Collapse to view only [§ 6424. Repealed.
- § 6411. Tentative carryback and refund adjustments
- § 6412. Floor stocks refunds
- § 6413. Special rules applicable to certain employment taxes
- § 6414. Income tax withheld
- § 6415. Credits or refunds to persons who collected certain taxes
- § 6416. Certain taxes on sales and services
- § 6417. Elective payment of applicable credits
- § 6418. Transfer of certain credits
- § 6419. Excise tax on wagering
- § 6420. Gasoline used on farms
- § 6421. Gasoline used for certain nonhighway purposes, used by local transit systems, or sold for certain exempt purposes
- § 6422. Cross references
- § 6423. Conditions to allowance in the case of alcohol and tobacco taxes
- [§ 6424. Repealed.
- § 6425. Adjustment of overpayment of estimated income tax by corporation
- § 6426. Credit for alcohol fuel, biodiesel, and alternative fuel mixtures
- § 6427. Fuels not used for taxable purposes
- § 6428. 2020 recovery rebates for individuals
- § 6428A. Additional 2020 recovery rebates for individuals
- § 6428B. 2021 recovery rebates to individuals
- [§ 6429. Repealed.
- § 6430. Treatment of tax imposed at Leaking Underground Storage Tank Trust Fund financing rate
- [§ 6431. Repealed.
- § 6432. Continuation coverage premium assistance
- § 6433. Saver’s Match
§ 6411. Tentative carryback and refund adjustments
(a) Application for adjustmentA taxpayer may file an application for a tentative carryback adjustment of the tax for the prior taxable year affected by a net operating loss carryback provided in section 172(b), by a business credit carryback provided in section 39, or by a capital loss carryback provided in subsection (a)(1) or (c) of section 1212, from any taxable year. The application shall be verified in the manner prescribed by section 6065 in the case of a return of such taxpayer and shall be filed, on or after the date of filing for the return for the taxable year of the net operating loss, net capital loss, or unused business credit from which the carryback results and within a period of 12 months after such taxable year or, with respect to any portion of a business credit carryback attributable to a net operating loss carryback or a net capital loss carryback from a subsequent taxable year, in the manner and form required by regulations prescribed by the Secretary. The applications shall set forth in such detail and with such supporting data and explanation as such regulations shall require—
(1) The amount of the net operating loss, net capital loss, or unused business credit;
(2) The amount of the tax previously determined for the prior taxable year affected by such carryback, the tax previously determined being ascertained in accordance with the method prescribed in section 1314(a);
(3) The amount of decrease in such tax, attributable to such carryback, such decrease being determined by applying the carryback in the manner provided by law to the items on the basis of which such tax was determined;
(4) The unpaid amount of such tax, not including any amount required to be shown under paragraph (5);
(5) The amount, with respect to the tax for the taxable year immediately preceding the taxable year from which the carryback is made, as to which an extension of time for payment under section 6164 is in effect; and
(6) Such other information for purposes of carrying out the provisions of this section as may be required by such regulations.
Except for purposes of applying section 6611(f)(4)(B), an application under this subsection shall not constitute a claim for credit or refund.
(b) Allowance of adjustments
(c) Consolidated returns
(d) Tentative refund of tax under claim of right adjustment
(1) ApplicationA taxpayer may file an application for a tentative refund of any amount treated as an overpayment of tax for the taxable year under section 1341(b)(1). Such application shall be in such manner and form as the Secretary may prescribe by regulation and shall—
(A) be verified in the same manner as an application under subsection (a),
(B) be filed during the period beginning on the date of filing the return for such taxable year and ending on the date 12 months from the last day of such taxable year, and
(C) set forth in such detail and with such supporting data such regulations prescribe—
(i) the amount of the tax for such taxable year computed without regard to the deduction described in section 1341(a)(2),
(ii) the amount of the tax for all prior taxable years for which the decrease in tax provided in section 1341(a)(5)(B) was computed,
(iii) the amount determined under section 1341(a)(5)(B),
(iv) the amount of the overpayment determined under section 1341(b)(1); and
(v) such other information as the Secretary may require.
(2) Allowance of adjustmentsWithin a period of 90 days from the date on which an application is filed under paragraph (1) or from the date of the overpayment (determined under section 1341(b)(1)), whichever is later, the Secretary shall—
(A) review the application,
(B) determine the amount of the overpayment, and
(C) apply, credit, or refund such overpayment,
in a manner similar to the manner provided in subsection (b).
(3) Consolidated returns
(Aug. 16, 1954, ch. 736, 68A Stat. 794; Pub. L. 89–721, § 2(a)–(e), Nov. 2, 1966, 80 Stat. 1150; Pub. L. 90–225, § 2(b), Dec. 27, 1967, 81 Stat. 731; Pub. L. 91–172, title V, § 512(d), Dec. 30, 1969, 83 Stat. 639; Pub. L. 92–178, title VI, § 601(e)(1), Dec. 10, 1971, 85 Stat. 560; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), title XXI, § 2107(g)(1), Oct. 4, 1976, 90 Stat. 1834, 1904; Pub. L. 95–30, title II, § 202(d)(5)(A), May 23, 1977, 91 Stat. 150; Pub. L. 95–600, title V, § 504(a), (b)(1)(A), Nov. 6, 1978, 92 Stat. 2880, 2881; Pub. L. 96–222, title I, §§ 103(a)(6)(G)(xiii), 105(a)(2), Apr. 1, 1980, 94 Stat. 211, 218; Pub. L. 97–34, title II, § 221(b)(2)(B), title III, § 331(d)(2)(B), Aug. 13, 1981, 95 Stat. 247, 295; Pub. L. 98–369, div. A, title IV, § 474(r)(37), title VII, § 714(n)(2)(B), July 18, 1984, 98 Stat. 846, 964; Pub. L. 99–514, title II, § 231(d)(3)(H), title XVIII, § 1847(b)(10), Oct. 22, 1986, 100 Stat. 2180, 2857; Pub. L. 100–647, title I, § 1002(h)(2), Nov. 10, 1988, 102 Stat. 3370; Pub. L. 106–554, § 1(a)(7) [title III, § 318(d)(1)], Dec. 21, 2000, 114 Stat. 2763, 2763A–645; Pub. L. 109–135, title IV, § 409(a)(1), Dec. 21, 2005, 119 Stat. 2635.)
§ 6412. Floor stocks refunds
(a) In general
(1) Tires and taxable fuel
(2) Definitions
For purposes of this section—
(A) The term “dealer” includes a wholesaler, jobber, distributor, or retailer.
(B) An article shall be considered as “held by a dealer” if title thereto has passed to such dealer (whether or not delivery to him has been made), and if for purposes of consumption title to such article or possession thereof has not at any time been transferred to any person other than a dealer.
(b) Limitation on eligibility for credit or refund
(c) Other laws applicable
(Aug. 16, 1954, ch. 736, 68A Stat. 795; Mar. 30, 1955, ch. 18, § 3(b)(4), 69 Stat. 15; Mar. 29, 1956, ch. 115, § 3(b)(4), 70 Stat. 67; May 29, 1956, ch. 342, § 19, 70 Stat. 221; June 29, 1956, ch. 462, title II, § 208(a), 70 Stat. 392; Pub. L. 85–12, § 3(b)(4), Mar. 29, 1957, 71 Stat. 10; Pub. L. 85–475, § 3(b)(4), June 30, 1958, 72 Stat. 260; Pub. L. 85–859, title I, § 162(a), Sept. 2, 1958, 72 Stat. 1306; Pub. L. 86–75, § 3(b)(3), June 30, 1959, 73 Stat. 158; Pub. L. 86–342, title II, § 201(c)(4), Sept. 21, 1959, 73 Stat. 614; Pub. L. 86–564, title II, § 202(b)(3), June 30, 1960, 74 Stat. 291; Pub. L. 86–592, § 2, July 6, 1960, 74 Stat. 330; Pub. L. 87–15, § 2(b), Mar. 31, 1961, 75 Stat. 40; Pub. L. 87–61, title II, § 206 (c), (d), June 29, 1961, 75 Stat. 127; Pub. L. 87–72, § 3(b)(3), June 30, 1961, 75 Stat. 193; Pub. L. 87–456, title III, § 302(d), May 24, 1962, 76 Stat. 77; Pub. L. 87–508, § 3(b)(3), June 28, 1962, 76 Stat. 114; Pub. L. 87–535, § 18(b), July 13, 1962, 76 Stat. 166; Pub. L. 88–52, § 3(b)(1)(C), June 29, 1963, 77 Stat. 72; Pub. L. 88–348, § 2(b)(1)(C), June 30, 1964, 78 Stat. 237; Pub. L. 89–44, title II, § 209(a), (d), June 21, 1965, 79 Stat. 141, 144; Pub. L. 89–368, title II, § 201(b), Mar. 15, 1966, 80 Stat. 66; Pub. L. 90–285, § 1(a)(2), Apr. 12, 1968, 82 Stat. 92; Pub. L. 90–364, title I, § 105(a)(2), June 28, 1968, 82 Stat. 265; Pub. L. 91–172, title VII, § 702(a)(2), Dec. 30, 1969, 83 Stat. 660; Pub. L. 91–605, title III, § 303(b), Dec. 31, 1970, 84 Stat. 1744; Pub. L. 91–614, title II, § 201(a)(2), Dec. 31, 1970, 84 Stat. 1843; Pub. L. 92–178, title IV, § 401(g)(5), Dec. 10, 1971, 85 Stat. 533; Pub. L. 94–280, title III, § 303(b), May 5, 1976, 90 Stat. 457; Pub. L. 94–455, title XIX, § 1906(a)(22), (b)(13)(A), Oct. 4, 1976, 90 Stat. 1826, 1834; Pub. L. 95–599, title V, § 502(c), Nov. 6, 1978, 92 Stat. 2757; Pub. L. 95–618, title II, § 231(f)(1), Nov. 9, 1978, 92 Stat. 3189; Pub. L. 97–424, title V, § 516(a)(5), Jan. 6, 1983, 96 Stat. 2183; Pub. L. 98–369, div. A, title VII, § 735(c)(12), July 18, 1984, 98 Stat. 983; Pub. L. 100–17, title V, § 502(d)(1), Apr. 2, 1987, 101 Stat. 257; Pub. L. 101–508, title XI, § 11211(f)(1), Nov. 5, 1990, 104 Stat. 1388–427; Pub. L. 102–240, title VIII, § 8002(c)(1), Dec. 18, 1991, 105 Stat. 2203; Pub. L. 103–66, title XIII, § 13242(d)(16), Aug. 10, 1993, 107 Stat. 524; Pub. L. 105–178, title IX, § 9002(a)(2)(A), June 9, 1998, 112 Stat. 499; Pub. L. 109–59, title XI, § 11101(a)(3), Aug. 10, 2005, 119 Stat. 1944; Pub. L. 112–30, title I, § 142(c), Sept. 16, 2011, 125 Stat. 356; Pub. L. 112–102, title IV, § 402(c), Mar. 30, 2012, 126 Stat. 282; Pub. L. 112–140, title IV, § 402(b), June 29, 2012, 126 Stat. 402; Pub. L. 112–141, div. D, title I, § 40102(c), July 6, 2012, 126 Stat. 845; Pub. L. 114–94, div. C, title XXXI, § 31102(c), Dec. 4, 2015, 129 Stat. 1727; Pub. L. 117–58, div. H, title I, § 80102(c), Nov. 15, 2021, 135 Stat. 1327.)
§ 6413. Special rules applicable to certain employment taxes
(a) Adjustment of tax
(1) General rule
(2) United States as employer
(3) Guam or American Samoa as employer
(4) District of Columbia as employer
(5) States and political subdivisions as employer
(b) Overpayments of certain employment taxes
(c) Special refunds
(1) In general
(2) Applicability in case of Federal and State employees, employees of certain foreign affiliates, and governmental employees in Guam, American Samoa, and the District of Columbia
(A) Federal employees
(B) State employees
(C) Employees of certain foreign affiliates
(D) Governmental employees in Guam
(E) Governmental employees in American Samoa
(F) Governmental employees in the District of Columbia
(G) Employees of States and political subdivisions
(d) Refund or credit of Federal unemployment tax
(Aug. 16, 1954, ch. 736, 68A Stat. 797; Sept. 1, 1954, ch. 1206, title II, § 202(a)(1), (b)(1)–(3), 68 Stat. 1089, 1090; Pub. L. 85–840, title IV, § 402(d), Aug. 28, 1958, 72 Stat. 1043; Pub. L. 86–778, title I, § 103(r)(2)–(4), Sept. 13, 1960, 74 Stat. 940; Pub. L. 89–97, title III, §§ 317(e), (f), 320(b)(5), (6), July 30, 1965, 79 Stat. 389, 390, 393, 394; Pub. L. 90–248, title I, § 108(b)(5), (6), title V, § 502(a), Jan. 2, 1968, 81 Stat. 835, 934; Pub. L. 92–5, title II, § 203(b)(5), (6), Mar. 17, 1971, 85 Stat. 11; Pub. L. 92–336, title II, § 203(b)(5), (6), July 1, 1972, 86 Stat. 419, 420; Pub. L. 92–603, title I, § 144(c), Oct. 30, 1972, 86 Stat. 1370; Pub. L. 93–66, title II, § 203(b)(5), (6), July 9, 1973, 87 Stat. 153; Pub. L. 93–233, § 5(b)(5), (6), Dec. 31, 1973, 87 Stat. 954; Pub. L. 93–445, title V, § 502, Oct. 16, 1974, 88 Stat. 1360; Pub. L. 94–455, title XIX, § 1906(a)(23)(A), (B)(i), (ii), (C), (D), (b)(13)(A), Oct. 4, 1976, 90 Stat. 1826, 1827, 1834; Pub. L. 97–248, title III, §§ 302(c), 307(a)(10)–(12), 308(a), Sept. 3, 1982, 96 Stat. 586, 589–591; Pub. L. 98–21, title III, § 321(e)(4), Apr. 20, 1983, 97 Stat. 120; Pub. L. 98–67, title I, § 102(a), Aug. 5, 1983, 97 Stat. 369; Pub. L. 99–272, title XIII, § 13205(a)(2)(E), Apr. 7, 1986, 100 Stat. 315; Pub. L. 101–508, title XI, § 11331(d)(1), Nov. 5, 1990, 104 Stat. 1388–468; Pub. L. 103–66, title XIII, § 13207(d)(1)–(3), Aug. 10, 1993, 107 Stat. 468.)
