Post by Lance Lillidge on May 4, 2008 16:48:18 GMT -5
Senator LILLIDGE, for himself, introduces the following;
A BILL
To repeal certain tax subsidies enacted by the Energy Policy Act of 2005 for oil and gas, to allow a credit against income tax for farm diesel expenses, and to allow a credit to farmers who produce biodiesel and agri-biodiesel.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Family Farm Energy Relief Act'.
SEC. 2. REPEAL OF TAX SUBSIDIES ENACTED BY THE ENERGY POLICY ACT OF 2005 FOR OIL AND GAS.
(a) Repeal- The following provisions, and amendments made by such provisions, of the Energy Policy Act of 2005 are hereby repealed:
(1) Section 1323 (relating to temporary expensing for equipment used in refining of liquid fuels).
(2) Section 1324 (relating to pass through to owners of deduction for capital costs incurred by small refiner cooperatives in complying with Environmental Protection Agency sulfur regulations).
(3) Section 1325 (relating to natural gas distribution lines treated as 15-year property).
(4) Section 1326 (relating to natural gas gathering lines treated as 7-year property).
(5) Section 1328 (relating to determination of small refiner exception to oil depletion deduction).
(6) Section 1329 (relating to amortization of geological and geophysical expenditures).
(b) Administration of Internal Revenue Code of 1986- The Internal Revenue Code of 1986 shall be applied and administered as if the provisions, and amendments, specified in subsection (a) had never been enacted.
SEC. 3. FARM DIESEL PURCHASES CREDIT.
(a) In General- Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to nonrefundable personal credits) is amended by inserting after section 25D the following new section:
`SEC. 25E. FARM DIESEL EXPENSES CREDIT.
`(a) Allowance of Credit- In the case of a qualified farmer, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 10 percent of the farm diesel expenses paid or incurred by the qualified farmer during the taxable year.
`(b) Qualified Farmer- For purposes of this section, with respect to a taxable year, the term `qualified farmer' means an individual--
`(1) who is actively engaged in farming,
`(2) whose contributions to a farming operation during the taxable year are at least commensurate with the individual's claimed share of the profits or losses of the farming operation, and
`(3) whose gross income from farming for the taxable year is at least 75 percent of the individual's total gross income from all sources for the taxable year.
`© Farm Diesel Expenses- For purposes of this section, the term `farm diesel expenses' means amounts paid or incurred for the purchase of diesel fuel that is described in section 4082(a) and is intended to be used for farming purposes.
`(d) Termination- This section shall not apply with respect to farm diesel expenses paid or incurred in taxable years beginning after December 31, 2016.'.
(b) Clerical Amendment- The table of items for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 25D the following new item:
`Sec. 25E. Farm diesel expenses credit.'.
© Effective Date- The amendments made by this section shall apply to farm diesel expenses paid or incurred in taxable years beginning after the date of the enactment of this Act.
SEC. 4. INCREASE IN SMALL AGRI-BIODIESEL PRODUCER CREDIT FOR QUALIFIED FARMERS.
(a) In General- Paragraph (5) of section 40A(b) of the Internal Revenue Code of 1986 (relating to small agri-biodiesel producer credit) is amended by adding at the end the following new subparagraph:
`(D) INCREASE FOR QUALIFIED FARMERS- In the case of an eligible small agri-biodiesel producer who is a qualified farmer, subparagraph (A) shall be applied by substituting `20 cents' for `10 cents'.'.
(b) Qualified Farmer- Subsection (e) of section 40A of such Code (relating to definitions and special rules for small agri-biodiesel producer credit) is amended by adding at the end the following new paragraph:
`(7) QUALIFIED FARMER- With respect to a taxable year, the term `qualified farmer' means an individual--
`(A) who is actively engaged in farming,
`(B) whose contributions to a farming operation during the taxable year are at least commensurate with the individual's claimed share of the profits or losses of the farming operation, and
`© whose gross income from farming for the taxable year is at least 75 percent of the individual's total gross income from all sources for the taxable year.'.
© Effective Date- The amendments by this section shall apply to qualified agri-biodiesel production after December 31, 2016, in taxable years beginning after such date.[/list]
SEC. 5. ALLOWANCE OF SMALL BIODIESEL PRODUCER CREDIT FOR QUALIFIED FARMERS.
(a) In General- Section 40A of the Internal Revenue Code of 1986 (relating to biodiesel and renewable diesel used as fuel) is amended--
(1) in subsection (a), by striking the period at the end of paragraph (3) and inserting `, plus' and by adding at the end the following new paragraph:
`(4) in the case of an eligible small biodiesel producer, the small biodiesel producer credit.',
(2) in subsection (b), by adding at the end the following new paragraph:
`(6) SMALL BIODIESEL PRODUCER CREDIT-
`(A) IN GENERAL- The small biodiesel producer credit of any eligible small biodiesel producer for any taxable year is 10 cents for each gallon of qualified biodiesel production of such producer.
