[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1595 Introduced in Senate (IS)]








109th CONGRESS
  1st Session
                                S. 1595

  To amend the Internal Revenue Code of 1986 to provide for a 3-year 
    recovery period for depreciation of qualified energy management 
                                devices.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 29, 2005

 Ms. Cantwell introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to provide for a 3-year 
    recovery period for depreciation of qualified energy management 
                                devices.

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

SECTION 1. 3-YEAR APPLICABLE RECOVERY PERIOD FOR DEPRECIATION OF 
              QUALIFIED ENERGY MANAGEMENT DEVICES.

    (a) In General.--Section 168(e)(3)(A) of the Internal Revenue Code 
of 1986 (defining 3-year property) is amended by striking ``and'' at 
the end of clause (ii), by striking the period at the end of clause 
(iii) and inserting ``, and'', and by adding at the end the following 
new clause:
                            ``(iv) any qualified energy management 
                        device.''.
    (b) Definition of Qualified Energy Management Device.--Section 
168(i) of the Internal Revenue Code of 1986 (relating to definitions 
and special rules), as amended by the Energy Tax Incentives Act of 
2005, is amended by inserting at the end the following new paragraph:
            ``(18) Qualified energy management device.--
                    ``(A) In general.--The term `qualified energy 
                management device' means any energy management device--
                            ``(i) which is placed in service before 
                        January 1, 2008, by a taxpayer who is a 
                        supplier of electric energy or a provider of 
                        electric energy services,
                            ``(ii) the original use of which commences 
                        with the taxpayer, and
                            ``(iii) the purchase of which is subject to 
                        a binding contract entered into after June 23, 
                        2005, but only if there was no written binding 
                        contract entered into on or before such date.
                    ``(B) Energy management device.--For purposes of 
                subparagraph (A), the term `energy management device' 
                means any meter or metering device which is used by the 
                taxpayer--
                            ``(i) to measure and record electricity 
                        usage data on a time-differentiated basis in at 
                        least 4 separate time segments per day, and
                            ``(ii) to provide such data on at least a 
                        monthly basis to both consumers and the 
                        taxpayer.''.
    (c) Alternative System.--The table contained in section 
168(g)(3)(B) of the Internal Revenue Code of 1986 is amended by 
inserting after the item relating to subparagraph (A)(iii) the 
following:

 
 
 
``(A)(iv).................................................        20''.
 

''.    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2005, in taxable 
years ending after such date.
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