ALLOWANCE OR CREDIT OF REFUND FOR TAX-PAID AVIATION FUEL PURCHASED BY REGISTERED PRODUCER OF AVIATION FUEL.

SEC. 1436. ALLOWANCE OR CREDIT OF REFUND FOR TAX-PAID AVIATION FUEL PURCHASED BY REGISTERED PRODUCER OF AVIATION FUEL. (a) In General.—Section 4091 (relating to aviation fuel) is amended by adding at the end the following new subsection: “(d) Refund of Tax-Paid Aviation Fuel to Registered Producer of Fuel.—If— “(1) a producer of aviation fuel is registered under section 4101, and “(2) such producer establishes to the satisfaction of the Secretary that a prior tax was paid (and not credited or refunded) on aviation fuel held by such producer, then an amount equal to the tax so paid shall be allowed as a refund (without interest) to such producer in the same manner as if it were an overpayment of tax imposed by this section.”. (b) Conforming Amendment.—The last sentence of section 6416(d) is amended by inserting before the period “or to the tax imposed by section 4091 in the case of refunds described in section 4091(d)”. (c) Effective Date.—The amendments made by this section shall apply to fuel acquired by the producer after September 30, 1997.