Version	Word Count	Changes From Previous Version	Percent Change
Introduced in House	17,957	n/a	n/a
Engrossed in House	17,950	3	3%
Referred in Senate	17,856	5 Show Changes Hide Changes	0%

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HR 5351 EHRFSCommentsClose CommentsPermalink

110th CONGRESS 2d Session H. R. 5351 AN ACT

To amend the Internal Revenue Code of 1986 to provide tax incentives for the production of renewable energy and energy conservation.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as the `Renewable Energy and Energy Conservation Tax Act of 2008'.CommentsClose CommentsPermalink





(b) Amendment of 1986 Code- Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.CommentsClose CommentsPermalink





(c) Table of Contents- The table of contents of this Act is as follows:CommentsClose CommentsPermalink





Sec. 1. Short title; amendment of 1986 Code; table of contents.CommentsClose CommentsPermalink

TITLE I--PRODUCTION INCENTIVES

Sec. 101. Extension and modification of renewable energy credit.CommentsClose CommentsPermalink





Sec. 102. Production credit for electricity produced from marine renewables.CommentsClose CommentsPermalink





Sec. 103. Extension and modification of energy credit.CommentsClose CommentsPermalink





Sec. 104. New clean renewable energy bonds.CommentsClose CommentsPermalink





Sec. 105. Extension and modification of special rule to implement FERC and State electric restructuring policy.CommentsClose CommentsPermalink





Sec. 106. Extension and modification of credit for residential energy efficient property.CommentsClose CommentsPermalink

TITLE II--CONSERVATION

Subtitle A--Transportation

Part 1--Vehicles

Sec. 201. Credit for plug-in hybrid vehicles.CommentsClose CommentsPermalink





Sec. 202. Extension and modification of alternative fuel vehicle refueling property credit.CommentsClose CommentsPermalink





Sec. 203. Modification of limitation on automobile depreciation.CommentsClose CommentsPermalink

Part 2--Fuels

Sec. 211. Extension and modification of credits for biodiesel and renewable diesel.CommentsClose CommentsPermalink





Sec. 212. Clarification that credits for fuel are designed to provide an incentive for United States production.CommentsClose CommentsPermalink





Sec. 213. Credit for production of cellulosic alcohol.CommentsClose CommentsPermalink

Part 3--Other Transportation Incentives

Sec. 221. Extension of transportation fringe benefit to bicycle commuters.CommentsClose CommentsPermalink





Sec. 222. Restructuring of New York Liberty Zone tax credits.CommentsClose CommentsPermalink

Subtitle B--Other Conservation Provisions

Sec. 231. Qualified energy conservation bonds.CommentsClose CommentsPermalink





Sec. 232. Extension and modification of credit for nonbusiness energy property.CommentsClose CommentsPermalink





Sec. 233. Extension of energy efficient commercial buildings deduction.CommentsClose CommentsPermalink





Sec. 234. Modifications of energy efficient appliance credit for appliances produced after 2007.CommentsClose CommentsPermalink





Sec. 235. Five-year applicable recovery period for depreciation of qualified energy management devices.CommentsClose CommentsPermalink

TITLE III--REVENUE PROVISIONS

Sec. 301. Limitation of deduction for income attributable to domestic production of oil, gas, or primary products thereof.CommentsClose CommentsPermalink





Sec. 302. Clarification of determination of foreign oil and gas extraction income.CommentsClose CommentsPermalink





Sec. 303. Time for payment of corporate estimated taxes.CommentsClose CommentsPermalink

TITLE IV--OTHER PROVISIONS

Subtitle A--Studies

Sec. 401. Carbon audit of the tax code.CommentsClose CommentsPermalink





Sec. 402. Comprehensive study of biofuels.CommentsClose CommentsPermalink

Subtitle B--Application of Certain Labor Standards on Projects Financed Under Tax Credit Bonds

Sec. 411. Application of certain labor standards on projects financed under tax credit bonds.CommentsClose CommentsPermalink

TITLE I--PRODUCTION INCENTIVES

SEC. 101. EXTENSION AND MODIFICATION OF RENEWABLE ENERGY CREDIT.

(a) Extension of Credit- Each of the following provisions of section 45(d) (relating to qualified facilities) is amended by striking `January 1, 2009' and inserting `January 1, 2012':CommentsClose CommentsPermalink





(1) Paragraph (1).CommentsClose CommentsPermalink





(2) Clauses (i) and (ii) of paragraph (2)(A).CommentsClose CommentsPermalink





(3) Clauses (i)(I) and (ii) of paragraph (3)(A).CommentsClose CommentsPermalink





(4) Paragraph (4).CommentsClose CommentsPermalink





(5) Paragraph (5).CommentsClose CommentsPermalink





(6) Paragraph (6).CommentsClose CommentsPermalink





(7) Paragraph (7).CommentsClose CommentsPermalink





(8) Subparagraphs (A) and (B) of paragraph (9).CommentsClose CommentsPermalink





(b) Modification of Credit Phaseout-CommentsClose CommentsPermalink





(1) REPEAL OF PHASEOUT- Subsection (b) of section 45 is amended--CommentsClose CommentsPermalink





(A) by striking paragraph (1), andCommentsClose CommentsPermalink





(B) by striking `the 8 cent amount in paragraph (1),' in paragraph (2) thereof.CommentsClose CommentsPermalink





(2) LIMITATION BASED ON INVESTMENT IN FACILITY- Subsection (b) of section 45 is amended by inserting before paragraph (2) the following new paragraph:CommentsClose CommentsPermalink





`(1) LIMITATION BASED ON INVESTMENT IN FACILITY-CommentsClose CommentsPermalink





`(A) IN GENERAL- In the case of any qualified facility originally placed in service after December 31, 2009, the amount of the credit determined under subsection (a) for any taxable year with respect to electricity produced at such facility shall not exceed the product of--CommentsClose CommentsPermalink





`(i) the applicable percentage with respect to such facility, multiplied byCommentsClose CommentsPermalink





`(ii) the eligible basis of such facility.CommentsClose CommentsPermalink





`(B) CARRYFORWARD OF UNUSED LIMITATION AND EXCESS CREDIT-CommentsClose CommentsPermalink





`(i) UNUSED LIMITATION- If the limitation imposed under subparagraph (A) with respect to any facility for any taxable year exceeds the prelimitation credit for such facility for such taxable year, the limitation imposed under subparagraph (A) with respect to such facility for the succeeding taxable year shall be increased by the amount of such excess.CommentsClose CommentsPermalink





`(ii) EXCESS CREDIT- If the prelimitation credit with respect to any facility for any taxable year exceeds the limitation imposed under subparagraph (A) with respect to such facility for such taxable year, the credit determined under subsection (a) with respect to such facility for the succeeding taxable year (determined before the application of subparagraph (A) for such succeeding taxable year) shall be increased by the amount of such excess. With respect to any facility, no amount may be carried forward under this clause to any taxable year beginning after the 10-year period described in subsection (a)(2)(A)(ii) with respect to such facility.CommentsClose CommentsPermalink





`(iii) PRELIMITATION CREDIT- The term `prelimitation credit' with respect to any facility for a taxable year means the credit determined under subsection (a) with respect to such facility for such taxable year, determined without regard to subparagraph (A) and after taking into account any increase for such taxable year under clause (ii).CommentsClose CommentsPermalink





`(C) APPLICABLE PERCENTAGE- For purposes of this paragraph--CommentsClose CommentsPermalink





`(i) IN GENERAL- The term `applicable percentage' means, with respect to any facility, the appropriate percentage prescribed by the Secretary for the month in which such facility is originally placed in service.CommentsClose CommentsPermalink





`(ii) METHOD OF PRESCRIBING APPLICABLE PERCENTAGES- The applicable percentages prescribed by the Secretary for any month under clause (i) shall be percentages which yield over a 10-year period amounts of limitation under subparagraph (A) which have a present value equal to 35 percent of the eligible basis of the facility.CommentsClose CommentsPermalink





`(iii) METHOD OF DISCOUNTING- The present value under clause (ii) shall be determined--CommentsClose CommentsPermalink





`(I) as of the last day of the 1st year of the 10-year period referred to in clause (ii),CommentsClose CommentsPermalink





`(II) by using a discount rate equal to the greater of 110 percent of the Federal long-term rate as in effect under section 1274(d) for the month preceding the month for which the applicable percentage is being prescribed, or 4.5 percent, andCommentsClose CommentsPermalink





`(III) by taking into account the limitation under subparagraph (A) for any year on the last day of such year.CommentsClose CommentsPermalink





`(D) ELIGIBLE BASIS- For purposes of this paragraph--CommentsClose CommentsPermalink





`(i) IN GENERAL- The term `eligible basis' means, with respect to any facility, the sum of--CommentsClose CommentsPermalink





`(I) the basis of such facility determined as of the time that such facility is originally placed in service, andCommentsClose CommentsPermalink





`(II) the portion of the basis of any shared qualified property which is properly allocable to such facility under clause (ii).CommentsClose CommentsPermalink





`(ii) RULES FOR ALLOCATION- For purposes of subclause (II) of clause (i), the basis of shared qualified property shall be allocated among all qualified facilities which are projected to be placed in service and which require utilization of such property in proportion to projected generation from such facilities.CommentsClose CommentsPermalink





`(iii) SHARED QUALIFIED PROPERTY- For purposes of this paragraph, the term `shared qualified property' means, with respect to any facility, any property described in section 168(e)(3)(B)(vi)--CommentsClose CommentsPermalink





`(I) which a qualified facility will require for utilization of such facility, andCommentsClose CommentsPermalink





`(II) which is not a qualified facility.CommentsClose CommentsPermalink





`(iv) SPECIAL RULE RELATING TO GEOTHERMAL FACILITIES- In the case of any qualified facility using geothermal energy to produce electricity, the basis of such facility for purposes of this paragraph shall be determined as though intangible drilling and development costs described in section 263(c) were capitalized rather than expensed.CommentsClose CommentsPermalink





`(E) SPECIAL RULE FOR FIRST AND LAST YEAR OF CREDIT PERIOD- In the case of any taxable year any portion of which is not within the 10-year period described in subsection (a)(2)(A)(ii) with respect to any facility, the amount of the limitation under subparagraph (A) with respect to such facility shall be reduced by an amount which bears the same ratio to the amount of such limitation (determined without regard to this subparagraph) as such portion of the taxable year which is not within such period bears to the entire taxable year.CommentsClose CommentsPermalink





`(F) ELECTION TO TREAT ALL FACILITIES PLACED IN SERVICE IN A YEAR AS 1 FACILITY- At the election of the taxpayer, all qualified facilities which are part of the same project and which are placed in service during the same calendar year shall be treated for purposes of this section as 1 facility which is placed in service at the mid-point of such year or the first day of the following calendar year.'.CommentsClose CommentsPermalink





(c) Trash Facility Clarification- Paragraph (7) of section 45(d) is amended--CommentsClose CommentsPermalink





(1) by striking `facility which burns' and inserting `facility (other than a facility described in paragraph (6)) which uses', andCommentsClose CommentsPermalink





(2) by striking `COMBUSTION'.CommentsClose CommentsPermalink





(d) Expansion of Biomass Facilities-CommentsClose CommentsPermalink





(1) OPEN-LOOP BIOMASS FACILITIES- Paragraph (3) of section 45(d) is amended by redesignating subparagraph (B) as subparagraph (C) and by inserting after subparagraph (A) the following new subparagraph:CommentsClose CommentsPermalink





`(B) EXPANSION OF FACILITY- Such term shall include a new unit placed in service after the date of the enactment of this subparagraph in connection with a facility described in subparagraph (A), but only to the extent of the increased amount of electricity produced at the facility by reason of such new unit.'.CommentsClose CommentsPermalink





(2) CLOSED-LOOP BIOMASS FACILITIES- Paragraph (2) of section 45(d) is amended by redesignating subparagraph (B) as subparagraph (C) and inserting after subparagraph (A) the following new subparagraph:CommentsClose CommentsPermalink





`(B) EXPANSION OF FACILITY- Such term shall include a new unit placed in service after the date of the enactment of this subparagraph in connection with a facility described in subparagraph (A)(i), but only to the extent of the increased amount of electricity produced at the facility by reason of such new unit.'.CommentsClose CommentsPermalink





(e) Effective Date-CommentsClose CommentsPermalink





(1) IN GENERAL- Except as otherwise provided in this subsection, the amendments made by this section shall apply to property originally placed in service after December 31, 2008.CommentsClose CommentsPermalink





(2) REPEAL OF CREDIT PHASEOUT- The amendments made by subsection (b)(1) shall apply to taxable years ending after December 31, 2008.CommentsClose CommentsPermalink





(3) LIMITATION BASED ON INVESTMENT IN FACILITY- The amendment made by subsection (b)(2) shall apply to property originally placed in service after December 31, 2009.CommentsClose CommentsPermalink





(4) TRASH FACILITY CLARIFICATION- The amendments made by subsection (c) shall apply to electricity produced and sold after the date of the enactment of this Act.CommentsClose CommentsPermalink





(5) EXPANSION OF BIOMASS FACILITIES- The amendments made by subsection (d) shall apply to property placed in service after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 102. PRODUCTION CREDIT FOR ELECTRICITY PRODUCED FROM MARINE RENEWABLES.

