109 HR 1541 RH: Enhanced Energy Infrastructure and Technology Tax Act of 2005
U.S. House of Representatives
2005-04-18
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.
(a)This Act may be cited as the Enhanced Energy Infrastructure and Technology Tax Act of 2005
.
(b)Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.
(c)The table of contents for this Act is as follows:
Sec. 1. Short title; etc
Title I—Energy Infrastructure Tax Incentives
Sec. 101. Natural gas gathering lines treated as 7-year property
Sec. 102. Natural gas distribution lines treated as 15-year property
Sec. 103. Electric transmission property treated as 15-year property
Sec. 104. Expansion of amortization for certain atmospheric pollution control facilities in connection with plants first placed in service after 1975
Sec. 105. Modification of credit for producing fuel from a nonconventional source
Sec. 106. Modifications to special rules for nuclear decommissioning costs
Sec. 107. Arbitrage rules not to apply to prepayments for natural gas
Sec. 108. Determination of small refiner exception to oil depletion deduction
Title II—Miscellaneous Energy Tax Incentives
Sec. 201. Credit for residential energy efficient property
Sec. 202. Credit for business installation of qualified fuel cells
Sec. 203. Reduced motor fuel excise tax on certain mixtures of diesel fuel
Sec. 204. Amortization of delay rental payments
Sec. 205. Amortization of geological and geophysical expenditures
Sec. 206. Advanced lean burn technology motor vehicle credit
Sec. 207. Credit for energy efficiency improvements to existing homes
Title III—Alternative minimum tax relief
Sec. 301. New nonrefundable personal credits allowed against regular and minimum taxes
Sec. 302. Certain business energy credits allowed against regular and minimum taxes
<enum>I</enum><header>Energy Infrastructure Tax Incentives</header>
<section id="H8A8228B563EE44C69CA916B81834BAED"><enum>101.</enum><header>Natural gas gathering lines treated as 7-year property</header>
<subsection id="H5A1414DA16084562AE93EB1119C15F52"><enum>(a)</enum><header>In general</header><text>Subparagraph (C) of section 168(e)(3) (relating to classification of certain property) is amended by striking <quote>and</quote> at the end of clause (iii), by redesignating clause (iv) as clause (v), and by inserting after clause (iii) the following new clause:</text>
<quoted-block id="H5352FAA1A11F48AE8DF39084CE10009">
<clause id="HDAEF79FAF3F346129100268757E22877"><enum>(iv)</enum><text>any natural gas gathering line, and</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HFAE6C73BC51646B6AE3B41BFBAEFC91"><enum>(b)</enum><header>Natural gas gathering line</header><text>Subsection (i) of <external-xref legal-doc="usc" parsable-cite="usc/26/168">section 168</external-xref> is amended by inserting after paragraph (16) the following new paragraph:</text>
<quoted-block id="HF53F81A314D3467498E0667FB46FE131">
<paragraph id="HC04B9E2C58034A7ABC64B9DD89C04D6C"><enum>(17)</enum><header>Natural gas gathering line</header><text>The term <term>natural gas gathering line</term> means—</text>
<subparagraph id="HF595419EC8B14361A2E274B5DDB500FC"><enum>(A)</enum><text>the pipe, equipment, and appurtenances determined to be a gathering line by the Federal Energy Regulatory Commission, and</text></subparagraph>
<subparagraph id="H1BC7FCA0EBE5415E97E108AC0200B975"><enum>(B)</enum><text>the pipe, equipment, and appurtenances used to deliver natural gas from the wellhead or a commonpoint to the point at which such gas first reaches—</text>
<clause id="HDCC8C8B2341C45459315F975E2DD79F7"><enum>(i)</enum><text>a gas processing plant,</text></clause>
<clause id="HBA313851A39C41FCBB343779E6155DC"><enum>(ii)</enum><text>an interconnection with a transmission pipeline for which a certificate as an interstate transmission pipeline has been issued by the Federal Energy Regulatory Commission,</text></clause>
<clause id="HE2494C458E37448096C8894C162D6F8C"><enum>(iii)</enum><text>an interconnection with an intrastate transmission pipeline, or</text></clause>
<clause id="H23CC7CD2D0314915A24975859E4152F7"><enum>(iv)</enum><text>a direct interconnection with a local distribution company, a gas storage facility, or an industrial consumer.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H20BD0707F4794323ACB5663DD8013F4C"><enum>(c)</enum><header>Alternative system</header><text>The table contained in <external-xref legal-doc="usc" parsable-cite="usc/26/168">section 168(g)(3)(B)</external-xref> is amended by inserting after the item relating to subparagraph (C)(iii) the following:</text>
<quoted-block style="OLC" id="H04BB5D66C441453D8DB47F3C9417117F" display-inline="no-display-inline">
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<multi-column-toc-entry level="section"><toc-enum>(C)</toc-enum><level-header level="section">(iv)</level-header><target>14</target></multi-column-toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H19A26198D8D148208122F83DA2F9D12"><enum>(d)</enum><header>Alternative minimum tax exception</header><text>Subparagraph (B) of <external-xref legal-doc="usc" parsable-cite="usc/26/56">section 56(a)(1)</external-xref> is amended by inserting before the period the following: <quote>, or in section 168(e)(3)(C)(iv)</quote>.</text></subsection>
<subsection id="HB3797DEF34F5494700FBBD65ED4CC8D0"><enum>(e)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after April 11, 2005. </text></subsection></section>
<section id="HF4AE7ADFEADE4F5D818FA850E45D9C00" display-inline="no-display-inline" section-type="subsequent-section"><enum>102.</enum><header>Natural gas distribution lines treated as 15-year property</header>
<subsection id="H4BEE29EFFE92468DBD7EFE6E7D007565"><enum>(a)</enum><header>In general</header><text>Subparagraph (E) of section 168(e)(3) (relating to classification of certain property) is amended by striking <quote>and</quote> at the end of clause (v), by striking the period at the end of clause (vi) and inserting <quote>, and</quote>, and by adding at the end the following new clause:</text>
<quoted-block id="H24916BFEDFAF4A8E8FEADFD26BBE6500">
<clause id="HB6949792148842C98EFADD8B10AAB83"><enum>(vii)</enum><text>any natural gas distribution line.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H3EE59151A4684DEEB579BC99E5A8E5CD"><enum>(b)</enum><header>Alternative system</header><text>The table contained in <external-xref legal-doc="usc" parsable-cite="usc/26/168">section 168(g)(3)(B)</external-xref> is amended by inserting after the item relating to subparagraph (E)(vi) the following:</text>
<quoted-block style="OLC" id="H92C486B8C6C740E88EA42877AB0021BE" display-inline="no-display-inline">
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<multi-column-toc-entry level="section"><toc-enum>(E)</toc-enum><level-header level="section">(vii)</level-header><target>35</target></multi-column-toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H3496C671DD7443B0AA28ACFF7494C890" display-inline="no-display-inline"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after April 11, 2005.</text></subsection></section>
<section id="H16935DCC1AEF4D7898FE5FC6C7350747" display-inline="no-display-inline" section-type="subsequent-section"><enum>103.</enum><header>Electric transmission property treated as 15-year property</header>
<subsection id="H66C561F97A364AFA841B325805ECFCB5"><enum>(a)</enum><header>In general</header><text>Subparagraph (E) of section 168(e)(3) (relating to classification of certain property), as amended by section 102 of this Act, is amended by striking <quote>and</quote> at the end of clause (vi), by striking the period at the end of clause (vii) and inserting <quote>, and</quote>, and by adding at the end the following new clause:</text>
<quoted-block id="HC1B6409981AA4CA8B1D01FFA4E2F344D">
<clause id="H620A49072A9745F79800E4FA8915AB54"><enum>(viii)</enum><text display-inline="yes-display-inline">any section 1245 property (as defined in section 1245(a)(3)) used in the transmission at 69 or more kilovolts of electricity for sale and the original use of which commences with the taxpayer after April 11, 2005.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H7117893B746F47ACBB322658E466EE8D"><enum>(b)</enum><header>Alternative system</header><text>The table contained in <external-xref legal-doc="usc" parsable-cite="usc/26/168">section 168(g)(3)(B)</external-xref> is amended by inserting after the item relating to subparagraph (E)(vii) the following:</text>
<quoted-block style="OLC" id="H201AA5C09F3442358FCBC9BA5761D7DE" display-inline="no-display-inline">
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<multi-column-toc-entry level="section"><toc-enum>(E)</toc-enum><level-header level="section">(viii)</level-header><target>30</target></multi-column-toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H2519782DDC954685B43E8F7EE4CA5FF0" display-inline="no-display-inline"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after April 11, 2005.</text></subsection></section>
<section id="H1021D5A960CA47FA83E6EF33048F9E9D" display-inline="no-display-inline" section-type="subsequent-section"><enum>104.</enum><header>Expansion of amortization for certain atmospheric pollution control facilities in connection with plants first placed in service after 1975</header>
<subsection id="H3F56A60020854E2891CB3865E700963C"><enum>(a)</enum><header>Eligibility of post-1975 pollution control facilities</header><text display-inline="yes-display-inline">Subsection (d) of section 169 (relating to definitions) is amended by adding at the end the following:</text>
<quoted-block style="OLC" id="H54C58A4B1FCF4AD1B2A5E44FA67FF84" display-inline="no-display-inline">
<paragraph id="H682D0C102AAE455580BD1FD6A325E726"><enum>(5)</enum><header>Special rule relating to certain atmospheric pollution control facilities</header><text display-inline="yes-display-inline">In the case of any atmospheric pollution control facility which is placed in service after April 11, 2005, and used in connection with an electric generation plant or other property which is primarily coal fired, paragraph (1) shall be applied without regard to the phrase <quote>in operation before January 1, 1976</quote>.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H00C549C8556B488EB166F9F4A3898DE" commented="no"><enum>(b)</enum><header>Treatment as new identifiable treatment facility</header><text>Subparagraph (B) of <external-xref legal-doc="usc" parsable-cite="usc/26/169">section 169(d)(4)</external-xref> is amended to read as follows:</text>
<quoted-block style="OLC" id="H302671A23AF044518B528B737B92EEB7" display-inline="no-display-inline">
<subparagraph id="H57A2E3C08E3F4F4588BE6EA6F0954B7E" commented="no"><enum>(B)</enum><header>Certain facilities placed in operation after April 11, 2005</header><text>In the case of any facility described in paragraph (1) solely by reason of paragraph (5), subparagraph (A) shall be applied by substituting <quote>April 11, 2005</quote> for <quote>December 31, 1968</quote> each place it appears therein.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H6040FE05C2DD4F84AF00E1F9943491ED"><enum>(c)</enum><header>Technical amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/169">Section 169(d)(3)</external-xref> is amended by striking <quote>Health, Education, and Welfare</quote> and inserting <quote>Health and Human Services</quote>.</text></subsection>
<subsection id="HADCF5D2E08DB4E8BA27B0060DB001457"><enum>(d)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to facilities placed in service after April 11, 2005.</text></subsection></section>
<section id="HCF7D16139264400D936C7E9600A146B2" display-inline="no-display-inline" section-type="subsequent-section"><enum>105.</enum><header>Modification of credit for producing fuel from a nonconventional source</header>
<subsection id="HAB46E32103C34A1AA552E8415D883259"><enum>(a)</enum><header>Treatment as business credit</header>
<paragraph id="H2D79ABCF4E0E402C8D7BEC1EEA026907"><enum>(1)</enum><header>Credit moved to subpart relating to business related credits</header><text>The Internal Revenue Code of 1986 is amended by redesignating section 29 as section 45J and by moving section 45J (as so redesignated) from subpart B of part IV of subchapter A of chapter 1 to the end of subpart D of part IV of subchapter A of chapter 1. </text></paragraph>
