Teacher:In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Teacher: Now, understand the problem? Solve this instance: SECTION 1. ELIMINATION OF TAX SUBSIDIES FOR ETHANOL FUEL.

(a) Elimination of Credit for Alcohol Used as Fuel.--
(1) In general.--Subpart D of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 is amended by
striking section 40 (relating to alcohol used as fuel).
(2) Clerical and conforming amendments.--
(A) Subsection (b) of section 38 of such Code
(relating to general business credit) is amended by
striking paragraph (3) and by redesignating paragraphs
(4) through (12) as paragraphs (3) through (11),
respectively.
(B) Paragraph (3) of section 38(d) of such Code
(relating to credits no longer listed) is amended by
striking ''and'' at the end of subparagraph (A), by
striking the period at the end of subparagraph (B) and
inserting '', and'', and by adding at the end the
following new subparagraph:
''(C) the credit allowable by section 40, as in
effect on the day before the date of the enactment of
this subparagraph (relating to alcohol used as fuel)
shall be treated as referred to after the last
paragraph of subsection (b) and after any credits
treated as referred to by reason of subparagraph (A).''
(C) The table of sections for subpart D of part IV
of subchapter A of chapter 1 of such Code is amended by
striking the item relating to section 40.
(D)(i) Part II of subchapter B of chapter 1 of such
Code is amended by striking section 87 (relating to
alcohol fuel credit).
(ii) The table of sections for part II of
subchapter B of chapter 1 of such Code is amended by
striking the item relating to section 87.
(iii) Subsection (a) of section 56 of such Code
(relating to adjustments in computing alternative
minimum taxable income) is amended by striking
paragraph (7) (relating to section 87 not applicable).
(E) Subsection (c) of section 196 of such Code
(relating to qualified business credits) is amended by
striking paragraph (3) and redesignating paragraphs (4)
through (8) as paragraphs (3) through (7),
respectively.
(F) Section 6501(m) of such Code (relating to
deficiencies attributable to election of certain
credits) is amended by striking ''40(f),''.
(b) Reductions of Other Incentives for Ethanol Fuel.--
(1) Repeal of reduced rate on ethanol fuel not produced
from petroleum or natural gas.--Subsection (b) of section 4041
of such Code is amended to read as follows:
''(b) Exemption for Off-Highway Business Use.--
''(1) In general.--No tax shall be imposed by subsection
(a) or (d)(1) on liquids sold for use or used in an off-highway
business use.
''(2) Tax where other use.--If a liquid on which no tax was
imposed by reason of paragraph (1) is used otherwise than in an
off-highway business use, a tax shall be imposed by paragraph
(1)(B), (2)(B), or (3)(A)(ii) of subsection (a) (whichever is
appropriate) and by the corresponding provision of subsection
(d)(1) (if any).
''(3) Off-highway business use defined.--For purposes of
this subsection, the term 'off-highway business use' has the
meaning given to such term by section 6421(e)(2); except that
such term shall not, for purposes of subsection (a)(1), include
use in a diesel-powered train.''
(2) Repeal of reduced rate on ethanol fuel produced from
natural gas.--
(A) Paragraph (1) of section 4041(m) of such Code
is amended by striking ''or ethanol'' in the material
preceding subparagraph (A).
(B) Clause (i) of section 4041(m)(1)(A) of such
Code is amended by striking ''shall be--'' and all that
follows and inserting ''shall be 9.15 cents per gallon,
and''.
(C) Clause (ii) of section 4041(m)(1)(A) of such
Code is amended by striking ''shall be--'' and all that
follows and inserting ''shall be 2.15 cents per gallon,
and''.
(D) Paragraph (2) of section 4041(m) of such Code
is amended--
(i) by striking ''or ethanol'' each place
it appears in the heading and text,
(ii) by striking '', ethanol,'' and
(iii) by inserting ''(other than ethanol)''
after ''alcohol''.
