Page:United States Statutes at Large Volume 98 Part 1.djvu/1056

 98 STAT. 1008

26 USC 40 note.

26 USC 4041.

PUBLIC LAW 98-369—JULY 18, 1984

amended by striking out "coal" and inserting in lieu thereof "coal (including peat)". (g) EFFECTIVE DATE.—The amendments made by this section shall take effect on January 1, 1985. SEC. 913. MODIFICATION OF TAX IMPOSED ON METHANOL AND ETHANOL. (a) IN GENERAL.—Section 4041 (relating to imposition of tax on special fuels) is amended by adding at the end thereof the following new subsection, "(m) CERTAIN ALCOHOL FUELS.—

"(1) IN GENERAL.—In the case of the sale or use of any partially exempt methanol or ethanol fuel— "(A) subsection (a)(2) shall be applied by substituting 'AV2 cents' for '9 cents', and "(B) no tax shall be imposed by subsection (c). "(2) PARTIALLY EXEMPT METHANOL OR ETHANOL FUEL.—The

Ante, p. 826.

26 USC 4041 note.

term 'partially exempt methanol or ethanol fuel' means any liquid at least 85 percent of which consists of methanol, ethanol, or other alcohol produced from natural gas.". Oo) CONFORMING AMENDMENT.—Subsection (c) of section 40 (relating to coordination of credit for alcohol used as a fuel with exemption from excise tax) (as redesignated by title IV of this Act) is amended by striking out "(b)(2) or (k)" and inserting in lieu thereof "(b)(2),(k),or(m)". (c) EFFECTIVE DATE.—The amendments made by this section shall take effect on August 1, 1984. SEC. 914. EXTENSION OF REDUCTION IN TAX FOR FUEL USED BY TAXICABS.

26 USC 6427.

Paragraph (3) of section 6427(e) (relating to termination of use in certain teixicabs) is amended by striking out "September 30, 1984" and inserting in lieu thereof "September 30, 1985". SEC. 915. 3 CENT TAX ON DIESEL FUEL, ETC., USED IN CERTAIN BUSES. (a) IN GENERAL.—Subsection (b) of section 6427 (relating to fuels not used for taxable purposes) is amended by redesignating paragraph (2) as paragraph (3) and inserting after paragraph (1) the following new paragraph: "(2) 3-CENT REDUCTION IN REFUND IN CERTAIN CASES.—

"(A) IN GENERAL.—Except as provided in subparagraph (B), the rate of tax taken into account under paragraph (1) shall not exceed 12 cents. "(B) EXCEPTION.—Subparagraph (A) shall not apply to fuel used in any automobile bus while engaged in furnishing (for compensation) intracity passenger land transportation— "(i) which is available to the general public, and "(ii) which is scheduled and along regular routes, but only if such bus is a qualified local bus. "(C) QUALIFIED LOCAL BUS.—For purposes of this paragraph, the term 'qualified local bus' means any local bus— "(i) which has a seating capacity of at least 20 adults (not including the driver), and "(ii) which is under contract (or is receiving more than a nominal subsidy) from any State or local government (as defined in section 4221(d)) to furnish such transportation."

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