r/title-26-INTERNAL-REVENUE-CODE wiki — defined terms

“nonprofit educational organization” applies in that section

the term “nonprofit educational organization” means an educational organization described in section 170(b)(1)(A)(ii) which is exempt from income tax under section 501(a). The term also includes a school operated as an activity of an organization described in section 501(c)(3) which is exempt from income tax under section 501(a), if such school normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on.

“off-highway business use” applies in that section

the term “off-highway business use” has the meaning given to such term by section 6421(e)(2); except that such term shall not, for purposes of subsection (a)(1), include use in a diesel-powered train. (2) Qualified methanol and ethanol fuel (A) In general In the case of any qualified methanol or ethanol fuel— (i) the rate applicable under subsection (a)(2) shall be the applicable blender rate per gallon less than the otherwise applicable rate (6 cents per gallon in the case of a mixture none of the alcohol in which consists of ethanol), and (ii) subsection (d)(1) shall be applied by substituting “0.05 cent” for “0.1 cent” with respect to the sales and uses to which clause (i) applies.

“partially exempt methanol or ethanol fuel” applies in that section

The term “partially exempt methanol or ethanol fuel” means any liquid at least 85 percent of which consists of methanol, ethanol, or other alcohol produced from natural gas.

“qualified methanol or ethanol fuel” applies in that section

The term “qualified methanol or ethanol fuel” means any liquid at least 85 percent of which consists of methanol, ethanol, or other alcohol produced from coal (including peat). (C) Applicable blender rate For purposes of subparagraph (A)(i), the applicable blender rate is— (i) except as provided in clause (ii), 5.4 cents, and (ii) for sales or uses during calendar years 2001 through 2008, ⅒ of the blender amount applicable under section 40(h)(2) for the calendar year in which the sale or use occurs. (D) Termination On and after January 1, 2009 , subparagraph (A) shall not apply.

“commercial waterway transportation” applies in that section

The term “commercial waterway transportation” means any use of a vessel on any inland or intracoastal waterway of the United States— (A) in the business of transporting property for compensation or hire, or (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). (2) Inland or intracoastal waterway of the United States

“inland or intracoastal waterway of the United States” applies in that section

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. (3) Person

“person” applies in that section

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. (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.

“dry-lease aircraft exchange” applies in that section

The term “dry-lease aircraft exchange” means an agreement, documented by the written program agreements, under which the fractional program aircraft are available, on an as needed basis without crew, to each fractional owner. (5) Special rule relating to use of fractional program aircraft for flight demonstration, maintenance, or training For purposes of subsection (a), a fractional program aircraft shall not be considered to be used for the transportation of a qualified fractional owner, or on account of such qualified fractional owner, when it is used for flight demonstration, maintenance, or crew training.

“fractional owner” applies in that section

The term “fractional owner” means any person owning any interest (including the entire interest) in a fractional program aircraft. (4) Dry-lease aircraft exchange

“fractional ownership aircraft program” applies in that section

The term “fractional ownership aircraft program” means a program under which— (A) a single fractional ownership program manager provides fractional ownership program management services on behalf of the fractional owners, (B) there are 1 or more fractional owners per fractional program aircraft, with at least 1 fractional program aircraft having more than 1 owner, (C) with respect to at least 2 fractional program aircraft, none of the ownership interests in such aircraft are— (i) less than the minimum fractional ownership interest, or (ii) held by the program manager referred to in subparagraph (A), (D) there exists a dry-lease aircraft exchange arrangement among all of the fractional …

“fractional ownership interest” applies in that section

The term “fractional ownership interest” means— (i) the ownership of an interest in a fractional program aircraft, (ii) the holding of a multi-year leasehold interest in a fractional program aircraft, or (iii) the holding of a multi-year leasehold interest which is convertible into an ownership interest in a fractional program aircraft. (D) Fractional owner

“fractional program aircraft” applies in that section

The term “fractional program aircraft” means, with respect to any fractional ownership aircraft program, any aircraft which— (A) is listed as a fractional program aircraft in the management specifications issued to the manager of such program by the Federal Aviation Administration under subpart K of part 91 of title 14, Code of Federal Regulations, and (B) is registered in the United States. (2) Fractional ownership aircraft program

“minimum fractional ownership interest” applies in that section

The term “minimum fractional ownership interest” means, with respect to each type of aircraft— (i) a fractional ownership interest equal to or greater than 1/16 of at least 1 subsonic, fixed wing, or powered lift aircraft, or (ii) a fractional ownership interest equal to or greater than 1/32 of at least 1 rotorcraft aircraft. (C) Fractional ownership interest

“qualified fractional owner” applies in that section

The term “qualified fractional owner” means any fractional owner which has a minimum fractional ownership interest in at least one fractional program aircraft. (B) Minimum fractional ownership interest

“first retail sale” applies throughout its subchapter

The term “first retail sale” means the first sale, for a purpose other than for resale or leasing in a long-term lease, after production, manufacture, or importation. (2) Leases considered as sales Rules similar to the rules of section 4217 shall apply. (3) Use treated as sale (A) In general If any person uses an article taxable under section 4051 before the first retail sale of such article, then such person shall be liable for tax under section 4051 in the same manner as if such article were sold at retail by him.

“long-term lease” applies in that section

the term “long-term lease” means any lease with a term of 1 year or more. In determining a lease term for purposes of the preceding sentence, the rules of section 168(i)(3)(A) shall apply. (f) Certain repairs and modifications not treated as manufacture (1) In general An article described in section 4051(a)(1) shall not be treated as manufactured or produced solely by reason of repairs or modifications to the article (including any modification which changes the transportation function of the article or restores a wrecked article to a functional condition) if the cost of such repairs and modifications does not exceed 75 percent of the retail price of a comparable new article.

“presumed markup percentage” applies throughout its subchapter

the term “presumed markup percentage” means the average markup percentage of retailers of articles of the type involved, as determined by the Secretary. (C) Exceptions under regulations To the extent provided in regulations prescribed by the Secretary, subparagraph (A) shall not apply to specified types of leases where its application is not necessary to carry out the purposes of this subsection.

