Text: H.R.5343 — 111th Congress (2009-2010)All Information (Except Text)

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Introduced in House (05/19/2010)


111th CONGRESS
2d Session
H. R. 5343


To amend the Internal Revenue Code of 1986 to provide an investment tax credit for advanced biofuel production property.


IN THE HOUSE OF REPRESENTATIVES

May 19, 2010

Ms. Herseth Sandlin (for herself and Mr. Hodes) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned


A BILL

To amend the Internal Revenue Code of 1986 to provide an investment tax credit for advanced biofuel production property.

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 “Advanced Biofuel Investment Act of 2010”.

SEC. 2. Investment tax credit for qualified advanced biofuel production property.

(a) In general.—Subparagraph (A) of section 48(a)(3) of the Internal Revenue Code of 1986 (defining energy property) is amended by striking “or” at the end of clause (vi), by inserting “or” at the end of clause (vii), and by inserting after clause (vii) the following new clause:

“(viii) qualified advanced biofuel production property,”.

(b) 30 percent credit.—Clause (i) of section 48(a)(2)(A) of the Internal Revenue Code of 1986 is amended by striking “and” at the end of subclause (III) and by inserting after subclause (IV) the following new subclause:

“(V) qualified advanced biofuel production property, and”.

(c) Definitions.—Subsection (c) of section 48 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

“(5) QUALIFIED ADVANCED BIOFUEL PRODUCTION PROPERTY.—

“(A) IN GENERAL.—The term ‘qualified advanced biofuel production property’ means property used in an advanced biofuel project.

“(B) ADVANCED BIOFUEL PROJECT.—The term ‘advanced biofuel project’ means a project certified by the Secretary of Energy as meeting the following requirements:

“(i) The property is used to produce advanced biofuel for sale to unrelated persons (within the meaning of section 45(e)(4)).

“(ii) The project will rely primarily on new or significantly improved technologies as compared to commercial technologies currently in service in the United States and used to produce advanced biofuel.

“(iii) Such other requirements as the Secretary of Energy, not later than 120 days after the date of the Advanced Biofuel Investment Act of 2010, may by regulation prescribe to the extent necessary to carry out the purposes of this section, including encouraging private investment in projects which provide the greatest net impact in avoiding or reducing air pollutants or anthropogenic emissions of greenhouse gases, have the greatest readiness for commercial employment, replication, and further commercial use in the United States, and will introduce new technologies and fuel production processes in the commercial market.

“(C) ADVANCED BIOFUEL.—The term ‘advanced biofuel’ means fuel that—

“(i) meets the definition of advanced biofuel in section 9001(3) of the Farm Security and Rural Investment Act of 2002, and

“(ii) has lifecycle greenhouse gas emissions that are at least 50 percent less than baseline lifecycle greenhouse gas emissions, as required under section 211(o)(1)(B)(i) of the Clean Air Act.

“(D) TERMINATION.—The term ‘qualified advanced biofuel production property’ shall not include any property placed in service after December 31, 2015.”.

(d) Grants in lieu of tax credit.—

(1) IN GENERAL.—Section 1603(d) of the American Recovery and Reinvestment Tax Act of 2009 is amended by inserting after paragraph (8) the following new paragraph:

“(9) QUALIFIED ADVANCED BIOFUEL PRODUCTION PROPERTY.—Any property described in clause (viii) of section 48(a)(3)(A).”.

(2) APPLICABLE PERCENTAGE.—Section 1603(b)(2)(A) of such Act is amended by inserting “and (9)” after “through (4)”.

(e) Grant includible in income.—Section 48(d)(3) of the Internal Revenue Code of 1986 is amended by striking “Any such grant” and inserting “Except for a grant for specified energy property described in subsection (d)(9) of such section 1603, any such grant”.

(f) Effective date.—The amendments made by this section shall apply to periods after the date of the enactment of this Act, in taxable years ending after such date, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).