[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2079 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 2079

To amend the Internal Revenue Code of 1986 to impose a windfall profits 
      tax on electric generating facilities having excess profits.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              June 6, 2001

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 impose a windfall profits 
      tax on electric generating facilities having excess profits.

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

SECTION 1. WINDFALL PROFITS TAX ON ELECTRIC GENERATING FACILITIES 
              HAVING EXCESS PROFITS.

    (a) In General.--Subtitle E of the Internal Revenue Code of 1986 
(relating to alcohol, tobacco, and certain other excise taxes) is 
amended by adding at the end thereof the following new chapter:

 ``CHAPTER 55--WINDFALL PROFITS TAX ON ELECTRIC GENERATING FACILITIES 
                         HAVING EXCESS PROFITS

                              ``Sec. 5886. Imposition of tax.

``SEC. 5886. IMPOSITION OF TAX.

    ``(a) In General.--In addition to any other tax imposed under this 
title, there is hereby imposed an excise tax equal to the windfall 
profit on the sale of electricity by the person producing such 
electricity.
    ``(b) Windfall Profit.--For purposes of this section, the term 
`windfall profit' means, with respect to any sale, so much of the 
profit on such sale as exceeds a 15 percent pretax rate of return.
    ``(c) Liability for Payment of Tax.--The tax imposed by subsection 
(a) shall be paid by the seller.
    ``(d) Exemption for Electricity Generated Using Renewable Energy.--
This section shall not apply to electricity produced from renewable 
sources. For purposes of the preceding sentence, renewable sources are 
wind, sun, or water power.
    ``(e) Sales to Related Persons.--If a sale of electricity is to a 
related person (within the meaning of section 482), the sale shall be 
treated for purposes of this section as being made at the price at 
which the electricity is first sold to a person who is not a related 
person (as so defined), minus transmission costs.''
    (b) Clerical Amendment.--The table of chapters for subtitle E of 
such Code is amended by adding at the end the following new item:

                              ``Chapter 55. Windfall profits tax on 
                                        electric generating facilities 
                                        having excess profits.''
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 2. SENSE OF CONGRESS.

    It is the sense of the Congress that revenues from the tax imposed 
by chapter 55 of the Internal Revenue Code of 1986, as added by this 
Act, should be used--
            (1) to provide an income tax reduction for consumers that 
        would help moderate the impact of high prices on the poor or 
        small businessmen, and
            (2) to encourage the development of alternative energy 
        sources through tax credits for research in renewable energy.
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