1.
This Act may be cited as the
Strategic Energy Fund Act of
2006
.
<enum>I</enum><header>Strategic Energy
Fund</header>
<subtitle id="id7A9C4778C1794AD49864954EB3EB721C"><enum>A</enum><header>Establishment of
Strategic Energy Fund</header>
<section id="idD4207BCFAB1D4A0F98F6C2EF73B0D9C2"><enum>101.</enum><header>Strategic
Energy Fund</header>
<subsection id="IDB8C02F2FDD4C4B54B7774F4271D73999"><enum>(a)</enum><header>In
general</header><text>Subchapter A of chapter 98 of the Internal Revenue Code
of 1986 (relating to trust fund code) is amended by adding at the end the
following new section:</text>
<quoted-block id="IDECCBBEE3A5484185B82F58526AD5ECB5">
<section id="IDE07E2B452AAF4246AC5DED3AC077A5E0"><enum>9511.</enum><header>Strategic
Energy Fund</header>
<subsection id="ID391707734B344D58B371ED0895B39225"><enum>(a)</enum><header>Establishment</header><text>There
is established in the Treasury of the United States a trust fund to be known as
the <quote>Strategic Energy Fund</quote>, consisting of such amounts as may be
appropriated or credited to such Fund as provided in this section or section
9602(b).</text>
</subsection><subsection id="IDBB7BA138018145CFB580FF7091700479"><enum>(b)</enum><header>Transfers to
Fund</header>
<paragraph id="id8F911067E6A7433E9B25BD3CFCE77F80"><enum>(1)</enum><header>In
general</header><text>There are hereby appropriated to the Strategic Energy
Fund amounts equivalent to the taxes received in the Treasury under section
5896.</text>
</paragraph><paragraph id="ID4FC461B502974E4DB9C993B36DB62D95"><enum>(2)</enum><header>Limitation</header><text>The
aggregate amount appropriated under this subsection shall not exceed—</text>
<subparagraph id="id59BCC2A6C7254D79A109B765F79A1145"><enum>(A)</enum><text>for purposes
described in subsection (c)(1)(A)—</text>
<clause id="id7DDE76023D30400CB6962E3EE789A5D0"><enum>(i)</enum><text>$1,000,000,000
during fiscal year 2007, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id13620E38EAD444FFB720AAFCAE5B636F"><enum>(ii)</enum><text>$2,000,000,000
during each of fiscal years 2008 through 2011, and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id3ECE5358F5D24E03BE2C2880FF7243C5"><enum>(B)</enum><text>for purposes
described in subsection (c)(1)(B), $350,000,000 for fiscal years 2007 through
2016.</text>
</subparagraph></paragraph></subsection><subsection id="idBBE3838D25E14E5684A666D451FC14A0"><enum>(c)</enum><header>Expenditures</header>
<paragraph id="id645A35CD549E4C4384EFC62AF35EBC62"><enum>(1)</enum><header>In
general</header><text>Amounts in the Strategic Energy Fund shall be available,
without further appropriation, to carry out—</text>
<subparagraph id="id7B74CD44370E44D3A4B8A5AF432B994C"><enum>(A)</enum><text>the purposes
authorized under section 161 of the <short-title>Strategic
Energy Fund Act of 2006</short-title>; and</text>
</subparagraph><subparagraph id="id0AC3ABBFFD30487CBD5447E1E29C1C5B"><enum>(B)</enum><text>projects under
section 1510 of the Energy Policy Act of 2005 (42 U.S.C. 16501) and section 212
of the Clean Air Act (42 U.S.C. 7546) that have a design capacity to produce,
in the aggregate, 1,000,000,000 gallons of cellulosic biomass, without regard
to section 1510(l) of the Energy Policy Act of 2005 (42 U.S.C. 16501(l))
.</text>
</subparagraph></paragraph><paragraph id="idBF58F1C716C844A1B46009CA8243CFEE"><enum>(2)</enum><header>Unexpended
funds</header><text>Any funds that have not been expended by September 30,
2016, shall be credited back to the general fund as miscellaneous tax
receipts.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID6F30AB65B9B941AD9A4B201211896D01"><enum>(b)</enum><header>Clerical
amendment</header><text>The table of sections for such subchapter is amended by
adding at the end the following new item:</text>
<quoted-block id="IDB6A4F8E9229841CB9DA21B1DBB8D7130" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 9511. Strategic Energy
Fund.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID7EE518C6E37E413A9077A10CC1D5F814"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on the
date of the enactment of this Act.</text>
</subsection></section></subtitle><subtitle id="id7FC324A8D18A42208B59E1E8977C003E"><enum>B</enum><header>Incentives to
accelerate biofuels availability</header>
<section id="id8E309C0EAE2C4009B583E0E3E890179A"><enum>111.</enum><header>Modification
of alternative fuel vehicle refueling property credit</header>
<subsection id="idD1F8F4AF17F94A19BD7E5FB617D3E260"><enum>(a)</enum><header>Increase in
credit amount</header><text>Section 30C of the Internal Revenue Code of 1986
(relating to alternative fuel vehicle refueling property credit) is
amended—</text>
<paragraph id="id99369AE9E6DD4CFD82CDAE6CF882A6E3"><enum>(1)</enum><text>by striking
<quote>30 percent</quote> in subsection (a) and inserting <quote>50
percent</quote>, and</text>
</paragraph><paragraph id="id79A3BD699AB647B18E9F58884F7A8642"><enum>(2)</enum><text>by striking
<quote>$30,000</quote> in subsection (b)(1) and inserting
<quote>$50,000</quote>.</text>
</paragraph></subsection><subsection id="idF59DBBA8461146A99E748CB4534D6427"><enum>(b)</enum><header>Credit allowed
for electric drive transportation property</header><text>Paragraph (1) of
section 30C(c) of the Internal Revenue Code of 1986 (relating to qualified
alternative fuel vehicle refueling property) is amended by striking <quote>,
but only with respect to any fuel</quote> and inserting <quote>, except that in
the case of property described in paragraph (3)(A) thereof, only with respect
to fuels</quote>.</text>
</subsection><subsection id="idF7E861EA66CB4AA291BF8F9419F374C6"><enum>(c)</enum><header>Extension of
credit</header><text>Subsection (g) section 30C of the Internal Revenue Code of
1986 (relating to termination) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idC3538485AC414988853184F219331376" style="OLC">
<subsection id="id840C65A83B734766A5F3E02F7B8E2687"><enum>(g)</enum><header>Termination of
availability of credit</header><text>This section shall not apply to property
placed in service after the earlier of December 31, 2014, or the date after
which more than 20,000 alternative refueling properties have been installed
through use of this
credit.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idCC8375E03A5B4B6AA5CC8C99A76E7E74"><enum>(d)</enum><header>Effective
date</header><text>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.</text>
</subsection></section><section id="ID296424ecac1e4b6baca8131189f1bd89"><enum>112.</enum><header>Extension of
biodiesel income and excise tax credits</header>
<subsection id="ID142e206aa6b340d19c023707d0e9f831"><enum>(a)</enum><header>In
general</header><text>Sections 40A(g), 6426(c)(6), and 6427(e)(5)(B) of the
Internal Revenue Code of 1986 are each amended by striking <quote>2008</quote>
and inserting <quote>2014</quote>.</text>
</subsection><subsection id="IDc61b416d7f6a4a8b93ea316e0e8c6fbd"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on
January 1, 2009.</text>
</subsection></section><section id="IDA4BBA634B27D4F9FA971D83B8B63F0FB"><enum>113.</enum><header>Small ethanol
producer credit expanded for producers of sucrose and cellulosic
ethanol</header>
<subsection id="ID487C061F8C564C8ABB01B7BAFFEE6051"><enum>(a)</enum><header>In
general</header><text>Subparagraph (C) of section 40(b)(4) of the Internal
Revenue Code of 1986 (relating to small ethanol producer credit) is amended by
inserting <quote>(30,000,000 gallons for any sucrose or cellulosic ethanol
producer)</quote> after <quote>15,000,000 gallons</quote>.</text>
</subsection><subsection id="IDF0894F8D305C41AB8DD76C91E36019C3"><enum>(b)</enum><header>Sucrose or
cellulosic ethanol producer</header><text>Section 40(b)(4) of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
subparagraph:</text>
<quoted-block id="ID526EDFD9342D4E3E9E02900A9FDD41AC" style="OLC">
<subparagraph id="ID3D0211510D6B486C8DEB91919CE2F131"><enum>(E)</enum><header>Sucrose or
cellulosic ethanol producer</header>
<clause id="IDAC373EC1F1364D7AABCE72FA27737C7F"><enum>(i)</enum><header>In
general</header><text>For purposes of this paragraph, the term <term>sucrose or
cellulosic ethanol producer</term> means a producer of ethanol using sucrose
feedstock or cellulosic feedstock.</text>
</clause><clause id="ID457A64129EA44AA2851F6034270D0E81"><enum>(ii)</enum><header>Sucrose
feedstock</header><text>For purposes of clause (i), the term <term>sucrose
feedstock</term> means any raw sugar, refined sugar, or sugar equivalents
(including juice and extract). Such term does not include any molasses, beet
thick juice, or other similar products as determined by the
Secretary.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDF0F8AEB22CCA421BA3BC2BC2ECE75A2D"><enum>(c)</enum><header>Conforming
amendments</header>
<paragraph id="ID1CDA504B905846AE890CBE8588D3818C"><enum>(1)</enum><text>Section 40(g)(2)
of the Internal Revenue Code of 1986 is amended by striking <quote>15,000,000
gallon limitation</quote> and inserting <quote>15,000,000 and 30,000,000 gallon
limitations</quote>.</text>
</paragraph><paragraph id="IDAE8800EBBDC84302BC9C4BF241B597EE"><enum>(2)</enum><text>Section
40(g)(5)(B) of such Code is amended by striking <quote>15,000,000
gallons</quote> and inserting <quote>the gallon limitation under subsection
(b)(4)(C)</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID3D7B59EC754E4C5B8DE904F5F02E1FAD"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after the date of the enactment of this Act.</text>
</subsection></section></subtitle><subtitle id="idCC6AE83ED8104FFA88CF4EFDA4E4A52E"><enum>C</enum><header>Incentives to
deployment of fuel-efficient vehicles</header>
<section id="ID6ede5accc5214c10917ccfe3c89f8ffd"><enum>121.</enum><header>Credit for
production of qualified flexible fuel vehicles</header>
<subsection id="IDf76ffe632c59474581eee2aac7fa0488"><enum>(a)</enum><header>In
general</header><text>Subpart D of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 (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="id33051937721E458484BA5198BF99C8D2" style="OLC">
<section id="ID0fa44bfb73f44bd6b8a8342695057f71"><enum>45N.</enum><header>Production of
qualified flexible fuel motor vehicles</header>
<subsection id="IDc0d172463fcf4cc38845bd4b00eaf72e"><enum>(a)</enum><header>Allowance of
credit</header><text>For purposes of section 38, in the case of a manufacturer,
the qualified flexible fuel motor vehicle production credit determined under
this section for any taxable year is an amount equal to the incremental
flexible fuel motor vehicle cost for each qualified flexible fuel motor vehicle
produced in the United States by the manufacturer during the taxable
year.</text>
</subsection><subsection id="idF42505CCED2C4F3CABD7BB842F2573AB"><enum>(b)</enum><header>Incremental
flexible fuel motor vehicle cost</header><text>With respect to any qualified
flexible fuel motor vehicle, the incremental flexible fuel motor vehicle cost
is an amount equal to the lesser of—</text>
<paragraph id="id4658B8377D1440B8B05447EA2CEB9C40"><enum>(1)</enum><text>the excess
of—</text>
<subparagraph id="id949DAE9C61264DA292C60B3E2BF579FE"><enum>(A)</enum><text>the cost of
producing such qualified flexible fuel motor vehicle, over</text>
</subparagraph><subparagraph id="id8AAC09EC09B3445190435CB2913529E4"><enum>(B)</enum><text>the cost of
producing such motor vehicle if such motor vehicle was not a qualified flexible
fuel motor vehicle, or</text>
</subparagraph></paragraph><paragraph id="id8FF9A791C0A24A01B56E5EB46DC793A5"><enum>(2)</enum><text>$150.</text>
</paragraph></subsection><subsection id="IDb2a3f73b6073499cb4295cbdac8a2f0f"><enum>(c)</enum><header>Qualified
flexible fuel motor vehicle</header><text>For purposes of this section, the
term <term>qualified flexible fuel motor vehicle</term> means a motor vehicle
(as defined under section 30(c)(2))—</text>
<paragraph id="IDd530a33e91574d1083a294029594a018"><enum>(1)</enum><text>the production of
which is not required for the manufacturer to meet—</text>
<subparagraph id="IDf5db5c3dfe4c4f418bb061842a6a3e33"><enum>(A)</enum><text>the maximum
credit allowable for vehicles described in paragraph (2) in determining the
fleet average fuel economy requirements (as determined under section 32904 of
title 49, United States Code) of the manufacturer for the model year ending in
the taxable year, or</text>
</subparagraph><subparagraph id="IDbc529299efdf46cbb056982b27733c0e"><enum>(B)</enum><text>the requirements
of any other provision of Federal law, and</text>
</subparagraph></paragraph><paragraph id="IDca4efe68c0204bf78ca51158e0e0d5fb"><enum>(2)</enum><text>which is designed
so that the vehicle is propelled by an engine which can use as a fuel a
petroleum mixture of which 85 percent (or another percentage of not less than
70 percent, as the Secretary may determine, by rule, to provide for
requirements relating to cold start, safety, or vehicle functions) of the
volume of consists of ethanol or biodiesel.</text>
</paragraph></subsection><subsection id="ID69cf3edc6bdf478d9b825e9599307608"><enum>(d)</enum><header>Other
definitions and special rules</header><text>For purposes of this
section—</text>
<paragraph id="ID01a22efbaab943b08ffbd15f5254de22"><enum>(1)</enum><header>Manufacturer</header><text>The
term <term>manufacturer</term> has the meaning given such term in regulations
prescribed by the Administrator of the Environmental Protection Agency for
purposes of the administration of title II of the Clean Air Act (42 U.S.C. 7521
et seq.).</text>
</paragraph><paragraph id="ID6257dd7aac294f94bafaa8856e6a6700"><enum>(2)</enum><header>Reduction in