(a) In General- Paragraph (1) of section 45(c) (relating to resources) is amended by striking `and' at the end of subparagraph (G), by striking the period at the end of subparagraph (H) and inserting `, and', and by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





`(I) marine and hydrokinetic renewable energy.'.CommentsClose CommentsPermalink





(b) Marine Renewables- Subsection (c) of section 45 is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(10) MARINE AND HYDROKINETIC RENEWABLE ENERGY-CommentsClose CommentsPermalink





`(A) IN GENERAL- The term `marine and hydrokinetic renewable energy' means energy derived from--CommentsClose CommentsPermalink





`(i) waves, tides, and currents in oceans, estuaries, and tidal areas,CommentsClose CommentsPermalink





`(ii) free flowing water in rivers, lakes, and streams,CommentsClose CommentsPermalink





`(iii) free flowing water in an irrigation system, canal, or other man-made channel, including projects that utilize nonmechanical structures to accelerate the flow of water for electric power production purposes, orCommentsClose CommentsPermalink





`(iv) differentials in ocean temperature (ocean thermal energy conversion).CommentsClose CommentsPermalink





`(B) EXCEPTIONS- Such term shall not include any energy which is derived from any source which utilizes a dam, diversionary structure (except as provided in subparagraph (A)(iii)), or impoundment for electric power production purposes.'.CommentsClose CommentsPermalink





(c) Definition of Facility- Subsection (d) of section 45 is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(11) MARINE AND HYDROKINETIC RENEWABLE ENERGY FACILITIES- In the case of a facility producing electricity from marine and hydrokinetic renewable energy, the term `qualified facility' means any facility owned by the taxpayer--CommentsClose CommentsPermalink





`(A) which has a nameplate capacity rating of at least 150 kilowatts, andCommentsClose CommentsPermalink





`(B) which is originally placed in service on or after the date of the enactment of this paragraph and before January 1, 2012.'.CommentsClose CommentsPermalink





(d) Credit Rate- Subparagraph (A) of section 45(b)(4) is amended by striking `or (9)' and inserting `(9), or (11)'.CommentsClose CommentsPermalink





(e) Coordination With Small Irrigation Power- Paragraph (5) of section 45(d), as amended by section 101(a), is amended by striking `January 1, 2012' and inserting `the date of the enactment of paragraph (11)'.CommentsClose CommentsPermalink





(f) Effective Date- The amendments made by this section shall apply to electricity produced and sold after the date of the enactment of this Act, in taxable years ending after such date.CommentsClose CommentsPermalink

SEC. 103. EXTENSION AND MODIFICATION OF ENERGY CREDIT.

(a) Extension of Credit-CommentsClose CommentsPermalink





(1) SOLAR ENERGY PROPERTY- Paragraphs (2)(A)(i)(II) and (3)(A)(ii) of section 48(a) (relating to energy credit) are each amended by striking `January 1, 2009' and inserting `January 1, 2017'.CommentsClose CommentsPermalink





(2) FUEL CELL PROPERTY- Subparagraph (E) of section 48(c)(1) (relating to qualified fuel cell property) is amended by striking `December 31, 2008' and inserting `December 31, 2016'.CommentsClose CommentsPermalink





(b) Allowance of Energy Credit Against Alternative Minimum Tax- Subparagraph (B) of section 38(c)(4) (relating to specified credits) is amended by striking `and' at the end of clause (iii), by striking the period at the end of clause (iv) and inserting `, and', and by adding at the end the following new clause:CommentsClose CommentsPermalink





`(v) the credit determined under section 46 to the extent that such credit is attributable to the energy credit determined under section 48.'.CommentsClose CommentsPermalink





(c) Increase of Credit Limitation for Fuel Cell Property- Subparagraph (B) of section 48(c)(1) is amended by striking `$500' and inserting `$1,500'.CommentsClose CommentsPermalink





(d) Public Electric Utility Property Taken Into Account-CommentsClose CommentsPermalink





(1) IN GENERAL- Paragraph (3) of section 48(a) is amended by striking the second sentence thereof.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENTS-CommentsClose CommentsPermalink





(A) Paragraph (1) of section 48(c) is amended by striking subparagraph (D) and redesignating subparagraph (E) as subparagraph (D).CommentsClose CommentsPermalink





(B) Paragraph (2) of section 48(c) is amended by striking subparagraph (D) and redesignating subparagraph (E) as subparagraph (D).CommentsClose CommentsPermalink





(e) Effective Date-CommentsClose CommentsPermalink





(1) IN GENERAL- Except as otherwise provided in this subsection, the amendments made by this section shall take effect on the date of the enactment of this Act.CommentsClose CommentsPermalink





(2) ALLOWANCE AGAINST ALTERNATIVE MINIMUM TAX- The amendments made by subsection (b) shall apply to credits determined under section 46 of the Internal Revenue Code of 1986 in taxable years beginning after the date of the enactment of this Act and to carrybacks of such credits.CommentsClose CommentsPermalink





(3) INCREASE IN LIMITATION FOR FUEL CELL PROPERTY- The amendment made by subsection (c) shall apply to periods after the date of the enactment of this Act, in taxable years ending after such date, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).CommentsClose CommentsPermalink





(4) PUBLIC ELECTRIC UTILITY PROPERTY- The amendments made by subsection (d) shall apply to periods after February 13, 2008, in taxable years ending after such date, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).CommentsClose CommentsPermalink

SEC. 104. NEW CLEAN RENEWABLE ENERGY BONDS.

(a) In General- Part IV of subchapter A of chapter 1 (relating to credits against tax) is amended by adding at the end the following new subpart:CommentsClose CommentsPermalink

`Subpart I--Qualified Tax Credit Bonds

`Sec. 54A. Credit to holders of qualified tax credit bonds.CommentsClose CommentsPermalink





`Sec. 54B. New clean renewable energy bonds.CommentsClose CommentsPermalink

`SEC. 54A. CREDIT TO HOLDERS OF QUALIFIED TAX CREDIT BONDS.

`(a) Allowance of Credit- If a taxpayer holds a qualified tax credit bond on one or more credit allowance dates of the bond during any taxable year, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the credits determined under subsection (b) with respect to such dates.CommentsClose CommentsPermalink





`(b) Amount of Credit-CommentsClose CommentsPermalink





`(1) IN GENERAL- The amount of the credit determined under this subsection with respect to any credit allowance date for a qualified tax credit bond is 25 percent of the annual credit determined with respect to such bond.CommentsClose CommentsPermalink





`(2) ANNUAL CREDIT- The annual credit determined with respect to any qualified tax credit bond is the product of--CommentsClose CommentsPermalink





`(A) the applicable credit rate, multiplied byCommentsClose CommentsPermalink





`(B) the outstanding face amount of the bond.CommentsClose CommentsPermalink





`(3) APPLICABLE CREDIT RATE- For purposes of paragraph (2), the applicable credit rate is the rate which the Secretary estimates will permit the issuance of qualified tax credit bonds with a specified maturity or redemption date without discount and without interest cost to the qualified issuer. The applicable credit rate with respect to any qualified tax credit bond shall be determined as of the first day on which there is a binding, written contract for the sale or exchange of the bond.CommentsClose CommentsPermalink





`(4) SPECIAL RULE FOR ISSUANCE AND REDEMPTION- In the case of a bond which is issued during the 3-month period ending on a credit allowance date, the amount of the credit determined under this subsection with respect to such credit allowance date shall be a ratable portion of the credit otherwise determined based on the portion of the 3-month period during which the bond is outstanding. A similar rule shall apply when the bond is redeemed or matures.CommentsClose CommentsPermalink





`(c) Limitation Based on Amount of Tax-CommentsClose CommentsPermalink





`(1) IN GENERAL- The credit allowed under subsection (a) for any taxable year shall not exceed the excess of--CommentsClose CommentsPermalink





`(A) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, overCommentsClose CommentsPermalink





`(B) the sum of the credits allowable under this part (other than subpart C and this subpart).CommentsClose CommentsPermalink





`(2) CARRYOVER OF UNUSED CREDIT- If the credit allowable under subsection (a) exceeds the limitation imposed by paragraph (1) for such taxable year, such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such taxable year (determined before the application of paragraph (1) for such succeeding taxable year).CommentsClose CommentsPermalink





`(d) Qualified Tax Credit Bond- For purposes of this section--CommentsClose CommentsPermalink





`(1) QUALIFIED TAX CREDIT BOND- The term `qualified tax credit bond' means a new clean renewable energy bond which is part of an issue that meets the requirements of paragraphs (2), (3), (4), (5), and (6).CommentsClose CommentsPermalink





`(2) SPECIAL RULES RELATING TO EXPENDITURES-CommentsClose CommentsPermalink





`(A) IN GENERAL- An issue shall be treated as meeting the requirements of this paragraph if, as of the date of issuance, the issuer reasonably expects--CommentsClose CommentsPermalink





`(i) 100 percent or more of the available project proceeds to be spent for 1 or more qualified purposes within the 3-year period beginning on such date of issuance, andCommentsClose CommentsPermalink





`(ii) a binding commitment with a third party to spend at least 10 percent of such available project proceeds will be incurred within the 6-month period beginning on such date of issuance.CommentsClose CommentsPermalink





`(B) FAILURE TO SPEND REQUIRED AMOUNT OF BOND PROCEEDS WITHIN 3 YEARS-CommentsClose CommentsPermalink





`(i) IN GENERAL- To the extent that less than 100 percent of the available project proceeds of the issue are expended by the close of the expenditure period for 1 or more qualified purposes, the issuer shall redeem all of the nonqualified bonds within 90 days after the end of such period. For purposes of this paragraph, the amount of the nonqualified bonds required to be redeemed shall be determined in the same manner as under section 142.CommentsClose CommentsPermalink





`(ii) EXPENDITURE PERIOD- For purposes of this subpart, the term `expenditure period' means, with respect to any issue, the 3-year period beginning on the date of issuance. Such term shall include any extension of such period under clause (iii).CommentsClose CommentsPermalink





`(iii) EXTENSION OF PERIOD- Upon submission of a request prior to the expiration of the expenditure period (determined without regard to any extension under this clause), the Secretary may extend such period if the issuer establishes that the failure to expend the proceeds within the original expenditure period is due to reasonable cause and the expenditures for qualified purposes will continue to proceed with due diligence.CommentsClose CommentsPermalink





`(C) QUALIFIED PURPOSE- For purposes of this paragraph, the term `qualified purpose' means a purpose specified in section 54B(a)(1).CommentsClose CommentsPermalink





`(D) REIMBURSEMENT- For purposes of this subtitle, available project proceeds of an issue shall be treated as spent for a qualified purpose if such proceeds are used to reimburse the issuer for amounts paid for a qualified purpose after the date that the Secretary makes an allocation of bond limitation with respect to such issue, but only if--CommentsClose CommentsPermalink





`(i) prior to the payment of the original expenditure, the issuer declared its intent to reimburse such expenditure with the proceeds of a qualified tax credit bond,CommentsClose CommentsPermalink





`(ii) not later than 60 days after payment of the original expenditure, the issuer adopts an official intent to reimburse the original expenditure with such proceeds, andCommentsClose CommentsPermalink





`(iii) the reimbursement is made not later than 18 months after the date the original expenditure is paid.CommentsClose CommentsPermalink





`(3) REPORTING- An issue shall be treated as meeting the requirements of this paragraph if the issuer of qualified tax credit bonds submits reports similar to the reports required under section 149(e).CommentsClose CommentsPermalink





`(4) SPECIAL RULES RELATING TO ARBITRAGE-CommentsClose CommentsPermalink





`(A) IN GENERAL- An issue shall be treated as meeting the requirements of this paragraph if the issuer satisfies the requirements of section 148 with respect to the proceeds of the issue.CommentsClose CommentsPermalink





`(B) SPECIAL RULE FOR INVESTMENTS DURING EXPENDITURE PERIOD- An issue shall not be treated as failing to meet the requirements of subparagraph (A) by reason of any investment of available project proceeds during the expenditure period.CommentsClose CommentsPermalink





`(C) SPECIAL RULE FOR RESERVE FUNDS- An issue shall not be treated as failing to meet the requirements of subparagraph (A) by reason of any fund which is expected to be used to repay such issue if--CommentsClose CommentsPermalink





`(i) such fund is funded at a rate not more rapid than equal annual installments,CommentsClose CommentsPermalink





`(ii) such fund is funded in a manner reasonably expected to result in an amount not greater than an amount necessary to repay the issue, andCommentsClose CommentsPermalink





`(iii) the yield on such fund is not greater than the discount rate determined under paragraph (5)(B) with respect to the issue.CommentsClose CommentsPermalink





`(5) MATURITY LIMITATION-CommentsClose CommentsPermalink





`(A) IN GENERAL- An issue shall not be treated as meeting the requirements of this paragraph if the maturity of any bond which is part of such issue exceeds the maximum term determined by the Secretary under subparagraph (B).CommentsClose CommentsPermalink





`(B) MAXIMUM TERM- During each calendar month, the Secretary shall determine the maximum term permitted under this paragraph for bonds issued during the following calendar month. Such maximum term shall be the term which the Secretary estimates will result in the present value of the obligation to repay the principal on the bond being equal to 50 percent of the face amount of such bond. Such present value shall be determined using as a discount rate the average annual interest rate of tax-exempt obligations having a term of 10 years or more which are issued during the month. If the term as so determined is not a multiple of a whole year, such term shall be rounded to the next highest whole year.CommentsClose CommentsPermalink





`(6) PROHIBITION ON FINANCIAL CONFLICTS OF INTEREST- An issue shall be treated as meeting the requirements of this paragraph if the issuer certifies that--CommentsClose CommentsPermalink





`(A) applicable State and local law requirements governing conflicts of interest are satisfied with respect to such issue, andCommentsClose CommentsPermalink





`(B) if the Secretary prescribes additional conflicts of interest rules governing the appropriate Members of Congress, Federal, State, and local officials, and their spouses, such additional rules are satisfied with respect to such issue.CommentsClose CommentsPermalink





