I 
111TH CONGRESS 
1ST SESSION H. R. 3235 
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 
JULY 16, 2009 
Mr. SCHAUER 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 2009’’. 
SEC. 2. CREDIT FOR USE OF ETHANOL IN TEOS PRODUC-
TION. 
(a) IN GENERAL.—Subsection (a) of section 40 of the 
Internal Revenue Code of 1986 (relating to alcohol used 
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as fuel) is amended by striking the period at the end of 
paragraph (4) and inserting ‘‘, plus’’ and by adding after 
paragraph (4) the following new paragraph: 
‘‘(5) the ethanol in TEOS production credit.’’. 
(b) ETHANOL IN TEOS PRODUCTION CREDIT.—Sub-
section (b) of section 40 of such Code (defining alcohol 
mixture credit, alcohol credit, and small ethanol producer 
credit) is amended by adding at the end the following new 
paragraph: 
‘‘(7) ETHANOL
IN
TEOS
PRODUCTION
CRED-
IT.— 
‘‘(A) IN GENERAL.—The ethanol in TEOS 
production credit for any taxable year is 45 
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 
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 such tetra ethyl ortho sili-
cate (TEOS) is manufactured in the 
United States, 
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‘‘(ii) only if the sale described in sub-
paragraph (A) is in a trade or business of 
the taxpayer, and 
‘‘(iii) 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 ‘33.33 cents’ for ‘45 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), (4), 
or (6).’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 40(d)(3)(A)(i) of such Code is 
amended by inserting ‘‘other than the ethanol in 
TEOS production credit described in subsection 
(b)(7)’’ after ‘‘any credit’’, and 
(2) Section 40(d)(3)(B)(i) of such Code is 
amended by inserting ‘‘other than the ethanol in 
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TEOS production credit described in subsection 
(b)(7)’’ after ‘‘any credit’’. 
(3) The heading for section 40(b) of such Code 
is amended by striking ‘‘AND SMALL ETHANOL PRO-
DUCER CREDIT’’ and inserting ‘‘SMALL ETHANOL 
PRODUCER CREDIT, AND ETHANOL IN TEOS PRO-
DUCTION CREDIT’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to tetra ethyl ortho silicate 
(TEOS) sold in taxable years beginning after December 
31, 2008. 
Æ 
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