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HR 7060 EHPCSCommentsClose CommentsPermalink

110th CONGRESSCommentsClose CommentsPermalink

2d SessionCommentsClose CommentsPermalink

H. R. 7060CommentsClose CommentsPermalink

AN ACTCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to provide incentives for energy production and conservation, to extend certain expiring provisions, to provide individual income tax relief, and for other purposes.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, ETC.

(a) Short Title- This Act may be cited as the ‘Renewable Energy and Job Creation Tax Act of 2008’.CommentsClose CommentsPermalink





(b) Reference- 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 for this Act is as follows:CommentsClose CommentsPermalink





Sec. 1. Short title, etc.CommentsClose CommentsPermalink

TITLE I--ENERGY TAX INCENTIVES

Subtitle A--Energy Production Incentives

Part 1--Renewable Energy Incentives

Sec. 101. Renewable energy credit.CommentsClose CommentsPermalink





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





Sec. 103. Energy credit.CommentsClose CommentsPermalink





Sec. 104. Credit for residential energy efficient property.CommentsClose CommentsPermalink





Sec. 105. Special rule to implement FERC and State electric restructuring policy.CommentsClose CommentsPermalink

Part 2--Carbon Mitigation Provisions

Sec. 111. Expansion and modification of advanced coal project investment credit.CommentsClose CommentsPermalink





Sec. 112. Expansion and modification of coal gasification investment credit.CommentsClose CommentsPermalink





Sec. 113. Temporary increase in coal excise tax.CommentsClose CommentsPermalink





Sec. 114. Special rules for refund of the coal excise tax to certain coal producers and exporters.CommentsClose CommentsPermalink





Sec. 115. Carbon audit of the tax code.CommentsClose CommentsPermalink

Subtitle B--Transportation and Domestic Fuel Security Provisions

Sec. 121. Inclusion of cellulosic biofuel in bonus depreciation for biomass ethanol plant property.CommentsClose CommentsPermalink





Sec. 122. Credits for biodiesel and renewable diesel.CommentsClose CommentsPermalink





Sec. 123. Clarification that credits for fuel are designed to provide an incentive for United States production.CommentsClose CommentsPermalink





Sec. 124. Credit for new qualified plug-in electric drive motor vehicles.CommentsClose CommentsPermalink





Sec. 125. Exclusion from heavy truck tax for idling reduction units and advanced insulation.CommentsClose CommentsPermalink





Sec. 126. Transportation fringe benefit to bicycle commuters.CommentsClose CommentsPermalink





Sec. 127. Alternative fuel vehicle refueling property credit.CommentsClose CommentsPermalink





Sec. 128. Certain income and gains relating to alcohol fuels and mixtures, biodiesel fuels and mixtures, and alternative fuels and mixtures treated as qualifying income for publicly traded partnerships.CommentsClose CommentsPermalink

Subtitle C--Energy Conservation and Efficiency Provisions

Sec. 131. Credit for nonbusiness energy property.CommentsClose CommentsPermalink





Sec. 132. Energy efficient commercial buildings deduction.CommentsClose CommentsPermalink





Sec. 133. Modifications of energy efficient appliance credit for appliances produced after 2007.CommentsClose CommentsPermalink





Sec. 134. Accelerated recovery period for depreciation of smart meters and smart grid systems.CommentsClose CommentsPermalink





Sec. 135. Qualified green building and sustainable design projects.CommentsClose CommentsPermalink

TITLE II--EXTENSION OF TEMPORARY PROVISIONS

Subtitle A--Extensions Primarily Affecting Individuals

Sec. 201. Deduction for State and local sales taxes.CommentsClose CommentsPermalink





Sec. 202. Deduction of qualified tuition and related expenses.CommentsClose CommentsPermalink





Sec. 203. Treatment of certain dividends of regulated investment companies.CommentsClose CommentsPermalink





Sec. 204. Tax-free distributions from individual retirement plans for charitable purposes.CommentsClose CommentsPermalink





Sec. 205. Deduction for certain expenses of elementary and secondary school teachers.CommentsClose CommentsPermalink





Sec. 206. Stock in RIC for purposes of determining estates of nonresidents not citizens.CommentsClose CommentsPermalink





Sec. 207. Qualified investment entities.CommentsClose CommentsPermalink





Sec. 208. Real property tax standard deduction.CommentsClose CommentsPermalink

Subtitle B--Extensions Primarily Affecting Businesses

Sec. 221. Research credit.CommentsClose CommentsPermalink





Sec. 222. Indian employment credit.CommentsClose CommentsPermalink





Sec. 223. New markets tax credit.CommentsClose CommentsPermalink





Sec. 224. Railroad track maintenance.CommentsClose CommentsPermalink





Sec. 225. Fifteen-year straight-line cost recovery for qualified leasehold improvements and qualified restaurant property.CommentsClose CommentsPermalink





Sec. 226. Seven-year cost recovery period for motorsports racing track facility.CommentsClose CommentsPermalink





Sec. 227. Accelerated depreciation for business property on Indian reservation.CommentsClose CommentsPermalink





Sec. 228. Expensing of environmental remediation costs.CommentsClose CommentsPermalink





Sec. 229. Deduction allowable with respect to income attributable to domestic production activities in Puerto Rico.CommentsClose CommentsPermalink





Sec. 230. Modification of tax treatment of certain payments to controlling exempt organizations.CommentsClose CommentsPermalink





Sec. 231. Qualified zone academy bonds.CommentsClose CommentsPermalink





Sec. 232. Tax incentives for investment in the District of Columbia.CommentsClose CommentsPermalink





Sec. 233. Economic development credit for American Samoa.CommentsClose CommentsPermalink





Sec. 234. Enhanced charitable deduction for contributions of food inventory.CommentsClose CommentsPermalink





Sec. 235. Enhanced charitable deduction for contributions of book inventory to public schools.CommentsClose CommentsPermalink





Sec. 236. Enhanced deduction for qualified computer contributions.CommentsClose CommentsPermalink





Sec. 237. Basis adjustment to stock of S corporations making charitable contributions of property.CommentsClose CommentsPermalink





Sec. 238. Work opportunity tax credit for Hurricane Katrina employees.CommentsClose CommentsPermalink





Sec. 239. Subpart F exception for active financing income.CommentsClose CommentsPermalink





Sec. 240. Look-thru rule for related controlled foreign corporations.CommentsClose CommentsPermalink





Sec. 241. Expensing for certain qualified film and television productions.CommentsClose CommentsPermalink

Subtitle C--Other Extensions

Sec. 251. Authority to disclose information related to terrorist activities made permanent.CommentsClose CommentsPermalink





Sec. 252. Authority for undercover operations made permanent.CommentsClose CommentsPermalink





Sec. 253. Increase in limit on cover over of rum excise tax to Puerto Rico and the Virgin Islands.CommentsClose CommentsPermalink

TITLE III--ADDITIONAL TAX RELIEF AND OTHER PROVISIONS

Sec. 301. Refundable child credit.CommentsClose CommentsPermalink





Sec. 302. Provisions related to film and television productions.CommentsClose CommentsPermalink





Sec. 303. Exemption from excise tax for certain arrows designed for use by children.CommentsClose CommentsPermalink





Sec. 304. Modification of penalty on understatement of taxpayer’s liability by tax return preparer.CommentsClose CommentsPermalink

TITLE IV--REVENUE PROVISIONS

Sec. 401. Limitation of deduction for income attributable to domestic production of oil, gas, or primary products thereof.CommentsClose CommentsPermalink





Sec. 402. Elimination of the different treatment of foreign oil and gas extraction income and foreign oil related income for purposes of the foreign tax credit.CommentsClose CommentsPermalink





Sec. 403. Broker reporting of customer’s basis in securities transactions.CommentsClose CommentsPermalink





Sec. 404. 0.2 percent FUTA surtax.CommentsClose CommentsPermalink





Sec. 405. Increase and extension of Oil Spill Liability Trust Fund tax.CommentsClose CommentsPermalink





Sec. 406. Nonqualified deferred compensation from certain tax indifferent parties.CommentsClose CommentsPermalink





Sec. 407. Delay in application of worldwide allocation of interest.CommentsClose CommentsPermalink





Sec. 408. Time for payment of corporate estimated taxes.CommentsClose CommentsPermalink

TITLE I--ENERGY TAX INCENTIVESCommentsClose CommentsPermalink

Subtitle A--Energy Production IncentivesCommentsClose CommentsPermalink

PART 1--RENEWABLE ENERGY INCENTIVES

SEC. 101. RENEWABLE ENERGY CREDIT.

(a) Extension of Credit-CommentsClose CommentsPermalink





(1) WIND FACILITIES- Paragraph (1) of section 45(d) is amended by striking ‘January 1, 2009’ and inserting ‘January 1, 2010’.CommentsClose CommentsPermalink





(2) OTHER FACILITIES- Each of the following provisions of section 45(d) is amended by striking ‘January 1, 2009’ and inserting ‘October 1, 2011’:CommentsClose CommentsPermalink





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





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





(C) Paragraph (4).CommentsClose CommentsPermalink





(D) Paragraph (5).CommentsClose CommentsPermalink





(E) Paragraph (6).CommentsClose CommentsPermalink





(F) Paragraph (7).CommentsClose CommentsPermalink





(G) 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 PERCENTAGE- The applicable percentage prescribed by the Secretary for any month under clause (i) shall be the percentage which yields 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 originally placed in service during the same calendar year shall be treated for purposes of this section as 1 facility which is originally 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) Modification of Rules for Hydropower Production- Subparagraph (C) of section 45(c)(8) is amended to read as follows:CommentsClose CommentsPermalink





‘(C) NONHYDROELECTRIC DAM- For purposes of subparagraph (A), a facility is described in this subparagraph if--CommentsClose CommentsPermalink





‘(i) the hydroelectric project installed on the nonhydroelectric dam is licensed by the Federal Energy Regulatory Commission and meets all other applicable environmental, licensing, and regulatory requirements,CommentsClose CommentsPermalink





‘(ii) the nonhydroelectric dam was placed in service before the date of the enactment of this paragraph and operated for flood control, navigation, or water supply purposes and did not produce hydroelectric power on the date of the enactment of this paragraph, andCommentsClose CommentsPermalink





‘(iii) the hydroelectric project is operated so that the water surface elevation at any given location and time that would have occurred in the absence of the hydroelectric project is maintained, subject to any license requirements imposed under applicable law that change the water surface elevation for the purpose of improving environmental quality of the affected waterway.CommentsClose CommentsPermalink





The Secretary, in consultation with the Federal Energy Regulatory Commission, shall certify if a hydroelectric project licensed at a nonhydroelectric dam meets the criteria in clause (iii). Nothing in this section shall affect the standards under which the Federal Energy Regulatory Commission issues licenses for and regulates hydropower projects under part I of the Federal Power Act.’.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 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) 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 October 1, 2011.’.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, is amended by striking ‘October 1, 2011’ 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. 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) 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) is amended by striking ‘December 31, 2008’ and inserting ‘December 31, 2016’.CommentsClose CommentsPermalink





(3) MICROTURBINE PROPERTY- Subparagraph (E) of section 48(c)(2) is amended by striking ‘December 31, 2008’ and inserting ‘December 31, 2016’.CommentsClose CommentsPermalink





(b) Allowance of Energy Credit Against Alternative Minimum Tax-CommentsClose CommentsPermalink





(1) IN GENERAL- Subparagraph (B) of section 38(c)(4) is amended by redesignating clause (vi) as clause (vii), by striking ‘and’ at the end of clause (v), and by inserting after clause (v) the following new clause:CommentsClose CommentsPermalink





‘(vi) the credit determined under section 46 to the extent that such credit is attributable to the energy credit determined under section 48, and’.CommentsClose CommentsPermalink





