[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 108 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                 S. 108

    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 4, 1995

  Mr. Daschle (for himself and Mr. Jeffords) 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 redesignating paragraph (3) as paragraph (4) and 
        adding after paragraph (2) the following new paragraph:
            ``(3) Special rules for energy credit.--
                    ``(A) In general.--In the case of a C corporation--
                            ``(i) this section and section 39 shall be 
                        applied separately with respect to the energy 
                        credit, and
                            ``(ii) in applying paragraph (1) to such 
                        credit--
                                    ``(I) subparagraph (A) of paragraph 
                                (1) shall not apply, and
                                    ``(II) the limitation under 
                                paragraph (1) (as modified by subclause 
                                (I)) shall be reduced by the credit 
                                allowed under subsection (a) for the 
                                taxable year (other than the energy 
                                credit).
                    ``(B) Energy credit.--For purposes of this 
                paragraph and paragraph (2), the term `energy credit' 
                means the credit allowable under subsection (a) by 
                reason of section 48(a).''
            (2) Subclause (II) of section 38(c)(2)(A)(ii) of such Code 
        is amended by inserting ``or the energy credit'' after 
        ``employment credit''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 1994.
                                 <all>