[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2401 Introduced in Senate (IS)]








109th CONGRESS
  2d Session
                                S. 2401

To amend the Internal Revenue Code of 1986 to extend certain energy tax 
                  incentives, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 13, 2006

  Mr. Grassley (for himself and Mr. Baucus) 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 extend certain energy tax 
                  incentives, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Alternative Energy 
Extender Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
             TITLE I--ENERGY INFRASTRUCTURE TAX INCENTIVES

Sec. 101. Extension of credit for electricity produced from certain 
                            renewable resources.
Sec. 102. Extension and expansion of credit to holders of clean 
                            renewable energy bonds.
Sec. 103. Extension and expansion of qualifying advanced coal project 
                            credit.
Sec. 104. Extension and expansion of qualifying gasification project 
                            credit.
                TITLE II--DOMESTIC FOSSIL FUEL SECURITY

Sec. 201. Extension of election to expense certain refineries.
        TITLE III--CONSERVATION AND ENERGY EFFICIENCY PROVISIONS

Sec. 301. Extension of energy efficient commercial buildings deduction.
Sec. 302. Extension of new energy efficient home credit.
Sec. 303. Extension of residential energy efficient property credit.
Sec. 304. Extension of credit for business installation of qualified 
                            fuel cells and stationary microturbine 
                            power plants.
Sec. 305. Extension of business solar investment tax credit.
          TITLE IV--ALTERNATIVE FUELS AND VEHICLES INCENTIVES

Sec. 401. Extension of excise tax provisions, income tax credits, and 
                            tariff duties.

             TITLE I--ENERGY INFRASTRUCTURE TAX INCENTIVES

SEC. 101. EXTENSION OF CREDIT FOR ELECTRICITY PRODUCED FROM CERTAIN 
              RENEWABLE RESOURCES.

    Section 45(d) of the Internal Revenue Code of 1986 (relating to 
qualified facilities) is amended by striking ``2008'' each place it 
appears and inserting ``2011''.

SEC. 102. EXTENSION AND EXPANSION OF CREDIT TO HOLDERS OF CLEAN 
              RENEWABLE ENERGY BONDS.

    (a) In General.--Section 54(m) of the Internal Revenue Code of 1986 
(relating to termination) is amended by striking ``2007'' and inserting 
``2010''.
    (b) Annual Volume Cap for Bonds Issued During Extension Period.--
Paragraph (1) of section 54(f) of the Internal Revenue Code of 1986 
(relating to limitation on amount of bonds designated) is amended to 
read as follows:
            ``(1) National limitation.--
                    ``(A) Initial national limitation.--With respect to 
                bonds issued after December 31, 2005, and before 
                January 1, 2008, there is a national clean renewable 
                energy bond limitation of $800,000,000.
                    ``(B) Annual national limitation.--With respect to 
                bonds issued after December 31, 2007, and before 
                January 1, 2011, there is a national clean renewable 
                energy bond limitation for each calendar year of 
                $800,000,000.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to bonds issued after the date of the enactment of this Act.

SEC. 103. EXTENSION AND EXPANSION OF QUALIFYING ADVANCED COAL PROJECT 
              CREDIT.

    (a) In General.--Section 48A(d)(3)(A) of the Internal Revenue Code 
of 1986 (relating to aggregate credits) is amended by striking 
``$1,300,000,000'' and inserting ``$1,800,000,000''.
    (b) Authorization of Additional Integrated Gasification Combined 
Cycle Projects.--Subparagraph (B) of section 48A(d)(3) of te Internal 
Revenue Code of 1986 (relating to aggregate credits) is amended to read 
as follows:
                    ``(B) Particular projects.--Of the dollar amount in 
                subparagraph (A), the Secretary is authorized to 
                certify--
                            ``(i) $800,000,000 for integrated 
                        gasification combined cycle projects the 
                        application for which is submitted during the 
                        period described in paragraph (2)(A)(i),
                            ``(ii) $500,000,000 for projects which use 
                        other advanced coal-based generation 
                        technologies the application for which is 
                        submitted during the period described in 
                        paragraph (2)(A)(i), and
                            ``(iii) $500,000,000 for integrated 
                        gasification combined cycle projects the 
                        application for which is submitted during the 
                        period described in paragraph (2)(A)(ii).''.
    (c) Application Period for Additional Projects.--Subparagraph (A) 
of section 48A(d)(2) of the Internal Revenue Code of 1986 (relating to 
certification) is amended to read as follows:
                    ``(A) Application period.--Each applicant for 
                certification under this paragraph shall submit an 
                application meeting the requirements of subparagraph 
                (B). An applicant may only submit an application--
                            ``(i) for an allocation from the dollar 
                        amount specified in clause (i) or (ii) of 
                        paragraph (3)(A) during the 3-year period 
                        beginning on the date the Secretary establishes 
                        the program under paragraph (1), and
                            ``(ii) for an allocation from the dollar 
                        amount specified in paragraph (3)(A)(iii) 
                        during the 3-year period beginning at the 
                        termination of the period described in clause 
                        (i).''.
    (d) Effective Date.--The amendments made by this section shall take 
effect as if included in the amendments made by section 1307 of the 
Energy Policy Act of 2005.