(2) TECHNICAL AMENDMENT- Clause (v) of section 38(c)(4)(B) is amended by striking ‘section 47 to the extent attributable to’ and inserting ‘section 46 to the extent that such credit is attributable to the rehabilitation credit under section 47, but only with respect to’.CommentsClose CommentsPermalink





(c) Energy Credit for Combined Heat and Power System Property-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 48(a)(3)(A) is amended by striking ‘or’ at the end of clause (iii), by inserting ‘or’ at the end of clause (iv), and by adding at the end the following new clause:CommentsClose CommentsPermalink





‘(v) combined heat and power system property,’.CommentsClose CommentsPermalink





(2) COMBINED HEAT AND POWER SYSTEM PROPERTY- Subsection (c) of section 48 is amended--CommentsClose CommentsPermalink





(A) by striking ‘Qualified Fuel Cell Property; Qualified Microturbine Property’ in the heading and inserting ‘Definitions’, andCommentsClose CommentsPermalink





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





‘(3) COMBINED HEAT AND POWER SYSTEM PROPERTY-CommentsClose CommentsPermalink





‘(A) COMBINED HEAT AND POWER SYSTEM PROPERTY- The term ‘combined heat and power system property’ means property comprising a system--CommentsClose CommentsPermalink





‘(i) which uses the same energy source for the simultaneous or sequential generation of electrical power, mechanical shaft power, or both, in combination with the generation of steam or other forms of useful thermal energy (including heating and cooling applications),CommentsClose CommentsPermalink





‘(ii) which produces--CommentsClose CommentsPermalink





‘(I) at least 20 percent of its total useful energy in the form of thermal energy which is not used to produce electrical or mechanical power (or combination thereof), andCommentsClose CommentsPermalink





‘(II) at least 20 percent of its total useful energy in the form of electrical or mechanical power (or combination thereof),CommentsClose CommentsPermalink





‘(iii) the energy efficiency percentage of which exceeds 60 percent, andCommentsClose CommentsPermalink





‘(iv) which is placed in service before January 1, 2017.CommentsClose CommentsPermalink





‘(B) LIMITATION-CommentsClose CommentsPermalink





‘(i) IN GENERAL- In the case of combined heat and power system property with an electrical capacity in excess of the applicable capacity placed in service during the taxable year, the credit under subsection (a)(1) (determined without regard to this paragraph) for such year shall be equal to the amount which bears the same ratio to such credit as the applicable capacity bears to the capacity of such property.CommentsClose CommentsPermalink





‘(ii) APPLICABLE CAPACITY- For purposes of clause (i), the term ‘applicable capacity’ means 15 megawatts or a mechanical energy capacity of more than 20,000 horsepower or an equivalent combination of electrical and mechanical energy capacities.CommentsClose CommentsPermalink





‘(iii) MAXIMUM CAPACITY- The term ‘combined heat and power system property’ shall not include any property comprising a system if such system has a capacity in excess of 50 megawatts or a mechanical energy capacity in excess of 67,000 horsepower or an equivalent combination of electrical and mechanical energy capacities.CommentsClose CommentsPermalink





‘(C) SPECIAL RULES-CommentsClose CommentsPermalink





‘(i) ENERGY EFFICIENCY PERCENTAGE- For purposes of this paragraph, the energy efficiency percentage of a system is the fraction--CommentsClose CommentsPermalink





‘(I) the numerator of which is the total useful electrical, thermal, and mechanical power produced by the system at normal operating rates, and expected to be consumed in its normal application, andCommentsClose CommentsPermalink





‘(II) the denominator of which is the lower heating value of the fuel sources for the system.CommentsClose CommentsPermalink





‘(ii) DETERMINATIONS MADE ON BTU BASIS- The energy efficiency percentage and the percentages under subparagraph (A)(ii) shall be determined on a Btu basis.CommentsClose CommentsPermalink





‘(iii) INPUT AND OUTPUT PROPERTY NOT INCLUDED- The term ‘combined heat and power system property’ does not include property used to transport the energy source to the facility or to distribute energy produced by the facility.CommentsClose CommentsPermalink





‘(D) SYSTEMS USING BIOMASS- If a system is designed to use biomass (within the meaning of paragraphs (2) and (3) of section 45(c) without regard to the last sentence of paragraph (3)(A)) for at least 90 percent of the energy source--CommentsClose CommentsPermalink





‘(i) subparagraph (A)(iii) shall not apply, butCommentsClose CommentsPermalink





‘(ii) the amount of credit determined under subsection (a) with respect to such system shall not exceed the amount which bears the same ratio to such amount of credit (determined without regard to this subparagraph) as the energy efficiency percentage of such system bears to 60 percent.’.CommentsClose CommentsPermalink





(3) CONFORMING AMENDMENT- Section 48(a)(1) is amended by striking ‘paragraphs (1)(B) and (2)(B)’ and inserting ‘paragraphs (1)(B), (2)(B), and (3)(B)’.CommentsClose CommentsPermalink





(d) 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





(e) Public 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





(f) 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) COMBINED HEAT AND POWER AND FUEL CELL PROPERTY- The amendments made by subsections (c) and (d) 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 UTILITY PROPERTY- The amendments made by subsection (e) 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. CREDIT FOR RESIDENTIAL ENERGY EFFICIENT PROPERTY.

(a) Extension- Section 25D(g) is amended by striking ‘December 31, 2008’ and inserting ‘December 31, 2016’.CommentsClose CommentsPermalink





(b) Removal of Limitation for Solar Electric Property-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 25D(b)(1), as amended by subsections (c) and (d), is amended--CommentsClose CommentsPermalink





(A) by striking subparagraph (A), andCommentsClose CommentsPermalink





(B) by redesignating subparagraphs (B) through (E) as subparagraphs (A) through and (D), respectively.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENT- Section 25D(e)(4)(A), as amended by subsections (c) and (d), is amended--CommentsClose CommentsPermalink





(A) by striking clause (i), andCommentsClose CommentsPermalink





(B) by redesignating clauses (ii) through (v) as clauses (i) and (iv), respectively.CommentsClose CommentsPermalink





(c) Credit for Residential Wind Property-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 25D(a) 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) 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) 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) 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) 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), 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), 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), 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), 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- Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 2007.CommentsClose CommentsPermalink





(2) SOLAR ELECTRIC PROPERTY LIMITATION- The amendments made by subsection (b) 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





(3) 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

SEC. 105. 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) 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

PART 2--CARBON MITIGATION PROVISIONS

SEC. 111. EXPANSION AND MODIFICATION OF ADVANCED COAL PROJECT INVESTMENT CREDIT.

(a) Modification of Credit Amount- Section 48A(a) is amended by striking ‘and’ at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting ‘, and’, and by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(3) 30 percent of the qualified investment for such taxable year in the case of projects described in clause (iii) of subsection (d)(3)(B).’.CommentsClose CommentsPermalink





(b) Expansion of Aggregate Credits- Section 48A(d)(3)(A) is amended by striking ‘$1,300,000,000’ and inserting ‘$2,250,000,000’.CommentsClose CommentsPermalink





(c) Authorization of Additional Projects-CommentsClose CommentsPermalink





(1) IN GENERAL- Subparagraph (B) of section 48A(d)(3) is amended to read as follows:CommentsClose CommentsPermalink





‘(B) PARTICULAR PROJECTS- Of the dollar amount in subparagraph (A), the Secretary is authorized to certify--CommentsClose CommentsPermalink





‘(i) $800,000,000 for integrated gasification combined cycle projects the application for which is submitted during the period described in paragraph (2)(A)(i),CommentsClose CommentsPermalink





‘(ii) $500,000,000 for projects which use other advanced coal-based generation technologies the application for which is submitted during the period described in paragraph (2)(A)(i), andCommentsClose CommentsPermalink





‘(iii) $950,000,000 for advanced coal-based generation technology projects the application for which is submitted during the period described in paragraph (2)(A)(ii).’.CommentsClose CommentsPermalink





(2) APPLICATION PERIOD FOR ADDITIONAL PROJECTS- Subparagraph (A) of section 48A(d)(2) is amended to read as follows:CommentsClose CommentsPermalink





‘(A) APPLICATION PERIOD- Each applicant for certification under this paragraph shall submit an application meeting the requirements of subparagraph (B). An applicant may only submit an application--CommentsClose CommentsPermalink





‘(i) for an allocation from the dollar amount specified in clause (i) or (ii) of paragraph (3)(B) during the 3-year period beginning on the date the Secretary establishes the program under paragraph (1), andCommentsClose CommentsPermalink





‘(ii) for an allocation from the dollar amount specified in paragraph (3)(B)(iii) during the 3-year period beginning at the earlier of the termination of the period described in clause (i) or the date prescribed by the Secretary.’.CommentsClose CommentsPermalink





(3) CAPTURE AND SEQUESTRATION OF CARBON DIOXIDE EMISSIONS REQUIREMENT-CommentsClose CommentsPermalink





(A) IN GENERAL- Section 48A(e)(1) is amended by striking ‘and’ at the end of subparagraph (E), by striking the period at the end of subparagraph (F) and inserting ‘; and’, and by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(G) in the case of any project the application for which is submitted during the period described in subsection (d)(2)(A)(ii), the project includes equipment which separates and sequesters at least 65 percent (70 percent in the case of an application for reallocated credits under subsection (d)(4)) of such project’s total carbon dioxide emissions.’.CommentsClose CommentsPermalink





(B) HIGHEST PRIORITY FOR PROJECTS WHICH SEQUESTER CARBON DIOXIDE EMISSIONS- Section 48A(e)(3) is amended by striking ‘and’ at the end of subparagraph (A)(iii), by striking the period at the end of subparagraph (B)(iii) and inserting ‘, and’, and by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(C) give highest priority to projects with the greatest separation and sequestration percentage of total carbon dioxide emissions.’.CommentsClose CommentsPermalink





(C) RECAPTURE OF CREDIT FOR FAILURE TO SEQUESTER- Section 48A is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(i) Recapture of Credit for Failure To Sequester- The Secretary shall provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any project which fails to attain or maintain the separation and sequestration requirements of subsection (e)(1)(G).’.CommentsClose CommentsPermalink





(4) ADDITIONAL PRIORITY FOR RESEARCH PARTNERSHIPS- Section 48A(e)(3)(B), as amended by paragraph (3)(B), is amended--CommentsClose CommentsPermalink





(A) by striking ‘and’ at the end of clause (ii),CommentsClose CommentsPermalink





(B) by redesignating clause (iii) as clause (iv), andCommentsClose CommentsPermalink





(C) by inserting after clause (ii) the following new clause:CommentsClose CommentsPermalink





‘(iii) applicant participants who have a research partnership with an eligible educational institution (as defined in section 529(e)(5)), and’.CommentsClose CommentsPermalink





(5) CLERICAL AMENDMENT- Section 48A(e)(3) is amended by striking ‘INTEGRATED GASIFICATION COMBINED CYCLE’ in the heading and inserting ‘CERTAIN’.CommentsClose CommentsPermalink





(d) Disclosure of Allocations- Section 48A(d) is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(5) DISCLOSURE OF ALLOCATIONS- The Secretary shall, upon making a certification under this subsection or section 48B(d), publicly disclose the identity of the applicant and the amount of the credit certified with respect to such applicant.’.CommentsClose CommentsPermalink





(e) Effective Dates-CommentsClose CommentsPermalink





(1) IN GENERAL- Except as otherwise provided in this subsection, the amendments made by this section shall apply to credits the application for which is submitted during the period described in section 48A(d)(2)(A)(ii) of the Internal Revenue Code of 1986 and which are allocated or reallocated after the date of the enactment of this Act.CommentsClose CommentsPermalink





(2) DISCLOSURE OF ALLOCATIONS- The amendment made by subsection (d) shall apply to certifications made after the date of the enactment of this Act.CommentsClose CommentsPermalink





(3) CLERICAL AMENDMENT- The amendment made by subsection (c)(5) shall take effect as if included in the amendment made by section 1307(b) of the Energy Tax Incentives Act of 2005.CommentsClose CommentsPermalink

SEC. 112. EXPANSION AND MODIFICATION OF COAL GASIFICATION INVESTMENT CREDIT.

