118 STAT. 1465 PUBLIC LAW 108–357—OCT. 22, 2004 ‘‘(ii) any person— ‘‘(I) separates the 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 rate applicable under subsection (b)(1)(A) and the number of gallons of such biodiesel in such mixture. ‘‘(B) BIODIESEL.—If— ‘‘(i) any credit was determined under this section with respect to the retail sale of any biodiesel, and ‘‘(ii) any person mixes such biodiesel or uses such biodiesel other than as a fuel, then there is hereby imposed on such person a tax equal to the product of the rate applicable under subsection (b)(2)(A) and the number of gallons of such biodiesel. ‘‘(C) 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 subparagraph (A) or (B) as if such tax were imposed by section 4081 and not by this chapter. ‘‘(4) PASS THRU IN THE CASE OF ESTATES AND TRUSTS.— Under regulations prescribed by the Secretary, rules similar to the rules of subsection (d) of section 52 shall apply. ‘‘(e) TERMINATION.—This section shall not apply to any sale or use after December 31, 2006.’’. (b) CREDIT TREATED AS PART OF GENERAL BUSINESS CREDIT.— Section 38(b) (relating to current year business credit), as amended by this Act, is amended by striking ‘‘plus’’ at the end of paragraph (15), by striking the period at the end of paragraph (16) and inserting ‘‘, plus’’, and by inserting after paragraph (16) the fol lowing new paragraph: ‘‘(17) the biodiesel fuels credit determined under section 40A(a).’’. (c) CONFORMING AMENDMENTS.— (1)(A) Section 87 is amended to read as follows: ‘‘SEC. 87. ALCOHOL AND BIODIESEL FUELS CREDITS. ‘‘Gross income includes— ‘‘(1) the amount of the alcohol fuel credit determined with respect to the taxpayer for the taxable year under section 40(a), and ‘‘(2) the biodiesel fuels credit determined with respect to the taxpayer for the taxable year under section 40A(a).’’. (B) The item relating to section 87 in the table of sections for part II of subchapter B of chapter 1 is amended by striking ‘‘fuel credit’’ and inserting ‘‘and biodiesel fuels credits’’. (2) Section 196(c) is amended by striking ‘‘and’’ at the end of paragraph (9), by striking the period at the end of paragraph (10) and inserting ‘‘, and’’, and by adding at the end the following new paragraph: ‘‘(11) the biodiesel fuels credit determined under section 40A(a).’’. Regulations. Applicability.
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