Treasury Regulations · 26 CFR
§ 1.40-1. Questions and answers relating to the meaning of the term “qualified mixture” in section 40(b)(1).
Regulation text, no changes From the eCFR, current as of October 15, 2026. The eCFR is an authoritative but unofficial editorial compilation of the Code of Federal Regulations; the official text is the annual CFR on govinfo. Compare it with this section on ecfr.gov (external site) or the official annual CFR on govinfo (external site).
Regulation under 26 U.S.C. § 40
Cite as 26 CFR § 1.40-1
At a glance
Read from the text and its source citation. Not part of the regulation.
- Status
- In the current eCFR
- Issued
- March 9, 1990 by T.D. 8291
- Issued under
- 26 U.S.C. § 40
- Length
- 335 words · about 1 min to read
- Cross-references
- cites 1 Code section and 0 regulations; cited by 0
Q-1. What is a “qualified mixture” within the meaning of section 40(b)(1)?
A-1. A “qualified mixture” is a mixture of alcohol and gasoline or of alcohol and special fuel which (1) is sold by the taxpayer producing such mixture to any person for use as a fuel, or (2) is used as a fuel by the taxpayer producing such mixture.
Q-2. Must alcohol be present in a product in order for that product to be considered a mixture of alcohol and either gasoline or a special fuel?
A-2. No. A product is considered to be a mixture of alcohol and gasoline or of alcohol and a special fuel if the product is derived from alcohol and either gasoline or a special fuel even if the alcohol is chemically transformed in producing the product so that the alcohol is no longer present as a separate chemical in the final product, provided that there is no significant loss in the energy content of the alcohol. Thus, a product may be considered to be “mixture of alcohol and gasoline or of alcohol and a special fuel” within the meaning of section 40(b)(1)(B) if such product is produced in a chemical reaction between alcohol and either gasoline or a special fuel. Similarly a product may be considered to be a “mixture of alcohol and gasoline or of alcohol and a special fuel” if such product is produced by blending a chemical compound derived from alcohol with either gasoline or a special fuel.
Thus, for example, a blend of gasoline and ethyl tertiary butyl ether (ETBE), a compound derived from ethanol (a qualified alcohol), in a chemical reaction in which there is no significant loss in the energy content of the ethanol, is considered for purposes of section 40(b)(1)(B) to be a mixture of gasoline and the ethanol used to produce the ETBE, even though the ethanol is chemically transformed in the production of ETBE and is not present in the final product.
[T.D. 8291, 55 FR 8948, Mar. 9, 1990]
Cross-references
Computed from the citations in the text of 26 CFR.
Code sections it cites
Amendment history
From the source citation at the end of the section, newest first. T.D. is a Treasury decision; FR is the Federal Register.
- Issued by T.D. 8291 (55 FR 8948)
Where it sits in 26 CFR
- Subchapter A Income tax
- Part 1 Income taxes
- General Business Credits
Nearby sections
- § 1.38-1 Investment in certain depreciable property.
- § 1.40-1 Questions and answers relating to the meaning of the term “qualified mixture” in section 40(b)(1).
- § 1.41-0 Table of contents.
- § 1.41-1 Credit for increasing research activities.
- § 1.41-2 Qualified research expenses.
- § 1.41-3 Base amount for taxable years beginning on or after January 3, 2001.