1.
Short title; amendment of Code
(a)
This Act may be cited as the Climate Change Technology Tax Incentives Act of
2005
.
(b)
Except as otherwise expressly provided, whenever in this Act an
amendment or repeal is expressed in terms of an amendment to, or repeal of, a
section or other provision, the reference shall be considered to be made to a
section or other provision of the Internal Revenue Code of 1986.
<enum>I</enum>
<header>Greenhouse gas intensity reduction tax incentives</header>
<section id="IDE344070E903B4356B78876DD8039FCA3">
<enum>101.</enum>
<header>Greenhouse gas intensity reduction investment tax
credit</header>
<subsection id="ID5B61280C6FA543B2A345DDF10CE78E47">
<enum>(a)</enum>
<header>In general</header>
<text>Subpart D of part IV of subchapter A of chapter 1 (relating to
business-related credits) is amended by adding at the end the following new
section:</text>
<quoted-block id="IDDE0764912FD3409D887484F5A5E2D2A0">
<section id="ID8140554670BE4521B61CF38FC31EFEC4">
<enum>45J.</enum>
<header>Greenhouse gas intensity reduction investment credit</header>
<subsection id="IDD285CD816E8849738EA189DA7122B0D9">
<enum>(a)</enum>
<header>Allowance of credit</header>
<paragraph id="ID47906D5BA7874698B229FE210E2295D0">
<enum>(1)</enum>
<header>In general</header>
<text>For purposes of section 38, in the case of a taxpayer’s
investment in a greenhouse gas intensity reduction project approved by the
accreditation panel, the greenhouse gas intensity reduction investment credit
determined under this section for the taxable year is an amount equal
to—</text>
<subparagraph id="ID008378828A7C4E639C60EBC90ACE184C">
<enum>(A)</enum>
<text>percentage reduction in greenhouse gas intensity certified for
such project for such year by the accreditation panel, multiplied by</text>
</subparagraph><subparagraph id="ID01A007BE98DC4EFB814149E02D3D589E">
<enum>(B)</enum>
<text>the investment in such project during such year which is
attributable, directly or indirectly, to the taxpayer, as determined by the
accreditation panel.</text>
</subparagraph></paragraph><paragraph id="ID2711421C3FF94E1CAD7AF0FBD780E357">
<enum>(2)</enum>
<header>Aggregate dollar limitation</header>
<text>The credit determined under paragraph (1) for any taxable year,
when added to any credit allowed to the taxpayer with respect to the such
project in any preceding taxable year, shall not exceed 50 percent of the
investment attributable to the taxpayer with respect to such project through
such taxable year.</text>
</paragraph></subsection><subsection id="ID8761598413654902972F254D869579BE">
<enum>(b)</enum>
<header>Limitation on aggregate credit allowable</header>
<paragraph id="ID68F35282208A44D5AF7C48496479A0B5">
<enum>(1)</enum>
<header>In general</header>
<text>The amount of the greenhouse gas intensity reduction investment
credit determined under subsection (a) for any project, when added to all such
credits allowed to all taxpayers with respect to the such project shall not
exceed the credit dollar amount allocated to such project under this subsection
by the accreditation panel from the greenhouse gas intensity reduction
investment credit limitation for the calendar year in which such allocation is
made.</text>
</paragraph><paragraph id="ID6AE88EB45F9849D0B27DD64B2A12AB44">
<enum>(2)</enum>
<header>Time for making allocation</header>
<text>An allocation shall be taken into account under paragraph (1)
only if it is made not later than the close of the calendar year in which the
greenhouse gas intensity reduction project proposal with respect to such
project is approved by the accreditation panel.</text>
</paragraph><paragraph id="IDD5969E2E619A4DA3A0DC0B61C6E7E17D">
<enum>(3)</enum>
<header>Overall limitation on aggregate credit allowable</header>
<text>The accreditation panel may allocate the aggregate credit
dollar amount to any such project for a period not to exceed a 10-year period
beginning with the calendar year described in paragraph (2).</text>
</paragraph></subsection><subsection id="ID95B202E946C144FDA888C2BEF077D942">
<enum>(c)</enum>
<header>Limitation on amount of credits allocated</header>
<paragraph id="ID13AA612B8EA2428D8DC49674D3A06036">
<enum>(1)</enum>
<header>In general</header>
<text>There is a greenhouse gas intensity reduction investment credit
limitation amount for each calendar year. Such limitation amount is—</text>
<subparagraph id="IDA1714AD375E944DB83C3CBAF99721843">
<enum>(A)</enum>
<text>$245,000,000 for 2006,</text>
</subparagraph><subparagraph id="ID5678B0A8362847928FA723BC388C34EC">
<enum>(B)</enum>
<text>$224,000,000 for 2007,</text>
</subparagraph><subparagraph id="IDF8FE2DEC0E43498E891B26FCC1B40DFE">
<enum>(C)</enum>
<text>$216,000,000 for 2008,</text>
</subparagraph><subparagraph id="ID610BE2AFB6E546DE9DE5E2523D290EAB">
<enum>(D)</enum>
<text>$103,000,000 for 2009,</text>
</subparagraph><subparagraph id="ID94406C8A955641D98A82EFE4DE1BB649">
<enum>(E)</enum>
<text>$27,000,000 for 2010, and</text>
</subparagraph><subparagraph id="IDB9C5443204B94DF88AAE8B9A2DABA2C0">
<enum>(F)</enum>
<text>except as provided in paragraph (2), zero thereafter.</text>
</subparagraph></paragraph><paragraph id="IDE4D8714309AB47F7AD2CD06FC229D008">
<enum>(2)</enum>
<header>Carryover of unused issuance limitation</header>
<text>If for any calendar year the limitation amount imposed by
paragraph (1) exceeds the amount of greenhouse gas intensity reduction
investment credits allocated during such year, such excess shall be carried
forward to the succeeding calendar year as an addition to the limitation
imposed by paragraph (1).</text>
</paragraph></subsection><subsection id="IDE7F9889343554238B08198911588A4A6">
<enum>(d)</enum>
<header>Greenhouse gas intensity reduction project; greenhouse gas
intensity; accreditation panel</header>
<text>For purposes of this section—</text>
<paragraph id="idC4C1F7BDC9E043EF9D4A07AA89E6B21E"><enum>(1)</enum><header>Greenhouse gas
intensity reduction project</header><text>The term <quote>greenhouse gas
intensity reduction project</quote> means any project approved under this
section by the accreditation panel. Such approval shall be based on the
following criteria:</text>
<subparagraph id="id1808948E947442119B2082E6F5FC91D0"><enum>(A)</enum><text>The extent of the
reduction in greenhouse gas intensity proposed for the project.</text>
</subparagraph><subparagraph id="id0026573828E64ADFA5566E69ACF53A50"><enum>(B)</enum><text>Improvements in
system efficiency.</text>
</subparagraph><subparagraph id="idA89EEB4004CF483AAC95B39A3EF4A673"><enum>(C)</enum><text>In the case of
projects located outside the United States, the extent of technology
transfer.</text>
</subparagraph><subparagraph id="id499EF0B56AB74422B687C04434B2AA51"><enum>(D)</enum><text>The existence and
nature of agreements for sharing project benefits and liability between the
taxpayer and any host government.</text>
</subparagraph></paragraph><paragraph id="IDEFC55556CDF14D2FA234FB9E43DBF303">
<enum>(2)</enum>
<header>Greenhouse gas intensity</header>
<text>The greenhouse gas intensity for any period is equal to the
volume of emissions divided by the economic activity associated with a
project.</text>
</paragraph><paragraph id="IDA04B1E98A1034FE1A9A535DD1D96D1A2">
<enum>(3)</enum>
<header>Accreditation panel</header>
<text>The term <term>accreditation panel</term> means a panel
certified by the Secretary of Commerce.</text>
</paragraph></subsection><subsection id="ID1C5D30A7D0294398887EC430C77A0AA5">
<enum>(e)</enum>
<header>Recapture of credit in certain cases</header>
<paragraph id="IDC234BDA355264CEBA9D1391A86DBF412">
<enum>(1)</enum>
<header>In general</header>
<text>If, at any time during the 20-year period of a greenhouse gas
intensity reduction project, there is a recapture event with respect to such
project, then the tax imposed by this chapter for the taxable year in which
such event occurs shall be increased by the credit recapture amount.</text>
</paragraph><paragraph id="ID5DE9797DD3F24305BAA2494A56BED62F">
<enum>(2)</enum>
<header>Credit recapture amount</header>
<text>For purposes of paragraph (1)—</text>
<subparagraph id="ID00D1CB61F1BF4FCDB007B8CC7F8920AD">
<enum>(A)</enum>
<header>In general</header>
<text>The credit recapture amount is an amount equal to the recapture
percentage of all greenhouse gas intensity reduction investment credits
previously allowable to a taxpayer with respect to any investment in such
project that is attributable to such taxpayer.</text>
</subparagraph><subparagraph id="ID67FDE95FFA4147A2B4B058275EBC1A7D">
<enum>(B)</enum>
<header>Recapture percentage</header>
<text>The recapture percentage shall be 100 percent if the recapture
event occurs during the first 5 years of the project, 75 percent if the
recapture event occurs during the second 5 years of the project, 50 percent if
the recapture event occurs during the third 5 years of the project, 25 percent
if the recapture event occurs during the fourth 5 years of the project, and 0
percent if the recapture event occurs at any time after the 20th year of the
project.</text>
</subparagraph></paragraph><paragraph id="IDA66E63E3E54747AEB36F27C9D9D4F026">
<enum>(3)</enum>
<header>Recapture event</header>
<text>For purposes of paragraph (1), there is a recapture event with
respect to a greenhouse gas intensity reduction project if—</text>
<subparagraph id="IDAF73025925324237884B1E7E18F97DFA">
<enum>(A)</enum>
<text>the taxpayer violates a term or condition of the approval of
the project by the accreditation panel at any time,</text>
</subparagraph><subparagraph id="ID871F755C72994070BA3D24D1ABC0DFF6">
<enum>(B)</enum>
<text>the taxpayer adopts a practice which the accreditation panel
has specified in its approval of the project as a practice which would tend to
defeat the purposes of the program, or</text>
</subparagraph><subparagraph id="ID8107080F2B154C329A881D46227636A6">
<enum>(C)</enum>
<text>the taxpayer disposes of any ownership interest arising out of
its investment that the accreditation panel has determined is attributable to
the project, unless the accreditation panel determines that such disposition
will not have any adverse effect on the greenhouse gas intensity reduction
project.</text>
</subparagraph><continuation-text continuation-text-level="paragraph">If an
event which otherwise would be a recapture event is outside the control of the
taxpayer, as determined by the accreditation panel, such event shall not be
treated as a recapture event with respect to such taxpayer.</continuation-text></paragraph><paragraph id="ID63AEB1EC7F38466598476CEA5F330795">
<enum>(4)</enum>
<header>Special rules</header>
<subparagraph id="IDA00219715B274F35BCBEC28B8ACFB275">
<enum>(A)</enum>
<header>Tax benefit rule</header>
<text>The tax for the taxable year shall be increased under paragraph
(1) only with respect to credits allowed by reason of this section which were
used to reduce tax liability. In the case of credits not so used to reduce tax
liability, the carryforwards and carrybacks under section 39 shall be
appropriately adjusted.</text>
</subparagraph><subparagraph id="ID6A200DA87772404FB457193CDFB80CE6">
<enum>(B)</enum>
<header>No credits against tax</header>
<text>Any increase in tax under this subsection shall not be treated
as a tax imposed by this chapter for purposes of determining the amount of any
credit under this chapter or for purposes of section 55.</text>
</subparagraph></paragraph></subsection><subsection id="IDA0348B79AD504EEEBB4A899E9C36F7DD">
<enum>(f)</enum>
<header>Disallowance of double benefit</header>
<paragraph id="IDDBA3C904F7D944D2885A241B56462BB1">
<enum>(1)</enum>
<header>Basis reduction</header>
<text>The basis of any investment in a greenhouse gas intensity
reduction project shall be reduced by the amount of any credit determined under
this section with respect to such investment.</text>
</paragraph><paragraph id="IDA42F70266BC64B009DFAA0C95BF15FA4">
<enum>(2)</enum>
<header>Charitable deduction disallowed</header>
<text>No deduction shall be allowed to a taxpayer under section 170
with respect to any contribution which the accreditation panel certifies to the
Secretary constitutes an investment in a greenhouse gas intensity reduction
project that is attributable to such taxpayer.</text>
</paragraph></subsection><subsection id="ID734A78D622FF476D8C200BFAE965C31A">
<enum>(g)</enum>
<header>Certification to Secretary</header>
