1.Short title; amendment of
Code
(a)This title may be cited
as the Climate Change Technology Tax
Incentives Act of 2005
.
(b)Except as otherwise
expressly provided, whenever in this title 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.
<enum>I</enum><header>Greenhouse gas intensity reduction tax
incentives</header>
<section commented="no" display-inline="no-display-inline" id="IDE344070E903B4356B78876DD8039FCA3" section-type="subsequent-section"><enum>101.</enum><header>Greenhouse gas
intensity reduction investment tax credit</header>
<subsection commented="no" display-inline="no-display-inline" id="ID5B61280C6FA543B2A345DDF10CE78E47"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subpart D of part IV
of subchapter A of chapter 1 (relating to business-related credits) is amended
by adding at the end the following new section:</text>
<quoted-block display-inline="no-display-inline" id="IDDE0764912FD3409D887484F5A5E2D2A0" style="OLC">
<section commented="no" display-inline="no-display-inline" id="ID8140554670BE4521B61CF38FC31EFEC4" section-type="subsequent-section"><enum>45J.</enum><header>Greenhouse gas
intensity reduction investment credit</header>
<subsection commented="no" display-inline="no-display-inline" id="IDD285CD816E8849738EA189DA7122B0D9"><enum>(a)</enum><header>Allowance of
credit</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID47906D5BA7874698B229FE210E2295D0"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">For purposes of
section 38, in the case of a taxpayer’s investment in a greenhouse gas
intensity reduction project approved by the accreditation panel, the greenhouse
gas intensity reduction investment credit determined under this section for the
taxable year is an amount equal to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID008378828A7C4E639C60EBC90ACE184C"><enum>(A)</enum><text display-inline="yes-display-inline">percentage reduction in greenhouse gas
intensity certified for such project for such year by the accreditation panel,
multiplied by</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID01A007BE98DC4EFB814149E02D3D589E"><enum>(B)</enum><text display-inline="yes-display-inline">the investment in such project during such
year which is attributable, directly or indirectly, to the taxpayer, as
determined by the accreditation panel.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID2711421C3FF94E1CAD7AF0FBD780E357"><enum>(2)</enum><header>Aggregate
dollar limitation</header><text display-inline="yes-display-inline">The credit
determined under paragraph (1) for any taxable year, when added to any credit
allowed to the taxpayer with respect to the such project in any preceding
taxable year, shall not exceed 50 percent of the investment attributable to the
taxpayer with respect to such project through such taxable year.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID8761598413654902972F254D869579BE"><enum>(b)</enum><header>Limitation on
aggregate credit allowable</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID68F35282208A44D5AF7C48496479A0B5"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The amount of the
greenhouse gas intensity reduction investment credit determined under
subsection (a) for any project, when added to all such credits allowed to all
taxpayers with respect to the such project shall not exceed the credit dollar
amount allocated to such project under this subsection by the accreditation
panel from the greenhouse gas intensity reduction investment credit limitation
for the calendar year in which such allocation is made.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID6AE88EB45F9849D0B27DD64B2A12AB44"><enum>(2)</enum><header>Time for making
allocation</header><text display-inline="yes-display-inline">An allocation
shall be taken into account under paragraph (1) only if it is made not later
than the close of the calendar year in which the greenhouse gas intensity
reduction project proposal with respect to such project is approved by the
accreditation panel.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDD5969E2E619A4DA3A0DC0B61C6E7E17D"><enum>(3)</enum><header>Overall
limitation on aggregate credit allowable</header><text display-inline="yes-display-inline">The accreditation panel may allocate the
aggregate credit dollar amount to any such project for a period not to exceed a
10-year period beginning with the calendar year described in paragraph
(2).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID95B202E946C144FDA888C2BEF077D942"><enum>(c)</enum><header>Limitation on
amount of credits allocated</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID13AA612B8EA2428D8DC49674D3A06036"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">There is a greenhouse
gas intensity reduction investment credit limitation amount for each calendar
year. Such limitation amount is—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDA1714AD375E944DB83C3CBAF99721843"><enum>(A)</enum><text display-inline="yes-display-inline">$400,000,000 for 2006,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID5678B0A8362847928FA723BC388C34EC"><enum>(B)</enum><text display-inline="yes-display-inline">$300,000,000 for 2007,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDF8FE2DEC0E43498E891B26FCC1B40DFE"><enum>(C)</enum><text display-inline="yes-display-inline">$300,000,000 for 2008,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID610BE2AFB6E546DE9DE5E2523D290EAB"><enum>(D)</enum><text display-inline="yes-display-inline">$300,000,000 for 2009,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID94406C8A955641D98A82EFE4DE1BB649"><enum>(E)</enum><text display-inline="yes-display-inline">$300,000,000 for 2010, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDB9C5443204B94DF88AAE8B9A2DABA2C0"><enum>(F)</enum><text display-inline="yes-display-inline">except as provided in paragraph (2), zero
thereafter.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDE4D8714309AB47F7AD2CD06FC229D008"><enum>(2)</enum><header>Carryover of
unused issuance limitation</header><text display-inline="yes-display-inline">If
for any calendar year the limitation amount imposed by paragraph (1) exceeds
the amount of greenhouse gas intensity reduction investment credits allocated
during such year, such excess shall be carried forward to the succeeding
calendar year as an addition to the limitation imposed by paragraph (1).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDE7F9889343554238B08198911588A4A6"><enum>(d)</enum><header>Greenhouse gas
intensity reduction project; greenhouse gas intensity; accreditation
panel</header><text display-inline="yes-display-inline">For purposes of this
section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idC4C1F7BDC9E043EF9D4A07AA89E6B21E"><enum>(1)</enum><header>Greenhouse gas
intensity reduction project</header><text display-inline="yes-display-inline">The term <quote>greenhouse gas intensity
reduction project</quote> means any project approved under this section by the
accreditation panel. Such approval shall be based on the following
criteria:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id1808948E947442119B2082E6F5FC91D0"><enum>(A)</enum><text display-inline="yes-display-inline">The extent of the reduction in greenhouse
gas intensity proposed for the project.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id0026573828E64ADFA5566E69ACF53A50"><enum>(B)</enum><text display-inline="yes-display-inline">Improvements in system efficiency.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idA89EEB4004CF483AAC95B39A3EF4A673"><enum>(C)</enum><text display-inline="yes-display-inline">In the case of projects located outside the
United States, the extent of technology transfer.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id499EF0B56AB74422B687C04434B2AA51"><enum>(D)</enum><text display-inline="yes-display-inline">The existence and nature of agreements for
sharing project benefits and liability between the taxpayer and any host
government.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDEFC55556CDF14D2FA234FB9E43DBF303"><enum>(2)</enum><header>Greenhouse gas
intensity</header><text display-inline="yes-display-inline">The greenhouse gas
intensity for any period is equal to the volume of emissions divided by the
economic output associated with a project as compared to a greenhouse gas
intensity baseline established after the date of the enactment of this section.
The comparison to such baseline may be made by geographic regions, industry
segments, or on a taxpayer basis.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDA04B1E98A1034FE1A9A535DD1D96D1A2"><enum>(3)</enum><header>Accreditation
panel</header><text display-inline="yes-display-inline">The term
<term>accreditation panel</term> means a panel jointly certified by the
Secretary and the Secretary of Commerce.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID1C5D30A7D0294398887EC430C77A0AA5"><enum>(e)</enum><header>Recapture of
credit in certain cases</header>
<paragraph commented="no" display-inline="no-display-inline" id="IDC234BDA355264CEBA9D1391A86DBF412"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">If, at any time
during the 20-year period of a greenhouse gas intensity reduction project,
there is a recapture event with respect to such project, then the tax imposed
by this chapter for the taxable year in which such event occurs shall be
increased by the credit recapture amount.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID5DE9797DD3F24305BAA2494A56BED62F"><enum>(2)</enum><header>Credit
recapture amount</header><text display-inline="yes-display-inline">For purposes
of paragraph (1)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID00D1CB61F1BF4FCDB007B8CC7F8920AD"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">The credit recapture
amount is an amount equal to the recapture percentage of all greenhouse gas
intensity reduction investment credits previously allowable to a taxpayer with
respect to any investment in such project that is attributable to such
taxpayer.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID67FDE95FFA4147A2B4B058275EBC1A7D"><enum>(B)</enum><header>Recapture
percentage</header><text display-inline="yes-display-inline">The recapture
percentage shall be 100 percent if the recapture event occurs during the first
5 years of the project, 75 percent if the recapture event occurs during the
second 5 years of the project, 50 percent if the recapture event occurs during
the third 5 years of the project, 25 percent if the recapture event occurs
during the fourth 5 years of the project, and 0 percent if the recapture event
occurs at any time after the 20th year of the project.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDA66E63E3E54747AEB36F27C9D9D4F026"><enum>(3)</enum><header>Recapture
event</header><text display-inline="yes-display-inline">For purposes of
paragraph (1), there is a recapture event with respect to a greenhouse gas
intensity reduction project if—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDAF73025925324237884B1E7E18F97DFA"><enum>(A)</enum><text display-inline="yes-display-inline">the taxpayer violates a term or condition
of the approval of the project by the accreditation panel at any time,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID871F755C72994070BA3D24D1ABC0DFF6"><enum>(B)</enum><text display-inline="yes-display-inline">the taxpayer adopts a practice which the
accreditation panel has specified in its approval of the project as a practice
which would tend to defeat the purposes of the program, or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID8107080F2B154C329A881D46227636A6"><enum>(C)</enum><text display-inline="yes-display-inline">the taxpayer disposes of any ownership
interest arising out of its investment that the accreditation panel has
determined is attributable to the project, unless the accreditation panel
determines that such disposition will not have any adverse effect on the
greenhouse gas intensity reduction project.</text>
</subparagraph><continuation-text commented="no" continuation-text-level="paragraph">If an event which otherwise would be
a recapture event is outside the control of the taxpayer, as determined by the
accreditation panel, such event shall not be treated as a recapture event with
respect to such taxpayer.</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID63AEB1EC7F38466598476CEA5F330795"><enum>(4)</enum><header>Special
rules</header>
<subparagraph commented="no" display-inline="no-display-inline" id="IDA00219715B274F35BCBEC28B8ACFB275"><enum>(A)</enum><header>Tax benefit
rule</header><text display-inline="yes-display-inline">The tax for the taxable
year shall be increased under paragraph (1) only with respect to credits
allowed by reason of this section which were used to reduce tax liability. In
the case of credits not so used to reduce tax liability, the carryforwards and
carrybacks under section 39 shall be appropriately adjusted.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID6A200DA87772404FB457193CDFB80CE6"><enum>(B)</enum><header>No credits
against tax</header><text display-inline="yes-display-inline">Any increase in
tax under this subsection shall not be treated as a tax imposed by this chapter
for purposes of determining the amount of any credit under this chapter or for
purposes of section 55.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDA0348B79AD504EEEBB4A899E9C36F7DD"><enum>(f)</enum><header>Disallowance of
double benefit</header>
<paragraph commented="no" display-inline="no-display-inline" id="IDDBA3C904F7D944D2885A241B56462BB1"><enum>(1)</enum><header>Basis
reduction</header><text display-inline="yes-display-inline">The basis of any
investment in a greenhouse gas intensity reduction project shall be reduced by
the amount of any credit determined under this section with respect to such
investment.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDA42F70266BC64B009DFAA0C95BF15FA4"><enum>(2)</enum><header>Charitable
deduction disallowed</header><text display-inline="yes-display-inline">No
deduction shall be allowed to a taxpayer under section 170 with respect to any
contribution which the accreditation panel certifies to the Secretary
constitutes an investment in a greenhouse gas intensity reduction project that
is attributable to such taxpayer.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID734A78D622FF476D8C200BFAE965C31A"><enum>(g)</enum><header>Certification
to Secretary</header><text display-inline="yes-display-inline">The
accreditation panel shall certify to the Secretary before January 31 of each
year with respect to each taxpayer which has made an investment in a greenhouse
gas intensity reduction project—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID78368751E13C4F7D8C3B9371D51E3DBA"><enum>(1)</enum><text display-inline="yes-display-inline">the amount of the greenhouse gas intensity
reduction investment credit allowable to such taxpayer for the preceding
