‘‘(B) is originally placed in service after 
the date of the enactment of this section and 
before January 1, 2015, and 
‘‘(C) has a maximum daily production ca-
pacity of not more than 2,000 barrels of quali-
fied synthetic oil. 
‘‘(3) ELIGIBLE FEEDSTOCK.—The term ‘eligible 
feedstock’ means post-consumer and post-industrial 
waste plastics. 
‘‘(4) PLASTIC.—The term ‘plastic’ means any 
material that is derived from one or more of the cat-
egories of materials in the resin identification system 
developed by the Society of the Plastics Industry 
(SPI) in 1988. 
‘‘(d) APPLICABLE RULES.—For purposes of this sec-
tion, rules similar to the rules of paragraphs (1), (3), (4), 
and (5) of section 45(e) shall apply. 
‘‘(e) DENIAL OF DOUBLE BENEFIT.—A credit shall 
not be allowed under section 40, 40A, or 6426 with respect 
to any fuel for which a credit is allowed under this section. 
‘‘(f) COORDINATION WITH DEPARTMENT OF TREAS-
URY GRANTS.—In the case of any taxpayer with respect 
to whom the Secretary makes a grant under section 3 of 
the Plastics Recycling Act of 2009 with respect to any 
oil— 
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‘‘(1) DENIAL OF CREDITS.—No credit with re-
spect to such oil shall be determined under this sec-
tion or section 40, 40A, or 6426 for the taxable year 
in which such grant is made or any subsequent tax-
able year. 
‘‘(2) RECAPTURE OF CREDITS MADE BEFORE 
GRANT.—If a credit was determined under this sec-
tion with respect to such oil for any taxable year 
ending before such grant is made— 
‘‘(A) the tax imposed under subtitle A on 
the taxpayer for the taxable year in which such 
grant is made shall be increased by so much of 
such credit as was allowed under section 38, 
‘‘(B) the general business carryforwards 
under section 39 shall be adjusted so as to re-
capture the portion of such credit which was 
not so allowed, and 
‘‘(C) the amount of such grant shall be de-
termined without regard to any reduction in the 
basis of such property by reason of such credit. 
‘‘(3) TREATMENT OF GRANTS.—Any such grant 
shall not be includible in the gross income of the 
taxpayer.’’. 
(b) CREDIT ALLOWED AS PART OF GENERAL BUSI-
NESS CREDIT.—Section 38(b) of such Code (defining cur-
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rent year business credit) is amended by striking ‘‘plus’’ 
at the end of paragraph (34), by striking the period at 
the end of paragraph (35) and inserting ‘‘, plus’’, and by 
adding at the end the following new paragraph: 
‘‘(36) the waste plastic recycling credit deter-
mined under section 45R(a).’’. 
(c) CONFORMING AMENDMENT.—The table of sec-
tions for subpart D of part IV of subchapter A of chapter 
1 of such Code is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 45R. Oil produced from certain recycling activities.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to oil produced after the date of 
enactment of this Act. 
SEC. 3. GRANTS FOR OIL PRODUCED FROM CERTAIN RECY-
CLING ACTIVITIES IN LIEU OF TAX CREDITS. 
(a) IN GENERAL.—Upon application, the Secretary 
of the Treasury (or the Secretary’s delegate) shall make 
a grant to each person to whom the waste plastic recycling 
credit determined under section 45R of the Internal Rev-
enue Code of 1986 is allowable for the taxable year in 
which the grant is made. 
(b) GRANT DETERMINATION.—The grant under sub-
section (a) shall be determined in the same manner as the 
credit is determined under section 45R of the Internal 
Revenue Code of 1986 (determined without regard to sec-
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tion 38(c) of such Code) for the taxable year in which the 
grant is made. 
(c) EXCEPTION FOR CERTAIN NON-TAXPAYERS.— 
The Secretary of the Treasury shall not make any grant 
under this section to— 
(1) any Federal, State, or local government (or 
any political subdivision, agency, or instrumentality 
thereof), 
(2) any organization described in section 501(c) 
of the Internal Revenue Code of 1986 and exempt 
from tax under section 501(a) of such Code, 
(3) any entity referred to in paragraph (4) of 
section 54(j) of such Code, or 
(4) any partnership or other pass-thru entity 
any partner (or other holder of an equity or profits 
interest) of which is described in paragraph (1), (2) 
or (3). 
(d) APPROPRIATIONS.—For purposes of section 
1324(b) of title 31, United States Code, a grant under 
this section shall be treated as a credit provision described 
in paragraph (2) of such section. 
Æ 
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