S 3478 ISCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to provide incentives for the production of energy, to provide transportation and domestic fuel security, and to provide incentives for energy conservation and energy efficiency, and for other purposes.CommentsClose CommentsPermalink

September 11, 2008CommentsClose CommentsPermalink

Mr. BAUCUS (for himself and Mr. GRASSLEY) introduced the following bill; which was read twice and referred to the Committee on FinanceCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to provide incentives for the production of energy, to provide transportation and domestic fuel security, and to provide incentives for energy conservation and energy efficiency, 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 ‘Energy Independence and Investment 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 PRODUCTION INCENTIVES

Subtitle A--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. New clean renewable energy bonds.CommentsClose CommentsPermalink





Sec. 106. Energy credit for small wind property.CommentsClose CommentsPermalink





Sec. 107. Energy credit for geothermal heat pump systems.CommentsClose CommentsPermalink

Subtitle B--Carbon Mitigation and Coal 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; funding of Black Lung Disability Trust Fund.CommentsClose CommentsPermalink





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





Sec. 115. Tax credit for carbon dioxide sequestration.CommentsClose CommentsPermalink





Sec. 116. Carbon audit of the tax code.CommentsClose CommentsPermalink

TITLE II--TRANSPORTATION AND DOMESTIC FUEL SECURITY PROVISIONS

Sec. 201. Inclusion of cellulosic biofuel in bonus depreciation for biomass ethanol plant property.CommentsClose CommentsPermalink





Sec. 202. Credits for biodiesel and renewable diesel.CommentsClose CommentsPermalink





Sec. 203. Clarification that credits for fuel are designed to provide an incentive for United States production.CommentsClose CommentsPermalink





Sec. 204. Credit for new qualified plug-in electric drive motor vehicles.CommentsClose CommentsPermalink





Sec. 205. Extension and modification of alternative motor vehicle credit.CommentsClose CommentsPermalink





Sec. 206. Exclusion from heavy truck tax for idling reduction units and advanced insulation.CommentsClose CommentsPermalink





Sec. 207. Extension and modification of alternative fuel credit.CommentsClose CommentsPermalink





Sec. 208. Alternative fuel vehicle refueling property credit.CommentsClose CommentsPermalink





Sec. 209. 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





Sec. 210. Extension of ethanol production credit.CommentsClose CommentsPermalink





Sec. 211. Credit for producers of fossil free alcohol.CommentsClose CommentsPermalink





Sec. 212. Extension and modification of election to expense certain refineries.CommentsClose CommentsPermalink





Sec. 213. Extension of suspension of taxable income limit on percentage depletion for oil and natural gas produced from marginal properties.CommentsClose CommentsPermalink

TITLE III--ENERGY CONSERVATION AND EFFICIENCY PROVISIONS

Sec. 301. Qualified energy conservation bonds.CommentsClose CommentsPermalink





Sec. 302. Credit for nonbusiness energy property.CommentsClose CommentsPermalink





Sec. 303. Energy efficient commercial buildings deduction.CommentsClose CommentsPermalink





Sec. 304. New energy efficient home credit.CommentsClose CommentsPermalink





Sec. 305. Modifications of energy efficient appliance credit for appliances produced after 2007.CommentsClose CommentsPermalink





Sec. 306. Accelerated recovery period for depreciation of smart meters and smart grid systems.CommentsClose CommentsPermalink





Sec. 307. Qualified green building and sustainable design projects.CommentsClose CommentsPermalink





Sec. 308. Special depreciation allowance for certain reuse and recycling property.CommentsClose CommentsPermalink

TITLE IV--MISCELLANEOUS ENERGY PROVISIONS

Sec. 401. Special rule to implement FERC and State electric restructuring policy.CommentsClose CommentsPermalink





Sec. 402. Modification of credit for production from advanced nuclear power facilities.CommentsClose CommentsPermalink





Sec. 403. Income averaging for amounts received in connection with the Exxon Valdez litigation.CommentsClose CommentsPermalink

TITLE V--REVENUE PROVISIONS

Sec. 501. Limitation of deduction for income attributable to domestic production of oil, gas, or primary products thereof.CommentsClose CommentsPermalink





Sec. 502. Tax on crude oil and natural gas produced from the outer Continental Shelf in the Gulf of Mexico.CommentsClose CommentsPermalink





Sec. 503. 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. 504. Broker reporting of customer’s basis in securities transactions.CommentsClose CommentsPermalink





Sec. 505. Increase and extension of Oil Spill Liability Trust Fund tax.CommentsClose CommentsPermalink

TITLE VI--OTHER PROVISIONS

Sec. 601. Secure rural schools and community self-determination program.CommentsClose CommentsPermalink





Sec. 602. Clarification of uniform definition of child.CommentsClose CommentsPermalink

TITLE I--ENERGY PRODUCTION INCENTIVESCommentsClose CommentsPermalink

Subtitle A--Renewable Energy IncentivesCommentsClose CommentsPermalink

SEC. 101. RENEWABLE ENERGY CREDIT.

(a) 3-Year Extension- Each of the following provisions of section 45(d) is amended by striking ‘January 1, 2009’ and inserting ‘January 1, 2012’:CommentsClose CommentsPermalink





(1) Paragraph (1).CommentsClose CommentsPermalink





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





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





(4) Paragraph (4).CommentsClose CommentsPermalink





(5) Paragraph (5).CommentsClose CommentsPermalink





(6) Paragraph (6).CommentsClose CommentsPermalink





(7) Paragraph (7).CommentsClose CommentsPermalink





(8) Paragraph (8).CommentsClose CommentsPermalink





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





(b) Modification of Refined Coal as a Qualified Energy Resource-CommentsClose CommentsPermalink





(1) ELIMINATION OF INCREASED MARKET VALUE TEST- Section 45(c)(7)(A) (defining refined coal) is amended--CommentsClose CommentsPermalink





(A) by striking clause (iv),CommentsClose CommentsPermalink





(B) by adding ‘and’ at the end of clause (ii), andCommentsClose CommentsPermalink





(C) by striking ‘, and’ at the end of clause (iii) and inserting a period.CommentsClose CommentsPermalink





