Text: H.R.3985 — 111th Congress (2009-2010)All Information (Except Text)

There is one version of the bill.

Text available as:

Shown Here:
Introduced in House (11/02/2009)


111th CONGRESS
1st Session
H. R. 3985


To amend the Internal Revenue Code of 1986 to provide for a second generation biofuel producer credit, and for other purposes.


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.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. Short title.

This Act may be cited as the “Second Generation Biofuel Producer Tax Credit Act of 2009”.

SEC. 2. Second generation biofuel producer credit.

(a) 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:

“(B) APPLICABLE AMOUNT.—For purposes of this paragraph—

“(i) 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).

“(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.

“(iii) 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—

“(I) 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

“(II) in the case of ethanol, the amount of the credit in effect under subsection (b)(4) at the time of such production.”.

(b) Expansion of qualified fuels.—

(1) IN GENERAL.—Subclause (I) of section 40(b)(6)(E)(i) of such Code is amended to read as follows:

“(I) is derived solely from qualified feedstocks, and”.

(2) 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:

“(F) QUALIFIED FEEDSTOCK.—For purposes of this paragraph, the term ‘qualified feedstock’ means—

“(i) any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis, and

“(ii) any cultivated algae, cyanobacteria, or lemna.”.

(3) CONFORMING AMENDMENTS.—

(A) Section 40 of such Code is amended—

(i) by striking “cellulosic biofuel” each place it appears in the text thereof and inserting “second generation biofuel”,

(ii) by striking “Cellulosic” in the headings of subsections (b)(6), (b)(6)(E), and (d)(3)(D) and inserting “Second generation”, and

(iii) 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”.

(B) 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”.

(C) Paragraph (1) of section 4101(a) of such Code is amended by striking “cellulosic biofuel” and inserting “second generation biofuel”.

(c) 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:

“(iii) 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.”.

(d) 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:

“(iv) EXCLUSION OF UNPROCESSED FUELS.—The term ‘second generation biofuel’ shall not include any fuel if—

“(I) more than 4 percent of such fuel (determined by weight) is any combination of water and sediment, or

“(II) the ash content of such fuel is more than 1 percent (determined by weight).”.

(e) Liquid fuel defined.—

(1) 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:

“(G) 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.”.

(2) 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)”.

(3) 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”.

(f) 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:

“(I) REGISTRATION REQUIREMENTS.—No credit shall be determined under this paragraph with respect to any second generation biofuel produced by the taxpayer unless—

“(i) such taxpayer is registered with the Secretary as a producer of second generation biofuel under section 4101, and

“(ii) 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—

“(I) the type of such second generation biofuel,

“(II) the feedstocks from which such second generation biofuel is derived, and

“(III) the BTU content of such second generation biofuel.”.

(g) Application of biofuel reforms to bonus depreciation for biofuel plant property.—

(1) 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)”.

(2) CONFORMING AMENDMENTS.—Subsection (l) of section 168 of such Code is amended—

(A) by striking “cellulosic biofuel” each place it appears in the text thereof and inserting “second generation biofuel”,

(B) by striking paragraph (3) and redesignating paragraphs (4) through (8) as paragraphs (3) through (7), respectively,

(C) by striking “Cellulosic” in the heading of such subsection and inserting “Second Generation”, and

(D) by striking “cellulosic” in the heading of paragraph (2) and inserting “second generation”.

(h) Effective date.—

(1) 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.

(2) 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.

(3) 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.