‘‘(e) PURCHASER LIABLE TO COLLECT AND REMIT
IN CERTAIN CASES.—In the case of any taxable property
or service which is sold untaxed pursuant to section 102,
if the seller is relieved by reason of subsection (d) of the
duty to collect and remit the tax imposed by section 101,
then the duty to pay any tax due shall rest with the pur-
chaser.
‘‘(f) BARTER TRANSACTIONS.—If gross payment for
taxable property or services is made in other than money,
then the person responsible for collecting and remitting
the tax shall remit the tax to the sales tax administering
authority in money as if gross payment had been made
in money at the tax inclusive fair market value of the tax-
able property or services purchased.
‘‘(g) INTERCOMPANY SALES.—Firms that make pur-
chases from affiliated firms that are untaxed pursuant to
section 102, or make sales to affiliated firms that are
untaxed pursuant to section 102, shall not need to comply
with the requirements of subsection (d) (relating to certifi-
cates) for said purchases or sales to remain untaxed.
‘‘CHAPTER 2—CREDITS; REFUNDS
‘‘Sec. 201. Credits and refunds.
‘‘Sec. 202. Business use conversion credit.
‘‘Sec. 203. Intermediate and export sales credit.
‘‘Sec. 204. Administration credit.
‘‘Sec. 205. Bad debt credit.
‘‘Sec. 206. Insurance proceeds credit.
‘‘Sec. 207. Refunds.
‘‘SEC. 201. CREDITS AND REFUNDS.
‘‘(a) IN GENERAL.—Each person shall be allowed a
credit with respect to the taxes imposed by section 101
for each month in an amount equal to the sum of—
‘‘(1) such person’s business use conversion
credit pursuant to section 202 for such month,
‘‘(2) such person’s intermediate and export
sales credit pursuant to section 203 for such month,
‘‘(3) the administration credit pursuant to sec-
tion 204 for such month,
‘‘(4) the bad debt credit pursuant to section
205 for such month,
‘‘(5) the insurance proceeds credit pursuant to
section 206 for such month,
‘‘(6) the transitional inventory credit pursuant
to section 902, and
‘‘(7) any amount paid in excess of the amount
due.
‘‘(b) CREDITS NOT ADDITIVE.—Only one credit al-
lowed by chapter 2 may be taken with respect to any par-
ticular gross payment.
‘‘SEC. 202. BUSINESS USE CONVERSION CREDIT.
‘‘(a) IN GENERAL.—For purposes of section 201, a
person’s business use conversion credit for any month is
the aggregate of the amounts determined under subsection
(b) with respect to taxable property and services—
‘‘(1) on which tax was imposed by section 101
(and actually paid), and
‘‘(2) which commenced to be 95 percent or
more used during such month for business purposes
(within the meaning of section 102(b)).
‘‘(b) AMOUNT OF CREDIT.—The amount determined
under this paragraph with respect to any taxable property
or service is the lesser of—
‘‘(1) the product of—
‘‘(A) the rate imposed by section 101, and
‘‘(B) the quotient that is—
‘‘(i) the fair market value of the prop-
erty or service when its use is converted,
divided by
‘‘(ii) the quantity that is 1 minus the
tax rate imposed by section 101, or
‘‘(2) the amount of tax paid with respect to
such taxable property or service, including the
amount, if any, determined in accordance with sec-
tion 705 (relating to mixed use property).
‘‘SEC. 203. INTERMEDIATE AND EXPORT SALES CREDIT.
‘‘For purposes of section 201, a person’s intermediate
and export sales credit is the amount of sales tax paid
on the purchase of any taxable property or service pur-
chased for—
‘‘(1) a business purpose in a trade or business
(as defined in section 102(b)), or
‘‘(2) export from the United States for use or
consumption outside the United States.
‘‘SEC. 204. ADMINISTRATION CREDIT.
‘‘(a) IN GENERAL.—Every person filing a timely
monthly report (with regard to extensions) in compliance
with section 501 shall be entitled to a taxpayer adminis-
trative credit equal to the greater of—
‘‘(1) $200, or
‘‘(2) one-quarter of 1 percent of the tax remit-
ted.