(2) INCREASE IN REQUIRED EMISSION REDUCTION- Section 45(c)(7)(B) (defining qualified emission reduction) is amended by inserting ‘at least 40 percent of the emissions of’ after ‘nitrogen oxide and’.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) REFINED COAL- The amendments made by subsection (b) shall apply to coal produced and sold after December 31, 2008.CommentsClose CommentsPermalink





(3) 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





(4) 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 January 1, 2012.’.CommentsClose CommentsPermalink





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





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





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

SEC. 103. 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- Subparagraph (B) of section 38(c)(4), as amended by the Housing Assistance Tax Act of 2008, is amended by redesignating clauses (v) and (vi) as clauses (vi) and (vii), respectively, and by inserting after clause (iv) the following new clause:CommentsClose CommentsPermalink





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





(c) 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





(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) Maximum Credit for Solar Electric Property-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 25D(b)(1)(A) is amended by striking ‘$2,000’ and inserting ‘$4,000’.CommentsClose CommentsPermalink





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





(c) Credit for Residential Wind Property-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 25D(a) 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- The amendments made by this section shall apply to taxable years beginning after December 31, 2007.CommentsClose CommentsPermalink





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

SEC. 105. NEW CLEAN RENEWABLE ENERGY 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. NEW CLEAN RENEWABLE ENERGY BONDS.

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





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





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





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





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





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





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





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





‘(A) not more than 33 1/3 percent thereof may be allocated to qualified projects of public power providers,CommentsClose CommentsPermalink





‘(B) not more than 33 1/3 percent thereof may be allocated to qualified projects of governmental bodies, andCommentsClose CommentsPermalink





‘(C) not more than 33 1/3 percent thereof may be allocated to qualified projects of cooperative electric companies.CommentsClose CommentsPermalink





‘(3) METHOD OF ALLOCATION-CommentsClose CommentsPermalink





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





‘(B) ALLOCATION AMONG GOVERNMENTAL BODIES AND COOPERATIVE ELECTRIC COMPANIES- The Secretary shall make allocations of the amount of the national new clean renewable energy bond limitation described in paragraphs (2)(B) and (2)(C) among qualified projects of governmental bodies and cooperative electric companies, respectively, in such manner as the Secretary determines appropriate.CommentsClose CommentsPermalink





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





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





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





‘(3) GOVERNMENTAL BODY- The term ‘governmental body’ means any State or Indian tribal government, or any political subdivision thereof.CommentsClose CommentsPermalink





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





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





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





(b) 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 new clean renewable energy bond,CommentsClose CommentsPermalink





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





(2) Subparagraph (C) of section 54A(d)(2) 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 new clean renewable energy bond, a purpose specified in section 54C(a)(1).’.CommentsClose CommentsPermalink





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





‘Sec. 54C. Qualified clean renewable energy bonds.’.CommentsClose CommentsPermalink





(c) Extension for Clean Renewable Energy Bonds- Subsection (m) of section 54 is amended by striking ‘December 31, 2008’ and inserting ‘December 31, 2009’.CommentsClose CommentsPermalink





(d) 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. 106. ENERGY CREDIT FOR SMALL WIND PROPERTY.

(a) In General- Section 48(a)(3)(A), as amended by subsection (c), is amended by striking ‘or’ at the end of clause (iv), by adding ‘or’ at the end of clause (v), and by inserting after clause (v) the following new clause:CommentsClose CommentsPermalink





‘(vi) qualified small wind energy property,’.CommentsClose CommentsPermalink





(b) 30 Percent Credit- Section 48(a)(2)(A)(i) is amended by striking ‘and’ at the end of subclause (II) and by inserting after subclause (III) the following new subclause:CommentsClose CommentsPermalink





‘(IV) qualified small wind energy property, and’.CommentsClose CommentsPermalink





(c) Qualified Small Wind Energy Property- Section 48(c) is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(4) QUALIFIED SMALL WIND ENERGY PROPERTY-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The term ‘qualified small wind energy property’ means property which uses a qualifying small wind turbine to generate electricity.CommentsClose CommentsPermalink





‘(B) LIMITATION- In the case of qualified small wind energy property placed in service during the taxable year, the credit otherwise determined under subsection (a)(1) for such year with respect to such property shall not exceed $4,000 with respect to any taxpayer.CommentsClose CommentsPermalink





‘(C) QUALIFYING SMALL WIND TURBINE- The term ‘qualifying small wind turbine’ means a wind turbine which--CommentsClose CommentsPermalink





‘(i) has a nameplate capacity of not more than 100 kilowatts, andCommentsClose CommentsPermalink





‘(ii) meets the performance standards of the American Wind Energy Association.CommentsClose CommentsPermalink





‘(D) TERMINATION- The term ‘qualified small wind energy property’ shall not include any property for any period after December 31, 2016.’.CommentsClose CommentsPermalink





(d) Conforming Amendment- Section 48(a)(1) is amended by striking ‘paragraphs (1)(B) and (2)(B)’ and inserting ‘paragraphs (1)(B), (2)(B), (3)(B), and (4)(B)’.CommentsClose CommentsPermalink





(e) Effective Date- The amendments made by this section 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

SEC. 107. ENERGY CREDIT FOR GEOTHERMAL HEAT PUMP SYSTEMS.

(a) In General- Subparagraph (A) of section 48(a)(3), as amended by this Act, is amended by striking ‘or’ at the end of clause (v), by inserting ‘or’ at the end of clause (vi), and by adding at the end the following new clause:CommentsClose CommentsPermalink





‘(vii) equipment which uses the ground or ground water as a thermal energy source to heat a structure or as a thermal energy sink to cool a structure, but only with respect to periods ending before January 1, 2017,’.CommentsClose CommentsPermalink





(b) Effective Date- The amendments made by this section 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

Subtitle B--Carbon Mitigation and Coal ProvisionsCommentsClose CommentsPermalink

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 ‘$3,300,000,000’.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) $2,000,000,000 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) $500,000,000 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; FUNDING OF BLACK LUNG DISABILITY TRUST FUND.