<text>The accreditation panel shall certify to the Secretary before
January 31 of each year with respect to each taxpayer which has made an
investment in a greenhouse gas intensity reduction project—</text>
<paragraph id="ID78368751E13C4F7D8C3B9371D51E3DBA">
<enum>(1)</enum>
<text>the amount of the greenhouse gas intensity reduction investment
credit allowable to such taxpayer for the preceding calendar year,</text>
</paragraph><paragraph id="ID1844414015B5444DA659DFFB5EABF745">
<enum>(2)</enum>
<text>whether a recapture event occurred with respect to such
taxpayer during the preceding calendar year, and</text>
</paragraph><paragraph id="ID0BEB60540CBA46968E2C6A8E7C1FFE1C">
<enum>(3)</enum>
<text>the credit recapture amount, if any, with respect to such
taxpayer for the preceding calendar year.</text>
</paragraph></subsection><subsection id="IDC9358525F5314E77AC882BB14DCA9C5D">
<enum>(h)</enum>
<header>Regulations</header>
<text>The Secretary shall prescribe such regulations as may be
appropriate to carry out this section, including regulations—</text>
<paragraph id="ID34F88B56E375478E8B849E3CA38F6D30">
<enum>(1)</enum>
<text>which limit the credit for investments which are directly or
indirectly subsidized by other Federal benefits,</text>
</paragraph><paragraph id="ID9BD820A34A2A4F48965B2BFC895958AC">
<enum>(2)</enum>
<text>which prevent the abuse of the provisions of this section
through the use of related parties, and</text>
</paragraph><paragraph id="ID0824526450AC4224998C7AC114E40FCB">
<enum>(3)</enum>
<text>which impose appropriate reporting requirements.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID409BED2ABA1E45D98A32BFCE9667F3AD">
<enum>(b)</enum>
<header>Credit made part of general business credit</header>
<text>Subsection (b) of section 38 is amended by striking
<quote>plus</quote> at the end of paragraph (18), by striking the period at the
end of paragraph (19) and inserting <quote>, plus</quote>, and by adding at the
end the following new paragraph:</text>
<quoted-block id="IDE45CA65484E44851880226F298B4FF78">
<paragraph id="ID85BAFA36568F49CDB06C43180FED9F29">
<enum>(20)</enum>
<text>the greenhouse gas intensity reduction investment credit
determined under section 45J(a).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDBF361783DC424F929305D8223770E85A">
<enum>(c)</enum>
<header>Deduction for unused credit</header>
<text>Subsection (c) of section 196 is amended by striking
<quote>and</quote> at the end of paragraph (11), by striking the period at the
end of paragraph (12) and inserting <quote>, and</quote>, and by adding at the
end the following new paragraph:</text>
<quoted-block id="ID9CC1D76FB5A342409500C74B30BE8D9E">
<paragraph id="IDDA93F5F93E984C8C89A819BEA530A660">
<enum>(13)</enum>
<text>the greenhouse gas intensity reduction investment credit
determined under section 45J(a).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID78274071D3CD4C0DB2F5C7875EDD191C">
<enum>(d)</enum>
<header>Clerical amendment</header>
<text>The table of sections for subpart D of part IV of subchapter A of
chapter 1 is amended by adding at the end the following new item:</text>
<quoted-block id="IDA57148050D464259A446906F49259C96" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 45J. Greenhouse gas intensity
reduction investment
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID92E58A4AD7FF4BC6A5A3608A9BE11833">
<enum>(e)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to investments
made after December 31, 2005.</text>
</subsection></section>
<enum>II</enum>
<header>Energy efficiency provisions</header>
<subtitle id="id4AA19BC776D041A98C39DC63226D9487"><enum>A</enum><header>Renewable
energy</header>
<section id="id50EB6F91A937428884BFD70E71C66465"><enum>201.</enum><header>Sense of the
Senate regarding extension of renewable energy credit</header><text display-inline="no-display-inline">It is the sense of the Senate that the
income tax credit for electricity produced from certain renewable resources
under section 45 of the Internal Revenue Code of 1986 should be extended
through 2010.</text>
</section></subtitle><subtitle id="ID3D02CCB87B034E198D8B8DC5C98F3FC4">
<enum>B</enum>
<header>Clean coal incentives</header>
<part id="IDC611F7D0B9994B54A153F892390208BA">
<enum>I</enum>
<header>Credit for emission reductions and efficiency improvements in
existing coal-based electricity generation facilities</header>
<section id="ID87321595E89447D68FBC0CD839AFB577">
<enum>211.</enum>
<header>Credit for production from a qualifying clean coal technology
unit</header>
<subsection id="IDA5BDC612A21144278693EEC969ED71D1">
<enum>(a)</enum>
<header>Credit for production from a qualifying clean coal technology
unit</header>
<text>Subpart D of part IV of subchapter A of chapter 1 (relating to
business related credits), as amended by this Act, is amended by adding at the
end the following new section:</text>
<quoted-block id="IDB20C418A81CE417799F56F2D69DE6EB4">
<section id="ID98077CDE2E124E769D1D86689DF5FACA">
<enum>45K.</enum>
<header>Credit for production from a qualifying clean coal technology
unit</header>
<subsection id="ID2CD1A636EF364AA4A40EEE81B090FDCE">
<enum>(a)</enum>
<header>General rule</header>
<text>For purposes of section 38, the qualifying clean coal
technology production credit of any taxpayer for any taxable year is equal
to—</text>
<paragraph id="ID3E560A2C009641F98FD1DCC530870EB0">
<enum>(1)</enum>
<text>the applicable amount of clean coal technology production
credit, multiplied by</text>
</paragraph><paragraph id="IDAA8CC6572AA0408CA16094C69533A2BA">
<enum>(2)</enum>
<text>the applicable percentage of the sum of—</text>
<subparagraph id="IDCC069FCFB9B24AE0A0F248CCBEC618C0">
<enum>(A)</enum>
<text>the kilowatt hours of electricity, plus</text>
</subparagraph><subparagraph id="ID706EECFD5B52420CB94D49C0D4E0E283">
<enum>(B)</enum>
<text>each 3,413 Btu of fuels or chemicals, produced by the taxpayer
during such taxable year at a qualifying clean coal technology unit, but only
if such production occurs during the 10-year period beginning on the date the
unit was returned to service after becoming a qualifying clean coal technology
unit.</text>
</subparagraph></paragraph></subsection><subsection id="ID4BB86DB5EFA646E08C6A626827A6DFCF">
<enum>(b)</enum>
<header>Applicable amount</header>
<paragraph id="IDB0289D5280904BCC81D214E5FD76E6D5">
<enum>(1)</enum>
<header>In general</header>
<text>For purposes of this section, the applicable amount of clean
coal technology production credit is equal to $0.0034.</text>
</paragraph><paragraph id="IDE4775DCD2C8E45718DD02E28EFEEDC63">
<enum>(2)</enum>
<header>Inflation adjustment</header>
<text>For calendar years after 2005, the applicable amount of clean
coal technology production credit shall be adjusted by multiplying such amount
by the inflation adjustment factor for the calendar year in which the amount is
applied. If any amount as increased under the preceding sentence is not a
multiple of 0.01 cent, such amount shall be rounded to the nearest multiple of
0.01 cent.</text>
</paragraph></subsection><subsection id="ID49FEBB72561748A9B2B754825BEBF21F">
<enum>(c)</enum>
<header>Applicable percentage</header>
<text>For purposes of this section, with respect to any qualifying
clean coal technology unit, the applicable percentage is the percentage equal
to the ratio which the portion of the national megawatt capacity limitation
allocated to the taxpayer with respect to such unit under subsection (e) bears
to the total megawatt capacity of such unit.</text>
</subsection><subsection id="ID980A081E35E64A29BA644F100D6CEA44">
<enum>(d)</enum>
<header>Definitions and special rules</header>
<text>For purposes of this section—</text>
<paragraph id="IDCA6D7EED72A14DF4A05A86FCC61F561D">
<enum>(1)</enum>
<header>Qualifying clean coal technology unit</header>
<text>The term <term>qualifying clean coal technology unit</term>
means a clean coal technology unit of the taxpayer which—</text>
<subparagraph id="IDBD4C110BA07B4054A2A4FCE4CAB481BE">
<enum>(A)</enum>
<text>on January 1, 2005—</text>
<clause id="ID8940D0344AFB4BF0812522D6C5B0D582">
<enum>(i)</enum>
<text>was a coal-based electricity generating steam generator-turbine
unit which was not a clean coal technology unit, and</text>
</clause><clause id="IDC7085FB934A34BFDB88E11AFA46CC25B">
<enum>(ii)</enum>
<text>had a nameplate capacity rating of not more than 300
megawatts,</text>
</clause></subparagraph><subparagraph id="ID1ABC373DB0464C9C9F8D061DDF06F935">
<enum>(B)</enum>
<text>becomes a clean coal technology unit as the result of the
retrofitting, repowering, or replacement of the unit with clean coal technology
during the 10-year period beginning on January 1, 2005,</text>
</subparagraph><subparagraph id="IDAAE0C7D39B4844E1AA6E5C9FC628955E">
<enum>(C)</enum>
<text>is not receiving nor is scheduled to receive funding under the
Clean Coal Technology Program, the Power Plant Improvement Initiative, or the
Clean Coal Power Initiative administered by the Secretary of Energy, and</text>
</subparagraph><subparagraph id="IDA0B19FABDB4A4CF1B9D255B06D84EAC0">
<enum>(D)</enum>
<text>receives an allocation of a portion of the national megawatt
capacity limitation under subsection (e).</text>
</subparagraph></paragraph><paragraph id="ID54E02CE367BC4540815E655E052BEE8E">
<enum>(2)</enum>
<header>Clean coal technology unit</header>
<text>The term <term>clean coal technology unit</term> means a unit
which—</text>
<subparagraph id="ID055DDB2CEC594E298C6166DBB72873DF">
<enum>(A)</enum>
<text>uses clean coal technology, including advanced pulverized coal
or atmospheric fluidized bed combustion, pressurized fluidized bed combustion,
integrated gasification combined cycle, or any other technology, for the
production of electricity,</text>
</subparagraph><subparagraph id="IDA994531260594087897B649D66A393B4">
<enum>(B)</enum>
<text>uses an input of at least 75 percent coal to produce at least
50 percent of its thermal output as electricity,</text>
</subparagraph><subparagraph id="IDE0015081AC26435FBBEA232826CAC5D9">
<enum>(C)</enum>
<text>has a design net heat rate of at least 500 less than that of
such unit as described in paragraph (1)(A),</text>
</subparagraph><subparagraph id="IDB75B3AF03DA441C0BE21ABB75A7F3A12">
<enum>(D)</enum>
<text>has a maximum design net heat rate of not more than 9,500,
and</text>
</subparagraph><subparagraph id="ID3A2E9AE6A9074D46A7F701C5DE31C341">
<enum>(E)</enum>
<text>meets the pollution control requirements of paragraph
(3).</text>
</subparagraph></paragraph><paragraph id="IDF179715EBDCF47528ABA9D943F254565">
<enum>(3)</enum>
<header>Pollution control requirements</header>
<subparagraph id="ID2AAA7BF8FF2F48D98C9F8CEC13EE41A1">
<enum>(A)</enum>
<header>In general</header>
<text>A unit meets the requirements of this paragraph if—</text>
<clause id="IDE85B08FB8DF041B1B11CBBBB36650E33">
<enum>(i)</enum>
<text>its emissions of sulfur dioxide, nitrogen oxide, or
particulates meet the lower of the emission levels for each such emission
specified in—</text>
<subclause id="ID70AB252E2D874308A089D23167B0AAB9">
<enum>(I)</enum>
<text>subparagraph (B), or</text>
</subclause><subclause id="IDF26F5E76E6D1429887924A9D705DBEF1">
<enum>(II)</enum>
<text>the new source performance standards of the
<act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7411">42 U.S.C. 7411</external-xref>)
which are in effect for the category of source at the time of the retrofitting,
repowering, or replacement of the unit, and</text>
</subclause></clause><clause id="ID3B9A9B2F96654E67876560DE708E8A8D">
<enum>(ii)</enum>
<text>its emissions do not exceed any relevant emission level
specified by regulation pursuant to the hazardous air pollutant requirements of
the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7412">42 U.S.C. 7412</external-xref>) in
effect at the time of the retrofitting, repowering, or replacement.</text>
</clause></subparagraph><subparagraph id="ID1AA1B3505BF346F88254E7CC96A65839">
<enum>(B)</enum>
<header>Specific levels</header>
<text>The levels specified in this subparagraph are—</text>
<clause id="ID863CA81DAE2C482192936A7BDE560B26">
<enum>(i)</enum>
<text>in the case of sulfur dioxide emissions, 50 percent of the
sulfur dioxide emission levels specified in the new source performance
standards of the <act-name parsable-cite="CAA">Clean Air Act</act-name>
(<external-xref legal-doc="usc" parsable-cite="usc/42/7411">42 U.S.C.
