qualified fuel use
(5) Substances used in the production of motor fuel, etc. (A) In general In the case of any chemical described in subparagraph (D) which is a qualified fuel substance, no tax shall be imposed under section 4661(a). (B) Qualified fuel substance For purposes of this 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, 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. (E) 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.