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.

Summary

Creates a new tax-code rule that lets people claim refunds (but not interest) when diesel fuel or kerosene was taxed at the terminal even though it qualified as tax-exempt because it was indelibly dyed. Updates other tax code references so those refunds are treated the same as other credit-related refunds and applies to fuel removed on or after 180 days after the law is enacted.

• Creates a new IRC section authorizing refunds (without interest) for dyed diesel or kerosene removed from terminals that were taxed.
• Refunds apply only when the tax was paid and not previously credited or refunded.
• Treats these refunds like other credit-based refunds under federal refund procedures (31 U.S.C. § 1324).
• Makes conforming edits to other tax-code sections to reference the new refund provision.
• Adds the new section to the subchapter table of sections for clarity and indexing.
• Effective for fuel removals occurring on or after 180 days after enactment.
• Does not provide interest on refunded amounts.
• Primarily affects fuel distributors, terminal operators, and end users of tax-exempt dyed fuel.