(a) Extension of Temporary Increase- 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





(b) Restructuring of Trust Fund Debt-CommentsClose CommentsPermalink





(1) DEFINITIONS- For purposes of this subsection--CommentsClose CommentsPermalink





(A) MARKET VALUE OF THE OUTSTANDING REPAYABLE ADVANCES, PLUS ACCRUED INTEREST- The term ‘market value of the outstanding repayable advances, plus accrued interest’ means the present value (determined by the Secretary of the Treasury as of the refinancing date and using the Treasury rate as the discount rate) of the stream of principal and interest payments derived assuming that each repayable advance that is outstanding on the refinancing date is due on the 30th anniversary of the end of the fiscal year in which the advance was made to the Trust Fund, and that all such principal and interest payments are made on September 30 of the applicable fiscal year.CommentsClose CommentsPermalink





(B) REFINANCING DATE- The term ‘refinancing date’ means the date occurring 2 days after the enactment of this Act.CommentsClose CommentsPermalink





(C) REPAYABLE ADVANCE- The term ‘repayable advance’ means an amount that has been appropriated to the Trust Fund in order to make benefit payments and other expenditures that are authorized under section 9501 of the Internal Revenue Code of 1986 and are required to be repaid when the Secretary of the Treasury determines that monies are available in the Trust Fund for such purpose.CommentsClose CommentsPermalink





(D) TREASURY RATE- The term ‘Treasury rate’ means a rate determined by the Secretary of the Treasury, taking into consideration current market yields on outstanding marketable obligations of the United States of comparable maturities.CommentsClose CommentsPermalink





(E) TREASURY 1-YEAR RATE- The term ‘Treasury 1-year rate’ means a rate determined by the Secretary of the Treasury, taking into consideration current market yields on outstanding marketable obligations of the United States with remaining periods to maturity of approximately 1 year, to have been in effect as of the close of business 1 business day prior to the date on which the Trust Fund issues obligations to the Secretary of the Treasury under paragraph (2)(B).CommentsClose CommentsPermalink





(2) REFINANCING OF OUTSTANDING PRINCIPAL OF REPAYABLE ADVANCES AND UNPAID INTEREST ON SUCH ADVANCES-CommentsClose CommentsPermalink





(A) TRANSFER TO GENERAL FUND- On the refinancing date, the Trust Fund shall repay the market value of the outstanding repayable advances, plus accrued interest, by transferring into the general fund of the Treasury the following sums:CommentsClose CommentsPermalink





(i) The proceeds from obligations that the Trust Fund shall issue to the Secretary of the Treasury in such amounts as the Secretaries of Labor and the Treasury shall determine and bearing interest at the Treasury rate, and that shall be in such forms and denominations and be subject to such other terms and conditions, including maturity, as the Secretary of the Treasury shall prescribe.CommentsClose CommentsPermalink





(ii) All, or that portion, of the appropriation made to the Trust Fund pursuant to paragraph (3) that is needed to cover the difference defined in that paragraph.CommentsClose CommentsPermalink





(B) REPAYMENT OF OBLIGATIONS- In the event that the Trust Fund is unable to repay the obligations that it has issued to the Secretary of the Treasury under subparagraph (A)(i) and this subparagraph, or is unable to make benefit payments and other authorized expenditures, the Trust Fund shall issue obligations to the Secretary of the Treasury in such amounts as may be necessary to make such repayments, payments, and expenditures, with a maturity of 1 year, and bearing interest at the Treasury 1-year rate. These obligations shall be in such forms and denominations and be subject to such other terms and conditions as the Secretary of the Treasury shall prescribe.CommentsClose CommentsPermalink





(C) AUTHORITY TO ISSUE OBLIGATIONS- The Trust Fund is authorized to issue obligations to the Secretary of the Treasury under subparagraphs (A)(i) and (B). The Secretary of the Treasury is authorized to purchase such obligations of the Trust Fund. For the purposes of making such purchases, the Secretary of the Treasury may use as a public debt transaction the proceeds from the sale of any securities issued under chapter 31 of title 31, United States Code, and the purposes for which securities may be issued under such chapter are extended to include any purchase of such Trust Fund obligations under this subparagraph.CommentsClose CommentsPermalink





(3) ONE-TIME APPROPRIATION- There is hereby appropriated to the Trust Fund an amount sufficient to pay to the general fund of the Treasury the difference between--CommentsClose CommentsPermalink





(A) the market value of the outstanding repayable advances, plus accrued interest; andCommentsClose CommentsPermalink





(B) the proceeds from the obligations issued by the Trust Fund to the Secretary of the Treasury under paragraph (2)(A)(i).CommentsClose CommentsPermalink





(4) PREPAYMENT OF TRUST FUND OBLIGATIONS- The Trust Fund is authorized to repay any obligation issued to the Secretary of the Treasury under subparagraphs (A)(i) and (B) of paragraph (2) prior to its maturity date by paying a prepayment price that would, if the obligation being prepaid (including all unpaid interest accrued thereon through the date of prepayment) were purchased by a third party and held to the maturity date of such obligation, produce a yield to the third-party purchaser for the period from the date of purchase to the maturity date of such obligation substantially equal to the Treasury yield on outstanding marketable obligations of the United States having a comparable maturity to this period.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





(i) Standing Not Conferred-CommentsClose CommentsPermalink





(1) EXPORTERS- With respect to exporters, this section shall not confer standing upon an exporter to commence, or intervene in, any judicial or administrative proceeding concerning a claim for refund by a coal producer of any Federal or State tax, fee, or royalty paid by the coal producer.CommentsClose CommentsPermalink





(2) COAL PRODUCERS- With respect to coal producers, this section shall not confer standing upon a coal producer to commence, or intervene in, any judicial or administrative proceeding concerning a claim for refund by an exporter of any Federal or State tax, fee, or royalty paid by the producer and alleged to have been passed on to an exporter.CommentsClose CommentsPermalink

SEC. 115. TAX CREDIT FOR CARBON DIOXIDE SEQUESTRATION.

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

‘SEC. 45Q. CREDIT FOR CARBON DIOXIDE SEQUESTRATION.

