
                Oil Spill Liability Fund were tranferred \1\ on January 
                1, 1990, and the Oil Spill Liability Trust Fund 
                financing rate did not terminate before such termination 
                date, over
---------------------------------------------------------------------------
    \1\ So in original. Probably should be ``transferred''.
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                    (II) the aggregate amount of the credit allowed 
                under subsection (d) to the taxpayer.

          (3) Cost of income tax credit borne by Trust Fund

        (A) In general

            The Secretary shall from time to time transfer from the Oil 
        Spill Liability Trust Fund to the general fund of the Treasury 
        amounts equal to the credits allowed by reason of this 
        subsection.

        (B) Trust Fund balance may not be reduced below $1,000,000,000

            Transfers may be made under subparagraph (A) only to the 
        extent that the unobligated balance of the Oil Spill Liability 
        Trust Fund exceeds $1,000,000,000. If any transfer is not made 
        by reason of the preceding sentence, such transfer shall be made 
        as soon as permitted under such sentence.

                          (4) No carryback

        No portion of the unused business credit for any taxable year 
    which is attributable to the credit determined under this subsection 
    may be carried to a taxable year beginning on or before the date of 
    the enactment of this paragraph.

(f) Disposition of revenues from Puerto Rico and the Virgin Islands

    The provisions of subsections (a)(3) and (b)(3) of section 7652 
shall not apply to any tax imposed by section 4611.

(Added Pub. L. 96-510, title II, Sec. 211(a), Dec. 11, 1980, 94 Stat. 
2798; amended Pub. L. 99-499, title V, Sec. 512(c), Oct. 17, 1986, 100 
Stat. 1761; Pub. L. 99-509, title VIII, Sec. 8032(b), Oct. 21, 1986, 100 
Stat. 1957; Pub. L. 101-239, title VII, Sec. 7505(c), Dec. 19, 1989, 103 
Stat. 2363; Pub. L. 101-380, title IX, Sec. 9002, Aug. 18, 1990, 104 
Stat. 574; Pub. L. 102-486, title XIX, Sec. 1922(a), Oct. 24, 1992, 106 
Stat. 3028.)

                       References in Text

    The date of the enactment of this paragraph, referred to in subsec. 
(e)(4), is the date of the enactment of Pub. L. 102-486, which was 
approved Oct. 24, 1992.

                          Codification

    Amendments by Pub. L. 99-509, title VIII, Sec. 8031(c), Oct. 21, 
1986, 100 Stat. 1955, to subsecs. (c) and (d) of this section were not 
executed to text pursuant to Pub. L. 99-509, title VIII, 
Sec. 8031(e)(2), which provided that the amendments made by section 8031 
shall not take effect if the Superfund Amendments and Reauthorization 
Act of 1986 is enacted. The Superfund Amendments and Reauthorization Act 
of 1986 was enacted as Pub. L. 99-499, approved Oct. 17, 1986.


                               Amendments

    1992--Subsecs. (e), (f). Pub. L. 102-486 added subsec. (e) and 
redesignated former subsec. (e) as (f).
    1990--Subsec. (d). Pub. L. 101-380 substituted at end ``For purposes 
of this subsection, all taxpayers which would be members of the same 
affiliated group (as defined in section 1504(a)) if section 1504(a)(2) 
were applied by substituting `100 percent' for `80 percent' shall be 
treated as 1 taxpayer.'' for ``Amounts may be transferred from the 
Trans-Alaska Pipeline Liability Fund into the Oil Spill Liability Trust 
Fund only to the extent the administrators of the Trans-Alaska Pipeline 
Liability Fund determine that such amounts are not needed to satisfy 
claims against such Fund.''
    1989--Subsec. (d). Pub. L. 101-239 inserted at end ``The preceding 
sentence shall also apply to amounts paid by the taxpayer into the 
Trans-Alaska Pipeline Liability Fund to the extent of amounts 
transferred from such Fund into the Oil Spill Liability Trust Fund. 
Amounts may be transferred from the Trans-Alaska Pipeline Liability Fund 
into the Oil Spill Liability Trust Fund only to the extent the 
administrators of the Trans-Alaska Pipeline Liability Fund determine 
that such amounts are not needed to satisfy claims against such Fund.''
    1986--Subsec. (c). Pub. L. 99-499 added subsec. (c) and redesignated 
former subsec. (c) as (d).
    Subsec. (d). Pub. L. 99-509 added subsec. (d) and redesignated 
former subsec. (d) as (e).
    Pub. L. 99-499 redesignated former subsec. (c) as (d).
    Subsec. (e). Pub. L. 99-509 redesignated former subsec. (d) as (e).


                    Effective Date of 1992 Amendment

    Section 1922(b) of Pub. L. 102-486 provided that: ``The amendments 
made by this section [amending this section] shall apply to taxable 
years beginning after the date of the enactment of this Act [Oct. 24, 
1992].''


                    Effective Date of 1990 Amendment

    Amendment by Pub. L. 101-380 applicable to incidents occurring after 
Aug. 18, 1990, see section 1020 of Pub. L. 101-380, set out as an 
Effective Date note under section 2701 of Title 33, Navigation and 
Navigable Waters.


                    Effective Date of 1986 Amendments

    Amendment by Pub. L. 99-509 effective on commencement date as 
defined in section 4611(f)(2), see section 8032(d) of Pub. L. 99-509, 
set out as a note under section 4611 of this title.
    Amendment by Pub. L. 99-499 effective Jan. 1, 1987, see section 
512(d) of Pub. L. 99-499, set out as a note under section 4611 of this 
title.

          Termination of Trust Territory of the Pacific Islands

    For termination of Trust Territory of the Pacific Islands, see note 
set out preceding section 1681 of Title 48, Territories and Insular 
Possessions.

                  Section Referred to in Other Sections

    This section is referred to in sections 4132, 4662, 4682 of this 
title.