<paragraph id="HD7ABBECC07F4479682AC6E553D0000BC"><enum>(2)</enum><header>Credit treated as business credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/38">Section 38(b)</external-xref> is amended by striking <quote>plus</quote> at the end of paragraph (18), by striking the period at the end of paragraph (19) and inserting <quote>, plus</quote>, and by adding at the end the following:</text>
<quoted-block id="HCAED4CF8F8CF49FFB014AB2C1CD9AF37">
<paragraph id="H037C7436D0DF48C0B6A23794D74CA708"><enum>(20)</enum><text>the nonconventional source production credit determined under section 45J(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="HD24374A7A1BC49369736E6D081BDED38"><enum>(3)</enum><header>Conforming amendments</header>
<subparagraph id="HC815F086CBAC44B98149C886B9CEE174"><enum>(A)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/30">Section 30(b)(3)(A)</external-xref> is amended by striking <quote>sections 27 and 29</quote> and inserting <quote>section 27</quote>.</text></subparagraph>
<subparagraph id="HB221AB68CED748DAA3AD26E4DD22D25"><enum>(B)</enum><text>Sections 43(b)(2), 45I(b)(2)(C)(i), and 613A(c)(6)(C) are each amended by striking <quote>section 29(d)(2)(C)</quote> and inserting <quote>section 45J(d)(2)(C)</quote>.</text></subparagraph>
<subparagraph id="H2C08A63E13954108BB1EFC3BBA70FB"><enum>(C)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/45">Section 45(e)(9)</external-xref> is amended—</text>
<clause id="H0184272DA71D4C4200426858C71B20E2"><enum>(i)</enum><text>by striking <quote>section 29</quote> and inserting <quote>section 45J</quote>, and</text></clause>
<clause id="H108834B2FB644593A8EE1FBEFA0060A7"><enum>(ii)</enum><text>by inserting <quote>(or under section 29, as in effect on the day before the date of enactment of the <short-title>Enhanced Energy Infrastructure and Technology Tax Act of 2005</short-title>, for any prior taxable year)</quote> before the period at the end thereof.</text></clause></subparagraph>
<subparagraph id="HEA0A347A5EC24EB3998903F235E558CE"><enum>(D)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/45I">Section 45I</external-xref> is amended—</text>
<clause id="HF325EDF77CE24DD1A3DF15D84F5D342D"><enum>(i)</enum><text display-inline="yes-display-inline">in subsection (c)(2)(A) by striking <quote>section 29(d)(5))</quote> and inserting <quote>section 45J(d)(5))</quote>, and</text></clause>
<clause id="H57D70CBA3A824A9A8CF2B5D1EB17DB86"><enum>(ii)</enum><text>in subsection (d)(3) by striking <quote>section 29</quote> both places it appears and inserting <quote>section 45J</quote>.</text></clause></subparagraph>
<subparagraph id="H7DE65ADFE53540C599456037039E5D45"><enum>(E)</enum><text>Section 45J(a), as redesignated by paragraph (1), is amended by striking <quote>There shall be allowed as a credit against the tax imposed by this chapter for the taxable year</quote> and inserting <quote>For purposes of section 38, if the taxpayer elects to have this section apply, the nonconventional source production credit determined under this section for the taxable year is</quote>.</text></subparagraph>
<subparagraph id="HEBE95F52F2C0463386682B4970650000"><enum>(F)</enum><text>Section 45J(b), as so redesignated, is amended by striking paragraph (6).</text></subparagraph>
<subparagraph id="H5635741B3B27450F82614FB0714EB405"><enum>(G)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/53">Section 53(d)(1)(B)(iii)</external-xref> is amended by striking <quote>under section 29</quote> and all that follows through <quote>or not allowed</quote>.</text></subparagraph>
<subparagraph id="H1C837F646D014FD9A042D7B62DEE00BE"><enum>(H)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/55">Section 55(c)(3)</external-xref> is amended by striking <quote>29(b)(6),</quote>.</text></subparagraph>
<subparagraph id="H876303CEA6BF4E44975C87FF5BAD06C1"><enum>(I)</enum><text>Subsection (a) of <external-xref legal-doc="usc" parsable-cite="usc/26/772">section 772</external-xref> is amended by inserting <quote>and</quote> at the end of paragraph (9), by striking paragraph (10), and by redesignating paragraph (11) as paragraph (10).</text></subparagraph>
<subparagraph id="HBA685CC7EEE94B239136510716473FA8"><enum>(J)</enum><text>Paragraph (5) of <external-xref legal-doc="usc" parsable-cite="usc/26/772">section 772(d)</external-xref> is amended by striking <quote>the foreign tax credit, and the credit allowable under section 29</quote> and inserting <quote>and the foreign tax credit</quote>.</text></subparagraph>
<subparagraph id="H274440E77A824D588174B788F6B7AF86"><enum>(K)</enum><text>The table of sections for subpart B of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by striking the item relating to section 29.</text></subparagraph>
<subparagraph id="HFBF83A1F9E0C4DC09DBA2889791B1528"><enum>(L)</enum><text>The table of sections for subpart D of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after the item relating to section 45I the following new item:</text>
<quoted-block style="OLC" id="H27EC9A1787F74408AEE4C0502D3885FB">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 45J. Credit for producing fuel from a nonconventional source</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection>
<subsection id="H0CFE42D2898A462CAB50A0569029B3CA" commented="no"><enum>(b)</enum><header>Amendments conforming to the repeal of the Natural Gas Policy Act of 1978</header>
<paragraph id="H751717DB7B9B42DA82E583CE7BFEE013" commented="no"><enum>(1)</enum><header>In general</header><text>Section 29(c)(2)(A) (before redesignation under subsection (a)) is amended—</text>
<subparagraph id="HE9E968682BCE4F7494C48CBBAF193197" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">by inserting <quote>(as in effect before the repeal of such section)</quote> after <quote>1978</quote>, and </text></subparagraph>
<subparagraph id="H02C519F87C4B4945AA3BE7309BB1C038" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">by striking subsection (e) and redesignating subsections (f) and (g) as subsections (e) and (f), respectively.</text></subparagraph></paragraph>
<paragraph id="HAA2C5EFF093C446C9F55D4B3A71F709E" commented="no"><enum>(2)</enum><header>Conforming amendments</header><text display-inline="yes-display-inline">Section 29(g)(1)(before redesignation under subsection (a) and paragraph (1) of this subsection) is amended—</text>
<subparagraph id="HB19D9C4705E34E0C9E51A0C5E5A8F06E" commented="no"><enum>(A)</enum><text>in subparagraph (A) by striking <quote>subsection (f)(1)(B)</quote> and inserting <quote>subsection (e)(1)(B)</quote>, and</text></subparagraph>
<subparagraph id="H3E66CE7D1C3E469BADD9FFA33764A401" commented="no"><enum>(B)</enum><text>in subparagraph (B) by striking <quote>subsection (f)</quote> and inserting <quote>subsection (e)</quote>.</text></subparagraph></paragraph></subsection>
<subsection id="HCB4E771EB0BC4CF880D15800A069719B"><enum>(c)</enum><header>Effective dates</header>
<paragraph id="H984BB01C22864119B586B29CDDBD3F2"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), the amendments made by this section shall apply to credits determined under the Internal Revenue Code of 1986 for taxable years ending after December 31, 2005.</text></paragraph>
<paragraph id="H6FEE744A20064E2396C498765F98A0F"><enum>(2)</enum><header>Subsection <enum-in-header>(b)</enum-in-header></header><text>The amendments made by subsection (b) shall take effect on the date of the enactment of this Act.</text></paragraph></subsection></section>
<section id="HC18BBED3A1B542BDB16502D4305EDD08" display-inline="no-display-inline" section-type="subsequent-section" commented="no"><enum>106.</enum><header>Modifications to special rules for nuclear decommissioning costs</header>
<subsection id="H58B1DAB3C3AA4FC5B910E26440AB5110" commented="no"><enum>(a)</enum><header>Repeal of limitation on deposits into Fund based on cost of service; contributions after funding period</header><text>Subsection (b) of section 468A (relating to special rules for nuclear decommissioning costs) is amended to read as follows:</text>
<quoted-block id="H5FB88534E7B14F06A78BBAE5CF6EB41">
<subsection id="HBAFEB87C444D478DA4934C8EA1C878DB"><enum>(b)</enum><header>Limitation on amounts paid into Fund</header><text>The amount which a taxpayer may pay into the Fund for any taxable year shall not exceed the ruling amount applicable to such taxable year.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H5C457EB0C8994ACF811929C39E8030D7" commented="no"><enum>(b)</enum><header>Treatment of certain decommissioning costs</header>
<paragraph id="H1323233E1FCD44F8BC234919B1E7C8D" commented="no"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/468A">Section 468A</external-xref> is amended by redesignating subsections (f) and (g) as subsections (g) and (h), respectively, and by inserting after subsection (e) the following new subsection:</text>
<quoted-block id="H8A90657217CD4D21970033646EC4E700">
<subsection id="H9B708C383E964D1EB8E8C69388BAF573"><enum>(f)</enum><header>Transfers into qualified funds</header>
<paragraph id="H9F777DF04B234385AEDE9221D4F8CF00"><enum>(1)</enum><header>In general</header><text>Notwithstanding subsection (b), any taxpayer maintaining a Fund to which this section applies with respect to a nuclear power plant may transfer into such Fund not more than an amount equal to the present value of the portion of the total nuclear decommissioning costs with respect to such nuclear power plant previously excluded for such nuclear power plant under subsection (d)(2)(A) as in effect immediately before the date of the enactment of the <short-title>Enhanced Energy Infrastructure and Technology Tax Act of 2005</short-title>.</text></paragraph>
<paragraph id="HBCCFD108A5EA4979BD6D385848740013"><enum>(2)</enum><header>Deduction for amounts transferred</header>
<subparagraph id="H439D9CF6B5494DA59009DCCD003326DB"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (C), the deduction allowed by subsection (a) for any transfer permitted by this subsection shall be allowed ratably over the remaining estimated useful life (within the meaning of subsection (d)(2)(A)) of the nuclear power plant beginning with the taxable year during which the transfer is made.</text></subparagraph>
<subparagraph id="H24616C66DB37471894DD499F7B563387"><enum>(B)</enum><header>Denial of deduction for previously deducted amounts</header><text>No deduction shall be allowed for any transfer under this subsection of an amount for which a deduction was previously allowed to the taxpayer (or a predecessor) or a corresponding amount was not included in gross income of the taxpayer (or a predecessor). For purposes of the preceding sentence, a ratable portion of each transfer shall be treated as being from previously deducted or excluded amounts to the extent thereof.</text></subparagraph>
<subparagraph id="H7F46AB36980D4AC4AA08DF35582E70F9"><enum>(C)</enum><header>Transfers of qualified funds</header><text>If—</text>
<clause id="HA03B593B5B9C49A4A071084E9000A34D"><enum>(i)</enum><text>any transfer permitted by this subsection is made to any Fund to which this section applies, and</text></clause>
<clause id="H6CA1F6DC12FA4836AC473936E81605F2"><enum>(ii)</enum><text>such Fund is transferred thereafter,</text></clause><continuation-text continuation-text-level="subparagraph">any deduction under this subsection for taxable years ending after the date that such Fund is transferred shall be allowed to the transferor for the taxable year which includes such date.</continuation-text></subparagraph>
<subparagraph id="H34997C7C5DF84CE1B64CEA967899668F"><enum>(D)</enum><header>Special rules</header>
<clause id="HA8C9336A51174B93ADC39E53C3AA54DC"><enum>(i)</enum><header>Gain or loss not recognized on transfers to Fund</header><text display-inline="yes-display-inline">No gain or loss shall be recognized on any transfer described in paragraph (1).</text></clause>
<clause id="H5E551C0EA19B474D866D1D8CE4DA63A9"><enum>(ii)</enum><header>Transfers of appreciated property to Fund</header><text display-inline="yes-display-inline">If appreciated property is transferred in a transfer described in paragraph (1), the amount of the deduction shall not exceed the adjusted basis of such property.</text></clause></subparagraph></paragraph>
