[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 959 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 959

To amend the Internal Revenue Code of 1986 to clarify that conservation 
expenditures by electric and gas utilities are deductible for the year 
                       in which paid or incurred.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 15, 1995

Mr. McDermott introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to clarify that conservation 
expenditures by electric and gas utilities are deductible for the year 
                       in which paid or incurred.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Energy Efficiency and Conservation 
Act of 1995''.

SEC. 2. ENERGY CONSERVATION EXPENDITURES BY ELECTRIC AND GAS UTILITIES.

    (a) In General.--Part VI of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to itemized deductions for 
individuals and corporations) is amended by inserting after section 197 
the following new section:

``SEC. 198. ENERGY CONSERVATION EXPENDITURES BY ELECTRIC AND GAS 
              UTILITIES.

    ``(a) General Rule.--In the case of an electric or gas utility, 
there shall be allowed as a deduction for the taxable year an amount 
equal to the energy conservation expenditures paid or incurred by the 
taxpayer during such taxable year.
    ``(b) Energy Conservation Expenditures.--For purposes of this 
section, the term `energy conservation expenditures' means expenditures 
for--
            ``(1) subsidies provided directly or indirectly to 
        customers for the purchase, installation, or modification of--
                    ``(A) any device or service primarily designed to 
                reduce consumption of electricity, natural gas, or 
                steam or to improve the management of energy demand, or
                    ``(B) any specially defined energy property (as 
                defined in section 136(c)(2)(A)),
            ``(2) energy use consulting and audits of commercial, 
        residential, and industrial properties, or
            ``(3) administrative, promotional, and other costs 
        associated with expenditures described in paragraph (1) or (2).
Such term shall not include any expenditure taken into account in 
determining the basis of any tangible property which is owned by the 
taxpayer and which is of a character subject to the allowance for 
depreciation.
    ``(c) Electric or Gas Utility.--For purposes of this section, the 
term `electric or gas utility' means any corporation engaged in the 
furnishing or sale of electric energy, natural gas, or steam if the 
rates for such furnishing or sale have been established or approved by 
a State or political subdivision thereof, by any agency or 
instrumentality of the United States, or by a public utility or public 
service commission or other similar body of any State or political 
subdivision thereof or of the District of Columbia.''
    (b) Conforming Amendments.--
            (1) Paragraph (1) of section 263(a) of such Code is amended 
        by striking ``; or'' at the end of subparagraph (F) and 
        inserting a comma, by striking the period at the end of 
        subparagraph (G) and inserting ``, or'', and by adding at the 
        end thereof the following new subparagraph:
                    ``(H) expenditures for which a deduction is allowed 
                under section 198.''
            (2) The table of sections for part VI of subchapter B of 
        chapter 1 of such Code is amended by adding at the end thereof 
        the following new item:

                              ``Sec. 198. Energy conservation 
                                        expenditures by electric and 
                                        gas utilities.''
    (c) Effective Date.--The amendments made by this section shall 
apply to expenditures paid or incurred in taxable years beginning after 
December 31, 1980.
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