(a) Modification of Credit Amount- Section 48B(a) is amended by inserting ‘(30 percent in the case of credits allocated under subsection (d)(1)(B))’ after ‘20 percent’.CommentsClose CommentsPermalink





(b) Expansion of Aggregate Credits- Section 48B(d)(1) is amended by striking ‘shall not exceed $350,000,000’ and all that follows and inserting ‘shall not exceed--CommentsClose CommentsPermalink





‘(A) $350,000,000, plusCommentsClose CommentsPermalink





‘(B) $150,000,000 for qualifying gasification projects that include equipment which separates and sequesters at least 75 percent of such project’s total carbon dioxide emissions.’.CommentsClose CommentsPermalink





(c) Recapture of Credit for Failure To Sequester- Section 48B is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(f) Recapture of Credit for Failure to Sequester- The Secretary shall provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any project which fails to attain or maintain the separation and sequestration requirements for such project under subsection (d)(1).’.CommentsClose CommentsPermalink





(d) Selection Priorities- Section 48B(d) is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(4) SELECTION PRIORITIES- In determining which qualifying gasification projects to certify under this section, the Secretary shall--CommentsClose CommentsPermalink





‘(A) give highest priority to projects with the greatest separation and sequestration percentage of total carbon dioxide emissions, andCommentsClose CommentsPermalink





‘(B) give high priority to applicant participants who have a research partnership with an eligible educational institution (as defined in section 529(e)(5)).’.CommentsClose CommentsPermalink





(e) Effective Date- The amendments made by this section shall apply to credits described in section 48B(d)(1)(B) of the Internal Revenue Code of 1986 which are allocated or reallocated after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 113. TEMPORARY INCREASE IN COAL EXCISE TAX.

Paragraph (2) of section 4121(e) is amended--CommentsClose CommentsPermalink





(1) by striking ‘January 1, 2014’ in subparagraph (A) and inserting ‘December 31, 2018’, andCommentsClose CommentsPermalink





(2) by striking ‘January 1 after 1981’ in subparagraph (B) and inserting ‘December 31 after 2007’.CommentsClose CommentsPermalink

SEC. 114. SPECIAL RULES FOR REFUND OF THE COAL EXCISE TAX TO CERTAIN COAL PRODUCERS AND EXPORTERS.

(a) Refund-CommentsClose CommentsPermalink





(1) COAL PRODUCERS-CommentsClose CommentsPermalink





(A) IN GENERAL- Notwithstanding subsections (a)(1) and (c) of section 6416 and section 6511 of the Internal Revenue Code of 1986, if--CommentsClose CommentsPermalink





(i) a coal producer establishes that such coal producer, or a party related to such coal producer, exported coal produced by such coal producer to a foreign country or shipped coal produced by such coal producer to a possession of the United States, or caused such coal to be exported or shipped, the export or shipment of which was other than through an exporter who meets the requirements of paragraph (2),CommentsClose CommentsPermalink





(ii) such coal producer filed an excise tax return on or after October 1, 1990, and on or before the date of the enactment of this Act, andCommentsClose CommentsPermalink





(iii) such coal producer files a claim for refund with the Secretary not later than the close of the 30-day period beginning on the date of the enactment of this Act,CommentsClose CommentsPermalink





then the Secretary shall pay to such coal producer an amount equal to the tax paid under section 4121 of such Code on such coal exported or shipped by the coal producer or a party related to such coal producer, or caused by the coal producer or a party related to such coal producer to be exported or shipped.CommentsClose CommentsPermalink





(B) SPECIAL RULES FOR CERTAIN TAXPAYERS- For purposes of this section--CommentsClose CommentsPermalink





(i) IN GENERAL- If a coal producer or a party related to a coal producer has received a judgment described in clause (iii), such coal producer shall be deemed to have established the export of coal to a foreign country or shipment of coal to a possession of the United States under subparagraph (A)(i).CommentsClose CommentsPermalink





(ii) AMOUNT OF PAYMENT- If a taxpayer described in clause (i) is entitled to a payment under subparagraph (A), the amount of such payment shall be reduced by any amount paid pursuant to the judgment described in clause (iii).CommentsClose CommentsPermalink





(iii) JUDGMENT DESCRIBED- A judgment is described in this subparagraph if such judgment--CommentsClose CommentsPermalink





(I) is made by a court of competent jurisdiction within the United States,CommentsClose CommentsPermalink





(II) relates to the constitutionality of any tax paid on exported coal under section 4121 of the Internal Revenue Code of 1986, andCommentsClose CommentsPermalink





(III) is in favor of the coal producer or the party related to the coal producer.CommentsClose CommentsPermalink





(2) EXPORTERS- Notwithstanding subsections (a)(1) and (c) of section 6416 and section 6511 of the Internal Revenue Code of 1986, and a judgment described in paragraph (1)(B)(iii) of this subsection, if--CommentsClose CommentsPermalink





(A) an exporter establishes that such exporter exported coal to a foreign country or shipped coal to a possession of the United States, or caused such coal to be so exported or shipped,CommentsClose CommentsPermalink





(B) such exporter filed a tax return on or after October 1, 1990, and on or before the date of the enactment of this Act, andCommentsClose CommentsPermalink





(C) such exporter files a claim for refund with the Secretary not later than the close of the 30-day period beginning on the date of the enactment of this Act,CommentsClose CommentsPermalink





then the Secretary shall pay to such exporter an amount equal to $0.825 per ton of such coal exported by the exporter or caused to be exported or shipped, or caused to be exported or shipped, by the exporter.CommentsClose CommentsPermalink





(b) Limitations- Subsection (a) shall not apply with respect to exported coal if a settlement with the Federal Government has been made with and accepted by, the coal producer, a party related to such coal producer, or the exporter, of such coal, as of the date that the claim is filed under this section with respect to such exported coal. For purposes of this subsection, the term ‘settlement with the Federal Government’ shall not include any settlement or stipulation entered into as of the date of the enactment of this Act, the terms of which contemplate a judgment concerning which any party has reserved the right to file an appeal, or has filed an appeal.CommentsClose CommentsPermalink





(c) Subsequent Refund Prohibited- No refund shall be made under this section to the extent that a credit or refund of such tax on such exported or shipped coal has been paid to any person.CommentsClose CommentsPermalink





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





(1) COAL PRODUCER- The term ‘coal producer’ means the person in whom is vested ownership of the coal immediately after the coal is severed from the ground, without regard to the existence of any contractual arrangement for the sale or other disposition of the coal or the payment of any royalties between the producer and third parties. The term includes any person who extracts coal from coal waste refuse piles or from the silt waste product which results from the wet washing (or similar processing) of coal.CommentsClose CommentsPermalink





(2) EXPORTER- The term ‘exporter’ means a person, other than a coal producer, who does not have a contract, fee arrangement, or any other agreement with a producer or seller of such coal to export or ship such coal to a third party on behalf of the producer or seller of such coal and--CommentsClose CommentsPermalink





(A) is indicated in the shipper’s export declaration or other documentation as the exporter of record, orCommentsClose CommentsPermalink





(B) actually exported such coal to a foreign country or shipped such coal to a possession of the United States, or caused such coal to be so exported or shipped.CommentsClose CommentsPermalink





(3) RELATED PARTY- The term ‘a party related to such coal producer’ means a person who--CommentsClose CommentsPermalink





(A) is related to such coal producer through any degree of common management, stock ownership, or voting control,CommentsClose CommentsPermalink





(B) is related (within the meaning of section 144(a)(3) of the Internal Revenue Code of 1986) to such coal producer, orCommentsClose CommentsPermalink





(C) has a contract, fee arrangement, or any other agreement with such coal producer to sell such coal to a third party on behalf of such coal producer.CommentsClose CommentsPermalink





(4) SECRETARY- The term ‘Secretary’ means the Secretary of Treasury or the Secretary’s designee.CommentsClose CommentsPermalink





(e) Timing of Refund- With respect to any claim for refund filed pursuant to this section, the Secretary shall determine whether the requirements of this section are met not later than 180 days after such claim is filed. If the Secretary determines that the requirements of this section are met, the claim for refund shall be paid not later than 180 days after the Secretary makes such determination.CommentsClose CommentsPermalink





(f) Interest- Any refund paid pursuant to this section shall be paid by the Secretary with interest from the date of overpayment determined by using the overpayment rate and method under section 6621 of the Internal Revenue Code of 1986.CommentsClose CommentsPermalink





(g) Denial of Double Benefit- The payment under subsection (a) with respect to any coal shall not exceed--CommentsClose CommentsPermalink





(1) in the case of a payment to a coal producer, the amount of tax paid under section 4121 of the Internal Revenue Code of 1986 with respect to such coal by such coal producer or a party related to such coal producer, andCommentsClose CommentsPermalink





(2) in the case of a payment to an exporter, an amount equal to $0.825 per ton with respect to such coal exported by the exporter or caused to be exported by the exporter.CommentsClose CommentsPermalink





(h) Application of Section- This section applies only to claims on coal exported or shipped on or after October 1, 1990, through the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 115. 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 2009 and 2010.CommentsClose CommentsPermalink

Subtitle B--Transportation and Domestic Fuel Security ProvisionsCommentsClose CommentsPermalink

SEC. 121. INCLUSION OF CELLULOSIC BIOFUEL IN BONUS DEPRECIATION FOR BIOMASS ETHANOL PLANT PROPERTY.

(a) In General- Paragraph (3) of section 168(l) is amended to read as follows:CommentsClose CommentsPermalink





‘(3) CELLULOSIC BIOFUEL- The term ‘cellulosic biofuel’ means any liquid fuel which is produced from any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis.’.CommentsClose CommentsPermalink





(b) Conforming Amendments- Subsection (l) of section 168 is amended--CommentsClose CommentsPermalink





(1) by striking ‘cellulosic biomass ethanol’ each place it appears and inserting ‘cellulosic biofuel’,CommentsClose CommentsPermalink





(2) by striking ‘Cellulosic Biomass Ethanol’ in the heading of such subsection and inserting ‘Cellulosic Biofuel’, andCommentsClose CommentsPermalink





(3) by striking ‘CELLULOSIC BIOMASS ETHANOL’ in the heading of paragraph (2) thereof and inserting ‘CELLULOSIC BIOFUEL’.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. 122. 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, 2009’.CommentsClose CommentsPermalink





(b) Increase in Rate of Credit-CommentsClose CommentsPermalink





(1) INCOME TAX CREDIT- Paragraphs (1)(A) and (2)(A) of section 40A(b) are each amended by striking ‘50 cents’ and inserting ‘$1.00’.CommentsClose CommentsPermalink





(2) EXCISE TAX CREDIT- Paragraph (2) of section 6426(c) is amended to read as follows:CommentsClose CommentsPermalink





‘(2) APPLICABLE AMOUNT- For purposes of this subsection, the applicable amount is $1.00.’.CommentsClose CommentsPermalink





(3) CONFORMING AMENDMENTS-CommentsClose CommentsPermalink





(A) Subsection (b) of section 40A is amended by striking paragraph (3) and by redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively.CommentsClose CommentsPermalink





(B) Paragraph (2) of section 40A(f) is amended to read as follows:CommentsClose CommentsPermalink





‘(2) EXCEPTION- Subsection (b)(4) shall not apply with respect to renewable diesel.’.CommentsClose CommentsPermalink





(C) Paragraphs (2) and (3) of section 40A(e) are each amended by striking ‘subsection (b)(5)(C)’ and inserting ‘subsection (b)(4)(C)’.CommentsClose CommentsPermalink





(D) Clause (ii) of section 40A(d)(3)(C) is amended by striking ‘subsection (b)(5)(B)’ and inserting ‘subsection (b)(4)(B)’.CommentsClose CommentsPermalink





(c) 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 ‘, D396, or other equivalent standard approved by the Secretary’.CommentsClose CommentsPermalink





(d) 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





(e) Eligibility of Certain Aviation Fuel- Subsection (f) of section 40A (relating to renewable diesel) is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(4) CERTAIN AVIATION FUEL-CommentsClose CommentsPermalink





‘(A) IN GENERAL- Except as provided in the last three sentences of paragraph (3), the term ‘renewable diesel’ shall include fuel derived from biomass which meets the requirements of a Department of Defense specification for military jet fuel or an American Society of Testing and Materials specification for aviation turbine fuel.CommentsClose CommentsPermalink





‘(B) APPLICATION OF MIXTURE CREDITS- In the case of fuel which is treated as renewable diesel solely by reason of subparagraph (A), subsection (b)(1) and section 6426(c) shall be applied with respect to such fuel by treating kerosene as though it were diesel fuel.’.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 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. 123. CLARIFICATION THAT CREDITS FOR FUEL ARE DESIGNED TO PROVIDE AN INCENTIVE FOR UNITED STATES PRODUCTION.

