I.R.C. § 4042(a) In General —
There is hereby imposed a tax on any liquid used during any calendar quarter by
any person as a fuel in a vessel in commercial waterway transportation.
I.R.C. § 4042(b) Amount Of Tax
I.R.C. § 4042(b)(1) In General —
The rate of the tax imposed by subsection (a) is the sum of—
I.R.C. § 4042(b)(1)(A) —
the Inland Waterways Trust Fund financing rate, and
I.R.C. § 4042(b)(1)(B) —
the Leaking Underground Storage Tank Trust Fund financing rate.
I.R.C. § 4042(b)(2) Rates —
For purposes of paragraph (1)—
I.R.C. § 4042(b)(2)(A) —
The Inland Waterways Trust Fund financing rate is 29 cents per gallon.
I.R.C. § 4042(b)(2)(B) —
the Leaking Underground Storage Tank Trust Fund financing rate is 0.1 cent per gallon.
I.R.C. § 4042(b)(3) Exception For Fuel On Which Leaking Underground Storage Tank Trust Fund Financing
Rate Separately Imposed —
The leaking Underground Storage Tank Trust Fund financing rate under paragraph (2)(B)
shall not apply to the use of any fuel if tax was imposed with respect to such fuel
under section 4041(d) or 4081 at the Leaking Underground Storage Tank Trust Fund financing rate.
I.R.C. § 4042(b)(4) Termination Of Leaking Underground Storage Tank Trust Fund Financing Rate —
The Leaking Underground Storage Tank Trust Fund financing rate under paragraph (2)(B)
shall not apply during any period during which the Leaking Underground Storage Tank
Trust Fund financing rate under section 4081 does
not apply.
I.R.C. § 4042(c) Exemptions
I.R.C. § 4042(c)(1) Deep-Draft Ocean-Going Vessels —
The tax imposed by subsection (a) shall not apply with respect to any vessel designed
primarily for use on the high seas which has a draft of more than 12 feet.
I.R.C. § 4042(c)(2) Passenger Vessels —
The tax imposed by subsection (a) shall not apply with respect to any vessel used
primarily for the transportation of persons.
I.R.C. § 4042(c)(3) Use By State Or Local Government In Transporting Property In A State Or Local Business —
Subparagraph (B) of subsection (d)(1) shall not apply with respect to use by a State
or political subdivision thereof.
I.R.C. § 4042(c)(4) Use In Moving Lash And Seabee Ocean-Going Barges —
The tax imposed by subsection (a) shall not apply with respect to use for movement
by tug of exclusively LASH (Lighter-aboard-ship)
and SEABEE ocean-going barges released by their ocean-going carriers solely to pick
up or deliver international cargos.
I.R.C. § 4042(d) Definitions —
For purposes of this section—
I.R.C. § 4042(d)(1) Commercial Waterway Transportation —
The term “commercial waterway transportation” means any use of a vessel on any inland
or intracoastal waterway of the United States—
I.R.C. § 4042(d)(1)(A) —
in the business of transporting property for compensation or hire, or
I.R.C. § 4042(d)(1)(B) —
in transporting property in the business of the owner, lessee, or operator of the
vessel (other than fish or other aquatic animal life caught on the voyage).
I.R.C. § 4042(d)(2) Inland Or Intracoastal Waterway Of The United States —
The term “inland or intracoastal waterway of the United States” means any inland
or intracoastal waterway of the United States which is described in section 206 of
the Inland Waterways Revenue Act of 1978.
I.R.C. § 4042(d)(3) Person —
The term “person” includes the United States, a State, a political subdivision of
a State, or any agency or instrumentality of any of the foregoing.
I.R.C. § 4042(e) Date For Filing Return —
The date for filing the return of the tax imposed by this section for any calendar
quarter shall be the last day of the first month following such quarter.
(Added by Pub. L. 95-502, title II, Sec. 202(a), Oct. 21, 1978, 92 Stat. 1696, and amended by Pub. L. 99-499, title V, Sec. 521(a)(3), Oct. 17, 1986, 100 Stat. 1777; Pub. L. 99-662, title XIV, Sec. 1404(a),
Nov. 17, 1986, 100 Stat. 4270; Pub. L. 100-647, title II, Sec. 2002(a)(2), Nov. 10, 1988, 102 Stat. 3597; Pub. L. 103-66, title XIII, Sec. 13241(d), Aug. 10, 1993, 107 Stat. 312; Pub. L. 108-357, title II, Sec. 241(b), Oct. 22, 2004, 118 Stat. 1418; Pub. L. 110-172, Sec. 6(d)(1)(B), Dec. 29, 2007, 121 Stat. 2473;
Pub. . 113-295, Div. B, title II, Sec. 205, Dec. 19, 2014, 128 Stat. 4010; Pub. L. 115-141, Div. U, title IV, Sec. 401(b)(40) and (41), Mar. 23, 2018, 132 Stat. 348.)