“related person” applies in that section

the term “related person” means any person who is a member of the same controlled group (within the meaning of section 5061(e)(3)) as the manufacturer, producer, or importer. (ii) Exception for retail establishment To the extent provided in regulations prescribed by the Secretary, a person shall not be treated as a related person with respect to the sale of any article if such article is sold through a permanent retail establishment in the normal course of the trade or business of being a retailer.

“automobile” applies in that section

The term “automobile” means any 4-wheeled vehicle propelled by fuel— (i) which is manufactured primarily for use on public streets, roads, and highways (except any vehicle operated exclusively on a rail or rails), and (ii) which is rated at 6,000 pounds unloaded gross vehicle weight or less. (B) Exception for certain vehicles The term “automobile” does not include any vehicle which is treated as a nonpassenger automobile under the rules which were prescribed by the Secretary of Transportation for purposes of section 32901 of title 49 , United States Code, and which were in effect on the date of the enactment of this section.

“EPA Administrator” applies in that section

The term “EPA Administrator” means the Administrator of the Environmental Protection Agency. (7) Fuel

“fuel” applies in that section

The term “fuel” means gasoline and diesel fuel. The Secretary (after consultation with the Secretary of Transportation) may, by regulation, include any product of petroleum or natural gas within the meaning of such term if he determines that such inclusion is consistent with the need of the Nation to conserve energy. (c) Determination of fuel economy For purposes of this section— (1) In general Fuel economy for any model type shall be measured in accordance with testing and calculation procedures established by the EPA Administrator by regulation.

“fuel economy” applies in that section

The term “fuel economy” means the average number of miles traveled by an automobile per gallon of gasoline (or equivalent amount of other fuel) consumed, as determined by the EPA Administrator in accordance with procedures established under subsection (c). (3) Model type

“manufacturer” applies in that section

The term “manufacturer” includes a producer or importer. (B) Lengthening treated as manufacture For purposes of this section, subchapter G of this chapter, and section 6416(b)(3), the lengthening of an automobile by any person shall be treated as the manufacture of an automobile by such person. (6) EPA Administrator

“model type” applies in that section

The term “model type” means a particular class of automobile as determined by regulation by the EPA Administrator. (4) Model year The term “model year”, with reference to any specific calendar year, means a manufacturer’s annual production period (as determined by the EPA Administrator) which includes January 1 of such calendar year. If a manufacturer has no annual production period,

“model year” applies in that section

the term “model year” means the calendar year. (5) Manufacturer (A) In general

“biasply tire” applies throughout its part

the term “biasply tire” means a pneumatic tire on which the ply cords that extend to the beads are laid at alternate angles substantially less than 90 degrees to the centerline of the tread. (e) Super single tire For purposes of this part,

“rubber” applies throughout its chapter

the term “rubber” includes synthetic and substitute rubber. (c) Tires of the type used on highway vehicles For purposes of this part,

“super single tire” applies throughout its part

the term “super single tire” means a single tire greater than 13 inches in cross section width designed to replace 2 tires in a dual fitment. Such term shall not include any tire designed for steering.

“taxable tire” applies throughout its chapter

the term “taxable tire” means any tire of the type used on highway vehicles if wholly or in part made of rubber and if marked pursuant to Federal regulations for highway use. (b) Rubber For purposes of this chapter,

“tires of the type used on highway vehicles” applies throughout its part

the term “tires of the type used on highway vehicles” means tires of the type used on— (1) motor vehicles which are highway vehicles, or (2) vehicles of the type used in connection with motor vehicles which are highway vehicles. Such term shall not include tires of a type used exclusively on vehicles described in section 4053(8). (d) Biasply For purposes of this part,

“nontaxable use” applies in that section

the term “nontaxable use” means— (1) any use which is exempt from the tax imposed by section 4041(a)(1) other than by reason of a prior imposition of tax, (2) any use in a train, and (3) any use described in section 4041(a)(1)(C)(iii)(II). The term “nontaxable use” does not include the use of kerosene in an aircraft and such term shall not include any use described in section 6421(e)(2)(C).

“commercial aviation” applies throughout its subpart

the term “commercial aviation” means any use of an aircraft in a business of transporting persons or property for compensation or hire by air, unless properly allocable to any transportation exempt from the taxes imposed by sections 4261 and 4271 by reason of section 4281 or 4282 or by reason of subsection (h) or (i) of section 4261. Such term shall not include the use of any aircraft before October 1, 2028 , if tax is imposed under section 4043 with respect to the fuel consumed in such use or if no tax is imposed on such use under section 4043 by reason of subsection (c)(5) thereof.

“diesel fuel” applies throughout its subpart

The term “diesel fuel” means— (i) any liquid (other than gasoline) which is suitable for use as a fuel in a diesel-powered highway vehicle, or a diesel-powered train, (ii) transmix, and (iii) diesel fuel blend stocks identified by the Secretary. (B) Transmix For purposes of subparagraph (A),

“gasoline” applies throughout its subpart

The term “gasoline”— (A) includes any gasoline blend, other than qualified methanol or ethanol fuel (as defined in section 4041(b)(2)(B)), partially exempt methanol or ethanol fuel (as defined in section 4041(m)(2)), or a denatured alcohol, and (B) includes, to the extent prescribed in regulations— (i) any gasoline blend stock, and (ii) any product commonly used as an additive in gasoline (other than alcohol). For purposes of subparagraph (B)(i),

“gasoline blend stock” applies throughout its subpart

the term “gasoline blend stock” means any petroleum product component of gasoline. (3) Diesel fuel (A) In general

“taxable fuel” applies throughout its subpart

The term “taxable fuel” means— (A) gasoline, (B) diesel fuel, and (C) kerosene. (2) Gasoline

“transmix” applies throughout its subpart

the term “transmix” means a byproduct of refined products pipeline operations created by the mixing of different specification products during pipeline transportation. (b) Commercial aviation For purposes of this subpart,

“two-party exchange” applies in that section

The term “two-party exchange” means a transaction, other than a sale, in which taxable fuel is transferred from a delivering person registered under section 4101 as a taxable fuel registrant to a receiving person who is so registered where all of the following occur: (1) The transaction includes a transfer from the delivering person, who holds the inventory position for taxable fuel in the terminal as reflected in the records of the terminal operator. (2) The exchange transaction occurs before or contemporaneous with completion of removal across the rack from the terminal by the receiving person.

