A bill to amend the Internal Revenue Code of 1986 to allow for payments to certain individuals who dye fuel, and for other purposes.
The bill adds a new provision to the Internal Revenue Code that creates a government payment program for certain individuals who handle or remove “eligible indelibly dyed” diesel fuel or kerosene from a terminal. If a person can prove to the Secretary that they meet the defined requirements, the government will pay them an amount equal to the tax that was previously paid under the fuel tax on that dyed fuel (without interest). The eligible fuel must have had the diesel/kerosene tax paid and not credited or refunded, and must be exempt from taxation under existing exemptions. The bill also makes related conforming amendments and establishes an effective date 180 days after enactment. In short, it creates a potential rebate or transfer of previously paid fuel taxes to certain individuals who deal with dyed fuels, under specific conditions.
Key Points
- 1New program: Establishes Section 6434 (Dyed Fuel) to pay eligible individuals an amount equal to the prior fuel tax paid on indelibly dyed diesel fuel or kerosene.
- 2Eligibility criteria: The claimant must remove from a terminal eligible indelibly dyed diesel fuel or kerosene; the fuel must have had a tax under section 4081 previously paid (not refunded) and be exempt under section 4082(a).
- 3Administration and penalties: The payment is made by the Secretary without interest; civil penalties for excessive claims are referenced to Section 6675.
- 4Conforming amendments: Adds cross-references and modifications to Sections 6206, 6430, 6675, and updates the subchapter table to include Sec. 6434.
- 5Effective date: Applies to eligible indelibly dyed diesel fuel or kerosene removed on or after 180 days after enactment.