end of subparagraph (A), by redesignating sub-
paragraph (B) as subparagraph (C), and by in-
serting after subparagraph (A) the following
new subparagraph:
‘‘(B) in the case of fuel alcohol (as so de-
fined), any use which is exempt from the tax
imposed by section 4041(a)(2) other than by
reason of a prior imposition of tax, and’’.
(iii) The heading of subsection (l) of sec-
tion 6427 of such Code is amended by inserting
‘‘, FUEL ALCOHOL,’’ after ‘‘DIESEL FUEL’’.
(F) 
Sections 
9503(b)(1)(E) 
and
9508(b)(2) of such Code are each amended by
striking ‘‘and diesel fuel’’ and inserting ‘‘diesel
fuel, and fuel alcohol’’.
(G) Subsection (e) of section 9502 of such
Code is amended by striking paragraph (2).
(H) Subsection (f) of section 9502 of such
Code is amended by striking paragraph (2) and
by redesignating paragraph (3) as paragraph
(2).
(I) Subsection (b) of section 9503 of such
Code is amended by striking paragraph (5).
(J) Paragraph (3) of section 9503(f) of
such Code is amended to read as follows:
‘‘(3) PARTIALLY EXEMPT METHANOL OR ETHA-
NOL FUEL.—In the case of a rate of tax determined
under section 4041(m), the Highway Trust Fund fi-
nancing rate is the excess (if any) of the rate so de-
termined over—
‘‘(A) 5.55 cents per gallon after September
30, 1993, and before October 1, 1995, and
‘‘(B) 4.3 cents per gallon after September
30, 1995.’’
(d) EFFECTIVE DATES.—
(1) GENERAL
RULE.—Except as provided in
paragraph (2), the amendments made by this section
shall take effect on the date of the enactment of this
Act.
(2) ELIMINATION OF SECTION 40 CREDIT.—The
amendments made by subsection (a) shall apply to
alcohol produced after the date of the enactment of
this Act.
(e) FLOOR STOCK TAXES.—
(1) IMPOSITION OF TAX.—In the case of fuel al-
cohol which is held on the date of the enactment of
this Act by any person, there is hereby imposed a
floor stocks tax of 18.4 cents per gallon.
(2) LIABILITY FOR TAX AND METHOD OF PAY-
MENT.—
(A) LIABILITY FOR TAX.—A person hold-
ing fuel alcohol on the date of the enactment of
this Act to which the tax imposed by paragraph
(1) applies shall be liable for such tax.
(B) METHOD OF PAYMENT.—The tax im-
posed by paragraph (1) shall be paid in such
manner as the Secretary shall prescribe.
(C) TIME
FOR
PAYMENT.—The tax im-
posed by paragraph (1) shall be paid on or be-
fore the date which is 6 months after the date
of the enactment of this Act.
(3) DEFINITIONS.—For purposes of this sub-
section—
(A) FUEL ALCOHOL.—The term ‘‘fuel alco-
hol’’ has the meaning given such term by sec-
tion 4083 of the Internal Revenue Code of
1986, as amended by this section.
(B) HELD
BY
A
PERSON.—Fuel alcohol
shall be considered as ‘‘held by a person’’ if
title thereto has passed to such person (whether
or not delivery to the person has been made).
(C) SECRETARY.—The term ‘‘Secretary’’
means the Secretary of the Treasury or his del-
egate.
(4) EXCEPTION FOR EXEMPT USES.—The tax
imposed by paragraph (1) shall not apply to fuel al-
cohol held by any person exclusively for any use to
the extent a credit or refund of the tax imposed by
section 4081 of the Internal Revenue Code of 1986
is allowable for such use.
(5) EXCEPTION FOR FUEL HELD IN VEHICLE
TANK.—No tax shall be imposed by paragraph (1)
on fuel alcohol held in the tank of a motor vehicle
or motorboat.
(6) EXCEPTION
FOR
CERTAIN
AMOUNTS
OF
FUEL.—
(A) IN
GENERAL.—No tax shall be im-
posed by paragraph (1) on fuel alcohol held on
the date of the enactment of this Act by any
person if the aggregate amount of fuel alcohol
held by such person on such date does not ex-
ceed 2,000 gallons. The preceding sentence
shall apply only if such person submits to the
Secretary (at the time and in the manner re-
quired by the Secretary) such information as
the Secretary shall require for purposes of this
paragraph.
(B) EXEMPT FUEL.—For purposes of sub-
paragraph (A), there shall not be taken into ac-
count fuel held by any person which is exempt
from the tax imposed by paragraph (1) by rea-
son of paragraph (4) or (5).
(C) CONTROLLED GROUPS.—For purposes
of this paragraph—
(i) CORPORATIONS.—
(I) IN
GENERAL.—All persons
treated as a controlled group of cor-
porations shall be treated as 1 person.
(II) CONTROLLED
GROUP
OF
CORPORATIONS.—The 
term 
‘‘con-
trolled group of corporations’’ has the
meaning given to such term by sub-
section (a) of section 1563 of such
Code; except that for such purposes
the phrase ‘‘more than 50 percent’’
shall be substituted for the phrase ‘‘at
least 80 percent’’ each place it ap-
pears in such subsection.
(ii) 
NONINCORPORATED
PERSONS
UNDER COMMON CONTROL.—Under regula-
tions prescribed by the Secretary, prin-
ciples similar to the principles of clause (i)
shall apply to a group of persons under
common control where 1 or more of such
persons is not a corporation.
(7) OTHER LAWS APPLICABLE.—All provisions
of law, including penalties, applicable with respect to
the taxes imposed by section 4081 of such Code
shall, insofar as applicable and not inconsistent with
the provisions of this subsection, apply with respect
to the floor stock taxes imposed by paragraph (1) to
the same extent as if such taxes were imposed by
such section 4081.
Æ