I 
110TH CONGRESS 
1ST SESSION H. R. 2256 
To amend the Internal Revenue Code of 1986 to allow a credit against 
income tax for the use of ethanol in tetra ethyl ortho silicate (TEOS) 
production. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 9, 2007 
Mr. WALBERG 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 allow a 
credit against income tax for the use of ethanol in tetra 
ethyl ortho silicate (TEOS) production. 
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 ‘‘American Commercial 
Ethanol Fairness Act of 2007’’. 
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SEC. 2. CREDIT FOR USE OF ETHANOL IN TEOS PRODUC-
TION. 
(a) IN GENERAL.—Section 40 of the Internal Rev-
enue Code of 1986 (relating to alcohol used as fuel) is 
amended— 
(1) in paragraph (3) of subsection (a) by strik-
ing the period and inserting ‘‘, plus’’ and by adding 
at the end of subsection (a) the following new para-
graph: 
‘‘(4) the ethanol in TEOS production credit.’’, 
(2) in subsection (b)— 
(A) in the heading by striking ‘‘AND 
SMALL ETHANOL PRODUCER CREDIT’’ and in-
serting ‘‘SMALL ETHANOL PRODUCER CREDIT, 
AND ETHANOL IN TEOS PRODUCTION CRED-
IT’’, and 
(B) by adding at the end the following new 
paragraph: 
‘‘(6) ETHANOL
IN
TEOS
PRODUCTION
CRED-
IT.— 
‘‘(A) IN GENERAL.—The ethanol in TEOS 
production credit for any taxable year is 51 
cents for each gallon of alcohol which is ethanol 
that is used by the taxpayer in the production 
of tetra ethyl ortho silicate (TEOS) which is 
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sold by the taxpayer producing such chemical to 
any person during such taxable year. 
‘‘(B) SALE MUST BE IN TRADE OR BUSI-
NESS, ETC.—Alcohol used in the production of 
tetra ethyl ortho silicate (TEOS) shall be taken 
into account— 
‘‘(i) only if the sale described in sub-
paragraph (A) is in a trade or business of 
the taxpayer, and 
‘‘(ii) for the taxable year in which 
such sale occurs. 
‘‘(C) SMALL CREDIT FOR LOWER PROOF 
ETHANOL.—In the case of any alcohol with a 
proof which is at least 150 but less than 190, 
subparagraph (A) shall be applied by sub-
stituting ‘37.78 cents’ for ‘51 cents’. 
‘‘(D) DENIAL OF DOUBLE BENEFIT.—In 
determining the amount of the credit described 
in this paragraph, a taxpayer shall not take 
into account any amount of alcohol that is 
taken into account in determining the amount 
of a credit described in paragraph (1), (2), or 
(4).’’, 
(3) in subsection (d)(3)(A)(i), by inserting 
‘‘other than the ethanol in TEOS production credit 
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described in subsection (b)(6)’’ after ‘‘any credit’’, 
and 
(4) in subsection (d)(3)(B)(i), by inserting 
‘‘other than the ethanol in TEOS production credit 
described in subsection (b)(6)’’ after ‘‘any credit’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to tetra ethyl ortho silicate 
(TEOS) sold in taxable years beginning after December 
31, 2007. 
Æ 
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