II 

111TH CONGRESS 

2D SESSION S. 3338 

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

tax credit for advanced biofuel production property. 

IN THE SENATE OF THE UNITED STATES 

MAY 11, 2010 

Mr. NELSON of Florida 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 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’’. 

6 SEC. 2. INVESTMENT TAX CREDIT FOR QUALIFIED AD7 VANCED BIOFUEL PRODUCTION PROPERTY. 

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

9 48(a)(3) of the Internal Revenue Code of 1986 (defining 

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


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

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

3 ‘‘(viii) qualified advanced biofuel pro4 duction property,’’. 

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

6 48(a)(2)(A) of the Internal Revenue Code of 1986 is 

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

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

9 subclause: 

10 ‘‘(V) qualified advanced biofuel 

11 production property, and’’. 

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

13 the Internal Revenue Code of 1986 is amended by adding 

14 at the end the following new paragraph: 

15 ‘‘(5) QUALIFIED ADVANCED BIOFUEL PRODUC16 TION PROPERTY.— 

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

18 advanced biofuel production property’ means 

19 property used in an advanced biofuel project. 

20 ‘‘(B) ADVANCED BIOFUEL PROJECT.— 

21 ‘‘(i) IN GENERAL.—The term ‘ad22 vanced biofuel project’ means a project cer23 tified by the Secretary of Energy as meet24 ing the following requirements: 


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1 ‘‘(I) The sole and exclusive pur2 pose of the project is to produce ad3 vanced biofuels for sale to unrelated 

4 persons (within the meaning of section 

5 45(e)(4)). 

6 ‘‘(II) The advanced biofuels pro7 duced will meet the requirements of 

8 section 211(o)(1)(B) of the Clean Air 

9 Act (42 U.S.C. 7545(o)(1)(B)). 

10 ‘‘(III) The project will rely pri11 marily on new or significantly im12 proved technologies as compared to 

13 commercial technologies currently in 

14 service in the United States and used 

15 to produce advanced biofuels. 

16 ‘‘(IV) Such other requirements as 

17 the Secretary of Energy by rule or 

18 regulation deems necessary to carry 

19 out the objectives of this section, in20 cluding encouraging private invest21 ment in projects which provide the 

22 greatest net impact in avoiding or re23 ducing air pollutants or anthropogenic 

24 emissions of greenhouse gases, have 

25 the greatest readiness for commercial 


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1 employment, replication, and further 

2 commercial use in the United States, 

3 and will introduce new technologies 

4 and fuel production processes in the 

5 commercial market. 

6 ‘‘(ii) RULE OR REGULATION.—Rules 

7 or regulations issued by the Secretary of 

8 Energy under this subparagraph shall be 

9 issued not later than 120 days after the 

10 date of the enactment of this section. 

11 ‘‘(C) TERMINATION.—The term ‘qualified 

12 advanced biofuel production property’ shall not 

13 include any property placed in service after De14 cember 31, 2014.’’. 

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

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

17 American Recovery and Reinvestment Tax Act of 

18 2009 is amended by inserting after paragraph (8) 

19 the following new paragraph: 

20 ‘‘(9) QUALIFIED ADVANCED BIOFUEL PRODUC21 TION PROPERTY.—Any property described in clause 

22 (viii) of section 48(a)(3)(A).’’. 

23 (2) APPLICABLE PERCENTAGE.—Section 

24 1603(b)(2)(A) of such Act is amended by inserting 

25 ‘‘and (9)’’ after ‘‘through (4)’’. 


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1 (3) REINVESTMENT OF GRANT.—Section 1603 

2 of such Act is amended by redesignating subsections 

3 (i) and (j) as subsections (j) and (k), respectively, 

4 and by inserting after subsection (h) the following 

5 new subsection: 

6 ‘‘(i) REINVESTMENT OF CERTAIN GRANTS.—No 

7 grant for specified energy property described in subsection 

8 (d)(9) shall be made under subsection (a) unless the grant 

9 applicant certifies in the application that such payment 

10 shall be reinvested in such property not later than 12 

11 months after the date of such payment.’’. 

12 (e) GRANT INCLUDIBLE IN INCOME.—Section 

13 48(d)(3) of the Internal Revenue Code of 1986 is amended 

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

15 a grant for specified energy property described in sub16 section (d)(9) of such section 1603, any such grant’’. 

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

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

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

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

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

22 day before the date of the enactment of the Revenue Rec23 onciliation Act of 1990). 

Æ 


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