US Codex
Bill
Notes

Title II — Renewable Fuels

H.R. 7330 · 116th Congress · Jun 25, 2020 · Lineage

II Renewable Fuels

Sec. 201 Biodiesel and renewable diesel

(a)
Income tax credit— Section 40A(g) is amended to read as follows:

“(g) Phase out; termination

“(1) Phase out—In the case of any sale or use after December 31, 2022, subsections (b)(1)(A) and (b)(2)(A) shall be applied by substituting for “$1.00”—

“(A) “$.75”, if such sale or use is before January 1, 2024,

“(B) “$.50”, if such sale or use is after December 31, 2023, and before January 1, 2025, and

“(C) “$.33”, if such sale or use is after December 31, 2024, and before January 1, 2026.

“(2) Termination—This section shall not apply to any sale or use after December 31, 2025.”

(b)
Excise tax incentives—
(1)
Phase out— Section 6426(c)(2) is amended to read as follows:

“(2) Applicable amount—For purposes of this subsection, the applicable amount is—

“(A) $1.00 in the case of any sale or use for any period before January 1, 2023,

“(B) $.75 in the case of any sale or use for any period after December 31, 2022, and before January 1, 2024,

“(C) $.50 in the case of any sale or use for any period after December 31, 2023, and before January 1, 2025, and

“(D) $.33 in the case of any sale or use for any period after December 31, 2024, and before January 1, 2026.”

(2)
Termination—
(A)
In general— Section 6426(c)(6) is amended by striking “December 31, 2022” and inserting “December 31, 2025”.
(B)
Payments— Section 6427(e)(6)(B) is amended by striking “December 31, 2022” and inserting “December 31, 2025”.
(c)
Effective date— The amendments made by this section shall apply to fuel sold or used after December 31, 2022.

Sec. 202 Extension of excise tax credits relating to alternative fuels

(a)
Extension and phaseout of alternative fuel credit—
(1)
In general— Section 6426(d)(1) is amended by striking “50 cents” and inserting “the applicable amount”.
(2)
Applicable amount and termination— Section 6426(d)(5) is amended to read as follows:

“(5) Phaseout and termination

“(A) Phaseout—For purposes of this subsection, the applicable amount is—

“(i) 50 cents in the case of any sale or use for any period before January 1, 2023,

“(ii) 38 cents in the case of any sale or use for any period after December 31, 2022, and before January 1, 2024,

“(iii) 25 cents in the case of any sale or use for any period after December 31, 2023, and before January 1, 2025, and

“(iv) 17 cents in the case of any sale or use for any period after December 31, 2024, and before January 1, 2026.

“(B) Termination—This subsection shall not apply to any sale or use for any period after December 31, 2025.”

(b)
Alternative fuel mixture credit—
(1)
In general— Section 6426(e)(3) is amended by striking “December 31, 2020” and inserting “December 31, 2025”.
(2)
Phaseout— Section 6426(e)(1) is amended by striking “50 cents” and inserting “the applicable amount (as defined in subsection (d)(5)(A))”.
(c)
Payments for alternative fuels— Section 6427(e)(6)(C) is amended by striking “December 31, 2020” and inserting “December 31, 2025”.
(d)
Effective date— The amendments made by this section shall apply to fuel sold or used after December 31, 2020.

Sec. 203 Extension of second generation biofuel incentives

(a)
In general— Section 40(b)(6)(J)(i) is amended by striking “2021” and inserting “2026”.
(b)
Extension of special allowance for depreciation of second generation biofuel plant property— Section 168(l)(2)(D) is amended by striking “2021” and inserting “2026”.
(c)
Effective date—
(1)
In general— The amendment made by subsection (a) shall apply to qualified second generation biofuel production after December 31, 2020.
(2)
Second generation biofuel plant property— The amendment made by subsection (b) shall apply to property placed in service after December 31, 2020.