†
1706
HR 2419 EAS
(g) EFFECTIVE DATE.—The amendments made by this
section shall apply to fuel produced after December 31,
2007.
SEC. 12315. MODIFICATION OF ALCOHOL CREDIT.
(a) INCOME TAX CREDIT.—Subsection (h) of section
40 (relating to reduced credit for ethanol blenders) is
amended by adding at the end the following new paragraph:
‘‘(3) 
REDUCED
AMOUNT
AFTER
SALE
OF
7,500,000,000 GALLONS.—
‘‘(A) IN GENERAL.—In the case of any cal-
endar year beginning after the date described in
subparagraph (B), the last row in the table in
paragraph (2) shall be applied by substituting
‘46 cents’ for ‘51 cents’.
‘‘(B) DATE DESCRIBED.—The date described
in this subparagraph is the first date on which
7,500,000,000 gallons of ethanol (including cel-
lulosic ethanol) have been produced in or im-
ported into the United States after the date of
the enactment of this paragraph, as certified by
the Secretary, in consultation with the Adminis-
trator of the Environmental Protection Agency.’’.
(b) EXCISE TAX CREDIT.—
(1) IN
GENERAL.—Paragraph (2) of section
6426(b) (relating to alcohol fuel mixture credit) is
†
1707
HR 2419 EAS
amended by adding at the end the following new sub-
paragraph:
‘‘(C) REDUCED
AMOUNT
AFTER
SALE
OF
7,500,000,000 GALLONS.—In the case of any alco-
hol fuel mixture produced in a calendar year be-
ginning after the date described in section
40(h)(3)(B), subparagraph (A) shall be applied
by substituting ‘46 cents’ for ‘51 cents’.’’.
(2) CONFORMING
AMENDMENT.—Subparagraph
(A) of section 6426(b)(2) is amended by striking ‘‘sub-
paragraph (B)’’ and inserting ‘‘subparagraphs (B)
and (C)’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall take effect on the date of the enactment of this
Act.
SEC. 12316. CALCULATION OF VOLUME OF ALCOHOL FOR
FUEL CREDITS.
(a) IN GENERAL.—Paragraph (4) of section 40(d) (re-
lating to volume of alcohol) is amended by striking ‘‘5 per-
cent’’ and inserting ‘‘2 percent’’.
(b) CONFORMING AMENDMENT FOR EXCISE TAX CRED-
IT.—Section 6426(b) (relating to alcohol fuel mixture cred-
it) is amended by redesignating paragraph (5) as para-
graph (6) and by inserting after paragraph (4) the fol-
lowing new paragraph:
†
1708
HR 2419 EAS
‘‘(5) 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
not exceed 2 percent of the volume of such alcohol (in-
cluding denaturants).’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall apply to fuel sold or used after December 31,
2007.
SEC. 12317. ETHANOL TARIFF EXTENSION.
Headings 9901.00.50 and 9901.00.52 of the Har-
monized Tariff Schedule of the United States are each
amended in the effective period column by striking ‘‘1/1/
2009’’ and inserting ‘‘1/1/2011’’.
SEC. 12318. LIMITATIONS ON, AND REDUCTIONS OF, DUTY
DRAWBACK ON CERTAIN IMPORTED ETH-
ANOL.
(a) IN GENERAL.—Section 313(p) of the Tariff Act of
1930 (19 U.S.C. 1313(p)) is amended by adding at the end
the following new paragraph:
‘‘(5) SPECIAL RULES FOR ETHYL ALCOHOL.—For
purposes of this subsection, an exported article that
†
1709
HR 2419 EAS
does not contain ethyl alcohol or a mixture of ethyl
alcohol shall not be treated as the same kind and
quality as a qualified article that does contain ethyl
alcohol or a mixture of ethyl alcohol.’’.
(b) LIMITATIONS ON, AND REDUCTIONS OF, DRAW-
BACKS.—Section 313 of the Tariff Act of 1930 (19 U.S.C.
1313) is amended by adding at the end the following new
subsection:
‘‘(z) LIMITATIONS ON, AND REDUCTIONS OF, DRAW-
BACKS.—
‘‘(1) LIMITATIONS.—
‘‘(A) IN GENERAL.—Ethyl alcohol or mix-
ture containing ethyl alcohol described in sub-
paragraph (B) may be treated as being of the
same kind and quality under subsection (b) of
this section or may be treated as being commer-
cially interchangeable with any other ethyl alco-
hol or mixture containing ethyl alcohol under
subsection (j)(2) of this section, only if the other
ethyl alcohol or mixture—
‘‘(i) if imported, is subject to the addi-
tional duty under subheading 9901.00.50 of
the Harmonized Tariff Schedule of the
United States; or
†
1710
HR 2419 EAS
‘‘(ii) if domestic, is suitable for use as
a fuel or in a mixture to be used as a fuel
as described in such subheading 9901.00.50.
‘‘(B) ETHYL ALCOHOL OR MIXTURE CON-
TAINING
ETHYL
ALCOHOL
DESCRIBED.—Ethyl
alcohol or mixture containing ethyl alcohol de-
scribed in this subparagraph means—
‘‘(i) ethyl alcohol classifiable under
subheading 2207.10.60 or 2207.20.00 of the
Harmonized Tariff Schedule of the United
States, or
‘‘(ii) a mixture containing ethyl alco-
hol classifiable under heading 2710 or 3824
of the Harmonized Tariff Schedule of the
United States,
which, if imported would be subject to additional
duty under subheading 9901.00.50 of such Sched-
ule.
‘‘(2) REDUCTION OF DRAWBACK.—For purposes
of subsections (b), (j)(2), and (p) of this section, the
amount of the refund as drawback under this section
shall be reduced by an amount equal to any Federal
tax credit or refund of any Federal tax paid on the
merchandise with respect to which the drawback is
claimed.’’.