[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5343 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 5343

To amend the Internal Revenue Code of 1986 to provide an investment tax 
            credit for advanced biofuel production property.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 19, 2010

    Ms. Herseth Sandlin (for herself and Mr. Hodes) introduced the 
following bill; which was referred to the Committee on Ways and Means, 
 and in addition to the Committee on Energy and Commerce, for a period 
    to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide an investment tax 
            credit for advanced biofuel production property.

    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 ``Advanced Biofuel Investment Act of 
2010''.

SEC. 2. INVESTMENT TAX CREDIT FOR QUALIFIED ADVANCED BIOFUEL PRODUCTION 
              PROPERTY.

    (a) In General.--Subparagraph (A) of section 48(a)(3) of the 
Internal Revenue Code of 1986 (defining energy property) is amended by 
striking ``or'' at the end of clause (vi), by inserting ``or'' at the 
end of clause (vii), and by inserting after clause (vii) the following 
new clause:
                            ``(viii) qualified advanced biofuel 
                        production property,''.
    (b) 30 Percent Credit.--Clause (i) of section 48(a)(2)(A) of the 
Internal Revenue Code of 1986 is amended by striking ``and'' at the end 
of subclause (III) and by inserting after subclause (IV) the following 
new subclause:
                                    ``(V) qualified advanced biofuel 
                                production property, and''.
    (c) Definitions.--Subsection (c) of section 48 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(5) Qualified advanced biofuel production property.--
                    ``(A) In general.--The term `qualified advanced 
                biofuel production property' means property used in an 
                advanced biofuel project.
                    ``(B) Advanced biofuel project.--The term `advanced 
                biofuel project' means a project certified by the 
                Secretary of Energy as meeting the following 
                requirements:
                            ``(i) The property is used to produce 
                        advanced biofuel for sale to unrelated persons 
                        (within the meaning of section 45(e)(4)).
                            ``(ii) The project will rely primarily on 
                        new or significantly improved technologies as 
                        compared to commercial technologies currently 
                        in service in the United States and used to 
                        produce advanced biofuel.
                            ``(iii) Such other requirements as the 
                        Secretary of Energy, not later than 120 days 
                        after the date of the Advanced Biofuel 
                        Investment Act of 2010, may by regulation 
                        prescribe to the extent necessary to carry out 
                        the purposes of this section, including 
                        encouraging private investment in projects 
                        which provide the greatest net impact in 
                        avoiding or reducing air pollutants or 
                        anthropogenic emissions of greenhouse gases, 
                        have the greatest readiness for commercial 
                        employment, replication, and further commercial 
                        use in the United States, and will introduce 
                        new technologies and fuel production processes 
                        in the commercial market.
                    ``(C) Advanced biofuel.--The term `advanced 
                biofuel' means fuel that--
                            ``(i) meets the definition of advanced 
                        biofuel in section 9001(3) of the Farm Security 
                        and Rural Investment Act of 2002, and
                            ``(ii) has lifecycle greenhouse gas 
                        emissions that are at least 50 percent less 
                        than baseline lifecycle greenhouse gas 
                        emissions, as required under section 
                        211(o)(1)(B)(i) of the Clean Air Act.
                    ``(D) Termination.--The term `qualified advanced 
                biofuel production property' shall not include any 
                property placed in service after December 31, 2015.''.
    (d) Grants in Lieu of Tax Credit.--
            (1) In general.--Section 1603(d) of the American Recovery 
        and Reinvestment Tax Act of 2009 is amended by inserting after 
        paragraph (8) the following new paragraph:
            ``(9) Qualified advanced biofuel production property.--Any 
        property described in clause (viii) of section 48(a)(3)(A).''.
            (2) Applicable percentage.--Section 1603(b)(2)(A) of such 
        Act is amended by inserting ``and (9)'' after ``through (4)''.
    (e) Grant Includible in Income.--Section 48(d)(3) of the Internal 
Revenue Code of 1986 is amended by striking ``Any such grant'' and 
inserting ``Except for a grant for specified energy property described 
in subsection (d)(9) of such section 1603, any such grant''.
    (f) Effective Date.--The amendments made by this section shall 
apply to periods after the date of the enactment of this Act, in 
taxable years ending after such date, under rules similar to the rules 
of section 48(m) of the Internal Revenue Code of 1986 (as in effect on 
the day before the date of the enactment of the Revenue Reconciliation 
Act of 1990).
                                 <all>