Collapse to view only § 4611. Imposition of tax
§ 4611. Imposition of tax
(a) General RuleThere is hereby imposed a tax at the rate specified in subsection (c) on—
(1) crude oil received at a United States refinery, and
(2) petroleum products entered into the United States for consumption, use, or warehousing.
(b) Tax on certain uses and exportation
(1) In generalIf—
(A) any domestic crude oil is used in or exported from the United States, and
(B) before such use or exportation, no tax was imposed on such crude oil under subsection (a),
then a tax at the rate specified in subsection (c) is hereby imposed on such crude oil.
(2) Exception for use on premises where produced
(c) Rate of tax
(1) In generalThe rate of the taxes imposed by this section is the sum of—
(A) the Hazardous Substance Superfund financing rate, and
(B) the Oil Spill Liability Trust Fund financing rate.
(2) RatesFor purposes of paragraph (1)—
(A) the Hazardous Substance Superfund financing rate is 16.4 cents a barrel, and
(B) the Oil Spill Liability Trust Fund financing rate is—
(i) in the case of crude oil received or petroleum products entered before January 1, 2017, 8 cents a barrel, and
(ii) in the case of crude oil received or petroleum products entered after December 31, 2016, 9 cents a barrel.
(3) Adjustment for inflation
(A) In generalIn the case of a year beginning after 2023, the amount in paragraph (2)(A) shall be increased by an amount equal to—
(i) such amount, multiplied by
(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting “calendar year 2022” for “calendar year 2016” in subparagraph (A)(ii) thereof.
(B) Rounding
(d) Persons liable for tax
(1) Crude oil received at refinery
(2) Imported petroleum product
(3) Tax on certain uses or exports
[(e) Repealed. Pub. L. 117–169, title I, § 13601(a)(1), Aug. 16, 2022, 136 Stat. 1981]
(f) Application of Oil Spill Liability Trust Fund financing rate
(1) In general
(2) Termination
(Added Pub. L. 96–510, title II, § 211(a), Dec. 11, 1980, 94 Stat. 2797; amended Pub. L. 99–499, title V, §§ 511(a), 512(a), (b), Oct. 17, 1986, 100 Stat. 1760, 1761; Pub. L. 99–509, title VIII, § 8032(a), (c)(1), (2), Oct. 21, 1986, 100 Stat. 1957, 1958; Pub. L. 100–647, title VI, § 6108, Nov. 10, 1988, 102 Stat. 3712; Pub. L. 101–221, § 8(a), Dec. 12, 1989, 103 Stat. 1891; Pub. L. 101–239, title VII, § 7505(a), (b), Dec. 19, 1989, 103 Stat. 2363; Pub. L. 101–508, title XI, § 11231(a)(1)(B), (2), (b), Nov. 5, 1990, 104 Stat. 1388–445; Pub. L. 109–58, title XIII, § 1361, Aug. 8, 2005, 119 Stat. 1058; Pub. L. 110–343, div. B, title IV, § 405(a)(1), (b)(1), (2), Oct. 3, 2008, 122 Stat. 3860, 3861; Pub. L. 113–295, div. A, title II, § 221(a)(12)(I), Dec. 19, 2014, 128 Stat. 4039; Pub. L. 115–123, div. D, title I, § 40416(a), Feb. 9, 2018, 132 Stat. 152; Pub. L. 116–94, div. Q, title I, § 134(a), Dec. 20, 2019, 133 Stat. 3234; Pub. L. 116–260, div. EE, title I, § 117(a), Dec. 27, 2020, 134 Stat. 3051; Pub. L. 117–169, title I, § 13601(a), Aug. 16, 2022, 136 Stat. 1981.)
§ 4612. Definitions and special rules
(a) DefinitionsFor purposes of this subchapter—
(1) Crude oil
(2) Domestic crude oil
(3) Petroleum product
(4) United States
(A) In general
(B) United States includes continental shelf areas
(C) United States includes foreign trade zones
(5) United States refinery
(6) Refineries which produce natural gasoline
(7) Premises
(8) Barrel
(9) Fractional part of barrel
(b) Only 1 tax imposed with respect to any product
(c) Credit where crude oil returned to pipelineUnder regulations prescribed by the Secretary, if an operator of a United States refinery—
(1) removes crude oil from a pipeline, and
(2) returns a portion of such crude oil into a stream of other crude oil in the same pipeline,
there shall be allowed as a credit against the tax imposed by section 4611 to such operator an amount equal to the product of the rate of tax imposed by section 4611 on the crude oil so removed by such operator and the number of barrels of crude oil returned by such operator to such pipeline. Any crude oil so returned shall be treated for purposes of this subchapter as crude oil on which no tax has been imposed by section 4611.
(d) Credit against portion of tax attributable to oil spill rateThere shall be allowed as a credit against so much of the tax imposed by section 4611 as is attributable to the Oil Spill Liability Trust Fund financing rate for any period an amount equal to the excess of—
(1) the sum of—
(A) the aggregate amounts paid by the taxpayer before January 1, 1987, into the Deepwater Port Liability Trust Fund and the Offshore Oil Pollution Compensation Fund, and
(B) the interest accrued on such amounts before such date, over
(2) the amount of such payments taken into account under this subsection for all prior periods.
The preceding sentence shall also apply to amounts paid by the taxpayer into the Trans-Alaska Pipeline Liability Fund to the extent of amounts transferred from such Fund into the Oil Spill Liability Trust Fund. For purposes of this subsection, all taxpayers which would be members of the same affiliated group (as defined in section 1504(a)) if section 1504(a)(2) were applied by substituting “100 percent” for “80 percent” shall be treated as 1 taxpayer.
(e) Income tax credit for unused payments into Trans-Alaska Pipeline Liability Fund
(1) In general
(2) Determination of credit
(A) In general
(B) Limitation
(i) In generalThe amount of the credit determined under this subsection for any taxable year with respect to any taxpayer shall not exceed the excess of—(I) the amount determined under clause (ii), over(II) the aggregate amount of the credit determined under this subsection for prior taxable years with respect to such taxpayer.
(ii) Overall limitationThe amount determined under this clause with respect to any taxpayer is the excess of—(I) the aggregate amount of credit which would have been allowed under subsection (d) to the taxpayer for periods before the termination date specified in section 4611(f)(1), if amounts in the Trans-Alaska Pipeline Liability Fund which are actually transferred into the Oil Spill Liability Fund were transferred on January 1, 1990, and the Oil Spill Liability Trust Fund financing rate did not terminate before such termination date, over(II) the aggregate amount of the credit allowed under subsection (d) to the taxpayer.
(3) Cost of income tax credit borne by Trust Fund
(A) In general
(B) Trust Fund balance may not be reduced below $1,000,000,000
(4) No carryback
(f) Disposition of revenues from Puerto Rico and the Virgin Islands
(Added Pub. L. 96–510, title II, § 211(a), Dec. 11, 1980, 94 Stat. 2798; amended Pub. L. 99–499, title V, § 512(c), Oct. 17, 1986, 100 Stat. 1761; Pub. L. 99–509, title VIII, § 8032(b), Oct. 21, 1986, 100 Stat. 1957; Pub. L. 101–239, title VII, § 7505(c), Dec. 19, 1989, 103 Stat. 2363; Pub. L. 101–380, title IX, § 9002, Aug. 18, 1990, 104 Stat. 574; Pub. L. 102–486, title XIX, § 1922(a), Oct. 24, 1992, 106 Stat. 3028; Pub. L. 115–141, div. U, title IV, § 401(a)(223), Mar. 23, 2018, 132 Stat. 1194.)