US Code

Public Law 119-87 (04/30/2026)

26 U.S.C. § 4042

Tax on fuel used in commercial transportation on inland waterways

(a)

In general

There is hereby imposed a tax on any liquid used during any calendar quarter by any person as a fuel in a vessel in commercial waterway transportation.

(b)

Amount of tax

(1)

In general

The rate of the tax imposed by subsection (a) is the sum of—
(A)
the Inland Waterways Trust Fund financing rate, and
(B)
the Leaking Underground Storage Tank Trust Fund financing rate.
(2)

Rates

For purposes of paragraph (1)—
(A)
The Inland Waterways Trust Fund financing rate is 29 cents per gallon.
(B)
The Leaking Underground Storage Tank Trust Fund financing rate is 0.1 cent per gallon.
(3)

Exception for fuel on which Leaking Underground Storage Tank Trust Fund financing rate separately imposed

The Leaking Underground Storage Tank Trust Fund financing rate under paragraph (2)(B) shall not apply to the use of any fuel if tax was imposed with respect to such fuel under section 4041(d) or 4081 at the Leaking Underground Storage Tank Trust Fund financing rate.

(4)

Termination of Leaking Underground Storage Tank Trust Fund financing rate

The Leaking Underground Storage Tank Trust Fund financing rate under paragraph (2)(B) shall not apply during any period during which the Leaking Underground Storage Tank Trust Fund financing rate under section 4081 does not apply.

(c)

Exemptions

(1)

Deep-draft ocean-going vessels

The tax imposed by subsection (a) shall not apply with respect to any vessel designed primarily for use on the high seas which has a draft of more than 12 feet.

(2)

Passenger vessels

The tax imposed by subsection (a) shall not apply with respect to any vessel used primarily for the transportation of persons.

(3)

Use by State or local government in transporting property in a state or local business

Subparagraph (B) of subsection (d)(1) shall not apply with respect to use by a State or political subdivision thereof.

(4)

Use in moving lash and seabee ocean-going barges

The tax imposed by subsection (a) shall not apply with respect to use for movement by tug of exclusively LASH (Lighter-aboard-ship) and SEABEE ocean-going barges released by their ocean-going carriers solely to pick up or deliver international cargoes.

(d)

Definitions

For purposes of this section—
(1)

Commercial waterway transportation

The term “commercial waterway transportation” means any use of a vessel on any inland or intracoastal waterway of the United States—
(A)
in the business of transporting property for compensation or hire, or
(B)
in transporting property in the business of the owner, lessee, or operator of the vessel (other than fish or other aquatic animal life caught on the voyage).
(2)

Inland or intracoastal waterway of the United States

The term “inland or intracoastal waterway of the United States” means any inland or intracoastal waterway of the United States which is described in section 206 of the Inland Waterways Revenue Act of 1978.

(3)

Person

The term “person” includes the United States, a State, a political subdivision of a State, or any agency or instrumentality of any of the foregoing.

(e)

Date for filing return

The date for filing the return of the tax imposed by this section for any calendar quarter shall be the last day of the first month following such quarter.

Pub. L. 95–502, title II, § 202(a)92 Stat. 1696 Pub. L. 99–499, title V, § 521(a)(3)100 Stat. 1777 Pub. L. 99–662, title XIV, § 1404(a)100 Stat. 4270 Pub. L. 100–647, title II, § 2002(a)(2)102 Stat. 3597 Pub. L. 103–66, title XIII, § 13241(d)107 Stat. 510 Pub. L. 108–357, title II, § 241(b)118 Stat. 1438 Pub. L. 110–172, § 6(d)(1)(B)121 Stat. 2480 Pub. L. 113–295, div. B, title II, § 205(a)128 Stat. 4065 Pub. L. 115–141, div. U, title IV, § 401(b)(40)132 Stat. 1204 (Added , , ; amended , , ; , , ; , , ; , , ; , , ; , , ; , , ; , (41), , .)

Editorial Notes

References in Text

section 206 of Pub. L. 95–50292 Stat. 1700 section 1804 of Title 33Section 206 of the Inland Waterways Revenue Act of 1978, referred to in subsec. (d)(2), is , title II, , , which is classified to , Navigation and Navigable Waters.

Prior Provisions

act Aug. 16, 1954, ch. 736 68A Stat. 478 section 4222 of this titlePub. L. 94–455, title XIX, § 1904(a)(1)(D)90 Stat. 1811 A prior section 4042, , , provided a cross reference to for exemption from tax where special motor fuels are sold for use for certain vessels, prior to repeal by , , .

Amendments

Pub. L. 115–141, § 401(b)(40)2018—Subsec. (b)(1)(C). , struck out subpar. (C) which read as follows: “the deficit reduction rate.”

Pub. L. 115–141, § 401(b)(41)Subsec. (b)(2)(C). , struck out subpar. (C) which read as follows: “The deficit reduction rate is—

“(i) 3.3 cents per gallon after , and before ,

“(ii) 2.3 cents per gallon after , and before , and

“(iii) 0 after .”

