II 

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. 

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 ‘‘Ethanol Subsidy and 

5 Tariff Repeal Act’’. 

6 SEC. 2. REPEAL OF VEETC. 

7 (a) ELIMINATION OF EXCISE TAX CREDIT OR PAY8 MENT.— 

9 (1) Section 6426(b)(6) of the Internal Revenue 

10 Code of 1986 is amended by striking ‘‘December 31, 

11 2011’’ and inserting ‘‘the later of June 30, 2011, or 


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•S 871 IS

1 the date of the enactment of the Ethanol Subsidy 

2 and Tariff Repeal Act)’’. 

3 (2) Section 6427(e)(6)(A) of such Code is 

4 amended by striking ‘‘December 31, 2011’’ and in5 serting ‘‘the later of June 30, 2011, or the date of 

6 the enactment the Ethanol Subsidy and Tariff Re7 peal Act’’. 

8 (b) ELIMINATION OF INCOME TAX CREDIT.—The 

9 table contained in section 40(h)(2) of the Internal Rev10 enue Code of 1986 is amended— 

11 (1) by striking ‘‘2011’’ and inserting ‘‘the later 

12 of June 30, 2011, or the date of the enactment of 

13 the Ethanol Subsidy and Tariff Repeal Act’’, and 

14 (2) by adding at the end the following: 

‘‘After such date ........................................ zero zero’’. 

15 (c) REPEAL OF DEADWOOD.— 

16 (1) Section 40(h) of the Internal Revenue Code 

17 of 1986 is amended by striking paragraph (3). 

18 (2) Section 6426(b)(2) of such Code is amend19 ed by striking subparagraph (C). 

20 (d) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply to any sale, use, or removal for 

22 any period after the later of June 30, 2011, or the date 

23 of the enactment of the Act. 


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•S 871 IS

1 SEC. 3. REMOVAL OF TARIFFS ON ETHANOL. 

2 (a) DUTY-FREE TREATMENT.—Chapter 98 of the 

3 Harmonized Tariff Schedule of the United States is 

4 amended by adding at the end the following new sub5 chapter: 

‘‘Subchapter XXIII 

Alternative Fuels 

Heading/ 

Subheading 

Article Description 

Rates of Duty 

1 

2 

General Special 

9823.01.01 Ethyl alcohol (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 .............................................................. Free Free 20%’’. 

6 (b) CONFORMING AMENDMENTS.—Subchapter I of 

7 chapter 99 of the Harmonized Tariff Schedule of the 

8 United States is amended— 

9 (1) by striking heading 9901.00.50; and 

10 (2) by striking U.S. notes 2 and 3. 

11 (c) EFFECTIVE DATE.—The amendments made by 

12 this section apply to goods entered, or withdrawn from 

13 warehouse for consumption, on or after the later of June 

14 30, 2011, or the date of the enactment of this Act. 

Æ 


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