`(e) Other Definitions- For purposes of this subchapter--CommentsClose CommentsPermalink





`(1) CREDIT ALLOWANCE DATE- The term `credit allowance date' means--CommentsClose CommentsPermalink





`(A) March 15,CommentsClose CommentsPermalink





`(B) June 15,CommentsClose CommentsPermalink





`(C) September 15, andCommentsClose CommentsPermalink





`(D) December 15.CommentsClose CommentsPermalink





Such term includes the last day on which the bond is outstanding.CommentsClose CommentsPermalink





`(2) BOND- The term `bond' includes any obligation.CommentsClose CommentsPermalink





`(3) STATE- The term `State' includes the District of Columbia and any possession of the United States.CommentsClose CommentsPermalink





`(4) AVAILABLE PROJECT PROCEEDS- The term `available project proceeds' means--CommentsClose CommentsPermalink





`(A) the excess of--CommentsClose CommentsPermalink





`(i) the proceeds from the sale of an issue, overCommentsClose CommentsPermalink





`(ii) the issuance costs financed by the issue (to the extent that such costs do not exceed 2 percent of such proceeds), andCommentsClose CommentsPermalink





`(B) the proceeds from any investment of the excess described in subparagraph (A).CommentsClose CommentsPermalink





`(f) Credit Treated as Interest- For purposes of this subtitle, the credit determined under subsection (a) shall be treated as interest which is includible in gross income.CommentsClose CommentsPermalink





`(g) S Corporations and Partnerships- In the case of a tax credit bond held by an S corporation or partnership, the allocation of the credit allowed by this section to the shareholders of such corporation or partners of such partnership shall be treated as a distribution.CommentsClose CommentsPermalink





`(h) Bonds Held by Regulated Investment Companies and Real Estate Investment Trusts- If any qualified tax credit bond is held by a regulated investment company or a real estate investment trust, the credit determined under subsection (a) shall be allowed to shareholders of such company or beneficiaries of such trust (and any gross income included under subsection (f) with respect to such credit shall be treated as distributed to such shareholders or beneficiaries) under procedures prescribed by the Secretary.CommentsClose CommentsPermalink





`(i) Credits May Be Stripped- Under regulations prescribed by the Secretary--CommentsClose CommentsPermalink





`(1) IN GENERAL- There may be a separation (including at issuance) of the ownership of a qualified tax credit bond and the entitlement to the credit under this section with respect to such bond. In case of any such separation, the credit under this section shall be allowed to the person who on the credit allowance date holds the instrument evidencing the entitlement to the credit and not to the holder of the bond.CommentsClose CommentsPermalink





`(2) CERTAIN RULES TO APPLY- In the case of a separation described in paragraph (1), the rules of section 1286 shall apply to the qualified tax credit bond as if it were a stripped bond and to the credit under this section as if it were a stripped coupon.CommentsClose CommentsPermalink

`SEC. 54B. NEW CLEAN RENEWABLE ENERGY BONDS.

`(a) New Clean Renewable Energy Bond- For purposes of this subpart, the term `new clean renewable energy bond' means any bond issued as part of an issue if--CommentsClose CommentsPermalink





`(1) 100 percent of the available project proceeds of such issue are to be used for capital expenditures incurred by public power providers or cooperative electric companies for one or more qualified renewable energy facilities,CommentsClose CommentsPermalink





`(2) the bond is issued by a qualified issuer, andCommentsClose CommentsPermalink





`(3) the issuer designates such bond for purposes of this section.CommentsClose CommentsPermalink





`(b) Reduced Credit Amount- The annual credit determined under section 54A(b) with respect to any new clean renewable energy bond shall be 70 percent of the amount so determined without regard to this subsection.CommentsClose CommentsPermalink





`(c) Limitation on Amount of Bonds Designated-CommentsClose CommentsPermalink





`(1) IN GENERAL- The maximum aggregate face amount of bonds which may be designated under subsection (a) by any issuer shall not exceed the limitation amount allocated under this subsection to such issuer.CommentsClose CommentsPermalink





`(2) NATIONAL LIMITATION ON AMOUNT OF BONDS DESIGNATED- There is a national new clean renewable energy bond limitation of $2,000,000,000 which shall be allocated by the Secretary as provided in paragraph (3), except that--CommentsClose CommentsPermalink





`(A) not more than 60 percent thereof may be allocated to qualified projects of public power providers, andCommentsClose CommentsPermalink





`(B) not more than 40 percent thereof may be allocated to qualified projects of cooperative electric companies.CommentsClose CommentsPermalink





`(3) METHOD OF ALLOCATION-CommentsClose CommentsPermalink





`(A) ALLOCATION AMONG PUBLIC POWER PROVIDERS- After the Secretary determines the qualified projects of public power providers which are appropriate for receiving an allocation of the national new clean renewable energy bond limitation, the Secretary shall, to the maximum extent practicable, make allocations among such projects in such manner that the amount allocated to each such project bears the same ratio to the cost of such project as the limitation under subparagraph (2)(A) bears to the cost of all such projects.CommentsClose CommentsPermalink





`(B) ALLOCATION AMONG COOPERATIVE ELECTRIC COMPANIES- The Secretary shall make allocations of the amount of the national new clean renewable energy bond limitation described in paragraph (2)(B) among qualified projects of cooperative electric companies in such manner as the Secretary determines appropriate.CommentsClose CommentsPermalink





`(d) Definitions- For purposes of this section--CommentsClose CommentsPermalink





`(1) QUALIFIED RENEWABLE ENERGY FACILITY- The term `qualified renewable energy facility' means a qualified facility (as determined under section 45(d) without regard to paragraphs (8) and (10) thereof and to any placed in service date) owned by a public power provider or a cooperative electric company.CommentsClose CommentsPermalink





`(2) PUBLIC POWER PROVIDER- The term `public power provider' means a State utility with a service obligation, as such terms are defined in section 217 of the Federal Power Act (as in effect on the date of the enactment of this paragraph).CommentsClose CommentsPermalink





`(3) COOPERATIVE ELECTRIC COMPANY- The term `cooperative electric company' means a mutual or cooperative electric company described in section 501(c)(12) or section 1381(a)(2)(C).CommentsClose CommentsPermalink





`(4) CLEAN RENEWABLE ENERGY BOND LENDER- The term `clean renewable energy bond lender' means a lender which is a cooperative which is owned by, or has outstanding loans to, 100 or more cooperative electric companies and is in existence on February 1, 2002, and shall include any affiliated entity which is controlled by such lender.CommentsClose CommentsPermalink





`(5) QUALIFIED ISSUER- The term `qualified issuer' means a public power provider, a cooperative electric company, a clean renewable energy bond lender, or a not-for-profit electric utility which has received a loan or loan guarantee under the Rural Electrification Act.'.CommentsClose CommentsPermalink





(b) Reporting- Subsection (d) of section 6049 (relating to returns regarding payments of interest) is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(9) REPORTING OF CREDIT ON QUALIFIED TAX CREDIT BONDS-CommentsClose CommentsPermalink





`(A) IN GENERAL- For purposes of subsection (a), the term `interest' includes amounts includible in gross income under section 54A and such amounts shall be treated as paid on the credit allowance date (as defined in section 54A(e)(1)).CommentsClose CommentsPermalink





`(B) REPORTING TO CORPORATIONS, ETC- Except as otherwise provided in regulations, in the case of any interest described in subparagraph (A) of this paragraph, subsection (b)(4) of this section shall be applied without regard to subparagraphs (A), (H), (I), (J), (K), and (L)(i).CommentsClose CommentsPermalink





`(C) REGULATORY AUTHORITY- The Secretary may prescribe such regulations as are necessary or appropriate to carry out the purposes of this paragraph, including regulations which require more frequent or more detailed reporting.'.CommentsClose CommentsPermalink





(c) Conforming Amendments-CommentsClose CommentsPermalink





(1) Sections 54(c)(2) and 1400N(l)(3)(B) are each amended by striking `subpart C' and inserting `subparts C and I'.CommentsClose CommentsPermalink





(2) Section 1397E(c)(2) is amended by striking `subpart H' and inserting `subparts H and I'.CommentsClose CommentsPermalink





(3) Section 6401(b)(1) is amended by striking `and H' and inserting `H, and I'.CommentsClose CommentsPermalink





(4) The heading of subpart H of part IV of subchapter A of chapter 1 is amended by striking `Certain Bonds' and inserting `Clean Renewable Energy Bonds'.CommentsClose CommentsPermalink





(5) The table of subparts for part IV of subchapter A of chapter 1 is amended by striking the item relating to subpart H and inserting the following new items:CommentsClose CommentsPermalink

`subpart h. nonrefundable credit to holders of clean renewable energy bonds.

`subpart i. qualified tax credit bonds.'.

(d) Effective Dates- The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 105. EXTENSION AND MODIFICATION OF SPECIAL RULE TO IMPLEMENT FERC AND STATE ELECTRIC RESTRUCTURING POLICY.

(a) Extension for Qualified Electric Utilities-CommentsClose CommentsPermalink





(1) IN GENERAL- Paragraph (3) of section 451(i) (relating to special rule for sales or dispositions to implement Federal Energy Regulatory Commission or State electric restructuring policy) is amended by inserting `(before January 1, 2010, in the case of a qualified electric utility)' after `January 1, 2008'.CommentsClose CommentsPermalink





(2) QUALIFIED ELECTRIC UTILITY- Subsection (i) of section 451 is amended by redesignating paragraphs (6) through (10) as paragraphs (7) through (11), respectively, and by inserting after paragraph (5) the following new paragraph:CommentsClose CommentsPermalink





`(6) QUALIFIED ELECTRIC UTILITY- For purposes of this subsection, the term `qualified electric utility' means a person that, as of the date of the qualifying electric transmission transaction, is vertically integrated, in that it is both--CommentsClose CommentsPermalink





`(A) a transmitting utility (as defined in section 3(23) of the Federal Power Act (16 U.S.C. 796(23))) with respect to the transmission facilities to which the election under this subsection applies, andCommentsClose CommentsPermalink





`(B) an electric utility (as defined in section 3(22) of the Federal Power Act (16 U.S.C. 796(22))).'.CommentsClose CommentsPermalink





(b) Extension of Period for Transfer of Operational Control Authorized by FERC- Clause (ii) of section 451(i)(4)(B) is amended by striking `December 31, 2007' and inserting `the date which is 4 years after the close of the taxable year in which the transaction occurs'.CommentsClose CommentsPermalink





(c) Property Located Outside the United States Not Treated as Exempt Utility Property- Paragraph (5) of section 451(i) is amended by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





`(C) EXCEPTION FOR PROPERTY LOCATED OUTSIDE THE UNITED STATES- The term `exempt utility property' shall not include any property which is located outside the United States.'.CommentsClose CommentsPermalink





(d) Effective Dates-CommentsClose CommentsPermalink





(1) EXTENSION- The amendments made by subsection (a) shall apply to transactions after December 31, 2007.CommentsClose CommentsPermalink





(2) TRANSFERS OF OPERATIONAL CONTROL- The amendment made by subsection (b) shall take effect as if included in section 909 of the American Jobs Creation Act of 2004.CommentsClose CommentsPermalink





(3) EXCEPTION FOR PROPERTY LOCATED OUTSIDE THE UNITED STATES- The amendment made by subsection (c) shall apply to transactions after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 106. EXTENSION AND MODIFICATION OF CREDIT FOR RESIDENTIAL ENERGY EFFICIENT PROPERTY.

(a) Extension- Section 25D(g) (relating to termination) is amended by striking `December 31, 2008' and inserting `December 31, 2014'.CommentsClose CommentsPermalink





(b) Maximum Credit for Solar Electric Property-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 25D(b)(1)(A) (relating to maximum credit) is amended by striking `$2,000' and inserting `$4,000'.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENT- Section 25D(e)(4)(A)(i) is amended by striking `$6,667' and inserting `$13,333'.CommentsClose CommentsPermalink





(c) Credit for Residential Wind Property-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 25D(a) (relating to allowance of credit) is amended by striking `and' at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting `, and', and by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(4) 30 percent of the qualified small wind energy property expenditures made by the taxpayer during such year.'.CommentsClose CommentsPermalink





(2) LIMITATION- Section 25D(b)(1) (relating to maximum credit) is amended by striking `and' at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting `, and', and by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





`(D) $500 with respect to each half kilowatt of capacity (not to exceed $4,000) of wind turbines for which qualified small wind energy property expenditures are made.'.CommentsClose CommentsPermalink





(3) QUALIFIED SMALL WIND ENERGY PROPERTY EXPENDITURES-CommentsClose CommentsPermalink





(A) IN GENERAL- Section 25D(d) (relating to definitions) is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(4) QUALIFIED SMALL WIND ENERGY PROPERTY EXPENDITURE- The term `qualified small wind energy property expenditure' means an expenditure for property which uses a wind turbine to generate electricity for use in connection with a dwelling unit located in the United States and used as a residence by the taxpayer.'.CommentsClose CommentsPermalink





(B) NO DOUBLE BENEFIT- Section 45(d)(1) (relating to wind facility) is amended by adding at the end the following new sentence: `Such term shall not include any facility with respect to which any qualified small wind energy property expenditure (as defined in subsection (d)(4) of section 25D) is taken into account in determining the credit under such section.'.CommentsClose CommentsPermalink





(4) MAXIMUM EXPENDITURES IN CASE OF JOINT OCCUPANCY- Section 25D(e)(4)(A) (relating to maximum expenditures) is amended by striking `and' at the end of clause (ii), by striking the period at the end of clause (iii) and inserting `, and', and by adding at the end the following new clause:CommentsClose CommentsPermalink





