ELIMINATION OF UNINTENDED APPLICATION OF CELLULOSIC BIOFUEL PRODUCER CREDIT.

SEC. 1408. ELIMINATION OF UNINTENDED APPLICATION OF CELLULOSIC BIOFUEL PRODUCER CREDIT.(a) In General.—Section 40(b)(6)(E) of the Internal Revenue Code of 1986 is amended by adding at the end the following new clause:“(iii) Exclusion of unprocessed fuels.—The term ‘cellulosic biofuel’ shall not include any fuel if—“(I) more than 4 percent of such fuel (determined by weight) is any combination of water and sediment, or“(II) the ash content of such fuel is more than 1 percent (determined by weight).”.(b) Effective Date.—The amendment made by this section shall apply to fuels sold or used on or after January 1, 2010.