HR 6269 - American Commercial Ethanol Fairness Act of 2008

HR 6269

110th CONGRESS
2d Session

H. R. 6269

To amend the Internal Revenue Code of 1986 to allow a credit against income tax for the use of ethanol in tetra ethyl ortho silicate (TEOS) production.

IN THE HOUSE OF REPRESENTATIVES

June 12, 2008

Mr. WALBERG (for himself and Mr. LATTA) 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 a credit against income tax for the use of ethanol in tetra ethyl ortho silicate (TEOS) production.

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 `American Commercial Ethanol Fairness Act of 2008'.

SEC. 2. CREDIT FOR USE OF ETHANOL IN TEOS PRODUCTION.

(a) In General- Subsection (a) of section 40 of the Internal Revenue Code of 1986 (relating to alcohol used as fuel) is amended by striking the period at the end of paragraph (4) and inserting `, plus' and by adding after paragraph (4) the following new paragraph:

`(5) the ethanol in TEOS production credit.'.

(b) Ethanol in TEOS Production Credit- Subsection (b) of section 40 of such Code (defining alcohol mixture credit, alcohol credit, and small ethanol producer credit) is amended by adding at the end the following new paragraph:

`(7) ETHANOL IN TEOS PRODUCTION CREDIT-

`(A) IN GENERAL- The ethanol in TEOS production credit for any taxable year is 45 cents for each gallon of alcohol which is ethanol that is used by the taxpayer in the production of tetra ethyl ortho silicate (TEOS) which is sold by the taxpayer producing such chemical to any person during such taxable year.

`(B) SALE MUST BE IN TRADE OR BUSINESS, ETC- Alcohol used in the production of tetra ethyl ortho silicate (TEOS) shall be taken into account--

`(i) only if such tetra ethyl ortho silicate (TEOS) is manufactured in the United States,

`(ii) only if the sale described in subparagraph (A) is in a trade or business of the taxpayer, and

`(iii) for the taxable year in which such sale occurs.

`(C) SMALL CREDIT FOR LOWER PROOF ETHANOL- In the case of any alcohol with a proof which is at least 150 but less than 190, subparagraph (A) shall be applied by substituting `33.33 cents' for `45 cents'.

`(D) DENIAL OF DOUBLE BENEFIT- In determining the amount of the credit described in this paragraph, a taxpayer shall not take into account any amount of alcohol that is taken into account in determining the amount of a credit described in paragraph (1), (2), (4), or (6).'.

(1) Section 40(d)(3)(A)(i) of such Code is amended by inserting `other than the ethanol in TEOS production credit described in subsection (b)(7)' after `any credit', and

(2) Section 40(d)(3)(B)(i) of such Code is amended by inserting `other than the ethanol in TEOS production credit described in subsection (b)(7)' after `any credit'.

(3) The heading for section 40(b) of such Code is amended by striking `and Small Ethanol Producer Credit' and inserting `Small Ethanol Producer Credit, and Ethanol in TEOS Production Credit'.

(d) Effective Date- The amendments made by this section shall apply to tetra ethyl ortho silicate (TEOS) sold in taxable years beginning after December 31, 2007.

END