12 2 STA T . 1 5 12 PUBLIC LA W 11 0– 2 34—M A Y 22 , 200 8(d)EF F ECTIV E DA TE S.—Theam e n dmen ts made by th i sse c ti o n sha l la p ply to obli g ations iss u eda f te r the date of the enactment of this A ct. PARTI I —EN ER GY PR OV I S IONS S ubpart A— Cel lul osicB io f uel SEC.1532 1.C R E DITFO R P ROD U CTIO N OF CE L LULOSIC B IOFUEL. (a) ING ENE R A L .— S ubsection (a) of section 40 (relating to alcohol used as fuel) is amended by stri k ing ‘ ‘plus ’ ’ attheend of paragraph ( 1 ) , by striking ‘‘plus’’ at the end of paragraph ( 2 ), by striking the period at the end of paragraph ( 3 ) and inserting ‘‘, plus’’, and by adding at the end the follo w ing new paragraph
‘‘(4) the cellulosic biofuel producer credit.’’. (b) C ELL U L O SIC B IOFUEL P RO D UCER CREDIT.— (1) IN G ENERAL.—Subsection (b) of section 40 is amended by adding at the end the following new paragraph: ‘‘( 6 ) CELLULOSIC B IOFUEL P RODUCER CREDIT.— ‘‘(A) IN GENERAL.—The cellulosic biofuel producer credit of any ta x payer is an amount e q ual to the applicable amount for each gallon of qualified cellulosic biofuel produc - tion. ‘‘(B) APPLICABLE A M OUNT.— F or purposes of subpara- graph (A), the applicable amount means $ 1.01, except that such amount shall, in the case of cellulosic biofuel which is alcohol, be reduced by the sum of— ‘‘(i) the amount of the credit in effect for such alcohol under subsection (b)(1) (without regard to sub- section (b)(3)) at the time of the qualified cellulosic biofuel production, plus ‘‘(ii) in the case of ethanol, the amount of the credit in effect under subsection (b)(4) at the time of such production. ‘‘(C) Q UALIFIED CELLULOSIC BIOFUEL PRODUCTION.—For purposes of this section, the term ‘qualified cellulosic biofuel production’ means any cellulosic biofuel which is produced by the taxpayer, and which during the taxable year— ‘‘(i) is sold by the taxpayer to another person— ‘‘(I) for use by such other person in the produc- tion of a qualified cellulosic biofuel mixture in such other person’s trade or business (other than casual off-farm production), ‘‘(II) for use by such other person as a fuel in a trade or business, or ‘‘(III) who sells such cellulosic biofuel at retail to another person and places such cellulosic biofuel in the fuel tank of such other person, or ‘‘(ii) is used or sold by the taxpayer for any purpose described in clause (i). The qualified cellulosic biofuel production of any taxpayer for any taxable year shall not include any alcohol which is purchased by the taxpayer and with respect to which such producer increases the proof of the alcohol by addi- tional distillation. ‘‘(D) QUALIFIED CELLULOSIC BIOFUEL MI X TURE.—For purposes of this paragraph, the term ‘qualified cellulosic 26USC40. 26 USC 5 4 note .
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