calendar year,</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID1844414015B5444DA659DFFB5EABF745"><enum>(2)</enum><text display-inline="yes-display-inline">whether a recapture event occurred with
respect to such taxpayer during the preceding calendar year, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID0BEB60540CBA46968E2C6A8E7C1FFE1C"><enum>(3)</enum><text display-inline="yes-display-inline">the credit recapture amount, if any, with
respect to such taxpayer for the preceding calendar year.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDC9358525F5314E77AC882BB14DCA9C5D"><enum>(h)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Secretary shall prescribe such
regulations as may be appropriate to carry out this section, including
regulations—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID34F88B56E375478E8B849E3CA38F6D30"><enum>(1)</enum><text display-inline="yes-display-inline">which limit the credit for investments
which are directly or indirectly subsidized by other Federal benefits,</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID9BD820A34A2A4F48965B2BFC895958AC"><enum>(2)</enum><text display-inline="yes-display-inline">which prevent the abuse of the provisions
of this section through the use of related parties, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID0824526450AC4224998C7AC114E40FCB"><enum>(3)</enum><text display-inline="yes-display-inline">which impose appropriate reporting
requirements.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID409BED2ABA1E45D98A32BFCE9667F3AD"><enum>(b)</enum><header>Credit made
part of general business credit</header><text display-inline="yes-display-inline">Subsection (b) of section 38 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 new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="IDE45CA65484E44851880226F298B4FF78" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="ID85BAFA36568F49CDB06C43180FED9F29"><enum>(20)</enum><text display-inline="yes-display-inline">the greenhouse gas intensity reduction
investment credit determined under section
45J(a).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDBF361783DC424F929305D8223770E85A"><enum>(c)</enum><header>Deduction for
unused credit</header><text display-inline="yes-display-inline">Subsection (c)
of section 196 is amended by striking <quote>and</quote> at the end of
paragraph (11), by striking the period at the end of paragraph (12) and
inserting <quote>, and</quote>, and by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="ID9CC1D76FB5A342409500C74B30BE8D9E" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="IDDA93F5F93E984C8C89A819BEA530A660"><enum>(13)</enum><text display-inline="yes-display-inline">the greenhouse gas intensity reduction
investment credit determined under section
45J(a).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID78274071D3CD4C0DB2F5C7875EDD191C"><enum>(d)</enum><header>Clerical
amendment</header><text display-inline="yes-display-inline">The table of
sections for subpart D of part IV of subchapter A of chapter 1 is amended by
adding at the end the following new item:</text>
<quoted-block display-inline="no-display-inline" id="IDA57148050D464259A446906F49259C96" style="USC">
<toc regeneration="no-regeneration">
<toc-entry bold="off" level="section">Sec. 45J. Greenhouse gas
intensity reduction investment
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID92E58A4AD7FF4BC6A5A3608A9BE11833"><enum>(e)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to investments made after December 31, 2005.</text>
</subsection></section><enum>II</enum><header>Energy efficiency provisions</header>
<subtitle commented="no" id="ID5EC11526F2154156A732972D19F4D1C1" style="OLC"><enum>A</enum><header>Renewable energy</header>
<section commented="no" display-inline="no-display-inline" id="id50EB6F91A937428884BFD70E71C66465" section-type="subsequent-section"><enum>201.</enum><header>Sense of the Senate
regarding extension of renewable energy credit</header><text display-inline="no-display-inline">It is the sense of the Senate that the
income tax credit for electricity produced from certain renewable resources
under section 45 of the Internal Revenue Code of 1986 should be extended
through 2010.</text>
</section></subtitle><subtitle commented="no" id="id673BFA21468145048C7A87D5303673B1" style="OLC"><enum>B</enum><header>Nuclear power</header>
<section commented="no" display-inline="no-display-inline" id="IDF3591889F6F34848B01518DE918B7DC9" section-type="subsequent-section"><enum>211.</enum><header>Credit for
production from advanced nuclear power facilities</header>
<subsection commented="no" display-inline="no-display-inline" id="ID3A755321111B469AAD14A5EA2DF2787C"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subpart D of part IV
of subchapter A of chapter 1 (relating to business related credits), as amended
by this Act, is amended by adding at the end the following new section:</text>
<quoted-block display-inline="no-display-inline" id="IDDCB026AA64FB458B82F91D002F9965DB" style="OLC">
<section commented="no" display-inline="no-display-inline" id="IDC5E0697DF9604B3786BD6E42776062FA" section-type="subsequent-section"><enum>45K.</enum><header>Credit for
production from advanced nuclear power facilities</header>
<subsection commented="no" display-inline="no-display-inline" id="ID0A79F98A87C342F59E62C7D26DCC83F9"><enum>(a)</enum><header>General
rule</header><text display-inline="yes-display-inline">For purposes of section
38, the advanced nuclear power facility production credit of any taxpayer for
any taxable year is equal to the product of—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID850E9FD6C4394CFEBBB5A894028D81F3"><enum>(1)</enum><text display-inline="yes-display-inline">0.6 cent, multiplied by</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID9939B618DB9746408FC2465DFEF75C03"><enum>(2)</enum><text display-inline="yes-display-inline">the kilowatt hours of electricity—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID52D1DA1A6663405189324721CAF3E49C"><enum>(A)</enum><text display-inline="yes-display-inline">produced by the taxpayer at an advanced
nuclear power facility during the 10-year period beginning on the date the
facility was originally placed in service, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDEF4E2807F0FD43879FA24CF5D5B562D9"><enum>(B)</enum><text display-inline="yes-display-inline">sold by the taxpayer to an unrelated person
during the taxable year.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDA797F54FD98343B4AC4C7095551392BD"><enum>(b)</enum><header>National
limitation</header>
