CREDIT FOR TIRE TAX IN LIEU OF EXCLUSION OF VALUE OF TIRES IN COMPUTING PRICE.

SEC. 1402. CREDIT FOR TIRE TAX IN LIEU OF EXCLUSION OF VALUE OF TIRES IN COMPUTING PRICE. (a) In General.—Subsection (e) of section 4051 is amended to read as follows: “(e) Credit Against Tax for Tire Tax.—If— “(1) tires are sold on or in connection with the sale of any article, and “(2) tax is imposed by this subchapter on the sale of such tires, there shall be allowed as a credit against the tax imposed by this subchapter an amount equal to the tax (if any) imposed by section 4071 on such tires.”. (b) Conforming Amendment.—Subparagraph (B) of section 4052(b)(1) is amended by striking clause (iii), by adding “and” at the end of clause (ii), and by redesignating clause (iv) as clause (iii). (c) Effective Date.—The amendments made by this section shall take effect on January 1, 1998.