basis</header><text>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 paragraph) result from
such expenditure shall be reduced by the amount of the credit so
allowed.</text>
</paragraph><paragraph id="ID3224eaee151049509ebc3def1855c9a0"><enum>(3)</enum><header>No double
benefit</header><text>The amount of any deduction or credit allowable under
this chapter (other than the credits allowable under this section and section
30B) shall be reduced by the amount of credit allowed under subsection (a) for
such vehicle for the taxable year.</text>
</paragraph><paragraph id="IDd72ff41e13f2459e9418ba90a6d69443"><enum>(4)</enum><header>Election not to
take credit</header><text>No credit shall be allowed under subsection (a) for
any vehicle if the taxpayer elects to not have this section apply to such
vehicle.</text>
</paragraph></subsection><subsection id="ID13a0ba4bc9e44d319db546797b33ee73"><enum>(e)</enum><header>Cross
reference</header><text>For an election to claim certain minimum tax credits in
lieu of the credit determined under this section, see section
53(e).</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDf61489e992de4cb288b61c4c0ff877e3"><enum>(b)</enum><header>Credit allowed
against the alternative minimum tax</header><text>Section 38(c)(4)(B) of the
Internal Revenue Code of 1986 (defining specified credits) is amended by
striking the period at the end of clause (ii)(II) and inserting <quote>,
and</quote>, and by adding at the end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="id9360B11D70024043A9F5E5A97A832BA2" style="OLC">
<clause id="ID5251389f80294a0f9ba085ccdcb410d3"><enum>(iii)</enum><text>the credit
determined under section
45N.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID6098cc25e81c4219ae5f9a3dad1ea2fc"><enum>(c)</enum><header>Election to use
additional amt credit</header><text>Section 53 of the Internal Revenue Code of
1986 (relating to credit for prior year minimum tax liability) is amended by
adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="idFE0132DB47F448F5B0BB2DCEF144F2A7" style="OLC">
<subsection id="ID6365b266b35f40bfbc6faad8a4318c98"><enum>(e)</enum><header>Additional
credit in lieu of flexible fuel motor vehicle credit</header>
<paragraph id="ID3a85bce294564b84ba03005de0fdb661"><enum>(1)</enum><header>In
general</header><text>In the case of a taxpayer making an election under this
subsection for a taxable year, the limitation under subsection (c) for such
taxable year shall be increased by the amount of the credit determined under
section 45N for such taxable year.</text>
</paragraph><paragraph id="IDee4fd38646bd4201a29f2ef5592b923c"><enum>(2)</enum><header>Election</header><text>A
taxpayer may make an election under this subsection for any taxable year only
if the taxpayer elects not to take the credit under section 45N for such
taxable year pursuant to section 45N(c)(4). Any election under this subsection
may not be revoked except with the consent of the Secretary.</text>
</paragraph><paragraph id="ID3a8243d7f70d4014a9d0a9c0ed0b7e38"><enum>(3)</enum><header>Credit
refundable</header><text>The aggregate increase in the credit under this
section for any taxable year by reason of this subsection shall for purposes of
this title (other than subsection (b)(2) of this section) be treated as a
credit allowed to the taxpayer under subpart
C.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID34f411a7b995440995697d2a80a908e4"><enum>(d)</enum><header>Conforming
amendments</header>
<paragraph id="idEC4E05318C474270A3E4ACF26E996B07"><enum>(1)</enum><text>Section 38(b) of
the Internal Revenue Code of 1986 is amended by striking <quote>and</quote> at
the end of paragraph (29), by striking the period at the end of paragraph (30)
and inserting <quote>, plus</quote>, and by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id115D98F1E5D54953B6BACEDB77D2FD5E" style="OLC">
<paragraph id="IDc68872d5a3f54d208881826dd9758470"><enum>(31)</enum><text>the qualified
flexible fuel motor vehicle production credit determined under section
45N(a).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id5C43164F73E7480891BA1D580CA33BF3"><enum>(2)</enum><text>Section 1016(a)
of such Code is amended by striking <quote>and</quote> at the end of paragraph
(36), by striking the period at the end of paragraph (37) and inserting
<quote>, and</quote>, and by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idCD8421AAAFAD4F2AA8B6F50E0E64A6E3" style="OLC">
<paragraph id="id717C9F92A5BB4D9DAA4E414D370D344A"><enum>(38)</enum><text>in the case of a
facility with respect to which a credit was allowed under section 45N, to the
extent provided in section
45N(d)(2).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID4ab03813154f413a8a49be55d16a986e"><enum>(e)</enum><header>Clerical
amendment</header><text>The table of sections for subpart D 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 item:</text>
<quoted-block display-inline="no-display-inline" id="id9CE5F61B48054DA68263FDC69B72CAEC" style="OLC">
<toc>
<toc-entry bold="off" level="section">Sec. 45N. Production of
qualified flexible fuel motor
vehicles.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID08da54e3c07b48f28521eabb20ee6b91"><enum>(f)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to motor
vehicles produced in model years ending after the date of the enactment of this
Act.</text>
</subsection></section><section id="id38B52848B62549FAAAAD60494AA0B241"><enum>122.</enum><header>Tax credit for
fuel-efficient fleets</header>
<subsection id="idF30A751B6CC14B8BA3162687E252848F"><enum>(a)</enum><header>In
general</header><text>Subpart E of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 is amended by inserting after section 48B the
following new section:</text>
<quoted-block display-inline="no-display-inline" id="idEB3D46F40B554C9AB7117B8EEDC94989" style="OLC">
<section id="idF357567DC2E1403BB4F6D3EA0E15C9B1"><enum>48C.</enum><header>Fuel-efficient
fleet credit</header>
<subsection id="idE54A4F7FD3F54612BDCBBB2F1A49325C"><enum>(a)</enum><header>General
rule</header><text>For purposes of section 46, the fuel-efficient fleet credit
for any taxable year is 15 percent of the qualified fuel-efficient vehicle
investment amount of an eligible taxpayer for such taxable year.</text>
</subsection><subsection id="id0C75620B94F14EAEBF6A38A922940C5D"><enum>(b)</enum><header>Vehicle
purchase requirement</header><text>In the case of any eligible taxpayer which
places less than 10 qualified fuel-efficient vehicles in service during the
taxable year, the qualified fuel-efficient vehicle investment amount shall be
zero.</text>
</subsection><subsection id="id8CEF7A6DE5AB4BA9A5D5669E80C6342C"><enum>(c)</enum><header>Qualified
fuel-efficient vehicle investment amount</header><text>For purposes of this
section—</text>
<paragraph id="id109C3344190A47439BFC1F9A84F1CB96"><enum>(1)</enum><header>In
general</header><text>The term <term>qualified fuel-efficient vehicle
investment amount</term> means the basis of any qualified fuel-efficient
vehicle placed in service by an eligible taxpayer during the taxable
year.</text>
</paragraph><paragraph id="idB5C204C7E45841429DE77234DDAED095"><enum>(2)</enum><header>Qualified
fuel-efficient vehicle</header>
<subparagraph id="id602D763F4810487DAB1B40BF5B414B08"><enum>(A)</enum><header>In
general</header><text>The term <term>qualified fuel-efficient vehicle</term>
means an vehicle which has a fuel economy which is at least 150 percent greater
than the average fuel economy standard for an vehicle of the same class and
model year.</text>
</subparagraph><subparagraph id="id89B47941796A4BD2A9076A4F9331D9E6"><enum>(B)</enum><header>Certain
vehicles excluded</header><text>Such term shall not include any vehicle for
which a credit is allowed to the eligible taxpayer under section 30 or
30B.</text>
</subparagraph></paragraph><paragraph id="idADD16679DBFD42FF9360B6C5B1B3026B"><enum>(3)</enum><header>Other
terms</header><text>The terms <quote>vehicle</quote>, <quote>average fuel
economy standard</quote>, <quote>fuel economy</quote>, and <quote>model
year</quote> have the meanings given to such terms under section 32901 of title
49, United States Code.</text>
</paragraph></subsection><subsection id="idEDAD1B40A6DC4BED8A7FAC96D5122F94"><enum>(d)</enum><header>Eligible
taxpayer</header><text>The term <term>eligible taxpayer</term> means, with
respect to any taxable year, a taxpayer who owns a fleet of 100 or more
vehicles which are used in the trade or business of the taxpayer on the first
day of such taxable year.</text>
</subsection><subsection id="id99327B466AFF477CA451E6BAD0658051"><enum>(e)</enum><header>Termination</header><text>This
section shall not apply to any vehicle placed in service after December 31,
2010.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="idAE564562B6EE40B596C0DA59997DEB9E"><enum>(b)</enum><header>Credit treated
as part of investment credit</header><text>Section 46 of the Internal Revenue
Code of 1986 is amended by striking <quote>and</quote> at the end of paragraph
(3), by striking the period at the end of paragraph (4) and inserting <quote>,
and,</quote> and by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="idE5FD9824B4DE4E29A9AAE80FE8FDD014" style="OLC">
<paragraph commented="no" id="id68E6295287D44E97A802577BFC1EBBE9"><enum>(5)</enum><text>the
fuel-efficient fleet
credit.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id565E75AF27E44AC19BD6A1B6AADC1D31"><enum>(c)</enum><header>Conforming
amendments</header>
<paragraph id="id7DDF69072B8D4E649A99B367BBEDA375"><enum>(1)</enum><text>Section
49(a)(1)(C) of the Internal Revenue Code of 1986 is amended by striking
<quote>and</quote> at the end of clause (iii), by striking the period at the
end of clause (iv) and inserting <quote>, and,</quote> and by adding at the end
the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="idAFB0076CF8854FB0A4B849BDAFA7EA94" style="OLC">
<clause id="id447BED7BDFDF48C39FD4B8E553B31519"><enum>(v)</enum><text>the basis of any
qualified fuel-efficient vehicle which is taken into account under section
48C.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="idB83272C7F42942868440617D43394C75"><enum>(2)</enum><text>The table of
sections for subpart E of part IV of subchapter A of chapter 1 of such Code is
amended by inserting after the item relating to section 48 the following new
item:</text>
<quoted-block display-inline="no-display-inline" id="id8B1E6014A65A49B1B747B91003F09954" style="OLC">
<toc>
<toc-entry bold="off" level="section">Sec. 48C. Fuel-efficient fleet
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id9DA7B854DB99401799D886CEA1F0B29F"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to periods
after December 31, 2005, in taxable years ending after such date, under rules
similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as
in effect on the day before the date of the enactment of the Revenue
Reconciliation Act of 1990).</text>
</subsection></section><section id="IDB0FB60EBB40F4A3D8AFD5063F6A5D92B"><enum>123.</enum><header>Advanced
technology motor vehicles manufacturing credit</header>
<subsection id="ID41D328F35E6A4716A6D02517200E5F32"><enum>(a)</enum><header>In
general</header><text>Subpart B of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 (relating to foreign tax credit, etc.) is amended
by adding at the end the following new section:</text>
<quoted-block id="ID522DC789252E4D83989813556A47BCE2" style="OLC">
<section id="ID4538E780AAF145D5B1CC82A5BC1E3B0F"><enum>30D.</enum><header>Advanced
technology motor vehicles manufacturing credit</header>
<subsection id="ID6A78004A06C44B35937F623E1F1E9C70"><enum>(a)</enum><header>Credit
allowed</header><text>There shall be allowed as a credit against the tax
imposed by this chapter for the taxable year an amount equal to 35 percent of
the qualified investment of an eligible taxpayer for such taxable year.</text>
</subsection><subsection id="ID96209B0628AF40C5A7C6E1D6E9C2F178"><enum>(b)</enum><header>Qualified
investment</header><text>For purposes of this section—</text>
<paragraph id="IDC13705D2FA714B3589FDF8A80A0F5E04"><enum>(1)</enum><header>In
general</header><text>The term <term>qualified investment</term> means, with
respect to any taxable year, the sum of—</text>
<subparagraph id="id351E61F3547747428D77B171D17B80A6"><enum>(A)</enum><text>the costs paid or
incurred by the eligible taxpayer during such taxable year—</text>
<clause id="id950F20DFDF7542FDAAB841200D45A6DC"><enum>(i)</enum><text>to re-equip,
expand, or establish any manufacturing facility of the eligible taxpayer to
produce advanced technology motor vehicles or to produce eligible components,
and</text>
</clause><clause id="ID29B38AE1517B446281ECCB5EC4673EDC"><enum>(ii)</enum><text>for qualified
research (as defined in section 41(d)) related to advanced technology motor
vehicles and eligible components, and</text>
</clause></subparagraph><subparagraph id="ID362C916747504842AAFC7756065E6CE1"><enum>(B)</enum><text>qualified
engineering integration costs.</text>
</subparagraph></paragraph><paragraph id="ID74E51E4393564786997AC0B1C6CB2A0E"><enum>(2)</enum><header>Attribution
rules</header><text>For purposes of paragraph (1)(A)(i), in the case of a
manufacturing facility of the eligible taxpayer which produces both advanced
technology motor vehicles and other motor vehicles, or eligible components and
other components, only the amount paid or incurred for the production of
advanced technology motor vehicles and eligible components shall be taken into
account.</text>
</paragraph></subsection><subsection id="ID605336970095478A9B47C9A84745CFFA"><enum>(c)</enum><header>Eligible
