
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC4682]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                 Subtitle D--Miscellaneous Excise Taxes
 
                     CHAPTER 38--ENVIRONMENTAL TAXES
 
              Subchapter D--Ozone-Depleting Chemicals, Etc.
 
Sec. 4682. Definitions and special rules


(a) Ozone-depleting chemical

    For purposes of this subchapter--

                           (1) In general

        The term ``ozone-depleting chemical'' means any substance--
            (A) which, at the time of the sale or use by the 
        manufacturer, producer, or importer, is listed as an ozone-
        depleting chemical in the table contained in paragraph (2), and
            (B) which is manufactured or produced in the United States 
        or entered into the United States for consumption, use, or 
        warehousing.

                    (2) Ozone-depleting chemicals


          Common name:                    Chemical nomenclature:

  CFC-11.......................    trichlorofluoromethane
  CFC-12.......................    dichlorodifluoromethane
  CFC-113......................    trichlorotrifluoroethane
  CFC-114......................    1,2-dichloro-1,1,2,2-tetra-
                                  fluoroethane
  CFC-115......................    chloropentafluoroethane
  Halon-1211...................    bromochlorodifluoro-   methane
  Halon-1301...................    bromotrifluoromethane
  Halon-2402...................    dibromotetrafluoroethane
  Carbon tetrachloride.........    Tetrachloromethane
  Methyl chloroform............    1,1,1-trichloroethane
  CFC-13.......................    CF3Cl
  CFC-111......................    C2FCl5
  CFC-112......................    C2F2Cl4
  CFC-211......................    C3FCl7
  CFC-212......................    C3F2Cl6
  CFC-213......................    C3F3Cl5
  CFC-214......................    C3F4Cl4
  CFC-215......................    C3F5Cl3
  CFC-216......................    C3F6Cl2
  CFC-217......................    C3F7Cl.


(b) Ozone-depletion factor

    For purposes of this subchapter, the term ``ozone-depletion factor'' 
means, with respect to an ozone-depleting chemical, the factor assigned 
to such chemical under the following table:

Ozone-depleting chemical:                        Ozone-depletion factor:

CFC-11

                                                                    1.0 

CFC-12

                                                                    1.0 

CFC-113

                                                                    0.8 

CFC-114

                                                                    1.0 

CFC-115

                                                                    0.6 

Halon-1211

                                                                    3.0 

Halon-1301

                                                                   10.0 

Halon-2402

                                                                    6.0 

Carbon tetrachloride

                                                                    1.1 

Methyl chloroform

                                                                    0.1 

CFC-13.

                                                                    1.0 

CFC-111

                                                                    1.0 

CFC-112

                                                                    1.0 

CFC-211

                                                                    1.0 

CFC-212

                                                                    1.0 

CFC-213

                                                                    1.0 

CFC-214

                                                                    1.0 

CFC-215

                                                                    1.0 

CFC-216

                                                                    1.0 

CFC-217

                                                                    1.0.

(c) Imported taxable product

    For purposes of this subchapter--

                           (1) In general

        The term ``imported taxable product'' means any product (other 
    than an ozone-depleting chemical) entered into the United States for 
    consumption, use, or warehousing if any ozone-depleting chemical was 
    used as material in the manufacture or production of such product.

                      (2) De minimis exception

        The term ``imported taxable product'' shall not include any 
    product specified in regulations prescribed by the Secretary as 
    using a de minimis amount of ozone-depleting chemicals as materials 
    in the manufacture or production thereof. The preceding sentence 
    shall not apply to any product in which any ozone-depleting chemical 
    (other than methyl chloroform) is used for purposes of refrigeration 
    or air conditioning, creating an aerosol or foam, or manufacturing 
    electronic components.

(d) Exceptions

                            (1) Recycling

        No tax shall be imposed by section 4681 on any ozone-depleting 
    chemical which is diverted or recovered in the United States as part 
    of a recycling process (and not as part of the original 
    manufacturing or production process), or on any recycled Halon-1301 
    or recycled Halon-2402 imported from any country which is a 
    signatory to the Montreal Protocol on Substances that Deplete the 
    Ozone Layer.

