[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 358 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                 S. 358

To amend the Internal Revenue Code of 1986 to modify the credit for the 
production of fuel from nonconventional sources and the credit for the 
           production of electricity to include landfill gas.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 11, 2003

 Mrs. Lincoln 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 credit for the 
production of fuel from nonconventional sources and the credit for the 
           production of electricity to include landfill gas.

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

SECTION 1. CREDIT FOR PRODUCING FUEL FROM LANDFILL GAS.

    (a) In General.--Section 29 of the Internal Revenue Code of 1986 
(relating to credit for producing fuel from a nonconventional source) 
is amended by adding at the end the following new subsection:
    ``(h) Extension and Modification for Facilities Producing Qualified 
Fuels From Landfill Gas.--
            ``(1) In general.--In the case of a facility for producing 
        qualified fuel from landfill gas which is placed in service 
        after June 30, 1998, and before January 1, 2008, this section 
        shall apply to fuel produced at such facility during the 5-year 
        period beginning on the later of--
                    ``(A) the date such facility was placed in service, 
                or
                    ``(B) the date of the enactment of this subsection.
            ``(2) Reduction of credit for production from certain 
        landfill gas facilities.--In the case of a facility to which 
        paragraph (1) applies which is located at a landfill which is 
        required pursuant to 40 CFR 60.752(b)(2) or 40 CFR 60.33c to 
        install and operate a collection and control system which 
        captures gas generated within the landfill, subsection (a)(1) 
        shall be applied to gas so captured by substituting `$2' for 
        `$3' for the taxable year during which such system is required 
        to be installed and operated.
            ``(3) Special rules.--In determining the amount of credit 
        allowable under this section solely by reason of this 
        subsection--
                    ``(A) Daily limit.--The amount of qualified fuels 
                sold during any taxable year which may be taken into 
                account by reason of this subsection with respect to 
                any facility shall not exceed an average barrel-of-oil 
                equivalent of 200,000 cubic feet of natural gas per 
                day. Days before the date the facility is placed in 
                service shall not be taken into account in determining 
                such average.
                    ``(B) Extension period to commence with unadjusted 
                credit amount.--In the case of fuels sold after 2003, 
                subparagraph (B) of subsection (d)(2) shall be applied 
                by substituting `2003' for `1979'.''.
    (b) Additional Definition.--Section 29(d) of the Internal Revenue 
Code of 1986 (relating to other definitions and special rules) is 
amended by adding at the end the following new paragraph:
            ``(9) Landfill gas facility.--
                    ``(A) In general.--A facility for producing 
                qualified fuel from landfill gas, placed in service 
                before, on, or after the date of the enactment of this 
                paragraph, includes all wells, pipes, and other gas 
                collection equipment installed as part of the facility 
                over the life of the landfill, including any 
                modifications or expansions thereof, after the facility 
                is first placed in service.
                    ``(B) Landfill gas.--The term `landfill gas' means 
                gas derived from the biodegradation of municipal solid 
                waste.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to fuel sold after the date of the enactment of this Act.

SEC. 2. EXTENSION AND EXPANSION OF CREDIT FOR PRODUCTION OF ELECTRICITY 
              TO PRODUCTION FROM LANDFILL GAS.

    (a) In General.--Section 45(c)(1) of the Internal Revenue Code of 
1986 (defining 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 new subparagraph:
                    ``(D) landfill gas.''.
    (b) Qualified Facility.--Section 45(c)(3) of the Internal Revenue 
Code of 1986 (relating to qualified facility) is amended by adding at 
the end the following new subparagraph:
                    ``(D) Landfill gas facility.--In the case of a 
                facility using landfill gas to produce electricity, the 
                term `qualified facility' means any such facility owned 
                by the taxpayer which is originally placed in service 
                before January 1, 2008.''.
    (c) Special Rules and Definitions.--
            (1) Reduced credit for certain preeffective date 
        facilities.--Section 45(d) of the Internal Revenue Code of 1986 
        (relating to definitions and special rules) is amended by 
        adding at the end the following new paragraph:
            ``(8) Reduced credit for certain preeffective date 
        facilities.--In the case of any facility described in 
        subparagraph (D) of paragraph (3) which is placed in service 
        before the date of the enactment of this subparagraph--
                    ``(A) subsection (a)(1) shall be applied by 
                substituting `1.0 cents' for `1.5 cents', and
                    ``(B) the 5-year period beginning on the date of 
                the enactment of this paragraph shall be substituted in 
                lieu of the 10-year period in subsection 
                (a)(2)(A)(ii).''.
            (2) Coordination with section 29.--Section 45(c)(3) of such 
        Code (relating to qualified facility), as amended by subsection 
        (b), is amended by adding at the end the following new 
        subparagraph:
                    ``(E) Coordination with section 29.--The term 
                `qualified facility' shall not include any facility the 
                production from which is taken into account in 
                determining any credit under section 29 for the taxable 
                year or any prior taxable year.''.
            (3) Landfill gas.--Section 45(c) of such Code is amended by 
        adding at the end the following new paragraph:
            ``(5) Landfill gas.--The term `landfill gas' means gas 
        derived from the biodegradation of municipal solid waste.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to electricity sold after the date of the enactment of this Act.
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