S 884 ISCommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

1st SessionCommentsClose CommentsPermalink

S. 884CommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to provide for a variable VEETC rate based on the price of crude oil, and for other purposes.CommentsClose CommentsPermalink

IN THE SENATE OF THE UNITED STATESCommentsClose CommentsPermalink

May 4, 2011CommentsClose CommentsPermalink

Mr. GRASSLEY (for himself, Mr. CONRAD, Mr. JOHANNS, Ms. KLOBUCHAR, Mr. FRANKEN, Mr. JOHNSON of South Dakota, Mr. HARKIN, and Mr. NELSON of Nebraska) introduced the following bill; which was read twice and referred to the Committee on FinanceCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to provide for a variable VEETC rate based on the price of crude oil, 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 ‘Domestic Energy Promotion Act of 2011’.CommentsClose CommentsPermalink

SEC. 2. VARIABLE VEETC RATE BASED ON PRICE OF CRUDE OIL.

(a) Excise Tax Credit-CommentsClose CommentsPermalink





(1) IN GENERAL- Subparagraph (A) of section 6426(b)(2) of the Internal Revenue Code of 1986 is amended--CommentsClose CommentsPermalink





(A) by striking ‘and’ at the end of clause (i),CommentsClose CommentsPermalink





(B) by inserting ‘and before 2012’ after ‘2008’ in clause (ii),CommentsClose CommentsPermalink





(C) by striking the period at the end of clause (ii) and inserting ‘, and’, andCommentsClose CommentsPermalink





(D) by adding at the end the following new clauses:CommentsClose CommentsPermalink





‘(iii) in the case of calendar year 2012, 20 cents,CommentsClose CommentsPermalink





‘(iv) in the case of calendar year 2013, 15 cents, andCommentsClose CommentsPermalink





‘(v) in the case of calendar quarters beginning after 2013, the applicable rate determined in accordance with the following table:CommentsClose CommentsPermalink

‘If the average price of crude oilCommentsClose CommentsPermalink

The applicable rate forCommentsClose CommentsPermalink

during the preceding calendar quarter is:CommentsClose CommentsPermalink

the calendar quarter is:CommentsClose CommentsPermalink

Not more than $50/barrelCommentsClose CommentsPermalink

--30 centsCommentsClose CommentsPermalink

More than $50 but not more than $60/barrelCommentsClose CommentsPermalink

--24 centsCommentsClose CommentsPermalink

More than $60 but not more than $70/barrelCommentsClose CommentsPermalink

--18 centsCommentsClose CommentsPermalink

More than $70 but not more than $80/barrelCommentsClose CommentsPermalink

--12 centsCommentsClose CommentsPermalink

More than $80 but not more than $90/barrelCommentsClose CommentsPermalink

--6 centsCommentsClose CommentsPermalink

More than $90/barrelCommentsClose CommentsPermalink

--0 cents.CommentsClose CommentsPermalink

For purposes of the preceding table, the average price of crude oil for any calendar quarter shall be the average 3-month futures price on the New York Mercantile Exchange for light sweet crude oil for such calendar quarter.’.CommentsClose CommentsPermalink





(2) EXTENSION OF TAX CREDIT OR PAYMENT- Sections 6426(b)(6) and 6427(e)(6)(A) of such Code are each amended by striking ‘2011’ and inserting ‘2016’.CommentsClose CommentsPermalink





(b) Income Tax Credit-CommentsClose CommentsPermalink





(1) IN GENERAL- The table contained in section 40(h)(2) of the Internal Revenue Code of 1986 is amended--CommentsClose CommentsPermalink





(A) by striking ‘calendar year’ in the heading for the first column,CommentsClose CommentsPermalink





(B) by inserting ‘Calendar year’ before ‘2001’,CommentsClose CommentsPermalink





(C) by inserting ‘Calendar year’ before ‘2003’,CommentsClose CommentsPermalink





(D) by inserting ‘Calendar year’ before ‘2005’,CommentsClose CommentsPermalink





(E) by inserting ‘Calendar years’ before ‘2009’,CommentsClose CommentsPermalink





(F) by striking the period at the end of the table, andCommentsClose CommentsPermalink





(G) by adding at the end the following:CommentsClose CommentsPermalink

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‘Calendar year 2012                                                   20 cents             14.8 cents CommentsClose CommentsPermalink

Calendar year 2013                                                    15 cents             11.1 cents CommentsClose CommentsPermalink

Any calendar quarter beginning after 2013 and before 2017  1st applicable rate  2d applicable rate.’. CommentsClose CommentsPermalink

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(2) APPLICABLE RATES- Paragraph (3) of section 40(h) of such Code is amended to read as follows:CommentsClose CommentsPermalink





‘(3) APPLICABLE RATES- For purposes of this subsection, the 1st applicable rate and the 2d applicable rate shall be determined in accordance with the following table:CommentsClose CommentsPermalink

