1.This Act may be cited as the
Biofuels Security Tax Act of
2006
.
2.Tax credit for
flexible fuel vehicles
(a)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 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)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)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)The amendments made by this section shall apply to property
placed in service after the date of the enactment of this Act.
3.Modification of
alternative fuel refueling property credit
(a)Section
30C(g) of the Internal Revenue Code of 1986 is amended by striking
2009
and inserting 2016
.
(b)
(1)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 retailersSection 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 companiesSection 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)This section shall not apply to any property placed in
service by a major oil company.
(B)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)The amendments made by this section shall apply to property
placed in service after the date of the enactment of this Act.