ELIMINATION OF UNINTENDED APPLICATION OF CELLULOSIC BIOFUEL PRODUCER CREDIT.

SEC. 1408. ELIMINATION OF UNINTENDED APPLICATION OF CELLULOSIC BIOFUEL PRODUCER CREDIT. (a) [26 U.S.C. 40] 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) [26 U.S.C. 40 note] Effective Date.—The amendment made by this section shall apply to fuels sold or used on or after January 1, 2010.