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with respect to fuel described in subsection
(c)(1) thereof,
‘‘(ii) in the case of diesel fuel, the ag-
gregate rate of tax imposed by section
4091 with respect to fuel described in sub-
section (c)(1)(B) thereof, and
‘‘(iii) in the case of aviation fuel, the
aggregate rate of tax imposed by section
4091 with respect to fuel described in sub-
section (d)(1)(B) thereof.
‘‘(5) GASOHOL USED IN NONCOMMERCIAL AVIA-
TION.—If—
‘‘(A) tax is imposed by section 4081 at the
rate determined under subsection (c) thereof on
gasohol (as defined in such subsection), and
‘‘(B) such gasohol is used as a fuel in any
aircraft in noncommercial aviation (as defined
in section 4041(b)),
the payment under subsection (a) shall be equal to
1.4 cents (2 cents in the case of gasohol none of the
alcohol in which consists of ethanol) per gallon of
gasohol so used.
‘‘(d) TIME
FOR
FILING
CLAIMS; PERIOD
COV-
ERED.—
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‘‘(1) GENERAL RULE.—Except as provided in
paragraphs (2) and (3), not more than one claim
may be filed under this section by any person with
respect to fuel used (or a qualified diesel powered
highway vehicle purchased) during his taxable year;
and no claim shall be allowed under this paragraph
with respect to fuel used (or a qualified diesel pow-
ered highway vehicle purchased) during any taxable
year unless filed by the purchaser not later than the
time prescribed by law for filing a claim for credit
or refund of overpayment of income tax for such
taxable year. For purposes of this subsection, a per-
son’s taxable year shall be his taxable year for pur-
poses of subtitle A.
‘‘(2) EXCEPTIONS.—
‘‘(A) IN GENERAL.—If as of the close of
any quarter of a person’s taxable year, $750 or
more is payable under this section to such per-
son with respect to fuel used (or a qualified die-
sel powered highway vehicle purchased) during
such quarter or any prior quarter of such tax-
able year (and for which no other claim has
been filed), a claim may be filed under this sec-
tion with respect to fuel so used (or qualified
diesel powered highway vehicles so purchased).
353
‘‘(B) TIME FOR FILING CLAIM.—No claim
filed under this paragraph shall be allowed un-
less filed during the first quarter following the
last quarter included in the claim.
‘‘(3) SPECIAL RULE FOR GASOHOL CREDIT.—
‘‘(A) IN GENERAL.—A claim may be filed
for gasoline used to produce gasohol (as defined
in section 4081(c)(1)) for any period—
‘‘(i) for which $200 or more is pay-
able by reason of subsection (b)(14), and
‘‘(ii) which is not less than 1 week.
‘‘(B) PAYMENT OF CLAIM.—Notwithstand-
ing subsection (a), if the Secretary has not paid
a claim filed pursuant to subparagraph (A)
within 20 days of 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.
‘‘(e) USE ON A FARM FOR FARMING.—For purposes
of subsection (b)(8)—
‘‘(1) IN GENERAL.—Fuel shall be treated as
used on a farm for farming purposes only if used—
‘‘(A) in carrying on a trade or business,
‘‘(B) on a farm situated in the United
States, and
354
‘‘(C) for farming purposes.
‘‘(2) FARM.—The term ‘farm’ includes stock,
dairy, poultry, fruit, fur-bearing animal, and truck
farms, plantations, ranches, nurseries, ranges,
greenhouses or other similar structures used pri-
marily for the raising of agricultural or horticultural
commodities, and orchards.