‘(a) General Rule- For purposes of section 38, the carbon dioxide sequestration credit for any taxable year is an amount equal to the sum of--CommentsClose CommentsPermalink





‘(1) $20 per metric ton of qualified carbon dioxide which is--CommentsClose CommentsPermalink





‘(A) captured by the taxpayer at a qualified facility, andCommentsClose CommentsPermalink





‘(B) disposed of by the taxpayer in secure geological storage, andCommentsClose CommentsPermalink





‘(2) $10 per metric ton of qualified carbon dioxide which is--CommentsClose CommentsPermalink





‘(A) captured by the taxpayer at a qualified facility, andCommentsClose CommentsPermalink





‘(B) used by the taxpayer as a tertiary injectant in a qualified enhanced oil or natural gas recovery project.CommentsClose CommentsPermalink





‘(b) Qualified Carbon Dioxide- For purposes of this section--CommentsClose CommentsPermalink





‘(1) IN GENERAL- The term ‘qualified carbon dioxide’ means carbon dioxide captured from an industrial source which--CommentsClose CommentsPermalink





‘(A) would otherwise be released into the atmosphere as industrial emission of greenhouse gas, andCommentsClose CommentsPermalink





‘(B) is measured at the source of capture and verified at the point of disposal or injection.CommentsClose CommentsPermalink





‘(2) RECYCLED CARBON DIOXIDE- The term ‘qualified carbon dioxide’ includes the initial deposit of captured carbon dioxide used as a tertiary injectant. Such term does not include carbon dioxide that is re-captured, recycled, and re-injected as part of the enhanced oil and natural gas recovery process.CommentsClose CommentsPermalink





‘(c) Qualified Facility- For purposes of this section, the term ‘qualified facility’ means any industrial facility--CommentsClose CommentsPermalink





‘(1) which is owned by the taxpayer,CommentsClose CommentsPermalink





‘(2) at which carbon capture equipment is placed in service, andCommentsClose CommentsPermalink





‘(3) which captures not less than 500,000 metric tons of carbon dioxide during the taxable year.CommentsClose CommentsPermalink





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





‘(1) ONLY CARBON DIOXIDE CAPTURED AND DISPOSED OF OR USED WITHIN THE UNITED STATES TAKEN INTO ACCOUNT- The credit under this section shall apply only with respect to qualified carbon dioxide the capture and disposal or use of which is within--CommentsClose CommentsPermalink





‘(A) the United States (within the meaning of section 638(1)), orCommentsClose CommentsPermalink





‘(B) a possession of the United States (within the meaning of section 638(2)).CommentsClose CommentsPermalink





‘(2) SECURE GEOLOGICAL STORAGE- The Secretary, in consultation with the Administrator of the Environmental Protection Agency, shall establish regulations for determining adequate security measures for the geological storage of carbon dioxide under subsection (a)(1)(B) such that the carbon dioxide does not escape into the atmosphere. Such term shall include storage at deep saline formations and unminable coal seems under such conditions as the Secretary may determine under such regulations.CommentsClose CommentsPermalink





‘(3) TERTIARY INJECTANT- The term ‘tertiary injectant’ has the same meaning as when used within section 193(b)(1).CommentsClose CommentsPermalink





‘(4) QUALIFIED ENHANCED OIL OR NATURAL GAS RECOVERY PROJECT- The term ‘qualified enhanced oil or natural gas recovery project’ has the meaning given the term ‘qualified enhanced oil recovery project’ by section 43(c)(2), by substituting ‘crude oil or natural gas’ for ‘crude oil’ in subparagraph (A)(i) thereof.CommentsClose CommentsPermalink





‘(5) CREDIT ATTRIBUTABLE TO TAXPAYER- Any credit under this section shall be attributable to the person that captures and physically or contractually ensures the disposal of or the use as a tertiary injectant of the qualified carbon dioxide, except to the extent provided in regulations prescribed by the Secretary.CommentsClose CommentsPermalink





‘(6) RECAPTURE- The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any qualified carbon dioxide which ceases to be captured, disposed of, or used as a tertiary injectant in a manner consistent with the requirements of this section.CommentsClose CommentsPermalink





‘(7) INFLATION ADJUSTMENT- In the case of any taxable year beginning in a calendar year after 2009, there shall be substituted for each dollar amount contained in subsection (a) an amount equal to the product of--CommentsClose CommentsPermalink





‘(A) such dollar amount, multiplied byCommentsClose CommentsPermalink





‘(B) the inflation adjustment factor for such calendar year determined under section 43(b)(3)(B) for such calendar year, determined by substituting ‘2008’ for ‘1990’.CommentsClose CommentsPermalink





‘(e) Application of Section- The credit under this section shall apply with respect to qualified carbon dioxide before the end of the calendar year in which the Secretary, in consultation with the Administrator of the Environmental Protection Agency, certifies that 75,000,000 metric tons of qualified carbon dioxide have been captured and disposed of or used as a tertiary injectant.’.CommentsClose CommentsPermalink





(b) Conforming Amendment- Section 38(b) (relating to general business credit) 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 of following new paragraph:CommentsClose CommentsPermalink





‘(34) the carbon dioxide sequestration credit determined under section 45Q(a).’.CommentsClose CommentsPermalink





(c) Clerical Amendment- The table of sections for subpart B of part IV of subchapter A of chapter 1 (relating to other credits) is amended by adding at the end the following new section:CommentsClose CommentsPermalink





‘Sec. 45Q. Credit for carbon dioxide sequestration.’.CommentsClose CommentsPermalink





(d) Effective Date- The amendments made by this section shall apply to carbon dioxide captured after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 116. 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

TITLE II--TRANSPORTATION AND DOMESTIC FUEL SECURITY PROVISIONSCommentsClose CommentsPermalink

SEC. 201. 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. 202. 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, 2011’.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) 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 sentence 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





(e) Modification of Credit for Renewable Diesel- Section 40A(f) (relating to renewable diesel), as amended by subsection (d), is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(5) SPECIAL RULE FOR CO-PROCESSED RENEWABLE DIESEL- In the case of a taxpayer which produces renewable diesel through the co-processing of biomass and petroleum at any facility, this subsection shall not apply to so much of the renewable diesel produced at such facility and sold or used during the taxable year in a qualified biodiesel mixture as exceeds 60,000,000 gallons.’.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 (e) shall apply to fuel produced, and sold or used, after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 203. 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. 204. CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES.

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

‘SEC. 30D. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES.