                   (2) Use in further manufacture

        (A) In general

            No tax shall be imposed by section 4681--
                (i) on the use of any ozone-depleting chemical in the 
            manufacture or production of any other chemical if the 
            ozone-depleting chemical is entirely consumed in such use,
                (ii) on the sale by the manufacturer, producer, or 
            importer of any ozone-depleting chemical--
                    (I) for a use by the purchaser which meets the 
                requirements of clause (i), or
                    (II) for resale by the purchaser to a second 
                purchaser for a use by the second purchaser which meets 
                the requirements of clause (i).

        Clause (ii) shall apply only if the manufacturer, producer, and 
        importer, and the 1st and 2d purchasers (if any), meet such 
        registration requirements as may be prescribed by the Secretary.

        (B) Credit or refund

            Under regulations prescribed by the Secretary, if--
                (i) a tax under this subchapter was paid with respect to 
            any ozone-depleting chemical, and
                (ii) such chemical was used (and entirely consumed) by 
            any person in the manufacture or production of any other 
            chemical,

        then an amount equal to the tax so paid shall be allowed as a 
        credit or refund (without interest) to such person in the same 
        manner as if it were an overpayment of tax imposed by section 
        4681.

                             (3) Exports

        (A) In general

            Except as provided in subparagraph (B), rules similar to the 
        rules of section 4662(e) (other than section 
        4662(e)(2)(A)(ii)(II)) shall apply for purposes of this 
        subchapter.

        (B) Limit on benefit

            (i) In general

                The aggregate tax benefit allowable under subparagraph 
            (A) with respect to ozone-depleting chemicals manufactured, 
            produced, or imported by any person during a calendar year 
            shall not exceed the sum of--
                    (I) the amount equal to the 1986 export percentage 
                of the aggregate tax which would (but for this 
                subsection and subsection (g)) be imposed by this 
                subchapter with respect to the maximum quantity of 
                ozone-depleting chemicals permitted to be manufactured 
                or produced by such person during such calendar year 
                under regulations prescribed by the Environmental 
                Protection Agency (other than chemicals with respect to 
                which subclause (II) applies),
                    (II) the aggregate tax which would (but for this 
                subsection and subsection (g)) be imposed by this 
                subchapter with respect to any additional production 
                allowance granted to such person with respect to ozone-
                depleting chemicals manufactured or produced by such 
                person during such calendar year by the Environmental 
                Protection Agency under 40 CFR Part 82 (as in effect on 
                September 14, 1989), and
                    (III) the aggregate tax which was imposed by this 
                subchapter with respect to ozone-depleting chemicals 
                imported by such person during the calendar year.
            (ii) 1986 export percentage

                A person's 1986 export percentage is the percentage 
            equal to the ozone-depletion factor adjusted pounds of 
            ozone-depleting chemicals manufactured or produced by such 
            person during 1986 which were exported during 1986, divided 
            by the ozone-depletion factor adjusted pounds of all ozone-
            depleting chemicals manufactured or produced by such person 
            during 1986. The percentage determined under the preceding 
            sentence shall be computed by taking into account the sum of 
            such person's direct 1986 exports (as determined by the 
            Environmental Protection Agency) and such person's indirect 
            1986 exports (as allocated to such person by such Agency in 
            determining such person's consumption and production rights 
            for ozone-depleting chemicals).