‘‘(b) LIMITATION.—The credit allowed under this sec-
tion shall not exceed 20 percent of the tax due to be remit-
ted prior to the application of any credit or credits per-
mitted by section 201.
‘‘SEC. 205. BAD DEBT CREDIT.
‘‘(a) FINANCIAL INTERMEDIATION SERVICES.—Any
person who has experienced a bad debt (other than unpaid
invoices within the meaning of subsection (b)) shall be en-
titled to a credit equal to the product of—
‘‘(1) the rate imposed by section 101, and
‘‘(2) the quotient that is—
‘‘(A) the amount of the bad debt (as de-
fined in section 802), divided by
‘‘(B) the quantity that is 1 minus the rate
imposed by section 101.
‘‘(b) UNPAID INVOICES.—Any person electing the ac-
crual method pursuant to section 503 that has with re-
spect to a transaction—
‘‘(1) invoiced the tax imposed by section 101,
‘‘(2) remitted the invoiced tax,
‘‘(3) actually delivered the taxable property or
performed the taxable services invoiced, and
‘‘(4) not been paid 180 days after date the in-
voice was due to be paid,
shall be entitled to a credit equal to the amount of tax
remitted and unpaid by the purchaser.
‘‘(c) SUBSEQUENT PAYMENT.—Any payment made
with respect to a transaction subsequent to a section 205
credit being taken with respect to that transaction shall
be subject to tax in the month the payment was received
as if a tax inclusive sale of taxable property and services
in the amount of the payment had been made.
‘‘(d) PARTIAL PAYMENTS.—Partial payments shall
be treated as pro rata payments of the underlying obliga-
tion and shall be allocated proportionately—
‘‘(1) for fully taxable payments, between pay-
ment for the taxable property and service and tax,
and
‘‘(2) for partially taxable payments, among pay-
ment for the taxable property and service, tax and
other payment.
‘‘(e) RELATED PARTIES.—The credit provided by this
section shall not be available with respect to sales made
to related parties. For purposes of this section, related
party means affiliated firms and family members (as de-
fined in section 302(b)).
‘‘SEC. 206. INSURANCE PROCEEDS CREDIT.
‘‘(a) IN GENERAL.—A person receiving a payment
from an insurer by virtue of an insurance contract shall
be entitled to a credit in an amount determined by sub-
section (b), less any amount paid to the insured by the
insurer pursuant to subsection (c), if the entire premium
(except that portion allocable to the investment account
of the underlying policy) for the insurance contract giving
rise to the insurer’s obligation to make a payment to the
insured was subject to the tax imposed by section 101 and
said tax was paid.
‘‘(b) CREDIT AMOUNT.—The amount of the credit
shall be the product of—
‘‘(1) the rate imposed by section 101, and
‘‘(2) the quotient that is—
‘‘(A) the amount of the payment made by
the insurer to the insured, divided by
‘‘(B) the quantity that is 1 minus the rate
imposed by section 101.
‘‘(c) ADMINISTRATIVE OPTION.—The credit deter-
mined in accordance with subsection (b) shall be paid by
the insurer to the insured and the insurer shall be entitled
to the credit in lieu of the insured, except that the insurer
may elect, in a form prescribed by the Secretary, to not
pay the credit and require the insured to make application
for the credit. In the event of such election, the insurer
shall provide to the Secretary and the insured the name
and tax identification number of the insurer and of the
insured and indicate the proper amount of the credit.
‘‘(d) COORDINATION WITH RESPECT
TO EXEMP-
TION.—If taxable property or services purchased by an in-
surer on behalf of an insured are purchased free of tax
by virtue of section 2(a)(8)(C), then the credit provided
by this section shall not be available with respect to that
purchase.
‘‘(e) INSURANCE CONTRACT.—For purposes of sub-
section (a), the term ‘insurance contract’ shall include a
life insurance contract, a health insurance contract, a
property and casualty loss insurance contract, a general
liability insurance contract, a marine insurance contract,
a fire insurance contract, an accident insurance contract,
a disability insurance contract, a long-term care insurance