§ 6414. Income tax withheld
In the case of an overpayment of tax imposed by chapter 24, or by chapter 3 or 4, refund or credit shall be made to the employer or to the withholding agent, as the case may be, only to the extent that the amount of such overpayment was not deducted and withheld by the employer or withholding agent.
(Aug. 16, 1954, ch. 736, 68A Stat. 798; Pub. L. 111–147, title V, § 501(c)(1), Mar. 18, 2010, 124 Stat. 106.)
§ 6415. Credits or refunds to persons who collected certain taxes
(a) Allowance of credits or refunds
(b) Credit on returns
(c) Refund of overcollections
(d) Refund of taxable payment
(Aug. 16, 1954, ch. 736, 68A Stat. 798; Pub. L. 85–475, § 4(b)(4), June 30, 1958, 72 Stat. 260; Pub. L. 85–859, title I, § 163(d)(1), Sept. 2, 1958, 72 Stat. 1311; Pub. L. 89–44, title VI, § 601(b), June 21, 1965, 79 Stat. 153; Pub. L. 91–258, title II, § 205(b)(2), May 21, 1970, 84 Stat. 241; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)
§ 6416. Certain taxes on sales and services
(a) Condition to allowance
(1) General ruleNo credit or refund of any overpayment of tax imposed by chapter 31 (relating to retail excise taxes), or chapter 32 (manufacturers taxes), shall be allowed or made unless the person who paid the tax establishes, under regulations prescribed by the Secretary, that he—
(A) has not included the tax in the price of the article with respect to which it was imposed and has not collected the amount of the tax from the person who purchased such article;
(B) has repaid the amount of the tax to the ultimate purchaser of the article;
(C) in the case of an overpayment under subsection (b)(2) of this section—
(i) has repaid or agreed to repay the amount of the tax to the ultimate vendor of the article, or
(ii) has obtained the written consent of such ultimate vendor to the allowance of the credit or the making of the refund; or
(D) has filed with the Secretary the written consent of the person referred to in subparagraph (B) to the allowance of the credit or the making of the refund.
(2) ExceptionsThis subsection shall not apply to—
(A) the tax imposed by section 4041 (relating to tax on special fuels) on the use of any liquid, and
(B) an overpayment of tax under paragraph (1), (3)(A), (4), (5), or (6) of subsection (b) of this section.
(3) Special rule
(4) Registered ultimate vendor or credit card issuer to administer credits and refunds of gasoline tax
(A) In general
(B) Credit card issuerFor purposes of this subsection, if the purchase of gasoline described in subparagraph (A) (determined without regard to the registration status of the ultimate vendor) is made by means of a credit card issued to the ultimate purchaser, paragraph (1) shall not apply and the person extending the credit to the ultimate purchaser shall be treated as the person (and the only person) who paid the tax, but only if such person—
(i) is registered under section 4101,
(ii) has established, under regulations prescribed by the Secretary, that such person—(I) has not collected the amount of the tax from the person who purchased such article, or(II) has obtained the written consent from the ultimate purchaser to the allowance of the credit or refund, and
(iii) has so established that such person—(I) has repaid or agreed to repay the amount of the tax to the ultimate vendor,(II) has obtained the written consent of the ultimate vendor to the allowance of the credit or refund, or(III) has otherwise made arrangements which directly or indirectly provides the ultimate vendor with reimbursement of such tax.
If clause (i), (ii), or (iii) is not met by such person extending the credit to the ultimate purchaser, then such person shall collect an amount equal to the tax from the ultimate purchaser and only such ultimate purchaser may claim such credit or payment.
(C) Timing of claims
(b) Special cases in which tax payments considered overpaymentsUnder regulations prescribed by the Secretary, credit or refund (without interest) shall be allowed or made in respect of the overpayments determined under the following paragraphs:
(1) Price readjustments
(A) In general
(B) Further manufacture
(C) Adjustment of tire price
(2) Specified uses and resalesThe tax paid under chapter 32 (or under subsection (a) or (d) of section 4041 in respect of sales or under section 4051) in respect of any article shall be deemed to be an overpayment if such article was, by any person—
(A) exported;
(B) used or sold for use as supplies for vessels or aircraft;
(C) sold to a State or local government for the exclusive use of a State or local government;
(D) sold to a nonprofit educational organization for its exclusive use;
(E) sold to a qualified blood collector organization (as defined in section 7701(a)(49)) for such organization’s exclusive use in the collection, storage, or transportation of blood;
(F) in the case of any tire taxable under section 4071(a), sold to any person for use as described in section 4221(e)(3); or
(G) in the case of gasoline, used or sold for use in the production of special fuels referred to in section 4041.
Subparagraphs (C), (D), and (E) shall not apply in the case of any tax paid under section 4064. In the case of the tax imposed by section 4131, subparagraphs (B), (C), (D), and (E) shall not apply and subparagraph (A) shall apply only if the use of the exported vaccine meets such requirements as the Secretary may by regulations prescribe. This paragraph shall not apply in the case of any tax imposed under section 4041(a)(1) or 4081 on diesel fuel or kerosene and any tax paid under section 4121. Subparagraphs (C) and (D) shall not apply in the case of any tax imposed on gasoline under section 4081 if the requirements of subsection (a)(4) are not met. In the case of taxes imposed by subchapter C or D of chapter 32, subparagraph (E) shall not apply.
(3) Tax-paid articles used for further manufacture, etc.If the tax imposed by chapter 32 has been paid with respect to the sale of any article (other than coal taxable under section 4121) by the manufacturer, producer, or importer thereof and such article is sold to a subsequent manufacturer or producer before being used, such tax shall be deemed to be an overpayment by such subsequent manufacturer or producer if—
(A) in the case of any article other than any fuel taxable under section 4081, such article is used by the subsequent manufacturer or producer as material in the manufacture or production of, or as a component part of—
(i) another article taxable under chapter 32, or
(ii) an automobile bus chassis or an automobile bus body,
manufactured or produced by him; or
(B) in the case of any fuel taxable under section 4081, such fuel is used by the subsequent manufacturer or producer, for nonfuel purposes, as a material in the manufacture or production of any other article manufactured or produced by him.
(4) TiresIf—
(A) the tax imposed by section 4071 has been paid with respect to the sale of any tire by the manufacturer, producer, or importer thereof, and
(B) such tire is sold by any person on or in connection with, or with the sale of, any other article, such tax shall be deemed to be an overpayment by such person if such other article is—
(i) an automobile bus chassis or an automobile bus body,
(ii) by such person exported, sold to a State or local government for the exclusive use of a State or local government, sold to a nonprofit educational organization for its exclusive use, or used or sold for use as supplies for vessels or aircraft, or
(iii) sold to a qualified blood collector organization for its exclusive use in connection with a vehicle the organization certifies will be primarily used in the collection, storage, or transportation of blood.
(5) Return of certain installment accountsIf—
(A) tax was paid under section 4216(d)(1) in respect of any installment account,
(B) such account is, under the agreement under which the account was sold, returned to the person who sold such account, and
(C) the consideration is readjusted as provided in such agreement,
the part of the tax paid under section 4216(d)(1) allocable to the part of the consideration repaid or credited to the purchaser of such account shall be deemed to be an overpayment.
(6) Truck chassis, bodies, and semitrailers used for further manufactureIf—
(A) the tax imposed by section 4051 has been paid with respect to the sale of any article, and
(B) before any other use, such article is by any person used as a component part of another article taxable under section 4051 manufactured or produced by him,
such tax shall be deemed to be an overpayment by such person. For purposes of the preceding sentence, an article shall be treated as having been used as a component part of another article if, had it not been broken or rendered useless in the manufacture or production of such other article, it would have been so used.
This subsection shall apply in respect of an article only if the exportation or use referred to in the applicable provision of this subsection occurs before any other use, or, in the case of a sale or resale, the use referred to in the applicable provision of this subsection is to occur before any other use.
(c) Refund to exporter or shipper
(d) Credit on returns
(e) Accounting procedures for like articlesUnder regulations prescribed by the Secretary, if any person uses or resells like articles, then for purposes of this section the manufacturer, producer, or importer of any such article may be identified, and the amount of tax paid under chapter 32 in respect of such article may be determined—
(1) on a first-in-first-out basis,
(2) on a last-in-first-out basis, or
(3) in accordance with any other consistent method approved by the Secretary.
(f) Meaning of terms
(Aug. 16, 1954, ch. 736, 68A Stat. 798; Aug. 11, 1955, ch. 793, § 2, 69 Stat. 676; Aug. 11, 1955, ch. 805, §§ 1(h), (i), 2(b), 69 Stat. 690; Apr. 2, 1956, ch. 160, § 2(b)(1), 70 Stat. 90; June 29, 1956, ch. 462, title II, § 208(b), 70 Stat. 393; Pub. L. 85–475, § 4(b)(5), (6), June 30, 1958, 72 Stat. 260; Pub. L. 85–859, title I, § 163(a), (c), Sept. 2, 1958, 72 Stat. 1306, 1311; Pub. L. 86–342, title II, § 201(d)(1), Sept. 21, 1959, 73 Stat. 614; Pub. L. 86–418, § 3, Apr. 8, 1960, 74 Stat. 38; Pub. L. 86–781, § 2, Sept. 14, 1960, 74 Stat. 1018; Pub. L. 87–61, title II, § 205(c), (d), June 29, 1961, 75 Stat. 126; Pub. L. 87–508, § 5(c)(3), June 28, 1962, 76 Stat. 119; Pub. L. 89–44, title II, § 207(c), title VI, § 601(c), title VIII, § 801(d)(2), June 21, 1965, 79 Stat. 140, 153, 158; Pub. L. 91–258, title II, §§ 205(b)(3), (4), 207(d)(4)–(7), May 21, 1970, 84 Stat. 242, 248, 249; Pub. L. 91–614, title III, § 302(a), (b), Dec. 31, 1970, 84 Stat. 1845; Pub. L. 92–178, title IV, § 401(a)(3)(C), (g)(6), Dec. 10, 1971, 85 Stat. 531, 534; Pub. L. 94–455, title XIX, §§ 1904(b)(1), (2), 1906(a)(24)(A), (B)(i), (b)(13)(A), title XXI, § 2108(a), Oct. 4, 1976, 90 Stat. 1815, 1827, 1834, 1904; Pub. L. 95–227, § 2(b)(4), Feb. 10, 1978, 92 Stat. 12; Pub. L. 95–618, title II, §§ 201(c)(3), 232(b), 233(c)(3), Nov. 9, 1978, 92 Stat. 3184, 3189, 3192; Pub. L. 96–222, title I, § 108(c)(2)(A), (B), (3), (4), Apr. 1, 1980, 94 Stat. 227; Pub. L. 96–596, § 4(c)(1), Dec. 24, 1980, 94 Stat. 3475; Pub. L. 96–598, § 1(a), (b), Dec. 24, 1980, 94 Stat. 3485, 3486; Pub. L. 97–424, title V, §§ 511(g)(2)(A), 512(b)(2)(C), (D), 515(b)(4), Jan. 6, 1983, 96 Stat. 2173, 2177, 2181; Pub. L. 98–369, div. A, title VII, §§ 734(b), (j), 735(c)(13), July 18, 1984, 98 Stat. 978, 980, 984; Pub. L. 99–499, title V, § 521(d)(5), Oct. 17, 1986, 100 Stat. 1780; Pub. L. 100–203, title IX, § 9201(b)(2), title X, § 10502(d)(6)–(8), Dec. 22, 1987, 101 Stat. 1330–330, 1330–444; Pub. L. 100–647, title II, § 2001(d)(1)(B), title VI, § 6102(a), Nov. 10, 1988, 102 Stat. 3594, 3710; Pub. L. 101–508, title XI, § 11212(d)(2), Nov. 5, 1990, 104 Stat. 1388–432; Pub. L. 103–66, title XIII, § 13242(d)(17)–(19), Aug. 10, 1993, 107 Stat. 524; Pub. L. 104–188, title I, § 1702(b)(3), Aug. 20, 1996, 110 Stat. 1868; Pub. L. 105–34, title IX, § 905(a), title X, § 1032(e)(6), title XIV, § 1436(b), Aug. 5, 1997, 111 Stat. 874, 935, 1053; Pub. L. 105–206, title VI, § 6023(23), July 22, 1998, 112 Stat. 826; Pub. L. 108–357, title VIII, §§ 853(d)(2)(G)–(I), 865(a), Oct. 22, 2004, 118 Stat. 1613, 1621; ; Pub. L. 109–59, title XI, § 11163(b), Aug. 10, 2005, 119 Stat. 1973; Pub. L. 109–280, title XII, § 1207(e), Aug. 17, 2006, 120 Stat. 1071; Pub. L. 110–172, § 11(d)(1), Dec. 29, 2007, 121 Stat. 2489; Pub. L. 111–152, title I, § 1405(b)(2), Mar. 30, 2010, 124 Stat. 1065; Pub. L. 116–94, div. N, title I, § 501(b)(2), Dec. 20, 2019, 133 Stat. 3118.)
§ 6417. Elective payment of applicable credits
(a) In general
(b) Applicable credit
The term “applicable credit” means each of the following:
(1) So much of the credit for alternative fuel vehicle refueling property allowed under section 30C which, pursuant to subsection (d)(1) of such section, is treated as a credit listed in section 38(b).
(2) So much of the renewable electricity production credit determined under section 45(a) as is attributable to qualified facilities which are originally placed in service after December 31, 2022.
(3) So much of the credit for carbon oxide sequestration determined under section 45Q(a) as is attributable to carbon capture equipment which is originally placed in service after December 31, 2022.
(4) The zero-emission nuclear power production credit determined under section 45U(a).
(5) So much of the credit for production of clean hydrogen determined under section 45V(a) as is attributable to qualified clean hydrogen production facilities which are originally placed in service after December 31, 2012.
(6) In the case of a tax-exempt entity described in clause (i), (ii), or (iv) of section 168(h)(2)(A), the credit for qualified commercial vehicles determined under section 45W by reason of subsection (d)(3) thereof.