`(iv) $1,667 in the case of each half kilowatt of capacity (not to exceed $13,333) of wind turbines for which qualified small wind energy property expenditures are made.'.CommentsClose CommentsPermalink





(d) Credit for Geothermal Heat pump Systems-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 25D(a) (relating to allowance of credit), as amended by subsection (c), is amended by striking `and' at the end of paragraph (3), by striking the period at the end of paragraph (4) and inserting `, and', and by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(5) 30 percent of the qualified geothermal heat pump property expenditures made by the taxpayer during such year.'.CommentsClose CommentsPermalink





(2) LIMITATION- Section 25D(b)(1) (relating to maximum credit), as amended by subsection (c), is amended by striking `and' at the end of subparagraph (C), by striking the period at the end of subparagraph (D) and inserting `, and', and by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





`(E) $2,000 with respect to any qualified geothermal heat pump property expenditures.'.CommentsClose CommentsPermalink





(3) QUALIFIED GEOTHERMAL HEAT PUMP PROPERTY EXPENDITURE- Section 25D(d) (relating to definitions), as amended by subsection (c), is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(5) QUALIFIED GEOTHERMAL HEAT PUMP PROPERTY EXPENDITURE-CommentsClose CommentsPermalink





`(A) IN GENERAL- The term `qualified geothermal heat pump property expenditure' means an expenditure for qualified geothermal heat pump property installed on or in connection with a dwelling unit located in the United States and used as a residence by the taxpayer.CommentsClose CommentsPermalink





`(B) QUALIFIED GEOTHERMAL HEAT PUMP PROPERTY- The term `qualified geothermal heat pump property' means any equipment which--CommentsClose CommentsPermalink





`(i) uses the ground or ground water as a thermal energy source to heat the dwelling unit referred to in subparagraph (A) or as a thermal energy sink to cool such dwelling unit, andCommentsClose CommentsPermalink





`(ii) meets the requirements of the Energy Star program which are in effect at the time that the expenditure for such equipment is made.'.CommentsClose CommentsPermalink





(4) MAXIMUM EXPENDITURES IN CASE OF JOINT OCCUPANCY- Section 25D(e)(4)(A) (relating to maximum expenditures), as amended by subsection (c), is amended by striking `and' at the end of clause (iii), by striking the period at the end of clause (iv) and inserting `, and', and by adding at the end the following new clause:CommentsClose CommentsPermalink





`(v) $6,667 in the case of any qualified geothermal heat pump property expenditures.'.CommentsClose CommentsPermalink





(e) Credit Allowed Against Alternative Minimum Tax-CommentsClose CommentsPermalink





(1) IN GENERAL- Subsection (c) of section 25D is amended to read as follows:CommentsClose CommentsPermalink





`(c) Limitation Based on Amount of Tax; Carryforward of Unused Credit-CommentsClose CommentsPermalink





`(1) LIMITATION BASED ON AMOUNT OF TAX- In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for the taxable year shall not exceed the excess of--CommentsClose CommentsPermalink





`(A) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, overCommentsClose CommentsPermalink





`(B) the sum of the credits allowable under this subpart (other than this section) and section 27 for the taxable year.CommentsClose CommentsPermalink





`(2) CARRYFORWARD OF UNUSED CREDIT-CommentsClose CommentsPermalink





`(A) RULE FOR YEARS IN WHICH ALL PERSONAL CREDITS ALLOWED AGAINST REGULAR AND ALTERNATIVE MINIMUM TAX- In the case of a taxable year to which section 26(a)(2) applies, if the credit allowable under subsection (a) exceeds the limitation imposed by section 26(a)(2) for such taxable year reduced by the sum of the credits allowable under this subpart (other than this section), such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such succeeding taxable year.CommentsClose CommentsPermalink





`(B) RULE FOR OTHER YEARS- In the case of a taxable year to which section 26(a)(2) does not apply, if the credit allowable under subsection (a) exceeds the limitation imposed by paragraph (1) for such taxable year, such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such succeeding taxable year.'.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENTS-CommentsClose CommentsPermalink





(A) Section 23(b)(4)(B) is amended by inserting `and section 25D' after `this section'.CommentsClose CommentsPermalink





(B) Section 24(b)(3)(B) is amended by striking `and 25B' and inserting `, 25B, and 25D'.CommentsClose CommentsPermalink





(C) Section 25B(g)(2) is amended by striking `section 23' and inserting `sections 23 and 25D'.CommentsClose CommentsPermalink





(D) Section 26(a)(1) is amended by striking `and 25B' and inserting `25B, and 25D'.CommentsClose CommentsPermalink





(f) Effective Date-CommentsClose CommentsPermalink





(1) IN GENERAL- The amendments made by this section shall apply to taxable years beginning after December 31, 2007.CommentsClose CommentsPermalink





(2) APPLICATION OF EGTRRA SUNSET- The amendments made by subparagraphs (A) and (B) of subsection (e)(2) shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 in the same manner as the provisions of such Act to which such amendments relate.CommentsClose CommentsPermalink

TITLE II--CONSERVATION

Subtitle A--Transportation

PART 1--VEHICLES

SEC. 201. CREDIT FOR PLUG-IN HYBRID VEHICLES.

(a) In General- Subpart B of part IV of subchapter A of chapter 1 (relating to other credits) is amended by adding at the end the following new section:CommentsClose CommentsPermalink

`SEC. 30D. PLUG-IN HYBRID VEHICLES.

`(a) Allowance of Credit- There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the credit amounts determined under subsection (b) with respect to each qualified plug-in hybrid vehicle placed in service by the taxpayer during the taxable year.CommentsClose CommentsPermalink





`(b) Per Vehicle Dollar Limitation-CommentsClose CommentsPermalink





`(1) IN GENERAL- The amount determined under this subsection with respect to any qualified plug-in hybrid vehicle is the sum of the amounts determined under paragraphs (2) and (3) with respect to such vehicle.CommentsClose CommentsPermalink





`(2) BASE AMOUNT- The amount determined under this paragraph is $4,000.CommentsClose CommentsPermalink





`(3) BATTERY CAPACITY- In the case of vehicle which draws propulsion energy from a battery with not less than 5 kilowatt hours of capacity, the amount determined under this paragraph is $200, plus $200 for each kilowatt hour of capacity in excess of 5 kilowatt hours. The amount determined under this paragraph shall not exceed $2,000.CommentsClose CommentsPermalink





`(c) Application With Other Credits-CommentsClose CommentsPermalink





`(1) BUSINESS CREDIT TREATED AS PART OF GENERAL BUSINESS CREDIT- So much of the credit which would be allowed under subsection (a) for any taxable year (determined without regard to this subsection) that is attributable to property of a character subject to an allowance for depreciation shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)).CommentsClose CommentsPermalink





`(2) PERSONAL CREDIT-CommentsClose CommentsPermalink





`(A) IN GENERAL- For purposes of this title, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year.CommentsClose CommentsPermalink





`(B) LIMITATION BASED ON AMOUNT OF TAX- In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall not exceed the excess of--CommentsClose CommentsPermalink





`(i) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, overCommentsClose CommentsPermalink





`(ii) the sum of the credits allowable under subpart A (other than this section and sections 23 and 25D) and section 27 for the taxable year.CommentsClose CommentsPermalink





`(d) Qualified Plug-In Hybrid Vehicle- For purposes of this section--CommentsClose CommentsPermalink





`(1) IN GENERAL- The term `qualified plug-in hybrid vehicle' means a motor vehicle (as defined in section 30(c)(2))--CommentsClose CommentsPermalink





`(A) the original use of which commences with the taxpayer,CommentsClose CommentsPermalink





`(B) which is acquired for use or lease by the taxpayer and not for resale,CommentsClose CommentsPermalink





`(C) which is made by a manufacturer,CommentsClose CommentsPermalink





`(D) which has a gross vehicle weight rating of less than 14,000 pounds,CommentsClose CommentsPermalink





`(E) which has received a certificate of conformity under the Clean Air Act and meets or exceeds the Bin 5 Tier II emission standard established in regulations prescribed by the Administrator of the Environmental Protection Agency under section 202(i) of the Clean Air Act for that make and model year vehicle,CommentsClose CommentsPermalink





`(F) which is propelled to a significant extent by an electric motor which draws electricity from a battery which--CommentsClose CommentsPermalink





`(i) has a capacity of not less than 4 kilowatt hours, andCommentsClose CommentsPermalink





`(ii) is capable of being recharged from an external source of electricity, andCommentsClose CommentsPermalink





`(G) which either--CommentsClose CommentsPermalink





`(i) is also propelled to a significant extent by other than an electric motor, orCommentsClose CommentsPermalink





`(ii) has a significant onboard source of electricity which also recharges the battery referred to in subparagraph (F).CommentsClose CommentsPermalink





`(2) EXCEPTION- The term `qualified plug-in hybrid vehicle' shall not include any vehicle which is not a passenger automobile or light truck if such vehicle has a gross vehicle weight rating of less than 8,500 pounds.CommentsClose CommentsPermalink





`(3) OTHER TERMS- The terms `passenger automobile', `light truck', and `manufacturer' have the meanings given such terms in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act (42 U.S.C. 7521 et seq.).CommentsClose CommentsPermalink





`(4) BATTERY CAPACITY- The term `capacity' means, with respect to any battery, the quantity of electricity which the battery is capable of storing, expressed in kilowatt hours, as measured from a 100 percent state of charge to a 0 percent state of charge.CommentsClose CommentsPermalink





`(e) Limitation on Number of Qualified Plug-In Hybrid Vehicles Eligible for Credit-CommentsClose CommentsPermalink





`(1) IN GENERAL- In the case of a qualified plug-in hybrid vehicle sold during the phaseout period, only the applicable percentage of the credit otherwise allowable under subsection (a) shall be allowed.CommentsClose CommentsPermalink





`(2) PHASEOUT PERIOD- For purposes of this subsection, the phaseout period is the period beginning with the second calendar quarter following the calendar quarter which includes the first date on which the number of qualified plug-in hybrid vehicles manufactured by the manufacturer of the vehicle referred to in paragraph (1) sold for use in the United States after the date of the enactment of this section, is at least 60,000.CommentsClose CommentsPermalink





`(3) APPLICABLE PERCENTAGE- For purposes of paragraph (1), the applicable percentage is--CommentsClose CommentsPermalink





`(A) 50 percent for the first 2 calendar quarters of the phaseout period,CommentsClose CommentsPermalink





`(B) 25 percent for the 3d and 4th calendar quarters of the phaseout period, andCommentsClose CommentsPermalink





`(C) 0 percent for each calendar quarter thereafter.CommentsClose CommentsPermalink





`(4) CONTROLLED GROUPS- Rules similar to the rules of section 30B(f)(4) shall apply for purposes of this subsection.CommentsClose CommentsPermalink





`(f) Special Rules-CommentsClose CommentsPermalink





`(1) BASIS REDUCTION- The basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit (determined without regard to subsection (c)).CommentsClose CommentsPermalink





`(2) RECAPTURE- The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit.CommentsClose CommentsPermalink





`(3) PROPERTY USED OUTSIDE UNITED STATES, ETC., NOT QUALIFIED- No credit shall be allowed under subsection (a) with respect to any property referred to in section 50(b)(1) or with respect to the portion of the cost of any property taken into account under section 179.CommentsClose CommentsPermalink





`(4) ELECTION NOT TO TAKE CREDIT- No credit shall be allowed under subsection (a) for any vehicle if the taxpayer elects to not have this section apply to such vehicle.CommentsClose CommentsPermalink





`(5) PROPERTY USED BY TAX-EXEMPT ENTITY; INTERACTION WITH AIR QUALITY AND MOTOR VEHICLE SAFETY STANDARDS- Rules similar to the rules of paragraphs (6) and (10) of section 30B(h) shall apply for purposes of this section.'.CommentsClose CommentsPermalink





(b) Plug-In Vehicles Not Treated as New Qualified Hybrid Vehicles- Section 30B(d)(3) is amended by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





`(D) EXCLUSION OF PLUG-IN VEHICLES- Any vehicle with respect to which a credit is allowable under section 30D (determined without regard to subsection (c) thereof) shall not be taken into account under this section.'.CommentsClose CommentsPermalink





(c) Credit Made Part of General Business Credit- Section 38(b) is amended--CommentsClose CommentsPermalink





(1) by striking `and' each place it appears at the end of any paragraph,CommentsClose CommentsPermalink





(2) by striking `plus' each place it appears at the end of any paragraph,CommentsClose CommentsPermalink





(3) by striking the period at the end of paragraph (31) and inserting `, plus', andCommentsClose CommentsPermalink





(4) by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(32) the portion of the plug-in hybrid vehicle credit to which section 30D(c)(1) applies.'.CommentsClose CommentsPermalink





(d) Conforming Amendments-CommentsClose CommentsPermalink





(1)(A) Section 24(b)(3)(B), as amended by this Act, is amended by striking `and 25D' and inserting `25D, and 30D'.CommentsClose CommentsPermalink





(B) Section 25(e)(1)(C)(ii) is amended by inserting `30D,' after `25D,'.CommentsClose CommentsPermalink





(C) Section 25B(g)(2), as amended by this Act, is amended by striking `and 25D' and inserting `, 25D, and 30D'.CommentsClose CommentsPermalink





(D) Section 26(a)(1), as amended by this Act, is amended by striking `and 25D' and inserting `25D, and 30D'.CommentsClose CommentsPermalink





(E) Section 1400C(d)(2) is amended by striking `and 25D' and inserting `25D, and 30D'.CommentsClose CommentsPermalink





(2) Section 1016(a) is amended by striking `and' at the end of paragraph (35), by striking the period at the end of paragraph (36) and inserting `, and', and by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(37) to the extent provided in section 30D(f)(1).'.CommentsClose CommentsPermalink





(3) Section 6501(m) is amended by inserting `30D(f)(4),' after `30C(e)(5),'.CommentsClose CommentsPermalink





(4) The table of sections for subpart B of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item:CommentsClose CommentsPermalink





`Sec. 30D. Plug-in hybrid vehicles.'.CommentsClose CommentsPermalink





(e) Treatment of Alternative Motor Vehicle Credit as a Personal Credit-CommentsClose CommentsPermalink





(1) IN GENERAL- Paragraph (2) of section 30B(g) is amended to read as follows:CommentsClose CommentsPermalink





`(2) PERSONAL CREDIT- The credit allowed under subsection (a) for any taxable year (after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year.'.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENTS-CommentsClose CommentsPermalink





(A) Subparagraph (A) of section 30C(d)(2) is amended by striking `sections 27, 30, and 30B' and inserting `sections 27 and 30'.CommentsClose CommentsPermalink





(B) Paragraph (3) of section 55(c) is amended by striking `30B(g)(2),'.CommentsClose CommentsPermalink





(f) Effective Date-CommentsClose CommentsPermalink





(1) IN GENERAL- Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years beginning after December 31, 2008.CommentsClose CommentsPermalink





(2) TREATMENT OF ALTERNATIVE MOTOR VEHICLE CREDIT AS PERSONAL CREDIT- The amendments made by subsection (e) shall apply to taxable years beginning after December 31, 2007.CommentsClose CommentsPermalink





(g) Application of EGTRRA Sunset- The amendment made by subsection (d)(1)(A) shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 in the same manner as the provision of such Act to which such amendment relates.CommentsClose CommentsPermalink

SEC. 202. EXTENSION AND MODIFICATION OF ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY CREDIT.