taxpayer</header><text>For purposes of this section, the term <term>eligible
taxpayer</term> means any taxpayer if more than 50 percent of its gross
receipts for the taxable year is derived from the manufacture of motor vehicles
or any component parts of such vehicles.</text>
</subsection><subsection id="IDAAA23EBDAE7B41C9B2701BA3A387EA18"><enum>(d)</enum><header>Definitions</header><text>For
purposes of this section—</text>
<paragraph id="ID0A0629BFDF00486693BC78CA801A5E60"><enum>(1)</enum><header>Advanced
technology motor vehicle</header><text>The term <term>advanced technology motor
vehicle</term> means—</text>
<subparagraph id="id142B3846EE0D41BDA8D992286B5DC570"><enum>(A)</enum><text>any new qualified
fuel cell motor vehicle (as defined in section 30B(b)(3)),</text>
</subparagraph><subparagraph id="IDE1BDB9929EC44D20A719ABB7F29EC60E"><enum>(B)</enum><text>any new advanced
lean burn technology motor vehicle (as defined in section 30B(c)(3)),</text>
</subparagraph><subparagraph id="IDBFEAA92E5E554C2EB5173A76587D7631"><enum>(C)</enum><text>any new qualified
hybrid motor vehicle (as defined in section 30B(d)(3)(A) and determined without
regard to any gross vehicle weight rating), and</text>
</subparagraph><subparagraph id="idADAE683765064636BEE74024C7F9628F"><enum>(D)</enum><text>any new qualified
alternative motor fuel vehicle (as defined in section 30B(e)(4)).</text>
</subparagraph></paragraph><paragraph id="idDA7EF13957864D269052F1856E13DC87"><enum>(2)</enum><header>Eligible
components</header><text>The term <term>eligible component</term> means any
component inherent to any advanced technology motor vehicle but not inherent to
a motor vehicle which is not an advanced technology motor vehicle,
including—</text>
<subparagraph id="ID05742CC96F3E4EFC9A1EE2D7695F0C79"><enum>(A)</enum><text>with respect to
any gasoline or diesel-electric new qualified hybrid motor vehicle, any—</text>
<clause id="IDD643FE7740CD41E7AA8DC267BC409DF9"><enum>(i)</enum><text>electric motor or
generator,</text>
</clause><clause id="ID413888AF184842A5B0DB3936DDCAF154"><enum>(ii)</enum><text>power split
device,</text>
</clause><clause id="ID1364E781B67E4284B991140D302A74C8"><enum>(iii)</enum><text>power control
unit,</text>
</clause><clause id="ID66A2E0E19A414632B4A1D278492D027F"><enum>(iv)</enum><text>power
controls,</text>
</clause><clause id="ID6D2910D5F48044828896B772BC4FE4A2"><enum>(v)</enum><text>integrated
starter generator, or</text>
</clause><clause id="ID833D388DBFE14CBCB7B5F788E11275B5"><enum>(vi)</enum><text>battery,</text>
</clause></subparagraph><subparagraph id="ID9A4ACC07DFB8416F85A11C83942F0904"><enum>(B)</enum><text>with respect to
any hydraulic new qualified hybrid motor vehicle, any—</text>
<clause id="ID244241F84F1D4050B7688E21B0777F0F"><enum>(i)</enum><text>hydraulic
accumulator vessel,</text>
</clause><clause id="ID77096666727C4F55A017DCB69211E3CF"><enum>(ii)</enum><text>hydraulic pump,
or</text>
</clause><clause id="ID5A8CD666FFDE40EAAB982105AF330598"><enum>(iii)</enum><text>hydraulic
pump-motor assembly,</text>
</clause></subparagraph><subparagraph id="ID994A6934523D42BBB6D98AB52FCB8DA3"><enum>(C)</enum><text>with respect to
any new advanced lean burn technology motor vehicle, any—</text>
<clause id="ID7D44B2BAC33F4FBCB853EB2AC5F7C21B"><enum>(i)</enum><text>diesel
engine,</text>
</clause><clause id="ID8C4E9F692E0D4C3585DD0BC20E79E267"><enum>(ii)</enum><text>turbocharger,</text>
</clause><clause id="ID3FA7572A19664B06A1983DD511B0790C"><enum>(iii)</enum><text>fuel injection
system, or</text>
</clause><clause id="ID31319A4ED0BB4875938765F4769A0AC9"><enum>(iv)</enum><text>after-treatment
system, such as a particle filter or NOx absorber, and</text>
</clause></subparagraph><subparagraph id="IDC96B239A62CD4B8587FA9BE99F796C1A"><enum>(D)</enum><text>with respect to
any advanced technology motor vehicle, any other component submitted for
approval by the Secretary.</text>
</subparagraph></paragraph><paragraph id="ID0AF46D856F61498D9728FD80AFEB567B"><enum>(3)</enum><header>Qualified
engineering integration costs</header><text>For purposes of subsection
(b)(1)(B), the term <term>qualified engineering integration costs</term> means,
with respect to any advanced technology motor vehicle, costs incurred prior to
the market introduction of such motor vehicle for engineering tasks related
to—</text>
<subparagraph id="IDA7CC2C8A1A2E412DAE86341BEC22A4D2"><enum>(A)</enum><text>establishing
functional, structural, and performance requirements for components and
subsystems to meet overall vehicle objectives for a specific
application,</text>
</subparagraph><subparagraph id="IDF6D6B3E8463F43528E97A5C14889A565"><enum>(B)</enum><text>designing
interfaces for components and subsystems with mating systems within a specific
vehicle application,</text>
</subparagraph><subparagraph id="IDC808627C18CE44A98CE28038F51569BC"><enum>(C)</enum><text>designing cost
effective, efficient, and reliable manufacturing processes to produce
components and subsystems for a specific vehicle application, and</text>
</subparagraph><subparagraph id="IDDD17C5CE348248189AA3853346511E76"><enum>(D)</enum><text>validating
functionality and performance of components and subsystems for a specific
vehicle application.</text>
</subparagraph></paragraph><paragraph id="id45F5D8847B3F4BB9BD9309EA74A561D3"><enum>(4)</enum><header>Motor
vehicle</header><text>The term <term>motor vehicle</term> has the meaning given
such term by section 30(c)(2).</text>
</paragraph></subsection><subsection id="IDBB58EA7751054D9C83B055734BE79B4F"><enum>(e)</enum><header>Limitation
based on amount of tax</header>
<paragraph id="idD24C0218F68C4944815B9AB267620C96"><enum>(1)</enum><header>In
general</header><text>The credit allowed under subsection (a) for any taxable
year shall not exceed the sum of—</text>
<subparagraph id="id17C84C1838D94F5AB94873AC1B272286"><enum>(A)</enum><text>the taxpayer's
regular tax liability (as defined in section 26(b)) for the taxable year,
plus</text>
</subparagraph><subparagraph id="id3D062EEC53814D6A9AA9D8406DAD2EFB"><enum>(B)</enum><text>the tax imposed
under section 55 for the taxable year.</text>
</subparagraph></paragraph><paragraph id="id8410ECE474214A4C87B4774A621E74EF"><enum>(2)</enum><header>Carryover of
unused credit amounts</header>
<subparagraph id="id3AF3F8DB956F4F7AB6074EA1EE094856"><enum>(A)</enum><header>In
general</header><text>If the credit allowable under subsection (a) for a
taxable year exceeds the limitation under paragraph (1) for such taxable year,
such excess shall be allowed—</text>
<clause id="id51A382F1DCF741769268FF5626BF3C12"><enum>(i)</enum><text>as a credit
carryback to each of the 13 taxable years preceding such year, and</text>
</clause><clause id="idB3335A3D697242A3B0DE3CCE0DC8E938"><enum>(ii)</enum><text>as a credit
carryforward to each of the 20 taxable years following such year.</text>
</clause></subparagraph><subparagraph id="idDDBCEBA7933544FEB514CFDBD20A90D8"><enum>(B)</enum><header>Amount carried
to each year</header><text>For purposes of this paragraph, rules similar to the
rules of section 39(a)(2) shall apply.</text>
</subparagraph></paragraph></subsection><subsection id="ID4D40A562F0714256BE0C811ED42BBB09"><enum>(f)</enum><header>Special
rules</header>
<paragraph id="IDE9DD6DC5FF844A1C90679FA2748D1D9D"><enum>(1)</enum><header>Reduction in
basis</header><text>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 paragraph) result from
such expenditure shall be reduced by the amount of the credit so
allowed.</text>
</paragraph><paragraph id="IDD8A2FCE97AB045689A1D13A48752D1B7"><enum>(2)</enum><header>Investments and
property outside the united states</header><text>No credit shall be allowed
under subsection (a) with respect to—</text>
<subparagraph id="ID74CE764F5EF34C729C367AD52D8D181B"><enum>(A)</enum><text>any manufacturing
facility which is located outside the United States, and</text>
</subparagraph><subparagraph id="ID81C2B0476EF94D9A8423993474C5ED8A"><enum>(B)</enum><text>any engineering
integration or research and development conducted outside the United
States.</text>
</subparagraph></paragraph><paragraph id="IDE07192BEF3A4404893E03F1F98495A27"><enum>(3)</enum><header>Aggregation of
expenditures; allocations</header><text>For purposes of this section, rules
similar to the rules of paragraphs (1) and (2) of section 41(f) shall
apply.</text>
</paragraph><paragraph id="idFB3EB4D195E34FA1AB3A045D42B21EE7"><enum>(4)</enum><header>Recapture</header><text>The
Secretary shall, by regulation, provide for recapturing the benefit of any
credit allowable under subsection (a) with respect to any manufacturing
facility which ceases to produce advanced technology motor vehicles or eligible
components.</text>
</paragraph><paragraph id="id594DB04FF6D4484DA2E6EDEF01441309"><enum>(5)</enum><header>Public
statement</header>
<subparagraph id="id95E22DC201EE4EB18DEA4666958F0C14"><enum>(A)</enum><header>In
general</header><text>No credit shall be allowed under subsection (a) for any
taxable year unless the eligible taxpayer makes publicly available a statement
describing the activities of the eligible taxpayer for which the credit is
allowed and the public benefits of such activities, including the estimated
amount of any reduction in national oil consumption in future years as a result
of such activities.</text>
</subparagraph><subparagraph id="id6899A3C6AC2A461CAFE654BD3B4BF63F"><enum>(B)</enum><header>Time for
publication</header><text>The statement required under subparagraph (A) shall
be made available not later than 90 days after the end of the taxable year for
which the credit under subsection (a) is allowed and shall be in such form as
the Secretary shall prescribe.</text>
</subparagraph></paragraph><paragraph id="IDD629BAD59EE14D8798B2909A67D9C5E9"><enum>(6)</enum><header>No double
benefit</header>
<subparagraph id="ID12BA88B7D2044842A9883FF7503A0371"><enum>(A)</enum><header>Coordination
with other deductions and credits</header><text>Except as provided in
subparagraph (B), the amount of any deduction or other credit allowable under
this chapter for any cost taken into account in determining the amount of the
credit under subsection (a) shall be reduced by the amount of such credit
attributable to such cost.</text>
</subparagraph><subparagraph id="IDEBE6D7AF965F4D959FCE74FDE7443735"><enum>(B)</enum><header>Research and
development costs</header>
<clause id="IDD1FBE4FBC1D54480831AD6108A20306D"><enum>(i)</enum><header>In
general</header><text>Except as provided in clause (ii), any amount described
in subsection (b)(1)(A)(ii) taken into account in determining the amount of the
credit under subsection (a) for any taxable year shall not be taken into
account for purposes of determining the credit under section 41 for such
taxable year.</text>
</clause><clause id="IDF8BB998349894D80B9411872AF3F93F6"><enum>(ii)</enum><header>Costs taken
into account in determining base period research expenses</header><text>Any
amounts described in subsection (b)(1)(A)(ii) taken into account in determining
the amount of the credit under subsection (a) for any taxable year which are
qualified research expenses (within the meaning of section 41(b)) shall be
taken into account in determining base period research expenses for purposes of
applying section 41 to subsequent taxable years.</text>
</clause></subparagraph></paragraph></subsection><subsection id="IDA8344882E2A748638154EC36D0C311B6"><enum>(g)</enum><header>Election not to
take credit</header><text>No credit shall be allowed under subsection (a) for
any property if the taxpayer elects not to have this section apply to such
property.</text>
</subsection><subsection id="IDA227BA5EC3BF4727BD7A09EC4CED406B"><enum>(h)</enum><header>Regulations</header><text>The
Secretary shall prescribe such regulations as necessary to carry out the
provisions of this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDF8EF929FF62C4C4480E155782416FE4C"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="ID629F68A03E1042738EF31F6B20F718AA"><enum>(1)</enum><text>Section 1016(a)
of the Internal Revenue Code of 1986, as amended by this Act, is amended by
striking <quote>and</quote> at the end of paragraph (37), by striking the
period at the end of paragraph (38) and inserting <quote>, and</quote>, and by
adding at the end the following new paragraph:</text>
<quoted-block id="ID7FAD9F8888A34A88B75DC305C03B3691" style="OLC">
<paragraph id="IDC3EA84A3535D443DA2AAB952EA2A20E5"><enum>(39)</enum><text>to the extent
provided in section
30D(f)(1).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID29DB01D2C90B462DB5344106A3DD3941"><enum>(2)</enum><text>Section 6501(m)
of such Code is amended by inserting <quote>30D(g),</quote> after
<quote>30C(e)(5),</quote>.</text>
</paragraph><paragraph id="ID35653230692E46E9B688EFB510DE336B"><enum>(3)</enum><text>The table of
sections for subpart B of part IV of subchapter A of chapter 1 of such Code is
amended by inserting after the item relating to section 30C the following new
item:</text>
<quoted-block id="IDFF4E89C79705497DB897DB954EB0C9C5" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 30D. Advanced technology motor
vehicles manufacturing
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID13E060614EA3410EAB6D7860C8BBCE78"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to amounts
incurred in taxable years beginning after December 31, 1993.</text>
</subsection></section></subtitle><subtitle id="id5333E8C086F443C28FEEA87B15B601F8"><enum>D</enum><header>Incentives for
clean power</header>
<section id="idDABEE0F335E94D61B9C420D77ED7D89F"><enum>131.</enum><header>Extension of
