HR 4953 IHCommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

2d SessionCommentsClose CommentsPermalink

H. R. 4953CommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to provide a credit for the production of renewable chemicals.CommentsClose CommentsPermalink

IN THE HOUSE OF REPRESENTATIVESCommentsClose CommentsPermalink

April 26, 2012CommentsClose CommentsPermalink

Mr. PASCRELL (for himself and Mr. BILBRAY) introduced the following bill; which was referred to the Committee on Ways and MeansCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to provide a credit for the production of renewable chemicals.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 ‘Qualifying Renewable Chemical Production Tax Credit Act of 2012’.CommentsClose CommentsPermalink

SEC. 2. CREDIT FOR THE PRODUCTION OF RENEWABLE CHEMICALS.

(a) In General- Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:CommentsClose CommentsPermalink

‘SEC. 45S. CREDIT FOR PRODUCTION OF RENEWABLE CHEMICALS.

‘(a) In General- For purposes of section 46, the renewable chemicals production credit for any taxable year is an amount (determined separately for each renewable chemical produced by the taxpayer) equal to $0.15 per pound of eligible content of renewable chemical produced by the taxpayer during the taxable year.CommentsClose CommentsPermalink





‘(b) Limitation- The credit determined under subsection (a) with respect to any renewable chemical produced by any taxpayer during any taxable year shall not exceed the credit amount allocated by the Secretary to the taxpayer with respect to such chemical for such taxable year under subsection (e).CommentsClose CommentsPermalink





‘(c) Eligible Content- For purposes of this section--CommentsClose CommentsPermalink





‘(1) IN GENERAL- The term ‘eligible content’ means, with respect to any renewable chemical, the biobased content percentage of the total mass of organic carbon in such chemical.CommentsClose CommentsPermalink





‘(2) BIOBASED CONTENT PERCENTAGE- The term ‘biobased content percentage’ means, with respect to any renewable chemical, the biobased content of such chemical (expressed as a percentage) determined by testing representative samples using the American Society for Testing and Materials (ASTM) D6866.CommentsClose CommentsPermalink





‘(d) Renewable Chemical- For purposes of this section--CommentsClose CommentsPermalink





‘(1) IN GENERAL- The term ‘renewable chemical’ means any chemical which--CommentsClose CommentsPermalink





‘(A) is produced by the taxpayer in the United States (or in a territory or possession of the United States) from renewable biomass,CommentsClose CommentsPermalink





‘(B) is sold, or used, by the taxpayer--CommentsClose CommentsPermalink





‘(i) for the production of polymers, plastics, or formulated products, orCommentsClose CommentsPermalink





‘(ii) as polymers, plastics, or formulated products, andCommentsClose CommentsPermalink





‘(C) is not sold or used for the production of any food, feed, or fuel.CommentsClose CommentsPermalink





‘(2) EXCEPTIONS- Such term shall not include any chemical if--CommentsClose CommentsPermalink





‘(A) the biobased content percentage of such chemical is less than 25 percent,CommentsClose CommentsPermalink





‘(B) 10,000,000 pounds or more of such chemical was produced during calendar year 2000 from renewable biomass,CommentsClose CommentsPermalink





‘(C) such chemical is not either the product of, or reliant upon, biological conversion, thermal conversion, or a combination of biological and thermal conversion, of renewable biomass, orCommentsClose CommentsPermalink





‘(D) such chemical is composed of renewable chemicals that are eligible for a credit under this section.CommentsClose CommentsPermalink





‘(3) RENEWABLE BIOMASS- The term ‘renewable biomass’ has the meaning given such term in section 9001(12) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8101(12)).CommentsClose CommentsPermalink





‘(e) Allocation of Credit Amounts-CommentsClose CommentsPermalink





‘(1) IN GENERAL- Not later than 180 days after enactment of this section, the Secretary, in consultation with the Secretary of Agriculture, shall establish a program to allocate credit amounts under this section to applicants for taxable years.CommentsClose CommentsPermalink





