110 H R. 2652 IH: Generating Renewable Energy and Encouraging Novel Technologies Act of 2007
U.S. Senate
2007-06-11
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.
1.
(a)This Act may be cited as the Generating Renewable Energy and Encouraging Novel Technologies Act of 2007
.
(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.
(c)The table of contents for this Act is as follows:
Sec. 1. Short title, etc.
Title I—Investment Incentives
Sec. 101. Expensing for certain energy property.
Sec. 102. Modifications relating to clean renewable energy bonds.
Sec. 103. Extension and modification of investment tax credit with respect to solar energy property and qualified fuel cell property.
Sec. 104. Extension and modification of credit for residential energy efficient property.
Sec. 105. 15-year recovery period for property used in the transmission or distribution of electricity for sale.
Title II—Production Incentives
Sec. 201. Extension of production credit for wind, solar, and geothermal.
Sec. 202. Electricity produced from ocean energy.
Title III—Incentives for Alternative Fuels
Sec. 301. Technology neutral diesel credit.
Sec. 302. Extension of credit for alcohol used as fuel.
Sec. 303. Extension of credit for alternative fuels.
Sec. 304. Investment tax credit for cellulosic biomass ethanol plant property.
Title IV—Incentives to Conserve Energy
Sec. 401. Extension of nonbusiness energy property.
Sec. 402. Modifications of energy efficient appliance credit for appliances produced after 2007.
Sec. 403. Increase and extension of energy efficient commercial buildings deduction.
Title V—Credit for Oil Shale Recovery Costs
Sec. 501. Incentives for extraction and processing of oil shale.
Title VI—Provisions Relating to Advanced Coal and Nuclear Energy
Sec. 601. Alternative method for satisfying certain requirements relating to production of refined coal.
Sec. 602. Advanced Nuclear Power Production.
Title VII—Coal to Liquids Technology
Sec. 701. Credit for investment in coal-to-liquid fuels projects.
Sec. 702. Temporary expensing for equipment used in coal-to-liquid fuels process.
Sec. 703. Extension of alternative fuel credit for fuel derived from coal through the Fischer-Tropsch process.
Sec. 704. Modifications to enhanced oil recovery credit.
Sec. 705. Allowance of enhanced oil, natural gas, and coalbed methane recovery, and capture and sequestration credit against the alternative minimum tax.
<enum>I</enum><header>Investment Incentives</header>
<section display-inline="no-display-inline" id="H0F7094E148584057B42CD75154A0842D"><enum>101.</enum><header>Expensing for certain energy property</header>
<subsection id="H2AE8D52A45D9450CAD56CCE6EF7D876B"><enum>(a)</enum><header>In general</header><text>Part VI of subchapter B of chapter 1 of is amended by inserting after section 179E the following new section:</text>
<quoted-block id="HCADD2FFE2FA243CA91161843A132427E">
<section id="H2C53589850974053A0C35B229D38A191"><enum>179F.</enum><header>Election to expense certain energy property</header>
<subsection id="HB929732964094E57AFC243C49230FABA"><enum>(a)</enum><header>Treatment as expenses</header><text>A taxpayer may elect to treat the cost of any qualified energy property as an expense which is not chargeable to capital account. Any cost so treated shall be allowed as a deduction for the taxable year in which the expense is incurred.</text> </subsection>
<subsection id="HDC840611462041B2ADED51F7A6BC8D02"><enum>(b)</enum><header>Election</header>
<paragraph id="H3F8C19C7D0A24B728921722B53B3A671"><enum>(1)</enum><header>In general</header><text>An election under this section for any taxable year shall be made on the taxpayer’s return of the tax imposed by this chapter for the taxable year. Such election shall be made in such manner as the Secretary may by regulations prescribe.</text> </paragraph>
<paragraph id="H4AA5B858E53244DDA32850349C3318DD"><enum>(2)</enum><header>Election irrevocable</header><text>Any election made under this section may not be revoked except with the consent of the Secretary.</text> </paragraph></subsection>
<subsection id="HC1290E51D36448ECBDDE7159FFFDBA5B"><enum>(c)</enum><header>Qualified energy property</header><text>For purposes of this section—</text>
<paragraph id="HA28CABEFF65845018F21C92932711504"><enum>(1)</enum><text>The term <term>qualified energy property</term> means any property located in the United States—</text>
<subparagraph id="HC5E63B880BD74E679BEBAE17A99650CB"><enum>(A)</enum><text display-inline="yes-display-inline">which—</text>
<clause id="H2FA6156A3BC0476DB1A3B219A533EABB"><enum>(i)</enum><text>is described in subparagraph (A) of section 48(a)(3) (or would be so described if <quote>solar or wind energy</quote> were substituted for <quote>solar energy</quote> in clause (i) thereof and the last sentence of such section did not apply to such subparagraph),</text> </clause>
<clause id="H6E2F7680A3924872B933603B1571251E"><enum>(ii)</enum><text>is described in paragraph (15) of section 48(l) (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) and is a qualifying small power production facility within the meaning of section 3(17)(C) of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/796">16 U.S.C. 796(17)(C)</external-xref>), as in effect on September 1, 1986,</text> </clause>
<clause id="HCB4DD006DEED43418202B163DC09FA65"><enum>(iii)</enum><text>is described in section 48(l)(3)(A)(ix) (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990), or</text> </clause>
<clause id="HC3564C10E05D4D7CA811949BC7568201"><enum>(iv)</enum><text display-inline="yes-display-inline">ocean energy property,</text> </clause></subparagraph>
<subparagraph id="H68BDBF030F7148EEA7CA00556059AEA8"><enum>(B)</enum><text>the original use of which commences with the taxpayer,</text> </subparagraph>
<subparagraph id="H53F9C6E303F64DCFBF65F332574DCA24"><enum>(C)</enum><text>the construction of which—</text>
<clause id="H2DF953A8B1534F6B8D542E41F36B786F"><enum>(i)</enum><text>except as provided in subparagraph (B), is subject to a binding construction contract entered into after the date of the enactment of this section and before January 1, 2011, but only if there was no written binding construction contract entered into on or before such date of enactment, or</text> </clause>
<clause id="H9730BF9DE0BE455C83C7D5D3300A9A6"><enum>(ii)</enum><text>in the case of self-constructed property, began after the date of the enactment of this section and before January 1, 2011, and</text> </clause></subparagraph>
<subparagraph id="H47D5B9C243984076959BE8D693C9759D"><enum>(D)</enum><text>which is placed in service by the taxpayer after the date of the enactment of this section and before January 1, 2016.</text> </subparagraph></paragraph>
<paragraph id="H33A2A15D2681450600CCCB51C6F8CF73"><enum>(2)</enum><header>Ocean energy property</header><text display-inline="yes-display-inline">The term <term>ocean energy property</term> means property—</text>
<subparagraph id="HE0F970CF5A624215BA1C4489E8977100"><enum>(A)</enum><text>for hydro thermal energy generation through closed-cycle, open-cycle and hybrid processes, or</text> </subparagraph>
<subparagraph id="H35D0CD1156ED4BD39B84EF4B8220AC7"><enum>(B)</enum><text>for hydro mechanical energy generation through channel systems, float systems, and oscillating water column systems.</text> </subparagraph></paragraph>
<paragraph id="H7CBF0FF55B014AB388EEC06B87A2CA48"><enum>(3)</enum><header>Special rule</header><text>Nothing in any provision of law shall be construed to treat property as not being described in paragraph (1)(A)(i) (or the corresponding provisions of prior law) by reason of being public utility property (within the meaning of section 48(a)(3)).</text> </paragraph></subsection>
<subsection id="HBF6ACF6C62E24CAEA45254C734002DC7"><enum>(d)</enum><header>Election To allocate deduction to cooperative owner</header><text>If—</text>
<paragraph id="H4BC3AA34D1404B409961EBB0A59BBE17"><enum>(1)</enum><text>a taxpayer to which subsection (a) applies is an organization to which part I of subchapter T applies, and</text> </paragraph>
<paragraph id="H981E9C7E27B54489B39218EC76461320"><enum>(2)</enum><text>one or more persons directly holding an ownership interest in the taxpayer are organizations to which part I of subchapter T apply,</text> </paragraph><continuation-text continuation-text-level="subsection">the taxpayer may elect to allocate all or a portion of the deduction allowable under subsection (a) to such persons. Such allocation shall be equal to the person’s ratable share of the total amount allocated, determined on the basis of the person’s ownership interest in the taxpayer. The taxable income of the taxpayer shall not be reduced under section 1382 by reason of any amount to which the preceding sentence applies.</continuation-text></subsection>
<subsection id="HC6B11EBFE59144FAA86C7CA4DC6BC84F"><enum>(e)</enum><header>Basis reduction</header>
<paragraph id="HDFF0E6BD207E434F8D15AE98003D877C"><enum>(1)</enum><header>In general</header><text>For purposes of this title, if a deduction is allowed under this section with respect to any qualified energy property, the basis of such property shall be reduced by the amount of the deduction so allowed.</text> </paragraph>
<paragraph id="H4B3B1B4E45174E468F602613F12F0AD"><enum>(2)</enum><header>Ordinary income recapture</header><text>For purposes of section 1245, the amount of the deduction allowable under subsection (a) with respect to any property which is of a character subject to the allowance for depreciation shall be treated as a deduction allowed for depreciation under section 167.</text> </paragraph></subsection>
<subsection id="H34B2E4F1C58746D8A49FB22747B568AC"><enum>(f)</enum><header>Application with other deductions and credits</header>
<paragraph id="HDD5EE492350A4D5F9C776EB9A12E6351"><enum>(1)</enum><header>Other deductions</header><text>No deduction shall be allowed under any other provision of this chapter with respect to any expenditure with respect to which a deduction is allowed under subsection (a) to the taxpayer.</text> </paragraph>
<paragraph id="HE846CDF241F84FDF94811058C7B74FD"><enum>(2)</enum><header>Credits</header><text>No credit shall be allowed under section 38 with respect to any amount for which a deduction is allowed under subsection (a).</text> </paragraph></subsection>
<subsection id="HAA07BF5074A54364B3B95C129048C935"><enum>(g)</enum><header>Reporting</header><text>No deduction shall be allowed under subsection (a) to any taxpayer for any taxable year unless such taxpayer files with the Secretary a report containing such information with respect to the operation of the property of the taxpayer as the Secretary shall require.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="HC12FE4EF05D34F3BB97E92B87FAA8CB2"><enum>(b)</enum><header>Conforming amendments</header>
<paragraph id="H55882246F724436F9D35714B28D1E850"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/1016">Section 1016(a)</external-xref> is amended by striking <quote>and</quote> at the end of paragraph (36), by striking the period at the end of paragraph (37) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H0F5571D5E8434218B50087211C726B33" style="OLC">
<paragraph id="H129284107DE448F0A14BA261B213996"><enum>(38)</enum><text>to the extent provided in section 179F(e)(1).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="HF5A36E805FC244359B90F49510715B51"><enum>(2)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/1245">Section 1245(a)</external-xref> is amended by inserting <quote>179F,</quote> after <quote>179D,</quote> both places it appears in paragraphs (2)(C) and (3)(C).</text> </paragraph>
<paragraph id="H35BFC7923BB14967912D13A749F8D068"><enum>(3)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/263">Section 263(a)(1)</external-xref> is amended by striking <quote>or</quote> at the end of subparagraph (J), by striking the period at the end of subparagraph (K) and inserting <quote>, or</quote>, and by inserting after subparagraph (K) the following new subparagraph:</text>
<quoted-block id="H985CA007A60A46CBBB5CDDA5297EE59C">
