(a) Ozone-depleting chemicalFor purposes of this subchapter—(1) In generalThe term “ozone-depleting chemical” means any substance—(A) which, at the time of the sale or use by the manufacturer, producer, or importer, is listed as an ozone-depleting chemical in the table contained in paragraph (2), and (B) which is manufactured or produced in the United States or entered into the United States for consumption, use, or warehousing. (2) Ozone-depleting chemicals Common name:Chemical nomenclature: CFC–11 trichlorofluoromethane CFC–12 dichlorodifluoromethane CFC–113 trichlorotrifluoroethane CFC–114 1,2-dichloro-1,1,2,2-tetra- fluoroethane CFC–115 chloropentafluoroethane Halon-1211 bromochlorodifluoro- methane Halon-1301 bromotrifluoromethane Halon-2402 dibromotetrafluoroethane Carbon tetrachloride Tetrachloromethane Methyl chloroform 1,1,1-trichloroethane CFC–13 CF3Cl CFC–111 C2FCl5 CFC–112 C2F2Cl4 CFC–211 C3FCl7 CFC–212 C3F2Cl6 CFC–213 C3F3Cl5 CFC–214 C3F4Cl4 CFC–215 C3F5Cl3 CFC–216 C3F6Cl2 CFC–217 C3F7Cl.
(b) Ozone-depletion factorFor purposes of this subchapter, the term “ozone-depletion factor” means, with respect to an ozone-depleting chemical, the factor assigned to such chemical under the following table: Ozone-depleting chemical:Ozone-depletion factor: CFC–111.0 CFC–121.0 CFC–1130.8 CFC–1141.0 CFC–1150.6 Halon-12113.0 Halon-130110.0 Halon-24026.0 Carbon tetrachloride1.1 Methyl chloroform0.1 CFC–131.0 CFC–1111.0 CFC–1121.0 CFC–2111.0 CFC–2121.0 CFC–2131.0 CFC–2141.0 CFC–2151.0 CFC–2161.0 CFC–2171.0.
(c) Imported taxable productFor purposes of this subchapter—(1) In generalThe term “imported taxable product” means any product (other than an ozone-depleting chemical) entered into the United States for consumption, use, or warehousing if any ozone-depleting chemical was used as material in the manufacture or production of such product. (2) De minimis exceptionThe term “imported taxable product” shall not include any product specified in regulations prescribed by the Secretary as using a de minimis amount of ozone-depleting chemicals as materials in the manufacture or production thereof. The preceding sentence shall not apply to any product in which any ozone-depleting chemical (other than methyl chloroform) is used for purposes of refrigeration or air conditioning, creating an aerosol or foam, or manufacturing electronic components.
(d) Exceptions(1) RecyclingNo tax shall be imposed by section 4681 on any ozone-depleting chemical which is diverted or recovered in the United States as part of a recycling process (and not as part of the original manufacturing or production process), or on any recycled Halon-1301 or recycled Halon-2402 imported from any country which is a signatory to the Montreal Protocol on Substances that Deplete the Ozone Layer. (2) Use in further manufacture(A) In generalNo tax shall be imposed by section 4681—(i) on the use of any ozone-depleting chemical in the manufacture or production of any other chemical if the ozone-depleting chemical is entirely consumed in such use, (ii) on the sale by the manufacturer, producer, or importer of any ozone-depleting chemical—(I) for a use by the purchaser which meets the requirements of clause (i), or (II) for resale by the purchaser to a second purchaser for a use by the second purchaser which meets the requirements of clause (i). Clause (ii) shall apply only if the manufacturer, producer, and importer, and the 1st and 2d purchasers (if any), meet such registration requirements as may be prescribed by the Secretary. (B) Credit or refundUnder regulations prescribed by the Secretary, if—(i) a tax under this subchapter was paid with respect to any ozone-depleting chemical, and (ii) such chemical was used (and entirely consumed) by any person in the manufacture or production of any other chemical, then an amount equal to the tax so paid shall be allowed as a credit or refund (without interest) to such person in the same manner as if it were an overpayment of tax imposed by section 4681. (3) Exports(A) In generalExcept as provided in subparagraph (B), rules similar to the rules of section 4662(e) (other than section 4662(e)(2)(A)(ii)(II)) shall apply for purposes of this subchapter. (B) Limit on benefit(i) In generalThe aggregate tax benefit allowable under subparagraph (A) with respect to ozone-depleting chemicals manufactured, produced, or imported by any person during a calendar year shall not exceed the sum of—(I) the amount equal to the 1986 export percentage of the aggregate tax which would (but for this subsection and subsection (g)) be imposed by this subchapter with respect to the maximum quantity of ozone-depleting chemicals permitted to be manufactured or produced by such person during such calendar year under regulations prescribed by the Environmental Protection Agency (other than chemicals with respect to which subclause (II) applies), (II) the aggregate tax which would (but for this subsection and subsection (g)) be imposed by this subchapter with respect to any additional production