[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2816 Introduced in Senate (IS)]








109th CONGRESS
  2d Session
                                S. 2816

  To amend the Internal Revenue Code of 1986 to provide an income tax 
   credit for the manufacture of flexible fuel motor vehicles and to 
    extend and increase the income tax credit for alternative fuel 
              refueling property, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 16, 2006

 Mr. Harkin (for himself, Mr. Lugar, Mr. Johnson, Mr. Dorgan, and Mr. 
Biden) introduced the following bill; which was read twice and referred 
                      to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to provide an income tax 
   credit for the manufacture of flexible fuel motor vehicles and to 
    extend and increase the income tax credit for alternative fuel 
              refueling property, 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 ``Biofuels Security Tax Act of 2006''.

SEC. 2. TAX CREDIT FOR FLEXIBLE FUEL VEHICLES.

    (a) In General.--Section 30B(e) of the Internal Revenue Code of 
1986 (relating to new qualified alternative fuel motor vehicle credit) 
is amended by adding at the end the following new paragraph:
            ``(6) Credit for flexible fuel vehicles.--
                    ``(A) In general.--In the case of a flexible fuel 
                vehicle placed in service by the taxpayer during the 
                taxable year, the credit determined under this 
                subsection is an amount equal to the credit which would 
                have been allowed under this subsection if such vehicle 
                was a qualified alternative fuel motor vehicle.
                    ``(B) Flexible fuel vehicle.--For purposes of this 
                subsection, the term `flexible fuel vehicle' means any 
                motor vehicle--
                            ``(i) which is capable of operating on both 
                        gasoline and a blend of 85 percent ethanol fuel 
                        (E-85) and 15 percent gasoline,
                            ``(ii) which is certified by the 
                        manufacturer as having a fuel economy rating 
                        when running on E-85 that is substantially the 
                        same or better than a fuel economy rating when 
                        running on gasoline only,
                            ``(iii) the original use of which commences 
                        with the taxpayer,
                            ``(iv) which is acquired by the taxpayer 
                        for use or lease, but not for resale, and
                            ``(v) which is made by a manufacturer.''.
    (b) Period of Credit.--Paragraph (4) of section 30B(j) of the 
Internal Revenue Code of 1986 (relating to termination) is amended to 
read as follows:
            ``(4) in the case of a new qualified alternative fuel 
        vehicle--
                    ``(A) as described in paragraph (4) or (5) of 
                subsection (e), December 31, 2010, and
                    ``(B) as described in paragraph (6) of subsection 
                (e), December 31, 2016.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.

SEC. 3. MODIFICATION OF ALTERNATIVE FUEL REFUELING PROPERTY CREDIT.

    (a) Extension.--Section 30C(g) of the Internal Revenue Code of 1986 
is amended by striking ``2009'' and inserting ``2016''.
    (b) Expansion.--
            (1) Rate.--Section 30C(a) of the Internal Revenue Code of 
        1986 is amended--
                    (A) by striking ``30 percent'' and inserting ``50 
                percent'', and
                    (B) by adding at the end the following new 
                sentence: ``In the case of any taxpayer which places in 
                service not more than 5 qualified alternative fuel 
                vehicle refueling properties determined by taking into 
                account any such property placed in service in all 
                preceding taxable years, the preceding sentence shall 
                be applied with respect to any such property placed in 
                service in the taxable year by substituting `75 
                percent' for `50 percent'.''
            (2) Dollar limit for small retailers.--Section 30C(b) of 
        such Code is amended by adding at the end the following new 
        flush sentence:
``In the case of any taxpayer which places in service not more than 5 
qualified alternative fuel vehicle refueling properties determined by 
taking into account any such property placed in service in all 
preceding taxable years, paragraph (1) shall be applied with respect to 
any such property placed in service in the taxable year by substituting 
`$45,000' for `$30,000'.''.
    (c) Elimination of Credit for Major Oil Companies.--Section 30C(e) 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new paragraph:
            ``(6) Nonapplication of credit to major oil companies.--
                    ``(A) In general.--This section shall not apply to 
                any property placed in service by a major oil company.
                    ``(B) Major oil company.--The term `major oil 
                company' means any person that, individually or 
                together with any other person with respect to which 
                the person has an affiliate relationship or significant 
                ownership interest, has not less than 4,500 retail 
                station outlets according to the publication of the 
                Petroleum News Annual Factbook in effect on such date 
                of placement.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.
                                 <all>