<subparagraph id="H076A8B7D7177404EA1347E4481535704"><enum>(L)</enum><text>expenditures for which a deduction is allowed under section 179F.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="H01E34684A4E54450B27639B7E809A933"><enum>(4)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/312">Section 312(k)(3)(B)</external-xref> is amended by striking <quote>or 179E</quote> each place it appears in the heading and text and inserting <quote>179E, or 179F</quote>.</text> </paragraph>
<paragraph id="H4564D22860DE4EEFB0009996D568D05C"><enum>(5)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/168">Section 168(e)(B)</external-xref> is amended by inserting <quote>and</quote> after clause (iv), by striking <quote>and</quote> at the end of clause (v) and inserting a period, by striking clause (vi), and by striking the last sentence at the end.</text> </paragraph>
<paragraph id="H572C4E6E781943B8A00993001BCAEF10"><enum>(6)</enum><text>The table of sections for part VI of subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after the item relating to section 179E the following new item:</text>
<quoted-block id="HAD97FFE72A7F4263A29E81F35068C869" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 179F. Election to expense certain energy property.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H7F7AE67449A24E07B948DD7DC35FBEC9"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to properties placed in service after the date of the enactment of this Act.</text> </subsection></section>
<section id="H1526006D407A4B77AF326855A5606376" section-type="subsequent-section"><enum>102.</enum><header>Modifications relating to clean renewable energy bonds</header>
<subsection id="HB35C97D6AF1C41AA95C007E48D67AE41"><enum>(a)</enum><header>Clean renewable energy bond</header><text>Paragraph (1) of section 54(d) (defining clean renewable energy bond) is amended—</text>
<paragraph id="HD034F357B0DB42C0A9EEB38576E3E5E1"><enum>(1)</enum><text display-inline="yes-display-inline">in subparagraph (A) by striking <quote>pursuant</quote> and all that follows through <quote>subsection (f)(2)</quote>,</text> </paragraph>
<paragraph id="H0B92E8DBCDF34048B137ED02BA2FDD69"><enum>(2)</enum><text>in subparagraph (B) by striking <quote>95 percent or more of the proceeds</quote> and inserting <quote>90 percent or more of the net proceeds</quote>, and</text> </paragraph>
<paragraph id="H73F87A0E30D04614004D411569240018"><enum>(3)</enum><text>in subparagraph (D) by striking <quote>subsection (h)</quote> and inserting <quote>subsection (g)</quote>.</text> </paragraph></subsection>
<subsection id="H9B3A09BC1EF64E4FBBDD35199B803300"><enum>(b)</enum><header>Qualified project</header><text>Subparagraph (A) of section 54(d)(2) (defining qualified project) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H2581395752ED41BFAEB7F1927B635196" style="OLC">
<subparagraph id="H94A54983E64C4826A24F5F56B8DC5C62"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>qualified project</term> means any qualified facility (as determined under section 45(d) without regard to paragraphs (8) and (10) thereof and to any placed in service requirement) owned by a qualified borrower and also without regard to the following—</text>
<clause id="H430EC313DFD441CAB1892567BB425C4E"><enum>(i)</enum><text display-inline="yes-display-inline">in the case of a qualified facility described in section 45(d)(9) (regarding incremental hydropower production), any determination of incremental hydropower production and related calculations shall be determined by the qualified borrower based on a methodology that meets Federal Energy Regulatory Commission standards; and</text> </clause>
<clause id="H401D66A330D54D2BAB8FD95FB4880015"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of a qualified facility described in section 45(d)(9) (regarding non-hydropower production), the facility need not be licensed by the Federal Energy Regulation Commission if the facility, when constructed, will meet Federal Energy Regulatory Commission licensing requirements and other applicable environmental, licensing, and regulatory requirements.</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H562DAF6E8E9C4084ACA682C941004418"><enum>(c)</enum><header>Reimbursement</header><text>Subparagraph (C) of section 54(d)(2) (relating to reimbursement) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H0669CC913AAA42B195A41B01BEEDE746" style="OLC">
<subparagraph id="HF75017C5315845DA939530AA24293FC"><enum>(C)</enum><header>Reimbursement</header><text display-inline="yes-display-inline">For purposes of paragraph (1)(B), proceeds of a clean renewable energy bond may be issued to reimburse a qualified borrower for amounts paid after the date of the enactment of this section in the same manner as proceeds of State and local government obligations the interest upon which is exempt from tax under section 103.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="HDC9BCAA1C70E490CABE4D66D32F0F19F"><enum>(d)</enum><header>Change in use</header><text display-inline="yes-display-inline">Subparagraph (D) of section 54(d)(2) (relating to treatment of changes in use) is amended by striking <quote>or qualified issuer</quote>.</text> </subsection>
<subsection id="HA56B8C22B16E4B02933FB9C313747BEC"><enum>(e)</enum><header>Maximum term</header><text>Paragraph (2) of section 54(e) (relating to maximum term) is amended by striking <quote>without regard to the requirements of subsection (1)(6) and</quote>.</text> </subsection>
<subsection id="HD08D200A11104ACCA36950D713E5CEB5"><enum>(f)</enum><header>Repeal of limitation on amount of bonds designated</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/54">Section 54</external-xref> is amended by striking subsection (f) (relating to repeal of limitation on amount of bonds designated).</text> </subsection>
<subsection id="H0DAFFA56664342BCBC6E255700956B93"><enum>(g)</enum><header>Special rules relating to expenditures</header><text>Subsection (h) of section 54 (relating to special rules relating to expenditures) is amended—</text>
<paragraph id="H360DB7B9BC2C4D528E56488EC115354E"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1)(A) by striking <quote>95 percent of the proceeds</quote> and inserting <quote>90 percent of the net proceeds</quote>,</text> </paragraph>
<paragraph id="H90FFE798827F487D909D4965C1F9152D"><enum>(2)</enum><text>in paragraph (1)(B)—</text>
<subparagraph id="H9F7D96C45456430282A57E22F4715F67"><enum>(A)</enum><text>by striking <quote>10 percent of the proceeds</quote> and inserting <quote>5 percent of the net proceeds</quote>, and</text> </subparagraph>
<subparagraph id="HC8E500EEB0764A1487B399002D924829"><enum>(B)</enum><text>by striking <quote>the 6-month period beginning on</quote> both places it appears and inserting <quote>1 year of</quote>, and</text> </subparagraph></paragraph>
<paragraph id="H321786D752C44EF0BAE32DD0928344B6"><enum>(3)</enum><text>in paragraph (1)(C) by inserting <quote>net</quote> before <quote>proceeds</quote>,</text> </paragraph>
<paragraph id="H1DD04BC3BC3F495F935FD6DC4C2E4DC4"><enum>(4)</enum><text display-inline="yes-display-inline">in paragraph (3) by striking <quote>95 percent of the proceeds</quote> and inserting <quote>90 percent of the net proceeds</quote>.</text> </paragraph></subsection>
<subsection id="H57626630E1BC46268780F86A4834934"><enum>(h)</enum><header>Repeal of special rules relating to arbitrage</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/54">Section 54</external-xref> is amended by striking subsection (i) (relating to repeal of special rules relating to arbitrage).</text> </subsection>
<subsection id="HABEA83C04D2D450294BF3E9F006FE069"><enum>(i)</enum><header>Public power entity</header><text display-inline="yes-display-inline">Subsection (j) of section 54 (defining cooperative electric company; qualified energy tax credit bond lender; governmental body; qualified borrower) is amended—</text>
<paragraph id="HD9FC75D2A06F4F1F9C8EB3C1A1A628C1"><enum>(1)</enum><text>by redesignating paragraphs (4) and (5) as paragraph (5) and (6) and by inserting after paragraph (3) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H633C2606CA344FB2B3205B756B10CEDB" style="OLC">
<paragraph id="HF74A17FBD2784F46A100493F63D94B45"><enum>(4)</enum><header>Public power entity</header><text display-inline="yes-display-inline">The term <term>public power entity</term> means a State utility with a service obligation, as such terms are defined in section 217 of the Federal Power Act (as in effect on the date of enactment of this paragraph).</text> </paragraph><after-quoted-block>,</after-quoted-block></quoted-block> </paragraph>
<paragraph id="HEA896745BC8F47B900257DF8A0368067"><enum>(2)</enum><text>in paragraph (5), as so redesignated, by striking <quote>or</quote> at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting <quote>, or</quote>, and by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H7A9519FCB96744A7B33D03FBEAB12ED1" style="OLC">
<subparagraph id="H27A5E8015AAE49788C77E72184900E5"><enum>(D)</enum><text>a public power entity.</text> </subparagraph><after-quoted-block>, and</after-quoted-block></quoted-block> </paragraph>
<paragraph id="HDA53F9F18A00421193660661CF84243D"><enum>(3)</enum><text>in paragraph (6), as so redesignated, by striking <quote>or</quote> at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting <quote>, or</quote>, and by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HF527F0E186064E6A8470005B80257966" style="OLC">
<subparagraph id="HA7190FCED8AF4B9E006FC056AAA52037"><enum>(C)</enum><text>a public power entity.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection>
<subsection display-inline="no-display-inline" id="H28D4C22A4B524735BA3B26A7EFDCA536"><enum>(j)</enum><header>Repeal of ratable principal amortization requirement</header><text display-inline="yes-display-inline">Subsection (l) of section 54 (relating to other definitions and special rules) is amended by striking paragraph (5) and redesignating paragraph (6) as paragraph (5).</text> </subsection>
<subsection id="H8CAC0180152B45D2B7A7064EA13F7F58"><enum>(k)</enum><header>Net proceeds</header><text display-inline="yes-display-inline">Subsection (i) of section 54 (relating to other definitions and special rules), as amended by subsection (j), is amended by redesignating paragraphs (2), (3), (4), and (5) as paragraphs (4), (5), (6), and (7), respectively, and by inserting after paragraph (1) the following new paragraphs:</text>
<quoted-block display-inline="no-display-inline" id="H9F6D7DD4135346B1A26C4DE04068C27B" style="OLC">
<paragraph id="H79E5BD13966043D6932C27FEE65D3CB8"><enum>(2)</enum><header>Net proceeds</header><text display-inline="yes-display-inline">The term <term>net proceeds</term> means, with respect to an issue, the proceeds of such issue reduced by amounts in a reasonably required reserve or replacement fund.</text> </paragraph>
<paragraph id="HD76CCF3DA38F48BFB13BF84251C1A731"><enum>(3)</enum><header>Limitation on amount in reserve or replacement fund which may be financed by issue</header><text>A bond issued as part of an issue shall not be treated as a clean renewable energy bond if the amount of the proceeds from the sale of such issue which is part of any reserve or replacement fund exceeds 10 percent of the proceeds of the issue (or such higher amount which the issuer establishes is necessary to the satisfaction of the Secretary).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H357A48652B0541D8A188A27C818D4CEC"><enum>(l)</enum><header>Other special rules</header><text display-inline="yes-display-inline">Subsection (i) of section 54 ((relating to other definitions and special rules), as amended by subsections (j) and (k)) is amended by adding at the end the following new paragraphs:</text>
<quoted-block display-inline="no-display-inline" id="HC7D1A7FEED394ACCB6ABA98E8C5F10E5" style="OLC">
