(h) Accounting procedures for like articles

Under regulations prescribed by the Secretary or his delegate, if any person uses or resells like articles, then for purposes of this section the manufacturer, producer, or importer of any such article may be identified, and the amount of tax paid under chapter 32 in respect of such article may be determined

(1) on a first-in-first-out basis,

(2) on a last-in-first-out basis, or

(3) in accordance with any other consistent method approved by the Secretary or his delegate.

(i) Meaning of terms

For purposes of this section, any term used in this section has the same meaning as when used in chapter 31, 32, or 33, as the case may be. (Aug. 16, 1954, c. 736, 68A Stat. 798; Aug. 11, 1955, c. 793, § 2, 69 Stat. 676; Aug. 11, 1955, c. 805, § 1(h), (i), 2(b), 69 Stat. 690; Apr. 2, 1956, c. 160 § 2(b)(1), 70 Stat. 90; June 29, 1956, c. 462, Title II, § 208(b), 70 Stat. 393; June 30, 1958, Pub. L. 85-475, § 4(b)(5), (6), 72 Stat. 260; Sept. 2, 1958, Pub. L. 85-859, Title I, § 163(a), (c), 72 Stat. 1306, 1311; Sept. 21, 1959, Pub. L. 86-342, Title II, § 201(d)(1), 73 Stat. 614; Apr. 8, 1960, Pub. L. 86-418, § 3, 74 Stat. 38; Sept. 14, 1960, Pub. L. 86-781, § 2, 74 Stat. 1018; June 29, 1961, Pub. L. 87-61, Title II, § 205(c), (d), 75 Stat. 126; June 28, 1962, Pub. L. 87-508, § 5(c)(3), 76 Stat. 119; June 21, 1965, Pub. L. 89-44, Title II, § 207(c), Title VI, § 601(c), Title VIII, § 801(d)(2), 79 Stat. 140, 153, 158; May 21, 1970, Pub. L. 91-258, Title II, §§ 205(b)(3), (4), and 207(d)(4)–(7), 84 Stat. 242, 248, 249; Dec. 31, 1970, Pub. L. 91-614, Title III, § 302, 84 Stat. 1845; Dec. 10, 1971, Pub. L. 92-178, Title IV, § 401(a)(3)(C), (g)(6), 85 Stat. 531, 534; Oct. 4, 1976, Pub. L. 94-455, Title XIX, §§ 1904(b)(1), 1906(a)(24)(A), (B)(i), (b)(13)(A), Title XXI, § 2108(a), 90 Stat. 1815, 1827, 1834, 1904; Feb. 10, 1978, Pub. L. 95-227, § 2(b)(4), 92 Stat. 12; Nov. 9, 1978, Pub. L. 95-618, Title II, §§ 201(c)(3), 232(b), 233(c)(3), 92 Stat. 3184, 3189, 3192; Apr. 1, 1980, Pub. L. 96-222, Title I, § 108(c)(2)(A), (B), (3), (4), 94 Stat. 227; Dec. 24, 1980, Pub. L. 96–598, § 1(a), (b), 94 Stat. 3485; Jan. 6, 1983, Pub. L. 97-424, Title V, §§ 511(g)(2)(A), 512(b)(2)(C), (D), 515(b)(4), 96 Stat. 2173, 2177, 2181.) Sec. 6420. Gasoline used on farms.

(a) Gasoline.-Except as provided in subsection (g), if gasoline is used on a farm for farming purposes, the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline the amount determined by multiplying—

(1) the number of gallons so used, by

(2) the rate of tax on gasoline under section 4081 which applied on the date he purchased such gasoline.

(b) Time for filing claims; period covered.—Not more than one claim may be filed under this section by any person with respect to gasoline used during his taxable year, and no claim shall be allowed under this section with respect to gasoline used during any taxable year unless filed by such person 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 person's taxable year shall be his taxable year for purposes of subtitle A.

(c) Meaning of terms.-For purpose of this section

(1) Use on a farm for faRMING PURPOSES.-Gasoline 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 (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 primarily for the raising of agricultural or horticultural commodities, and orchards.

(3) Farming purposes.-Gasoline shall be treated 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, including 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 commodity in its unmanufactured state; but only if such owner, tenant, or operator produced more than one-half of the commodity which he so 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 milling) of trees for market, incidental to farming operations; or

(D) by the owner, tenant, or operator of a farm, in connection with the operation, management, conservation, improvement, or maintenance of such farm and its tools and equipment.

(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

paragraph (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 gasoline, except that

(B) if

(i) the person so using the gasoline is an aerial or other applicator of fertilizers or other substances and is the ultimate purchaser of the gasoline, and

(ii) the person described in subparagraph (A) waives (at such time and in such form and manner as the Secretary shall prescribe) his right to be treated as the user and ultimate purchaser of the gasoline,

then subparagraph (A) of this paragraph shall not apply and the aerial or other applicator shall be treated as having used such gasoline on a farm for farming purposes.

(5) Gasoline.—The term "gasoline" has the meaning given to such term by section 4082(b).

(d) Exempt sales; other payments or refunds available

No amount shall be payable under this section with respect to any gasoline which the Secretary or his delegate determines was exempt from the tax imposed by section 4081. The amount which (but for this sentence) would be payable under this section with respect to any gasoline shall be reduced by any other amount which the Secretary or his delegate determines is payable under this section, or is refundable under any provision of this title, to any person with respect to such gasoline.

