1.This Act may be cited as the
Grow a Renewable Energy Economy
Now—Jumpstart Other Biofuels Act of 2010
.
2.Allowance of
investment tax credit for certain cellulosic and algae-based biofuel
facilities
(a)Subsection (a) of
section 48 of the Internal Revenue Code of 1986 is amended by adding at the end
the following new paragraph:
(6)Election to
treat qualified cellulosic and algae-based biofuel facility as energy
property
(A)In the case of any
qualified property which is part of a qualified cellulosic and algae-based
biofuel facility—
(i)such property
shall be treated as energy property for purposes of this section, and
(ii)the energy
percentage with respect to such property shall be 30 percent.
(B)Denial of
production creditNo credit shall be allowed under section 40 for
any taxable year with respect to any qualified investment credit cellulosic and
algae-based biofuel facility.
(C)Qualified
investment credit cellulosic and algae-based biofuel facilityFor purposes of this paragraph, the term
qualified cellulosic and algae-based biofuel facility
means a
facility constructed with the primary purpose of the production of
transportation-grade qualified cellulosic biofuel production (as defined in
subparagraph (C) of section 40(b)(6)) or qualified algae-based biofuel
production (as defined in section (F) of such section) if no credit has been
allowed under section 40 with respect to such facility and the taxpayer makes
an irrevocable election to have this paragraph apply to such facility.
(D)No
election may be made under subparagraph (C) after December 31,
2016.
.
(b)Special
Allowance for Cellulosic Biofuel Plant Property
(1)Paragraphs (2)(D) and (5)(B) of section 168(l) of such Code
are each amended by striking January 1, 2013
and inserting
January 1, 2017
.
(2)Section 168(l)(8) of such Code is amended by
inserting or under section 48(a)(6)(C) (relating to election to treat
qualified cellulosic and algae-based biofuel facility as energy
property)
before the period at the end.
(c)Section 48(a)(3) of such Code is amended by striking
section 45
and inserting section 40 or 45
.
(d)The amendments made by this section shall apply to property
placed in service after the date of the enactment of this Act.
3.Inclusion of
algae-based biofuel in definition of cellulosic biofuel
(a)Cellulosic
biofuel producer credit
(1)Paragraph (4) of section 40(a) of the Internal Revenue Code
of 1986 is amended by inserting and algae-based
after
cellulosic
.
(2)Paragraph
(6) of section 40(b) of such Code is amended—
(A)by inserting
and
algae-based
after Cellulosic
in the
heading,
(B)by striking
subparagraph (A) and inserting the following:
(A)The cellulosic and algae-based biofuel producer credit of
any taxpayer is an amount equal to the applicable amount for each gallon
of—
(i)qualified
cellulosic biofuel production, and
(ii)qualified
algae-based biofuel
production.
,
(C)by redesignating
subparagraphs (F), (G), and (H) as subparagraphs (I), (J), and (K),
respectively,
(D)by inserting
and
algae-based
after cellulosic
in the
heading of subparagraph (I), as so redesignated,
(E)by inserting
or algae-based biofuel, whichever is appropriate,
after
cellulosic biofuel
in subparagraph (J), as so
redesignated,
(F)by inserting
and qualified algae-based biofuel production
after
qualified cellulosic biofuel production
in subparagraph (K), as
so redesignated, and
(G)by inserting after
subparagraph (E) the following new subparagraphs:
(F)Qualified
algae-based biofuel productionFor purposes of this section, the
term qualified algae-based biofuel production means any
algae-based biofuel which is produced by the taxpayer, and which during the
taxable year—
(i)is
sold by the taxpayer to another person—
(I)for use by such
other person in the production of a qualified algae-based biofuel mixture in
such other person's trade or business (other than casual off-farm
production),
(II)for use by such
other person as a fuel in a trade or business, or
(III)who sells such
algae-based biofuel at retail to another person and places such algae-based
biofuel in the fuel tank of such other person, or
(ii)is used or sold
by the taxpayer for any purpose described in clause (i).
