Page:United States Statutes at Large Volume 120.djvu/2977

 120 STAT. 2946

PUBLIC LAW 109–432—DEC. 20, 2006 (1) by striking ‘‘January 1, 2008’’ both places it appears and inserting ‘‘January 1, 2009’’, and (2) by striking ‘‘December 31, 2007’’ both places it appears and inserting ‘‘December 31, 2008’’.

SEC. 208. SPECIAL RULE FOR QUALIFIED METHANOL OR ETHANOL FUEL. 26 USC 4041.

(a) EXTENSION.—Subparagraph (D) of section 4041(b)(2) is amended by striking ‘‘October 1, 2007’’ and inserting ‘‘January 1, 2009’’. (b) APPLICABLE BLENDER RATE.—Section 4041(b)(2)(C)(ii) is amended by striking ‘‘2007’’ and inserting ‘‘2008’’. (c) CLERICAL AMENDMENT.—The heading for section 4041(b)(2)(B) is amended to read as follows: ‘‘QUALIFIED METHANOL AND ETHANOL FUEL PRODUCED FROM COAL’’. SEC. 209. SPECIAL DEPRECIATION ALLOWANCE FOR CELLULOSIC BIOMASS ETHANOL PLANT PROPERTY.

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(a) IN GENERAL.—Section 168 (relating to accelerated cost recovery system) is amended by adding at the end the following: ‘‘(l) SPECIAL ALLOWANCE FOR CELLULOSIC BIOMASS ETHANOL PLANT PROPERTY.— ‘‘(1) ADDITIONAL ALLOWANCE.—In the case of any qualified cellulosic biomass ethanol plant property— ‘‘(A) the depreciation deduction provided by section 167(a) for the taxable year in which such property is placed in service shall include an allowance equal to 50 percent of the adjusted basis of such property, and ‘‘(B) the adjusted basis of such property shall be reduced by the amount of such deduction before computing the amount otherwise allowable as a depreciation deduction under this chapter for such taxable year and any subsequent taxable year. ‘‘(2) QUALIFIED CELLULOSIC BIOMASS ETHANOL PLANT PROPERTY.—The term ‘qualified cellulosic biomass ethanol plant property’ means property of a character subject to the allowance for depreciation— ‘‘(A) which is used in the United States solely to produce cellulosic biomass ethanol, ‘‘(B) the original use of which commences with the taxpayer after the date of the enactment of this subsection, ‘‘(C) which is acquired by the taxpayer by purchase (as defined in section 179(d)) after the date of the enactment of this subsection, but only if no written binding contract for the acquisition was in effect on or before the date of the enactment of this subsection, and ‘‘(D) which is placed in service by the taxpayer before January 1, 2013. ‘‘(3) CELLULOSIC BIOMASS ETHANOL.—For purposes of this subsection, the term ‘cellulosic biomass ethanol’ means ethanol produced by enzymatic hydrolysis of any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis. ‘‘(4) EXCEPTIONS.— ‘‘(A) ALTERNATIVE DEPRECIATION PROPERTY.—Such term shall not include any property described in section 168(k)(2)(D)(i).

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