Laws: Cases and Codes : U.S. Code : Title 26 : Section 4612


   
U.S. Code as of: 01/19/04
Section 4612. Definitions and special rules

    (a) Definitions
      For purposes of this subchapter - 
      (1) Crude oil
        The term "crude oil" includes crude oil condensates and natural
      gasoline.
      (2) Domestic crude oil
        The term "domestic crude oil" means any crude oil produced from
      a well located in the United States.
      (3) Petroleum product
        The term "petroleum product" includes crude oil.
      (4) United States
        (A) In general
          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) United States includes continental shelf areas
          The principles of section 638 shall apply for purposes of the
        term "United States".
        (C) United States includes foreign trade zones
          The term "United States" includes any foreign trade zone of
        the United States.
      (5) United States refinery
        The term "United States refinery" means any facility in the
      United States at which crude oil is refined.
      (6) Refineries which produce natural gasoline
        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) Premises
        The term "premises" has the same meaning as when used for
      purposes of determining gross income from the property under
      section 613.
      (8) Barrel
        The term "barrel" means 42 United States gallons.
      (9) Fractional part of barrel
        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) Only 1 tax imposed with respect to any product
      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) Credit where crude oil returned to pipeline
      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,

    there shall be allowed as a credit against the tax imposed by
    section 4611 to such operator an amount equal to the product of the
    rate of tax imposed by section 4611 on the crude oil so removed by
    such operator and the number of barrels of crude oil returned by
    such operator to such pipeline. Any crude oil so returned shall be
    treated for purposes of this subchapter as crude oil on which no
    tax has been imposed by section 4611.
    (d) Credit against portion of tax attributable to oil spill rate
      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.

    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. 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.
    (e) Income tax credit for unused payments into Trans-Alaska
      Pipeline Liability Fund
      (1) In general
        For purposes of section 38, the current year business credit
      shall include the credit determined under this subsection.
      (2) Determination of credit
        (A) In general
          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) Limitation
          (i) In general
            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) Overall limitation
            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 tranferred (!1) 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) Cost of income tax credit borne by Trust Fund
        (A) In general
          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) Trust Fund balance may not be reduced below $1,000,000,000
          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 carryback
        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) Disposition of revenues from Puerto Rico and the Virgin Islands
      The provisions of subsections (a)(3) and (b)(3) of section 7652
    shall not apply to any tax imposed by section 4611.



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