(a) Increase in Credit Amount- Section 30C (relating to alternative fuel vehicle refueling property credit) is amended--CommentsClose CommentsPermalink





(1) by striking `30 percent' in subsection (a) and inserting `50 percent', andCommentsClose CommentsPermalink





(2) by striking `$30,000' in subsection (b)(1) and inserting `$50,000'.CommentsClose CommentsPermalink





(b) Extension of Credit- Paragraph (2) of section 30C(g) (relating to termination) is amended by striking `December 31, 2009' and inserting `December 31, 2010'.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act, in taxable years ending after such date.CommentsClose CommentsPermalink

SEC. 203. MODIFICATION OF LIMITATION ON AUTOMOBILE DEPRECIATION.

(a) In General- Paragraph (5) of section 280F(d) (defining passenger automobile) is amended to read as follows:CommentsClose CommentsPermalink





`(5) PASSENGER AUTOMOBILE-CommentsClose CommentsPermalink





`(A) IN GENERAL- Except as provided in subparagraph (B), the term `passenger automobile' means any 4-wheeled vehicle--CommentsClose CommentsPermalink





`(i) which is primarily designed or which can be used to carry passengers over public streets, roads, or highways (except any vehicle operated exclusively on a rail or rails), andCommentsClose CommentsPermalink





`(ii) which is rated at not more than 14,000 pounds gross vehicle weight.CommentsClose CommentsPermalink





`(B) EXCEPTIONS- The term `passenger automobile' shall not include--CommentsClose CommentsPermalink





`(i) any exempt-design vehicle, andCommentsClose CommentsPermalink





`(ii) any exempt-use vehicle.CommentsClose CommentsPermalink





`(C) EXEMPT-DESIGN VEHICLE- The term `exempt-design vehicle' means--CommentsClose CommentsPermalink





`(i) any vehicle which, by reason of its nature or design, is not likely to be used more than a de minimis amount for personal purposes, andCommentsClose CommentsPermalink





`(ii) any vehicle--CommentsClose CommentsPermalink





`(I) which is designed to have a seating capacity of more than 9 persons behind the driver's seat,CommentsClose CommentsPermalink





`(II) which is equipped with a cargo area of at least 5 feet in interior length which is an open area or is designed for use as an open area but is enclosed by a cap and is not readily accessible directly from the passenger compartment, orCommentsClose CommentsPermalink





`(III) has an integral enclosure, fully enclosing the driver compartment and load carrying device, does not have seating rearward of the driver's seat, and has no body section protruding more than 30 inches ahead of the leading edge of the windshield.CommentsClose CommentsPermalink





`(D) EXEMPT-USE VEHICLE- The term `exempt-use vehicle' means--CommentsClose CommentsPermalink





`(i) any ambulance, hearse, or combination ambulance-hearse used by the taxpayer directly in a trade or business,CommentsClose CommentsPermalink





`(ii) any vehicle used by the taxpayer directly in the trade or business of transporting persons or property for compensation or hire, andCommentsClose CommentsPermalink





`(iii) any truck or van if substantially all of the use of such vehicle by the taxpayer is directly in--CommentsClose CommentsPermalink





`(I) a farming business (within the meaning of section 263A(e)(4)),CommentsClose CommentsPermalink





`(II) the transportation of a substantial amount of equipment, supplies, or inventory, orCommentsClose CommentsPermalink





`(III) the moving or delivery of property which requires substantial cargo capacity.CommentsClose CommentsPermalink





`(E) RECAPTURE- In the case of any vehicle which is not a passenger automobile by reason of being an exempt-use vehicle, if such vehicle ceases to be an exempt-use vehicle in any taxable year after the taxable year in which such vehicle is placed in service, a rule similar to the rule of subsection (b) shall apply.'.CommentsClose CommentsPermalink





(b) Conforming Amendment- Section 179(b) (relating to limitations) is amended by striking paragraph (6).CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.CommentsClose CommentsPermalink

PART 2--FUELS

SEC. 211. EXTENSION AND MODIFICATION OF CREDITS FOR BIODIESEL AND RENEWABLE DIESEL.

(a) In General- Sections 40A(g), 6426(c)(6), and 6427(e)(5)(B) are each amended by striking `December 31, 2008' and inserting `December 31, 2010'.CommentsClose CommentsPermalink





(b) Uniform Treatment of Diesel Produced From Biomass- Paragraph (3) of section 40A(f) is amended--CommentsClose CommentsPermalink





(1) by striking `diesel fuel' and inserting `liquid fuel',CommentsClose CommentsPermalink





(2) by striking `using a thermal depolymerization process', andCommentsClose CommentsPermalink





(3) by striking `or D396' in subparagraph (B) and inserting `or other equivalent standard approved by the Secretary for fuels to be used in diesel-powered highway vehicles'.CommentsClose CommentsPermalink





(c) Coproduction of Renewable Diesel With Petroleum Feedstock-CommentsClose CommentsPermalink





(1) IN GENERAL- Paragraph (3) of section 40A(f) (defining renewable diesel) is amended by adding at the end the following flush sentence:CommentsClose CommentsPermalink





`Such term does not include any fuel derived from coprocessing biomass with a feedstock which is not biomass. For purposes of this paragraph, the term `biomass' has the meaning given such term by section 45K(c)(3).'.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENT- Paragraph (3) of section 40A(f) is amended by striking `(as defined in section 45K(c)(3))'.CommentsClose CommentsPermalink





(d) Effective Date-CommentsClose CommentsPermalink





(1) IN GENERAL- Except as otherwise provided in this subsection, the amendments made by this section shall apply to fuel produced, and sold or used, after December 31, 2008.CommentsClose CommentsPermalink





(2) COPRODUCTION OF RENEWABLE DIESEL WITH PETROLEUM FEEDSTOCK- The amendments made by subsection (c) shall apply to fuel produced, and sold or used, after February 13, 2008.CommentsClose CommentsPermalink

SEC. 212. CLARIFICATION THAT CREDITS FOR FUEL ARE DESIGNED TO PROVIDE AN INCENTIVE FOR UNITED STATES PRODUCTION.

(a) Biodiesel Fuels Credit- Paragraph (5) of section 40A(d), as added by subsection (c), is amended to read as follows:CommentsClose CommentsPermalink





`(5) LIMITATION TO BIODIESEL WITH CONNECTION TO THE UNITED STATES- No credit shall be determined under this section with respect to any biodiesel unless--CommentsClose CommentsPermalink





`(A) such biodiesel is produced in the United States for use as a fuel in the United States, andCommentsClose CommentsPermalink





`(B) the taxpayer obtains a certification (in such form and manner as prescribed by the Secretary) from the producer of the biodiesel which identifies the product produced and the location of such production.CommentsClose CommentsPermalink





For purposes of this paragraph, the term `United States' includes any possession of the United States.'.CommentsClose CommentsPermalink





(b) Excise Tax Credit- Paragraph (2) of section 6426(h), as added by subsection (c), is amended to read as follows:CommentsClose CommentsPermalink





`(2) BIODIESEL AND ALTERNATIVE FUELS- No credit shall be determined under this section with respect to any biodiesel or alternative fuel unless--CommentsClose CommentsPermalink





`(A) such biodiesel or alternative fuel is produced in the United States for use as a fuel in the United States, andCommentsClose CommentsPermalink





`(B) the taxpayer obtains a certification (in such form and manner as prescribed by the Secretary) from the producer of such biodiesel or alternative fuel which identifies the product produced and the location of such production.'.CommentsClose CommentsPermalink





(c) Provisions Clarifying Treatment of Fuels With No Nexus to the United States-CommentsClose CommentsPermalink





(1) ALCOHOL FUELS CREDIT- Subsection (d) of section 40 is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(6) 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.'.CommentsClose CommentsPermalink





(2) BIODIESEL FUELS CREDIT- Subsection (d) of section 40A is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(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. For purposes of this paragraph, the term `United States' includes any possession of the United States.'.CommentsClose CommentsPermalink





(3) EXCISE TAX CREDIT-CommentsClose CommentsPermalink





(A) IN GENERAL- Section 6426 is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





`(h) Limitation to Fuels With Connection to the United States-CommentsClose CommentsPermalink





`(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.CommentsClose CommentsPermalink





`(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.CommentsClose CommentsPermalink





For purposes of this subsection, the term `United States' includes any possession of the United States.'.CommentsClose CommentsPermalink





(B) 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:CommentsClose CommentsPermalink





`(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(h).'.CommentsClose CommentsPermalink





(d) Effective Date-CommentsClose CommentsPermalink





(1) IN GENERAL- Except as provided in paragraph (2), the amendments made by this section shall apply to fuel produced, and sold or used, after December 31, 2008.CommentsClose CommentsPermalink





(2) PROVISIONS CLARIFYING TREATMENT OF FUELS WITH NO NEXUS TO THE UNITED STATES-CommentsClose CommentsPermalink





(A) IN GENERAL- Except as otherwise provided in this paragraph, the amendments made by subsection (c) shall take effect as if included in section 301 of the American Jobs Creation Act of 2004.CommentsClose CommentsPermalink





(B) ALTERNATIVE FUEL CREDITS- So much of the amendments made by subsection (c) as relate to the alternative fuel credit or the alternative fuel mixture credit shall take effect as if included in section 11113 of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users.CommentsClose CommentsPermalink





(C) RENEWABLE DIESEL- So much of the amendments made by subsection (c) as relate to renewable diesel shall take effect as if included in section 1346 of the Energy Policy Act of 2005.CommentsClose CommentsPermalink

SEC. 213. CREDIT FOR PRODUCTION OF CELLULOSIC ALCOHOL.

(a) In General- Subsection (b) of section 40 is amended by redesignating paragraph (5) as paragraph (6) and by inserting after paragraph (4) the following new paragraph:CommentsClose CommentsPermalink





`(5) CELLULOSIC ALCOHOL FUEL PRODUCER CREDIT-CommentsClose CommentsPermalink





`(A) IN GENERAL- The cellulosic alcohol fuel producer credit of any cellulosic alcohol fuel producer for any taxable year is 50 cents for each gallon of qualified cellulosic fuel production of such producer.CommentsClose CommentsPermalink





`(B) QUALIFIED CELLULOSIC FUEL PRODUCTION- For purposes of this paragraph, the term `qualified cellulosic fuel production' means any cellulosic alcohol which is produced by a cellulosic alcohol fuel producer, and which during the taxable year--CommentsClose CommentsPermalink





`(i) is sold by such producer to another person--CommentsClose CommentsPermalink





`(I) for use by such other person in the production of a qualified mixture in such other person's trade or business (other than casual off-farm production),CommentsClose CommentsPermalink





`(II) for use by such other person as a fuel in a trade or business, orCommentsClose CommentsPermalink





`(III) who sells such alcohol at retail to another person and places such alcohol in the fuel tank of such other person, orCommentsClose CommentsPermalink





`(ii) is used or sold by such producer for any purpose described in clause (i).CommentsClose CommentsPermalink





`(C) CELLULOSIC ALCOHOL- For purposes of this paragraph, the term `cellulosic alcohol' means any alcohol which--CommentsClose CommentsPermalink





`(i) is produced in the United States for use as a fuel in the United States, andCommentsClose CommentsPermalink





`(ii) is derived from any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis.CommentsClose CommentsPermalink





For purposes of this subparagraph, the term `United States' includes any possession of the United States.CommentsClose CommentsPermalink





`(D) CELLULOSIC ALCOHOL FUEL PRODUCER- For purposes of this paragraph, the term `cellulosic alcohol fuel producer' means any person who produces cellulosic alcohol in a trade or business and is registered with the Secretary as a cellulosic alcohol fuel producer.CommentsClose CommentsPermalink





`(E) ADDITIONAL DISTILLATION EXCLUDED- The qualified cellulosic fuel production of any producer for any taxable year shall not include any alcohol which is purchased by the producer and with respect to which such producer increases the proof of the alcohol by additional distillation.'.CommentsClose CommentsPermalink





(b) Conforming Amendments-CommentsClose CommentsPermalink





(1) Subsection (a) of section 40 is amended by striking `plus' at the end of paragraph (1), by striking `plus' at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting `, plus', and by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(4) in the case of a cellulosic alcohol fuel producer, the cellulosic alcohol fuel producer credit.'.CommentsClose CommentsPermalink





(2) Clause (ii) of section 40(d)(3)(C) is amended by striking `subsection (b)(4)(B)' and inserting `paragraph (4)(B) or (5)(B) of subsection (b)'.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to alcohol produced after December 31, 2008.CommentsClose CommentsPermalink

PART 3--OTHER TRANSPORTATION INCENTIVES

SEC. 221. EXTENSION OF TRANSPORTATION FRINGE BENEFIT TO BICYCLE COMMUTERS.

