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.
Short title
This Act may be cited as the
Biofuels Security Tax Act of
2006
.
Tax credit for flexible fuel vehicles
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:
Credit for flexible fuel vehicles
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.
Flexible fuel vehicle
For purposes of this subsection, the term flexible fuel vehicle means any motor vehicle—
which is capable of operating on both gasoline and a blend of 85 percent ethanol fuel (E–85) and 15 percent gasoline,
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,
the original use of which commences with the taxpayer,
which is acquired by the taxpayer for use or lease, but not for resale, and
which is made by a manufacturer.
.
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:
in the case of a new qualified alternative fuel vehicle—
as described in paragraph (4) or (5) of subsection (e), December 31, 2010, and
as described in paragraph (6) of subsection (e), December 31, 2016.
.
Effective date
The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.
Modification of alternative fuel refueling property credit
Extension
Section
30C(g) of the Internal Revenue Code of 1986 is amended by striking
2009
and inserting 2016
.
Expansion
Rate
Section 30C(a) of the Internal Revenue Code of 1986 is amended—
by striking
30 percent
and inserting 50 percent
, and
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
.
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
.
.
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:
Nonapplication of credit to major oil companies
In general
This section shall not apply to any property placed in service by a major oil company.
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.
.
Effective date
The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.