
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: 26USC6412]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
              CHAPTER 65--ABATEMENTS, CREDITS, AND REFUNDS
 
               Subchapter B--Rules of Special Application
 
Sec. 6412. Floor stocks refunds


(a) In general

                     (1) Tires and taxable fuel

        Where before October 1, 2005, any article subject to the tax 
    imposed by section 4071 or 4081 has been sold by the manufacturer, 
    producer, or importer and on such date is held by a dealer and has 
    not been used and is intended for sale, there shall be credited or 
    refunded (without interest) to the manufacturer, producer, or 
    importer an amount equal to the difference between the tax paid by 
    such manufacturer, producer, or importer on his sale of the article 
    and the amount of tax made applicable to such article on and after 
    October 1, 2005, if claim for such credit or refund is filed with 
    the Secretary on or before March 31, 2006, based upon a request 
    submitted to the manufacturer, producer, or importer before January 
    1, 2006, by the dealer who held the article in respect of which the 
    credit or refund is claimed, and, on or before March 31, 2006, 
    reimbursement has been made to such dealer by such manufacturer, 
    producer, or importer for the tax reduction on such article or 
    written consent has been obtained from such dealer to allowance of 
    such credit or refund. No credit or refund shall be allowable under 
    this paragraph with respect to taxable fuel in retail stocks held at 
    the place where intended to be sold at retail, nor with respect to 
    taxable fuel held for sale by a producer or importer of taxable 
    fuel.

                           (2) Definitions

        For purposes of this section--
            (A) The term ``dealer'' includes a wholesaler, jobber, 
        distributor, or retailer.
            (B) An article shall be considered as ``held by a dealer'' 
        if title thereto has passed to such dealer (whether or not 
        delivery to him has been made), and if for purposes of 
        consumption title to such article or possession thereof has not 
        at any time been transferred to any person other than a dealer.

(b) Limitation on eligibility for credit or refund

    No manufacturer, producer, or importer shall be entitled to credit 
or refund under subsection (a) unless he has in his possession such 
evidence of the inventories with respect to which the credit or refund 
is claimed as may be required by regulations prescribed under this 
section.

(c) Other laws applicable

    All provisions of law, including penalties, applicable in respect of 
the taxes imposed by sections 4071 and 4081 shall, insofar as applicable 
and not inconsistent with subsections (a) and (b) of this section, apply 
in respect of the credits and refunds provided for in subsection (a) to 
the same extent as if such credits or refunds constituted overpayments 
of such taxes.

