‘‘(A) an oxygenate blender (as defined in 
section 1090.80 of title 40, Code of Federal 
Regulations), and 
‘‘(B) a retailer (as defined in paragraph 
(7) of section 101 of the Petroleum Marketing 
Practices Act (15 U.S.C. 2801)). 
‘‘(2) E15.—The term ‘E15’ means gasoline 
that contains more than 13, and not more than 15, 
volume percent ethanol. 
‘‘(c) ELECTION.— 
‘‘(1) IN GENERAL.— 
‘‘(A) ELECTION
BY
OXYGENATE
BLEND-
ER.—Subsection (a)(1) shall apply with respect 
to any gallon of fuel described in such sub-
section only if the applicable taxpayer described 
in subsection (b)(1)(A) elects to have such sub-
section apply with respect to such gallon of fuel. 
‘‘(B) NOTIFICATION.—The applicable tax-
payer described in subparagraph (A) shall pro-
vide notice of their election with respect to any 
gallon of fuel described in such subparagraph to 
any applicable taxpayer described in subsection 
(b)(1)(B) to which such fuel is sold, with such 
notice to be provided on or before the date of 
such sale. 
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‘‘(2) CREDIT FOR RETAILER AVAILABLE ONLY 
IF NOT CLAIMED BY OXYGENATE BLENDER.—Sub-
section (a)(2) shall apply with respect to any gallon 
of fuel described in such subsection only if the appli-
cable taxpayer described in subsection (b)(1)(A) has 
not elected (pursuant to paragraph (1)) to apply 
subsection (a)(1) with respect to such gallon of fuel. 
‘‘(d) REFUNDABLE CREDIT
FOR SMALL RETAIL-
ERS.—For purposes of this title, in the case of a retailer 
with not greater than 5 retail locations at the close of the 
taxable year, the credit allowed under subsection (a)(2) 
for such taxable year shall be treated as a credit allowable 
under subpart C (and not allowable under this subpart) 
for such taxable year. 
‘‘(e) TRANSFER OF CREDIT.— 
‘‘(1) IN GENERAL.—Subject to such regulations 
or other guidance as the Secretary determines nec-
essary or appropriate, if, with respect to the credit 
allowed under subsection (a) for any taxable year, 
the applicable taxpayer elects the application of this 
subsection for such taxable year with respect to all 
(or any portion specified in such election) of such 
credit, the eligible entity specified in such election, 
and not the applicable taxpayer, shall be treated as 
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the taxpayer for purposes of this title with respect 
to such credit (or such portion thereof). 
‘‘(2) ELIGIBLE ENTITY.—For purposes of this 
subsection, the term ‘eligible entity’ means any per-
son within the supply chain for fuel described in 
such section (a).’’. 
(b) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.—Subsection (b) of section 38 of the Internal 
Revenue Code of 1986 is amended by striking ‘‘plus’’ at 
the end of paragraph (32), by striking the period at the 
end of paragraph (33) and inserting ‘‘, plus’’, and by add-
ing at the end the following new paragraph: 
‘‘(34) the credit for sale or blending of ethanol 
fuels under section 45U to which subsection (d) of 
such section does not apply.’’. 
(c) CONFORMING AMENDMENT.—The table of sec-
tions for subpart D of part IV of subchapter A of chapter 
1 of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new item: 
‘‘Sec. 45U. Credit for sale or blending of ethanol fuels.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to fuel blended or sold after De-
cember 31, 2021. 
Æ 
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