<paragraph id="H9F73184C646C45F08D5821183FCFF537"><enum>(3)</enum><header>New ruling amount required</header><text>Paragraph (1) shall not apply to any transfer unless the taxpayer requests from the Secretary a new schedule of ruling amounts in connection with such transfer.</text></paragraph>
<paragraph id="HAEB65CD4803742029D64EDD5FECC0D2"><enum>(4)</enum><header>No basis in qualified funds</header><text>Notwithstanding any other provision of law, the taxpayer’s basis in any Fund to which this section applies shall not be increased by reason of any transfer permitted by this subsection.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="H57D4604924C54A11BBC109C096F23B04" commented="no"><enum>(2)</enum><header>New ruling amount to take into account total costs</header><text>Subparagraph (A) of section 468A(d)(2) (defining ruling amount) is amended to read as follows:</text>
<quoted-block id="HF5953DA3890B4C0FB766B42E19942222">
<subparagraph id="HD59833B681C04548B5DEAD99AB814100"><enum>(A)</enum><text>fund the total nuclear decommissioning costs with respect to such power plant over the estimated useful life of such power plant, and</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="HA94D8865E9FE4AF100ACFC34C5727DBC" commented="no"><enum>(c)</enum><header>Technical amendments</header><text>Section 468A(e)(2) (relating to taxation of Fund) is amended—</text>
<paragraph id="H19E747D07A824E6E9BB6C7D6F757FC68" commented="no"><enum>(1)</enum><text>by striking <quote>rate set forth in subparagraph (B)</quote> in subparagraph (A) and inserting <quote>rate of 20 percent</quote>,</text></paragraph>
<paragraph id="HE24BC73EC9CB4104A3DC3B6452191740" commented="no"><enum>(2)</enum><text>by striking subparagraph (B), and</text></paragraph>
<paragraph id="HD463DC9BA9D0481D8CEF2536301093D8" commented="no"><enum>(3)</enum><text>by redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C), respectively.</text></paragraph></subsection>
<subsection id="HCDE0BB9FFF8D4097946C06E687F0FFE8" commented="no"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2005.</text></subsection></section>
<section id="HCA433CA57023423E9727C056EFCBBA32" display-inline="no-display-inline" section-type="subsequent-section"><enum>107.</enum><header>Arbitrage rules not to apply to prepayments for natural gas</header>
<subsection id="HB04A0940A64540B580B5A028B470F600"><enum>(a)</enum><header>In general</header><text>Subsection (b) of section 148 (relating to higher yielding investments) is amended by adding at the end the following new paragraph:</text>
<quoted-block id="HACB8091346B9490CAC77C1319EFDB23F">
<paragraph id="H9F3F1D90D10942CAB51700D7CF12561"><enum>(4)</enum><header>Safe harbor for prepaid natural gas</header>
<subparagraph id="H7D2E0A7C792544A0A458789B1CEC3B8E"><enum>(A)</enum><header>In general</header><text>The term <term>investment-type property</term> does not include a prepayment under a qualified natural gas supply contract.</text></subparagraph>
<subparagraph id="H3EBB33245B9D42D695DB00C047DF6895"><enum>(B)</enum><header>Qualified natural gas supply contract</header><text>For purposes of this paragraph, the term <term>qualified natural gas supply contract</term> means any contract to acquire natural gas for resale by a utility owned by a governmental unit if the amount of gas permitted to be acquired under the contract by the utility during any year does not exceed the sum of—</text>
<clause id="H6201C2E394284A0A96D1EC160AEBFC8"><enum>(i)</enum><text>the annual average amount during the testing period of natural gas purchased (other than for resale) by customers of such utility who are located within the service area of such utility, and</text></clause>
<clause id="H6D13E6FBACD74F87AA8F7900963288DF"><enum>(ii)</enum><text>the amount of natural gas to be used to transport the prepaid natural gas to the utility during such year.</text></clause></subparagraph>
<subparagraph id="H4756B7188DA14EAE88306DEFE813B3E3"><enum>(C)</enum><header>Natural gas used to generate electricity</header><text>Natural gas used to generate electricity shall be taken into account in determining the average under subparagraph (B)(i)—</text>
<clause id="HB560EA837CA94DDC8DE2E3764E000668"><enum>(i)</enum><text>only if the electricity is generated by a utility owned by a governmental unit, and</text></clause>
<clause id="H76A05D6F568C4582A14F0000B4652D71"><enum>(ii)</enum><text>only to the extent that the electricity is sold (other than for resale) to customers of such utility who are located within the service area of such utility.</text></clause></subparagraph>
<subparagraph id="HD69EFB6685FE454BB29C5291E6EC608E"><enum>(D)</enum><header>Adjustments for changes in customer base</header>
<clause id="HB23A52D4E14B443A9D1536BE6F1B8390"><enum>(i)</enum><header>New business customers</header><text>If—</text>
<subclause id="H3EF6826127274E8E9B19040018FF3464"><enum>(I)</enum><text>after the close of the testing period and before the date of issuance of the issue, the utility owned by a governmental unit enters into a contract to supply natural gas (other than for resale) for a business use at a property within the service area of such utility, and</text></subclause>
<subclause id="H586D9715922D43A7A6D60400BD04673E"><enum>(II)</enum><text>the utility did not supply natural gas to such property during the testing period or the ratable amount of natural gas to be supplied under the contract is significantly greater than the ratable amount of gas supplied to such property during the testing period,</text></subclause><continuation-text continuation-text-level="clause">then a contract shall not fail to be treated as a qualified natural gas supply contract by reason of supplying the additional natural gas under the contract referred to in subclause (I).</continuation-text></clause>
<clause id="HF737B60B1F364C4CB17CA87C11EB738C"><enum>(ii)</enum><header>Lost customers</header><text>The average under subparagraph (B)(i) shall not exceed the annual amount of natural gas reasonably expected to be purchased (other than for resale) by persons who are located within the service area of such utility and who, as of the date of issuance of the issue, are customers of such utility.</text></clause></subparagraph>
<subparagraph id="H5A5DBA0B4A4F4101AE38ABEA64B0EADE"><enum>(E)</enum><header>Ruling requests</header><text>The Secretary may increase the average under subparagraph (B)(i) for any period if the utility owned by the governmental unit establishes to the satisfaction of the Secretary that, based on objective evidence of growth in natural gas consumption or population, such average would otherwise be insufficient for such period.</text></subparagraph>
<subparagraph id="H67DA4E0983104F20B8955816ED7F00C9"><enum>(F)</enum><header>Adjustment for natural gas otherwise on hand</header>
<clause id="HFFD287A37B0C43E6B4247C3EE07D001B"><enum>(i)</enum><header>In general</header><text>The amount otherwise permitted to be acquired under the contract for any period shall be reduced by—</text>
<subclause id="H1356AA9C6A3E44B38FD6F884643BF2F3"><enum>(I)</enum><text>the applicable share of natural gas held by the utility on the date of issuance of the issue, and</text></subclause>
<subclause id="H812F6B70EDC94D5F8F9EE62C30663351"><enum>(II)</enum><text>the natural gas (not taken into account under subclause (I)) which the utility has a right to acquire during such period (determined as of the date of issuance of the issue).</text></subclause></clause>
<clause id="H5BA1322F4C7F4C8796CB003974F830B6"><enum>(ii)</enum><header>Applicable share</header><text>For purposes of the clause (i), the term <term>applicable share</term> means, with respect to any period, the natural gas allocable to such period if the gas were allocated ratably over the period to which the prepayment relates.</text></clause></subparagraph>
<subparagraph id="H4DE339C4485943E581F3D3BB23E74E0"><enum>(G)</enum><header>Intentional acts</header><text>Subparagraph (A) shall cease to apply to any issue if the utility owned by the governmental unit engages in any intentional act to render the volume of natural gas acquired by such prepayment to be in excess of the sum of—</text>
<clause id="HB7FB7376A6114180A95555883537B3B3"><enum>(i)</enum><text>the amount of natural gas needed (other than for resale) by customers of such utility who are located within the service area of such utility, and</text></clause>
<clause id="HFF2622791DEA484BA44BFC9DDC50E5D9"><enum>(ii)</enum><text>the amount of natural gas used to transport such natural gas to the utility.</text></clause></subparagraph>
<subparagraph id="HADAD34225F514352A014ABD6BE6D04A5"><enum>(H)</enum><header>Testing period</header><text>For purposes of this paragraph, the term <term>testing period</term> means, with respect to an issue, the most recent 5 calendar years ending before the date of issuance of the issue.</text></subparagraph>
<subparagraph id="HF0CAE840965E4C5BA2C1689FBA7F00A4"><enum>(I)</enum><header>Service area</header><text>For purposes of this paragraph, the service area of a utility owned by a governmental unit shall be comprised of—</text>
<clause id="H6B454F7A354F416A91E300CBDB125EA"><enum>(i)</enum><text>any area throughout which such utility provided at all times during the testing period—</text>
<subclause id="HCAF7C75107CA485BBE65CA827E260358"><enum>(I)</enum><text>in the case of a natural gas utility, natural gas transmission or distribution services, and</text></subclause>
<subclause id="H840E0FA6EF6A4B2A9FEB643800791927"><enum>(II)</enum><text>in the case of an electric utility, electricity distribution services,</text></subclause></clause>
<clause id="HE4D80E0D2DBA43EA99F01794E7149F"><enum>(ii)</enum><text>any area within a county contiguous to the area described in clause (i) in which retail customers of such utility are located if such area is not also served by another utility providing natural gas or electricity services, as the case may be, and</text></clause>
<clause id="HBB8EB8940395493EBF70E9CFE3BBE5E0"><enum>(iii)</enum><text>any area recognized as the service area of such utility under State or Federal law.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H0D4D0BDD44AD45D8954B271432021D5C"><enum>(b)</enum><header>Private loan financing test not to apply to prepayments for natural gas</header><text>Paragraph (2) of section 141(c) (providing exceptions to the private loan financing test) is amended by striking <quote>or</quote> at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting <quote>, or</quote>, and by adding at the end the following new subparagraph:</text>
<quoted-block id="H651CAF6FB8624BFB8209BEFA1C73B2D5">
<subparagraph id="H609F8275C26F431692C0E7BB000452C3"><enum>(C)</enum><text>is a qualified natural gas supply contract (as defined in section 148(b)(4)).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H3A951AA349F44E6AB27B9879919FA820"><enum>(c)</enum><header>Exception for qualified electric and natural gas supply contracts</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/141">Section 141(d)</external-xref> is amended by adding at the end the following new paragraph:</text>
<quoted-block id="H06BB87A9FCC045A19BE284F4AD60D678">
<paragraph id="H7E4AEC53A6C5475DA25BAE51D3279E41"><enum>(7)</enum><header>Exception for qualified electric and natural gas supply contracts</header><text>The term <term>nongovernmental output property</term> shall not include any contract for the prepayment of electricity or natural gas which is not investment property under section 148(b)(2).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HD7653CDED6104CBA99958D3C48510667"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.</text></subsection></section>
<section id="H939B22A9B711465FA9DF9506AE263E98" display-inline="no-display-inline" section-type="subsequent-section"><enum>108.</enum><header>Determination of small refiner exception to oil depletion deduction</header>
<subsection id="H48CBBB64E6DA4DB581AB34D940AD6D69"><enum>(a)</enum><header>In general</header><text>Paragraph (4) of section 613A(d) (relating to limitations on application of subsection (c)) is amended to read as follows:</text>
<quoted-block id="HB10A5C970CAF442D89D7557B8CB873C5">
