§4612 — Title 26 Internal Revenue Code | U.S. Code

Summary

These rules define the terms used for the tax on crude oil and petroleum products. "Crude oil" includes condensates and natural gasoline, and a "barrel" means 42 U.S. gallons, with the tax prorated for any fraction of a barrel. "United States" covers the 50 states, the District of Columbia, Puerto Rico, U.S. possessions, the Northern Mariana Islands, the Trust Territory of the Pacific Islands, and foreign trade zones. Oil is only taxed once: if someone can show a prior tax was already paid on the same product, no second tax applies. Companies that paid into the old Deepwater Port and Offshore Oil Pollution funds before January 1, 1987 get a credit for those payments against the Oil Spill Liability Trust Fund portion of the tax. A related business credit covers amounts paid into the Trans-Alaska Pipeline Liability Fund, with the Treasury reimbursing the trust fund only when its unobligated balance tops $1,000,000,000.

Title 26, §4612

Internal Revenue Code — Source: USLM XML via OLRC

(a)For purposes of this subchapter—

(1)The term “crude oil” includes crude oil condensates and natural gasoline.

(2)The term “domestic crude oil” means any crude oil produced from a well located in the United States.

(3)The term “petroleum product” includes crude oil.

(4)(A)The term “United States” means the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, any possession of the United States, the Commonwealth of the Northern Mariana Islands, and the Trust Territory of the Pacific Islands.

(B)The principles of section 638 shall apply for purposes of the term “United States”.

(C)The term “United States” includes any foreign trade zone of the United States.

(5)The term “United States refinery” means any facility in the United States at which crude oil is refined.

(6)In the case of any United States refinery which produces natural gasoline from natural gas, the gasoline so produced shall be treated as received at such refinery at the time so produced.

(7)The term “premises” has the same meaning as when used for purposes of determining gross income from the property under section 613.

(8)The term “barrel” means 42 United States gallons.

(9)In the case of a fraction of a barrel, the tax imposed by section 4611 shall be the same fraction of the amount of such tax imposed on a whole barrel.

(b)No tax shall be imposed by section 4611 with respect to any petroleum product if the person who would be liable for such tax establishes that a prior tax imposed by such section has been imposed with respect to such product.

(c)Under regulations prescribed by the Secretary, if an operator of a United States refinery—

(1)removes crude oil from a pipeline, and

(2)returns a portion of such crude oil into a stream of other crude oil in the same pipeline,

(d)There shall be allowed as a credit against so much of the tax imposed by section 4611 as is attributable to the Oil Spill Liability Trust Fund financing rate for any period an amount equal to the excess of—

(1)the sum of—

(A)the aggregate amounts paid by the taxpayer before January 1, 1987, into the Deepwater Port Liability Trust Fund and the Offshore Oil Pollution Compensation Fund, and

(B)the interest accrued on such amounts before such date, over

(2)the amount of such payments taken into account under this subsection for all prior periods.

(e)(1)For purposes of section 38, the current year business credit shall include the credit determined under this subsection.

(2)(A)The credit determined under this subsection for any taxable year is an amount equal to the aggregate credit which would be allowed to the taxpayer under subsection (d) for amounts paid into the Trans-Alaska Pipeline Liability Fund had the Oil Spill Liability Trust Fund financing rate not ceased to apply.

(B)(i)The amount of the credit determined under this subsection for any taxable year with respect to any taxpayer shall not exceed the excess of—

(I)the amount determined under clause (ii), over

(II)the aggregate amount of the credit determined under this subsection for prior taxable years with respect to such taxpayer.

(ii)The amount determined under this clause with respect to any taxpayer is the excess of—

(I)the aggregate amount of credit which would have been allowed under subsection (d) to the taxpayer for periods before the termination date specified in section 4611(f)(1), if amounts in the Trans-Alaska Pipeline Liability Fund which are actually transferred into the Oil Spill Liability Fund were transferred on January 1, 1990, and the Oil Spill Liability Trust Fund financing rate did not terminate before such termination date, over

(II)the aggregate amount of the credit allowed under subsection (d) to the taxpayer.

(3)(A)The Secretary shall from time to time transfer from the Oil Spill Liability Trust Fund to the general fund of the Treasury amounts equal to the credits allowed by reason of this subsection.

