TAX-FREE PURCHASES OF CERTAIN FUELS.

SEC. 3001. TAX-FREE PURCHASES OF CERTAIN FUELS. (a) In General.— Subsection (c) of section 4093 of the 1986 Code (relating to exceptions; special rule) is amended to read as follows: “(c) Exemption for Nontaxable Uses and Bus Uses.— “(1) In general.— No tax shall be imposed by section 4091 on fuel sold by a producer or importer for use by the purchaser in a nontaxable use (as defined in section 6427(1)(2)) or a use described in section 6427(b)(1). “(2) Exceptions.— “(A) Certain leaking underground storage tank trust fund taxes.— In the case of fuel sold for use in— “(i) a diesel-powered train, and “(ii) an aircraft, paragraph (1) shall not apply to so much of the tax imposed by section 4091 as is attributable to the Leaking Under-ground Storage Tank Trust Fund financing rate imposed by such section. “(B) Certain bus uses.— Paragraph (1) shall not apply to so much of the tax imposed by section 4091 as is not refundable by reason of the application of section 6427(b)(2)(A). “(3) Registration required.— Except to the extent provided by the Secretary, paragraph (1) shall not apply to any sale unless— “(A) both the seller and the purchaser are registered under section 4101, and “(B) the purchaser’s name, address, and registration number under such section are provided to the seller. “(4) Information reporting.— “(A) Returns by producers and importers.— Each producer or importer who makes a reduced-tax sale during the calendar year shall make a return (at such time and in such form as the Secretary may by regulations prescribe) showing with respect to each such sale— 102 STAT. 3614 “(i) the name, address, and registration number under section 4101 of the purchaser, “(ii) the amount of fuel sold, and “(iii) such other information as the Secretary may require. “(B) Statements to purchasers.— Every person required to make a return under subparagraph (A) shall furnish to each purchaser whose name is required to be set forth on such return a written statement showing the name and address of the person required to make such return, the registration number under section 4101 of such person, and the information required to be shown on the return with respect to such purchaser. The written statement required under the preceding sentence shall be furnished to the purchaser on or before January 31 of the year following the calendar year for which the return under subparagraph (A) is required to be made. “(C) Returns by purchasers.— Each person who uses during the calendar year fuel purchased in a reduced-tax sale shall make a return (at such time and In such form as the Secretary may by regulations prescribe) showing— “(i) whether such use was a nontaxable use (as defined in section 6427(1)(2)) or a use described in section 6427(b)(1) and the amount of fuel so used, “(ii) the date of the sale of the fuel so used, “(iii) the name, address, and registration number under section 4101 of the seller, and “(iv) such other information as the Secretary may require. “(D) Reduced-tax sale.— For purposes of this paragraph, the term ‘reduced tax sale’ means any sale of taxable fuel on which the amount of tax otherwise required to be paid under section 4091 is reduced by reason of paragraph (1) (other than sales described in subsections (a) and (b) of this section).” (b) Penalty for Failing to Provide Information.— (1) Subparagraph (B) of section 67 24(d)(1) of the 1986 Code (defining information return) is amended by striking out “or” at the end of clause (ix), by striking out the period at the end of clause (x) and inserting in lieu thereof “, or”, and by adding at the end thereof the following new clause: “(xi) subparagraph (A) or (C) of subsection (c)(4), or subsection (d), of section 4093 (relating to information reporting with respect to tax on diesel and aviation fuels).” (2) Paragraph (2) of section 6724(d) of the 1986 Code (defining payee statement) is amended by striking out “or” at the end of subparagraph (S), by striking out the period at the end of subparagraph (T) and inserting in lieu thereof “, or”, and by adding at the end thereof the following new subparagraph: “(U) section 4093(c)(4)(B) (relating to certain purchasers of diesel and aviation fuels).” (3) (A) The text of section 7232 of the 1986 Code is amended by striking out “or lubricating oil” and inserting in lieu thereof “, lubricating oil, diesel fuel, or aviation fuel”. (B) The heading for section 7232 of the 1986 Code is amended by striking out “OK LUBRICATING OIL” and inserting in lieu102 STAT. 3615 thereof “, LUBRICATING OIL, DIESEL FUEL, OR AVIATION FUEL” (C) The table of sections for part II of subchapter A of chapter 75 of the 1986 Code is amended by striking out “or lubricating oil” in the item relating to section 7232 and inserting in lieu thereof“, lubricating oil, diesel fuel, or aviation fuel”. (c) Effective Date.— (1) In general.— The amendments made by this section shall take effect on January 1, 1989. (2) Refunds with interest for preeffective date purchases.— (A) In general.— In the case of fuel— (i) which is purchased from a producer or importer during the period beginning on April 1, 1988, and ending on December 31, 1988, (ii) which is used (before the claim under this subparagraph is filed) by any person in a nontax able use (as defined in section 6427(l)(2)) of the 1986 Code), and (iii) with respect to which a claim is not permitted to be filed for any quarter under section 6427(i) of the 1986 Code, the Secretary of the Treasury or the Secretary’s delegate shall pay (with interest) to such person the amount of tax imposed on such fuel under section 4091 of the 1986 Code (to the extent not attributable to amounts described in section 6427(1)(3) of the 1986 Code) if claim therefor is filed not later than June 30, 1989. Not more than 1 claim may be filed under the preceding sentence and such claim shall not be taken into account under section 6427(i) of the 1986 Code. Any claim for refund filed under this paragraph shall be considered a claim for refund under section 6427(1) of the 1986 Code. (B) Interest.— The amount of interest payable under subparagraph (A) shall be determined under section 6611 of the 1986 Code except that the date of the overpayment with respect to fuel purchased during any month shall be treated as being the 1st day of the succeeding month. No interest shall be paid under this paragraph with respect to fuel used by any agency of the United States. (C) Registration procedures required to be specified.— Not later than the 30th day after the date of the enactment of this Act, the Secretary of the Treasury or the Secretary’s delegate shall prescribe the procedures for complying with the requirements of section 4093(c)(3) of the 1986 Code (as added by this section).