        (C) Separate application of limit for newly listed chemicals

            (i) In general

                Subparagraph (B) shall be applied separately with 
            respect to newly listed chemicals and other chemicals.
            (ii) Application to newly listed chemicals

                In applying subparagraph (B) to newly listed chemicals--
                    (I) subparagraph (B) shall be applied by 
                substituting ``1989'' for ``1986'' each place it 
                appears, and
                    (II) clause (i)(II) thereof shall be applied by 
                substituting for the regulations referred to therein any 
                regulations (whether or not prescribed by the Secretary) 
                which the Secretary determines are comparable to the 
                regulations referred to in such clause with respect to 
                newly listed chemicals.
            (iii) Newly listed chemical

                For purposes of this subparagraph, the term ``newly 
            listed chemical'' means any substance which appears in the 
            table contained in subsection (a)(2) below Halon-2402.

(e) Other definitions

    For purposes of this subchapter--

                            (1) Importer

        The term ``importer'' means the person entering the article for 
    consumption, use, or warehousing.

                          (2) United States

        The term ``United States'' has the meaning given such term by 
    section 4612(a)(4).

(f) Special rules

                   (1) Fractional parts of a pound

        In the case of a fraction of a pound, the tax imposed by this 
    subchapter shall be the same fraction of the amount of such tax 
    imposed on a whole pound.

    (2) 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 this subchapter.

(g) Chemicals used as propellants in metered-dose inhalers

                       (1) Exemption from tax

        (A) In general

            No tax shall be imposed by section 4681 on--
                (i) any use of any substance as a propellant in metered-
            dose inhalers, or
                (ii) any qualified sale by the manufacturer, producer, 
            or importer of any substance.

        (B) Qualified sale

            For purposes of subparagraph (A), the term ``qualified 
        sale'' means any sale by the manufacturer, producer, or importer 
        of any substance--
                (i) for use by the purchaser as a propellant in metered 
            dose inhalers, or
                (ii) for resale by the purchaser to a 2d purchaser for 
            such use by the 2d purchaser.

        The preceding sentence shall apply only if the manufacturer, 
        producer, and importer, and the 1st and 2d purchasers (if any) 
        meet such registration requirements as may be prescribed by the 
        Secretary.

                          (2) Overpayments

        If any substance on which tax was paid under this subchapter is 
    used by any person as a propellant in metered-dose inhalers, credit 
    or refund without interest shall be allowed to such person in an 
    amount equal to the tax so paid. Amounts payable under the preceding 
    sentence with respect to uses during the taxable year shall be 
    treated as described in section 34(a) for such year unless claim 
    thereof has been timely filed under this paragraph.

(h) Imposition of floor stocks taxes

                      (1) January 1, 1990, tax

        On any ozone-depleting chemical which on January 1, 1990, is 
    held by any person (other than the manufacturer, producer, or 
    importer thereof) for sale or for use in further manufacture, there 
    is hereby imposed a floor stocks tax in an amount equal to the tax 
    which would be imposed by section 4681 on such chemical if the sale 
    of such chemical by the manufacturer, producer, or importer thereof 
    had occurred during 1990.

                    (2) Other tax-increase dates

        (A) In general

            If, on any tax-increase date, any ozone-depleting chemical 
        is held by any person (other than the manufacturer, producer, or 
        importer thereof) for sale or for use in further manufacture, 
        there is hereby imposed a floor stocks tax.

        (B) Amount of tax

            The amount of the tax imposed by subparagraph (A) shall be 
        the excess (if any) of--
                (i) the tax which would be imposed under section 4681 on 
            such substance if the sale of such chemical by the 
            manufacturer, producer, or importer thereof had occurred on 
            the tax-increase date, over
                (ii) the prior tax (if any) imposed by this subchapter 
            on such substance.

        (C) Tax-increase date

            For purposes of this paragraph, the term ``tax-increase 
        date'' means January 1 of any calendar year after 1991.

                            (3) Due date

        The taxes imposed by this subsection on January 1 of any 
    calendar year shall be paid on or before June 30 of such year.

                    (4) Application of other laws

        All other provisions of law, including penalties, applicable 
    with respect to the taxes imposed by section 4681 shall apply to the 
    floor stocks taxes imposed by this subsection.

