II 

109TH CONGRESS 

2D SESSION S. 3600 

To amend the Internal Revenue Code of 1986 to allow the allocation of 

the alternative fuel vehicle refueling property credit to patrons of agricultural cooperatives. 

IN THE SENATE OF THE UNITED STATES 

JUNE 29, 2006 

Mr. HARKIN introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to allow the 

allocation of the alternative fuel vehicle refueling property credit to patrons of agricultural cooperatives. 

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

3 SECTION 1. ALLOCATION OF ALTERNATIVE FUEL VEHICLE 

4 REFUELING PROPERTY CREDIT TO PATRONS 

5 OF AGRICULTURAL COOPERATIVES. 

6 (a) IN GENERAL.—Subsection (e) of section 30C of 

7 the Internal Revenue Code of 1986 (relating to special 

8 rules) is amended by adding at the end the following new 

9 paragraph: 


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1 ‘‘(6) ALLOCATION OF CREDIT TO PATRONS OF

2 AGRICULTURAL COOPERATIVE.— 

3 ‘‘(A) ELECTION TO ALLOCATE.— 

4 ‘‘(i) IN GENERAL.—In the case of an 

5 eligible cooperative organization, any por6 tion of the credit determined under sub7 section (a) for the taxable year may, at the 

8 election of the organization, be apportioned 

9 among patrons of the organization on the 

10 basis of the amount of business done by 

11 the patrons during the taxable year. 

12 ‘‘(ii) FORM AND EFFECT OF ELEC13 TION.—An election under clause (i) for any 

14 taxable year shall be made on a timely 

15 filed return for such year. Such election, 

16 once made, shall be irrevocable for such 

17 taxable year. Such election shall not take 

18 effect unless the organization designates 

19 the apportionment as such in a written no20 tice mailed to its patrons during the pay21 ment period described in section 1382(d). 

22 ‘‘(B) TREATMENT OF ORGANIZATIONS AND

23 PATRONS.—The amount of the credit appor24 tioned to any patrons under subparagraph 

25 (A)— 


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1 ‘‘(i) shall not be included in the 

2 amount determined under subsection (a) 

3 with respect to the organization for the 

4 taxable year, and 

5 ‘‘(ii) shall be included in the amount 

6 determined under subsection (a) for the 

7 first taxable year of each patron ending on 

8 or after the last day of the payment period 

9 (as defined in section 1382(d)) for the tax10 able year of the organization or, if earlier, 

11 for the taxable year of each patron ending 

12 on or after the date on which the patron 

13 receives notice from the cooperative of the 

14 apportionment. 

15 ‘‘(C) SPECIAL RULES FOR DECREASE IN

16 CREDITS FOR TAXABLE YEAR.—If the amount 

17 of the credit of a cooperative organization de18 termined under subsection (a) for a taxable 

19 year is less than the amount of such credit 

20 shown on the return of the cooperative organi21 zation for such year, an amount equal to the 

22 excess of— 

23 ‘‘(i) such reduction, over 


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1 ‘‘(ii) the amount not apportioned to 

2 such patrons under subparagraph (A) for 

3 the taxable year, 

4 shall be treated as an increase in tax imposed 

5 by this chapter on the organization. Such in6 crease shall not be treated as tax imposed by 

7 this chapter for purposes of determining the 

8 amount of any credit under this chapter. 

9 ‘‘(D) ELIGIBLE COOPERATIVE DEFINED.— 

10 For purposes of this section the term ‘eligible 

11 cooperative’ means a cooperative organization 

12 described in section 1381(a) which is owned 

13 more than 50 percent by agricultural producers 

14 or by entities owned by agricultural producers. 

15 For this purpose an entity owned by an agricul16 tural producer is one that is more than 50 per17 cent owned by agricultural producers.’’. 

18 (b) CONFORMING AMENDMENT.—The last sentence 

19 of section 55(c)(1) is amended by inserting ‘‘30C(e)(6),’’ 

20 after ‘‘section’’. 

21 (c) EFFECTIVE DATE.—The amendment made by 

22 this section shall apply to taxable years of cooperative or23 ganizations ending after the date of the enactment of this 

24 Act. 

Æ 


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