<paragraph id="HD26215A499EC4B2AACD10407F91C6DB2"><enum>(8)</enum><header>Credits may be separated</header><text display-inline="yes-display-inline">There may be a separation (including at issuance) of the ownership of a clean renewable energy bond and the entitlement to the credit under this section with respect to such bond. In case of any such separation, the credit under this section shall be allowed to the person who on the credit allowance date holds the instrument evidencing the entitlement to the credit and not to the holder of the bond.</text> </paragraph>
<paragraph id="HFF7F2A19218C43B9BE1DB7B04BAC9011"><enum>(9)</enum><header>Treatment for estimated tax purposes</header><text>Solely for the purposes of sections 6654 and 6655, the credit allowed by this section to a taxpayer by reason of holding a qualified energy tax credit bond on a credit allowance date (or the credit in the case of a separation as provided in paragraph (8)) shall be treated as if it were a payment of estimated tax made by the taxpayer on such date.</text> </paragraph>
<paragraph id="H69C0C65C909B4BC98F8FF0265209D301"><enum>(10)</enum><header>Carryback and carryforward of unused credits</header><text>If the sum of the credit exceeds the limitation imposed by subsection (c) for any taxable year, any credits may be applied in a manner similar to the rules set forth in section 39.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H86E9860F74CD4D2D99D987323D1827E8"><enum>(m)</enum><header>Termination</header><text>Subsection (m) of section 54 (relating to termination) is amended by striking <quote>2008</quote> and inserting <quote>2018</quote>.</text> </subsection>
<subsection id="H7021331A59D749FC9DEA04AF65B54D5E"><enum>(n)</enum><header>Clerical redesignations</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/54">Section 54</external-xref>, as amended by the preceding provisions of this section, is amended by redesignating subsections (g), (h), (j), (k), (l), and (m) as subsections (f), (g), (h), (i), (j), and (k), respectively.</text> </subsection>
<subsection id="HAC6BFB7B47F940078734263DD988AACB"><enum>(o)</enum><header>Effective date</header><text>The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.</text> </subsection></section>
<section id="H56759FE0C46A4FFDA1B0DFB06499105C"><enum>103.</enum><header>Extension and modification of investment tax credit with respect to solar energy property and qualified fuel cell property</header>
<subsection id="HB91DD5FD8FB24CD7A700002081E7A547"><enum>(a)</enum><header>Solar energy property</header><text>Paragraphs (2)(A)(i)(II) and (3)(A)(ii) of section 48(a) are each amended by striking <quote>2008</quote> and inserting <quote>2019</quote>.</text> </subsection>
<subsection commented="no" display-inline="no-display-inline" id="H01669EA719D1409BAE9EF0C794C0FF58"><enum>(b)</enum><header>Eligible fuel cell property</header><text>Paragraph (1)(E) of <external-xref legal-doc="usc" parsable-cite="usc/26/48">section 48(c)</external-xref> is amended by striking <quote>2007</quote> and inserting <quote>2018</quote>.</text> </subsection>
<subsection id="H20695B692BD14997AD696EE0F859CF9"><enum>(c)</enum><header>Energy property To include excess energy storage device</header><text>Clause (i) of <external-xref legal-doc="usc" parsable-cite="usc/26/48">section 48(a)(3)(A)</external-xref> is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HD234015DFF124B3D924FABEE97B21D7C" style="OLC">
<clause id="HE26268683BF44348B5972DA7DD7C039B"><enum>(i)</enum><text display-inline="yes-display-inline">equipment which uses solar energy to generate electricity, to heat or cool (or provide hot water for use in) a structure, or to provide solar process heat, or advanced energy storage systems installed as an integrated component of the foregoing, excepting property used to generate energy for purposes of heating a swimming pool,</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="HFDD1B284C57A4CE7952BA0FBF46978E6"><enum>(d)</enum><header>Solar lighting equipment To include solar hybrid lighting systems</header><text display-inline="yes-display-inline">Clause (ii) of <external-xref legal-doc="usc" parsable-cite="usc/26/48">section 48(a)(3)(A)</external-xref> is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H2BDB6152EB374581AFF813A0AB052235" style="OLC">
<clause id="H18EFBC7AE08F4832B0122221DA4F5F5E"><enum>(ii)</enum><text>equipment which uses solar energy to illuminate the inside of a structure using fiber-optic distributed sunlight,</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="HB5340A53B8C94316A4CC006CCEE25D23"><enum>(e)</enum><header>Modifications</header>
<paragraph id="H3F208FCF05CB45F7959513ED438C4090"><enum>(1)</enum><header>Solar photovoltaic energy property credit determined solely by kilowatt capacity</header>
<subparagraph id="HB53DD64ACE944B0900C4B1D9CECDF88"><enum>(A)</enum><header>In general</header><text>Subsection (a) of <external-xref legal-doc="usc" parsable-cite="usc/26/48">section 48</external-xref> is amended by redesignating paragraph (4) as paragraph (5) and by inserting after paragraph (3) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HC4EB22F964804E4BA0ACC158ED984B49" style="OLC">
<paragraph id="H568636E6CCED4D1380B8DB36ECE8ACE"><enum>(4)</enum><header>Special rule for energy credit for solar photovoltaic energy property</header>
<subparagraph id="H941C6DDDFAF84C59A7023D14E22CDAA3"><enum>(A)</enum><header>In general</header><text>For purposes of section 46, the energy credit for any taxable year for solar photovoltaic energy property described in paragraph (3)(A)(i) which is used to generate electricity and which is placed in service during the taxable year is $1,500 with respect to each half kilowatt of capacity of such property. Paragraph (2)(A)(ii) shall not apply to property to which the preceding sentence applies.</text> </subparagraph>
<subparagraph id="HEDF0840146364C96BCCC06F6BEAFD8B"><enum>(B)</enum><header>Application of special rules for rehabilitated or subsidized property</header><text>Rules similar to the rules of paragraphs (2)(B) and (5) shall apply to property to which this paragraph applies.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph>
<subparagraph id="H2F7B3EA946464ED800883D9C8E75FB78"><enum>(B)</enum><header>Conforming amendment</header><text>Subclause (II) of <external-xref legal-doc="usc" parsable-cite="usc/26/48">section 48(a)(2)(A)(i)</external-xref> is amended by striking <quote>described in paragraph (3)(A)(i)</quote> and inserting <quote>which is described in paragraph (3)(A)(i) and to which paragraph (4) does not apply</quote>.</text> </subparagraph></paragraph></subsection>
<subsection id="HF2C0C035F82E414399E2F5796E6C6BFE"><enum>(f)</enum><header>Credits allowed against the alternative minimum tax</header><text>Section 38(c)(4)(B) (defining specified credits) is amended by striking the period at the end of clause (ii)(II) and inserting <quote>, and</quote>, and by adding at the end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="H9FBE4C919ACB4226A8795374BCD77190" style="OLC">
<clause id="HEA81B5E6DEA34CE28F0062FD46D3C997"><enum>(iii)</enum><text>the portion of the investment credit under section 46(2) as determined under clauses (i) and (ii) of section 48(a)(2)(A).</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H238FA7C574FF403CA3009EEC923BC8DD"><enum>(g)</enum><header>Effective dates</header>
<paragraph id="HBD4E42A24AB841FA8B033DEB522F0728"><enum>(1)</enum><text>Except as provided in paragraph (2), the amendments made by this section shall take effect on January 1, 2007.</text> </paragraph>
<paragraph id="H2F5B748521264AE09577AF409C5F4824"><enum>(2)</enum><text>The amendments made by subsection (c) shall apply to property placed in service after December 31, 2006.</text> </paragraph></subsection></section>
<section commented="no" id="H88A4D33D5EB540C680E907CCAF657C21"><enum>104.</enum><header>Extension and modification of credit for residential energy efficient property</header>
<subsection commented="no" id="HFB26CB158AF04DDA8DCAD0A893272B1F"><enum>(a)</enum><header>Extension</header><text display-inline="yes-display-inline">Subsection (g) of <external-xref legal-doc="usc" parsable-cite="usc/26/25D">section 25D</external-xref> of the Internal Revenue Code of 1986 (relating to termination) is amended by striking <quote>2008</quote> and inserting <quote>2016</quote>.</text> </subsection>
<subsection commented="no" id="HC53951FBC1E840AE9D1CE29D00757E39"><enum>(b)</enum><header>Solar electric property</header><text>Paragraph (1) of section 25D(a) of such Code (relating to allowance of credit) is amended by striking <quote>30 percent of</quote>.</text> </subsection>
<subsection commented="no" id="H2C3C9864FA8F43B8A14888C5D7A95CD3"><enum>(c)</enum><header>Modification of maximum credit</header><text>Paragraph (1) of <external-xref legal-doc="usc" parsable-cite="usc/26/25D">section 25D(b)</external-xref> of the Internal Revenue Code of 1986 (relating to limitations) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HF8698EA3CD1346679753C71C1E66474F" style="OLC">
<paragraph commented="no" id="H65D9C390A41C4E6D8C02D4AE0042CD00"><enum>(1)</enum><header>Maximum credit</header><text>The credit allowed under subsection (a) for any taxable year shall not exceed—</text>
<subparagraph commented="no" id="H49BB4117D4BF4B71BA4DC7009BB4CEFD"><enum>(A)</enum><text display-inline="yes-display-inline">$1,500 with respect to each half kilowatt of installed capacity of qualified solar electric property for which qualified solar electric property expenditures are made,</text> </subparagraph>
<subparagraph commented="no" id="H74380005595B43A884534903952CD4D4"><enum>(B)</enum><text>$2,000 with respect to any qualified solar water heating property expenditures, and</text> </subparagraph>
<subparagraph commented="no" id="H94AB548B4EE04738BA65F13CA2BEA99"><enum>(C)</enum><text>$500 with respect to each half kilowatt of capacity of qualified fuel cell property (as defined in section 48(c)(1)) for which qualified fuel cell property expenditures are made.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection commented="no" id="HA24F358B53C34FD7B8996FBB1D83B300"><enum>(d)</enum><header>Definition of qualified solar water heating property expenditure</header><text>Paragraph (1) of section 25D(d) of such Code is amended by striking <quote>to heat water for use in</quote> and inserting <quote>to heat or cool (or provide hot water for use in)</quote>.</text> </subsection>
<subsection commented="no" id="H24F1F18354CF49DBB31F471DD2FD2E69"><enum>(e)</enum><header>Definition of qualified photovoltaic property expenditure</header><text display-inline="yes-display-inline">Paragraph (2) of section 25D(d) of such Code is amended by inserting <quote>, including advanced energy storage systems installed as an integrated component of the foregoing</quote> after <quote>taxpayer</quote>.</text> </subsection>
<subsection commented="no" id="H9CBF36F5A54141F5ABBFAA52288CBE50"><enum>(f)</enum><header>Credit allowed against alternative minimum tax</header>
<paragraph commented="no" id="HC24DCFA62AB741F68692E88316DF6300"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25D">Section 25D(b)</external-xref> of the Internal Revenue Code of 1986 (as amended by subsection (b)) is amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H799A8275200F4C54A657B90799C6CC43" style="OLC">
<paragraph commented="no" id="H1C3A20DE979944238457B9E73183989C"><enum>(3)</enum><header>Credit allowed against alternative minimum tax</header><text>The credit allowed under subsection (a) for the taxable year shall not exceed the excess of—</text>
<subparagraph commented="no" id="HFDE29296F07A4DE5954688A2A4009CDF"><enum>(A)</enum><text>the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over</text> </subparagraph>
<subparagraph commented="no" id="H52D64EAAEBB64393B15B8C094DB5F6A3"><enum>(B)</enum><text>the sum of the credits allowable under subpart A of part IV of subchapter A (other than this section) and section 27 for the taxable year.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph commented="no" id="H86DBF80E3FFB4631A4448CF86544C74C"><enum>(2)</enum><header>Conforming amendments</header>
