110 HR 3586 IH: To amend the Internal Revenue Code of 1986 to allow a U.S. House of Representatives 2007-09-19 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. 3586 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.

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:

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.