26 U.S.C. § 4672 — Definitions and special rules

Page 3002 TITLE 26—INTERNAL REVENUE CODE § 4672 (d) Tax-free sales, etc. for substances used as cer- tain fuels or in the production of fertilizer or animal feed Rules similar to the following rules shall apply for purposes of applying this section with respect to taxable substances used or sold for use as described in such rules: (1) Paragraphs (2), (5), and (9) of section 4662(b) (relating to tax-free sales of chemicals used as fuel or in the production of fertilizer or animal feed). (2) Paragraphs (2), (3), and (4) of section 4662(d) (relating to refund or credit of tax on certain chemicals used as fuel or in the pro- duction of fertilizer or animal feed). (e) Termination No tax shall be imposed by this section after December 31, 2031. (Added Pub. L. 99–499, title V, § 515(a), Oct. 17, 1986, 100 Stat. 1767; amended Pub. L. 99–509, title VIII, § 8032(c)(3), Oct. 21, 1986, 100 Stat. 1958; Pub. L. 117–58, div. H, title II, § 80201(a)(2), (b)(2), Nov. 15, 2021, 135 Stat. 1328, 1330.) Editorial Notes AMENDMENTS 2021—Subsec. (b)(2). Pub. L. 117–58, § 80201(b)(2), sub- stituted ‘‘10 percent’’ for ‘‘5 percent’’. Subsec. (e). Pub. L. 117–58, § 80201(a)(2), amended sub- sec. (e) generally. Prior to amendment, text read as fol- lows: ‘‘No tax shall be imposed under this section dur- ing any period during which the Hazardous Substance Superfund financing rate under section 4611 does not apply.’’ 1986—Subsec. (e). Pub. L. 99–509 substituted ‘‘the Haz- ardous Substance Superfund financing rate under sec- tion 4611 does not apply’’ for ‘‘no tax is imposed under section 4611(a)’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2021 AMENDMENT Amendment by Pub. L. 117–58 effective July 1, 2022, see section 80201(d) of Pub. L. 117–58, set out as a note under section 4661 of this title. EFFECTIVE DATE OF 1986 AMENDMENT Amendment by Pub. L. 99–509 effective on commence- ment date as defined in former section 4611(f)(2), see section 8032(d) of Pub. L. 99–509, set out as a note under section 4611 of this title. EFFECTIVE DATE Pub. L. 99–499, title V, § 515(c), Oct. 17, 1986, 100 Stat. 1769, provided that: ‘‘The amendments made by this section [enacting this subchapter] shall take effect on January 1, 1989.’’ STUDY AND REPORT Pub. L. 99–499, title V, § 515(d), Oct. 17, 1986, 100 Stat. 1769, directed the Secretary of the Treasury or his dele- gate to conduct a study of issues relating to the imple- mentation of the tax imposed by this section and cer- tain credit for exports of taxable substances, and report to Congress not later than Jan. 1, 1988. § 4672. Definitions and special rules (a) Taxable substance For purposes of this subchapter— (1) In general The term ‘‘taxable substance’’ means any substance which, at the time of sale or use by the importer, is listed as a taxable substance by the Secretary for purposes of this sub- chapter. (2) Determination of substances on list A substance shall be listed under paragraph (1) if— (A) the substance is contained in the list under paragraph (3), or (B) the Secretary determines, in consulta- tion with the Administrator of the Environ- mental Protection Agency and the Commis- sioner of U.S. Customs and Border Protec- tion, that taxable chemicals constitute more than 20 percent of the weight (or more than 20 percent of the value) of the materials used to produce such substance (determined on the basis of the predominant method of pro- duction). If an importer or exporter of any substance re- quests that the Secretary determine whether such substance be listed as a taxable sub- stance under paragraph (1) or be removed from such listing, the Secretary shall make such determination within 180 days after the date the request was filed. (3) Initial list of taxable substances Cumene Methylene chloride Styrene Polypropylene Ammonium nitrate Propylene glycol Nickel oxide Formaldehyde Isopropyl alcohol Acetone Ethylene glycol Acrylonitrile Vinyl chloride Methanol Polyethylene resins, total Propylene oxide Polybutadiene Polypropylene resins Styrene-butadiene, latex Ethylene oxide Styrene-butadiene, snpf Ethylene dichloride Synthetic rubber, not con- taining fillers Cyclohexane Urea Isophthalic acid Ferronickel Maleic anhydride Ferrochromium nov 3 pct Phthalic anhydride Ferrochrome ov 3 pct. car- bon Ethyl methyl ketone Unwrought nickel Chloroform Nickel waste and scrap Carbon tetrachloride Wrought nickel rods and wire Chromic acid Nickel powders Hydrogen peroxide Phenolic resins Polystyrene homo- polymer resins Polyvinylchloride resins Melamine Polystyrene resins and co- polymers Acrylic and methacrylic acid resins Ethyl alcohol for nonbev- erage use Vinyl resins Ethylbenzene Vinyl resins, NSPF. (4) Modifications to list The Secretary shall add to the list under paragraph (3) substances which meet either the weight or value tests of paragraph (2)(B) and may remove from such list only sub- stances which meet neither of such tests. (b) Other definitions For purposes of this subchapter— (1) Importer The term ‘‘importer’’ means the person en- tering the taxable substance for consumption, use, or warehousing. Page 3003 TITLE 26—INTERNAL REVENUE CODE § 4681 (2) Taxable chemicals; United States The terms ‘‘taxable chemical’’ and ‘‘United States’’ have the respective meanings given such terms by section 4662(a). (c) Disposition of revenues from Puerto Rico and the Virgin Islands The provisions of subsections (a)(3) and (b)(3) of section 7652 shall not apply to any tax im- posed by section 4671. (Added Pub. L. 99–499, title V, § 515(a), Oct. 17, 1986, 100 Stat. 1768; amended Pub. L. 100–647, title II, § 2001(b), Nov. 10, 1988, 102 Stat. 3594; Pub. L. 114–125, title VIII, § 802(d)(2), Feb. 24, 2016, 130 Stat. 210; Pub. L. 117–58, div. H, title II, § 80201(c)(1), Nov. 15, 2021, 135 Stat. 1330.) Editorial Notes AMENDMENTS 2021—Subsec. (a)(2)(B). Pub. L. 117–58 substituted ‘‘20 percent’’ for ‘‘50 percent’’ in two places. 