<subparagraph commented="no" id="H7C45D440BB56461E968DD9C05C6F60D3"><enum>(A)</enum><text>Subsection (c) of section 25D of such Code is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HC50CB8062B4F4C4B9377B3EF9B4CDEE6" style="OLC">
<subsection commented="no" id="H38A8394565C14096871D946097F618D5"><enum>(c)</enum><header>Carryforward of unused credit</header><text>If the credit allowable under subsection (a) for any taxable year exceeds the limitation imposed by subsection (b)(3) for such taxable year, such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such succeeding taxable year.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph>
<subparagraph commented="no" id="H6C4AF5BD394243DBB9A6B9F6E06E356F"><enum>(B)</enum><text>Section 23(b)(4)(B) of such Code is amended by inserting <quote>and section 25D</quote> after <quote>this section</quote>.</text> </subparagraph>
<subparagraph commented="no" id="H52006E5EF37140448EBF6D81A7295321"><enum>(C)</enum><text>Section 24(b)(3)(B) of such Code is amended by striking <quote>sections 23 and 25B</quote> and inserting <quote>sections 23, 25B, and 25D</quote>.</text> </subparagraph>
<subparagraph commented="no" id="H7832E1A1B0284C56A42088B55238CA1B"><enum>(D)</enum><text>Section 26(a)(1) of such Code is amended by striking <quote>and 25B</quote> and inserting <quote>25B, and 25D</quote>.</text> </subparagraph></paragraph></subsection>
<subsection commented="no" id="HDE5C1B0143044DB09B762F8DBB4917B4"><enum>(g)</enum><header>Effective date</header><text>The amendments made by this section shall apply to expenditures made in taxable years beginning after December 31, 2006.</text> </subsection></section>
<section display-inline="no-display-inline" id="H1608CB52B9194E2E89CD9343A3C8C666" section-type="subsequent-section"><enum>105.</enum><header>15-year recovery period for property used in the transmission or distribution of electricity for sale</header>
<subsection id="HEEE263E446D44464AAC7C87DAE53E2D0"><enum>(a)</enum><header>In general</header><text>Subparagraph (E) of <external-xref legal-doc="usc" parsable-cite="usc/26/168">section 168(e)(3)</external-xref> is amended by striking clause (vii), by redesignating clause (viii) as clause (ix), and by inserting after clause (vi) the following new clauses:</text>
<quoted-block display-inline="no-display-inline" id="HE6596EB73F714A26A7DA81CBBC833504" style="OLC">
<clause id="H6307AD7A443E4C54A6005585889505D"><enum>(vii)</enum><text>any section 1245 property (as defined in section 1245(a)(3))—</text>
<subclause id="HC52900E268DE4D35A5EF904566C7BD2"><enum>(I)</enum><text display-inline="yes-display-inline">used in the transmission at 69 or more kilovolts of electricity for sale and the original use of which commences with the taxpayer after April 11, 2005, or</text> </subclause>
<subclause id="H89C2323CCA5B48C1B23EAA43745F3034"><enum>(II)</enum><text>used in the transmission or distribution of electricity for sale and which is originally placed in service after the date of the enactment of this subclause,</text> </subclause></clause>
<clause id="H0BE625B681FF487C92D9BFD21ED89E42"><enum>(viii)</enum><text>initial clearing and grading land improvements with respect to any electric utility transmission and distribution plant, and</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H5CDFF86AAB904A2DA0F0FE59A09F07A4"><enum>(b)</enum><header>Conforming amendments</header>
<paragraph id="HC04A852872364B1884E8C95E3827EB1E"><enum>(1)</enum><text>Paragraph (3) of <external-xref legal-doc="usc" parsable-cite="usc/26/168">section 168(e)</external-xref> is amended by striking subparagraph (F).</text> </paragraph>
<paragraph display-inline="no-display-inline" id="H53AE9DB8F933417D81A12EACDD49D05"><enum>(2)</enum><text>The table contained in <external-xref legal-doc="usc" parsable-cite="usc/26/168">section 168(g)(3)(B)</external-xref> is amended by striking the items relating to subparagraphs (E)(viii) and (F) and inserting the following new items:</text>
<quoted-block style="OLC" id="H60955CF9CA254631A9B78BF8BAD05D0" display-inline="no-display-inline">
<table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.0" table-template-name="Flush/hang, 1 text, 1 num, bold hds" table-type="Leaderwork">
<tgroup cols="2" rowsep="0"><colspec coldef="txt" colname="column1" colwidth="254.25pt" min-data-value="55"/><colspec coldef="fig" colname="column2" colwidth="82.50pt" min-data-value="5"/>
<tbody>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr">(E)(viii)</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">25</entry> </row>
<row><entry align="left" colname="column1" rowsep="0" stub-definition="txt-ldr"> (E)(ix)</entry><entry align="right" colname="column2" leader-modify="clr-ldr" rowsep="0">35</entry> </row> </tbody> </tgroup></table><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection>
<subsection id="HCF0BADBDBAD745CDA23DB768007D0074"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.</text> </subsection></section>
<enum>II</enum><header>Production Incentives</header>
<section id="HF2118624689E4ABFAD451BCED834B909"><enum>201.</enum><header>Extension of production credit for wind, solar, and geothermal</header><text display-inline="no-display-inline">Subsection (d) of <external-xref legal-doc="usc" parsable-cite="usc/26/45">section 45</external-xref> is amended—</text>
<paragraph id="H7ED04D66973A4A7E002D43D57C7745A0"><enum>(1)</enum><text>in paragraph (1) by striking <quote>January 1, 2009</quote> and inserting <quote>January 1, 2018</quote>, and</text> </paragraph>
<paragraph id="H828FCCA1D3BD4177925BF591256C19E0"><enum>(2)</enum><text>in paragraph (4) by striking <quote>January 1, 2009 (January 1, 2006, in the case of a facility using solar energy)</quote> and inserting <quote>January 1, 2018</quote>.</text> </paragraph></section>
<section id="H83D450988B9C4811B6858E99F7F3C752"><enum>202.</enum><header>Electricity produced from ocean energy</header>
<subsection id="H31DABC33EA7841B1A2BE912EA37B9F6"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 45(c)(1) (defining qualified energy resources) is amended by striking <quote>and</quote> at the end of subparagraph (G), by striking the period at the end of subparagraph (H) and inserting <quote>, and</quote>, and by adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HD3B80AE76AD04336BC7F2E64F0599BC5" style="OLC">
<subparagraph id="HEABA55CB1F914AB78385DD95949BD363"><enum>(I)</enum><text>ocean energy.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="HFD68A65841194EE2B7CE70D602F08CBB"><enum>(b)</enum><header>Definition of resources</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/45">Section 45(c)</external-xref> is amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H21C8D5EB60C545AE9660AB313C93DA72" style="OLC">
<paragraph id="HD5885AE6184C409B90C0A8C8C0B1B62E"><enum>(10)</enum><header>Ocean energy</header><text display-inline="yes-display-inline">The term <term>ocean energy</term> means energy derived—</text>
<subparagraph id="H6733CF9C4D0E4AE1AD57CC8DEA5C3932"><enum>(A)</enum><text>in the case of ocean thermal energy, generation through closed-cycle, open-cycle and hybrid processes, and</text> </subparagraph>
<subparagraph id="H830CEF5BDDD846DEA97E4D29D9D91745"><enum>(B)</enum><text>in the case of ocean mechanical energy, generation through channel systems, float systems, and oscillating water column systems.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H43F10C2AF45F43E7B9EA254EB801BACF"><enum>(c)</enum><header>Facilities</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/45">Section 45(d)</external-xref> is amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H5091E6372E854CAC9133405E3E3F1013" style="OLC">
<paragraph id="H5C560B6999E24BB8A4CDAAB1F97700F5"><enum>(11)</enum><header>Ocean energy facility</header><text display-inline="yes-display-inline">In the case of a facility using ocean energy to produce electricity, the term <term>qualified facility</term> means any facility owned by the taxpayer which is originally placed in service after the date of the enactment of this paragraph and before January 1, 2018.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="HF562E18DF14C4ECF9E775F647E08C3FB"><enum>(d)</enum><header>Credit rate</header>
<paragraph id="HA4BD95EA66CF4C44B7D6772570CECD53"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45">Section 45(b)</external-xref> is amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HBB09C512FD9A4D3BB1E859004D19FFFF" style="OLC">
<paragraph id="H9043EE53D31A43C18CA5647B2BCBB622"><enum>(5)</enum><header>Credit rate for electricity produced and sold from ocean energy facility</header><text display-inline="yes-display-inline">In the case of electricity produced and sold in any calendar year after the date of the enactment of this paragraph at any qualified facility described in subsection (d)(11)—</text>
<subparagraph id="H9B7880754CE14B0EB47F8F00010071F2"><enum>(A)</enum><text>subsection (a)(1) shall be applied for such calendar year by substituting <quote>1.9 cents</quote> for <quote>1.5 cents</quote>, and</text> </subparagraph>
<subparagraph id="HEDCA63194BCD4B87AD21198471BAFDB5"><enum>(B)</enum><text>paragraph (2) shall be applied by substituting <quote>2005</quote> for <quote>2002</quote>.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="H615D783CE01143249800D295004B5ED3"><enum>(2)</enum><header>Adjustment for inflation</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45">Section 45(b)(2)</external-xref> is amended by inserting <quote>the 1.9 cent amount in paragraph (5)</quote>.</text> </paragraph></subsection>
<subsection id="H7C6BA39313424E97B1004800E18100BD"><enum>(e)</enum><header>Effective date</header><text>The amendments made by this section shall apply to electricity produced after the date of the enactment of this Act.</text> </subsection></section>
<enum>III</enum><header>Incentives for Alternative Fuels</header>
<section id="HD785999B49C844148B2EA54BA4C8C2D8"><enum>301.</enum><header>Technology neutral diesel credit</header>
<subsection id="HE690E6FD546541D08E46008FF102FE20"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/40A">Section 40A</external-xref> is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H1E188FC50D41472F87B0B1BA3427DC09" style="OLC">
<section id="HBAB2F3C90EAF4F33BB9D82F5C91F8914" section-type="subsequent-section"><enum>40A.</enum><header>Qualified diesel used as fuel</header>
<subsection id="HBE4FF110C45545AA8CFE20DD7475F4B0"><enum>(a)</enum><header>General rule</header><text display-inline="yes-display-inline">For purposes of section 38, the qualified diesel fuels credit determined under this section for the taxable year is an amount equal to the sum of—</text>
<paragraph id="HBF1EB68B1CEA4A8AA956F2ADB05B93CB"><enum>(1)</enum><text>the qualified diesel mixture credit, plus</text> </paragraph>
<paragraph id="HB0E6FA39A5CA4EF79B001C90C18FD246"><enum>(2)</enum><text>the qualified diesel credit.</text> </paragraph></subsection>
<subsection id="HAD2EF1B84661445CB8286780A657A07E"><enum>(b)</enum><header>Definition of qualified diesel mixture credit and qualified diesel credit</header><text>For purposes of this section—</text>
<paragraph id="HD2D8203E07F44B89B20090D1DF9C756"><enum>(1)</enum><header>Qualified diesel mixture credit</header>
<subparagraph id="H9ACF1C0DDBF540CA858F638E5D56ACED"><enum>(A)</enum><header>In general</header><text>The qualified diesel mixture credit of any taxpayer for any taxable year is $1.00 for each gallon of biodiesel used by the taxpayer in the production of a qualified biodiesel mixture.</text> </subparagraph>
<subparagraph id="H93922B13CE7F4E0883D600EEF8BC240"><enum>(B)</enum><header>Qualified diesel mixture</header><text>The term <term>qualified biodiesel mixture</term> means a mixture of qualified diesel and diesel fuel (as defined in section 4083(a)(3)), determined without regard to any use of kerosene, which—</text>
<clause id="HE4F2C75CCB3A4E7D8931AB2D8078AF15"><enum>(i)</enum><text>is sold by the taxpayer producing such mixture to any person for use as a fuel, or</text> </clause>
<clause id="H10EBD989A356413BB9E329D2749C1CE3"><enum>(ii)</enum><text>is used as a fuel by the taxpayer producing such mixture.</text> </clause></subparagraph>
