26 U.S.C. § 6426 - Credit for alcohol fuel, biodiesel, and alternative fuel mixtures
26 USC 6426 - Credit for alcohol fuel, biodiesel, and alternative fuel mixtures
(a) Allowance of credits
There shall be allowed as a credit
There shall be allowed as a credit
(1) against the tax imposed by section 4081 an amount equal to the sum of the credits described in subsections (b), (c), and (e), and
(2) against the tax imposed by section 4041 an amount equal to the sum of the credits described in subsection (d).
No credit shall be allowed in the case of the credits described in subsections (d) and (e) unless the taxpayer is registered under section 4101.
(b) Alcohol fuel mixture credit
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(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.
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
For purposes of this subsection
(A) In general
Except as provided in subparagraph (B), the applicable amount is 51 cents.
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.
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 subsection, the term alcohol fuel mixture means a mixture of alcohol and a taxable fuel which
For purposes of this subsection, 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.
For purposes of subparagraph (A), a mixture produced by any person at a refinery prior to a taxable event which includes ethyl tertiary butyl ether or other ethers produced from alcohol shall be treated as sold at the time of its removal from the refinery (and only at such time) to another person for use as a fuel.
(4) Other definitions
For purposes of this subsection
For purposes of this subsection
(A) Alcohol
The term alcohol includes methanol and ethanol but does not include
The term alcohol includes methanol and ethanol but does not include
(i) alcohol produced from petroleum, natural gas, or coal (including peat), or
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(ii) alcohol with a proof of less than 190 (determined without regard to any added denaturants).
Such term also includes an alcohol gallon equivalent of ethyl tertiary butyl ether or other ethers produced from such alcohol.
(5) Termination
This subsection shall not apply to any sale, use, or removal for any period after December 31, 2010.
This subsection shall not apply to any sale, use, or removal for any period after December 31, 2010.
(c) Biodiesel mixture credit
(1) In general
For purposes of this section, the biodiesel mixture credit is the product of the applicable amount and the number of gallons of biodiesel used by the taxpayer in producing any biodiesel mixture for sale or use in a trade or business of the taxpayer.
For purposes of this section, the biodiesel mixture credit is the product of the applicable amount and the number of gallons of biodiesel used by the taxpayer in producing any biodiesel mixture for sale or use in a trade or business of the taxpayer.
(2) Applicable amount
For purposes of this subsection
For purposes of this subsection
(A) In general
Except as provided in subparagraph (B), the applicable amount is 50 cents.
Except as provided in subparagraph (B), the applicable amount is 50 cents.
(B) Amount for agri-biodiesel
In the case of any biodiesel which is agri-biodiesel, the applicable amount is $1.00.
In the case of any biodiesel which is agri-biodiesel, the applicable amount is $1.00.
(3) Biodiesel mixture
For purposes of this section, the term biodiesel mixture means a mixture of biodiesel and diesel fuel (as defined in section 4083 (a)(3)), determined without regard to any use of kerosene, which
For purposes of this section, the term biodiesel mixture means a mixture of biodiesel and diesel fuel (as defined in section 4083 (a)(3)), determined without regard to any use of kerosene, 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.
(4) Certification for biodiesel
No credit shall be allowed under this subsection unless the taxpayer obtains a certification (in such form and manner as prescribed by the Secretary) from the producer of the biodiesel which identifies the product produced and the percentage of biodiesel and agri-biodiesel in the product.
No credit shall be allowed under this subsection unless the taxpayer obtains a certification (in such form and manner as prescribed by the Secretary) from the producer of the biodiesel which identifies the product produced and the percentage of biodiesel and agri-biodiesel in the product.
(5) Other definitions
Any term used in this subsection which is also used in section 40A shall have the meaning given such term by section 40A.
Any term used in this subsection which is also used in section 40A shall have the meaning given such term by section 40A.
(6) Termination
This subsection shall not apply to any sale, use, or removal for any period after December 31, 2008.
This subsection shall not apply to any sale, use, or removal for any period after December 31, 2008.