BACKGROUND NOTES
AMENDMENTS
2018--Subsec.
(b)(1). Pub. L. 115-141, Div. U, Sec. 401(b)(40), amended par. (1) by adding ‘‘and’’
at the end of subpar. (A), by striking ‘‘, and’’
at the end of subpar. (B) and inserting a period, and by striking subpar. (C). Before
being struck, subpar. (C ) read as follows: “the deficit reduction rate.”
Subsec. (b)(2). Div. U, Sec. 401(b)(41), amended par. (2) by striking subpar. (C).
Before being struck, subpar. (C
) read as follows:
(C) The deficit reduction rate is--
(i) 3.3 cents per gallon after December 31, 2004, and before July 1, 2005,
(ii) 2.3 cents per gallon after June 30, 2005, and before January 1, 2007, and
(iii) 0 after December 31, 2006.
2014--Subsec. (b)(2)(A). Pub. L. 113-295, Div. B, Sec. 205(a), amended subpar. (A). Before amendment, it read as follows:
“(A) the Inland Waterways Trust Fund financing rate is the rate determined in accordance
with the following table:
The tax per If the use occurs: gallon is: Before 1990.............................10 cents During 1990.............................11 cents During 1991.............................13 cents During 1992.............................15 cents During 1993.............................17 cents During 1994.............................19 cents After 1994..............................20 cents”
2007--Subsec. (b)(3). Pub. L. 110-172, Sec. 6(d)(1)(B), amended par. (3). Before amendment, it read as follows:
“(3) Exception For Fuel Taxed Under Section 4041(d)— The Leaking Underground Storage
Tank Trust Fund financing rate under paragraph (2)(B) shall not apply to the use
of any fuel if tax under section 4041(d) was imposed on the sale of such fuel or
is imposed on such use.”
2004--Subsec. (b)(2)(C). Pub. L. 108-357, Sec. 241(b), amended subpar. (C). Before amendment it read as follows:
“(C) The deficit reduction rate is 4.3 cents per gallon.”
1993—Subsec. (b)(1). Pub. L. 103-66, Sec. 13241(d)(1), amended par. (1) by striking “and” at the end of subpar.
(A), by substituting “, and” for the period at the end of subpar. (B), and by adding
subpar. (C).
Subsec. (b)(2). Pub. L. 103-66, Sec. 13241(d)(2), amended par. (2) by adding subpar. (C).
1988--Subsec. (b)(2). Pub. L. 100-647 amended par. (2)
generally. Prior to amendment, par. (2) read as follows: ‘For purposes of paragraph
(1) -
‘(A) the Inland Waterways Trust Fund financing rate is 10 cents a gallon, and
‘(B) the Leaking Underground Storage Tank Trust Fund financing rate is 0.1 cents a
gallon.’
1986--Subsec. (b). Pub. L. 99-499 and Pub. L. 99-662 both amended subsec.
(b) generally, effective Jan. 1, 1987. Pub. L. 100-647, Sec. 2002(a)(1) (see Construction of 1986 Amendments note below), provided that for purposes of this
section, the amendment made by Pub. L. 99-499 be treated as enacted after the amendment made by Pub. L. 99-662. Prior to amendment by Pub. L. 99-499 and Pub. L. 99-662, subsec. (b) read as follows: ---------------------------------------------------------------------
---------------------------------------------------------------------
‘If the use occurs - The tax is -
After September 30, 1980 and
before October 1, 1981 4 cents a gallon
After September 30, 1981 and
before October 1, 1983 6 cents a gallon
After September 30, 1983 and
before October 1, 1985 8 cents a gallon
After September 30, 1985 10 cents a gallon'.
-------------------------------
EFFECTIVE DATE OF 2018 AMENDMENTS
Amendment by Pub. L. 115-141, Div. U, Sec. 401(b)(40)
and (41), effective March 23, 2018.