<subparagraph id="HC03214FDBDEB4953BC2DCF7390208C87"><enum>(C)</enum><header>Sale or use must be in trade or business, etc</header><text>Biodiesel used in the production of a qualified diesel mixture shall be taken into account—</text>
<clause id="H4129015E4AF5418A8E696B69D148C8E"><enum>(i)</enum><text>only if the sale or use described in subparagraph (B) is in a trade or business of the taxpayer, and</text> </clause>
<clause id="H11FF1AFD28034F5887A638E56548825B"><enum>(ii)</enum><text>for the taxable year in which such sale or use occurs.</text> </clause></subparagraph>
<subparagraph id="H59D775ADC405438EBC912D7EFF7265FA"><enum>(D)</enum><header>Casual off-farm production not eligible</header><text>No credit shall be allowed under this section with respect to any casual off-farm production of a qualified diesel mixture.</text> </subparagraph></paragraph>
<paragraph id="H9F40DEE05A3B44B2B11F5CFE49EE349F"><enum>(2)</enum><header>Biodiesel credit</header>
<subparagraph id="H83596B46F7A34CAB00E40375BCF8389"><enum>(A)</enum><header>In general</header><text>The diesel credit of any taxpayer for any taxable year is $1.00 for each gallon of diesel which is not in a mixture with diesel fuel and which during the taxable year—</text>
<clause id="H2D279B29E9C940CD91ECCC30A4001045"><enum>(i)</enum><text>is used by the taxpayer as a fuel in a trade or business, or</text> </clause>
<clause id="H77D0A34DB9934A22BD4FCA50F77300DD"><enum>(ii)</enum><text>is sold by the taxpayer at retail to a person and placed in the fuel tank of such person’s vehicle.</text> </clause></subparagraph>
<subparagraph id="H82A24D85F63D4EC29DC1D615BD020524"><enum>(B)</enum><header>User credit not to apply to diesel sold at retail</header><text>No credit shall be allowed under subparagraph (A)(i) with respect to any diesel which was sold in a retail sale described in subparagraph (A)(ii).</text> </subparagraph></paragraph>
<paragraph id="HEE47130D3E9942DEB703BC50CFE17840"><enum>(3)</enum><header>Certification for diesel</header><text>No credit shall be allowed under paragraph (1) or (2) of subsection (a) unless the taxpayer obtains a certification (in such form and manner as prescribed by the Secretary) from the producer or importer of the biodiesel which identifies the product produced and the percentage of biodiesel and agri-biodiesel in the product.</text> </paragraph>
<paragraph id="H8455D60A6CAC456393938301811B3373"><enum>(4)</enum><header>Small qualified diesel producer credit</header>
<subparagraph id="HF68C44EE194442818883E05070C6D16E"><enum>(A)</enum><header>In general</header><text>The small qualified diesel producer credit of any eligible small qualified diesel producer for any taxable year is 10 cents for each gallon of qualified diesel production of such producer.</text> </subparagraph>
<subparagraph id="H2E74F4AB2F9B43D9950733D2501DF2AF"><enum>(B)</enum><header>Qualified diesel production</header><text>For purposes of this paragraph, the term <term>qualified agri-biodiesel production</term> means any qualified diesel which is produced by an eligible small qualified diesel producer, and which during the taxable year—</text>
<clause id="HEBC78D76BC9A4E1987A9C5413896D1ED"><enum>(i)</enum><text>is sold by such producer to another person—</text>
<subclause id="HE82D1BAEA9E0437A967ED75F1CA45C93"><enum>(I)</enum><text>for use by such other person in the production of a qualified diesel mixture in such other person’s trade or business (other than casual off-farm production),</text> </subclause>
<subclause id="HAFD850D50D0343308036DDD9ABCDACA2"><enum>(II)</enum><text>for use by such other person as a fuel in a trade or business, or</text> </subclause>
<subclause id="HCA83BEB6B9B34A01BE35B7378B49CB30"><enum>(III)</enum><text>who sells such qualified diesel at retail to another person and places such qualified diesel in the fuel tank of such other person, or</text> </subclause></clause>
<clause id="HCFF6800909B8441A000090FB6E9F178E"><enum>(ii)</enum><text>is used or sold by such producer for any purpose described in clause (i).</text> </clause></subparagraph>
<subparagraph id="H5FD03175F26541459F97C07553AE9E85"><enum>(C)</enum><header>Limitation</header><text>The qualified diesel production of any producer for any taxable year shall not exceed 15,000,000 gallons.</text> </subparagraph></paragraph></subsection>
<subsection id="H3A676C5AA7DA44009F2793D64D4873A3"><enum>(c)</enum><header>Coordination with credit against excise tax</header><text>The amount of the credit determined under this section with respect to any biodiesel shall be properly reduced to take into account any benefit provided with respect to such biodiesel solely by reason of the application of section 6426 or 6427(e).</text> </subsection>
<subsection id="HB1C80BB6571541CD9EC059FA2344AB00"><enum>(d)</enum><header>Definitions and special rules</header><text>For purposes of this section—</text>
<paragraph id="H9F8D06F5F9FE4B17B439555CBB85DCF0"><enum>(1)</enum><header>Qualified diesel</header>
<subparagraph id="HC3C3F880C4E84E61BCE835AFCB36DF37"><enum>(A)</enum><header>In general</header><text>The term <term>qualified diesel</term> means any diesel made from a renewable source, as certified by the Secretary of Energy.</text> </subparagraph>
<subparagraph id="H50DCD9DD7E484AF881B2C8F6E938CE7"><enum>(B)</enum><header>Procedure for certification</header><text>For purposes of subparagraph (A), not later than 90 days after the date on which a request for certification is submitted to the Secretary of Energy (in accordance with regulations promulgated by the Secretary of Energy), the Secretary of Energy shall make a determination on such request.</text> </subparagraph>
<subparagraph id="H32657364D64848758B529B5615A65D79"><enum>(C)</enum><header>Transitional rule</header><text>Any diesel product eligible for the credit under this section on the day before the date of the enactment of the <short-title>Generating Renewable Energy and Encouraging Novel Technologies Act of 2007</short-title> shall be deemed to be qualified diesel for purposes of this section after such date.</text> </subparagraph></paragraph>
<paragraph id="H6284E779E4EC46CF95C4001BB7800CA"><enum>(2)</enum><header>Mixture or biodiesel not used as a fuel, etc</header>
<subparagraph id="HD22C0060035E4E7594FFC10778111BDA"><enum>(A)</enum><header> Mixtures</header><text>If—</text>
<clause id="H7543E7C4625A47BA9935C8494707FB76"><enum>(i)</enum><text>any credit was determined under this section with respect to diesel used in the production of any qualified diesel mixture, and</text> </clause>
<clause id="H3C86B203927D4D98A8CFE7B1922200F6"><enum>(ii)</enum><text>any person—</text>
<subclause id="H5EF74F30F0C6424486CF8DCB2265261C"><enum>(I)</enum><text>separates the biodiesel from the mixture, or</text> </subclause>
<subclause id="HAB79A2D0BE714D7ABF69A83888D73600"><enum>(II)</enum><text>without separation, uses the mixture other than as a fuel,</text> </subclause><continuation-text continuation-text-level="clause">then there is hereby imposed on such person a tax equal to the product of the rate applicable under subsection (b)(1)(A) and the number of gallons of such diesel in such mixture.</continuation-text></clause></subparagraph>
<subparagraph id="H4BA0D031B7BC4C9486E48FCFF7BD02C7"><enum>(B)</enum><header>Diesel</header><text>If—</text>
<clause id="HF5866BF5771549DFBB00F617CD5925E2"><enum>(i)</enum><text>any credit was determined under this section with respect to the retail sale of any diesel, and</text> </clause>
<clause id="HB539EFAA032C43648DCECBB64B053F3D"><enum>(ii)</enum><text>any person mixes such diesel or uses such diesel other than as a fuel,</text> </clause><continuation-text continuation-text-level="subparagraph">then there is hereby imposed on such person a tax equal to the product of the rate applicable under subsection (b)(2)(A) and the number of gallons of such diesel.</continuation-text></subparagraph>
<subparagraph id="H1319E6E078164D479D28D0B7EF77DD7D"><enum>(C)</enum><header>Producer credit</header><text>If—</text>
<clause id="H283F834173DF441AA83FD8EB720F224"><enum>(i)</enum><text>any credit was determined under subsection (a)(3), and</text> </clause>
<clause id="H16B292BBF15E4E889F09EEE5E67FD980"><enum>(ii)</enum><text>any person does not use such fuel for a purpose described in subsection (b)(5)(B),</text> </clause><continuation-text continuation-text-level="subparagraph">then there is hereby imposed on such person a tax equal to 10 cents a gallon for each gallon of such diesel.</continuation-text></subparagraph>
<subparagraph id="HEF2284B755964E91BBAAF5014F21F8E1"><enum>(D)</enum><header>Applicable laws</header><text>All provisions of law, including penalties, shall, insofar as applicable and not inconsistent with this section, apply in respect of any tax imposed under subparagraph (A) or (B) as if such tax were imposed by section 4081 and not by this chapter.</text> </subparagraph></paragraph>
<paragraph id="HF79B70E231234F7DA2F6853BA5023FFC"><enum>(3)</enum><header>Pass-thru in the case of estates and trusts</header><text>Under regulations prescribed by the Secretary, rules similar to the rules of subsection (d) of section 52 shall apply.</text> </paragraph></subsection>
<subsection id="HF767F872AAC34CAEA4A1F4902B550374"><enum>(e)</enum><header>Definitions and special rules for small qualified diesel producer credit</header><text>For purposes of this section—</text>
<paragraph id="H662DA3FE4180472B94FF8421B5AAF93"><enum>(1)</enum><header>Eligible small qualified diesel producer</header><text>The term <term>eligible small qualified diesel producer</term> means a person who, at all times during the taxable year, has a productive capacity for qualified diesel not in excess of 60,000,000 gallons.</text> </paragraph>
<paragraph id="H9B12257DBDD5409AB6022E6E1D04B076"><enum>(2)</enum><header>Aggregation rule</header><text>For purposes of the 15,000,000 gallon limitation under subsection (b)(5)(C) and the 60,000,000 gallon limitation under paragraph (1), all members of the same controlled group of corporations (within the meaning of section 267(f)) and all persons under common control (within the meaning of section 52(b) but determined by treating an interest of more than 50 percent as a controlling interest) shall be treated as 1 person.</text> </paragraph>
<paragraph id="H354744CCAE124FF8BDDE306FAF317558"><enum>(3)</enum><header>Partnership, S corporation, and other pass-thru entities</header><text>In the case of a partnership, trust, S corporation, or other pass-thru entity, the limitations contained in subsection (b)(5)(C) and paragraph (1) shall be applied at the entity level and at the partner or similar level.</text> </paragraph>
<paragraph id="H183D14AF84824B0EA15F56F7951ECC9F"><enum>(4)</enum><header>Allocation</header><text>For purposes of this subsection, in the case of a facility in which more than 1 person has an interest, productive capacity shall be allocated among such persons in such manner as the Secretary may prescribe.</text> </paragraph>
<paragraph id="H5F3B756948734733BF3E7C13FF7BA0F3"><enum>(5)</enum><header>Regulations</header><text>The Secretary may prescribe such regulations as may be necessary—</text>
<subparagraph id="H5A21D412C6FF4A49A91FBE19B10000B2"><enum>(A)</enum><text>to prevent the credit provided for in subsection (a)(3) from directly or indirectly benefitting any person with a direct or indirect productive capacity of more than 60,000,000 gallons of agri-biodiesel during the taxable year, or</text> </subparagraph>
<subparagraph id="H2E385D446EA346C2A7002D4B93708F2C"><enum>(B)</enum><text>to prevent any person from directly or indirectly benefitting with respect to more than 15,000,000 gallons during the taxable year.</text> </subparagraph></paragraph>
<paragraph id="H8B120D7DDA0243B1833C4C9957696260"><enum>(6)</enum><header>Allocation of small qualified diesel credit to patrons of cooperative</header>
<subparagraph id="H8027E02D9A29410FB4B96C7BE6378DC2"><enum>(A)</enum><header>Election to allocate</header>
