H. R. 6—461
‘‘(A) to prevent the credit provided for in subsection 
(a)(3) from directly or indirectly benefiting any person with 
a direct or indirect productive capacity of more than 
60,000,000 gallons of agri-biodiesel during the taxable year, 
or 
‘‘(B) to prevent any person from directly or indirectly 
benefiting with respect to more than 15,000,000 gallons 
during the taxable year. 
‘‘(6) ALLOCATION
OF
SMALL
AGRI-BIODIESEL
CREDIT
TO 
PATRONS OF COOPERATIVE.— 
‘‘(A) ELECTION TO ALLOCATE.— 
‘‘(i) IN
GENERAL.—In the case of a cooperative 
organization described in section 1381(a), any portion 
of the credit determined under subsection (a)(3) for 
the taxable year may, at the election of the organiza-
tion, be apportioned pro rata among patrons of the 
organization on the basis of the quantity or value 
of business done with or for such patrons for the tax-
able year. 
‘‘(ii) FORM AND EFFECT OF ELECTION.—An election 
under clause (i) for any taxable year shall be made 
on a timely filed return for such year. Such election, 
once made, shall be irrevocable for such taxable year. 
Such election shall not take effect unless the organiza-
tion designates the apportionment as such in a written 
notice mailed to its patrons during the payment period 
described in section 1382(d). 
‘‘(B) TREATMENT
OF
ORGANIZATIONS
AND
PATRONS.— 
‘‘(i) ORGANIZATIONS.—The amount of the credit not 
apportioned to patrons pursuant to subparagraph (A) 
shall be included in the amount determined under 
subsection (a)(3) for the taxable year of the organiza-
tion. 
‘‘(ii) PATRONS.—The amount of the credit appor-
tioned to patrons pursuant to subparagraph (A) shall 
be included in the amount determined under such sub-
section for the first taxable year of each patron ending 
on or after the last day of the payment period (as 
defined in section 1382(d)) for the taxable year of the 
organization or, if earlier, for the taxable year of each 
patron ending on or after the date on which the patron 
receives notice from the cooperative of the apportion-
ment. 
‘‘(iii) SPECIAL RULES FOR DECREASE IN CREDITS FOR 
TAXABLE
YEAR.—If the amount of the credit of the 
organization determined under such subsection for a 
taxable year is less than the amount of such credit 
shown on the return of the organization for such year, 
an amount equal to the excess of— 
‘‘(I) such reduction, over 
‘‘(II) the amount not apportioned to such 
patrons under subparagraph (A) for the taxable 
year, shall be treated as an increase in tax imposed 
by this chapter on the organization. Such increase 
shall not be treated as tax imposed by this chapter 
for purposes of determining the amount of any
H. R. 6—462
credit under this chapter or for purposes of section 
55.’’. 
(d) CONFORMING AMENDMENTS.— 
(1) Paragraph (4) of section 40A(b) is amended by striking 
‘‘this section’’ and inserting ‘‘paragraph (1) or (2) of subsection 
(a)’’. 
(2) The heading of subsection (b) of section 40A is amended 
by striking ‘‘and Biodiesel Credit’’ and inserting ‘‘, Biodiesel 
Credit, and Small Agri-biodiesel Producer Credit’’. 
(3) Paragraph (3) of section 40A(d) is amended by redesig-
nating subparagraph (C) as subparagraph (D) and by inserting 
after subparagraph (B) the following new subparagraph: 
‘‘(C) PRODUCER CREDIT.—If— 
‘‘(i) any credit was determined under subsection 
(a)(3), and 
‘‘(ii) any person does not use such fuel for a purpose 
described in subsection (b)(5)(B), then there is hereby 
imposed on such person a tax equal to 10 cents a 
gallon for each gallon of such agri-biodiesel.’’. 
(e) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years ending after the date of the enactment 
of this Act. 
SEC. 1346. RENEWABLE DIESEL. 
(a) IN GENERAL.—Section 40A (relating to biodiesel used as 
fuel), as amended by this Act, is amended by redesignating sub-
section (f) as subsection (g) and by inserting after subsection (e) 
the following new subsection: 
‘‘(f) RENEWABLE DIESEL.—For purposes of this title— 
‘‘(1) TREATMENT
IN
THE
SAME
MANNER
AS
BIODIESEL.—
Except as provided in paragraph (2), renewable diesel shall 
be treated in the same manner as biodiesel. 