production tax credit for electricity produced from certain renewable
resources</header><text display-inline="no-display-inline">Section 45(d) of the
Internal Revenue Code of 1986 (relating to qualified facilities) is amended by
striking <quote>2008</quote> each place it appears and inserting
<quote>2018</quote>.</text>
</section><section id="id248F45580FA741E783BAB49E4C8CF9BA"><enum>132.</enum><header>Extension and
modification of investment tax credit with respect to solar energy property and
qualified fuel cell property</header>
<subsection id="id2A2C0A4C5F1E43DB8C02D2B67A496260"><enum>(a)</enum><header>Solar energy
property</header><text>Paragraphs (2)(A)(i)(II) and (3)(A)(ii) of section 48(a)
of the Internal Revenue Code of 1986 are each amended by striking
<quote>2008</quote> and inserting <quote>2015</quote>.</text>
</subsection><subsection id="id38117683CD774B0D86F8D407BBD8EE76"><enum>(b)</enum><header>Eligible fuel
cell property</header><text>Paragraph (1)(E) of section 48(c) of the Internal
Revenue Code of 1986 is amended by striking <quote>2007</quote> and inserting
<quote>2014</quote>.</text>
</subsection><subsection id="idF885B4631A834276978DE87D57145A8A"><enum>(c)</enum><header>Credits allowed
against the alternative minimum tax</header>
<paragraph id="idD46A8FC4009449A7AFA90F47ABE2B415"><enum>(1)</enum><header>In
general</header><text>Section 38(c)(4)(B) of the Internal Revenue Code of 1986
(defining specified credits), as amended by this Act, is amended by striking
the period at the end of clause (iii) and inserting <quote>, and,</quote> and
by adding at the end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="idCFD88C7F2A7D4BF08C0BE3CA4F0A0912" style="OLC">
<clause id="idFBF943C560C549F1A1239859A1C4B8D2"><enum>(iv)</enum><text>the portion of
the investment credit under section 46(2) as determined under section
48(a)(2)(A)(i).</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id3DE7E1FDD21E4D8F81E9784B371F0005"><enum>(2)</enum><header>Effective
date</header><text>The amendments made by this subsection shall apply to
taxable years beginning after December 31, 2005.</text>
</paragraph></subsection><subsection id="ID8B95D6B0A1844960834D3350A1685770"><enum>(d)</enum><header>Solar
Investment Credit Allowed for Public Utility Property</header>
<paragraph id="id82D9A78C1D044533AB3F3CBB1FA6B97A"><enum>(1)</enum><header>In
general</header><text>The second sentence of section 48(a)(3) of the Internal
Revenue Code of 1986 is amended by inserting <quote>(other than property
described in clause (i) or (ii) of subparagraph (A))</quote> before
<quote>shall not</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDBAB0079ED72F42D9B1A8D76661246921"><enum>(2)</enum><header>Effective
Date</header><text>The amendments made by this subsection shall apply to
periods after the date of the enactment of this Act, in taxable years ending
after such date, under rules similar to the rules of section 48(m) of the
Internal Revenue Code of 1986 (as in effect on the day before the date of the
enactment of the Revenue Reconciliation Act of 1990).</text>
</paragraph></subsection></section><section commented="no" id="idE1B69048E5304E19A7E1C15862132EED"><enum>133.</enum><header>Credit for
wind energy systems</header>
<subsection commented="no" id="id658C2544E75E483EAF9F7F83AFEDAA2F"><enum>(a)</enum><header>Residential</header>
<paragraph commented="no" id="id21450E937AA14015AA25668D089AF303"><enum>(1)</enum><header>In
general</header><text>Section 25D(a) of the Internal Revenue Code of 1986 is
amended by striking <quote>and</quote> at the end of paragraph (2), by striking
the period at the end of paragraph (3) and inserting <quote>, and</quote>, and
by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id3ADC5E227FF64F4AA0A2872FA55001DF" style="OLC">
<paragraph id="ID8DBD7D39F8A748CEA7CA80002FE00227"><enum>(4)</enum><text>30 percent of the
qualified small wind energy property expenditures made by the taxpayer during
such
year.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="id3242E10E655644D5B375F5EDBBD17845"><enum>(2)</enum><header>Limitation</header><text>Section
25D(b)(1) of the Internal Revenue Code of 1986 is amended by striking
<quote>and</quote> at the end of subparagraph (B), by striking the period at
the end of subparagraph (A) and inserting <quote>, and</quote>, and by adding
at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="idA25E0768FB4340E0985B99ABDBF4E40F" style="OLC">
<subparagraph id="IDBC92D61F1E094A329F91D4A7FD405514"><enum>(D)</enum><text>$500 with respect
to each half kilowatt of capacity (not to exceed $2,000) of qualifying wind
turbines for which qualified small wind energy property expenditures are
made.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="id9AC700099CE547C9972F594BC4AD80E3"><enum>(3)</enum><header>Qualified small
wind energy property expenditures</header><text>Section 25D(d) of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id267F5E128A184510A8826BAC5415AB1F" style="OLC">
<paragraph id="ID2FF5E9F734AF414AA5A1D4F2C0C042B9"><enum>(4)</enum><header>Qualified small
wind energy property expenditure</header>
<subparagraph id="idFB910476C2B64B3F8B54913D01F9D797"><enum>(A)</enum><header>In
general</header><text>The term <term>qualified wind energy property
expenditure</term> means an expenditure for property which uses a qualifying
wind turbine to generate electricity for use in connection with a dwelling unit
located in the United States and used as a residence by the taxpayer.</text>
</subparagraph><subparagraph id="IDcf6a282707324183aeaafe563541939c"><enum>(B)</enum><header>Qualifying wind
turbine</header><text>The term <term>qualifying wind turbine</term> means a
wind turbine of 100 kilowatts of rated capacity or less which meets the latest
performance rating standards published by the American Wind Energy Association
and which is used to generate electricity and carries at least a 5-year limited
warranty covering defects in design, material, or workmanship, and, for
property that is not installed by the taxpayer, at least a 5-year limited
warranty covering defects in
installation.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="idEFC710EF691B4C469F5ECFADA226D294"><enum>(b)</enum><header>Business</header><text>Section
48(a)(3)(A) of the Internal Revenue Code of 1986 (defining energy property) is
amended by striking <quote>or</quote> at the end of clause (iii), by adding
<quote>or</quote> at the end of clause (iv), and by inserting after clause (iv)
the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="idE52E1EFACB414EC89DC92B45390C56FC" style="OLC">
<clause commented="no" id="id9E68BC35102540FAB79D24194F9CBED0"><enum>(v)</enum><text>qualifying wind
turbine (as defined in section
25D(d)(B)),</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID6667780435C94DAE88DAB258012B90C9"><enum>(c)</enum><header>Effective
date</header><text>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.</text>
</subsection></section></subtitle><subtitle id="id25B093D34EF941F5B36F154AD05BFA42"><enum>E</enum><header>Incentives to
increase oil recovery using carbon sequestration</header>
<section id="HCC92B851C923422EB2E944169451F2A7" section-type="subsequent-section"><enum>141.</enum><header>Tax credit for
carbon dioxide captured from industrial sources and used in enhanced oil and
natural gas recovery</header>
<subsection id="H87D43C561BCA49839FB78DF4ADCA8302"><enum>(a)</enum><header>In
general</header><text>Subpart D of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 (relating to business 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="H3D79B4EFE31B45EC812E3BFD4705B7BF" style="OLC">
<section id="HF5E23CB2FF764CB7AC91433DC9C74041"><enum>45O.</enum><header>Credit for
carbon dioxide captured from industrial sources and used as a tertiary
injectant in enhanced oil and natural gas recovery</header>
<subsection id="H25F3AFFFBF8E4B05A46195BC007C8B00"><enum>(a)</enum><header>General
rule</header><text display-inline="yes-display-inline">For purposes of section
38, the captured carbon dioxide tertiary injectant credit for any taxable year
is an amount equal to the product of—</text>
<paragraph id="H89C81ADC3C7143B38C9CA286619C76D9"><enum>(1)</enum><text>the credit amount,
and</text>
</paragraph><paragraph id="H8016984DDEBC47EE8CE3F2BCB7551243"><enum>(2)</enum><text>the qualified
carbon dioxide captured from industrial sources and used as a tertiary
injectant in qualified enhanced oil and natural gas recovery which is
attributable to the taxpayer.</text>
</paragraph></subsection><subsection id="HA5362A114A7A41C9B0CA624D351C83B6"><enum>(b)</enum><header>Credit
amount</header><text>For purposes of this section—</text>
<paragraph id="HC0DFCC15FEC94C94925F28C49689887"><enum>(1)</enum><header>In
general</header><text>The credit amount is $0.75 per 1,000 standard cubic
feet.</text>
</paragraph><paragraph id="HD113CEA3ADE04B2287B2CCAED72CDD70"><enum>(2)</enum><header>Inflation
adjustment</header><text display-inline="yes-display-inline">In the case of any
taxable year beginning in a calendar year after 2007, there shall be
substituted for the $0.75 amount under paragraph (1) an amount equal to the
product of—</text>
<subparagraph id="H382DB68DAE824237B13F2290A42D4B79"><enum>(A)</enum><text display-inline="yes-display-inline">$0.75, multiplied by</text>
</subparagraph><subparagraph id="H6842CA44F1E44F6E927BEE7E97905F5"><enum>(B)</enum><text>the inflation
adjustment factor for such calendar year determined under section 43(b)(3)(B)
for such calendar year, determined by substituting <quote>2006</quote> for
<quote>1990</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="H0061877E3CF54F818E427E3B64CB355E"><enum>(c)</enum><header>Qualified carbon
dioxide</header><text>For purposes of this section—</text>
<paragraph id="HE84CD6BFBFDD4D3C9FFDF9298334451D"><enum>(1)</enum><header>In
general</header><text>The term <term>qualified carbon dioxide</term> means
carbon dioxide captured from an anthropogenic source that—</text>
<subparagraph id="H7B84409BC36D43F5AFF785089BF1040"><enum>(A)</enum><text>would otherwise be
released into the atmosphere as industrial emission of greenhouse gas,</text>
</subparagraph><subparagraph id="HC58A46A9B6F3445384D2EBDEAD37ABF4"><enum>(B)</enum><text>is measurable at
the source of capture,</text>
</subparagraph><subparagraph id="HCE4BBE218509471193C84CA227967281"><enum>(C)</enum><text>is compressed,
treated, and transported via pipeline,</text>
</subparagraph><subparagraph id="H1CB9E44A7B594CD8B8635CADC035B586"><enum>(D)</enum><text>is sold as a
tertiary injectant in qualified enhanced oil and natural gas recovery,
and</text>
</subparagraph><subparagraph id="H7B81C6F4246B40DF857E385FB4BBB7DA"><enum>(E)</enum><text>is permanently
sequestered in geological formations as a result of the enhanced oil and
natural gas recovery process.</text>
</subparagraph></paragraph><paragraph id="H125B14997C7544B2B73257ABB3143669"><enum>(2)</enum><header>Anthropogenic
source</header><text display-inline="yes-display-inline">An anthropogenic
source of carbon dioxide is an industrial source, including any of the
following types of plants, and facilities related to such plant—</text>
<subparagraph id="H9095F0D933F24BFBADA42D65B9F82942"><enum>(A)</enum><text display-inline="yes-display-inline">a coal and natural gas fired electrical
generating power station,</text>
</subparagraph><subparagraph id="HD26071BB5DFB4BB183E96BC2B53856A6"><enum>(B)</enum><text display-inline="yes-display-inline">a natural gas processing and treating
plant,</text>
</subparagraph><subparagraph id="H5579FFE844354C8DB8D92E5F90923EA0"><enum>(C)</enum><text display-inline="yes-display-inline">an ethanol plant,</text>
</subparagraph><subparagraph id="HE443BDEDF9A24678BEE468BF35A47FE1"><enum>(D)</enum><text display-inline="yes-display-inline">a fertilizer plant, and</text>
</subparagraph><subparagraph id="HA033AB7110424FE5AAD3AB62A758B04"><enum>(E)</enum><text>a chemical
plant.</text>
</subparagraph></paragraph><paragraph id="HA376A9C375C042A5A36024CB79AB42B5"><enum>(3)</enum><header>Definitions</header>
<subparagraph id="H7E8092FF16424FEABD095B3142334FB1"><enum>(A)</enum><header>Qualified
enhanced oil and natural gas recovery</header><text>The term <term>qualified
enhanced oil and natural gas recovery</term> has the meaning given such term by
section 43(c)(2).</text>
</subparagraph><subparagraph id="HB6B275B73C9846CABA9B55001C2288C1"><enum>(B)</enum><header>Tertiary
injectant</header><text>The term <term>tertiary injectant</term> has the same
meaning as when used within section 193(b)(1).</text>
</subparagraph></paragraph></subsection><subsection id="H7DC1B431575D4F57B3856D56F5F86E03"><enum>(d)</enum><header>Other
definitions and special rules</header><text>For purposes of this
section—</text>
<paragraph id="H2681E1EB7517454CBE74630050962129"><enum>(1)</enum><header>Only carbon
dioxide captured within the United States taken into
account</header><text>Sales shall be taken into account under this section only
with respect to qualified carbon dioxide of which is within—</text>
<subparagraph id="HB09BFD384843402C91A5ADA4DF4CFAF"><enum>(A)</enum><text>the United States
(within the meaning of section 638(1)), or</text>
</subparagraph><subparagraph id="H9DEEED622C4E4A34955D049B55AFCFFD"><enum>(B)</enum><text>a possession of
the United States (within the meaning of section 638(2)).</text>
</subparagraph></paragraph><paragraph id="H51C8A6ADDA624D7C82791DB4A528AA39"><enum>(2)</enum><header>Recycled carbon
dioxide</header><text>The term <quote>qualified carbon dioxide</quote> includes
the initial deposit of captured carbon dioxide used as a tertiary injectant.
