1366
the end of subparagraph (B) and inserting ‘‘, and’’,
and by adding at the end thereof the following new
subparagraph:
‘‘(C) diesel fuel dyed in accordance with
section 4082.’’
(2) Paragraph (2) of section 6714(b), as added
by subpart A, is amended by striking ‘‘section 4441’’
and inserting ‘‘sections 4081 and 4441’’ and by
striking ‘‘such section’’ and inserting ‘‘such sec-
tions’’.
(c) T ECHNICAL AND CONFORMING AMENDMENTS.—
(1) Subsection (c) of section 40 is amended by
striking ‘‘, section 4081(c), or section 4091(c)’’ and
inserting ‘‘or section 4081(c)’’.
(2) Subsection (a) of section 4101 is amended
by striking ‘‘4081’’ and inserting ‘‘4041(a)(1),
4081,’’.
(3) Section 4102 is amended by striking ‘‘gaso-
line’’ and inserting ‘‘any taxable fuel (as defined in
section 4083)’’.
(4) Paragraph (1) of section 4041(a) is amend-
ed to read as follows:
‘‘(1) TAX
ON
DIESEL
FUEL
IN
CERTAIN
CASES.—
1367
‘‘(A) IN GENERAL.—There is hereby im-
posed a tax on any liquid other than gasoline
(as defined in section 4083)—
‘‘(i) sold by any person to an owner,
lessee, or other operator of a diesel-pow-
ered highway vehicle, a diesel-powered
train, or a diesel-powered boat for use as
a fuel in such vehicle, train, or boat, or
‘‘(ii) used by any person as a fuel in
a diesel-powered highway vehicle, a diesel-
powered train, or a diesel-powered boat un-
less there was a taxable sale of such fuel
under clause (i).
‘‘(B) E XEMPTION FOR PREVIOUSLY TAXED
FUEL.—No tax shall be imposed by this para-
graph on the sale or use of diesel fuel if there
was a taxable sale of such fuel under section
4081 and the tax thereon was not credited or
refunded.
‘‘(C) RATE OF TAX.—
‘‘(i) IN GENERAL.—Except as other-
wise provided in this subparagraph, the
rate of the tax imposed by this paragraph
shall be the sum of the Highway Trust
Fund financing rate on diesel fuel and the
1368
deficit reduction rate in effect under sec-
tion 4081 at the time of such sale or use.
‘‘(ii) HIGHWAY RATE NOT TO APPLY
TO TRAINS.—The Highway Trust Fund fi-
nancing rate shall not apply to any sale for
use, or use, of fuel in a train.
‘‘(iii) CERTAIN BUS USES.—If the lim-
itation in section 6427(b)(2)(A) applies to
fuel sold for use or used in an automobile
bus, the Highway Trust Fund financing
rate shall be 3 cents per gallon and the
deficit reduction rate shall not apply.’’
(5) Paragraph (2) of section 4041(a) is amend-
ed by striking ‘‘or paragraph (1) of this subsection’’
and by inserting ‘‘on gasoline’’ after ‘‘Highway
Trust Fund financing rate’’.
(6) Paragraph (2) of section 4041(c) is amend-
ed by striking ‘‘any product taxable under section
4081’’ and inserting ‘‘gasoline (as defined in section
4083)’’.
(7) Paragraph (2) of section 4041(d) is amend-
ed—
(A) by striking ‘‘(other than a product tax-
able under section 4081)’’ and inserting ‘‘(other
1369
than gasoline (as defined in section 4083))’’,
and
(B) by striking ‘‘section 4091’’ and insert-
ing ‘‘section 4081’’.
(8) Paragraph (3) of section 4041(d) is amend-
ed by striking ‘‘(other than any product taxable
under section 4081)’’ and inserting ‘‘(other than
gasoline (as defined in section 4083))’’.
(9) Subparagraph (A) of section 4041(k)(1) is
amended by striking ‘‘sections 4081(c) and 4091(c),
as the case may be’’ and inserting ‘‘section
4081(c)’’.
(10) Subparagraph (B) of section 4041(m)(1)
is amended by striking ‘‘section 4091(d)(1)’’ and in-
serting ‘‘section 4091(c)(1)’’.
(11) Section 6206 is amended by striking
‘‘4041 or 4091’’ and inserting ‘‘4041, 4081, or
4091’’.
(12) Paragraph (1) of section 6302(f) is
amended by inserting ‘‘on gasoline’’ after ‘‘section
4081’’ and after ‘‘such tax’’.
(13) Paragraph (1) of section 6412(a) is
amended by striking ‘‘gasoline’’ each place it ap-
pears (including the heading) and inserting ‘‘taxable
fuel’’.
1370
(14)(A) 
Subparagraph 
(A) 
of 
section
6416(a)(4) is amended by striking ‘‘product’’ each
place it appears and inserting ‘‘gasoline’’.
(B) Subparagraph (B) of section 6416(a)(4) is
amended by striking all that follows ‘‘substituting’’
and inserting ‘‘ ‘any gasoline taxable under section
4081’ for ‘aviation fuel’ therein).’’
(15) Sections 6420(c)(5) and 6421(e)(1) are
each amended by striking ‘‘section 4082(b)’’ and in-
serting ‘‘section 4083(a)’’.
