I
111th CONGRESS
1st Session
H. R. 3985
IN THE HOUSE OF REPRESENTATIVES
November 2, 2009
Mr. Van Hollen introduced the following bill; which was referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to provide for a second generation biofuel producer credit, and for other purposes.
Short title
This Act may be cited as the
Second Generation Biofuel Producer Tax
Credit Act of 2009
.
Second generation biofuel producer credit
Credit amount determined based on BTU content of fuel
Subparagraph (B) of section 40(b)(6) of the Internal Revenue Code of 1986 is amended to read as follows:
Applicable amount
For purposes of this paragraph—
In general
The term applicable amount
means, with
respect to any type of second generation biofuel, the dollar amount which bears
the same ratio to $1.01 as the BTU content of such type of fuel bears to the
BTU content of ethanol. For purposes of the preceding sentence, the types of
second generation biofuel and the BTU content of such types shall be determined
in accordance with the table prescribed under clause (ii).
BTU content determined by Secretary
The Secretary, after consultation with the Secretary of Energy, shall prescribe a table which lists the types of second generation biofuel and the BTU content of each such type.
Coordination with alcohol credits
In the case of second generation biofuel which is alcohol, the applicable amount determined under clause (i) shall be reduced by the sum of—
the amount of the credit in effect for such alcohol under subsection (b)(1) (without regard to subsection (b)(3)) at the time of the qualified second generation biofuel production, plus
in the case of ethanol, the amount of the credit in effect under subsection (b)(4) at the time of such production.
.
Expansion of qualified fuels
In general
Subclause (I) of section 40(b)(6)(E)(i) of such Code is amended to read as follows:
is derived solely from qualified feedstocks, and
.
Qualified feedstock
Paragraph (6) of section 40(b) of such Code is amended by redesignating subparagraphs (F), (G), and (H) as subparagraphs (G), (H), and (I), respectively, and by inserting after subparagraph (E) the following new subparagraph:
Qualified feedstock
For purposes of
this paragraph, the term qualified feedstock
means—
any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis, and
any cultivated algae, cyanobacteria, or lemna.
.
Conforming amendments
Section 40 of such Code is amended—
by
striking cellulosic biofuel
each place it appears in the text
thereof and inserting second generation biofuel
,
by
striking Cellulosic
in the headings of subsections
(b)(6), (b)(6)(E), and (d)(3)(D) and inserting Second generation
,
and
by striking cellulosic
in the
headings of subsections (b)(6)(C), (b)(6)(D), (b)(6)(F), (d)(6), and (e)(3) and
inserting second
generation
.
Clause (iii) of
section 40(b)(6)(E) of such Code, as redesignated by paragraph (2), is amended
by striking Such term shall not
and inserting The term
.second generation biofuel
shall not
Paragraph (1) of
section 4101(a) of such Code is amended by striking cellulosic
biofuel
and inserting second generation biofuel
.
Exclusion of fuels produced from coprocessing with nonqualified feedstocks
Subparagraph (E) of section 40(b)(6) of such Code is amended by adding at the end the following new clause:
Exclusion of fuels produced from coprocessing with nonqualified feedstocks
The
term second generation biofuel
shall not include any fuel
derived from coprocessing a qualified feedstock with any feedstock which is not
a qualified
feedstock.
.
Exclusion of unprocessed fuels
Subparagraph (E) of section 40(b)(6) of such Code, as amended by subsection (c), is amended by adding at the end the following new clause:
Exclusion of unprocessed fuels
The term
second generation biofuel
shall not include any fuel if—
more than 4 percent of such fuel (determined by weight) is any combination of water and sediment, or
the ash content of such fuel is more than 1 percent (determined by weight).
.
Liquid fuel defined
In general
Paragraph (6) of section 40(b) of such Code, as amended by subsection (b), is amended by redesignating subparagraphs (G), (H), and (I) as subparagraphs (H), (I), and (J), respectively, and by inserting after subparagraph (F) the following new subparagraph:
Liquid fuel
The term liquid
fuel
shall not include any fuel unless such fuel would be a liquid at
room temperature after extraction of all water from the
fuel.
.
Application to alcohol mixture credit
Paragraph (2) of section 40(d) of such
Code is amended by inserting , within the meaning of subsection
(b)(6)(G),
after liquid fuel (other than
gasoline)
.
Application to renewable diesel
Paragraph (3) of section 40A(f) of such Code is
amended by inserting (within the meaning of section 40(b)(6)(G))
after liquid fuel
.
Registration of fuels
Subparagraph (I) of section 40(b)(6) of such Code, as redesignated by subsections (b) and (e), is amended to read as follows:
Registration requirements
No credit shall be determined under this paragraph with respect to any second generation biofuel produced by the taxpayer unless—
such taxpayer is registered with the Secretary as a producer of second generation biofuel under section 4101, and
such taxpayer provides the Secretary such information with respect to such second generation biofuel as the Secretary may (after consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency) require, including—
the type of such second generation biofuel,
the feedstocks from which such second generation biofuel is derived, and
the BTU content of such second generation biofuel.
.
Application of biofuel reforms to bonus depreciation for biofuel plant property
In general
Subparagraph (A) of section 168(l)(2) of such Code is
amended by striking solely to produce cellulosic biofuel
and
inserting solely to produce second generation biofuel (as defined in
section 40(b)(6)(E)
.
Conforming amendments
Subsection (l) of section 168 of such Code is amended—
by striking
cellulosic biofuel
each place it appears in the text thereof and
inserting second generation biofuel
,
by striking paragraph (3) and redesignating paragraphs (4) through (8) as paragraphs (3) through (7), respectively,
by striking Cellulosic
in the
heading of such subsection and inserting Second Generation
,
and
by striking cellulosic
in the
heading of paragraph (2) and inserting second generation
.
Effective date
In general
Except as provided in paragraph (2), the amendments made by this section shall apply to fuels sold or used after the date of the enactment of this Act.
Application to bonus depreciation
The amendments made by subsection (g) shall apply to property placed in service after the date of the enactment of this Act.
Temporary rule for determining credit amount based on BTU content of fuel
With respect to any fuel sold or used after the date of the enactment of this Act and before the date on which the Secretary prescribes the table described in clause (ii) of section 40(b)(6)(B) of the Internal Revenue Code of 1986 (as amended by this Act), clause (i) of such section shall be applied by treating all second generation biofuel as though it were ethanol.