(B)Transfers may be made under subparagraph (A) only to the extent that the unobligated balance of the Oil Spill Liability Trust Fund exceeds $1,000,000,000. If any transfer is not made by reason of the preceding sentence, such transfer shall be made as soon as permitted under such sentence.

(4)No portion of the unused business credit for any taxable year which is attributable to the credit determined under this subsection may be carried to a taxable year beginning on or before the date of the enactment of this paragraph.

(f)The provisions of subsections (a)(3) and (b)(3) of section 7652 shall not apply to any tax imposed by section 4611.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The date of the enactment of this paragraph, referred to in subsec. (e)(4), is the date of the enactment of Pub. L. 102–486, which was approved Oct. 24, 1992. Codification

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by Pub. L. 99–509, title VIII, § 8031(c), Oct. 21, 1986, 100 Stat. 1955, to subsecs. (c) and (d) of this section were not executed to text pursuant to Pub. L. 99–509, title VIII, § 8031(e)(2), which provided that the

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made by section 8031 shall not take effect if the Superfund

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and Reauthorization Act of 1986 is enacted. The Superfund

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and Reauthorization Act of 1986 was enacted as Pub. L. 99–499, approved Oct. 17, 1986.

Amendments

2018—Subsec. (e)(2)(B)(ii)(I). Pub. L. 115–141 substituted “were transferred” for “were tranferred”. 1992—Subsecs. (e), (f). Pub. L. 102–486 added subsec. (e) and redesignated former subsec. (e) as (f). 1990—Subsec. (d). Pub. L. 101–380 substituted at end “For purposes of this subsection, all taxpayers which would be members of the same affiliated group (as defined in section 1504(a)) if section 1504(a)(2) were applied by substituting ‘100 percent’ for ‘80 percent’ shall be treated as 1 taxpayer.” for “Amounts may be transferred from the Trans-Alaska Pipeline Liability Fund into the Oil Spill Liability Trust Fund only to the extent the administrators of the Trans-Alaska Pipeline Liability Fund determine that such amounts are not needed to satisfy claims against such Fund.” 1989—Subsec. (d). Pub. L. 101–239 inserted at end “The preceding sentence shall also apply to amounts paid by the taxpayer into the Trans-Alaska Pipeline Liability Fund to the extent of amounts transferred from such Fund into the Oil Spill Liability Trust Fund. Amounts may be transferred from the Trans-Alaska Pipeline Liability Fund into the Oil Spill Liability Trust Fund only to the extent the administrators of the Trans-Alaska Pipeline Liability Fund determine that such amounts are not needed to satisfy claims against such Fund.” 1986—Subsec. (c). Pub. L. 99–499 added subsec. (c) and redesignated former subsec. (c) as (d). Subsec. (d). Pub. L. 99–509 added subsec. (d) and redesignated former subsec. (d) as (e). Pub. L. 99–499 redesignated former subsec. (c) as (d). Subsec. (e). Pub. L. 99–509 redesignated former subsec. (d) as (e).

Statutory Notes and Related Subsidiaries

Effective Date

of 1992 Amendment Pub. L. 102–486, title XIX, § 1922(b), Oct. 24, 1992, 106 Stat. 3029, provided that: “The

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made by this section [amending this section] shall apply to taxable years beginning after the date of the enactment of this Act [Oct. 24, 1992].”

Effective Date

of 1990 AmendmentAmendment by Pub. L. 101–380 applicable to incidents occurring after Aug. 18, 1990, see section 1020 of Pub. L. 101–380, set out as an

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note under section 2701 of Title 33, Navigation and Navigable Waters.

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of 1986

Amendments

Amendment by Pub. L. 99–509 effective on commencement date as defined in section 4611(f)(2), see section 8032(d) of Pub. L. 99–509, set out as a note under section 4611 of this title. Amendment by Pub. L. 99–499 effective Jan. 1, 1987, see section 512(d) of Pub. L. 99–499, set out as a note under section 4611 of this title.

Executive Documents

Termination of Trust Territory of the Pacific Islands For termination of Trust Territory of the Pacific Islands, see note set out preceding section 1681 of Title 48, Territories and Insular Possessions.

§4612 Definitions and Special Rules

Summary

Title 26, §4612

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Statutory Notes and Related Subsidiaries

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