(16) Subsection (b) of section 6427 is amend-
ed—
(A) by striking ‘‘if any fuel’’ in paragraph
(1) and inserting ‘‘if any diesel fuel (as defined
in section 4083(a))’’, and
(B) by striking ‘‘4091’’ each place it ap-
pears and inserting ‘‘4081’’.
(17)(A) Paragraph (1) of section 6427(f) is
amended 
by 
striking 
‘‘4091(c)(1)(A), 
or
4091(d)(1)(A)’’ and inserting ‘‘or 4091(c)(1)(A)’’.
(B) Paragraph (2) of section 6427(f) is amend-
ed to read as follows:
‘‘(2) DEFINITIONS.—For purposes of paragraph
(1)—
1371
‘‘(A) REGULAR TAX RATE.—The term ‘reg-
ular tax rate’ means—
‘‘(i) in the case of gasoline or diesel
fuel, the aggregate rate of tax imposed by
section 4081 determined without regard to
subsection (c) thereof, and
‘‘(ii) in the case of aviation fuel, the
aggregate rate of tax imposed by section
4091 determined without regard to sub-
section (c) thereof.
‘‘(B) INCENTIVE
TAX
RATE.—The term
‘incentive tax rate’ means—
‘‘(i) in the case of gasoline or diesel
fuel, the aggregate rate of tax imposed by
section 4081 with respect to fuel described
in subsection (c)(1) thereof, and
‘‘(ii) in the case of aviation fuel, the
aggregate rate of tax imposed by section
4091 with respect to fuel described in sub-
section (c)(1)(B) thereof.’’
(18) Subsection (h) of section 6427 is amended
by striking ‘‘section 4082(b)’’ and inserting ‘‘section
4083(a)(2)’’.
(19) Paragraph (3) of section 6427(i) is amend-
ed—
1372
(A) by striking ‘‘GASOHOL’’ in the heading
and inserting ‘‘ ALCOHOL MIXTURE’’, and
(B) by striking ‘‘gasoline used to produce
gasohol (as defined in section 4081(c)(1))’’ in
subparagraph (A) and inserting ‘‘gasoline or
diesel fuel used to produce a qualified alcohol
mixture (as defined in section 4081(c)(3))’’.
(20) The heading of paragraph (4) of section
6427(i) is amended by inserting ‘‘4081 OR’’ before
‘‘4091’’.
(21) Subsection (l) of section 6427 is amended
to read as follows:
‘‘(l) NONTAXABLE USES OF DIESEL FUEL AND AVIA-
TION FUEL.—
‘‘(1) I N GENERAL.—Except as provided in sub-
section (k) and in paragraphs (3) and (4) of this
subsection, if—
‘‘(A) any diesel fuel on which tax has been
imposed by section 4081, or
‘‘(B) any aviation fuel on which tax has
been imposed by section 4091,
is used by any person in a nontaxable use, the Sec-
retary shall pay (without interest) to the ultimate
purchaser of such fuel an amount equal to the ag-
1373
gregate amount of tax imposed on such fuel under
section 4081 or 4091, as the case may be.
‘‘(2) N ONTAXABLE USE.—For purposes of this
subsection, the term ‘nontaxable use’ means—
‘‘(A) in the case of diesel fuel, any use
which is exempt from the tax imposed by sec-
tion 4041(a)(1) other than by reason of the im-
position of tax on any sale thereof, and
‘‘(B) in the case of aviation fuel, any use
which is exempt from the tax imposed by sec-
tion 4041(c)(1) other than by reason of the im-
position of tax on any sale thereof.
‘‘(3) LIMIT ON REFUND OF LEAKING UNDER-
GROUND STORAGE TANK TRUST FUND FINANCING
RATE.—Paragraph (1) shall not apply to so much of
the tax imposed by section 4081 or 4091 as is at-
tributable to the Leaking Underground Storage
Tank Trust Fund financing rate imposed by such
section in the case of—
‘‘(A) fuel used in a diesel-powered train,
and
‘‘(B) fuel used in any aircraft (other than
as supplies for vessels or aircraft, within the
meaning of section 4221(d)(3)).
1390
‘‘(B) which is held in connection with the
conduct of a trade or business or an activity de-
scribed in section 212.
‘‘(2) EXCLUSION OF SELF-CREATED INTANGI-
BLES, ETC.—The term ‘amortizable section 197 in-
tangible’ shall not include any section 197 intangi-
ble—
‘‘(A) which is not described in subpara-
graph (D), (E), or (F) of subsection (d)(1), and
‘‘(B) which is created by the taxpayer.
This paragraph shall not apply if the intangible is
created in connection with a transaction (or series of
related transactions) involving the acquisition of as-
sets constituting a trade or business or substantial
portion thereof.
‘‘(3) ANTI-CHURNING RULES.—
‘‘For exclusion of intangibles acquired in certain
transactions, see subsection (f)(9).
‘‘(d) SECTION 197 I NTANGIBLE.—For purposes of
this section—
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this section, the term ‘section 197 intangi-
ble’ means—
‘‘(A) goodwill,
‘‘(B) going concern value,
‘‘(C) any of the following intangible items: