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PUBLIC LAW 103-66—AUG. 10, 1993 107 STAT. 515 **(1) IN GENERAL.—^There is hereby imposed a tax at the rate determined tmder subsection (a) on taxable fuel removed or sold by the blender thereof. **(2) CREDIT FOR TAX PREVIOUSLY PAID.—If— ''(A) tax is imposed on the removal or sale of a taxable fuel by reason of paragraph (1), and *'(B) the blender establishes the amount of the tax paid with respect to such fuel by reason of subsection (a), the amount of the tax so paid shall be allowed as a credit against the tax imposed by reason of paragraph (1). "(c) TAXABLE FUELS MIXED WITH ALCOHOL.—Under regulations Regulations. prescribed by the Secretary— "(1) IN GENERAL.—^The rate of tax under subsection (a) shall be the alcohol mixture rate in the case of the removal or entry of any qualified alcohol mixture. "(2) TAX PRIOR TO MIXING.— **(A) IN GENERAL.—In the case of the removal or entry of any taxable fuel for use in producing at the time of such removal or entry a qualified alcohol mixture, the rate of tax under subsection (a) shall be the applicable fraction of the alcohol mixture rate. Subject to such terms and conditions as the Secretary may prescribe (including the application of section 4101), the treatment under the preceding sentence also shall apply to use in producing a qualified alcohol mixture after the time of such removal or entry. "(B) APPLICABLE FRACTION.—^For purposes of subpctra- graph (A), the applicable fraction is— "(i) in Uie case of a qualified alcohol mixture which contains gasoline, the fraction the numerator of which is 10 and the denominator of which is— "(I) 9 in the case of 10 percent gasohol, "(II) 9.23 in the case of 7.7 percent gasohol, and "(III) 9.43 in the case of 5.7 percent gasohol, and "(ii) in the case of a qualified alcohol mixture which does not contain gasoline, WB. "(3) ALCOHOL; QUALIFIED ALCOHOL MIXTURE.—For purposes of this subsection— "(A) ALCOHOL.—^The term 'alcohol' includes methanol and ethanol but does not include alcohol produced from petroleum, natural gas, or coal (including peat). Such term does not include alcohol with a proof of less than 190 (determined without regard to any added denaturants). "(B) QUALIFIED ALCOHOL MIXTURE.—The term 'qualified alcohol mixture' means— "(i) any mixture of gasoline with alcohol if at least 5.7 percent of such mixture is alcohol, and "(ii) any mixture of diesel fuel with alcohol if at least 10 percent of such mixture is alcohol. "(4) ALCOHOL MIXTURE RATES FOR GASOLINE MIXTURES.— For purposes of this subsection— "(A) IN GENERAL.—^The alcohol mixture rate for a quali- fied alcohol mixture which contains gasoline is the excess