109th CONGRESS
2d Session
H. R. 5856
To amend the Internal Revenue Code of 1986 to allow the allocation
of the alternative fuel vehicle refueling property credit to patrons of
agricultural cooperatives.
IN THE HOUSE OF REPRESENTATIVES
July 20, 2006
Ms. DELAURO (for herself, Mr. BOSWELL, Ms. KAPTUR, Mr. SKELTON, Mr. BROWN
of Ohio, Mr. GRIJALVA, and Ms. MCCOLLUM of Minnesota) 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 allow the allocation
of the alternative fuel vehicle refueling property credit to patrons of
agricultural cooperatives.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. ALLOCATION OF ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY CREDIT
TO PATRONS OF AGRICULTURAL COOPERATIVES.
(a) In General- Subsection (e) of section 30C of the Internal Revenue Code
of 1986 (relating to special rules) is amended by adding at the end the
following new paragraph:
`(6) ALLOCATION OF CREDIT TO PATRONS OF AGRICULTURAL COOPERATIVE-
`(A) ELECTION TO ALLOCATE-
`(i) IN GENERAL- In the case of an eligible cooperative organization,
any portion of the credit determined under subsection (a) for the
taxable year may, at the election of the organization, be apportioned
among patrons of the organization on the basis of the amount of business
done by the patrons during the taxable year.
`(ii) FORM AND EFFECT OF ELECTION- An election under clause (i) for
any taxable year shall be made on a timely filed return for such year.
Such election, once made, shall be irrevocable for such taxable year.
Such election shall not take effect unless the organization designates
the apportionment as such in a written notice mailed to its patrons
during the payment period described in section 1382(d).
`(B) TREATMENT OF ORGANIZATIONS AND PATRONS- The amount of the credit
apportioned to any patrons under subparagraph (A)--
`(i) shall not be included in the amount determined under subsection
(a) with respect to the organization for the taxable year, and
`(ii) shall be included in the amount determined under subsection
(a) for the first taxable year of each patron ending on or after the
last day of the payment period (as defined in section 1382(d)) for
the taxable year of the organization or, if earlier, for the taxable
year of each patron ending on or after the date on which the patron
receives notice from the cooperative of the apportionment.
`(C) SPECIAL RULES FOR DECREASE IN CREDITS FOR TAXABLE YEAR- If the
amount of the credit of a cooperative organization determined under
subsection (a) for a taxable year is less than the amount of such credit
shown on the return of the cooperative organization for such year, an
amount equal to the excess of--
`(i) such reduction, over
`(ii) the amount not apportioned to such patrons under subparagraph
(A) for the taxable year,
shall be treated as an increase in tax imposed by this chapter on the
organization. Such increase shall not be treated as tax imposed by this
chapter for purposes of determining the amount of any credit under this
chapter.
`(D) ELIGIBLE COOPERATIVE DEFINED- For purposes of this section the
term `eligible cooperative' means a cooperative organization described
in section 1381(a) which is owned more than 50 percent by agricultural
producers or by entities owned by agricultural producers. For this purpose
an entity owned by an agricultural producer is one that is more than
50 percent owned by agricultural producers.'.
(b) Conforming Amendment- The last sentence of section 55(c)(1) of such
Code is amended by inserting `30C(e)(6),' after `section'.
(c) Effective Date- The amendments made by this section shall apply to taxable
years of cooperative organizations ending after the date of the enactment
of this Act.
END