‘(a) Allowance of Credit-CommentsClose CommentsPermalink





‘(1) IN GENERAL- There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the applicable amount with respect to each new qualified plug-in electric drive motor vehicle placed in service by the taxpayer during the taxable year.CommentsClose CommentsPermalink





‘(2) APPLICABLE AMOUNT- For purposes of paragraph (1), the applicable amount is sum of--CommentsClose CommentsPermalink





‘(A) $2,500, plusCommentsClose CommentsPermalink





‘(B) $400 for each kilowatt hour of traction battery capacity in excess of 6 kilowatt hours.CommentsClose CommentsPermalink





‘(b) Limitations-CommentsClose CommentsPermalink





‘(1) LIMITATION BASED ON WEIGHT- The amount of the credit allowed under subsection (a) by reason of subsection (a)(2) shall not exceed--CommentsClose CommentsPermalink





‘(A) $7,500, in the case of any new qualified plug-in electric drive motor vehicle with a gross vehicle weight rating of not more than 10,000 pounds,CommentsClose CommentsPermalink





‘(B) $10,000, in the case of any new qualified plug-in electric drive motor vehicle with a gross vehicle weight rating of more than 10,000 pounds but not more than 14,000 pounds,CommentsClose CommentsPermalink





‘(C) $12,500, in the case of any new qualified plug-in electric drive motor vehicle with a gross vehicle weight rating of more than 14,000 pounds but not more than 26,000 pounds, andCommentsClose CommentsPermalink





‘(D) $15,000, in the case of any new qualified plug-in electric drive motor vehicle with a gross vehicle weight rating of more than 26,000 pounds.CommentsClose CommentsPermalink





‘(2) LIMITATION ON NUMBER OF PASSENGER VEHICLES AND LIGHT TRUCKS ELIGIBLE FOR CREDIT-CommentsClose CommentsPermalink





‘(A) 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





‘(B) 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 total number of such new qualified plug-in electric drive motor vehicles sold for use in the United States after December 31, 2007, is at least 250,000.CommentsClose CommentsPermalink





‘(C) APPLICABLE PERCENTAGE- For purposes of subparagraph (A), the applicable percentage is--CommentsClose CommentsPermalink





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





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





‘(iii) 0 percent for each calendar quarter thereafter.CommentsClose CommentsPermalink





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





‘(c) New Qualified Plug-In Electric Drive Motor Vehicle- For purposes of this section, the term ‘new qualified plug-in electric drive motor vehicle’ means a motor vehicle--CommentsClose CommentsPermalink





‘(1) which draws propulsion primarily using a traction battery with at least 6 kilowatt hours of capacity,CommentsClose CommentsPermalink





‘(2) which uses an offboard source of energy to recharge such battery,CommentsClose CommentsPermalink





‘(3) which, in the case of a passenger vehicle or light truck which has a gross vehicle weight rating of not more than 8,500 pounds, has received a certificate of conformity under the Clean Air Act and meets or exceeds the equivalent qualifying California low emission vehicle standard under section 243(e)(2) of the Clean Air Act for that make and model year, andCommentsClose CommentsPermalink





‘(A) in the case of a vehicle having a gross vehicle weight rating of 6,000 pounds or less, 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





‘(B) in the case of a vehicle having a gross vehicle weight rating of more than 6,000 pounds but not more than 8,500 pounds, the Bin 8 Tier II emission standard which is so established,CommentsClose CommentsPermalink





‘(4) the original use of which commences with the taxpayer,CommentsClose CommentsPermalink





‘(5) which is acquired for use or lease by the taxpayer and not for resale, andCommentsClose CommentsPermalink





‘(6) which is made by a manufacturer.CommentsClose CommentsPermalink





‘(d) 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





‘(e) Other Definitions and Special Rules- For purposes of this section--CommentsClose CommentsPermalink





‘(1) MOTOR VEHICLE- The term ‘motor vehicle’ has the meaning given such term by section 30(c)(2).CommentsClose CommentsPermalink





‘(2) 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





‘(3) TRACTION BATTERY CAPACITY- Traction battery capacity shall be measured in kilowatt hours from a 100 percent state of charge to a zero percent state of charge.CommentsClose CommentsPermalink





‘(4) REDUCTION IN BASIS- For purposes of this subtitle, the basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit so allowed.CommentsClose CommentsPermalink





‘(5) NO DOUBLE BENEFIT- The amount of any deduction or other credit allowable under this chapter for a new qualified plug-in electric drive motor vehicle shall be reduced by the amount of credit allowed under subsection (a) for such vehicle for the taxable year.CommentsClose CommentsPermalink





‘(6) PROPERTY USED BY TAX-EXEMPT ENTITY- In the case of a vehicle the use of which is described in paragraph (3) or (4) of section 50(b) and which is not subject to a lease, the person who sold such vehicle to the person or entity using such vehicle shall be treated as the taxpayer that placed such vehicle in service, but only if such person clearly discloses to such person or entity in a document the amount of any credit allowable under subsection (a) with respect to such vehicle (determined without regard to subsection (b)(2)).CommentsClose CommentsPermalink





‘(7) PROPERTY USED OUTSIDE UNITED STATES, ETC., NOT QUALIFIED- No credit shall be allowable 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





‘(8) 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 (including recapture in the case of a lease period of less than the economic life of a vehicle).CommentsClose CommentsPermalink





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





‘(10) INTERACTION WITH AIR QUALITY AND MOTOR VEHICLE SAFETY STANDARDS- Unless otherwise provided in this section, a motor vehicle shall not be considered eligible for a credit under this section unless such vehicle is in compliance with--CommentsClose CommentsPermalink





‘(A) the applicable provisions of the Clean Air Act for the applicable make and model year of the vehicle (or applicable air quality provisions of State law in the case of a State which has adopted such provision under a waiver under section 209(b) of the Clean Air Act), andCommentsClose CommentsPermalink





‘(B) the motor vehicle safety provisions of sections 30101 through 30169 of title 49, United States Code.CommentsClose CommentsPermalink





‘(f) Regulations-CommentsClose CommentsPermalink





‘(1) IN GENERAL- Except as provided in paragraph (2), the Secretary shall promulgate such regulations as necessary to carry out the provisions of this section.CommentsClose CommentsPermalink





‘(2) COORDINATION IN PRESCRIPTION OF CERTAIN REGULATIONS- The Secretary of the Treasury, in coordination with the Secretary of Transportation and the Administrator of the Environmental Protection Agency, shall prescribe such regulations as necessary to determine whether a motor vehicle meets the requirements to be eligible for a credit under this section.CommentsClose CommentsPermalink





