1125 
HR 6 PAP 
‘‘(a) ALLOWANCE OF CREDITS.—There shall be allowed 
as a credit— 
‘‘(1) against the tax imposed by section 4081 an 
amount equal to the sum of the credits described in 
subsections (b), (c), and (e), and 
‘‘(2) against the tax imposed by section 4041 an 
amount equal to the sum of the credits described in 
subsection (d). 
No credit shall be allowed in the case of the credits described 
in subsections (d) and (e) unless the taxpayer is registered 
under section 4101. 
(2) ALTERNATIVE FUEL AND ALTERNATIVE FUEL 
MIXTURE CREDIT.—Section 6426 (relating to credit 
for alcohol fuel and biodiesel mixtures) is amended by 
redesignating subsections (d) and (e) as subsections 
(f) and (g) and by inserting after subsection (c) the 
following new subsections: 
‘‘(d) ALTERNATIVE FUEL CREDIT.— 
‘‘(1) IN GENERAL.—For purposes of this section, 
the alternative fuel credit is the product of 50 cents 
and the number of gallons of an alternative fuel or 
gasoline gallon equivalents of a nonliquid alternative 
fuel sold by the taxpayer for use as a fuel in a motor 
vehicle or motorboat, or so used by the taxpayer.
1126 
HR 6 PAP 
‘‘(2) ALTERNATIVE FUEL.—For purposes of this 
section, the term ‘alternative fuel’ means— 
‘‘(A) liquefied petroleum gas, 
‘‘(B) P Series Fuels (as defined by the Sec-
retary of Energy under section 13211(2) of title 
42, United States Code), 
‘‘(C) compressed or liquefied natural gas, 
‘‘(D) hydrogen, 
‘‘(E) any liquid fuel derived from coal (in-
cluding peat) through the Fischer-Tropsch proc-
ess, 
‘‘(F) liquid hydrocarbons derived from bio-
mass (as defined in section 29(c)(3)). 
Such term does not include ethanol, methanol, or bio-
diesel. 
‘‘(3) GASOLINE GALLON EQUIVALENT.—For pur-
poses of this subsection, the term ‘gasoline gallon 
equivalent’ means, with respect to any nonliquid al-
ternative fuel, the amount of such fuel having a Btu 
content of 124,800 (higher heating value). 
‘‘(4) TERMINATION.—This subsection shall not 
apply to any sale, use, or removal for any period 
after September 30, 2009. 
‘‘(e) ALTERNATIVE FUEL MIXTURE CREDIT.—
1127 
HR 6 PAP 
‘‘(1) IN GENERAL.—For purposes of this section, 
the alternative fuel mixture credit is the product of 50 
cents and the number of gallons of alternative fuel 
used by the taxpayer in producing any alternative 
fuel mixture for sale or use in a trade or business of 
the taxpayer. 
‘‘(2) ALTERNATIVE
FUEL
MIXTURE.—For pur-
poses of this section, the term ‘alternative fuel mix-
ture’ means a mixture of alternative fuel and taxable 
fuel (as defined in subparagraph (A), (B), or (C) of 
section 4083(a)(1)) which— 
‘‘(A) is sold by the taxpayer producing such 
mixture to any person for use as fuel, or 
‘‘(B) is used as a fuel by the taxpayer pro-
ducing such mixture. 
‘‘(3) TERMINATION.—This subsection shall not 
apply to any sale, use, or removal for any period 
after September 30, 2009.’’. 
(3) CONFORMING AMENDMENTS.— 
(A) The section heading for section 6426 is 
amended by striking ‘‘ALCOHOL
FUEL
AND 
BIODIESEL’’ and inserting ‘‘ALCOHOL FUEL, 
BIODIESEL, AND ALTERNATIVE FUEL’’. 
(B) The table of sections for subchapter B of 
chapter 65 is amended by striking ‘‘alcohol fuel
1128 
HR 6 PAP 
and biodiesel’’ in the item relating to section 
6426 and inserting ‘‘alcohol fuel, biodiesel, and 
alternative fuel’’. 
(C) Section 6427(e) is amended— 
(i) by inserting ‘‘or the alternative fuel 
mixture credit’’ after ‘‘biodiesel mixture 
credit’’ in paragraph (1), 
(ii) by redesignating paragraph (2) as 
paragraph (3) and paragraph (4) as para-
graph (5), 
(iii) by inserting after paragraph (1) 
the following new paragraph: 
‘‘(2) ALTERNATIVE FUEL.—If any person sells or 
uses an alternative fuel (as defined in section 
6426(d)(2)) for a purpose described in section 
6426(d)(1) in such person’s trade or business, the Sec-
retary shall pay (without interest) to such person an 
amount equal to the alternative fuel credit with re-
spect to such fuel.’’, 
(iv) by striking ‘‘under paragraph (1) 
with respect to any mixture’’ in paragraph 
(3) (as redesignated by clause (ii)) and in-
serting ‘‘under paragraph (1) or (2) with 
respect to any mixture or alternative fuel’’,