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 oilFor 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.