Page:United States Statutes at Large Volume 119.djvu/1032

 119 STAT. 1014

Deadline.

VerDate 14-DEC-2004

08:19 Oct 26, 2006

PUBLIC LAW 109–58—AUG. 8, 2005

determining whether the requirements of paragraph (1)(D) are met. ‘‘(d) QUALIFIED REFINERY.—For purposes of this section, the term ‘qualified refinery’ means any refinery located in the United States which is designed to serve the primary purpose of processing liquid fuel from crude oil or qualified fuels (as defined in section 45K(c)). ‘‘(e) PRODUCTION CAPACITY.—The requirements of this subsection are met if the portion of the qualified refinery— ‘‘(1) enables the existing qualified refinery to increase total volume output (determined without regard to asphalt or lube oil) by 5 percent or more on an average daily basis, or ‘‘(2) enables the existing qualified refinery to process qualified fuels (as defined in section 45K(c)) at a rate which is equal to or greater than 25 percent of the total throughput of such qualified refinery on an average daily basis. ‘‘(f) INELIGIBLE REFINERY PROPERTY.—No deduction shall be allowed under subsection (a) for any qualified refinery property— ‘‘(1) the primary purpose of which is for use as a topping plant, asphalt plant, lube oil facility, crude or product terminal, or blending facility, or ‘‘(2) which is built solely to comply with consent decrees or projects mandated by Federal, State, or local governments. ‘‘(g) ELECTION TO ALLOCATE DEDUCTION TO COOPERATIVE OWNER.— ‘‘(1) IN GENERAL.—If— ‘‘(A) a taxpayer to which subsection (a) applies is an organization to which part I of subchapter T applies, and ‘‘(B) one or more persons directly holding an ownership interest in the taxpayer are organizations to which part I of subchapter T apply, the taxpayer may elect to allocate all or a portion of the deduction allowable under subsection (a) to such persons. Such allocation shall be equal to the person’s ratable share of the total amount allocated, determined on the basis of the person’s ownership interest in the taxpayer. The taxable income of the taxpayer shall not be reduced under section 1382 by reason of any amount to which the preceding sentence applies. ‘‘(2) FORM AND EFFECT OF ELECTION.—An election under paragraph (1) for any taxable year shall be made on a timely filed return for such year. Such election, once made, shall be irrevocable for such taxable year. ‘‘(3) WRITTEN NOTICE TO OWNERS.—If any portion of the deduction available under subsection (a) is allocated to owners under paragraph (1), the cooperative shall provide any owner receiving an allocation written notice of the amount of the allocation. Such notice shall be provided before the date on which the return described in paragraph (2) is due. ‘‘(h) REPORTING.—No deduction shall be allowed under subsection (a) to any taxpayer for any taxable year unless such taxpayer files with the Secretary a report containing such information with respect to the operation of the refineries of the taxpayer as the Secretary shall require.’’. (b) CONFORMING AMENDMENTS.— (1) Section 1245(a) is amended by inserting ‘‘179C,’’ after ‘‘179B,’’ both places it appears in paragraphs (2)(C) and (3)(C).

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