(e) Applicable laws.

(1) In general.-All provisions of law, including penalties, applicable in respect of the tax imposed by section 4081 shall, insofar as applicable and not inconsistent with this section, apply in respect of the payments provided for in this section to the same extent as if such payments constituted refunds of overpayments of the tax so imposed.

(2) EXAMINATION OF BOOKS AND WITNESSES.-For the purpose of ascertaining the correctness of any claim made under this section, or the correctness of any payment made in respect of any such claim, the Secretary or his delegate shall have the authority granted by paragraphs (1), (2), and (3) of section 7602 (relating to examination of books and witnesses) as if the claimant were the person liable for tax.

(3) FRACTIONAL PARTS OF A DOLLAR.-Section 7504 (granting the Secretary discretion with respect to fractional parts of a dollar) shall not apply.

(f) Regulations

The Secretary or his delegate may by regulations prescribe the conditions, not inconsistent with the provisions of this section, under which payments may be made under this section.

(g) Income tax credit in lieu of payment.

(1) Persons not subject to income tax.-Payment shall be made under subsection (a), only to

(A) the United States or an agency or instrumentality thereof, a State, a political subdivision of a State, or an agency or instrumentality of one or more States or political subdivisions,

or

(B) an organization exempt from tax under section 501(a) (other than an organization required to make a return of the tax imposed under subtitle A for its taxable year).

(2) Allowance of credit against income tax.

For allowance of credit against the tax imposed by subtitle A, see section 39.

(h) Termination.-This section shall apply only with respect to gasoline purchased before October 1, 1988.

(i) Cross references.―

(1) For exemption from tax in case of special fuels used on a farm for farming purposes, see section 4041(f).

(2) For civil penalty for excessive claim under this section, see section 6675.

(3) For fraud penalties, etc., see chapter 75 (section 7201 and following, relating to crimes, other offenses, and forfeitures).

(4) For treatment of an Indian tribal government as a State (and a subdivision of an Indian tribal government as a political subdivision of a State), see section 7871.

(Added Apr. 2, 1956, c. 160, § 1, 70 Stat. 87, and amended Sept. 2, 1958, Pub. L. 85-859, Title I, § 163(d)(2), 72 Stat. 1311; June 21, 1965, Pub. L. 89-44, Title VIII, § 809(a), 79 Stat. 165; May 21, 1970, Pub. L. 91-258, Title II, §§ 205(c)(7) and 207(b), 84 Stat. 242, 248; Oct. 4, 1976, Pub. L. 94-455, Title XIX, § 1906(a)(26), (b)(6)(A), 13(A), 90 Stat. 1827, 1833-1834; Pub. L. 95-458; § 3(a), (c), 92 Stat. 1257; Jan. 6, 1983, Pub. L. 97-424, Title V, §§ 511(f), 516(b)(4), 96 Stat. 2172, 2183; Jan. 14, 1983, Pub. L. 97-473, Title II, § 202(b)(12), 96 Stat. 2610.)

Sec. 6421. Gasoline used for certain nonhighway purposes or by local transit systems.

(a) Nonhighway uses.-Except as provided in subsection (i), if gasoline is used in an off-highway business use, the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline an amount equal to the amount determined by multiplying the number of gallons so used by the rate at which tax was imposed on such gasoline under section 4081. Except as provided in paragraph (3) of subsection (e) of

this section, in the case of gasoline used as a fuel in an aircraft, the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline an amount equal to the amount determined by multiplying the number of gallons of gasoline so used by the rate at which tax was imposed on such gasoline under section 4081.

(b) Intercity, local, or school buses.

(1) Allowance.-Except as provided in paragraph (2) and subsection (i), if gasoline is used in an automobile bus while engaged in— (A) furnishing (for compensation) passenger land transportation available to the general public, or

(B) the transportation of students and employees of schools (as defined in the last sentence of section 4221(d)(7)(C)),

the Secretary shall pay (without interest) to the ultimate purchaser of such gasoline an amount equal to the product of the number of gallons of gasoline so used multiplied by the rate at which tax was imposed on such gasoline by section 4081.

(2) Limitation in case of nonscheduled intercity or local buses.— Paragraph (1)(A) shall not apply in respect of gasoline used in any automobile bus while engaged in furnishing transportation which is not scheduled and not along regular routes unless the seating capacity of such bus is at least 20 adults (not including the driver). (c) Time for filing claims; period covered.

(1) In general.-Except as provided in paragraph (2), not more than one claim may be filed under subsection (a), and not more than one claim may be filed under subsection (b), by any person with respect to gasoline used during his taxable year; and no claim shall be allowed under this paragraph with respect to gasoline used during any taxable year unless filed by such person 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 person's taxable year shall be his taxable year for purposes of subtitle A.

(2) Exception. If $1,000 or more is payable under this section to any person with respect to gasoline used during any of the first three quarters of his taxable year, a claim may be filed under this section by such person with respect to gasoline used during such quarter. No claim filed under this paragraph shall be allowed unless filed on or before the last day of the first quarter following the quarter for which the claim is filed.

(d) Definitions.-For purposes of this section—

(1) Gasoline.-The term "gasoline" has the meaning given to such term by section 4082(b).

(2) Off-Highway business use.—

(A) 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