[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4348 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 4348

 To amend the Internal Revenue Code of 1986 to allow a tax credit for 
         the purchase and installation of emergency generators.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 16, 2005

  Mr. Hastings of Florida (for himself and Mr. Wexler) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to allow a tax credit for 
         the purchase and installation of emergency generators.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Emergency Generators for Electric 
Needs (E-GEN) Act of 2005''.

SEC. 2. CREDIT FOR PURCHASE AND INSTALLATION OF EMERGENCY GENERATORS.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 30D. EMERGENCY GENERATOR CREDIT.

    ``(a) Credit Allowed.--There shall be allowed as a credit against 
the tax imposed by this chapter for the taxable year an amount equal to 
75 percent of the amount paid or incurred by the taxpayer for the 
purchase and installation of any emergency generator placed in service 
by the taxpayer during the taxable year.
    ``(b) Dollar Limitation.--The credit allowed under subsection (a) 
with respect to any emergency generator shall not exceed--
            ``(1) $60,000 in the case of an emergency generator placed 
        in service by a character subject to an allowance for 
        depreciation, and
            ``(2) $2,500 in any other case.
    ``(c) Emergency Generator.--For purposes of this section, the term 
`emergency generator' means an electrical generator purchased and 
installed for the purpose of providing emergency electric power to a 
taxpayer that otherwise purchases electric power from a utility.
    ``(d) Application With Other Credits.--
            ``(1) Business credit treated as part of general business 
        credit.--So much of the credit which would be allowed under 
        subsection (a) for any taxable year (determined without regard 
        to this subsection) that is attributable to an emergency 
        generator placed in service by a character subject to an 
        allowance for depreciation shall be treated as a credit listed 
        in section 38(b) for such taxable year (and not allowed under 
        subsection (a)).
            ``(2) Personal credit.--The credit allowed under subsection 
        (a) (after the application of paragraph (1)) for any taxable 
        year shall not exceed the excess (if any) of--
                    ``(A) the regular tax reduced by the sum of the 
                credits allowable under subpart A and sections 27, 30, 
                30B, and 30C, over
                    ``(B) the tentative minimum tax for the taxable 
                year.
    ``(e) Basis Reduction.--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.
    ``(f) Property Used Outside United States, Etc., not Qualified.--No 
credit shall be allowed 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.
    ``(g) Denial of Double Benefit.--No credit shall be allowed under 
subsection (a) for any expense for which a deduction or credit is 
allowed under any other provision of this chapter.
    ``(h) Election not to Have Section Apply.--A taxpayer may elect not 
to have this section apply with respect to an emergency generator 
placed in service by the taxpayer during the taxable year.''.
    (b) Conforming Amendments.--
            (1) Section 1016(a) of such Code is amended by striking 
        ``and'' at the end of paragraph (36), by striking the period at 
        the end of paragraph (37) and inserting ``, and'', and by 
        adding at the end the following new paragraph:
            ``(38) to the extent provided in section 30D(e), in the 
        case of amounts with respect to which a credit has been allowed 
        under section 30D.''.
            (2) Subsection (b) of section 38 of such Code is amended by 
        striking ``and'' at the end of paragraph (25), by striking the 
        period at the end of paragraph (26) and inserting ``, and'', 
        and by adding at the end the following new paragraph:
            ``(27) the portion of the emergency generator credit to 
        which section 30D(d)(1) applies.''.
            (3) Section 55(c)(2) of such Code is amended by inserting 
        ``30D(d)(2)'' after ``30(b)(3),''.
            (4) Section 6501(m) of such Code is amended by inserting 
        ``30D(h),'' before ``40(f),''.
            (5) The table of sections for subpart B of part IV of 
        subchapter A of chapter 1 of such Code is amended by adding at 
        the end the following new item:

``Sec. 30D. Emergency generator credit.''.
    (c) Effective Date.--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.
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