(c) Tax of Fuel Alcohol To Same Extent as Other Motor Fuels.--
(1) Treatment as taxable fuel.--Paragraph (1) of section
4083(a) of such Code (defining taxable fuel) is amended by
striking ''and'' at the end of subparagraph (B), by striking
the period at the end of subparagraph (C) and inserting '',
and'', and by adding at the end the following:
''(D) fuel alcohol.''
(2) Definition of fuel alcohol.--Subsection (a) of section
4083 of such Code is amended by adding at the end the following
new paragraph:
''(4) Fuel alcohol.--The term 'fuel alcohol' means any
alcohol (including ethanol and methanol)--
''(A) which is produced other than from petroleum,
natural gas, or coal (including peat), and
''(B) which is withdrawn from the distillery where
produced free of tax under chapter 51 by reason of
section 5181 or so much of section 5214(a)(1) as
relates to fuel use.''
(3) Rate of tax.--Clause (i) of section 4081(a)(2)(A) of
such Code is amended by striking ''other than aviation
gasoline'' and inserting ''(other than aviation gasoline) and
fuel alcohol''.
(4) Special rules for imposition of tax.--Paragraph (1) of
section 4081(a) of such Code is amended by adding at the end
the following new subparagraph:
''(C) Special rules for fuel alcohol.--In the case
of fuel alcohol--
''(i) the distillery where produced shall
be treated as a refinery, and
''(ii) subparagraph (B) shall be applied by
including transfers by truck or rail in excess
of such minimum quantities as the Secretary
shall prescribe.''
(5) Repeal of reduced rates on alcohol fuels.--
(A) Section 4041 of such Code is amended by
striking subsection (k).
(B) Section 4081 of such Code is amended by
striking subsection (c).
(C) Section 4091 of such Code is amended by
striking subsection (c).
(6) Conforming amendments.--
(A) Subparagraph (A) of section 4041(a)(2) of such
Code is amended--
(i) by inserting ''other than fuel
alcohol'' after ''any product'', and
(ii) by adding at the end the following
flush sentence:
''No tax shall be imposed by this paragraph on the sale
or use of any fuel alcohol if tax was imposed on such
alcohol under section 4081 and the tax thereon was not
credited or refunded.''
(B) Section 6427 of such Code is amended by
striking subsection (f).
(C) Subsection (i) of section 6427 of such Code is
amended by striking paragraph (3).
(D) Paragraph (2) of section 6427(k) of such Code
is amended by striking ''(3),''.
(E)(i) Paragraph (1) of section 6427(l) of such
Code is amended by striking ''or'' at the end of
subparagraph (A), by redesignating subparagraph (B) as
subparagraph (C), and by inserting after subparagraph
(A) the following new subparagraph:
''(B) any fuel alcohol (as defined in section 4083)
on which tax has been imposed by section 4041 or 4081,
or''.
(ii) Paragraph (2) of section 6427(l) of such Code
is amended by striking ''and'' at the end of
subparagraph (A), by redesignating subparagraph (B) as
subparagraph (C), and by inserting after subparagraph
(A) the following new subparagraph:
''(B) in the case of fuel alcohol (as so defined),
any use which is exempt from the tax imposed by section
4041(a)(2) other than by reason of a prior imposition of tax, and''.
(iii) The heading of subsection (l) of section 6427
of such Code is amended by inserting '', Fuel
Alcohol,'' after ''Kerosene''.
(F) Sections 9503(b)(1)(D) and 9508(b)(2) of such
Code are each amended by striking ''and kerosene'' and
inserting ''kerosene, and fuel alcohol''.
(G) Subsection (e) of section 9502 of such Code is
amended by striking paragraph (2).
(H) Paragraph (4) of section 9503(b) of such Code
is amended by adding ''and'' at the end of subparagraph
(C), by striking the comma at the end of subparagraph
(D) and inserting a period, and by striking
subparagraphs (E) and (F).
