(

a) A person qualified under subdivision (

b) may issue a certificate to a retailer with respect to the amount of manufacturers’ or importers’ excise tax imposed pursuant to

Section or of the Internal Revenue Code for purposes of subparagraph (

B) of paragraph (4) of subdivision (

c) of

Section or subparagraph (

B) of paragraph (4) of subdivision (

c) of

Section when purchasing fuel from the retailer. (

b) A person is qualified for purposes of this

section if all of the following conditions are met:

(1) The person was entitled to either a direct refund or credit against his or her income tax for the manufacturers’ or importers’ excise tax imposed pursuant to

Section or of the Internal Revenue Code for more than percent of the person’s purchases of fuel during the prior calendar year.

(2) The person’s business remains substantially the same as during the prior calendar year whereby the person expects to be entitled to either a direct refund or credit against his or her income tax for the manufacturers’ or importers’ excise tax imposed pursuant to

Section or of the Internal Revenue Code for more than percent of the person’s purchases of fuel.

(3) The person holds a valid California seller’s permit. (

c) A person issuing a certificate for purposes of subparagraph (

B) of paragraph (4) of subdivision (

c) of

Section or subparagraph (

B) of paragraph (4) of subdivision (

c) of

Section is liable for use tax on the amount of the manufacturers’ or importers’ excise tax imposed pursuant to

Section or of the Internal Revenue Code if the person used fuel purchased under the certificate in a manner whereby the person is not entitled to a direct refund or credit against his or her income tax of the federal excise tax. (

d) A person liable for the use tax under subdivision (

c) of this

section shall report and pay that use tax with the return for the reporting period in which the person uses the fuel in such a manner that the person is not entitled to a direct refund or credit against his or her income tax of the federal excise tax.