(Aug. 16, 1954, ch. 736, 68A Stat. 795; Mar. 30, 1955, ch. 18, 
Sec. 3(b)(4), 69 Stat. 15; Mar. 29, 1956, ch. 115, Sec. 3(b)(4), 70 
Stat. 67; May 29, 1956, ch. 342, Sec. 19, 70 Stat. 221; June 29, 1956, 
ch. 462, title II, Sec. 208(a), 70 Stat. 392; Pub. L. 85-12, 
Sec. 3(b)(4), Mar. 29, 1957, 71 Stat. 10; Pub. L. 85-475, Sec. 3(b)(4), 
June 30, 1958, 72 Stat. 260; Pub. L. 85-859, title I, Sec. 162(a), Sept. 
2, 1958, 72 Stat. 1306; Pub. L. 86-75, Sec. 3(b)(3), June 30, 1959, 73 
Stat. 158; Pub. L. 86-342, title II, Sec. 201(c)(4), Sept. 21, 1959, 73 
Stat. 614; Pub. L. 86-564, title II, Sec. 202(b)(3), June 30, 1960, 74 
Stat. 291; Pub. L. 86-592, Sec. 2, July 6, 1960, 74 Stat. 330; Pub. L. 
87-15, Sec. 2(b), Mar. 31, 1961, 75 Stat. 40; Pub. L. 87-61, title II, 
Sec. 206 (c), (d), June 29, 1961, 75 Stat. 127; Pub. L. 87-72, 
Sec. 3(b)(3), June 30, 1961, 75 Stat. 193; Pub. L. 87-456, title III, 
Sec. 302(d), May 24, 1962, 76 Stat. 77; Pub. L. 87-508, Sec. 3(b)(3), 
June 28, 1962, 76 Stat. 114; Pub. L. 87-535, Sec. 18(b), July 13, 1962, 
76 Stat. 166; Pub. L. 88-52, Sec. 3(b)(1)(C), June 29, 1963, 77 Stat. 
72; Pub. L. 88-348, Sec. 2(b)(1)(C), June 30, 1964, 78 Stat. 237; Pub. 
L. 89-44, title II, Sec. 209(a), (d), June 21, 1965, 79 Stat. 141, 144; 
Pub. L. 89-368, title II, Sec. 201(b), Mar. 15, 1966, 80 Stat. 66; Pub. 
L. 90-285, Sec. 1(a)(2), Apr. 12, 1968, 82 Stat. 92; Pub. L. 90-364, 
title I, Sec. 105(a)(2), June 28, 1968, 82 Stat. 265; Pub. L. 91-172, 
title VII, Sec. 702(a)(2), Dec. 30, 1969, 83 Stat. 660; Pub. L. 91-605, 
title III, Sec. 303(b), Dec. 31, 1970, 84 Stat. 1744; Pub. L. 91-614, 
title II, Sec. 201(a)(2), Dec. 31, 1970, 84 Stat. 1843; Pub. L. 92-178, 
title IV, Sec. 401(g)(5), Dec. 10, 1971, 85 Stat. 533; Pub. L. 94-280, 
title III, Sec. 303(b), May 5, 1976, 90 Stat. 457; Pub. L. 94-455, title 
XIX, Sec. 1906(a)(22), (b)(13)(A), Oct. 4, 1976, 90 Stat. 1826, 1834; 
Pub. L. 95-599, title V, Sec. 502(c), Nov. 6, 1978, 92 Stat. 2757; Pub. 
L. 95-618, title II, Sec. 231(f)(1), Nov. 9, 1978, 92 Stat. 3189; Pub. 
L. 97-424, title V, Sec. 516(a)(5), Jan. 6, 1983, 96 Stat. 2183; Pub. L. 
98-369, div. A, title VII, Sec. 735(c)(12), July 18, 1984, 98 Stat. 983; 
Pub. L. 100-17, title V, Sec. 502(d)(1), Apr. 2, 1987, 101 Stat. 257; 
Pub. L. 101-508, title XI, Sec. 11211(f)(1), Nov. 5, 1990, 104 Stat. 
1388-427; Pub. L. 102-240, title VIII, Sec. 8002(c)(1), Dec. 18, 1991, 
105 Stat. 2203; Pub. L. 103-66, title XIII, Sec. 13242(d)(16), Aug. 10, 
1993, 107 Stat. 524; Pub. L. 105-178, title IX, Sec. 9002(a)(2)(A), June 
9, 1998, 112 Stat. 499.)


