I 

111TH CONGRESS 

1ST SESSION H. R. 3235 

To amend the Internal Revenue Code of 1986 to allow a credit against 

income tax for the use of ethanol in tetra ethyl ortho silicate (TEOS) 

production. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 16, 2009 

Mr. SCHAUER introduced the following bill; which was referred to the 

Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to allow a 

credit against income tax for the use of ethanol in tetra 

ethyl ortho silicate (TEOS) production. 

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 ‘‘American Commercial 

5 Ethanol Fairness Act of 2009’’. 

6 SEC. 2. CREDIT FOR USE OF ETHANOL IN TEOS PRODUC7 TION. 

8 (a) IN GENERAL.—Subsection (a) of section 40 of the 

9 Internal Revenue Code of 1986 (relating to alcohol used 


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1 as fuel) is amended by striking the period at the end of 

2 paragraph (4) and inserting ‘‘, plus’’ and by adding after 

3 paragraph (4) the following new paragraph: 

4 ‘‘(5) the ethanol in TEOS production credit.’’. 

5 (b) ETHANOL IN TEOS PRODUCTION CREDIT.—Sub6 section (b) of section 40 of such Code (defining alcohol 

7 mixture credit, alcohol credit, and small ethanol producer 

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

9 paragraph: 

10 ‘‘(7) ETHANOL IN TEOS PRODUCTION CRED11 IT.— 

12 ‘‘(A) IN GENERAL.—The ethanol in TEOS 

13 production credit for any taxable year is 45 

14 cents for each gallon of alcohol which is ethanol 

15 that is used by the taxpayer in the production 

16 of tetra ethyl ortho silicate (TEOS) which is 

17 sold by the taxpayer producing such chemical to 

18 any person during such taxable year. 

19 ‘‘(B) SALE MUST BE IN TRADE OR BUSI20 NESS, ETC.—Alcohol used in the production of 

21 tetra ethyl ortho silicate (TEOS) shall be taken 

22 into account— 

23 ‘‘(i) only if such tetra ethyl ortho sili24 cate (TEOS) is manufactured in the 

25 United States, 


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1 ‘‘(ii) only if the sale described in sub2 paragraph (A) is in a trade or business of 

3 the taxpayer, and 

4 ‘‘(iii) for the taxable year in which 

5 such sale occurs. 

6 ‘‘(C) SMALL CREDIT FOR LOWER PROOF

7 ETHANOL.—In the case of any alcohol with a 

8 proof which is at least 150 but less than 190, 

9 subparagraph (A) shall be applied by sub10 stituting ‘33.33 cents’ for ‘45 cents’. 

11 ‘‘(D) DENIAL OF DOUBLE BENEFIT.—In 

12 determining the amount of the credit described 

13 in this paragraph, a taxpayer shall not take 

14 into account any amount of alcohol that is 

15 taken into account in determining the amount 

16 of a credit described in paragraph (1), (2), (4), 

17 or (6).’’. 

18 (c) CONFORMING AMENDMENTS.— 

19 (1) Section 40(d)(3)(A)(i) of such Code is 

20 amended by inserting ‘‘other than the ethanol in 

21 TEOS production credit described in subsection 

22 (b)(7)’’ after ‘‘any credit’’, and 

23 (2) Section 40(d)(3)(B)(i) of such Code is 

24 amended by inserting ‘‘other than the ethanol in 


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1 TEOS production credit described in subsection 

2 (b)(7)’’ after ‘‘any credit’’. 

3 (3) The heading for section 40(b) of such Code 

4 is amended by striking ‘‘AND SMALL ETHANOL PRO5 DUCER CREDIT’’ and inserting ‘‘SMALL ETHANOL

6 PRODUCER CREDIT, AND ETHANOL IN TEOS PRO7 DUCTION CREDIT’’. 

8 (d) EFFECTIVE DATE.—The amendments made by 

9 this section shall apply to tetra ethyl ortho silicate 

10 (TEOS) sold in taxable years beginning after December 

11 31, 2008. 

Æ 


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