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).