PUBLIC LAW 101-508—NOV. 5, 1990 104 STAT. 1388-481 (c) DEFINITIONS AND SPECIAL RULES FOR ELIGIBLE SMALL ETHANOL PRODUCER CREDIT.—Section 40 is amended by adding at the end thereof the following new subsection: " (g) DEFINITIONS AND SPECIAL RULES FOR ELIGIBLE SMALL ETHANOL PRODUCER CREDIT.—For purposes of this section— "(1) ELIGIBLE SMALL ETHANOL PRODUCER. — The term 'eligible small ethanol producer' means a person who, at all times during the taxable year, has a productive capacity for alcohol (as defined in subsection (d)(1)(A) without regard to clauses (i) and (ii)) not in excess of 30,000,000 gallons. "(2) AGGREGRATION RULE.— For purposes of the 15,000,000 gallon limitation under subsection (b)(4)(C) and the 30,000,000 gallon limitation under paragraph (1), all members of the same controlled group of corporations (within the meaning of section 267(f)) and all persons under common control (within the meaning of section 52(b) but determined by treating an interest of more than 50 percent as a controlling interest) shall be treated as 1 person. "(3) PARTNERSHIP, s CORPORATIONS, AND OTHER PASS-THRU ENTI- TIES.— In the case of a partnership, trust, S corporation, or other pass-thru entity, the limitations contained in subsection (b)(4)(C) and paragraph (1) shall be applied at the entity level and at the partner or similar level. "(4) ALLOCATION. — For purposes of this subsection, in the case of a facility in which more than 1 person has an interest, productive capacity shall be allocated among such persons in such manner as the Secretary may prescribe. "(5) REGULATIONS.—The Secretary may prescribe such regulations as may be necessary— "(A) to prevent the credit provided for in subsection (a)(3) from directly or indirectly benefiting any person with a direct or indirect productive capacity of more than 30,000,000 gallons of alcohol during the taxable year, or "(B) to prevent any person from directly or indirectly benefiting with respect to more than 15,000,000 gallons during the taxable year." (d) ALCOHOL NOT USED AS FUEL.— (1) IN GENERAL.— Section 40(d)(3) is amended by redesignating subparagraph (C) as subpargigraph (D) and by inserting after subparagraph (B) the following new subparagraph: "(C) PRODUCER CREDIT.— I f— "(i) any credit Was determined under subsection (a)(3),and "(ii) any person does not use such fuel for a purpose described in subsection (b)(4)(B), then there is hereby imposed on such person a tax equal to 10 cents a gallon for each gallon of such alcohol." (2) CONFORMING AMENDMENT.—Section 40(d)(3)(D), as redesignated by paragraph (1), is amended by striking "subparagraph (A) or (B) and inserting "subparagraph (A), (B), or (C). (e) REDUCED CREDIT FOR ETHANOL BLENDERS. — (1) IN GENERAL.— Section 40, as amended by subsection (c), is amended by adding at the end thereof the following new subsection: "(h) REDUCED CREDIT FOR ETHANOL BLENDERS. — In the case of any alcohol mixture credit or alcohol credit with respect to any alcohol which is ethanol—
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