<paragraph id="H01333BBA3BBF4012AA9186972786B0D9"><enum>(4)</enum><header>Certain refiners excluded</header><text>If the taxpayer or 1 or more related persons engages in the refining of crude oil, subsection (c) shall not apply to the taxpayer for a taxable year if the average daily refinery runs of the taxpayer and such persons for the taxable year exceed 75,000 barrels. For purposes of this paragraph, the average daily refinery runs for any taxable year shall be determined by dividing the aggregate refinery runs for the taxable year by the number of days in the taxable year.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H258D97E0FE8B4738BF0023EB3C2DBDED"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to taxable years ending after the date of the enactment of this Act.</text></subsection></section>
<enum>II</enum><header>Miscellaneous Energy Tax Incentives</header>
<section id="H2DB85726E2F343B3AD62282D1640A232" display-inline="no-display-inline" section-type="subsequent-section"><enum>201.</enum><header>Credit for residential energy efficient property</header>
<subsection id="H54B03C566EDF4F26A5009DE72900899E"><enum>(a)</enum><header>In general</header><text>Subpart A of part IV of subchapter A of chapter 1 (relating to nonrefundable personal credits) is amended by inserting after section 25B the following new section:</text>
<quoted-block id="H4A584F31E3794120B4616E6060358DCB">
<section id="H779B3BD0493246A8A54968862452B289"><enum>25C.</enum><header>Residential energy efficient property</header>
<subsection id="HB4C9B967520545DB8C1C30F1FB2E7DCD"><enum>(a)</enum><header>Allowance of credit</header><text>In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of—</text>
<paragraph id="H51E96FF0B8A84B5090A6BB5C00050499"><enum>(1)</enum><text>15 percent of the qualified solar water heating property expenditures made by the taxpayer during such year, </text></paragraph>
<paragraph id="H2AAD8DF712FE4334ADB0DE24847DDB2"><enum>(2)</enum><text>15 percent of the qualified photovoltaic property expenditures made by the taxpayer during such year, and</text></paragraph>
<paragraph id="H9774399E2C83424AA5B3F11618848665"><enum>(3)</enum><text>15 percent of the qualified fuel cell property expenditures made by the taxpayer during such year.</text></paragraph></subsection>
<subsection id="H2FFBE4D98B2A43D6AA69EE87F84185F"><enum>(b)</enum><header>Limitations</header>
<paragraph id="H7911839EF5C14EAAA0A83C00001D9782"><enum>(1)</enum><header>Maximum credit</header>
<subparagraph id="H10C1CAE7C02244CEA6B7A3CA2BB0C4CA"><enum>(A)</enum><header>In general</header><text>The credit allowed under subsection (a) shall not exceed—</text>
<clause id="HA91E8A11BA484B8F817DCA4BD355FF78"><enum>(i)</enum><text display-inline="yes-display-inline">$2,000 for solar water heating property described in subsection (c)(1),</text></clause>
<clause id="H898BB854890A4B8AB5B9D507E25D5606" display-inline="no-display-inline"><enum>(ii)</enum><text display-inline="yes-display-inline">$2,000 for photovoltaic property described in subsection (c)(2), and</text></clause>
<clause id="H06543A1023E04E36AD062762DC101040"><enum>(iii)</enum><text>$500 for each 0.5 kilowatt of capacity of property described in subsection (c)(3).</text></clause></subparagraph>
<subparagraph id="HEABC2EBFD57E466DBA0617A0AEA0E490" display-inline="no-display-inline"><enum>(B)</enum><header>Prior expenditures by taxpayer on same residence taken into account</header><text>In determining the amount of the credit allowed to a taxpayer with respect to any dwelling unit under this section, the dollar amounts under clauses (i) and (ii) of subparagraph (A) with respect to each type of property described in such clauses shall be reduced by the credit allowed to the taxpayer under this section with respect to such type of property for all preceding taxable years with respect to such dwelling unit.</text></subparagraph></paragraph>
<paragraph id="HF4B9FDC732C342439021263DB094F658"><enum>(2)</enum><header>Property standards</header><text display-inline="yes-display-inline">No credit shall be allowed under this section for an item of property unless—</text>
<subparagraph id="HEAD6D2AB5B1A42C4B1FC1F2EAE17542"><enum>(A)</enum><text>the original use of such property commences with the taxpayer,</text></subparagraph>
<subparagraph id="H29898F2FA0B5430A8538AC8B49988DE6"><enum>(B)</enum><text display-inline="yes-display-inline">such property can be reasonably expected to remain in use for at least 5 years,</text></subparagraph>
<subparagraph id="HDD481F71FA1D4218A4008B17C93C04EA"><enum>(C)</enum><text>such property is installed on or in connection with a dwelling unit located in the United States and used as a residence by the taxpayer,</text></subparagraph>
<subparagraph id="H8B822492380C4A01BC9FFEE5C13C8C3"><enum>(D)</enum><text>in the case of solar water heating property, such property is certified for performance by the non-profit Solar Rating and Certification Corporation or a comparable entity endorsed by the government of the State in which such property is installed, and</text></subparagraph>
<subparagraph id="H2B252E8B27654DD5A428F04D1F9BDD11" display-inline="no-display-inline"><enum>(E)</enum><text>in the case of fuel cell property, such property meets the performance and quality standards (if any) which have been prescribed by the Secretary by regulations (after consultation with the Secretary of Energy).</text></subparagraph></paragraph></subsection>
<subsection id="H7FD8C79AF5444AFD8FEF21D04EA4A96"><enum>(c)</enum><header>Definitions</header><text>For purposes of this section—</text>
<paragraph id="H5DD62C0FF8454DF18357A95B8BFCAB44"><enum>(1)</enum><header>Qualified solar water heating property expenditure</header><text>The term <term>qualified solar water heating property expenditure</term> means an expenditure for property which uses solar energy to heat water for use in a dwelling unit.</text></paragraph>
<paragraph id="H81DE6C02073743DBB843CC16CC7D008B"><enum>(2)</enum><header>Qualified photovoltaic property expenditure</header><text>The term <term>qualified photovoltaic property expenditure</term> means an expenditure for property which uses solar energy to generate electricity for use in a dwelling unit and which is not described in paragraph (1).</text></paragraph>
<paragraph id="H522999248042488300DD5FF4AFD998E6"><enum>(3)</enum><header>Qualified fuel cell property expenditure</header><text>The term <term>qualified fuel cell property expenditure</term> means an expenditure for any qualified fuel cell property (as defined in section 48(b)(1)).</text></paragraph></subsection>
<subsection id="H42F5944CFD554E8A9ED3D7B07C7EAE2"><enum>(d)</enum><header>Special rules</header><text>For purposes of this section—</text>
<paragraph id="HC40D831EF76F42C5BD1015FC43497F9F"><enum>(1)</enum><header>Solar panels</header><text>No expenditure relating to a solar panel or other property installed as a roof (or portion thereof) shall fail to be treated as property described in paragraph (1) or (2) of subsection (c) solely because it constitutes a structural component of the structure on which it is installed.</text></paragraph>
<paragraph id="HE3E8BBEBC4384E61A1EFF069B39F10B5"><enum>(2)</enum><header>Swimming pools, etc., used as storage medium</header><text>Expenditures which are properly allocable to a swimming pool, hot tub, or any other energy storage medium which has a function other than the function of such storage shall not be taken into account for purposes of this section.</text></paragraph>
<paragraph id="H518597FB8B334CA7AC00CBB980B8AD45"><enum>(3)</enum><header>Dollar amounts in case of joint occupancy</header><text>In the case of any dwelling unit which is jointly occupied and used during any calendar year as a residence by 2 or more individuals, the following rules shall apply:</text>
<subparagraph id="H5F578C7FCD104EA888D52128799428E3"><enum>(A)</enum><text>The amount of the credit allowable under subsection (a) by reason of expenditures made during such calendar year by any of such individuals with respect to such dwelling unit shall be determined by treating all of such individuals as 1 taxpayer whose taxable year is such calendar year.</text></subparagraph>
<subparagraph id="HA1EF0E5228D9408D8FCEB1BF6468FECB"><enum>(B)</enum><text>There shall be allowable, with respect to such expenditures to each of such individuals, a credit under subsection (a) for the taxable year in which such calendar year ends in an amount which bears the same ratio to the amount determined under subparagraph (A) as the amount of such expenditures made by such individual during such calendar year bears to the aggregate of such expenditures made by all of such individuals during such calendar year.</text></subparagraph>
<subparagraph id="HD82A805903AD4048B971AC8F6B9E6753"><enum>(C)</enum><text>Subparagraphs (A) and (B) shall be applied separately with respect to expenditures described in paragraphs (1), (2), and (3) of subsection (c).</text></subparagraph></paragraph>
<paragraph id="H913BCE40381F4AD09F554DCA9E88E98D"><enum>(4)</enum><header>Tenant-stockholder in cooperative housing corporation</header><text>In the case of an individual who is a tenant-stockholder (as defined in section 216) in a cooperative housing corporation (as defined in such section), such individual shall be treated as having made the individual’s tenant-stockholder’s proportionate share (as defined in section 216(b)(3)) of any expenditures of such corporation.</text></paragraph>
<paragraph id="H482C8C45287C41F59132C3964348A72"><enum>(5)</enum><header>Condominiums</header>
<subparagraph id="HE922A6F383454AC29F8D1483C0CF2E6D"><enum>(A)</enum><header>In general</header><text>In the case of an individual who is a member of a condominium management association with respect to a condominium which the individual owns, such individual shall be treated as having made the individual’s proportionate share of any expenditures of such association.</text></subparagraph>
<subparagraph id="H4B4E566C5546486E8971A773DB47CFD5"><enum>(B)</enum><header>Condominium management association</header><text>For purposes of this paragraph, the term <term>condominium management association</term> means an organization which meets the requirements of paragraph (1) of section 528(c) (other than subparagraph (E) thereof) with respect to a condominium project substantially all of the units of which are used as residences.</text></subparagraph></paragraph>
<paragraph id="HBD3A72DBBF464BDEACED8CE655180478"><enum>(6)</enum><header>Allocation in certain cases</header><text>If less than 80 percent of the use of an item is for nonbusiness purposes, only that portion of the expenditures for such item which is properly allocable to use for nonbusiness purposes shall be taken into account.</text></paragraph>
<paragraph id="HDAE95FA101444A1A9486BAE1E8B38BDD"><enum>(7)</enum><header>When expenditure made; amount of expenditure</header>
<subparagraph id="H1B151D60C7674008A5F369271D1700A"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), an expenditure with respect to an item shall be treated as made when the original installation of the item is completed.</text></subparagraph>
<subparagraph id="H6C39ED14D80C45EB982939660800B59E"><enum>(B)</enum><header>Expenditures part of building construction</header><text>In the case of an expenditure in connection with the construction or reconstruction of a structure, such expenditure shall be treated as made when the original use of the constructed or reconstructed structure by the taxpayer begins.</text></subparagraph>
<subparagraph id="H6A736C019F68452FB03C314B697248E4"><enum>(C)</enum><header>Amount</header><text>The amount of any expenditure shall be the cost thereof.</text></subparagraph></paragraph>
<paragraph id="H74DD82555511404DAC48CB10827864E4"><enum>(8)</enum><header>Property financed by subsidized energy financing</header><text>For purposes of determining the amount of expenditures made by any individual with respect to any dwelling unit, there shall not be taken into account expenditures which are made from subsidized energy financing (as defined in section 48(a)(4)(C)).</text></paragraph></subsection>
<subsection id="HF34658129DD0419EBD4FF529C5B1C8CF"><enum>(e)</enum><header>Basis adjustments</header><text>For purposes of this subtitle, if a credit is allowed under this section for any expenditure with respect to any property, the increase in the basis of such property which would (but for this subsection) result from such expenditure shall be reduced by the amount of the credit so allowed.</text></subsection>
