qualified fertilizer substance
(2) Substances used in the production of fertilizer (A) In general In the case of nitric acid, sulfuric acid, ammonia, or methane used to produce ammonia which is a qualified fertilizer substance, no tax shall be imposed under section 4661(a). (B) Qualified fertilizer substance For purposes of this section, the term “qualified fertilizer substance” means any substance— (i) used in a qualified fertilizer use by the manufacturer, producer, or importer, (ii) sold for use by any purchaser in a qualified fertilizer use, or (iii) sold for resale by any purchaser for use, or resale for ultimate use, in a qualified fertilizer use. (C) Qualified fertilizer use The term “qualified fertilizer use” means any use in the manufacture or production of fertilizer or for direct application as a fertilizer. (D) Taxation of nonqualified sale or use For purposes of section 4661(a), if no tax was imposed by such section on the sale or use of any chemical by reason of subparagraph (A), the first person who sells or uses such chemical other than in a sale or use described in subparagraph (A) shall be treated as the manufacturer of such chemical.