(7) The credit for advanced manufacturing production under section 45X(a).
(8) The clean electricity production credit determined under section 45Y(a).
(9) The clean fuel production credit determined under section 45Z(a).
(10) The energy credit determined under section 48.
(11) The qualifying advanced energy project credit determined under section 48C.
(12) The clean electricity investment credit determined under section 48E.
(c) Application to partnerships and S corporations
(1) In general
In the case of any applicable credit determined with respect to any facility or property held directly by a partnership or S corporation, any election under subsection (a) shall be made by such partnership or S corporation. If such partnership or S corporation makes an election under such subsection (in such manner as the Secretary may provide) with respect to such credit—
(A) the Secretary shall make a payment to such partnership or S corporation equal to the amount of such credit,
(B) subsection (e) shall be applied with respect to such credit before determining any partner’s distributive share, or shareholder’s pro rata share, of such credit,
(C) any amount with respect to which the election in subsection (a) is made shall be treated as tax exempt income for purposes of sections 705 and 1366, and
(D) a partner’s distributive share of such tax exempt income shall be based on such partner’s distributive share of the otherwise applicable credit for each taxable year.
(2) Coordination with application at partner or shareholder level
(3) Treatment of payments to partnerships and S corporations
(d) Special rules
For purposes of this section—
(1) Applicable entity
(A) In general
The term “applicable entity” means—
(i) any organization exempt from the tax imposed by subtitle A,
(ii) any State or political subdivision thereof,
(iii) the Tennessee Valley Authority,
(iv) an Indian tribal government (as defined in section 30D(g)(9)),
(v) any Alaska Native Corporation (as defined in section 3 of the Alaska Native Claims Settlement Act (43 U.S.C. 1602(m)), or
(vi) any corporation operating on a cooperative basis which is engaged in furnishing electric energy to persons in rural areas.
(B) Election with respect to credit for production of clean hydrogen
(C) Election with respect to credit for carbon oxide sequestration
(D) Election with respect to advanced manufacturing production credit
(i) In general
(ii) Limitation(I) In general(II) Exception
(iii) Prohibition on transfer
(E) Other rules
(i) In general
(ii) Limitation
(2) Application
In the case of any applicable entity which makes the election described in subsection (a), any applicable credit shall be determined—
(A) without regard to paragraphs (3) and (4)(A)(i) of section 50(b), and
(B) by treating any property with respect to which such credit is determined as used in a trade or business of the applicable entity.
(3) Elections
(A) In general
(i) Due date
Any election under subsection (a) shall be made not later than—
(I) in the case of any government, or political subdivision, described in paragraph (1) and for which no return is required under section 6011 or 6033(a), such date as is determined appropriate by the Secretary, or(II) in any other case, the due date (including extensions of time) for the return of tax for the taxable year for which the election is made, but in no event earlier than 180 days after the date of the enactment of this section.(ii) Additional rules
(B) Renewable electricity production credit
In the case of the credit described in subsection (b)(2), any election under subsection (a) shall—
(i) apply separately with respect to each qualified facility,
(ii) be made for the taxable year in which such qualified facility is originally placed in service, and
(iii) shall apply to such taxable year and to any subsequent taxable year which is within the period described in subsection (a)(2)(A)(ii) of section 45 with respect to such qualified facility.
(C) Credit for carbon oxide sequestration
(i) In general
In the case of the credit described in subsection (b)(3), any election under subsection (a) shall—
(I) apply separately with respect to the carbon capture equipment originally placed in service by the applicable entity during a taxable year, and(II)(aa) in the case of a taxpayer who makes an election described in paragraph (1)(C), apply to the taxable year in which such equipment is placed in service and the 4 subsequent taxable years with respect to such equipment which end before January 1, 2033, and(bb) in any other case, apply to such taxable year and to any subsequent taxable year which is within the period described in paragraph (3)(A) or (4)(A) of section 45Q(a) with respect to such equipment.(ii) Prohibition on transfer
(iii) Revocation of election
(D) Credit for production of clean hydrogen
(i) In general
In the case of the credit described in subsection (b)(5), any election under subsection (a) shall—
(I) apply separately with respect to each qualified clean hydrogen production facility,(II) be made for the taxable year in which such facility is placed in service (or within the 1-year period subsequent to the date of enactment of this section in the case of facilities placed in service before December 31, 2022), and(III)(aa) in the case of a taxpayer who makes an election described in paragraph (1)(B), apply to such taxable year and the 4 subsequent taxable years with respect to such facility which end before January 1, 2033, and(bb) in any other case, apply to such taxable year and all subsequent taxable years with respect to such facility.(ii) Prohibition on transfer
(iii) Revocation of election
(E) Clean electricity production credit
In the case of the credit described in subsection (b)(8), any election under subsection (a) shall—
(i) apply separately with respect to each qualified facility,
(ii) be made for the taxable year in which such facility is placed in service, and
(iii) shall apply to such taxable year and to any subsequent taxable year which is within the period described in subsection (b)(1)(B) of section 45Y with respect to such facility.
(4) Timing
The payment described in subsection (a) shall be treated as made on—
(A) in the case of any government, or political subdivision, described in paragraph (1) and for which no return is required under section 6011 or 6033(a), the later of the date that a return would be due under section 6033(a) if such government or subdivision were described in that section or the date on which such government or subdivision submits a claim for credit or refund (at such time and in such manner as the Secretary shall provide), and
(B) in any other case, the later of the due date (determined without regard to extensions) of the return of tax for the taxable year or the date on which such return is filed.
(5) Additional information
(6) Excessive payment
(A) In general
In the case of any amount treated as a payment which is made by the applicable entity under subsection (a), or the amount of the payment made pursuant to subsection (c), which the Secretary determines constitutes an excessive payment, the tax imposed on such entity by chapter 1 (regardless of whether such entity would otherwise be subject to tax under such chapter) for the taxable year in which such determination is made shall be increased by an amount equal to the sum of—
(i) the amount of such excessive payment, plus
(ii) an amount equal to 20 percent of such excessive payment.
(B) Reasonable cause
(C) Excessive payment defined
For purposes of this paragraph, the term “excessive payment” means, with respect to a facility or property for which an election is made under this section for any taxable year, an amount equal to the excess of—
(i) the amount treated as a payment which is made by the applicable entity under subsection (a), or the amount of the payment made pursuant to subsection (c), with respect to such facility or property for such taxable year, over
(ii) the amount of the credit which, without application of this section, would be otherwise allowable (as determined pursuant to paragraph (2) and without regard to section 38(c)) under this title with respect to such facility or property for such taxable year.
(e) Denial of double benefit
(f) Mirror code possessions
(g) Basis reduction and recapture
(h) Regulations
(Added Pub. L. 117–169, title I, § 13801(a), Aug. 16, 2022, 136 Stat. 2003.)
§ 6418. Transfer of certain credits
(a) In general
(b) Treatment of payments made in connection with transferWith respect to any amount paid by a transferee taxpayer to an eligible taxpayer as consideration for a transfer described in subsection (a), such consideration—
(1) shall be required to be paid in cash,
(2) shall not be includible in gross income of the eligible taxpayer, and
(3) with respect to the transferee taxpayer, shall not be deductible under this title.
(c) Application to partnerships and S corporations
(1) In generalIn the case of any eligible credit determined with respect to any facility or property held directly by a partnership or S corporation, if such partnership or S corporation makes an election under subsection (a) (in such manner as the Secretary may provide) with respect to such credit—
(A) any amount received as consideration for a transfer described in such subsection shall be treated as tax exempt income for purposes of sections 705 and 1366, and
(B) a partner’s distributive share of such tax exempt income shall be based on such partner’s distributive share of the otherwise eligible credit for each taxable year.
(2) Coordination with application at partner or shareholder level
(d) Taxable year in which credit taken into account
(e) Limitations on election
(1) Time for election
(2) No additional transfers
(f) DefinitionsFor purposes of this section—
(1) Eligible credit
(A) In generalThe term “eligible credit” means each of the following:
(i) So much of the credit for alternative fuel vehicle refueling property allowed under section 30C which, pursuant to subsection (d)(1) of such section, is treated as a credit listed in section 38(b).
(ii) The renewable electricity production credit determined under section 45(a).
(iii) The credit for carbon oxide sequestration determined under section 45Q(a).
(iv) The zero-emission nuclear power production credit determined under section 45U(a).
(v) The clean hydrogen production credit determined under section 45V(a).
(vi) The advanced manufacturing production credit determined under section 45X(a).
(vii) The clean electricity production credit determined under section 45Y(a).
(viii) The clean fuel production credit determined under section 45Z(a).
(ix) The energy credit determined under section 48.
(x) The qualifying advanced energy project credit determined under section 48C.
(xi) The clean electricity investment credit determined under section 48E.
(B) Election for certain creditsIn the case of any eligible credit described in clause (ii), (iii), (v), or (vii) of subparagraph (A), an election under subsection (a) shall be made—
(i) separately with respect to each facility for which such credit is determined, and
(ii) for each taxable year during the 10-year period beginning on the date such facility was originally placed in service (or, in the case of the credit described in clause (iii), for each year during the 12-year period beginning on the date the carbon capture equipment was originally placed in service at such facility).
(C) Exception for business credit carryforwards or carrybacks
(2) Eligible taxpayer
(g) Special rulesFor purposes of this section—
(1) Additional information
(2) Excessive credit transfer
(A) In generalIn the case of any portion of an eligible credit which is transferred to a transferee taxpayer pursuant to subsection (a) which the Secretary determines constitutes an excessive credit transfer, the tax imposed on the transferee taxpayer by chapter 1 (regardless of whether such entity would otherwise be subject to tax under such chapter) for the taxable year in which such determination is made shall be increased by an amount equal to the sum of—
(i) the amount of such excessive credit transfer, plus
(ii) an amount equal to 20 percent of such excessive credit transfer.
(B) Reasonable cause
(C) Excessive credit transfer definedFor purposes of this paragraph, the term “excessive credit transfer” means, with respect to a facility or property for which an election is made under subsection (a) for any taxable year, an amount equal to the excess of—
(i) the amount of the eligible credit claimed by the transferee taxpayer with respect to such facility or property for such taxable year, over
(ii) the amount of such credit which, without application of this section, would be otherwise allowable under this title with respect to such facility or property for such taxable year.
(3) Basis reduction; notification of recapture
(A) subsection (c) of section 50 shall apply to the applicable investment credit property (as defined in subsection (a)(5) of such section) as if such eligible credit was allowed to the eligible taxpayer, and
(B) if, during any taxable year, the applicable investment credit property (as defined in subsection (a)(5) of section 50) is disposed of, or otherwise ceases to be investment credit property with respect to the eligible taxpayer, before the close of the recapture period (as described in subsection (a)(1) of such section)—
(i) such eligible taxpayer shall provide notice of such occurrence to the transferee taxpayer (in such form and manner as the Secretary shall prescribe), and
(ii) the transferee taxpayer shall provide notice of the recapture amount (as defined in subsection (c)(2) of such section), if any, to the eligible taxpayer (in such form and manner as the Secretary shall prescribe).
(4) Prohibition on election or transfer with respect to progress expenditures
(h) Regulations
(Added Pub. L. 117–169, title I, § 13801(b), Aug. 16, 2022, 136 Stat. 2009.)
§ 6419. Excise tax on wagering
(a) Credit or refund generally
(b) Credit or refund on wagers laid-off by taxpayer
(Aug. 16, 1954, ch. 736, 68A Stat. 801; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)
§ 6420. Gasoline used on farms
(a) GasolineExcept as provided in subsection (g), if gasoline is used on a farm for farming purposes, the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline the amount determined by multiplying—
(1) the number of gallons so used, by
(2) the rate of tax on gasoline under section 4081 which applied on the date he purchased such gasoline.
(b) Time for filing claims; period covered
(c) Meaning of termsFor purposes of this section—
(1) Use on a farm for farming purposes
(2) Farm
(3) Farming purposesGasoline shall be treated as used for farming purposes only if used—
(A) by the owner, tenant, or operator of a farm, in connection with cultivating the soil, or in connection with raising or harvesting any agricultural or horticultural commodity, including the raising, shearing, feeding, caring for, training, and management of livestock, bees, poultry, and fur-bearing animals and wildlife, on a farm of which he is the owner, tenant, or operator;
(B) by the owner, tenant, or operator of a farm, in handling, drying, packing, grading, or storing any agricultural or horticultural commodity in its unmanufactured state; but only if such owner, tenant or operator produced more than one-half of the commodity which he so treated during the period with respect to which claim is filed;
(C) by the owner, tenant, or operator of a farm, in connection with—
(i) the planting, cultivating, caring for, or cutting of trees, or
(ii) the preparation (other than milling) of trees for market,
incidental to farming operations; or
(D) by the owner, tenant, or operator of a farm, in connection with the operation, management, conservation, improvement, or maintenance of such farm and its tools and equipment.
(4) Certain farming use other than by owner, etc.In applying paragraph (3)(A) to a use on a farm for any purpose described in paragraph (3)(A) by any person other than the owner, tenant, or operator of such farm—
(A) the owner, tenant, or operator of such farm shall be treated as the user and ultimate purchaser of the gasoline, except that
(B) if the person so using the gasoline is an aerial or other applicator of fertilizers or other substances and is the ultimate purchaser of the gasoline, then subparagraph (A) of this paragraph shall not apply and the aerial or other applicator shall be treated as having used such gasoline on a farm for farming purposes.
In the case of an aerial applicator, gasoline shall be treated as used on a farm for farming purposes if the gasoline is used for the direct flight between the airfield and one or more farms.
(5) Gasoline
(d) Exempt sales; other payments or refunds available
(e) Applicable laws
(1) In general
(2) Examination of books and witnesses
(3) Fractional parts of a dollar
(f) Regulations
(g) Income tax credit in lieu of payment
(1) Persons not subject to income taxPayment shall be made under subsection (a), only to—
(A) the United States or an agency or instrumentality thereof, a State, a political subdivision of a State, or an agency or instrumentality of one or more States or political subdivisions, or
(B) an organization exempt from tax under section 501(a) (other than an organization required to make a return of the tax imposed under subtitle A for its taxable year).
(2) Allowance of credit against income tax
[(h) Repealed. Pub. L. 103–66, title XIII, § 13241(f)(5), Aug. 10, 1993, 107 Stat. 512]
(i) Cross references
(1) For exemption from tax in case of special fuels used on a farm for farming purposes, see section 4041(f).
