[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6943 Introduced in House (IH)]
110th CONGRESS
2d Session
H. R. 6943
To amend the Internal Revenue Code of 1986 to provide for a credit for
algae derived fuels, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 18, 2008
Mr. Bilbray (for himself, Mr. Kennedy, Mr. Bartlett of Maryland, Mr.
Issa, Mr. Hunter, and Mrs. Bono Mack) 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 for a credit for
algae derived fuels, 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. ALGAE DERIVED FUEL CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 40A the following new section:
``SEC. 40B. ALGAE DERIVED FUEL CREDIT.
``(a) General Rule.--For purposes of section 38, the algae derived
fuel credit determined under this section for the taxable year is an
amount equal to the product of $1.50 and the gallons of algae derived
fuel--
``(1) produced by the taxpayer and sold at retail for use
as a fuel or used during the taxable year by the taxpayer in a
trade or business, or
``(2) used by the taxpayer in the production of a mixture
with another fuel and sold for use as a fuel or used by the
taxpayer during the taxable year for use as a fuel in a trade
or business.
``(b) Coordination With Credit Against Excise Tax.--The amount of
the credit determined under this section with respect to any algae
derived fuel shall be properly reduced to take into account any benefit
provided with respect to such algae derived fuel solely by reason of
the application of section 6426 or 6427(e).
``(c) Definition of Algae Derived Fuel.--For purposes of this
section--
``(1) The term `algae derived fuel' means a liquid
hydrocarbon product that is substantially similar to current
commercial fuels derived from petroleum and is derived from the
biomass of algal organisms. Such term shall not include any
liquid with respect to which a credit may be determined under
section 40 or 40A.
``(2) The term `algal organisms' means single or multi-
cellular organisms which are inherently photosynthetic and
aquatic.
``(d) Mixture or Algae Derived Fuel Not Used as a Fuel, etc.--For
purposes of this section, rules similar to the rules of paragraphs (3)
and (4) of section 40A(d) shall apply.
``(e) Termination.--This section shall not apply to any sale or use
after December 31, 2012.''.
(b) Credit Treated as Part of General Business Credit.--Section
38(b) of such Code is amended by striking ``plus'' at the end of
paragraph (32), by striking the period at the end of paragraph (33) and
inserting ``, plus'', and by inserting after paragraph (33) the
following new paragraph:
``(34) the biodiesel fuels credit determined under section
40B(a).''.
(c) Credit Included in Income.--Section 87 of such Code is amended
by striking ``and'' at the end of paragraph (1), by striking the period
at the end of paragraph (2) and inserting ``, and'', and by inserting
after paragraph (2) the following new paragraph:
``(3) the algae derived fuels credit determined with
respect to the taxpayer for the taxable year under section
40B(a).''.
(d) Deduction for Unused Credit.--Section 196(c) of such Code is
amended by striking ``and'' at the end of paragraph (12), by striking
the period at the end of paragraph (13) and inserting ``, and'', and by
adding at the end the following new paragraph:
``(14) the algae derived fuels credit determined under
section 40B(a).''.
(e) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such Code is amended by
inserting after the item relating to section 40A the following new
item:
``Sec. 40B. Algae derived fuel credit.''.
(f) Effective Date.--The amendments made by this section shall
apply to fuels sold or used in taxable years beginning after the date
of the enactment of this Act.
SEC. 2. EXCISE TAX CREDIT PARITY FOR ALGAE DERIVED FUEL.
(a) Allowance of Credit.--Paragraph (1) of section 6426(a) of the
Internal Revenue Code of 1986 is amended by striking ``and (e)'' and
inserting ``(e), and (f)''.
(b) Algae Derived Fuel Mixture Credit.--Section 6426 of the
Internal Revenue Code of 1986 is amended by redesignating subsections
(f), (g), and (h) as subsections (g), (h), and (i), respectively, and
by inserting after subsection (e) the following new subsection:
``(f) Algae Derived Fuel Mixture Credit.--
``(1) In general.--For purposes of this section, the algae
derived fuel credit is the product of $1.50 and the number of
gallons--
``(A) of algae derived fuel produced by the
taxpayer and sold at retail for use as a fuel or used
by the taxpayer in a trade or business of the taxpayer,
and
``(B) of algae derived fuel used by the taxpayer in
producing any mixture of such fuel with any other fuel
subsequently sold for use as a fuel or used by the
taxpayer for use as a fuel in a trade or business of
the taxpayer.
``(2) Algae derived fuel.--For the purposes of this
section, the term `algae derived fuel' shall have the same
meaning given such term in section 40B.
``(3) Termination.--This subsection shall not apply to any
sale or use after December 31, 2012.''.
(c) Effective Date.--The amendments made by this section shall
apply to fuels sold or used for any period after the date of the
enactment of this Act.
SEC. 3. PARITY REGARDING PAYMENTS FOR FUEL MIXTURE.
(a) In General.--Paragraph (1) of section 6427(e) of the Internal
Revenue Code of 1986 is amended by inserting ``or algae derived fuel
mixture credit'' after ``alternative fuel mixture credit''.
(b) Termination.--Paragraph (5) of section 6427(e) of such Code is
amended by striking ``and'' at the end of subparagraph (C), by striking
the period at the end of subparagraph (D) and inserting ``, and'', by
inserting after subparagraph (D) the following new subparagraph:
``(E) any algae based fuel mixture sold or used
after December 31, 2012.''.
(c) Conforming Amendment.--The heading for section 6427(e) of such
Code is amended by striking ``and Biodiesel Mixtures'' and inserting
``, Biodiesel Mixtures, and Algae Derived Mixtures''.
(d) Effective Date.--The amendments made by this section shall
apply to fuels sold or used for any period after the date of the
enactment of this Act.
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