I 

110TH CONGRESS 

2D SESSION H. R. 5713 

To amend the Internal Revenue Code of 1986 to clarify the eligibility for 

certain fuels credits for fuel with insufficient nexus to the United States. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 4, 2008 

Mr. SHADEGG 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 clarify 

the eligibility for certain fuels credits for fuel with insufficient nexus to the United States. 

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 ‘‘Splash and Dash Cor5 rection Act of 2008’’. 

6 SEC. 2. STATEMENT OF CONSTITUTIONAL AUTHORITY. 

7 The Congress enacts this Act pursuant to clause 1 

8 of section 8 of Article I of the United States Constitution 

9 and Amendment XVI of the United States Constitution. 


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1 SEC. 3. CLARIFICATION OF ELIGIBILITY FOR CERTAIN 

2 FUELS CREDITS FOR FUEL WITH INSUFFI3 CIENT NEXUS TO THE UNITED STATES. 

4 (a) IN GENERAL.— 

5 (1) ALCOHOL CREDIT.—Subsection (d) of sec6 tion 40 of the Internal Revenue Code of 1986 is 

7 amended by adding at the end the following new 

8 paragraph: 

9 ‘‘(6) LIMITATION TO ALCOHOL WITH CONNEC10 TION TO THE UNITED STATES.— 

11 ‘‘(A) ALCOHOL CREDIT.—No alcohol credit 

12 shall be determined under this section with re13 spect to any alcohol unless such alcohol is pro14 duced in the United States for consumption in 

15 the United States or entered into the United 

16 States for consumption in the United States. 

17 ‘‘(B) ALCOHOL MIXTURE CREDIT.—No al18 cohol mixture credit shall be determined under 

19 this section with respect to any mixture unless 

20 such mixture is produced in the United States 

21 for consumption in the United States or entered 

22 into the United States for consumption in the 

23 United States. 

24 ‘‘(C) NO CREDITS FOR ALCOHOL DES25 TINED FOR EXPORT.—No credit (other than the 

26 small ethanol producer credit) shall be deterVerDate Aug 31 2005 23:29 Apr 04, 2008 Jkt 069200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5713.IH H5713

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1 mined under this section with respect to any 

2 mixture or alcohol if such mixture or alcohol is 

3 destined for export from the United States (as 

4 determined by the Secretary).’’. 

5 (2) BIODIESEL CREDIT.—Subsection (d) of sec6 tion 40A of such Code is amended by adding at the 

7 end the following new paragraph: 

8 ‘‘(5) LIMITATION TO BIODIESEL WITH CONNEC9 TION TO THE UNITED STATES.— 

10 ‘‘(A) BIODIESEL CREDIT.—No biodiesel 

11 credit shall be determined under this section 

12 with respect to any biodiesel unless such bio13 diesel is produced in the United States for con14 sumption in the United States or is entered into 

15 the United States for consumption in the 

16 United States. 

17 ‘‘(B) BIODIESEL MIXTURE CREDIT.—No 

18 biodiesel mixture credit shall be determined 

19 under this section with respect to any mixture 

20 unless such mixture is produced in the United 

21 States for consumption in the United States or 

22 is entered into the United States for consump23 tion in the United States. 

24 ‘‘(C) NO CREDITS FOR BIODIESEL DES25 TINED FOR EXPORT.—No credit (other than the 


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1 small agri-biodiesel producer credit) shall be de2 termined under this section with respect to any 

3 mixture or biodiesel if such mixture or biodiesel 

4 is destined for export from the United States 

5 (as determined by the Secretary).’’. 

6 (3) EXCISE TAX CREDITS.—Section 6426 of 

7 such Code is amended by adding at the end the fol8 lowing new subsection: 

9 ‘‘(h) LIMITATION TO FUELS WITH CONNECTION TO

10 THE UNITED STATES.— 

11 ‘‘(1) MIXTURE CREDITS.—No credit shall be 

12 determined under this section with respect to any 

13 mixture unless such mixture is produced in the 

14 United States for consumption in the United States 

15 or is entered into the United States for consumption 

16 in the United States. 

17 ‘‘(2) ALTERNATIVE FUEL CREDIT.—No alter18 native fuel credit shall be determined under this sec19 tion with respect to any alternative fuel unless such 

20 alternative fuel is produced in the United States for 

21 consumption in the United States or is entered into 

22 the United States for consumption in the United 

23 States. 

24 ‘‘(3) NO CREDITS FOR FUELS DESTINED FOR

25 EXPORT.—No credit shall be determined under this 


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1 section with respect to any mixture or alternative 

2 fuel if such mixture or alternative fuel is destined 

3 for export from the United States (as determined by 

4 the Secretary).’’. 

5 (4) PAYMENTS.—Subsection (e) of section 6427 

6 of such Code is amended by redesignating paragraph 

7 (5) as paragraph (6) and by inserting after para8 graph (4) the following new paragraph: 

9 ‘‘(5) LIMITATION TO FUELS WITH CONNECTION

10 TO THE UNITED STATES.—No amount shall be pay11 able under paragraph (1) or (2) with respect to any 

12 mixture or alternative fuel if credit is not allowed 

13 with respect to such mixture or alternative fuel by 

14 reason of section 6426(h).’’. 

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

16 this section shall apply to fuel sold or used after the date 

17 of the enactment of this Act. 

Æ 


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