[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1965 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 1965

  To amend the Internal Revenue Code of 1986 to modify the credit to 
                holders of clean renewable energy bonds.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 19, 2007

  Mr. Pomeroy (for himself and Mr. Lewis of Kentucky) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to modify the credit to 
                holders of clean renewable energy bonds.

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

SECTION 1. MODIFICATIONS TO CREDIT FOR CLEAN RENEWABLE ENERGY BONDS.

    (a) Additional Period for Reimbursement of Costs Paid by 
Borrower.--Subparagraph (C) of section 54(d)(2) of the Internal Revenue 
Code of 1986 is amended by striking clause (iii) and inserting the 
following:
                            ``(iii) the reimbursement is made not later 
                        than 18 months after the date the original 
                        expenditure is paid or, if later, the date that 
                        the project is placed in service or abandoned.
                In no event may the reimbursement under clause (iii) be 
                made more than 3 years after the date the original 
                expenditure is paid.''.
    (b) Clarification of Ratable Principal Amortization Requirement.--
Paragraph (5) of section 54(l) of such Code is amended to read as 
follows:
            ``(5) Ratable principal amortization required.--A bond 
        shall not be treated as a clean renewable energy bond unless it 
        is part of an issue which provides for an equal amount of 
        principal to be paid by the qualified issuer during each 12-
        month period that the issue is outstanding (other than the 
        first 12-month period).''.
    (c) Maximum Term of Issue.--The second sentence of section 54(e)(2) 
of such Code is amended by inserting ``the greater of 15 years or'' 
after ``Such maximum term shall be''.
    (d) Increase in Amount of Bonds Designated; Extension Through 
2009.--
            (1) In general.--Subsection (f) of section 54 of such Code 
        is amended to read as follows:
    ``(f) Limitation on Amount of Bonds Designated.--
            ``(1) National limitation.--There is a national clean 
        renewable energy bond limitation for each calendar year. Such 
        limitation is $1,000,000,000 for 2008 and 2009 and zero 
        thereafter.
            ``(2) Allocation by secretary.--The national clean 
        renewable energy bond limitation for a calendar year shall be 
        allocated by the Secretary among qualified projects in such 
        manner as the Secretary determines appropriate, except that the 
        Secretary may not allocate more than $625,000,000 of such 
        limitation for each calendar year to finance qualified projects 
        of qualified borrowers which are governmental bodies.''.
            (2) Conforming amendment.--Section 54 of such Code is 
        amended by striking subsection (m).
    (e) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to obligations 
        issued after December 31, 2006.
            (2) Annual bond limitation.--The amendments made by 
        subsection (d) shall apply to obligations issued after December 
        31, 2007.
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