[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 494 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                 S. 494

To amend the Internal Revenue Code of 1986 to include agricultural and 
          animal waste sources as a renewable energy resource.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 27, 2003

   Mr. Crapo 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 include agricultural and 
          animal waste sources as a renewable energy resource.

    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 AND EXTENSION TO WASTE ENERGY.

    (a) Expansion of Qualified Energy Resources.--
            (1) In general.--Section 45(c)(1) of the Internal Revenue 
        Code of 1986 (defining qualified energy resources) is amended 
        by striking subparagraph (C) and inserting the following:
                    ``(C) agricultural and animal waste sources.''.
            (2) Definitions.--Section 45(c) of such Code (relating to 
        definitions) is amended by adding at the end the following new 
        paragraph:
            ``(5) Agricultural and animal waste sources.--The term 
        `agricultural and animal waste sources' means all waste heat, 
        steam, and fuels produced from the conversion of agricultural 
        and animal wastes, including by-products, packaging, and any 
        materials associated with the processing, feeding, selling, 
        transporting, and disposal of agricultural and animal products 
        or wastes (such as wood shavings, straw, rice hulls, and other 
        bedding material for the disposition of manure).''.
    (b) Extension and Modification of Placed-In-Service Rules.--Section 
45(c)(3) of the Internal Revenue Code of 1986 (defining qualified 
facility) is amended by striking subparagraph (C) and inserting the 
following:
                    ``(C) Agricultural and animal waste facility.--In 
                the case of a facility using agricultural and animal 
                waste to produce electricity, the term ``qualified 
                facility'' means any facility of the taxpayer which is 
                originally placed in service--
                            ``(i) in the case of a facility using 
                        poultry waste, after December 31, 1999, and 
                        before January 1, 2007, and
                            ``(ii) in the case of any other facility, 
                        after the date of the enactment of this 
                        subparagraph and before January 1, 2007.
                    ``(D) Combined production facilities included.--For 
                purposes of this paragraph, the term `qualified 
                facility' shall include a facility using agricultural 
                and animal waste to produce electricity and other 
                biobased products such as chemicals and fuels from 
                renewable resources.
                    ``(E) Special rules.--In the case of a qualified 
                facility described in subparagraph (C)--
                            ``(i) the 10-year period referred to in 
                        subsection (a) shall be treated as beginning no 
                        earlier than the date of the enactment of this 
                        subparagraph, and
                            ``(ii) subsection (b)(3) shall not apply to 
                        any such facility originally placed in service 
                        before January 1, 1997.''.
    (c) Conforming Amendments.--
            (1) The heading for section 45 of the Internal Revenue Code 
        of 1986 is amended by inserting ``and waste energy'' after 
        ``renewable''.
            (2) The item relating to section 45 in the table of 
        sections subpart D of part IV of subchapter A of chapter 1 of 
        such Code is amended by inserting ``and waste energy'' after 
        ``renewable''.
    (d) Effective Date.--The amendments made by this section shall 
apply to electricity produced after the date of the enactment of this 
Act.
                                 <all>