(a) In General- Paragraph (1) of section 132(f) (relating to general rule for qualified transportation fringe) is amended by adding at the end the following:CommentsClose CommentsPermalink





`(D) Any qualified bicycle commuting reimbursement.'.CommentsClose CommentsPermalink





(b) Limitation on Exclusion- Paragraph (2) of section 132(f) is amended by striking `and' at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting `, and', and by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





`(C) the applicable annual limitation in the case of any qualified bicycle commuting reimbursement.'.CommentsClose CommentsPermalink





(c) Definitions- Paragraph (5) of section 132(f) (relating to definitions) is amended by adding at the end the following:CommentsClose CommentsPermalink





`(F) DEFINITIONS RELATED TO BICYCLE COMMUTING REIMBURSEMENT-CommentsClose CommentsPermalink





`(i) QUALIFIED BICYCLE COMMUTING REIMBURSEMENT- The term `qualified bicycle commuting reimbursement' means, with respect to any calendar year, any employer reimbursement during the 15-month period beginning with the first day of such calendar year for reasonable expenses incurred by the employee during such calendar year for the purchase of a bicycle and bicycle improvements, repair, and storage, if such bicycle is regularly used for travel between the employee's residence and place of employment.CommentsClose CommentsPermalink





`(ii) APPLICABLE ANNUAL LIMITATION- The term `applicable annual limitation' means, with respect to any employee for any calendar year, the product of $20 multiplied by the number of qualified bicycle commuting months during such year.CommentsClose CommentsPermalink





`(iii) QUALIFIED BICYCLE COMMUTING MONTH- The term `qualified bicycle commuting month' means, with respect to any employee, any month during which such employee--CommentsClose CommentsPermalink





`(I) regularly uses the bicycle for a substantial portion of the travel between the employee's residence and place of employment, andCommentsClose CommentsPermalink





`(II) does not receive any benefit described in subparagraph (A), (B), or (C) of paragraph (1).'.CommentsClose CommentsPermalink





(d) Constructive Receipt of Benefit- Paragraph (4) of section 132(f) is amended by inserting `(other than a qualified bicycle commuting reimbursement)' after `qualified transportation fringe'.CommentsClose CommentsPermalink





(e) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2008.CommentsClose CommentsPermalink

SEC. 222. RESTRUCTURING OF NEW YORK LIBERTY ZONE TAX CREDITS.

(a) In General- Part I of subchapter Y of chapter 1 is amended by redesignating section 1400L as section 1400K and by adding at the end the following new section:CommentsClose CommentsPermalink

`SEC. 1400L. NEW YORK LIBERTY ZONE TAX CREDITS.

`(a) In General- In the case of a New York Liberty Zone governmental unit, there shall be allowed as a credit against any taxes imposed for any payroll period by section 3402 for which such governmental unit is liable under section 3403 an amount equal to so much of the portion of the qualifying project expenditure amount allocated under subsection (b)(3) to such governmental unit for the calendar year as is allocated by such governmental unit to such period under subsection (b)(4).CommentsClose CommentsPermalink





`(b) Qualifying Project Expenditure Amount- For purposes of this section--CommentsClose CommentsPermalink





`(1) IN GENERAL- The term `qualifying project expenditure amount' means, with respect to any calendar year, the sum of--CommentsClose CommentsPermalink





`(A) the total expenditures paid or incurred during such calendar year by all New York Liberty Zone governmental units and the Port Authority of New York and New Jersey for any portion of qualifying projects located wholly within the City of New York, New York, andCommentsClose CommentsPermalink





`(B) any such expenditures--CommentsClose CommentsPermalink





`(i) paid or incurred in any preceding calendar year which begins after the date of enactment of this section, andCommentsClose CommentsPermalink





`(ii) not previously allocated under paragraph (3).CommentsClose CommentsPermalink





`(2) QUALIFYING PROJECT- The term `qualifying project' means any transportation infrastructure project, including highways, mass transit systems, railroads, airports, ports, and waterways, in or connecting with the New York Liberty Zone (as defined in section 1400K(h)), which is designated as a qualifying project under this section jointly by the Governor of the State of New York and the Mayor of the City of New York, New York.CommentsClose CommentsPermalink





`(3) GENERAL ALLOCATION-CommentsClose CommentsPermalink





`(A) IN GENERAL- The Governor of the State of New York and the Mayor of the City of New York, New York, shall jointly allocate to each New York Liberty Zone governmental unit the portion of the qualifying project expenditure amount which may be taken into account by such governmental unit under subsection (a) for any calendar year in the credit period.CommentsClose CommentsPermalink





`(B) AGGREGATE LIMIT- The aggregate amount which may be allocated under subparagraph (A) for all calendar years in the credit period shall not exceed $2,000,000,000.CommentsClose CommentsPermalink





`(C) ANNUAL LIMIT- The aggregate amount which may be allocated under subparagraph (A) for any calendar year in the credit period shall not exceed the sum of--CommentsClose CommentsPermalink





`(i) $169,000,000, plusCommentsClose CommentsPermalink





`(ii) the aggregate amount authorized to be allocated under this paragraph for all preceding calendar years in the credit period which was not so allocated.CommentsClose CommentsPermalink





`(D) UNALLOCATED AMOUNTS AT END OF CREDIT PERIOD- If, as of the close of the credit period, the amount under subparagraph (B) exceeds the aggregate amount allocated under subparagraph (A) for all calendar years in the credit period, the Governor of the State of New York and the Mayor of the City of New York, New York, may jointly allocate to New York Liberty Zone governmental units for any calendar year in the 5-year period following the credit period an amount equal to--CommentsClose CommentsPermalink





`(i) the lesser of--CommentsClose CommentsPermalink





`(I) such excess, orCommentsClose CommentsPermalink





`(II) the qualifying project expenditure amount for such calendar year, reduced byCommentsClose CommentsPermalink





`(ii) the aggregate amount allocated under this subparagraph for all preceding calendar years.CommentsClose CommentsPermalink





`(4) ALLOCATION TO PAYROLL PERIODS- Each New York Liberty Zone governmental unit which has been allocated a portion of the qualifying project expenditure amount under paragraph (3) for a calendar year may allocate such portion to payroll periods beginning in such calendar year as such governmental unit determines appropriate.CommentsClose CommentsPermalink





`(c) Carryover of Unused Allocations-CommentsClose CommentsPermalink





`(1) IN GENERAL- Except as provided in paragraph (2), if the amount allocated under subsection (b)(3) to a New York Liberty Zone governmental unit for any calendar year exceeds the aggregate taxes imposed by section 3402 for which such governmental unit is liable under section 3403 for periods beginning in such year, such excess shall be carried to the succeeding calendar year and added to the allocation of such governmental unit for such succeeding calendar year.CommentsClose CommentsPermalink





`(2) REALLOCATION- If a New York Liberty Zone governmental unit does not use an amount allocated to it under subsection (b)(3) within the time prescribed by the Governor of the State of New York and the Mayor of the City of New York, New York, then such amount shall after such time be treated for purposes of subsection (b)(3) in the same manner as if it had never been allocated.CommentsClose CommentsPermalink





`(d) Definitions and Special Rules- For purposes of this section--CommentsClose CommentsPermalink





`(1) CREDIT PERIOD- The term `credit period' means the 12-year period beginning on January 1, 2008.CommentsClose CommentsPermalink





`(2) NEW YORK LIBERTY ZONE GOVERNMENTAL UNIT- The term `New York Liberty Zone governmental unit' means--CommentsClose CommentsPermalink





`(A) the State of New York,CommentsClose CommentsPermalink





`(B) the City of New York, New York, andCommentsClose CommentsPermalink





`(C) any agency or instrumentality of such State or City.CommentsClose CommentsPermalink





`(3) TREATMENT OF FUNDS- Any expenditure for a qualifying project taken into account for purposes of the credit under this section shall be considered State and local funds for the purpose of any Federal program.CommentsClose CommentsPermalink





`(4) TREATMENT OF CREDIT AMOUNTS FOR PURPOSES OF WITHHOLDING TAXES- For purposes of this title, a New York Liberty Zone governmental unit shall be treated as having paid to the Secretary, on the day on which wages are paid to employees, an amount equal to the amount of the credit allowed to such entity under subsection (a) with respect to such wages, but only if such governmental unit deducts and withholds wages for such payroll period under section 3401 (relating to wage withholding).CommentsClose CommentsPermalink





`(e) Reporting- The Governor of the State of New York and the Mayor of the City of New York, New York, shall jointly submit to the Secretary an annual report--CommentsClose CommentsPermalink





`(1) which certifies--CommentsClose CommentsPermalink





`(A) the qualifying project expenditure amount for the calendar year, andCommentsClose CommentsPermalink





`(B) the amount allocated to each New York Liberty Zone governmental unit under subsection (b)(3) for the calendar year, andCommentsClose CommentsPermalink





`(2) includes such other information as the Secretary may require to carry out this section.CommentsClose CommentsPermalink





`(f) Guidance- The Secretary may prescribe such guidance as may be necessary or appropriate to ensure compliance with the purposes of this section.'.CommentsClose CommentsPermalink





(b) Termination of Special Allowance and Expensing- Subparagraph (A) of section 1400K(b)(2), as redesignated by subsection (a), is amended by striking the parenthetical in the flush language after clause (v) thereof and inserting `(in the case of nonresidential real property and residential rental property, the date of the enactment of the Renewable Energy and Energy Conservation Tax Act of 2008 or, if acquired pursuant to a binding contract in effect on such enactment date, December 31, 2009)'.CommentsClose CommentsPermalink





(c) Conforming Amendments-CommentsClose CommentsPermalink





(1) Section 38(c)(3)(B) is amended by striking `section 1400L(a)' and inserting `section 1400K(a)'.CommentsClose CommentsPermalink





(2) Section 168(k)(2)(D)(ii) is amended by striking `section 1400L(c)(2)' and inserting `section 1400K(c)(2)'.CommentsClose CommentsPermalink





(3) The table of sections for part I of subchapter Y of chapter 1 is amended by redesignating the item relating to section 1400L as an item relating to section 1400K and by inserting after such item the following new item:CommentsClose CommentsPermalink





`Sec. 1400L. New York Liberty Zone tax credits.'.CommentsClose CommentsPermalink





(d) Effective Date- The amendments made by this section shall take effect on the date of the enactment of this Act.CommentsClose CommentsPermalink

Subtitle B--Other Conservation Provisions

SEC. 231. QUALIFIED ENERGY CONSERVATION BONDS.

(a) In General- Subpart I of part IV of subchapter A of chapter 1, as added by section 104, is amended by adding at the end the following new section:CommentsClose CommentsPermalink

`SEC. 54C. QUALIFIED ENERGY CONSERVATION BONDS.

