[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 156 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 156

    To amend the Internal Revenue Code of 1986 to allow the energy 
investment credit for solar energy and geothermal property against the 
          entire regular tax and the alternative minimum tax.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             January 21 (legislative day, January 5), 1993

  Mr. Daschle introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 to allow the energy 
investment credit for solar energy and geothermal property against the 
          entire regular tax and the alternative minimum tax.

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

SECTION 1. CHANGES RELATING TO ENERGY CREDIT.

    (a) Energy Credit Allowable Against Entire Regular Tax and 
Alternative Minimum Tax.--
            (1) Subsection (c) of section 38 of the Internal Revenue 
        Code of 1986 (relating to limitation based on amount of tax) is 
        amended by adding at the end thereof the following new 
        paragraph:
            ``(3) Special rules for energy credit.--
                    ``(A) In general.--In the case of a C corporation, 
                this section and section 39 shall be applied 
                separately--
                            ``(i) first with respect to so much of the 
                        credit allowed by subsection (a) as is not 
                        attributable to the energy credit, and
                            ``(ii) then with respect to the energy 
                        credit.
                    ``(B) Rules for application of energy credit.--
                            ``(i) In general.--In the case of the 
                        energy credit, in lieu of applying the 
                        preceding paragraphs of this subsection, the 
                        amount of such credit allowed under subsection 
                        (a) for any taxable year shall not exceed the 
                        net chapter 1 tax for such year.
                            ``(ii) Net chapter 1 tax.--For purposes of 
                        clause (i), the term `net chapter 1 tax' means 
                        the sum of the regular tax liability for the 
                        taxable year and the tax imposed by section 55 
                        for the taxable year, reduced by the sum of the 
                        credits allowable under this part for the 
                        taxable year (other than under section 34 and 
                        other than the energy credit).
                    ``(C) Energy credit.--For purposes of this 
                paragraph, the term `energy credit' means the credit 
                allowable under subsection (a) by reason of section 
                48(a).''
            (2) Paragraph (2) of section 55(c) of such Code is amended 
        to read as follows:
            ``(2) Cross references.--
                    ``(A) For provisions providing that certain credits 
                are not allowable against the tax imposed by this 
                section, see sections 26(a), 28(d)(2), 29(b)(5), and 
                38(c).
                    ``(B) For provision allowing energy credit against 
                the tax imposed by this section, see section 
                38(c)(3).''
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 1992.

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