1988—Subsec. (a)(2). Pub. L. 100–647, § 2001(b)(2), in- serted at end ‘‘If an importer or exporter of any sub- stance requests that the Secretary determine whether such substance be listed as a taxable substance under paragraph (1) or be removed from such listing, the Sec- retary shall make such determination within 180 days after the date the request was filed.’’ Subsec. (a)(2)(B). Pub. L. 100–647, § 2001(b)(1), inserted ‘‘(or more than 50 percent of the value)’’ after ‘‘weight’’. Subsec. (a)(4). Pub. L. 100–647, § 2001(b)(3), amended par. (4) generally. Prior to amendment, par. (4) read as follows: ‘‘(A) IN GENERAL.—The Secretary may add substances to or remove substances from the list under paragraph (3) (including items listed by reason of paragraph (2)) as necessary to carry out the purposes of this subchapter. ‘‘(B) AUTHORITY TO ADD SUBSTANCES TO LIST BASED ON VALUE.—The Secretary may, to the extent necessary to carry out the purposes of this subchapter, add any sub- stance to the list under paragraph (3) if such substance would be described in paragraph (2)(B) if ‘value’ were substituted for ‘weight’ therein.’’ Statutory Notes and Related Subsidiaries CHANGE OF NAME ‘‘Commissioner of U.S. Customs and Border Protec- tion’’ substituted for ‘‘Commissioner of Customs’’ in subsec. (a)(2)(B) on authority of section 802(d)(2) of Pub. L. 114–125, set out as a note under section 211 of Title 6, Domestic Security. EFFECTIVE DATE OF 2021 AMENDMENT Amendment by Pub. L. 117–58 effective July 1, 2022, see section 80201(d) of Pub. L. 117–58, set out as a note under section 4661 of this title. EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Superfund Revenue Act of 1986, Pub. L. 99–499, title V, to which it relates, see section 2001(e) of Pub. L. 100–647, set out as a note under section 56 of this title. EFFECTIVE DATE Section effective Jan. 1, 1989, see section 515(c) of Pub. L. 99–499, set out as a note under section 4671 of this title. TRANSFER OF FUNCTIONS For transfer of functions, personnel, assets, and li- abilities of the United States Customs Service of the Department of the Treasury, including functions of the Secretary of the Treasury relating thereto, to the Sec- retary of Homeland Security, and for treatment of re- lated references, see sections 203(1), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of Novem- ber 25, 2002, as modified, set out as a note under section 542 of Title 6. For establishment of U.S. Customs and Border Protection in the Department of Homeland Se- curity, treated as if included in Pub. L. 107–296 as of Nov. 25, 2002, see section 211 of Title 6, as amended gen- erally by Pub. L. 114–125, and section 802(b) of Pub. L. 114–125, set out as a note under section 211 of Title 6. PRESUMPTION AS A TAXABLE SUBSTANCE FOR PRIOR DETERMINATIONS Pub. L. 117–58, div. H, title II, § 80201(c)(2), Nov. 15, 2021, 135 Stat. 1330, provided that: ‘‘Except as otherwise determined by the Secretary of the Treasury (or the Secretary’s delegate), any substance which was deter- mined to be a taxable substance by reason of section 4672(a)(2) of the Internal Revenue Code of 1986 prior to the date of enactment of this Act [Nov. 15, 2021] shall continue to be treated as a taxable substance for pur- poses of such section after such date.’’ PUBLICATION OF INITIAL LIST Pub. L. 117–58, div. H, title II, § 80201(c)(3), Nov. 15, 2021, 135 Stat. 1330, provided that: ‘‘Not later than Jan- uary 1, 2022, the Secretary of the Treasury (or the Sec- retary’s delegate) shall publish an initial list of taxable substances under section 4672(a) of the Internal Rev- enue Code of 1986.’’ Subchapter D—Ozone-Depleting Chemicals, Etc. Sec. 4681. Imposition of tax. 4682. Definitions and special rules. § 4681. Imposition of tax (a) General rule There is hereby imposed a tax on— (1) any ozone-depleting chemical sold or used by the manufacturer, producer, or importer thereof, and (2) any imported taxable product sold or used by the importer thereof. (b) Amount of tax (1) Ozone-depleting chemicals (A) In general The amount of the tax imposed by sub- section (a) on each pound of ozone-depleting chemical shall be an amount equal to— (i) the base tax amount, multiplied by (ii) the ozone-depletion factor for such chemical. (B) Base tax amount The base tax amount for purposes of sub- paragraph (A) with respect to any sale or use during any calendar year after 1995 shall be $5.35 increased by 45 cents for each year after 1995. (2) Imported taxable product (A) In general The amount of the tax imposed by sub- section (a) on any imported taxable product shall be the amount of tax which would have been imposed by subsection (a) on the ozone- depleting chemicals used as materials in the manufacture or production of such product