‘‘(d) QUALIFIED REFINERY.—For purposes of this 
section, the term ‘qualified refinery’ means any refinery 
located in the United States which is designed to serve 
the primary purpose of— 
‘‘(1) processing liquid fuel— 
‘‘(A) from crude oil or qualified fuels (as 
defined in section 45K(c)), or 
‘‘(B) directly from shale or tar sands, or 
‘‘(2) processing non-virgin lube oil from used, 
refined products (including used lube oil originally 
derived from crude oil or qualified fuels).’’. 
(2) DEFINITION
OF
QUALIFIED
REFINERY 
PROPERTY.—Subsection (c) of section 179C of such 
Code is amended by adding at the end the following 
new paragraph: 
‘‘(4) SPECIAL
RULE
FOR
QUALIFIED
REFIN-
ERIES PRODUCING RE-REFINED LUBRICATING OIL.— 
In the case of a refinery described in subsection 
(d)(2)— 
‘‘(A) paragraph (1)(B) shall be applied by 
substituting ‘January 1, 2017’ for ‘January 1, 
2014’, and 
‘‘(B) paragraph (1)(F) shall be applied by 
substituting ‘January 1, 2013’ for ‘January 1, 
2010’ each place it appears.’’. 
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(b) CONFORMING AMENDMENTS.— 
(1) Subsection (e) of section 179C of the Inter-
nal Revenue Code of 1986 is amended— 
(A) by inserting ‘‘virgin’’ before ‘‘lube oil’’ 
in paragraph (1), and 
(B) by inserting ‘‘or other products from 
used refined products’’ after ‘‘(as defined in 
section 45K(c))’’ in paragraph (2). 
(2) Subsection (f) of section 179C of such Code 
is amended by inserting ‘‘virgin’’ before ‘‘lube oil fa-
cility’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act. 
SEC. 2. CREDIT FOR PRODUCTION OF RE-REFINED LUBRI-
CATING OIL. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to business related credits) is amended by 
adding at the end the following: 
‘‘SEC. 45R. CREDIT FOR PRODUCTION OF RE-REFINED LU-
BRICATING OIL. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
the re-refined lubricating oil production credit determined 
under this section for any taxable year is equal to 20 cents 
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per gallon of qualified re-refined lubricating oil which is 
produced by the taxpayer during the taxable year. 
‘‘(b) QUALIFIED RE-REFINED LUBRICATING OIL- 
FOR PURPOSES OF THIS SECTION.— 
‘‘(1) IN GENERAL.—The term ‘qualified re-re-
fined lubricating oil’ means a base oil which— 
‘‘(A) meets the American Society of Test-
ing and Materials standard for hydrocarbon lu-
bricant base oils (ASTM D6074), and 
‘‘(B) which is manufactured— 
‘‘(i) at a qualified facility, and 
‘‘(ii) from at least 95 percent used oil 
by a re-refining process which effectively 
removes physical and chemical impurities 
and spent and unspent additives. 
‘‘(2) QUALIFIED FACILITY.—The term ‘quali-
fied facility’ means a qualified refinery (as defined 
in section 179C(d)). 
‘‘(3) NONCOMPLIANCE WITH POLLUTION CON-
TROL LAWS.—For purposes of paragraph (2), a fa-
cility that is not in material compliance with all ap-
plicable State and Federal pollution prevention, con-
trol, and permit requirements for any period of time 
during a taxable year shall not be a qualified facility 
during such period. 
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‘‘(c) ADJUSTMENT FOR INFLATION.—In the case of 
a taxable year beginning in a calendar year after 2009, 
the 20 cents amount in subsection (a) shall be increased 
by an amount equal to— 
‘‘(1) such amount, multiplied by 
‘‘(2) the cost-of-living adjustment determined 
under section 1(f)(3) for such calendar year by sub-
stituting ‘calendar year 2008’ for ‘calendar year 
1992’ in subparagraph (B) thereof.’’. 
(b) CREDIT MADE PART OF GENERAL BUSINESS 
CREDIT.—Section 38(b) of the Internal Revenue Code of 
1986 is amended— 
(1) by striking ‘‘plus’’ at the end of paragraph 
(34), 
(2) by striking the period at the end of para-
graph (35) and inserting ‘‘, plus’’, and 
(3) by adding at the end the following new 
paragraph: 
‘‘(36) the re-refined lubricating oil production 
credit determined under section 45R(a).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following: 
‘‘Sec. 45R. Credit for production of re-refined lubricating oil.’’. 
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(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to oil produced after the date of 
the enactment of this Act. 
Æ 
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