SECTION 3. CELLULOSIC

BIOFUEL PRODUCER CREDIT

(a) Overview. Section 15321 of the Food Act provides for a cellulosic biofuel producer credit under § 40 of the Code. The credit is allowed to a taxpayer for cellulosic biofuel that the taxpayer produces after December 31, 2008, and before January 1, 2013, and sells for use or uses for a purpose described in § 40(b)(6)(C).

(b) Definition . (1) Section 40(b)(6)(E) provides that cellulosic biofuel means any liquid fuel (other than low-proof alcohol) which—

(i) Is produced from any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis, and

(ii) Meets the registration requirements for fuels and fuel additives established by the Environmental Protection Agency under section 211 of the Clean Air Act (42 U.S.C. 7545).

(2) For purposes of paragraph (b)(1) of this section, low-proof alcohol is any alcohol with a proof of less than 150. The determination of the proof of any alcohol shall be made without regard to any added denaturants.

(c) Registration —(1) In general . Section 40(b)(6)(G) of the Code provides that the cellulosic biofuel credit under § 40 is not allowed with respect to any taxpayer unless the taxpayer is registered with the Secretary as a producer of cellulosic biofuel under § 4101.

(2) Application for Registration. Taxpayers shall apply for registration as a producer of cellulosic biofuel on Form 637, Application for Registration (For Certain Excise Tax Activities), in accordance with the instructions for that form. As provided in § 48.4101–1(a)(2) of the Manufacturers and Retailers Excise Tax Regulations, a person is registered under § 4101 only if the Service has issued a registration letter to the person.

(3) Requirements. The Service will register an applicant as a producer of cellulosic biofuel only if the Service—

(1) Determines that the applicant is a producer of cellulosic biofuel or is likely to become a producer of cellulosic biofuel within a reasonable time after being registered under § 4101; and

(2) Is satisfied with the filing, deposit, payment, reporting, and claim history for all federal taxes of the applicant

and any related person (as defined in § 48.4101–1(b)(5)).