allowance granted to such person with respect to ozone-depleting chemicals manufactured or produced by such person during such calendar year by the Environmental Protection Agency under 40 CFR Part 82 (as in effect on September 14, 1989), and (III) the aggregate tax which was imposed by this subchapter with respect to ozone-depleting chemicals imported by such person during the calendar year. (ii) 1986 export percentageA person’s 1986 export percentage is the percentage equal to the ozone-depletion factor adjusted pounds of ozone-depleting chemicals manufactured or produced by such person during 1986 which were exported during 1986, divided by the ozone-depletion factor adjusted pounds of all ozone-depleting chemicals manufactured or produced by such person during 1986. The percentage determined under the preceding sentence shall be computed by taking into account the sum of such person’s direct 1986 exports (as determined by the Environmental Protection Agency) and such person’s indirect 1986 exports (as allocated to such person by such Agency in determining such person’s consumption and production rights for ozone-depleting chemicals). (C) Separate application of limit for newly listed chemicals(i) In generalSubparagraph (B) shall be applied separately with respect to newly listed chemicals and other chemicals. (ii) Application to newly listed chemicalsIn applying subparagraph (B) to newly listed chemicals—(I) subparagraph (B) shall be applied by substituting “1989” for “1986” each place it appears, and (II) clause (i)(II) thereof shall be applied by substituting for the regulations referred to therein any regulations (whether or not prescribed by the Secretary) which the Secretary determines are comparable to the regulations referred to in such clause with respect to newly listed chemicals. (iii) Newly listed chemicalFor purposes of this subparagraph, the term “newly listed chemical” means any substance which appears in the table contained in subsection (a)(2) below Halon-2402.
(e) Other definitionsFor purposes of this subchapter—(1) ImporterThe term “importer” means the person entering the article for consumption, use, or warehousing. (2) United StatesThe term “United States” has the meaning given such term by section 4612(a)(4).
(f) Special rules(1) Fractional parts of a poundIn the case of a fraction of a pound, the tax imposed by this subchapter shall be the same fraction of the amount of such tax imposed on a whole pound. (2) Disposition of revenues from Puerto Rico and the Virgin IslandsThe provisions of subsections (a)(3) and (b)(3) of section 7652 shall not apply to any tax imposed by this subchapter.
(g) Chemicals used as propellants in metered-dose inhalers(1) Exemption from tax(A) In generalNo tax shall be imposed by section 4681 on—(i) any use of any substance as a propellant in metered-dose inhalers, or (ii) any qualified sale by the manufacturer, producer, or importer of any substance. (B) Qualified saleFor purposes of subparagraph (A), the term “qualified sale” means any sale by the manufacturer, producer, or importer of any substance—(i) for use by the purchaser as a propellant in metered dose inhalers, or (ii) for resale by the purchaser to a 2d purchaser for such use by the 2d purchaser. The preceding sentence shall apply only if the manufacturer, producer, and importer, and the 1st and 2d purchasers (if any) meet such registration requirements as may be prescribed by the Secretary. (2) OverpaymentsIf any substance on which tax was paid under this subchapter is used by any person as a propellant in metered-dose inhalers, credit or refund without interest shall be allowed to such person in an amount equal to the tax so paid. Amounts payable under the preceding sentence with respect to uses during the taxable year shall be treated as described in section 34(a) for such year unless claim thereof has been timely filed under this paragraph.
(h) Imposition of floor stocks taxes(1) In general(A) In generalIf, on any tax-increase date, any ozone-depleting chemical is held by any person (other than the manufacturer, producer, or importer thereof) for sale or for use in further manufacture, there is hereby imposed a floor stocks tax. (B) Amount of taxThe amount of the tax imposed by subparagraph (A) shall be the excess (if any) of—(i) the tax which would be imposed under section 4681 on such substance if the sale of such chemical by the manufacturer, producer, or importer thereof had occurred on the tax-increase date, over (ii) the prior tax (if any) imposed by this subchapter on such substance. (C) Tax-increase dateFor purposes of this paragraph, the term “tax-increase date” means January 1 of any calendar year. (2) Due dateThe taxes imposed by this subsection on January 1 of any calendar year shall be paid on or before June 30 of such year. (3) Application of other lawsAll other provisions of law, including penalties, applicable with respect to the taxes imposed by section 4681 shall apply to the floor stocks taxes imposed by this subsection.