Such term does not include carbon dioxide that is re-captured, recycled, and
re-injected as part of the enhanced oil and natural gas recovery
process.</text>
</paragraph><paragraph id="HBE91DF5EFA4F4A33B29B6DA3515C2DB"><enum>(3)</enum><header>Credit
attributable to taxpayer</header><text>Any credit under this section shall be
attributable to the person that captures, treats, compresses, transports and
sells the carbon dioxide for use as a tertiary injectant in enhanced oil and
natural gas recovery, except to the extent provided in regulations prescribed
by the
Secretary.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection display-inline="no-display-inline" id="H90F013324FAD48A996EF9E00C41C00DB"><enum>(b)</enum><header>Conforming
amendment</header><text>Section 38(b) of the Internal Revenue Code of 1986
(relating to general business credit), as amended by this Act, is amended by
striking <quote>plus</quote> at the end of paragraph (30), by striking the
period at the end of paragraph (31) and inserting <quote>, plus</quote>, and by
adding at the end of following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H5FC90DE844174AB48F7371193241F516" style="OLC">
<paragraph id="H0A552DB24A7146259D7686CFB7AEC15"><enum>(32)</enum><text display-inline="yes-display-inline">the captured carbon dioxide tertiary
injectant credit determined under section
45O(a).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HBEAD3BDDF74B42A1A55814C78B32539E"><enum>(c)</enum><header>Clerical
amendment</header><text>The table of sections for subpart B of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to
other 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="HF2EE887F0EA9441F9CA9E6BE2277EDF6" style="OLC">
<toc container-level="quoted-block-container" idref="H3D79B4EFE31B45EC812E3BFD4705B7BF" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="HF5E23CB2FF764CB7AC91433DC9C74041" level="section">Sec. 45O. Credit for carbon dioxide captured from industrial
sources and used as a tertiary injectant in enhanced oil and natural gas
recovery.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HB77DC11FC51F483900326C1C077060E2"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after the date of the enactment of this Act.</text>
</subsection></section></subtitle><subtitle id="idFEB3021791F942C589D6B3560A80006F"><enum>F</enum><header>Incentives for
energy efficient buildings</header>
<section commented="no" display-inline="no-display-inline" id="id9A91268560DF4CD78C67B66BFBEBDBE2" section-type="subsequent-section"><enum>151.</enum><header>Extension of energy
efficient commercial buildings deduction</header><text display-inline="no-display-inline">Section 179D(h) of the Internal Revenue Code
of 1986 (relating to termination) is amended by striking <quote>2007</quote>
and inserting <quote>2014</quote>.</text>
</section><section id="id017E65BBC4614B95A66A69EC47A3A3A8"><enum>152.</enum><header>Extension and
expansion of new energy efficient home credit</header>
<subsection id="id2F998A8715ED47F7869BE969E3EB4DF9"><enum>(a)</enum><header>Extension</header><text>Section
45L(g) of the Internal Revenue Code of 1986 (relating to termination) is
amended by striking <quote>2007</quote> and inserting
<quote>2014</quote>.</text>
</subsection><subsection id="idFED5034CA01F458D864F25151D93E1AE"><enum>(b)</enum><header>Inclusion of 30
percent homes</header>
<paragraph id="id8B4879F323054E5F9600D7C7CC02813A"><enum>(1)</enum><header>In
general</header><text>Section 45L(c) of the Internal Revenue Code of 1986
(relating to energy saving requirements) is amended—</text>
<subparagraph id="id4DF35C5BCB6B4E5E886CB2D8C1BB24C7"><enum>(A)</enum><text>by striking
<quote>or</quote> at the end of paragraph (2);</text>
</subparagraph><subparagraph id="idCA46823B574A4886B90EE129A0CAD86D"><enum>(B)</enum><text>by redesignating
paragraph (3) as paragraph (4); and</text>
</subparagraph><subparagraph id="id094CA19B656C45E0AC5B34F4B7346529"><enum>(C)</enum><text>by inserting
after paragraph (2) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id1E7410CA1D114490B44A86482E035CE5" style="OLC">
<paragraph id="idA8063880814F4DDDA6F678356C1A4A39"><enum>(3)</enum><text>certified—</text>
<subparagraph id="idF1065D7F2C1C4C7E830991CF7AF14DEF"><enum>(A)</enum><text>to have a level
of annual heating and cooling energy consumption which is at least 30 percent
below the annual level described in paragraph (1), and</text>
</subparagraph><subparagraph id="id7F856CB2CA414F888AD0972555BDAC2C"><enum>(B)</enum><text>to have building
envelope component improvements account for at least 1/3 of such 30 percent,
or.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id5F0D732650BD4F95818278F6FA61EE1A"><enum>(2)</enum><header>Applicable
amount of credit</header><text>Section 45L(a)(2) is amended by striking
<quote>paragraph (3)</quote> and inserting <quote>paragraph (3) or
(4)</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idE55975EFD8E142D79EDC0B95C58FD498"><enum>(3)</enum><header>Effective
date</header><text>The amendments made by this subsection shall apply to
qualified new energy efficient homes acquired after the date of the enactment
of this Act.</text>
</paragraph></subsection></section></subtitle><subtitle id="id718A5C8BADF6471A9953C5F6E2E67EC1"><enum>G</enum><header>Clean energy
research</header>
<section id="id5C1A669167C341A082240329C56E83AB"><enum>161.</enum><header>Assistant
Secretary for Advanced Energy Research, Technology Development, and
Deployment</header>
<subsection id="idA1E41EC9136D4CC8984A438B3BA8B065"><enum>(a)</enum><header>Establishment</header>
<paragraph id="id3AB71DB625704397A59AA014AE7981FA"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Secretary of
Energy shall establish in the Department of Energy the position of Assistant
Secretary for Advanced Energy Research, Technology Development, and Deployment
(referred to in this section as the <quote>Assistant Secretary</quote>), to be
headed by, and to report to, the Secretary.</text>
</paragraph><paragraph id="IDc8a6f5d614a341f495872eb101c13d55"><enum>(2)</enum><header>Qualifications</header><text>The
Assistant Secretary shall be an individual with—</text>
<subparagraph id="idB57EBAC753E14BABA15A482B8EB773FE"><enum>(A)</enum><text>an advanced
education degree in energy technology; and</text>
</subparagraph><subparagraph id="idFD6315331E0447E694822E9733B8F719"><enum>(B)</enum><text>substantial
commercial research and technology development and deployment
experience.</text>
</subparagraph></paragraph></subsection><subsection id="IDc9dc9c5d5b4a4ba19fd5c24b80b9b6b0"><enum>(b)</enum><header>Mission</header><text>The
mission of the Assistant Secretary is—</text>
<paragraph id="ID5368dccb77e24997b19d702e5844d2cf"><enum>(1)</enum><text>to implement an
innovative energy research, technology development, and deployment program
to—</text>
<subparagraph id="ID80adcd84c16c4a95a93fdf825037aac0"><enum>(A)</enum><text>increase national
security by significantly reducing petroleum and imported fuels
consumption;</text>
</subparagraph><subparagraph id="ID43cd39e4dc794865bc00906761b2dcf9"><enum>(B)</enum><text>significantly
improve the efficiency of electricity use and the reliability of the
electricity system; and</text>
</subparagraph><subparagraph id="IDc22d08ef6452494cbe2206eca456fbbe"><enum>(C)</enum><text>significantly
reduce greenhouse gas emissions; and</text>
</subparagraph></paragraph><paragraph id="ID3694fafd10f6406fb946cf477fcf4407"><enum>(2)</enum><text>to sponsor a
diverse portfolio of cutting-edge, high-payoff research, development, and
deployment projects to carry out the program.</text>
</paragraph></subsection><subsection id="IDC93E25EA4E584D65B7910A1D0E30D4ED"><enum>(c)</enum><header>Experimental
personnel authority</header><text>The Assistant Secretary may staff the office
of the Assistant Secretary primarily using a program of experimental use of
special personnel management authority in order to facilitate recruitment of
eminent experts in science or engineering for management of research and
development projects and programs administered by the Assistant Secretary under
similar terms and conditions as the authority is exercised under section 1101
of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999
(Public Law 105–261; 5 U.S.C. 3104 note), as determined by the Assistant
Secretary.</text>
</subsection><subsection id="ID46BA9D7FA01C4EEE879E87BEFF104465"><enum>(d)</enum><header>Transactions
other than contracts and grants</header><text>To carry out projects under this
section, the Assistant Secretary may enter into transactions to carry out
advanced research projects under this subsection under similar terms and
conditions as the authority is exercised under section 646(g) of the Department
of Energy Organization Act (42 U.S.C. 7256(g)).</text>
</subsection><subsection id="ID77A907A6784D4560AD49BD844E191986"><enum>(e)</enum><header>Prizes for
advanced technology achievements</header>
<paragraph id="id70424642D9BD48FA9187B35B245EF059"><enum>(1)</enum><header>In
general</header><text>Subject to paragraphs (2) through (4), the Assistant
Secretary may carry out a program to award cash prizes in recognition of
outstanding achievements in basic, advanced, and applied research, technology
development, and prototype development that have the potential to advance the
mission described in subsection (b) under similar terms and conditions as the
authority is exercised under section 1008 of the Energy Policy Act of 2005 (42
U.S.C. 16396).</text>
</paragraph><paragraph id="ID692b5ca6428240d6bb8bfaed31f82606"><enum>(2)</enum><header>Competition
requirements</header><text>In carrying out this subsection, the Assistant
Secretary shall—</text>
<subparagraph id="id1654A8DF7DAF4AB992BFA3651EE4954A"><enum>(A)</enum><text>use a competitive
process for the selection of recipients of cash prizes; and</text>
</subparagraph><subparagraph id="id2FF6A9AB54E2451DBD644FDEB764312B"><enum>(B)</enum><text>conduct
widely-advertised solicitation of submissions of research results, technology
developments, and prototypes.</text>
</subparagraph></paragraph><paragraph id="ID3b7ee7120e914a1ba058f6bf4de4c8f9"><enum>(3)</enum><header>Maximum amount
for all cash prizes</header><text>The total amount of all cash prizes awarded
for a fiscal year under this subsection may not exceed $50,000,000.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID262eb9b3b6ce45258f8ece8cc14f6557"><enum>(4)</enum><header>Maximum amount
of individual cash prizes</header><text>The amount of an individual cash prize
awarded under this subsection may not exceed $10,000,000 unless the amount of
the award is approved by the Secretary of Energy.</text>
</paragraph></subsection><subsection id="id68730CB54259477C9EAFEC369695C7B4"><enum>(f)</enum><header>Commercialization
of cellulosic biomass ethanol</header><text>Of the amounts that are made
available to carry out this section, the Assistant Secretary shall use not less
that $1,000,000,000 to conduct research and development to increase yields,
reduce production costs, and take other steps to accelerate the
commercialization of cellulosic biomass ethanol (as defined in section
211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)(1))).</text>
</subsection><subsection id="ID7a25003869684405b05918d91af71557"><enum>(g)</enum><header>Annual
reports</header><text>As soon as practicable after the end of each fiscal year
for which the Assistant Secretary receives funds under subsection (h), the
Assistant Secretary shall submit to the Committee on Energy and Natural
Resources of the Senate and the Committee on Energy and Commerce, and the
Committee on Science, of the House of Representatives a report on the progress,
challenges, future milestones, and strategic plan of the Assistant Secretary,
including—</text>
<paragraph id="id416C58E7EB9D4BB999ADFC299E6A047E"><enum>(1)</enum><text>a description of,
and rationale for, any changes in the strategic plan;</text>
</paragraph><paragraph id="idF172F529DD084171ADD8B46562191AE7"><enum>(2)</enum><text>the adequacy of
human and financial resources necessary to achieve the mission described in
subsection (b); and</text>
</paragraph><paragraph id="ID8df4726419444cff8307adba8cef94ad"><enum>(3)</enum><text>in the case of
cash prizes awarded under subsection (e), a description of—</text>
<subparagraph id="ID68134254720d4e5b980c100489d46f1a"><enum>(A)</enum><text>the applications
of the research, technology, or prototypes for which prizes were
awarded;</text>
</subparagraph><subparagraph id="IDe3c1be0d7bb44984ae0c2375858f0594"><enum>(B)</enum><text>the total amount
of the prizes that were awarded;</text>
</subparagraph><subparagraph id="ID02f6b3d5f2854c9197d2c809bef6b795"><enum>(C)</enum><text>the methods used
for solicitation and evaluation of submissions and an assessment of the
effectiveness of those methods; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID4f843367838c4e358f60b97467eb0e68"><enum>(D)</enum><text>recommendations
to improve the prize program.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID7dc1547e32394504a5edf3b01b5a56be"><enum>(h)</enum><header> Relationship
to other authority</header><text>The program under this section may be carried
out in conjunction with, or in addition to, the exercise of any other authority
of the Assistant Secretary to acquire, support, or stimulate basic, advanced,
and applied research, technology development, or prototype projects.</text>
</subsection></section></subtitle><enum>II</enum><header>Realigning oil
company incentives</header>
<subtitle id="id6334A441751F426FB28A0107317C5E98"><enum>A</enum><header>Excess oil
profits</header>
<section id="H142D1607341D4F39A9E5BBEF8E19CB5"><enum>201.</enum><header>Temporary oil
profit fee</header>
<subsection id="H4492C98DE6724572BF91AE740175FB9E"><enum>(a)</enum><header>In
general</header><text>Subtitle E of the Internal Revenue Code of 1986 (relating
to alcohol, tobacco, and certain other excise taxes) is amended by adding at
the end the following new chapter:</text>
<quoted-block display-inline="no-display-inline" id="id75ED6C90CC0F4267B55363D4492897AD" style="OLC">
<chapter id="H0CE021CDDF5D40A3B2F5BDDB7CFE828F"><enum>56</enum><header>Temporary fee on
excess oil profit</header>
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 5896. Imposition of
fee.</toc-entry>
<toc-entry level="section">Sec. 5897. Excess profit;
etc.</toc-entry>
<toc-entry level="section">Sec. 5898. Special rules and
definitions.</toc-entry>
</toc>
<section id="H5981C706013A4EFA994CC4E0C8CDE9C"><enum>5896.</enum><header>Imposition of
fee</header>
<subsection id="H6316B48CC3724603A58F5EFF955D1851"><enum>(a)</enum><header>In
general</header><text>In addition to any other tax imposed under this title,
there is hereby imposed on any applicable taxpayer an excise fee in an amount
equal to 50 percent of the excess profit of such taxpayer for any taxable year
beginning during 2006 or 2007.</text>
</subsection><subsection id="id4D0D2AE2A60648A895CEF31A621C4AE5"><enum>(b)</enum><header>Applicable
taxpayer</header><text>For purposes of this chapter, the term <term>applicable
taxpayer</term> means, with respect to operations in the United States—</text>
<paragraph id="id103F633E21B746D798657F64E0BF8C59"><enum>(1)</enum><text>any integrated
oil company (as defined in section 291(b)(4)), and</text>
</paragraph><paragraph id="id0D642763A1EB4810A78FA85250838C98"><enum>(2)</enum><text>any other
producer or refiner of crude oil with gross receipts from the sale of such
crude oil or refined oil products for the taxable year exceeding
$100,000,000.</text>
</paragraph></subsection></section><section id="id49F86AB714DE4C7BAF4334E11628A036"><enum>5897.</enum><header>Excess
profit; etc</header>
<subsection id="id717089812C354D5185FBBE1FBDAC6EEA"><enum>(a)</enum><header>General
rule</header><text>For purposes of this chapter, the term <term>excess
profit</term> means the excess of the adjusted taxable income of the applicable
taxpayer for the taxable year over the reasonably inflated average profit for
such taxable year.</text>
</subsection><subsection id="id13B3CA3D8DD543B2B77006FCF57E3428"><enum>(b)</enum><header>Adjusted
taxable income</header><text>For purposes of this chapter, with respect to any
applicable taxpayer, the adjusted taxable income for any taxable year is equal
to the taxable income for such taxable year (within the meaning of section 63
and determined without regard to this subsection)—</text>
<paragraph id="id935CA599BED94AA7BDCAA17694B486ED"><enum>(1)</enum><text>increased by any
interest expense deduction, charitable contribution deduction, and any net
operating loss deduction carried forward from any prior taxable year,
and</text>
