118 STAT. 1459 PUBLIC LAW 108–357—OCT. 22, 2004 under chapter 24 with respect to any increase in income attributable to a disposition described in the preceding sentence.’’. (c) WAGE WITHHOLDING NOT REQUIRED ON COMPENSATION WHERE OPTION PRICE IS BETWEEN 85 PERCENT AND 100 PERCENT OF VALUE OF STOCK.—Section 423(c) (relating to special rule where option price is between 85 percent and 100 percent of value of stock) is amended by adding at the end the following new sentence: ‘‘No amount shall be required to be deducted and withheld under chapter 24 with respect to any amount treated as compensation under this subsection.’’. (d) EFFECTIVE DATE.—The amendments made by this section shall apply to stock acquired pursuant to options exercised after the date of the enactment of this Act. TITLE III—TAX RELIEF FOR AGRI CULTURE AND SMALL MANUFACTUR ERS Subtitle A—Volumetric Ethanol Excise Tax Credit SEC. 301. ALCOHOL AND BIODIESEL EXCISE TAX CREDIT AND EXTEN SION OF ALCOHOL FUELS INCOME TAX CREDIT. (a) IN GENERAL.—Subchapter B of chapter 65 (relating to rules of special application) is amended by inserting after section 6425 the following new section: ‘‘SEC. 6426. CREDIT FOR ALCOHOL FUEL AND BIODIESEL MIXTURES. ‘‘(a) ALLOWANCE OF CREDITS.—There shall be allowed as a credit against the tax imposed by section 4081 an amount equal to the sum of— ‘‘(1) the alcohol fuel mixture credit, plus ‘‘(2) the biodiesel mixture credit. ‘‘(b) ALCOHOL FUEL MIXTURE CREDIT.— ‘‘(1) IN GENERAL.—For purposes of this section, the alcohol fuel mixture credit is the product of the applicable amount and the number of gallons of alcohol used by the taxpayer in producing any alcohol fuel mixture for sale or use in a trade or business of the taxpayer. ‘‘(2) APPLICABLE AMOUNT.—For purposes of this subsection— ‘‘(A) IN GENERAL.—Except as provided in subparagraph (B), the applicable amount is 51 cents. ‘‘(B) MIXTURES NOT CONTAINING ETHANOL.—In the case of an alcohol fuel mixture in which none of the alcohol consists of ethanol, the applicable amount is 60 cents. ‘‘(3) ALCOHOL FUEL MIXTURE.—For purposes of this sub section, the term ‘alcohol fuel mixture’ means a mixture of alcohol and a taxable fuel which— ‘‘(A) is sold by the taxpayer producing such mixture to any person for use as a fuel, or ‘‘(B) is used as a fuel by the taxpayer producing such mixture. 26 USC 421 note.
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