(D) Paragraph (2) of section 6427(k) of
such Code is amended by striking ‘‘(3),’’.
(E)(i) Paragraph (1) of section 6427(l) of
such Code is amended by striking ‘‘or’’ at the
end of subparagraph (A), by redesignating sub-
paragraph (B) as subparagraph (C), and by in-
serting after subparagraph (A) the following
new subparagraph:
‘‘(B) any fuel alcohol (as defined in section
4083) on which tax has been imposed by sec-
tion 4041 or 4081, or’’.
(ii) Paragraph (2) of section 6427(l) of
such Code is amended by striking ‘‘and’’ at the
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 ‘‘KEROSENE’’.
(F) 
Sections 
9503(b)(1)(D) 
and
9508(b)(2) of such Code are each amended by
striking ‘‘and kerosene’’ and inserting ‘‘ker-
osene, and fuel alcohol’’.
(G) Subsection (e) of section 9502 of such
Code is amended by striking paragraph (2).
(H) Paragraph (4) of section 9503(b) of
such Code is amended by adding ‘‘and’’ at the
end of subparagraph (C), by striking the
comma at the end of subparagraph (D) and in-
serting a period, and by striking subparagraphs
(E) and (F).
(I) Subsection (b) of section 9503 of such
Code is amended by striking paragraph (5) and
by redesignating paragraph (6) as paragraph
(5).
(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
subsection—
(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