</paragraph><paragraph id="idF1162BA94A104216B3A0674AA3981C6A"><enum>(2)</enum><text>reduced
by—</text>
<subparagraph id="id9124CD876B95447EB74753B007465811"><enum>(A)</enum><text>any interest
income, dividend income, and net operating losses to the extent such losses
exceed taxable income for the taxable year, and</text>
</subparagraph><subparagraph id="idF792F7AB63054432B0247A19DD54233D"><enum>(B)</enum><text>any qualified
domestic energy investment for such taxable year.</text>
</subparagraph></paragraph><continuation-text continuation-text-level="subsection">In the
case of any applicable taxpayer which is a foreign corporation, the adjusted
taxable income shall be determined with respect to such income which is
effectively connected with the conduct of a trade or business in the United
States.</continuation-text></subsection><subsection id="id5E38A64FB59441AC99807053B53B1614"><enum>(c)</enum><header>Reasonably
inflated average profit</header><text>For purposes of this chapter, with
respect to any applicable taxpayer, the reasonably inflated average profit for
any taxable year is an amount equal to the average of the adjusted taxable
income of such taxpayer for taxable years beginning during the 2000–2004
taxable year period (determined without regard to the taxable year with the
highest adjusted taxable income in such period) plus 10 percent of such
average.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id3B890BC32B824416BDCEECBBA075DDE9"><enum>(d)</enum><header>Qualified
domestic energy investment</header><text display-inline="yes-display-inline">For purposes of this chapter, the term
<term>qualified domestic energy investment</term> means any amount paid or
incurred with respect to—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id133534192A0C452F96CBEDC616FECBDB"><enum>(1)</enum><text display-inline="yes-display-inline">qualified refinery property (as defined in
section 179C(c) and determined without regard to any termination date),</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id477421100FBE4DFE8CA3BEDA4EF57D9F"><enum>(2)</enum><text display-inline="yes-display-inline">any qualified facility described in
paragraph (1), (2), (3), or (4) of section 45(d) (determined without regard to
any placed in service date), and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id377689372FC34787B54D775B0DB60394"><enum>(3)</enum><text display-inline="yes-display-inline">any facility for the production of alcohol
used as a fuel (within the meaning of section 40) or biodiesel or
agri-biodiesel used as a fuel (within the meaning of section 40A).</text>
</paragraph></subsection></section><section id="idB7956C1B641D4D09B0592F282BD7B532"><enum>5898.</enum><header>Special rules
and definitions</header>
<subsection id="IDa95e81d74ff942f29f00b909bf825120"><enum>(a)</enum><header>Withholding and
deposit of fee</header><text>The Secretary shall provide such rules as are
necessary for the withholding and deposit of the fee imposed under section
5896.</text>
</subsection><subsection id="IDb2c30bea4cb94632bac2e42e5f8ab8c6"><enum>(b)</enum><header>Records and
information</header><text>Each taxpayer liable for the fee under section 5896
shall keep such records, make such returns, and furnish such information as the
Secretary may by regulations prescribe.</text>
</subsection><subsection id="idDD11EB19B6FA4EC2975BE6A4A5696BD0"><enum>(c)</enum><header>Return of
fee</header><text>The Secretary shall provide for the filing and the time of
such filing of the return of the fee imposed under section 5896.</text>
</subsection><subsection id="IDa00341c0af1043d99d907ac0b74febdd"><enum>(d)</enum><header>Crude
oil</header><text>The term <term>crude oil</term> includes crude oil
condensates and natural gasoline.</text>
</subsection><subsection id="id64B608CA813747D0BA1F991280530E8E"><enum>(e)</enum><header>Businesses
under common control</header><text>For purposes of this chapter, all members of
the same controlled group of corporations (within the meaning of section
267(f)) and all persons under common control (within the meaning of section
52(b) but determined by treating an interest of more than 50 percent as a
controlling interest) shall be treated as 1 person.</text>
</subsection><subsection id="ID95aba55935d8461ba2065c0527bba675"><enum>(f)</enum><header>Regulations</header><text>The
Secretary shall prescribe such regulations as may be necessary or appropriate
to carry out the purposes of this
chapter.</text>
</subsection></section></chapter><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H7C153EBF60E64961AA43B8C8DAFAFBD"><enum>(b)</enum><header>Clerical
amendment</header><text>The table of chapters for subtitle E of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
item:</text>
<quoted-block display-inline="no-display-inline" id="HB594E0669CBE4A1B8186E687E420C4F7" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="chapter">Chapter 56. Temporary fee on excess oil
profit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID2cd7dbf5706c4dda8a6236dc39b94a94"><enum>(c)</enum><header>Deductibility
of fee</header><text>The first sentence of section 164(a) of the Internal
Revenue Code of 1986 (relating to deduction for taxes) is amended by inserting
after paragraph (5) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id745702250BC2449E9DD3E0EC5647A0D9" style="OLC">
<paragraph id="IDe806831dd142469eace6e9bd46f5d094"><enum>(6)</enum><text>The fee imposed
by section
5896.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section></subtitle><subtitle id="id3517C37BAE91406C987D148CB45F9580"><enum>B</enum><header>Energy fairness
for America</header>
<section id="IDb37c9d819cb34ba7bcf18962bf59bf08"><enum>211.</enum><header>Elimination of
deduction for intangible drilling and development costs for major oil
companies</header>
<subsection id="ID07aab70d7b984800bdfa2ef1c1656fa0"><enum>(a)</enum><header>In
general</header><text>Section 263(c) of the Internal Revenue Code of 1986 is
amended by adding at the end the following new sentences: <quote>This
subsection shall not apply during any taxable year with respect to an
applicable taxpayer (as defined in section 5896(b)) if during the preceding
taxable year for the production of oil, the average price of crude oil in the
United States is greater than $34.71 per barrel, and for the production of
natural gas, the average wellhead price of natural gas in the United States is
greater than $4.34 per 1,000 cubic feet. For purposes of the preceding
sentence, the Secretary shall determine average prices, taking into
consideration the most recent data reported by the Energy Information
Administration. For taxable years beginning after December 31, 2007, each
dollar amount specified in this subsection shall be adjusted to reflect changes
for the 12-month period ending the preceding September 30 in the Consumer Price
Index for All Urban Consumers published by the Bureau of Labor Statistics of
the Department of Labor.</quote></text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID07e9ee927efa430c986e646ddde99269"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to taxable
years beginning after the date of the enactment of this Act.</text>
</subsection></section><section id="ID01fbf281fb0b4fdd878660d465f1ba2a"><enum>212.</enum><header>Oil and gas
royalty-related amendments</header>
<subsection id="ID8ae6e2b67b1a4690ae147350a7b5fd6f"><enum>(a)</enum><header>Repeal</header><text>Sections
344 through 346 of the Energy Policy Act of 2005 (42 U.S.C. 15902 et seq.) are
repealed.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDeb2b6f344a774fc88d8d86615c282dc4"><enum>(b)</enum><header>Termination of
Alaska offshore royalty suspension</header><text>Section 8(a)(3)(B) of the
Outer Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)(B)) is amended by
striking <quote>and in the Planning Areas offshore Alaska</quote>.</text>
</subsection></section><section id="idEAC4605BDDC0470189FD9405D3A3605D"><enum>213.</enum><header>Extension of
election to expense certain refineries</header>
<subsection id="idEB8E452CD73B4EABA72EFC57B0005C30"><enum>(a)</enum><header>Extension</header>
<paragraph id="id6F7BFE9A5F0D4A8AA7812D1086F6B48F"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 179C(c)(1) of
the Internal Revenue Code of 1986 (defining qualified refinery property) is
amended—</text>
<subparagraph id="id68F9B57FD36B43C3A509CA4F6E6E2E79"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>and before January 1,
2012</quote> in subparagraph (B) and inserting <quote>and, in the case of any
qualified refinery described in subsection (d)(1), before January 1,
2012</quote>, and</text>
</subparagraph><subparagraph id="idFAC37D79F0CE40B18C99C66190FCA619"><enum>(B)</enum><text>by inserting
<quote>if described in subsection (d)(1)</quote> after <quote>of which</quote>
in subparagraph (F)(i).</text>
</subparagraph></paragraph><paragraph id="id88455AA1BBBF4F448AA687E34930FB10"><enum>(2)</enum><header>Conforming
amendment</header><text>Subsection (d) of section 179C of the Internal Revenue
Code of 1986 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idD64284D31CF2445094C819250FABAB55" style="OLC">
<subsection id="id3B39DD0C9B4B411EBD2DCDF0BE8313CB"><enum>(d)</enum><header>Qualified
refinery</header><text>For purposes of this section, the term <term>qualified
refinery</term> means any refinery located in the United States which is
designed to serve the primary purpose of processing liquid fuel from—</text>
<paragraph id="id4D08BD3DDA7342E5BC6A36817B240D1A"><enum>(1)</enum><text>crude oil,
or</text>
</paragraph><paragraph id="id0926F2502E2740FB972AEB1B7EB8FFCE"><enum>(2)</enum><text>qualified fuels
(as defined in section
45K(c)).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id753B6DF080724E80A93272A8C9AC076A"><enum>(3)</enum><header>Effective
date</header><text>The amendments made by this subsection shall take effect as
if included in the amendment made by section 1323(a) of the Energy Policy Act
of 2005.</text>
</paragraph></subsection><subsection id="id09C3D64D58DD4C66A05BC1702FB0DD9A"><enum>(b)</enum><header>Nonapplication
for major oil companies</header>
<paragraph id="id4DF8D910123E4145A72266E1DAEEE63B"><enum>(1)</enum><header>In
general</header><text>Section 179C of the Internal Revenue Code of 1986 is
amended by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="idCCCA240C497B4092BD1AD0C9B6A8F4B8" style="OLC">
<subsection id="idD72740B6A4714CCFB86F8E2F1F5AF8DE"><enum>(i)</enum><header>Nonapplication
of section</header><text>This section shall not apply during any taxable year
with respect to an applicable taxpayer (as defined in section 5896(b)) if
during the preceding taxable year for the production of oil, the average price
of crude oil in the United States is greater than $34.71 per barrel. For
purposes of the preceding sentence, the Secretary shall determine average
prices, taking into consideration the most recent data reported by the Energy
Information Administration. For taxable years beginning after December 31,
2007, the dollar amount specified in this paragraph shall be adjusted to
reflect changes for the 12-month period ending the preceding September 30 in
the Consumer Price Index for All Urban Consumers published by the Bureau of
Labor Statistics of the Department of
Labor.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id187B80367E224918AD32E84291BE499B"><enum>(2)</enum><header>Effective
date</header><text>The amendment made by this subsection shall apply to taxable
years beginning after the date of the enactment of this Act.</text>
</paragraph></subsection></section><section id="IDb73ef01e9e18474a83b63338be995f36"><enum>214.</enum><header>Elimination of
amortization of geological and geophysical expenditures for major oil
companies</header>
<subsection id="IDea53a6cb497f4373ade79abf8617364e"><enum>(a)</enum><header>In
general</header><text>Section 167(h) of the Internal Revenue Code of 1986 is
amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id27271465FDFE41E0B9EEFF8F655D25D2" style="OLC">
<paragraph id="id8BE8B498C60B4AA587C04C7C96DDCDB5"><enum>(5)</enum><header>Nonapplication
of section</header><text>This subsection shall not apply during any taxable
year with respect to an applicable taxpayer (as defined in section 5896(b)) if
during the preceding taxable year for the production of oil, the average price
of crude oil in the United States is greater than $34.71 per barrel, and for
the production of natural gas, the average wellhead price of natural gas in the
United States is greater than $4.34 per 1,000 cubic feet. For purposes of the
preceding sentence, the Secretary shall determine average prices, taking into
consideration the most recent data reported by the Energy Information
Administration. For taxable years beginning after December 31, 2007, each
dollar amount specified in this subparagraph shall be adjusted to reflect
changes for the 12-month period ending the preceding September 30 in the
Consumer Price Index for All Urban Consumers published by the Bureau of Labor
Statistics of the Department of
Labor.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDee2495d4d8a7433ca22b3c833f85280c"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on and
after the date of the enactment of this Act.</text>
</subsection></section><section changed="added" id="HFB1B016D4C5A4D1EB2C3A3BD0B82E633"><enum>215.</enum><header>Revaluation of
LIFO inventories of major oil companies</header>
<subsection changed="added" id="H943D2FE8CB044122BB6911FA1D18A45C"><enum>(a)</enum><header>General
rule</header><text>Notwithstanding any other provision of law, if a taxpayer is
an applicable taxpayer (as defined in section 5896(b)) for its last taxable
year ending in calendar year 2005, the taxpayer shall—</text>
<paragraph changed="added" id="HC684488B54644AB9B38DC6118E3B0757"><enum>(1)</enum><text>increase,
effective as of the close of such taxable year, the value of each historic LIFO
layer of inventories of crude oil, natural gas, or any other petroleum product
(within the meaning of section 4611) by the layer adjustment amount, and</text>
</paragraph><paragraph changed="added" id="H4BE33C47E3A7489D867D6D34C9F4193A"><enum>(2)</enum><text>decrease its cost
of goods sold for such taxable year by the aggregate amount of the increases
under paragraph (1).</text>
</paragraph><continuation-text continuation-text-level="subsection">If the
aggregate amount of the increases under paragraph (1) exceed the taxpayer’s
cost of goods sold for such taxable year, the taxpayer’s gross income for such
taxable year shall be increased by the amount of such excess.</continuation-text></subsection><subsection changed="added" id="HE6D7AE7E6628455FAF76064BBFDE6FE3"><enum>(b)</enum><header>Layer adjustment
amount</header><text>For purposes of this section—</text>
<paragraph changed="added" id="H929896D689B44D3398957F5173FFC989"><enum>(1)</enum><header>In
General</header><text>The term <term>layer adjustment amount</term> means, with
respect to any historic LIFO layer, the product of—</text>
<subparagraph changed="added" id="H2AE21466628F4571ACFCB46334502FC9"><enum>(A)</enum><text>$18.75, and</text>
</subparagraph><subparagraph changed="added" id="H1E6C75164F85482487FCACF9BCBBED6D"><enum>(B)</enum><text>the number of
barrels of crude oil (or in the case of natural gas or other petroleum
products, the number of barrel-of-oil equivalents) represented by the
layer.</text>
</subparagraph></paragraph><paragraph changed="added" id="H98DE447F8338482796DD71D73561307D"><enum>(2)</enum><header>Barrel-of-oil
equivalent</header><text>The term <term>barrel-of-oil equivalent</term> has the
meaning given such term by section 29(d)(5) (as in effect before its
redesignation by the Energy Tax Incentives Act of 2005).</text>
</paragraph></subsection><subsection changed="added" id="H823F5AE077364670838B208D62FEBCB3"><enum>(c)</enum><header>Application of
requirement</header>
<paragraph changed="added" id="H8089491C93434A8CB5A8A8ED43853A03"><enum>(1)</enum><header>No change in
method of accounting</header><text>Any adjustment required by this section
shall not be treated as a change in method of accounting.</text>
</paragraph><paragraph changed="added" id="H0A2B2DF22A994CE58C0CCD30A228CADE"><enum>(2)</enum><header>Underpayments of
estimated tax</header><text>No addition to the tax shall be made under section
6655 of the Internal Revenue Code of 1986 (relating to failure by corporation
to pay estimated tax) with respect to any underpayment of an installment
required to be paid with respect to the taxable year described in subsection
(a) to the extent such underpayment was created or increased by this
section.</text>