                               Amendments

    1998--Subsec. (a)(1). Pub. L. 105-178 substituted ``2005'' for 
``1999'' and ``2006'' for ``2000'' wherever appearing.
    1993--Subsec. (a)(1). Pub. L. 103-66 substituted ``taxable fuel'' 
for ``gasoline'' wherever appearing in heading and text.
    1991--Subsec. (a)(1). Pub. L. 102-240 substituted ``1999'' for 
``1995'' and ``2000'' for ``1996'' wherever appearing.
    1990--Subsec. (a)(1). Pub. L. 101-508 substituted ``1995'' for 
``1993'' and ``1996'' for ``1994'' wherever appearing.
    1987--Subsec. (a)(1). Pub. L. 100-17 substituted ``1993'' for 
``1988'' and ``1994'' for ``1989'' wherever appearing.
    1984--Subsec. (a)(1). Pub. L. 98-369, Sec. 735(c)(12)(A), (B), 
substituted ``Tires and gasoline'' for ``Trucks, tires, tubes, tread 
rubber, and gasoline'' in heading, and in text substituted ``Where 
before October 1, 1988, any article subject to the tax imposed by 
section 4071 or 4081 has been sold by the manufacturer, producer, or 
importer and on such date is held by a dealer and has not been used and 
is intended for sale,'' for ``Where before October 1, 1988, any article 
subject to the tax imposed by section 4061(a)(1), 4071((a)(1), (3) or 
(4), or 4081 has been sold by the manufacturer, producer, or importer 
and on such date is held by a dealer and has not been used and is 
intended for sale (or, in the case of tread rubber, is intended for sale 
or is held for use),'', and struck out provision that no credit or 
refund shall be allowable under this paragraph with respect to inner 
tubes for bicycle tires (as defined in section 4221(e)(4)(B)).
    Subsec. (a)(2)(A). Pub. L. 98-369, Sec. 735(c)(12)(C), substituted 
``The term `dealer' includes a wholesaler, jobber, distributor, or 
retailer'' for ``The term `dealer' includes a wholesaler, jobber, 
distributor, or retailer, or, in the case of tread rubber subject to tax 
under section 4071(a)(4), includes any person (other than the 
manufacturer, producer, or importer thereof) who holds such tread rubber 
for sale or use''.
    Subsec. (c). Pub. L. 98-369, Sec. 735(c)(12)(D), substituted 
``4071'' for ``4061, 4071,''.
    1983--Subsec. (a)(1). Pub. L. 97-424, Sec. 516(a)(5), substituted 
``1989'' for ``1985'' and ``1988'' for ``1984'' wherever appearing.
    1978--Subsec. (a)(1). Pub. L. 95-618 struck out ``and buses'' after 
``Trucks'' in heading.
    Pub. L. 95-599 substituted ``1984'' for ``1979'' and ``1985'' for 
``1980'' wherever appearing.
    1976--Subsec. (a)(1). Pub. L. 94-455, Sec. 1906(a)(22), (b)(13)(A), 
redesignated par. (2) as (1) and struck out ``or his delegate'' after 
``Secretary''. Prior par. (1) had been repealed by Pub. L. 92-178, title 
IV, Sec. 401(g)(5), Dec. 10, 1971, 85 Stat. 533.
    Subsec. (a)(2). Pub. L. 94-455, Sec. 1906(a)(22), redesignated par. 
(4) as (2). Former par. (2) redesignated (1).
    Pub. L. 94-280 substituted ``1979'' for ``1977'' in two places and 
``1980'' for ``1978'' in three places, respectively.
    Subsec. (a)(4). Pub. L. 94-455, Sec. 1906(a)(22), redesignated par. 
(4) as (2).
    1971--Subsec. (a)(1). Pub. L. 92-178 struck out par. (1) which 
related to general rule for floor stocks refunds on passenger 
automobiles, etc.
    1970--Subsec. (a)(1). Pub. L. 91-614 substituted ``January 1 of 
1973, 1974, 1978, 1979, 1980, 1981, or 1982'' for ``January 1, 1971, 
January 1, 1972, January 1, 1973, or January 1, 1974''.
    Subsec. (a)(2). Pub. L. 91-605 substituted in two places ``1977'' 
for ``1972'' and ``March 31, 1978'' for ``February 10, 1973'', and 
substituted ``January 1, 1978'' for ``January 1, 1973''.
    1969--Subsec. (a)(1). Pub. L. 91-172 struck out reference to Jan. 1, 
1970, and inserted reference to Jan. 1, 1974.
    1968--Subsec. (a)(1). Pub. L. 90-364 substituted ``January 1, 1970, 
January 1, 1971, January 1, 1972, or January 1, 1973,'' for ``May 1, 
1968, or January 1, 1969,''.
    Pub. L. 90-285 substituted ``May 1, 1968'' for ``April 1, 1968''.
    1966--Subsec. (a)(1). Pub. L. 89-368 substituted ``January 1, 1966, 
April 1, 1968, or January 1, 1969,'' for ``January 1, 1966, 1967, 1968, 
or 1969,''.
    1965--Subsec. (a)(1). Pub. L. 89-44, Sec. 209(a), made floor stock 
refunds available with respect to passenger cars in dealers' inventories 
on the various reduction dates for the passenger car tax and required 
claims for credit or refund to be filed on or before the 10th day of the 
8th calendar month beginning after the date of the tax reduction.
    Subsec. (e). Pub. L. 89-44, Sec. 209(d), repealed subsec. (e) which 
related to cross reference.
    1964--Subsec. (a)(1). Pub. L. 88-348 substituted ``July 1, 1965'' 