‘‘(2) EXCEPTIONS.— 
‘‘(A) RATE
OF
CREDIT.—Subsections (b)(1)(A) and 
(b)(2)(A) shall be applied with respect to renewable diesel 
by substituting ‘$1.00’ for ‘50 cents’. 
‘‘(B) NONAPPLICATION
OF
CERTAIN
CREDITS.—Sub-
sections (b)(3) and (b)(5) shall not apply with respect to 
renewable diesel. 
‘‘(3) RENEWABLE
DIESEL
DEFINED.—The term ‘renewable 
diesel’ means diesel fuel derived from biomass (as defined in 
section 45K(c)(3)) using a thermal depolymerization process 
which meets— 
‘‘(A) the registration requirements for fuels and fuel 
additives established by the Environmental Protection 
Agency under section 211 of the Clean Air Act (42 U.S.C. 
7545), and 
‘‘(B) the requirements of the American Society of 
Testing and Materials D975 or D396.’’. 
(b) CLERICAL AMENDMENTS.— 
(1) The heading for section 40A is amended by inserting 
‘‘AND RENEWABLE DIESEL’’ after ‘‘BIODIESEL’’. 
(2) The item in the table of contents for subpart D of 
part IV of subchapter A of chapter 1 relating to section 40A 
is amended to read as follows:
‘‘Sec. 40A. Biodiesel and renewable diesel used as fuel.’’.
H. R. 6—463
(c) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply with respect to fuel sold or used after December 31, 
2005. 
SEC. 1347. MODIFICATION OF SMALL ETHANOL PRODUCER CREDIT. 
(a) DEFINITION OF SMALL ETHANOL PRODUCER.—Section 40(g) 
(relating to definitions and special rules for eligible small ethanol 
producer credit) is amended by striking ‘‘30,000,000’’ each place 
it appears and inserting ‘‘60,000,000’’. 
(b) WRITTEN NOTICE OF ELECTION TO ALLOCATE CREDIT TO 
PATRONS.—Section 40(g)(6)(A)(ii) (relating to form and effect of elec-
tion) is amended by adding at the end the following new sentence: 
‘‘Such election shall not take effect unless the organization des-
ignates the apportionment as such in a written notice mailed to 
its patrons during the payment period described in section 1382(d).’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years ending after the date of the enactment 
of this Act. 
SEC. 1348. SUNSET OF DEDUCTION FOR CLEAN-FUEL VEHICLES AND 
CERTAIN REFUELING PROPERTY. 
Subsection (f) of section 179A (relating to termination) is 
amended by striking ‘‘December 31, 2006’’ and inserting ‘‘December 
31, 2005’’. 
Subtitle E—Additional Energy Tax 
Incentives 
SEC. 1351. EXPANSION OF RESEARCH CREDIT. 
(a) CREDIT FOR EXPENSES ATTRIBUTABLE TO CERTAIN COLLABO-
RATIVE ENERGY RESEARCH CONSORTIA.— 
(1) IN
GENERAL.—Section 41(a) (relating to credit for 
increasing research activities) is amended by striking ‘‘and’’ 
at the end of paragraph (1), by striking the period at the 
end of paragraph (2) and inserting ‘‘, and’’, and by adding 
at the end the following new paragraph: 
‘‘(3) 20 percent of the amounts paid or incurred by the 
taxpayer in carrying on any trade or business of the taxpayer 
during the taxable year (including as contributions) to an 
energy research consortium.’’. 
(2) ENERGY RESEARCH CONSORTIUM DEFINED.—Section 41(f) 
(relating to special rules) is amended by adding at the end 
the following new paragraph: 
‘‘(6) ENERGY RESEARCH CONSORTIUM.— 
‘‘(A) IN GENERAL.—The term ‘energy research consor-
tium’ means any organization— 
‘‘(i) which is— 
‘‘(I) described in section 501(c)(3) and is 
exempt from tax under section 501(a) and is orga-
nized and operated primarily to conduct energy 
research, or 
‘‘(II) organized and operated primarily to con-
duct energy research in the public interest (within 
the meaning of section 501(c)(3)), 
‘‘(ii) which is not a private foundation,