I 

110TH CONGRESS 

1ST SESSION H. R. 2256 

To amend the Internal Revenue Code of 1986 to allow a credit against 

income tax for the use of ethanol in tetra ethyl ortho silicate (TEOS) 

production. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 9, 2007 

Mr. WALBERG 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 allow a 

credit against income tax for the use of ethanol in tetra 

ethyl ortho silicate (TEOS) production. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘American Commercial 

5 Ethanol Fairness Act of 2007’’. 


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1 SEC. 2. CREDIT FOR USE OF ETHANOL IN TEOS PRODUC2 TION. 

3 (a) IN GENERAL.—Section 40 of the Internal Rev4 enue Code of 1986 (relating to alcohol used as fuel) is 

5 amended— 

6 (1) in paragraph (3) of subsection (a) by strik7 ing the period and inserting ‘‘, plus’’ and by adding 

8 at the end of subsection (a) the following new para9 graph: 

10 ‘‘(4) the ethanol in TEOS production credit.’’, 

11 (2) in subsection (b)— 

12 (A) in the heading by striking ‘‘AND

13 SMALL ETHANOL PRODUCER CREDIT’’ and in14 serting ‘‘SMALL ETHANOL PRODUCER CREDIT, 

15 AND ETHANOL IN TEOS PRODUCTION CRED16 IT’’, and 

17 (B) by adding at the end the following new 

18 paragraph: 

19 ‘‘(6) ETHANOL IN TEOS PRODUCTION CRED20 IT.— 

21 ‘‘(A) IN GENERAL.—The ethanol in TEOS 

22 production credit for any taxable year is 51 

23 cents for each gallon of alcohol which is ethanol 

24 that is used by the taxpayer in the production 

25 of tetra ethyl ortho silicate (TEOS) which is 


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1 sold by the taxpayer producing such chemical to 

2 any person during such taxable year. 

3 ‘‘(B) SALE MUST BE IN TRADE OR BUSI4 NESS, ETC.—Alcohol used in the production of 

5 tetra ethyl ortho silicate (TEOS) shall be taken 

6 into account— 

7 ‘‘(i) only if the sale described in sub8 paragraph (A) is in a trade or business of 

9 the taxpayer, and 

10 ‘‘(ii) for the taxable year in which 

11 such sale occurs. 

12 ‘‘(C) SMALL CREDIT FOR LOWER PROOF

13 ETHANOL.—In the case of any alcohol with a 

14 proof which is at least 150 but less than 190, 

15 subparagraph (A) shall be applied by sub16 stituting ‘37.78 cents’ for ‘51 cents’. 

17 ‘‘(D) DENIAL OF DOUBLE BENEFIT.—In 

18 determining the amount of the credit described 

19 in this paragraph, a taxpayer shall not take 

20 into account any amount of alcohol that is 

21 taken into account in determining the amount 

22 of a credit described in paragraph (1), (2), or 

23 (4).’’, 

24 (3) in subsection (d)(3)(A)(i), by inserting 

25 ‘‘other than the ethanol in TEOS production credit 


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1 described in subsection (b)(6)’’ after ‘‘any credit’’, 

2 and 

3 (4) in subsection (d)(3)(B)(i), by inserting 

4 ‘‘other than the ethanol in TEOS production credit 

5 described in subsection (b)(6)’’ after ‘‘any credit’’. 

6 (b) EFFECTIVE DATE.—The amendments made by 

7 this section shall apply to tetra ethyl ortho silicate 

8 (TEOS) sold in taxable years beginning after December 

9 31, 2007. 

Æ 


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