[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3586 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3586

 To amend the Internal Revenue Code of 1986 to allow a credit against 
income tax for the production of certain material produced from organic 
      matter which is available on a renewable or recurring basis.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 19, 2007

 Mr. Duncan (for himself, Mr. Boswell, and Mr. Graves) 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 production of certain material produced from organic 
      matter which is available on a renewable or recurring basis.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. PRODUCTION OF CERTAIN BIOMATERIALS.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business related 
credits) is amended by inserting after section 40A the following new 
section:

``SEC. 40B. USE OF RENEWABLE RESOURCE MATERIALS IN MANUFACTURING 
              BIOMATERIALS.

    ``(a) General Rule.--For purposes of section 38, the qualifying 
biomaterials credit determined under this section is 25 cents for each 
pound of qualifying biomaterial produced by the taxpayer during the 
taxable year for sale or use in the ordinary course of a trade or 
business of the taxpayer.
    ``(b) Limitation.--
            ``(1) In general.--The credit determined under subsection 
        (a) for any taxable year shall not exceed $125,000,000.
            ``(2) Controlled groups.--
                    ``(A) In general.--For purposes of this subsection, 
                all persons treated as a single employer under 
                subsection (a) or (b) of section 52 or subsection (m) 
                or (o) of section 414 shall be treated as a single 
                taxpayer.
                    ``(B) Inclusion of foreign corporations.--For 
                purposes of subparagraph (A), in applying subsections 
                (a) and (b) of section 52 to this section, section 1563 
                shall be applied without regard to subsection (b)(2)(C) 
                thereof.
    ``(c) Qualifying Biomaterial.--For purposes of this section--
            ``(1) In general.--The term `qualifying biomaterial' means 
        a commercial or industrial product--
                    ``(A)(i) which is produced by chemically or 
                biologically transforming feedstocks to produce one or 
                more compounds that are distinct from the feedstocks, 
                and
                    ``(ii) at least 75 percent (by weight) of the 
                feedstocks which are used to produce such material 
                consist of organic matter that is available on a 
                renewable or recurring basis, or
                    ``(B) which is a polymer resulting from the 
                polymerization of material described in paragraph (1) 
                as the sole monomer.
            ``(2) Exceptions.--Such term shall not include--
                    ``(A) any food, feed, or fuel, and
                    ``(B) any material which was produced in total 
                quantities of at least 1 million pounds per year in 
                2000.
    ``(d) Exclusions.--This section shall not apply to--
            ``(1) any material resulting from a process the primary 
        purpose of which is the production of a transportation fuel, 
        and
            ``(2) any polymer produced from a monomer for which credit 
        is allowed under this section.
    ``(e) Termination.--This section shall not apply to any material 
produced after the 5-year period beginning on the date of the enactment 
of this section.''.
    (b) Credit Part of General Business Credit.--Section 38(b) of such 
Code is amended by redesignating paragraphs (18) through (31) as 
paragraphs (19) through (32), respectively, and by inserting after 
paragraph (17) the following new paragraph:
            ``(18) the qualifying biomaterials credit determined under 
        section 40B(a).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to material produced in taxable years ending after the date of 
the enactment of this Act.
                                 <all>