American Commercial Ethanol Fairness Act of 2009

American Commercial Ethanol Fairness Act of 2009- Amends the Internal Revenue Code to expand the tax credit for alcohol used as fuel to include ethanol used in tetra ethyl ortho silicate (TEOS) production. Allows taxpayers a credit for 45 cents per gallon of alcohol which is ethanol used in the production of TEOS. Requires that the TEOS be manufactured in the United States and sold in a trade or business of the taxpayer.

[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3235 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 3235

 To amend the Internal Revenue Code of 1986 to allow a credit against 
income tax for the use of ethanol in tetra ethyl ortho silicate (TEOS) 
                              production.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 16, 2009

 Mr. Schauer 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 allow a credit against 
income tax for the use of ethanol in tetra ethyl ortho silicate (TEOS) 
                              production.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``American Commercial Ethanol Fairness 
Act of 2009''.

SEC. 2. CREDIT FOR USE OF ETHANOL IN TEOS PRODUCTION.

    (a) In General.--Subsection (a) of section 40 of the Internal 
Revenue Code of 1986 (relating to alcohol used as fuel) is amended by 
striking the period at the end of paragraph (4) and inserting ``, 
plus'' and by adding after paragraph (4) the following new paragraph:
            ``(5) the ethanol in TEOS production credit.''.
    (b) Ethanol in TEOS Production Credit.--Subsection (b) of section 
40 of such Code (defining alcohol mixture credit, alcohol credit, and 
small ethanol producer credit) is amended by adding at the end the 
following new paragraph:
            ``(7) Ethanol in teos production credit.--
                    ``(A) In general.--The ethanol in TEOS production 
                credit for any taxable year is 45 cents for each gallon 
                of alcohol which is ethanol that is used by the 
                taxpayer in the production of tetra ethyl ortho 
                silicate (TEOS) which is sold by the taxpayer producing 
                such chemical to any person during such taxable year.
                    ``(B) Sale must be in trade or business, etc.--
                Alcohol used in the production of tetra ethyl ortho 
                silicate (TEOS) shall be taken into account--
                            ``(i) only if such tetra ethyl ortho 
                        silicate (TEOS) is manufactured in the United 
                        States,
                            ``(ii) only if the sale described in 
                        subparagraph (A) is in a trade or business of 
                        the taxpayer, and
                            ``(iii) for the taxable year in which such 
                        sale occurs.
                    ``(C) Small credit for lower proof ethanol.--In the 
                case of any alcohol with a proof which is at least 150 
                but less than 190, subparagraph (A) shall be applied by 
                substituting `33.33 cents' for `45 cents'.
                    ``(D) Denial of double benefit.--In determining the 
                amount of the credit described in this paragraph, a 
                taxpayer shall not take into account any amount of 
                alcohol that is taken into account in determining the 
                amount of a credit described in paragraph (1), (2), 
                (4), or (6).''.
    (c) Conforming Amendments.--
            (1) Section 40(d)(3)(A)(i) of such Code is amended by 
        inserting ``other than the ethanol in TEOS production credit 
        described in subsection (b)(7)'' after ``any credit'', and
            (2) Section 40(d)(3)(B)(i) of such Code is amended by 
        inserting ``other than the ethanol in TEOS production credit 
        described in subsection (b)(7)'' after ``any credit''.
            (3) The heading for section 40(b) of such Code is amended 
        by striking ``and Small Ethanol Producer Credit'' and inserting 
        ``Small Ethanol Producer Credit, and Ethanol in TEOS Production 
        Credit''.
    (d) Effective Date.--The amendments made by this section shall 
apply to tetra ethyl ortho silicate (TEOS) sold in taxable years 
beginning after December 31, 2008.
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