<subsection id="H0BDFF333C9174E5BBAB505C7F6EFCFA7"><enum>(f)</enum><header>Termination</header><text>The credit allowed under this section shall not apply to taxable years beginning after December 31, 2007.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H41BFFFCED3FE4828BBF122A12E1D00EE"><enum>(b)</enum><header>Conforming amendments</header>
<paragraph id="HE1411814EF8E4F11A8F843F6686C30DC"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/1016">Section 1016(a)</external-xref> is amended by striking <quote>and</quote> at the end of paragraph (30), by striking the period at the end of paragraph (31) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph:</text>
<quoted-block id="H724373BCE18741D49BC3002571CE2227">
<paragraph id="H6492514827C04033A15C284FA0A47163"><enum>(32)</enum><text>to the extent provided in section 25C(e), in the case of amounts with respect to which a credit has been allowed under section 25C.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="H69A7C8FB07BD44FDB68DFB145BA50084"><enum>(2)</enum><text>The table of sections for subpart A of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after the item relating to section 25B the following new item:</text>
<quoted-block style="OLC" id="HF22115124E4340BAB7E619D721F7DDF" display-inline="no-display-inline">
<toc container-level="quoted-block-container" quoted-block="no-quoted-block" lowest-level="section" idref="H4A584F31E3794120B4616E6060358DCB" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded">
<toc-entry idref="H779B3BD0493246A8A54968862452B289" level="section">Sec. 25C. Residential energy efficient property</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H7D4E4665DA254E6AB9E71D6947362889"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to expenditures made after the date of the enactment of this Act.</text></subsection></section>
<section id="H299D6110389444E096DA36C31BF42FB5" display-inline="no-display-inline" section-type="subsequent-section"><enum>202.</enum><header>Credit for business installation of qualified fuel cells</header>
<subsection id="H1445497CDAED45369CABD87A2ADA8BE"><enum>(a)</enum><header>In general</header><text>Section 48(a)(3)(A) (defining energy property) is amended by striking <quote>or</quote> at the end of clause (i), by adding <quote>or</quote> at the end of clause (ii), and by inserting after clause (ii) the following new clause:</text>
<quoted-block id="H3A66BF087E8046D6B8BC33DDEC007EF3">
<clause id="H3ACB94F844EE44B2BAD12D5900227F5E"><enum>(iii)</enum><text>qualified fuel cell property,</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H249C5A1123F24C39B0A53D2EC7634F10"><enum>(b)</enum><header>Energy percentage</header><text>Subparagraph (A) of section 48(a)(2) (relating to energy percentage) is amended to read as follows:</text>
<quoted-block id="HFD3061AAD9F24BD590286FFDBAFF0010">
<subparagraph id="H708C286A5E9C4ADAAC2B1B0084B9CF98"><enum>(A)</enum><header>In general</header><text>The energy percentage is—</text>
<clause id="HA892EE23A46A4ED2B589BDFC3701E9CB"><enum>(i)</enum><text>in the case of qualified fuel cell property, 15 percent, and</text></clause>
<clause id="H7156C678060B444EAD8130C392402C1C"><enum>(ii)</enum><text>in the case of any other energy property, 10 percent.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H6780F5638B1446B8A1AC23F1FBEC60"><enum>(c)</enum><header>Qualified fuel cell property</header><text display-inline="yes-display-inline">Section 48 (relating to energy credit) is amended—</text>
<paragraph id="H4990327D2B47454D93811BB4F10037A3"><enum>(1)</enum><text>by redesignating subsection (b) as paragraph (5) of subsection (a),</text></paragraph>
<paragraph id="H37AF1B55859945B7B8A7D652127F0635"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>subsection (a)</quote> in paragraph (5) of subsection (a), as redesignated by paragraph (1), and inserting <quote>this subsection</quote>, and </text></paragraph>
<paragraph id="H2F9C090CD25F431DB4B400B944D84466"><enum>(3)</enum><text>by adding at the end the following new subsection:</text>
<quoted-block id="HEE9920B1B1E34EB18EDC94A2AC4534B6">
<subsection id="H1BB1AA8A064243468700A3D0007B00EF"><enum>(b)</enum><header>Qualified fuel cell property</header><text>For purposes of subsection (a)(3)(A)(iii)—</text>
<paragraph id="HC0C52FCE5E7C42D6BCD1B50D9C5C360"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>qualified fuel cell property</term> means a fuel cell power plant which—</text>
<subparagraph id="H2F12C8AC158C4DB2957305CF8A54D1C"><enum>(A)</enum><text>generates at least 0.5 kilowatt of electricity using an electrochemical process, and</text></subparagraph>
<subparagraph id="H391DBE1CC9334382A66F84263C7F48B7"><enum>(B)</enum><text>has an electricity-only generation efficiency greater than 30 percent.</text></subparagraph></paragraph>
<paragraph id="H9C7969FFB8F440560078C5BF175993CE"><enum>(2)</enum><header>Limitation</header><text>The energy credit with respect to any qualified fuel cell property shall not exceed an amount equal to $500 for each 0.5 kilowatt of capacity of such property.</text></paragraph>
<paragraph id="HC3FEEA1A96724B94AFE26B999DD1A181"><enum>(3)</enum><header>Fuel cell power plant</header><text>The term <term>fuel cell power plant</term> means an integrated system, comprised of a fuel cell stack assembly and associated balance of plant components, which converts a fuel into electricity using electrochemical means.</text></paragraph>
<paragraph id="HD9D1EFB2E3D44914B7269F63157DA0F4"><enum>(4)</enum><header>Termination</header><text>The term <term>qualified fuel cell property</term> shall not include any property placed in service after December 31, 2007.</text></paragraph></subsection><after-quoted-block>. </after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="HE9338103ACDC4A6DA1B862FF82642232"><enum>(d)</enum><header>Conforming amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(1)</external-xref> is amended by inserting <quote>except as provided in subsection (b)(2),</quote> before <quote>the energy</quote> the first place it appears.</text></subsection>
<subsection id="HE31808C9C82146198FA73F135007BCA1"><enum>(e)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after April 11, 2005, under rules similar to the rules of <external-xref legal-doc="usc" parsable-cite="usc/26/48">section 48(m)</external-xref> 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).</text></subsection></section>
<section id="H3D360B6145894E6E00E7AB9B105C4B4" display-inline="no-display-inline" section-type="subsequent-section"><enum>203.</enum><header>Reduced motor fuel excise tax on certain mixtures of diesel fuel</header>
<subsection id="HACB7EC240D11493CA61E97A08018D83F"><enum>(a)</enum><header>In general</header><text>Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/4081">section 4081(a)</external-xref> is amended by adding at the end the following:</text>
<quoted-block id="H12A7CEA7D9104D2C879C9F8435AFA8F9">
<subparagraph id="HDAC94895FBAC4E46A6AFD16CB3F36D8F"><enum>(D)</enum><header>Diesel-water fuel emulsion</header><text>In the case of diesel-water fuel emulsion at least 16.9 percent of which is water and with respect to which the emulsion additive is registered by a United States manufacturer with the Environmental Protection Agency pursuant to section 211 of the <act-name parsable-cite="CAA">Clean Air Act</act-name> (as in effect on March 31, 2003), subparagraph (A)(iii) shall be applied by substituting <quote>19.7 cents</quote> for <quote>24.3 cents</quote>.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HE2167F11EFED4DA4BDD936CEA2C04661"><enum>(b)</enum><header>Special rules for diesel-water fuel emulsions</header>
<paragraph id="H8A46E1B11FB94D60BED52D9000A73B26"><enum>(1)</enum><header>Refunds for tax-paid purchases</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6427">Section 6427</external-xref> is amended by redesignating subsections (m) through (p) as subsections (n) through (q), respectively, and by inserting after subsection (l) the following new subsection:</text>
<quoted-block id="H9C33E5E4E3264C3F97C1882696046444">
<subsection id="H90504705FBA7424A00D986DFAAF1E787"><enum>(m)</enum><header>Diesel fuel used to produce emulsion</header>
<paragraph id="HC043E9604C524E4E93BCC899C4DFBB41"><enum>(1)</enum><header>In general</header><text>Except as provided in subsection (k), if any diesel fuel on which tax was imposed by section 4081 at the regular tax rate is used by any person in producing an emulsion described in section 4081(a)(2)(D) which is sold or used in such person’s trade or business, the Secretary shall pay (without interest) to such person an amount equal to the excess of the regular tax rate over the incentive tax rate with respect to such fuel.</text></paragraph>
<paragraph id="H21BCEF6702784C9A88C9946857A5539E"><enum>(2)</enum><header>Definitions</header><text>For purposes of paragraph (1)—</text>
<subparagraph id="H21322F882F71464F931045F8B8DB8D6E"><enum>(A)</enum><header>Regular tax rate</header><text>The term <term>regular tax rate</term> means the aggregate rate of tax imposed by section 4081 determined without regard to section 4081(a)(2)(D).</text></subparagraph>
<subparagraph id="H12C7E5B872E2476D9C9550B4D453B5BB"><enum>(B)</enum><header>Incentive tax rate</header><text>The term <term>incentive tax rate</term> means the aggregate rate of tax imposed by section 4081 determined with regard to section 4081(a)(2)(D).</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="H06F8A165D39C43DAB440F1A517652DCD"><enum>(2)</enum><header>Later separation of fuel</header><text>Section 4081 (relating to imposition of tax) is amended by inserting after subsection (b) the following new subsection:</text>
<quoted-block id="H5D961FD4E40743B787009BC9DBE1884D">
<subsection id="H68FD75A4D50642F8AC3BCF1C49E92391"><enum>(c)</enum><header>Later separation of fuel from diesel-water fuel emulsion</header><text>If any person separates the taxable fuel from a diesel-water fuel emulsion on which tax was imposed under subsection (a) at a rate determined under subsection (a)(2)(D) (or with respect to which a credit or payment was allowed or made by reason of section 6427), such person shall be treated as the refiner of such taxable fuel. The amount of tax imposed on any removal of such fuel by such person shall be reduced by the amount of tax imposed (and not credited or refunded) on any prior removal or entry of such fuel.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H3B8EB9EA678F4514BCB89652A85B056E"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall take effect on January 1, 2006.</text></subsection></section>
<section id="HD75A430667254B53B600FFD3DBF34DC4" display-inline="no-display-inline" section-type="subsequent-section"><enum>204.</enum><header>Amortization of delay rental payments</header>
<subsection id="H844359E8EEF9465AAE42303CF52D7137"><enum>(a)</enum><header>In general</header><text>Section 167 (relating to depreciation) is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection:</text>
<quoted-block id="H461B593D0C9847E18B822D95A7F0CB37">
<subsection id="HD89339291E434DCEB607BCCFAFC9BF9"><enum>(h)</enum><header>Amortization of delay rental payments for domestic oil and gas wells</header>
<paragraph id="H35A7C2BC9CE1446DA575000413CF4B7"><enum>(1)</enum><header>In general</header><text>Any delay rental payment paid or incurred in connection with the development of oil or gas wells within the United States (as defined in section 638) shall be allowed as a deduction ratably over the 24-month period beginning on the date that such payment was paid or incurred.</text></paragraph>
<paragraph id="H64CC004A254B4EE000EB27DAA44D573"><enum>(2)</enum><header>Half-year convention</header><text>For purposes of paragraph (1), any payment paid or incurred during the taxable year shall be treated as paid or incurred on the mid-point of such taxable year.</text></paragraph>
<paragraph id="H8505084676E54431B65BAD468EDA58EC"><enum>(3)</enum><header>Exclusive method</header><text>Except as provided in this subsection, no depreciation or amortization deduction shall be allowed with respect to such payments.</text></paragraph>