(Added Pub. L. 101-239, title VII, Sec. 7506(a), Dec. 19, 1989, 103 
Stat. 2365; amended Pub. L. 101-508, title XI, Secs. 11203(a), (b), (d), 
11701(g), Nov. 5, 1990, 104 Stat. 1388-421, 1388-422, 1388-508; Pub. L. 
102-486, title XIX, Secs. 1931(b), (c), 1932(a)-(c), Oct. 24, 1992, 106 
Stat. 3029-3031; Pub. L. 104-188, title I, Sec. 1803(a)(1), (b), Aug. 
20, 1996, 110 Stat. 1892, 1893; Pub. L. 105-34, title IX, Sec. 903(a), 
title XIV, Sec. 1432(c)(2), Aug. 5, 1997, 111 Stat. 873, 1051.)


                            Prior Provisions

    A prior section 4682, added Pub. L. 96-510, title II, Sec. 231(a), 
Dec. 11, 1980, 94 Stat. 2804, was contained in subchapter C of this 
chapter, prior to repeal by Pub. L. 99-499, title V, Sec. 514(a)(1), 
(c), Oct. 17, 1986, 100 Stat. 1767, effective Oct. 1, 1983, with 
provision for waiver of statute of limitations on claims for 
overpayment.


                               Amendments

    1997--Subsec. (d)(1). Pub. L. 105-34, Sec. 903(a), substituted 
``recycled Halon-1301 or recycled Halon-2402'' for ``recycled halon''.
    Subsec. (g). Pub. L. 105-34, Sec. 1432(c)(2), amended subsec. (g) 
generally. Prior to amendment, subsec. (g) consisted of pars. (1) to (5) 
relating to taxes imposed during 1990 to 1993 on halons, chemicals used 
in rigid foam insulation, and methyl chloroform and taxes imposed on 
chemicals used as propellants in metered-dose inhalers.
    1996--Subsec. (d)(1). Pub. L. 104-188, Sec. 1803(a)(1), inserted 
before period at end ``, or on any recycled halon imported from any 
country which is a signatory to the Montreal Protocol on Substances that 
Deplete the Ozone Layer''.
    Subsec. (g)(4). Pub. L. 104-188, Sec. 1803(b), amended par. (4) 
generally, substituting provisions relating to chemicals used as 
propellants in metered-dose inhalers for provisions relating to 
chemicals used for sterilizing medical instruments and as propellants in 
metered-dose inhalers, including provisions relating to rate of tax, 
overpayments, and applicable period.
    1992--Subsec. (g)(2)(A). Pub. L. 102-486, Sec. 1932(a), in table, 
for sales or use during 1993, decreased applicable percentages from 3.3, 
1.0, and 1.6 to 2.49, 0.75, and 1.24 in the case of Halon-1211, Halon-
1301, and Halon-2402, respectively, and struck out applicable 
percentages for sales or use during 1991 and 1992.
    Subsec. (g)(2)(B). Pub. L. 102-486, Sec. 1931(b), in table decreased 
applicable percentage in the case of sales or use in 1993 from 10 to 
7.46.
    Subsec. (g)(4), (5). Pub. L. 102-486, Sec. 1932(b), (c), added pars. 
(4) and (5).
    Subsec. (h)(2)(C). Pub. L. 102-486, Sec. 1931(c), substituted ``any 
calendar year after 1991'' for ``1991, 1992, 1993, and 1994''.
    1990--Subsecs. (a)(2), (b). Pub. L. 101-508, Sec. 11203(a), inserted 
items for ``Carbon tetrachloride'' through ``CFC-217'' in tables.
    Subsec. (c)(2). Pub. L. 101-508, Sec. 11203(d)(1), inserted ``(other 
than methyl chloroform)''.
    Subsec. (d)(3)(B)(i). Pub. L. 101-508, Sec. 11701(g)(1), substituted 
``, produced, or imported'' for ``or produced'' in introductory 
provisions.
    Subsec. (d)(3)(B)(i)(I). Pub. L. 101-508, Sec. 11701(g)(2), amended 
subcl. (I) generally. Prior to amendment, subcl. (I) read as follows: 
``the amount equal to the 1986 export percentage of the aggregate tax 
imposed by this subchapter with respect to ozone-depleting chemicals 
manufactured or produced by such person during such calendar year (other 
than chemicals with respect to which subclause (II) applies), and''.
    Subsec. (d)(3)(B)(i)(II). Pub. L. 101-508, Sec. 11701(g)(3), 
substituted ``tax which would (but for this subsection and subsection 
(g)) be imposed'' for ``tax imposed''.
    Subsec. (d)(3)(B)(i)(III). Pub. L. 101-508, Sec. 11701(g)(4), added 
subcl. (III).
    Subsec. (d)(3)(B)(ii). Pub. L. 101-508, Sec. 11701(g)(5), 
substituted last sentence for former last sentence which read as 
follows: ``The percentage determined under the preceding sentence shall 
be based on data published by the Environmental Protection Agency.''
    Subsec. (d)(3)(C). Pub. L. 101-508, Sec. 11203(b), added subpar. 
(C).
    Subsec. (h)(3). Pub. L. 101-508, Sec. 11203(d)(2), substituted 
``June 30'' for ``April 1''.


