I 112th CONGRESS 1st Session H. R. 2307 IN THE HOUSE OF REPRESENTATIVES June 23, 2011 Mr. Herger (for himself, Mr. Crowley, Mr. Sam Johnson of Texas, Mr. Stark, Mr. Nunes, Mr. Blumenauer, Mr. Flake, Mr. Costa, Mrs. Bono Mack, Mr. Larsen of Washington, Mr. Goodlatte, Mr. Matheson, Mr. Lance, Mr. Welch, and Mr. Womack) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To repeal the tax credits for ethanol blenders, to repeal the tariff on imported ethanol, and for other purposes.

1.

Short title

This Act may be cited as the Ethanol Subsidy Repeal Act.

2.

Repeal of tax subsidies for ethanol blenders

(a)

Income tax credit

Subsection (h) of section 40 of the Internal Revenue Code of 1986 is amended to read as follows: (h)

Repeal of credit for ethanol blenders

In the case of any alcohol mixture credit or alcohol credit with respect to any sale or use of alcohol which is ethanol— (1)subsections (b)(1)(A), (b)(2)(A), (d)(3)(A), and (d)(3)(B) shall each be applied by substituting 0 cents for 60 cents, and (2)subsections (b)(3), (d)(3)(A), and (d)(3)(B) shall each be applied by substituting 0 cents for 45 cents. . (b)

Excise tax credit

(1)

In general

Subparagraph (A) of section 6426(b)(4) of such Code (as in effect prior to redesignation by paragraph (2)) is amended— (A)by striking and ethanol in the matter preceding clause (i), (B)by striking or at the end of clause (i), (C)by striking the period at the end of clause (ii) and inserting , or, and (D)by inserting after clause (ii) the following new clause: (iii)ethanol. . (2)

Conforming amendments

Subsection (b) of section 6426 of such Code is amended— (A)by striking the applicable amount and in paragraph (1) and inserting 60 cents multiplied by, (B)by striking paragraph (2), and (C)by redesignating paragraphs (3) through (6) as paragraphs (2) through (5), respectively. (c)

Effective date

The amendments made by this section shall apply to fuel produced, and sold or used, after the date of the enactment of this Act.

3.

Removal of tariffs on ethanol

(a)

Duty-Free treatment

Chapter 98 of the Harmonized Tariff Schedule of the United States is amended by adding at the end the following new subchapter: Subchapter XXIIIAlternative Fuels Heading/SubheadingArticle Description Rates of Duty 1 2 GeneralSpecial 9823.01.01Ethyl alcohol (provided for in subheadings 2207.10.60 and 2207.20) or any mixture containing such ethyl alcohol (provided for in heading 2710 or 3824) if such ethyl alcohol or mixture is to be used as a fuel or in producing a mixture of gasoline and alcohol, a mixture of a special fuel and alcohol, or any other mixture to be used as fuel (including motor fuel provided for in subheading 2710.11.15, 2710.19.15 or 2710.19.21), or is suitable for any such usesFreeFree20% . (b)

Conforming amendments

Subchapter I of chapter 99 of the Harmonized Tariff Schedule of the United States is amended— (1)by striking heading 9901.00.50; and (2)by striking U.S. notes 2 and 3. (c)

Effective date

The amendments made by this section apply to goods entered, or withdrawn from warehouse for consumption, on or after the date of the enactment of this Act.