7411</external-xref>) in effect on the date of the enactment of this section
for the category of source,</text>
</clause><clause id="ID5D0A869F870B426D97428AC20B97E9F2">
<enum>(ii)</enum>
<text>in the case of nitrogen oxide emissions—</text>
<subclause id="ID0B52FBFB7E7C410F93DCD1BAAFFD2E8A">
<enum>(I)</enum>
<text>0.1 pound per million Btu of heat input if the unit is not a
cyclone-fired boiler, and</text>
</subclause><subclause id="IDC43BD26FEA3B48C6AA9BEACB198AA50B">
<enum>(II)</enum>
<text>if the unit is a cyclone-fired boiler, 15 percent of the
uncontrolled nitrogen oxide emissions from such boilers, and</text>
</subclause></clause><clause id="ID5798D2DE16A64F528CE1374706094E1B">
<enum>(iii)</enum>
<text>in the case of particulate emissions, 0.02 pound per million
Btu of heat input.</text>
</clause></subparagraph></paragraph><paragraph id="ID656FF3E28B504150810816D570BCF94E">
<enum>(4)</enum>
<header>Design net heat rate</header>
<text>The design net heat rate with respect to any unit, measured in
Btu per kilowatt hour (HHV)—</text>
<subparagraph id="IDD5C6B9CAF796477DA58017E09F1BA89E">
<enum>(A)</enum>
<text>shall be based on the design annual heat input to and the
design annual net electrical power, fuels, and chemicals output from such unit
(determined without regard to such unit’s co-generation of steam),</text>
</subparagraph><subparagraph id="ID6A6DB9A1756845F0B09ED75CB68FE17D">
<enum>(B)</enum>
<text>shall be adjusted for the heat content of the design coal to be
used by the unit if it is less than 12,000 Btu per pound according to the
following formula:</text>
</subparagraph><continuation-text continuation-text-level="paragraph">Design net
heat rate = Unit net heat rate [l^ {((12,000-design coal heat content, Btu per
pound)/1,000) 0.013}],</continuation-text><subparagraph id="ID3DA2E7B85CE74A24A2BE29789477F0AB">
<enum>(C)</enum>
<text>shall be corrected for the site reference conditions of—</text>
<clause id="IDCBE6448D769E47818C581C27018C6FC4">
<enum>(i)</enum>
<text>elevation above sea level of 500 feet,</text>
</clause><clause id="ID9457A80FBBF240ADBCAC1F47D9270261">
<enum>(ii)</enum>
<text>air pressure of 14.4 pounds per square inch absolute
(psia),</text>
</clause><clause id="ID8AA59DD805C94D5CAE495A7C121B550E">
<enum>(iii)</enum>
<text>temperature, dry bulb of 63°F,</text>
</clause><clause id="ID4FD1BCFF5CAC4E009E8FC5CE01245C1F">
<enum>(iv)</enum>
<text>temperature, wet bulb of 54°F, and</text>
</clause><clause id="IDA7722A733E3A48509B70D63DB9ECB3B7">
<enum>(v)</enum>
<text>relative humidity of 55 percent, and</text>
</clause></subparagraph><subparagraph id="ID923DE636880C487D85AC408AADD2B2E5">
<enum>(D)</enum>
<text>if carbon capture controls have been installed with respect to
any qualifying unit and such controls remove at least 50 percent of the unit’s
carbon dioxide emissions, shall be adjusted up to the design heat rate level
which would have resulted without the installation of such controls.</text>
</subparagraph></paragraph><paragraph id="ID566B9189E46C4C40BC8112A25517CA08">
<enum>(5)</enum>
<header>HHV</header>
<text>The term <term>HHV</term> means higher heating value.</text>
</paragraph><paragraph id="IDFA0F6ABFDE9B4C4CA7A71EA611466991">
<enum>(6)</enum>
<header>Application of certain rules</header>
<text>The rules of paragraphs (3), (4), and (5) of section 45(e)
shall apply.</text>
</paragraph><paragraph id="ID30F8DE99E5BD48B3973BD1EF6047C4A5">
<enum>(7)</enum>
<header>Inflation adjustment factor</header>
<subparagraph id="IDA38AC400B5F54B43B07C817F042200D9">
<enum>(A)</enum>
<header>In general</header>
<text>The term <term>inflation adjustment factor</term> means, with
respect to a calendar year, a fraction the numerator of which is the GDP
implicit price deflator for the preceding calendar year and the denominator of
which is the GDP implicit price deflator for the calendar year 2003.</text>
</subparagraph><subparagraph id="ID29D2D56928DC47D0816112077165FF0D">
<enum>(B)</enum>
<header>GDP implicit price deflator</header>
<text>The term <term>GDP implicit price deflator</term> means, for
any calendar year, the most recent revision of the implicit price deflator for
the gross domestic product as of June 30 of such calendar year as computed by
the Department of Commerce before October 1 of such calendar year.</text>
</subparagraph></paragraph><paragraph id="ID819CB287F13A4FD48E85BB1D702F3955">
<enum>(8)</enum>
<header>Noncompliance with pollution laws</header>
<text>For purposes of this section, a unit which is not in compliance
with the applicable State and Federal pollution prevention, control, and permit
requirements for any period of time shall not be considered to be a qualifying
clean coal technology unit during such period.</text>
</paragraph></subsection><subsection id="ID835AAC41FC314A41B3653352E8D14A6B">
<enum>(e)</enum>
<header>National limitation on the aggregate capacity of qualifying
clean coal technology units</header>
<paragraph id="ID7A4F36F9417A465A81BDEB65484E1F6D">
<enum>(1)</enum>
<header>In general</header>
<text>For purposes of this section, the national megawatt capacity
limitation for qualifying clean coal technology units is 4,000
megawatts.</text>
</paragraph><paragraph id="ID658AB14E8B284E89A6495782DFD2B64F">
<enum>(2)</enum>
<header>Allocation of limitation</header>
<text>The Secretary shall allocate the national megawatt capacity
limitation for qualifying clean coal technology units in such manner as the
Secretary may prescribe under the regulations under paragraph (3).</text>
</paragraph><paragraph id="ID5A66BAB648BC46318A182832F58711DF">
<enum>(3)</enum>
<header>Regulations</header>
<text>Not later than 6 months after the date of the enactment of this
section, the Secretary shall prescribe such regulations as may be necessary or
appropriate—</text>
<subparagraph id="ID27B8F4A1A24F4F0393B091466E4B3044">
<enum>(A)</enum>
<text>to carry out the purposes of this subsection,</text>
</subparagraph><subparagraph id="IDD8531B42E5B2401AB5822793CFDBB8E3">
<enum>(B)</enum>
<text>to limit the capacity of any qualifying clean coal technology
unit to which this section applies so that the megawatt capacity allocated to
any unit under this subsection does not exceed 300 megawatts and the combined
megawatt capacity allocated to all such units when all such units are placed in
service during the 10-year period described in subsection (d)(1)(B), does not
exceed 4,000 megawatts,</text>
</subparagraph><subparagraph id="IDEABBB951E4F54F95B863FB3E096190A0">
<enum>(C)</enum>
<text>to provide a certification process under which the Secretary,
in consultation with the Secretary of Energy, shall approve and allocate the
national megawatt capacity limitation—</text>
<clause id="ID35B017AB34CE4E718A76477BB9D58F96">
<enum>(i)</enum>
<text>to encourage that units with the highest thermal efficiencies,
when adjusted for the heat content of the design coal and site reference
conditions described in subsection (d)(4)(C), and environmental performance, be
placed in service as soon as possible, and</text>
</clause><clause id="IDCAFE9F39D3724C84A9E30C0EC431F613">
<enum>(ii)</enum>
<text>to allocate capacity to taxpayers which have a definite and
credible plan for placing into commercial operation a qualifying clean coal
technology unit, including—</text>
<subclause id="IDE5281D79CB0E4BAD825D0351667A3C8C">
<enum>(I)</enum>
<text>a site,</text>
</subclause><subclause id="ID9569CEAB057241BD9974852A4B2D4331">
<enum>(II)</enum>
<text>contractual commitments for procurement and construction or, in
the case of regulated utilities, the agreement of the State utility
commission,</text>
</subclause><subclause id="IDFF9DBB0C035F46D6B78E6DEF75A588C8">
<enum>(III)</enum>
<text>filings for all necessary preconstruction approvals,</text>
</subclause><subclause id="ID3DEFA90ABB1640849E432DD8FEA63298">
<enum>(IV)</enum>
<text>a demonstrated record of having successfully completed
comparable projects on a timely basis, and</text>
</subclause><subclause id="ID8E1CF8F678794BAEA9639CED4EDA733C">
<enum>(V)</enum>
<text>such other factors that the Secretary determines are
appropriate,</text>
</subclause></clause></subparagraph><subparagraph id="ID66948E267CCB4A869C67CD6470B62DF1">
<enum>(D)</enum>
<text>to allocate the national megawatt capacity limitation to a
portion of the capacity of a qualifying clean coal technology unit if the
Secretary determines that such an allocation would maximize the amount of
efficient production encouraged with the available tax credits,</text>
</subparagraph><subparagraph id="ID001F035386264544907A9261BE5EA2E6">
<enum>(E)</enum>
<text>to set progress requirements and conditional approvals so that
capacity allocations for clean coal technology units which become unlikely to
meet the necessary conditions for qualifying can be reallocated by the
Secretary to other clean coal technology units, and</text>
</subparagraph><subparagraph id="IDBBB9E7EA9E264695B7BD89DBE9A58B80">
<enum>(F)</enum>
<text>to provide taxpayers with opportunities to correct
administrative errors and omissions with respect to allocations and record
keeping within a reasonable period after discovery, taking into account the
availability of regulations and other administrative guidance from the
Secretary.</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID49A114DAEBB84199AE4EE43743B9ACE9">
<enum>(b)</enum>
<header>Credit treated as business credit</header>
<text>Section 38(b) (relating to current year business credit), as
amended by this Act, is amended by striking <quote>plus</quote> at the end of
paragraph (19), by striking the period at the end of paragraph (20) and
inserting <quote>, plus</quote>, and by adding at the end the following new
paragraph:</text>
<quoted-block id="IDAAC85112AEBE46839B2055CEF73AF1B7">
<paragraph id="ID6FA84F09593B4C608610833CC5F32B68">
<enum>(21)</enum>
<text>the qualifying clean coal technology production credit
determined under section 45K(a).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID6C2246E453584386AF75067BC57E7F7A">
<enum>(c)</enum>
<header>Clerical amendment</header>
<text>The table of sections for subpart D of part IV of subchapter A of
chapter 1, as amended by this Act, is amended by adding at the end the
following new item:</text>
<quoted-block id="ID8B256BDE63334C518ED336E26ADD4084" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 45K. Credit for production from a
qualifying clean coal technology
unit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID1EBCEC8280084A01ABE20ED020791C29">
<enum>(d)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to production
after December 31, 2004, in taxable years ending after such date.</text>
</subsection></section></part><part id="IDA81BA204DE014F59A5DDD3BA16B5CAE9">
<enum>II</enum>
<header>Incentives for early commercial applications of advanced clean
coal technologies</header>
<section id="ID9CCC72F42980441C8BCFE9CC6168E3FF">
<enum>212.</enum>
<header>Credit for investment in qualifying advanced clean coal
technology</header>
<subsection id="ID4BB61005F6F341B5A2EB437A8396CC80">
<enum>(a)</enum>
<header>Allowance of qualifying advanced clean coal technology unit
credit</header>
<text>Section 46 (relating to amount of credit) is amended by striking
<quote>and</quote> at the end of paragraph (1), by striking the period at the
end of paragraph (2) and inserting <quote>, and</quote>, and by adding at the
end the following new paragraph:</text>
<quoted-block id="IDA513F2C6A5D74286A4EF9AD879B0C429">
<paragraph id="ID6415C455381F4928BBE216F21F4942A1">
<enum>(3)</enum>
<text>the qualifying advanced clean coal technology unit
credit.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDDDC2B84E1E564EDA909CB03A0A0AAFE0">
<enum>(b)</enum>
<header>Amount of qualifying advanced clean coal technology unit
credit</header>
<text>Subpart E of part IV of subchapter A of chapter 1 (relating to
rules for computing investment credit) is amended by inserting after section 48
the following new section:</text>
<quoted-block id="ID807FAE3F83544059B82F0961F781A590">
<section id="ID71D593DA60754FE484ECDE1198A25A57">
<enum>48A.</enum>
<header>Qualifying advanced clean coal technology unit
credit</header>
<subsection id="ID2FEAA38323864B0BBE067A0440597282">
<enum>(a)</enum>
<header>In general</header>
<text>For purposes of section 46, the qualifying advanced clean coal
technology unit credit for any taxable year is an amount equal to 10 percent of
the applicable percentage of the qualified investment in a qualifying advanced
clean coal technology unit for such taxable year.</text>
</subsection><subsection id="ID7D8439BB5D674A9498E8DAA4A1973264">
<enum>(b)</enum>
<header>Qualifying advanced clean coal technology unit</header>
<paragraph id="IDAE5DAB54AE6548F79FB85C53EB3FC4AD">
<enum>(1)</enum>
<header>In general</header>
<text>For purposes of subsection (a), the term <term>qualifying
advanced clean coal technology unit</term> means an advanced clean coal
technology unit of the taxpayer—</text>
<subparagraph id="ID0962AB24F6AE4145B01E0317F2CDB5D4">
<enum>(A)</enum>
<clause commented="no" display-inline="yes-display-inline" id="IDA97CACFA3263401BA07AF252A6D32772"><enum>(i)</enum>
<text>in the case of a unit first placed in service after December
31, 2004, the original use of which commences with the taxpayer, or</text>
</clause><clause id="ID683D39441E1E4335BF8556672523094C" indent="up1">
<enum>(ii)</enum>
<text>in the case of the retrofitting or repowering of a unit first
placed in service before January 1, 2005, the retrofitting or repowering of
which is completed by the taxpayer after such date, or</text>
</clause></subparagraph><subparagraph id="ID7BAE14E17F0042FAA0A7EB70DB2031BA">
<enum>(B)</enum>
<text>which is depreciable under section 167,</text>
</subparagraph><subparagraph id="IDCAAC9A63AF4142C593BE2C1AEE968616">
<enum>(C)</enum>
<text>which has a useful life of not less than 4 years,</text>
</subparagraph><subparagraph id="IDF3C01255FDA4412B949288238C028614">
<enum>(D)</enum>
<text>which is located in the United States,</text>
</subparagraph><subparagraph id="IDA99F694D1BA3485D8D9837F00903B60C">
<enum>(E)</enum>
<text>which is not receiving nor is scheduled to receive funding
under the Clean Coal Technology Program, the Power Plant Improvement
Initiative, or the Clean Coal Power Initiative administered by the Secretary of
Energy,</text>
</subparagraph><subparagraph id="IDE3140C8960E14E489F40E6A78C9E33EE">
<enum>(F)</enum>
<text>which is not a qualifying clean coal technology unit,
and</text>
</subparagraph><subparagraph id="ID134F00BE46D6421DB4A21B86483FAAC0">
<enum>(G)</enum>
<text>which receives an allocation of a portion of the national
megawatt capacity limitation under subsection (f).</text>
</subparagraph></paragraph><paragraph id="ID51F66AA81A4542EF80EB91926022EFA0">
<enum>(2)</enum>
<header>Special rule for sale-leasebacks</header>
<text>For purposes of subparagraph (A) of paragraph (1), in the case
of a unit which—</text>
<subparagraph id="IDF857072F5BC44469A21E99D525DE5B93">
<enum>(A)</enum>
<text>is originally placed in service by a person, and</text>
</subparagraph><subparagraph id="ID8CA49BCF9D334AD8B487FCC441544C49">
<enum>(B)</enum>
<text>is sold and leased back by such person, or is leased to such
person, within 3 months after the date such unit was originally placed in
service, for a period of not less than 12 years, such unit shall be treated as
originally placed in service not earlier than the date on which such unit is
used under the leaseback (or lease) referred to in subparagraph (B). The
preceding sentence shall not apply to any property if the lessee and lessor of
such property make an election under this sentence. Such an election, once
made, may be revoked only with the consent of the Secretary.</text>
</subparagraph></paragraph><paragraph id="ID8B4E69ADAD0C4098BD9D50D236480178">
<enum>(3)</enum>
<header>Noncompliance with pollution laws</header>
<text>For purposes of this subsection, a unit which is not in
compliance with the applicable State and Federal pollution prevention, control,
and permit requirements for any period of time shall not be considered to be a
qualifying advanced clean coal technology unit during such period.</text>
</paragraph></subsection><subsection id="IDE59CBE978752479F91587793020422C2">
<enum>(c)</enum>
<header>Applicable percentage</header>
<text>For purposes of this section, with respect to any qualifying
advanced clean coal technology unit, the applicable percentage is the
percentage equal to the ratio which the portion of the national megawatt
capacity limitation allocated to the taxpayer with respect to such unit under
subsection (f) bears to the total megawatt capacity of such unit.</text>
</subsection><subsection id="ID42D01292B569432588D554D89F6FBC72">
<enum>(d)</enum>
<header>Advanced clean coal technology unit</header>
<text>For purposes of this section—</text>
<paragraph id="IDF8B31F2540B241A2976145D3B0C05852">
<enum>(1)</enum>
<header>In general</header>
<text>The term <term>advanced clean coal technology unit</term> means
a new, retrofit, or repowering unit of the taxpayer which—</text>
<subparagraph id="ID08DC458103314D3BB514D81D2E8F8D38">
<enum>(A)</enum>
<text>is—</text>
<clause id="ID0B23C9594879490DA964E26BC3046F91">
<enum>(i)</enum>
<text>an eligible advanced pulverized coal or atmospheric fluidized
bed combustion technology unit,</text>
</clause><clause id="ID9F9B6413FE2D493FA758C9EA1E6C3AF0">
<enum>(ii)</enum>
<text>an eligible pressurized fluidized bed combustion technology
unit,</text>
</clause><clause id="ID10E3A7DB130B4EE981651D880278520B">
<enum>(iii)</enum>
<text>an eligible integrated gasification combined cycle technology
unit, or</text>
</clause><clause id="ID56DA4F0AC33E473CA540E700161DA99B">
<enum>(iv)</enum>
<text>an eligible other technology unit, and</text>
</clause></subparagraph><subparagraph id="IDFBCECBF99C1F45EFB15474414EA73E34">
<enum>(B)</enum>
<text>meets the carbon emission rate requirements of paragraph
(6).</text>
</subparagraph></paragraph><paragraph id="ID4A7C526E5844440FAFCA33A17808147F">
<enum>(2)</enum>
<header>Eligible advanced pulverized coal or atmospheric fluidized
bed combustion technology unit</header>
<text>The term <term>eligible advanced pulverized coal or atmospheric
fluidized bed combustion technology unit</term> means a clean coal technology
unit using advanced pulverized coal or atmospheric fluidized bed combustion
technology which—</text>
<subparagraph id="IDCFC9146002084DB2BFC0766421EB260C">
<enum>(A)</enum>
<text>is placed in service after December 31, 2004, and before
January 1, 2013, and</text>
</subparagraph><subparagraph id="IDBA2D1BAB3A264C068FD118659D79794A">
<enum>(B)</enum>
<text>has a design net heat rate of not more than 8,500 (8,900 in the
case of units placed in service before 2009).</text>
</subparagraph></paragraph><paragraph id="ID67BD5EE0498945BFBE6B81205DFBFFC3">
<enum>(3)</enum>
<header>Eligible pressurized fluidized bed combustion technology
unit</header>
<text>The term <term>eligible pressurized fluidized bed combustion
technology unit</term> means a clean coal technology unit using pressurized
fluidized bed combustion technology which—</text>
<subparagraph id="IDF2922A7CFB814B5981C3733BF82B3EE4">
<enum>(A)</enum>
<text>is placed in service after December 31, 2004, and before
January 1, 2017, and</text>
</subparagraph><subparagraph id="IDF1CD5B2B6911493CA12EBB75FB68DA45">
<enum>(B)</enum>
<text>has a design net heat rate of not more than 7,720 (8,900 in the
case of units placed in service before 2009, and 8,500 in the case of units
placed in service after 2008 and before 2013).</text>
</subparagraph></paragraph><paragraph id="IDECC29BD5187E4FD3A138117781EDC49B">
<enum>(4)</enum>
<header>Eligible integrated gasification combined cycle technology
unit</header>
<text>The term <term>eligible integrated gasification combined cycle
technology unit</term> means a clean coal technology unit using integrated
gasification combined cycle technology, with or without fuel or chemical
co-production, which—</text>
<subparagraph id="ID3FBB9E6BBC3E4827AD819A233B9938BD">
<enum>(A)</enum>
<text>is placed in service after December 31, 2004, and before
January 1, 2017,</text>
</subparagraph><subparagraph id="ID377BC49025D94EBCAFB7095E2033EAB3">
<enum>(B)</enum>
<text>has a design net heat rate of not more than 7,720 (8,900 in the
case of units placed in service before 2009, and 8,500 in the case of units
placed in service after 2008 and before 2013), and</text>
</subparagraph><subparagraph id="ID0299CA80D918422AB4CCF5A167D7120E">
<enum>(C)</enum>
<text>has a net thermal efficiency (HHV) using coal with fuel or
chemical co-production of not less than 44.2 percent (38.4 percent in the case
of units placed in service before 2009, and 40.2 percent in the case of units
placed in service after 2008 and before 2013).</text>
</subparagraph></paragraph><paragraph id="ID58E662F3954F4FA7B712FB0244DC4561">
<enum>(5)</enum>
<header>Eligible other technology unit</header>
<text>The term <term>eligible other technology unit</term> means a
clean coal technology unit using any other technology for the production of
electricity which is placed in service after December 31, 2004, and before
January 1, 2017.</text>
</paragraph><paragraph id="ID4AC6D6966A434B0392FBDA1D6482B9DB">
<enum>(6)</enum>
<header>Carbon emission rate requirements</header>
<subparagraph id="IDDEEC80FBC9B548A3A82BF23343675DD8">
<enum>(A)</enum>
<header>In general</header>
<text>Except as provided in subparagraph (B), a unit meets the
requirements of this paragraph if—</text>
<clause id="ID3D4A3EA72EBD40ADA24FD42FB1757F53">
<enum>(i)</enum>
<text>in the case of a unit using design coal with a heat content of
not more than 9,000 Btu per pound, the carbon emission rate is less than 0.60
pound of carbon per kilowatt hour, and</text>
</clause><clause id="ID1C50235893BC4EA2812D6BA1653FD019">
<enum>(ii)</enum>
<text>in the case of a unit using design coal with a heat content of
more than 9,000 Btu per pound, the carbon emission rate is less than 0.54 pound
of carbon per kilowatt hour.</text>
</clause></subparagraph><subparagraph id="IDBDD40736FC674806A3792F0F2719FF60">
<enum>(B)</enum>
<header>Eligible other technology unit</header>
<text>In the case of an eligible other technology unit, subparagraph
