Treasury Regulations · 26 CFR
§ 48.6416(c)-1. Credit for tax paid on tires or, prior to January 1, 1984, inner tubes.
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. § 6416(c)
Cite as 26 CFR § 48.6416(c)-1
At a glance
Read from the text and its source citation. Not part of the regulation.
- Status
- In the current eCFR
- Issued
- August 8, 1985 by T.D. 8043
- Issued under
- 26 U.S.C. § 6416(c)
- Length
- 639 words · about 3 min to read
- Defines
- 1 term
- Cross-references
- cites 3 Code sections and 0 regulations; cited by 1
¶(a) Allowance of credit against tax on sale of taxable article. If tax has been paid under section 4071 on the sale, or under section 4218 on the use, of a tire or inner tube, and the manufacturer of another article taxable under chapter 32 sells the tire or inner tube on or in connection with the sale of that other article, a credit in respect of the tire or inner tube is allowable under section 6416(c) against the tax imposed on the sale of that other article. The amount of the credit is to be determined as provided in paragraph (b) or (c) of this section.
¶(b) Tires or tubes purchased by manufacturer of the other article. If the manufacturer of the other article purchased the tire or inner tube tax-paid, the amount of the credit shall be determined by applying to the purchase price of the tire or inner tube the percentage rate of tax applicable to the sale of the other article. For this purpose, the purchase price shall be determined by including any tax passed on to the manufacturer and, in the case of a tire, by excluding any part of the price attributable to the metal rim or rim base. For example, if the selling price of an automobile truck is $24,000, tax equivalent to 10 percent of the price (i.e., $2,400) is imposed under section 4601(a) on the sale (before April 1, 1983) of the automobile truck. If the tires or inner tubes sold on or in connection with the automobile truck are purchased by the manufacturer of the automobile truck for $1,500 (computed as provided in this paragraph) a credit of $150 (10 percent of $1,500) is allowable against the tax imposed on the sale of the automobile truck.
¶(c) Tires or tubes manufactured by manufacturer or other articles. If the manufacturer of the other article is also the manufacturer of the tire or inner tube and incurs tax liability under section 4218 on the use by that manufacturer of the tire or inner tube, the amount of the credit shall be determined by applying to the fair market price of the tire or inner tube, the percentage rate of tax applicable to the sale of the other article. For this purpose, the fair market price of the tire or inner tube shall be the price at which the same or similar tires or inner tubes are sold by manufacturers of tires or inner tubes in the ordinary course of trade, as determined by the Commissioner, and by excluding, in the case of a tire, any part of the price attributable to the metal rim or rim base. The determination of the Commissioner shall be made in the same manner as determinations made under section 4218.
¶(d) Other applicable rules.
¶(1) For purposes of this section, the term “manufacturer” includes the original manufacturer of the other article and any succeeding purchaser of the article who further manufactures the article so as to become liable as a manufacturer of an article taxable under chapter 32. Therefore, the credit provided by section 6416(c) and this section is available both to the original manufacturer of the other article and also to every succeeding purchaser of that article who sells that article on or in connection with, or with the sale of, another article taxable under chapter 32.
¶(2) No interest shall be paid on any credit allowed under this section.
¶(3) If credit is not claimed under this section against the tax applicable to the sale of the other article, the manufacturer of the other article may claim refund of an amount equivalent to the credit or may claim credit on any return of tax under this subpart subsequently filed.
[T.D. 8043, 50 FR 32034, Aug. 8, 1985]
Terms defined here
Where the text says “the term … means”. Select a term to jump to its definition.
Cross-references
Computed from the citations in the text of 26 CFR.
Code sections it cites
- § 4071 Imposition of tax
- § 4218 Use by manufacturer or importer considered sale
- § 6416 Certain taxes on sales and services
Cited by 1 other regulation
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. 8043 (50 FR 32034)
Where it sits in 26 CFR
- Subchapter D Miscellaneous excise taxes
- Part 48 Manufacturers and retailers excise taxes
- Subpart O Refunds and Other Administrative Provisions of Special Application to Retailers and Manufacturers Taxes
Nearby sections
- § 48.6416(b)(3)-1 Tax-paid articles used for further manufacture and causing overpayments of tax.
- § 48.6416(b)(3)-2 Further manufacture included.
- § 48.6416(b)(3)-3 Supporting evidence required in case of tax-paid articles used for further manufacture.
- § 48.6416(b)(5)-1 Return of installment accounts causing overpayments of tax.
- § 48.6416(c)-1 Credit for tax paid on tires or, prior to January 1, 1984, inner tubes.
- § 48.6416(e)-1 Refund to exporter or shipper.
- § 48.6416(f)-1 Credit on returns.
- § 48.6416(h)-1 Accounting procedures for like articles.
- § 48.6420-1 Credits or payments to ultimate purchaser of gasoline used on a farm.