(2) For civil penalty for excessive claim under this section, see section 6675.
(3) For fraud penalties, etc., see chapter 75 (section 7201 and following, relating to crimes, other offenses, and forfeitures).
(4) For treatment of an Indian tribal government as a State (and a subdivision of an Indian tribal government as a political subdivision of a State), see section 7871.
(Added Apr. 2, 1956, ch. 160, § 1, 70 Stat. 87; amended Pub. L. 85–859, title I, § 163(d)(2), Sept. 2, 1958, 72 Stat. 1311; Pub. L. 89–44, title VIII, § 809(a), June 21, 1965, 79 Stat. 165; Pub. L. 91–258, title II, §§ 205(c)(7), 207(b), May 21, 1970, 84 Stat. 242, 248; Pub. L. 94–455, title XIX, §§ 1906(a)(26), (b)(6)(A), (13)(A), Oct. 4, 1976, 90 Stat. 1827, 1833, 1834; Pub. L. 95–458, § 3(a), (c), Oct. 14, 1978, 92 Stat. 1257; Pub. L. 97–424, title V, §§ 511(f), 516(b)(4), Jan. 6, 1983, 96 Stat. 2172, 2183; Pub. L. 97–473, title II, § 202(b)(12), Jan. 14, 1983, 96 Stat. 2610; Pub. L. 98–369, div. A, title IV, § 474(r)(38), July 18, 1984, 98 Stat. 846; Pub. L. 99–499, title V, § 521(c)(1), Oct. 17, 1986, 100 Stat. 1778; Pub. L. 100–17, title V, § 502(b)(6), Apr. 2, 1987, 101 Stat. 257; Pub. L. 101–239, title VII, § 7841(d)(20), Dec. 19, 1989, 103 Stat. 2429; Pub. L. 101–508, title XI, § 11211(d)(5), Nov. 5, 1990, 104 Stat. 1388–427; Pub. L. 102–240, title VIII, § 8002(b)(5), Dec. 18, 1991, 105 Stat. 2203; Pub. L. 103–66, title XIII, §§ 13241(f)(5), 13242(d)(20), Aug. 10, 1993, 107 Stat. 512, 524; Pub. L. 109–59, title XI, § 11121(a), (b), Aug. 10, 2005, 119 Stat. 1951; Pub. L. 115–141, div. U, title IV, § 401(a)(289), Mar. 23, 2018, 132 Stat. 1198.)
§ 6421. Gasoline used for certain nonhighway purposes, used by local transit systems, or sold for certain exempt purposes
(a) Nonhighway uses
(b) Intercity, local, or school buses
(1) Allowance
Except as provided in paragraph (2) and subsection (i), if gasoline is used in an automobile bus while engaged in—
(A) furnishing (for compensation) passenger land transportation available to the general public, or
(B) the transportation of students and employees of schools (as defined in the last sentence of section 4221(d)(7)(C)),
the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline an amount equal to the product of the number of gallons of gasoline so used multiplied by the rate at which tax was imposed on such gasoline by section 4081.
(2) Limitation in case of nonscheduled intercity or local buses
(c) Exempt purposes
(d) Time for filing claims; period covered
(1) In general
(2) Exception
(3) Application to sales under subsection (c)
(e) Definitions
For purposes of this section—
(1) Gasoline
(2) Off-highway business use
(A) In general
The term “off-highway business use” means any use by a person in a trade or business of such person or in an activity of such person described in section 212 (relating to production of income) otherwise than as a fuel in a highway vehicle—
(i) which (at the time of such use), is registered, or is required to be registered, for highway use under the laws of any State or foreign country, or
(ii) which, in the case of a highway vehicle owned by the United States, is used on the highway.
(B) Uses in boats
(i) In general
(ii) Fisheries and whaling
(C) Uses in mobile machinery
(i) In general
(ii) Requirements for mobile machinery
The requirements described in this clause are—
(I) the design-based test, and(II) the use-based test.(iii) Design-based test
For purposes of clause (ii)(I), the design-based test is met if the vehicle consists of a chassis—
(I) to which there has been permanently mounted (by welding, bolting, riveting, or other means) machinery or equipment to perform a construction, manufacturing, processing, farming, mining, drilling, timbering, or similar operation if the operation of the machinery or equipment is unrelated to transportation on or off the public highways,(II) which has been specially designed to serve only as a mobile carriage and mount (and a power source, where applicable) for the particular machinery or equipment involved, whether or not such machinery or equipment is in operation, and(III) which, by reason of such special design, could not, without substantial structural modification, be used as a component of a vehicle designed to perform a function of transporting any load other than that particular machinery or equipment or similar machinery or equipment requiring such a specially designed chassis.(iv) Use-based test
(f) Exempt sales; other payments or refunds available
(1) Gasoline used on farms
(2) Gasoline used in aviation
This section shall not apply in respect of gasoline which is used as a fuel in an aircraft—
(A) in aviation which is not commercial aviation (as defined in section 4083(b)), or
(B) in commercial aviation (as so defined) with respect to the tax imposed by section 4081 at the Leaking Underground Storage Tank Trust Fund financing rate and, in the case of fuel purchased after September 30, 1995, at so much of the rate specified in section 4081(a)(2)(A) as does not exceed 4.3 cents per gallon.
(3) Gasoline used in trains
In the case of gasoline used as a fuel in a train, this section shall not apply with respect to—
(A) the Leaking Underground Storage Tank Trust Fund financing rate under section 4081, and
(B) so much of the rate specified in section 4081(a)(2)(A) as does not exceed the rate applicable under section 4041(a)(1)(C)(ii).
(g) Applicable laws
(1) In general
(2) Examination of books and witnesses
(h) Regulations
(i) Income tax credit in lieu of payment
(1) Persons not subject to income tax
Payment shall be made under subsections (a) and (b) only to—
(A) the United States or any agency or instrumentality thereof, a State, a political subdivision of a State, or any agency or instrumentality of one or more States or political subdivisions, or
(B) an organization exempt from tax under section 501(a) (other than an organization required to make a return of the tax imposed under subtitle A for its taxable year).
(2) Exception
(3) Allowance of credit against income tax
(j) Cross references
(1) For civil penalty for excessive claims under this section, see section 6675.
(2) For fraud penalties, etc., see chapter 75 (section 7201 and following, relating to crimes, other offenses, and forfeitures).
(3) For treatment of an Indian tribal government as a State (and a subdivision of an Indian tribal government as a political subdivision of a State), see section 7871.
(Added June 29, 1956, ch. 462, title II, § 208(c), 70 Stat. 394; amended July 25, 1956, ch. 725, § 2, 70 Stat. 644; Pub. L. 85–859, title I, §§ 163(d)(3), 164(a), Sept. 2, 1958, 72 Stat. 1312; Pub. L. 86–342, title II, § 201(d)(2), Sept. 21, 1959, 73 Stat. 615; Pub. L. 87–61, title II, § 201(e), June 29, 1961, 75 Stat. 124; Pub. L. 87–508, § 5(c)(2), June 28, 1962,76 Stat. 118; Pub. L. 89–44, title VIII, § 809(b), June 21, 1965, 79 Stat. 166; Pub. L. 91–258, title II, §§ 205(b)(1), (c)(8), 207(b), May 21, 1970, 84 Stat. 241, 242, 248; Pub. L. 91–605, title III, § 303(a)(11), Dec. 31, 1970, 84 Stat. 1744; Pub. L. 94–280, title III, § 303(a)(11), May 5, 1976, 90 Stat. 456; Pub. L. 94–455, title XIX, § 1906(a)(27)(A)(i), (B)–(D), (b)(13)(A), Oct. 4, 1976, 90 Stat. 1827, 1828, 1834; Pub. L. 95–599, title V, § 502(a)(10), Nov. 6, 1978, 92 Stat. 2756; Pub. L. 95–618, title II, §§ 222(a)(1), 233(a)(1), (3)(A), Nov. 9, 1978, 92 Stat. 3186, 3190; Pub. L. 96–222, title I, § 108(c)(1), Apr. 1, 1980, 94 Stat. 226; Pub. L. 97–424, title V, §§ 511(c)(1), (3), 515(b)(7), 516(a)(6), Jan. 6, 1983, 96 Stat. 2170, 2171, 2182, 2183; Pub. L. 97–473, title II, § 202(b)(12), Jan. 14, 1983, 96 Stat. 2610; Pub. L. 98–369, div. A, title IV, § 474(r)(38), July 18, 1984, 98 Stat. 846; Pub. L. 99–499, title V, § 521(c)(2), Oct. 17, 1986, 100 Stat. 1778; Pub. L. 99–514, title XVII, § 1703(c)(1), (2)(A), (B), (D), Oct. 22, 1986, 100 Stat. 2776, 2777; Pub. L. 100–17, title V, § 502(b)(7), Apr. 2, 1987, 101 Stat. 257; Pub. L. 100–203, title X, § 10502(d)(9), (10), Dec. 22, 1987, 101 Stat. 1330–444; Pub. L. 100–647, title I, § 1017(c)(6)–(8), (15), title II, § 2001(d)(3)(E), (F), Nov. 10, 1988, 102 Stat. 3576, 3577, 3595; Pub. L. 101–239, title VII, § 7841(d)(20), Dec. 19, 1989, 103 Stat. 2429; Pub. L. 101–508, title XI, § 11211(d)(6), Nov. 5, 1990, 104 Stat. 1388–427; Pub. L. 102–240, title VIII, § 8002(b)(6), Dec. 18, 1991, 105 Stat. 2203; Pub. L. 103–66, title XIII, §§ 13163(b), 13241(f)(6), (7), 13242(d)(20), (22)–(24), Aug. 10, 1993, 107 Stat. 454, 512, 524; Pub. L. 104–188, title I, § 1609(g)(4)(C), Aug. 20, 1996, 110 Stat. 1843; Pub. L. 105–34, title IX, § 902(a), Aug. 5, 1997, 111 Stat. 873; Pub. L. 105–178, title IX, §§ 9006(b)(1), 9009(b)(3), June 9, 1998, 112 Stat. 506, 507; Pub. L. 105–206, title VI, §§ 6010(g)(3), 6023(24)(A), (C), July 22, 1998, 112 Stat. 814, 826; Pub. L. 108–357, title II, § 241(a)(2)(C), title VIII, § 851(d)(1), Oct. 22, 2004, 118 Stat. 1438, 1608; Pub. L. 109–59, title XI, § 11151(b)(3), Aug. 10, 2005, 119 Stat. 1968; Pub. L. 109–280, title XII, § 1207(b)(3)(B), Aug. 17, 2006, 120 Stat. 1070; Pub. L. 115–141, div. U, title IV, § 401(a)(290), (291), Mar. 23, 2018, 132 Stat. 1198.)
§ 6422. Cross references
(1) For limitations on credits and refunds, see subchapter B of chapter 66.
(2) For overpayment in case of adjustments to accrued foreign taxes, see section 905(c).
(3) For credit or refund in case of deficiency dividends paid by a personal holding company, see section 547.
(4) For refund, credit, or abatement of amounts disallowed by courts upon review of Tax Court decision, see section 7486.
(5) For refund or redemption of stamps, see chapter 69.
(6) For abatement, credit, or refund in case of jeopardy assessments, see chapter 70.
(7) For restrictions on transfers and assignments of claims against the United States, see section 3727 of title 31, United States Code.
(8) For set-off of claims against amounts due the United States, see section 3728 of title 31, United States Code.
(9) For special provisions relating to alcohol and tobacco taxes, see subtitle E.
(10) For credit or refund in case of deficiency dividends paid by a regulated investment company or real estate investment trust, see section 860.
(Aug. 16, 1954, ch. 736, 68A Stat. 802, § 6420; renumbered § 6421, Apr. 2, 1956, ch. 160, § 1, 70 Stat. 87; renumbered § 6422, June 29, 1956, ch. 462, title II, § 208(c), 70 Stat. 394; amended Pub. L. 85–859, title II, § 204(4), Sept. 2, 1958, 72 Stat. 1429; Pub. L. 88–36, title II, § 201(c), June 4, 1963, 77 Stat. 54; Pub. L. 94–455, title XVI, § 1601(f)(1), title XIX, §§ 1901(b)(36)(B), 1906(a)(28), Oct. 4, 1976, 90 Stat. 1746, 1802, 1828; Pub. L. 95–600, title III, § 362(d)(4), Nov. 6, 1978, 92 Stat. 2852; Pub. L. 97–248, title IV, § 402(c)(4), Sept. 3, 1982, 96 Stat. 667; Pub. L. 97–258, § 3(f)(8), (9), Sept. 13, 1982, 96 Stat. 1064; Pub. L. 101–508, title XI, § 11801(c)(17)(A), Nov. 5, 1990, 104 Stat. 1388–527; Pub. L. 105–34, title XI, § 1131(c)(3), Aug. 5, 1997, 111 Stat. 980; Pub. L. 114–74, title XI, § 1101(f)(2), Nov. 2, 2015, 129 Stat. 637; Pub. L. 115–141, div. U, title IV, § 401(a)(292), Mar. 23, 2018, 132 Stat. 1198.)
§ 6423. Conditions to allowance in the case of alcohol and tobacco taxes
(a) Conditions
No credit or refund shall be allowed or made, in pursuance of a court decision or otherwise, of any amount paid or collected as an alcohol or tobacco tax unless the claimant establishes (under regulations prescribed by the Secretary)—
(1) that he bore the ultimate burden of the amount claimed; or
(2) that he has unconditionally repaid the amount claimed to the person who bore the ultimate burden of such amount; or
(3) that (A) the owner of the commodity furnished him the amount claimed for payment of the tax, (B) he has filed with the Secretary the written consent of such owner to the allowance to the claimant of the credit or refund, and (C) such owner satisfies the requirements of paragraph (1) or (2).
(b) Filing of claims
(c) Application of section
This section shall apply only if the credit or refund is claimed on the grounds that an amount of alcohol or tobacco tax was assessed or collected erroneously, illegally, without authority, or in any manner wrongfully, or on the grounds that such amount was excessive. This section shall not apply to—
(1) any claim for drawback, and
(2) any claim made in accordance with any law expressly providing for credit or refund where a commodity is withdrawn from the market, returned to bond, or lost or destroyed.