for ``July 1, 1964'' in two places, ``October 1, 1965'' for ``October 1, 
1964'', and ``November 10, 1965'' for ``November 10, 1964'' in two 
places.
    1963--Subsec. (a)(1). Pub. L. 88-52 substituted ``July 1, 1964'' for 
``July 1, 1963'', in two places, ``October 1, 1964'' for ``October 1, 
1963'', and ``November 10, 1964'' for ``November 10, 1963'' in two 
places.
    1962--Subsec. (a)(1). Pub. L. 87-508 substituted ``July 1, 1963'' 
for ``July 1, 1962'' in two places, ``October 1, 1963'' for ``October 1, 
1962'', and ``November 10, 1963'' for ``November 10, 1962'' in two 
places.
    Subsec. (d). Pub. L. 87-456 repealed subsec. (d) which related to 
floor stock refunds with respect to any sugar or articles composed in 
chief value of sugar.
    Pub. L. 87-535 substituted ``June 30, 1967'' for ``December 31, 
1962'' after ``paid and which, on'', and ``September 30, 1967'' for 
``March 31, 1963'' after ``delegate on or before''.
    1961--Subsec. (a)(1). Pub. L. 87-72 substituted ``July 1, 1962'' for 
``July 1, 1961'' in two places, ``October 1, 1962'' for ``October 1, 
1961'', and ``November 10, 1962'' for ``November 10, 1961'' in two 
places.
    Subsec. (a)(2). Pub. L. 87-61, Sec. 206(c), inserted tubes in 
heading, authorized credit or refund for articles subject to the tax 
imposed by section 4071(a)(3), prohibited credit or refund with respect 
to inner tubes for bicycle tires, and substituted ``October 1, 1972'' 
for ``July 1, 1972'' in two places, ``February 10, 1973'' for ``November 
10, 1972'' in two places, and ``January 1, 1973'' for ``October 1, 
1972''.
    Subsec. (a)(3). Pub. L. 87-61, Sec. 206(d), repealed par. (3) which 
related to 1961 floor stocks refund on gasoline.
    Subsec. (d). Pub. L. 87-15 substituted ``December 31, 1962'' for 
``September 30, 1961'' after ``paid and which, on'', and ``March 31, 
1963'' for ``September 30, 1961'' after ``delegate on or before''.
    1960--Subsec. (a)(1). Pub. L. 86-564 substituted ``July 1, 1961'' 
for ``July 1, 1960'' in two places, ``October 1, 1961'' for ``October 1, 
1960'', and ``November 10, 1961'' for ``November 10, 1960'' in two 
places.
    Subsec. (d). Pub. L. 86-592 substituted ``September 30, 1961'' for 
``June 30, 1961'' after ``and which, on''.
    1959--Subsec. (a)(1). Pub. L. 86-75 substituted ``July 1, 1960'' for 
``July 1, 1959'' in two places, ``October 1, 1960'' for ``October 1, 
1959'' and ``November 10, 1960'' for ``November 10, 1959'' in two 
places.
    Subsec. (a)(3), (4). Pub. L. 86-342 added par. (3) and redesignated 
former par. (3) as (4).
    1958--Subsec. (a)(1). Pub. L. 85-475 substituted ``July 1, 1959'' 
for ``July 1, 1958'' in two places, ``October 1, 1959'' for ``October 1, 
1958'', and ``November 10, 1959'' for ``November 10, 1958'' in two 
places.
    Subsec. (d). Pub. L. 85-859 required filing of claims for refund on 
or before Sept. 30, 1961.
    1957--Subsec. (a)(1). Pub. L. 85-12, substituted ``July 1, 1958'' 
for ``April 1, 1957'' in two places, ``October 1, 1958'' for ``July 1, 
1957'', and ``November 10, 1958'' for ``August 10, 1957'' in two places.
    1956--Subsec. (a). Act June 29, 1956, in par. (1), substituted 
``April 1, 1957'' for ``April 1, 1956'' in two places, ``section 
4061(a)(2)'' for ``section 4061 (a) or (b)'', and inserted provisions 
requiring claims for refund to be made on or before August 10, 1957, 
inserted provisions relating to trucks and buses, tires, tread rubber, 
and gasoline as par. (2), defined ``dealer'' in the case of tread rubber 
subject to tax under section 4071(a)(4) of this title in par. (3), and 
struck out pars. (4) and (5). Former par. (4), which related to 
reimbursement of dealers, was covered generally by pars. (1) and (2). 
Former par. (5) was covered by subsec. (b).
    Act Mar. 29, 1956, substituted ``April 1, 1957'' for ``April 1, 
1956'' in two places, and ``July 1, 1957'' for ``July 1, 1956''.
    Subsec. (b). Act June 29, 1956, redesignated par. (5) of subsec. (a) 
as subsec. (b) and substituted ``manufacturer, producer, or importer'' 
for ``person'', and struck out provisions that required claims for 
credit or refund to be filed before July 1, 1956. Former subsec. (b) was 
covered by par. (2) of subsec. (a).
    Act Mar. 29, 1956, substituted ``April 1, 1957'' for ``April 1, 
1956'' in three places, and ``July 1, 1957'' for ``July 1, 1956''.
    Subsec. (c). Act June 29, 1956, included taxes imposed by section 
4071 of this title.
    Subsec. (d). Act May 29, 1956, substituted ``1961'' for ``1957''.
    1955--Subsecs. (a), (b). Act Mar. 30, 1955, substituted ``April 1, 
1956'' for ``April 1, 1955'' and ``July 1, 1956'' for ``July 1, 1955'' 
wherever appearing.


