S.Amdt. 2495

SA 2495. Ms. KLOBUCHAR (for herself and Mr. Thune) submitted an
amendment intended to be proposed to amendment SA 2137 proposed by Mr.
Schumer (for Ms. Sinema (for herself, Mr. Portman, Mr. Manchin, Mr.
Cassidy, Mrs. Shaheen, Ms. Collins, Mr. Tester, Ms. Murkowski, Mr.
Warner, and Mr. Romney)) to the bill H.R. 3684, to authorize funds for
Federal-aid highways, highway safety programs, and transit programs,
and for other purposes; which was ordered to lie on the table; as
follows:

At the appropriate place in division H, insert the
following:

SEC. ___. CREDIT FOR SALE OR BLENDING OF ETHANOL FUELS.

(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:

``SEC. 45U. CREDIT FOR SALE OR BLENDING OF ETHANOL FUELS.

``(a) In General.--For purposes of section 38, the ethanol
fuel credit determined under this section for any taxable
year is an amount equal to--
``(1) in the case of an applicable taxpayer which is
described in subsection (b)(1)(A)--
``(A) for each gallon of E15 blended by such taxpayer, 5
cents, and
``(B) for each gallon of fuel blended by such taxpayer
which contains more than 15 volume percent ethanol, 10 cents,
and
``(2) subject to subsection (c), in the case of an
applicable taxpayer which is described in subsection
(b)(1)(B)--
``(A) for each gallon of E15 sold by such taxpayer, 5
cents, and
``(B) for each gallon of fuel sold by such taxpayer which
contains more than 15 volume percent ethanol, 10 cents.
``(b) Definitions.--For purposes of this section--
``(1) Applicable taxpayer.--The term `applicable taxpayer'
means--
``(A) an oxygenate blender (as defined in section 1090.80
of title 40, Code of Federal Regulations), and
``(B) a retailer (as defined in paragraph (7) of section
101 of the Petroleum Marketing Practices Act (15 U.S.C.
2801)).
``(2) E15.--The term `E15' means gasoline that is marketed
and sold as E15 contains

[[Page S5852]]

more than 13 percent ethanol and no more than 15 percent
ethanol by volume.
``(c) Election.--
``(1) In general.--
``(A) Election by oxygenate blender.--Subsection (a)(1)
shall apply with respect to any gallon of fuel described in
such subsection only if the applicable taxpayer described in
subsection (b)(1)(A) elects to have such subsection apply
with respect to such gallon of fuel.
``(B) Notification.--The applicable taxpayer described in
subparagraph (A) shall provide notice of their election with
respect to any gallon of fuel described in such subparagraph
to any applicable taxpayer described in subsection (b)(1)(B)
to which such fuel is sold, with such notice to be provided
on or before the date of such sale.
``(2) Credit for retailer available only if not claimed by
oxygenate blender.--Subsection (a)(2) shall apply with
respect to any gallon of fuel described in such subsection
only if the applicable taxpayer described in subsection
(b)(1)(A) has not elected (pursuant to paragraph (1)) to
apply subsection (a)(1) with respect to such gallon of fuel.
``(d) Refundable Credit for Small Retailers.--For purposes
of this title, in the case of a retailer with not greater
than 5 retail locations at the close of the taxable year, the
credit allowed under subsection (a)(2) for such taxable year
shall be treated as a credit allowable under subpart C (and
not allowable under this subpart) for such taxable year.
``(e) Transfer of Credit.--
``(1) In general.--Subject to such regulations or other
guidance as the Secretary determines necessary or
appropriate, if, with respect to the credit allowed under
subsection (a) for any taxable year, the applicable taxpayer
elects the application of this subsection for such taxable
year with respect to all (or any portion specified in such
election) of such credit, the eligible entity specified in
such election, and not the applicable taxpayer, shall be
treated as the taxpayer for purposes of this title with
respect to such credit (or such portion thereof).
``(2) Eligible entity.--For purposes of this subsection,
the term `eligible entity' means any person within the supply
chain for fuel described in such section (a).''.
(b) Credit to Be Part of General Business Credit.--
Subsection (b) of section 38 of the Internal Revenue Code of
1986 is amended by striking ``plus'' at the end of paragraph
(32), by striking the period at the end of paragraph (33) and
inserting ``, plus'', and by adding at the end the following
new paragraph:
``(34) the credit for sale or blending of ethanol fuels
under section 45U to which subsection (d) of such section
does not apply.''.
(c) Conforming Amendment.--The table of sections for
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 item:

``Sec. 45U. Credit for sale or blending of ethanol fuels.''.
(d) Effective Date.--The amendments made by this section
shall apply to fuel blended or sold after December 31, 2021.
______