[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4704 Introduced in House (IH)]






108th CONGRESS
  2d Session
                                H. R. 4704

To amend the Internal Revenue Code of 1986 to establish tax credits for 
                climate neutral combustion technologies.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 24, 2004

 Mr. Ose (for himself, Mr. Doolittle, Mr. Carson of Oklahoma, and Mr. 
Dooley of California) 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 establish tax credits for 
                climate neutral combustion technologies.

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

SECTION 1. EXPANSION OF RENEWABLE RESOURCE CREDIT TO INCLUDE CLIMATE 
              NEUTRAL COMBUSTION PROCESSES.

    (a) In General.--Section 45(c)(1) of the Internal Revenue Code of 
1986 (relating to qualified energy resources) is amended by striking 
``and'' at the end of subparagraph (B), by striking the period at the 
end of subparagraph (C) and inserting ``, and'', and by adding at the 
end the following:
                    ``(D) resources used to produce climate neutral 
                combustion.''.
    (b) Climate Neutral Combustion Defined.--Section 45(c) of such Code 
(relating to definitions) is amended by adding at the end the 
following:
            ``(5) Climate neutral combustion.--
                    ``(A) In general.--The term `climate neutral 
                combustion' means a combustion system to generate 
                electricity, wherein the combustion is fueled by 
                biomass or fossil energy carriers, where the carbon 
                dioxide, which is released during the combustion 
                process, is captured and applied to a useful purpose, 
                or stored in the Earth's subsurface by sequestration, 
                and from which there are no atmospheric emissions of 
                mercury or greenhouse gases, nor emissions that form 
                fine particles, smog, or acid rain.
                    ``(B) Biomass.--For purposes of subparagraph (A), 
                the term `biomass' means--
                            ``(i) any portion of a crop containing 
                        cellulose, including rice or other grain hulls 
                        or straws, seeds or pits of fruits, nut hulls, 
                        orchard residue, tree trimmings, soybean 
                        matter, sugarcane or grape bagasse, and
                            ``(ii) agricultural wastes (other than 
                        wastes described in clause (i)), including 
                        chicken, cattle, pig, or other livestock waste.
                    ``(C) Fossil energy carriers.--For purposes of 
                subparagraph (A), the term `fossil energy carrier' 
                means--
                            ``(i) a fossil fuel, such as coal, lignite, 
                        petroleum, natural gas, including petcoke, and
                            ``(ii) refined or gasified forms of such 
                        fossil fuels.''.
    (c) Qualified Facility.--Section 45(c)(3) of such Code (defining 
qualified facility) is amended by adding at the end the following:
                    ``(D) Climate neutral combustion facility.--In the 
                case of a facility using a climate neutral combustion 
                process to produce electricity, the term `qualified 
                facility' means any facility owned by the taxpayer 
                which is originally placed in service after December 
                31, 2004.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2004.
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