                    Effective Date of 1993 Amendment

    Amendment by Pub. L. 103-66 effective Jan. 1, 1994, see section 
13242(e) of Pub. L. 103-66, set out as a note under section 4041 of this 
title.


                    Effective Date of 1984 Amendment

    Amendment by Pub. L. 98-369 effective, except as otherwise provided, 
as if included in the provisions of the Highway Revenue Act of 1982, 
title V of Pub. L. 97-424, to which such amendment relates, see section 
736 of Pub. L. 98-369, set out as a note under section 4051 of this 
title.


                    Effective Date of 1978 Amendment

    Amendment by Pub. L. 95-618 applicable with respect to articles sold 
after Nov. 9, 1978, see section 231(g) of Pub. L. 95-618, set out as a 
note under section 4222 of this title.


                    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 4071 of this title.


                    Effective Date of 1968 Amendments

    Section 105(c) of Pub. L. 90-364 provided that: ``The amendments 
made by this section [amending this section and sections 4061 and 4251 
of this title] shall take effect as of April 30, 1968.''
    Section 1(b) of Pub. L. 90-285 provided that: ``The amendments made 
by subsection (a) [amending this section and sections 4061 and 4251 of 
this title] shall take effect as of March 31, 1968.''


                    Effective Date of 1965 Amendment

    Amendment by Pub. L. 89-44 effective June 22, 1965, see section 
701(a) of Pub. L. 89-44, set out as a note under section 4161 of this 
title.


                    Effective Date of 1962 Amendments

    Amendment by Pub. L. 87-535 effective Jan. 1, 1962, see section 
19(a) of Pub. L. 87-535.
    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.


                    Effective Date of 1961 Amendment

    Amendment by Pub. L. 87-61 effective June 29, 1961, see section 208 
of Pub. L. 87-61, set out as a note under section 4041 of this title.


                    Effective Date of 1958 Amendment

    Amendment by Pub. L. 85-859 effective on first day of first calendar 
quarter which begins more than 60 days after Sept. 2, 1958, see section 
1(c) of Pub. L. 85-859.


                    Effective Date of 1956 Amendments

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


                           Floor Stock Refunds

    Section 209(b) of Pub. L. 89-44 provided that where any article 
subject to taxes under section 4111, 4121, 4141, 4151, 4161, 4191 or 
4451 of this title before June 21, 1965, or subject to taxes under 
section 4061(b), 4091(1), or 4131 of this title before Jan. 1, 1966, had 
been sold by the manufacturer, importer or producer and on such date 
held by the dealer and not used, there was to be credited or refunded to 
the manufacturer, importer or producer an amount equal to the difference 
between the tax paid by him on his sale of the article and the amount of 
tax made applicable to the article on such date where certain conditions 
were satisfactorily met.


      Extension of Time for Filing Claims for Floor Stocks Refunds

    Pub. L. 91-642, Sec. 1, Dec. 31, 1970, 84 Stat. 1880, provided that 
if a claim for credit or refund was filed by a manufacturer, importer or 
producer on or before the 90th day after Dec. 31, 1970, such filing was 
deemed to have satisfied the requirements of section 209(b)(1)(A) of 
Pub. L. 89-44 for filing on or before Feb. 10, 1966, or Aug. 10, 1966.


                  Refunds Respecting Consumer Purchases

    Section 209(c) of Pub. L. 89-44 provided that if after May 14, 1965, 
but before June 21, 1965, a new automotive item subject to the tax 
imposed by section 4061(a)(2) of this title, or a new self-contained 
air-conditioning unit subject to the tax imposed by section 4111 of this 
title, had been sold to an ultimate purchaser, there was to be credited 
or refunded to the manufacturer, producer, or importer an amount equal 
to the difference between the tax paid by the manufacturer, producer, or 
importer on his sale of the article and the tax made applicable to the 
article on such date if certain conditions were met.

                  Section Referred to in Other Sections

    This section is referred to in section 6511, 6612, 9503 of this 
title; title 16 section 460l-11; title 42 section 430.
