Skip to content

General education, not advice for your situation.

Carry Forward Learning Start here Intern0 XP

Internal Revenue Code · 26 U.S.C.

§ 4223. Special rules relating to further manufacture

In force Text current through Public Law 119-121 (October 9, 2026) release point 119-121

Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).

Cite as 26 U.S.C. § 4223

At a glance

Read from the text, the source credit and the official notes. Not part of the law.

Status
In force
Added
September 2, 1958 by Pub. L. 85–859
Last amended
July 18, 1984 by Pub. L. 98–369
Amendments
3 dated changes in the source credit
Length
2 subsections · 331 words · about 1 min to read
Cross-references
cites 3; cited by 3 Code sections and 6 other regulations
Regulations
1 issued under this section
(a) Purchasing manufacturer to be treated as the manufacturer

For purposes of this chapter, a manufacturer or producer to whom an article is sold or resold free of tax under section 4221(a)(1) for use by him in further manufacture shall be treated as the manufacturer or producer of such article.

(b) Computation of tax If the manufacturer or producer referred to in subsection (a) incurs liability for tax under this chapter on his sale or use of an article referred to in subsection (a) and the tax is based on the price for which the article is sold, the article shall be treated as having been sold by him—
(1) at the price for which the article was sold by him (or, where the tax is on his use of the article, at the price referred to in section 4218(c)); or
(2) if he so elects and establishes such price to the satisfaction of the Secretary—
(A) at the price for which the article was sold to him; or
(B) at the price for which the article was sold by the person who (without regard to subsection (a)) is the manufacturer, producer, or importer of such article.
For purposes of this subsection, the price for which the article was sold shall be determined as provided in section 4216. For purposes of paragraph (2) no adjustment or readjustment shall be made in such price by reason of any discount, rebate, allowance, return or repossession of a container or covering, or otherwise. An election under paragraph (2) shall be made in the return reporting the tax applicable to the sale or use of the article, and may not be revoked.

(Added Pub. L. 85–859, title I, § 119(a), Sept. 2, 1958, 72 Stat. 1285; amended Pub. L. 86–418, § 2(b), Apr. 8, 1960, 74 Stat. 38; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 98–369, div. A, title VII, § 735(c)(10), July 18, 1984, 98 Stat. 983.)

Regulations under this section

Treasury regulations (26 CFR) issued under § 4223

Cross-references

Computed from the citations in the text of Title 26 and 26 CFR.

This section cites 3 other sections

Cited by 3 Code sections

Cited in 6 regulations not issued under it

Amendment history

From the source credit and the official notes, newest first.

  1. Amended by Pub. L. 98–369Parts changed in 1984: (b)(1)
  2. Amended by Pub. L. 94–455Parts changed in 1976: (b)
  3. Amended by Pub. L. 86–418Parts changed in 1960: (b)(1)
  4. Added by Pub. L. 85–859

Where it sits in the Code

  1. Subtitle D Miscellaneous Excise Taxes
  2. Chapter 32 MANUFACTURERS EXCISE TAXES
  3. Subchapter G Exemptions, Registration, Etc.

Nearby sections

Official notes

Show the Law Revision Counsel's notes (amendments, effective dates)

Editorial Notes

Prior Provisions

A prior section 4223, act Aug. 16, 1954, ch. 736, 68A Stat. 495, related to exemption of articles manufactured or produced by Indians, prior to repeal by Pub. L. 85–859, § 119(a). See section 4225 of this title.

Amendments

1984—Subsec. (b)(1). Pub. L. 98–369 substituted “4218(c)” for “section 4218(e)”.

1976—Subsec. (b) Pub. L. 94–455 struck out “or his delegate” after “Secretary”.

1960—Subsec. (b)(1). Pub. L. 86–418 substituted “section 4218(e)” for “section 4218(d)”.

Statutory Notes and Related Subsidiaries

Effective Date of 1984 Amendment

Amendment by Pub. L. 98–369 effective, except as otherwise provided, as if included in the provisions of the Highway Revenue Act of 1982, title V of Pub. L. 97–424, to which such amendment relates, see section 736 of Pub. L. 98–369, set out as a note under section 4051 of this title.

Effective Date of 1960 Amendment

Amendment by Pub. L. 86–418 applicable only with respect to bicycle tires and tubes sold by the manufacturer, producer, or importer thereof on or after the first day of the first month which begins more than 10 days after April 8, 1960, see section 4 of Pub. L. 86–418, set out as a note under section 4221 of this title.