[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4953 Introduced in House (IH)]
112th CONGRESS
2d Session
H. R. 4953
To amend the Internal Revenue Code of 1986 to provide a credit for the
production of renewable chemicals.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 26, 2012
Mr. Pascrell (for himself and Mr. Bilbray) introduced the following
bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide a credit for the
production of renewable chemicals.
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 ``Qualifying Renewable Chemical
Production Tax Credit Act of 2012''.
SEC. 2. CREDIT FOR THE PRODUCTION OF RENEWABLE CHEMICALS.
(a) In General.--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 new section:
``SEC. 45S. CREDIT FOR PRODUCTION OF RENEWABLE CHEMICALS.
``(a) In General.--For purposes of section 46, the renewable
chemicals production credit for any taxable year is an amount
(determined separately for each renewable chemical produced by the
taxpayer) equal to $0.15 per pound of eligible content of renewable
chemical produced by the taxpayer during the taxable year.
``(b) Limitation.--The credit determined under subsection (a) with
respect to any renewable chemical produced by any taxpayer during any
taxable year shall not exceed the credit amount allocated by the
Secretary to the taxpayer with respect to such chemical for such
taxable year under subsection (e).
``(c) Eligible Content.--For purposes of this section--
``(1) In general.--The term `eligible content' means, with
respect to any renewable chemical, the biobased content
percentage of the total mass of organic carbon in such
chemical.
``(2) Biobased content percentage.--The term `biobased
content percentage' means, with respect to any renewable
chemical, the biobased content of such chemical (expressed as a
percentage) determined by testing representative samples using
the American Society for Testing and Materials (ASTM) D6866.
``(d) Renewable Chemical.--For purposes of this section--
``(1) In general.--The term `renewable chemical' means any
chemical which--
``(A) is produced by the taxpayer in the United
States (or in a territory or possession of the United
States) from renewable biomass,
``(B) is sold, or used, by the taxpayer--
``(i) for the production of polymers,
plastics, or formulated products, or
``(ii) as polymers, plastics, or formulated
products, and
``(C) is not sold or used for the production of any
food, feed, or fuel.
``(2) Exceptions.--Such term shall not include any chemical
if--
``(A) the biobased content percentage of such
chemical is less than 25 percent,
``(B) 10,000,000 pounds or more of such chemical
was produced during calendar year 2000 from renewable
biomass,
``(C) such chemical is not either the product of,
or reliant upon, biological conversion, thermal
conversion, or a combination of biological and thermal
conversion, of renewable biomass, or
``(D) such chemical is composed of renewable
chemicals that are eligible for a credit under this
section.
``(3) Renewable biomass.--The term `renewable biomass' has
the meaning given such term in section 9001(12) of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C. 8101(12)).
``(e) Allocation of Credit Amounts.--
``(1) In general.--Not later than 180 days after enactment
of this section, the Secretary, in consultation with the
Secretary of Agriculture, shall establish a program to allocate
credit amounts under this section to applicants for taxable
years.
``(2) Limitations.--
``(A) Aggregate limitation.--The total amount of
credits that may be allocated under such program shall
not exceed $500,000,000.
``(B) Taxpayer limitation.--The amount of credits
that may be allocated to any taxpayer for any taxable
year under such program shall not exceed $25,000,000.
For purposes of the preceding sentence, all persons
treated as a single employer under subsection (a) or
(b) of section 52, or subsection (m) or (o) of section
414, shall be treated as one person.
``(3) Selection criteria.--In determining which taxpayers
to make allocations of credit amount under this section, the
Secretary shall take into consideration--
``(A) the number of jobs created and maintained
(directly and indirectly) in the United States
(including territories and possessions of the United
States) as result of such allocation during the credit
period and thereafter,
``(B) the degree to which the production of the
renewable chemical demonstrates reduced dependence on
imported feedstocks, petroleum, non-renewable
resources, or other fossil fuels,
``(C) the technological innovation involved in the
production method of the renewable chemical,
``(D) the energy efficiency and reduction in
lifecycle greenhouse gases of the renewable chemical or
of the production method of the renewable chemical, and
``(E) whether there is a reasonable expectation of
commercial viability.
``(4) Redistribution.--If a credit amount allocated to a
taxpayer for a taxable year with respect to any renewable
chemical (determined without regard to this paragraph) exceeds
the amount of the credit with respect to such chemical
determined under this section on the taxpayer's return for such
taxable year (determined by treating the amount of any payment
under subsection (f) as shown on the taxpayer's return)--
``(A) the credit amount allocated to such taxpayer
for such taxable year with respect to such renewable
chemical shall be treated as being the amount so
determined on the taxpayer's return, and
``(B) such excess may be reallocated by the
Secretary consistent with the requirements of
paragraphs (2)(B) and (3).
``(5) Disclosure of allocations.--The Secretary shall, upon
making an allocation of credit amount under this section,
publicly disclose the identity of the applicant and the amount
of the credit with respect to such applicant.
``(f) Termination.--Notwithstanding any other provision of this
section, the Secretary may not allocate any credit amount under this
section to any taxable year which begins more than 5 years after the
date of the enactment of this section.''.
(b) Credit To Be Part of General Business Credit.--
(1) In general.--Subsection (b) of section 38 of such Code
is amended by striking ``plus'' at the end of paragraph (35),
by striking the period at the end of paragraph (36) and
inserting ``, plus'', and by adding at the end the following
new paragraph:
``(37) the renewable chemicals production credit determined
under section 45S(a).''.
(2) Credit allowable against alternative minimum tax.--
Subparagraph (B) of section 38(c)(4) of such Code is amended by
redesignating clauses (vii) through (ix) as clauses (viii)
through (x), respectively, and by inserting after clause (vi)
the following new clause:
``(vii) the credit determined under section
45S,''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such Code is amended by adding
at the end the following new item:
``Sec. 45S. Credit for production of renewable chemicals.''.
(d) Effective Date.--The amendments made by this section shall
apply to chemicals produced after the date of the enactment of this
Act, in taxable years ending after such date.
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