“ton” applies throughout its subchapter

The term “ton” means 2,000 pounds.

“United States” applies throughout its subchapter

The term “United States” has the meaning given to it by paragraph (1) of section 638. (4) Ton

“importer” applies throughout its subchapter

The term “importer” means the person entering the vaccine for consumption, use, or warehousing. (b) Credit or refund where vaccine returned to manufacturer, etc., or destroyed (1) In general Under regulations prescribed by the Secretary, whenever any vaccine on which tax was imposed by section 4131 is— (A) returned (other than for resale) to the person who paid such tax, or (B) destroyed, the Secretary shall abate such tax or allow a credit, or pay a refund (without interest), to such person equal to the tax paid under section 4131 with respect to such vaccine.

“taxable vaccine” applies throughout its subchapter

The term “taxable vaccine” means any of the following vaccines which are manufactured or produced in the United States or entered into the United States for consumption, use, or warehousing: (A) Any vaccine containing diphtheria toxoid. (B) Any vaccine containing tetanus toxoid. (C) Any vaccine containing pertussis bacteria, extracted or partial cell bacteria, or specific pertussis antigens. (D) Any vaccine against measles. (E) Any vaccine against mumps. (F) Any vaccine against rubella. (G) Any vaccine containing polio virus. (H) Any HIB vaccine. (I) Any vaccine against hepatitis A. (J) Any vaccine against hepatitis B. (K) Any vaccine against chicken pox.

“United States” applies throughout its subchapter

The term “United States” has the meaning given such term by section 4612(a)(4). (4) Importer

“vaccine” applies throughout its subchapter

The term “vaccine” means any substance designed to be administered to a human being for the prevention of 1 or more diseases. (3) United States

“related person” applies in that section

the term “related person” has the meaning given such term by section 465(b)(3)(C). (4) Regulations Except to the extent provided in regulations, rules similar to the rules of this subsection shall also apply in cases (not described in paragraph (1)) in which intermediaries or other devices are used for purposes of reducing the amount of the tax imposed by section 4161(a).

“sport fishing equipment” applies throughout its part

the term “sport fishing equipment” means— (1) fishing rods and poles (and component parts therefor), (2) fishing reels, (3) fly fishing lines, and other fishing lines not over 130 pounds test, (4) fishing spears, spear guns, and spear tips, (5) items of terminal tackle, including— (A) leaders, (B) artificial lures, (C) artificial baits, (D) artificial flies, (E) fishing hooks, (F) bobbers, (G) sinkers, (H) snaps, (I) drayles, and (J) swivels, but not including natural bait or any item of terminal tackle designed for use and ordinarily used on fishing lines not described in paragraph (3), and (6) the following items of fishing supplies and accessories— (A) fish stringers, (B) creels, (C) …

“local advertising” applies in that section

the term “local advertising” means only advertising which— (A) is initiated or obtained by the purchaser or any subsequent vendee, (B) names the article for which the price is determinable under this section and states the location at which such article may be purchased at retail, and (C) is broadcast over a radio station or television station, appears in a newspaper or magazine, or is displayed by means of an outdoor advertising sign or poster.

“manufacturer” applies in that section

The term “manufacturer” includes a producer or importer. (B) Total gas guzzler tax

“total gas guzzler tax” applies in that section

The term “total gas guzzler tax” means the tax imposed by section 4064, computed at the rate in effect on the date of the first lease.

“total tax” applies in that section

the term “total tax” means— (1) except as provided in paragraph (2), the tax computed on the constructive sale price for such article which would be determined under section 4216(b) if such article were sold at retail on the date of the first lease to which subsection (b) applies; or (2) if the first lease to which subsection (b) applies is not the first lease of the article, the tax computed on the fair market value of such article on the date of the first lease to which subsection (b) applies. Any such computation of tax shall be made at the applicable rate specified in this chapter in effect on the date of the first lease to which subsection (b) applies.

“export” applies in that section

The term “export” includes shipment to a possession of the United States; and

“exported” applies in that section

the term “exported” includes shipped to a possession of the United States. (3) Supplies for vessels or aircraft

“intercity or local bus” applies in that section

The term “intercity or local bus” means any automobile bus which is used predominantly in furnishing (for compensation) passenger land transportation available to the general public if— (i) such transportation is scheduled and along regular routes, or (ii) the seating capacity of such bus is at least 20 adults (not including the driver). (C) School bus

“manufacturer” applies in that section

The term “manufacturer” includes a producer or importer of an article, and, in the case of taxes imposed by subchapter C of chapter 31, includes the retailer with respect to the first retail sale. (2) Export

“nonprofit educational organization” applies in that section

The term “nonprofit educational organization” means an educational organization described in section 170(b)(1)(A)(ii) which is exempt from income tax under section 501(a). The term also includes a school operated as an activity of an organization described in section 501(c)(3) which is exempt from income tax under section 501(a), if such school normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on.

“qualified bus” applies in that section

The term “qualified bus” means— (i) an intercity or local bus, and (ii) a school bus. (B) Intercity or local bus

“school” applies in that section

the term “school” means an educational organization which normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are carried on.

“school bus” applies in that section

The term “school bus” means any automobile bus substantially all the use of which is in transporting students and employees of schools. For purposes of the preceding sentence,

“State or local government” applies in that section

The term “State or local government” means any State, any political subdivision thereof, or the District of Columbia. (5) Nonprofit educational organization

“supplies for vessels or aircraft” applies in that section

The term “supplies for vessels or aircraft” means fuel supplies, ships’ stores, sea stores, or legitimate equipment on vessels of war of the United States or of any foreign nation, vessels employed in the fisheries or in the whaling business, or vessels actually engaged in foreign trade or trade between the Atlantic and Pacific ports of the United States or between the United States and any of its possessions. For purposes of the preceding sentence,

“vessels” applies in that section

the term “vessels” includes civil aircraft employed in foreign trade or trade between the United States and any of its possessions, and

“vessels of war of the United States or of any foreign nation” applies in that section

the term “vessels of war of the United States or of any foreign nation” includes aircraft owned by the United States or by any foreign nation and constituting a part of the armed forces thereof. (4) State or local government

“applicable percentage” applies in that section

The term “applicable percentage” means 3 percent. (c) Special rule For purposes of subsections (a) and (b), in the case of communications services rendered before November 1 of a calendar year for which a bill has not been rendered before the close of such year, a bill shall be treated as having been first rendered on December 31 of such year.

