1.This Act may be cited as the
Research and Development Investment
Act
.
2.Reauthorize and revise
the Renewable Energy Production Incentive program
(a)Section 1212(a) of
the Energy Policy Act of 1992 (42 U.S.C. 13317(a)) is amended
by striking and which satisfies
and all that follows through
Secretary shall establish.
and inserting . If there are
insufficient appropriations to make full payments for electric production from
all qualified renewable energy facilities in any given year, the Secretary
shall assign 60 percent of appropriated funds for that year to facilities that
use solar, wind, geothermal, or closed-loop (dedicated energy crops) biomass
technologies to generate electricity, and assign the remaining 40 percent to
other projects. The Secretary may, after transmitting to the Congress an
explanation of the reasons therefor, alter the percentage requirements of the
preceding sentence.
.
(b)Qualified
renewable energy facilitySection 1212(b) of the Energy Policy Act of
1992 (42 U.S.C.
13317(b)) is amended—
(1)by striking a State or any
political
and all that follows through nonprofit electrical
cooperative
and inserting a not-for-profit electric cooperative,
a public utility described in section 115 of the Internal Revenue Code of 1986,
a State, Commonwealth, territory, or possession of the United States or the
District of Columbia, or a political subdivision thereof, or an Indian tribal
government of subdivision thereof,
; and
(2)by inserting landfill gas,
after wind, biomass,
.
(c)Section 1212(c) of the
Energy Policy Act of 1992 (42 U.S.C. 13317(c)) is amended
by striking during the 10-fiscal year period beginning with the first
full fiscal year occurring after the enactment of this section
and
inserting after October 1, 2005, and before October 1,
2015
.
(d)Section 1212(e)(1) of
the Energy Policy Act of 1992 (42 U.S.C. 13317(e)(1)) is
amended by inserting landfill gas,
after wind,
biomass,
.
(e)Section 1212(f) of the Energy Policy Act of
1992 (42 U.S.C.
13317(f)) is amended by striking the expiration
of
and all that follows through of this section
and
inserting September 30, 2025
.
(f)Authorization
of appropriationsSection
1212(g) of the Energy Policy Act of 1992 (42 U.S.C. 13317(g)) is amended
to read as follows:
(g)Authorization
of appropriationsThere are
authorized to be appropriated to carry out this section $20,000,000 for each of
fiscal years 2005 through 2025, to remain available until
expended.
.
3.Extension and
expansion of credit for electricity produced from certain renewable
resources
(a)Section 45(d) of the Internal Revenue Code
of 1986 (relating to qualified facilities) is amended by striking
2006
and inserting 2011
.
(b)Incremental
geothermal energy and incremental hydropower production
(1)Section 45(c)(1) of
the Internal Revenue Code of 1986 (defining qualified energy resources) is
amended by striking and
at the end of subparagraph (F), by
striking the period at the end of subparagraph (G) and inserting a comma, and
by adding at the end the following new subparagraphs:
(H)incremental geothermal energy production,
and
(I)incremental hydropower
production.
.
(2)Section 45(c) of
such Code is amended by adding at the end the following new paragraphs:
(8)Incremental
geothermal production
(A)The term
incremental geothermal production means for any taxable year the
excess of—
(i)the total kilowatt hours of electricity
produced from an incremental geothermal facility described in subsection
(d)(9), over
(ii)the average annual kilowatt hours produced
at such facility for 5 of the previous 7 calendar years before the date of the
enactment of this paragraph after eliminating the highest and the lowest
kilowatt hour production years in such 7-year period.
(B)A facility described in
subsection (d)(9) which was placed in service at least 7 years before the date
of the enactment of this paragraph shall commencing with the year in which such
date of enactment occurs, reduce the amount calculated under subparagraph
(A)(ii) each year, on a cumulative basis, by the average percentage decrease in
the annual kilowatt hour production for the 7-year period described in
subparagraph (A)(ii) with such cumulative sum not to exceed 30 percent.
(9)Incremental
hydropower production
(A)The term
incremental hydropower production means for any taxable year an
amount equal to the percentage of total kilowatt hours of electricity produced
from an incremental hydropower facility described in subsection (d)(10)
attributable to efficiency improvements or additions of capacity as determined
under subparagraph (B).
