Page:United States Statutes at Large Volume 94 Part 1.djvu/323

 PUBLIC LAW 96-223—APR. 2, 1980

94 STAT. 273

SEC. 232. ALCOHOL FUELS.

(a) EXTENSION OF EXEMPTION THROUGH 1992.— (1) GASOLINE.—Subsection (c) of section 4081 (relating to gaso- 26 USC 4081. line mixed with alcohol) is amended by adding at the end thereof the following new paragraph: "(4) TERMINATION.—Paragraph (1) shall not apply to any sale after December 31, 1992." (2) SPECIAL FUELS.—Subsection (k) of section 4041 (relating to 26 USC 404i. fuels containing alcohol) is amended by adding at the end thereof the following new paragraph: "(3) TERMINATION.—Paragraph (1) shall not apply to any sale or use after December 31, 1992. (3) TECHNICAL AMENDMENT.—Subsections (a)(2) and (b)(2) of the

Energy Tax Act of 1978 are each amended by striking out ", and 26 USC 4041 before October 1, 1984". '^°^' ^^^^ "°*^(b) CREDIT AGAINST INCOME TAX.—

(1) IN GENERAL.—Subpart A of part IV of subchapter A of chapter 1 (relating to credits allowed) is amended by inserting before section 45 the following new section: "SEC. 44E. ALCOHOL USED AS FUEL.

"(a) GENERAL RULE.—There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of— "(1) the alcohol mixture credit, plus "(2) the alcohol credit. "(b)

DEFINITION OF ALCOHOL MIXTURE CREDIT AND ALCOHOL

CREDIT.—For purposes of this section— "(1) ALCOHOL MIXTURE CREDFT.—

"(A) IN GENERAL.—The alcohol mixture credit of any taxpayer for any taxable year is 40 cents for each gallon of alcohol used by the taxpayer in the production of a qualified mixture. "(B) QUALIFIED MIXTURE.—The term 'qualified mixture' means a mixture of alcohol and gasoline or of alcohol and a special fuel which— "(i) is sold by the taxpayer producing such mixture to any person for use as a fuel, or "(ii) is used as a fuel by the taxpayer producing such mixture. "(C) SALE OR USE MUST BE IN TRADE OR BUSINESS, ETC.—

Alcohol used in the production of a qualified mixture shall be taken into account— "(i) only if the sale or use described in subparagraph (B) is in a trade or business of the taxpayer, and "(ii) for the taxable year in which such sale or use occurs. "(D)

CASUAL OFF-FARM PRODUCTION NOT ELIGIBLE.—No

credit shall be allowed under this section with respect to any casual off-farm production of a qualified mixture. "(2) ALCOHOL CREDIT.—

"(A) IN GENERAL.—The alcohol credit of any taxpayer for any taxable year is 40 cents for each gallon of alcohol which is not in a mixture with gasoline or a special fuel (other than any denaturant) and which during the taxable year— "(i) is used by the taxpayer as a fuel in a trade or business, or

26 USC 44E.

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