CLARIFICATION THAT CREDITS FOR FUEL ARE DESIGNED TO PROVIDE AN INCENTIVE FOR UNITED STATES PRODUCTION.

SEC. 203. CLARIFICATION THAT CREDITS FOR FUEL ARE DESIGNED TO PROVIDE AN INCENTIVE FOR UNITED STATES PRODUCTION.(a) Alcohol Fuels Credit.—Subsection (d) of section 40 is amended by adding at the end the following new paragraph:“(7) Limitation to alcohol with connection to the united states.—No credit shall be determined under this section with respect to any alcohol which is produced outside the United States for use as a fuel outside the United States. For purposes of this paragraph, the term ‘United States’ includes any possession of the United States.”.(b) Biodiesel Fuels Credit.—Subsection (d) of section 40A is amended by adding at the end the following new paragraph:“(5) Limitation to biodiesel with connection to the united states.—No credit shall be determined under this section with respect to any biodiesel which is produced outside the United States for use as a fuel outside the United States. 122 STAT. 3834 For purposes of this paragraph, the term ‘United States’ includes any possession of the United States.”.(c) Excise Tax Credit.—(1) In general.—Section 6426 is amended by adding at the end the following new subsection:“(i) Limitation to Fuels With Connection to the United States.—“(1) Alcohol.—No credit shall be determined under this section with respect to any alcohol which is produced outside the United States for use as a fuel outside the United States.“(2) Biodiesel and alternative fuels.—No credit shall be determined under this section with respect to any biodiesel or alternative fuel which is produced outside the United States for use as a fuel outside the United States.For purposes of this subsection, the term ‘United States’ includes any possession of the United States.”.(2) Conforming amendment.—Subsection (e) of section 6427 is amended by redesignating paragraph (5) as paragraph (6) and by inserting after paragraph (4) the following new paragraph:“(5) Limitation to fuels with connection to the united states.—No amount shall be payable under paragraph (1) or (2) with respect to any mixture or alternative fuel if credit is not allowed with respect to such mixture or alternative fuel by reason of section 6426(i).”.(d) Effective Date.—The amendments made by this section shall apply to claims for credit or payment made on or after May 15, 2008.