104 STAT. 1388-480 PUBLIC LAW 101-508 —NOV. 5, 1990 any enhanced oil recovery credit determined under section 43 with respect to such project, over "(B) the aggregate amount recaptured with respect to the amount described in subparagraph (A) under this paragraph for any prior taxable year." 26 USC 29 note. (2) EFFECTIVE DATE.—The amendment made by paragraph (1) shall apply to taxable years beginning after December 31, 1990. SEC. 11502. CREDIT FOR SMALL PRODUCERS OF ETHANOL; MODIFICA- TION OF ALCOHOL FUELS CREDIT. (a) ALLOWANCE OF CREDIT.—Section 40(a) (relating to alcohol used as fuel) is amended— (1) by striking the period at the end of paragraph (2) and inserting ", plus", and (2) by adding at the end thereof the following new paragraph: "(3) in the case of an eligible small ethanol producer, the small ethanol producer credit." (b) SMALL ETHANOL PRODUCER CREDIT.— Subsection (b) of section 40 is amended— (1) by redesignating paragraph (4) as paragraph (5), (2) by inserting after paragraph (3) the following new paragraph: "(4) SMALL ETHANOL PRODUCER CREDIT.— "(A) IN GENERAL.—The small ethanol producer credit of any eligible small ethanol producer for any tsixable year is 10 cents for each gallon of qualified ethanol fuel production of such producer. "(B) QUALIFIED ETHANOL FUEL PRODUCTION. — For purpOSeS of this paragraph, the term 'qualified ethemol fuel production' means any alcohol which is ethanol which is produced by an eligible small ethanol producer, and which during the taxable year— "(i) is sold by such producer to another person— "(I) for use by such other person in the production of a qualified 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 ethanol at retail to another person and places such ethanol in the fuel tank of such other person, or "(ii) is used or sold by such producer for any purpose described in clause (i). "(C) LIMITATION.—The qualified ethanol fuel production of any producer for any taxable year shall not exceed 15,000,000 gallons. " (D) ADDITIONAL DISTILLATION EXCLUDED. —The qualified ethanol fuel production of any producer for any taxable year shall not include any alcohol which is purchased by the producer and with respect to which such producer increases the proof of the alcohol by additional distillation."; and (3) by striking "AND ALCOHOL CREDIT" in the heading for such subsection and inserting ", ALCOHOL CREDIT, AND SMALL ETHA- NOL PRODUCER CREDIT".
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