(d) Meaning of terms
For purposes of this section—
(1) Alcohol or tobacco tax
The term “alcohol or tobacco tax” means—
(A) any tax imposed by chapter 51 (other than part II of subchapter A, relating to occupational taxes) or by chapter 52 or by any corresponding provision of prior internal revenue laws, and
(B) in the case of any commodity of a kind subject to a tax described in subparagraph (A), any tax equal to any such tax, any additional tax, or any floor stocks tax.
(2) Tax
(3) Ultimate burden
The claimant shall be treated as having borne the ultimate burden of an amount of an alcohol or tobacco tax for purposes of subsection (a)(1), and the owner referred to in subsection (a)(3) shall be treated as having borne such burden for purposes of such subsection, only if—
(A) he has not, directly or indirectly, been relieved of such burden or shifted such burden to any other person,
(B) no understanding or agreement exists for any such relief or shifting, and
(C) if he has neither sold nor contracted to sell the commodities involved in such claim, he agrees that there will be no such relief or shifting, and furnishes such bond as the Secretary may require to insure faithful compliance with his agreement.
(Added Pub. L. 85–323, § 1, Feb. 11, 1958, 72 Stat. 9; amended Pub. L. 94–455, title XIX, § 1906(a)(29), (b)(13)(A), Oct. 4, 1976, 90 Stat. 1828, 1834.)
[§ 6424. Repealed. Pub. L. 97–424, title V, § 515(b)(5), Jan. 6, 1983, 96 Stat. 2181]
§ 6425. Adjustment of overpayment of estimated income tax by corporation
(a) Application of adjustment
(1) Time for filing
(2) Form of application, etc.An application under this subsection shall be verified in the manner prescribed by section 6065 in the case of a return of the taxpayer, and shall be filed in the manner and form required by regulations prescribed by the Secretary. The application shall set forth—
(A) the estimated income tax paid by the corporation during the taxable year,
(B) the amount which, at the time of filing the application, the corporation estimates as its income tax liability for the taxable year,
(C) the amount of the adjustment, and
(D) such other information for purposes of carrying out the provisions of this section as may be required by such regulations.
(b) Allowance of adjustment
(1) Limited examination of application
(2) Adjustment credited or refunded
(3) Limitation
(4) Effect of adjustment
(c) DefinitionsFor purposes of this section and section 6655(h) (relating to excessive adjustment)—
(1) The term “income tax liability” means the excess of—
(A) the sum of—
(i) the tax imposed by section 11 or subchapter L of chapter 1, whichever is applicable, plus
(ii) the tax imposed by section 55, plus
(iii) the tax imposed by section 59A, over
(B) the credits against tax provided by part IV of subchapter A of chapter 1.
(2) The amount of an adjustment under this section is equal to the excess of—
(A) the estimated income tax paid by the corporation during the taxable year, over
(B) the amount which, at the time of filing the application, the corporation estimates as its income tax liability for the taxable year.
(d) Consolidated returns
(Added
§ 6426. Credit for alcohol fuel, biodiesel, and alternative fuel mixtures
(a) Allowance of creditsThere shall be allowed as a credit—
(1) against the tax imposed by section 4081 an amount equal to the sum of the credits described in subsections (b), (c), (e), and (k), and
(2) against the tax imposed by section 4041 an amount equal to the sum of the credits described in subsection (d).
No credit shall be allowed in the case of the credits described in subsections (d) and (e) unless the taxpayer is registered under section 4101.
(b) Alcohol fuel mixture credit
(1) In general
(2) Applicable amountFor purposes of this subsection—
(A) In generalExcept as provided in subparagraphs (B) and (C), the applicable amount is—
(i) in the case of calendar years beginning before 2009, 51 cents, and
(ii) in the case of calendar years beginning after 2008, 45 cents.
(B) Mixtures not containing ethanol
(C) Reduction delayed until annual production or importation of 7,500,000,000 gallons
(3) Alcohol fuel mixtureFor purposes of this subsection, the term “alcohol fuel mixture” means a mixture of alcohol and a taxable fuel which—
(A) is sold by the taxpayer producing such mixture to any person for use as a fuel, or
(B) is used as a fuel by the taxpayer producing such mixture.
For purposes of subparagraph (A), a mixture produced by any person at a refinery prior to a taxable event which includes ethyl tertiary butyl ether or other ethers produced from alcohol shall be treated as sold at the time of its removal from the refinery (and only at such time) to another person for use as a fuel.
(4) Other definitionsFor purposes of this subsection—
(A) AlcoholThe term “alcohol” includes methanol and ethanol but does not include—
(i) alcohol produced from petroleum, natural gas, or coal (including peat), or
(ii) alcohol with a proof of less than 190 (determined without regard to any added denaturants).
Such term also includes an alcohol gallon equivalent of ethyl tertiary butyl ether or other ethers produced from such alcohol.
(B) Taxable fuel
(5) Volume of alcohol
(6) Termination
(c) Biodiesel mixture credit
(1) In general
(2) Applicable amount
(3) Biodiesel mixtureFor purposes of this section, the term “biodiesel mixture” means a mixture of biodiesel and diesel fuel (as defined in section 4083(a)(3)), determined without regard to any use of kerosene, which—
(A) is sold by the taxpayer producing such mixture to any person for use as a fuel, or
(B) is used as a fuel by the taxpayer producing such mixture.
(4) Certification for biodiesel
(5) Other definitions
(6) Termination
(d) Alternative fuel credit
(1) In general
(2) Alternative fuelFor purposes of this section, the term “alternative fuel” means—
(A) liquefied petroleum gas,
(B) P Series Fuels (as defined by the Secretary of Energy under section 13211(2) of title 42, United States Code),
(C) compressed or liquefied natural gas,
(D) any liquid fuel which meets the requirements of paragraph (4) and which is derived from coal (including peat) through the Fischer-Tropsch process,
(E) compressed or liquefied gas derived from biomass (as defined in section 45K(c)(3)), and
(F) liquid fuel derived from biomass (as defined in section 45K(c)(3)).
Such term does not include ethanol, methanol, biodiesel, or any fuel (including lignin, wood residues, or spent pulping liquors) derived from the production of paper or pulp.
(3) Gasoline gallon equivalent
(4) Carbon capture requirement
(A) In general
(B) Applicable percentageFor purposes of subparagraph (A), the applicable percentage is—
(i) 50 percent in the case of fuel produced after September 30, 2009, and on or before December 30, 2009, and
(ii) 75 percent in the case of fuel produced after December 30, 2009.
(5) Termination
(e) Alternative fuel mixture credit
(1) In general
(2) Alternative fuel mixtureFor purposes of this section, the term “alternative fuel mixture” means a mixture of alternative fuel (other than a fuel described in subparagraph (A), (C), or (E) of subsection (d)(2)) and taxable fuel (as defined in subparagraph (A), (B), or (C) of section 4083(a)(1)) which—
(A) is sold by the taxpayer producing such mixture to any person for use as fuel, or
(B) is used as a fuel by the taxpayer producing such mixture.
(3) Termination
(f) Mixture not used as a fuel, etc.
(1) Imposition of taxIf—
(A) any credit was determined under this section with respect to alcohol or biodiesel used in the production of any alcohol fuel mixture or biodiesel mixture, respectively, and
(B) any person—
(i) separates the alcohol or biodiesel from the mixture, or
(ii) without separation, uses the mixture other than as a fuel,
then there is hereby imposed on such person a tax equal to the product of the applicable amount and the number of gallons of such alcohol or biodiesel.
(2) Applicable laws
(g) Coordination with exemption from excise tax
(h) Denial of double benefit
(i) Limitation to fuels with connection to the United States
(1) Alcohol
(2) Biodiesel and alternative fuels
For purposes of this subsection, the term “United States” includes any possession of the United States.
(j) Energy equivalency determinations for liquefied petroleum gas and liquefied natural gasFor purposes of determining any credit under this section, any reference to the number of gallons of an alternative fuel or the gasoline gallon equivalent of such a fuel shall be treated as a reference to—
(1) in the case of liquefied petroleum gas, the energy equivalent of a gallon of gasoline, as defined in section 4041(a)(2)(C), and
(2) in the case of liquefied natural gas, the energy equivalent of a gallon of diesel, as defined in section 4041(a)(2)(D).
(k) Sustainable aviation fuel credit
(1) In generalFor purposes of this section, the sustainable aviation fuel credit for the taxable year is, with respect to any sale or use of a qualified mixture, an amount equal to the product of—
(A) the number of gallons of sustainable aviation fuel in such mixture, multiplied by
(B) the sum of—
(i) $1.25, plus
(ii) the applicable supplementary amount with respect to such sustainable aviation fuel.
(2) Definitions
(3) Registration requirement
(Added Pub. L. 108–357, title III, § 301(a), Oct. 22, 2004, 118 Stat. 1459; amended Pub. L. 109–58, title XIII, § 1344(a), Aug. 8, 2005, 119 Stat. 1052; Pub. L. 109–59, title XI, §§ 11113(b)(1)–(3)(A), 11151(e)(2), Aug. 10, 2005, 119 Stat. 1947, 1948, 1969; Pub. L. 110–172, § 5(a)(2), (3), Dec. 29, 2007, 121 Stat. 2479; Pub. L. 110–234, title XV, §§ 15331(b), 15332(b), May 22, 2008, 122 Stat. 1516; Pub. L. 110–246, § 4(a), title XV, §§ 15331(b), 15332(b), June 18, 2008, 122 Stat. 1664, 2278; Pub. L. 110–343, div. B, title II, §§ 202(a), (b)(2), 203(c)(1), 204(a)(1), (2), (b), (c), Oct. 3, 2008, 122 Stat. 3832, 3834; Pub. L. 111–312, title VII, §§ 701(b)(1), 704(a), (b), 708(b)(1), Dec. 17, 2010, 124 Stat. 3310–3312; Pub. L. 112–240, title IV, §§ 405(b)(1), 412(a), Jan. 2, 2013, 126 Stat. 2340, 2343; Pub. L. 113–295, div. A, title I, § 160(a)(1), (b)(1), (c)(1), Dec. 19, 2014, 128 Stat. 4022; Pub. L. 114–113, div. Q, title I, §§ 185(b)(1), 192(a)(1), title III, § 342(a), Dec. 18, 2015, 129 Stat. 3073, 3075, 3114; Pub. L. 115–123, div. D, title I, §§ 40407(b)(1), 40415(a)(1), Feb. 9, 2018, 132 Stat. 149, 152; Pub. L. 115–141, div. U, title IV, § 401(a)(294), Mar. 23, 2018, 132 Stat. 1198; Pub. L. 116–94, div. Q, title I, §§ 121(b)(1)(A), 133(a)(1), (b)(1), Dec. 20, 2019, 133 Stat. 3230, 3233; Pub. L. 116–260, div. EE, title I, § 147(a), Dec. 27, 2020, 134 Stat. 3055; Pub. L. 117–169, title I, §§ 13201(b)(1), (c), (d), 13203(d)(1), (2)(A), 13204(d)(1), (2), Aug. 16, 2022, 136 Stat. 1931, 1932, 1934, 1935, 1941.)
§ 6427. Fuels not used for taxable purposes
(a) Nontaxable usesExcept as provided in subsection (k), if tax has been imposed under paragraph (2) or (3) of section 4041(a) or section 4041(c) on the sale of any fuel and the purchaser uses such fuel other than for the use for which sold, or resells such fuel, the Secretary shall pay (without interest) to him an amount equal to—
(1) the amount of tax imposed on the sale of the fuel to him, reduced by
(2) if he uses the fuel, the amount of tax which would have been imposed under section 4041 on such use if no tax under section 4041 had been imposed on the sale of the fuel.
(b) Intercity, local, or school buses
(1) AllowanceExcept as otherwise provided in this subsection and subsection (k), if any fuel other than gasoline (as defined in section 4083(a)) on the sale of which tax was imposed by section 4041(a) or 4081 is used in an automobile bus while engaged in—
(A) furnishing (for compensation) passenger land transportation available to the general public, or
(B) the transportation of students and employees of schools (as defined in the last sentence of section 4221(d)(7)(C)),
the Secretary shall pay (without interest) to the ultimate purchaser of such fuel an amount equal to the product of the number of gallons of such fuel so used multiplied by the rate at which tax was imposed on such fuel by section 4041(a) or 4081, as the case may be.
(2) Reduction in refund in certain cases
(A) In general
(B) Exception for school bus transportation
(C) Exception for certain intracity transportationSubparagraph (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.
(D) Qualified local busFor 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.
(3) Limitation in case of nonscheduled intercity or local buses
(4) Refunds for use of diesel fuel in certain intercity busesWith respect to any fuel to which paragraph (2)(A) applies, if the ultimate purchaser of such fuel waives (at such time and in such form and manner as the Secretary shall prescribe) the right to payment under paragraph (1) and assigns such right to the ultimate vendor, then the Secretary shall pay the amount which would be paid under paragraph (1) to such ultimate vendor, but only if such ultimate vendor—
(A) is registered under section 4101, and
(B) meets the requirements of subparagraph (A), (B), or (D) of section 6416(a)(1).
(c) Use for farming purposes
(d) Use by certain aircraft museums or in certain other aircraft usesExcept as provided in subsection (k), if—
(1) any gasoline on which tax was imposed by section 4081, or
(2) any fuel on the sale of which tax was imposed under section 4041,
is used by an aircraft museum (as defined in section 4041(h)(2)) in an aircraft or vehicle owned by such museum and used exclusively for purposes set forth in section 4041(h)(2)(C), or is used in a helicopter or a fixed-wing aircraft for a purpose described in section 4041(l), the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline or fuel an amount equal to the aggregate amount of the tax imposed on such gasoline or fuel.