“communications services” applies in that section

The term “communications services” means— (A) local telephone service; (B) toll telephone service; and (C) teletypewriter exchange service. (2) Applicable percentage

“prepaid telephone card” applies in that section

the term “prepaid telephone card” means any card or any other similar arrangement which permits its holder to obtain communications services and pay for such services in advance.

“local telephone service” applies throughout its subchapter

the term “local telephone service” means— (1) the access to a local telephone system, and the privilege of telephonic quality communication with substantially all persons having telephone or radio telephone stations constituting a part of such local telephone system, and (2) any facility or service provided in connection with a service described in paragraph (1). The term “local telephone service” does not include any service which is a “toll telephone service” or a “private communication service” as defined in subsections (b) and (d). (b) Toll telephone service For purposes of this subchapter,

“private communication service” applies throughout its subchapter

the term “private communication service” means— (1) the communication service furnished to a subscriber which entitles the subscriber— (A) to exclusive or priority use of any communication channel or groups of channels, or (B) to the use of an intercommunication system for the subscriber’s stations, regardless of whether such channel, groups of channels, or intercommunication system may be connected through switching with a service described in subsection (a), (b), or (c), (2) switching capacity, extension lines and stations, or other associated services which are provided in connection with, and are necessary or unique to the use of, channels or systems described in paragraph (1), and (3) …

“teletypewriter exchange service” applies throughout its subchapter

the term “teletypewriter exchange service” means the access from a teletypewriter or other data station to the teletypewriter exchange system of which such station is a part, and the privilege of intercommunication by such station with substantially all persons having teletypewriter or other data stations constituting a part of the same teletypewriter exchange system, to which the subscriber is entitled upon payment of a charge or charges (whether such charge or charges are determined as a flat periodic amount, on the basis of distance and elapsed transmission time, or in some other manner).

“toll telephone service” applies throughout its subchapter

the term “toll telephone service” means— (1) a telephonic quality communication for which (A) there is a toll charge which varies in amount with the distance and elapsed transmission time of each individual communication and (B) the charge is paid within the United States, and (2) a service which entitles the subscriber, upon payment of a periodic charge (determined as a flat amount or upon the basis of total elapsed transmission time), to the privilege of an unlimited number of telephonic communications to or from all or a substantial portion of the persons having telephone or radio telephone stations in a specified area which is outside the local telephone system area in which the station …

“nonprofit educational organization” applies in that section

the term “nonprofit educational organization” means an educational organization described in section 170(b)(1)(A)(ii) which is exempt from income tax under section 501(a). The term also includes a school operated as an activity of an organization described in section 501(c)(3) which is exempt from income tax under section 501(a), if such school normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on.

“nonprofit hospital” applies in that section

the term “nonprofit hospital” means a hospital referred to in section 170(b)(1)(A)(iii) which is exempt from income tax under section 501(a). (i) State and local governmental exemption Under regulations prescribed by the Secretary, no tax shall be imposed under section 4251 upon any payment received for services or facilities furnished to the government of any State, or any political subdivision thereof, or the District of Columbia. (j) Exemption for nonprofit educational organizations Under regulations prescribed by the Secretary, no tax shall be imposed under section 4251 on any amount paid by a nonprofit educational organization for services or facilities furnished to such organization.

“aircraft management services” applies in that section

the term “aircraft management services” includes— (i) assisting an aircraft owner with administrative and support services, such as scheduling, flight planning, and weather forecasting, (ii) obtaining insurance, (iii) maintenance, storage and fueling of aircraft, (iv) hiring, training, and provision of pilots and crew, (v) establishing and complying with safety standards, and (vi) such other services as are necessary to support flights operated by an aircraft owner. (C) Lessee treated as aircraft owner (i) In general For purposes of this paragraph,

“aircraft owner” applies in that section

the term “aircraft owner” includes a person who leases the aircraft other than under a disqualified lease. (ii) Disqualified lease For purposes of clause (i),

“disqualified lease” applies in that section

the term “disqualified lease” means a lease from a person providing aircraft management services with respect to such aircraft (or a related person (within the meaning of section 465(b)(3)(C)) to the person providing such services), if such lease is for a term of 31 days or less. (D) Pro rata allocation In the case of amounts paid to any person which (but for this subsection) are subject to the tax imposed by subsection (a), a portion of which consists of amounts described in subparagraph (A), this paragraph shall apply on a pro rata basis only to the portion which consists of amounts described in such subparagraph.

“domestic segment” applies in that section

the term “domestic segment” means any segment consisting of 1 takeoff and 1 landing and which is taxable transportation described in section 4262(a)(1). (3) Changes in segments by reason of rerouting If— (A) transportation is purchased between 2 locations on specified flights, and (B) there is a change in the route taken between such 2 locations which changes the number of domestic segments, but there is no change in the amount charged for such transportation, the tax imposed by paragraph (1) shall be determined without regard to such change in route.

“rural airport” applies in that section

the term “rural airport” means, with respect to any calendar year, any airport if— (i) there were fewer than 100,000 commercial passengers departing by air (in the case of any airport described in clause (ii)(III), on flight segments of at least 100 miles) during the second preceding calendar year from such airport, and (ii) such airport— (I) is not located within 75 miles of another airport which is not described in clause (i), (II) is receiving essential air service subsidies as of the date of the enactment of this paragraph, or (III) is not connected by paved roads to another airport.

“225-mile zone” applies in that section

The term “225-mile zone” means that portion of Canada and Mexico which is not more than 225 miles from the nearest point in the continental United States. (3) Uninterrupted international air transportation

“continental United States” applies in that section

The term “continental United States” means the District of Columbia and the States other than Alaska and Hawaii. (2) 225-mile zone

“qualified agreement” applies in that section

the term “qualified agreement” means an agreement between the United States and Canada or Mexico (as the case may be)— (A) setting forth that portion of such country which is not to be treated as within the 225-mile zone, and (B) providing that the tax imposed by such country on transportation described in subparagraph (A) will be at a level which the Secretary of the Treasury determines to be appropriate.

