I 
111TH CONGRESS 
2D SESSION 
H. R. 6328 
To amend the Internal Revenue Code of 1986 to encourage the re-refining 
of used oil. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 29, 2010 
Mr. ETHERIDGE 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 encourage 
the re-refining of used oil. 
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 ‘‘Used Oil Re-Refining 
Tax Credit Act of 2010’’. 
SEC. 2. USED OIL RE-REFINING INVESTMENT TAX CREDIT. 
(a) QUALIFYING
USED
OIL
RE-REFINING
TAX 
CREDIT.—Subpart E of part IV of subchapter A of chap-
ter 1 of the Internal Revenue Code of 986 is amended 
by inserting after section 48D the following new section: 
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‘‘SEC. 48E. QUALIFYING USED OIL RE-REFINING PROJECT 
CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 46, the 
qualifying used oil re-refining project credit for any tax-
able year is an amount equal to 30 percent of the qualified 
investment for such taxable year with respect to any quali-
fying used oil re-refining project. 
‘‘(b) QUALIFIED INVESTMENT.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the qualified investment for any taxable year is 
the basis of eligible property placed in service by the 
taxpayer during such taxable year which is part of 
a qualifying used oil re-refining project. 
‘‘(2) SPECIAL RULE FOR CERTAIN SUBSIDIZED 
PROPERTY.—Rules similar to section 48(a)(4) (other 
than subparagraph (D) thereof) shall apply for pur-
poses of this section. 
‘‘(3) CERTAIN QUALIFIED PROGRESS EXPENDI-
TURES RULES MADE APPLICABLE.—Rules similar to 
the rules of subsections (c)(4) and (d) of section 46 
(as in effect on the day before the enactment of the 
Revenue Reconciliation Act of 1990) shall apply for 
purposes of this section. 
‘‘(4) LIMITATION.—The amount which is treat-
ed as qualified investment for all taxable years with 
respect to any qualifying used oil re-refining project 
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shall not exceed the amount certified by the Sec-
retary as eligible for the credit under this section. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) QUALIFYING
USED
OIL
RE-REFINING 
PROJECT.—The term ‘qualifying used oil re-refining 
project’ means any project— 
‘‘(A) which is designed to serve the pri-
mary purpose of processing qualifying re-re-
fined lubricating oil from used oil (including 
used lube oil derived from crude oil, synthetic 
oils, and qualified fuels), 
‘‘(B) which uses a series of mechanical or 
chemical methods, or both, including, at a min-
imum, vacuum distillation followed by solvent 
refining or hydrotreating, 
‘‘(C) the feedstock input for which is used 
lubricating oil, 
‘‘(D) with respect to which the applicant 
provides evidence that the output of the project 
is base oil which meets the American Society of 
Testing and Materials standard for hydrocarbon 
lubricating base oil (ASTM D6074), 
‘‘(E) with respect to which the applicant 
provides evidence that the of ownership or con-
trol of a site of sufficient size to allow the pro-
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posed project to be constructed or to operate on 
a long-term basis, and 
‘‘(F) which will be located in the United 
States. 
‘‘(2) QUALIFYING
RE-REFINED
LUBRICATING 
OIL.—The term ‘qualifying re-refined lubricating oil’ 
means a base oil— 
‘‘(A) which meets the American Society of 
Testing and Materials standard for hydrocarbon 
lubricating base oil (ASTM D6074), and 
‘‘(B) which is manufactured from used lu-
bricating oil. 
‘‘(3) ELIGIBLE PROPERTY.—The term ‘eligible 
property’ means any property— 
‘‘(A)(i) the construction, reconstruction, 
expansion or erection of which is completed by 
the taxpayer, or 
‘‘(ii) which is acquired by the taxpayer if 
the original use of such property commences 
with the taxpayer, and 
‘‘(B) with respect to which depreciation (or 
amortization in lieu of depreciation) is allow-
able. 
‘‘(d) QUALIFYING USED OIL RE-REFINERY PROJECT 
PROGRAM.— 
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days following the date of submittal of the ap-
plication for certification. 
‘‘(D) FEDERAL
AND
STATE
ENVIRON-
MENTAL AUTHORIZATION REQUIRED.—The Sec-
retary shall not certify a project under this sec-
tion unless the Secretary determines that the 
applicant for certification has received all Fed-
eral and State environmental authorizations or 
reviews necessary to commence construction of 
the project. 
‘‘(E) PERIOD OF ISSUANCE.—An applicant 
which receives a certification shall have 5 years 
from the date of issuance of the certification in 
order to place the project in service, and if such 
project is not placed in service by that time pe-
riod, then the certification shall no longer be 
valid. 
‘‘(3) LIMITATION.—The aggregate credits that 
may be allocated under the program shall not exceed 
$150,000,000. 
‘‘(4) REALLOCATION.—If the Secretary deter-
mines that credits under this section are available 
for reallocation pursuant to the requirements set 
forth in paragraph (2), the Secretary is authorized 
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to conduct an additional program for applications 
for certification.’’. 
(b) CREDIT TREATED AS INVESTMENT TAX CRED-
IT.—Section 46 of such Code is amended by striking 
‘‘and’’ at the end of paragraph (5), by striking the period 
at the end of paragraph (6) and inserting ‘‘, plus’’, and 
by adding at the end the following new paragraph: 
‘‘(7) the qualifying used oil re-refining project 
credit determined under section 48E(a).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart E of part IV of subchapter A of chapter 1 
of such Code is amended by inserting after the item relat-
ing to section 48D the following new item: 
‘‘Sec. 48E. Qualifying used oil re-refining project credit.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to periods after the date of the 
enactment of this Act, under rules similar to the rules of 
section 48(m) of the Internal Revenue Code of 1986 (as 
in effect on the day before the date of the enactment of 
the Revenue Reconciliation Act of 1990). 
Æ 
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