<paragraph id="H3339E92B907442EE898EDB57B92FFC1"><enum>(4)</enum><header>Treatment upon abandonment</header><text>If any property to which a delay rental payment relates is retired or abandoned during the 24-month period described in paragraph (1), no deduction shall be allowed on account of such retirement or abandonment and the amortization deduction under this subsection shall continue with respect to such payment.</text></paragraph>
<paragraph id="H1435D75DE02646C7941E85F71D1B02DD"><enum>(5)</enum><header>Delay rental payments</header><text>For purposes of this subsection, the term <term>delay rental payment</term> means an amount paid for the privilege of deferring development of an oil or gas well under an oil or gas lease.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H4F9BB65EF8B94DE6BD75A45DC7ACD700"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after the date of the enactment of this Act.</text></subsection></section>
<section id="H2A4A22305AC4425FB4D80000EA532260" section-type="subsequent-section" display-inline="no-display-inline"><enum>205.</enum><header>Amortization of geological and geophysical expenditures</header>
<subsection id="H718812A299E44B999E7E02422C23A85C"><enum>(a)</enum><header>In general</header><text>Section 167 (relating to depreciation), as amended by section 204 of this Act, is amended by redesignating subsection (i) as subsection (j) and by inserting after subsection (h) the following new subsection:</text>
<quoted-block id="H3433468E98CA4951961CADB2CC4BC61">
<subsection id="H2531525156084F0CB75CAEA866BDF7F6"><enum>(i)</enum><header>Amortization of geological and geophysical expenditures</header>
<paragraph id="H0FB97C5A1AB14CB3BC85E2A0BABEA428"><enum>(1)</enum><header>In general</header><text>Any geological and geophysical expenses paid or incurred in connection with the exploration for, or development of, oil or gas within the United States (as defined in section 638) shall be allowed as a deduction ratably over the 24-month period beginning on the date that such expense was paid or incurred.</text></paragraph>
<paragraph id="H459B08A451A041F2A48064CD75BB2C4E"><enum>(2)</enum><header>Special rules</header><text>For purposes of this subsection, rules similar to the rules of paragraphs (2), (3), and (4) of subsection (h) shall apply.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H7643707DBF2A400AB1A27797B3DABADC"><enum>(b)</enum><header>Conforming amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/263A">Section 263A(c)(3)</external-xref> is amended by inserting <quote>167(h), 167(i),</quote> after <quote>under section</quote>.</text></subsection>
<subsection id="HCBE1E8430E314ABAB3BB238505C7E183"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after the date of the enactment of this Act.</text></subsection></section>
<section id="H5A71EC9AB72C486795F2777479B8004B" section-type="subsequent-section" display-inline="no-display-inline"><enum>206.</enum><header>Advanced lean burn technology motor vehicle credit</header>
<subsection id="HA5935106EECD4EE8B29DC3F34F9EAF7"><enum>(a)</enum><header>In general</header><text>Subpart B of part IV of subchapter A of chapter 1 (relating to other credits) is amended by adding at the end the following:</text>
<quoted-block id="H78F84E3B2AAB4D509386003B48CA1690">
<section id="H5B1CC7ABCD924B91B1F5F79870CA7C9E"><enum>30B.</enum><header>Advanced lean burn technology motor vehicle credit</header>
<subsection id="H23BE88EFC4DB486980664CD762C2D873"><enum>(a)</enum><header>Allowance of credit</header><text display-inline="yes-display-inline">There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the credit amounts determined under subsection (b) with respect to each qualified advanced lean burn technology motor vehicle placed in service by the taxpayer during the taxable year.</text></subsection>
<subsection id="HAC62F0270DF640F185C332D2BB095817"><enum>(b)</enum><header>Credit amount</header><text>For purposes of subsection (a)—</text>
<paragraph id="H7D1E534FF3004A3287958CBFC9AD66FE"><enum>(1)</enum><header>Fuel efficiency</header><text display-inline="yes-display-inline">The credit amount with respect to any vehicle shall be—</text>
<subparagraph id="HF138BEAD1620441788DDBDB078FA859"><enum>(A)</enum><text>$500, if the city fuel economy of such vehicle is at least 125 percent but less than 150 percent of the 2000 model year city fuel economy for a vehicle in the same inertia weight class,</text></subparagraph>
<subparagraph id="HA01C497919F14720000072D7B4FB2BC3"><enum>(B)</enum><text display-inline="yes-display-inline">$1,000, if the city fuel economy of such vehicle is at least 150 percent but less than 175 percent of the 2000 model year city fuel economy for a vehicle in the same inertia weight class,</text></subparagraph>
<subparagraph id="H0C81E0DE5C144C809D571E042FE4C496"><enum>(C)</enum><text display-inline="yes-display-inline">$1,500, if the city fuel economy of such vehicle is at least 175 percent but less than 200 percent of the 2000 model year city fuel economy for a vehicle in the same inertia weight class,</text></subparagraph>
<subparagraph id="HF3ECB25A30B04940B7F23DEF42445398"><enum>(D)</enum><text display-inline="yes-display-inline">$2,000, if the city fuel economy of such vehicle is at least 200 percent but less than 225 percent of the 2000 model year city fuel economy for a vehicle in the same inertia weight class,</text></subparagraph>
<subparagraph id="HA45C46AE9C8C40089CD1EF31780653F0"><enum>(E)</enum><text display-inline="yes-display-inline">$2,500, if the city fuel economy of such vehicle is at least 225 percent but less than 250 percent of the 2000 model year city fuel economy for a vehicle in the same inertia weight class, and</text></subparagraph>
<subparagraph id="HCE3D6F53AE0C493D9F3C44AEC8321DC1"><enum>(F)</enum><text display-inline="yes-display-inline">$3,000, if the city fuel economy of such vehicle is at least 250 percent of the 2000 model year city fuel economy for a vehicle in the same inertia weight class.</text></subparagraph></paragraph>
<paragraph id="HFA4C7C2CBB4045D78555E6D2CF00DF0"><enum>(2)</enum><header>Conservation</header><text>The credit amount determined under paragraph (1) with respect to any vehicle shall be increased by—</text>
<subparagraph id="H01AA4403AF1C45B6B7AFAD596B8F3F80"><enum>(A)</enum><text display-inline="yes-display-inline">$250, if the lifetime fuel savings of such vehicle is at least 1,500 gallons of motor fuel but less than 2,500 gallons of motor fuel, and</text></subparagraph>
<subparagraph id="HC110609418C64F42AC88A4B95DAAC727"><enum>(B)</enum><text display-inline="yes-display-inline">$500, if the lifetime fuel savings of such vehicle is at least 2,500 gallons of motor fuel.</text></subparagraph></paragraph></subsection>
<subsection id="H8B0736924147412E806471372B200985" display-inline="no-display-inline"><enum>(c)</enum><header>Limitation based on amount of tax</header><text>The credit allowed under subsection (a) for the taxable year shall not exceed the excess of—</text>
<paragraph id="H5E6AE655AF5B4890B54FBA60BF214C54"><enum>(1)</enum><text>the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over</text></paragraph>
<paragraph id="HFB34D58EAA9D4502972F606FFBE6C064"><enum>(2)</enum><text>the sum of the credits allowable under subpart A and sections 27 and 30A for the taxable year.</text></paragraph></subsection>
<subsection id="H3568BE2DF9D8441599026C318D35272B"><enum>(d)</enum><header>Definitions</header><text>For purposes of this section—</text>
<paragraph id="H892DBBD66F194566A2B29CE6088B7ED7"><enum>(1)</enum><header>Qualified advanced lean burn technology motor vehicle</header><text>The term <term>qualified advanced lean burn technology motor vehicle</term> means a motor vehicle—</text>
<subparagraph id="H16A4E97706F9423794E16217F4A167F5"><enum>(A)</enum><text>the original use of which commences with the taxpayer,</text></subparagraph>
<subparagraph id="HDB0D341AD36947C00006119534135925"><enum>(B)</enum><text>powered by an internal combustion engine that—</text>
<clause id="HB3DE85724B5B45048B512759F46B7E2E"><enum>(i)</enum><text>is designed to operate primarily using more air than is necessary for complete combustion of the fuel, and</text></clause>
<clause id="HF73A96814F474BEEA1A06940482ACC2"><enum>(ii)</enum><text>incorporates direct injection, </text></clause></subparagraph>
<subparagraph id="H5AD2F485495F4E07840326F645CB9E45"><enum>(C)</enum><text display-inline="yes-display-inline">that only uses diesel fuel (as defined in section 4083(a)(3)), </text></subparagraph>
<subparagraph id="H1087F2CC5FC24808826871606B6EF7E1"><enum>(D)</enum><text display-inline="yes-display-inline">the city fuel economy of which is at least 125 percent of the 2000 model year city fuel economy for a vehicle in the same inertia weight class, and</text></subparagraph>
<subparagraph id="HC0C70C837BDF49FD9C001D688D5BF0D1"><enum>(E)</enum><text>that has received a certificate that such vehicle meets or exceeds the Bin 8 Tier II emission level established in regulations prescribed by the Administrator of the Environmental Protection Agency under section 202(i) of the <act-name parsable-cite="CAA">Clean Air Act</act-name>.</text></subparagraph></paragraph>
<paragraph id="HA58DE8184B3F47EC862DE83371D21CD0"><enum>(2)</enum><header>Lifetime fuel savings</header><text display-inline="yes-display-inline">The term <term>lifetime fuel savings</term> means, with respect to a qualified advanced lean burn technology motor vehicle, an amount equal to the excess (if any) of—</text>
<subparagraph id="HACBF8C0CACB1445EA6A0ABF5563CC22F"><enum>(A)</enum><text>120,000 divided by the 2000 model year city fuel economy for the vehicle inertia weight class, over</text></subparagraph>
<subparagraph id="HCC6F6B8916D1422F814C61B3B314C4D5"><enum>(B)</enum><text>120,000 divided by the city fuel economy for such vehicle.</text></subparagraph></paragraph>
<paragraph id="H4E1C85E8FFFD4EF5A4EC9C245736FE06"><enum>(3)</enum><header>2000 model year city fuel economy</header><text>The 2000 model year city fuel economy with respect to a vehicle shall be determined in accordance with the following tables:</text>
<subparagraph id="H8AFCA34FEF1B42568FE3805617FEF496"><enum>(A)</enum><text>In the case of a passenger automobile:</text>
<table table-type="subformat" line-rules="no-gen" blank-lines-before="1">
<tgroup cols="2"><thead>
<row><entry colname="I45">If vehicle inertia weight class is:</entry><entry colname="I46">The 2000 model year city fuel economy is:</entry></row></thead>
<tbody>
<row><entry colname="I51">1,500 or 1,750 lbs</entry><entry colname="I52">43.7 mpg </entry></row>
<row><entry colname="I51">2,000 lbs</entry><entry colname="I52">38.3 mpg </entry></row>
<row><entry colname="I51">2,250 lbs</entry><entry colname="I52">34.1 mpg </entry></row>
<row><entry colname="I51">2,500 lbs</entry><entry colname="I52">30.7 mpg </entry></row>
<row><entry colname="I51">2,750 lbs</entry><entry colname="I52">27.9 mpg </entry></row>
<row><entry colname="I51">3,000 lbs</entry><entry colname="I52">25.6 mpg </entry></row>
<row><entry colname="I51">3,500 lbs</entry><entry colname="I52">22.0 mpg </entry></row>
<row><entry colname="I51">4,000 lbs</entry><entry colname="I52">19.3 mpg </entry></row>
<row><entry colname="I51">4,500 lbs</entry><entry colname="I52">17.2 mpg </entry></row>
<row><entry colname="I51">5,000 lbs</entry><entry colname="I52">15.5 mpg </entry></row>
<row><entry colname="I51">5,500 lbs</entry><entry colname="I52">14.1 mpg </entry></row>
<row><entry colname="I51">6,000 lbs</entry><entry colname="I52">12.9 mpg </entry></row>
<row><entry colname="I51">6,500 lbs</entry><entry colname="I52">11.9 mpg </entry></row>
<row><entry colname="I51">7,000 or 8,500 lbs</entry><entry colname="I52">11.1 mpg.</entry></row></tbody></tgroup></table></subparagraph>
<subparagraph id="H1EE77C0C72F7441600D408CE691DE032"><enum>(B)</enum><text>In the case of a light truck:</text>
<table table-type="subformat" line-rules="no-gen" blank-lines-before="1">
<tgroup cols="2"><thead>
<row><entry colname="I45">If vehicle inertia weight class is:</entry><entry colname="I46">The 2000 model year city fuel economy is:</entry></row></thead>
<tbody>
<row><entry colname="I51">1,500 or 1,750 lbs</entry><entry colname="I52">37.6 mpg </entry></row>
<row><entry colname="I51">2,000 lbs</entry><entry colname="I52">33.7 mpg </entry></row>
<row><entry colname="I51">2,250 lbs</entry><entry colname="I52">30.6 mpg </entry></row>
<row><entry colname="I51">2,500 lbs</entry><entry colname="I52">28.0 mpg </entry></row>
