110 HR 1965 IH: To amend the Internal Revenue Code of 1986 to modify the U.S. House of Representatives 2007-04-19 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 110th CONGRESS 1st Session H. R. 1965 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.

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.