‘(g) Termination- This section shall not apply to property purchased after December 31, 2014.’.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 30D (determined without regard to subsection (d) 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 (33), by striking the period at the end of paragraph (34) and inserting ‘plus’, and by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(35) the portion of the new qualified plug-in electric drive motor vehicle credit to which section 30D(d)(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 30D’.CommentsClose CommentsPermalink





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





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





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





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





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





‘(37) to the extent provided in section 30D(e)(4).’.CommentsClose CommentsPermalink





(3) Section 6501(m) is amended by inserting ‘30D(e)(9),’ after ‘30C(e)(5),’.CommentsClose CommentsPermalink





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





‘Sec. 30D. New qualified plug-in electric drive motor vehicles.’.CommentsClose CommentsPermalink





(e) Effective Date- 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





(f) 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. 205. EXTENSION AND MODIFICATION OF ALTERNATIVE MOTOR VEHICLE CREDIT.

(a) Extension-CommentsClose CommentsPermalink





(1) NEW ADVANCED LEAN BURN TECHNOLOGY MOTOR VEHICLES AND HEAVY NEW QUALIFIED HYBRID MOTOR VEHICLES- Paragraphs (2) and (3) of section 30B(j) are amended to read as follows:CommentsClose CommentsPermalink





‘(2) in the case of a new advanced lean burn technology motor vehicle (as described in subsection (c)), December 31, 2011,CommentsClose CommentsPermalink





‘(3) in the case of--CommentsClose CommentsPermalink





‘(A) a new qualified hybrid motor vehicle (as described in subsection (d)(2)(A)), December 31, 2010, andCommentsClose CommentsPermalink





‘(B) a new qualified hybrid motor vehicle (as described in subsection (d)(2)(B)), December 31, 2011, and’.CommentsClose CommentsPermalink





(2) NEW QUALIFIED ALTERNATIVE FUEL VEHICLES- Paragraph (4) of section 30B(j) is amended by striking ‘December 31, 2010’ and inserting ‘December 31, 2011’.CommentsClose CommentsPermalink





(b) Increased Credit for Certain New Qualified Fuel Cell Motor Vehicles- Subparagraph (A) of section 30B(b)(1) is amended by striking ‘$4,000’ and inserting ‘$7,500’.CommentsClose CommentsPermalink





(c) Personal Credit Allowed Against Alternative Minimum Tax-CommentsClose CommentsPermalink





(1) IN GENERAL- Paragraph (2) of section 30B(g) is amended to read as follows: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) (after the application of paragraph (1)) for any taxable year shall not exceed the excess (if any) 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, 25D, and 30D) and section 27 for the taxable year.’.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENTS-CommentsClose CommentsPermalink





(A)(i) Section 24(b)(3)(B), as amended by this Act, is amended by striking ‘and 30D’ and inserting ‘30B, and 30D’.CommentsClose CommentsPermalink





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





(iii) Section 25B(g)(2), as amended by this Act, is amended by striking ‘and 30D’ and inserting ‘, 30B, and 30D’.CommentsClose CommentsPermalink





(iv) Section 26(a)(1), as amended by this Act, is amended by striking ‘and 30D’ and inserting ‘30B, and 30D’.CommentsClose CommentsPermalink





(v) Section 1400C(d)(2), as amended by this Act, is amended by striking ‘and 30D’ and inserting ‘30B, and 30D’.CommentsClose CommentsPermalink





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





(C) Section 55(c)(3) is amended by striking ‘30B(g)(2),’.CommentsClose CommentsPermalink





(d) Effective Date- 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





(e) Application of EGTRRA Sunset- The amendment made by subsection (c)(2)(A)(i) 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. 206. 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, 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. 207. EXTENSION AND MODIFICATION OF ALTERNATIVE FUEL CREDIT.

(a) Extension-CommentsClose CommentsPermalink





(1) ALTERNATIVE FUEL CREDIT- Paragraph (4) of section 6426(d) (relating to alternative fuel credit) is amended by striking ‘September 30, 2009’ and inserting ‘December 31, 2011’.CommentsClose CommentsPermalink





(2) ALTERNATIVE FUEL MIXTURE CREDIT- Paragraph (3) of section 6426(e) (relating to alternative fuel mixture credit) is amended by striking ‘September 30, 2009’ and inserting ‘December 31, 2011’.CommentsClose CommentsPermalink





(3) PAYMENTS- Subparagraph (C) of section 6427(e)(5) (relating to termination) is amended by striking ‘September 30, 2009’ and inserting ‘December 31, 2011’.CommentsClose CommentsPermalink





(b) Modifications-CommentsClose CommentsPermalink





(1) ALTERNATIVE FUEL TO INCLUDE COMPRESSED OR LIQUIFIED BIOMASS GAS- Paragraph (2) of section 6426(d) (relating to alternative fuel credit) is amended by striking ‘and’ at the end of subparagraph (E), by redesignating subparagraph (F) as subparagraph (G), and by inserting after subparagraph (E) the following new subparagraph:CommentsClose CommentsPermalink





‘(F) compressed or liquefied biomass gas, and’.CommentsClose CommentsPermalink





(2) CREDIT ALLOWED FOR AVIATION USE OF FUEL- Paragraph (1) of section 6426(d) is amended by inserting ‘sold by the taxpayer for use as a fuel in aviation,’ after ‘motorboat,’.CommentsClose CommentsPermalink





(c) Carbon Capture Requirement for Certain Fuels-CommentsClose CommentsPermalink





(1) IN GENERAL- Subsection (d) of section 6426, as amended by subsection (a), is amended by redesignating paragraph (4) as paragraph (5) and by inserting after paragraph (3) the following new paragraph:CommentsClose CommentsPermalink





‘(4) CARBON CAPTURE REQUIREMENT-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The requirements of this paragraph are met if the fuel is certified, under such procedures as required by the Secretary, as having been derived from coal produced at a gasification facility which separates and sequesters not less than the applicable percentage of such facility’s total carbon dioxide emissions.CommentsClose CommentsPermalink





‘(B) APPLICABLE PERCENTAGE- For purposes of subparagraph (A), the applicable percentage is--CommentsClose CommentsPermalink