`(a) Qualified Energy Conservation Bond- For purposes of this subchapter, the term `qualified energy conservation bond' means any bond issued as part of an issue if--CommentsClose CommentsPermalink





`(1) 100 percent of the available project proceeds of such issue are to be used for one or more qualified conservation purposes,CommentsClose CommentsPermalink





`(2) the bond is issued by a State or local government, andCommentsClose CommentsPermalink





`(3) the issuer designates such bond for purposes of this section.CommentsClose CommentsPermalink





`(b) Limitation on Amount of Bonds Designated- The maximum aggregate face amount of bonds which may be designated under subsection (a) by any issuer shall not exceed the limitation amount allocated to such issuer under subsection (d).CommentsClose CommentsPermalink





`(c) National Limitation on Amount of Bonds Designated- There is a national qualified energy conservation bond limitation of $3,600,000,000.CommentsClose CommentsPermalink





`(d) Allocations-CommentsClose CommentsPermalink





`(1) IN GENERAL- The limitation applicable under subsection (c) shall be allocated by the Secretary among the States in proportion to the population of the States.CommentsClose CommentsPermalink





`(2) ALLOCATIONS TO LARGEST LOCAL GOVERNMENTS-CommentsClose CommentsPermalink





`(A) IN GENERAL- In the case of any State in which there is a large local government, each such local government shall be allocated a portion of such State's allocation which bears the same ratio to the State's allocation (determined without regard to this subparagraph) as the population of such large local government bears to the population of such State.CommentsClose CommentsPermalink





`(B) ALLOCATION OF UNUSED LIMITATION TO STATE- The amount allocated under this subsection to a large local government may be reallocated by such local government to the State in which such local government is located.CommentsClose CommentsPermalink





`(C) LARGE LOCAL GOVERNMENT- For purposes of this section, the term `large local government' means any municipality or county if such municipality or county has a population of 100,000 or more.CommentsClose CommentsPermalink





`(3) ALLOCATION TO ISSUERS; RESTRICTION ON PRIVATE ACTIVITY BONDS- Any allocation under this subsection to a State or large local government shall be allocated by such State or large local government to issuers within the State in a manner that results in not less than 70 percent of the allocation to such State or large local government being used to designate bonds which are not private activity bonds.CommentsClose CommentsPermalink





`(e) Qualified Conservation Purpose- For purposes of this section--CommentsClose CommentsPermalink





`(1) IN GENERAL- The term `qualified conservation purpose' means any of the following:CommentsClose CommentsPermalink





`(A) Capital expenditures incurred for purposes of--CommentsClose CommentsPermalink





`(i) reducing energy consumption in publicly-owned buildings by at least 20 percent,CommentsClose CommentsPermalink





`(ii) implementing green community programs,CommentsClose CommentsPermalink





`(iii) rural development involving the production of electricity from renewable energy resources, orCommentsClose CommentsPermalink





`(iv) any qualified facility (as determined under section 45(d) without regard to paragraphs (8) and (10) thereof and without regard to any placed in service date).CommentsClose CommentsPermalink





`(B) Expenditures with respect to research facilities, and research grants, to support research in--CommentsClose CommentsPermalink





`(i) development of cellulosic ethanol or other nonfossil fuels,CommentsClose CommentsPermalink





`(ii) technologies for the capture and sequestration of carbon dioxide produced through the use of fossil fuels,CommentsClose CommentsPermalink





`(iii) increasing the efficiency of existing technologies for producing nonfossil fuels,CommentsClose CommentsPermalink





`(iv) automobile battery technologies and other technologies to reduce fossil fuel consumption in transportation, orCommentsClose CommentsPermalink





`(v) technologies to reduce energy use in buildings.CommentsClose CommentsPermalink





`(C) Mass commuting facilities and related facilities that reduce the consumption of energy, including expenditures to reduce pollution from vehicles used for mass commuting.CommentsClose CommentsPermalink





`(D) Demonstration projects designed to promote the commercialization of--CommentsClose CommentsPermalink





`(i) green building technology,CommentsClose CommentsPermalink





`(ii) conversion of agricultural waste for use in the production of fuel or otherwise,CommentsClose CommentsPermalink





`(iii) advanced battery manufacturing technologies,CommentsClose CommentsPermalink





`(iv) technologies to reduce peak use of electricity, orCommentsClose CommentsPermalink





`(v) technologies for the capture and sequestration of carbon dioxide emitted from combusting fossil fuels in order to produce electricity.CommentsClose CommentsPermalink





`(E) Public education campaigns to promote energy efficiency.CommentsClose CommentsPermalink





`(2) SPECIAL RULES FOR PRIVATE ACTIVITY BONDS- For purposes of this section, in the case of any private activity bond, the term `qualified conservation purposes' shall not include any expenditure which is not a capital expenditure.CommentsClose CommentsPermalink





`(f) Population-CommentsClose CommentsPermalink





`(1) IN GENERAL- The population of any State or local government shall be determined for purposes of this section as provided in section 146(j) for the calendar year which includes the date of the enactment of this section.CommentsClose CommentsPermalink





`(2) SPECIAL RULE FOR COUNTIES- In determining the population of any county for purposes of this section, any population of such county which is taken into account in determining the population of any municipality which is a large local government shall not be taken into account in determining the population of such county.CommentsClose CommentsPermalink





`(g) Application to Indian Tribal Governments- An Indian tribal government shall be treated for purposes of this section in the same manner as a large local government, except that--CommentsClose CommentsPermalink





`(1) an Indian tribal government shall be treated for purposes of subsection (d) as located within a State to the extent of so much of the population of such government as resides within such State, andCommentsClose CommentsPermalink





`(2) any bond issued by an Indian tribal government shall be treated as a qualified energy conservation bond only if issued as part of an issue the available project proceeds of which are used for purposes for which such Indian tribal government could issue bonds to which section 103(a) applies.'.CommentsClose CommentsPermalink





(b) Conforming Amendments-CommentsClose CommentsPermalink





(1) Paragraph (1) of section 54A(d), as added by section 104, is amended to read as follows:CommentsClose CommentsPermalink





`(1) QUALIFIED TAX CREDIT BOND- The term `qualified tax credit bond' means--CommentsClose CommentsPermalink





`(A) a new clean renewable energy bond, orCommentsClose CommentsPermalink





`(B) a qualified energy conservation bond,CommentsClose CommentsPermalink





which is part of an issue that meets requirements of paragraphs (2), (3), (4), (5), and (6).'.CommentsClose CommentsPermalink





(2) Subparagraph (C) of section 54A(d)(2), as added by section 104, is amended to read as follows:CommentsClose CommentsPermalink





`(C) QUALIFIED PURPOSE- For purposes of this paragraph, the term `qualified purpose' means--CommentsClose CommentsPermalink





`(i) in the case of a new clean renewable energy bond, a purpose specified in section 54B(a)(1), andCommentsClose CommentsPermalink





`(ii) in the case of a qualified energy conservation bond, a purpose specified in section 54C(a)(1).'.CommentsClose CommentsPermalink





(3) The table of sections for subpart I of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item:CommentsClose CommentsPermalink





`Sec. 54C. Qualified energy conservation bonds.'.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 232. EXTENSION AND MODIFICATION OF CREDIT FOR NONBUSINESS ENERGY PROPERTY.

(a) Extension of Credit- Section 25C(g) (relating to termination) is amended by striking `December 31, 2007' and inserting `December 31, 2009'.CommentsClose CommentsPermalink





(b) Qualified Biomass Fuel Property-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 25C(d)(3) is amended--CommentsClose CommentsPermalink





(A) by striking `and' at the end of subparagraph (D),CommentsClose CommentsPermalink





(B) by striking the period at the end of subparagraph (E) and inserting `, and', andCommentsClose CommentsPermalink





(C) by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





`(F) a stove which uses the burning of biomass fuel to heat a dwelling unit located in the United States and used as a residence by the taxpayer, or to heat water for use in such a dwelling unit, and which has a thermal efficiency rating of at least 75 percent.'.CommentsClose CommentsPermalink





(2) BIOMASS FUEL- Section 25C(d) (relating to residential energy property expenditures) is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(6) BIOMASS FUEL- The term `biomass fuel' means any plant-derived fuel available on a renewable or recurring basis, including agricultural crops and trees, wood and wood waste and residues (including wood pellets), plants (including aquatic plants), grasses, residues, and fibers.'.CommentsClose CommentsPermalink





(c) Coordination With Credit for Qualified Geothermal Heat pump Property Expenditures-CommentsClose CommentsPermalink





(1) IN GENERAL- Paragraph (3) of section 25C(d) is amended by striking subparagraph (C) and by redesignating subparagraphs (D) and (E) as subparagraphs (C) and (D), respectively.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENT- Subparagraph (C) of section 25C(d)(2) is amended to read as follows:CommentsClose CommentsPermalink





`(C) REQUIREMENTS AND STANDARDS FOR AIR CONDITIONERS AND HEAT PUMPS- The standards and requirements prescribed by the Secretary under subparagraph (B) with respect to the energy efficiency ratio (EER) for central air conditioners and electric heat pumps--CommentsClose CommentsPermalink





`(i) shall require measurements to be based on published data which is tested by manufacturers at 95 degrees Fahrenheit, andCommentsClose CommentsPermalink





`(ii) may be based on the certified data of the Air Conditioning and Refrigeration Institute that are prepared in partnership with the Consortium for Energy Efficiency.'.CommentsClose CommentsPermalink





(d) Effective Date- The amendments made this section shall apply to expenditures made after December 31, 2007.CommentsClose CommentsPermalink

SEC. 233. EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.

Subsection (h) of section 179D (relating to termination) is amended by striking `December 31, 2008' and inserting `December 31, 2013'.CommentsClose CommentsPermalink

SEC. 234. MODIFICATIONS OF ENERGY EFFICIENT APPLIANCE CREDIT FOR APPLIANCES PRODUCED AFTER 2007.

(a) In General- Subsection (b) of section 45M (relating to applicable amount) is amended to read as follows:CommentsClose CommentsPermalink





`(b) Applicable Amount- For purposes of subsection (a)--CommentsClose CommentsPermalink





`(1) DISHWASHERS- The applicable amount is--CommentsClose CommentsPermalink





`(A) $45 in the case of a dishwasher which is manufactured in calendar year 2008 or 2009 and which uses no more than 324 kilowatt hours per year and 5.8 gallons per cycle, andCommentsClose CommentsPermalink





`(B) $75 in the case of a dishwasher which is manufactured in calendar year 2008, 2009, or 2010 and which uses no more than 307 kilowatt hours per year and 5.0 gallons per cycle (5.5 gallons per cycle for dishwashers designed for greater than 12 place settings).CommentsClose CommentsPermalink





`(2) CLOTHES WASHERS- The applicable amount is--CommentsClose CommentsPermalink





`(A) $75 in the case of a residential top-loading clothes washer manufactured in calendar year 2008 which meets or exceeds a 1.72 modified energy factor and does not exceed a 8.0 water consumption factor,CommentsClose CommentsPermalink





`(B) $125 in the case of a residential top-loading clothes washer manufactured in calendar year 2008 or 2009 which meets or exceeds a 1.8 modified energy factor and does not exceed a 7.5 water consumption factor,CommentsClose CommentsPermalink





`(C) $150 in the case of a residential or commercial clothes washer manufactured in calendar year 2008, 2009, or 2010 which meets or exceeds 2.0 modified energy factor and does not exceed a 6.0 water consumption factor, andCommentsClose CommentsPermalink





`(D) $250 in the case of a residential or commercial clothes washer manufactured in calendar year 2008, 2009, or 2010 which meets or exceeds 2.2 modified energy factor and does not exceed a 4.5 water consumption factor.CommentsClose CommentsPermalink





`(3) REFRIGERATORS- The applicable amount is--CommentsClose CommentsPermalink





`(A) $50 in the case of a refrigerator which is manufactured in calendar year 2008, and consumes at least 20 percent but not more than 22.9 percent less kilowatt hours per year than the 2001 energy conservation standards,CommentsClose CommentsPermalink





`(B) $75 in the case of a refrigerator which is manufactured in calendar year 2008 or 2009, and consumes at least 23 percent but no more than 24.9 percent less kilowatt hours per year than the 2001 energy conservation standards,CommentsClose CommentsPermalink





`(C) $100 in the case of a refrigerator which is manufactured in calendar year 2008, 2009, or 2010, and consumes at least 25 percent but not more than 29.9 percent less kilowatt hours per year than the 2001 energy conservation standards, andCommentsClose CommentsPermalink





`(D) $200 in the case of a refrigerator manufactured in calendar year 2008, 2009, or 2010 and which consumes at least 30 percent less energy than the 2001 energy conservation standards.'.CommentsClose CommentsPermalink





(b) Eligible Production-CommentsClose CommentsPermalink





(1) SIMILAR TREATMENT FOR ALL APPLIANCES- Subsection (c) of section 45M (relating to eligible production) is amended--CommentsClose CommentsPermalink





(A) by striking paragraph (2),CommentsClose CommentsPermalink





(B) by striking `(1) IN GENERAL' and all that follows through `the eligible' and inserting `The eligible', andCommentsClose CommentsPermalink





(C) by moving the text of such subsection in line with the subsection heading and redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively.CommentsClose CommentsPermalink





(2) MODIFICATION OF BASE PERIOD- Paragraph (2) of section 45M(c), as amended by paragraph (1) of this section, is amended by striking `3-calendar year' and inserting `2-calendar year'.CommentsClose CommentsPermalink





(c) Types of Energy Efficient Appliances- Subsection (d) of section 45M (defining types of energy efficient appliances) is amended to read as follows:CommentsClose CommentsPermalink





`(d) Types of Energy Efficient Appliance- For purposes of this section, the types of energy efficient appliances are--CommentsClose CommentsPermalink





`(1) dishwashers described in subsection (b)(1),CommentsClose CommentsPermalink





`(2) clothes washers described in subsection (b)(2), andCommentsClose CommentsPermalink





`(3) refrigerators described in subsection (b)(3).'.CommentsClose CommentsPermalink





(d) Aggregate Credit Amount Allowed-CommentsClose CommentsPermalink





(1) INCREASE IN LIMIT- Paragraph (1) of section 45M(e) (relating to aggregate credit amount allowed) is amended to read as follows:CommentsClose CommentsPermalink





`(1) AGGREGATE CREDIT AMOUNT ALLOWED- The aggregate amount of credit allowed under subsection (a) with respect to a taxpayer for any taxable year shall not exceed $75,000,000 reduced by the amount of the credit allowed under subsection (a) to the taxpayer (or any predecessor) for all prior taxable years beginning after December 31, 2007.'.CommentsClose CommentsPermalink





(2) EXCEPTION FOR CERTAIN REFRIGERATOR AND CLOTHES WASHERS- Paragraph (2) of section 45M(e) is amended to read as follows:CommentsClose CommentsPermalink





`(2) AMOUNT ALLOWED FOR CERTAIN REFRIGERATORS AND CLOTHES WASHERS- Refrigerators described in subsection (b)(3)(D) and clothes washers described in subsection (b)(2)(D) shall not be taken into account under paragraph (1).'.CommentsClose CommentsPermalink





(e) Qualified Energy Efficient Appliances-CommentsClose CommentsPermalink





(1) IN GENERAL- Paragraph (1) of section 45M(f) (defining qualified energy efficient appliance) is amended to read as follows:CommentsClose CommentsPermalink