(a) Alcohol Fuels Credit- Subsection (d) of section 40 is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(7) 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





(b) 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





(c) Excise Tax Credit-CommentsClose CommentsPermalink





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





‘(i) 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





(2) 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(i).’.CommentsClose CommentsPermalink





(d) Effective Date- The amendments made by this section shall apply to claims for credit or payment made on or after May 15, 2008.CommentsClose CommentsPermalink

SEC. 124. CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES.

(a) In General- Section 30 is amended to read as follows:CommentsClose CommentsPermalink

‘SEC. 30. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR 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 new qualified plug-in electric drive motor 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 new qualified plug-in electric drive motor 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 $3,000.CommentsClose CommentsPermalink





‘(3) BATTERY CAPACITY- In the case of a 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) New Qualified Plug-In Electric Drive Motor Vehicle- For purposes of this section--CommentsClose CommentsPermalink





‘(1) IN GENERAL- The term ‘new qualified plug-in electric drive motor vehicle’ means a motor vehicle--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, andCommentsClose 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.CommentsClose CommentsPermalink





‘(2) EXCEPTION- The term ‘new qualified plug-in electric drive motor 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) MOTOR VEHICLE- The term ‘motor vehicle’ means any vehicle which is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails) and which has at least 4 wheels.CommentsClose CommentsPermalink





‘(4) 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





‘(5) 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 New Qualified Plug-In Electric Drive Motor Vehicles Eligible for Credit-CommentsClose CommentsPermalink





‘(1) IN GENERAL- In the case of a new qualified plug-in electric drive motor 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 new qualified plug-in electric drive motor 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) Coordination With Alternative Motor Vehicle Credit- 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 30 (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 by striking ‘plus’ at the end of paragraph (32), by striking the period at the end of paragraph (33) and inserting ‘, plus’, and by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(34) the portion of the new qualified plug-in electric drive motor vehicle credit to which section 30(c)(1) applies.’.CommentsClose CommentsPermalink





(d) Conforming Amendments-CommentsClose CommentsPermalink





(1)(A) Section 24(b)(3)(B), as amended by section 104, is amended by striking ‘and 25D’ and inserting ‘25D, and 30’.CommentsClose CommentsPermalink





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





(C) Section 25B(g)(2), as amended by section 104, is amended by striking ‘and 25D’ and inserting ‘, 25D, and 30’.CommentsClose CommentsPermalink





(D) Section 26(a)(1), as amended by section 104, is amended by striking ‘and 25D’ and inserting ‘25D, and 30’.CommentsClose CommentsPermalink





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





(2) Section 30B(h)(1) is amended by striking ‘section 30(c)(2)’ and inserting ‘section 30(d)(3)’.CommentsClose CommentsPermalink





(3)(A) Section 53(d)(1)(B) is amended by striking clause (iii) and redesignating clause (iv) as clause (iii).CommentsClose CommentsPermalink





(B) Subclause (II) of section 53(d)(1)(B)(iii), as so redesignated, is amended by striking ‘increased in the manner provided in clause (iii)’.CommentsClose CommentsPermalink





(4) Section 55(c)(3) is amended by striking ‘30(b)(3),’.CommentsClose CommentsPermalink





(5) Section 1016(a)(25) is amended by striking ‘section 30(d)(1)’ and inserting ‘section 30(f)(1)’.CommentsClose CommentsPermalink





(6) Section 6501(m) is amended by striking ‘section 30(d)(4)’ and inserting ‘section 30(f)(4)’.CommentsClose CommentsPermalink





(7) The item in the table of sections for subpart B of part IV of subchapter A of chapter 1 is amended to read as follows:CommentsClose CommentsPermalink





‘Sec. 30. New qualified plug-in electric drive motor 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 ‘section 27’.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. 125. EXCLUSION FROM HEAVY TRUCK TAX FOR IDLING REDUCTION UNITS AND ADVANCED INSULATION.

(a) In General- Section 4053 is amended by adding at the end the following new paragraphs:CommentsClose CommentsPermalink





‘(9) IDLING REDUCTION DEVICE- Any device or system of devices which--CommentsClose CommentsPermalink





‘(A) is designed to provide to a vehicle those services (such as heat, air conditioning, or electricity) that would otherwise require the operation of the main drive engine while the vehicle is temporarily parked or remains stationary using one or more devices affixed to a tractor or truck, andCommentsClose CommentsPermalink





‘(B) is determined by the Administrator of the Environmental Protection Agency, in consultation with the Secretary of Energy and the Secretary of Transportation, to reduce idling of such vehicle at a motor vehicle rest stop or other location where such vehicles are temporarily parked or remain stationary.CommentsClose CommentsPermalink





‘(10) ADVANCED INSULATION- Any insulation that has an R value of not less than R35 per inch.’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to sales or installations after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 126. TRANSPORTATION FRINGE BENEFIT TO BICYCLE COMMUTERS.

(a) In General- Paragraph (1) of section 132(f) 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) 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. 127. ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY CREDIT.

(a) Increase in Credit Amount- Section 30C is amended--CommentsClose CommentsPermalink





(1) by striking ‘30 percent’ in subsection (a) and inserting ‘50 percent’,CommentsClose CommentsPermalink





(2) by striking ‘$30,000’ in subsection (b)(1) and inserting ‘$50,000’, andCommentsClose CommentsPermalink





(3) by striking ‘$1,000’ in subsection (b)(2) and inserting ‘$2,000’.CommentsClose CommentsPermalink





(b) Extension of Credit- Subsection (g) of section 30C is amended to read as follows:CommentsClose CommentsPermalink





‘(g) Termination- This section shall not apply to any property placed in service after--CommentsClose CommentsPermalink





‘(1) December 31 2017, in the case of property relating to natural gas, compressed natural gas, or liquified natural gas, and which is not of a character subject to an allowance for depreciation,CommentsClose CommentsPermalink





‘(2) December 31, 2014, in the case of--CommentsClose CommentsPermalink





‘(A) property relating to hydrogen, andCommentsClose CommentsPermalink





‘(B) property relating to natural gas, compressed natural gas, or liquified natural gas, and which is of a character subject to an allowance for depreciation, andCommentsClose CommentsPermalink





‘(3) December 31, 2010, in any other case.’.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. 128. CERTAIN INCOME AND GAINS RELATING TO ALCOHOL FUELS AND MIXTURES, BIODIESEL FUELS AND MIXTURES, AND ALTERNATIVE FUELS AND MIXTURES TREATED AS QUALIFYING INCOME FOR PUBLICLY TRADED PARTNERSHIPS.

(a) In General- Subparagraph (E) of section 7704(d)(1) is amended by inserting ‘, or the transportation or storage of any fuel described in subsection (b), (c), (d), or (e) of section 6426, or any alcohol fuel defined in section 6426(b)(4)(A) or any biodiesel fuel as defined in section 40A(d)(1)’ after ‘timber)’.CommentsClose CommentsPermalink





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

Subtitle C--Energy Conservation and Efficiency ProvisionsCommentsClose CommentsPermalink

SEC. 131. CREDIT FOR NONBUSINESS ENERGY PROPERTY.

(a) Extension of Credit- Section 25C(g) is amended by striking ‘placed in service after December 31, 2007’ and inserting ‘placed in service--CommentsClose CommentsPermalink





‘(1) after December 31, 2007, and before January 1, 2009, orCommentsClose CommentsPermalink





‘(2) after 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) 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), as amended by subsection (b), is amended by striking subparagraph (C) and by redesignating subparagraphs (D), (E), and (F) as subparagraphs (C), (D), and (E), 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 by this section shall apply to expenditures made after December 31, 2008.CommentsClose CommentsPermalink

SEC. 132. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.

Subsection (h) of section 179D is amended by striking ‘December 31, 2008’ and inserting ‘December 31, 2013’.CommentsClose CommentsPermalink

SEC. 133. MODIFICATIONS OF ENERGY EFFICIENT APPLIANCE CREDIT FOR APPLIANCES PRODUCED AFTER 2007.

(a) In General- Subsection (b) of section 45M 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 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’,CommentsClose CommentsPermalink





(C) by moving the text of such subsection in line with the subsection heading, andCommentsClose CommentsPermalink





(D) by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively, and by moving such paragraphs 2 ems to the left.CommentsClose CommentsPermalink





(2) MODIFICATION OF BASE PERIOD- Paragraph (2) of section 45M(c), as amended by paragraph (1), 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) 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) is amended by inserting ‘commercial’ before ‘residential’ the second place it appears.CommentsClose CommentsPermalink





(3) TOP-LOADING CLOTHES WASHER- Subsection (f) of section 45M 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), 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. 134. ACCELERATED RECOVERY PERIOD FOR DEPRECIATION OF SMART METERS AND SMART GRID SYSTEMS.

