CALCULATION OF VOLUME OF ALCOHOL FOR FUEL CREDITS.

SEC. 15332. CALCULATION OF VOLUME OF ALCOHOL FOR FUEL CREDITS.(a) In General.—Paragraph (4) of section 40(d) (relating to volume of alcohol) is amended by striking “5 percent” and inserting “2 percent”.(b) Conforming Amendment for Excise Tax Credit.—Section 6426(b) (relating to alcohol fuel mixture credit) is amended by redesignating paragraph (5) as paragraph (6) and by inserting after paragraph (4) the following new paragraph:“(5) Volume of alcohol.—For purposes of determining under subsection (a) the number of gallons of alcohol with respect to which a credit is allowable under subsection (a), the volume of alcohol shall include the volume of any denaturant (including gasoline) which is added under any formulas approved by the Secretary to the extent that such denaturants do not exceed 2 percent of the volume of such alcohol (including denaturants).”.(c) Effective Date.—The amendments made by this section shall apply to fuel sold or used after December 31, 2008.