178 
date of the enactment of this Act, in taxable years ending 
after such date. 
SEC. 202. CREDITS FOR BIODIESEL AND RENEWABLE DIE-
SEL. 
(a) IN GENERAL.—Sections 40A(g), 6426(c)(6), and 
6427(e)(5)(B) are each amended by striking ‘‘December 31, 
2008’’ and inserting ‘‘December 31, 2009’’. 
(b) INCREASE IN RATE OF CREDIT.— 
(1) INCOME
TAX
CREDIT.—Paragraphs (1)(A) 
and (2)(A) of section 40A(b) are each amended by 
striking ‘‘50 cents’’ and inserting ‘‘$1.00’’. 
(2) EXCISE TAX CREDIT.—Paragraph (2) of sec-
tion 6426(c) is amended to read as follows: 
‘‘(2) APPLICABLE AMOUNT.—For purposes of this 
subsection, the applicable amount is $1.00.’’. 
(3) CONFORMING AMENDMENTS.— 
(A) Subsection (b) of section 40A is amend-
ed by striking paragraph (3) and by redesig-
nating paragraphs (4) and (5) as paragraphs 
(3) and (4), respectively. 
(B) Paragraph (2) of section 40A(f) is 
amended to read as follows: 
‘‘(2) EXCEPTION.—Subsection (b)(4) shall not 
apply with respect to renewable diesel.’’.
179 
(C) Paragraphs (2) and (3) of section 
40A(e) are each amended by striking ‘‘subsection 
(b)(5)(C)’’ and inserting ‘‘subsection (b)(4)(C)’’. 
(D) Clause (ii) of section 40A(d)(3)(C) is 
amended by striking ‘‘subsection (b)(5)(B)’’ and 
inserting ‘‘subsection (b)(4)(B)’’. 
(c) UNIFORM TREATMENT
OF DIESEL PRODUCED 
FROM BIOMASS.—Paragraph (3) of section 40A(f) is 
amended— 
(1) by striking ‘‘diesel fuel’’ and inserting ‘‘liq-
uid fuel’’, 
(2) 
by 
striking 
‘‘using 
a 
thermal 
depolymerization process’’, and 
(3) by inserting ‘‘, or other equivalent standard 
approved by the Secretary’’ after ‘‘D396’’. 
(d) COPRODUCTION OF RENEWABLE DIESEL WITH PE-
TROLEUM FEEDSTOCK.— 
(1) IN
GENERAL.—Paragraph (3) of section 
40A(f) is amended by adding at the end the following 
new sentences: ‘‘Such term does not include any fuel 
derived from coprocessing biomass with a feedstock 
which is not biomass. For purposes of this paragraph, 
the term ‘biomass’ has the meaning given such term 
by section 45K(c)(3).’’.
180 
(2) CONFORMING AMENDMENT.—Paragraph (3) 
of section 40A(f) is amended by striking ‘‘(as defined 
in section 45K(c)(3))’’. 
(e) ELIGIBILITY OF CERTAIN AVIATION FUEL.—Sub-
section (f) of section 40A (relating to renewable diesel) is 
amended by adding at the end the following new paragraph: 
‘‘(4) CERTAIN AVIATION FUEL.— 
‘‘(A) IN GENERAL.—Except as provided in 
the last 3 sentences of paragraph (3), the term 
‘renewable diesel’ shall include fuel derived from 
biomass which meets the requirements of a De-
partment of Defense specification for military jet 
fuel or an American Society of Testing and Ma-
terials specification for aviation turbine fuel. 
‘‘(B) APPLICATION OF MIXTURE CREDITS.— 
In the case of fuel which is treated as renewable 
diesel solely by reason of subparagraph (A), sub-
section (b)(1) and section 6426(c) shall be ap-
plied with respect to such fuel by treating ker-
osene as though it were diesel fuel.’’. 
(f) MODIFICATION RELATING TO DEFINITION OF AGRI- 
BIODIESEL.—Paragraph (2) of section 40A(d) (relating to 
agri-biodiesel) is amended by striking ‘‘and mustard seeds’’ 
and inserting ‘‘mustard seeds, and camelina’’. 
(g) EFFECTIVE DATE.—
181 
(1) IN GENERAL.—Except as otherwise provided 
in this subsection, the amendments made by this sec-
tion shall apply to fuel produced, and sold or used, 
after December 31, 2008. 
(2) COPRODUCTION
OF
RENEWABLE
DIESEL 
WITH
PETROLEUM
FEEDSTOCK.—The amendment 
made by subsection (d) shall apply to fuel produced, 
and sold or used, after the date of the enactment of 
this Act. 
SEC. 203. CLARIFICATION THAT CREDITS FOR FUEL ARE DE-
SIGNED TO PROVIDE AN INCENTIVE FOR 
UNITED STATES PRODUCTION. 
(a) ALCOHOL FUELS CREDIT.—Subsection (d) of sec-
tion 40 is amended by adding at the end the following new 
paragraph: 
‘‘(7) LIMITATION TO ALCOHOL WITH CONNECTION 
TO THE UNITED STATES.—No credit shall be deter-
mined under this section with respect to any alcohol 
which is produced outside the United States for use 
as a fuel outside the United States. For purposes of 
this paragraph, the term ‘United States’ includes any 
possession of the United States.’’. 
(b) BIODIESEL FUELS CREDIT.—Subsection (d) of sec-
tion 40A is amended by adding at the end the following 
new paragraph: