[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3416 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 3416

To amend the Internal Revenue Code of 1986 to suspend the tax on ozone-
   depleting chemicals used as propellants in metered-dose inhalers.


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                    IN THE HOUSE OF REPRESENTATIVES

                              May 8, 1996

  Mr. English of Pennsylvania (for himself, Mr. Houghton, Mr. Herger, 
  Mrs. Kennelly, Mr. Crane, Mr. McCrery, Mr. Fox of Pennsylvania, Mr. 
  Wilson, Mr. Rohrabacher, and Mr. Calvert) introduced the following 
      bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to suspend the tax on ozone-
   depleting chemicals used as propellants in metered-dose inhalers.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. TEMPORARY EXEMPTION FROM TAX ON OZONE-DEPLETING CHEMICALS 
              FOR METERED-DOSE INHALERS.

    (a) In General.--Paragraph (4) of section 4682(g) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(4) Chemicals used as propellants in metered-dose 
        inhalers.--
                    ``(A) Rate of tax.--
                            ``(i) In general.--In the case of--
                                    ``(I) any use of any substance as a 
                                propellant in any metered-dose inhaler, 
                                or
                                    ``(II) any qualified sale by the 
                                manufacturer, producer, or importer of 
                                any substance,
                        the tax imposed by section 4681 shall be equal 
                        to $1.67 per pound.
                            ``(ii) Temporary exemption from tax.--No 
                        tax shall be imposed by section 4681 on any use 
                        or sale referred to in clause (i) after 
                        December 31, 1995, and before January 1, 2001.
                    ``(B) Qualified sale.--For purposes of subparagraph 
                (A), the term `qualified sale' means any sale by the 
                manufacturer, producer, or importer of any substance--
                            ``(i) for use by the purchaser as 
                        propellants in metered-dose inhalers, or
                            ``(ii) for resale by the purchaser to a 2d 
                        purchaser for such use by the 2d purchaser.
                The preceding sentence shall apply only if the 
                manufacturer, producer, and importer, and the 1st and 
                2d purchasers (if any) meet such registration 
                requirements as may be prescribed by the Secretary.
                    ``(C) Overpayments.--If any substance on which tax 
                was paid under this subchapter is used by any person as 
                a propellant in any metered-dose inhaler, credit or 
                refund without interest shall be allowed to such person 
                in an amount equal to the excess of--
                            ``(i) the tax paid under this subchapter on 
                        such substance, over
                            ``(ii) the tax (if any) which would be 
                        imposed by section 4681 if such substance were 
                        used for such use by the manufacturer, 
                        producer, or importer thereof on the date of 
                        its use by such person.
                Amounts payable under the preceding sentence with 
                respect to uses during the taxable year shall be 
                treated as described in section 34(a) for such year 
                unless claim therefor has been timely filed under this 
                subparagraph.''
    (b) Effective Date.--The amendment made by this section shall apply 
to sales and uses after December 31, 1995.
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