‘‘(3) FARMING PURPOSES.—Fuel shall be treat-
ed as used for farming purposes only if used—
‘‘(A) by the owner, tenant, or operator of
a farm, in connection with cultivating the soil,
or in connection with raising or harvesting any
agricultural or horticultural commodity, includ-
ing the raising, shearing, feeding, caring for,
training, and management of livestock, bees,
poultry, and fur-bearing animals and wildlife,
on a farm of which he is the owner, tenant, or
operator;
‘‘(B) by the owner, tenant, or operator of
a farm, in handling, drying, packing, grading,
or storing any agricultural or horticultural com-
modity in its unmanufactured state; but only if
such owner, tenant, or operator produced more
than one-half of the commodity which he so
355
treated during the period with respect to which
claim is filed;
‘‘(C) by the owner, tenant, or operator of
a farm, in connection with—
‘‘(i) the planting, cultivating, caring
for, or cutting of trees, or
‘‘(ii) the preparation (other than mill-
ing) of trees for market, incidental to
farming operations; or
‘‘(D) by the owner, tenant, or operator of
a farm, in connection with the operation, man-
agement, conservation, improvement, or mainte-
nance of such farm and its tools and equip-
ment.
‘‘(4) CERTAIN FARMING USE OTHER THAN BY
OWNER, ETC.—In applying paragraph (3)(A) to a
use on a farm for any purpose described in para-
graph (3)(A) by any person other than the owner,
tenant, or operator of such farm—
‘‘(A) the owner, tenant, or operator of such
farm shall be treated as the user and ultimate
purchaser of the fuel, except that
‘‘(B) if the person so using the fuel is an
aerial or other applicator of fertilizers or other
substances and is the ultimate purchaser of the
356
fuel, then subparagraph (A) of this paragraph
shall not apply and the aerial or other applica-
tor shall be treated as having used such fuel on
a farm for farming purposes.
‘‘(f) OFF-HIGHWAY BUSINESS USE.—For purposes
of subsection (b)(9)—
‘‘(1) IN
GENERAL.—The term ‘off-highway
business use’ means any use by a person in a trade
or business of such person or in an activity of such
person described in section 212 (relating to produc-
tion of income) other than as a fuel in a highway
vehicle—
‘‘(A) which (at the time of such use) is
registered, or is required to be registered, for
highway use under the laws of any State or for-
eign country, or
‘‘(B) which, in the case of a highway vehi-
cle owned by the United States, is used on the
highway.
‘‘(2) USES
IN
MOTORBOATS.—The term ‘off-
highway business use’ does not include any use in a
motorboat. The preceding sentence shall not apply to
use in a vessel employed in the fisheries or in the
whaling business.
357
‘‘(g) QUALIFIED BUS TRANSPORTATION.—For pur-
poses of subsection (b)(10)—
‘‘(1) IN GENERAL.—Fuel is used in qualified
bus transportation if it is used in an automobile bus
while engaged in—
‘‘(A) furnishing (for compensation) pas-
senger land transportation available to the gen-
eral public, or
‘‘(B) the transportation of students and
employees of schools (as defined in the last sen-
tence of section 4221(d)(7)(C)).
‘‘(2) LIMITATION
IN
THE
CASE
OF
NON-
SCHEDULED
INTERCITY
OR
LOCAL
BUSES.—Para-
graph (1)(A) shall not apply in respect of fuel used
in any automobile bus while engaged in furnishing
transportation which is not along regular routes un-
less the seating capacity of such bus is at least 20
adults (not including the driver).
‘‘(h) USE BY AN AIRCRAFT MUSEUM.—For purposes
of subsection (b)(11)—
‘‘(1) IN GENERAL.—Fuel is used by an aircraft
museum if it is used in an aircraft or vehicle owned
by such museum and used exclusively for purposes
set forth in paragraph (2)(C).
358
‘‘(2) AIRCRAFT MUSEUM.—For purposes of this
subsection, the term ‘aircraft museum’ means an or-
ganization—
‘‘(A) described in section 501(c)(3) which
is exempt from income tax under section
501(a),
‘‘(B) operated as a museum under charter
by a State or the District of Columbia, and
‘‘(C) operated exclusively for the procure-
ment, care, and exhibition of aircraft of the
type used for combat or transport in World
War II.
