REFUNDS OF EXCISE TAXES ON EXEMPT SALES OF FUEL BY CREDIT CARD.

SEC. 11163. REFUNDS OF EXCISE TAXES ON EXEMPT SALES OF FUEL BY CREDIT CARD.(a) Registration of Person Extending Credit on Certain Exempt Sales of Fuel.—Section 4101(a) (relating to registration) is amended by adding at the end the following new paragraph:“(4) Registration of persons extending credit on certain exempt sales of fuel.—The Secretary shall require registration by any person which—“(A) extends credit by credit card to any ultimate purchaser described in subparagraph (C) or (D) of section 6416(b)(2) for the purchase of taxable fuel upon which tax has been imposed under section 4041 or 4081, and“(B) does not collect the amount of such tax from such ultimate purchaser.”.(b) Refunds of Tax on Gasoline.—(1) In general.—Paragraph (4) of section 6416(a) (relating to condition to allowance) is amended—(A) by inserting “except as provided in subparagraph (B),” after “For purposes of this subsection,” in subparagraph (A),(B) by redesignating subparagraph (B) as subparagraph (C) and by inserting after subparagraph (A) the following new subparagraph:“(B) Credit card issuer.—For purposes of this subsection, if the purchase of gasoline described in subparagraph (A) (determined without regard to the registration status of the ultimate vendor) is made by means of a credit card issued to the ultimate purchaser, paragraph (1) shall not apply and the person extending the credit to the ultimate purchaser shall be treated as the person (and the only person) who paid the tax, but only if such person—“(i) is registered under section 4101, “(ii) has established, under regulations prescribed by the Secretary, that such person—119 STAT. 1974“(I) has not collected the amount of the tax from the person who purchased such article, or“(II) has obtained the written consent from the ultimate purchaser to the allowance of the credit or refund, and“(iii) has so established that such person—“(I) has repaid or agreed to repay the amount of the tax to the ultimate vendor,“(II) has obtained the written consent of the ultimate vendor to the allowance of the credit or refund, or“(III) has otherwise made arrangements which directly or indirectly provides the ultimate vendor with reimbursement of such tax.If clause (i), (ii), or (iii) is not met by such person extending the credit to the ultimate purchaser, then such person shall collect an amount equal to the tax from the ultimate purchaser and only such ultimate purchaser may claim such credit or payment.”,(C) by striking “subparagraph (A)” in subparagraph (C), as redesignated by paragraph (2), and inserting “subparagraph (A) or (B)”,(D) by inserting “or credit card issuer” after “vendor” in subparagraph (C), as so redesignated, and(E) by inserting “or credit card issuer” after “vendor” in the heading thereof.(2) Conforming amendment.—Section 6416(b)(2) is amended by adding at the end the following new sentence: “Subparagraphs (C) and (D) shall not apply in the case of any tax imposed on gasoline under section 4081 if the requirements of subsection (a)(4) are not met.”.(c) Diesel Fuel or Kerosene.—Paragraph (6) of section 6427(l) (relating to nontaxable uses of diesel fuel and kerosene), as redesignated by section 11161, is amended—(1) by striking “The amount” in subparagraph (C) and inserting “Except as provided in subparagraph (D), the amount”, and(2) by adding at the end the following new subparagraph:“(D) Credit card issuer.—For purposes of this paragraph, if the purchase of any fuel described in subparagraph (A) (determined without regard to the registration status of the ultimate vendor) is made by means of a credit card issued to the ultimate purchaser, the Secretary shall pay to the person extending the credit to the ultimate purchaser the amount which would have been paid under paragraph (1) (but for subparagraph (A)), but only if such person meets the requirements of clauses (i), (ii), and (iii) of section 6416(a)(4)(B). If such clause (i), (ii), or (iii) is not met by such person extending the credit to the ultimate purchaser, then such person shall collect an amount equal to the tax from the ultimate purchaser and only such ultimate purchaser may claim such amount.”.(d) Conforming Penalty Amendments.—(1) Section 6206 (relating to special rules applicable to excessive claims under sections 6420, 6421, and 6427) is amended—119 STAT. 1975(A) by striking “Any portion” in the first sentence and inserting “Any portion of a refund made under section 6416(a)(4) and any portion”,(B) by striking “payments under sections 6420” in the first sentence and inserting “refunds under section 6416(a)(4) and payments under sections 6420”,(C) by striking “section 6420” in the second sentence and inserting “section 6416(a)(4), 6420”, and(D) by striking “sections 6420, 6421, and 6427” in the heading thereof and inserting “certain sections”.(2) Section 6675(a) is amended by inserting “section 6416(a)(4) (relating to certain sales of gasoline),” after “made under”.(3) Section 6675(b)(1) is amended by inserting “6416(a)(4),” after “under section”.(4) The item relating to section 6206 in the table of sections for subchapter A of chapter 63 is amended by striking “sections 6420, 6421, and 6427” and inserting “certain sections”.(e) Effective Date.—The amendments made by this section shall apply to sales after December 31, 2005.