Page:United States Statutes at Large Volume 118.djvu/1512

 118 STAT. 1482 PUBLIC LAW 108–357—OCT. 22, 2004 ‘‘(1) IN GENERAL.—The aggregate credit determined under subsection (a) for any taxable year with respect to any facility shall not exceed— ‘‘(A) 25 percent of the qualified capital costs incurred by the small business refiner with respect to such facility, reduced by ‘‘(B) the aggregate credits determined under this sec tion for all prior taxable years with respect to such facility. ‘‘(2) REDUCED PERCENTAGE.—In the case of a small business refiner with average daily domestic refinery runs for the 1 year period ending on December 31, 2002, in excess of 155,000 barrels, the number of percentage points described in paragraph (1) shall be reduced (not below zero) by the product of such number (before the application of this paragraph) and the ratio of such excess to 50,000 barrels. ‘‘(c) DEFINITIONS AND SPECIAL RULE.—For purposes of this section— ‘‘(1) SMALL BUSINESS REFINER.—The term ‘small business refiner’ means, with respect to any taxable year, a refiner of crude oil— ‘‘(A) with respect to which not more than 1,500 individ uals are engaged in the refinery operations of the business on any day during such taxable year, and ‘‘(B) the average daily domestic refinery run or average retained production of which for all facilities of the taxpayer for the 1 year period ending on December 31, 2002, did not exceed 205,000 barrels. ‘‘(2) QUALIFIED CAPITAL COSTS.—The term ‘qualified capital costs’ means, with respect to any facility, those costs paid or incurred during the applicable period for compliance with the applicable EPA regulations with respect to such facility, including expenditures for the construction of new process oper ation units or the dismantling and reconstruction of existing process units to be used in the production of low sulfur diesel fuel, associated adjacent or offsite equipment (including tank age, catalyst, and power supply), engineering, construction period interest, and sitework. ‘‘(3) APPLICABLE EPA REGULATIONS.—The term ‘applicable EPA regulations’ means the Highway Diesel Fuel Sulfur Con trol Requirements of the Environmental Protection Agency. ‘‘(4) APPLICABLE PERIOD.—The term ‘applicable period’ means, with respect to any facility, the period beginning on January 1, 2003, and ending on the earlier of the date which is 1 year after the date on which the taxpayer must comply with the applicable EPA regulations with respect to such facility or December 31, 2009. ‘‘(5) LOW SULFUR DIESEL FUEL.—The term ‘low sulfur diesel fuel’ means diesel fuel with a sulfur content of 15 parts per million or less. ‘‘(d) REDUCTION IN BASIS.—For purposes of this subtitle, if a credit is determined under this section for any expenditure with respect to any property, the increase in basis of such property which would (but for this subsection) result from such expenditure shall be reduced by the amount of the credit so determined. ‘‘(e) SPECIAL RULE FOR DETERMINATION OF REFINERY RUNS.— For purposes this section and section 179B(b), in the calculation of average daily domestic refinery run or retained production, only

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