[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 530 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                 S. 530

   To modify certain subsidies for ethanol production, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 9, 2011

  Mrs. Feinstein (for herself and Mr. Webb) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
   To modify certain subsidies for ethanol production, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. ETHANOL ELIGIBLE FOR BLENDER INCOME TAX AND FUEL EXCISE TAX 
              CREDITS.

    (a) Income Tax Credit.--Section 40(h) of the Internal Revenue Code 
of 1986 is amended by adding at the end the following new paragraph:
            ``(4) Ethanol eligible for credit.--In the case of any sale 
        or use for any period after June 30, 2011, this subsection 
        shall apply only to ethanol which qualifies as an advanced 
        biofuel (as defined in section 211(o)(1)(B) of the Clean Air 
        Act (42 U.S.C. 7545(o)(1)(B))).''.
    (b) Excise Tax Credit.--Section 6426(b) of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(7) Ethanol eligible for credit.--In the case of any 
        sale, use, or removal for any period after June 30, 2011, no 
        credit shall be determined under this subsection with respect 
        to an alcohol fuel mixture in which any of the alcohol consists 
        of ethanol unless the ethanol qualifies as an advanced biofuel 
        (as defined in section 211(o)(1)(B) of the Clean Air Act (42 
        U.S.C. 7545(o)(1)(B))).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to any sale, use, or removal for any period after June 30, 2011.

SEC. 2. ETHANOL TARIFF-TAX PARITY.

    Not later than 30 days after the date of the enactment of this Act, 
and semiannually thereafter, the President shall reduce the temporary 
duty imposed on ethanol under subheading 9901.00.50 of the Harmonized 
Tariff Schedule of the United States by an amount equal to the 
reduction in any Federal income or excise tax credit under section 
40(h), 6426(b), or 6427(e)(1) of the Internal Revenue Code of 1986 and 
take any other action necessary to ensure that the combined temporary 
duty imposed on ethanol under such subheading 9901.00.50 and any other 
duty imposed under the Harmonized Tariff Schedule of the United States 
is equal to, or lower than, any Federal income or excise tax credit 
applicable to ethanol under the Internal Revenue Code of 1986.
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