Pub. L. 113–2952014—Subsec. (b)(2)(A). amended subpar. (A) generally, substituting “The Inland Waterways Trust Fund financing rate is 29 cents per gallon.” for “The Inland Waterways Trust Fund financing rate is the rate determined in accordance with the following table:” and accompanying table of rates.

Pub. L. 110–1722007—Subsec. (b)(3). amended heading and text of par. (3) generally. Prior to amendment, text read as follows: “The Leaking Underground Storage Tank Trust Fund financing rate under paragraph (2)(B) shall not apply to the use of any fuel if tax under section 4041(d) was imposed on the sale of such fuel or is imposed on such use.”

Pub. L. 108–3572004—Subsec. (b)(2)(C). amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: “The deficit reduction rate is 4.3 cents per gallon.”

Pub. L. 103–66, § 13241(d)(1)1993—Subsec. (b)(1)(C). , added subpar. (C).

Pub. L. 103–66, § 13241(d)(2)Subsec. (b)(2)(C). , added subpar. (C).

Pub. L. 100–6471988—Subsec. (b)(2). amended par. (2) generally. Prior to amendment, par. (2) read as follows: “For purposes of paragraph (1)—

“(A) the Inland Waterways Trust Fund financing rate is 10 cents a gallon, and

“(B) the Leaking Underground Storage Tank Trust Fund financing rate is 0.1 cents a gallon.”

Pub. L. 99–499Pub. L. 99–662Pub. L. 100–647, § 2002(a)(1)Pub. L. 99–499Pub. L. 99–662Pub. L. 99–499Pub. L. 99–6621986—Subsec. (b). and both amended subsec. (b) generally, effective . (see Construction of 1986 Amendments note below), provided that for purposes of this section, the amendment made by be treated as enacted after the amendment made by . Prior to amendment by and , subsec. (b) read as follows:

“If the use occurs—

The tax is—

After September 30, 1980 and before October 1, 1981

4 cents a gallon  

After September 30, 1981 and before October 1, 1983

6 cents a gallon  

After September 30, 1983 and before October 1, 1985

8 cents a gallon  

After September 30, 1985

10 cents a gallon”.

Statutory Notes and Related Subsidiaries

Effective Date of 2014 Amendment

Pub. L. 113–295, div. B, title II, § 205(b)128 Stat. 4065

“The amendment made by this section [amending this section] shall apply to fuel used after .”
, , , provided that:

Effective Date of 2007 Amendment

Pub. L. 110–172Pub. L. 109–58section 6(e) of Pub. L. 110–172section 30C of this titleAmendment by effective as if included in the provisions of the Energy Policy Act of 2005, , to which such amendment relates, see , set out as a note under .

Effective Date of 2004 Amendment

Pub. L. 108–357section 241(c) of Pub. L. 108–357section 4041 of this titleAmendment by effective , see , set out as a note under .

Effective Date of 1993 Amendment

Pub. L. 103–66section 13241(g) of Pub. L. 103–66section 4041 of this titleAmendment by effective , see , set out as a note under .

Effective Date of 1988 Amendment

Pub. L. 100–647, title II, § 2002(d)102 Stat. 3597 Pub. L. 101–239, title VII, § 7812(b)103 Stat. 2412

section 4462 of this titlesection 4461 of this titlePub. L. 99–662, title XIVPub. L. 99–499“The amendments made by subsections (b) and (c) [amending and provisions set out as a note under ] shall take effect as if included in the provision of the Harbor Maintenance Revenue Act of 1986 [] to which it relates, and the amendment made by subsection (a)(2) [amending this section] shall take effect as if included in the amendment made by section 521(a)(3) of the Superfund Revenue Act of 1986 [, title V].”
, , , as amended by , , , provided that:

Effective Date of 1986 Amendments

Pub. L. 99–662, title XIV, § 1404(c)100 Stat. 4271

section 1804 of Title 33“The amendments made by this section [amending this section and , Navigation and Navigable Waters] shall take effect on .”
, , , provided that:

Pub. L. 99–499section 521(e) of Pub. L. 99–499section 4041 of this titleAmendment by effective , see , set out as a note under .

Effective Date

Pub. L. 95–502, title II, § 202(d)92 Stat. 1697

section 4293 of this title“The amendments made by this section [enacting this section and amending ] shall take effect on .”
, , , provided that:

Savings Provision

Pub. L. 115–141section 401(e) of Pub. L. 115–141section 23 of this titleFor provisions that nothing in amendment by be construed to affect treatment of certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken into account prior to , for purposes of determining liability for tax for periods ending after , see , set out as a note under .

Construction of 1986 Amendments

Pub. L. 100–647, title II, § 2002(a)(1)102 Stat. 3597

Pub. L. 99–499Pub. L. 99–662“For purposes of section 4042 of the 1986 Code, the amendment made by section 521(a)(3) of the Superfund Revenue Act of 1986 [, amending this section] shall be treated as enacted after the amendment made by section 1404(a) of the Harbor Maintenance Revenue Act of 1986 [, amending this section].”
, , , provided that: