H.R. 2146: To amend the Internal Revenue Code of 1986 to provide refunds with respect to certain dyed fuels that are exempt from tax and with respect to which tax was previously paid.

This bill proposes changes to the Internal Revenue Code to allow for refunds of taxes previously paid on certain dyed fuels that are tax-exempt. Here’s a breakdown of its main aspects:

1. Refund Eligibility for Dyed Fuels

The bill specifies that individuals or entities that can prove they removed "eligible indelibly dyed diesel fuel or kerosene" from a terminal are entitled to receive a refund of the previously paid tax on these fuels.

2. Definition of Eligible Fuels

For the purposes of this bill, "eligible indelibly dyed diesel fuel or kerosene" is categorized as:

• Fuel on which a federal excise tax was previously paid but has not been credited or refunded.
• Fuel that is exempt from taxation under specific provisions of the tax code (specifically, under section 4082(a)).

3. Refund Process

When an eligible individual or entity requests a refund, the Secretary of the Treasury will issue a payment equal to the tax paid for the eligible dyed fuel or kerosene, but without any interest on that amount.

4. Treatment of Payments

The bill clarifies how these payments will be recorded and treated in federal financial records, categorizing them similarly to other tax refund payments.

5. Conforming Amendments

To accommodate the new section regarding dyed fuels, the bill proposes updates to several sections of the Internal Revenue Code to reflect the new refund eligibility.

6. Effective Date

The provisions of this bill will apply to eligible dyed fuels or kerosene removed from terminals on or after 180 days post-enactment of this legislation.

Relevant Companies

None found