Page:United States Statutes at Large Volume 94 Part 1.djvu/324

 94 STAT. 274

PUBLIC LAW 96-223—APR. 2, 1980 "(ii) is sold by the taxpayer at retail to a person and placed in the fuel tank of such person's vehicle. "(B) USER CREDIT NOT TO APPLY TO ALCOHOL SOLD AT

RETAIL.—No credit shall be allowed under subparagraph (A)(i) with respect to any alcohol which was sold in a retail sale described in subparagraph (A)(ii). "(3) SMALLER CREDIT FOR LOWER PROOF ALCOHOL.—In the case of any alcohol with a proof which is at least 150 but less than 190, paragraphs (1)(A) and (2)(A) shall be applied by substituting "30 cents" for "40 cents". "(4) ADDING OF DENATURANTS NOT TREATED AS MIXTURE.—The

adding of any denaturant to alcohol shall not be treated as the production of a mixture. "(c) COORDINATION WITH EXEMPTION FROM EXCISE TAX.—The

Ante. p. 273.

amount of the credit allowable under this section with respect to any alcohol shall, under regulations prescribed by the Secretary, be properly reduced to take into account any benefit provided with respect to such alcohol solely by reason of the application of section 4041(k) or 4081(c). "(d) DEFINITIONS AND SPECIAL RULES.—For purposes of this section— "(1) ALCOHOL DEFINED.—

"(A) IN GENERAL.—The term 'alcohol' includes methanol and ethanol but does not include— "(i) alcohol produced from petroleum, natural gas, or coal, or "(ii) alcohol with a proof of less than 150. "(B) DETERMINATION OF PROOF.—The determination of the

proof of any alcohol shall be made without regard to any added denaturants. "(2) SPECIAL FUEL DEFINED.—The term 'special fuel' includes any liquid fuel (other than gasoline) which is suitable for use in an internal combustion engine. "(3) MIXTURE OR ALCOHOL NOT USED AS A FUEL, ETC.— "(A) MIXTURES.—If^

"(i) any credit was allowable under this section with respect to alcohol used in the production of any qualified mixture, and "(ii) any person— "(I) separates the alcohol from the mixture, or "(II) without separation, uses the mixture other than as a fuel, then there is hereby imposed on such person a tax equal to 40 cents a gallon (30 cents in the case of alcohol with a proof less than 190) for each gallon of alcohol in such mixture. "(B) ALCOHOL.—If—

26 USC 4081.

"(i) any credit was allowable under this section with respect to the retail sale of any alcohol, and "(ii) any person mixes such alcohol or uses such alcohol other than as a fuel, then there is hereby imposed on such person a tax equal to 40 cents a gallon (30 cents in the case of alcohol with a proof less than 190) for each gallon of such alcohol. "(C) APPLICABLE LAWS.—All provisions of law, including penalties, shall, insofar as applicable and not inconsistent with this section, apply in respect of any tax imposed under subparagraph (A) or (B) as if such tax were imposed by section 4081 and not by this chapter.

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