(e) Alcohol, biodiesel, alternative fuel, or sustainable aviation fuelExcept as provided in subsection (k)—
(1) Used to produce a mixture
(2) Alternative fuel
(3) Coordination with other repayment provisions
(4) Registration requirement for alternative fuels
(5) Limitation to fuels with connection to the United States
(6) TerminationThis subsection shall not apply with respect to—
(A) any alcohol fuel mixture (as defined in section 6426(b)(3)) sold or used after December 31, 2011,
(B) any biodiesel mixture (as defined in section 6426(c)(3)) sold or used after December 31, 2024,
(C) any alternative fuel (as defined in section 6426(d)(2)) sold or used after December 31, 2024,
(D) any alternative fuel mixture (as defined in section 6426(e)(2)) sold or used after December 31, 2011, and
(E) any qualified mixture of sustainable aviation fuel (as defined in section 6426(k)(3)) 1
1 See References in Text note below.
sold or used after December 31, 2024.[(f) Repealed. Pub. L. 109–59, title XI, § 11151(a)(1), Aug. 10, 2005, 119 Stat. 1968]
[(g) Repealed. Pub. L. 104–188, title I, § 1606(a), Aug. 20, 1996, 110 Stat. 1839]
(h) Blend stocks not used for producing taxable fuel
(1) Gasoline blend stocks or additives not used for producing gasoline
(2) Diesel fuel blend stocks or additives not used for producing diesel
(i) Time for filing claims; period covered
(1) General rule
(2) Exceptions
(A) In generalIf, at the close of any quarter of the taxable year of any person, at least $750 is payable in the aggregate under subsections (a), (b), (d), (h), (l), (m), and (o) of this section and section 6421 to such person with respect to fuel used during—
(i) such quarter, or
(ii) any prior quarter (for which no other claim has been filed) during such taxable year,
a claim may be filed under this section with respect to such fuel.
(B) Time for filing claim
(C) Nonapplication of paragraph
(3) Special rule for mixture credits and the alternative fuel credit
(A) In generalA claim may be filed under subsection (e)(1) by any person with respect to a mixture described in section 6426 or under subsection (e)(2) by any person with respect to an alternative fuel (as defined in section 6426(d)(2)) for any period—
(i) for which $200 or more is payable under such subsection (e)(1) or (e)(2), and
(ii) which is not less than 1 week.
In the case of an electronic claim, this subparagraph shall be applied without regard to clause (i).
(B) Payment of claim
(C) Time for filing claim
(4) Special rule for vendor refunds
(A) In generalA claim may be filed under paragraph (4)(C) or (5) of subsection (l) by any person with respect to fuel sold by such person for any period—
(i) for which $200 or more ($100 or more in the case of kerosene) is payable under paragraph (4)(C) or (5) of subsection (l), and
(ii) which is not less than 1 week.
Notwithstanding subsection (l)(1), paragraph (3)(B) shall apply to claims filed under subsections (b)(4), (l)(4)(C)(ii), and (l)(5).
(B) Time for filing claim
(j) Applicable laws
(1) In general
(2) Examination of books and witnesses
(k) Income tax credit in lieu of payment
(1) Persons not subject to income taxPayment shall be made under this section only to—
(A) the United States or an agency or instrumentality thereof, a State, a political subdivision of a State, or any agency or instrumentality of one or more States or political subdivisions, or
(B) an organization exempt from tax under section 501(a) (other than an organization required to make a return of the tax imposed under subtitle A for its taxable year).
(2) Exception
(3) Allowance of credit against income tax
(l) Nontaxable uses of diesel fuel and kerosene
(1) In general
(2) Nontaxable use
(3) Refund of certain taxes on fuel used in diesel-powered trainsFor purposes of this subsection, the term “nontaxable use” includes fuel used in a diesel-powered train. The preceding sentence shall not apply with respect to—
(A) the Leaking Underground Storage Tank Trust Fund financing rate under sections 4041 and 4081, and
(B) so much of the rate specified in section 4081(a)(2)(A) as does not exceed the rate applicable under section 4041(a)(1)(C)(ii).
The preceding sentence shall not apply in the case of fuel sold for exclusive use by a State or any political subdivision thereof.
(4) Refunds for kerosene used in aviation
(A) Kerosene used in commercial aviationIn the case of kerosene used in commercial aviation (as defined in section 4083(b)) (other than supplies for vessels or aircraft within the meaning of section 4221(d)(3)), paragraph (1) shall not apply to so much of the tax imposed by section 4041 or 4081, as the case may be, as is attributable to—
(i) the Leaking Underground Storage Tank Trust Fund financing rate imposed by such section, and
(ii) so much of the rate of tax specified in section 4041(c) or 4081(a)(2)(A)(iii), as the case may be, as does not exceed 4.3 cents per gallon.
(B) Kerosene used in noncommercial aviationIn the case of kerosene used in aviation that is not commercial aviation (as so defined) (other than any use which is exempt from the tax imposed by section 4041(c) other than by reason of a prior imposition of tax), paragraph (1) shall not apply to—
(i) any tax imposed by subsection (c) or (d)(2) of section 4041, and
(ii) so much of the tax imposed by section 4081 as is attributable to—(I) the Leaking Underground Storage Tank Trust Fund financing rate imposed by such section, and(II) so much of the rate of tax specified in section 4081(a)(2)(A)(iii) as does not exceed the rate specified in section 4081(a)(2)(C)(ii).
(C) Payments to ultimate, registered vendor
(i) In generalWith respect to any kerosene used in aviation (other than kerosene described in clause (ii) or kerosene to which paragraph (5) applies), if the ultimate purchaser of such kerosene waives (at such time and in such form and manner as the Secretary shall prescribe) the right to payment under paragraph (1) and assigns such right to the ultimate vendor, then the Secretary shall pay the amount which would be paid under paragraph (1) to such ultimate vendor, but only if such ultimate vendor—(I) is registered under section 4101, and(II) meets the requirements of subparagraph (A), (B), or (D) of section 6416(a)(1).
(ii) Payments for kerosene used in noncommercial aviationThe amount which would be paid under paragraph (1) with respect to any kerosene to which subparagraph (B) applies shall be paid only to the ultimate vendor of such kerosene. A payment shall be made to such vendor if such vendor—(I) is registered under section 4101, and(II) meets the requirements of subparagraph (A), (B), or (D) of section 6416(a)(1).
(5) Registered vendors to administer claims for refund of diesel fuel or kerosene sold to State and local governments
(A) In general
(B) Sales of kerosene not for use in motor fuelParagraph (1) shall not apply to kerosene (other than kerosene used in aviation) sold by a vendor—
(i) for any use if such sale is from a pump which (as determined under regulations prescribed by the Secretary) is not suitable for use in fueling any diesel-powered highway vehicle or train, or
(ii) to the extent provided by the Secretary, for blending with heating oil to be used during periods of extreme or unseasonable cold.
(C) Payment to ultimate, registered vendorExcept as provided in subparagraph (D), the amount which would (but for subparagraph (A) or (B)) have been paid under paragraph (1) with respect to any fuel shall be paid to the ultimate vendor of such fuel, if such vendor—
(i) is registered under section 4101, and
(ii) meets the requirements of subparagraph (A), (B), or (D) of section 6416(a)(1).
(D) Credit card issuer
(m) Diesel fuel used to produce emulsion
(1) In general
(2) DefinitionsFor purposes of paragraph (1)—
(A) Regular tax rate
(B) Incentive tax rate
(n) Regulations
(o) Payments for taxes imposed by section 4041(d)
(p) Cross references
(1) For civil penalty for excessive claims under this section, see section 6675.
(2) For fraud penalties, etc., see chapter 75 (section 7201 and following, relating to crimes, other offenses, and forfeitures).
(3) For treatment of an Indian tribal government as a State (and a subdivision of an Indian tribal government as a political subdivision of a State), see section 7871.
(Added Pub. L. 91–258, title II, § 207(a), May 21, 1970, 84 Stat. 246; amended Pub. L. 94–455, title XIX, § 1906(a)(31)(A), (b)(13)(A), Oct. 4, 1976, 90 Stat. 1829, 1834; Pub. L. 94–530, § 1(b), (c)(2)–(5), Oct. 17, 1976, 90 Stat. 2487, 2488; Pub. L. 95–458, § 3(b), Oct. 14, 1978, 92 Stat. 1257; Pub. L. 95–599, title V, § 505(a), (b), (c)(2)–(4), Nov. 6, 1978, 92 Stat. 2758–2760; Pub. L. 95–600, title VII, § 703(l)(3), Nov. 6, 1978, 92 Stat. 2942; Pub. L. 95–618, title II, § 233(a)(2), Nov. 9, 1978, 92 Stat. 3190; Pub. L. 96–223, title II, § 232(d)(1), (2), (4)(B)–(D), Apr. 2, 1980, 94 Stat. 277, 278; Pub. L. 96–541, § 4, Dec. 17, 1980, 94 Stat. 3205; Pub. L. 97–248, title II, § 279(b)(2), Sept. 3, 1982, 96 Stat. 563; Pub. L. 97–424, title V, §§ 511(d)(4), (e)(1)–(3), (g)(2)(B)–(D), 516(b)(5), Jan. 6, 1983, 96 Stat. 2171, 2172, 2173, 2183; Pub. L. 97–473, title II, § 202(b)(13), Jan. 14, 1983, 96 Stat. 2610; Pub. L. 98–369, div. A, title IV, § 474(r)(38), title VII, §§ 732(a)(3), 734(c)(2), title IX, §§ 911(b), (d)(2)(B)–(F), 912(d), 914, 915(a), July 18, 1984, 98 Stat. 846, 977, 979, 1005–1008; Pub. L. 99–499, title V, § 521(c)(3)(A), (B)(i), (C), Oct. 17, 1986, 100 Stat. 1779; Pub. L. 99–514, title IV, § 422(b), title XVII, § 1703(d), (e)(1), (2)(A)–(E), title XVIII, §§ 1877(b), 1899A(55), (56), Oct. 22, 1986, 100 Stat. 2230, 2777, 2778, 2902, 2961, as amended by Pub. L. 99–499, title V, § 521(c)(3)(B)(ii), Oct. 17, 1986, 100 Stat. 1779; Pub. L. 100–17, title V, § 502(b)(8), (9), Apr. 2, 1987, 101 Stat. 257; Pub. L. 100–203, title X, § 10502(c), Dec. 22, 1987, 101 Stat. 1330–442; Pub. L. 100–223, title IV, § 405(b)(1), (2), Dec. 30, 1987, 101 Stat. 1534, 1535; Pub. L. 100–647, title I, § 1017(c)(3), (10), title II, §§ 2001(d)(7)(B)–(D), 2004(s)(2), (3), title III, § 3002(a)–(c), Nov. 10, 1988, 102 Stat. 3576, 3596, 3609, 3615, 3616; Pub. L. 101–239, title VII, §§ 7501(b)(3), 7812(a), 7822(b)(1)–(4), 7841(d)(20), Dec. 19, 1989, 103 Stat. 2361, 2412, 2424, 2425, 2429; Pub. L. 101–508, title XI, §§ 11211(b)(4)(B), (5), (6)(E)(ii), (d)(7), (8), 11213(b)(3), 11801(a)(46), (c)(23), Nov. 5, 1990, 104 Stat. 1388–425 to 1388–427, 1388–433, 1388–522, 1388–528; Pub. L. 102–240, title VIII, § 8002(b)(7), (8), Dec. 18, 1991, 105 Stat. 2203; Pub. L. 103–66, title XIII, §§ 13241(f)(8)–(10), 13242(c), (d)(21), (25)–(31), Aug. 10, 1993, 107 Stat. 512, 521, 524, 525; Pub. L. 104–188, title I, §§ 1606(a), (b)(2), 1702(b)(2)(B), 1703(k), Aug. 20, 1996, 110 Stat. 1839, 1868, 1877; Pub. L. 105–34, title X, § 1032(c)(3), (e)(7)–(10), Aug. 5, 1997, 111 Stat. 934, 935; Pub. L. 105–178, title IX, §§ 9003(a)(2), 9006(b)(2), 9009(a)–(b)(2), June 9, 1998, 112 Stat. 502, 506, 507; Pub. L. 105–206, title VI, §§ 6016(b), 6017(a), 6023(16), (25), (26), July 22, 1998, 112 Stat. 822, 825, 826; Pub. L. 108–357, title II, § 241(a)(2)(D), title III, § 301(c)(9), (10), title VIII, §§ 851(d)(3), 853(c), (d)(2)(J), (K), 857(b), (c), 870(b), Oct. 22, 2004, 118 Stat. 1438, 1462, 1609, 1611, 1613, 1617, 1624; Pub. L. 109–58, title XIII, §§ 1343(b)(1), (3), 1344(a), Aug. 8, 2005, 119 Stat. 1051, 1052; Pub. L. 109–59, title XI, §§ 11113(b)(3)(C), 11151(a), 11161(b)(2), (3)(B), (D)–(F), 11162(a), (b), 11163(c), Aug. 10, 2005, 119 Stat. 1948, 1968, 1970–1974; Pub. L. 109–432, div. A, title IV, § 420(a), (b)(1), (3), (4), Dec. 20, 2006, 120 Stat. 2968, 2969; Pub. L. 110–172, §§ 5(a)(1), 11(a)(37)–(39)(A), (e)(1), Dec. 29, 2007, 121 Stat. 2478, 2487–2489; Pub. L. 110–343, div. B, title II, §§ 202(a), 203(c)(2), 204(a)(3), Oct. 3, 2008, 122 Stat. 3832, 3834; Pub. L. 111–312, title VII, §§ 701(b)(2), 704(a), 708(c)(1), Dec. 17, 2010, 124 Stat. 3310–3312; Pub. L. 112–240, title IV, §§ 405(b)(2), 412(b), Jan. 2, 2013, 126 Stat. 2340, 2343; Pub. L. 113–295, div. A, title I, § 160(a)(2), (b)(2), (c)(2), Dec. 19, 2014, 128 Stat. 4022; Pub. L. 114–113, div. Q, title I, §§ 185(b)(2), 192(a)(2), Dec. 18, 2015, 129 Stat. 3073, 3075; Pub. L. 115–123, div. D, title I, §§ 40407(b)(2), 40415(a)(2), Feb. 9, 2018, 132 Stat. 149, 152; Pub. L. 116–94, div. Q, title I, §§ 121(b)(1)(B), 133(a)(2), Dec. 20, 2019, 133 Stat. 3230, 3233; Pub. L. 116–260, div. EE, title I, § 147(b), Dec. 27, 2020, 134 Stat. 3055; Pub. L. 117–169, title I, §§ 13201(b)(2), (e), 13203(d)(2)(B), Aug. 16, 2022, 136 Stat. 1932, 1935.)