(B)Determination
of incremental hydropower productionFor purposes of subparagraph (A),
incremental hydropower production for any incremental hydropower facility for
any taxable year shall be determined by establishing a percentage of average
annual hydropower production at the facility attributable to the efficiency
improvements or additions of capacity using the same water flow information
used to determine an historic average annual hydropower production baseline for
such facility. Such percentage and baseline shall be certified by the Federal
Energy Regulatory Commission. For purposes of the preceding sentence, the
determination of incremental hydropower production shall not be based on any
operational changes at such facility not directly associated with the
efficiency improvements or additions of
capacity.
.
(3)Section 45(d) of such Code (relating to
qualified facilities) is amended by adding at the end the following new
paragraphs:
(9)Incremental
geothermal facilityIn the
case of a facility using incremental geothermal to produce electricity, the
term qualified facility means any facility owned by the taxpayer
which is originally placed in service before the date of the enactment of this
paragraph, but only to the extent of its incremental geothermal production. In
the case of a qualified facility described in the preceding sentence, the
10-year period referred to in subsection (a) shall be treated as beginning not
earlier than such date of enactment. Such term shall not include any property
described in section 48(a)(3) the basis of which is taken into account by the
taxpayer for purposes of determining the energy credit under section 48.
(10)Incremental
hydropower facilityIn the
case of a facility using incremental hydropower to produce electricity, the
term qualified facility means any non-Federal hydroelectric
facility owned by the taxpayer which is originally placed in service before the
date of the enactment of this paragraph, but only to the extent of its
incremental hydropower production. In the case of a qualified facility
described in the preceding sentence, the 10-year period referred to in
subsection (a) shall be treated as beginning not earlier than such date of
enactment.
.
(c)The amendments made by
this section shall apply to facilities placed in service after December 31,
2005.
4.Credit for residential
energy efficient property
(a)Subpart A of part IV
of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to
nonrefundable personal credits) is amended by inserting after section 25B the
following new section:
25C.Residential solar
and geothermal property
(a)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 10 percent of the qualified
energy property expenditures made by the taxpayer during such year.
(b)No credit shall be allowed under this
section for an item of property unless—
(1)the original use of such property commences
with the taxpayer,
(2)such property reasonably can be expected to
remain in use for at least 5 years, and
(3)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.
(c)Qualified
energy property expendituresFor purposes of this section, the term
qualified energy property expenditure means an expenditure for
energy property (as defined in paragraph (3) of section 48(a) (determined
without regard to subparagraphs (B) and (C) thereof).
(d)For purposes of this
section—
(1)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 subsection (c)
solely because it constitutes a structural component of the structure on which
it is installed.
(2)Swimming pools,
etc., used as storage mediumExpenditures 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.
(3)Dollar amounts
in case of joint occupancyIn
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:
(A)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.
(B)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.
(4)Tenant-stockholder
in cooperative housing corporationIn 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.
(5)
(A)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.
(B)Condominium
management associationFor
purposes of this paragraph, the term condominium management
association 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.
(6)Allocation in
certain casesIf 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.
(7)When
expenditure made; amount of expenditure
(A)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.
(B)Expenditures
part of building constructionIn 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.
(C)The amount of any expenditure shall be the
cost thereof.
(8)Property
financed by subsidized energy financingFor 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)).
(e)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.
.
(b)
(1)Section 1016(a) of the Internal Revenue
Code of 1986 is amended by striking and
at the end of paragraph
(30), by striking the period at the end of paragraph (31) and inserting
, and
, and by adding at the end the following new
paragraph:
(32)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.
.
(2)The table of sections for subpart A of part
IV of subchapter A of chapter 1 of such Code is amended by inserting after the
item relating to section 25B the following new item:
Sec. 25C. Residential solar and
geothermal
property.
.
(c)The amendments made by
this section shall apply to taxable years ending after December 31,
2004.
5.Delay in phaseout of
deduction for clean-fuel vehicles
(a)Section 179A(b)(1)(B)
of the Internal Revenue Code of 1986 (relating to phaseout) is amended by
striking 2005
and inserting 2006
.
(b)The amendment made by
this section shall apply to property placed in service after December 31,
2005.
6.Delay in phaseout of
credit for qualified electric vehicles
(a)Section 30(b)(2) of
the Internal Revenue Code of 1986 (relating to phaseout) is amended by striking
2005
and inserting 2006
.
(b)The amendment made by
this section shall apply to property placed in service after December 31,
2005.