<clause id="H838740F436914CF2B3985F327DDF5039"><enum>(i)</enum><header>In general</header><text>In the case of a cooperative organization described in section 1381(a), any portion of the credit determined under subsection (a)(3) for the taxable year may, at the election of the organization, be apportioned pro rata among patrons of the organization on the basis of the quantity or value of business done with or for such patrons for the taxable year.</text> </clause>
<clause id="H36541D30A5044EFABCAB7099CB7EAF27"><enum>(ii)</enum><header>Form and effect of election</header><text>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. Such election shall not take effect unless the organization designates the apportionment as such in a written notice mailed to its patrons during the payment period described in section 1382(d).</text> </clause></subparagraph>
<subparagraph id="HC548F49AC6B7460AABCB0344CB263C08"><enum>(B)</enum><header>Treatment of organizations and patrons</header>
<clause id="HFF0C69D9B97F4C0383788E110086ABB8"><enum>(i)</enum><header>Organizations</header><text>The amount of the credit not apportioned to patrons pursuant to subparagraph (A) shall be included in the amount determined under subsection (a)(3) for the taxable year of the organization.</text> </clause>
<clause id="HA2A207645CCA4D46BFFC1563EF7FD677"><enum>(ii)</enum><header>Patrons</header><text>The amount of the credit apportioned to patrons pursuant to subparagraph (A) shall be included in the amount determined under such subsection for the first taxable year of each patron ending on or after the last day of the payment period (as defined in section 1382(d)) for the taxable year of the organization or, if earlier, for the taxable year of each patron ending on or after the date on which the patron receives notice from the cooperative of the apportionment.</text> </clause>
<clause id="H6EBEE8C83EAC491FB2002000D8808248"><enum>(iii)</enum><header>Special rules for decrease in credits for taxable year</header><text>If the amount of the credit of the organization determined under such subsection for a taxable year is less than the amount of such credit shown on the return of the organization for such year, an amount equal to the excess of—</text>
<subclause id="HF39B795B978949A3A319673155EB144E"><enum>(I)</enum><text>such reduction, over</text> </subclause>
<subclause id="H7BBEDBB3560D4DEB9C12CC4BC1867005"><enum>(II)</enum><text>the amount not apportioned to such patrons under subparagraph (A) for the taxable year,</text> </subclause><continuation-text continuation-text-level="clause">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 chapter or for purposes of section 55.</continuation-text></clause></subparagraph></paragraph></subsection>
<subsection id="HC872DBAD9419435CB0BDA9DAC91FDE98"><enum>(f)</enum><header>Termination</header><text>This section shall not apply to any sale or use after December 31, 2018.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="HEA4026A57BC24599A2B305D8447FB5BA"><enum>(b)</enum><header>Clerical amendment</header><text>The item relating to section 40A in the table of sections for subpart D of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H63F4AD17F8F04D5897D202B78C3B6CB7" style="OLC">
<toc container-level="quoted-block-container" idref="H1E188FC50D41472F87B0B1BA3427DC09" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="HBAB2F3C90EAF4F33BB9D82F5C91F8914" level="section">Sec. 40A. Qualified diesel used as fuel.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="HFE23ABC28614402300D85CE099ECEE36"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to fuel produced after the date of the enactment of this Act.</text> </subsection></section>
<section id="H8EC94DE71FC74F41BDBF27A8004C137E"><enum>302.</enum><header>Extension of credit for alcohol used as fuel</header>
<subsection id="H610605F1A9B54778A12DA174A28D2886"><enum>(a)</enum><header>Income tax credit</header><text>Paragraph (1) of <external-xref legal-doc="usc" parsable-cite="usc/26/40">section 40(e)</external-xref> is amended—</text>
<paragraph id="HE61D247444F148FDBB0547AA001E00AB"><enum>(1)</enum><text>in subparagraph (A) by striking <quote>December 31, 2010</quote> and inserting <quote>December 31, 2018</quote>, and</text> </paragraph>
<paragraph id="HFA3FE0C44A7B4E4BB217B9C638FA4DB2"><enum>(2)</enum><text>in subparagraph (B) by striking <quote>January 1, 2011</quote> and inserting <quote>January 1, 2019</quote>.</text> </paragraph></subsection>
<subsection id="H54D23271456046EBB82F995F25C00140"><enum>(b)</enum><header>Excise tax credit</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/6426">Section 6426(b)(5)</external-xref> is amended by striking <quote>December 31, 2010</quote> and inserting <quote>December 31, 2018</quote>.</text> </subsection>
<subsection id="HA396FFB1831B4303BB1BB7001C1D4E85"><enum>(c)</enum><header>Fuels not used for taxable purposes</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6427">Section 6427(e)(5)(A)</external-xref> is amended by striking <quote>December 31, 2010</quote> and inserting <quote>December 31, 2018</quote>.</text> </subsection></section>
<section id="HA53A4B45C9C248FBAB63826496B1B65E"><enum>303.</enum><header>Extension of credit for alternative fuels</header>
<subsection id="H7576F4C108634946B46927EBF1E5E7CF"><enum>(a)</enum><header>Alternative fuel</header><text>Paragraph (4) of <external-xref legal-doc="usc" parsable-cite="usc/26/6426">section 6426(d)</external-xref> is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HFDD0BFDA4251495C80A5461F476CA87E" style="OLC">
<paragraph id="HFC3AD83A230245058D6209A3DF5DCDA0"><enum>(4)</enum><header>Termination</header><text display-inline="yes-display-inline">This subsection shall not apply to any sale or use for any period after December 31, 2018.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="HC9E6E9B72C4D4BA5B829EB7706DD21F9"><enum>(b)</enum><header>Alternative fuel mixture</header><text>Paragraph (3) of <external-xref legal-doc="usc" parsable-cite="usc/26/6426">section 6426(e)</external-xref> is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H4BC0D7CA79AC452CA785C820436F78F5" style="OLC">
<paragraph id="H809B6F4AB516491C9B716F27257562F5"><enum>(3)</enum><header>Termination</header><text display-inline="yes-display-inline">This subsection shall not apply to any sale or use for any period after December 31, 2018.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection display-inline="no-display-inline" id="H06CF032FB78F4FA49EBB6B9541C9B5A9"><enum>(c)</enum><header>Fuels not used for taxable purposes</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6427">Section 6427(e)(5)(C)</external-xref> is amended by striking <quote>September 30, 2009</quote> and inserting <quote>December 31, 2018</quote>.</text> </subsection></section>
<section id="HDABB093C3C044A42A88BE55DD6948273"><enum>304.</enum><header>Investment tax credit for cellulosic biomass ethanol plant property</header>
<subsection id="HFAD4BE7BF4A64572BC4600E18270FCAC"><enum>(a)</enum><header>Allowance of credit</header><text display-inline="yes-display-inline">Subpart E of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after section 48B the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H40979ECD60454B198EF18774C356A96F" style="OLC">
<section id="H7EC4ED86F4464ACDB3FDA172B01FA0A"><enum>48C.</enum><header>Cellulosic biomass ethanol plant facility</header>
<subsection id="H4AA3F19539E64C9F85669FC8D2B7E1F5"><enum>(a)</enum><header>General rule</header><text display-inline="yes-display-inline">For purposes of section 46, the cellulosic biomass ethanol plant credit for any taxable year is 30 percent of the cost of any qualified cellulosic biomass ethanol plant property.</text> </subsection>
<subsection id="HCF6F25A863614842BFDE71578C2848A"><enum>(b)</enum><header>Qualified cellulosic biomass ethanol plant property</header><text display-inline="yes-display-inline">The term <term>qualified cellulosic biomass ethanol plant property</term> means property of a character subject to the allowance for depreciation—</text>
<paragraph id="H0990BE8F6D024141AF5152289F778237"><enum>(1)</enum><text>which is used in the United States solely to produce cellulosic biomass ethanol,</text> </paragraph>
<paragraph id="H6C4E0E5C2782412D8D09A28DC2912903"><enum>(2)</enum><text>the original use of which commences with the taxpayer after the date of the enactment of this section,</text> </paragraph>
<paragraph id="H8D3FA5E067064092BF1CA40068559B99"><enum>(3)</enum><text>which is acquired by the taxpayer by purchase (as defined in section 179(d)) after the date of the enactment of this subsection, but only if no written binding contract for the acquisition was in effect on or before the date of the enactment of this subsection, and</text> </paragraph>
<paragraph id="HD4E2187AA66845C39000DBFF43D245E8"><enum>(4)</enum><text>which is placed in service by the taxpayer before January 1, 2019.</text> </paragraph></subsection>
<subsection id="HEB3D15D8B3C54F7997BC5FBF16D29033"><enum>(c)</enum><header>Cellulosic biomass ethanol</header><text>For purposes of this section, the term <term>cellulosic biomass ethanol</term> means ethanol produced from any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis.</text> </subsection>
<subsection id="H292F411F7EE348258906983840F7F771"><enum>(d)</enum><header>Special rule for certain subsidized property</header><text>For purposes of this section, rules similar to the rules of section 48(a)(4) shall apply.</text> </subsection>
<subsection id="H220817C3CFB7461884B3E79F634CF4F"><enum>(e)</enum><header>Denial of double benefit</header><text>A deduction or credit shall not be allowed under any other provision of this chapter for the cost taken into account under subsection (a).</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection commented="no" display-inline="no-display-inline" id="HDC4CF2C5A50E44EFA41C2332A72B57F6"><enum>(b)</enum><header>Credit treated as part of investment credit</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/46">Section 46</external-xref> is amended by striking <quote>and</quote> at the end of paragraph (3), by striking the period at the end of paragraph (4) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H5319EDB6E01F4051B652CD7941595B77" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H4B9F228BDF1642CA9D1954CD7ED55CC"><enum>(5)</enum><text display-inline="yes-display-inline">the cellulosic biomass ethanol plant credit.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection commented="no" display-inline="no-display-inline" id="H913DC4C401D7424992539B29478B0061"><enum>(c)</enum><header>Conforming amendments</header>
<paragraph commented="no" display-inline="no-display-inline" id="H9387C94EEA154722BFDD709CD8C0390"><enum>(1)</enum><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/49">Section 49(a)(1)(C)</external-xref> is amended by striking <quote>and</quote> at the end of clause (iii), by striking the period at the end of clause (iv) and inserting <quote>, and</quote>, and by adding at the end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="H2ED895F5F35A4DEF80C2FEDCE96E6AB" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="H69AEE90FD7714E869FFD77FAA4D79C42"><enum>(v)</enum><text display-inline="yes-display-inline">the basis of any qualified cellulosic biomass ethanol plant property.</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="H7C3F97CFF3444909A805700532700007"><enum>(2)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/168">Section 168</external-xref> is amended by striking subsection (l).</text> </paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H07A607FEED1D4A6980EA25CE2DF127C2"><enum>(3)</enum><text display-inline="yes-display-inline">The table of sections for subpart E of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 48B the following new item:</text>
<quoted-block display-inline="no-display-inline" id="H87C3BFB7CF2E4CCFA2A900D1697E3DD5" style="OLC">
<toc>
<toc-entry bold="off" idref="H51BD2E8DE54648F89B202663BCAC18FC" level="section">Sec. 48C. Cellulosic biomass ethanol plant facility.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section>
