Instructions: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Input: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Foreign Oil Displacement Act of
2010''.

SEC. 2. FINDINGS.

Congress finds that--
(1) the strategic interests of the United States would be
served by a reduction in the Nation's dependence upon imported
oil to produce transportation fuels and other products vital to
both the domestic economy and national security;
(2) this goal would be served by the development of a
viable, commercially competitive synthetic fuels industry
reliant upon domestic coals and other plentiful, nontraditional
carbonaceous feedstocks; and
(3) temporary financial incentives are required to foster
private investment in the technology, design, construction, and
operation of strategic facilities capable of producing
synthetic fuels or synthetic gas on a commercial scale.

SEC. 3. CARBONACEOUS FUELS FACILITY CREDIT.

(a) Allowance of Carbonaceous Fuels Facility Credit.--Section 46 of
the Internal Revenue Code of 1986 is amended by striking ''and'' at the
end of paragraph (5), by striking the period at the end of paragraph
(6) and inserting '', and'' and by inserting after paragraph (6) the
following new paragraph:
''(7) the carbonaceous fuels facility credit.''.
(b) Amount of Carbonaceous Fuels Facility Credit.--Subpart E of
part IV of subchapter A of chapter 1 of such Code is amended by
inserting after section 48D the following new section:

''SEC. 48E. CARBONACEOUS FUELS FACILITY CREDIT.

''(a) In General.--For purposes of section 46, the carbonaceous
fuels facility credit for any taxable year is an amount equal to 30
percent of the qualified investment in a carbonaceous fuels conversion
facility for such taxable year.
''(b) Qualified Investment.--For purposes of this section--
''(1) In general.--The term 'qualified investment' means,
with respect to any taxable year, the basis of property placed
in service by the taxpayer during the taxable year as part of a
carbonaceous fuels conversion facility--
''(A)(i) the construction, reconstruction, or
erection of which is completed by the taxpayer, or
''(ii) which is acquired by the taxpayer if the
original use of such property commences with the
taxpayer,
''(B) with respect to which depreciation (or
amortization in lieu of depreciation) is allowable, and
''(C) which has a useful life of not less than 3
years.
''(2) Special rule for sale-leasebacks.--For purposes of
paragraph (1)(A), in the case of a facility that--
''(A) is originally placed in service by a person,
and
''(B) is sold and leased back by such person, or is
leased to such person, within 3 months after the date
such facility was originally placed in service, for a
period of not less than 12 years,
such facility shall be treated as originally placed in service
not earlier than the date on which such property is used under
the leaseback (or lease) referred to in subparagraph (B). The
preceding sentence shall not apply to any property if the
lessee and lessor of such property make an election under this
sentence. Such an election, once made, may be revoked only with
the consent of the Secretary.
''(3) Certain qualified progress expenditures rules made
applicable.--Rules similar to the rules of subsections (c)(4)
and (d) of section 46 (as in effect on the day before the
enactment of the Revenue Reconciliation Act of 1990) shall
apply for purposes of this section.
''(c) Carbonaceous Fuels Conversion Facility.--
''(1) In general.--For purposes of this section, the term
'carbonaceous fuels conversion facility' means a facility of
the taxpayer used to produce a qualified fuel.
''(2) Qualified fuel.--For purposes of paragraph (1), the
term 'qualified fuel'--
''(A) has the meaning given such term by section
45K(c), except that
''(B) in applying section 45K(c)(1)(C), the term
'coal' includes--
''(i) peat, and
''(ii) any byproduct (including synthetic
gas) or chemical--
''(I) that is from a coal, culm, or
silt preparation facility, and
''(II) that contains fixed carbon
derived from coal.
''(d) Coordination With Other Credits.--This section shall not
apply to any property with respect to which any other credit is allowed
unless the taxpayer elects to waive the application of such other
credits to such property.
''(e) Credit May Be Assigned.--
''(1) In general.--If any taxpayer elects the application
of this subsection for any taxable year, the amount of credit
determined under this section for such year which would (but
for this subsection) be allowable to the taxpayer shall be
allowable to the person designated by the taxpayer. Such amount
shall be determined by applying this section separately from
section 38 for such year. The person so designated shall be
treated as the taxpayer with respect to this section (other
than this subsection) for purposes of this title (other than
this paragraph).
''(2) Treatment of amounts paid for assignment.--If any
amount is paid to the person who assigns the credit determined
under this section, no portion of such amount shall be
includible in such person's gross income.
''(f) Application of Section.--This section shall apply to periods
after the date of the enactment of this section and before January 1,
2024, under rules similar to the rules of section 48(m) (as in effect
on the day before the date of the enactment of the Revenue
Reconciliation Act of 1990).''.
(c) Recapture.--
(1) In general.--Subsection (a) of section 50 of such Code
is amended by adding at the end the following new paragraph:
''(6) Special rules relating to carbonaceous fuels
conversion facility.--For purposes of applying this subsection
in the case of any credit allowable by reason of section 48E,
the following shall apply:
''(A) In general.--In lieu of the amount of the
increase in tax under paragraph (1), the increase in
tax shall be an amount equal to the investment tax
credit allowed under section 38 for all prior taxable
years with respect to a carbonaceous fuels conversion
facility (as defined by section 48E(c)) multiplied by a
fraction whose numerator is the number of years
remaining to fully depreciate under this chapter the
carbonaceous fuels conversion facility disposed of, and
whose denominator is the total number of years over
which such facility would otherwise have been subject
to depreciation. For purposes of the preceding
sentence, the year of disposition of the carbonaceous
fuels conversion facility property shall be treated as
a year of remaining depreciation.
''(B) Property ceases to qualify for progress
expenditures.--Rules similar to the rules of paragraph
(2) shall apply in the case of qualified progress
expenditures for a carbonaceous fuels conversion
facility under section 48E, except that the amount of
the increase in tax under subparagraph (A) of this
paragraph shall be substituted in lieu of the amount
described in such paragraph (2).''.
(2) Paragraph (4) of section 50(a) of such Code is amended
by striking ''and (2)'' and inserting '', (2), and (6)''.
(d) Application of At-Risk Rules.--Subparagraph (C) of section
49(a)(1) of such Code is amended by striking ''and'' at the end of
clause (v), by striking the period at the end of clause (vi) and
inserting '', and'', and by adding at the end thereof the following new
clause:
''(vii) the portion of the basis of any
carbonaceous fuels conversion facility
attributable to any qualified investment (as
defined by section 48E(b)).''.
(e) Clerical Amendment.--The table of sections for subpart E of
part IV of subchapter A of chapter 1 of such Code is amended by
inserting after the item relating to section 48D the following new
item:

''Sec. 48E. Carbonaceous fuels facility credit.''
(f) Effective Date.--The amendments made by this section shall
apply taxable years ending after the date of the enactment of this Act.

SEC. 4. EXEMPTION FROM MANUFACTURERS EXCISE TAX ON FUELS.

(a) In General.--Subsection (a) of section 4083 of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
paragraph:
''(4) Qualified carbonaceous fuel.--
''(A) Exemption.--The terms 'taxable fuel',
'gasoline', 'diesel fuel' and 'kerosene' do not include
qualified carbonaceous fuel or that portion of a blend
that is qualified carbonaceous fuel.
''(B) Qualified carbonaceous fuel defined.--For
purposes of subparagraph (A), the term 'qualified
carbonaceous fuel' means qualified fuel produced by a
carbonaceous fuels conversion facility.
''(C) Other definitions.--For purposes of
subparagraph (B), the terms 'qualified fuel' and
'carbonaceous fuels conversion facility' have the
meaning given such terms by section 48E.
''(D) Application of paragraph.--This paragraph
shall apply during the period beginning on the 91st day
after the date of the enactment of this paragraph and
ending on December 31, 2023.''.
(b) Effective Date.--The amendment made by this section shall take
effect on the date of the enactment of this Act.
Output:
Foreign Oil Displacement Act of 2010 - Amends the Internal Revenue Code to: (1) allow a tax credit for investment in a carbonaceous fuels facility; (2) allow a new 30% tax credit for investment in a carbonaceous fuels conversion facility; and (3) exempt from the manufacturer's excise tax on fuels carbonaceous fuel or any portion of a blend that is carbonaceous fuel. Defines "carbonaceous fuels conversion facility" as a facility for producing fuels from nonconventional sources using coal, including peat and any byproduct (including synthetic gas) or chemical that is from a coal, culm, or silt preparation facility and that contains fixed carbon derived from coal.