(d) Alternative fuel credit
(1) In general
For purposes of this section, the alternative fuel credit is the product of 50 cents and the number of gallons of an alternative fuel or gasoline gallon equivalents of a nonliquid alternative fuel sold by the taxpayer for use as a fuel in a motor vehicle or motorboat, or so used by the taxpayer.
For purposes of this section, the alternative fuel credit is the product of 50 cents and the number of gallons of an alternative fuel or gasoline gallon equivalents of a nonliquid alternative fuel sold by the taxpayer for use as a fuel in a motor vehicle or motorboat, or so used by the taxpayer.
(2) Alternative fuel
For purposes of this section, the term alternative fuel means
For purposes of this section, the term alternative fuel means
(A) liquefied petroleum gas,
(B) P Series Fuels (as defined by the Secretary of Energy under section 13211 (2) of title 42, United States Code),
(C) compressed or liquefied natural gas,
(D) liquefied hydrogen,
(E) any liquid fuel derived from coal (including peat) through the Fischer-Tropsch process, and
Such term does not include ethanol, methanol, or biodiesel.
(3) Gasoline gallon equivalent
For purposes of this subsection, the term gasoline gallon equivalent means, with respect to any nonliquid alternative fuel, the amount of such fuel having a Btu content of 124,800 (higher heating value).
For purposes of this subsection, the term gasoline gallon equivalent means, with respect to any nonliquid alternative fuel, the amount of such fuel having a Btu content of 124,800 (higher heating value).
(4) Termination
This subsection shall not apply to any sale or use for any period after September 30, 2009 (September 30, 2014, in the case of any sale or use involving liquefied hydrogen).
This subsection shall not apply to any sale or use for any period after September 30, 2009 (September 30, 2014, in the case of any sale or use involving liquefied hydrogen).
(e) Alternative fuel mixture credit
(1) In general
For purposes of this section, the alternative fuel mixture credit is the product of 50 cents and the number of gallons of alternative fuel used by the taxpayer in producing any alternative fuel mixture for sale or use in a trade or business of the taxpayer.
For purposes of this section, the alternative fuel mixture credit is the product of 50 cents and the number of gallons of alternative fuel used by the taxpayer in producing any alternative fuel mixture for sale or use in a trade or business of the taxpayer.
(2) Alternative fuel mixture
For purposes of this section, the term alternative fuel mixture means a mixture of alternative fuel and taxable fuel (as defined in subparagraph (A), (B), or (C) of section 4083 (a)(1)) which
For purposes of this section, the term alternative fuel mixture means a mixture of alternative fuel and taxable fuel (as defined in subparagraph (A), (B), or (C) of section 4083 (a)(1)) which
(A) is sold by the taxpayer producing such mixture to any person for use as fuel, or
(B) is used as a fuel by the taxpayer producing such mixture.
(3) Termination
This subsection shall not apply to any sale or use for any period after September 30, 2009 (September 30, 2014, in the case of any sale or use involving liquefied hydrogen).
This subsection shall not apply to any sale or use for any period after September 30, 2009 (September 30, 2014, in the case of any sale or use involving liquefied hydrogen).
(f) Mixture not used as a fuel, etc.
(1) Imposition of tax
If
If
(A) any credit was determined under this section with respect to alcohol or biodiesel used in the production of any alcohol fuel mixture or biodiesel mixture, respectively, and
(B) any person
(i) separates the alcohol or biodiesel from the mixture, or
(ii) without separation, uses the mixture other than as a fuel,
then there is hereby imposed on such person a tax equal to the product of the applicable amount and the number of gallons of such alcohol or biodiesel.
(2) Applicable laws
All provisions of law, including penalties, shall, insofar as applicable and not inconsistent with this section, apply in respect of any tax imposed under paragraph (1) as if such tax were imposed by section 4081 and not by this section.
All provisions of law, including penalties, shall, insofar as applicable and not inconsistent with this section, apply in respect of any tax imposed under paragraph (1) as if such tax were imposed by section 4081 and not by this section.