‘(i) 50 percent in the case of fuel produced after the date of the enactment of this paragraph and on or before the earlier of--CommentsClose CommentsPermalink





‘(I) the date the Secretary makes a determination under subparagraph (C), orCommentsClose CommentsPermalink





‘(II) December 30, 2011, andCommentsClose CommentsPermalink





‘(ii) 75 percent in the case of fuel produced after the date on which the applicable percentage under clause (i) ceases to apply.CommentsClose CommentsPermalink





‘(C) DETERMINATION TO INCREASE APPLICABLE PERCENTAGE BEFORE DECEMBER 31, 2011- If the Secretary, after considering the recommendations of the Carbon Sequestration Capability Panel, finds that the applicable percentage under subparagraph (B) should be 75 percent for fuel produced before December 31, 2011, the Secretary shall make a determination under this subparagraph. Any determination made under this subparagraph shall be made not later than 30 days after the Secretary receives from the Carbon Sequestration Panel the report required under section 331(c)(3)(D) of the Energy Independence and Investment Act of 2008.’.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENT- Subparagraph (E) of section 6426(d)(2) is amended by inserting ‘which meets the requirements of paragraph (4) and which is’ after ‘any liquid fuel’.CommentsClose CommentsPermalink





(3) CARBON SEQUESTRATION CAPABILITY PANEL-CommentsClose CommentsPermalink





(A) ESTABLISHMENT OF PANEL- There is established a panel to be known as the ‘Carbon Sequestration Capability Panel’ (hereafter in this paragraph referred to as the ‘Panel’).CommentsClose CommentsPermalink





(B) MEMBERSHIP- The Panel shall be composed of--CommentsClose CommentsPermalink





(i) 1 representative from the National Academy of Sciences,CommentsClose CommentsPermalink





(ii) 1 representative from the University of Kentucky Center for Applied Energy Research, andCommentsClose CommentsPermalink





(iii) 1 individual appointed jointly by the representatives under clauses (i) and (ii).CommentsClose CommentsPermalink





(C) STUDY- The Panel shall study the appropriate percentage of carbon dioxide for separation and sequestration under section 6426(d)(4) of the Internal Revenue Code of 1986 consistent with the purposes of such section. The panel shall consider whether it is feasible to separate and sequester 75 percent of the carbon dioxide emissions of a facility, including costs and other factors associated with separating and sequestering such percentage of carbon dioxide emissions.CommentsClose CommentsPermalink





(D) REPORT- Not later than 6 months after the date of the enactment of this Act, the Panel shall report to the Secretary of Treasury, the Committee on Finance of the Senate, and the Committee on Ways and Means of the House of Representatives on the study under subparagraph (C).CommentsClose CommentsPermalink





(d) Effective Date- The amendments made by this section shall apply to fuel sold or used after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 208. ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY CREDIT.

(a) Extension of Credit- Paragraph (2) of section 30C(g) is amended by striking ‘December 31, 2009’ and inserting ‘December 31, 2012’.CommentsClose CommentsPermalink





(b) Inclusion of Electricity as a Clean-Burning Fuel- Section 30C(c)(2) is amended by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(C) Electricity.’.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. 209. 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 take effect on the date of the enactment of this Act, in taxable years ending after such date.CommentsClose CommentsPermalink

SEC. 210. EXTENSION OF ETHANOL PRODUCTION CREDIT.

(a) Credit for Alcohol Used as Fuel- Section 40 is amended--CommentsClose CommentsPermalink





(1) by striking ‘2010’ each place it appears in subsections (e)(1)(A) and (h) and inserting ‘2011’, andCommentsClose CommentsPermalink





(2) by striking ‘January 1, 2011’ in subsection (e)(1)(B) and inserting ‘January 1, 2012’.CommentsClose CommentsPermalink





(b) Excise Tax Credits- Paragraph (6) of section 6426(b) is amended by striking ‘2010’ and inserting ‘2011’.CommentsClose CommentsPermalink





(c) Payments- Subparagraph (A) of section 6427(e)(5) is amended by striking ‘2010’ and inserting ‘2011’.CommentsClose CommentsPermalink

SEC. 211. CREDIT FOR PRODUCERS OF FOSSIL FREE ALCOHOL.

(a) In General- Subsection (a) of section 40 (relating to alcohol used as fuel) is amended by striking ‘plus’ at the end of paragraph (3), by striking the period at the end of paragraph (4) and inserting ‘, plus’, and by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(5) the small fossil free alcohol producer credit.’.CommentsClose CommentsPermalink





(b) Small Fossil Free Alcohol Producer Credit- Subsection (b) of section 40 is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(7) SMALL FOSSIL FREE ALCOHOL PRODUCER CREDIT-CommentsClose CommentsPermalink





‘(A) IN GENERAL- In addition to any other credit allowed under this section, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 10 cents for each gallon of not more than 60,000,000 gallons of qualified fossil free alcohol production.CommentsClose CommentsPermalink





‘(B) QUALIFIED FOSSIL FREE ALCOHOL PRODUCTION- For purposes of this section, the term ‘qualified fossil free alcohol production’ means alcohol which is produced by an eligible small fossil free alcohol producer at a fossil free alcohol production facility and which during the taxable year--CommentsClose CommentsPermalink





‘(i) is sold by the taxpayer to another person--CommentsClose CommentsPermalink





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





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





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





‘(ii) is used or sold by the taxpayer for any purpose described in clause (i).CommentsClose CommentsPermalink





‘(C) ADDITIONAL DISTILLATION EXCLUDED- The qualified fossil free alcohol production of any taxpayer for any taxable year shall not include any alcohol which is purchased by the taxpayer and with respect to which such producer increases the proof of the alcohol by additional distillation.’.CommentsClose CommentsPermalink





(c) Eligible Small Fossil Free Alcohol Producer- Section 40 is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(i) Definitions and Special Rules for Small Fossil Free Alcohol Producer- For purposes of this section--CommentsClose CommentsPermalink





‘(1) IN GENERAL- The term ‘eligible small fossil free alcohol producer’ means a person, who at all times during the taxable year, has a productive capacity for alcohol from all fossil free alcohol production facilities of the taxpayer which is not in excess of 60,000,000 gallons.CommentsClose CommentsPermalink





