467 
1986 on the article if the article had been re-
moved on such date, over 
(B) the prior tax (if any) imposed under 
section 5701 of such Code on such article. 
(2) AUTHORITY TO EXEMPT CIGARETTES HELD 
IN VENDING MACHINES.—To the extent provided in 
regulations prescribed by the Secretary, no tax shall 
be imposed by paragraph (1) on cigarettes held for re-
tail sale on January 1, 2008, by any person in any 
vending machine. If the Secretary provides such a 
benefit with respect to any person, the Secretary may 
reduce the $500 amount in paragraph (3) with re-
spect to such person. 
(3) CREDIT AGAINST TAX.—Each person shall be 
allowed as a credit against the taxes imposed by 
paragraph (1) an amount equal to $500. Such credit 
shall not exceed the amount of taxes imposed by para-
graph (1) for which such person is liable. 
(4) LIABILITY FOR TAX AND METHOD OF PAY-
MENT.— 
(A) LIABILITY FOR TAX.—A person holding 
cigarettes on January 1, 2008, to which any tax 
imposed by paragraph (1) applies shall be liable 
for such tax. 
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468 
(B) METHOD OF PAYMENT.—The tax im-
posed by paragraph (1) shall be paid in such 
manner as the Secretary shall prescribe by regu-
lations. 
(C) TIME FOR PAYMENT.—The tax imposed 
by paragraph (1) shall be paid on or before 
April 14, 2008. 
(5) ARTICLES
IN
FOREIGN
TRADE
ZONES.—- 
Notwithstanding the Act of June 18, 1934 (48 Stat. 
998, 19 U.S.C. 81a) and any other provision of law, 
any article which is located in a foreign trade zone 
on January 1, 2008, shall be subject to the tax im-
posed by paragraph (1) if— 
(A) internal revenue taxes have been deter-
mined, or customs duties liquidated, with respect 
to such article before such date pursuant to a re-
quest made under the 1st proviso of section 3(a) 
of such Act, or 
(B) such article is held on such date under 
the supervision of a customs officer pursuant to 
the 2d proviso of such section 3(a). 
(6) DEFINITIONS.—For purposes of this sub-
section— 
(A) IN GENERAL.—Terms used in this sub-
section which are also used in section 5702 of the 
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469 
Internal Revenue Code of 1986 shall have the re-
spective meanings such terms have in such sec-
tion. 
(B) SECRETARY.—The term ‘‘Secretary’’ 
means the Secretary of the Treasury or the Sec-
retary’s delegate. 
(7) CONTROLLED GROUPS.—Rules similar to the 
rules of section 5061(e)(3) of such Code shall apply 
for purposes of this subsection. 
(8) OTHER LAWS APPLICABLE.—All provisions of 
law, including penalties, applicable with respect to 
the taxes imposed by section 5701 of such Code shall, 
insofar as applicable and not inconsistent with the 
provisions of this subsection, apply to the floor stocks 
taxes imposed by paragraph (1), to the same extent 
as if such taxes were imposed by such section 5701. 
The Secretary may treat any person who bore the ul-
timate burden of the tax imposed by paragraph (1) 
as the person to whom a credit or refund under such 
provisions may be allowed or made. 
SEC. 1002. EXEMPTION FOR EMERGENCY MEDICAL SERV-
ICES TRANSPORTATION. 
(a) IN GENERAL.—Subsection (l) of section 4041 of the 
Internal Revenue Code of 1986 is amended to read as fol-
lows: 
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470 
‘‘(l) EXEMPTION FOR CERTAIN USES.— 
‘‘(1) CERTAIN AIRCRAFT.—No tax shall be im-
posed under this section on any liquid sold for use in, 
or used in, a helicopter or a fixed-wing aircraft for 
purposes of providing transportation with respect to 
which the requirements of subsection (f) or (g) of sec-
tion 4261 are met. 
‘‘(2) EMERGENCY MEDICAL SERVICES.—No tax 
shall be imposed under this section on any liquid sold 
for use in, or used in, any ambulance for purposes of 
providing transportation for emergency medical serv-
ices. The preceding sentence shall not apply to any 
liquid used after December 31, 2012.’’. 
(b) FUELS NOT USED FOR TAXABLE PURPOSES.—Sec-
tion 6427 of such Code is amended by inserting after sub-
section (e) the following new subsection: 
‘‘(f) USE TO PROVIDE EMERGENCY MEDICAL SERV-
ICES.—Except as provided in subsection (k), if any fuel on 
which tax was imposed by section 4081 or 4041 is used 
in an ambulance for a purpose described in section 
4041(l)(2), the Secretary shall pay (without interest) to the 
ultimate purchaser of such fuel an amount equal to the ag-
gregate amount of the tax imposed on such fuel. The pre-
ceding sentence shall not apply to any liquid used after De-
cember 31, 2012.’’. 
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471 
(c) TIME FOR FILING CLAIMS; PERIOD COVERED.— 
Paragraphs (1) and (2)(A) of section 6427(i) of such Code 
are each amended by inserting ‘‘(f),’’ after ‘‘(d),’’. 
(d) CONFORMING AMENDMENT.—Section 6427(d) of 
such Code is amended by striking ‘‘4041(l)’’ and inserting 
‘‘4041(l)(1)’’. 
(e) EFFECTIVE DATE.—The amendments made by this 
section shall apply to fuel used in transportation provided 
in quarters beginning after the date of the enactment of this 
Act. 
Æ 
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