`(1) QUALIFIED ENERGY EFFICIENT APPLIANCE- The term `qualified energy efficient appliance' means--CommentsClose CommentsPermalink





`(A) any dishwasher described in subsection (b)(1),CommentsClose CommentsPermalink





`(B) any clothes washer described in subsection (b)(2), andCommentsClose CommentsPermalink





`(C) any refrigerator described in subsection (b)(3).'.CommentsClose CommentsPermalink





(2) CLOTHES WASHER- Section 45M(f)(3) (defining clothes washer) is amended by inserting `commercial' before `residential' the second place it appears.CommentsClose CommentsPermalink





(3) TOP-LOADING CLOTHES WASHER- Subsection (f) of section 45M (relating to definitions) is amended by redesignating paragraphs (4), (5), (6), and (7) as paragraphs (5), (6), (7), and (8), respectively, and by inserting after paragraph (3) the following new paragraph:CommentsClose CommentsPermalink





`(4) TOP-LOADING CLOTHES WASHER- The term `top-loading clothes washer' means a clothes washer which has the clothes container compartment access located on the top of the machine and which operates on a vertical axis.'.CommentsClose CommentsPermalink





(4) REPLACEMENT OF ENERGY FACTOR- Section 45M(f)(6), as redesignated by paragraph (3), is amended to read as follows:CommentsClose CommentsPermalink





`(6) MODIFIED ENERGY FACTOR- The term `modified energy factor' means the modified energy factor established by the Department of Energy for compliance with the Federal energy conservation standard.'.CommentsClose CommentsPermalink





(5) GALLONS PER CYCLE; WATER CONSUMPTION FACTOR- Section 45M(f) (relating to definitions), as amended by paragraph (3), is amended by adding at the end the following:CommentsClose CommentsPermalink





`(9) GALLONS PER CYCLE- The term `gallons per cycle' means, with respect to a dishwasher, the amount of water, expressed in gallons, required to complete a normal cycle of a dishwasher.CommentsClose CommentsPermalink





`(10) WATER CONSUMPTION FACTOR- The term `water consumption factor' means, with respect to a clothes washer, the quotient of the total weighted per-cycle water consumption divided by the cubic foot (or liter) capacity of the clothes washer.'.CommentsClose CommentsPermalink





(f) Effective Date- The amendments made by this section shall apply to appliances produced after December 31, 2007.CommentsClose CommentsPermalink

SEC. 235. FIVE-YEAR APPLICABLE RECOVERY PERIOD FOR DEPRECIATION OF QUALIFIED ENERGY MANAGEMENT DEVICES.

(a) In General- Section 168(e)(3)(B) (relating to 5-year property) is amended by striking `and' at the end of clause (v), by striking the period at the end of clause (vi) and inserting `, and', and by inserting after clause (vi) the following new clause:CommentsClose CommentsPermalink





`(vii) any qualified energy management device.'.CommentsClose CommentsPermalink





(b) Definition of Qualified Energy Management Device- Section 168(i) (relating to definitions and special rules) is amended by inserting at the end the following new paragraph:CommentsClose CommentsPermalink





`(18) QUALIFIED ENERGY MANAGEMENT DEVICE-CommentsClose CommentsPermalink





`(A) IN GENERAL- The term `qualified energy management device' means any energy management device which is installed on real property of a customer of the taxpayer and is placed in service by a taxpayer who--CommentsClose CommentsPermalink





`(i) is a supplier of electric energy or a provider of electric energy services, andCommentsClose CommentsPermalink





`(ii) provides all commercial and residential customers of such supplier or provider with net metering upon the request of such customer.CommentsClose CommentsPermalink





`(B) ENERGY MANAGEMENT DEVICE- For purposes of subparagraph (A), the term `energy management device' means any time-based meter and related communication equipment which is capable of being used by the taxpayer as part of a system that--CommentsClose CommentsPermalink





`(i) measures and records electricity usage data on a time-differentiated basis in at least 24 separate time segments per day,CommentsClose CommentsPermalink





`(ii) provides for the exchange of information between supplier or provider and the customer's energy management device in support of time-based rates or other forms of demand response, andCommentsClose CommentsPermalink





`(iii) provides data to such supplier or provider so that the supplier or provider can provide energy usage information to customers electronically.CommentsClose CommentsPermalink





`(C) NET METERING- For purposes of subparagraph (A), the term `net metering' means allowing customers a credit for providing electricity to the supplier or provider.'.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.CommentsClose CommentsPermalink

TITLE III--REVENUE PROVISIONS

SEC. 301. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO DOMESTIC PRODUCTION OF OIL, GAS, OR PRIMARY PRODUCTS THEREOF.

(a) Denial of Deduction for Major Integrated Oil Companies for Income Attributable to Domestic Production of Oil, Gas, or Primary Products Thereof-CommentsClose CommentsPermalink





(1) IN GENERAL- Subparagraph (B) of section 199(c)(4) (relating to exceptions) is amended by striking `or' at the end of clause (ii), by striking the period at the end of clause (iii) and inserting `, or', and by inserting after clause (iii) the following new clause:CommentsClose CommentsPermalink





`(iv) in the case of any major integrated oil company (as defined in section 167(h)(5)(B)), the production, refining, processing, transportation, or distribution of oil, gas, or any primary product thereof during any taxable year described in section 167(h)(5)(B).'.CommentsClose CommentsPermalink





(2) PRIMARY PRODUCT- Section 199(c)(4)(B) is amended by adding at the end the following flush sentence:CommentsClose CommentsPermalink





`For purposes of clause (iv), the term `primary product' has the same meaning as when used in section 927(a)(2)(C), as in effect before its repeal.'.CommentsClose CommentsPermalink





(b) Limitation on Oil Related Qualified Production Activities Income for Taxpayers Other Than Major Integrated Oil Companies-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 199(d) is amended by redesignating paragraph (9) as paragraph (10) and by inserting after paragraph (8) the following new paragraph:CommentsClose CommentsPermalink





`(9) SPECIAL RULE FOR TAXPAYERS WITH OIL RELATED QUALIFIED PRODUCTION ACTIVITIES INCOME-CommentsClose CommentsPermalink





`(A) IN GENERAL- If a taxpayer (other than a major integrated oil company (as defined in section 167(h)(5)(B))) has oil related qualified production activities income for any taxable year beginning after 2009, the amount of the deduction under subsection (a) shall be reduced by 3 percent of the least of--CommentsClose CommentsPermalink





`(i) the oil related qualified production activities income of the taxpayer for the taxable year,CommentsClose CommentsPermalink





`(ii) the qualified production activities income of the taxpayer for the taxable year, orCommentsClose CommentsPermalink





`(iii) taxable income (determined without regard to this section).CommentsClose CommentsPermalink





`(B) OIL RELATED QUALIFIED PRODUCTION ACTIVITIES INCOME- The term `oil related qualified production activities income' means for any taxable year the qualified production activities income which is attributable to the production, refining, processing, transportation, or distribution of oil, gas, or any primary product thereof during such taxable year.'.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENT- Section 199(d)(2) (relating to application to individuals) is amended by striking `subsection (a)(1)(B)' and inserting `subsections (a)(1)(B) and (d)(9)(A)(iii)'.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2008.CommentsClose CommentsPermalink

SEC. 302. CLARIFICATION OF DETERMINATION OF FOREIGN OIL AND GAS EXTRACTION INCOME.

(a) In General- Paragraph (1) of section 907(c) is amended by redesignating subparagraph (B) as subparagraph (C), by striking `or' at the end of subparagraph (A), and by inserting after subparagraph (A) the following new subparagraph:CommentsClose CommentsPermalink





`(B) so much of any transportation of such minerals as occurs before the fair market value event, or'.CommentsClose CommentsPermalink





(b) Fair Market Value Event- Subsection (c) of section 907 is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(6) FAIR MARKET VALUE EVENT- For purposes of this section, the term `fair market value event' means, with respect to any mineral, the first point in time at which such mineral--CommentsClose CommentsPermalink





`(A) has a fair market value which can be determined on the basis of a transfer, which is an arm's length transaction, of such mineral from the taxpayer to a person who is not related (within the meaning of section 482) to such taxpayer, orCommentsClose CommentsPermalink





`(B) is at a location at which the fair market value is readily ascertainable by reason of transactions among unrelated third parties with respect to the same mineral (taking into account source, location, quality, and chemical composition).'.CommentsClose CommentsPermalink





(c) Special Rule for Certain Petroleum Taxes- Subsection (c) of section 907, as amended by subsection (b), is amended to by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(7) OIL AND GAS TAXES- In the case of any tax imposed by a foreign country which is limited in its application to taxpayers engaged in oil or gas activities--CommentsClose CommentsPermalink





`(A) the term `oil and gas extraction taxes' shall include such tax,CommentsClose CommentsPermalink





`(B) the term `foreign oil and gas extraction income' shall include any taxable income which is taken into account in determining such tax (or is directly attributable to the activity to which such tax relates), andCommentsClose CommentsPermalink





`(C) the term `foreign oil related income' shall not include any taxable income which is treated as foreign oil and gas extraction income under subparagraph (B).'.CommentsClose CommentsPermalink





(d) Conforming Amendments-CommentsClose CommentsPermalink





(1) Subparagraph (C) of section 907(c)(1), as redesignated by this section, is amended by inserting `or used by the taxpayer in the activity described in subparagraph (B)' before the period at the end.CommentsClose CommentsPermalink





(2) Subparagraph (B) of section 907(c)(2) is amended to read as follows:CommentsClose CommentsPermalink





`(B) so much of the transportation of such minerals or primary products as is not taken into account under paragraph (1)(B),'.CommentsClose CommentsPermalink





(e) Effective Date- The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 303. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.

The percentage under subparagraph (C) of section 401(1) of the Tax Increase Prevention and Reconciliation Act of 2005 in effect on the date of the enactment of this Act is increased by 3.00 percentage points.CommentsClose CommentsPermalink

TITLE IV--OTHER PROVISIONS

Subtitle A--Studies

SEC. 401. CARBON AUDIT OF THE TAX CODE.

(a) Study- The Secretary of the Treasury shall enter into an agreement with the National Academy of Sciences to undertake a comprehensive review of the Internal Revenue Code of 1986 to identify the types of and specific tax provisions that have the largest effects on carbon and other greenhouse gas emissions and to estimate the magnitude of those effects.CommentsClose CommentsPermalink





(b) Report- Not later than 2 years after the date of enactment of this Act, the National Academy of Sciences shall submit to Congress a report containing the results of study authorized under this section.CommentsClose CommentsPermalink





(c) Authorization of Appropriations- There is authorized to be appropriated to carry out this section $1,500,000 for the period of fiscal years 2008 and 2009.CommentsClose CommentsPermalink

SEC. 402. COMPREHENSIVE STUDY OF BIOFUELS.

(a) Study- The Secretary of the Treasury, in consultation with the Secretary of Agriculture, the Secretary of Energy, and the Administrator of the Environmental Protection Agency, shall enter into an agreement with the National Academy of Sciences to produce an analysis of current scientific findings to determine--CommentsClose CommentsPermalink





(1) current biofuels production, as well as projections for future production,CommentsClose CommentsPermalink





(2) the maximum amount of biofuels production capable on United States farmland,CommentsClose CommentsPermalink





(3) the domestic effects of a dramatic increase in biofuels production on, for example--CommentsClose CommentsPermalink





(A) the price of fuel,CommentsClose CommentsPermalink





(B) the price of land in rural and suburban communities,CommentsClose CommentsPermalink





(C) crop acreage and other land use,CommentsClose CommentsPermalink





(D) the environment, due to changes in crop acreage, fertilizer use, runoff, water use, emissions from vehicles utilizing biofuels, and other factors,CommentsClose CommentsPermalink





(E) the price of feed,CommentsClose CommentsPermalink





(F) the selling price of grain crops,CommentsClose CommentsPermalink





(G) exports and imports of grains,CommentsClose CommentsPermalink





(H) taxpayers, through cost or savings to commodity crop payments, andCommentsClose CommentsPermalink





(I) the expansion of refinery capacity,CommentsClose CommentsPermalink





(4) the ability to convert corn ethanol plants for other uses, such as cellulosic ethanol or biodiesel,CommentsClose CommentsPermalink





(5) a comparative analysis of corn ethanol versus other biofuels and renewable energy sources, considering cost, energy output, and ease of implementation, andCommentsClose CommentsPermalink





(6) the need for additional scientific inquiry, and specific areas of interest for future research.CommentsClose CommentsPermalink





(b) Report- The National Academy of Sciences shall submit an initial report of the findings of the report required under subsection (a) to the Congress not later than 3 months after the date of the enactment of this Act, and a final report not later than 6 months after such date of enactment.CommentsClose CommentsPermalink

Subtitle B--Application of Certain Labor Standards on Projects Financed Under Tax Credit Bonds

SEC. 411. APPLICATION OF CERTAIN LABOR STANDARDS ON PROJECTS FINANCED UNDER TAX CREDIT BONDS.

Subchapter IV of chapter 31 of title 40, United States Code, shall apply to projects financed with the proceeds of any tax credit bond (as defined in section 54A of the Internal Revenue Code of 1986).CommentsClose CommentsPermalink

Passed the House of Representatives February 27, 2008.CommentsClose CommentsPermalink

Attest:CommentsClose CommentsPermalink

Clerk.

110th CONGRESS2d SessionH. R. 5351AN ACTTo amend the Internal Revenue Code of 1986 to provide tax incentives for the production of renewable energy and energy conservation LORRAINE C. MILLER, CommentsClose CommentsPermalink

Clerk.CommentsClose CommentsPermalink