‘(2) FOSSIL FREE ALCOHOL PRODUCTION FACILITY- The term ‘fossil free alcohol production facility’ means any facility at which 90 percent of the energy used in the production of alcohol is produced from biomass (as defined in section 45K(c)(3)).CommentsClose CommentsPermalink





‘(3) AGGREGATION RULE- For purposes of the 60,000,000 gallon limitation under paragraph (1) and subsection (b)(7)(A), all members of the same controlled group of corporations (within the meaning of section 267(f)) and all persons under common control (within the meaning of section 52(b) but determined by treating an interest of more than 50 percent as a controlling interest) shall be treated as 1 person.CommentsClose CommentsPermalink





‘(4) PARTNERSHIP, S CORPORATIONS, AND OTHER PASS-THRU ENTITIES- In the case of a partnership, trust, S corporation, or other pass-thru entity, the limitation contained in paragraph (1) shall be applied at the entity level and at the partner or similar level.CommentsClose CommentsPermalink





‘(5) ALLOCATION- For purposes of this subsection, in the case of a facility in which more than 1 person has an interest, productive capacity shall be allocated among such persons in such manner as the Secretary may prescribe.CommentsClose CommentsPermalink





‘(6) REGULATIONS- The Secretary may prescribe such regulations as may be necessary to prevent the credit provided for in subsection (a)(5) from directly or indirectly benefitting any person with a direct or indirect productive capacity of more than 60,000,000 gallons of alcohol from fossil free alcohol production facilities during the taxable year.CommentsClose CommentsPermalink





‘(7) ALLOCATION OF SMALL FOSSIL FREE ALCOHOL PRODUCER CREDIT TO PATRONS OF COOPERATIVE- Rules similar to the rules under subsection (g)(6) shall apply for purposes of this subsection.’.CommentsClose CommentsPermalink





(d) Alcohol Not Used as a Fuel, etc-CommentsClose CommentsPermalink





(1) IN GENERAL- Paragraph (3) of section 40(d) is amended by redesignating subparagraph (E) as subparagraph (F) and by inserting after subparagraph (D) the following new subparagraph:CommentsClose CommentsPermalink





‘(E) SMALL FOSSIL FREE ALCOHOL PRODUCER CREDIT- If--CommentsClose CommentsPermalink





‘(i) any credit is allowed under subsection (a)(5), andCommentsClose CommentsPermalink





‘(ii) any person does not use such fuel for a purpose described in subsection (b)(7)(B),CommentsClose CommentsPermalink





then there is hereby imposed on such person a tax equal to 10 cents for each gallon of such alcohol.’.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENT- Subparagraph (F) of section 40(d)(3), as redesignated by paragraph (1) and amended by this Act, is amended by striking ‘or (D)’ and inserting ‘(D), or (E)’.CommentsClose CommentsPermalink





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

SEC. 212. EXTENSION AND MODIFICATION OF ELECTION TO EXPENSE CERTAIN REFINERIES.

(a) Extension- Paragraph (1) of section 179C(c) (relating to qualified refinery property) is amended--CommentsClose CommentsPermalink





(1) by striking ‘January 1, 2012’ in subparagraph (B) and inserting ‘January 1, 2014’, andCommentsClose CommentsPermalink





(2) by striking ‘January 1, 2008’ each place it appears in subparagraph (F) and inserting ‘January 1, 2010’.CommentsClose CommentsPermalink





(b) Inclusion of Fuel Derived From Shale and Tar Sands-CommentsClose CommentsPermalink





(1) IN GENERAL- Subsection (d) of section 179C is amended by inserting ‘, or directly from shale or tar sands’ after ‘(as defined in section 45K(c))’.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENT- Paragraph (2) of section 179C(e) is amended by inserting ‘shale, tar sands, or’ before ‘qualified fuels’.CommentsClose CommentsPermalink





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

SEC. 213. EXTENSION OF SUSPENSION OF TAXABLE INCOME LIMIT ON PERCENTAGE DEPLETION FOR OIL AND NATURAL GAS PRODUCED FROM MARGINAL PROPERTIES.

Subparagraph (H) of section 613A(c)(6) (relating to oil and gas produced from marginal properties) is amended by striking ‘January 1, 2008’ and inserting ‘January 1, 2011’.CommentsClose CommentsPermalink

TITLE III--ENERGY CONSERVATION AND EFFICIENCY PROVISIONSCommentsClose CommentsPermalink

SEC. 301. QUALIFIED ENERGY CONSERVATION BONDS.

(a) In General- Subpart I of part IV of subchapter A of chapter 1, as amended by section 106, is amended by adding at the end the following new section:CommentsClose CommentsPermalink

‘SEC. 54D. QUALIFIED ENERGY CONSERVATION BONDS.

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





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





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





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





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





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





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





‘(e) Allocations-CommentsClose CommentsPermalink





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





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





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





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





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





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





‘(f) Qualified Conservation Purpose- For purposes of this section--CommentsClose CommentsPermalink





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





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





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





‘(ii) implementing green community programs,CommentsClose CommentsPermalink





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





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





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





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





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





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





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





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





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





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





‘(i) green building technology,CommentsClose CommentsPermalink





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





‘(iii) advanced battery manufacturing technologies,CommentsClose CommentsPermalink





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





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





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





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





‘(g) Population-CommentsClose CommentsPermalink





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





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





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





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





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





(b) Conforming Amendments-CommentsClose CommentsPermalink





(1) Paragraph (1) of section 54A(d), as amended by this Act, 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,CommentsClose CommentsPermalink





‘(B) a new clean renewable energy bond, orCommentsClose CommentsPermalink





‘(C) a qualified energy conservation bond,CommentsClose CommentsPermalink





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





(2) Subparagraph (C) of section 54A(d)(2), as amended by this Act, 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),CommentsClose CommentsPermalink





‘(ii) in the case of a new clean renewable energy bond, a purpose specified in section 54C(a)(1), andCommentsClose CommentsPermalink





‘(iii) in the case of a qualified energy conservation bond, a purpose specified in section 54D(a)(1).’.CommentsClose CommentsPermalink





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





‘Sec. 54D. Qualified energy conservation bonds.’.CommentsClose CommentsPermalink





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