(A) shall be applied by substituting <quote>0.51</quote> and
<quote>0.459</quote> for <quote>0.60</quote> and <quote>0.54</quote>,
respectively.</text>
</subparagraph></paragraph></subsection><subsection id="ID35D0B569D1AE405F8FA7FE42D1797635">
<enum>(e)</enum>
<header>General definitions</header>
<text>Any term used in this section which is also used in section 45K
shall have the meaning given such term in section 45M.</text>
</subsection><subsection id="IDCE3B03C6662E44B38DDBA9B7163BA5B1">
<enum>(f)</enum>
<header>National limitation on the aggregate capacity of advanced
clean coal technology units</header>
<paragraph id="IDD481E09915F5407EB2A50FC1DFB53543">
<enum>(1)</enum>
<header>In general</header>
<text>For purposes of subsection (b)(1)(G), the national megawatt
capacity limitation is—</text>
<subparagraph id="ID7A6C3CF1509D4420A53360DBF11F5BE2">
<enum>(A)</enum>
<text>for qualifying advanced clean coal technology units using
advanced pulverized coal or atmospheric fluidized bed combustion technology,
not more than 1,000 megawatts (not more than 500 megawatts in the case of units
placed in service before 2009),</text>
</subparagraph><subparagraph id="ID0FC175A757244316AE1B52C66D03D373">
<enum>(B)</enum>
<text>for such units using pressurized fluidized bed combustion
technology, not more than 500 megawatts (not more than 250 megawatts in the
case of units placed in service before 2009),</text>
</subparagraph><subparagraph id="ID09CACFE2F4D34320B3169C56E3F40D12">
<enum>(C)</enum>
<text>for such units using integrated gasification combined cycle
technology, with or without fuel or chemical co-production, not more than 2,000
megawatts (not more than 1,000 megawatts in the case of units placed in service
before 2009), and</text>
</subparagraph><subparagraph id="ID5610F1085E1A423C8CFAC0D3AEF33AD1">
<enum>(D)</enum>
<text>for such units using other technology for the production of
electricity, not more than 500 megawatts (not more than 250 megawatts in the
case of units placed in service before 2009).</text>
</subparagraph></paragraph><paragraph id="ID26AC38EFB90E4FCD8D815C16DAC5DF49">
<enum>(2)</enum>
<header>Allocation of limitation</header>
<text>The Secretary shall allocate the national megawatt capacity
limitation for qualifying advanced clean coal technology units in such manner
as the Secretary may prescribe under the regulations under paragraph
(3).</text>
</paragraph><paragraph id="ID9193F06DA57145C5AB4A7150D9EF32AC">
<enum>(3)</enum>
<header>Regulations</header>
<text>Not later than 6 months after the date of the enactment of this
section, the Secretary shall prescribe such regulations as may be necessary or
appropriate—</text>
<subparagraph id="ID47309BCEC65749F0B8C2231254FDDBBA">
<enum>(A)</enum>
<text>to carry out the purposes of this subsection and section
45L,</text>
</subparagraph><subparagraph id="ID93C7998E0F9947C6AA97F4DB95C76A04">
<enum>(B)</enum>
<text>to limit the capacity of any qualifying advanced clean coal
technology unit to which this section applies so that the combined megawatt
capacity of all such units to which this section applies does not exceed 4,000
megawatts,</text>
</subparagraph><subparagraph id="ID21A43D2FD76048DE87296151516E2E4B">
<enum>(C)</enum>
<text>to provide a certification process described in section
45K(e)(3)(C),</text>
</subparagraph><subparagraph id="ID3524D56837B940FABB8F459AA8A67025">
<enum>(D)</enum>
<text>to carry out the purposes described in subparagraphs (D), (E),
and (F) of section 45K(e)(3), and</text>
</subparagraph><subparagraph id="ID3EABA9A89CA94ED0B4C36D6B38B93493">
<enum>(E)</enum>
<text>to reallocate capacity which is not allocated to any technology
described in subparagraphs (A) through (D) of paragraph (1) because an
insufficient number of qualifying units request an allocation for such
technology, to another technology described in such subparagraphs in order to
maximize the amount of energy efficient production encouraged with the
available tax credits.</text>
</subparagraph></paragraph><paragraph id="ID8275F28970F3431FBC2E5581FBB672DA">
<enum>(4)</enum>
<header>Selection criteria</header>
<text>For purposes of this subsection, the selection criteria for
allocating the national megawatt capacity limitation to qualifying advanced
clean coal technology units—</text>
<subparagraph id="ID3BE255D3C9034147BAC47BB56DA2772C">
<enum>(A)</enum>
<text>shall be established by the Secretary of Energy as part of a
competitive solicitation,</text>
</subparagraph><subparagraph id="IDD9FD470D489E4E34AE8EF397B65930B1">
<enum>(B)</enum>
<text>shall include primary criteria of minimum design net heat rate,
maximum design thermal efficiency, environmental performance, and lowest cost
to the Government, and</text>
</subparagraph><subparagraph id="ID089A1247E47A4399A29C044E588A70DD">
<enum>(C)</enum>
<text>shall include supplemental criteria as determined appropriate
by the Secretary of Energy.</text>
</subparagraph></paragraph></subsection><subsection id="ID81C05B1DE2EE42308B16B87685BAD596">
<enum>(g)</enum>
<header>Qualified investment</header>
<text>For purposes of subsection (a), the term <term>qualified
investment</term> means, with respect to any taxable year, the basis of a
qualifying advanced clean coal technology unit placed in service by the
taxpayer during such taxable year (in the case of a unit described in
subsection (b)(1)(A)(ii), only that portion of the basis of such unit which is
properly attributable to the retrofitting or repowering of such unit).</text>
</subsection><subsection id="ID93DE81B89C66415C91E4AD88FF1277E7">
<enum>(h)</enum>
<header>Qualified progress expenditures</header>
<paragraph id="ID2F785031BDC840A2BF451BF4257642B2">
<enum>(1)</enum>
<header>Increase in qualified investment</header>
<text>In the case of a taxpayer who has made an election under
paragraph (5), the amount of the qualified investment of such taxpayer for the
taxable year (determined under subsection (g) without regard to this
subsection) shall be increased by an amount equal to the aggregate of each
qualified progress expenditure for the taxable year with respect to progress
expenditure property.</text>
</paragraph><paragraph id="ID270A3DB8FA2F40DE9AF1ACF0D80FA071">
<enum>(2)</enum>
<header>Progress expenditure property defined</header>
<text>For purposes of this subsection, the term <term>progress
expenditure property</term> means any property being constructed by or for the
taxpayer and which it is reasonable to believe will qualify as a qualifying
advanced clean coal technology unit which is being constructed by or for the
taxpayer when it is placed in service.</text>
</paragraph><paragraph id="IDA9B02085F7CF4D0F96AAD0CE7A5BF9E4">
<enum>(3)</enum>
<header>Qualified progress expenditures defined</header>
<text>For purposes of this subsection—</text>
<subparagraph id="IDA68C421405EE4D47B25B58574AF6C63D">
<enum>(A)</enum>
<header>Self-constructed property</header>
<text>In the case of any self-constructed property, the term
<term>qualified progress expenditures</term> means the amount which, for
purposes of this subpart, is properly chargeable (during such taxable year) to
capital account with respect to such property.</text>
</subparagraph><subparagraph id="IDD91E9A0719A64184A69F6829DBD8B66C">
<enum>(B)</enum>
<header>Nonself-constructed property</header>
<text>In the case of nonself-constructed property, the term
<term>qualified progress expenditures</term> means the amount paid during the
taxable year to another person for the construction of such property.</text>
</subparagraph></paragraph><paragraph id="IDC14023586CC74999A2E8EB8BF0BB1FA2">
<enum>(4)</enum>
<header>Other definitions</header>
<text>For purposes of this subsection—</text>
<subparagraph id="ID6A500F78FEAA4A08AAEC70E027CDBE14">
<enum>(A)</enum>
<header>Self-constructed property</header>
<text>The term <term>self-constructed property</term> means property
for which it is reasonable to believe that more than half of the construction
expenditures will be made directly by the taxpayer.</text>
</subparagraph><subparagraph id="ID387BB6D8B20D49C1A3BF59C85B8804E8">
<enum>(B)</enum>
<header>Nonself-constructed property</header>
<text>The term <term>nonself-constructed property</term> means
property which is not self-constructed property.</text>
</subparagraph><subparagraph id="ID1F18C70CFA9647A9851112648FA1A09A">
<enum>(C)</enum>
<header>Construction, etc</header>
<text>The term <term>construction</term> includes reconstruction and
erection, and the term <term>constructed</term> includes reconstructed and
erected.</text>
</subparagraph><subparagraph id="ID5C0657D7F0ED4223B6B8B12B35ECCF8A">
<enum>(D)</enum>
<header>Only construction of qualifying advanced clean coal
technology unit to be taken into account</header>
<text>Construction shall be taken into account only if, for purposes
of this subpart, expenditures therefor are properly chargeable to capital
account with respect to the property.</text>
</subparagraph></paragraph><paragraph id="IDAAEB41FC98304EB7B5C261C56C34CABF">
<enum>(5)</enum>
<header>Election</header>
<text>An election under this subsection may be made at such time and
in such manner as the Secretary may by regulations prescribe. Such an election
shall apply to the taxable year for which made and to all subsequent taxable
years. Such an election, once made, may not be revoked except with the consent
of the Secretary.</text>
</paragraph></subsection><subsection id="ID436D5CB737BF4B8ABC96D8A5CCA60C14">
<enum>(i)</enum>
<header>Coordination with other credits</header>
<text>This section shall not apply to any property with respect to
which the rehabilitation credit under section 47 or the energy credit under
section 48 is allowed unless the taxpayer elects to waive the application of
such credit to such property.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID87A4CE7A521F402B80FBB1370002A6EB">
<enum>(c)</enum>
<header>Recapture</header>
<text>Section 50(a) (relating to other special rules) is amended by
adding at the end the following new paragraph:</text>
<quoted-block id="ID86D8B164E0CF4E11A9D82CA481314A90">
<paragraph id="IDF3612F8DB5F1447B83D632C416031743">
<enum>(6)</enum>
<header>Special rules relating to qualifying advanced clean coal
technology unit</header>
<text>For purposes of applying this subsection in the case of any
credit allowable by reason of section 48A, the following rules shall
apply:</text>
<subparagraph id="ID8292439A1227441B8927E5DFD5377083">
<enum>(A)</enum>
<header>General rule</header>
<text>In lieu of the amount of the increase in tax under paragraph
(1), the increase in tax shall be an amount equal to the investment tax credit
allowed under section 38 for all prior taxable years with respect to a
qualifying advanced clean coal technology unit (as defined by section
48A(b)(1)) multiplied by a fraction the numerator of which is the number of
years remaining to fully depreciate under this title the qualifying advanced
clean coal technology unit disposed of, and the denominator of which is the
total number of years over which such unit would otherwise have been subject to
depreciation. For purposes of the preceding sentence, the year of disposition