</paragraph></subsection></section><section changed="added" id="H5A32F2CD0432453CB78FA75BEFCE1B88"><enum>216.</enum><header>Modifications
of foreign tax credit rules applicable to major oil companies which are dual
capacity taxpayers</header>
<subsection changed="added" id="H6DBFB351222F4F0292AC9BC2E9BFFC3C"><enum>(a)</enum><header>In
general</header><text>Section 901 of the Internal Revenue Code of 1986
(relating to credit for taxes of foreign countries and of possessions of the
United States) is amended by redesignating subsection (m) as (n) and by
inserting after subsection (l) the following new subsection:</text>
<quoted-block id="H01FCF1311E3D4A8DA1A7BFBFB7D18615">
<subsection changed="added" id="H330D6C6BADDB4C03955E8A706762D088"><enum>(m)</enum><header>Special rules
relating to major oil companies which are dual capacity taxpayers</header>
<paragraph changed="added" id="H4D8C773A01694C39BEBD12F98AB43887"><enum>(1)</enum><header>General
rule</header><text>Notwithstanding any other provision of this chapter, any
amount paid or accrued by a dual capacity taxpayer which is an applicable
taxpayer (as defined in section 5896(b)) to a foreign country or possession of
the United States for any period shall not be considered a tax—</text>
<subparagraph changed="added" id="H5C1D220ABA8747FCB66F5BDE1CEF6706"><enum>(A)</enum><text>if, for such
period, the foreign country or possession does not impose a generally
applicable income tax, or</text>
</subparagraph><subparagraph changed="added" id="H6EC7050591104918B056DB9DCC87C028"><enum>(B)</enum><text>to the extent such
amount exceeds the amount (determined in accordance with regulations)
which—</text>
<clause changed="added" id="H3DCC4A8CC35D44EB8E5AF8800166F2D8"><enum>(i)</enum><text>is paid by such
dual capacity taxpayer pursuant to the generally applicable income tax imposed
by the country or possession, or</text>
</clause><clause changed="added" id="H2A05B3D03A8C4286992B1BEA5B80745B"><enum>(ii)</enum><text>would be paid if
the generally applicable income tax imposed by the country or possession were
applicable to such dual capacity taxpayer.</text>
</clause><continuation-text continuation-text-level="subparagraph">Nothing
in this paragraph shall be construed to imply the proper treatment of any such
amount not in excess of the amount determined under subparagraph (B).</continuation-text></subparagraph></paragraph><paragraph changed="added" id="HBA741CD260BB4821AA3E15941BFD731F"><enum>(2)</enum><header>Dual capacity
taxpayer</header><text>For purposes of this subsection, the term <term>dual
capacity taxpayer</term> means, with respect to any foreign country or
possession of the United States, a person who—</text>
<subparagraph changed="added" id="HF47E18DB149C4A3AB3A4805322411E1B"><enum>(A)</enum><text>is subject to a
levy of such country or possession, and</text>
</subparagraph><subparagraph changed="added" id="H558E27F312964A1F8211B1F45B9DCA99"><enum>(B)</enum><text>receives (or will
receive) directly or indirectly a specific economic benefit (as determined in
accordance with regulations) from such country or possession.</text>
</subparagraph></paragraph><paragraph changed="added" id="H72477FB9F9D94E98A068A582DC7F68B7"><enum>(3)</enum><header>Generally
applicable income tax</header><text>For purposes of this subsection—</text>
<subparagraph changed="added" id="H8638908D5EC4482DB8E96D887BA1D595"><enum>(A)</enum><header>In
General</header><text>The term <term>generally applicable income tax</term>
means an income tax (or a series of income taxes) which is generally imposed
under the laws of a foreign country or possession on income derived from the
conduct of a trade or business within such country or possession.</text>
</subparagraph><subparagraph changed="added" id="H3E9422E1914544FB80AE76188E32D153"><enum>(B)</enum><header>Exceptions</header><text>Such
term shall not include a tax unless it has substantial application, by its
terms and in practice, to—</text>
<clause changed="added" id="H8F79A466245B4E03942F57F704F5CEFF"><enum>(i)</enum><text>persons who are
not dual capacity taxpayers, and</text>
</clause><clause changed="added" id="HB8A926BBBCB74250B40168229AFEFD49"><enum>(ii)</enum><text>persons who are
citizens or residents of the foreign country or
possession.</text>
</clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection changed="added" id="H97B9637B9A8246EA8F2DC9DABAA02F7E"><enum>(b)</enum><header>Effective
date</header>
<paragraph changed="added" id="HA40CFF1E2ED54F43A61DA092D8898E50"><enum>(1)</enum><header>In
general</header><text>The amendments made by this section shall apply to taxes
paid or accrued in taxable years beginning after the date of the enactment of
this Act.</text>
</paragraph><paragraph changed="added" commented="no" display-inline="no-display-inline" id="H1D7C0A56ABD4421790FC280B4A8A8545"><enum>(2)</enum><header>Contrary treaty
obligations upheld</header><text>The amendments made by this section shall not
apply to the extent contrary to any treaty obligation of the United
States.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H5C8E395006E242588770EE2214327D3"><enum>217.</enum><header>Denial of
deduction for income attributable to domestic production of oil, natural gas,
or primary products thereof</header>
<subsection id="HE12C5D09807646329175AE4BB68F0838"><enum>(a)</enum><header>In
general</header><text>Subparagraph (B) of section 199(c)(4) of the Internal
Revenue Code of 1986 (relating to exceptions) is amended by striking
<quote>or</quote> at the end of clause (ii), by striking the period at the end
of clause (iii) and inserting <quote>, or</quote>, and by inserting after
clause (iii) the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="H9881E060A8764FF4A83EFFDAC45D2915" style="OLC">
<clause id="HC39AABDAAF044DE5AA8FC475364241D4"><enum>(iv)</enum><text>in the case of
any applicable taxpayer (as defined in section 5896(b)), the production,
refining, processing, transportation, or distribution of oil, natural gas, or
any primary product thereof during any taxable year described in section
167(h)(5)(A).</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HA41F5B923B7D4931ACECEF35E8394E79"><enum>(b)</enum><header>Conforming
amendments</header><text>Section 199(c)(4) of the Internal Revenue Code of 1986
is amended—</text>
<paragraph id="H8AA4A09BAA724BF290006324B2313C05"><enum>(1)</enum><text display-inline="yes-display-inline">in subparagraph (A)(i)(III) by striking
<quote>electricity, natural gas,</quote> and inserting
<quote>electricity</quote>, and</text>
</paragraph><paragraph id="H8CE900788AFB4CE0ACEB11BCCA8212DC"><enum>(2)</enum><text display-inline="yes-display-inline">in subparagraph (B)(ii) by striking
<quote>electricity, natural gas,</quote> and inserting
<quote>electricity</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H9CCA76E3A44B4C98B4055CC00092F1FF"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2005.</text>
</subsection></section><section id="ID041d968a646b4106a056aaca8b1647f7"><enum>218.</enum><header>Rules relating
to foreign oil and gas income</header>
<subsection id="IDd7b70066e91045aaa213c54b54c6d0ac"><enum>(a)</enum><header>Separate basket
for foreign tax credit</header>
<paragraph id="IDeae460bc721a4289b650e6ac4e55be02"><enum>(1)</enum><header>Years before
2007</header><text>Paragraph (1) of section 904(d) of the Internal Revenue Code
of 1986 (relating to separate application of section with respect to certain
categories of income), as in effect for years beginning before 2007, is amended
by striking `and' at the end of subparagraph (H), by redesignating subparagraph
(I) as subparagraph (J), and by inserting after subparagraph (H) the following
new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="id40AB7A5113574040B578D3D5C0444A89" style="OLC">
<subparagraph id="IDdaaae9f1c4a04342bcb8e1363f157fca"><enum>(I)</enum><text>foreign oil and
gas income,
and</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDf95b7ab638b640e98804dfb1b743cfbd"><enum>(2)</enum><header>2007 And
after</header><text>Paragraph (1) of section 904(d) of such Code, as in effect
for years beginning after 2006, is amended by striking <quote>and</quote> at
the end of subparagraph (A), by striking the period at the end of subparagraph
(B) and inserting <quote>, and</quote>, and by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="idAE0F86C62FC2441EA300AAE92FC0C91E" style="OLC">
<subparagraph id="ID0f207f386c9b4ae9a3060407a85c1be0"><enum>(C)</enum><text>foreign oil and
gas
income.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="IDa44030549c464ae689221a2fd23bf76d"><enum>(b)</enum><header>Definition</header>
<paragraph id="ID4a96bbe9c270462d8c4fb6b473c058f9"><enum>(1)</enum><header>Years before
2007</header><text>Paragraph (2) of section 904(d) of the Internal Revenue Code
of 1986, as in effect for years beginning before 2007, is amended by
redesignating subparagraphs (H) and (I) as subparagraphs (I) and (J),
respectively, and by inserting after subparagraph (G) the following new
subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="id04C3E8CE0C4D42D0AE7175125DA9B091" style="OLC">
<subparagraph id="IDc32b0b37bf6f4871972fbd08a9024a1c"><enum>(H)</enum><header>Foreign oil and
gas income</header><text>The term <term>foreign oil and gas income</term> has
the meaning given such term by section
954(g).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID27b94ba5662c4d0091d1f92c7677efdf"><enum>(2)</enum><header>2007 And
after</header><text>Section 904(d)(2) of such Code, as in effect for years
after 2006, is amended by redesignating subparagraphs (J) and (K) as
subparagraphs (K) and (L) and by inserting after subparagraph (I) the
following:</text>
<quoted-block display-inline="no-display-inline" id="id83A0BC29D2B34A5F8CD2E6C1BA1B8030" style="OLC">
<subparagraph id="IDdba47816eeb549d8881c0cfaf01000fc"><enum>(J)</enum><header>Foreign oil and
gas income</header><text>For purposes of this section—</text>
<clause id="ID974990503bb046728a6d61b656206cc0"><enum>(i)</enum><header>In
general</header><text>The term <term>foreign oil and gas income</term> has the
meaning given such term by section 954(g).</text>
</clause><clause id="ID4611266a91714351bc081ef4e0010c78"><enum>(ii)</enum><header>Coordination</header><text>Passive
category income and general category income shall not include foreign oil and
gas income (as so
defined).</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID6c6aaadf34ea4a4e934670f555f607b0"><enum>(c)</enum><header>Conforming
amendments</header>
<paragraph id="ID776566e833a445f0b05f248deeb7b397"><enum>(1)</enum><text>Section
904(d)(3)(F)(i) of the Internal Revenue Code of 1986 is amended by striking
<quote>or (E)</quote> and inserting <quote>(E), or (I)</quote>.</text>
</paragraph><paragraph id="IDca229e4b9fe348ce9147d851fd22162b"><enum>(2)</enum><text>Section 907(a) of
such Code is hereby repealed.</text>
</paragraph><paragraph id="ID5374f63d239c4f45866520873a168eab"><enum>(3)</enum><text>Section 907(c)(4)
of such Code is hereby repealed.</text>
</paragraph><paragraph id="IDfde546bdbbd8429faa5df55d2a87ff70"><enum>(4)</enum><text>Section 907(f) of
such Code is hereby repealed.</text>
</paragraph></subsection><subsection id="ID97e074fe4e8c426595128475c2c4ff53"><enum>(d)</enum><header>Effective
dates</header>
<paragraph id="IDbe8fcfa0f8ce43eead312bdfd87089f7"><enum>(1)</enum><header>In
general</header><text>The amendments made by this section shall apply to
taxable years beginning after the date of the enactment of this Act.</text>
</paragraph><paragraph id="ID9d05bb68b82e4ecdacfcff4b949dd234"><enum>(2)</enum><header>Years after
2006</header><text>The amendments made by paragraphs (1)(B) and (2)(B) shall
apply to taxable years beginning after December 31, 2006.</text>
</paragraph><paragraph id="IDef1d4d8357784b67a12f3271e42293a6"><enum>(3)</enum><header>Transitional
rules</header>
<subparagraph id="ID7c5e4a2bec0749daa1863d076fd86099"><enum>(A)</enum><header>Separate basket
treatment</header><text>Any taxes paid or accrued in a taxable year beginning
on or before the date of the enactment of this Act, with respect to income
which was described in subparagraph (I) of section 904(d)(1) of such Code (as
in effect on the day before the date of the enactment of this Act), shall be
treated as taxes paid or accrued with respect to foreign oil and gas income to
the extent the taxpayer establishes to the satisfaction of the Secretary of the
Treasury that such taxes were paid or accrued with respect to foreign oil and
gas income.</text>
</subparagraph><subparagraph id="IDcd8c9315028f409cabb611e1b84db573"><enum>(B)</enum><header>Carryovers</header><text>Any
unused oil and gas extraction taxes which under section 907(f) of such Code (as
so in effect) would have been allowable as a carryover to the taxpayer's first
taxable year beginning after the date of the enactment of this Act (without
regard to the limitation of paragraph (2) of such section 907(f) for first
taxable year) shall be allowed as carryovers under section 904(c) of such Code
in the same manner as if such taxes were unused taxes under such section 904(c)
with respect to foreign oil and gas extraction income.</text>
</subparagraph><subparagraph id="ID3f9dddfd5d81461fafa71afc6fe86bee"><enum>(C)</enum><header>Losses</header><text>The
amendment made by subsection (c)(3) shall not apply to foreign oil and gas
extraction losses arising in taxable years beginning on or before the date of
the enactment of this Act.</text>
</subparagraph></paragraph></subsection></section><section id="IDd51ef375250d4c879aa2ac65270ba6b0"><enum>219.</enum><header>Elimination of
deferral for foreign oil and gas extraction income</header>
<subsection id="IDa3dcb97f1eb64dfea7dd8d19678d062c"><enum>(a)</enum><header>General
rule</header><text>Paragraph (1) of section 954(g) of the Internal Revenue Code
of 1986 (defining foreign base company oil related income) is amended to read
as follows:</text>
<quoted-block display-inline="no-display-inline" id="id78A561CB2A40487280A506ABC75294B7" style="OLC">
<paragraph id="IDf4df095bd6e44e30ae047938335fb74d"><enum>(1)</enum><header>In
general</header><text>Except as otherwise provided in this subsection, the term
<term>foreign oil and gas income</term> means, in the case of any applicable
taxpayer (as defined in section 5896(b)) during any taxable year described in
section 167(h)(5)(A), any income of a kind which would be taken into account in
determining the amount of—</text>
<subparagraph id="ID9e52ebad5cab4eba9d7c23022732afa7"><enum>(A)</enum><text>foreign oil and
gas extraction income (as defined in section 907(c)), or</text>
</subparagraph><subparagraph id="ID1eace3c2ca1f4cb9a32c270576f1e4a4"><enum>(B)</enum><text>foreign oil
related income (as defined in section
907(c)).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID53cd63683c7f4984b1c4f9835205f7fb"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="ID97d601c188e94280958c65c40510629f"><enum>(1)</enum><text>Subsections
(a)(5), (b)(5), and (b)(6) of section 954, and section 952(c)(1)(B)(ii)(I) of
the Internal Revenue Code of 1986, are each amended by striking <quote>base
company oil related income</quote> each place it appears (including in the
heading of subsection (b)(8)) and inserting <quote>oil and gas
income</quote>.</text>
</paragraph><paragraph id="ID81b9f817b3bc4409b6925ae06fcab1e0"><enum>(2)</enum><text>Subsection (b)(4)
of section 954 of such Code is amended by striking <quote>base company
oil-related income</quote> and inserting <quote>oil and gas
income</quote>.</text>
</paragraph><paragraph id="ID84ebfba2c0ac4e3bac0dbc97a72d4024"><enum>(3)</enum><text>The subsection
heading for subsection (g) of section 954 of such Code is amended by striking
<quote><header-in-text level="subsection" style="OLC">Foreign base company oil
related income</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">Foreign oil and gas
income</header-in-text></quote>.</text>
</paragraph><paragraph id="ID7f693025ce724694955b890e20a1b6a6"><enum>(4)</enum><text>Subparagraph (A)
of section 954(g)(2) of such Code is amended by striking <quote>foreign base
company oil related income</quote> and inserting <quote>foreign oil and gas
income</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDac2df53e457645f494b507d1caa65ac1"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years of foreign corporations beginning after the date of the enactment of this
Act, and to taxable years of United States shareholders ending with or within
such taxable years of foreign corporations.</text>
</subsection></section></subtitle><subtitle id="id5A7B7B7E23204B9BBF587D40BCEAAAC3"><enum>C</enum><header>Protection and
retention of value of publicly-owned energy resources</header>
