WHAT THE LAW DOINCongress, in plain words

The law › Title 26, Internal Revenue Code › Chapter 1

26 U.S.C. 40: Alcohol, etc., used as fuel

Created in 1980 by Public Law 96-223. Changed by 24 later laws. No bill we track in this Congress changes it.

1 part of federal rules cite it as their authority, written by Internal Revenue Service, Department of the Treasury (1).

This Congress

No bill we track in the 119th Congress changes this section.

    How it got here

    2022

    • Pub. L. 117–169 substituted "2025" for "2022". Law text · (b)

    2020

    • Pub. L. 116–260 substituted "January 1, 2022" for "January 1, 2021". (Consolidated Appropriations Act, 2021) Law text · (b)

    2019

    • Pub. L. 116–94 substituted "January 1, 2021" for "January 1, 2018". (Further Consolidated Appropriations Act, 2020) Law text · (b)

    2018

    • Pub. L. 115–123 substituted "January 1, 2018" for "January 1, 2017". (Bipartisan Budget Act of 2018) Law text · (b)
    • Pub. L. 115–141 substituted "Aggregation" for "Aggregration" in heading. (Consolidated Appropriations Act, 2018) Law text · (g)

    2015

    • Pub. L. 114–113 substituted "January 1, 2017" for "January 1, 2015". (Consolidated Appropriations Act, 2016) Law text · (b)

    2014

    • Pub. L. 113–295 substituted "January 1, 2015" for "January 1, 2014". Law text · (b)

    2013

    • Pub. L. 112–240, §404(b)(3)(A)(i), substituted "second generation biofuel" for "cellulosic biofuel" wherever appearing in text in subsecs. (a)(4), (b)(4)(C), (6), and (d)(3)(D), (6). (American Taxpayer Relief Act of 2012) Law text
    • Pub. L. 112–240, §404(b)(3)(A)(ii), substituted "Second generation" for "Cellulosic" in heading. (American Taxpayer Relief Act of 2012) Law text · (b)
    • Pub. L. 112–240, §404(b)(3)(A)(iii), substituted "second generation" for "cellulosic" in heading. (American Taxpayer Relief Act of 2012) Law text · (b), (D)
    • Pub. L. 112–240, §404(b)(3)(A)(ii), substituted "Second generation" for "Cellulosic" in heading. (American Taxpayer Relief Act of 2012) Law text · (b)
    • Pub. L. 112–240, §404(b)(1), amended subcl. (I) generally. Prior to amendment, subcl. (I) read as follows: "is produced from any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis, and". (American Taxpayer Relief Act of 2012) Law text · (b)
    • Pub. L. 112–240, §404(b)(3)(B), substituted "The term 'second generation biofuel' shall not" for "Such term shall not". (American Taxpayer Relief Act of 2012) Law text · (b)
    • Pub. L. 112–240, §404(b)(2), added subpars. (F) and (G). Former subpars. (F) and (G) redesignated as (H) and (I), respectively. (American Taxpayer Relief Act of 2012) Law text · (b), (G)
    • Pub. L. 112–240, §404(b)(3)(A)(iii), substituted "second generation" for "cellulosic" in heading. (American Taxpayer Relief Act of 2012) Law text · (b)
    • Pub. L. 112–240, §404(b)(2), redesignated subpar. (F) as (H). Former subpar. (H) redesignated (J). (American Taxpayer Relief Act of 2012) Law text · (b)
    • Pub. L. 112–240, §404(a)(1), amended subpar. (H) generally. Prior to amendment, text read as follows: "This paragraph shall apply with respect to qualified cellulosic biofuel production after December 31, 2008, and before January 1, 2013." (American Taxpayer Relief Act of 2012) Law text · (b)
    • Pub. L. 112–240, §404(b)(2), redesignated subpars. (G) and (H) as (I) and (J), respectively. (American Taxpayer Relief Act of 2012) Law text · (b), (J)
    • Pub. L. 112–240, §404(b)(3)(A)(ii), substituted "Second generation" for "Cellulosic" in heading. (American Taxpayer Relief Act of 2012) Law text · (d)
    • Pub. L. 112–240, §404(b)(3)(A)(iii), substituted "second generation" for "cellulosic" in heading. (American Taxpayer Relief Act of 2012) Law text · (d)
    • Pub. L. 112–240, §404(a)(2), struck out "or subsection (b)(6)(H)" after "paragraph (1)". (American Taxpayer Relief Act of 2012) Law text · (e)
    • Pub. L. 112–240, §404(b)(3)(A)(iii), substituted "second generation" for "cellulosic" in heading. (American Taxpayer Relief Act of 2012) Law text · (e)

    2010

    • Pub. L. 111–240, §2121(a)(4), substituted "certain" for "unprocessed" in heading. (Small Business Jobs Act of 2010) Law text · (b)
    • Pub. L. 111–152 added cl. (iii). (Health Care and Education Reconciliation Act of 2010) Law text · (b)
    • Pub. L. 111–240, §2121(a)(1)–(3), added subcl. (III). (Small Business Jobs Act of 2010) Law text · (b)
    • Pub. L. 111–312, §708(a)(1)(A), substituted "December 31, 2011" for "December 31, 2010". (Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010) Law text · (e)
    • Pub. L. 111–312, §708(a)(1)(B), substituted "January 1, 2012" for "January 1, 2011". (Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010) Law text · (e)
    • Pub. L. 111–312, §708(a)(2), substituted "2011" for "2010". (Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010) Law text · (h), (2)

