[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5713 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 5713

 To amend the Internal Revenue Code of 1986 to clarify the eligibility 
   for certain fuels credits for fuel with insufficient nexus to the 
                             United States.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 4, 2008

 Mr. Shadegg 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 clarify the eligibility 
   for certain fuels credits for fuel with insufficient nexus to the 
                             United States.

    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 ``Splash and Dash Correction Act of 
2008''.

SEC. 2. STATEMENT OF CONSTITUTIONAL AUTHORITY.

    The Congress enacts this Act pursuant to clause 1 of section 8 of 
Article I of the United States Constitution and Amendment XVI of the 
United States Constitution.

SEC. 3. CLARIFICATION OF ELIGIBILITY FOR CERTAIN FUELS CREDITS FOR FUEL 
              WITH INSUFFICIENT NEXUS TO THE UNITED STATES.

    (a) In General.--
            (1) Alcohol credit.--Subsection (d) of section 40 of the 
        Internal Revenue Code of 1986 is amended by adding at the end 
        the following new paragraph:
            ``(6) Limitation to alcohol with connection to the united 
        states.--
                    ``(A) Alcohol credit.--No alcohol credit shall be 
                determined under this section with respect to any 
                alcohol unless such alcohol is produced in the United 
                States for consumption in the United States or entered 
                into the United States for consumption in the United 
                States.
                    ``(B) Alcohol mixture credit.--No alcohol mixture 
                credit shall be determined under this section with 
                respect to any mixture unless such mixture is produced 
                in the United States for consumption in the United 
                States or entered into the United States for 
                consumption in the United States.
                    ``(C) No credits for alcohol destined for export.--
                No credit (other than the small ethanol producer 
                credit) shall be determined under this section with 
                respect to any mixture or alcohol if such mixture or 
                alcohol is destined for export from the United States 
                (as determined by the Secretary).''.
            (2) Biodiesel credit.--Subsection (d) of section 40A of 
        such Code is amended by adding at the end the following new 
        paragraph:
            ``(5) Limitation to biodiesel with connection to the united 
        states.--
                    ``(A) Biodiesel credit.--No biodiesel credit shall 
                be determined under this section with respect to any 
                biodiesel unless such biodiesel is produced in the 
                United States for consumption in the United States or 
                is entered into the United States for consumption in 
                the United States.
                    ``(B) Biodiesel mixture credit.--No biodiesel 
                mixture credit shall be determined under this section 
                with respect to any mixture unless such mixture is 
                produced in the United States for consumption in the 
                United States or is entered into the United States for 
                consumption in the United States.
                    ``(C) No credits for biodiesel destined for 
                export.--No credit (other than the small agri-biodiesel 
                producer credit) shall be determined under this section 
                with respect to any mixture or biodiesel if such 
                mixture or biodiesel is destined for export from the 
                United States (as determined by the Secretary).''.
            (3) Excise tax credits.--Section 6426 of such Code is 
        amended by adding at the end the following new subsection:
    ``(h) Limitation to Fuels With Connection to the United States.--
            ``(1) Mixture credits.--No credit shall be determined under 
        this section with respect to any mixture unless such mixture is 
        produced in the United States for consumption in the United 
        States or is entered into the United States for consumption in 
        the United States.
            ``(2) Alternative fuel credit.--No alternative fuel credit 
        shall be determined under this section with respect to any 
        alternative fuel unless such alternative fuel is produced in 
        the United States for consumption in the United States or is 
        entered into the United States for consumption in the United 
        States.
            ``(3) No credits for fuels destined for export.--No credit 
        shall be determined under this section with respect to any 
        mixture or alternative fuel if such mixture or alternative fuel 
        is destined for export from the United States (as determined by 
        the Secretary).''.
            (4) Payments.--Subsection (e) of section 6427 of such Code 
        is amended by redesignating paragraph (5) as paragraph (6) and 
        by inserting after paragraph (4) the following new paragraph:
            ``(5) Limitation to fuels with connection to the united 
        states.--No amount shall be payable under paragraph (1) or (2) 
        with respect to any mixture or alternative fuel if credit is 
        not allowed with respect to such mixture or alternative fuel by 
        reason of section 6426(h).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to fuel sold or used after the date of the enactment of this Act.
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