SEC. 5. TERMINATION OF CREDIT FOR PRODUCING FUEL
FROM NONCONVENTIONAL SOURCE.
Section 29 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new sub-
section:
‘‘(h) TERMINATION.—Notwithstanding any other
provision of this section, no credit shall be allowed under
this section with respect to any qualified fuels produced
by a facility placed in service after the date of the enact-
ment of this subsection.’’
SEC. 6. REPEAL OF TAX BENEFITS FOR ALCOHOL FUELS.
(a) REPEAL OF ALCOHOL FUELS CREDIT.—
(1) IN GENERAL.—Section 40 of the Internal
Revenue Code of 1986 (relating to alcohol used as
fuel) is hereby repealed.
(2) CONFORMING AMENDMENTS.—
(A) Subsection (b) of section 38 of such
Code is amended by striking paragraph (3) and
by redesignating the following paragraphs ac-
cordingly.
(B) Section 87 of such Code is hereby re-
pealed.
(C) Subsection (c) of section 196 of such
Code is amended by striking paragraph (3) and
by redesignating the following paragraphs ac-
cordingly.
(D) Subsection (n) of section 6501 of such
Code is amended by striking ‘‘40(f)’’.
(E) The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such
Code is amended by striking the item relating
to section 40.
(F) The table of sections for part II of
subchapter B of chapter 1 of such Code is
amended by striking the item relating to section
87.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to taxable years begin-
ning after the date of the enactment of this Act.
(b) REPEAL OF REDUCED FUEL TAX RATES.—
(1) GASOLINE
AND
DIESEL
FUEL.—Section
4081 of such Code is amended by striking sub-
section (c) and by redesignating subsections (d) and
(e) as subsections (c) and (d), respectively.
(2) AVIATION
FUEL.—Section 4091 of such
Code is amended by striking subsection (c).
(3) SPECIAL MOTOR FUELS.—
(A) Section 4041 of such Code is amended
by striking subsections (k) and (m).
(B) Subsection (b) of section 4041 of such
Code is amended by striking paragraph (2).
(4) CONFORMING AMENDMENTS.—
(A) Section 6427 of such Code is amended
by striking subsection (f).
(B) Subsection (i) of section 6427 of such
Code is amended by striking paragraph (3) and
by redesignating paragraphs (4) and (5) as
paragraphs (3) and (4), respectively.
(C) Paragraph (4) of section 6427(i) of
such Code, as redesignated by subparagraph
(B), is amended by striking the last sentence of
subparagraph (A) and inserting the following
new flush sentence:
‘‘Notwithstanding subsection (l)(1), if the Sec-
retary has not paid pursuant to a claim filed
under the preceding sentence within 20 days of
the date of the filing of such claim, the claim
shall be paid with interest from such date de-
termined by using the overpayment rate and
method under section 6621.’’
(D) Section 9502 of such Code is amended
by striking subsection (e).
(E) Subsection (f) of section 9502 of such
Code is amended by striking paragraph (2) and
by redesignating paragraph (3) as paragraph
(2).
(F) Subsection (b) of section 9503 of such
Code is amended by striking paragraph (5).
(G) Subsection (f) of section 9503 of such
Code is amended by striking paragraph (3) and
by redesignating paragraph (4) as paragraph
(3).
(5) EFFECTIVE DATE.—The amendments made
by this subsection shall take effect on the date of the
enactment of this Act.
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