[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5266 Introduced in House (IH)]






108th CONGRESS
  2d Session
                                H. R. 5266

 To amend the Internal Revenue Code of 1986 to encourage investment in 
       facilities which use woody biomass to produce electricity.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 7, 2004

 Mr. McInnis 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 encourage investment in 
       facilities which use woody biomass to produce electricity.

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

SECTION 1. CREDIT FOR INVESTMENT IN FACILITIES PRODUCING ELECTRICITY 
              FROM WOODY BIOMASS.

    (a) In General.--Subpart E of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to rules for computing 
investment credit) is amended by inserting after section 48 the 
following new section:

``SEC. 48A. FACILITIES PRODUCING ELECTRICITY FROM WOODY BIOMASS.

    ``(a) In General.--For purposes of section 46, the woody biomass 
technology credit for any taxable year is an amount equal to 20 percent 
of the basis of qualified woody biomass energy property placed in 
service during such year.
    ``(b) Qualified Woody Biomass Energy Property.--For purposes of 
this section, the term `qualified woody biomass energy property' means 
section 1245 property--
            ``(1) which is used to produce electricity from woody 
        biomass,
            ``(2) which is placed in service after the date of the 
        enactment of this section, and before January 1, 2010,
            ``(3) the original use of which commences with the 
        taxpayer, and
            ``(4) which has a useful life of not less than 5 years.
    ``(c) Woody Biomass.--For purposes of this section, the term `woody 
biomass' means trees and woody plants, including bark, limbs, tops, 
needles, leaves, stumps, roots and other woody parts and debris, that 
are by-products of restoration and hazardous fuel reduction treatments, 
disease and insect infestation management activities, or other 
management activities that involve removal, manipulation, or 
silvicultural treatment of forests, trees, and woody plants.
    ``(d) Special Rules.--For purposes of this section--
            ``(1) Certain progress expenditure rules made applicable.--
        Rules similar to the rules of subsections (c)(4) and (d) of 
        section 46 (as in effect on the day before the date of the 
        enactment of the Revenue Reconciliation Act of 1990) shall 
        apply for purposes of this section.
            ``(2) Property financed by subsidized financing or 
        industrial development bonds.--Rules similar to the rules of 
        section 45(b)(3) shall apply for purposes of this section.
            ``(3) Noncompliance with pollution laws.--The term 
        `qualified woody biomass energy property' shall not include any 
        property which is not in compliance with the applicable Federal 
        pollution prevention, control, and permit requirements at any 
        time during the 5-year period beginning on the date such 
        property is placed in service.
            ``(4) Denial of credit for property receiving certain other 
        federal assistance.--The term `qualified woody biomass energy 
        property' shall not include any property if, at any time during 
        the 5-year period beginning on the date such property is placed 
        in service, any funding is provided with respect to such 
        property under any provision of Federal law.
            ``(5) Coordination with other credits.--This section shall 
        not apply to any property with respect to which the 
        rehabilitation credit under section 47, the energy credit under 
        section 48, or any credit under section 45 is allowable unless 
        the taxpayer elects to waive the application of such credit to 
        such property.''.
    (b) Technical Amendments.--
            (1) Section 46 of such Code (relating to amount of credit) 
        is amended by striking ``and'' at the end of paragraph (2), by 
        striking the period at the end of paragraph (3) and inserting 
        ``, and'', and by adding at the end the following new 
        paragraph:
            ``(4) the woody biomass technology credit.''.
            (2) Section 49(a)(1)(C) of such Code is amended by striking 
        ``and'' at the end of clause (ii), by striking the period at 
        the end of clause (iii) and inserting ``, and'', and by adding 
        at the end the following new clause:
                            ``(iv) the portion of the basis of any 
                        qualified woody biomass energy property (as 
                        defined by section 48A(b)).''.
            (3) The table of sections for subpart E of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 48 the following new item:

``Sec. 48A. Facilities producing electricity from woody biomass.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to periods after December 31, 2004, under rules similar to the 
rules of section 48(m) of the Internal Revenue Code of 1986 (as in 
effect on the day before the date of the enactment of the Revenue 
Reconciliation Act of 1990).
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