(a) In General- Section 168(e)(3)(D) is amended by striking ‘and’ at the end of clause (i), by striking the period at the end of clause (ii) and inserting a comma, and by inserting after clause (ii) the following new clauses:CommentsClose CommentsPermalink





‘(iii) any qualified smart electric meter, andCommentsClose CommentsPermalink





‘(iv) any qualified smart electric grid system.’.CommentsClose CommentsPermalink





(b) Definitions- Section 168(i) is amended by inserting at the end the following new paragraph:CommentsClose CommentsPermalink





‘(18) QUALIFIED SMART ELECTRIC METERS-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The term ‘qualified smart electric meter’ means any smart electric meter which is placed in service by a taxpayer who is a supplier of electric energy or a provider of electric energy services.CommentsClose CommentsPermalink





‘(B) SMART ELECTRIC METER- For purposes of subparagraph (A), the term ‘smart electric meter’ 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 electric meter in support of time-based rates or other forms of demand response,CommentsClose CommentsPermalink





‘(iii) provides data to such supplier or provider so that the supplier or provider can provide energy usage information to customers electronically, andCommentsClose CommentsPermalink





‘(iv) provides net metering.CommentsClose CommentsPermalink





‘(19) QUALIFIED SMART ELECTRIC GRID SYSTEMS-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The term ‘qualified smart electric grid system’ means any smart grid property used as part of a system for electric distribution grid communications, monitoring, and management placed in service by a taxpayer who is a supplier of electric energy or a provider of electric energy services.CommentsClose CommentsPermalink





‘(B) SMART GRID PROPERTY- For the purposes of subparagraph (A), the term ‘smart grid property’ means electronics and related equipment that is capable of--CommentsClose CommentsPermalink





‘(i) sensing, collecting, and monitoring data of or from all portions of a utility’s electric distribution grid,CommentsClose CommentsPermalink





‘(ii) providing real-time, two-way communications to monitor or manage such grid, andCommentsClose CommentsPermalink





‘(iii) providing real time analysis of and event prediction based upon collected data that can be used to improve electric distribution system reliability, quality, and performance.’.CommentsClose CommentsPermalink





(c) Continued Application of 150 Percent Declining Balance Method- Paragraph (2) of section 168(b) is amended by striking ‘or’ at the end of subparagraph (B), by redesignating subparagraph (C) as subparagraph (D), and by inserting after subparagraph (B) the following new subparagraph:CommentsClose CommentsPermalink





‘(C) any property (other than property described in paragraph (3)) which is a qualified smart electric meter or qualified smart electric grid system, or’.CommentsClose CommentsPermalink





(d) 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

SEC. 135. QUALIFIED GREEN BUILDING AND SUSTAINABLE DESIGN PROJECTS.

(a) In General- Paragraph (8) of section 142(l) is amended by striking ‘September 30, 2009’ and inserting ‘September 30, 2012’.CommentsClose CommentsPermalink





(b) Treatment of Current Refunding Bonds- Paragraph (9) of section 142(l) is amended by striking ‘October 1, 2009’ and inserting ‘October 1, 2012’.CommentsClose CommentsPermalink





(c) Accountability- The second sentence of section 701(d) of the American Jobs Creation Act of 2004 is amended by striking ‘issuance,’ and inserting ‘issuance of the last issue with respect to such project,’.CommentsClose CommentsPermalink

TITLE II--EXTENSION OF TEMPORARY PROVISIONSCommentsClose CommentsPermalink

Subtitle A--Extensions Primarily Affecting IndividualsCommentsClose CommentsPermalink

SEC. 201. DEDUCTION FOR STATE AND LOCAL SALES TAXES.

(a) In General- Subparagraph (I) of section 164(b)(5) is amended by striking ‘January 1, 2008’ and inserting ‘January 1, 2010’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to taxable years beginning after December 31, 2007.CommentsClose CommentsPermalink

SEC. 202. DEDUCTION OF QUALIFIED TUITION AND RELATED EXPENSES.

(a) In General- Subsection (e) of section 222 is amended by striking ‘December 31, 2007’ and inserting ‘December 31, 2009’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to taxable years beginning after December 31, 2007.CommentsClose CommentsPermalink





(c) Temporary Coordination With Hope and Lifetime Learning Credit- In the case of any taxpayer for any taxable year beginning in 2008 or 2009, no deduction shall be allowed under section 222 of the Internal Revenue Code of 1986 if--CommentsClose CommentsPermalink





(1) the taxpayer’s net Federal income tax reduction which would be attributable to such deduction for such taxable year, is less thanCommentsClose CommentsPermalink





(2) the credit which would be allowed to the taxpayer for such taxable year under section 25A of such Code (determined without regard to sections 25A(e) and 26 of such Code).CommentsClose CommentsPermalink

SEC. 203. TREATMENT OF CERTAIN DIVIDENDS OF REGULATED INVESTMENT COMPANIES.

(a) Interest-Related Dividends- Subparagraph (C) of section 871(k)(1) (defining interest-related dividend) is amended by striking ‘December 31, 2007’ and inserting ‘December 31, 2009’.CommentsClose CommentsPermalink





(b) Short-Term Capital Gain Dividends- Subparagraph (C) of section 871(k)(2) (defining short-term capital gain dividend) is amended by striking ‘December 31, 2007’ and inserting ‘December 31, 2009’.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to dividends with respect to taxable years of regulated investment companies beginning after December 31, 2007.CommentsClose CommentsPermalink

SEC. 204. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT PLANS FOR CHARITABLE PURPOSES.

(a) In General- Subparagraph (F) of section 408(d)(8) is amended by striking ‘December 31, 2007’ and inserting ‘December 31, 2009’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to distributions made in taxable years beginning after December 31, 2007.CommentsClose CommentsPermalink

SEC. 205. DEDUCTION FOR CERTAIN EXPENSES OF ELEMENTARY AND SECONDARY SCHOOL TEACHERS.

(a) In General- Subparagraph (D) of section 62(a)(2) is amended by striking ‘or 2007’ and inserting ‘2007, 2008, or 2009’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2007.CommentsClose CommentsPermalink

SEC. 206. STOCK IN RIC FOR PURPOSES OF DETERMINING ESTATES OF NONRESIDENTS NOT CITIZENS.

(a) In General- Paragraph (3) of section 2105(d) is amended by striking ‘December 31, 2007’ and inserting ‘December 31, 2009’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to decedents dying after December 31, 2007.CommentsClose CommentsPermalink

SEC. 207. QUALIFIED INVESTMENT ENTITIES.

(a) In General- Clause (ii) of section 897(h)(4)(A) is amended by striking ‘December 31, 2007’ and inserting ‘December 31, 2009’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by subsection (a) shall take effect on January 1, 2008, except that such amendment shall not apply to the application of withholding requirements with respect to any payment made on or before the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 208. REAL PROPERTY TAX STANDARD DEDUCTION.

(a) In General- Subparagraph (C) of section 63(c)(1) is amended by inserting ‘or 2009’ after ‘2008’.CommentsClose CommentsPermalink





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

Subtitle B--Extensions Primarily Affecting BusinessesCommentsClose CommentsPermalink

SEC. 221. RESEARCH CREDIT.

(a) In General- Subparagraph (B) of section 41(h)(1) is amended by striking ‘December 31, 2007’ and inserting ‘December 31, 2009’.CommentsClose CommentsPermalink





(b) Computation of Credit for Taxable Year in Which Credit Terminates- Paragraph (2) of section 41(h) is amended to read as follows:CommentsClose CommentsPermalink





‘(2) COMPUTATION OF CREDIT FOR TAXABLE YEAR IN WHICH CREDIT TERMINATES-CommentsClose CommentsPermalink





‘(A) IN GENERAL- In the case of any taxable year with respect to which this section applies to a number of days which is less than the total number of days in such taxable year, the applicable base amount with respect to such taxable year shall be the amount which bears the same ratio to such applicable amount (determined without regard to this paragraph) as the number of days in such taxable year to which this section applies bears to the total number of days in such taxable year.CommentsClose CommentsPermalink





‘(B) APPLICABLE BASE AMOUNT- For purposes of subparagraph (A), the term ‘applicable base amount’ means, with respect to any taxable year--CommentsClose CommentsPermalink





‘(i) except as otherwise provided in this subparagraph, the base amount for the taxable year,CommentsClose CommentsPermalink





‘(ii) in the case of a taxable year with respect to which an election under subsection (c)(4) (relating to election of alternative incremental credit) is in effect, the average described in subsection (c)(1)(B) for the taxable year, andCommentsClose CommentsPermalink





‘(iii) in the case of a taxable year with respect to which an election under subsection (c)(5) (relating to election of alternative simplified credit) is in effect, the average qualified research expenses for the 3 taxable years preceding the taxable year.’.CommentsClose CommentsPermalink





(c) Conforming Amendment- Subparagraph (D) of section 45C(b)(1) is amended by striking ‘December 31, 2007’ and inserting ‘December 31, 2009’.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 amounts paid or incurred after December 31, 2007.CommentsClose CommentsPermalink





(2) COMPUTATION OF CREDIT FOR TAXABLE YEAR IN WHICH CREDIT BEGINS- The amendment made by subsection (b) shall apply to taxable years beginning after December 31, 2007.CommentsClose CommentsPermalink

SEC. 222. INDIAN EMPLOYMENT CREDIT.

(a) In General- Subsection (f) of section 45A is amended by striking ‘December 31, 2007’ and inserting ‘December 31, 2009’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to taxable years beginning after December 31, 2007.CommentsClose CommentsPermalink

SEC. 223. NEW MARKETS TAX CREDIT.

Subparagraph (D) of section 45D(f)(1) is amended by striking ‘and 2008’ and inserting ‘2008, and 2009’.CommentsClose CommentsPermalink

SEC. 224. RAILROAD TRACK MAINTENANCE.

(a) In General- Subsection (f) of section 45G is amended by striking ‘January 1, 2008’ and inserting ‘January 1, 2010’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to expenditures paid or incurred during taxable years beginning after December 31, 2007.CommentsClose CommentsPermalink

SEC. 225. FIFTEEN-YEAR STRAIGHT-LINE COST RECOVERY FOR QUALIFIED LEASEHOLD IMPROVEMENTS AND QUALIFIED RESTAURANT PROPERTY.

(a) In General- Clauses (iv) and (v) of section 168(e)(3)(E) are each amended by striking ‘January 1, 2008’ and inserting ‘January 1, 2010’.CommentsClose CommentsPermalink





(b) Effective Date- The amendments made by this section shall apply to property placed in service after December 31, 2007.CommentsClose CommentsPermalink

SEC. 226. SEVEN-YEAR COST RECOVERY PERIOD FOR MOTORSPORTS RACING TRACK FACILITY.

(a) In General- Subparagraph (D) of section 168(i)(15) is amended by striking ‘December 31, 2007’ and inserting ‘December 31, 2009’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to property placed in service after December 31, 2007.CommentsClose CommentsPermalink

SEC. 227. ACCELERATED DEPRECIATION FOR BUSINESS PROPERTY ON INDIAN RESERVATION.

(a) In General- Paragraph (8) of section 168(j) is amended by striking ‘December 31, 2007’ and inserting ‘December 31, 2009’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to property placed in service after December 31, 2007.CommentsClose CommentsPermalink

SEC. 228. EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.

(a) In General- Subsection (h) of section 198 is amended by striking ‘December 31, 2007’ and inserting ‘December 31, 2009’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to expenditures paid or incurred after December 31, 2007.CommentsClose CommentsPermalink

SEC. 229. DEDUCTION ALLOWABLE WITH RESPECT TO INCOME ATTRIBUTABLE TO DOMESTIC PRODUCTION ACTIVITIES IN PUERTO RICO.

(a) In General- Subparagraph (C) of section 199(d)(8) is amended--CommentsClose CommentsPermalink





(1) by striking ‘first 2 taxable years’ and inserting ‘first 4 taxable years’, andCommentsClose CommentsPermalink





(2) by striking ‘January 1, 2008’ and inserting ‘January 1, 2010’.CommentsClose CommentsPermalink





(b) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2007.CommentsClose CommentsPermalink

SEC. 230. MODIFICATION OF TAX TREATMENT OF CERTAIN PAYMENTS TO CONTROLLING EXEMPT ORGANIZATIONS.

(a) In General- Clause (iv) of section 512(b)(13)(E) is amended by striking ‘December 31, 2007’ and inserting ‘December 31, 2009’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to payments received or accrued after December 31, 2007.CommentsClose CommentsPermalink

SEC. 231. QUALIFIED ZONE ACADEMY BONDS.

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

‘SEC. 54C. QUALIFIED ZONE ACADEMY BONDS.

