1.
This Act may be cited as the
Wind Power Tax Incentives Act of
2005
.
2.
Offset of passive activity losses and credits of an eligible
taxpayer from wind energy facilities
(a)
Section 469 of the Internal Revenue Code of 1986 (relating to
passive activity losses and credits limited) is amended—
(1)
by redesignating subsections (l) and (m) as subsections (m) and
(n), respectively; and
(2)
by inserting after subsection (k) the following:
(l)
Offset of passive activity losses and credits from wind
energy facilities
(1)
Subsection (a) shall not apply to the portion of the passive
activity loss, or the deduction equivalent (within the meaning of subsection
(j)(5)) of the portion of the passive activity credit, for any taxable year
which is attributable to all interests of an eligible taxpayer in qualified
facilities described in section 45(d)(1).
(2)
For purposes of this subsection—
(A)
The term eligible taxpayer means, with respect to
any taxable year, a taxpayer the adjusted gross income (taxable income in the
case of a corporation) of which does not exceed $1,000,000.
(B)
Rules for computing adjusted gross income
Adjusted gross income shall be computed in the same manner as
under subsection (i)(3)(F).
(C)
All persons treated as a single employer under subsection (a)
or (b) of section 52 shall be treated as a single taxpayer for purposes of this
paragraph.
(D)
In the case of a pass-thru entity, this paragraph shall be
applied at the level of the person to which the credit is allocated by the
entity.
.
(b)
The amendments made by this section shall apply to facilities
placed in service after the date of the enactment of this Act.
3.
Application of credit to cooperatives
(a)
Section 45(e) of the Internal Revenue Code of 1986 (relating to
definitions and special rules) is amended by adding at the end the
following:
(10)
Allocation of credit to shareholders of cooperative
(A)
(i)
In the case of a cooperative organization described in section
1381(a), any portion of the credit determined under subsection (a) for the
taxable year may, at the election of the organization, be apportioned pro rata
among shareholders of the organization on the basis of the capital
contributions of the shareholders to the organization.
(ii)
Form and effect of election
An election under clause (i) for any taxable year shall be made
on a timely filed return for such year. Such election, once made, shall be
irrevocable for such taxable year.
(B)
Treatment of organizations and patrons
The amount of the credit apportioned to any shareholders under
subparagraph (A)—
(i)
shall not be included in the amount determined under subsection
(a) with respect to the organization for the taxable year, and
(ii)
shall be included in the amount determined under subsection (a)
for the taxable year of the shareholder with or within which the taxable year
of the organization ends.
(C)
Special rules for decrease in credits for taxable
year
If the amount of the credit of a cooperative organization
determined under subsection (a) for a taxable year is less than the amount of
such credit shown on the return of the cooperative organization for such year,
an amount equal to the excess of—
(i)
such reduction, over
(ii)
the amount not apportioned to such shareholders under
subparagraph (A) for the taxable year, shall be treated as an increase in tax
imposed by this chapter on the organization. Such increase shall not be treated
as tax imposed by this chapter for purposes of determining the amount of any
credit under this subpart or subpart A, B, E, or G.
.
(b)
The amendments made by this section shall apply to taxable years
ending after the date of the enactment of this Act.