of the qualifying advanced clean coal technology unit shall be treated as a
year of remaining depreciation.</text>
</subparagraph><subparagraph id="ID93E4FEE26B8343E38D102D3F30A87098">
<enum>(B)</enum>
<header>Property ceases to qualify for progress expenditures</header>
<text>Rules similar to the rules of paragraph (2) shall apply in the
case of qualified progress expenditures for a qualifying advanced clean coal
technology unit under section 48A, except that the amount of the increase in
tax under subparagraph (A) of this paragraph shall be substituted for the
amount described in such paragraph (2).</text>
</subparagraph><subparagraph id="ID5FA56789D46B4937ACC616F5A97E9E49">
<enum>(C)</enum>
<header>Application of paragraph</header>
<text>This paragraph shall be applied separately with respect to the
credit allowed under section 38 regarding a qualifying advanced clean coal
technology unit.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID55DAE67508994BB2A30E8C02A4FEB231">
<enum>(d)</enum>
<header>Technical amendments</header>
<paragraph id="ID8020F68BEB11433F8A99F2B4A9135FA8">
<enum>(1)</enum>
<text>Section 49(a)(1)(C) is amended by striking <quote>and</quote> at
the end of clause (ii), 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 id="ID2FA2869FE8F3482F89DAA7DA68B41593">
<clause id="IDEFE1D56232DD4A89977871463A93559D">
<enum>(iv)</enum>
<text>the portion of the basis of any qualifying advanced clean coal
technology unit attributable to any qualified investment (as defined by section
48A(g)).</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID2C6E31D4C83844709463E33DBE407CFB">
<enum>(2)</enum>
<text>Section 50(a)(4) is amended by striking <quote>and (2)</quote>
and inserting <quote>, (2), and (6)</quote>.</text>
</paragraph><paragraph id="ID89555D343BF140ED9A3E4D509F3620B1">
<enum>(3)</enum>
<text>Section 50(c) is amended by adding at the end the following new
paragraph:</text>
<quoted-block id="ID8AF565D4C0724B548C999CEE874EC92D">
<paragraph id="ID37FE58A816A54714B02513D0D15B9128">
<enum>(6)</enum>
<header>Nonapplication</header>
<text>Paragraphs (1) and (2) shall not apply to any qualifying
advanced clean coal technology unit credit under section 48A.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID2562B7D5F642408BAE3BD51C061F0462">
<enum>(4)</enum>
<text>The table of sections for subpart E of part IV of subchapter A of
chapter 1 is amended by inserting after the item relating to section 48 the
following new item:</text>
<quoted-block id="ID1DDE9578974F457BB47A41E33E754A7D" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 48A. Qualifying advanced clean coal
technology unit
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="IDF4E167AF03EF4B4087A2A2E7032F0BE8">
<enum>(e)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to periods after
December 31, 2004, 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="IDB01FAB963F3846399AF6F94F69DCA97E">
<enum>213.</enum>
<header>Credit for production from a qualifying advanced clean coal
technology unit</header>
<subsection id="IDCF72A70247E34FEC8DC8DF7AA4FE9071">
<enum>(a)</enum>
<header>In general</header>
<text>Subpart D of part IV of subchapter A of chapter 1 (relating to
business related credits), as amended by this Act, is amended by adding at the
end the following new section:</text>
<quoted-block id="IDAEE0ABA7F65F456DBFBEC10B7200DAB4">
<section id="IDDB393AE7110D452AB3D23EC5B5A2D1A8">
<enum>45L.</enum>
<header>Credit for production from a qualifying advanced clean coal
technology unit</header>
<subsection id="ID376441E2F2C1474E919DEB791AB3512F">
<enum>(a)</enum>
<header>General rule</header>
<text>For purposes of section 38, the qualifying advanced clean coal
technology production credit of any taxpayer for any taxable year is equal
to—</text>
<paragraph id="ID7E9473E2F970450D8AF1E693922E8933">
<enum>(1)</enum>
<text>the applicable amount of advanced clean coal technology
production credit, multiplied by</text>
</paragraph><paragraph id="ID1DD7763BBD13403F9074092FCAFE666B">
<enum>(2)</enum>
<text>the applicable percentage (as determined under section 48A(c))
of the sum of—</text>
<subparagraph id="ID75E84720A08B4DEB91C4A2415367F534">
<enum>(A)</enum>
<text>the kilowatt hours of electricity, plus</text>
</subparagraph><subparagraph id="ID37B732A0ACB7459AB323674571373D78">
<enum>(B)</enum>
<text>each 3,413 Btu of fuels or chemicals, produced by the taxpayer
during such taxable year at a qualifying advanced clean coal technology unit,
but only if such production occurs during the 10-year period beginning on the
date the unit was originally placed in service (or returned to service after
becoming a qualifying advanced clean coal technology unit).</text>
</subparagraph></paragraph></subsection><subsection id="ID70295E2CF4BE4FA78AA658F8E2D9810E">
<enum>(b)</enum>
<header>Applicable amount</header>
<text>For purposes of this section—</text>
<paragraph id="ID97193141CD04431AB0EBFE4C520331B9">
<enum>(1)</enum>
<header>In general</header>
<text>Except as provided in paragraph (2), the applicable amount of
advanced clean coal technology production credit with respect to production
from a qualifying advanced clean coal technology unit shall be determined as
follows:</text>
<subparagraph id="IDA7767B72C0B34BFBADE09213906357BB">
<enum>(A)</enum>
<text>If the qualifying advanced clean coal technology unit is
producing electricity only:</text>
<clause id="ID6291B248EE1D40299013EECCFFA28626">
<enum>(i)</enum>
<text>In the case of a unit originally placed in service before 2009,
if—</text>
<table blank-lines-before="1" line-rules="hor">
<ttitle> </ttitle>
<tgroup cols="3" grid-typeface="1.1" min-space="1" thead-tbody-ldg-size="8.8.8" ttitle-size="0"><colspec coldef="txt" colname="col1" min-data-value="100"></colspec><colspec align="center" coldef="fig" colname="col2" min-data-value="12"></colspec><colspec align="center" coldef="fig" colname="col3" min-data-value="12"></colspec>
<thead>
<row><entry colname="col1" morerows="1">The design net heat rate
is:</entry><entry align="center" colname="col2" nameend="col3" namest="col2">The applicable amount is:</entry>
</row>
<row><entry colname="col2">For 1st 5 years of such
service</entry><entry colname="col3">For 2d 5 years of such service</entry>
</row>
</thead>
<tbody>
<row><entry stub-definition="txt-ldr" stub-hierarchy="1">Not more
than 8,500</entry><entry>$.0060</entry><entry>$.0038 </entry>
</row>
<row><entry stub-definition="txt-ldr" stub-hierarchy="1">More
than 8,500 but not more than
8,750</entry><entry>$.0025</entry><entry>$.0010 </entry>
</row>
<row><entry stub-definition="txt-ldr" stub-hierarchy="1">More
than 8,750 but less than
8,900</entry><entry>$.0010</entry><entry>$.0010.</entry>
</row>
</tbody>
</tgroup>
</table>
</clause><clause id="ID0EC4A404E0414E15ABFB018B9F9E19E7">
<enum>(ii)</enum>
<text>In the case of a unit originally placed in service after 2008
and before 2013, if—</text>
<table blank-lines-before="1" line-rules="hor">
<ttitle> </ttitle>
<tgroup cols="3" grid-typeface="1.1" min-space="1" thead-tbody-ldg-size="8.8.8" ttitle-size="0"><colspec coldef="txt" colname="col1" min-data-value="100"></colspec><colspec align="center" coldef="fig" colname="col2" min-data-value="12"></colspec><colspec align="center" coldef="fig" colname="col3" min-data-value="12"></colspec>
<thead>
<row><entry colname="col1" morerows="1">The design net heat rate
is:</entry><entry align="center" colname="col2" nameend="col3" namest="col2">The applicable amount is:</entry>
</row>
<row><entry colname="col2">For 1st 5 years of such
service</entry><entry colname="col3">For 2d 5 years of such service</entry>
</row>
</thead>
<tbody>
<row><entry stub-definition="txt-ldr" stub-hierarchy="1">Not more
than 7,770</entry><entry>$.0105</entry><entry>$.0090 </entry>
</row>
<row><entry stub-definition="txt-ldr" stub-hierarchy="1">More
than 7,770 but not more than
8,125</entry><entry>$.0085</entry><entry>$.0068 </entry>
</row>
<row><entry stub-definition="txt-ldr" stub-hierarchy="1">More
than 8,125 but less than
8,500</entry><entry>$.0075</entry><entry>$.0055.</entry>
</row>
</tbody>
</tgroup>
</table>
</clause><clause id="ID8C4B7956B73542178B680B7A62CFDC93">
<enum>(iii)</enum>
<text>In the case of a unit originally placed in service after 2012
and before 2017, if—</text>
<table blank-lines-before="1" line-rules="hor">
<ttitle> </ttitle>
<tgroup cols="3" grid-typeface="1.1" min-space="1" thead-tbody-ldg-size="8.8.8" ttitle-size="0"><colspec coldef="txt" colname="col1" min-data-value="100"></colspec><colspec align="center" coldef="fig" colname="col2" min-data-value="12"></colspec><colspec align="center" coldef="fig" colname="col3" min-data-value="12"></colspec>
<thead>
<row><entry colname="col1" morerows="1">The design net heat rate
is:</entry><entry align="center" colname="col2" nameend="col3" namest="col2">The applicable amount is:</entry>
</row>
<row><entry colname="col2">For 1st 5 years of such
service</entry><entry colname="col3">For 2d 5 years of such service</entry>
</row>
</thead>
<tbody>
<row><entry stub-definition="txt-ldr" stub-hierarchy="1">Not more
than 7,380</entry><entry>$.0140</entry><entry>$.0115 </entry>
</row>
<row><entry stub-definition="txt-ldr" stub-hierarchy="1">More
than 7,380 but not more than
7,720</entry><entry>$.0120</entry><entry>$.0090.</entry>
</row>
</tbody>
</tgroup>
</table>
</clause></subparagraph><subparagraph id="ID54E8B92056664265B9FEB909B07845F3">
<enum>(B)</enum>
<text>If the qualifying advanced clean coal technology unit is
producing fuel or chemicals:</text>
<clause id="IDFCDC021C5E684112945E9F74A0C03CEE">
<enum>(i)</enum>
<text>In the case of a unit originally placed in service before 2009,
if—</text>
<table blank-lines-before="1" line-rules="hor">
<ttitle> </ttitle>
<tgroup cols="3" grid-typeface="1.1" min-space="1" thead-tbody-ldg-size="8.8.8" ttitle-size="0"><colspec coldef="txt" colname="col1" min-data-value="100"></colspec><colspec align="center" coldef="fig" colname="col2" min-data-value="12"></colspec><colspec align="center" coldef="fig" colname="col3" min-data-value="12"></colspec>
<thead>
<row><entry colname="col1" morerows="1">The unit design net
thermal efficiency (HHV) is:</entry><entry align="center" colname="col2" nameend="col3" namest="col2">The applicable amount is:</entry>
</row>
<row><entry colname="col2">For 1st 5 years of such
service</entry><entry colname="col3">For 2d 5 years of such service</entry>
</row>
</thead>
<tbody>
<row><entry stub-definition="txt-ldr" stub-hierarchy="1">Not less
than 40.2 percent</entry><entry>$.0060</entry><entry>$.0038 </entry>
</row>
<row><entry stub-definition="txt-ldr" stub-hierarchy="1">Less
than 40.2 but not less than 39
percent</entry><entry>$.0025</entry><entry>$.0010 </entry>
</row>
<row><entry stub-definition="txt-ldr" stub-hierarchy="1">Less
than 39 but not less than 38.4
percent</entry><entry>$.0010</entry><entry>$.0010.</entry>
</row>
</tbody>
</tgroup>
</table>
</clause><clause id="IDE1793E8E10B647F6BA64DA753297906C">
<enum>(ii)</enum>
<text>In the case of a unit originally placed in service after 2008
and before 2013, if—</text>
<table blank-lines-before="1" line-rules="hor">