                    Effective Date of 1997 Amendment

    Section 903(b) of Pub. L. 105-34 provided that: ``The amendment made 
by subsection (a) [amending this section] shall take effect on the date 
of the enactment of this Act [Aug. 5, 1997].''


                    Effective Date of 1996 Amendment

    Section 1803(c) of Pub. L. 104-188 provided that:
    ``(1) Recycled halon.--
        ``(A) In general.--Except as provided in subparagraph (B), the 
    amendment made by subsection (a)(1) [amending this section] shall 
    take effect on January 1, 1997.
        ``(B) Halon-1211.--In the case of Halon-1211, the amendment made 
    by subsection (a)(1) shall take effect on January 1, 1998.
    ``(2) Metered-dose inhalers.--The amendment made by subsection (b) 
[amending this section] shall take effect on the 7th day after the date 
of the enactment of this Act [Aug. 20, 1996].''


                    Effective Date of 1992 Amendment

    Amendment by section 1931(b), (c) of Pub. L. 102-486 applicable to 
taxable chemicals sold or used on or after Jan. 1, 1993, see section 
1931(d) of Pub. L. 102-486, set out as a note under section 4681 of this 
title.
    Section 1932(d) of Pub. L. 102-486 provided that: ``The amendments 
made by this section [amending this section] shall apply to sales and 
uses on or after January 1, 1993.''


                    Effective Date of 1990 Amendment

    Amendment by section 11203(a), (b), and (d) of Pub. L. 101-508 
effective Jan. 1, 1991, see section 11203(e) of Pub. L. 101-508, set out 
as a note under section 4681 of this title.
    Amendment by section 11701(g) of Pub. L. 101-508 effective, except 
as otherwise provided, as if included in the provision of the Revenue 
Reconciliation Act of 1989, Pub. L. 101-239, title VII, to which such 
amendment relates, see section 11701(n) of Pub. L. 101-508, set out as a 
note under section 42 of this title.


                          Certification System

    Section 1803(a)(2) of Pub. L. 104-188 provided that: ``The Secretary 
of the Treasury, after consultation with the Administrator of the 
Environmental Protection Agency, shall develop a certification system to 
ensure compliance with the recycling requirement for imported halon 
under section 4682(d)(1) of the Internal Revenue Code of 1986, as 
amended by paragraph (1).''


                   Deposits for First Quarter of 1991

    Section 11203(f) of Pub. L. 101-508 provided that: ``No deposit of 
any tax imposed by subchapter D of chapter 38 of the Internal Revenue 
Code of 1986 on any substance treated as an ozone-depleting chemical by 
reason of the amendment made by subsection (a)(1) [amending this 
section] shall be required to be made before April 1, 1991.''
