I 
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. MATHE-
SON, Mr. LANCE, Mr. WELCH, and Mr. WOMACK) introduced the fol-
lowing 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 Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Ethanol Subsidy Re-
peal Act’’. 
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SEC. 2. REPEAL OF TAX SUBSIDIES FOR ETHANOL BLEND-
ERS. 
(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 BLEND-
ERS.—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 redes-
ignation by paragraph (2)) is amended— 
(A) by striking ‘‘and ethanol’’ in the mat-
ter 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 
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(D) by inserting after clause (ii) the fol-
lowing 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), re-
spectively. 
(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 sub-
chapter: 
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‘‘Subchapter XXIII 
Alternative Fuels 
Head-
ing/ 
Sub-
heading 
Article Description 
Rates of Duty 
General 
Special 
9823.01.01 
Ethyl alcohol (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 al-
cohol or mixture is to be used as a fuel or 
in producing a mixture of gasoline and al-
cohol, a mixture of a special fuel and alco-
hol, or any other mixture to be used as fuel 
(including motor fuel provided for in sub-
heading 
2710.11.15, 
2710.19.15 
or 
2710.19.21), or is suitable for any such 
uses ..............................................................
Free 
Free 
20%’’. 
(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. 
Æ 
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