SEC. 104. EXTENSION AND EXPANSION OF QUALIFYING GASIFICATION PROJECT 
              CREDIT.

    (a) In General.--Section 48B(d)(1) of the Internal Revenue Code of 
1986 (relating to qualifying gasification project program) is amended 
by striking ``$350,000,000'' and inserting ``$850,000,000''.
    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in the amendments made by section 1307 of the 
Energy Policy Act of 2005.

                TITLE II--DOMESTIC FOSSIL FUEL SECURITY

SEC. 201. EXTENSION OF ELECTION TO EXPENSE CERTAIN REFINERIES.

    (a) In General.--Section 179C(c)(1) of the Internal Revenue Code of 
1986 (defining qualified refinery property) is amended--
            (1) by striking ``and before January 1, 2012'' in 
        subparagraph (B) and inserting ``and, in the case of any 
        qualified refinery described in subsection (d)(1), before 
        January 1, 2012'', and
            (2) by inserting ``if described in subsection (d)(1)'' 
        after ``of which'' in subparagraph (F)(i).
    (b) Conforming Amendment.--Subsection (d) of section 179C of the 
Internal Revenue Code of 1986 is amended to read as follows:
    ``(d) Qualified Refinery.--For purposes of this section, the term 
`qualified refinery' means any refinery located in the United States 
which is designed to serve the primary purpose of processing liquid 
fuel from--
            ``(1) crude oil, or
            ``(2) qualified fuels (as defined in section 45K(c)).''.
    (c) Effective Date.--The amendments made by this section shall take 
effect as if included in the amendment made by section 1323(a) of the 
Energy Policy Act of 2005.

        TITLE III--CONSERVATION AND ENERGY EFFICIENCY PROVISIONS

SEC. 301. EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.

    Section 179D(h) of the Internal Revenue Code of 1986 (relating to 
termination) is amended by striking ``2007'' and inserting ``2010''.

SEC. 302. EXTENSION OF NEW ENERGY EFFICIENT HOME CREDIT.

    (a) In General.--Subsection (g) of section 45L of the Internal 
Revenue Code of 1986 (relating to new energy efficient home credit) is 
amended to read as follows:
    ``(g) Termination.--This section shall not apply to--
            ``(1) any qualified new energy efficient home meeting the 
        energy saving requirements of subsection (c)(1) acquired after 
        December 31, 2010, and
            ``(2) any qualified new energy efficient home meeting the 
        energy saving requirements of paragraph (2) or (3) of 
        subsection (c) acquired after December 31, 2007.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in the amendments made by section 1332 of the 
Energy Policy Act of 2005.

SEC. 303. EXTENSION OF RESIDENTIAL ENERGY EFFICIENT PROPERTY CREDIT.

    Section 25D(g) of the Internal Revenue Code of 1986 (relating to 
termination) is amended by striking ``2007'' and inserting ``2010''.

SEC. 304. EXTENSION OF CREDIT FOR BUSINESS INSTALLATION OF QUALIFIED 
              FUEL CELLS AND STATIONARY MICROTURBINE POWER PLANTS.

    Sections 48(c)(1)(E) and 48(c)(2)(E) of the Internal Revenue Code 
of 1986 (relating to termination) are each amended by striking ``2007'' 
and inserting ``2010''.

SEC. 305. EXTENSION OF BUSINESS SOLAR INVESTMENT TAX CREDIT.

    Sections 48(a)(2)(A)(i)(II) and 48(a)(3)(A)(ii) of the Internal 
Revenue Code of 1986 (relating to termination) are each amended by 
striking ``2008'' and inserting ``2011''.

          TITLE IV--ALTERNATIVE FUELS AND VEHICLES INCENTIVES

SEC. 401. EXTENSION OF EXCISE TAX PROVISIONS, INCOME TAX CREDITS, AND 
              TARIFF DUTIES.

    (a) Biodiesel.--Sections 40A(g), 6426(c)(6), and 6427(e)(5)(B) of 
the Internal Revenue Code of 1986 are each amended by striking ``2008'' 
and inserting ``2010''.
    (b) Alternative Fuel.--
            (1) Fuels.--Sections 6426(d)(4) and 6427(e)(5)(C) of the 
        Internal Revenue Code of 1986 are each amended by striking 
        ``September 30, 2009'' and inserting ``December 31, 2010''.
            (2) Refueling property.--Section 30C(g) of such Code is 
        amended by striking ``2009'' and inserting ``2010''.
    (c) Ethanol Tariff Schedule.--Headings 9901.00.50 and 9901.00.52 of 
the Harmonized Tariff Schedule of the United States (19 U.S.C. 3007) 
are each amended in the effective period column by striking ``10/1/
2007'' each place it appears and inserting ``1/1/2011''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2007.
                                 <all>