S. 2816Senate109th Congress (2005-2007)In Committee

Biofuels Security Tax Act of 2006

A bill to amend the Internal Revenue Code of 1986 to provide an income tax credit for the manufacture of flexible fuel motor vehicles and to extend and increase the income tax credit for alternative fuel refueling property, and for other purposes.

Sponsored by Tom HarkinSen. Tom Harkin (D-IA)
Introduced May 16, 2006

Legislative Activity

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2 earlier actions
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

May 16, 2006

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SenateIntro Referral

Introduced in Senate

May 16, 2006

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S4624)

May 16, 2006

SenateIntro Referral

Read twice and referred to the Committee on Finance.

May 16, 2006

Floor Debate

7 members

What members said about S. 2816 on the floor

2 Republicans5 Democrats
Tom Harkin
Sen. Tom HarkinD-IA · May 16, 2006

Today, I am introducing, along with Senators Lugar, Johnson, Dorgan and Biden, tax legislation that is designed to complement the Biofuels Security Act of 2006, also being introduced today. I will…

John D. Rockefeller IV
Sen. John D. Rockefeller IVD-WV · May 16, 2006

Mr. President, it is my honor today to join with several of my distinguished colleagues to introduce S. 2803, the Mine Improvement and New Emergency Response, MINER Act of 2006. This is the first…

Christopher J. Dodd
Sen. Christopher J. DoddD-CT · May 16, 2006

Mr. President, I introduce legislation today to improve the way we measure the condition of America's economy. My bill, the Economic Indicators Commission Act of 2006, would establish a nonpartisan…

Michael B. Enzi
Sen. Michael B. EnziR-WY · May 16, 2006

Mr. President, as the chairman of the Senate Committee on Health, Education, Labor and Pensions I am pleased to announce today the introduction of comprehensive legislation designed to make our…

Tim Johnson
Sen. Tim JohnsonD-SD · May 16, 2006

Mr. President, today I join Senators Harkin, Lugar, and Dorgan in introducing a broad package of initiatives to jump-start the distribution of renewable fuels, empower consumers, and achieve our…

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Tim Johnson
Sen. Tim JohnsonD-SD · May 16, 2006

Mr. President, today I join Senators Harkin, Lugar, and Dorgan in introducing a broad package of initiatives to jump-start the distribution of renewable fuels, empower consumers, and achieve our…

Dianne Feinstein
Sen. Dianne FeinsteinD-CA · May 16, 2006

Mr. President, I am offering today private relief legislation to provide lawful permanent residence status to Claudia Marquez Rico, a Mexican national living in Redwood City, CA Born in Jalisco,…

Tom Harkin
Sen. Tom HarkinD-IA · May 16, 2006

Today, I am introducing, along with Senators Lugar, Johnson, Dorgan and Biden, tax legislation that is designed to complement the Biofuels Security Act of 2006, also being introduced today. I will…

Chuck Grassley
Sen. Chuck GrassleyR-IA · May 16, 2006

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Bill Text

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Introduced in SenateIssued May 16, 2006

II

109th CONGRESS

2d Session

S. 2816

IN THE SENATE OF THE UNITED STATES

May 16, 2006

Mr. Harkin (for himself, Mr. Lugar, Mr. Johnson, Mr. Dorgan, and Mr. Biden) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to provide an income tax credit for the manufacture of flexible fuel motor vehicles and to extend and increase the income tax credit for alternative fuel refueling property, and for other purposes.

1.

Short title

This Act may be cited as the Biofuels Security Tax Act of 2006.

2.

Tax credit for flexible fuel vehicles

(a)

In general

Section 30B(e) of the Internal Revenue Code of 1986 (relating to new qualified alternative fuel motor vehicle credit) is amended by adding at the end the following new paragraph:

(6)

Credit for flexible fuel vehicles

(A)

In general

In the case of a flexible fuel vehicle placed in service by the taxpayer during the taxable year, the credit determined under this subsection is an amount equal to the credit which would have been allowed under this subsection if such vehicle was a qualified alternative fuel motor vehicle.

(B)

Flexible fuel vehicle

For purposes of this subsection, the term flexible fuel vehicle means any motor vehicle—

(i)

which is capable of operating on both gasoline and a blend of 85 percent ethanol fuel (E–85) and 15 percent gasoline,

(ii)

which is certified by the manufacturer as having a fuel economy rating when running on E–85 that is substantially the same or better than a fuel economy rating when running on gasoline only,

(iii)

the original use of which commences with the taxpayer,

(iv)

which is acquired by the taxpayer for use or lease, but not for resale, and

(v)

which is made by a manufacturer.

.

(b)

Period of credit

Paragraph (4) of section 30B(j) of the Internal Revenue Code of 1986 (relating to termination) is amended to read as follows:

(4)

in the case of a new qualified alternative fuel vehicle—

(A)

as described in paragraph (4) or (5) of subsection (e), December 31, 2010, and

(B)

as described in paragraph (6) of subsection (e), December 31, 2016.

.

(c)

Effective date

The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.

3.

Modification of alternative fuel refueling property credit

(a)

Extension

Section 30C(g) of the Internal Revenue Code of 1986 is amended by striking 2009 and inserting 2016.

(b)

Expansion

(1)

Rate

Section 30C(a) of the Internal Revenue Code of 1986 is amended—

(A)

by striking 30 percent and inserting 50 percent, and

(B)

by adding at the end the following new sentence: In the case of any taxpayer which places in service not more than 5 qualified alternative fuel vehicle refueling properties determined by taking into account any such property placed in service in all preceding taxable years, the preceding sentence shall be applied with respect to any such property placed in service in the taxable year by substituting 75 percent for 50 percent.

(2)

Dollar limit for small retailers

Section 30C(b) of such Code is amended by adding at the end the following new flush sentence:

In the case of any taxpayer which places in service not more than 5 qualified alternative fuel vehicle refueling properties determined by taking into account any such property placed in service in all preceding taxable years, paragraph (1) shall be applied with respect to any such property placed in service in the taxable year by substituting $45,000 for $30,000.

.

(c)

Elimination of credit for major oil companies

Section 30C(e) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

(6)

Nonapplication of credit to major oil companies

(A)

In general

This section shall not apply to any property placed in service by a major oil company.

(B)

Major oil company

The term major oil company means any person that, individually or together with any other person with respect to which the person has an affiliate relationship or significant ownership interest, has not less than 4,500 retail station outlets according to the publication of the Petroleum News Annual Factbook in effect on such date of placement.

.

(d)

Effective date

The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.