1.Extension and modification of election to expense certain refineries
(a)
(1)Definition of qualified refinerySubsection (d) of section 179C of the Internal Revenue Code of 1986 (relating to qualified refinery) is amended to read as follows:
(d)For purposes of this section, the term qualified refinery
means any refinery located in the United States which is designed to serve the primary purpose of—
(1)processing liquid fuel—
(A)from crude oil or qualified fuels (as defined in section 45K(c)), or
(B)directly from shale or tar sands, or
(2)processing non-virgin lube oil from used, refined products (including used lube oil originally derived from crude oil or qualified fuels)..
(2)Definition of qualified refinery propertySubsection (c) of section 179C of such Code is amended by adding at the end the following new paragraph:
(4)Special rule for qualified refineries producing re-refined lubricating oilIn the case of a refinery described in subsection (d)(2)—
(A)paragraph (1)(B) shall be applied by substituting January 1, 2017
for January 1, 2014
, and
(B)paragraph (1)(F) shall be applied by substituting January 1, 2013
for January 1, 2010
each place it appears..
(b)
(1)Subsection (e) of section 179C of the Internal Revenue Code of 1986 is amended—
(A)by inserting virgin
before lube oil
in paragraph (1), and
(B)by inserting or other products from used refined products
after (as defined in section 45K(c))
in paragraph (2).
(2)Subsection (f) of section 179C of such Code is amended by inserting virgin
before lube oil facility
.
(c)The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.
2.Credit for production of re-refined lubricating oil
(a)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 adding at the end the following:
45R.Credit for production of re-refined lubricating oil
(a)For purposes of section 38, the re-refined lubricating oil production credit determined under this section for any taxable year is equal to 20 cents per gallon of qualified re-refined lubricating oil which is produced by the taxpayer during the taxable year.
(b)Qualified Re-Refined Lubricating Oil- For purposes of this section
(1)The term qualified re-refined lubricating oil
means a base oil which—
(A)meets the American Society of Testing and Materials standard for hydrocarbon lubricant base oils (ASTM D6074), and
(B)which is manufactured—
(i)at a qualified facility, and
(ii)from at least 95 percent used oil by a re-refining process which effectively removes physical and chemical impurities and spent and unspent additives.
(2)The term qualified facility
means a qualified refinery (as defined in section 179C(d)).
(3)Noncompliance with pollution control lawsFor purposes of paragraph (2), a facility that is not in material compliance with all applicable State and Federal pollution prevention, control, and permit requirements for any period of time during a taxable year shall not be a qualified facility during such period.
(c)In the case of a taxable year beginning in a calendar year after 2009, the 20 cents amount in subsection (a) shall be increased by an amount equal to—
(1)such amount, multiplied by
(2)the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting calendar year 2008
for calendar year 1992
in subparagraph (B) thereof..
(b)Credit Made Part of General Business CreditSection 38(b) of the Internal Revenue Code of 1986 is amended—
(1)by striking plus
at the end of paragraph (34),
(2)by striking the period at the end of paragraph (35) and inserting , plus
, and
(3)by adding at the end the following new paragraph:
(36)the re-refined lubricating oil production credit determined under section 45R(a)..
(c)The table of sections for subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following:
Sec. 45R. Credit for production of re-refined lubricating oil..
(d)The amendments made by this section shall apply to oil produced after the date of the enactment of this Act.