<paragraph commented="no" display-inline="no-display-inline" id="IDC1E127172DAC40B686C6D3ABB1AAC3FB"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The amount of credit
which would (but for this subsection and subsection (c)) be allowed with
respect to any facility for any taxable year shall not exceed the amount which
bears the same ratio to such amount of credit as—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDF5CD97A3E6D74EC7BC3BDF66BF7DCD41"><enum>(A)</enum><text display-inline="yes-display-inline">the national megawatt capacity limitation
allocated to the facility, bears to</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID2CFA7DBC9BE94C529DF47BE690323F43"><enum>(B)</enum><text display-inline="yes-display-inline">the total megawatt nameplate capacity of
such facility.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID1DAFE9F4C64A4F56853F1D4674825075"><enum>(2)</enum><header>Amount of
national limitation</header><text display-inline="yes-display-inline">The
national megawatt capacity limitation shall be 8,000 megawatts.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID43B66555EEF84C73BB6F8CF700BC57A3"><enum>(3)</enum><header>Allocation of
limitation</header><text display-inline="yes-display-inline">The Secretary
shall allocate the national megawatt capacity limitation in such manner as the
Secretary may prescribe.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID2311E5B84B93423D0077B0C9C4650011"><enum>(4)</enum><header>Regulations</header><text display-inline="yes-display-inline">Not later than 6 months after the date of
the enactment of this section, the Secretary shall prescribe such regulations
as may be necessary or appropriate to carry out the purposes of this
subsection. Such regulations shall provide a certification process under which
the Secretary, after consultation with the Secretary of Energy, shall approve
and allocate the national megawatt capacity limitation.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID17AC5F98CF4748FEAA00895121981DDF"><enum>(c)</enum><header>Other
limitations</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID5BB903653C904C74BFAF512C31D40073"><enum>(1)</enum><header>Annual
limitation</header><text display-inline="yes-display-inline">The amount of the
credit allowable under subsection (a) (after the application of subsection (b))
for any taxable year with respect to any facility shall not exceed an amount
which bears the same ratio to $125,000,000 as—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDC3CEC86C0102408F81EE00BDC92E9728"><enum>(A)</enum><text display-inline="yes-display-inline">the national megawatt capacity limitation
allocated under subsection (b) to the facility, bears to</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID5C191AF569644C2EA176C35F9C8FE649"><enum>(B)</enum><text display-inline="yes-display-inline">1000.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDB66D0BC0D43B4219BDED9147721165FD"><enum>(2)</enum><header>Other
limitations</header><text display-inline="yes-display-inline">Rules similar to
the rules of section 45(b) shall apply for purposes of this section, except
that paragraph (2) thereof shall not apply to the 0.6 cent under subsection
(a)(1).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDC45893A0157E43DB94D5F796EBDA001B"><enum>(d)</enum><header>Advanced
nuclear power facility</header><text display-inline="yes-display-inline">For
purposes of this section, the term <term>advanced nuclear power facility</term>
means any advanced nuclear facility—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID6F4D59DFF5FC45329612F891847FFCF0"><enum>(1)</enum><text display-inline="yes-display-inline">which is owned by the taxpayer and which
uses nuclear energy to produce electricity, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID1DFD465DE74C441397278FD7B0FC97EB"><enum>(2)</enum><text display-inline="yes-display-inline">which is originally placed in service after
the date of the enactment of this paragraph and before January 1, 2010.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID573F224B271249CE9D7086AEB115AEC4"><enum>(e)</enum><header>Other rules to
apply</header><text display-inline="yes-display-inline">Rules similar to the
rules of paragraphs (1), (2), (3), (4), and (5) of section 45(e) shall apply
for purposes of this section.</text>
</subsection></section><after-quoted-block></after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDD1FBF290AD064665955850EA9ED95EB7"><enum>(b)</enum><header>Credit treated
as business credit</header><text display-inline="yes-display-inline">Section
38(b), as amended by this Act, is amended by striking <quote>plus</quote> at
the end of paragraph (19), by striking the period at the end of paragraph (20)
and inserting <quote>, plus</quote>, and by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="ID8C1BD3786D4F4B389356EB61ECD4F633" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="IDC212F2624D944806AE7CCA9660E84B84"><enum>(21)</enum><text display-inline="yes-display-inline">the advanced nuclear power facility
production credit determined under section
45K(a).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID4C8DA9A85373409F99E1A4D50584BC9D"><enum>(c)</enum><header>Clerical
amendment</header><text display-inline="yes-display-inline">The table of
sections for subpart D of part IV of subchapter A of chapter 1, as amended by
this Act, is amended by adding at the end the following new item:</text>
<quoted-block display-inline="no-display-inline" id="IDFF5488141E164401BDA7F4365D2B8772" style="USC">
<toc regeneration="no-regeneration">
<toc-entry bold="off" level="section">Sec. 45K. Credit for production
from advanced nuclear power
facilities.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idCCDA01AB3F3A47819694B541DEA262B6"><enum>(d)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to production in taxable years ending after the date
of the enactment of this Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="IDdcb27fa1c9814b33a31acbcf7731f4ea" section-type="subsequent-section"><enum>212.</enum><header>Investment tax
credit for investments in nuclear power facilities</header>
<subsection commented="no" display-inline="no-display-inline" id="IDce1d88658195404f8c32c6871de8b647"><enum>(a)</enum><header>New credit for
nuclear power facilities</header><text display-inline="yes-display-inline">Section 46 is amended by—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID08f31cc9476946e39d99222fd22f35d0"><enum>(1)</enum><text display-inline="yes-display-inline">striking <quote>and</quote> at the end of
