[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 3600 Introduced in Senate (IS)]








109th CONGRESS
  2d Session
                                S. 3600

 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 SENATE OF THE UNITED STATES

                             June 29, 2006

  Mr. Harkin 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 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) is 
amended by inserting ``30C(e)(6),'' after ``section''.
    (c) Effective Date.--The amendment made by this section shall apply 
to taxable years of cooperative organizations ending after the date of 
the enactment of this Act.
                                 <all>