HR 2231 IHCommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

1st SessionCommentsClose CommentsPermalink

H. R. 2231CommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to terminate the ethanol tax credits, and for other purposes.CommentsClose CommentsPermalink

IN THE HOUSE OF REPRESENTATIVESCommentsClose CommentsPermalink

June 16, 2011CommentsClose CommentsPermalink

Mrs. NOEM (for herself, Mr. BERG, and Mr. SCHOCK) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concernedCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to terminate the ethanol tax credits, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Ethanol Modernization and Deficit Reduction Act’.CommentsClose CommentsPermalink

SEC. 2. TERMINATION OF ETHANOL TAX CREDITS.

(a) Excise Tax Credit and Direct Payments- Sections 6426(b)(6) and 6427(e)(6)(A) of the Internal Revenue Code of 1986 are each amended by striking ‘December 31, 2011’ and inserting ‘June 30, 2011’.CommentsClose CommentsPermalink





(b) Income Tax Credit- Paragraph (1) of section 40(e) of such Code is amended--CommentsClose CommentsPermalink





(1) by striking ‘December 31, 2011’ in subparagraph (A) and inserting ‘June 30, 2011’, andCommentsClose CommentsPermalink





(2) by striking ‘January 1, 2012’ in subparagraph (B) and inserting ‘July 1, 2011’.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to any sale, use, or removal for any period after June 30, 2011.CommentsClose CommentsPermalink

SEC. 3. EXTENSION AND MODIFICATION OF ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY CREDIT.

(a) Extension- Subsection (g) of section 30C of the Internal Revenue Code of 1986 is amended by striking ‘placed in service--’ and all that follows and inserting ‘placed in service after the earlier of December 31, 2016, or the date on which the Secretary certifies that at least 53,000 qualified alternative fuel refueling properties (other than properties described in subsection (c)(2)(C)) have been placed in service.’.CommentsClose CommentsPermalink





(b) Only Certain Ethanol Blends Eligible for Credit- Subparagraph (A) of section 30C(c)(2) of the Internal Revenue Code of 1986 is amended to read as follows:CommentsClose CommentsPermalink





‘(A) Any fuel--CommentsClose CommentsPermalink





‘(i) at least 85 percent of the volume of which consists of one or more of the following: natural gas, compressed natural gas, liquified natural gas, liquefied petroleum gas, or hydrogen, orCommentsClose CommentsPermalink





‘(ii) at least 85 percent of the volume of which consists of--CommentsClose CommentsPermalink





‘(I) ethanol, orCommentsClose CommentsPermalink





‘(II) ethanol and gasoline or one or more of the fuels described in clause (i), but only if at least 15 percent and not more than 85 percent of the volume of such fuel consists of ethanol.’.CommentsClose CommentsPermalink





(c) Credit for Dual-Use Refueling Property- Subsection (e) of section 30C of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(6) DUAL-USE REFUELING PROPERTY-CommentsClose CommentsPermalink





‘(A) IN GENERAL- In the case of any dual-use refueling property, 100 percent of the cost of such property shall be treated as qualified alternative fuel refueling property if the taxpayer certifies, in such time and manner as the Secretary shall prescribe, that such property will be used in more than a de minimis capacity for the purposes described in section 179A(d)(3)(A) (applied as specified in subsection (c)(2)).CommentsClose CommentsPermalink





‘(B) RECAPTURE- If at any time within 5 years after the date of the certification under subparagraph (A) the dual-use refueling property ceases to be used as required under such subparagraph, 100 percent of the cost of such property shall be subject to recapture under paragraph (5).CommentsClose CommentsPermalink





‘(C) DUAL-USE REFUELING PROPERTY- For purposes of this paragraph, the term ‘dual-use refueling property’ means property that is both qualified alternative fuel vehicle refueling property and property used--CommentsClose CommentsPermalink





‘(i) to store or dispense fuels not described in subsection (c)(2), orCommentsClose CommentsPermalink





‘(ii) to store fuels described in subsection (c)(2) for any purpose other than delivery of such fuel into the fuel tank of a motor vehicle.’.CommentsClose CommentsPermalink





(d) Effective Date- The amendments made by this section shall apply to property placed in service after June 30, 2011.CommentsClose CommentsPermalink

SEC. 4. EXTENSION OF CELLULOSIC BIOFUEL PRODUCER CREDIT THROUGH 2014.

Subparagraph (H) of section 40(b)(6) of the Internal Revenue Code of 1986 is amended by striking ‘January 1, 2013’ and inserting ‘January 1, 2015’.CommentsClose CommentsPermalink

SEC. 5. EXTENSION OF SPECIAL DEPRECIATION ALLOWANCE FOR CELLULOSIC BIOFUEL PLANT PROPERTY.

Subparagraph (D) of section 168(l)(2) of the Internal Revenue Code of 1986 is amended by striking ‘January 1, 2013’ and inserting ‘January 1, 2015’.CommentsClose CommentsPermalink

SEC. 6. ALGAE TREATED AS A QUALIFIED FEEDSTOCK FOR PURPOSES OF THE CELLULOSIC BIOFUEL PRODUCER CREDIT, ETC.