<row><entry colname="I51">2,750 lbs</entry><entry colname="I52">25.9 mpg </entry></row>
<row><entry colname="I51">3,000 lbs</entry><entry colname="I52">24.1 mpg </entry></row>
<row><entry colname="I51">3,500 lbs</entry><entry colname="I52">21.3 mpg </entry></row>
<row><entry colname="I51">4,000 lbs</entry><entry colname="I52">19.0 mpg </entry></row>
<row><entry colname="I51">4,500 lbs</entry><entry colname="I52">17.3 mpg </entry></row>
<row><entry colname="I51">5,000 lbs</entry><entry colname="I52">15.8 mpg </entry></row>
<row><entry colname="I51">5,500 lbs</entry><entry colname="I52">14.6 mpg </entry></row>
<row><entry colname="I51">6,000 lbs</entry><entry colname="I52">13.6 mpg </entry></row>
<row><entry colname="I51">6,500 lbs</entry><entry colname="I52">12.8 mpg </entry></row>
<row><entry colname="I51">7,000 or 8,500 lbs</entry><entry colname="I52">12.0 mpg.</entry></row></tbody></tgroup></table></subparagraph></paragraph>
<paragraph id="H7202BFD240754C9FB2DBC114BB7FB347"><enum>(4)</enum><header>Motor vehicle</header><text>The term <term>motor vehicle</term> has the meaning given such term by section 30(c)(2).</text></paragraph>
<paragraph id="HC72ACDDA88D04F1594034562FE128E4B"><enum>(5)</enum><header>City fuel economy</header><text display-inline="yes-display-inline">City fuel economy with respect to any vehicle shall be measured in accordance with testing and calculation procedures established by the Administrator of the Environmental Protection Agency by regulations in effect on April 11, 2005. </text></paragraph>
<paragraph id="H92F70FA1A4924C38A1AA7DF5F5F300AC"><enum>(6)</enum><header>Other terms</header><text>The terms <term>passenger automobile</term>, <term>light truck</term>, and <term>manufacturer</term> shall have the meanings given such terms in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7521">42 U.S.C. 7521 et seq.</external-xref>).</text></paragraph></subsection>
<subsection id="HDE9CDC2ACBE34B6181DF39F0B9F22C54"><enum>(e)</enum><header>Carryforward allowed</header>
<paragraph id="HB758E44670D541BCBA186EB2EF3FB6A4"><enum>(1)</enum><header>In general</header><text>If the credit amount allowable under subsection (a) for a taxable year exceeds the amount of the limitation under subsection (c) for such taxable year (referred to as the <quote>unused credit year</quote> in this paragraph), such excess shall be allowed as a credit carryforward for each of the 20 taxable years following the unused credit year.</text></paragraph>
<paragraph id="H28921D96D0164E018200C6DD5C00D06B"><enum>(2)</enum><header>Rules</header><text>Rules similar to the rules of section 39 shall apply with respect to the credit carryforward under paragraph (1).</text></paragraph></subsection>
<subsection id="H3E2D3DE752EB4D3AAAFAF7EFB53DEB1"><enum>(f)</enum><header>Special rules</header><text>For purposes of this section—</text>
<paragraph id="H1278452E7D8E48129550C3D138F7739F"><enum>(1)</enum><header>Reduction in basis</header><text display-inline="yes-display-inline">The basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit (determined without regard to subsection (c)). </text></paragraph>
<paragraph id="H2BC2F553997A4E5CBC0631EDB5DDAFD7"><enum>(2)</enum><header>No double benefit</header><text display-inline="yes-display-inline">The amount of any deduction or credit allowable under this chapter (other than the credit allowable under subsection (a)), with respect to any vehicle shall be reduced by the amount of credit allowed under subsection (a) (determined without regard to subsection (c)) for such vehicle for the taxable year.</text></paragraph>
<paragraph id="HCA07F220EC30449E94E18B93B1FF1419"><enum>(3)</enum><header>Property used by tax-exempt entity</header><text display-inline="yes-display-inline">In the case of a vehicle whose use is described in paragraph (3) or (4) of section 50(b) and which is not subject to a lease, the person who sold such vehicle to the person or entity using such vehicle shall be treated as the taxpayer that placed such vehicle in service, but only if such person clearly discloses to such person or entity in a document the amount of any credit allowable under subsection (a) with respect to such vehicle (determined without regard to subsection (c)).</text></paragraph>
<paragraph id="H711660B296EA4657B24FBA9ECDB520E5"><enum>(4)</enum><header>Property used outside United States, etc., not qualified</header><text>No credit shall be allowable under subsection (a) with respect to any property referred to in section 50(b)(1) or with respect to the portion of the cost of any property taken into account under section 179.</text></paragraph>
<paragraph id="HB6D381038A954258970315871D09BDE0"><enum>(5)</enum><header>Election not to take credit</header><text>No credit shall be allowed under subsection (a) for any vehicle if the taxpayer elects not to have this section apply to such vehicle.</text></paragraph>
<paragraph id="HC18BD52C4B4E46C79E5FBF33F8CD008D"><enum>(6)</enum><header>Interaction with air quality and motor vehicle safety standards</header><text>Unless otherwise provided in this section, a motor vehicle shall not be considered eligible for a credit under this section unless such vehicle is in compliance with—</text>
<subparagraph id="H2E9DC2D07F114E1496D7BE2958BD076F"><enum>(A)</enum><text>the applicable provisions of the <act-name parsable-cite="CAA">Clean Air Act</act-name> for the applicable make and model year of the vehicle (or applicable air quality provisions of State law in the case of a State which has adopted such provision under a waiver under section 209(b) of the <act-name parsable-cite="CAA">Clean Air Act</act-name>), and</text></subparagraph>
<subparagraph id="HB37CD981834942EEB0FF97D321D235A8"><enum>(B)</enum><text>the motor vehicle safety provisions of sections 30101 through 30169 of title 49, United States Code.</text></subparagraph></paragraph></subsection>
<subsection id="HD03988D606874CC4977C4CF420A2ABAA"><enum>(g)</enum><header>Regulations</header>
<paragraph id="H939BB29C31994E43872E7C5223AF9E9C"><enum>(1)</enum><header>In general</header><text>The Secretary shall promulgate such regulations as necessary to carry out this section, including regulations to prevent the avoidance of the purposes of this section through disposal of any motor vehicle or leasing of any motor vehicle for a lease period of less than the economic life of such vehicle.</text></paragraph>
<paragraph id="H543A5DDB81014AE0AF661EC7231100F2"><enum>(2)</enum><header>Determination of motor vehicle eligibility</header><text>The Secretary, in coordination with the Secretary of Transportation and the Administrator of the Environmental Protection Agency, shall prescribe such regulations as necessary to determine whether a motor vehicle meets the requirements to be eligible for a credit under this section.</text></paragraph></subsection>
<subsection id="HD1267121686646AA8FC004C5BC935F3"><enum>(h)</enum><header>Termination</header><text>This section shall not apply to any property placed in service after December 31, 2007.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H72C43687609246EB85CF36E0346461F8"><enum>(b)</enum><header>Conforming amendments</header>
<paragraph id="HEA0349A6294B4BA7B5963D6CDE8EE842"><enum>(1)</enum><text>Section 1016(a), as amended by section 201 of this Act, is amended by striking <quote>and</quote> at the end of paragraph (31), by striking the period at the end of paragraph (32) and inserting <quote>, and</quote>, and by adding at the end the following:</text>
<quoted-block id="HD56F725B15C14816A14B4D6DBB2849BA">
<paragraph id="H003A4E5AC52C4FF491C0EA951136DB3"><enum>(33)</enum><text>to the extent provided in section 30B(f)(1).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="HF66DD526C6864E8FBF8DBA2F75B070D4"><enum>(2)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/6501">Section 6501(m)</external-xref> is amended by inserting <quote>30B(f)(6),</quote> after <quote>30(d)(4),</quote>.</text></paragraph>
<paragraph id="HA450371CC7A74B1BBD18F6CE58ECBDC"><enum>(3)</enum><text>The table of sections for subpart B of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after the item relating to section 30A the following:</text>
<quoted-block style="OLC" id="HEF75CCDE3F1A4666BB2C3771F8307C40" display-inline="no-display-inline">
<toc container-level="quoted-block-container" quoted-block="no-quoted-block" lowest-level="section" idref="H78F84E3B2AAB4D509386003B48CA1690" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded">
<toc-entry idref="H5B1CC7ABCD924B91B1F5F79870CA7C9E" level="section">Sec. 30B. Advanced lean burn technology motor vehicle credit</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H1A37E39BBD0245B8BA8C2ECAE877FBA6"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act in taxable years ending after such date.</text></subsection></section>
<section id="H4FC5F8580D7F4031B14D9848BB0496C1" display-inline="no-display-inline" section-type="subsequent-section"><enum>207.</enum><header>Credit for energy efficiency improvements to existing homes</header>
<subsection id="HCDF9B987F59647D08EA7B8868E3B396F"><enum>(a)</enum><header>In general</header><text>Subpart A of part IV of subchapter A of chapter 1 (relating to nonrefundable personal credits), as amended by <external-xref legal-doc="usc" parsable-cite="usc/26/201">section 201,</external-xref> is amended by inserting after section 25C the following new section:</text>
<quoted-block id="HB2BDA369EF0C450A92FE9590C8F9D355">
<section id="H61A4CC7CB94C466E94B919DE88AC7B09"><enum>25D.</enum><header>Energy efficiency improvements to existing homes</header>
<subsection id="H31C1F33B18804D71AAB1A6D1E9BE648B"><enum>(a)</enum><header>Allowance of credit</header><text>In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 20 percent of the amount paid or incurred by the taxpayer for qualified energy efficiency improvements installed during such taxable year.</text></subsection>
<subsection id="H134FE6E87B3B4C56A436109450843B54"><enum>(b)</enum><header>Limitations</header>
<paragraph id="HC61ADB458A754920964CADC75EA6C83E"><enum>(1)</enum><header>Maximum credit</header><text>The credit allowed by this section with respect to a dwelling unit shall not exceed $2,000.</text></paragraph>
<paragraph id="H9280087BCA294C83813E67B7CC896845"><enum>(2)</enum><header>Prior credit amounts for taxpayer on same dwelling taken into account</header><text>If a credit was allowed to the taxpayer under subsection (a) with respect to a dwelling unit in 1 or more prior taxable years, the amount of the credit otherwise allowable for the taxable year with respect to that dwelling unit shall be reduced by the sum of the credits allowed under subsection (a) to the taxpayer with respect to the dwelling unit for all prior taxable years.</text></paragraph></subsection>
<subsection id="HFB7DD27CAB414004B7A482BC292F8B95"><enum>(c)</enum><header>Qualified energy efficiency improvements</header><text>For purposes of this section, the term <term>qualified energy efficiency improvements</term> means any energy efficient building envelope component which meets the prescriptive criteria for such component established by the 2000 International Energy Conservation Code, as such Code (including supplements) is in effect on the date of the enactment of the <short-title>Enhanced Energy Infrastructure and Technology Tax Act of 2005</short-title> (or, in the case of a metal roof with appropriate pigmented coatings which meet the Energy Star program requirements), if—</text>
<paragraph id="H551B6FB2C55647DEBAB35BDF45002BAF"><enum>(1)</enum><text>such component is installed in or on a dwelling unit located in the United States and owned and used by the taxpayer as the taxpayer’s principal residence (within the meaning of section 121), </text></paragraph>
<paragraph id="H2B4B6BA107DF47C500717C4B399F3860"><enum>(2)</enum><text>the original use of such component commences with the taxpayer, and</text></paragraph>
<paragraph id="H4D4386FB2CE846BE9DA26E1200A1B8B"><enum>(3)</enum><text>such component reasonably can be expected to remain in use for at least 5 years.</text></paragraph><continuation-text continuation-text-level="subsection">If the aggregate cost of such components with respect to any dwelling unit exceeds $1,000, such components shall be treated as qualified energy efficiency improvements only if such components are also certified in accordance with subsection (d) as meeting such prescriptive criteria.</continuation-text></subsection>