`(B) QUALIFIED BIODIESEL PRODUCTION- For purposes of this paragraph, the term `qualified biodiesel production' means any biodiesel which is produced by an eligible small biodiesel producer, and which during the taxable year--
A BILL
To repeal certain tax subsidies enacted by the Energy Policy Act of 2005 for oil and gas, to allow a credit against income tax for farm diesel expenses, and to allow a credit to farmers who produce biodiesel and agri-biodiesel.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Family Farm Energy Relief Act'.
SEC. 2. REPEAL OF TAX SUBSIDIES ENACTED BY THE ENERGY POLICY ACT OF 2005 FOR OIL AND GAS.
(a) Repeal- The following provisions, and amendments made by such provisions, of the Energy Policy Act of 2005 are hereby repealed:
(1) Section 1323 (relating to temporary expensing for equipment used in refining of liquid fuels).
(2) Section 1324 (relating to pass through to owners of deduction for capital costs incurred by small refiner cooperatives in complying with Environmental Protection Agency sulfur regulations).
(3) Section 1325 (relating to natural gas distribution lines treated as 15-year property).
(4) Section 1326 (relating to natural gas gathering lines treated as 7-year property).
(5) Section 1328 (relating to determination of small refiner exception to oil depletion deduction).
(6) Section 1329 (relating to amortization of geological and geophysical expenditures).
(b) Administration of Internal Revenue Code of 1986- The Internal Revenue Code of 1986 shall be applied and administered as if the provisions, and amendments, specified in subsection (a) had never been enacted.
SEC. 3. FARM DIESEL PURCHASES CREDIT.
(a) In General- Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to nonrefundable personal credits) is amended by inserting after section 25D the following new section:
`SEC. 25E. FARM DIESEL EXPENSES CREDIT.
`(a) Allowance of Credit- In the case of a qualified farmer, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 10 percent of the farm diesel expenses paid or incurred by the qualified farmer during the taxable year.
`(b) Qualified Farmer- For purposes of this section, with respect to a taxable year, the term `qualified farmer' means an individual--
`(1) who is actively engaged in farming,
`(2) whose contributions to a farming operation during the taxable year are at least commensurate with the individual's claimed share of the profits or losses of the farming operation, and
`(3) whose gross income from farming for the taxable year is at least 75 percent of the individual's total gross income from all sources for the taxable year.
`© Farm Diesel Expenses- For purposes of this section, the term `farm diesel expenses' means amounts paid or incurred for the purchase of diesel fuel that is described in section 4082(a) and is intended to be used for farming purposes.
`(d) Termination- This section shall not apply with respect to farm diesel expenses paid or incurred in taxable years beginning after December 31, 2016.'.
(b) Clerical Amendment- The table of items for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 25D the following new item:
`Sec. 25E. Farm diesel expenses credit.'.
© Effective Date- The amendments made by this section shall apply to farm diesel expenses paid or incurred in taxable years beginning after the date of the enactment of this Act.
SEC. 4. INCREASE IN SMALL AGRI-BIODIESEL PRODUCER CREDIT FOR QUALIFIED FARMERS.
(a) In General- Paragraph (5) of section 40A(b) of the Internal Revenue Code of 1986 (relating to small agri-biodiesel producer credit) is amended by adding at the end the following new subparagraph:
`(D) INCREASE FOR QUALIFIED FARMERS- In the case of an eligible small agri-biodiesel producer who is a qualified farmer, subparagraph (A) shall be applied by substituting `20 cents' for `10 cents'.'.
(b) Qualified Farmer- Subsection (e) of section 40A of such Code (relating to definitions and special rules for small agri-biodiesel producer credit) is amended by adding at the end the following new paragraph:
`(7) QUALIFIED FARMER- With respect to a taxable year, the term `qualified farmer' means an individual--
`(A) who is actively engaged in farming,
`(B) whose contributions to a farming operation during the taxable year are at least commensurate with the individual's claimed share of the profits or losses of the farming operation, and
`© whose gross income from farming for the taxable year is at least 75 percent of the individual's total gross income from all sources for the taxable year.'.
© Effective Date- The amendments by this section shall apply to qualified agri-biodiesel production after December 31, 2016, in taxable years beginning after such date.[/list]
SEC. 5. ALLOWANCE OF SMALL BIODIESEL PRODUCER CREDIT FOR QUALIFIED FARMERS.
(a) In General- Section 40A of the Internal Revenue Code of 1986 (relating to biodiesel and renewable diesel used as fuel) is amended--
(1) in subsection (a), by striking the period at the end of paragraph (3) and inserting `, plus' and by adding at the end the following new paragraph:
`(4) in the case of an eligible small biodiesel producer, the small biodiesel producer credit.',
(2) in subsection (b), by adding at the end the following new paragraph:
`(6) SMALL BIODIESEL PRODUCER CREDIT-
`(A) IN GENERAL- The small biodiesel producer credit of any eligible small biodiesel producer for any taxable year is 10 cents for each gallon of qualified biodiesel production of such producer.
`(B) QUALIFIED BIODIESEL PRODUCTION- For purposes of this paragraph, the term `qualified biodiesel production' means any biodiesel which is produced by an eligible small biodiesel producer, and which during the taxable year--