To amend the Internal Revenue Code of 1986 to classify ethanol and biodiesel refining property as 7-year property for purposes of the accelerated cost recovery system.

Amends the Internal Revenue Code to allow accelerated cost recovery (i.e., a seven-year recovery period) for ethanol or biodiesel refining property. Defines "ethanol or biodiesel refining property" as property used to produce biodiesel and property used to produce ethanol other than from petroleum, natural gas, or coal (including lignite).

[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 824 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 824

  To amend the Internal Revenue Code of 1986 to classify ethanol and 
  biodiesel refining property as 7-year property for purposes of the 
                   accelerated cost recovery system.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 5, 2007

    Mr. Weller of Illinois introduced the following bill; which was 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to classify ethanol and 
  biodiesel refining property as 7-year property for purposes of the 
                   accelerated cost recovery system.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. 7-YEAR DEPRECIATION OF ETHANOL AND BIODIESEL REFINING 
              PROPERTY.

    (a) In General.--Subparagraph (C) of section 168(e)(3) of the 
Internal Revenue Code of 1986 (relating to 7-year property) is amended 
by striking ``and'' at the end of clause (iv), by redesignating clause 
(v) as clause (vi), and by inserting after clause (iv) the following 
new clause:
                            ``(v) any ethanol or biodiesel refining 
                        property.''.
    (b) Ethanol or Biodiesel Refining Property.--Section 168(i) of such 
Code is amended by adding at the end the following new paragraph:
            ``(18) Ethanol or biodiesel refining property.--The term 
        `ethanol and biodiesel refining property' means--
                    ``(A) property used to produce biodiesel (as 
                defined in section 40A(d)(1)), and
                    ``(B) property used to produce ethanol other than 
                from petroleum, natural gas, or coal (including 
                lignite).''.
    (c) Alternative Depreciation System.--The table contained in 
section 168(g)(3)(B) of such Code (relating to special rule for certain 
property assigned to classes) is amended by inserting after the item 
relating to subparagraph (C)(iv) the following new item:


``(C)(v)...................................................         7''.

    (d) Alternative Minimum Tax.--Subparagraph (B) of section 56(a)(1) 
of such Code is amended by striking ``section 168(e)(3)(C)(iv)'' and 
inserting ``clause (iv) or (v) of section 168(e)(3)(C)''.
    (e) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to property placed in service after the date of the 
        enactment of this Act.
            (2) Exception.--The amendments made by this section shall 
        not apply to any property with respect to which the taxpayer or 
        a related party has entered into a binding contract for the 
        construction thereof on or before such date, or, in the case of 
        self-constructed property, has started construction on or 
        before such date.
                                 <all>