USC Subchapter A

26 U.S.C. § 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 producedParagraph (1) shall not apply to any use of crude oil for extracting oil or natural gas on the premises where such crude oil was 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) RoundingIf any amount as adjusted under subparagraph (A) is not a multiple of $0.01, such amount shall be rounded to the next lowest multiple of $0.01. (d) Persons liable for tax(1) Crude oil received at refineryThe tax imposed by subsection (a)(1) shall be paid by the operator of the United States refinery. (2) Imported petroleum productThe tax imposed by subsection (a)(2) shall be paid by the person entering the product for consumption, use, or warehousing. (3) Tax on certain uses or exportsThe tax imposed by subsection (b) shall be paid by the person using or exporting the crude oil, as the case may be. [(e) Repealed.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 generalExcept as provided in paragraph (2), the Oil Spill Liability Trust Fund financing rate under subsection (c) shall apply on and after April 1, 2006, or if later, the date which is 30 days after the last day of any calendar quarter for which the Secretary estimates that, as of the close of that quarter, the unobligated balance in the Oil Spill Liability Trust Fund is less than $2,000,000,000. (2) TerminationThe Oil Spill Liability Trust Fund financing rate shall not apply after December 31, 2025.

26 U.S.C. § 4612 Definitions and special rules

(a) DefinitionsFor purposes of this subchapter—(1) Crude oilThe term “crude oil” includes crude oil condensates and natural gasoline. (2) Domestic crude oilThe term “domestic crude oil” means any crude oil produced from a well located in the United States. (3) Petroleum productThe term “petroleum product” includes crude oil. (4) United States(A) In generalThe term “United States” means the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, any possession of the United States, the Commonwealth of the Northern Mariana Islands, and the Trust Territory of the Pacific Islands. (B) United States includes continental shelf areasThe principles of section 638 shall apply for purposes of the term “United States”. (C) United States includes foreign trade zonesThe term “United States” includes any foreign trade zone of the United States. (5) United States refineryThe term “United States refinery” means any facility in the United States at which crude oil is refined. (6) Refineries which produce natural gasolineIn the case of any United States refinery which produces natural gasoline from natural gas, the gasoline so produced shall be treated as received at such refinery at the time so produced. (7) PremisesThe term “premises” has the same meaning as when used for purposes of determining gross income from the property under section 613. (8) BarrelThe term “barrel” means 42 United States gallons. (9) Fractional part of barrelIn the case of a fraction of a barrel, the tax imposed by section 4611 shall be the same fraction of the amount of such tax imposed on a whole barrel. (b) Only 1 tax imposed with respect to any productNo tax shall be imposed by section 4611 with respect to any petroleum product if the person who would be liable for such tax establishes that a prior tax imposed by such section has been imposed with respect to such 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 generalFor purposes of section 38, the current year business credit shall include the credit determined under this subsection. (2) Determination of credit(A) In generalThe credit determined under this subsection for any taxable year is an amount equal to the aggregate credit which would be allowed to the taxpayer under subsection (d) for amounts paid into the Trans-Alaska Pipeline Liability Fund had the Oil Spill Liability Trust Fund financing rate not ceased to apply. (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 generalThe Secretary shall from time to time transfer from the Oil Spill Liability Trust Fund to the general fund of the Treasury amounts equal to the credits allowed by reason of this subsection. (B) Trust Fund balance may not be reduced below $1,000,000,000Transfers may be made under subparagraph (A) only to the extent that the unobligated balance of the Oil Spill Liability Trust Fund exceeds $1,000,000,000. If any transfer is not made by reason of the preceding sentence, such transfer shall be made as soon as permitted under such sentence. (4) No carrybackNo portion of the unused business credit for any taxable year which is attributable to the credit determined under this subsection may be carried to a taxable year beginning on or before the date of the enactment of this paragraph. (f) 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 section 4611.