‘‘(C) PERIOD FOR FILING CLAIMS, ETC.—
‘‘(i) IN GENERAL.—A claim may be
filed under this paragraph by any person
with respect to gasoline sold during any
period—
‘‘(I) for which $200 or more is
payable under this paragraph, and
‘‘(II) which is not less than 1
week.
‘‘(ii) PAYMENT OF CLAIM.—Notwith-
standing subsection (b), if the Secretary
has not paid pursuant to a claim filed
under this paragraph within 20 days after
the date of the filing of such claim, the
claim shall be paid with interest from such
date determined by using the overpayment
rate and method under section 6621.
‘‘(iii) TIME FOR FILING CLAIM.—No
claim filed under this paragraph shall be
allowed unless filed during the 1st quarter
following the last quarter included in the
claim.’’
SEC. 3. INTEREST PAYABLE ON REFUNDS OF TAXES ON
DIESEL FUEL AND AVIATION FUEL.
Paragraph (4) of section 6427(i) of the Internal Rev-
enue Code of 1986 is amended to read as follows:
‘‘(4) SPECIAL RULE FOR NONTAXABLE USES OF
DIESEL FUEL AND AVIATION FUEL.—
‘‘(A) IN GENERAL.—A claim may be filed
under subsection (l) by any person with respect
to fuel used by such person for any period—
‘‘(i) for which $250 or more is pay-
able under subsection (l), and
‘‘(ii) which is not less than 1 month.
‘‘(B) PAYMENT OF CLAIM.—Notwithstand-
ing subsection (l)(1), if the Secretary has not
paid pursuant to a claim filed under this para-
graph within 20 days after the date of the filing
of such claim, the claim shall be paid with in-
terest from such date determined by using the
overpayment rate and method under section
6621.
‘‘(C) TIME FOR FILING CLAIM.—No claim
filed under this paragraph shall be allowed un-
less filed during the 1st quarter following the
last quarter included in the claim.’’
SEC. 4. VENDOR REFUNDS FOR FUEL USED IN CERTAIN
BUSES AND AS HEATING OIL.
(a) CERTAIN BUSES.—
(1) IN
GENERAL.—Paragraph (1) of section
6427(b) of the Internal Revenue Code of 1986 is
amended to read as follows:
‘‘(1) ALLOWANCE.—Except as otherwise pro-
vided in this subsection and subsection (k), if—
‘‘(A) any fuel other than gasoline (as de-
fined in section 4083(a)) on the sale of which
tax was imposed by section 4041(a) or 4081 is
used in an automobile bus while engaged in—
‘‘(i) furnishing (for compensation)
passenger land transportation available to
the general public, or
‘‘(ii) the transportation of students
and employees of schools (as defined in the
last sentence of section 4221(d)(7)(C)),
and
‘‘(B) the ultimate vendor of such fuel
meets the requirements of clauses (i) and (ii) of
subsection (l)(5)(B),
the Secretary shall pay (without interest) to such ul-
timate vendor an amount equal to the product of the
number of gallons of such fuel so used multiplied by
the rate at which tax was imposed on such fuel by
section 4041(a) or 4081, as the case may be.’’
(2) REFUNDS WITH INTEREST.—Subparagraph
(A) of section 6427(i)(5) of such Code is amended—
(A) by inserting ‘‘(b) or’’ before ‘‘(l)(5)’’
the first place it appears,
(B) by striking ‘‘subsection (l)(5)’’ the sec-
ond place it appears and inserting ‘‘subsections
(b) and (l)(5)’’, and
(C) by striking ‘‘subsection (l)(1)’’ and in-
serting ‘‘subsections (b)(1) and (l)(1)’’.
(3) TECHNICAL AMENDMENTS.—
(A) 
Subparagraph 
(B) 
of 
section
6427(b)(2) of such Code is amended by striking
‘‘(1)(B)’’ and inserting ‘‘(1)(A)(ii)’’.
(B) Paragraph (3) of section 6427(b) of
such Code is amended by striking ‘‘(1)(A)’’ and
inserting ‘‘(1)(A)(i)’’.
(b) HEATING OIL.—Subparagraph (A) of section
6427(l)(5) of such Code is amended by striking ‘‘or’’ at
the end of clause (i), by striking the period at the end
of clause (ii) and inserting ‘‘, or’’, and by adding at the
end the following new clause:
‘‘(iii) as heating oil.’’
SEC. 5. DIESEL FUEL SOLD FOR USE OR USED IN DIESEL-
POWERED BOATS TAXED ONLY ON RETAIL
SALE.
(a) TAX-FREE SALES FOR USE IN DIESEL-POWERED
BOATS.—Subsection (b) of section 4082 of the Internal
Revenue Code of 1986 (relating to exemptions for diesel
fuel) is amended by striking ‘‘and’’ at the end of para-
graph (2), by striking the period at the end of paragraph
(3) and inserting ‘‘, and’’, and by adding at the end the
following new paragraph:
‘‘(4) any use in a diesel-powered boat.’’
(b) APPLICATION OF PENALTY AT RETAIL LEVEL.—
Paragraph (2) of section 6714(c) of such Code, as added
by section 13242 of the Omnibus Budget Reconciliation
Act of 1993, is amended to read as follows:
‘‘(2) NONTAXABLE USE.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), the term ‘nontaxable use’
has the meaning given such term by section
4082(b).
‘‘(B) EXCEPTION
FOR
TAXABLE
SALES
AND
USES
OF
FUEL
IN
DIESEL-POWERED
BOATS.—Subparagraph (A) shall not apply to
dyed fuel sold for use or used in a diesel-pow-
ered boat if tax is imposed on such sale or use
under 4041(a)(1) and such tax is not paid.’’