§ 6428. 2020 recovery rebates for individuals
(a) In generalIn the case of an eligible individual, there shall be allowed as a credit against the tax imposed by subtitle A for the first taxable year beginning in 2020 an amount equal to the sum of—
(1) $1,200 ($2,400 in the case of eligible individuals filing a joint return), plus
(2) an amount equal to the product of $500 multiplied by the number of qualifying children (within the meaning of section 24(c)) of the taxpayer.
(b) Treatment of credit
(c) Limitation based on adjusted gross incomeThe amount of the credit allowed by subsection (a) (determined without regard to this subsection and subsection (e)) shall be reduced (but not below zero) by 5 percent of so much of the taxpayer’s adjusted gross income as exceeds—
(1) $150,000 in the case of a joint return or a surviving spouse (as defined in section 2(a)),
(2) $112,500 in the case of a head of household, and
(3) $75,000 in the case of a taxpayer not described in paragraph (1) or (2).
(d) Eligible individualFor purposes of this section, the term “eligible individual” means any individual other than—
(1) any nonresident alien individual,
(2) any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, and
(3) an estate or trust.
(e) Coordination with advance refunds of credit
(1) In general
(2) Joint returns
(f) Advance refunds and credits
(1) In general
(2) Advance refund amount
(3) Timing and manner of payments
(A) Timing
(B) Delivery of payments
(C) Waiver of certain rules
(4) No interest
(5) Alternate taxable yearIn the case of an individual who, at the time of any determination made pursuant to paragraph (3), has not filed a tax return for the year described in paragraph (1), the Secretary may—
(A) apply such paragraph by substituting “2018” for “2019”, and
(B) if the individual has not filed a tax return for such individual’s first taxable year beginning in 2018, use information with respect to such individual for calendar year 2019 provided in—
(i) Form SSA–1099, Social Security Benefit Statement, or
(ii) Form RRB–1099, Social Security Equivalent Benefit Statement.
(6) Payment to representative payees and fiduciaries
(A) In generalIn the case of any individual for which payment information is provided to the Secretary by the Commissioner of Social Security, the Railroad Retirement Board, or the Secretary of Veterans Affairs, the payment by the Secretary under paragraph (3) with respect to such individual may be made to such individual’s representative payee or fiduciary and the entire payment shall be—
(i) provided to the individual who is entitled to the payment, or
(ii) used only for the benefit of the individual who is entitled to the payment.
(B) Application of enforcement provisions
(i) In the case of a payment described in subparagraph (A) which is made with respect to a social security beneficiary or a supplemental security income recipient, section 1129(a)(3) of the Social Security Act (42 U.S.C. 1320a–8(a)(3)) shall apply to such payment in the same manner as such section applies to a payment under title II or XVI of such Act.
(ii) In the case of a payment described in subparagraph (A) which is made with respect to a railroad retirement beneficiary, section 13 of the Railroad Retirement Act (45 U.S.C. 231l) shall apply to such payment in the same manner as such section applies to a payment under such Act.
(iii) In the case of a payment described in subparagraph (A) which is made with respect to a veterans beneficiary, sections 5502, 6106, and 6108 of title 38, United States Code, shall apply to such payment in the same manner as such sections apply to a payment under such title.
(7) Notice to taxpayer
(g) Identification number requirement
(1) Requirements for creditSubject to paragraph (2), with respect to the credit allowed under subsection (a), the following provisions shall apply:
(A) In general
(B) Joint returnsIn the case of a joint return, the $2,400 amount in subsection (a)(1) shall be treated as being—
(i) $1,200 if the valid identification number of only 1 spouse is included on the return of tax for the taxable year, and
(ii) zero if the valid identification number of neither spouse is so included.
(C) Qualifying childA qualifying child of a taxpayer shall not be taken into account under subsection (a)(2) unless—
(i) the taxpayer includes the valid identification number of such taxpayer (or, in the case of a joint return, the valid identification number of at least 1 spouse) on the return of tax for the taxable year, and
(ii) the valid identification number of such qualifying child is included on the return of tax for the taxable year.
(2) Requirements for advance refundsNo refund shall be payable under subsection (f) to an eligible individual who does not include on the return of tax for the taxable year—
(A) such individual’s valid identification number,
(B) in the case of a joint return, the valid identification number of such individual’s spouse, and
(C) in the case of any qualifying child taken into account under subsection (a)(2), the valid identification number of such qualifying child.
(3) Valid identification number
(A) In general
(B) Adoption taxpayer identification number
(4) Special rule for members of the Armed Forces
(5) Mathematical or clerical error authority
(h) Regulations
(Added Pub. L. 116–136, div. A, title II, § 2201(a), Mar. 27, 2020, 134 Stat. 335; amended Pub. L. 116–260, div. N, title II, § 273(a), Dec. 27, 2020, 134 Stat. 1976.)
§ 6428A. Additional 2020 recovery rebates for individuals
(a) In generalIn addition to the credit allowed under section 6428, in the case of an eligible individual, there shall be allowed as a credit against the tax imposed by subtitle A for the first taxable year beginning in 2020 an amount equal to the sum of—
(1) $600 ($1,200 in the case of eligible individuals filing a joint return), plus
(2) an amount equal to the product of $600 multiplied by the number of qualifying children (within the meaning of section 24(c)) of the taxpayer.
(b) Treatment of credit
(c) Limitation based on adjusted gross incomeThe amount of the credit allowed by subsection (a) (determined without regard to this subsection and subsection (e)) shall be reduced (but not below zero) by 5 percent of so much of the taxpayer’s adjusted gross income as exceeds—
(1) $150,000 in the case of a joint return or a surviving spouse (as defined in section 2(a)),
(2) $112,500 in the case of a head of household (as defined in section 2(b)), and
(3) $75,000 in the case of a taxpayer not described in paragraph (1) or (2).
(d) Eligible individualFor purposes of this section, the term “eligible individual” means any individual other than—
(1) any nonresident alien individual,
(2) any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, and
(3) an estate or trust.
(e) Coordination with advance refunds of credit
(1) In general
(2) Joint returns
(f) Advance refunds and credits
(1) In general
(2) Advance refund amountFor purposes of paragraph (1), the advance refund amount is the amount that would have been allowed as a credit under this section for such taxable year if this section (other than subsection (e) and this subsection) had applied to such taxable year. For purposes of determining the advance refund amount with respect to such taxable year—
(A) any individual who was deceased before January 1, 2020, shall be treated for purposes of applying subsection (g) in the same manner as if the valid identification number of such person was not included on the return of tax for such taxable year, and
(B) no amount shall be determined under this subsection with respect to any qualifying child of the taxpayer if—
(i) the taxpayer was deceased before January 1, 2020, or
(ii) in the case of a joint return, both taxpayers were deceased before January 1, 2020.
(3) Timing and manner of payments
(A) Timing
(i) In general
(ii) Deadline(I) In general(II) Exception for mirror code possessionsIn the case of a possession of the United States which has a mirror code tax system (as such terms are defined in section 272(c) of the COVID-related Tax Relief Act of 2020), no refund or credit shall be made or allowed under this subsection after the earlier of—(aa) such date as is determined appropriate by the Secretary, or(bb)September 30, 2021.
(B) Delivery of paymentsNotwithstanding any other provision of law, the Secretary may certify and disburse refunds payable under this subsection electronically to—
(i) any account to which the payee authorized, on or after January 1, 2019, the delivery of a refund of taxes under this title or of a Federal payment (as defined in section 3332 of title 31, United States Code),
(ii) any account belonging to a payee from which that individual, on or after January 1, 2019, made a payment of taxes under this title, or
(iii) any Treasury-sponsored account (as defined in section 208.2 of title 31, Code of Federal Regulations).
(C) Waiver of certain rules
(4) No interest
(5) Application to certain individuals who do not file a return of tax for 2019
(A) In generalIn the case of a specified individual who, at the time of any determination made pursuant to paragraph (3), has not filed a tax return for the year described in paragraph (1), the Secretary may use information with respect to such individual which is provided by—
(i) in the case of a specified social security beneficiary or a specified supplemental security income recipient, the Commissioner of Social Security,
(ii) in the case of a specified railroad retirement beneficiary, the Railroad Retirement Board, and
(iii) in the case of a specified veterans beneficiary, the Secretary of Veterans Affairs (in coordination with, and with the assistance of, the Commissioner of Social Security if appropriate).
(B) Specified individualFor purposes of this paragraph, the term “specified individual” means any individual who is—
(i) a specified social security beneficiary,
(ii) a specified supplemental security income recipient,
(iii) a specified railroad retirement beneficiary, or
(iv) a specified veterans beneficiary.
(C) Specified social security beneficiary
(i) In general
(ii) Exception
(D) Specified supplemental security income recipient
(i) In generalFor purposes of this paragraph, the term “specified supplemental security income recipient” means any individual who, for the last month for which the Secretary has available information as of the date of enactment of this section, is eligible for a monthly benefit payable under title XVI of the Social Security Act (42 U.S.C. 1381 et seq.), including—(I) payments made pursuant to section 1614(a)(3)(C) of such Act (42 U.S.C. 1382c(a)(3)(C)),(II) payments made pursuant to section 1619(a) (42 U.S.C. 1382h(a)) or subsections (a)(4), (a)(7), or (p)(7) of section 1631 (42 U.S.C. 1383) of such Act, and(III) State supplementary payments of the type referred to in section 1616(a) of such Act (42 U.S.C. 1382e(a)) (or payments of the type described in section 212(a) of Public Law 93–66) which are paid by the Commissioner under an agreement referred to in such section 1616(a) (or section 212(a) of Public Law 93–66).
(ii) Exception
(E) Specified railroad retirement beneficiaryFor purposes of this paragraph, the term “specified railroad retirement beneficiary” means any individual who, for the last month for which the Secretary has available information as of the date of enactment of this section, is entitled to a monthly annuity or pension payment payable (without regard to section 5(a)(ii) of the Railroad Retirement Act of 1974 (45 U.S.C. 231d(a)(ii))) under—
(i) section 2(a)(1) of such Act (45 U.S.C. 231a(a)(1)),
(ii) section 2(c) of such Act (45 U.S.C. 231a(c)),
(iii) section 2(d)(1) of such Act (45 U.S.C. 231a(d)(1)), or
(iv) section 7(b)(2) of such Act (45 U.S.C. 231f(b)(2)) with respect to any of the benefit payments described in subparagraph (C)(i).
(F) Specified veterans beneficiary
(i) In generalFor purposes of this paragraph, the term “specified veterans beneficiary” means any individual who, for the last month for which the Secretary has available information as of the date of enactment of this section, is entitled to a compensation or pension payment payable under—(I) section 1110, 1117, 1121, 1131, 1141, or 1151 of title 38, United States Code,(II) section 1310, 1312, 1313, 1315, 1316, or 1318 of title 38, United States Code,(III) section 1513, 1521, 1533, 1536, 1537, 1541, 1542, or 1562 of title 38, United States Code, or(IV) section 1805, 1815, or 1821 of title 38, United States Code,
to a veteran, surviving spouse, child, or parent as described in paragraph (2), (3), (4)(A)(ii), or (5) of section 101, title 38, United States Code.
(ii) Exception
(G) Subsequent determinations and redeterminations not taken into account
(H) Payment to representative payees and fiduciaries
(i) In general
(ii) Application of enforcement provisions(I) In the case of a payment described in clause (i) which is made with respect to a specified social security beneficiary or a specified supplemental security income recipient, section 1129(a)(3) of the Social Security Act (42 U.S.C. 1320a–8(a)(3)) shall apply to such payment in the same manner as such section applies to a payment under title II or XVI of such Act.(II) In the case of a payment described in clause (i) which is made with respect to a specified railroad retirement beneficiary, section 13 of the Railroad Retirement Act (45 U.S.C. 231l) shall apply to such payment in the same manner as such section applies to a payment under such Act.(III) In the case of a payment described in clause (i) which is made with respect to a specified veterans beneficiary, sections 5502, 6106, and 6108 of title 38, United States Code, shall apply to such payment in the same manner as such sections apply to a payment under such title.
(I) Ineligibility for special rule not to be interpreted as general ineligibility
(6) Notice to taxpayer
(g) Identification number requirement
(1) In general
(2) Joint returnsIn the case of a joint return, the $1,200 amount in subsection (a)(1) shall be treated as being—
(A) $600 if the valid identification number of only 1 spouse is included on the return of tax for the taxable year, and
(B) zero if the valid identification number of neither spouse is so included.
(3) Qualifying childA qualifying child of a taxpayer shall not be taken into account under subsection (a)(2) unless—
(A) the taxpayer includes the valid identification number of such taxpayer (or, in the case of a joint return, the valid identification number of at least 1 spouse) on the return of tax for the taxable year, and
(B) the valid identification number of such qualifying child is included on the return of tax for the taxable year.
(4) Valid identification number
(A) In general
(B) Adoption taxpayer identification number
(5) Special rule for members of the Armed Forces
(6) Coordination with certain advance payments
(7) Mathematical or clerical error authority
(h) Regulations
(Added Pub. L. 116–260, div. N, title II, § 272(a), Dec. 27, 2020, 134 Stat. 1965.)
§ 6428B. 2021 recovery rebates to individuals
(a) In general
(b) 2021 rebate amountFor purposes of this section, the term “2021 rebate amount” means, with respect to any taxpayer for any taxable year, the sum of—
(1) $1,400 ($2,800 in the case of a joint return), plus
(2) $1,400 multiplied by the number of dependents of the taxpayer for such taxable year.
(c) Eligible individualFor purposes of this section, the term “eligible individual” means any individual other than—
(1) any nonresident alien individual,
(2) any individual who is a dependent of another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, and
(3) an estate or trust.
(d) Limitation based on adjusted gross income
(1) In generalThe amount of the credit allowed by subsection (a) (determined without regard to this subsection and subsection (f)) shall be reduced (but not below zero) by the amount which bears the same ratio to such credit (as so determined) as—
(A) the excess of—
(i) the taxpayer’s adjusted gross income for such taxable year, over
(ii) $75,000, bears to
(B) $5,000.
