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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2307 Introduced in House (IH)]

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Ethanol Subsidy Repeal Act''.

SEC. 2. REPEAL OF TAX SUBSIDIES FOR ETHANOL BLENDERS.

    (a) Income Tax Credit.--Subsection (h) of section 40 of the 
Internal Revenue Code of 1986 is amended to read as follows:
    ``(h) Repeal of Credit for Ethanol Blenders.--In the case of any 
alcohol mixture credit or alcohol credit with respect to any sale or 
use of alcohol which is ethanol--
            ``(1) subsections (b)(1)(A), (b)(2)(A), (d)(3)(A), and 
        (d)(3)(B) shall each be applied by substituting `0 cents' for 
        `60 cents', and
            ``(2) subsections (b)(3), (d)(3)(A), and (d)(3)(B) shall 
        each be applied by substituting `0 cents' for `45 cents'.''.
    (b) Excise Tax Credit.--
            (1) In general.--Subparagraph (A) of section 6426(b)(4) of 
        such Code (as in effect prior to redesignation by paragraph 
        (2)) is amended--
                    (A) by striking ``and ethanol'' in the matter 
                preceding clause (i),
                    (B) by striking ``or'' at the end of clause (i),
                    (C) by striking the period at the end of clause 
                (ii) and inserting ``, or'', and
                    (D) by inserting after clause (ii) the following 
                new clause:
                            ``(iii) ethanol.''.
            (2) Conforming amendments.--Subsection (b) of section 6426 
        of such Code is amended--
                    (A) by striking ``the applicable amount and'' in 
                paragraph (1) and inserting ``60 cents multiplied by'',
                    (B) by striking paragraph (2), and
                    (C) by redesignating paragraphs (3) through (6) as 
                paragraphs (2) through (5), respectively.
    (c) Effective Date.--The amendments made by this section shall 
apply to fuel produced, and sold or used, after the date of the 
enactment of this Act.

SEC. 3. REMOVAL OF TARIFFS ON ETHANOL.

    (a) Duty-Free Treatment.--Chapter 98 of the Harmonized Tariff 
Schedule of the United States is amended by adding at the end the 
following new subchapter:

                                               ``Subchapter XXIII
                                                Alternative Fuels
----------------------------------------------------------------------------------------------------------------
                                                                        Rates of Duty
                                           ---------------------------------------------------------------------
Heading/Subheading    Article Description                         1
                                           -----------------------------------------------           2
                                                    General                Special
----------------------------------------------------------------------------------------------------------------
9823.01.01          Ethyl alcohol           Free                    Free                   20%''.
                     (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.................
----------------------------------------------------------------------------------------------------------------

    (b) Conforming Amendments.--Subchapter I of chapter 99 of the 
Harmonized Tariff Schedule of the United States is amended--
            (1) by striking heading 9901.00.50; and
            (2) by striking U.S. notes 2 and 3.
    (c) Effective Date.--The amendments made by this section apply to 
goods entered, or withdrawn from warehouse for consumption, on or after 
the date of the enactment of this Act.
                                 <all>
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