SEC. 6. LITHIUM ION BATTERY TECHNOLOGY. 
There are authorized to be appropriated to the Sec-
retary of Energy $30,000,000 for fiscal year 2007 for the 
development of advanced lithium ion battery technology. 
SEC. 7. EXPENSING OF PROPERTY USED IN THE REFINING 
OF ETHANOL, METHANOL, AND BIODIESEL. 
(a) IN GENERAL.—Part VI of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to 
itemized deductions for individuals and corporations) is 
amended by inserting after section 179E the following new 
section: 
‘‘SEC. 179F. ELECTION TO EXPENSE CERTAIN PROPERTY 
USED IN REFINING ETHANOL, METHANOL, 
AND BIODIESEL. 
‘‘(a) IN GENERAL.—A taxpayer may elect to treat the 
cost of any qualified biofuel property as an expense which 
is not chargeable to capital account. Any cost so treated 
shall be allowed as a deduction for the taxable year in 
which the property is placed in service. 
‘‘(b) ELECTION.—An election under this section for 
any taxable year shall be made on the taxpayer’s return 
of the tax imposed by this chapter for the taxable year. 
Such election shall be made in such manner as the Sec-
retary may by regulations prescribe. Any election made 
under this section may not be revoked except with the con-
sent of the Secretary. 
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‘‘(c) QUALIFIED BIOFUEL PROPERTY.—For purposes 
of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified biofuel 
property’ means any property— 
‘‘(A) used for the refining of any biofuel, 
and 
‘‘(B) the original use of which commences 
with the taxpayer. 
‘‘(2) BIOFUEL.—The term ‘biofuel’ means 
qualified methanol or ethanol fuel (as defined in sec-
tion 4041(b)(2)(B)) and biodiesel (as defined in sec-
tion 40A(d)). 
‘‘(d) DUAL USE PROPERTY.—In the case of any 
property which is used for the refining of any biofuel and 
for any other use, the cost of such property taken into 
account under subsection (a) shall be reduced by an 
amount which bears the same ratio to the cost of such 
property as such other uses bears to all uses of such prop-
erty. 
‘‘(e) COORDINATION WITH 50 PERCENT EXPENSING 
OF REFINERIES.—Section 179C shall not apply to any 
property taken into account under subsection (a). 
‘‘(f) RECAPTURE.—Rules similar to the rules of sec-
tion 179(d)(10) shall apply with respect to any property 
which ceases to be qualified biofuel property.’’. 
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(b) CONFORMING AMENDMENTS.— 
(1) Section 1245(a) of such Code is amended 
by inserting ‘‘179F,’’ after ‘‘179E,’’ both places it 
appears in paragraphs (2)(C) and (3)(C). 
(2) Section 263(a)(1) of such Code is amended 
by striking ‘‘or’’ at the end of subparagraph (K), by 
striking the period at the end of subparagraph (L) 
and inserting ‘‘, or’’, and by inserting after subpara-
graph (L) the following new subparagraph: 
‘‘(M) expenditures for which a deduction is 
allowed under section 179F.’’. 
(3) Section 312(k)(3)(B) of such Code is 
amended by striking ‘‘or 179E’’ each place it ap-
pears in the heading and text and inserting ‘‘179E, 
or 179F’’. 
(4) The table of sections for part VI of sub-
chapter B of chapter 1 of such Code is amended by 
inserting after the item relating to section 179E the 
following new item: 
‘‘Sec. 179F. Election to expense certain property used in refining ethanol, 
methanol, and biodiesel.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act. 
Æ 
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