§4092. Exemptions

(a) Nontaxable uses

No tax shall be imposed by section 4091 on aviation fuel sold by a producer or importer for use by the purchaser in a nontaxable use (as defined in section 6427(l)(2)(B)).

(b) No exemption from certain taxes on fuel used in commercial aviation

In the case of fuel sold for use in commercial aviation (other than supplies for vessels or aircraft within the meaning of section 4221(d)(3)), subsection (a) shall not apply to so much of the tax imposed by section 4091 as is attributable to-

(1) the Leaking Underground Storage Tank Trust Fund financing rate imposed by such section, and

(2) in the case of fuel sold after September 30, 1995, 4.3 cents per gallon of the rate specified in section 4091(b)(1).

For purposes of the preceding sentence, the term "commercial aviation" means any use of an aircraft other than in noncommercial aviation (as defined in section 4041(c)(4)).

(c) Sales to producer

Under regulations prescribed by the Secretary, the tax imposed by section 4091 shall not apply to aviation fuel sold to a producer of such fuel.

(Added Pub. L. 100–203, title X, §10502(a), Dec. 22, 1987, 101 Stat. 1330–440 ; amended Pub. L. 100–647, title III, §3003(a), Nov. 10, 1988, 102 Stat. 3616 ; Pub. L. 103–66, title XIII, §§13163(a)(1), (3), 13242(a), Aug. 10, 1993, 107 Stat. 453 , 519.)

Prior Provisions

A prior section 4092, acts Aug. 16, 1954, ch. 736, 68A Stat. 484 ; Aug. 11, 1955, ch. 793, §1(b), 69 Stat. 676 ; Nov. 9, 1978, Pub. L. 95–618, title IV, §404(b), 92 Stat. 3205 , provided for certain vendees to be considered as manufacturers and defined "cutting oils", prior to repeal by Pub. L. 97–424, title V, §515(a), (c), Jan. 6, 1983, 96 Stat. 2181 , applicable with respect to articles sold after Jan. 6, 1983.

Amendments

1993-Pub. L. 103–66, §13242(a) amended heading and text generally. Prior to amendment, text defined "taxable fuel", "diesel fuel", "aviation fuel", "producer", and "wholesale distributor".

Subsec. (a)(2). Pub. L. 103–66, §13163(a)(1), substituted ", a diesel-powered train, or a diesel-powered boat" for "or a diesel-powered train".

Subsec. (b)(1)(B). Pub. L. 103–66, §13163(a)(3), substituted "vessels for use in an off-highway business use (as defined in section 6421(e)(2)(B))" for "commercial and noncommercial vessels" in cl. (iii) and in last sentence.

1988-Subsec. (b)(1)(B). Pub. L. 100–647 added cl. (iii) and sentence at end providing that a retailer shall not be treated as not described in cl. (iii) by reason of selling de minimis amounts of diesel fuel other than as supplies for commercial and noncommercial vessels.

Effective Date of 1993 Amendment

Amendment by section 13163(a)(1), (3) of Pub. L. 103–66 effective Jan. 1, 1994, see section 13163(d) of Pub. L. 103–66, set out as a note under section 4041 of this title.

Amendment by section 13242(a) of Pub. L. 103–66 effective Jan. 1, 1994, see section 13242(e) of Pub. L. 103–66, set out as a note under section 4041 of this title.

Effective Date of 1988 Amendment

Section 3003(b) of Pub. L. 100–647 provided that: "The amendments made by this section [amending this section] shall apply to sales after December 31, 1988."

Section Referred to in Other Sections

This section is referred to in section 6427 of this title.