A bill to amend the Internal Revenue Code of 1986 to provide an investment tax credit for advanced biofuel production property.

Summary: Advanced Biofuel Investment Act of 2010 - Amends the Internal Revenue Code to allow a 30% energy tax credit for investment in qualified advanced biofuel production property. Defines "qualified advanced biofuel production property" as property used exclusively to produce advanced biofuels for sale to unrelated persons. Terminates such credit after 2014.

Amends the American Recovery and Reinvestment Tax Act of 2009 to allow investors in advanced biofuel production property a grant in lieu of a tax credit for investment in such property. Requires grant recipients to reinvest in advanced biofuel production property within 12 months after receipt of a grant payment.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Advanced Biofuel Investment Act of 
2010''.

SEC. 2. INVESTMENT TAX CREDIT FOR QUALIFIED ADVANCED BIOFUEL PRODUCTION 
              PROPERTY.

    (a) In General.--Subparagraph (A) of section 48(a)(3) of the 
Internal Revenue Code of 1986 (defining energy property) is amended by 
striking ``or'' at the end of clause (vi), by inserting ``or'' at the 
end of clause (vii), and by inserting after clause (vii) the following 
new clause:
                            ``(viii) qualified advanced biofuel 
                        production property,''.
    (b) 30 Percent Credit.--Clause (i) of section 48(a)(2)(A) of the 
Internal Revenue Code of 1986 is amended by striking ``and'' at the end 
of subclause (III) and by inserting after subclause (IV) the following 
new subclause:
                                    ``(V) qualified advanced biofuel 
                                production property, and''.
    (c) Definitions.--Subsection (c) of section 48 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(5) Qualified advanced biofuel production property.--
                    ``(A) In general.--The term `qualified advanced 
                biofuel production property' means property used in an 
                advanced biofuel project.
                    ``(B) Advanced biofuel project.--
                            ``(i) In general.--The term `advanced 
                        biofuel project' means a project certified by 
                        the Secretary of Energy as meeting the 
                        following requirements:
                                    ``(I) The sole and exclusive 
                                purpose of the project is to produce 
                                advanced biofuels for sale to unrelated 
                                persons (within the meaning of section 
                                45(e)(4)).
                                    ``(II) The advanced biofuels 
                                produced will meet the requirements of 
                                section 211(o)(1)(B) of the Clean Air 
                                Act (42 U.S.C. 7545(o)(1)(B)).
                                    ``(III) The project will rely 
                                primarily on new or significantly 
                                improved technologies as compared to 
                                commercial technologies currently in 
                                service in the United States and used 
                                to produce advanced biofuels.
                                    ``(IV) Such other requirements as 
                                the Secretary of Energy by rule or 
                                regulation deems necessary to carry out 
                                the objectives of this section, 
                                including encouraging private 
                                investment in projects which provide 
                                the greatest net impact in avoiding or 
                                reducing air pollutants or 
                                anthropogenic emissions of greenhouse 
                                gases, have the greatest readiness for 
                                commercial employment, replication, and 
                                further commercial use in the United 
                                States, and will introduce new 
                                technologies and fuel production 
                                processes in the commercial market.
                            ``(ii) Rule or regulation.--Rules or 
                        regulations issued by the Secretary of Energy 
                        under this subparagraph shall be issued not 
                        later than 120 days after the date of the 
                        enactment of this section.
                    ``(C) Termination.--The term `qualified advanced 
                biofuel production property' shall not include any 
                property placed in service after December 31, 2014.''.
    (d) Grants in Lieu of Tax Credit.--
            (1) In general.--Section 1603(d) of the American Recovery 
        and Reinvestment Tax Act of 2009 is amended by inserting after 
        paragraph (8) the following new paragraph:
            ``(9) Qualified advanced biofuel production property.--Any 
        property described in clause (viii) of section 48(a)(3)(A).''.
            (2) Applicable percentage.--Section 1603(b)(2)(A) of such 
        Act is amended by inserting ``and (9)'' after ``through (4)''.
            (3) Reinvestment of grant.--Section 1603 of such Act is 
        amended by redesignating subsections (i) and (j) as subsections 
        (j) and (k), respectively, and by inserting after subsection 
        (h) the following new subsection:
    ``(i) Reinvestment of Certain Grants.--No grant for specified 
energy property described in subsection (d)(9) shall be made under 
subsection (a) unless the grant applicant certifies in the application 
that such payment shall be reinvested in such property not later than 
12 months after the date of such payment.''.
    (e) Grant Includible in Income.--Section 48(d)(3) of the Internal 
Revenue Code of 1986 is amended by striking ``Any such grant'' and 
inserting ``Except for a grant for specified energy property described 
in subsection (d)(9) of such section 1603, any such grant''.
    (f) Effective Date.--The amendments made by this section shall 
apply to periods after the date of the enactment of this Act, in 
taxable years ending after such date, under rules similar to the rules 
of section 48(m) of the Internal Revenue Code of 1986 (as in effect on 
the day before the date of the enactment of the Revenue Reconciliation 
Act of 1990).