The
qualified algae-based biofuel production of any taxpayer for any taxable year
shall not include any alcohol which is purchased by the taxpayer and with
respect to which such producer increases the proof of the alcohol by additional
distillation.(G)Qualified
algae-based biofuel mixtureFor purposes of this paragraph, the
term qualified algae-based biofuel mixture means a mixture of
algae-based biofuel and gasoline or of algae-based biofuel and a special fuel
which—
(i)is
sold by the person producing such mixture to any person for use as a fuel,
or
(ii)is used as a fuel
by the person producing such mixture.
(H)For purposes of this paragraph—
(i)The term algae-based biofuel means any
liquid fuel, including gasoline, diesel, aviation fuel, and ethanol,
which—
(I)is produced from
the biomass of algal organisms, and
(II)meets the
registration requirements for fuels and fuel additives established by the
Environmental Protection Agency under section 211 of the Clean Air Act (42
U.S.C. 7545).
(ii)The term algal organism means a single- or
multi-cellular organism which is primarily aquatic and classified as a
non-vascular plant, including microalgae, blue-green algae (cyanobacteria), and
macroalgae (seaweeds).
(iii)Exclusion of
low-proof alcoholSuch term shall not include any alcohol with a
proof of less than 150. The determination of the proof of any alcohol shall be
made without regard to any added
denaturants.
.
(3)
(A)Subparagraph (D)
of section 40(d)(3) of such Code is amended—
(i)by
inserting and
algae-based
after cellulosic
in the
heading,
(ii)by
inserting or (b)(6)(F)
after (b)(6)(C)
in clause
(ii), and
(iii)by
inserting or algae-based
after such
cellulosic
.
(B)Paragraph (6) of
section 40(d) of such Code is amended—
(i)by
inserting and
algae-based
after cellulosic
in the
heading, and
(ii)by
striking the first sentence and inserting No cellulosic and algae-based
biofuel producer credit shall be determined under subsection (a) with respect
to any cellulosic or algae-based biofuel unless such cellulosic or algae-based
biofuel is produced in the United States and used as a fuel in the United
States.
.
(C)Paragraph (3) of
section 40(e) of such Code is amended by inserting and algae-based
after
cellulosic
in the heading.
(D)Paragraph (1) of
section 4101(a) of such Code is amended—
(i)by
inserting or algae-based
after cellulosic
,
and
(ii)by
inserting and 40(b)(6)(H), respectively
after section
40(b)(6)(E)
.
(b)Special
allowance for cellulosic biofuel plant propertySubsection (l) of
section 168 of such Code is amended—
(1)by inserting
and
algae-based
after cellulosic
in the
heading,
(2)by inserting
and any qualified algae-based biofuel plant property
after
qualified cellulosic biofuel plant property
in paragraph
(1),
(3)by redesignating
paragraphs (4) through (8) as paragraphs (6) through (10), respectively,
(4)by inserting
or qualified algae-based biofuel plant property
after
cellulosic biofuel plant property
in paragraph (7)(C), as so
redesignated,
(5)by striking
with respect to
and all that follows in paragraph (9), as so
redesignated, and inserting with respect to any qualified cellulosic
biofuel plant property and any qualified algae-based biofuel plant property
which ceases to be such qualified property.
,
(6)by inserting
or qualified algae-based biofuel plant property
after
cellulosic biofuel plant property
in paragraph (10), as so
redesignated, and
(7)by inserting after
paragraph (3) the following new paragraphs:
(4)Qualified
algae-based biofuel plant propertyThe term qualified
algae-based biofuel plant property means property of a character subject
to the allowance for depreciation—
(A)which is used in
the United States solely to produce algae-based biofuel,
(B)the original use
of which commences with the taxpayer after the date of the enactment of this
paragraph,
(C)which is acquired
by the taxpayer by purchase (as defined in section 179(d)) after the date of
the enactment of this paragraph, but only if no written binding contract for
the acquisition was in effect on or before such date, and
(D)which is placed in
service by the taxpayer before January 1, 2017.
