119 STAT. 1052
PUBLIC LAW 109–58—AUG. 8, 2005
(1) REFUNDS FOR TAX-PAID PURCHASES.—Section 6427 is amended by redesignating subsections (m) through (p) as subsections (n) through (q), respectively, and by inserting after subsection (l) the following new subsection: ‘‘(m) DIESEL FUEL USED TO PRODUCE EMULSION.— ‘‘(1) IN GENERAL.—Except as provided in subsection (k), if any diesel fuel on which tax was imposed by section 4081 at the regular tax rate is used by any person in producing an emulsion described in section 4081(a)(2)(D) which is sold or used in such person’s trade or business, the Secretary shall pay (without interest) to such person an amount equal to the excess of the regular tax rate over the incentive tax rate with respect to such fuel. ‘‘(2) DEFINITIONS.—For purposes of paragraph (1)— ‘‘(A) REGULAR TAX RATE.—The term ‘regular tax rate’ means the aggregate rate of tax imposed by section 4081 determined without regard to section 4081(a)(2)(D). ‘‘(B) INCENTIVE TAX RATE.—The term ‘incentive tax rate’ means the aggregate rate of tax imposed by section 4081 determined with regard to section 4081(a)(2)(D).’’. (2) LATER SEPARATION OF FUEL.—Section 4081 (relating to imposition of tax) is amended by inserting after subsection (b) the following new subsection: ‘‘(c) LATER SEPARATION OF FUEL FROM DIESEL-WATER FUEL EMULSION.—If any person separates the taxable fuel from a dieselwater fuel emulsion on which tax was imposed under subsection (a) at a rate determined under subsection (a)(2)(D) (or with respect to which a credit or payment was allowed or made by reason of section 6427), such person shall be treated as the refiner of such taxable fuel. The amount of tax imposed on any removal of such fuel by such person shall be reduced by the amount of tax imposed (and not credited or refunded) on any prior removal or entry of such fuel.’’. (3) CREDIT CLAIMS.—Paragraphs (1) and (2) of section 6427(i) are both amended by inserting ‘‘(m),’’ after ‘‘(l),’’. (c) EFFECTIVE DATE.—The amendments made by this section shall take effect on January 1, 2006.
26 USC 6427.
26 USC 4081 note.
SEC. 1344. EXTENSION OF EXCISE TAX PROVISIONS AND INCOME TAX CREDIT FOR BIODIESEL.
26 USC 40A note.
(a) IN GENERAL.—Sections 40A(e), 6426(c)(6), and 6427(e)(4)(B) are each amended by striking ‘‘2006’’ and inserting ‘‘2008’’. (b) EFFECTIVE DATE.—The amendments made by this section shall take effect on the date of the enactment of this Act. SEC. 1345. SMALL AGRI-BIODIESEL PRODUCER CREDIT.
(a) IN GENERAL.—Subsection (a) of section 40A (relating to biodiesel used as a fuel) is amended to read as follows: ‘‘(a) GENERAL RULE.—For purposes of section 38, the biodiesel fuels credit determined under this section for the taxable year is an amount equal to the sum of— ‘‘(1) the biodiesel mixture credit, plus ‘‘(2) the biodiesel credit, plus ‘‘(3) in the case of an eligible small agri-biodiesel producer, the small agri-biodiesel producer credit.’’. (b) SMALL AGRI-BIODIESEL PRODUCER CREDIT DEFINED.—Section 40A(b) (relating to definition of biodiesel mixture credit and
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