LUBRICATING OIL.

SEC. 202. LUBRICATING OIL. (a) Imposition of Tax.— Section 4091 (relating to imposition of tax) is amended to read as follows: “SEC. 4091. IMPOSITION OF TAX. “There is hereby imposed on lubricating oil (other than cutting oils) which is sold in the United States by the manufacturer or producer a tax of 6 cents a gallon, to be paid by the manufacturer or producer.” (b) Payments to Ultimate Purchasers.— Subchapter B of chapter 65 (relating to rules of special application) is amended by adding at the end thereof the following new section: “SEC. 5424. LUBRICATING OIL NOT USED IN HIGHWAY MOTOR VEHICLES. “(a) Payments.— Except as provided in subsection (g), if lubricating oil (other than cutting oils, as defined in section 4092(b), and other than oil which has previously been used) is used otherwise than in a highway motor vehicle, the Secretary or his delegate shall pay (without interest) to the ultimate purchaser of such lubricating oil an amount equal to 6 cents for each gallon of lubricating oil so used. “(b) Time for Filing Claims; Period Covered.— “(1) General rule.— Except as provided in paragraph (2), not more than one claim may be filed under subsection (a) by any person with respect to lubricating oil used during his taxable year.79 Stat. 138 No claim shall be allowed under this paragraph with respect to lubricating oil used during any taxable year unless filed by such person not later than the time prescribed by law for filing an income tax return for such taxable year. For purposes of this subsection, a person’s taxable year shall be his taxable year for purposes of subtitle A, except that a person’s first taxable year beginning after December 31, 1965, shall include the period after December 31, 1965, and before the beginning of such first taxable year. “(2) Exception.— If $1,000 or more is payable under this section to any person with respect to lubricating oil used during any of the first three quarters of his taxable year, a claim may be filed under this section by such person with respect to lubricating oil used during such quarter. No claim filed under this paragraph shall be allowed unless filed on or before the last day of the first quarter following the quarter for which the claim is “(c) Exempt Sales.— No amount shall be payable under this section with respect to any lubricating oil which the Secretary or his delegate determines was exempt from the tax imposed by section 4091. The amount which (but for this sentence) would be payable under this section with respect to any lubricating oil shall be reduced by any other amount which the Secretary or his delegate determines is payable under this section, or is refundable under any provision of this title, to any person with respect to such lubricating oil. “(d) Applicable Laws.— “(1) In general.— All provisions of law, including penalties, applicable in respect of the tax imposed by section 4091 shall, insofar as applicable and not inconsistent with this section, apply in respect of the payments provided for in this section to the same extent as if such payments constituted refunds of overpayments of the tax so imposed. “(2) Examination of books and witnesses.—For the purpose of ascertaining the correctness of any claim made under this section, or the correctness of any payment made in respect of any such claim, the Secretary or his delegate shall have the authority granted by paragraphs (1), (2), and (3) of section 7602 (relating to examination of books and witnesses) as if the claimant were the person liable for tax. “(e) Regulations.—The Secretary or his delegate may by regulations prescribe the conditions, not inconsistent with the provisions of this section, under which payments may be made under this section. “(f) Effective Date.—This section shall apply only with respect to lubricating oil placed in use after December 31, 1965. “(g) Income Tax Credit in Lieu of Payment.— “(1) Persons not subject to income tax.— Payment 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) Exception.—Paragraph (1) shall not apply to a payment of a claim filed under subsection (b)(2). 79 Stat. 139 “(3) Allowance of credit against income tax.— “For allowance of credit against the tax imposed by subtitle A for lubricating oil used, see section 39.” “(h) Cross References.— “(1) For civil penalty for excessive claims under this section, see section 6675. “(1) For fraud penalties etc., see chapter 75 (section 7201 and following, relating to crimes, other offenses, and forfeitures).” (c) Technical and Conforming Amendments.— (1) (A) Subpart B of part III of subchapter A of chapter 32 is amended by adding at the end thereof the following new section: “SEC. 4094. CROSS REFERENCE. “For provisions to relieve purchasers of lubricating oil from excise tax in the case of lubricating oil used otherwise than in a highway motor vehicle, see sections 39 and 6424.” (B) The table of sections for such subpart B is amended by adding at the end thereof the following: “Sec. 4094. Cross reference.” (2) (A) Section 6206 is amended— (i) by striking out “6420 AND 6421” in the heading and inserting in lieu thereof “6420, 6421, AND 6424”, (ii) by striking out “6420 or 6421” each place it appears in the text and inserting in lieu thereof “6420, 6421, or 6424”, and (iii) by inserting “(or, in the case of lubricating oil, by section 4091)” after “4081”. (B) The table of sections for subchapter A of chapter 63 is amended by striking out “6420 and 6421” and inserting in lieu thereof “6420, 6421, and 6424”. (3) (A) Section 6675 is amended— (i) by inserting “OR LUBRICATING OIL” after “GASOLINE” in the heading; (ii) by striking out “or” before 6421 in subsection (a) and inserting in lieu thereof a comma, and by inserting “, or 6424 (relating to lubricating. oil not used in highway motor vehicles)” in such subsection after “systems)”; (iii) by striking out “or 6421,” in subsection (b)(1) and inserting in lieu thereof “6421, or 6424,”. (B) The table of sections for subchapter B of chapter 68 is amended by striking out “certain gasoline” and inserting in lieu thereof “certain gasoline or lubricating oil”. (4) Sections 7210, 7603, and 7604, and the first sentence of section 7605(a), are each amended by inserting “6424(d)(2),” after “6421(f)(2),”. The second sentence of section 7605(a) is amended by striking out “or 6421(f)(2),” and inserting in lieu thereof “, 6421(f)(2), or 6424(d)(2),”.