Page:United States Statutes at Large Volume 98 Part 1.djvu/1071

 PUBLIC LAW 98-369—JULY 18, 1984

98 STAT. 1023

"(i) barium sulfide, cupric sulfate, cupric oxide, cuprous oxide, lead oxide, zinc chloride, and zinc sulfate, and "(ii) any solution or mixture containing any chemical described in clause (i). "(C) REMOVAL TREATED AS USE.—Nothing in subparagraph (A) shall be construed to apply to any chemical which is removed from or ceases to be part of any smelting, refining, or other extraction process."

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(2) CREDIT OR REFUND FOR USE AS QUALIFIED FUEL, ETC.—

Subsection (d) of section 4662 (relating to refund or credit for 26 USC 4662. certain uses) is amended by adding at the end thereof the following new paragraph: . sj? "(3) USE AS QUALIFIED FUEL.—Under regulations prescribed by the Secretary, if— "(A) a tax under section 4661 was paid with respect to any chemical described in subparagraph (D) of subsection (b)(5) without regard to subsection (b)(5), and "(B) any person uses such chemical as a qualified fuel substance, then an amount equal to the excess of the tax so paid over the tax determined with regard to subsection (b)(5) shall be allowed as a credit or refund (without interest) to such person in the same manner as if it were an overpayment of tax imposed by this section." (3) METHANE AND BUTANE USED IN PRODUCTION OF MOTOR FUEL,

ETC.—Paragraph (1) of section 4662(b) is amended by inserting "or in the manufacture or production of any motor fuel, diesel fuel, aviation fuel, or jet fuel" after "than as a fuel". (b) CLARIFICATION OF USE AS FERTILIZER.—

(1) IN GENERAL.—Paragraph (2) of section 4662(b) is amended by striking out subparagraphs (B) and (C) and inserting in lieu thereof the following: "(B)

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QUALIFIED FERTILIZER SUBSTANCE.—For purposes of

this section, the term 'qualified fertilizer substance' means any substance— "(i) used in a qualified fertilizer use by the manufacturer, producer, or importer, "(ii) sold for use by any purchaser in a qualified fertilizer use, or "(iii) sold for resale by any purchaser for use, or resale for ultimate use, in a qualified fertilizer use. "(C) QUALIFIED FERTILIZER USE.—The term 'qualified fertilizer use' means any use in the manufacture or production of fertilizer or for direct application as a fertilizer. "(D) 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." (2) TECHNICAL AMENDMENTS.—

(A) Subparagraph (A) of section 4662(b)(2) is amended by striking out "qualified substance" and inserting in lieu thereof "qualified fertilizer substance".

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