“taxable transportation” applies throughout its part

the term “taxable transportation” means— (1) transportation by air which begins in the United States or in the 225–mile zone and ends in the United States or in the 225–mile zone; and (2) in the case of transportation by air other than transportation described in paragraph (1), that portion of such transportation which is directly or indirectly from one port or station in the United States to another port or station in the United States, but only if such portion is not a part of uninterrupted international air transportation (within the meaning of subsection (c)(3)).

“transportation” applies throughout its part

the term “transportation” includes layover or waiting time and movement of the aircraft in deadhead service. (e) Authority to waive 225-mile zone provisions (1) In general If the Secretary of the Treasury determines that Canada or Mexico has entered into a qualified agreement— (A) the Secretary shall publish a notice of such determination in the Federal Register, and (B) effective with respect to transportation beginning after the date specified in such notice, to the extent provided in the agreement, the term “225-mile zone” shall not include part or all of the country with respect to which such determination is made.

“uninterrupted international air transportation” applies in that section

The term “uninterrupted international air transportation” means any transportation by air which is not transportation described in subsection (a)(1) and in which— (A) the scheduled interval between (i) the beginning or end of the portion of such transportation which is directly or indirectly from one port or station in the United States to another port or station in the United States and (ii) the end or beginning of the other portion of such transportation is not more than 12 hours, and (B) the scheduled interval between the beginning or end and the end or beginning of any two segments of the portion of such transportation referred to in subparagraph (A)(i) is not more than 12 hours.

“northern portion of the Western Hemisphere” applies in that section

the term “northern portion of the Western Hemisphere” means the area lying west of the 30th meridian west of Greenwich, east of the international dateline, and north of the Equator, but not including any country of South America.

“taxable transportation” applies throughout its part

the term “taxable transportation” means transportation by air which begins and ends in the United States. (b) Exceptions For purposes of this part, the term “taxable transportation” does not include— (1) that portion of any transportation which meets the requirements of paragraphs (1), (2), (3), and (4) of section 4262(b), or (2) under regulations prescribed by the Secretary, transportation of property in the course of exportation (including shipment to a possession of the United States) by continuous movement, and in due course so exported.

“transportation” applies throughout its part

the term “transportation” includes layover or waiting time and movement of the aircraft in deadhead service.

“maximum certificated takeoff weight” applies in that section

the term “maximum certificated takeoff weight” means the maximum such weight contained in the type certificate or airworthiness certificate. (c) Sightseeing For purposes of this section, an aircraft shall not be considered as operated on an established line at any time during which such aircraft is being operated on a flight the sole purpose of which is sightseeing. (d) Jet aircraft For purposes of this section, the term “jet aircraft” shall not include any aircraft which is a rotorcraft or propeller aircraft.

“affiliated group” applies in that section

the term “affiliated group” has the meaning assigned to such term by section 1504(a), except that all corporations shall be treated as includible corporations (without any exclusion under section 1504(b)).

“foreign insurer or reinsurer” applies in that section

the term “foreign insurer or reinsurer” means an insurer or reinsurer who is a nonresident alien individual, or a foreign partnership, or a foreign corporation. The term includes a nonresident alien individual, foreign partnership, or foreign corporation which shall become bound by an obligation of the nature of an indemnity bond. The term does not include a foreign government, or municipal or other corporation exercising the taxing power. (b) Policy of casualty insurance For purposes of section 4371(1),

“indemnity bond” applies throughout its chapter

the term “indemnity bond” means any instrument by whatever name called whereby an obligation of the nature of an indemnity, fidelity, or surety bond is made, continued, or renewed. The term includes any bond for indemnifying any person who shall have become bound or engaged as surety, and any bond for the due execution or performance of any contract, obligation, or requirement, or the duties of any office or position, and to account for money received by virtue thereof, where a premium is charged for the execution of such bond. (d) Insured For purposes of section 4371(1),

“insured” applies throughout its chapter

the term “insured” means— (1) a domestic corporation or partnership, or an individual resident of the United States, against, or with respect to, hazards, risks, losses, or liabilities wholly or partly within the United States, or (2) a foreign corporation, foreign partnership, or nonresident individual, engaged in a trade or business within the United States, against, or with respect to, hazards, risks, losses, or liabilities within the United States. (e) Policy of life, sickness, or accident insurance, or annuity contract For the purpose of section 4371(2),

“policy of casualty insurance” applies in that section

the term “policy of casualty insurance” means any policy (other than life) or other instrument by whatever name called whereby a contract of insurance is made, continued, or renewed. (c) Indemnity bond For purposes of this chapter,

“policy of life, sickness, or accident insurance, or annuity contract” applies throughout its chapter

the term “policy of life, sickness, or accident insurance, or annuity contract” means any policy or other instrument by whatever name called whereby a contract of insurance or an annuity contract is made, continued, or renewed with respect to the life or hazards to the person of a citizen or resident of the United States. (f) Policy of reinsurance For the purpose of section 4371(3),

“policy of reinsurance” applies throughout its chapter

the term “policy of reinsurance” means any policy or other instrument by whatever name called whereby a contract of reinsurance is made, continued, or renewed against, or with respect to, any of the hazards, risks, losses, or liabilities covered by contracts taxable under paragraph (1) or (2) of section 4371.

“specified health insurance policy” applies in that section

the term “specified health insurance policy” means any accident or health insurance policy (including a policy under a group health plan) issued with respect to individuals residing in the United States. (2) Exemption for certain policies The term “specified health insurance policy” does not include any insurance if substantially all of its coverage is of excepted benefits described in section 9832(c). (3) Treatment of prepaid health coverage arrangements (A) In general In the case of any arrangement described in subparagraph (B), such arrangement shall be treated as a specified health insurance policy, and the person referred to in such subparagraph shall be treated as the issuer.

