[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4407 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 4407

 To amend the Internal Revenue Code of 1986 to provide that the credit 
 for electricity produced from certain renewable resources shall apply 
 to electricity produced from all biomass facilities and to extend the 
              placed in service deadline for such credit.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 5, 1998

   Mr. Herger (for himself, Mr. Matsui, Mr. Ensign, Mr. McCrery, Mr. 
 McDermott, Mrs. Thurman, Mr. Smith of Oregon, Mr. Pombo, Mr. Hunter, 
 Mr. Dooley of California, Mr. Gibbons, and Mr. Blumenauer) 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 provide that the credit 
 for electricity produced from certain renewable resources shall apply 
 to electricity produced from all biomass facilities and to extend the 
              placed in service deadline for such credit.

    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 ``Biomass Energy Equity Act of 1998''.

SEC. 2. MODIFICATIONS TO CREDIT FOR ELECTRICITY PRODUCED FROM RENEWABLE 
              RESOURCES.

    (a) Qualified Facilities Include All Biomass Facilities.--
            (1) In general.--Subparagraph (B) of section 45(c)(1) of 
        the Internal Revenue Code of 1986 (relating to credit for 
        electricity produced from certain renewable resources) is 
        amended to read as follows:
                    ``(B) biomass.''.
            (2) Biomass defined.--Paragraph (2) of section 45(c) of 
        such Code is amended to read as follows:
            ``(2) Biomass.--The term `biomass' means--
                    ``(A) any organic material from a plant which is 
                planted exclusively for purposes of being used at a 
                qualified facility to produce electricity, and
                    ``(B) any solid, nonhazardous, cellulosic waste 
                material, which is segregated from other waste 
                materials, and which is derived from--
                            ``(i) any of the following forest-related 
                        resources: mill residues, precommercial 
                        thinnings, slash, and brush, but not including 
                        old-growth timber,
                            ``(ii) urban sources, including waste 
                        pallets, crates, and dunnage, manufacturing and 
                        construction wood wastes, and landscape or 
                        right-of-way tree trimmings, but not including 
                        unsegregated municipal solid waste (garbage), 
                        or
                            ``(iii) agriculture sources, including 
                        orchard tree crops, vineyard, grain, legumes, 
                        sugar, and other crop by-products or 
                        residues.''
    (b) Extension and Modification of Placed in Service Rules.--
Paragraph (3) of section 45(c) of such Code is amended to read as 
follows:
            ``(3) Qualified facility.--
                    ``(A) Wind facilities.--In the case of a facility 
                using wind to produce electricity, the term `qualified 
                facility' means any facility owned by the taxpayer 
                which is originally placed in service after December 
                31, 1993, and before July 1, 2008.
                    ``(B) Biomass facilities.--In the case of a 
                facility using biomass to produce electricity, the term 
                `qualified facility' means, with respect to any month, 
                any facility owned by the taxpayer which is originally 
                placed in service before July 1, 2008, if, for such 
                month, biomass comprises not less than 75 percent (on a 
                Btu basis) of the average monthly fuel input of the 
                facility for the taxable year which includes such 
                month.
                    ``(C) Special rules.--In the case of a qualified 
                facility described in subparagraph (B)--
                            ``(i) the 10-year period referred to in 
                        subsection (a) shall be treated as beginning no 
                        earlier than the date of the enactment of this 
                        paragraph, and
                            ``(ii) subsection (b)(3) shall not apply to 
                        any such facility originally placed in service 
                        before January 1, 1993.''
    (c) Effective Date.--The amendments made by this section shall 
apply to electricity produced after the date of the enactment of this 
Act.
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