[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2256 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 2256

 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

                              May 9, 2007

 Mr. Walberg 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 2007''.

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

    (a) In General.--Section 40 of the Internal Revenue Code of 1986 
(relating to alcohol used as fuel) is amended--
            (1) in paragraph (3) of subsection (a) by striking the 
        period and inserting ``, plus'' and by adding at the end of 
        subsection (a) the following new paragraph:
            ``(4) the ethanol in TEOS production credit.'',
            (2) in subsection (b)--
                    (A) in the heading by striking ``and Small Ethanol 
                Producer Credit'' and inserting ``Small Ethanol 
                Producer Credit, and Ethanol in TEOS Production 
                Credit'', and
                    (B) by adding at the end the following new 
                paragraph:
            ``(6) Ethanol in teos production credit.--
                    ``(A) In general.--The ethanol in TEOS production 
                credit for any taxable year is 51 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 the sale described in 
                        subparagraph (A) is in a trade or business of 
                        the taxpayer, and
                            ``(ii) 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 `37.78 cents' for `51 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), or 
                (4).'',
            (3) in subsection (d)(3)(A)(i), by inserting ``other than 
        the ethanol in TEOS production credit described in subsection 
        (b)(6)'' after ``any credit'', and
            (4) in subsection (d)(3)(B)(i), by inserting ``other than 
        the ethanol in TEOS production credit described in subsection 
        (b)(6)'' after ``any credit''.
    (b) 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.
                                 <all>