‘(a) Qualified Zone Academy Bonds- For purposes of this subchapter, the term ‘qualified zone academy 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 a qualified purpose with respect to a qualified zone academy established by an eligible local education agency,CommentsClose CommentsPermalink





‘(2) the bond is issued by a State or local government within the jurisdiction of which such academy is located, andCommentsClose CommentsPermalink





‘(3) the issuer--CommentsClose CommentsPermalink





‘(A) designates such bond for purposes of this section,CommentsClose CommentsPermalink





‘(B) certifies that it has written assurances that the private business contribution requirement of subsection (b) will be met with respect to such academy, andCommentsClose CommentsPermalink





‘(C) certifies that it has the written approval of the eligible local education agency for such bond issuance.CommentsClose CommentsPermalink





‘(b) Private Business Contribution Requirement- For purposes of subsection (a), the private business contribution requirement of this subsection is met with respect to any issue if the eligible local education agency that established the qualified zone academy has written commitments from private entities to make qualified contributions having a present value (as of the date of issuance of the issue) of not less than 10 percent of the proceeds of the issue.CommentsClose CommentsPermalink





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





‘(1) NATIONAL LIMITATION- There is a national zone academy bond limitation for each calendar year. Such limitation is $400,000,000 for 2008 and 2009, and, except as provided in paragraph (4), zero thereafter.CommentsClose CommentsPermalink





‘(2) ALLOCATION OF LIMITATION- The national zone academy bond limitation for a calendar year shall be allocated by the Secretary among the States on the basis of their respective populations of individuals below the poverty line (as defined by the Office of Management and Budget). The limitation amount allocated to a State under the preceding sentence shall be allocated by the State education agency to qualified zone academies within such State.CommentsClose CommentsPermalink





‘(3) DESIGNATION SUBJECT TO LIMITATION AMOUNT- The maximum aggregate face amount of bonds issued during any calendar year which may be designated under subsection (a) with respect to any qualified zone academy shall not exceed the limitation amount allocated to such academy under paragraph (2) for such calendar year.CommentsClose CommentsPermalink





‘(4) CARRYOVER OF UNUSED LIMITATION-CommentsClose CommentsPermalink





‘(A) IN GENERAL- If for any calendar year--CommentsClose CommentsPermalink





‘(i) the limitation amount for any State, exceedsCommentsClose CommentsPermalink





‘(ii) the amount of bonds issued during such year which are designated under subsection (a) with respect to qualified zone academies within such State,CommentsClose CommentsPermalink





the limitation amount for such State for the following calendar year shall be increased by the amount of such excess.CommentsClose CommentsPermalink





‘(B) LIMITATION ON CARRYOVER- Any carryforward of a limitation amount may be carried only to the first 2 years following the unused limitation year. For purposes of the preceding sentence, a limitation amount shall be treated as used on a first-in first-out basis.CommentsClose CommentsPermalink





‘(C) COORDINATION WITH SECTION 1397E- Any carryover determined under section 1397E(e)(4) (relating to carryover of unused limitation) with respect to any State to calendar year 2008 shall be treated for purposes of this section as a carryover with respect to such State for such calendar year under subparagraph (A), and the limitation of subparagraph (B) shall apply to such carryover taking into account the calendar years to which such carryover relates.CommentsClose CommentsPermalink





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





‘(1) QUALIFIED ZONE ACADEMY- The term ‘qualified zone academy’ means any public school (or academic program within a public school) which is established by and operated under the supervision of an eligible local education agency to provide education or training below the postsecondary level if--CommentsClose CommentsPermalink





‘(A) such public school or program (as the case may be) is designed in cooperation with business to enhance the academic curriculum, increase graduation and employment rates, and better prepare students for the rigors of college and the increasingly complex workforce,CommentsClose CommentsPermalink





‘(B) students in such public school or program (as the case may be) will be subject to the same academic standards and assessments as other students educated by the eligible local education agency,CommentsClose CommentsPermalink





‘(C) the comprehensive education plan of such public school or program is approved by the eligible local education agency, andCommentsClose CommentsPermalink





‘(D)(i) such public school is located in an empowerment zone or enterprise community (including any such zone or community designated after the date of the enactment of this section), orCommentsClose CommentsPermalink





‘(ii) there is a reasonable expectation (as of the date of issuance of the bonds) that at least 35 percent of the students attending such school or participating in such program (as the case may be) will be eligible for free or reduced-cost lunches under the school lunch program established under the National School Lunch Act.CommentsClose CommentsPermalink





‘(2) ELIGIBLE LOCAL EDUCATION AGENCY- For purposes of this section, the term ‘eligible local education agency’ means any local educational agency as defined in section 9101 of the Elementary and Secondary Education Act of 1965.CommentsClose CommentsPermalink





‘(3) QUALIFIED PURPOSE- The term ‘qualified purpose’ means, with respect to any qualified zone academy--CommentsClose CommentsPermalink





‘(A) rehabilitating or repairing the public school facility in which the academy is established,CommentsClose CommentsPermalink





‘(B) providing equipment for use at such academy,CommentsClose CommentsPermalink





‘(C) developing course materials for education to be provided at such academy, andCommentsClose CommentsPermalink





‘(D) training teachers and other school personnel in such academy.CommentsClose CommentsPermalink





‘(4) QUALIFIED CONTRIBUTIONS- The term ‘qualified contribution’ means any contribution (of a type and quality acceptable to the eligible local education agency) of--CommentsClose CommentsPermalink





‘(A) equipment for use in the qualified zone academy (including state-of-the-art technology and vocational equipment),CommentsClose CommentsPermalink





‘(B) technical assistance in developing curriculum or in training teachers in order to promote appropriate market driven technology in the classroom,CommentsClose CommentsPermalink





‘(C) services of employees as volunteer mentors,CommentsClose CommentsPermalink





‘(D) internships, field trips, or other educational opportunities outside the academy for students, orCommentsClose CommentsPermalink





‘(E) any other property or service specified by the eligible local education agency.’.CommentsClose CommentsPermalink





(b) Conforming Amendments-CommentsClose CommentsPermalink





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





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





‘(A) a qualified forestry conservation bond, orCommentsClose CommentsPermalink





‘(B) a qualified zone academy bond,CommentsClose CommentsPermalink





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





(2) Subparagraph (C) of section 54A(d)(2) 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 qualified forestry conservation bond, a purpose specified in section 54B(e), andCommentsClose CommentsPermalink





‘(ii) in the case of a qualified zone academy bond, a purpose specified in section 54C(a)(1).’.CommentsClose CommentsPermalink





(3) Section 1397E is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(m) Termination- This section shall not apply to any obligation issued after the date of the enactment of this subsection.’.CommentsClose CommentsPermalink





(4) 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 zone academy 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. TAX INCENTIVES FOR INVESTMENT IN THE DISTRICT OF COLUMBIA.

(a) Designation of Zone-CommentsClose CommentsPermalink





(1) IN GENERAL- Subsection (f) of section 1400 is amended by striking ‘2007’ both places it appears and inserting ‘2009’.CommentsClose CommentsPermalink





(2) EFFECTIVE DATE- The amendments made by this subsection shall apply to periods beginning after December 31, 2007.CommentsClose CommentsPermalink





(b) Tax-Exempt Economic Development Bonds-CommentsClose CommentsPermalink





(1) IN GENERAL- Subsection (b) of section 1400A is amended by striking ‘2007’ and inserting ‘2009’.CommentsClose CommentsPermalink





(2) EFFECTIVE DATE- The amendment made by this subsection shall apply to bonds issued after December 31, 2007.CommentsClose CommentsPermalink





(c) Zero Percent Capital Gains Rate-CommentsClose CommentsPermalink





(1) IN GENERAL- Subsection (b) of section 1400B is amended by striking ‘2008’ each place it appears and inserting ‘2010’.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENTS-CommentsClose CommentsPermalink





(A) Section 1400B(e)(2) is amended--CommentsClose CommentsPermalink





(i) by striking ‘2012’ and inserting ‘2014’, andCommentsClose CommentsPermalink





(ii) by striking ‘2012’ in the heading thereof and inserting ‘2014’.CommentsClose CommentsPermalink





(B) Section 1400B(g)(2) is amended by striking ‘2012’ and inserting ‘2014’.CommentsClose CommentsPermalink





(C) Section 1400F(d) is amended by striking ‘2012’ and inserting ‘2014’.CommentsClose CommentsPermalink





(3) EFFECTIVE DATES-CommentsClose CommentsPermalink





(A) EXTENSION- The amendments made by paragraph (1) shall apply to acquisitions after December 31, 2007.CommentsClose CommentsPermalink





(B) CONFORMING AMENDMENTS- The amendments made by paragraph (2) shall take effect on the date of the enactment of this Act.CommentsClose CommentsPermalink





(d) First-Time Homebuyer Credit-CommentsClose CommentsPermalink





(1) IN GENERAL- Subsection (i) of section 1400C is amended by striking ‘2008’ and inserting ‘2010’.CommentsClose CommentsPermalink





(2) EFFECTIVE DATE- The amendment made by this subsection shall apply to property purchased after December 31, 2007.CommentsClose CommentsPermalink

SEC. 233. ECONOMIC DEVELOPMENT CREDIT FOR AMERICAN SAMOA.

(a) In General- Subsection (d) of section 119 of division A of the Tax Relief and Health Care Act of 2006 is amended--CommentsClose CommentsPermalink





(1) by striking ‘first two taxable years’ and inserting ‘first 4 taxable years’, andCommentsClose CommentsPermalink





(2) by striking ‘January 1, 2008’ and inserting ‘January 1, 2010’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to taxable years beginning after December 31, 2007.CommentsClose CommentsPermalink

SEC. 234. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF FOOD INVENTORY.

(a) In General- Clause (iv) of section 170(e)(3)(C) is amended by striking ‘December 31, 2007’ and inserting ‘December 31, 2009’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to contributions made after December 31, 2007.CommentsClose CommentsPermalink

SEC. 235. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF BOOK INVENTORY TO PUBLIC SCHOOLS.

(a) In General- Clause (iv) of section 170(e)(3)(D) is amended by striking ‘December 31, 2007’ and inserting ‘December 31, 2009’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to contributions made after December 31, 2007.CommentsClose CommentsPermalink

SEC. 236. ENHANCED DEDUCTION FOR QUALIFIED COMPUTER CONTRIBUTIONS.

(a) In General- Subparagraph (G) of section 170(e)(6) is amended by striking ‘December 31, 2007’ and inserting ‘December 31, 2009’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to contributions made during taxable years beginning after December 31, 2007.CommentsClose CommentsPermalink

SEC. 237. BASIS ADJUSTMENT TO STOCK OF S CORPORATIONS MAKING CHARITABLE CONTRIBUTIONS OF PROPERTY.

(a) In General- The last sentence of section 1367(a)(2) is amended by striking ‘December 31, 2007’ and inserting ‘December 31, 2009’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to contributions made in taxable years beginning after December 31, 2007.CommentsClose CommentsPermalink

SEC. 238. WORK OPPORTUNITY TAX CREDIT FOR HURRICANE KATRINA EMPLOYEES.

(a) In General- Paragraph (1) of section 201(b) of the Katrina Emergency Tax Relief Act of 2005 is amended by striking ‘2-year’ and inserting ‘4-year’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by subsection (a) shall apply to individuals hired after August 27, 2007.CommentsClose CommentsPermalink

SEC. 239. SUBPART F EXCEPTION FOR ACTIVE FINANCING INCOME.

(a) Exempt Insurance Income- Paragraph (10) of section 953(e) (relating to application) is amended--CommentsClose CommentsPermalink





(1) by striking ‘January 1, 2009’ and inserting ‘January 1, 2010’, andCommentsClose CommentsPermalink





(2) by striking ‘December 31, 2008’ and inserting ‘December 31, 2009’.CommentsClose CommentsPermalink





(b) Exception to Treatment as Foreign Personal Holding Company Income- Paragraph (9) of section 954(h) (relating to application) is amended by striking ‘January 1, 2009’ and inserting ‘January 1, 2010’.CommentsClose CommentsPermalink

SEC. 240. LOOK-THRU RULE FOR RELATED CONTROLLED FOREIGN CORPORATIONS.