<enum>IV</enum><header>Incentives to Conserve Energy</header>
<section id="H7367C27A6E424AD0005173A9D19A28C"><enum>401.</enum><header>Extension of nonbusiness energy property</header><text display-inline="no-display-inline">Subsection (g) of <external-xref legal-doc="usc" parsable-cite="usc/26/25C">section 25C</external-xref> is amended by striking <quote>December 31, 2007</quote> and inserting <quote>December 31, 2018</quote>.</text> </section>
<section id="H66DF420D629D4758AE00C63B9E693798" section-type="subsequent-section"><enum>402.</enum><header>Modifications of energy efficient appliance credit for appliances produced after 2007</header>
<subsection id="H7F8FE60790A9443196DE4913F8E4929B"><enum>(a)</enum><header>In general</header><text>Subsection (b) of section 45M (relating to applicable amount) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H276E7D40C2484D9F831D01CB713B21FD" style="OLC">
<subsection id="H5EF7DBC53B6D407E00A500E18B4FAEF5"><enum>(b)</enum><header>Applicable amount</header><text>For purposes of subsection (a)—</text>
<paragraph id="H1F2BFA9DF2974667B5630237F8366D14"><enum>(1)</enum><header>Dishwashers</header><text>The applicable amount is—</text>
<subparagraph id="HAA4E5E3DEB3F4B6982C59BE0EC352F73"><enum>(A)</enum><text>$45 in the case of a dishwasher which is manufactured in calendar year 2008 or 2009 and which uses no more than 324 kilowatt hours per year and 5.8 gallons per cycle, and</text> </subparagraph>
<subparagraph id="HAEB78DC0C47143F7A51BCD3BA2E9FF"><enum>(B)</enum><text>$75 in the case of a dishwasher which is manufactured in calendar year 2008, 2009, or 2010 and which uses no more than 307 kilowatt hours per year and 5.0 gallons per cycle (5.5 gallons per cycle for dishwashers designed for greater than 12 place settings).</text> </subparagraph></paragraph>
<paragraph id="HA0BC032ADF0348F680CFFF99C0580091"><enum>(2)</enum><header>Clothes washers</header><text>The applicable amount is—</text>
<subparagraph id="H8E9E65FC4A77485F911000CE75DDA2D6"><enum>(A)</enum><text>$75 in the case of a residential top-loading clothes washer manufactured in calendar year 2008 which meets or exceeds a 1.72 modified energy factor and does not exceed a 8.0 water consumption factor,</text> </subparagraph>
<subparagraph id="H265023A18BD14D0F802C958571331E81"><enum>(B)</enum><text>$125 in the case of a residential top-loading clothes washer manufactured in calendar year 2008 or 2009 which meets or exceeds a 1.8 modified energy factor and does not exceed a 7.5 water consumption factor,</text> </subparagraph>
<subparagraph id="H29CDEC3B439F4302A3F49C19067554EE"><enum>(C)</enum><text>$150 in the case of a residential or commercial clothes washer manufactured in calendar year 2008, 2009 or 2010 which meets or exceeds 2.0 modified energy factor and does not exceed a 6.0 water consumption factor, and</text> </subparagraph>
<subparagraph id="H44B9062379044547B44DA845587F2E7F"><enum>(D)</enum><text>$250 in the case of a residential or commercial clothes washer manufactured in calendar year 2008, 2009, or 2010 which meets or exceeds 2.2 modified energy factor and does not exceed a 4.5 water consumption factor.</text> </subparagraph></paragraph>
<paragraph id="H6412E077F8564EEDA18C571B50E341E7"><enum>(3)</enum><header>Refrigerators</header><text>The applicable amount is—</text>
<subparagraph id="H27568210E572454B970123A3C9851171"><enum>(A)</enum><text>$50 in the case of a refrigerator which is manufactured in calendar year 2008, and consumes at least 20 percent but not more than 22.9 percent less kilowatt hours per year than the 2001 energy conservation standards,</text> </subparagraph>
<subparagraph id="HEAC966FDA3734A77A426DBB6E7978942"><enum>(B)</enum><text>$75 in the case of a refrigerator which is manufactured in calendar year 2008 or 2009, and consumes at least 23 percent but no more than 24.9 percent less kilowatt hours per year than the 2001 energy conservation standards,</text> </subparagraph>
<subparagraph id="H16A054C4D26141A1BB3E00BD402DF3DC"><enum>(C)</enum><text>$100 in the case of a refrigerator which is manufactured in calendar year 2008, 2009 or 2010, and consumes at least 25 percent but not more than 29.9 percent less kilowatt hours per year than the 2001 energy conservation standards, and</text> </subparagraph>
<subparagraph id="HB48F905BD7604497B2D42ED6FD9E00E0"><enum>(D)</enum><text>$200 in the case of a refrigerator manufactured in calendar year 2008, 2009 or 2010 and which consumes at least 30 percent less energy than the 2001 energy conservation standards.</text> </subparagraph></paragraph>
<paragraph id="HD66DE9E83D604D039461A1943943DE5F"><enum>(4)</enum><header>Dehumidifiers</header><text>The applicable amount is—</text>
<subparagraph id="H15B4A4AF70B641FFBC6C5FD194A09121"><enum>(A)</enum><text>$15 in the case of a dehumidifier manufactured in calendar year 2008 that has a capacity less than or equal to 45 pints per day and is 7.5 percent more efficient than the applicable Department of Energy energy conservation standard effective October 2012, and</text> </subparagraph>
<subparagraph id="H4E46F716C5114BDD8CAFC8423CB953C9"><enum>(B)</enum><text>$25 in the case of a dehumidifier manufactured in calendar year 2008 that has a capacity greater than 45 pints per day and is 7.5 percent more efficient than the applicable Department of Energy energy conservation standard effective October 2012.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H55B06E10073D4268B253A0E16972744E"><enum>(b)</enum><header>Eligible production</header>
<paragraph id="H44814C894BC84CC890E17B7F83B33548"><enum>(1)</enum><header>Similar treatment for all appliances</header><text>Subsection (c) of section 45M (relating to eligible production) is amended—</text>
<subparagraph id="HAE68B9AF0C0C4899854782BEE7FD1E63"><enum>(A)</enum><text>by striking paragraph (2),</text> </subparagraph>
<subparagraph id="HB3A62DF5BB534759BAEB655FCA064CFF"><enum>(B)</enum><text>by striking <quote>(1) <header-in-text level="paragraph" style="OLC">In general</header-in-text></quote> and all that follows through <quote>the eligible</quote> and inserting <quote>The eligible</quote>, and</text> </subparagraph>
<subparagraph id="H9AEFEABC615C47B89C00D85B3821A86E"><enum>(C)</enum><text>by moving the text of such subsection in line with the subsection heading and redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively.</text> </subparagraph></paragraph>
<paragraph id="H090355F9EDB24E4EA6B62FBB33B78785"><enum>(2)</enum><header>Modification of base period</header><text>Paragraph (2) of section 45M(c), as amended by paragraph (1) of this section, is amended by striking <quote>3-calendar year</quote> and inserting <quote>2-calendar year</quote>.</text> </paragraph></subsection>
<subsection id="H3C5F94BFD0A74984A4655558B5180486"><enum>(c)</enum><header>Types of energy efficient appliances</header><text>Subsection (d) of section 45M (defining types of energy efficient appliances) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HAD203EA7640E428AA3C0E9DF2D5EE626" style="OLC">
<subsection id="HFCBC336A21034CE686E6000052302717"><enum>(d)</enum><header>Types of energy efficient appliance</header><text display-inline="yes-display-inline">For purposes of this section, the types of energy efficient appliances are—</text>
<paragraph id="HDFBBEA12ACEA47DFA0236E906607C556"><enum>(1)</enum><text>dishwashers described in subsection (b)(1),</text> </paragraph>
<paragraph id="HA192044E87BE435B802972F77ADC2E0"><enum>(2)</enum><text>clothes washers described in subsection (b)(2),</text> </paragraph>
<paragraph id="HB555006234EB4B708E95EDDCFA647039"><enum>(3)</enum><text>refrigerators described in subsection (b)(3), and</text> </paragraph>
<paragraph id="H66F9F40D80D344B79EF6C1AB9200AFAA"><enum>(4)</enum><text>dehumidifiers described in subsection (b)(4).</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="HCA6B5B79D6E5439CB373C6F214C354B5"><enum>(d)</enum><header>Aggregate credit amount allowed</header>
<paragraph id="H1781C6BDB81D42B4B0A067E16918B1FE"><enum>(1)</enum><header>Increase in limit</header><text>Paragraph (1) of section 45M(e) (relating to aggregate credit amount allowed) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H4D91727417854C819E5F32C7090072C2" style="OLC">
<paragraph id="HF4C56343725842678D63798DDC212200"><enum>(1)</enum><header>Aggregate credit amount allowed</header><text display-inline="yes-display-inline">The aggregate amount of credit allowed under subsection (a) with respect to a taxpayer for any taxable year shall not exceed $100,000,000 reduced by the amount of the credit allowed under subsection (a) to the taxpayer (or any predecessor) for all prior taxable years beginning after December 31, 2007.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="H7980867591644E62BC59BE846CDF17D1"><enum>(2)</enum><header>Exception for certain refrigerator and clothes washers</header><text>Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/45M">section 45M(e)</external-xref> is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HEC274465A7E94620A5F90068B5F47600" style="OLC">
<paragraph id="HF14BFD8A489C4B18AF20844748E5538D"><enum>(2)</enum><header>Amount allowed for certain refrigerators and clothes washers</header><text display-inline="yes-display-inline">Refrigerators described in subsection (b)(3)(D) and clothes washers described in subsection (b)(2)(D) shall not be taken into account under paragraph (1).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection>
<subsection id="H275F11E640C54BAF9DEA3E0000C78B9E"><enum>(e)</enum><header>Qualified energy efficient appliances</header>
<paragraph id="H5DDA47C711664FC490D4A3FD6655DAFC"><enum>(1)</enum><header>In general</header><text>Paragraph (1) of section 45M(f) (defining qualified energy efficient appliance) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HD010746AA6B54CDA8225DA21A2CCF870" style="OLC">
<paragraph id="HD54D238A1D3F47889D23B9ECD3152518"><enum>(1)</enum><header>Qualified energy efficient appliance</header><text display-inline="yes-display-inline">The term <term>qualified energy efficient appliance</term> means—</text>
<subparagraph id="H8E2F0635BC234635962756B1EF802556"><enum>(A)</enum><text display-inline="yes-display-inline">any dishwasher described in subsection (b)(1),</text> </subparagraph>
<subparagraph id="H7B8415BE76C24D61AEF2A89563C9FCB"><enum>(B)</enum><text>any clothes washer described in subsection (b)(2),</text> </subparagraph>
<subparagraph id="H8AE040DADF7B48C2B3DB287100E476A0"><enum>(C)</enum><text>any refrigerator described in subsection (b)(3), and</text> </subparagraph>
<subparagraph id="H4EDC3AC9A9E6451397A88C9E37BC50DD"><enum>(D)</enum><text>any dehumidifier described in subsection (b)(4).</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="HE1177F44CCE249A6905E53A486DBF2E9"><enum>(2)</enum><header>Clothes washer</header><text>Section 45M(f)(3) (defining clothes washer) is amended by inserting <quote>commercial</quote> before <quote>residential</quote> the second place it appears.</text> </paragraph>
<paragraph id="H1F15D549E315422D9BEA7FA631F01E33"><enum>(3)</enum><header>Top-loading clothes washer</header><text>Subsection (f) of section 45M (relating to definitions) is amended by redesignating paragraphs (4), (5), (6), and (7) as paragraphs (5), (6), (7), and (8), respectively, and by inserting after paragraph (3) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HF1A3628C98CA4D2E8256EFB10823842" style="OLC">
<paragraph id="HBE9B7D4456D943C0BF80DD7C47B2EE9E"><enum>(4)</enum><header>Top-loading clothes washer</header><text display-inline="yes-display-inline">The term <term>‘top-loading clothes washer’</term> means a clothes washer which has the clothes container compartment access located on the top of the machine and which operates on a vertical axis.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="H729A5026E77B418BBA98FA15C89DFA8"><enum>(4)</enum><header>Dehumidifier</header><text>Subsection (f) of <external-xref legal-doc="usc" parsable-cite="usc/26/45M">section 45M</external-xref>, as amended by paragraph (3), is amended by redesignating paragraphs (6), (7), and (8) as paragraphs (7), (8) and (9), respectively, and by inserting after paragraph (5) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HED04282C1C904F0F852BE6BFB6B100F6" style="OLC">