(2) Special rules
(A) Joint return or surviving spouse
(B) Head of household
(e) Definitions and special rules
(1) Dependent defined
(2) Identification number requirement
(A) In general
(B) Joint returnsIn the case of a joint return, the $2,800 amount in subsection (b)(1) shall be treated as being—
(i) $1,400 if the valid identification number of only 1 spouse is included on the return of tax for the taxable year, and
(ii) zero if the valid identification number of neither spouse is so included.
(C) Dependents
(D) Valid identification number
(i) In general
(ii) Adoption taxpayer identification number
(E) Special rule for members of the Armed Forces
(F) Coordination with certain advance payments
(G) Mathematical or clerical error authority
(3) Credit treated as refundable
(f) Coordination with advance refunds of credit
(1) Reduction of refundable credit
(2) Joint returns
(g) Advance refunds and credits
(1) In general
(2) Advance refund amount
(A) In general
(B) Treatment of deceased individualsFor purposes of determining the advance refund amount with respect to such taxable year—
(i) any individual who was deceased before January 1, 2021, shall be treated for purposes of applying subsection (e)(2) in the same manner as if the valid identification number of such person was not included on the return of tax for such taxable year (except that subparagraph (E) thereof shall not apply),
(ii) notwithstanding clause (i), in the case of a joint return with respect to which only 1 spouse is deceased before January 1, 2021, such deceased spouse was a member of the Armed Forces of the United States at any time during the taxable year, and the valid identification number of such deceased spouse is included on the return of tax for the taxable year, the valid identification number of 1 (and only 1) spouse shall be treated as included on the return of tax for the taxable year for purposes of applying subsection (e)(2)(B) with respect to such joint return, and
(iii) no amount shall be determined under subsection (e)(2) with respect to any dependent of the taxpayer if the taxpayer (both spouses in the case of a joint return) was deceased before January 1, 2021.
(3) Timing and manner of payments
(4) No interest
(5) Application to individuals who have filed a return of tax for 2020
(A) Application to 2020 returns filed at time of initial determination
(B) Additional payment
(i) In generalIn the case of any individual who files, before the additional payment determination date, a return of tax for such individual’s first taxable year beginning in 2020, the Secretary shall make a payment (in addition to any payment made under paragraph (1)) to such individual equal to the excess (if any) of—(I) the amount which would be determined under paragraph (1) (after the application of subparagraph (A)) by applying paragraph (1) as of the additional payment determination date, over(II) the amount of any payment made with respect to such individual under paragraph (1).
(ii) Additional payment determination dateThe term “additional payment determination date” means the earlier of—(I) the date which is 90 days after the 2020 calendar year filing deadline, or(II)September 1, 2021.
(iii) 2020 calendar year filing deadline
(6) Application to certain individuals who have not filed a return of tax for 2019 or 2020 at time of determination
(7) Special rule related to time of filing return
(8) Restriction on use of certain previously issued prepaid debit cards
(h) RegulationsThe Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including—
(1) regulations or other guidance providing taxpayers the opportunity to provide the Secretary information sufficient to allow the Secretary to make payments to such taxpayers under subsection (g) (including the determination of the amount of such payment) if such information is not otherwise available to the Secretary, and
(2) regulations or other guidance to ensure to the maximum extent administratively practicable that, in determining the amount of any credit under subsection (a) and any credit or refund under subsection (g), an individual is not taken into account more than once, including by different taxpayers and including by reason of a change in joint return status or dependent status between the taxable year for which an advance refund amount is determined and the taxable year for which a credit under subsection (a) is determined.
(i) Outreach
(Added Pub. L. 117–2, title IX, § 9601(a), Mar. 11, 2021, 135 Stat. 138.)
[§ 6429. Repealed. Pub. L. 113–295, div. A, title II, § 221(a)(113), Dec. 19, 2014, 128 Stat. 4054]
§ 6430. Treatment of tax imposed at Leaking Underground Storage Tank Trust Fund financing rate
No refunds, credits, or payments shall be made under this subchapter for any tax imposed at the Leaking Underground Storage Tank Trust Fund financing rate, except in the case of fuels—
(1) which are exempt from tax under section 4081(a) by reason of section 4082(f)(2),
(2) which are exempt from tax under section 4041(d) by reason of the last sentence of paragraph (5) thereof, or
(3) with respect to which the rate increase under section 4081(a)(2)(B) is zero by reason of section 4082(e)(2).
(Added Pub. L. 109–58, title XIII, § 1362(b)(3)(A), Aug. 8, 2005, 119 Stat. 1059; amended Pub. L. 110–172, § 6(d)(2)(D), Dec. 29, 2007, 121 Stat. 2481.)
[§ 6431. Repealed. Pub. L. 115–97, title I, § 13404(b), Dec. 22, 2017, 131 Stat. 2138]
§ 6432. Continuation coverage premium assistance
(a) In general
(b) Person to whom premiums are payableFor purposes of subsection (a), except as otherwise provided by the Secretary, the person to whom premiums are payable under such continuation coverage shall be treated as being—
(1) in the case of any group health plan which is a multiemployer plan (as defined in section 3(37) of the Employee Retirement Income Security Act of 1974), the plan,
(2) in the case of any group health plan not described in paragraph (1)—
(A) which is subject to the COBRA continuation provisions contained in—
(i) the Internal Revenue Code of 1986,
(ii) the Employee Retirement Income Security Act of 1974, or
(iii) the Public Health Service Act, or
(B) under which some or all of the coverage is not provided by insurance,
the employer maintaining the plan, and
(3) in the case of any group health plan not described in paragraph (1) or (2), the insurer providing the coverage under the group health plan.
(c) Limitations and refundability
(1) Credit limited to certain employment taxes
(2) Refundability of excess credit
(A) Credit is refundable
(B) Credit may be advanced
(C) Treatment of deposits
(D) Treatment of payments
(3) Overstatements
(d) Governmental entities
(e) Denial of double benefit
(f) Extension of limitation on assessmentNotwithstanding section 6501, the limitation on the time period for the assessment of any amount attributable to a credit claimed under this section shall not expire before the date that is 5 years after the later of—
(1) the date on which the original return which includes the calendar quarter with respect to which such credit is determined is filed, or
(2) the date on which such return is treated as filed under section 6501(b)(2).
(g) RegulationsThe Secretary shall issue such regulations, or other guidance, forms, instructions, and publications, as may be necessary or appropriate to carry out this section, including—
(1) the requirement to report information or the establishment of other methods for verifying the correct amounts of reimbursements under this section,
(2) the application of this section to group health plans that are multiemployer plans (as defined in section 3(37) of the Employee Retirement Income Security Act of 1974),
(3) to allow the advance payment of the credit determined under subsection (a), subject to the limitations provided in this section, based on such information as the Secretary shall require,
(4) to provide for the reconciliation of such advance payment with the amount of the credit at the time of filing the return of tax for the applicable quarter or taxable year, and
(5) allowing the credit to third party payors (including professional employer organizations, certified professional employer organizations, or agents under section 3504).
(Added Pub. L. 117–2, title IX, § 9501(b)(1)(A), Mar. 11, 2021, 135 Stat. 134.)
§ 6433. Saver’s Match
(a) In general
(1) Allowance of match
(2) Payment of match
(A) In general
(B) Exception
(b) Applicable percentageFor purposes of this section—
(1) In general
(2) PhaseoutThe percentage under paragraph (1) shall be reduced (but not below zero) by the number of percentage points which bears the same ratio to 50 percentage points as—
(A) the excess of—
(i) the taxpayer’s modified adjusted gross income for such taxable year, over
(ii) the applicable dollar amount, bears to
(B) the phaseout range.
If any reduction determined under this paragraph is not a whole percentage point, such reduction shall be rounded to the next lowest whole percentage point.
(3) Applicable dollar amount; phaseout range
(A) Joint returns and surviving spousesExcept as provided in subparagraph (B)—
(i) the applicable dollar amount is $41,000, and
(ii) the phaseout range is $30,000.
(B) Other returnsIn the case of—
(i) a head of a household (as defined in section 2(b)), the applicable dollar amount and the phaseout range shall be ¾ of the amounts applicable under subparagraph (A) (as adjusted under subsection (h)), and
(ii) any taxpayer who is not filing a joint return, who is not a head of a household (as so defined), and who is not a surviving spouse (as defined in section 2(a)), the applicable dollar amount and the phaseout range shall be ½ of the amounts applicable under subparagraph (A) (as so adjusted).
(c) Eligible individualFor purposes of this section—
(1) In general
(2) Dependents and full-time students not eligibleThe term “eligible individual” shall not include—
(A) any individual with respect to whom a deduction under section 151 is allowed to another taxpayer for a taxable year beginning in the calendar year in which such individual’s taxable year begins, and
(B) any individual who is a student (as defined in section 152(f)(2)).
(3) Nonresident aliens not eligible
(d) Qualified retirement savings contributionsFor purposes of this section—
(1) In generalThe term “qualified retirement savings contributions” means, with respect to any taxable year, the sum of—
(A) the amount of the qualified retirement contributions (as defined in section 219(e)) made by the eligible individual,
(B) the amount of—
(i) any elective deferrals (as defined in section 402(g)(3)) of such individual, and
(ii) any elective deferral of compensation by such individual under an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A), and
(C) the amount of voluntary employee contributions by such individual to any qualified retirement plan (as defined in section 4974(c)).
Such term shall not include any amount attributable to a payment under subsection (a)(2).
(2) Reduction for certain distributions
(A) In general
(B) Testing periodFor purposes of subparagraph (A), the testing period, with respect to a taxable year, is the period which includes—
(i) such taxable year,
(ii) the 2 preceding taxable years, and
(iii) the period after such taxable year and before the due date (including extensions) for filing the return of tax for such taxable year.
(C) Excepted distributionsThere shall not be taken into account under subparagraph (A)—
(i) any distribution referred to in section 72(p), 401(k)(8), 401(m)(6), 402(g)(2), 404(k), or 408(d)(4),
(ii) any distribution to which section 408(d)(3) or 408A(d)(3) applies, and
(iii) any portion of a distribution if such portion is transferred or paid in a rollover contribution (as defined in section 402(c), 403(a)(4), 403(b)(8), 408A(e), or 457(e)(16)) to an account or plan to which qualified retirement savings contributions can be made.
(D) Treatment of distributions received by spouse of individual
(e) Applicable retirement savings vehicle
(1) In general
(2) ElectionAny such election to have contributed the amount determined under subsection (a) shall be to an account or plan which—
(A) is—
(i) the portion of a plan which—(I) is described in clause (v) of section 402(c)(8)(B), is a qualified cash or deferred arrangement (within the meaning of section 401(k)), or is an annuity contract described in section 403(b) which is purchased under a salary reduction agreement, and(II) does not consist of a qualified Roth contribution program (as defined in section 402A(b)), or
(ii) an individual retirement plan which is not a Roth IRA,
(B) is for the benefit of the eligible individual,
(C) accepts contributions made under this section, and
(D) is designated by such individual (in such form and manner as the Secretary may provide).
(f) Other definitions and special rules
(1) Modified adjusted gross incomeFor purposes of this section, the term “modified adjusted gross income” means adjusted gross income—
(A) determined without regard to sections 911, 931, and 933, and
(B) determined without regard to any exclusion or deduction allowed for any qualified retirement savings contribution made during the taxable year.
(2) Treatment of contributionsIn the case of any contribution under subsection (a)(2)—
(A) except as otherwise provided in this section or by the Secretary under regulations, such contribution shall be treated as—
(i) an elective deferral made by the individual, if contributed to an applicable retirement savings vehicle described in subsection (e)(2)(A)(i), or
(ii) as an individual retirement plan contribution made by such individual, if contributed to such a plan,
(B) such contribution shall not be taken into account with respect to any applicable limitation under sections 402(g)(1), 403(b), 408(a)(1), 408(b)(2)(B), 408A(c)(2), 414(v)(2), 415(c), or 457(b)(2), and shall be disregarded for purposes of sections 401(a)(4), 401(k)(3), 401(k)(11)(B)(i)(III), and 416, and
(C) such contribution shall not be treated as an amount that may be paid, made available, or distributable to the participant under section 401(k)(2)(B)(i)(IV), 403(b)(7)(A)(i)(V), or 457(d)(1)(A)(iii).
(3) Treatment of qualified plans, etc.
(4) Erroneous matching contributions
(A) In general
(B) Distribution of erroneous matching contributionsIn the case of a contribution to which subparagraph (A) applies—
(i) section 402(a), 403(a)(1), 403(b)(1), 408(d)(1), or 457(a)(1), whichever is applicable, shall not apply to any distribution of such contribution, and section 72(t) shall not apply to the distribution of such contribution or any income attributable thereto, if such distribution is received not later than the day prescribed by law (including extensions of time) for filing the individual’s return for such taxable year, and
(ii) any plan or arrangement from which such a distribution is made under this subparagraph shall not be treated as violating any requirement under section 401, 403, or 457 solely by reason of making such distribution.
(5) Exception from reduction or offsetAny payment made to any individual under this section shall not be—
(A) subject to reduction or offset pursuant to subsection (c), (d), (e), or (f) of section 6402 or any similar authority permitting offset, or
(B) reduced or offset by other assessed Federal taxes that would otherwise be subject to levy or collection.
(6) Saver’s match recovery payments
(A) In general
(B) Specified early distributionFor purposes of this paragraph, the term “specified early distribution” means any portion of a distribution—
(i) which is from such applicable retirement savings vehicle to which a contribution has been made under subsection (a)(2),
(ii) which is includible in gross income, and
(iii) to which 72(t)(1) applies.
(C) Excess may be repaid
(i) In general
(ii) Contribution of excess
(iii) Limitation on contributions to applicable retirement savings vehicle other than IRAs
(iv) Treatment of repayments of distributions from applicable eligible retirement plans other than IRAs
(v) Treatment of repayments for distributions from IRAs
(D) Rules to account for investment loss
(g) Provision by Secretary of information relating to contributions
(h) Inflation adjustments
(1) In generalIn the case of any taxable year beginning in a calendar year after 2027, the $41,000 amount in subsection (b)(3)(A)(i) shall be increased by an amount equal to—
(A) such dollar amount, multiplied by
(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “calendar year 2026” for “calendar year 2016” in subparagraph (A)(ii) thereof.
(2) Rounding
(Added Pub. L. 117–328, div. T, title I, § 103(a), Dec. 29, 2022, 136 Stat. 5279.)