(a) In General- Subparagraph (C) of section 954(c)(6) (relating to application) is amended by striking ‘January 1, 2009’ and inserting ‘January 1, 2010’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2008, and to taxable years of United States shareholders with or within which such taxable years of foreign corporations end.CommentsClose CommentsPermalink

SEC. 241. EXPENSING FOR CERTAIN QUALIFIED FILM AND TELEVISION PRODUCTIONS.

(a) In General- Subsection (f) of section 181 is amended by striking ‘December 31, 2008’ and inserting ‘December 31, 2009’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to productions commencing after December 31, 2008.CommentsClose CommentsPermalink

Subtitle C--Other ExtensionsCommentsClose CommentsPermalink

SEC. 251. AUTHORITY TO DISCLOSE INFORMATION RELATED TO TERRORIST ACTIVITIES MADE PERMANENT.

(a) In General- Subparagraph (C) of section 6103(i)(3) is amended by striking clause (iv).CommentsClose CommentsPermalink





(b) Disclosure on Request- Paragraph (7) of section 6103(i) is amended by striking subparagraph (E).CommentsClose CommentsPermalink





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

SEC. 252. AUTHORITY FOR UNDERCOVER OPERATIONS MADE PERMANENT.

(a) In General- Subsection (c) of section 7608 is amended by striking paragraph (6).CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall take effect on January 1, 2008.CommentsClose CommentsPermalink

SEC. 253. INCREASE IN LIMIT ON COVER OVER OF RUM EXCISE TAX TO PUERTO RICO AND THE VIRGIN ISLANDS.

(a) In General- Paragraph (1) of section 7652(f) is amended by striking ‘January 1, 2008’ and inserting ‘January 1, 2010’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to distilled spirits brought into the United States after December 31, 2007.CommentsClose CommentsPermalink

TITLE III--ADDITIONAL TAX RELIEF AND OTHER PROVISIONSCommentsClose CommentsPermalink

SEC. 301. REFUNDABLE CHILD CREDIT.

(a) Modification of Threshold Amount- Clause (i) of section 24(d)(1)(B) is amended by inserting ‘($8,500 in the case of taxable years beginning in 2009)’ after ‘$10,000’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2008.CommentsClose CommentsPermalink

SEC. 302. PROVISIONS RELATED TO FILM AND TELEVISION PRODUCTIONS.

(a) Modification of Limitation on Expensing- Subparagraph (A) of section 181(a)(2) is amended to read as follows:CommentsClose CommentsPermalink





‘(A) IN GENERAL- Paragraph (1) shall not apply to so much of the aggregate cost of any qualified film or television production as exceeds $15,000,000.’.CommentsClose CommentsPermalink





(b) Modifications to Deduction for Domestic Activities-CommentsClose CommentsPermalink





(1) DETERMINATION OF W-2 WAGES- Paragraph (2) of section 199(b) is amended by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(D) SPECIAL RULE FOR QUALIFIED FILM- In the case of a qualified film, such term shall include compensation for services performed in the United States by actors, production personnel, directors, and producers.’.CommentsClose CommentsPermalink





(2) DEFINITION OF QUALIFIED FILM- Paragraph (6) of section 199(c) is amended by adding at the end the following: ‘A qualified film shall include any copyrights, trademarks, or other intangibles with respect to such film. The methods and means of distributing a qualified film shall not affect the availability of the deduction under this section.’.CommentsClose CommentsPermalink





(3) PARTNERSHIPS- Subparagraph (A) of section 199(d)(1) 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) in the case of each partner of a partnership, or shareholder of an S corporation, who owns (directly or indirectly) at least 20 percent of the capital interests in such partnership or of the stock of such S corporation--CommentsClose CommentsPermalink





‘(I) such partner or shareholder shall be treated as having engaged directly in any film produced by such partnership or S corporation, andCommentsClose CommentsPermalink





‘(II) such partnership or S corporation shall be treated as having engaged directly in any film produced by such partner or shareholder.’.CommentsClose CommentsPermalink





(c) Conforming Amendment- Section 181(d)(3)(A) is amended by striking ‘actors’ and all that follows and inserting ‘actors, production personnel, directors, and producers.’.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 taxable years beginning after December 31, 2007.CommentsClose CommentsPermalink





(2) EXPENSING- The amendments made by subsection (a) shall apply to qualified film and television productions commencing after December 31, 2007.CommentsClose CommentsPermalink

SEC. 303. EXEMPTION FROM EXCISE TAX FOR CERTAIN ARROWS DESIGNED FOR USE BY CHILDREN.

(a) In General- Paragraph (2) of section 4161(b) (relating to arrows) is amended by redesignating subparagraph (B) as subparagraph (C) and by inserting after subparagraph (A) the following new subparagraph:CommentsClose CommentsPermalink





‘(B) EXEMPTION FOR CERTAIN ARROW SHAFTS- Subparagraph (A) shall not apply to any shaft measuring 5/16 of an inch or less in diameter and consisting of either--CommentsClose CommentsPermalink





‘(i) all fiberglass and hollow, orCommentsClose CommentsPermalink





‘(ii) all natural wood,CommentsClose CommentsPermalink





with no laminations or artificial means of enhancing the spine of such shaft (whether sold separately or incorporated as part of a finished or unfinished product) of a type used in the manufacture of any arrow which after its assembly is not suitable for use with a bow described in paragraph (1)(A).’.CommentsClose CommentsPermalink





(b) Effective Date- The amendments made by this section shall apply to shafts first sold after the date of enactment of this Act.CommentsClose CommentsPermalink

SEC. 304. MODIFICATION OF PENALTY ON UNDERSTATEMENT OF TAXPAYER’S LIABILITY BY TAX RETURN PREPARER.

(a) In General- Subsection (a) of section 6694 (relating to understatement due to unreasonable positions) is amended to read as follows:CommentsClose CommentsPermalink





‘(a) Understatement Due to Unreasonable Positions-CommentsClose CommentsPermalink





‘(1) IN GENERAL- If a tax return preparer--CommentsClose CommentsPermalink





‘(A) prepares any return or claim of refund with respect to which any part of an understatement of liability is due to a position described in paragraph (2), andCommentsClose CommentsPermalink





‘(B) knew (or reasonably should have known) of the position,CommentsClose CommentsPermalink





such tax return preparer shall pay a penalty with respect to each such return or claim in an amount equal to the greater of $1,000 or 50 percent of the income derived (or to be derived) by the tax return preparer with respect to the return or claim.CommentsClose CommentsPermalink





‘(2) UNREASONABLE POSITION-CommentsClose CommentsPermalink





‘(A) IN GENERAL- Except as otherwise provided in this paragraph, a position is described in this paragraph unless there is or was substantial authority for the position.CommentsClose CommentsPermalink





‘(B) DISCLOSED POSITIONS- If the position was disclosed as provided in section 6662(d)(2)(B)(ii)(I) and is not a position to which subparagraph (C) applies, the position is described in this paragraph unless there is a reasonable basis for the position.CommentsClose CommentsPermalink





‘(C) REPORTABLE TRANSACTIONS- If the position is with respect to a reportable transaction to which section 6662A applies, the position is described in this paragraph unless it is reasonable to believe that the position would more likely than not be sustained on its merits.CommentsClose CommentsPermalink





‘(3) REASONABLE CAUSE EXCEPTION- No penalty shall be imposed under this subsection if it is shown that there is reasonable cause for the understatement and the tax return preparer acted in good faith.’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply--CommentsClose CommentsPermalink





(1) in the case of a position other than a position described in subparagraph (C) of section 6694(a)(2) of the Internal Revenue Code of 1986 (as amended by this section), to returns prepared after May 25, 2007, andCommentsClose CommentsPermalink





(2) in the case of a position described in such subparagraph (C), to returns prepared for taxable years beginning after the date of the enactment of this Act.CommentsClose CommentsPermalink

TITLE IV--REVENUE PROVISIONSCommentsClose CommentsPermalink

SEC. 401. LIMITATION OF DEDUCTION FOR INCOME ATTRIBUTABLE TO DOMESTIC PRODUCTION OF OIL, GAS, OR PRIMARY PRODUCTS THEREOF.

(a) 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 has oil related qualified production activities income for any taxable year beginning after 2009, the amount otherwise allowable as a 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- For purposes of this paragraph, 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





‘(C) PRIMARY PRODUCT- For purposes of this paragraph, 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) 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. 402. ELIMINATION OF THE DIFFERENT TREATMENT OF FOREIGN OIL AND GAS EXTRACTION INCOME AND FOREIGN OIL RELATED INCOME FOR PURPOSES OF THE FOREIGN TAX CREDIT.

(a) In General- Subsections (a) and (b) of section 907 (relating to special rules in case of foreign oil and gas income) are amended to read as follows:CommentsClose CommentsPermalink





‘(a) Reduction in Amount Allowed as Foreign Tax Under Section 901- In applying section 901, the amount of any foreign oil and gas taxes paid or accrued (or deemed to have been paid) during the taxable year which would (but for this subsection) be taken into account for purposes of section 901 shall be reduced by the amount (if any) by which the amount of such taxes exceeds the product of--CommentsClose CommentsPermalink





‘(1) the amount of the combined foreign oil and gas income for the taxable year,CommentsClose CommentsPermalink





‘(2) multiplied by--CommentsClose CommentsPermalink





‘(A) in the case of a corporation, the percentage which is equal to the highest rate of tax specified under section 11(b), orCommentsClose CommentsPermalink





‘(B) in the case of an individual, a fraction the numerator of which is the tax against which the credit under section 901(a) is taken and the denominator of which is the taxpayer’s entire taxable income.CommentsClose CommentsPermalink





‘(b) Combined Foreign Oil and Gas Income; Foreign Oil and Gas Taxes- For purposes of this section--CommentsClose CommentsPermalink





‘(1) COMBINED FOREIGN OIL AND GAS INCOME- The term ‘combined foreign oil and gas income’ means, with respect to any taxable year, the sum of--CommentsClose CommentsPermalink





‘(A) foreign oil and gas extraction income, andCommentsClose CommentsPermalink





‘(B) foreign oil related income.CommentsClose CommentsPermalink





‘(2) FOREIGN OIL AND GAS TAXES- The term ‘foreign oil and gas taxes’ means, with respect to any taxable year, the sum of--CommentsClose CommentsPermalink





‘(A) oil and gas extraction taxes, andCommentsClose CommentsPermalink





‘(B) any income, war profits, and excess profits taxes paid or accrued (or deemed to have been paid or accrued under section 902 or 960) during the taxable year with respect to foreign oil related income (determined without regard to subsection (c)(4)) or loss which would be taken into account for purposes of section 901 without regard to this section.’.CommentsClose CommentsPermalink





(b) Recapture of Foreign Oil and Gas Losses- Paragraph (4) of section 907(c) (relating to recapture of foreign oil and gas extraction losses by recharacterizing later extraction income) is amended to read as follows:CommentsClose CommentsPermalink





‘(4) RECAPTURE OF FOREIGN OIL AND GAS LOSSES BY RECHARACTERIZING LATER COMBINED FOREIGN OIL AND GAS INCOME-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The combined foreign oil and gas income of a taxpayer for a taxable year (determined without regard to this paragraph) shall be reduced--CommentsClose CommentsPermalink





‘(i) first by the amount determined under subparagraph (B), andCommentsClose CommentsPermalink





‘(ii) then by the amount determined under subparagraph (C).CommentsClose CommentsPermalink





The aggregate amount of such reductions shall be treated as income (from sources without the United States) which is not combined foreign oil and gas income.CommentsClose CommentsPermalink





‘(B) REDUCTION FOR PRE-2009 FOREIGN OIL EXTRACTION LOSSES- The reduction under this paragraph shall be equal to the lesser of--CommentsClose CommentsPermalink





‘(i) the foreign oil and gas extraction income of the taxpayer for the taxable year (determined without regard to this paragraph), orCommentsClose CommentsPermalink





‘(ii) the excess of--CommentsClose CommentsPermalink





‘(I) the aggregate amount of foreign oil extraction losses for preceding taxable years beginning after December 31, 1982, and before January 1, 2009, overCommentsClose CommentsPermalink





‘(II) so much of such aggregate amount as was recharacterized under this paragraph (as in effect before and after the date of the enactment of the Renewable Energy and Job Creation Tax Act of 2008) for preceding taxable years beginning after December 31, 1982.CommentsClose CommentsPermalink





‘(C) REDUCTION FOR POST-2008 FOREIGN OIL AND GAS LOSSES- The reduction under this paragraph shall be equal to the lesser of--CommentsClose CommentsPermalink





‘(i) the combined foreign oil and gas income of the taxpayer for the taxable year (determined without regard to this paragraph), reduced by an amount equal to the reduction under subparagraph (A) for the taxable year, orCommentsClose CommentsPermalink





‘(ii) the excess of--CommentsClose CommentsPermalink





‘(I) the aggregate amount of foreign oil and gas losses for preceding taxable years beginning after December 31, 2008, overCommentsClose CommentsPermalink





‘(II) so much of such aggregate amount as was recharacterized under this paragraph for preceding taxable years beginning after December 31, 2008.CommentsClose CommentsPermalink





‘(D) FOREIGN OIL AND GAS LOSS DEFINED-CommentsClose CommentsPermalink





‘(i) IN GENERAL- For purposes of this paragraph, the term ‘foreign oil and gas loss’ means the amount by which--CommentsClose CommentsPermalink





‘(I) the gross income for the taxable year from sources without the United States and its possessions (whether or not the taxpayer chooses the benefits of this subpart for such taxable year) taken into account in determining the combined foreign oil and gas income for such year, is exceeded byCommentsClose CommentsPermalink





‘(II) the sum of the deductions properly apportioned or allocated thereto.CommentsClose CommentsPermalink





‘(ii) NET OPERATING LOSS DEDUCTION NOT TAKEN INTO ACCOUNT- For purposes of clause (i), the net operating loss deduction allowable for the taxable year under section 172(a) shall not be taken into account.CommentsClose CommentsPermalink





‘(iii) EXPROPRIATION AND CASUALTY LOSSES NOT TAKEN INTO ACCOUNT- For purposes of clause (i), there shall not be taken into account--CommentsClose CommentsPermalink





‘(I) any foreign expropriation loss (as defined in section 172(h) (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990)) for the taxable year, orCommentsClose CommentsPermalink





‘(II) any loss for the taxable year which arises from fire, storm, shipwreck, or other casualty, or from theft,CommentsClose CommentsPermalink





to the extent such loss is not compensated for by insurance or otherwise.CommentsClose CommentsPermalink





‘(iv) FOREIGN OIL EXTRACTION LOSS- For purposes of subparagraph (B)(ii)(I), foreign oil extraction losses shall be determined under this paragraph as in effect on the day before the date of the enactment of the Renewable Energy and Job Creation Tax Act of 2008.’.CommentsClose CommentsPermalink





(c) Carryback and Carryover of Disallowed Credits- Section 907(f) (relating to carryback and carryover of disallowed credits) is amended--CommentsClose CommentsPermalink





(1) by striking ‘oil and gas extraction taxes’ each place it appears and inserting ‘foreign oil and gas taxes’, andCommentsClose CommentsPermalink





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





‘(4) TRANSITION RULES FOR PRE-2009 AND 2009 DISALLOWED CREDITS-CommentsClose CommentsPermalink





‘(A) PRE-2009 CREDITS- In the case of any unused credit year beginning before January 1, 2009, this subsection shall be applied to any unused oil and gas extraction taxes carried from such unused credit year to a year beginning after December 31, 2008--CommentsClose CommentsPermalink





‘(i) by substituting ‘oil and gas extraction taxes’ for ‘foreign oil and gas taxes’ each place it appears in paragraphs (1), (2), and (3), andCommentsClose CommentsPermalink





‘(ii) by computing, for purposes of paragraph (2)(A), the limitation under subparagraph (A) for the year to which such taxes are carried by substituting ‘foreign oil and gas extraction income’ for ‘foreign oil and gas income’ in subsection (a).CommentsClose CommentsPermalink





‘(B) 2009 CREDITS- In the case of any unused credit year beginning in 2009, the amendments made to this subsection by the Renewable Energy and Job Creation Tax Act of 2008 shall be treated as being in effect for any preceding year beginning before January 1, 2009, solely for purposes of determining how much of the unused foreign oil and gas taxes for such unused credit year may be deemed paid or accrued in such preceding year.’.CommentsClose CommentsPermalink





(d) Conforming Amendment- Section 6501(i) is amended by striking ‘oil and gas extraction taxes’ and inserting ‘foreign oil and gas taxes’.CommentsClose CommentsPermalink





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

SEC. 403. BROKER REPORTING OF CUSTOMER’S BASIS IN SECURITIES TRANSACTIONS.

(a) In General-CommentsClose CommentsPermalink





(1) BROKER REPORTING FOR SECURITIES TRANSACTIONS- Section 6045 is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(g) Additional Information Required in the Case of Securities Transactions, etc-CommentsClose CommentsPermalink





‘(1) IN GENERAL- If a broker is otherwise required to make a return under subsection (a) with respect to the gross proceeds of the sale of a covered security, the broker shall include in such return the information described in paragraph (2).CommentsClose CommentsPermalink





‘(2) ADDITIONAL INFORMATION REQUIRED-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The information required under paragraph (1) to be shown on a return with respect to a covered security of a customer shall include the customer’s adjusted basis in such security and whether any gain or loss with respect to such security is long-term or short-term (within the meaning of section 1222).CommentsClose CommentsPermalink





‘(B) DETERMINATION OF ADJUSTED BASIS- For purposes of subparagraph (A)--CommentsClose CommentsPermalink





‘(i) IN GENERAL- The customer’s adjusted basis shall be determined--CommentsClose CommentsPermalink





‘(I) in the case of any security (other than any stock for which an average basis method is permissible under section 1012), in accordance with the first-in first-out method unless the customer notifies the broker by means of making an adequate identification of the stock sold or transferred, andCommentsClose CommentsPermalink





‘(II) in the case of any stock for which an average basis method is permissible under section 1012, in accordance with the broker’s default method unless the customer notifies the broker that he elects another acceptable method under section 1012 with respect to the account in which such stock is held.CommentsClose CommentsPermalink





‘(ii) EXCEPTION FOR WASH SALES- Except as otherwise provided by the Secretary, the customer’s adjusted basis shall be determined without regard to section 1091 (relating to loss from wash sales of stock or securities) unless the transactions occur in the same account with respect to identical securities.CommentsClose CommentsPermalink





‘(3) COVERED SECURITY- For purposes of this subsection--CommentsClose CommentsPermalink





‘(A) IN GENERAL- The term ‘covered security’ means any specified security acquired on or after the applicable date if such security--CommentsClose CommentsPermalink





‘(i) was acquired through a transaction in the account in which such security is held, orCommentsClose CommentsPermalink





‘(ii) was transferred to such account from an account in which such security was a covered security, but only if the broker received a statement under section 6045A with respect to the transfer.CommentsClose CommentsPermalink





‘(B) SPECIFIED SECURITY- The term ‘specified security’ means--CommentsClose CommentsPermalink





‘(i) any share of stock in a corporation,CommentsClose CommentsPermalink





‘(ii) any note, bond, debenture, or other evidence of indebtedness,CommentsClose CommentsPermalink





‘(iii) any commodity, or contract or derivative with respect to such commodity, if the Secretary determines that adjusted basis reporting is appropriate for purposes of this subsection, andCommentsClose CommentsPermalink





‘(iv) any other financial instrument with respect to which the Secretary determines that adjusted basis reporting is appropriate for purposes of this subsection.CommentsClose CommentsPermalink





‘(C) APPLICABLE DATE- The term ‘applicable date’ means--CommentsClose CommentsPermalink





‘(i) January 1, 2011, in the case of any specified security which is stock in a corporation (other than any stock described in clause (ii)),CommentsClose CommentsPermalink





‘(ii) January 1, 2012, in the case of any stock for which an average basis method is permissible under section 1012, andCommentsClose CommentsPermalink





‘(iii) January 1, 2013, or such later date determined by the Secretary in the case of any other specified security.CommentsClose CommentsPermalink





‘(4) TREATMENT OF S CORPORATIONS- In the case of the sale of a covered security acquired by an S corporation (other than a financial institution) after December 31, 2011, such S corporation shall be treated in the same manner as a partnership for purposes of this section.CommentsClose CommentsPermalink





‘(5) SPECIAL RULES FOR SHORT SALES- In the case of a short sale, reporting under this section shall be made for the year in which such sale is closed.’.CommentsClose CommentsPermalink





(2) BROKER INFORMATION REQUIRED WITH RESPECT TO OPTIONS- Section 6045, as amended by subsection (a), is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(h) Application to Options on Securities-CommentsClose CommentsPermalink





‘(1) EXERCISE OF OPTION- For purposes of this section, if a covered security is acquired or disposed of pursuant to the exercise of an option that was granted or acquired in the same account as the covered security, the amount received with respect to the grant or paid with respect to the acquisition of such option shall be treated as an adjustment to gross proceeds or as an adjustment to basis, as the case may be.CommentsClose CommentsPermalink





‘(2) LAPSE OR CLOSING TRANSACTION- In the case of the lapse (or closing transaction (as defined in section 1234(b)(2)(A))) of an option on a specified security or the exercise of a cash-settled option on a specified security, reporting under subsections (a) and (g) with respect to such option shall be made for the calendar year which includes the date of such lapse, closing transaction, or exercise.CommentsClose CommentsPermalink





‘(3) PROSPECTIVE APPLICATION- Paragraphs (1) and (2) shall not apply to any option which is granted or acquired before January 1, 2013.CommentsClose CommentsPermalink





‘(4) DEFINITIONS- For purposes of this subsection, the terms ‘covered security’ and ‘specified security’ shall have the meanings given such terms in subsection (g)(3).’.CommentsClose CommentsPermalink





(3) EXTENSION OF PERIOD FOR STATEMENTS SENT TO CUSTOMERS-CommentsClose CommentsPermalink





(A) IN GENERAL- Subsection (b) of section 6045 is amended by striking ‘January 31’ and inserting ‘February 15’.CommentsClose CommentsPermalink





(B) STATEMENTS RELATED TO SUBSTITUTE PAYMENTS- Subsection (d) of section 6045 is amended--CommentsClose CommentsPermalink





(i) by striking ‘at such time and’, andCommentsClose CommentsPermalink





(ii) by inserting after ‘other item.’ the following new sentence: ‘The written statement required under the preceding sentence shall be furnished on or before February 15 of the year following the calendar year in which the payment was made.’.CommentsClose CommentsPermalink





(C) OTHER STATEMENTS- Subsection (b) of section 6045 is amended by adding at the end the following: ‘In the case of a consolidated reporting statement (as defined in regulations) with respect to any customer, any statement which would otherwise be required to be furnished on or before January 31 of a calendar year with respect to any item reportable to the taxpayer shall instead be required to be furnished on or before February 15 of such calendar year if furnished with such consolidated reporting statement.’.CommentsClose CommentsPermalink