<subsection id="HBEEA371D7949440D9451092875E5F3A3"><enum>(d)</enum><header>Certification</header><text>The certification described in subsection (c) shall be—</text>
<paragraph id="H7DADBF3DB2AF4723A82093C55300BCC1"><enum>(1)</enum><text>determined on the basis of the technical specifications or applicable ratings (including product labeling requirements) for the measurement of energy efficiency (based upon energy use or building envelope component performance) for the energy efficient building envelope component,</text></paragraph>
<paragraph id="HBA299E231C694E0C84A900ACE2DEFF44"><enum>(2)</enum><text>provided by a local building regulatory authority, a utility, a manufactured home production inspection primary inspection agency (IPIA), or an accredited home energy rating system provider who is accredited by or otherwise authorized to use approved energy performance measurement methods by the Residential Energy Services Network (RESNET), and</text></paragraph>
<paragraph id="H738E71B8AA3D4EE4AAD7E0C339579942"><enum>(3)</enum><text>made in writing in a manner which specifies in readily verifiable fashion the energy efficient building envelope components installed and their respective energy efficiency levels.</text></paragraph></subsection>
<subsection id="H1DAA048DBE76427B985675EA7B761656"><enum>(e)</enum><header>Definitions and special rules</header><text>For purposes of this section—</text>
<paragraph id="H6E5B2AF9E9304EF4982B9E00A1267321"><enum>(1)</enum><header>Building envelope component</header><text>The term <term>building envelope component</term> means—</text>
<subparagraph id="HD4EEFF94DC114D0E9CE92F6F53370080"><enum>(A)</enum><text>any insulation material or system which is specifically and primarily designed to reduce the heat loss or gain of a dwelling unit when installed in or on such dwelling unit,</text></subparagraph>
<subparagraph id="HF82A863162B24E4282EF7500A6E18930"><enum>(B)</enum><text>exterior windows (including skylights),</text></subparagraph>
<subparagraph id="HA367D4140CFD49BDB029181FE4C2146B"><enum>(C)</enum><text>exterior doors, and</text></subparagraph>
<subparagraph id="HE8BF43A7C5FD4DA9A1279B7491CDB455"><enum>(D)</enum><text>any metal roof installed on a dwelling unit, but only if such roof has appropriate pigmented coatings which are specifically and primarily designed to reduce the heat gain of such dwelling unit.</text></subparagraph></paragraph>
<paragraph id="H282E9AB78B7748978B6523BEB9BF6832"><enum>(2)</enum><header>Manufactured homes included</header><text>The term <term>dwelling unit</term> includes a manufactured home which conforms to Federal Manufactured Home Construction and Safety Standards (<external-xref legal-doc="regulation" parsable-cite="cfr/24/3280">section 3280</external-xref> of title 24, Code of Federal Regulations).</text></paragraph>
<paragraph id="H490B5ED1B7164B35B94DE833F374381"><enum>(3)</enum><header>Application of rules</header><text>Rules similar to the rules under paragraphs (3), (4), and (5) of section 25C(d) shall apply.</text></paragraph></subsection>
<subsection id="HA7DCFE30785148F09FE186ABD2825953"><enum>(f)</enum><header>Basis adjustment</header><text>For purposes of this subtitle, if a credit is allowed under this section for any expenditure with respect to any property, the increase in the basis of such property which would (but for this subsection) result from such expenditure shall be reduced by the amount of the credit so allowed.</text></subsection>
<subsection id="HDCE910095FCA4C8CB74299467865122F"><enum>(g)</enum><header>Application of Section</header><text>This section shall apply to qualified energy efficiency improvements installed after the date of the enactment of the <short-title>Enhanced Energy Infrastructure and Technology Tax Act of 2005</short-title>, and before January 1, 2008.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H663BF5C2DC074CAABF4B0063B780E439"><enum>(b)</enum><header>Conforming amendments</header>
<paragraph id="HDBB14D5CA25444BAA1500990EF4F8196"><enum>(1)</enum><text>Subsection (a) of <external-xref legal-doc="usc" parsable-cite="usc/26/1016">section 1016</external-xref>, as amended by section 206 of this Act, is amended by striking <quote>and</quote> at the end of paragraph (32), by striking the period at the end of paragraph (33) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph:</text>
<quoted-block id="H563570AEB91B4A4597B3F8ABB35D34D4">
<paragraph id="H6D52D7C1213E4B70A38711D3918F8C23"><enum>(34)</enum><text>to the extent provided in section 25D(f), in the case of amounts with respect to which a credit has been allowed under section 25D.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="H1CE40811F1E44A60A522C4DFBFFECB19"><enum>(2)</enum><text>The table of sections for subpart A of part IV of subchapter A of chapter 1, as amended by <external-xref legal-doc="usc" parsable-cite="usc/26/201">section 201,</external-xref> is amended by inserting after the item relating to section 25C the following new item:</text>
<quoted-block style="OLC" id="H85C570CCD22D469FBA60C0CB81B68106" display-inline="no-display-inline">
<toc container-level="quoted-block-container" quoted-block="no-quoted-block" lowest-level="section" idref="HB2BDA369EF0C450A92FE9590C8F9D355" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded">
<toc-entry idref="H61A4CC7CB94C466E94B919DE88AC7B09" level="section">Sec. 25D. Energy efficiency improvements to existing homes</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H60F04A7476014EF19EB16046B3E57E4E"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to improvements installed after the date of the enactment of this Act in taxable years ending after such date.</text></subsection></section>
<enum>III</enum><header>Alternative minimum tax relief</header>
<section id="H8668CECD03FD42B4BC513400CFBCFE58" commented="no"><enum>301.</enum><header>New nonrefundable personal credits allowed against regular and minimum taxes</header>
<subsection id="H03F1B37F04A64843BAB53B33B9632F2B" commented="no"><enum>(a)</enum><header>In general</header>
<paragraph id="HF4018034563F468FB91671E01E09B7CF" commented="no"><enum>(1)</enum><header>Section 25C</header><text>Section 25C(b), as added by section 201 of this Act, is amended by adding at the end the following new paragraph:</text>
<quoted-block id="HB9EFF64E0BE04F8E95B256F500442B22">
<paragraph id="HADB7E6DC50EE42198CCC9C7B28E2B874"><enum>(3)</enum><header>Limitation based on amount of tax</header><text>The credit allowed under subsection (a) for the taxable year shall not exceed the excess of—</text>
<subparagraph id="H94F4816DCA59462782252EAC4EED3630"><enum>(A)</enum><text>the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over</text></subparagraph>
<subparagraph id="H60EDC7FDC67E46CBA6A156BB6B58A93B"><enum>(B)</enum><text>the sum of the credits allowable under this subpart (other than this section) and section 27 for the taxable year.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="HFC9BBC6F7664491598878B9C9C8E59C5" commented="no"><enum>(2)</enum><header>Section 25D</header><text>Section 25D(b), as added by section 207 of this Act, is amended by adding at the end the following new paragraph:</text>
<quoted-block id="HB714743AAF9D497EABD346835B576CAE">
<paragraph id="HF0FF8288507E4CD3B11028A1DC32E1ED"><enum>(3)</enum><header>Limitation based on amount of tax</header><text>The credit allowed under subsection (a) for the taxable year shall not exceed the excess of—</text>
<subparagraph id="HEBAD34BBAA514E710011EEB3A365C700"><enum>(A)</enum><text>the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over</text></subparagraph>
<subparagraph id="H06B9FA6152E8471EB17D79A6C01F2802"><enum>(B)</enum><text>the sum of the credits allowable under this subpart (other than this section) and section 27 for the taxable year.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H781ABA50FA4E4B0FB9FD4D376345A260" display-inline="no-display-inline"><enum>(b)</enum><header>Conforming amendments</header>
<paragraph id="H7698EAF5F9924247ABD2392B73830095"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/23">Section 23(b)(4)(B)</external-xref> is amended by inserting <quote>and sections 25C and 25D</quote> after <quote>this section</quote>.</text></paragraph>
<paragraph id="H5C9A984121A14C958DF11836D48A398"><enum>(2)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/24">Section 24(b)(3)(B)</external-xref> is amended by striking <quote>and 25B</quote> and inserting <quote>, 25B, 25C, and 25D</quote>.</text></paragraph>
<paragraph id="H6E7BDC9D38D34DC0B3C12F3700375253"><enum>(3)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/25">Section 25(e)(1)(C)</external-xref> is amended by inserting <quote>25C, and 25D</quote> after <quote>25B,</quote>.</text></paragraph>
<paragraph id="H2135A14A16F3498A8801C1D801D26B63"><enum>(4)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/25B">Section 25B(g)(2)</external-xref> is amended by striking <quote>section 23</quote> and inserting <quote>sections 23, 25C, and 25D</quote>.</text></paragraph>
<paragraph id="H9C45290DD36F4218902587F1D0C3008F"><enum>(5)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/26">Section 26(a)(1)</external-xref> is amended by striking <quote>and 25B</quote> and inserting <quote>25B, 25C, and 25D</quote>.</text></paragraph>
<paragraph id="H19C4CDCE66644183BC48DC18B4BE6D5"><enum>(6)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/904">Section 904(h)</external-xref> is amended by striking <quote>and 25B</quote> and inserting <quote>25B, 25C, and 25D</quote>.</text></paragraph>
<paragraph id="H8E759F618ACE4B28B770977367BA06CC"><enum>(7)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/1400C">Section 1400C(d)</external-xref> is amended by striking <quote>and 25B</quote> and inserting <quote>25B, 25C, and 25D</quote>.</text></paragraph></subsection>
<subsection id="H3C208243BCB84BFDBBD221C870344B67" commented="no"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2005.</text></subsection></section>
<section id="H1CBC35B3A95A4E16917B00F6147DBD1E" commented="no" display-inline="no-display-inline" section-type="subsequent-section"><enum>302.</enum><header>Certain business energy credits allowed against regular and minimum taxes</header>
<subsection id="HD6142BA636044207AC1C3F1CB8F53BA1" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subparagraph (B) of section 38(c)(4) (relating to specified credits) is amended by redesignating clause (ii) as clause (iv) and by striking clause (i) and inserting the following new clauses: </text>
<quoted-block id="H739742F8028648BAB262E89D298389BD" style="OLC">
<clause id="H26299B39387A4FEAB5824B52C4D5FAB5"><enum>(i)</enum><text display-inline="yes-display-inline">the credits determined under sections 40, 45H, and 45I,</text></clause>
<clause id="H7D1A215CE65441F38D34B0D00C1862B" display-inline="no-display-inline"><enum>(ii)</enum><text>so much of the credit determined under section 46 as is attributable to section 48(a)(3)(A)(iii), </text></clause>
<clause id="HFE3CD535C4D048B48140B6258ECC7D73"><enum>(iii)</enum><text>for taxable years beginning after December 31, 2005, and before January 1, 2008, the credit determined under section 43, and</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H18A0922CF3A241B48902BEA60455E212" commented="no"><enum>(b)</enum><header>Effective dates</header>
<paragraph id="H563FDBDE9481404C952EDF4CA4DBF61F"><enum>(1)</enum><header>In general</header><text>Except as provided by paragraph (2), the amendment made by subsection (a) shall apply to credits determined under the Internal Revenue Code of 1986 for taxable years beginning after December 31, 2005.</text></paragraph>
<paragraph id="H32050171841A4AD0A0E02C3D67A8CAEC"><enum>(2)</enum><header>Fuel cells</header><text display-inline="yes-display-inline">Clause (ii) of <external-xref legal-doc="usc" parsable-cite="usc/26/38">section 38(c)(4)(B)</external-xref> of the Internal Revenue Code of 1986, as amended by subsection (a) of this section, shall apply to credits determined under the Internal Revenue Code of 1986 for taxable years ending after April 11, 2005. </text></paragraph></subsection></section>
April 18, 2005
Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed