Page:United States Statutes at Large Volume 96 Part 2.djvu/809

 PUBLIC LAW 97-424—JAN. 6, 1983

96 STAT. 2171

" ( O OFF-HIGHWAY BUSINESS USE DEFINED.—For purposes

of this subsection, the term 'off-highway business use has the meaning given to such term by section 6421(d)(2)." (3) CLERICAL AMENDMENTS.—

(A) Subparagraphs (A) and (B) of section 6421(d)(2) are 26 USC 6421. each amended by striking out "qualified business use" and inserting in lieu thereof "off-highway business use". (B) The heading for paragraph (2) of section 6421(d) is amended by striking out "QUALIFIED" and inserting in lieu thereof "OFF-HIGHWAY". (d) RATES OF TAX FOR GASOHOL.— (1) AMENDMENTS OF SECTION 4081.—

26 USC 408i.

(A) IN GENERAL.—Paragraph (1) of section 4081(c) (relating to gasoline mixed with alcohol) is amended by striking out "no tax shall be imposed by this section on the sale of any gasoline" and inserting in lieu thereof "subsection (a) shall be applied by substituting '4 cents' for '9 cents' in the case of the sale of any gasoline". (B) TREATMENT OF LATER SEPARATION.—

(i) Paragraph (2) of section 4081(c) is amended by striking out tax was not imposed by reason of this subsection" and inserting in lieu thereof "tax was imposed under subsection (a) at the rate of 4 cents a gallon by reason of this subsection". (ii) Paragraph (2) of section 4081(c) is amended by adding at the end thereof the following new sentence: "The amount of tax imposed on any sale of such gasoline by such person shall be 5 cents a gallon." (2) AMENDMENT OF SECTION 4041.—Subsection (k) of section 26 USC 404i. 4041 (relating to fuels containing alcohol) is amended to read as follows: "(k) FUELS CONTAINING ALCOHOL.—

"(1) IN GENERAL.—Under regulations prescribed by the Secretary, in the case of the sale or use of any liquid fuel at least 10 percent of which consists of alcohol (as defined in section 4081(c)(3))— "(A) subsection (a) shall be applied by substituting *4 cents' for '9 cents' each place it appears, and "(B) no tax shall be imposed by subsection (c). "(2) LATER SEPARATION.—If any person separates the liquid fuel from a mixture of the liquid fuel and alcohol to which paragraph (1) applied, such separation shall be treated as a sale of the liquid fuel. Any tax imposed on such sale shall be reduced by the amount (if any) of the tax imposed on the sale of such mixture. "(3) TERMINATION.—Paragraph (1) shall not apply to any sale or use after December 31, 1992. (3) CREDIT FOR ALCOHOL USED AS A FUEL.—Section 44E (relating

26 USC 44E.

to alcohol used as a fuel) is amended— (A) by striking out "40 cents" each place it appears and inserting in lieu thereof "50 cents", and (B) by striking out "30 cents" each place it appears and inserting in lieu thereof "37.5 cents". (4) AMENDMENTS OF SECTION 6427.Subsection (f) of section 26 USC 6427. 6427 is amended to read as follows: "(f) GASOLINE USED TO PRODUCE CERTAIN ALCOHOL FUELS.—

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