Page:United States Statutes at Large Volume 98 Part 1.djvu/1053

 PUBLIC LAW 98-369—JULY 18, 1984

98 STAT. 1005

Subtitle B—Provisions Relating to Fuel Taxes SEC. 911. INCREASE IN DIESEL FUEL TAX.

(a) GENERAL RULE.—Paragraph (1) of section 4041(a) (relating to 26 USC 4041. diesel fuel) is amended by striking out "9 cents" and inserting in lieu thereof "15 cents". (b) INCOME TAX CREDIT FOR PURCHASE OF DIESEL-POWERED AUTOMOBILE OR LIGHT TRUCK.—Section 6427 (relating to fuels not used for Ante, p. 979.

taxable purposes), as amended by this Act, is amended by redesignating subsections (g), (h), (i), (j), (k), (D. and (m) as subsections (h), (i), 0"), (k), (1), (m), and (n), respectively, and by inserting after subsection (f) the following new subsection: "(g) ADVANCE REPAYMENT OF INCREASED DIESEL FUEL TAX TO ORIGINAL PURCHASERS OF DIESEL-POWERED AUTOMOBILES AND LIGHT TRUCKS.—

"(1) IN GENERAL.—Except as provided in subsection (j), the Secretary shall pay (without interest) to the original purchaser of any qualified diesel-powered highway vehicle an anount equal to the diesel fuel differential amount. "(2) QUALIFIED DIESEL-POWERED HIGHWAY VEHICLE.—For purposes of this subsection, the term 'qualified diesel-powered highway vehicle' means any diesel-powered highway vehicle which— "(A) has at least 4 wheels, "(B) has a gross vehicle weight rating of 10,000 pounds or less, and "(C) is registered for highway use in the United States under the laws of any State. "(3) DIESEL FUEL DIFFERENTIAL AMOUNT.—For purposes of this subsection, the term 'diesel fuel differential amount' means— "(A) except as provided in subparagraph (B), $102, or "(B) in the case of a truck or van, $198. "(4) ORIGINAL PURCHASER.—For purposes of this subsection— (A) IN GENERAL.—Except as provided in subparagraph (B), the term 'original purchaser means the first person to purchase the qualified diesel-powered vehicle for use other than resale. "(B) EXCEPTION FOR CERTAIN PERSONS NOT SUBJECT TO FUELS TAX.—The term 'original purchaser' shall not include

any State or local government (as defined in section 4221(d)(4)) or any nonprofit educational organization (as defined in section 4221(d)(5)).



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"(C) TREATMENT OF DEMONSTRATION USE BY DEALER.—For

purposes of subparagraph (A), use as a demonstrator by a dealer shall not be taken into account. "(5) VEHICLES TO WHICH SUBSECTION APPLIES.—Except as pro-

vided in paragraph (6), this subsection shall only apply to qualified diesel-powered highway vehicles originally purchased after January 1, 1985, and before January 1, 1988. "(6) SPECIAL RULE FOR CERTAIN VEHICLES HELD ON JANUARY i,

1985.—

"(A) IN GENERAL.—In the case of any person holding a qualified diesel-powered highway vehicle on January 1, 1985— "(i) such person shall be treated as if he originally purchased such vehicle on December 31, 1984, but

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