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‘If the average price of crude oil during the preceding calendar quarter is: The 1st applicable rate for the calendar quarter is: The 2d applicable rate for the calendar quarter is: CommentsClose CommentsPermalink

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Not more than $50/barrel                                                                                                 30 cents                                         22.20 cents CommentsClose CommentsPermalink

More than $50 but not more than $60/barrel                                                                               24 cents                                         17.76 cents CommentsClose CommentsPermalink

More than $60 but not more than $70/barrel                                                                               18 cents                                         13.33 cents CommentsClose CommentsPermalink

More than $70 but not more than $80/barrel                                                                               12 cents                                          8.88 cents CommentsClose CommentsPermalink

More than $80 but not more than $90/barrel                                                                                6 cents                                          4.44 cents CommentsClose CommentsPermalink

More than $90/barrel                                                                                                      0 cents                                            0 cents. CommentsClose CommentsPermalink

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For purposes of the preceding table, the average price of crude oil for any calendar quarter shall be the average 3-month futures price on the New York Mercantile Exchange for light sweet crude oil for such calendar quarter.’.CommentsClose CommentsPermalink





(3) EXTENSION OF TAX CREDIT- Section 40 of such Code is amended--CommentsClose CommentsPermalink





(A) by striking ‘2011’ in subsection (e)(1)(A) and inserting ‘2016’,CommentsClose CommentsPermalink





(B) by striking ‘2012’ in subsection (e)(1)(B) and inserting ‘2017’, andCommentsClose CommentsPermalink





(C) by striking ‘2011’ in subsection (h)(1) and inserting ‘2016’.CommentsClose CommentsPermalink





(c) Repeal of Deadwood- Section 6426(b)(2) of the Internal Revenue Code of 1986 is amended by striking subparagraph (C).CommentsClose CommentsPermalink





(d) Effective Date- The amendments made by this section shall apply to any sale, use, or removal for any period after the date of the enactment of the Act.CommentsClose CommentsPermalink

SEC. 3. EXTENSION OF CELLULOSIC BIOFUEL PRODUCER CREDIT THROUGH 2016.

(a) In General- Section 40(b)(6) of the Internal Revenue Code of 1986 is amended by striking subparagraph (H).CommentsClose CommentsPermalink





(b) Conforming Amendment- Section 40(e) of the Internal Revenue Code of 1986 is amended by striking paragraph (3).CommentsClose CommentsPermalink

SEC. 4. EXTENSION AND MODIFICATION OF ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY CREDIT.

(a) Extension for Ethanol Refueling Property- Subsection (g) of section 30C of the Internal Revenue Code of 1986 is amended--CommentsClose CommentsPermalink





(1) by striking ‘and’ at the end of paragraph (1),CommentsClose CommentsPermalink





(2) by striking the second period at the end of paragraph (2),CommentsClose CommentsPermalink





(3) by redesignating paragraph (2) as paragraph (3), andCommentsClose CommentsPermalink





(4) by inserting after paragraph (1) the following new paragraph:CommentsClose CommentsPermalink





‘(2) in the case of property relating to fuel described in subsection (c)(2)(A)(ii), after December 31, 2016, and’.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 one or more of the fuels described in clause (i), but only if at least 20 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 December 31, 2011.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, 2017’.CommentsClose CommentsPermalink

SEC. 6. STAGED REDUCTION OF ETHANOL TARIFF.

(a) Calendar Year 2012-CommentsClose CommentsPermalink





(1) IN GENERAL- Heading 9901.00.50 of the Harmonized Tariff Schedule of the United States is amended--CommentsClose CommentsPermalink





(A) by striking ‘14.27›’ and inserting ‘5.28›’ in the column 1 general rate of duty and in the column 2 rate of duty; andCommentsClose CommentsPermalink





(B) by striking ‘Before 1/1/2012’ and inserting ‘Before 1/1/2013’.CommentsClose CommentsPermalink





(2) EFFECTIVE DATE- The amendments made by paragraph (1) shall take effect on January 1, 2012.CommentsClose CommentsPermalink





(b) Calendar Years 2013 Through 2016-CommentsClose CommentsPermalink





(1) IN GENERAL- Heading 9901.00.50 of the Harmonized Tariff Schedule of the United States is amended--CommentsClose CommentsPermalink





(A) by striking ‘5.28›’ and inserting ‘3.96›’ in the column 1 general rate of duty and in the column 2 rate of duty; andCommentsClose CommentsPermalink





(B) by striking ‘Before 1/1/2013’ and inserting ‘Before 1/1/2017’.CommentsClose CommentsPermalink





(2) EFFECTIVE DATE- The amendments made by paragraph (1) shall take effect on January 1, 2013.CommentsClose CommentsPermalink