Chapter 31, Subchapter B, Section 4041, Subsection (b) · 26 U.S.C. Chapter 31

Contents

(b)

(1)

(A)No tax shall be imposed by subsection (a) on liquids sold for use or used in an off-highway business use.

(B)If a liquid on which no tax was imposed by reason of subparagraph (A) is used otherwise than in an off-highway business use, a tax shall be imposed by paragraph (1)(B), (2)(B), or (3)(A)(ii) of subsection (a) (whichever is appropriate) and by the corresponding provision of subsection (d)(1) (if any).

(C)For purposes of this subsection, the term “off-highway business use” has the meaning given to such term by section 6421(e)(2); except that such term shall not, for purposes of subsection (a)(1), include use in a diesel-powered train.

(2)

(A)In the case of any qualified methanol or ethanol fuel—

(i)the rate applicable under subsection (a)(2) shall be the applicable blender rate per gallon less than the otherwise applicable rate (6 cents per gallon in the case of a mixture none of the alcohol in which consists of ethanol), and

(ii)subsection (d)(1) shall be applied by substituting “0.05 cent” for “0.1 cent” with respect to the sales and uses to which clause (i) applies.

(B)The term “qualified methanol or ethanol fuel” means any liquid at least 85 percent of which consists of methanol, ethanol, or other alcohol produced from coal (including peat).

(C)For purposes of subparagraph (A)(i), the applicable blender rate is—

(i)except as provided in clause (ii), 5.4 cents, and

(ii)for sales or uses during calendar years 2001 through 2008, ⅒ of the blender amount applicable under section 40(h)(2) for the calendar year in which the sale or use occurs.

(D)On and after January 1, 2009, subparagraph (A) shall not apply.

United States Government work; public domain under 17 U.S.C. § 105.