Page:United States Statutes at Large Volume 98 Part 1.djvu/1070

 98 STAT. 1022

PUBLIC LAW 98-369—JULY 18, 1984

' ' 26 USC 4041 note. 26 USC 4261 note.

"(A) the exploration for, or the development or removal of, hard minerals, or "(B) the exploration for oil or gas, or",

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(c) EFFECTIVE DATE.— (1) SUBSECTION (a).—The

amendment made by subsection (a) shall take effect on April 1, 1984. (2) SUBSECTION (b).—The amendment made by subsection (b) shall apply to transportation beginning after March 31, 1984, but shall not apply to any amount paid on or before such date. SEC. 1019. TECHNICAL AMENDMENTS TO THE HAZARDOUS S13BSTANCE RESPONSE REVENUE ACT OF 1980. (a) CLARIFICATION OF EXCEPTED SUBSTANCES.—

26 USC 4662.

(1) IN GENERAL.—Subsection (b) of section 4662 (relating to definitions and special rules with respect to tax on certain chemicals) is amended by adding at the end thereof the following new paragraphs: "(5) SUBSTANCES USED IN THE PRODUCTION OF MOTOR FUEL, ETC.—

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"(A) IN GENERAL.—In the case of any chemical described in subparagraph (D) which is a qualified fuel substance, no tax shall be imposed under section 4661(a). "(B) QUALIFIED FUEL SUBSTANCE.—For purposes of this section, the term 'qualified fuel substance' means any substance— "(i) used in a qualified fuel use by the manufacturer, producer, or importer, "(ii) sold for use by any purchaser in a qualified fuel use, or "(iii) sold for resale by any purchaser for use, or resale for ultimate use, in a qualified fuel use. "(C) QUALIFIED FUEL USE.—For purposes of this subsection, the term 'qualified fuel use' means— "(i) any use in the manufacture or production of any motor fuel, diesel fuel, aviation fuel, or jet fuel, or "(ii) any use as such a fuel. "(D) CHEMICALS TO WHICH PARAGRAPH APPLIES.—For purposes of this subsection, the chemicals described in this subparagraph are acetylene, benzene, butylene, butadiene, ethylene, naphthalene, propylene, toluene, and xylene. "(E) TAXATION OF NONQUALIFIED SALE OR USE.—For purposes of section 4661(a), if no tax was imposed by such section on the sale or use of any chemical by reason of subparagraph (A), the first person who sells or uses such chemical other than in a sale or use described in subparagraph (A) shall be treated as the manufacturer of such chemical. "(6) SUBSTANCE HAVING TRANSITORY PRESENCE DURING REFINING PROCESS, ETC.—

"(A) IN GENERAL.—No tax shall be imposed under section 4661(a) on any taxable chemical described in subparagraph (B) by reason of the transitory presence of such chemical during any process of smelting, refining, or otherwise extracting any substance not subject to tax under section 4661(a). "(B) CHEMICALS TO WHICH SUBPARAGRAPH (A) APPLIES.—

The chemicals described in this subparagraph are—

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