II
112th CONGRESS
1st Session
S. 884
IN THE SENATE OF THE UNITED STATES
May 4, 2011
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 Finance
A BILL
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.
Short title
This Act may be cited as the
Domestic Energy Promotion Act of
2011
.
Variable VEETC rate based on price of crude oil
Excise tax credit
In general
Subparagraph (A) of section 6426(b)(2) of the Internal Revenue Code of 1986 is amended—
by striking
and
at the end of clause (i),
by inserting
and before 2012
after 2008
in clause (ii),
by striking the
period at the end of clause (ii) and inserting , and
, and
by adding at the end the following new clauses:
in the case of calendar year 2012, 20 cents,
in the case of calendar year 2013, 15 cents, and
in the case of calendar quarters beginning after 2013, the applicable rate determined in accordance with the following table:
| If the average price of crude oil | The applicable rate for |
| during the preceding calendar quarter is: | the calendar quarter is: |
| Not more than $50/barrel | 30 cents |
| More than $50 but not more than $60/barrel | 24 cents |
| More than $60 but not more than $70/barrel | 18 cents |
| More than $70 but not more than $80/barrel | 12 cents |
| More than $80 but not more than $90/barrel | 6 cents |
| More than $90/barrel | 0 cents. |
.
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
.
Income tax credit
In general
The table contained in section 40(h)(2) of the Internal Revenue Code of 1986 is amended—
by striking
calendar year
in the heading for the first column,
by inserting
Calendar year
before 2001
,
by inserting
Calendar year
before 2003
,
by inserting
Calendar year
before 2005
,
by inserting
Calendar years
before 2009
,
by striking the period at the end of the table, and
by adding at the end the following:
| Calendar year 2012 | 20 cents | 14.8 cents |
| Calendar year 2013 | 15 cents | 11.1 cents |
| Any calendar quarter beginning after 2013 and before 2017 | 1st applicable rate | 2d applicable rate. |
.
Applicable rates
Paragraph (3) of section 40(h) of such Code is amended to read as follows:
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:
| 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: |
| Not more than $50/barrel | 30 cents | 22.20 cents |
| More than $50 but not more than $60/barrel | 24 cents | 17.76 cents |
| More than $60 but not more than $70/barrel | 18 cents | 13.33 cents |
| More than $70 but not more than $80/barrel | 12 cents | 8.88 cents |
| More than $80 but not more than $90/barrel | 6 cents | 4.44 cents |
| More than $90/barrel | 0 cents | 0 cents. |
.
Extension of tax credit
Section 40 of such Code is amended—
by striking
2011
in subsection (e)(1)(A) and inserting
2016
,
by striking
2012
in subsection (e)(1)(B) and inserting 2017
,
and
by striking
2011
in subsection (h)(1) and inserting
2016
.
Repeal of deadwood
Section 6426(b)(2) of the Internal Revenue Code of 1986 is amended by striking subparagraph (C).
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.
Extension of cellulosic biofuel producer credit through 2016
In general
Section 40(b)(6) of the Internal Revenue Code of 1986 is amended by striking subparagraph (H).
Conforming amendment
Section 40(e) of the Internal Revenue Code of 1986 is amended by striking paragraph (3).
Extension and modification of alternative fuel vehicle refueling property credit
Extension for ethanol refueling property
Subsection (g) of section 30C of the Internal Revenue Code of 1986 is amended—
by striking
and
at the end of paragraph (1),
by striking the second period at the end of paragraph (2),
by redesignating paragraph (2) as paragraph (3), and
by inserting after paragraph (1) the following new paragraph:
in the case of property relating to fuel described in subsection (c)(2)(A)(ii), after December 31, 2016, and
.
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:
Any fuel—
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, or
at least 85 percent of the volume of which consists of—
ethanol, or
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.
.
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:
Dual-use refueling property
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)).
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).
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—
to store or dispense fuels not described in subsection (c)(2), or
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.
.
Effective date
The amendments made by this section shall apply to property placed in service after December 31, 2011.
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
.
Staged reduction of ethanol tariff
Calendar Year 2012
In general
Heading 9901.00.50 of the Harmonized Tariff Schedule of the United States is amended—
by striking
14.27¢
and inserting 5.28¢
in the column 1
general rate of duty and in the column 2 rate of duty; and
by striking
Before 1/1/2012
and inserting Before
1/1/2013
.
Effective date
The amendments made by paragraph (1) shall take effect on January 1, 2012.
Calendar years 2013 through 2016
In general
Heading 9901.00.50 of the Harmonized Tariff Schedule of the United States is amended—
by striking
5.28¢
and inserting 3.96¢
in the column 1 general
rate of duty and in the column 2 rate of duty; and
by striking
Before 1/1/2013
and inserting Before
1/1/2017
.
Effective date
The amendments made by paragraph (1) shall take effect on January 1, 2013.