<ttitle> </ttitle>
<tgroup cols="3" grid-typeface="1.1" min-space="1" thead-tbody-ldg-size="8.8.8" ttitle-size="0"><colspec coldef="txt" colname="col1" min-data-value="100"></colspec><colspec align="center" coldef="fig" colname="col2" min-data-value="12"></colspec><colspec align="center" coldef="fig" colname="col3" min-data-value="12"></colspec>
<thead>
<row><entry colname="col1" morerows="1">The unit design net
thermal efficiency (HHV) is:</entry><entry align="center" colname="col2" nameend="col3" namest="col2">The applicable amount is:</entry>
</row>
<row><entry colname="col2">For 1st 5 years of such
service</entry><entry colname="col3">For 2d 5 years of such service</entry>
</row>
</thead>
<tbody>
<row><entry stub-definition="txt-ldr" stub-hierarchy="1">Not less
than 43.9 percent</entry><entry>$.0105</entry><entry>$.0090 </entry>
</row>
<row><entry stub-definition="txt-ldr" stub-hierarchy="1">Less
than 43.9 but not less than 42
percent</entry><entry>$.0085</entry><entry>$.0068 </entry>
</row>
<row><entry stub-definition="txt-ldr" stub-hierarchy="1">Less
than 42 but not less than 40.2
percent</entry><entry>$.0075</entry><entry>$.0055.</entry>
</row>
</tbody>
</tgroup>
</table>
</clause><clause id="IDD0CCAE6018D04BB09F80F6FF092C5C59">
<enum>(iii)</enum>
<text>In the case of a unit originally placed in service after 2012
and before 2017, if—</text>
<table blank-lines-before="1" line-rules="hor">
<ttitle> </ttitle>
<tgroup cols="3" grid-typeface="1.1" min-space="1" thead-tbody-ldg-size="8.8.8" ttitle-size="0"><colspec coldef="txt" colname="col1" min-data-value="100"></colspec><colspec align="center" coldef="fig" colname="col2" min-data-value="12"></colspec><colspec align="center" coldef="fig" colname="col3" min-data-value="12"></colspec>
<thead>
<row><entry colname="col1" morerows="1">The unit design net
thermal efficiency (HHV) is:</entry><entry align="center" colname="col2" nameend="col3" namest="col2">The applicable amount is:</entry>
</row>
<row><entry colname="col2">For 1st 5 years of such
service</entry><entry colname="col3">For 2d 5 years of such service</entry>
</row>
</thead>
<tbody>
<row><entry stub-definition="txt-ldr" stub-hierarchy="1">Not less
than 46.3 percent</entry><entry>$.0140</entry><entry>$.0115 </entry>
</row>
<row><entry stub-definition="txt-ldr" stub-hierarchy="1">Less
than 46.3 but not less than 44.2
percent</entry><entry>$.0120</entry><entry>$.0090.</entry>
</row>
</tbody>
</tgroup>
</table>
</clause></subparagraph></paragraph><paragraph id="ID2FA2991E71C94427B240479ECBE0DAE1">
<enum>(2)</enum>
<header>Special rule for units qualifying for greater applicable
amount when placed in service</header>
<text>If, at the time a qualifying advanced clean coal technology
unit is placed in service, production from the unit would be entitled to a
greater applicable amount if such unit had been placed in service at a later
date, the applicable amount for such unit shall be such greater amount.</text>
</paragraph></subsection><subsection id="IDF35D4D3AC0B345C2843F97E072DB8E75">
<enum>(c)</enum>
<header>Inflation adjustment</header>
<text>For calendar years after 2005, each dollar amount in subsection
(b)(1) shall be adjusted by multiplying such amount by the inflation adjustment
factor for the calendar year in which the amount is applied. If any amount as
increased under the preceding sentence is not a multiple of 0.01 cent, such
amount shall be rounded to the nearest multiple of 0.01 cent.</text>
</subsection><subsection id="ID25DDA4DB7E824C9B9840D6ED20EBEEF3">
<enum>(d)</enum>
<header>Definitions and special rules</header>
<text>For purposes of this section—</text>
<paragraph id="ID3382F9556C07447B8C568BB12CA1747F">
<enum>(1)</enum>
<header>In general</header>
<text>Any term used in this section which is also used in section 45K
or 48A shall have the meaning given such term in such section.</text>
</paragraph><paragraph id="ID42FDB2CC618943EE99B9C3CFDAC82071">
<enum>(2)</enum>
<header>Applicable rules</header>
<text>The rules of paragraphs (3), (4), and (5) of section 45(e)
shall apply.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID62191DCF6A794EC6B1763B9C7B713A55">
<enum>(b)</enum>
<header>Credit treated as business credit</header>
<text>Section 38(b) (relating to current year business credit), as
amended by this Act, is amended by striking <quote>plus</quote> at the end of
paragraph (20), by striking the period at the end of paragraph (21) and
inserting <quote>, plus</quote>, and by adding at the end the following new
paragraph:</text>
<quoted-block id="ID12F020E6A2F04E14A63A91515C6BEAB6">
<paragraph id="ID304CB4A363C14779B5391E8312798F64">
<enum>(22)</enum>
<text>the qualifying advanced clean coal technology production credit
determined under section 45L(a).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDC098E20DFCD847EABF660269B54929FC">
<enum>(c)</enum>
<header>Denial of double benefit</header>
<text>Section 29(d) (relating to other definitions and special rules)
is amended by adding at the end the following new paragraph:</text>
<quoted-block id="ID38645596F637424DA5EF9EE152CEF4AB">
<paragraph id="ID7DE12B4382AB40DA921FF3E667CFDFF1">
<enum>(9)</enum>
<header>Denial of double benefit</header>
<text>This section shall not apply with respect to any qualified fuel
the production of which may be taken into account for purposes of determining
the credit under section 45L.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDDCA1DA84DAAE4B3DBB6301E2645024B9">
<enum>(d)</enum>
<header>Clerical amendment</header>
<text>The table of sections for subpart D of part IV of subchapter A of
chapter 1, as amended by this Act, is amended by adding at the end the
following new item:</text>
<quoted-block id="ID3EE8B4A8970549ED95AF81F46036532D" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 45L. Credit for production from a
qualifying advanced clean coal technology
unit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDC84C10D6253D4BDEA789C38207DC4A94">
<enum>(e)</enum>
<header>Effective date</header>
<text>The amendments made by this section shall apply to production
after December 31, 2004, in taxable years ending after such date.</text>
</subsection></section></part><part id="ID39EECF5A16DB4CE0B64D434E5A5E5DAF">
<enum>III</enum>
<header>Treatment of persons not able to use entire credit</header>
<section id="IDA616CD6867694D2F8B82BE10A1B6A60E">
<enum>214.</enum>
<header>Treatment of persons not able to use entire credit</header>
<subsection id="ID02592D1DD59849DC8A3DE00E39684BE3">
<enum>(a)</enum>
<header>In general</header>
<text>Section 45K, as added by this Act, is amended by adding at the
end the following new subsection:</text>
<quoted-block id="ID8648847769F7432B8E66C74124728941">
<subsection id="ID0B3FC6D2A78146A2AC6925016BD8BB1A">
<enum>(f)</enum>
<header>Treatment of person not able to use entire credit</header>
<paragraph id="IDF535D3D680B7437EA7D6C9BA038BB5AB">
<enum>(1)</enum>
<header>Allowance of credits</header>
<subparagraph id="IDC309331E1A554701A9E2BA611706CD5F">
<enum>(A)</enum>
<header>In general</header>
<text>Any credit allowable under this section, section 45L, or
section 48A with respect to a facility owned by a person described in
subparagraph (B) may be transferred or used as provided in this subsection, and
the determination as to whether the credit is allowable shall be made without
regard to the tax-exempt status of the person.</text>
</subparagraph><subparagraph id="ID4B3DBEFB6D4447FA86CDFF72804F5C15">
<enum>(B)</enum>
<header>Persons described</header>
<text>A person is described in this subparagraph if the person
is—</text>
<clause id="IDFC858F2A5CE243B69FD4D2712F5D6A62">
<enum>(i)</enum>
<text>an organization described in section 501(c)(12)(C) and exempt
from tax under section 501(a),</text>
</clause><clause id="IDC4172EF76A0E4B0FB54F69B22FA3758F">
<enum>(ii)</enum>
<text>an organization described in section 1381(a)(2)(C),</text>
</clause><clause id="ID220F942F85044917BFCBB811BCFC289D">
<enum>(iii)</enum>
<text>a public utility (as defined in section 136(c)(2)(B)),</text>
</clause><clause id="IDC037A15DB58448D48961886AA1C1B78E">
<enum>(iv)</enum>
<text>any State or political subdivision thereof, the District of
Columbia, or any agency or instrumentality of any of the foregoing,</text>
</clause><clause id="ID2148DA20034A4E82B15E962D880BCB88">
<enum>(v)</enum>
<text>any Indian tribal government (within the meaning of section
7871) or any agency or instrumentality thereof, or</text>
</clause><clause id="ID3E6683521B90465E92790491030CB9C3">
<enum>(vi)</enum>
<text>the Tennessee Valley Authority.</text>
</clause></subparagraph></paragraph><paragraph id="ID8C8CB19EB48D43B1A95524CD13BCC847">
<enum>(2)</enum>
<header>Transfer of credit</header>
<subparagraph id="IDE4F9C579A6A644D4B01C672F6B06592C">
<enum>(A)</enum>
<header>In general</header>
<text>A person described in clause (i), (ii), (iii), (iv), or (v) of
paragraph (1)(B) may transfer any credit to which paragraph (1)(A) applies
through an assignment to any other person not described in paragraph (1)(B).
Such transfer may be revoked only with the consent of the Secretary.</text>
</subparagraph><subparagraph id="IDB60FEED63DC344A787B6F6B2BC339191">
<enum>(B)</enum>
<header>Regulations</header>
<text>The Secretary shall prescribe such regulations as necessary to
ensure that any credit described in subparagraph (A) is claimed once and not
reassigned by such other person.</text>
</subparagraph><subparagraph id="ID958D4AAEF58A404A9EAE111F6F9112C6">
<enum>(C)</enum>
<header>Transfer proceeds treated as arising from essential
Government function</header>
<text>Any proceeds derived by a person described in clause (iii),
(iv), or (v) of paragraph (1)(B) from the transfer of any credit under
subparagraph (A) shall be treated as arising from the exercise of an essential
government function.</text>
</subparagraph></paragraph><paragraph id="ID120C2EBC52F3421E8F45B1F4189E986F">
<enum>(3)</enum>
<header>Use of credit as an offset</header>
<text>Notwithstanding any other provision of law, in the case of a
person described in clause (i), (ii), or (v) of paragraph (1)(B), any credit to
which paragraph (1)(A) applies may be applied by such person, to the extent
provided by the Secretary of Agriculture, as a prepayment of any loan, debt, or
other obligation the entity has incurred under subchapter I of chapter 31 of
title 7 of the Rural Electrification Act of 1936 (<external-xref legal-doc="usc" parsable-cite="usc/7/901">7 U.S.C. 901</external-xref> et
seq.), as in effect on the date of the enactment of this section.</text>
</paragraph><paragraph id="IDE571C94B0805484882F591C50374C2BD">
<enum>(4)</enum>
<header>Use by tva</header>
<subparagraph id="ID67588C6DA8B54F8DB9202611F3E0C184">
<enum>(A)</enum>
<header>In general</header>
<text>Notwithstanding any other provision of law, in the case of a
person described in paragraph (1)(B)(vi), any credit to which paragraph (1)(A)
applies may be applied as a credit against the payments required to be made in
any fiscal year under section 15d(e) of the Tennessee Valley Authority Act of
1933 (<external-xref legal-doc="usc" parsable-cite="usc/16/831n-4(e)">16 U.S.C.