‘‘(i) USE IN A NONPURPOSE USE.—For purposes of
subsection (b)(12), fuel is used in a nonpurpose use if—
‘‘(1) tax was imposed by section 4041 on the
sale thereof and the purchaser—
‘‘(A) uses such fuel other than for the use
for which it is sold, or
‘‘(B) resells such fuel, or
‘‘(2) tax was imposed by section 4081 on any
gasoline blend stock or product commonly used as
an additive in gasoline and the purchaser establishes
that the ultimate use of such blend stock or product
is not to produce gasoline.
359
‘‘(j) ADVANCE REPAYMENT OF INCREASED DIESEL
FUEL TAX TO ORIGINAL PURCHASERS OF DIESEL-POW-
ERED AUTOMOBILES AND LIGHT TRUCKS.—
‘‘(1) IN GENERAL.—Except as provided in sub-
section (d), the Secretary shall pay (without inter-
est) to the original purchaser of any qualified diesel-
powered highway vehicle an amount equal to the die-
sel fuel differential amount.
‘‘(2) QUALIFIED
DIESEL-POWERED
HIGHWAY
VEHICLE.—For purposes of this subsection, the term
‘qualified diesel-powered highway vehicle’ means any
diesel-powered highway vehicle which—
‘‘(A) has at least 4 wheels,
‘‘(B) has a gross vehicle weight rating of
10,000 pounds or less, and
‘‘(C) is registered for highway use in the
United States under the laws of any State.
‘‘(3) DIESEL FUEL DIFFERENTIAL AMOUNT.—
For purposes of this subsection, the term ‘diesel fuel
differential amount’ means—
‘‘(A) except as provided in subparagraph
(B), $102, or
‘‘(B) in the case of a truck or van, $198.
‘‘(4) ORIGINAL PURCHASER.—For purposes of
this subsection—
360
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), the term ‘original purchaser’
means the first person to purchase the qualified
diesel-powered vehicle for use other than resale.
‘‘(B) EXCEPTION FOR CERTAIN PERSONS
NOT SUBJECT TO FUELS TAX.—The term ‘origi-
nal purchaser’ shall not include any State or
local 
government 
(as 
defined 
in 
section
4221(d)(4)) or any nonprofit educational orga-
nization (as defined in section 4221(d)(5)).
‘‘(C) TREATMENT
OF
DEMONSTRATION
USE
BY
DEALER.—For purposes of subpara-
graph (A), use as a demonstrator by a dealer
shall not be taken into account.
‘‘(5) VEHICLES
TO
WHICH
SUBSECTION
AP-
PLIES.—This subsection shall only apply to qualified
diesel-powered highway vehicles originally purchased
after January 1, 1985, and before January 1, 1995.
‘‘(6) BASIS REDUCTION.—For the purposes of
subtitle A, the basis of any qualified diesel-powered
highway vehicle shall be reduced by the amount pay-
able under this subsection with respect to such vehi-
cle.
‘‘(k) INCOME TAX CREDIT IN LIEU OF PAYMENT;
OTHER SPECIAL RULES.—
361
‘‘(1) INCOME
TAX
CREDIT
IN
LIEU
OF
PAY-
MENT.—
‘‘(A) PERSONS NOT SUBJECT TO INCOME
TAX.—Payment shall be made under this sec-
tion only to—
‘‘(i) the United States or an agency or
instrumentality thereof, a State, a political
subdivision of a State, or any agency or in-
strumentality of one or more States or po-
litical subdivisions, or
‘‘(ii) an organization exempt from tax
under section 501(a) (other than an orga-
nization required to make a return of the
tax imposed under subtitle A for its tax-
able year).
‘‘(B) 
EXCEPTION.—Subparagraph 
(A)
shall not apply to a payment of a claim filed
under paragraph (2) or (3) of subsection (d).
‘‘(C) ALLOWANCE OF CREDIT AGAINST IN-
COME TAX.—
‘‘For allowances of credit against the income tax
imposed by subtitle A for fuel used by the purchaser
in an exempt use, see section 34.
‘‘(2) APPLICABLE LAWS.—
‘‘(A) IN GENERAL.—All provisions of law,
including penalties, applicable in respect of the
tax with respect to which a payment is claimed