(I) Subsection (b) of section 9503 of such Code is
amended by striking paragraph (5) and by redesignating
paragraph (6) as paragraph (5).
(d) Effective Dates.--
(1) General rule.--Except as provided in paragraph (2), the
amendments made by this section shall take effect on the date
of the enactment of this Act.
(2) Elimination of section 40 credit.--The amendments made
by subsection (a) shall apply to alcohol produced after the
date of the enactment of this Act.
(e) Floor Stock Taxes.--
(1) Imposition of tax.--In the case of fuel alcohol which
is held on the date of the enactment of this Act by any person,
there is hereby imposed a floor stocks tax of 18.4 cents per
gallon.
(2) Liability for tax and method of payment.--
(A) Liability for tax.--A person holding fuel
alcohol on the date of the enactment of this Act to
which the tax imposed by paragraph (1) applies shall be
liable for such tax.
(B) Method of payment.--The tax imposed by
paragraph (1) shall be paid in such manner as the
Secretary shall prescribe.
(C) Time for payment.--The tax imposed by paragraph
(1) shall be paid on or before the date which is 6
months after the date of the enactment of this Act.
(3) Definitions.--For purposes of this subsection--
(A) Fuel alcohol.--The term ''fuel alcohol'' has
the meaning given such term by section 4083 of the
Internal Revenue Code of 1986, as amended by this
section.
(B) Held by a person.--Fuel alcohol shall be
considered as ''held by a person'' if title thereto has
passed to such person (whether or not delivery to the
person has been made).
(C) Secretary.--The term ''Secretary'' means the
Secretary of the Treasury or his delegate.
(4) Exception for exempt uses.--The tax imposed by
paragraph (1) shall not apply to fuel alcohol held by any
person exclusively for any use to the extent a credit or refund
of the tax imposed by section 4081 of the Internal Revenue Code
of 1986 is allowable for such use.
(5) Exception for fuel held in vehicle tank.--No tax shall
be imposed by paragraph (1) on fuel alcohol held in the tank of
a motor vehicle or motorboat.
(6) Exception for certain amounts of fuel.--
(A) In general.--No tax shall be imposed by
paragraph (1) on fuel alcohol held on the date of the
enactment of this Act by any person if the aggregate
amount of fuel alcohol held by such person on such date
does not exceed 2,000 gallons. The preceding sentence
shall apply only if such person submits to the
Secretary (at the time and in the manner required by
the Secretary) such information as the Secretary shall
require for purposes of this paragraph.
(B) Exempt fuel.--For purposes of subparagraph (A),
there shall not be taken into account fuel held by any
person which is exempt from the tax imposed by
paragraph (1) by reason of paragraph (4) or (5).
(C) Controlled groups.--For purposes of this
paragraph--
(i) Corporations.--
(I) In general.--All persons
treated as a controlled group of
corporations shall be treated as 1
person.
(II) Controlled group of
corporations.--The term ''controlled
group of corporations'' has the meaning
given to such term by subsection (a) of
section 1563 of such Code; except that
for such purposes the phrase ''more
than 50 percent'' shall be substituted
for the phrase ''at least 80 percent''
each place it appears in such
subsection.
(ii) Nonincorporated persons under common
control.--Under regulations prescribed by the
Secretary, principles similar to the principles
of clause (i) shall apply to a group of persons
under common control where 1 or more of such
persons is not a corporation.
(7) Other laws applicable.--All provisions of law,
including penalties, applicable with respect to the taxes
imposed by section 4081 of such Code shall, insofar as
applicable and not inconsistent with the provisions of this
subsection, apply with respect to the floor stock taxes imposed
by paragraph (1) to the same extent as if such taxes were
imposed by such section 4081.
Student:
Amends the Internal Revenue Code to: (1) repeal the credit for alcohol used as fuel; (2) tax fuel alcohol to the same extent as gasoline and diesel fuel; and (3) repeal specified incentives for alcohol fuels.