831n–4(e)</external-xref>) as an annual return on the appropriations investment
and an annual repayment sum.</text>
</subparagraph><subparagraph id="ID93DA4392EC9C425B8DFCA7B24603E4F5">
<enum>(B)</enum>
<header>Treatment of credits</header>
<text>The aggregate amount of credits described in paragraph (1)(A)
with respect to such person shall be treated in the same manner and to the same
extent as if such credits were a payment in cash and shall be applied first
against the annual return on the appropriations investment.</text>
</subparagraph><subparagraph id="ID1E2B88A5BA4746718F289D8BEE3636B5">
<enum>(C)</enum>
<header>Credit carryover</header>
<text>With respect to any fiscal year, if the aggregate amount of
credits described paragraph (1)(A) with respect to such person exceeds the
aggregate amount of payment obligations described in subparagraph (A), the
excess amount shall remain available for application as credits against the
amounts of such payment obligations in succeeding fiscal years in the same
manner as described in this paragraph.</text>
</subparagraph></paragraph><paragraph id="ID42B54DFB2214400CB8053ED5C30F345F">
<enum>(5)</enum>
<header>Credit not income</header>
<text>Any transfer under paragraph (2) or use under paragraph (3) of
any credit to which paragraph (1)(A) applies shall not be treated as income for
purposes of section 501(c)(12).</text>
</paragraph><paragraph id="ID9A6CC42622AB43A3836441F6853FA1B1">
<enum>(6)</enum>
<header>Treatment of unrelated persons</header>
<text>For purposes of this subsection, transfers among and between
persons described in clauses (i), (ii), (iii), (iv), and (v) of paragraph
(1)(B) shall be treated as transfers between unrelated parties.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDD2B708DFB2474852B6781A59FF93E66B"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to production
after December 31, 2004, in taxable years ending after such date.</text>
</subsection></section></part></subtitle><subtitle id="id6714F7C231744AEEA533987BE9EBD876"><enum>C</enum><header>Nuclear
power</header>
<section id="IDF3591889F6F34848B01518DE918B7DC9">
<enum>221.</enum>
<header>Credit for production from advanced nuclear power
facilities</header>
<subsection id="ID3A755321111B469AAD14A5EA2DF2787C">
<enum>(a)</enum>
<header>In general</header>
<text>Subpart D of part IV of subchapter A of chapter 1 (relating to
business related credits), as amended by this Act, is amended by adding at the
end the following new section:</text>
<quoted-block id="IDDCB026AA64FB458B82F91D002F9965DB">
<section id="IDC5E0697DF9604B3786BD6E42776062FA">
<enum>45M.</enum>
<header>Credit for production from advanced nuclear power
facilities</header>
<subsection id="ID0A79F98A87C342F59E62C7D26DCC83F9">
<enum>(a)</enum>
<header>General rule</header>
<text>For purposes of section 38, the advanced nuclear power facility
production credit of any taxpayer for any taxable year is equal to the product
of—</text>
<paragraph id="ID850E9FD6C4394CFEBBB5A894028D81F3">
<enum>(1)</enum>
<text>1.8 cents, multiplied by</text>
</paragraph><paragraph id="ID9939B618DB9746408FC2465DFEF75C03">
<enum>(2)</enum>
<text>the kilowatt hours of electricity—</text>
<subparagraph id="ID52D1DA1A6663405189324721CAF3E49C">
<enum>(A)</enum>
<text>produced by the taxpayer at an advanced nuclear power facility
during the 8-year period beginning on the date the facility was originally
placed in service, and</text>
</subparagraph><subparagraph id="IDEF4E2807F0FD43879FA24CF5D5B562D9">
<enum>(B)</enum>
<text>sold by the taxpayer to an unrelated person during the taxable
year.</text>
</subparagraph></paragraph></subsection><subsection id="IDA797F54FD98343B4AC4C7095551392BD">
<enum>(b)</enum>
<header>National limitation</header>
<paragraph id="IDC1E127172DAC40B686C6D3ABB1AAC3FB">
<enum>(1)</enum>
<header>In general</header>
<text>The amount of credit which would (but for this subsection and
subsection (c)) be allowed with respect to any facility for any taxable year
shall not exceed the amount which bears the same ratio to such amount of credit
as—</text>
<subparagraph id="IDF5CD97A3E6D74EC7BC3BDF66BF7DCD41">
<enum>(A)</enum>
<text>the national megawatt capacity limitation allocated to the
facility, bears to</text>
</subparagraph><subparagraph id="ID2CFA7DBC9BE94C529DF47BE690323F43">
<enum>(B)</enum>
<text>the total megawatt nameplate capacity of such facility.</text>
</subparagraph></paragraph><paragraph id="ID1DAFE9F4C64A4F56853F1D4674825075">
<enum>(2)</enum>
<header>Amount of national limitation</header>
<text>The national megawatt capacity limitation shall be 6,000
megawatts.</text>
</paragraph><paragraph id="ID43B66555EEF84C73BB6F8CF700BC57A3">
<enum>(3)</enum>
<header>Allocation of limitation</header>
<text>The Secretary shall allocate the national megawatt capacity
limitation in such manner as the Secretary may prescribe.</text>
</paragraph><paragraph id="ID2311E5B84B93423D0077B0C9C4650011">
<enum>(4)</enum>
<header>Regulations</header>
<text>Not later than 6 months after the date of the enactment of this
section, the Secretary shall prescribe such regulations as may be necessary or
appropriate to carry out the purposes of this subsection. Such regulations
shall provide a certification process under which the Secretary, after
consultation with the Secretary of Energy, shall approve and allocate the
national megawatt capacity limitation.</text>
</paragraph></subsection><subsection id="ID17AC5F98CF4748FEAA00895121981DDF">
<enum>(c)</enum>
<header>Other limitations</header>
<paragraph id="ID5BB903653C904C74BFAF512C31D40073">
<enum>(1)</enum>
<header>Annual limitation</header>
<text>The amount of the credit allowable under subsection (a) (after
the application of subsection (b)) for any taxable year with respect to any
facility shall not exceed an amount which bears the same ratio to $125,000,000
as—</text>
<subparagraph id="IDC3CEC86C0102408F81EE00BDC92E9728">
<enum>(A)</enum>
<text>the national megawatt capacity limitation allocated under
subsection (b) to the facility, bears to</text>
</subparagraph><subparagraph id="ID5C191AF569644C2EA176C35F9C8FE649">
<enum>(B)</enum>
<text>1000.</text>
</subparagraph></paragraph><paragraph id="IDB66D0BC0D43B4219BDED9147721165FD">
<enum>(2)</enum>
<header>Other limitations</header>
<text>Rules similar to the rules of section 45(b) shall apply for
purposes of this section, except that paragraph (2) thereof shall not apply to
the 1.8 cents under subsection (a)(1).</text>
</paragraph></subsection><subsection id="IDC45893A0157E43DB94D5F796EBDA001B">
<enum>(d)</enum>
<header>Advanced nuclear power facility</header>
<text>For purposes of this section—</text>
<paragraph id="IDEAC26F1E0F0849FE81BD6C8201062796">
<enum>(1)</enum>
<header>In general</header>
<text>The term <term>advanced nuclear power facility</term> means any
advanced nuclear facility—</text>
<subparagraph id="ID6F4D59DFF5FC45329612F891847FFCF0">
<enum>(A)</enum>
<text>which is owned by the taxpayer and which uses nuclear energy to
produce electricity, and</text>
</subparagraph><subparagraph id="ID1DFD465DE74C441397278FD7B0FC97EB">
<enum>(B)</enum>
<text>which is originally placed in service after the date of the
enactment of this paragraph and before January 1, 2021.</text>
</subparagraph></paragraph><paragraph id="ID71DE80066BD244CFA784BD40D5F8DF02">
<enum>(2)</enum>
<header>Advanced nuclear facility</header>
<text>For purposes of paragraph (1), the term <term>advanced nuclear
facility</term> means any nuclear facility the reactor design for which is
approved after the date of the enactment of this paragraph by the Nuclear
Regulatory Commission (and such design or a substantially similar design of
comparable capacity was not approved on or before such date).</text>
</paragraph></subsection><subsection id="ID573F224B271249CE9D7086AEB115AEC4">
<enum>(e)</enum>
<header>Other rules to apply</header>
<text>Rules similar to the rules of paragraphs (1), (2), (3), (4),
and (5) of section 45(e) shall apply for purposes of this section.</text>
</subsection></section><after-quoted-block></after-quoted-block></quoted-block>
</subsection><subsection id="IDD1FBF290AD064665955850EA9ED95EB7">
<enum>(b)</enum>
<header>Credit treated as business credit</header>
<text>Section 38(b), as amended by this Act, is amended by striking
<quote>plus</quote> at the end of paragraph (21), by striking the period at the
end of paragraph (22) and inserting <quote>, plus</quote>, and by adding at the
end the following:</text>
<quoted-block id="ID8C1BD3786D4F4B389356EB61ECD4F633">
<paragraph id="IDC212F2624D944806AE7CCA9660E84B84">
<enum>(23)</enum>
<text>the advanced nuclear power facility production credit
determined under section 45M(a).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID4C8DA9A85373409F99E1A4D50584BC9D">
<enum>(c)</enum>
<header>Clerical amendment</header>
<text>The table of sections for subpart D of part IV of subchapter A of
chapter 1, as amended by this Act, is amended by adding at the end the
following:</text>
<quoted-block id="IDFF5488141E164401BDA7F4365D2B8772" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 45M. Credit for production from
advanced nuclear power
facilities.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idCCDA01AB3F3A47819694B541DEA262B6"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
production in taxable years beginning after December 31, 2004.</text>
</subsection></section></subtitle><subtitle id="idBFEAFB72F4C94F5D821DA317D2654FB9"><enum>D</enum><header>Sunset</header>
<section id="id5A7BE9B5280F4DE1A9E315A90A53F467"><enum>231.</enum><header>Sunset</header>
<subsection id="idDF97ACEFB30347D8AB73BA5F5233EBC7"><enum>(a)</enum><header>In
general</header><text>All provisions of, and amendments made by, this title
shall not apply to taxable years beginning after December 31, 2010.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id42FCE0D08D3B41B8AE1129685457301C"><enum>(b)</enum><header>Application of
certain laws</header><text>The Internal Revenue Code of 1986 shall be applied
and administered to taxable years beginning after December 31, 2010, as if the
provisions and amendments described in subsection (a) had never been
enacted.</text>
</subsection></section></subtitle>
<enum>III</enum>
<header>Research credits</header>
<section id="ID58576D3D61EE47479F3F0837C2724D7E">
<enum>301.</enum>
<header>Sense of the Senate regarding permanent extension of research
credit</header><text display-inline="no-display-inline">It is the sense of the
Senate that the income tax credit for increasing research activities under
section 41 of the Internal Revenue Code of 1986 should be permanently extended,
the rates of the alternative incremental credit under such section should be
increased, and an alternative simplified credit for qualified research expenses
should be instituted.</text>
</section>