“applicable self-insured health plan” applies in that section

the term “applicable self-insured health plan” means any plan for providing accident or health coverage if— (1) any portion of such coverage is provided other than through an insurance policy, and (2) such plan is established or maintained— (A) by 1 or more employers for the benefit of their employees or former employees, (B) by 1 or more employee organizations for the benefit of their members or former members, (C) jointly by 1 or more employers and 1 or more employee organizations for the benefit of employees or former employees, (D) by a voluntary employees’ beneficiary association described in section 501(c)(9), (E) by any organization described in section 501(c)(6), or (F) in the case …

“plan sponsor” applies in that section

the term “plan sponsor” means— (A) the employer in the case of a plan established or maintained by a single employer, (B) the employee organization in the case of a plan established or maintained by an employee organization, (C) in the case of— (i) a plan established or maintained by 2 or more employers or jointly by 1 or more employers and 1 or more employee organizations, (ii) a multiple employer welfare arrangement, or (iii) a voluntary employees’ beneficiary association described in section 501(c)(9), the association, committee, joint board of trustees, or other similar group of representatives of the parties who establish or maintain the plan, or (D) the cooperative or association …

“accident and health coverage” applies throughout its subchapter

The term “accident and health coverage” means any coverage which, if provided by an insurance policy, would cause such policy to be a specified health insurance policy (as defined in section 4375(c)). (2) Insurance policy

“exempt governmental program” applies throughout its subchapter

the term “exempt governmental program” means— (A) any insurance program established under title XVIII of the Social Security Act, (B) the medical assistance program established by title XIX or XXI of the Social Security Act, (C) any program established by Federal law for providing medical care (other than through insurance policies) to individuals (or the spouses and dependents thereof) by reason of such individuals being members of the Armed Forces of the United States or veterans, and (D) any program established by Federal law for providing medical care (other than through insurance policies) to members of Indian tribes (as defined in section 4(d) of the Indian Health Care Improvement …

“insurance policy” applies throughout its subchapter

The term “insurance policy” means any policy or other instrument whereby a contract of insurance is issued, renewed, or extended. (3) United States

“person” applies throughout its subchapter

the term “person” includes any governmental entity, and (B) notwithstanding any other law or rule of law, governmental entities shall not be exempt from the fees imposed by this subchapter except as provided in paragraph (2). (2) Treatment of exempt governmental programs In the case of an exempt governmental program, no fee shall be imposed under section 4375 or section 4376 on any covered life under such program. (3) Exempt governmental program defined For purposes of this subchapter,

“United States” applies throughout its subchapter

The term “United States” includes any possession of the United States. (b) Treatment of governmental entities (1) In general For purposes of this subchapter—;

“lottery” applies throughout its chapter

The term “lottery” includes the numbers game, policy, and similar types of wagering. The term does not include— (A) any game of a type in which usually (i) the wagers are placed, (ii) the winners are determined, and (iii) the distribution of prizes or other property is made, in the presence of all persons placing wagers in such game, and (B) any drawing conducted by an organization exempt from tax under sections 501 and 521, if no part of the net proceeds derived from such drawing inures to the benefit of any private shareholder or individual.

“wager” applies throughout its chapter

The term “wager” means— (A) any wager with respect to a sports event or a contest placed with a person engaged in the business of accepting such wagers, (B) any wager placed in a wagering pool with respect to a sports event or a contest, if such pool is conducted for profit, and (C) any wager placed in a lottery conducted for profit. (2) Lottery

“commercial cargo” applies throughout its subchapter

The term “commercial cargo” means any cargo transported on a commercial vessel, including passengers transported for compensation or hire. (B) Certain items not included The term “commercial cargo” does not include— (i) bunker fuel, ship’s stores, sea stores, or the legitimate equipment necessary to the operation of a vessel, or (ii) fish or other aquatic animal life caught and not previously landed on shore. (4) Commercial vessel (A) In general

“commercial vessel” applies throughout its subchapter

The term “commercial vessel” means any vessel used— (i) in transporting cargo by water for compensation or hire, or (ii) in transporting cargo by water in the business of the owner, lessee, or operator of the vessel. (B) Exclusion of ferries (i) In general The term “commercial vessel” does not include any ferry engaged primarily in the ferrying of passengers (including their vehicles) between points within the United States, or between the United States and contiguous countries. (ii) Ferry

“ferry” applies throughout its subchapter

The term “ferry” means any vessel which arrives in the United States on a regular schedule during its operating season at intervals of at least once each business day. (5) Value (A) In general

“port” applies throughout its subchapter

The term “port” means any channel or harbor (or component thereof) in the United States, which— (i) is not an inland waterway, and (ii) is open to public navigation. (B) Exception for certain facilities The term “port” does not include any channel or harbor with respect to which no Federal funds have been used since 1977 for construction, maintenance, or operation, or which was deauthorized by Federal law before 1985. (C) Special rule for Columbia River

“port use” applies throughout its subchapter

The term “port use” means— (A) the loading of commercial cargo on, or (B) the unloading of commercial cargo from, a commercial vessel at a port. (2) Port (A) In general

“United States mainland” applies in that section

the term “United States mainland” means the continental United States (not including Alaska). (c) Coordination of tax where transportation subject to tax imposed by section 4042 No tax shall be imposed under this subchapter with respect to the loading or unloading of any cargo on or from a vessel if any fuel of such vessel has been (or will be) subject to the tax imposed by section 4042 (relating to tax on fuel used in commercial transportation on inland waterways). (d) Nonapplicability of tax to exports The tax imposed by section 4461(a) shall not apply to any port use with respect to any commercial cargo to be exported from the United States.

“value” applies throughout its subchapter

The term “value” means, except as provided in regulations, the value of any commercial cargo as determined by standard commercial documentation. (B) Transportation of passengers In the case of the transportation of passengers for hire,

“covered voyage” applies throughout its subchapter

The term “covered voyage” means a voyage of— (i) a commercial passenger vessel which extends over 1 or more nights, or (ii) a commercial vessel transporting passengers engaged in gambling aboard the vessel beyond the territorial waters of the United States, during which passengers embark or disembark the vessel in the United States. Such term shall not include any voyage on any vessel owned or operated by the United States, a State, or any agency or subdivision thereof. (B) Exception for certain voyages on passenger vessels The term “covered voyage” shall not include a voyage of a passenger vessel of less than 12 hours between 2 ports in the United States. (2) Passenger vessel

“passenger vessel” applies throughout its subchapter

The term “passenger vessel” means any vessel having berth or stateroom accommodations for more than 16 passengers.

