[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 984 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                 S. 984

To amend the Internal Revenue Code of 1986 to modify the tax credit for 
         electricity produced from certain renewable resources.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 6, 1999

Ms. Collins (for herself and Mrs. Boxer) 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 modify the tax credit for 
         electricity produced from certain renewable resources.

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

SECTION 1. 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, or
                    ``(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) waste pallets, crates, and dunnage, 
                        manufacturing and construction wood wastes 
                        (other than pressure-treated, chemically-
                        treated, or painted wood wastes), and landscape 
                        or right-of-way tree trimmings, but not 
                        including unsegregated municipal solid waste 
                        (garbage),
                            ``(iii) agriculture sources, including 
                        orchard tree crops, vineyard, grain, legumes, 
                        sugar, and other crop by-products or residues, 
                        or
                            ``(iv) poultry waste.''
    (b) Extension and Modification of Placed in Service Rules.--
Paragraph (3) of section 45(c) of the Internal Revenue Code of 1986 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, 2009.
                    ``(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 or leased by the taxpayer which is 
                originally placed in service before July 1, 2009, 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 
                        not 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, 1997.''
    (c) Effective Date.--The amendments made by this section shall 
apply to electricity produced after the date of the enactment of this 
Act.
                                 <all>