(a) In General- Subclause (I) of section 40(b)(6)(E)(i) of the Internal Revenue Code of 1986 is amended to read as follows:CommentsClose CommentsPermalink





‘(I) is derived solely by, or from, qualified feedstocks, and’.CommentsClose CommentsPermalink





(b) Qualified Feedstock; Special Rules for Algae- Paragraph (6) of section 40(b) of the Internal Revenue Code of 1986, as amended by this Act, is amended by redesignating subparagraphs (F) and (G) as subparagraphs (H) and (I), respectively, and by inserting after subparagraph (E) the following new subparagraphs:CommentsClose CommentsPermalink





‘(F) QUALIFIED FEEDSTOCK- For purposes of this paragraph, the term ‘qualified feedstock’ means--CommentsClose CommentsPermalink





‘(i) any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis, andCommentsClose CommentsPermalink





‘(ii) any cultivated algae, cyanobacteria, or lemna.CommentsClose CommentsPermalink





‘(G) SPECIAL RULES FOR ALGAE- In the case of fuel which is derived by, or from, feedstock described in subparagraph (F)(ii) and which is sold by the taxpayer to another person for refining by such other person into a fuel which meets the requirements of subparagraph (E)(i)(II)--CommentsClose CommentsPermalink





‘(i) such sale shall be treated as described in subparagraph (C)(i),CommentsClose CommentsPermalink





‘(ii) such fuel shall be treated as meeting the requirements of subparagraph (E)(i)(II) in the hands of such taxpayer, andCommentsClose CommentsPermalink





‘(iii) except as provided in this subparagraph, such fuel (and any fuel derived from such fuel) shall not be taken into account under subparagraph (C) with respect to the taxpayer or any other person.’.CommentsClose CommentsPermalink





(c) Algae Treated as a Qualified Feedstock for Purposes of Bonus Depreciation for Biofuel Plant Property-CommentsClose CommentsPermalink





(1) IN GENERAL- Subparagraph (A) of section 168(l)(2) of the Internal Revenue Code of 1986 is amended by striking ‘solely to produce cellulosic biofuel’ and inserting ‘solely to produce second generation biofuel (as defined in section 40(b)(6)(E))’.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENTS- Subsection (l) of section 168 of such Code, as amended by this Act, is amended--CommentsClose CommentsPermalink





(A) by striking ‘cellulosic biofuel’ each place it appears in the text thereof and inserting ‘second generation biofuel’,CommentsClose CommentsPermalink





(B) by striking paragraph (3) and redesignating paragraphs (4) through (8) as paragraphs (3) through (7), respectively,CommentsClose CommentsPermalink





(C) by striking ‘Cellulosic’ in the heading of such subsection and inserting ‘Second Generation’, andCommentsClose CommentsPermalink





(D) by striking ‘CELLULOSIC’ in the heading of paragraph (2) and inserting ‘SECOND GENERATION’.CommentsClose CommentsPermalink





(d) Conforming Amendments-CommentsClose CommentsPermalink





(1) Section 40 of the Internal Revenue Code of 1986, as amended by this Act, is amended--CommentsClose CommentsPermalink





(A) by striking ‘cellulosic biofuel’ each place it appears in the text thereof and inserting ‘second generation biofuel’,CommentsClose CommentsPermalink





(B) by striking ‘CELLULOSIC’ in the headings of subsections (b)(6), (b)(6)(E), and (d)(3)(D) and inserting ‘SECOND GENERATION’, andCommentsClose CommentsPermalink





(C) by striking ‘CELLULOSIC’ in the headings of subsections (b)(6)(C), (b)(6)(D), (b)(6)(H), (d)(6), and (e)(3) and inserting ‘SECOND GENERATION’.CommentsClose CommentsPermalink





(2) Clause (ii) of section 40(b)(6)(E) of such Code is amended by striking ‘Such term shall not’ and inserting ‘The term ‘second generation biofuel’ shall not’.CommentsClose CommentsPermalink





(3) Paragraph (1) of section 4101(a) of such Code is amended by striking ‘cellulosic biofuel’ and inserting ‘second generation biofuel’.CommentsClose CommentsPermalink





(e) Effective Date-CommentsClose CommentsPermalink





(1) IN GENERAL- Except as provided in paragraph (2), the amendments made by this section shall apply to fuels sold or used after the date of the enactment of this Act.CommentsClose CommentsPermalink





(2) APPLICATION TO BONUS DEPRECIATION- The amendments made by subsection (c) shall apply to property placed in service after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 7. BUDGETARY EFFECTS.

(a) PAYGO Scorecard- The budgetary effects of this Act (and the amendments made by this Act) shall not be entered on either PAYGO scorecard maintained pursuant to section 4(d) of the Statutory Pay-As-You-Go Act of 2010.CommentsClose CommentsPermalink





(b) Senate PAYGO Scorecard- The budgetary effects of this Act (and the amendments made by this Act) shall not be recorded on any PAYGO scorecard maintained for purposes of section 201 of S. Con. Res. 21 (110th Congress).CommentsClose CommentsPermalink