Sec. 401(e) of Pub. L. 115-141, Div. U, provided the following Savings Provision:
“(e) General Savings Provision With Respect To Deadwood Provisions.—If—
“(1) any provision amended or repealed by the amendments made by subsection (b) or
(d)
applied to—
“(A) any transaction occurring before the date of the enactment of this Act,
“(B) any property acquired before such date of enactment, or
“(C) any item of income, loss, deduction, or credit taken into account before such
date of enactment, and
“(2) the treatment of such transaction, property, or item under such provision would
(without regard to the amendments or repeals made by such subsection)
affect the liability for tax for periods ending after such date of enactment,
“nothing in the amendments or repeals made by this section shall be construed to affect
the treatment of such transaction, property, or item for purposes of determining liability
for tax for periods ending after such date of enactment.”
EFFECTIVE DATE OF 2014 AMENDMENTS
Amendment by Pub. L. 113-295, Div. B, Sec. 205(a), effective for fuel used after March 31, 2015.
EFFECTIVE DATE OF 2007 AMENDMENTS
Amendment by Section 6(d)(1)(B) of Pub. L. 110-172 effective as if included in the provisions of the Energy Policy Act of 2005
[Pub. L. 109-58, Sec. 1362]
to which it relates.
EFFECTIVE DATE OF 2004 AMENDMENTS
Amendment by Section 241(b) of Pub. L. 108-357 effective January 1, 2005.
EFFECTIVE DATE OF 1993 AMENDMENTS
Amendment by Section 13241(d)
of Pub. L. 103-66 effective October 1, 1993.
EFFECTIVE DATE OF 1988 AMENDMENTS
Section 2002(d) of Pub. L. 100-647, as amended by Pub. L. 101-239, title VII, Sec. 7812(b), Dec. 19, 1989, 103 Stat. 2412, provided that: ‘The amendments made by subsections (b) and (c) (amending section
4462 of this title and provisions set out as a note under section 4461 of this title)
shall take effect as if included in the provision of the Harbor Maintenance Revenue
Act of 1986 (Pub. L. 99-662, title XIV) to which it relates, and the amendment made by subsection (a)(2) (amending
this section) shall take effect as if included in the amendment made by section 521(a)(3)
of the Superfund Revenue Act of 1986 (Pub. L. 99-499, title V).'
EFFECTIVE DATE OF 1986 AMENDMENTS
Section 1404(c) of Pub. L. 99-662 provided that: ‘The amendments made by this section (amending this section and section
1804 of Title 33, Navigation and Navigable Waters) shall take effect on January 1,
1987.’
Amendment by Pub. L. 99-499 effective Jan. 1, 1987, see section 521(e)
of Pub. L. 99-499, set out as a note under section 4041 of this title.
EFFECTIVE DATE
Section 202(d) of Pub. L. 95-502 provided that: ‘The amendments made by this section (enacting this section and amending
section 4293 of this title) shall take effect on October 1, 1980.’
LEAKING UNDERGROUND STORAGE TANK TRUST FUND FINANCING RATE
Section 6(d)(1)(C) of Pub. L. 110-172 provided that:
“(C) Notwithstanding section 6430 of the Internal Revenue Code of 1986, a refund, credit, or payment may be made under subchapter B of chapter 65
of such Code for taxes imposed with respect to any liquid after September 30, 2005,
and before the date of the enactment of this Act [Enacted: Dec. 29, 2007] under section
4041(d)(1) or 4042 of such Code at the Leaking Underground Storage Tank Trust Fund
financing rate to the extent that tax was imposed with respect to such liquid under
section 4081 at the Leaking Underground Storage Tank Trust Fund financing rate.”
VESSELS
Section 11166(a) of Pub. L. 109-59 provided that:
“On and after the date of the enactment of this Act, the Secretary of the Treasury
shall require that a vessel described in section 4042(c)(1) of the Internal Revenue Code of 1986 be considered a vessel for purposes of the registration of the operator of
such vessel under section 4101 of such Code, unless such operator uses such vessel
exclusively for purposes of the entry of taxable fuel.”
CONSTRUCTION OF 1986 AMENDMENTS
Section 2002(a)(1) of Pub. L. 100-647 provided that:
“For purposes of section 4042 of the 1986 Code, the amendment made by section 521(a)(3)
of the Superfund Revenue Act of 1986 (Pub. L. 99-499, amending this section) shall be treated as enacted after the amendment made by section
1404(a) of the Harbor Maintenance Revenue Act of 1986
(Pub. L. 99-662, amending this section).”
PRIOR PROVISIONS
A prior section 4042, act Aug. 16, 1954, ch. 736, 68A Stat. 478, which provided a
cross reference to section 4222 of this title for exemption from tax where special
motor fuels are sold for use for certain vessels, was repealed by Pub. L. 94-455, title XIX, Sec. 1904(a)(1)(D), Oct. 4, 1976, 90 Stat. 1811.
