[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 871 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                 S. 871

          To repeal the Volumetric Ethanol Excise Tax Credit.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 3, 2011

   Mr. Coburn (for himself, Mrs. Feinstein, Mr. Webb, Mr. Burr, Ms. 
  Collins, Mr. Cardin, and Mr. Risch) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
          To repeal the Volumetric Ethanol Excise Tax Credit.

    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 ``Ethanol Subsidy and Tariff Repeal 
Act''.

SEC. 2. REPEAL OF VEETC.

    (a) Elimination of Excise Tax Credit or Payment.--
            (1) Section 6426(b)(6) of the Internal Revenue Code of 1986 
        is amended by striking ``December 31, 2011'' and inserting 
        ``the later of June 30, 2011, or the date of the enactment of 
        the Ethanol Subsidy and Tariff Repeal Act)''.
            (2) Section 6427(e)(6)(A) of such Code is amended by 
        striking ``December 31, 2011'' and inserting ``the later of 
        June 30, 2011, or the date of the enactment the Ethanol Subsidy 
        and Tariff Repeal Act''.
    (b) Elimination of Income Tax Credit.--The table contained in 
section 40(h)(2) of the Internal Revenue Code of 1986 is amended--
            (1) by striking ``2011'' and inserting ``the later of June 
        30, 2011, or the date of the enactment of the Ethanol Subsidy 
        and Tariff Repeal Act'', and
            (2) by adding at the end the following:


``After such date..............  zero                 zero''.
 

    (c) Repeal of Deadwood.--
            (1) Section 40(h) of the Internal Revenue Code of 1986 is 
        amended by striking paragraph (3).
            (2) Section 6426(b)(2) of such Code is amended by striking 
        subparagraph (C).
    (d) Effective Date.--The amendments made by this section shall 
apply to any sale, use, or removal for any period after the later of 
June 30, 2011, or the date of the enactment of the Act.

SEC. 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 XXIII
                                                Alternative Fuels
----------------------------------------------------------------------------------------------------------------
                                                                        Rates of Duty
                                           ---------------------------------------------------------------------
Heading/Subheading    Article Description                         1
                                           -----------------------------------------------           2
                                                    General                Special
----------------------------------------------------------------------------------------------------------------
9823.01.01          Ethyl alcohol           Free                    Free                   20%''.
                     (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
                     uses.................
----------------------------------------------------------------------------------------------------------------

    (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 later of June 30, 2011, or the date of the enactment of this Act.
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