CERTAIN GASOLINE SOLD FOR FURTHER MANUFACTURE.

Sec. 205. CERTAIN GASOLINE SOLD FOR FURTHER MANUFACTURE. (a) Exemption From Tax.—Section 4221(d)(6) of the Internal Revenue Code of 1954 (relating to use in further manufacture) is amended— (1) by striking “or” at the end of subparagraph (A), (2) by striking the period at the end of subparagraph (B) and inserting in lieu thereof “; or”, and (3) by adding at the end thereof the following new subparagraph: “(C) in the case of gasoline taxable under section 4081, such gasoline is sold for use by the purchaser, for nonfuel purposes, as a material in the manufacture or production of another article to be manufactured or produced by him.” (b) Use by Manufacturer or Importer Considered Sale.—Section 4218(a) of such Code (relating to use considered as sale) is amended by adding at the end thereof the following new sentence: “This subsection shall not apply in the case of gasoline used by any person, for nonfuel purposes, as a material in the manufacture or production of another article to be manufactured or produced by him.” (c) Credit or Refund.—Section 6416(b)(3) of such Code (relating to tax paid articles used for further manufacture) is amended— (1) by striking out “or” at the end of subparagraph (D), (2) by striking out the period at the end of subparagraph (E) and inserting in lieu thereof “; or”, and (3) by inserting after subparagraph (E) the following new subparagraph: “(F) in the case of gasoline taxable under section 4081, such gasoline is used by the second manufacturer or producer, for nonfuel purposes, as a material in the manufacture or production of any other article manufactured or produced by him.” (d) Conforming Amendment.—Section 6416(b)(2)(E) of such Code is amended by striking out “or (E)” and inserting in lieu thereof “(E), or (F)”.