I 
109TH CONGRESS 
2D SESSION 
H. R. 5856 
To amend the Internal Revenue Code of 1986 to allow the allocation of 
the alternative fuel vehicle refueling property credit to patrons of agricul-
tural cooperatives. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 20, 2006 
Ms. DELAURO (for herself, Mr. BOSWELL, Ms. KAPTUR, Mr. SKELTON, Mr. 
BROWN of Ohio, Mr. GRIJALVA, and Ms. MCCOLLUM of Minnesota) intro-
duced 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 the 
allocation of the alternative fuel vehicle refueling prop-
erty credit to patrons of agricultural cooperatives. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. ALLOCATION OF ALTERNATIVE FUEL VEHICLE 
REFUELING PROPERTY CREDIT TO PATRONS 
OF AGRICULTURAL COOPERATIVES. 
(a) IN GENERAL.—Subsection (e) of section 30C of 
the Internal Revenue Code of 1986 (relating to special 
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rules) is amended by adding at the end the following new 
paragraph: 
‘‘(6) ALLOCATION OF CREDIT TO PATRONS OF 
AGRICULTURAL COOPERATIVE.— 
‘‘(A) ELECTION TO ALLOCATE.— 
‘‘(i) IN GENERAL.—In the case of an 
eligible cooperative organization, any por-
tion of the credit determined under sub-
section (a) for the taxable year may, at the 
election of the organization, be apportioned 
among patrons of the organization on the 
basis of the amount of business done by 
the patrons during the taxable year. 
‘‘(ii) FORM
AND
EFFECT
OF
ELEC-
TION.—An election under clause (i) for any 
taxable year shall be made on a timely 
filed return for such year. Such election, 
once made, shall be irrevocable for such 
taxable year. Such election shall not take 
effect unless the organization designates 
the apportionment as such in a written no-
tice mailed to its patrons during the pay-
ment period described in section 1382(d). 
‘‘(B) TREATMENT OF ORGANIZATIONS AND 
PATRONS.—The amount of the credit appor-
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tioned to any patrons under subparagraph 
(A)— 
‘‘(i) shall not be included in the 
amount determined under subsection (a) 
with respect to the organization for the 
taxable year, and 
‘‘(ii) shall be included in the amount 
determined under subsection (a) for the 
first taxable year of each patron ending on 
or after the last day of the payment period 
(as defined in section 1382(d)) for the tax-
able year of the organization or, if earlier, 
for the taxable year of each patron ending 
on or after the date on which the patron 
receives notice from the cooperative of the 
apportionment. 
‘‘(C) SPECIAL RULES FOR DECREASE IN 
CREDITS FOR TAXABLE YEAR.—If the amount 
of the credit of a cooperative organization de-
termined under subsection (a) for a taxable 
year is less than the amount of such credit 
shown on the return of the cooperative organi-
zation for such year, an amount equal to the 
excess of— 
‘‘(i) such reduction, over 
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‘‘(ii) the amount not apportioned to 
such patrons under subparagraph (A) for 
the taxable year, 
shall be treated as an increase in tax imposed 
by this chapter on the organization. Such in-
crease shall not be treated as tax imposed by 
this chapter for purposes of determining the 
amount of any credit under this chapter. 
‘‘(D) ELIGIBLE COOPERATIVE DEFINED.— 
For purposes of this section the term ‘eligible 
cooperative’ means a cooperative organization 
described in section 1381(a) which is owned 
more than 50 percent by agricultural producers 
or by entities owned by agricultural producers. 
For this purpose an entity owned by an agricul-
tural producer is one that is more than 50 per-
cent owned by agricultural producers.’’. 
(b) CONFORMING AMENDMENT.—The last sentence 
of section 55(c)(1) of such Code is amended by inserting 
‘‘30C(e)(6),’’ after ‘‘section’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years of cooperative or-
ganizations ending after the date of the enactment of this 
Act. 
Æ 
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