paragraph (1),</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID75c3b9844c754d8cb7c247283dce6421"><enum>(2)</enum><text display-inline="yes-display-inline">striking the period at the end of paragraph
(2) and inserting <quote>, and</quote>, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDd70cb2a87d86483ba297e5977279b693"><enum>(3)</enum><text display-inline="yes-display-inline">inserting after paragraph (2) the following
new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id8FB0AB0E2B9147D1B69E1ACFA5D78A57" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="ID0c80968019424a88831867f40fbfff88"><enum>(3)</enum><text display-inline="yes-display-inline">the nuclear power facility construction
credit.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID8ba242ef75264674bcfd94d8f4aebd62"><enum>(b)</enum><header>Nuclear power
facility construction credit</header><text display-inline="yes-display-inline">Subpart E of part IV of subchapter A of
chapter 1 is amended by inserting after section 48 the following new
section:</text>
<quoted-block display-inline="no-display-inline" id="idC7C7357E2AAC4965A586D83E043CBDA9" style="OLC">
<section commented="no" display-inline="no-display-inline" id="IDb0b9d18fd29e448db4d7fe7154a1e484" section-type="subsequent-section"><enum>48A.</enum><header>Nuclear power
facility construction credit</header>
<subsection commented="no" display-inline="no-display-inline" id="ID64d26e2c731e4f15b80b0f6af3331ea7"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">For purposes of
section 46, the nuclear power facility construction credit for any taxable year
is 10 percent of so much of the qualified nuclear power facility expenditures
paid or incurred by the taxpayer with respect to a qualified nuclear power
facility.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID5865263f16fb404f82042f516253cea5"><enum>(b)</enum><header>When
expenditures taken into account</header>
<paragraph commented="no" display-inline="no-display-inline" id="IDbe564ca3f55c49b5a6a70b1c3376964a"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Qualified nuclear
power facility expenditures shall be taken into account for the taxable year in
which the qualified nuclear power facility is placed in service.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID8dd96def5b824f46ba3505f01d3e9ecb"><enum>(2)</enum><header>Coordination
with subsection <enum-in-header>(c)</enum-in-header></header><text display-inline="yes-display-inline">The amount which would (but for this
paragraph) be taken into account under paragraph (1) with respect to any
qualified nuclear power facility shall be reduced (but not below zero) by any
amount of qualified nuclear power facility expenditures taken into account
under subsection (c) by the taxpayer or a predecessor of the taxpayer (or, in
the case of a sale and leaseback described in section 50(a)(2)(C), by the
lessee), to the extent any amount so taken into account has not been required
to be recaptured under section 50(a).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDda34597fb3f74678a9bcce8f424f0a29"><enum>(c)</enum><header>Progress
expenditures</header>
<paragraph commented="no" display-inline="no-display-inline" id="IDbac26270b0314dd59fc82b3fbc125958"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">A taxpayer may elect
to take into account qualified nuclear power facility expenditures.</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDd976690013a5461e9c7a4bac6440a2f8"><enum>(A)</enum><header>Self-constructed
property</header><text display-inline="yes-display-inline">In the case of a
qualified nuclear power facility which is a self-constructed facility, in the
taxable year for which such expenditures are properly chargeable to capital
account with respect to such facility.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID9b4c55fadd6a40d0bf95e110a33a54fa"><enum>(B)</enum><header>Acquired
facility</header><text display-inline="yes-display-inline">In the case of a
qualified nuclear facility which is not self-constructed property, in the
taxable year in which such expenditures are paid.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDff55c204580543b8bf656adf3a61dbc1"><enum>(2)</enum><header>Special rules
for applying paragraph (1)</header><text display-inline="yes-display-inline">For purposes of paragraph (1)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID1d49e9ea87064ab0b43bfb84ccaa5409"><enum>(A)</enum><header>Component
parts, etc</header><text display-inline="yes-display-inline">Property which is
not self-constructed property and which is to be a component part of, or is
otherwise to be included in, any facility to which this subsection applies
shall be taken into account in accordance with paragraph (1)(B).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDe1b2d0ae42e942adaa72e04f70f837ed"><enum>(B)</enum><header>Certain
borrowing disregarded</header><text display-inline="yes-display-inline">Any
amount borrowed directly or indirectly by the taxpayer on a nonrecourse basis
from the person constructing the facility for the taxpayer shall not be treated
as an amount expended for such facility.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDb8c020252d044dcf8887f8dd68d6b150"><enum>(C)</enum><header>Limitation for
facilities or components which are not self-constructed</header>
<clause commented="no" display-inline="no-display-inline" id="IDa04f7f09f2544cdba671d2bd6d38dc6b"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">In the case of a
facility or a component of a facility which is not self-constructed, the amount
taken into account under paragraph (1)(B) for any taxable year shall not exceed
the amount which represents the portion of the overall cost to the taxpayer of
the facility or component of a facility which is properly attributable to the
portion of the facility or component which is completed during such taxable
year.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID1b84a9602b054b5d81129cc48e1b1831"><enum>(ii)</enum><header>Carry-over of
certain amounts</header><text display-inline="yes-display-inline">In the case
of a facility or component of a facility which is not self-constructed, if for
the taxable year—</text>
<subclause commented="no" display-inline="no-display-inline" id="ID41053ecd5252429f9687729a0f235924"><enum>(I)</enum><text display-inline="yes-display-inline">the amount which (but for clause (i)) would
have been taken into account under paragraph (1)(B) exceeds the limitation of
clause (i), then the amount of such excess shall be taken into account under
paragraph (1)(B) for the succeeding taxable year, or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID709f5a5c66d440828a51afd4e05555e9"><enum>(II)</enum><text display-inline="yes-display-inline">the limitation of clause (i) exceeds the
amount taken into account under paragraph (1)(B), then the amount of such
excess shall increase the limitation of clause (i) for the succeeding taxable
year.</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID7964198d29424114aa7f06870496dc41"><enum>(D)</enum><header>Determination
of percentage of completion</header><text display-inline="yes-display-inline">The determination under subparagraph (C)(i)
of the portion of the overall cost to the taxpayer of the construction which is
properly attributable to construction completed during any taxable year shall
be made on the basis of engineering or architectural estimates or on the basis
of cost accounting records. Unless the taxpayer establishes otherwise by clear
and convincing evidence, the construction shall be deemed to be completed not
more rapidly than ratably over the normal construction period.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDb81f3c71d372424db4856be811638848"><enum>(E)</enum><header>No progress
expenditures for certain prior periods</header><text display-inline="yes-display-inline">No qualified nuclear facility expenditures
shall be taken into account under this subsection for any period before the
first day of the first taxable year to which an election under this subsection
applies.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID0a8941b193c849fb85566cbf384af9fe"><enum>(F)</enum><header>No progress
expenditures for property for year it is placed in service, etc</header><text display-inline="yes-display-inline">In the case of any qualified nuclear
facility, no qualified nuclear facility expenditures shall be taken into
account under this subsection for the earlier of—</text>
<clause commented="no" display-inline="no-display-inline" id="ID7562f4e0fde34b89be86bd3dbbea96ec"><enum>(i)</enum><text display-inline="yes-display-inline">the taxable year in which the facility is
placed in service, or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID7837d9b15c1541c3b5688e9d8487d4dd"><enum>(ii)</enum><text display-inline="yes-display-inline">the first taxable year for which recapture
is required under section 50(a)(2) with respect to such facility, or for any
taxable year thereafter.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID6fe9d6aab1a54f9cb01ca0d4899685c3"><enum>(3)</enum><header>Self-constructed</header><text display-inline="yes-display-inline">For purposes of this subsection—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDfcc88089bbd24a6e89562af6358257b0"><enum>(A)</enum><text display-inline="yes-display-inline">the term <term>self-constructed
facility</term> means any facility if it is reasonable to believe that more
than half of the qualified nuclear facility expenditures for such facility will
be made directly by the taxpayer, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDb247d9b5d64342b1857ffad2f89e44a3"><enum>(B)</enum><text display-inline="yes-display-inline">a component of a facility shall be treated
as not self-constructed if the cost of the component is at least 5 percent of
the expected cost of the facility and the component is acquired by the
taxpayer.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDc961e0bee5be477c87edc35207c82509"><enum>(4)</enum><header>Election</header><text display-inline="yes-display-inline">An election shall be made under this
section for a qualified nuclear power facility by claiming the nuclear power
facility construction credit for expenditures described in paragraph (1) on a
tax return filed by the due date for such return (taking into account
extensions). Such an election shall apply to the taxable year for which made
and all subsequent taxable years. Such an election, once made, may be revoked
only with the consent of the Secretary.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID5ce7af99be5041649cc629967fe10260"><enum>(d)</enum><header>Definitions and
special rules</header><text display-inline="yes-display-inline">For purposes of
this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID594680276ad94eafa2f56615ce974535"><enum>(1)</enum><header>Qualified
nuclear power facility</header><text display-inline="yes-display-inline">The
term <term>qualified nuclear power facility</term> means a nuclear power
facility, as defined in section 168(e)(8), the construction of which was
approved by the Nuclear Regulatory Commission on or before December 31, 2014,
and begun on or before December 31, 2020.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID9c6e78f4114c444aaceb58ec0d9d168d"><enum>(2)</enum><header>Qualified
nuclear power facility expenditures</header>
<subparagraph commented="no" display-inline="no-display-inline" id="ID363bd761f2ff4c89872f1bec3b6f6dd1"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">The term
<term>qualified nuclear power facility expenditures</term> means any amount
properly chargeable to capital account—</text>
<clause commented="no" display-inline="no-display-inline" id="ID09fedad68fb3486c877b11600a4cec2f"><enum>(i)</enum><text display-inline="yes-display-inline">with respect to a qualified nuclear power
facility,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID5f4d31326d7441ad9c66af082c3b6e7c"><enum>(ii)</enum><text display-inline="yes-display-inline">for which depreciation is allowable under
section 168, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDbc9bb99b656846e8acc598c94d59ed35"><enum>(iii)</enum><text display-inline="yes-display-inline">which are incurred before the qualified
nuclear power facility is placed in service or in connection with the placement
of such facility in service.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id2DD8BDE8233F4F33A1EB0A21D8367B02"><enum>(B)</enum><header>Limitation per
facility</header><text display-inline="yes-display-inline">The amount of
qualified nuclear power facility expenditures which may be taken into account
under subsection (a) with respect to any qualified nuclear power facility shall
not exceed $10,000,000.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID1cc3b31de2504665ac41764af55757d8"><enum>(C)</enum><header>Pre-effective
date expenditures</header><text display-inline="yes-display-inline">Qualified
nuclear power facility expenditures do not include any expenditures incurred by
the taxpayer before January 1, 2008, unless such expenditures constitute less
than 20 percent of the total qualified nuclear power facility expenditures
(determined without regard to this subparagraph) for the qualified nuclear
power facility.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID4dfe6a75529d496782ff7674f59024d8"><enum>(3)</enum><header>Delays and
suspension of construction</header>
<subparagraph commented="no" display-inline="no-display-inline" id="ID6bebde1a586a4776bdd7d15a914cdeb9"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">For purposes of
applying this section and section 50, a nuclear power facility that is under
construction shall cease to be treated as a facility that will be a qualified
nuclear power facility as of the earlier of—</text>
<clause commented="no" display-inline="no-display-inline" id="IDadb0d3f7bd1c4b9f8a03169b1d19fc82"><enum>(i)</enum><text display-inline="yes-display-inline">the date on which the taxpayer decides to
terminate construction of the facility, or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID24d60af8abcf4ffbb715a2e0d0b81d6e"><enum>(ii)</enum><text display-inline="yes-display-inline">the last day of any 24 month period in
which the taxpayer has failed to incur qualified nuclear power facility
expenditures totaling at least 20 percent of the expected total cost of the
nuclear power facility.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID9dab22e2ef16495893550e0494b7ba34"><enum>(B)</enum><header>Authority to
waive</header><text display-inline="yes-display-inline">The Secretary may waive
the application of clause (ii) of subparagraph (A) if the Secretary determines
that the taxpayer intended to continue the construction of the qualified
nuclear power facility and the expenditures were not incurred for reasons
outside the control of the taxpayer.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID5be247927ec8405da010923114563867"><enum>(C)</enum><header>Resumption of
construction</header><text display-inline="yes-display-inline">If a nuclear
power facility that is under construction ceases to be a qualified nuclear
power facility by reason of paragraph (2) and work is subsequently resumed on
the construction of such facility—</text>
<clause commented="no" display-inline="no-display-inline" id="IDe1a041c85bed4ad4b3925eb48b11cc24"><enum>(i)</enum><text display-inline="yes-display-inline">the date work is subsequently resumed shall
be treated as the date that construction began for purposes of paragraph (1),
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDab158a3a308e4805be7cf509a0b24e6e"><enum>(ii)</enum><text display-inline="yes-display-inline">if the facility is a qualified nuclear
power facility, the qualified nuclear power facility expenditures shall be
determined without regard to any delay or temporary termination of construction
of the
facility.</text>
</clause></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDd15f0b373d3d48028347c6b152fce08b"><enum>(c)</enum><header>Provisions
relating to credit recapture</header>
<paragraph commented="no" display-inline="no-display-inline" id="IDd2ea38d76c69473aa71c171cbaa94f4d"><enum>(1)</enum><header>Progress
expenditure recapture rules</header>
<subparagraph commented="no" display-inline="no-display-inline" id="IDdd54b3943fe846d086fd4ec54e15d26b"><enum>(A)</enum><header>Basic
rules</header><text display-inline="yes-display-inline">Subparagraph (A) of
section 50(a)(2) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idE45CECE893934B258A9C8AFA484EB85A" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="ID44c9d677a35047f2b44597da43429f3e"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">If during any taxable
year any building to which section 47(d) applied or any facility to which
section 48A(c) applied ceases (by reason of sale or other disposition,
cancellation or abandonment of contract, or otherwise) to be, with respect to
the taxpayer, property which, when placed in service, will be a qualified
rehabilitated building or a qualified nuclear power facility, then the tax
under this chapter for such taxable year shall be increased by an amount equal
to the aggregate decrease in the credits allowed under section 38 for all prior
taxable years which would have resulted solely from reducing to zero the credit
determined under this subpart with respect to such building or
facility.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDb7ac5414965e4532922f7434c3dad305"><enum>(B)</enum><header>Amendment to
excess credit recapture rule</header><text display-inline="yes-display-inline">Subparagraph (B) of section 50(a)(2) is
amended—</text>
<clause commented="no" display-inline="no-display-inline" id="IDbc6111e9d6604deda618bba89cd07bfa"><enum>(i)</enum><text display-inline="yes-display-inline">by inserting <quote>or paragraph (2) of
section 48A(b)</quote> after <quote>paragraph (2) of section
47(b)</quote>,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID19cc716768054acabff0650faddf488b"><enum>(ii)</enum><text display-inline="yes-display-inline">by inserting <quote>or section
48A(b)(1)</quote> after <quote>section 47(b)(1)</quote>, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDf339bfd7e88545d58eec9ff6f22b0922"><enum>(iii)</enum><text display-inline="yes-display-inline">by inserting <quote>or facility</quote>
after <quote>building</quote>.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID8193028a6f234ac19e0d3a1b08ad21e2"><enum>(C)</enum><header>Amendment of
sale and leaseback rule</header><text display-inline="yes-display-inline">Subparagraph (C) of section 50(a)(2) is
amended—</text>
<clause commented="no" display-inline="no-display-inline" id="ID217cc93e895c472b9263be48e99548b6"><enum>(i)</enum><text display-inline="yes-display-inline">by inserting <quote>or section
48A(c)</quote> after <quote>section 47(d)</quote>, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID7c9a2227e1b3482691b69fcd6a307ea3"><enum>(ii)</enum><text display-inline="yes-display-inline">by inserting <quote>or qualified nuclear
power facility expenditures</quote> after <quote>qualified rehabilitation
expenditures</quote>.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID07f8c45cae51426b86ef501f83062c61"><enum>(D)</enum><header>Conforming
amendment</header><text display-inline="yes-display-inline">Subparagraph (D) of
section 50(a)(2) is amended by inserting <quote>or section 48A(c)</quote> after
<quote>section 47(d)</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID75403b806c2343248e89839ed5d632eb"><enum>(d)</enum><header>No basis
adjustment</header><text display-inline="yes-display-inline">Section 50(c) is
amended by inserting at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="idE1CBA415C94C4A6ABFBEE54F74CB33E0" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="ID4e4ffe95d22949c5bf1d754c277a9383"><enum>(6)</enum><header>Nuclear power
facility construction credit</header><text display-inline="yes-display-inline">Paragraphs (1) and (2) shall not apply to
the nuclear power facility construction
credit.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDd210eebd038c4bcc9aaa2658f1d0cc24"><enum>(e)</enum><header>Technical
amendments</header><text display-inline="yes-display-inline">The table of
sections for subpart E of part IV of subchapter A of chapter 1 is amended by
inserting after the item for section 48 the following new item:</text>
<quoted-block display-inline="no-display-inline" id="id2c63e290-4639-4a6a-900f-c2303ad6ec64" style="OLC">
<toc>
<toc-entry bold="off" idref="IDb0b9d18fd29e448db4d7fe7154a1e484" level="section">Sec. 48A. Nuclear power facility construction
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID949419bfe830481398a35769241ce16b"><enum>(f)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section of this Act shall apply to expenditures incurred in taxable years
beginning after December 31, 2007.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="IDc72f084524474f49b3e724b1f3ac1073" section-type="subsequent-section"><enum>213.</enum><header>Tax-exempt financing
of nuclear power facilities</header>
<subsection commented="no" display-inline="no-display-inline" id="idD15BF2CF44C545D8B6298DF43025BEBA"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subsection (a) of
section 142 is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID197b94773c1f4f508d823981c133ec85"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>or</quote> at the end of
paragraph (13),</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDf24c68602ee34b2d9e7f58852569102c"><enum>(2)</enum><text display-inline="yes-display-inline">by striking the period at the end of
paragraph (14) and inserting <quote>, or</quote>, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDeac78d8bcdc344f1a7599f2b7f23e55c"><enum>(3)</enum><text display-inline="yes-display-inline">by inserting at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="idC908AE766BCC4C8698A674D4787CAD61" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="ID9271ef75ac674fc7ac19277998546446"><enum>(15)</enum><text display-inline="yes-display-inline">nuclear power
facility.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID9c34742dc11645edb2a53e5751c69731"><enum>(b)</enum><header>Definition</header><text display-inline="yes-display-inline">Section 142 is amended by inserting at the
end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="id2D5029C47E2E460B9227D3B74E23EDB1" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="IDed3f1c6ba21e4fc28c8a5c72a4d2bc6c"><enum>(m)</enum><header>Nuclear power
facility</header><text display-inline="yes-display-inline">For purposes of
subsection (a)(15), the term <quote>nuclear power facility</quote> means a
nuclear power facility (within the meaning of section 168(e)(8)) and any
nuclear fuel assemblies (within the meaning of section 168(e)(8)(B)) initially
included in any such
facility.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID9e9a5e64b9794aef9da5d0c780a7bf63"><enum>(c)</enum><header>Exemption from
volume cap</header><text display-inline="yes-display-inline">Paragraph (3) of
section 146(g) (exempting certain exempt facility bonds from the state volume
caps) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID69aa0de134cf465db4dca13b7d453431"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>or (14)</quote> and
inserting <quote>(14), or (15)</quote>, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID0a5e459fdd6b46c1a7397d1207c5a06b"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>and qualified green
building and sustainable design projects</quote> and inserting <quote>qualified
green building and sustainable design projects and nuclear power
facilities</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDbdf4432c6ff649f1910d75bf3f9509df"><enum>(d)</enum><header>Exemption from
alternative depreciation</header><text display-inline="yes-display-inline">Paragraph (5) of section 168(g) is amended
by inserting at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="id03DF41F1CF174B4B9CF5915080405098" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="IDb0c652175a8d48fda2f39b5296432101"><enum>(D)</enum><header>Nuclear power
facility</header><text display-inline="yes-display-inline">The term
<term>tax-exempt bond financed property</term> does not include any nuclear
power facility that is financed with bonds described in section
142(a)(15).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID299725336ac442c8b0fc4888b8940944"><enum>(e)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section of this Act shall apply with respect to bonds issued on or after
January 1, 2006, and before January 1, 2011.</text>
</subsection></section></subtitle><enum>III</enum><header>Research credits</header>
<section commented="no" display-inline="no-display-inline" id="ID58576D3D61EE47479F3F0837C2724D7E" section-type="subsequent-section"><enum>301.</enum><header>Sense of the Senate
regarding permanent extension of research credit</header><text display-inline="no-display-inline">It is the sense of the Senate that the
income tax credit for increasing research activities under section 41 of the
Internal Revenue Code of 1986 should be permanently extended, the rates of the
alternative incremental credit under such section should be increased, and an
alternative simplified credit for qualified research expenses should be
instituted.</text>
</section><enum>IV</enum><header>Sunset</header>
<section commented="no" display-inline="no-display-inline" id="id5A7BE9B5280F4DE1A9E315A90A53F467" section-type="subsequent-section"><enum>401.</enum><header>Sunset</header>
<subsection commented="no" display-inline="no-display-inline" id="idDF97ACEFB30347D8AB73BA5F5233EBC7"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">All provisions of,
and amendments made by, this Act shall not apply to taxable years beginning
after December 31, 2010.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id42FCE0D08D3B41B8AE1129685457301C"><enum>(b)</enum><header>Application of
certain laws</header><text display-inline="yes-display-inline">The Internal
Revenue Code of 1986 shall be applied and administered to taxable years
beginning after December 31, 2010, as if the provisions and amendments
described in subsection (a) had never been enacted.</text>
</subsection></section>