    2008

    • Pub. L. 110–246, §15321(b)(3)(B), inserted ", etc.," after "Alcohol" in section catchline. (Food, Conservation, and Energy Act of 2008) Law text
    • Pub. L. 110–246, §15321(a), added par. (4). (Food, Conservation, and Energy Act of 2008) Law text · (a)
    • Pub. L. 110–246, §15321(e), inserted "(determined without regard to any qualified cellulosic biofuel production)" after "15,000,000 gallons". (Food, Conservation, and Energy Act of 2008) Law text · (b)
    • Pub. L. 110–246, §15321(b)(1), added par. (6). (Food, Conservation, and Energy Act of 2008) Law text · (b)
    • Pub. L. 110–246, §15321(c)(2)(A), substituted "Small ethanol producer" for "Producer" in heading. (Food, Conservation, and Energy Act of 2008) Law text · (d)
    • Pub. L. 110–246, §15321(c)(1), added subpar. (D). Former subpar. (D) redesignated (E). (Food, Conservation, and Energy Act of 2008) Law text · (d)
    • Pub. L. 110–246, §15321(c)(2)(B), substituted "(C), or (D)" for "or (C)". (Food, Conservation, and Energy Act of 2008) Law text · (d)
    • Pub. L. 110–246, §15321(c)(1), redesignated subpar. (D) as (E). (Food, Conservation, and Energy Act of 2008) Law text · (d)
    • Pub. L. 110–246, §15332(a), substituted "2 percent" for "5 percent". (Food, Conservation, and Energy Act of 2008) Law text · (d)
    • Pub. L. 110–246, §15321(d), added par. (6). (Food, Conservation, and Energy Act of 2008) Law text · (d)
    • Pub. L. 110–343 added par. (7). (Emergency Economic Stabilization Act of 2008) Law text · (d)
    • Pub. L. 110–246, §15321(b)(2)(A), inserted "or subsection (b)(6)(H)" after "by reason of paragraph (1)". (Food, Conservation, and Energy Act of 2008) Law text · (e)
    • Pub. L. 110–246, §15321(b)(2)(B), added par. (3). (Food, Conservation, and Energy Act of 2008) Law text · (e)
    • Pub. L. 110–246, §15331(a)(1), in table, substituted "2005, 2006, 2007, or 2008" for "2005 through 2010", struck out period after "37.78 cents", and inserted last row reading "2009 through 2010", "45 cents", and "33.33 cents." (Food, Conservation, and Energy Act of 2008) Law text · (h)
    • Pub. L. 110–246, §15331(a)(2), added par. (3). (Food, Conservation, and Energy Act of 2008) Law text · (h)

    2005

    • Pub. L. 109–58, §1347(a), substituted "60,000,000" for "30,000,000". (Energy Policy Act of 2005) Law text · (g), (2), (5)
    • Pub. L. 109–58, §1347(b), inserted at end "Such election shall not take effect unless the organization designates the apportionment as such in a written notice mailed to its patrons during the payment period described in section 1382(d)." (Energy Policy Act of 2005) Law text · (g)

    2004

    • Pub. L. 108–357, §301(c)(1), substituted "section 4041(b)(2), section 6426, or section 6427(e)" for "subsection (b)(2), (k), or (m) of section 4041, section 4081(c), or section 4091(c)". (American Jobs Creation Act of 2004) Law text · (c)
    • Pub. L. 108–357, §301(c)(2), reenacted heading without change and amended text of par. (4) generally, substituting provisions relating to determination of the number of gallons of alcohol with respect to which a credit is allowable under subsec. (a) for provisions relating to determ… (American Jobs Creation Act of 2004) Law text · (d)
    • Pub. L. 108–357, §301(c)(3)(A), substituted "2010" for "2007". (American Jobs Creation Act of 2004) Law text · (e)
    • Pub. L. 108–357, §301(c)(3)(B), substituted "2011" for "2008". (American Jobs Creation Act of 2004) Law text · (e)
    • Pub. L. 108–357, §313(a), added par. (6). (American Jobs Creation Act of 2004) Law text · (g)
    • Pub. L. 108–357, §301(c)(4)(A), substituted "2010" for "2007" in introductory provisions. (American Jobs Creation Act of 2004) Law text · (h)
    • Pub. L. 108–357, §301(c)(4)(B), substituted "through 2010" for ", 2006, or 2007" in table. (American Jobs Creation Act of 2004) Law text · (h)

    1998

    • Pub. L. 105–178, §9003(a)(3), substituted "December 31, 2007" for "December 31, 2000" in subpar. (A) and "January 1, 2008" for "January 1, 2001" in subpar. (B). (Transportation Equity Act for the 21st Century) Law text · (e)
    • Pub. L. 105–178, §9003(b)(1), reenacted heading without change and amended text of subsec. (h) generally. Prior to amendment, text read as follows: "In the case of any alcohol mixture credit or alcohol credit with respect to any alcohol which is ethanol— (Transportation Equity Act for the 21st Century) Law text · (h)

