I 

111TH CONGRESS 

2D SESSION H. R. 5343 

To amend the Internal Revenue Code of 1986 to provide an investment 

tax credit for advanced biofuel production property. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 19, 2010 

Ms. HERSETH SANDLIN (for herself and Mr. HODES) introduced the following 

bill; which was referred to the Committee on Ways and Means, and in 

addition to the Committee on Energy and Commerce, for a period to be 

subsequently determined by the Speaker, in each case for consideration 

of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

an investment tax credit for advanced biofuel production 

property. 

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 ‘‘Advanced Biofuel In5 vestment Act of 2010’’. 


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1 SEC. 2. INVESTMENT TAX CREDIT FOR QUALIFIED AD2 VANCED BIOFUEL PRODUCTION PROPERTY. 

3 (a) IN GENERAL.—Subparagraph (A) of section 

4 48(a)(3) of the Internal Revenue Code of 1986 (defining 

5 energy property) is amended by striking ‘‘or’’ at the end 

6 of clause (vi), by inserting ‘‘or’’ at the end of clause (vii), 

7 and by inserting after clause (vii) the following new clause: 

8 ‘‘(viii) qualified advanced biofuel pro9 duction property,’’. 

10 (b) 30 PERCENT CREDIT.—Clause (i) of section 

11 48(a)(2)(A) of the Internal Revenue Code of 1986 is 

12 amended by striking ‘‘and’’ at the end of subclause (III) 

13 and by inserting after subclause (IV) the following new 

14 subclause: 

15 ‘‘(V) qualified advanced biofuel 

16 production property, and’’. 

17 (c) DEFINITIONS.—Subsection (c) of section 48 of 

18 the Internal Revenue Code of 1986 is amended by adding 

19 at the end the following new paragraph: 

20 ‘‘(5) QUALIFIED ADVANCED BIOFUEL PRODUC21 TION PROPERTY.— 

22 ‘‘(A) IN GENERAL.—The term ‘qualified 

23 advanced biofuel production property’ means 

24 property used in an advanced biofuel project. 

25 ‘‘(B) ADVANCED BIOFUEL PROJECT.—The 

26 term ‘advanced biofuel project’ means a project 


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1 certified by the Secretary of Energy as meeting 

2 the following requirements: 

3 ‘‘(i) The property is used to produce 

4 advanced biofuel for sale to unrelated per5 sons (within the meaning of section 

6 45(e)(4)). 

7 ‘‘(ii) The project will rely primarily on 

8 new or significantly improved technologies 

9 as compared to commercial technologies 

10 currently in service in the United States 

11 and used to produce advanced biofuel. 

12 ‘‘(iii) Such other requirements as the 

13 Secretary of Energy, not later than 120 

14 days after the date of the Advanced 

15 Biofuel Investment Act of 2010, may by 

16 regulation prescribe to the extent necessary 

17 to carry out the purposes of this section, 

18 including encouraging private investment 

19 in projects which provide the greatest net 

20 impact in avoiding or reducing air pollut21 ants or anthropogenic emissions of green22 house gases, have the greatest readiness 

23 for commercial employment, replication, 

24 and further commercial use in the United 

25 States, and will introduce new technologies 


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1 and fuel production processes in the com2 mercial market. 

3 ‘‘(C) ADVANCED BIOFUEL.—The term ‘ad4 vanced biofuel’ means fuel that— 

5 ‘‘(i) meets the definition of advanced 

6 biofuel in section 9001(3) of the Farm Se7 curity and Rural Investment Act of 2002, 

8 and 

9 ‘‘(ii) has lifecycle greenhouse gas 

10 emissions that are at least 50 percent less 

11 than baseline lifecycle greenhouse gas 

12 emissions, as required under section 

13 211(o)(1)(B)(i) of the Clean Air Act. 

14 ‘‘(D) TERMINATION.—The term ‘qualified 

15 advanced biofuel production property’ shall not 

16 include any property placed in service after De17 cember 31, 2015.’’. 

18 (d) GRANTS IN LIEU OF TAX CREDIT.— 

19 (1) IN GENERAL.—Section 1603(d) of the 

20 American Recovery and Reinvestment Tax Act of 

21 2009 is amended by inserting after paragraph (8) 

22 the following new paragraph: 

23 ‘‘(9) QUALIFIED ADVANCED BIOFUEL PRODUC24 TION PROPERTY.—Any property described in clause 

25 (viii) of section 48(a)(3)(A).’’. 


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1 (2) APPLICABLE PERCENTAGE.—Section 

2 1603(b)(2)(A) of such Act is amended by inserting 

3 ‘‘and (9)’’ after ‘‘through (4)’’. 

4 (e) GRANT INCLUDIBLE IN INCOME.—Section 

5 48(d)(3) of the Internal Revenue Code of 1986 is amended 

6 by striking ‘‘Any such grant’’ and inserting ‘‘Except for 

7 a grant for specified energy property described in sub8 section (d)(9) of such section 1603, any such grant’’. 

9 (f) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply to periods after the date of the 

11 enactment of this Act, in taxable years ending after such 

12 date, under rules similar to the rules of section 48(m) of 

13 the Internal Revenue Code of 1986 (as in effect on the 

14 day before the date of the enactment of the Revenue Rec15 onciliation Act of 1990). 

Æ 


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