Page:United States Statutes at Large Volume 94 Part 3.djvu/841

 PUBLIC LAW 96-598—DEC. 24, 1980

94 STAT. 3485

Public Law 96-598 96th Congress An Act To amend the Internal Revenue Code of 1954 with respect to excise tax refunds in the case of certain uses of tread rubber, and for other purposes.

Dec. 24, 1980 [H.R. 3317]

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, Internal Revenue Code of SECTION 1. EXCISE TAX REFUNDS IN CASE OF CERTAIN USES OF TREAD 1954, RUBBER. amendment.

(a) REFUNDS FOR CERTAIN USES.—Subparagraph (G) of section

6416(b)(2) of the Internal Revenue Code of 1954 (relating to special 26 USC 6416. cases in which tax payments considered overpayments) is amended to read as follows: "(G) in the case of tread rubber in respect of which tax was paid under section 4071(a)(4)— "(i) used or sold for use otherwise than in the recapping or retreading of tires of the type used on highway vehicles (as defined in section 4072(c)), "(ii) destroyed, scrapped, wasted, or rendered useless in the recapping or retreading process, "(iii) used in the recapping or retreading of a tire the sale of which is later adjusted pursuant to a warranty or guarantee, in which case the overpayment shall be in proportion to the adjustment in the sales price of such tire, or "(iv) used in the recapping or retreading of a tire, if such tire is by any person exported, used or sold for use as supplies for vessels or aircraft, sold to a State or local government for the exclusive use of a State or local government, or sold to a nonprofit educational organization for its exclusive use, unless credit or refund of such tax is allowable under paragraph (3);". (b) USE IN FURTHER MANUFACTURE, ETC.—

(1) IN GENERAL.—Paragraph (3) of section 6416(b) of such Code (relating to tax-paid articles used for further manufacture, etc.) is amended by inserting after subparagraph (C) the following new subparagraph: "(D) in the case of tread rubber in respect of which tax was paid under section 4071(a)(4) used in the recapping or retreading of a tire, such tire is sold by the subsequent manufacturer or producer on or in connection with, or with the sale of, any other article manufactured or produced by him and such other article is by any person exported, sold to a State or local government for the exclusive use of a State or local government, sold to a nonprofit educational organization for its exclusive use, or used or sold for use as supplies for vessels or aircraft, unless credit or refund of such tax is allowable under subparagraph (C);".