‘(2) LIMITATIONS-CommentsClose CommentsPermalink





‘(A) AGGREGATE LIMITATION- The total amount of credits that may be allocated under such program shall not exceed $500,000,000.CommentsClose CommentsPermalink





‘(B) TAXPAYER LIMITATION- The amount of credits that may be allocated to any taxpayer for any taxable year under such program shall not exceed $25,000,000. For purposes of the preceding sentence, all persons treated as a single employer under subsection (a) or (b) of section 52, or subsection (m) or (o) of section 414, shall be treated as one person.CommentsClose CommentsPermalink





‘(3) SELECTION CRITERIA- In determining which taxpayers to make allocations of credit amount under this section, the Secretary shall take into consideration--CommentsClose CommentsPermalink





‘(A) the number of jobs created and maintained (directly and indirectly) in the United States (including territories and possessions of the United States) as result of such allocation during the credit period and thereafter,CommentsClose CommentsPermalink





‘(B) the degree to which the production of the renewable chemical demonstrates reduced dependence on imported feedstocks, petroleum, non-renewable resources, or other fossil fuels,CommentsClose CommentsPermalink





‘(C) the technological innovation involved in the production method of the renewable chemical,CommentsClose CommentsPermalink





‘(D) the energy efficiency and reduction in lifecycle greenhouse gases of the renewable chemical or of the production method of the renewable chemical, andCommentsClose CommentsPermalink





‘(E) whether there is a reasonable expectation of commercial viability.CommentsClose CommentsPermalink





‘(4) REDISTRIBUTION- If a credit amount allocated to a taxpayer for a taxable year with respect to any renewable chemical (determined without regard to this paragraph) exceeds the amount of the credit with respect to such chemical determined under this section on the taxpayer’s return for such taxable year (determined by treating the amount of any payment under subsection (f) as shown on the taxpayer’s return)--CommentsClose CommentsPermalink





‘(A) the credit amount allocated to such taxpayer for such taxable year with respect to such renewable chemical shall be treated as being the amount so determined on the taxpayer’s return, andCommentsClose CommentsPermalink





‘(B) such excess may be reallocated by the Secretary consistent with the requirements of paragraphs (2)(B) and (3).CommentsClose CommentsPermalink





‘(5) DISCLOSURE OF ALLOCATIONS- The Secretary shall, upon making an allocation of credit amount under this section, publicly disclose the identity of the applicant and the amount of the credit with respect to such applicant.CommentsClose CommentsPermalink





‘(f) Termination- Notwithstanding any other provision of this section, the Secretary may not allocate any credit amount under this section to any taxable year which begins more than 5 years after the date of the enactment of this section.’.CommentsClose CommentsPermalink





(b) Credit To Be Part of General Business Credit-CommentsClose CommentsPermalink





(1) IN GENERAL- Subsection (b) of section 38 of such Code is amended by striking ‘plus’ at the end of paragraph (35), by striking the period at the end of paragraph (36) and inserting ‘, plus’, and by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(37) the renewable chemicals production credit determined under section 45S(a).’.CommentsClose CommentsPermalink





(2) CREDIT ALLOWABLE AGAINST ALTERNATIVE MINIMUM TAX- Subparagraph (B) of section 38(c)(4) of such Code is amended by redesignating clauses (vii) through (ix) as clauses (viii) through (x), respectively, and by inserting after clause (vi) the following new clause:CommentsClose CommentsPermalink





‘(vii) the credit determined under section 45S,’.CommentsClose CommentsPermalink





(c) Clerical Amendment- The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item:CommentsClose CommentsPermalink





‘Sec. 45S. Credit for production of renewable chemicals.’.CommentsClose CommentsPermalink





(d) Effective Date- The amendments made by this section shall apply to chemicals produced after the date of the enactment of this Act, in taxable years ending after such date.CommentsClose CommentsPermalink