Page:United States Statutes at Large Volume 94 Part 3.djvu/156

 94 STAT. 2800 Ante, p. 2798.

PUBLIC LAW 96-510—DEC. 11, 1980

"(5) FRACTIONAL PART OF TON.—In the case of a fraction of a ton, the tax imposed by section 4661 shall be the same fraction of the amount of such tax imposed on a whole ton. "(b) EXCEPTIONS; OTHER SPECIAL RULES.—For purposes of this subchapter— "(1) METHANE OR BUTANE USED AS A FUEL.—Under regulations prescribed by the Secretary, methane or butane shall be treated as a taxable chemical only if it is used otherwise than as a fuel (and, for purposes of section 4661(a), the person so using it shall be treated as the manufacturer thereof). "(2) SUBSTANCES USED IN THE PRODUCTION OF FERTILIZER.—

"(A) IN GENERAL.—In the case of nitric acid, sulfuric acid, ammonia, or methane used to produce ammonia which is a qualified substance, no tax shall be imposed under section 4661(a). "(B) QUALIFIED SUBSTANCE.—For purposes of this section, the term 'qualified substance' means any substance— "(i) used in a qualified use by the manufacturer, producer, or importer, "(ii) sold for use by the purchaser in a qualified use, or "(iii) sold for resale by the purchaser to a second purchaser for use by such second purchaser in a qualified use. "(C) QUALIFIED USE.—For purposes of this subsection, the term 'qualified use' means any use in the manufacture or production of a fertilizer. "(3) SULFURIC ACID PRODUCED AS A BYPRODUCT OF AIR POLLUTION

CONTROL.—In the case of sulfuric acid produced solely as a byproduct of and on the same site as air pollution control equipment, no tax shall be imposed under section 4661. "(4) SUBSTANCES DERIVED FROM COAL.—For purposes of this subchapter, the term 'taxable chemical' shall not include any substance to the extent derived from coal. "(c) USE BY MANUFACTURER, ETC., CONSIDERED SALE.—If any person manufactures, produces, or imports a taxable chemical and uses such chemical, then such person shall be liable for tax under section 4661 in the same manner as if such chemical were sold by such person. "(d) REFUND OR CREDIT FOR CERTAIN USES.—

"(1) IN GENERAL.—Under regulations prescribed by the Secretary, if— "(A) a tax under section 4661 was paid with respect to any taxable chemical, and "(B) such chemical was used by any person in the manufacture or production of any other substance the sale of which by such person would be taxable under such section, 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 such section. In any case to which this paragraph applies, the amount of any such credit or refund shall not exceed the amount of tax imposed by such section on the other substance manufactured or produced. "(2) USE AS FERTILIZER.—Under regulations prescribed by the Secretary, if— "(A) a tax under section 4661 was paid with respect to nitric acid, sulfuric acid, ammonia, or methane used to make ammonia without regard to subsection (b)(2), and

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