<section id="ID29286ba44def4bec9689c09629148ca0"><enum>221.</enum><header>Suspension of
royalty relief</header>
<subsection id="ID670c9fa885aa4fc9bb998e35ed0d8b16"><enum>(a)</enum><header>Requirement</header><text>Subject
to subsection (b), the Secretary of the Interior (referred to in this subtitle
as the <term>Secretary</term>) shall suspend the application of any provision
of Federal law under which a person would otherwise be provided relief from a
requirement to pay a royalty for the production of oil or natural gas from
Federal land (including submerged land) occurring after the date of enactment
of this Act during a period in which—</text>
<paragraph id="ID71c66fea83574cdc81a04e7554ae98da"><enum>(1)</enum><text>for the
production of oil, the average price of crude oil in the United States during
the 4-week period immediately preceding the suspension is greater than $34.71
per barrel; and</text>
</paragraph><paragraph id="ID245a2ebef5d54f309a93a8f21f11d590"><enum>(2)</enum><text>for the
production of natural gas, the average wellhead price of natural gas in the
United States during the 4-week period immediately preceding the suspension is
greater than $4.34 per 1,000 cubic feet.</text>
</paragraph></subsection><subsection id="ID2a145402bc9f4f2cbda62f06df6f44eb"><enum>(b)</enum><header>Determination
of average prices</header>
<paragraph id="id34D3326B987947CD88B9D35E0063503A"><enum>(1)</enum><header>Data</header><text>For
purposes of subsection (a), the Secretary shall determine average prices,
taking into consideration the most recent data reported by the Energy
Information Administration.</text>
</paragraph><paragraph id="id93E77DFB61CA4CCB936978CDCBBAFDBF"><enum>(2)</enum><header>Adjustment</header><text>For
fiscal year 2008 and each subsequent fiscal year, each dollar amount specified
in subsection (a) shall be adjusted to reflect changes for the 12-month period
ending the preceding November 30 in the Consumer Price Index for All Urban
Consumers published by the Bureau of Labor Statistics of the Department of
Labor.</text>
</paragraph></subsection></section><section id="IDe82ba2e5d0ad4e5c894096a7c0d0ae27"><enum>222.</enum><header>Renegotiation
of existing leases</header>
<subsection id="ID38084b6b18ac49f59707e6a157ce3abf"><enum>(a)</enum><header>In
general</header><text>Not later than 90 days after the date of enactment of
this Act, the Secretary shall make a determination regarding the ability of the
Secretary to renegotiate leases that—</text>
<paragraph id="id22CCC79238FB4E1A93C860C2CD810D60"><enum>(1)</enum><text>are in effect
prior to the date of enactment of this Act;</text>
</paragraph><paragraph id="idBEAD1C026C3741FAADA52D9134843ECD"><enum>(2)</enum><text>authorize the
production of oil or natural gas on Federal land; and</text>
</paragraph><paragraph id="id5F4633EF7CAE45EC96CE375E97B8A61B"><enum>(3)</enum><text>do not contain
terms at least equal to the royalty relief price thresholds described in
section 591.</text>
</paragraph></subsection><subsection id="IDd459f9bc009e4910858c5303962bbb77"><enum>(b)</enum><header>Affirmative
determination</header>
<paragraph id="id219ABB6D2F014959A451670EE3BA7DC1"><enum>(1)</enum><header>In
general</header><text>If the Secretary determines that the Secretary has the
authority to renegotiate leases described in subsection (a), the Secretary
shall immediately offer to renegotiate the terms of those leases to include the
royalty relief price thresholds described in section 591.</text>
</paragraph><paragraph id="id93CAE6B4289D4ADA832F4B1EFE98C5DC"><enum>(2)</enum><header>Failure to
renegotiate</header><text>If a lessee fails to renegotiate under paragraph (1),
the Secretary shall preclude that lessee from—</text>
<subparagraph id="idC6AB30EA17CE47BBAF1D6E5F6C25738C"><enum>(A)</enum><text>entering into new
leases; or</text>
</subparagraph><subparagraph id="idB1A47D38D2334FFCAD96DF25550EFB33"><enum>(B)</enum><text>obtaining other
existing leases or interests in leases.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDa001f7b195cc4184988aa6e70009e6c3"><enum>(c)</enum><header>Negative
determination</header><text>If the Secretary determines that the Secretary does
not have the authority to renegotiate leases described in subsection (a), the
Secretary shall immediately submit to Congress recommendations for changes to
law that will—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idCF280CA04C444E5BA2F9FF480DF16485"><enum>(1)</enum><text>provide the
authority necessary; or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id49AB8426114347CEBEC86FFB0757A5D1"><enum>(2)</enum><text>produce the same
level of revenue from leases for the production of oil and gas from Federal
land that will otherwise be lost due to the failure of lessees to renegotiate
and modify the terms of existing leases as described in subsection
(b)(1).</text>
</paragraph></subsection></section></subtitle><subtitle id="idD36B3A524E2F4E3FA8155AC33225E9AB"><enum>D</enum><header>Reduction in
incentives to guzzle gas</header>
<section commented="no" display-inline="no-display-inline" id="id88582CFADB2A47198F8460B6D1849D53" section-type="subsequent-section"><enum>231.</enum><header>Reducing incentives
to guzzle gas</header>
<subsection commented="no" display-inline="no-display-inline" id="ID95E2743BBBC74DC68FEAB8B95E8F44D1"><enum>(a)</enum><header>Inclusion of
heavy vehicles in limitation on depreciation of certain luxury
automobiles</header>
<paragraph commented="no" display-inline="no-display-inline" id="id6CB20632728641DC844DA7E82EBD8432"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 280F(d)(5)(A)
of the Internal Revenue Code of 1986 (defining passenger automobile) is
amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id538B7263B8E24E47A57D68FE5D207113"><enum>(A)</enum><text display-inline="yes-display-inline">by striking clause (ii) and inserting the
following new clause:</text>
<quoted-block display-inline="no-display-inline" id="id67461FECFE6140BBAEE8FBDCEA6F06C8" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="idC1F0F1721CD149D0AB4CB7876A137130"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="idB72254E73F4E4E258664F32498E21FF1"><enum>(I)</enum><text display-inline="yes-display-inline">which is rated at 6,000 pounds unloaded
gross vehicle weight or less, or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID76E8EDD01F0B491FACA5E8518717F7A5" indent="up1"><enum>(II)</enum><text display-inline="yes-display-inline">which is rated at more than 6,000 pounds
but not more than 14,000 pounds gross vehicle
weight.</text>
</subclause></clause><after-quoted-block>,
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idE07FC1D527C54EC6813778FA8A5D165C"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>clause (ii)</quote> in
the second sentence and inserting <quote>clause (ii)(I)</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idC881E8C5E9E043CF8F227E2787D59D44"><enum>(2)</enum><header>Exception for
vehicles used in farming business</header><text display-inline="yes-display-inline">Section 280F(d)(5)(B) of such Code
(relating to exception for certain vehicles) is amended by striking
<quote>and</quote> at the end of clause (ii), by redesignating clause (iii) as
clause (iv), and by inserting after clause (ii) the following new
clause:</text>
<quoted-block display-inline="no-display-inline" id="id628E595D54F64C498CC33345C86033FD" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="idCFF33425C441419AB23CE8AA540273C2"><enum>(iii)</enum><text display-inline="yes-display-inline">any vehicle used in a farming business (as
defined in section 263A(e)(4),
and</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID4B462A9C8D9742CA9C3B0F27A7015470"><enum>(3)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this subsection shall apply to property placed in service after the date of the
enactment of this Act.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idCC4EAAB3200A4E838A5295791DBE9AB9"><enum>(b)</enum><header>Updated
depreciation deduction limits</header>
<paragraph commented="no" display-inline="no-display-inline" id="id3C73F501E4414C8BAAD636903C681C2F"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Subparagraph (A) of
section 280F(a)(1) of the Internal Revenue Code of 1986 (relating to limitation
on amount of depreciation for luxury automobiles) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="id9691F436EE3B4E98961B9898B863606E" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="idD2249D1DD2AC472E9ADCC1354738C615"><enum>(I)</enum><header>Limitation</header><text display-inline="yes-display-inline">The amount of the depreciation deduction
for any taxable year shall not exceed for any passenger automobile—</text>
<clause commented="no" display-inline="no-display-inline" id="id402DF6AC79224E87AE3E89F0D5F1A61B"><enum>(i)</enum><text display-inline="yes-display-inline">for the 1st taxable year in the recovery
period—</text>
<subclause commented="no" display-inline="no-display-inline" id="idF6C3EDF9932349B0A9C2A620D9B02C86"><enum>(I)</enum><text display-inline="yes-display-inline">described in subsection (d)(5)(A)(ii)(I),
$4,000,</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id8494D77021A645AAB2ADDF91E068BE5B"><enum>(II)</enum><text display-inline="yes-display-inline">described in the second sentence of
subsection (d)(5)(A), $5,000, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idDF9BC906D17A4346A6157A20F61AC4F6"><enum>(III)</enum><text display-inline="yes-display-inline">described in subsection (d)(5)(A)(ii)(II),
$6,000,</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="id640D25B1105A478E930B7464C948F0C5"><enum>(ii)</enum><text display-inline="yes-display-inline">for the 2nd taxable year in the recovery
period—</text>
<subclause commented="no" display-inline="no-display-inline" id="id557AABB66B8D4238B6B08109B08C6BEE"><enum>(I)</enum><text display-inline="yes-display-inline">described in subsection (d)(5)(A)(ii)(I),
$6,400,</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id23BCA16672374EC5A529BCC60BC7B643"><enum>(II)</enum><text display-inline="yes-display-inline">described in the second sentence of
subsection (d)(5)(A), $8,000, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idA1B56233B3A4426C8929EF4A175BCF78"><enum>(III)</enum><text display-inline="yes-display-inline">described in subsection (d)(5)(A)(ii)(II),
$9,600,</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="id2C193CF687C94D7CA38840BACD8B403A"><enum>(iii)</enum><text display-inline="yes-display-inline">for the 3rd taxable year in the recovery
period—</text>
<subclause commented="no" display-inline="no-display-inline" id="idACA969B8BD734254AA169FCC72B9BD9A"><enum>(I)</enum><text display-inline="yes-display-inline">described in subsection (d)(5)(A)(ii)(I),
$3,850,</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id6FE2C17B3AD34AB4BE8EDA33C6DE16C2"><enum>(II)</enum><text display-inline="yes-display-inline">described in the second sentence of
subsection (d)(5)(A), $4,800, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id86D6D14BB5814B39BD0CF4D63B9F51E7"><enum>(III)</enum><text display-inline="yes-display-inline">described in subsection (d)(5)(A)(ii)(II),
$5,775, and</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="id8E2E368202984487B6E558BA7BD94299"><enum>(iv)</enum><text display-inline="yes-display-inline">for each succeeding taxable year in the
recovery period—</text>
<subclause commented="no" display-inline="no-display-inline" id="idC657DB42B76C42B680E285B2D78F98E7"><enum>(I)</enum><text display-inline="yes-display-inline">described in subsection (d)(5)(A)(ii)(I),
$2,325,</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idD7AED34E7DC74E61838C1FFDADF9B552"><enum>(II)</enum><text display-inline="yes-display-inline">described in the second sentence of
subsection (d)(5)(A), $2,900, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id5ED8B7A916EE4713A04D35467A037538"><enum>(III)</enum><text display-inline="yes-display-inline">described in subsection (d)(5)(A)(ii)(II),
$3,475.</text>
</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idBFE5693CB731487A8A30C7B1881ED30E"><enum>(2)</enum><header>Years after
recovery period</header><text display-inline="yes-display-inline">Section
280F(a)(1)(B)(ii) of such Code is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id1D3F09FB9B68482EBD792340AA93BD16" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="id2E111BDCFBF548F2B33BE6311A258CEF"><enum>(ii)</enum><header>Limitation</header><text display-inline="yes-display-inline">The amount treated as an expense under
clause (i) for any taxable year shall not exceed for any passenger
automobile—</text>
<subclause commented="no" display-inline="no-display-inline" id="idFD095F2D68694CB9B9875F286AC054B4"><enum>(I)</enum><text display-inline="yes-display-inline">described in subsection (d)(5)(A)(ii)(I),
$2,325,</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id80CDE3CF7B05479CB3F68E99E8290B5C"><enum>(II)</enum><text display-inline="yes-display-inline">described in the second sentence of
subsection (d)(5)(A), $2,900, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idCCB04244EC6546D9A4180355C7B25F23"><enum>(III)</enum><text display-inline="yes-display-inline">described in subsection (d)(5)(A)(ii)(II),
$3,475.</text>
</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idF6611487AC6A44FB9E1FC4C9528ED80D"><enum>(3)</enum><header>Inflation
adjustment</header><text display-inline="yes-display-inline">Section 280F(d)(7)
of such Code (relating to automobile price inflation adjustment) is
amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id520838CEC822476B82329CC42968754B"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>after 1988</quote> in
subparagraph (A) and inserting <quote>after 2006</quote>, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id9E77200586D3417CA32EF8EAA8CBB5B2"><enum>(B)</enum><text display-inline="yes-display-inline">by striking subparagraph (B) and inserting
the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="idD8BF2ED7781A44F2A56C2802FB04C45D" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="idEA8005C26B324A70BF4332E36355EA5D"><enum>(B)</enum><header>Automobile
price inflation adjustment</header><text display-inline="yes-display-inline">For purposes of this paragraph—</text>
<clause commented="no" display-inline="no-display-inline" id="idD3D36BF1E60B401B84CA57D3083F68F3"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">The automobile price
inflation adjustment for any calendar year is the percentage (if any) by
which—</text>
<subclause commented="no" display-inline="no-display-inline" id="idA19E3DAC66D6441CA9672FF3BD49624F"><enum>(I)</enum><text display-inline="yes-display-inline">the average wage index for the preceding
calendar year, exceeds</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id91685C4E11444194BD457F17E8B92761"><enum>(II)</enum><text display-inline="yes-display-inline">the average wage index for 2005.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="id9AA5B0F2FAD347B982DCB1482A9B9299"><enum>(ii)</enum><header>Average wage
index</header><text display-inline="yes-display-inline">The term <term>average
wage index</term> means the average wage index published by the Social Security
Administration.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idD67FF266DB544E14BB523311C6768FB9"><enum>(4)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this subsection shall apply to property placed in service after the date of the
enactment of this Act.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id2BA7DDE8388548F4B61F8A21C2EE7B02"><enum>(c)</enum><header>Expensing
limitation for farm vehicles</header>
<paragraph commented="no" display-inline="no-display-inline" id="idADD53E354190412E88F29CE81C0CA5A2"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Paragraph (6) of
section 179(b) of the Internal Revenue Code of 1986 (relating to limitations)
is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idC2EA3669CBF14F61AC9DBD3644D2F32E" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="id0D67EE0E0BE248A9880D34BEDD018CD2"><enum>(6)</enum><header>Limitation on
cost taken into account for farm vehicles</header><text display-inline="yes-display-inline">The cost of any vehicle described in
section 280F(d)(5)(B)(iii) for any taxable year which may be taken into account
under this section shall not exceed
$30,000.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id6142C6FF2E01475CACA16C4B3D2491AF"><enum>(2)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this subsection shall apply to property placed in service after the date of the
enactment of this Act.</text>
</paragraph></subsection></section></subtitle>