,,ii  #aagth ,,congress  #ast ,session  
,s4 #bbfb  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,june #bd1     
#bjba ,ms4 ,klobuchar 7for herself and  
,mr4 ,thune7 introduced the following   
bill2 which was read twice and referred 
to the ,committee on ,finance  ,a ,,bill
  ,to amend the ,internal ,revenue ,code
 of #aihf to establish an income tax    
credit for the sale or blending of      
certain fuels containing ethanol4  #a4  
,short title ,this ,act may be cited as 
the ,low ,carbon ,biofuel ,credit ,act4 
#b4 ,credit for sale or blending of     
ethanol fuels  7a7 ,in general ,subpart 
,d of part ,,iv of subchapter ,a of     
chapter #a of the ,internal ,revenue    
,code of #aihf is amended by adding at  
the end the following new section3      
#de,u4 ,credit for sale or blending of  
ethanol fuels  7a7 ,in general ,for     
purposes of section #ch1 the ethanol    
fuel credit determined under this       
section for any taxable year is an      
amount equal to-- 7#a7 in the case of an

 applicable taxpayer which is described 
in subsection 7b77#a77;,a7--  7,a7 for  
each gallon of ,e#ae blended by such    
taxpayer1 #e cents1 and  7,b7 for each  
gallon of fuel blended by such taxpayer 
which contains more than #ae volume     
percent ethanol1 #aj cents1 and  7#b7   
subject to subsection 7c71 in the case  
of an applicable taxpayer which is      
described in subsection 7b77#a77;,b7--  
7,a7 for each gallon of ,e#ae sold by   
such taxpayer1 #e cents1 and  7,b7 for  
each gallon of fuel sold by such        
taxpayer which contains more than #ae   
volume percent ethanol1 #aj cents4  7b7 
,definitions ,for purposes of this      
section--  7#a7 ,applicable taxpayer    
,the term applicable taxpayer means--   
7,a7 an oxygenate blender 7as defined in
 section #ajij4hj of title #dj1 ,code of
 ,federal ,regulations71 and  7,b7 a    
retailer 7as defined in paragraph 7#g7  
of section #aja of the ,petroleum       
,marketing ,practices ,act 7#ae         
,u4,s4,c4 #bhja774  7#b7 ,e#ae ,the term

 ,e#ae means gasoline that contains more
 than #ac and no more than #ae volume   
percent ethanol4  7c7 ,election  7#a7   
,in general  7,a7 ,election by oxygenate
 blender ,subsection 7a77#a7 shall apply
 with respect to any gallon of fuel     
described in such subsection only if the
 applicable taxpayer described in       
subsection 7b77#a77;,a7 elects to have  
such subsection apply with respect to   
such gallon of fuel4  7,b7 ,notification
 ,the applicable taxpayer described in  
subparagraph 7,a7 shall provide notice  
of their election with respect to any   
gallon of fuel described in such        
subparagraph to any applicable taxpayer 
described in subsection 7b77#a77;,b7 to 
which such fuel is sold1 with such      
notice to be provided on or before the  
date of such sale4  7#b7 ,credit for    
retailer available only if not claimed  
by oxygenate blender ,subsection 7a77#b7
 shall apply with respect to any gallon 
of fuel described in such subsection    
only if the applicable taxpayer         

described in subsection 7b77#a77;,a7 has
 not elected 7pursuant to paragraph     
7#a77 to apply subsection 7a77#a7 with  
respect to such gallon of fuel4  7d7    
,refundable credit for small retailers  
,for purposes of this title1 in the case
 of a retailer with not greater than #e 
retail locations at the close of the    
taxable year1 the credit allowed under  
subsection 7a77#b7 for such taxable year
 shall be treated as a credit allowable 
under subpart ,c 7and not allowable     
under this subpart7 for such taxable    
year4  7e7 ,transfer of credit  7#a7 ,in
 general ,subject to such regulations or
 other guidance as the ,secretary       
determines necessary or appropriate1 if1
 with respect to the credit allowed     
under subsection 7a7 for any taxable    
year1 the applicable taxpayer elects the
 application of this subsection for such
 taxable year with respect to all 7or   
any portion specified in such election7 
of such credit1 the eligible entity     
specified in such election1 and not the 

applicable taxpayer1 shall be treated as
 the taxpayer for purposes of this title
 with respect to such credit 7or such   
portion thereof74  7#b7 ,eligible entity
 ,for purposes of this subsection1 the  
term eligible entity means any person   
within the supply chain for fuel        
described in such section 7a74  4  7b7  
,credit ,to be part of general business 
credit ,subsection 7b7 of section #ch of
 the ,internal ,revenue ,code of #aihf  
is amended by striking plus at the end  
of paragraph 7#cb71 by striking the     
period at the end of paragraph 7#cc7 and
 inserting 1 plus1 and by adding at the 
end the following new paragraph3  7#cd7 
the credit for sale or blending of      
ethanol fuels under section #de,u to    
which subsection 7d7 of such section    
does not apply4  4  7c7 ,conforming     
amendment ,the table of sections for    
subpart ,d of part ,,iv of subchapter ,a
 of chapter #a of the ,internal ,revenue
 ,code of #aihf is amended by adding at 
the end the following new item3  ,sec4  

#de,u4 ,credit for sale or blending of  
ethanol fuels4  4  7d7 ,effective date  
,the amendments made by this section    
shall apply to fuel blended or sold     
after ,december #ca1 #bjba4