“credit card” applies in that section

The term “credit card” has the same meaning given such term under section 920(c)(3) of the Electronic Fund Transfer Act ( 15 U.S.C. 1693 o –2(c)(3)). (3) Debit card

“debit card” applies in that section

The term “debit card” has the same meaning given such term under section 920(c)(2) of the Electronic Fund Transfer Act ( 15 U.S.C. 1693 o –2(c)(2)), without regard to subparagraph (B) of such section. (f) Application of anti-conduit rules For purposes of section 7701( l ), with respect to any multiple-party arrangements involving the sender, a remittance transfer shall be treated as a financing transaction.

“highway motor vehicle” applies throughout its subchapter

the term “highway motor vehicle” means any motor vehicle which is a highway vehicle. (b) Taxable gross weight For purposes of this subchapter, the term “taxable gross weight”, when used with respect to any highway motor vehicle, means the sum of— (1) the actual unloaded weight of— (A) such highway motor vehicle fully equipped for service, and (B) the semitrailers and trailers (fully equipped for service) customarily used in connection with highway motor vehicles of the same type as such highway motor vehicle, and (2) the weight of the maximum load customarily carried on highway motor vehicles of the same type as such highway motor vehicle and on the semitrailers and trailers referred to in …

“State” applies throughout its subchapter

The term “State” means a State and the District of Columbia. (2) Year

“taxable period” applies throughout its subchapter

The term “taxable period” means any year beginning before July 1, 2029 , and the period which begins on July 1, 2029 , and ends at the close of September 30, 2029 . (5) Customary use A semitrailer or trailer shall be treated as customarily used in connection with a highway motor vehicle if such vehicle is equipped to tow such semitrailer or trailer. (d) Special rule for taxable period in which termination date occurs In the case of the taxable period which ends on September 30, 2029 , the amount of the tax imposed by section 4481 with respect to any highway motor vehicle shall be determined by reducing each dollar amount in the table contained in section 4481(a) by 75 percent.

“use” applies throughout its subchapter

The term “use” means use in the United States on the public highways. (4) Taxable period

“year” applies throughout its subchapter

The term “year” means the one-year period beginning on July 1. (3) Use

“agricultural vehicle” applies in that section

The term “agricultural vehicle” means any highway motor vehicle— (I) used primarily for farming purposes, and (II) registered (under the laws of the State in which such vehicle is required to be registered) as a highway motor vehicle used for farming purposes. (ii) Farming purposes

“farm commodity” applies in that section

The term “farm commodity” means any agricultural or horticultural commodity, feed, seed, fertilizer, livestock, bees, poultry, fur-bearing animals, or wildlife. (6) Owner defined For purposes of this subsection,

“farming purposes” applies in that section

The term “farming purposes” means the transporting of any farm commodity to or from a farm or the use directly in agricultural production. (iii) Farm commodity

“owner” applies in that section

the term “owner” means, with respect to any highway motor vehicle, the person described in section 4481(b). (e) Reduction in tax for trucks used in logging The tax imposed by section 4481 shall be reduced by 25 percent with respect to any highway motor vehicle if— (1) the exclusive use of such vehicle during any taxable period is the transportation, to and from a point located on a forested site, of products harvested from such forested site, and (2) such vehicle is registered (under the laws of the State in which such vehicle is required to be registered) as a highway motor vehicle used in the transportation of harvested forest products. [(f) Repealed. Pub. L.

“qualified blood collector organization” applies in that section

The term “qualified blood collector organization” has the meaning given such term by section 7701(a)(49). (i) Termination of exemptions Subsections (a) and (c) shall not apply on and after October 1, 2029 .

“qualified blood collector vehicle” applies in that section

the term “qualified blood collector vehicle” means a vehicle at least 80 percent of the use of which during the prior taxable period was by a qualified blood collector organization in the collection, storage, or transportation of blood.

“applicable foreign corporation” applies in that section

The term “applicable foreign corporation” means any foreign corporation the stock of which is traded on an established securities market (within the meaning of section 7704(b)(1)). (B) Covered surrogate foreign corporation

“covered corporation” applies in that section

the term “covered corporation” means any domestic corporation the stock of which is traded on an established securities market (within the meaning of section 7704(b)(1)). (c) Repurchase For purposes of this section— (1) In general

“covered surrogate foreign corporation” applies in that section

The term “covered surrogate foreign corporation” means any surrogate foreign corporation (as determined under section 7874(a)(2)(B) by substituting “ September 20, 2021 ” for “ March 4, 2003 ” each place it appears) the stock of which is traded on an established securities market (within the meaning of section 7704(b)(1)), but only with respect to taxable years which include any portion of the applicable period with respect to such corporation under section 7874(d)(1). (C) Expatriated entity

“expatriated entity” applies in that section

The term “expatriated entity” has the meaning given such term by section 7874(a)(2)(A). (e) Exceptions Subsection (a) shall not apply— (1) to the extent that the repurchase is part of a reorganization (within the meaning of section 368(a)) and no gain or loss is recognized on such repurchase by the shareholder under chapter 1 by reason of such reorganization, (2) in any case in which the stock repurchased is, or an amount of stock equal to the value of the stock repurchased is, contributed to an employer-sponsored retirement plan, employee stock ownership plan, or similar plan, (3) in any case in which the total value of the stock repurchased during the taxable year does not exceed …

“repurchase” applies in that section

The term “repurchase” means— (A) a redemption within the meaning of section 317(b) with regard to the stock of a covered corporation, and (B) any transaction determined by the Secretary to be economically similar to a transaction described in subparagraph (A). (2) Treatment of purchases by specified affiliates (A) In general The acquisition of stock of a covered corporation by a specified affiliate of such covered corporation, from a person who is not the covered corporation or a specified affiliate of such covered corporation, shall be treated as a repurchase of the stock of the covered corporation by such covered corporation. (B) Specified affiliate For purposes of this section,

“specified affiliate” applies in that section

the term “specified affiliate” means, with respect to any corporation— (i) any corporation more than 50 percent of the stock of which is owned (by vote or by value), directly or indirectly, by such corporation, and (ii) any partnership more than 50 percent of the capital interests or profits interests of which is held, directly or indirectly, by such corporation.