    1996

    • Pub. L. 104–188 amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: "for any period before January 1, 2001, during which the Highway Trust Fund financing rate under section 4081(a)(2) is not in effect." (Small Business Job Protection Act of 1996) Law text · (e)

    1990

    • Pub. L. 101–508, §11502(a)(1), substituted ", plus" for period at end. · (a)
    • Pub. L. 101–508, §11502(a)(2), added par. (3). · (a)
    • Pub. L. 101–508, §11502(e)(2), which directed the insertion of ", and except as provided in subsection (h)" in introductory provisions without specifying the location of such insertion, was executed after "section" to reflect the probable intent of Congress. · (b)
    • Pub. L. 101–508, §11502(b)(3), substituted ", alcohol credit, and small ethanol producer credit" for "and alcohol credit" in heading. · (b)
    • Pub. L. 101–508, §11502(b)(1), (2), added par. (4) and redesignated former par. (4) as (5). · (b), (5)
    • Pub. L. 101–508, §11502(d)(1), (2), added subpar. (C), redesignated former subpar. (C) as (D), and substituted "subparagraph (A), (B), or (C)" for "subparagraph (A) or (B)". · (d), (D)
    • Pub. L. 101–508, §11502(f), amended subsec. (e) generally, substituting present provisions for provisions prohibiting the applicability of this section to any sale or use after Dec. 31, 1992, and prohibiting carryovers to any taxable year beginning after Dec. 31, 1994. · (e)
    • Pub. L. 101–508, §11502(c), added subsec. (g). · (g)
    • Pub. L. 101–508, §11502(e)(1), added subsec. (h). · (h)

    1987

    • Pub. L. 100–203 substituted ", section 4081(c), or section 4091(c)" for "or section 4081(c)". · (c)

    1984

    • Pub. L. 98–369, §471(c), renumbered section 44E of this title as this section.
    • Pub. L. 98–369, §474(k)(1), substituted "For purposes of section 38, the alcohol fuels credit determined under this section for the taxable year is an amount equal to the sum of" for "There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amo… · (a)
    • Pub. L. 98–369, §912(c)(1), substituted "60 cents" for "50 cents". · (b), (2)
    • Pub. L. 98–369, §912(c), substituted "45 cents" for "37.5 cents" and "60 cents" for "50 cents". · (b)
    • Pub. L. 98–369, §913(b), substituted "(b)(2), (k), or (m)" for "(b)(2) or (k)". · (c)
    • Pub. L. 98–369, §474(k)(2), substituted "the credit determined under this section" for "the credit allowable under this section". · (c)
    • Pub. L. 98–369, §912(f), substituted "coal (including peat)" for "coal". · (d)
    • Pub. L. 98–369, §912(c), substituted "60 cents" for "50 cents" and "45 cents" for "37.5 cents". · (d)
    • Pub. L. 98–369, §474(k)(3), substituted "credit was determined" for "credit was allowable". · (d)
    • Pub. L. 98–369, §912(c), substituted "60 cents" for "50 cents" and "45 cents" for "37.5 cents". · (d)
    • Pub. L. 98–369, §474(k)(3), substituted "credit was determined" for "credit was allowable". · (d)
    • Pub. L. 98–369, §474(k)(4), redesignated subsec. (f) as (e). Former subsec. (e), which had placed a limitation based on the amount of tax, was struck out. · (e)
    • Pub. L. 98–369, §474(k)(5), substituted "section 39 by reason of this section (treating the amount allowed by reason of this section as the first amount allowed by this subpart)" for "subsection (e)(2)". · (e)
    • Pub. L. 98–369, §474(k)(6), added subsec. (f). Former subsec. (f) redesignated (e). · (f)

    1983

    • Pub. L. 97–424, §511(d)(3)(A), substituted "50 cents" for "40 cents". · (b), (2)
    • Pub. L. 97–424, §511(d)(3), substituted "50 cents" for "40 cents" and "37.5 cents" for "30 cents". · (b)
    • Pub. L. 97–424, §511(b)(2), substituted "subsection (b)(2) or (k) of section 4041 or section 4081(c)" for "section 4041(k) or 4081(c)" after "reason of the application of". · (c)
    • Pub. L. 97–424, §511(d)(3), substituted "50 cents" for "40 cents" and "37.5 cents" for "30 cents". · (d), (B)

    1982

    • Pub. L. 97–354 substituted "Pass-thru in the case of estates and trusts" for "Pass-through in the case of subchapter S corporations, etc." in par. heading, and substituted provisions relating to the applicability of rules similar to rules of subsec. (d) of section 52 for provisions … · (d)

    1981

    • Pub. L. 97–34 substituted "15" for "7" in two places, and "14" for "6" in one place. · (e)

    Text, outline and history from the official U.S. Code (2024 edition) on GovInfo, published by the Office of the Law Revision Counsel. Changes made after that edition appear under This Congress.