109 HR 6212 IH: Ethanol Stimulus Act of U.S. House of Representatives 2006-09-27 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 109th CONGRESS 2d Session H. R. 6212 IN THE HOUSE OF REPRESENTATIVES September 27, 2006 Mr. Higgins (for himself, Mr. Hinchey, Mrs. Napolitano, Ms. Corrine Brown of Florida, and Ms. Jackson-Lee of Texas) 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 a tax incentive to produce ethanol in high-consumption, low-production States, and for other purposes.

1.

Short title

This Act may be cited as the Ethanol Stimulus Act of 2006.

2.

Ethanol production tax incentives in high-consumption, low-production States

(a)

In general

Section 40(b)(4) of the Internal Revenue Code of 1986 (relating to small ethanol producer credit) is amended by adding at the end the following new subparagraph: (E)

Credit for ethanol production in two-two states

(i)

In general

In the case of qualified ethanol production by any eligible small ethanol producer in all eligible ethanol production facilities of such producer— (I)subparagraph (A) shall be applied by substituting 20 cents for 10 cents, and (II)subparagraph (C) shall be applied by substituting 50,000,000 gallons for 15,000,000 gallons. (ii)

5-year per facility limitation on credit amount

With respect to each eligible ethanol production facility, the credit determined under this section by reason of this subparagraph shall apply to production from such facility for the period— (I)beginning with the taxable year during which production from such facility begins, and (II)ending on the last day of the fourth taxable year following the taxable year described in subclause (I). (iii)

Eligible ethanol production facility

For purposes of this subparagraph, the term eligible ethanol production facility means any ethanol production facility the original use of which commences with the taxpayer and— (I)which is acquired by purchase (as defined in section 179(d)(2)) by the taxpayer after August 8, 2005, and before August 9, 2010, but only if no written binding contract for the acquisition was in effect before August 9, 2005, (II)which is acquired by the taxpayer pursuant to a written binding contract which was entered into after August 8, 2005, and before August 9, 2010, or (III)in the case of a taxpayer constructing property for the taxpayer's own use, the construction of which begins after August 8, 2005, and before August 9, 2010, in a State which is a two-two State on the date of such purchase under subclause (I), of such written binding contract under subclause (II), or the beginning of such construction under subclause (III).(iv)

Two-two state

For purposes of this subparagraph, the term two-two State means for any period any State (as determined by the Energy Information Administration) within which— (I)is consumed more than 2 percent of the aggregate amount of gasoline consumed in all States during such period, and (II)is produced less than 2 percent of the aggregate amount of ethanol produced in all States during such period. . (b)

Eligible small ethanol producer

Section 40(g)(1) of the Internal Revenue Code of 1986 (defining eligible small ethanol producer) is amended by inserting (150,000,000 gallons in the case of such productive capacity in all two-two States (as defined in subsection (b)(4)(E)(iv)) after 60,000,000 gallons. (c)

Conforming amendment

Section 40(g)(2) of the Internal Revenue Code of 1986 is amended by striking For purposes of the 15,000,000 gallon limitation under subsection (b)(4)(C) and the 60,000,000 gallon limitation under paragraph (1) and inserting For purposes of each gallon limitation under subsection (b)(4) and paragraph (1). (d)

Effective date

The amendments made by this section shall apply to ethanol produced in taxable years ending after the date of the enactment of this Act.