PUBLIC LAW 9 5 - 6 1 8 - - N 0 V. 9, 1978
92 STAT. 3185
P A R T II—MOTOR F U E L S SEC. 221. EXEMPTION FROM MOTOR FUELS EXCISE TAXES FOR CERTAIN ALCOHOL FUELS. (a) GASOLINE M IX E D W I T H A L C O H O L. —
(1) IN GENERAL.—Section 4081 (relating to imposition of tax 26 USC 4081. on gasoline) is amended by adding a t the end thereof the following new subsection: " (c) GASOLINE M IX E D W I T H A L C O H O L. —
" (1) IN GENERAL.—Under regulations prescribed by the Secretary, no tax shall be imposed by this section on the sale of any gasoline— " (A) in a mixture with alcohol, if at least 10 percent of the mixture is alcohol, or " (B) for use in producing a mixture at least 10 percent of which is alcohol. " (2) LATER SEPARATION OF GASOLINE.—If any person separates
the gasoline from a mixture of gasoline and alcohol on which tax was not imposed by reason of this subsection, such person shall b e treated as the producer of such gasoline.
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" (3) ALCOHOL DEFINED.—For purposes of t h i s subsection, the
term 'alcohol' includes methanol and ethanol b u t does not include alcohol produced from petroleum, natural gas, or coal." 26 USC 4081 shall apply to sales after December 31, 1978, and before October 1, note. 1984. (2) EFFECTIVE DATE.—The amendment made by paragraph (1)
(b) ALCOHOL M IX E D W I T H SPECIAL F U E L. —
(1) IN GENERAL.—Section 4041 (relating to imposition of tax 26 USC 4041. on special fuels) is amended by a d d i n g at the end thereof the following new subsection: " (k) F U E L S CONTAINING A L C O H O L. —
" (1) IN GENERAL.—Under regulations prescribed by the Secretary, n o tax shall be imposed by this section on the sale o r use of any liquid fuel a t least 10 percent of which consists of alcohol (as denned by section 4081(c)(3)). " (2) LATER SEPARATION.—If any person separates the liquid fuel from a mixture of the liquid fuel and alcohol on which tax was not imposed by reason of this subsection, such separation shall be treated as a sale of the liquid fuel." 26 USC 4041 shall apply to sales or use after December 31, 1978, and before note. October 1, 1984. 26 USC 4041 (c) REPORTS.— (1) A N N U A L REPORT.—On April 1 of each year, beginning with note. April 1, 1980, and ending on April 1, 1984, the Secretary of Report to Energy, in consultation with the Secretary of the Treasury and Congress. the Secretary of Transportation, shall submit to the Congress a report on the use of alcohol in fuel. The report shall include— (A) a description of the firms engaged in the alcohol fuel industry, (B) the amount of alcohol fuels sold in each State, and the amount of gasoline saved in each State by reason of the use of alcohol fuels, (C) the revenue loss resulting from the exemptions from js,, ^. tax for alcohol fuels under sections 4041(k) and 4081(c) of 26 USC 4041, the I n t e r n a l Revenue Code of 1954, and 4081. (2) EFFECTIVE DATE.—The amendment m a d e by paragraph (1)
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