I 

112TH CONGRESS 

1ST SESSION H. R. 2307 

To repeal the tax credits for ethanol blenders, to repeal the tariff on imported 

ethanol, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 23, 2011 

Mr. HERGER (for himself, Mr. CROWLEY, Mr. SAM JOHNSON of Texas, Mr. 

STARK, Mr. NUNES, Mr. BLUMENAUER, Mr. FLAKE, Mr. COSTA, Mrs. 

BONO MACK, Mr. LARSEN of Washington, Mr. GOODLATTE, Mr. MATHESON, Mr. LANCE, Mr. WELCH, and Mr. WOMACK) introduced the following bill; which was referred to the Committee on Ways and Means 

A BILL 

To repeal the tax credits for ethanol blenders, to repeal 

the tariff on imported ethanol, and for other purposes. 

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 Re5 peal Act’’. 


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1 SEC. 2. REPEAL OF TAX SUBSIDIES FOR ETHANOL BLEND2 ERS. 

3 (a) INCOME TAX CREDIT.—Subsection (h) of section 

4 40 of the Internal Revenue Code of 1986 is amended to 

5 read as follows: 

6 ‘‘(h) REPEAL OF CREDIT FOR ETHANOL BLEND7 ERS.—In the case of any alcohol mixture credit or alcohol 

8 credit with respect to any sale or use of alcohol which is 

9 ethanol— 

10 ‘‘(1) subsections (b)(1)(A), (b)(2)(A), (d)(3)(A), 

11 and (d)(3)(B) shall each be applied by substituting 

12 ‘0 cents’ for ‘60 cents’, and 

13 ‘‘(2) subsections (b)(3), (d)(3)(A), and 

14 (d)(3)(B) shall each be applied by substituting ‘0 

15 cents’ for ‘45 cents’.’’. 

16 (b) EXCISE TAX CREDIT.— 

17 (1) IN GENERAL.—Subparagraph (A) of section 

18 6426(b)(4) of such Code (as in effect prior to redes19 ignation by paragraph (2)) is amended— 

20 (A) by striking ‘‘and ethanol’’ in the mat21 ter preceding clause (i), 

22 (B) by striking ‘‘or’’ at the end of clause 

23 (i), 

24 (C) by striking the period at the end of 

25 clause (ii) and inserting ‘‘, or’’, and 


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1 (D) by inserting after clause (ii) the fol2 lowing new clause: 

3 ‘‘(iii) ethanol.’’. 

4 (2) CONFORMING AMENDMENTS.—Subsection 

5 (b) of section 6426 of such Code is amended— 

6 (A) by striking ‘‘the applicable amount 

7 and’’ in paragraph (1) and inserting ‘‘60 cents 

8 multiplied by’’, 

9 (B) by striking paragraph (2), and 

10 (C) by redesignating paragraphs (3) 

11 through (6) as paragraphs (2) through (5), re12 spectively. 

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

14 this section shall apply to fuel produced, and sold or used, 

15 after the date of the enactment of this Act. 

16 SEC. 3. REMOVAL OF TARIFFS ON ETHANOL. 

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

18 Harmonized Tariff Schedule of the United States is 

19 amended by adding at the end the following new sub20 chapter: 


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‘‘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%’’. 

1 (b) CONFORMING AMENDMENTS.—Subchapter I of 

2 chapter 99 of the Harmonized Tariff Schedule of the 

3 United States is amended— 

4 (1) by striking heading 9901.00.50; and 

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

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

7 this section apply to goods entered, or withdrawn from 

8 warehouse for consumption, on or after the date of the 

9 enactment of this Act. 

Æ 


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