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 rule allowing refunds (without interest) for people who can prove they removed certain indelibly dyed diesel fuel or kerosene from a terminal when the tax on that fuel had been paid and not already credited or refunded. Includes technical fixes to other tax code references and applies to qualifying fuel removed 180 days after the law takes effect.

• Establishes a new IRC provision authorizing refunds (without interest) for certain indelibly dyed diesel fuel or kerosene removed from terminals when tax was previously paid.
• Refund eligibility requires proving to the IRS that the fuel was removed from a terminal and that the tax was paid and not already refunded or credited.
• Refunds are not paid with interest.
• Refund payments are treated for federal offset/debt-collection purposes the same as refunds from tax credit provisions under 31 U.S.C. §1324.
• Conforming amendments update related tax code sections to reference the new refund provision.
• Only applies to eligible fuel removed on or after 180 days after enactment.
• Targets a narrow, technical tax-treatment issue rather than creating a new program or broad tax change.
• Likely reduces net federal receipts modestly by allowing certain previously paid taxes to be refunded.