110 HR 2256 IH: American Commercial Ethanol Fairness U.S. House of Representatives 2007-05-09 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 110th CONGRESS 1st Session H. R. 2256 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.

1.

Short title

This Act may be cited as the American Commercial Ethanol Fairness Act of 2007.

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.