1074 
HR 3550 EAS 
hol used by the taxpayer in producing any alcohol 
fuel mixture for sale or use in a trade or business of 
the taxpayer. 
‘‘(2) APPLICABLE AMOUNT.—For purposes of this 
subsection— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the applicable amount is 52 
cents (51 cents in the case of any sale or use 
after 2004). 
‘‘(B) MIXTURES
NOT
CONTAINING
ETH-
ANOL.—In the case of an alcohol fuel mixture in 
which none of the alcohol consists of ethanol, the 
applicable amount is 60 cents. 
‘‘(3) ALCOHOL FUEL MIXTURE.—For purposes of 
this subsection, the term ‘alcohol fuel mixture’ means 
a mixture of alcohol and a taxable fuel which— 
‘‘(A) is sold by the taxpayer producing such 
mixture to any person for use as a fuel, 
‘‘(B) is used as a fuel by the taxpayer pro-
ducing such mixture, or 
‘‘(C) is removed from the refinery by a per-
son producing such mixture. 
‘‘(4) OTHER DEFINITIONS.—For purposes of this 
subsection—
1075 
HR 3550 EAS 
‘‘(A) ALCOHOL.—The term ‘alcohol’ includes 
methanol and ethanol but does not include— 
‘‘(i) alcohol produced from petroleum, 
natural gas, or coal (including peat), or 
‘‘(ii) alcohol with a proof of less than 
190 (determined without regard to any 
added denaturants). 
Such term also includes an alcohol gallon equiv-
alent of ethyl tertiary butyl ether or other ethers 
produced from such alcohol. 
‘‘(B) TAXABLE
FUEL.—The term ‘taxable 
fuel’ has the meaning given such term by section 
4083(a)(1). 
‘‘(5) TERMINATION.—This subsection shall not 
apply to any sale, use, or removal for any period 
after December 31, 2010. 
‘‘(c) BIODIESEL MIXTURE CREDIT.— 
‘‘(1) IN GENERAL.—For purposes of this section, 
the biodiesel mixture credit is the product of the ap-
plicable amount and the number of gallons of bio-
diesel used by the taxpayer in producing any bio-
diesel mixture for sale or use in a trade or business 
of the taxpayer. 
‘‘(2) APPLICABLE AMOUNT.—For purposes of this 
subsection—
1076 
HR 3550 EAS 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the applicable amount is 50 
cents. 
‘‘(B) AMOUNT
FOR
AGRI-BIODIESEL.—In 
the case of any biodiesel which is agri-biodiesel, 
the applicable amount is $1.00. 
‘‘(3) BIODIESEL MIXTURE.—For purposes of this 
section, the term ‘biodiesel mixture’ means a mixture 
of biodiesel and diesel fuel (as defined in section 
4083(a)(3)), determined without regard to any use of 
kerosene, which— 
‘‘(A) is sold by the taxpayer producing such 
mixture to any person for use as a fuel, 
‘‘(B) is used as a fuel by the taxpayer pro-
ducing such mixture, or 
‘‘(C) is removed from the refinery by a per-
son producing such mixture. 
‘‘(4) CERTIFICATION FOR BIODIESEL.—No credit 
shall be allowed under this section unless the taxpayer 
obtains a certification (in such form and manner as 
prescribed by the Secretary) from the producer of the 
biodiesel which identifies the product produced and 
the percentage of biodiesel and agri-biodiesel in the 
product.
1077 
HR 3550 EAS 
‘‘(5) OTHER DEFINITIONS.—Any term used in 
this subsection which is also used in section 40A shall 
have the meaning given such term by section 40A. 
‘‘(6) TERMINATION.—This subsection shall not 
apply to any sale, use, or removal for any period 
after December 31, 2006. 
‘‘(d) MIXTURE NOT USED AS A FUEL, ETC.— 
‘‘(1) IMPOSITION OF TAX.—If— 
‘‘(A) any credit was determined under this 
section with respect to alcohol or biodiesel used 
in the production of any alcohol fuel mixture or 
biodiesel mixture, respectively, and 
‘‘(B) any person— 
‘‘(i) separates the alcohol or biodiesel 
from the mixture, or 
‘‘(ii) without separation, uses the mix-
ture other than as a fuel, 
then there is hereby imposed on such person a 
tax equal to the product of the applicable 
amount and the number of gallons of such alco-
hol or biodiesel. 
‘‘(2) APPLICABLE LAWS.—All provisions of law, 
including penalties, shall, insofar as applicable and 
not inconsistent with this section, apply in respect of
1078 
HR 3550 EAS 
any tax imposed under paragraph (1) as if such tax 
were imposed by section 4081 and not by this section. 
‘‘(e) COORDINATION WITH EXEMPTION FROM EXCISE 
TAX.—Rules similar to the rules under section 40(c) shall 
apply for purposes of this section.’’. 
(b) 
REGISTRATION
REQUIREMENT.—Section 
4101(a)(1) (relating to registration), as amended by sec-
tions 5211 and 5242 of this Act, is amended by inserting 
‘‘and every person producing or importing biodiesel (as de-
fined in section 40A(d)(1)) or alcohol (as defined in section 
6426(b)(4)(A))’’ after ‘‘4081’’. 
(c) ADDITIONAL AMENDMENTS.— 
(1) Section 40(c) is amended by striking ‘‘sub-
section (b)(2), (k), or (m) of section 4041, section 
4081(c), or section 4091(c)’’ and inserting ‘‘section 
4041(b)(2), section 6426, or section 6427(e)’’. 
(2) Paragraph (4) of section 40(d) is amended to 
read as follows: 
‘‘(4) VOLUME OF ALCOHOL.—For purposes of de-
termining under subsection (a) the number of gallons 
of alcohol with respect to which a credit is allowable 
under subsection (a), the volume of alcohol shall in-
clude the volume of any denaturant (including gaso-
line) which is added under any formulas approved by 
the Secretary to the extent that such denaturants do