(5)
(A)The term algae-based biofuel means any
liquid fuel which is produced from the biomass of algal organisms.
(B)The term algal organism means a single- or
multi-cellular organism which is primarily aquatic and classified as a
non-vascular plant, including microalgae, blue-green algae (cyanobacteria), and
macroalgae
(seaweeds).
.
(c)
(1)Cellulosic
biofuel producer creditThe amendments made by subsection (a)
shall apply to fuel produced after the date of the enactment of this
Act.
(2)Special
allowance for cellulosic biofuel plant propertyThe amendments
made by subsection (b) shall apply to property purchased and placed in service
after the date of the enactment of this Act.
4.Crude tall oil
ineligible for cellulosic and algae-based biofuel producer credit
(a)Paragraph (6) of section 40(b) of the Internal Revenue
Code of 1986 is amended by redesignating subparagraphs (I), (J), and (K), as
designated by section 3(a)(2)(C) of this Act, as subparagraphs (J), (K), and
(L), respectively, and by inserting after subparagraph (H) the following new
subparagraph:
(I)Exclusion of
certain processed fuels with a high acid contentThe terms
cellulosic biofuel
and algae-based biofuel
shall
not include any processed fuel with an acid number greater than 25. For
purposes of the preceding sentence, the term processed fuel
means any fuel other than a fuel—
(i)more than 4
percent of which (determined by weight) is any combination of water and
sediment, or
(ii)the ash content
of which is more than 1 percent (determined by
weight).
.
(b)The amendment made by this section shall apply to fuels sold
or used on or after the date of the enactment of this Act.
5.Extension of
cellulosic and algae-based biofuel producer creditSubparagraph
(L) of section 40(b)(6) of the Internal Revenue Code of 1986, as amended by
sections 3 and 4 of this Act, is amended by striking January 1,
2013
and inserting January 1, 2017
.
6.Elective payment for
cellulosic and algae-based biofuel facility property
(a)Chapter 65 of the
Internal Revenue Code of 1986 (relating to abatements, credits, and refunds) is
amended by adding at the end the following new subchapter:
CDirect payment
provisions
Sec. 6451. Elective payment for cellulosic and algae-based
biofuel facility property.
6451.Elective
payment for cellulosic and algae-based biofuel facility property
(a)Any person making an
election under this section with respect to any specified cellulosic and
algae-based biofuel facility property originally placed in service by such
person during the taxable year shall be treated as making a payment, against
the tax imposed by subtitle A for the taxable year equal to 30 percent of the
basis of such property. Such payment shall be treated as made on the later of
the due date of the return of such tax or the date on which such return is
filed.
(b)Specified
cellulosic and algae-Based biofuel facility propertyFor purposes of this section, the term
specified cellulosic and algae-based biofuel facility property
means a qualified cellulosic and algae-based biofuel facility (as defined by
section 48(a)(6)(C) which—
(1)is property of a character subject to an
allowance for depreciation, and
(2)is originally
placed in service before January 1, 2017.
(c)Special rules
for certain non-Taxpayers
(1)Subsection (a) shall not apply with respect to any
property originally placed in service by—
(A)any governmental
entity,
(B)any organization
described in section 501(c) or 401(a) and exempt from tax under section 501(a),
or
(C)any entity
referred to in paragraph (4) of section 54(j), or
(D)any partnership or
other pass-thru entity any partner (or other holder of an equity or profits
interest) of which is described in paragraph (1), (2), or (3).
(2)Exception for
property used in unrelated trade or businessParagraph (1) shall not apply with respect
to any property originally placed in service by an entity described in section
511(a)(2) if substantially all of the income derived from such property by such
entity is unrelated business taxable income (as defined in section 512).
(3)Special rules
for partnerships and S corporationsIn the case of property
originally placed in service by a partnership or an S corporation—
(A)the election under
subsection (a) may be made only by such partnership or S corporation,
(B)such partnership
or S corporation shall be treated as making the payment referred to in
subsection (a) only to the extent of the proportionate share of such
partnership or S corporation as is owned by persons who would be treated as
making such payment if the property were originally placed in service by such
persons, and
(C)the return
required to be made by such partnership or S corporation under section 6031 or
6037 (as the case may be) shall be treated as a return of tax for purposes of
subsection (a).
For
purposes of subparagraph (B), rules similar to the rules of section 168(h)(6)
(other than subparagraph (F) thereof) shall apply.(d)Coordination
with production and investment creditsIn the case of any
property with respect to which an election is made under this section—
(1)Denial of
production and investment creditsNo credit shall be determined under section
40 or 48 with respect to such property for the taxable year in which such
property is originally placed in service or any subsequent taxable year.
(2)Reduction of
payment by progress expenditures already taken into accountThe
amount of the payment treated as made under subsection (a) with respect to such
property shall be reduced by the aggregate amount of credits determined under
section 48 with respect to such property for all taxable years preceding the
taxable year in which such property is originally placed in service.
(e)Other
definitions and special rulesFor purposes of this
section—
(1)Terms used in this section which are also used in
section 48 shall have the same meaning for purposes of this section as when
used in such section.
(2)Application of
recapture rules, etcExcept as otherwise provided by the
Secretary—
(A)Except as otherwise provided in this paragraph, rules
similar to the rules of section 50 shall apply.
(B)Exception to
limitation on real estate investment trusts, etcParagraph (1) of
section 50(d) shall not apply.
(3)A person shall
not be treated as having elected the application of this section unless the
taxpayer provides such information as the Secretary (in consultation with the
Secretary of Energy) may require for purposes of verifying the proper amount to
be treated as a payment under subsection (a) and evaluating the effectiveness
of this section.
(4)Exclusion from
gross incomeAny credit or refund allowed or made by reason of
this section shall not be includible in gross income or alternative minimum
taxable
income.
.
(b)
(1)Subparagraph (A)
of section 6211(b)(4)(A) of such Code is amended by inserting and
subchapter C of chapter 65 (including any payment treated as made under such
subchapter)
after 6431
.
(2)Subparagraph (B)
of section 6425(c)(1) of such Code is amended—
(A)by striking
the credits
and inserting
the
sum of—(i)the
credits
,
(B)by striking the
period at the end of clause (i) thereof (as amended by this paragraph) and
inserting , plus
, and
(C)by adding at the
end the following new clause:
(ii)the payments treated as made under
subchapter C of chapter
65.
.
(3)Paragraph (4) of
section 6654(f) of such Code is amended—
(A)by striking
the credits
and inserting
the
sum of—(A)the
credits
,
(B)by striking the
period at the end of subparagraph (A) thereof (as amended by this paragraph)
and inserting , and
, and
(C)by adding at the
end the following new subparagraph:
(B)the payments treated as made under
subchapter C of chapter
65.
.
(4)Subparagraph (B)
of section 6655(g)(1) of such Code is amended—
(A)by striking
the credits
and inserting
the
sum of—(i)the
credits
,
(B)by striking the
period at the end of clause (i) thereof (as amended by this paragraph) and
inserting , plus
, and
(C)by adding at the
end the following new clause:
(ii)the payments treated as made under
subchapter C of chapter
65.
.
(5)Paragraph (2) of
section 1324(b) of title 31, United States Code, is amended by inserting
, or from the provisions of subchapter C of chapter 65 of such
Code
before the period at the end.
(6)The table of
subchapters for chapter 65 of the Internal Revenue Code of 1986 is amended by
adding at the end the following new item:
Subchapter C. Direct payment
provisions.
.
(c)The amendments made by
this section shall apply to property originally placed in service after the
date of the enactment of this Act.