[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5226 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 5226

  To amend the Internal Revenue Code of 1986 to provide a credit for 
 electricity produced by certain waste management facilities in United 
              States possessions, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 20, 2000

     Mrs. Christensen (for herself, Mr. Rangel, and Mr. Jefferson) 
 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 a credit for 
 electricity produced by certain waste management facilities in United 
              States possessions, and for other purposes.

    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 ``Possessions Waste Management 
Improvement Act of 2000''.

SEC. 2. ELECTRICITY PRODUCED FROM CERTAIN WASTE MANAGEMENT FACILITIES 
              IN A POSSESSION.

    (a) Amount of Credit.--Subsection (b) of section 38 of the Internal 
Revenue Code of 1986 (defining current year business credit) is amended 
by striking ``plus'' at the end of paragraph (11), by striking the 
period at the end of paragraph (12) and inserting ``, plus'', and by 
adding at the end the following new paragraph:
            ``(13) the possessions waste management electricity 
        production credit determined under section 45D(a).''.
    (b) Possessions Waste Management Electricity Production Credit.--
Subpart D of part IV of chapter 1 of subtitle A of the Internal Revenue 
Code of 1986 (relating to business related credits) is amended by 
adding at the end the following new section:

``SEC. 45D. ELECTRICITY PRODUCED FROM CERTAIN WASTE MANAGEMENT 
              FACILITIES IN A POSSESSION.

    ``(a) General Rule.--For purposes of section 38, the possessions 
waste management electricity production credit for any taxable year is 
an amount equal to the product of--
            ``(1) 7.5 cents, multiplied by
            ``(2) the kilowatt hours of electricity produced by the 
        taxpayer at a qualified facility during the taxable year.
    ``(b) Limitations and Adjustments.--
            ``(1) Credit adjustment based on inflation.--
                    ``(A) In general.--The 7.5 cent amount in 
                subsection (a) shall be adjusted by multiplying such 
                amount by the inflation adjustment factor for the 
                calendar year in which the production occurs. If any 
                amount as increased under the preceding sentence is not 
                a multiple of 0.1 cent, such amount shall be rounded to 
                the nearest multiple of 0.1 cent.
                    ``(B) Computation of inflation adjustment factor.--
                For purposes of this section, the inflation adjustment 
                factor shall be the same as that defined in section 
                45(d)(2).
            ``(2) Related persons and consumption by qualified 
        facility.--The amount of credit determined under subsection (a) 
        shall not be reduced by the amount of electricity either sold 
        or provided to related persons or expended by the qualified 
        facility itself.
    ``(c) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Qualified facility.--The term `qualified facility' 
        means any facility--
                    ``(A) which is located in a possession of the 
                United States,
                    ``(B) the purpose of which is to provide waste 
                management services for residents (including both 
                individuals and business entities) of the possession 
                without requiring the use of a landfill, and
                    ``(C) which is put in service after October 1, 
                2002, pursuant to a procurement request--
                            ``(i) issued after January 1, 2000, by a 
                        governmental entity of the possession (or its 
                        agent), and
                            ``(ii) the response to which was due before 
                        June 30, 2000.
            ``(2) Possession.--The term `possession of the United 
        States' means Guam, American Samoa, the Commonwealth of the 
        Northern Mariana Islands, and the United States Virgin Islands.
    ``(d) Coordination With Other Provisions.--
            ``(1) Passive activity limitation.--Section 469 shall not 
        apply to any credit amount determined under this section.
            ``(2) At risk limitation.--Section 465 shall not apply to 
        any qualified facility.''.
    (c) Credit Allowed Against Regular and Minimum Tax.--
            (1) In general.--Subsection (c) of section 38 of such Code 
        (relating to limitation based on amount of tax) is amended by 
        redesignating paragraph (3) as paragraph (4) and by inserting 
        after paragraph (2) the following new paragraph:
            ``(3) Special rules for possessions waste management 
        electricity production credit.--
                    ``(A) In general.--In the case of the possessions 
                waste management electricity production credit--
                            ``(i) this section and section 39 shall be 
                        applied separately with respect to the credit, 
                        and
                            ``(ii) in applying paragraph (1) to the 
                        credit--
                                    ``(I) subparagraphs (A) and (B) 
                                thereof 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 
                                possessions waste management 
                                electricity production credit).
                    ``(B) Possessions waste management electricity 
                production credit.--For purposes of this subsection, 
                the term `possessions waste management electricity 
                production credit' means the credit allowable under 
                subsection (a) by reason of section 45D.''.
            (2) Conforming amendment.--Subclause (II) of section 
        38(c)(2)(A)(ii) of such Code is amended by inserting ``or the 
        possessions waste management electricity production credit'' 
        after ``employment credit''.
    (d) Clerical Amendment.--The table of sections for such subpart is 
amended by adding at the end the following new item:

                              ``Sec. 45D. Electricity produced from 
                                        certain waste management 
                                        facilities in a possession.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1999.
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