“barrel” applies throughout its subchapter

The term “barrel” means 42 United States gallons. (9) Fractional part of barrel In the case of a fraction of a barrel, the tax imposed by section 4611 shall be the same fraction of the amount of such tax imposed on a whole barrel. (b) Only 1 tax imposed with respect to any product No tax shall be imposed by section 4611 with respect to any petroleum product if the person who would be liable for such tax establishes that a prior tax imposed by such section has been imposed with respect to such product.

“crude oil” applies throughout its subchapter

The term “crude oil” includes crude oil condensates and natural gasoline. (2) Domestic crude oil

“domestic crude oil” applies throughout its subchapter

The term “domestic crude oil” means any crude oil produced from a well located in the United States. (3) Petroleum product

“petroleum product” applies throughout its subchapter

The term “petroleum product” includes crude oil. (4) United States (A) In general

“premises” applies throughout its subchapter

The term “premises” has the same meaning as when used for purposes of determining gross income from the property under section 613. (8) Barrel

“United States” applies throughout its subchapter

The term “United States” means the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, any possession of the United States, the Commonwealth of the Northern Mariana Islands, and the Trust Territory of the Pacific Islands. (B) United States includes continental shelf areas The principles of section 638 shall apply for purposes of the term “United States”. (C) United States includes foreign trade zones

“United States refinery” applies throughout its subchapter

The term “United States refinery” means any facility in the United States at which crude oil is refined. (6) Refineries which produce natural gasoline In the case of any United States refinery which produces natural gasoline from natural gas, the gasoline so produced shall be treated as received at such refinery at the time so produced. (7) Premises

“importer” applies throughout its subchapter

The term “importer” means the person entering the taxable chemical for consumption, use, or warehousing. (4) Ton

“inventory exchange” applies in that section

the term “inventory exchange” means any exchange in which 2 persons exchange property which is, in the hands of each person, property described in section 1221(a)(1). (d) Refund or credit for certain uses (1) In general Under regulations prescribed by the Secretary, if— (A) a tax under section 4661 was paid with respect to any taxable chemical, and (B) such chemical was used by any person in the manufacture or production of any other substance which is a taxable chemical, then an amount equal to the tax so paid shall be allowed as a credit or refund (without interest) to such person in the same manner as if it were an overpayment of tax imposed by such section.

“organic taxable chemical” applies in that section

the term “organic taxable chemical” means any taxable chemical which is an organic substance. (c) Use and certain exchanges by manufacturer, etc. (1) Use treated as sale Except as provided in subsections (b) and (e), if any person manufactures, produces, or imports any taxable chemical and uses such chemical, then such person shall be liable for tax under section 4661 in the same manner as if such chemical were sold by such person.

“qualified animal feed substance” applies in that section

the term “qualified animal feed substance” means any substance— (i) used in a qualified animal feed use by the manufacturer, producer, or importer, (ii) sold for use by any purchaser in a qualified animal feed use, or (iii) sold for resale by any purchaser for use, or resale for ultimate use, in a qualified animal feed use. (C) Qualified animal feed use

“qualified animal feed use” applies in that section

The term “qualified animal feed use” means any use in the manufacture or production of animal feed or animal feed supplements, or of ingredients used in animal feed or animal feed supplements. (D) Taxation of nonqualified sale or use For purposes of section 4661(a), if no tax was imposed by such section on the sale or use of any chemical by reason of subparagraph (A), the 1st person who sells or uses such chemical other than in a sale or use described in subparagraph (A) shall be treated as the manufacturer of such chemical.

“qualified fertilizer substance” applies in that section

the term “qualified fertilizer substance” means any substance— (i) used in a qualified fertilizer use by the manufacturer, producer, or importer, (ii) sold for use by any purchaser in a qualified fertilizer use, or (iii) sold for resale by any purchaser for use, or resale for ultimate use, in a qualified fertilizer use. (C) Qualified fertilizer use

“qualified fertilizer use” applies in that section

The term “qualified fertilizer use” means any use in the manufacture or production of fertilizer or for direct application as a fertilizer. (D) Taxation of nonqualified sale or use For purposes of section 4661(a), if no tax was imposed by such section on the sale or use of any chemical by reason of subparagraph (A), the first person who sells or uses such chemical other than in a sale or use described in subparagraph (A) shall be treated as the manufacturer of such chemical.

“qualified fuel substance” applies in that section

the term “qualified fuel substance” means any substance— (i) used in a qualified fuel use by the manufacturer, producer, or importer, (ii) sold for use by any purchaser in a qualified fuel use, or (iii) sold for resale by any purchaser for use, or resale for ultimate use, in a qualified fuel use. (C) Qualified fuel use For purposes of this subsection,

“qualified fuel use” applies in that section

the term “qualified fuel use” means— (i) any use in the manufacture or production of any motor fuel, diesel fuel, aviation fuel, or jet fuel, or (ii) any use as such a fuel. (D) Chemicals to which paragraph applies For purposes of this subsection, the chemicals described in this subparagraph are acetylene, benzene, butylene, butadiene, ethylene, naphthalene, propylene, toluene, and xylene.

“solid waste” applies in that section

the term “solid waste” has the meaning given such term by section 1004 of the Solid Waste Disposal Act, except that such term shall not include any byproduct, coproduct, or other waste from any process of smelting, refining, or otherwise extracting any metal. (9) Substances used in the production of animal feed (A) In general In the case of— (i) nitric acid, (ii) sulfuric acid, (iii) ammonia, or (iv) methane used to produce ammonia, which is a qualified animal feed substance, no tax shall be imposed under section 4661(a). (B) Qualified animal feed substance For purposes of this section,

“taxable chemical” applies throughout its subchapter

the term “taxable chemical” means any substance— (A) which is listed in the table under section 4661(b), and (B) which is manufactured or produced in the United States or entered into the United States for consumption, use, or ware­housing. (2) United States

“ton” applies throughout its subchapter

The term “ton” means 2,000 pounds. In the case of any taxable chemical which is a gas,