Tax Relief Act Signed, Extends Duties on Ethanol, Reinstates R&D Tax Credit
On December 17, 2010, the President signed into law H.R. 4853, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (Public Law 111-312). Among other things, P.L. 111-312 extends the additional duties on ethanol through December 31, 2011 and reinstates the research and development tax credit through December 31, 2011.
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Additional Duties on Ethanol Extended for One Year
P.L. 111-312 extends the effective dates for the additional duties on ethanol provided for in HTS 9901.00.50 and 9901.00.52 for an additional year through December 31, 2011 (from December 31, 2010).
According to HTS Chapter 99, Subchapter I, U.S. Note 1, the duties in HTS 9901.00.50 and 9901.00.52 are cumulative duties which apply in addition to the duties, if any, otherwise imposed on the articles involved. The duties apply only with respect to articles entered during period listed in the effective period column for each HTS number.
HTS 9901.00.50 (Ethyl alcohol)
HTS 9901.00.50 covers ethyl alcohol (provided for in HS 2207.10.60 and 2207.20) or any mixture containing such ethyl alcohol (provided for in HTS 2710 or 3824) if such ethyl alcohol or mixture is to be used as a fuel or in producing a mixture of gasoline and alcohol, a mixture of a special fuel and alcohol, or any other mixture to be used as fuel (including motor fuel provided for in HTS 2710.11.15, 2710.19.15 or 2710.19.21), or is suitable for any such uses.
The additional duty for HTS 9901.00.50 is 14.27 cents per liter (54 cents per gallon).
(Note that for HTS 9901.00.50 there is a duty-free tariff rate quota (TRQ) for qualifying ethyl alcohol or a mixture thereof from Caribbean countries and Insular Possessions as provided for in HTS Chapter 99, Subchapter I, U.S. Note 3. The TRQ consists of an aggregate limit that applies to importations of qualifying goods from the Caribbean and Insular Possessions and separate allocations for Costa Rica and El Salvador. (If Costa Rica or El Salvador fills their allocation, any further imports are charged to the aggregate limit while a balance is available.) According to CBP, the 2011 limits for the ethyl alcohol TRQ have not yet been announced.)
HTS 9901.00.52 (Ethyl tertiary-butyl ether)
HTS 9901.00.52 covers ethyl tertiary-butyl ether (ETBE, provided for in HTS 2909.19.18) and any mixture containing ETBE.
The additional duty for HTS 9901.00.52 is 5.99 cents per liter (22.67 cents per gallon).
R&D Tax Credit Temporarily Reinstated
H.R. 4853 also reinstates for two years the research and development tax credit (through December 31, 2011). (This tax credit expired on December 31, 2009.)
The President’s Export Council (PEC) recently recommended that a permanent R&D tax credit that is competitive with the Organization for Economic Cooperation and Development (OECD) be enacted.
See ITT’s Online Archives or 12/16/10 news, 10121626, for BP summary of the December 9, 2010 meeting of the PEC.
(See ITT’s Online Archives or 12/20/10 news, 10122021, for BP summary on the President’s signing of H.R. 4853.)
H.R. 4853 is available here.