<paragraph id="H81DE32F0A152403095A4D8A994E9C1DA"><enum>(6)</enum><header>Dehumidifier</header><text display-inline="yes-display-inline">The term <term>dehumidifier</term> means a self-contained, electrically operated, and mechanically refrigerated encased assembly consisting of—</text>
<subparagraph id="H8872B55BBF084BFFAC2BC31EE1029EC0"><enum>(A)</enum><text>a refrigerated surface that condenses moisture from the atmosphere,</text> </subparagraph>
<subparagraph id="H5FF194CE36364A318C00895E33D9947"><enum>(B)</enum><text>a refrigerating system, including an electric motor,</text> </subparagraph>
<subparagraph id="H6F960395915E46649670F2B6AC691674"><enum>(C)</enum><text>an air-circulating fan, and</text> </subparagraph>
<subparagraph id="H9414787FE39C43ECA967A5072435CC00"><enum>(D)</enum><text>means for collecting or disposing of condensate.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="H2434663F7D524897B5E1B189501B375F"><enum>(5)</enum><header>Replacement of energy factor</header><text>Section 45M(f)(7), as amended by paragraph (4), is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H09AEF5B498A1442D80944B653356B275" style="OLC">
<paragraph id="H8CD668E5057C4BE78804468EDD37DF6"><enum>(7)</enum><header>Modified energy factor</header><text display-inline="yes-display-inline">The term <term>modified energy factor</term> means the modified energy factor established by the Department of Energy for compliance with the Federal energy conservation standard.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="HEEFDEBBCCC71477FABEC7C7625745260"><enum>(6)</enum><header>Gallons per cycle; water consumption factor</header><text>Section 45M(f) (relating to definitions) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H7900751224224D0BA8ED0589843B00EE" style="OLC">
<paragraph id="HD0DEA58BE7914F0EB663797E7CAC5BC2"><enum>(10)</enum><header>Gallons per cycle</header><text display-inline="yes-display-inline">The term <term>gallons per cycle</term> means, with respect to a dishwasher, the amount of water, expressed in gallons, required to complete a normal cycle of a dishwasher.</text> </paragraph>
<paragraph id="HA796DD48C59242AE8262D96DB7641008"><enum>(11)</enum><header>Water consumption factor</header><text display-inline="yes-display-inline">The term <term>water consumption factor</term> means, with respect to a clothes washer, the quotient of the total weighted per-cycle water consumption divided by the cubic foot (or liter) capacity of the clothes washer.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection>
<subsection id="H810B82503CB141C4B3E0138D79F8C957"><enum>(f)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to appliances produced after December 31, 2007.</text> </subsection></section>
<section id="H463FA0A6CCD14A36BF04ADD4743D8D6D"><enum>403.</enum><header>Increase and extension of energy efficient commercial buildings deduction</header>
<subsection id="H5BD10400047E40CCB4AFB3FC98F0A7D4"><enum>(a)</enum><header>Increase in amount of deduction</header><text>Section 179D (relating to energy efficient commercial buildings deduction) is amended—</text>
<paragraph id="H92B26CE4037E40C89B7F4CCB4BE54609"><enum>(1)</enum><text>in subsection (b)(1)(A) by striking <quote>$1.80</quote> and inserting <quote>$2.25</quote>, and</text> </paragraph>
<paragraph id="H86B3609122E548BB9963AF1B4421AA2E"><enum>(2)</enum><text>in subsection (d)(1)(A) by striking <quote>$.60 for $1.80</quote> and inserting <quote>$.75 for $2.25</quote>.</text> </paragraph></subsection>
<subsection id="HAD3EF65BF25941B19BDA5511DC14D125"><enum>(b)</enum><header>Extension</header><text>Subsection (h) of section 179D (relating to termination) is amended by striking <quote>December 31, 2008</quote> and inserting <quote>December 31, 2018</quote>.</text> </subsection>
<subsection id="HA301044ADE8A490F8E4E42C600768024"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service in taxable years beginning after December 31, 2006.</text> </subsection></section>
<enum>V</enum><header>Credit for Oil Shale Recovery Costs</header>
<section id="H6C749B18A4264922B9BF1433B717998D"><enum>501.</enum><header>Incentives for extraction and processing of oil shale</header>
<subsection display-inline="no-display-inline" id="H392B0BCF86AA4802B2FD78A92A1A669"><enum>(a)</enum><header>Investment tax credit for extraction and processing of oil shale using in-situ conversion technology</header>
<paragraph id="H5908BC70253947CE9EE6EDFB2CBE635E"><enum>(1)</enum><header>In general</header><text>Subpart E of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after section 48C the following new section:</text>
<quoted-block display-inline="no-display-inline" id="HEE027C77D9A241CE9133A800EF4610F8" style="OLC">
<section id="HA66A283AE0224B71B1FCCB3DDD2A9EA"><enum>48D.</enum><header>Oil shale extraction and processing facility</header>
<subsection id="H5564501C02DE45308812C8658504B286"><enum>(a)</enum><header>General rule</header><text display-inline="yes-display-inline">For purposes of section 46, the oil shale extraction and processing credit for any taxable year is 30 percent of the cost of any qualified oil shale extraction and processing property.</text> </subsection>
<subsection id="H2E360DF7029A45D28460AF5DB4600001"><enum>(b)</enum><header>Qualified oil shale extraction and processing property</header><text display-inline="yes-display-inline">The term <term>qualified oil shale extraction and processing property</term> means property of a character subject to the allowance for depreciation—</text>
<paragraph id="H73E782649C74495FA0A075540DF0048"><enum>(1)</enum><text display-inline="yes-display-inline">which is used in the United States solely to extract and process oil shale using in-situ conversion technology,</text> </paragraph>
<paragraph id="HDECE060EB7A44FACBA47C2A6EB514618"><enum>(2)</enum><text>the original use of which commences with the taxpayer after the date of the enactment of this section,</text> </paragraph>
<paragraph id="H3AA9FDBD04574274A59BA7FD77C63749"><enum>(3)</enum><text>which is acquired by the taxpayer by purchase (as defined in section 179(d)) after the date of the enactment of this subsection, but only if no written binding contract for the acquisition was in effect on or before the date of the enactment of this subsection, and</text> </paragraph>
<paragraph id="H0641C74EF688468A89D07E9013CF3908"><enum>(4)</enum><text>which is placed in service by the taxpayer before January 1, 2019.</text> </paragraph></subsection>
<subsection id="H5FD0B8D988AB402885193C87E3BBE48B"><enum>(c)</enum><header>Special rule for certain subsidized property</header><text>For purposes of this section, rules similar to the rules of section 48(a)(4) shall apply.</text> </subsection>
<subsection id="H6B353DF0E9F342C2B8D0A21DC315D927"><enum>(d)</enum><header>Denial of double benefit</header><text>A deduction or credit shall not be allowed under any other provision of this chapter for the cost taken into account under subsection (a).</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H15C87E65BEBB44089700B22EB7545B7D"><enum>(2)</enum><header>Credit treated as part of investment credit</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/46">Section 46</external-xref> is amended by striking <quote>and</quote> at the end of paragraph (4), by striking the period at the end of paragraph (5) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H3B4AB742182C4F6400BFFC23ACEB6BB1" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H437AEA7A1C7A4E9BBA73F7CAF3408BFE"><enum>(6)</enum><text display-inline="yes-display-inline">the oil shale extraction and processing credit.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H9BC6F24109724939A60057694E9955A4"><enum>(3)</enum><header>Conforming amendments</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H2278A5D9E838482693D807B00424CEFE"><enum>(A)</enum><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/49">Section 49(a)(1)(C)</external-xref> is amended by striking <quote>and</quote> at the end of clause (iv), by striking the period at the end of clause (v) and inserting <quote>, and</quote>, and by adding at the end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="H360384553A014243BFAFF2701C0000E8" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="H5384AA2AA1A5488F8FF249CCB8E8B73"><enum>(vi)</enum><text display-inline="yes-display-inline">the basis of any qualified oil shale extraction and processing property.</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H31476006702942C189B5B927FEF2BA97"><enum>(B)</enum><text display-inline="yes-display-inline">The table of sections for subpart E of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after the item relating to section 48C the following new item:</text>
<quoted-block display-inline="no-display-inline" id="HCD5E8638DA9B4280A543EC3B3F3167B5" style="OLC">
<toc container-level="quoted-block-container" idref="HEE027C77D9A241CE9133A800EF4610F8" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="HA66A283AE0224B71B1FCCB3DDD2A9EA" level="section">Sec. 48D. Oil shale extraction and processing facility.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph></subsection>
<subsection id="H9DC8B7D9F98E4598BA2D1582B0E6CAAC"><enum>(b)</enum><header>Expensing oil shale extraction and processing property</header><text>Part VI of subchapter B of chapter 1 of is amended by inserting after section 179F the following new section:</text>
<quoted-block id="H709BBC3163664CEA96F4A0AC929330D0">
<section id="H49A07ACCE08B41F8918D00BF6CAFEAE1"><enum>179G.</enum><header>Election to expense certain oil shale extraction and processing property</header>
<subsection id="H8F69774207B94C45BD7EE4DF29A5AC13"><enum>(a)</enum><header>Treatment as expenses</header><text display-inline="yes-display-inline">A taxpayer may elect to treat the cost of any qualified oil shale extraction and processing property as an expense which is not chargeable to capital account. Any cost so treated shall be allowed as a deduction for the taxable year in which the expense is incurred.</text> </subsection>
<subsection id="HEABD0BC511AF40168B117136D97468A8"><enum>(b)</enum><header>Election</header>
<paragraph id="HA454ABD0ACA4489F84CFAEE37237462"><enum>(1)</enum><header>In general</header><text>An election under this section for any taxable year shall be made on the taxpayer’s return of the tax imposed by this chapter for the taxable year. Such election shall be made in such manner as the Secretary may by regulations prescribe.</text> </paragraph>
<paragraph id="H1FC663FE4BC54A079B2ECDC295EC6211"><enum>(2)</enum><header>Election irrevocable</header><text>Any election made under this section may not be revoked except with the consent of the Secretary.</text> </paragraph></subsection>
<subsection id="H606C7CFCFEC7480CA928EE2E2250B62D"><enum>(c)</enum><header>Qualified oil shale extraction and processing property</header><text>For purposes of this section—</text>
<paragraph id="H59AC45200B1148368C3BBDCFAD4B5B84"><enum>(1)</enum><text display-inline="yes-display-inline">The term <term>qualified oil shale extraction and processing property</term> means any property located in the United States—</text>
<subparagraph id="H3A744CCC1DB442CD8E9DA8EF746D05D"><enum>(A)</enum><text>the original use of which commences with the taxpayer and which original use is solely to extract or process oil shale, and</text> </subparagraph>
<subparagraph id="H707743386CDC49F882CBDDEB4ECBC8A4"><enum>(B)</enum><text>which is placed in service by the taxpayer after the date of the enactment of this section and before January 1, 2019.</text> </subparagraph></paragraph></subsection>
<subsection id="H35940E93398C4046AE1F32E3734972F1"><enum>(d)</enum><header>Election To allocate deduction to cooperative owner</header><text>If—</text>
<paragraph id="HDEF9A37AE84C402FAD52BCF5808E6123"><enum>(1)</enum><text>a taxpayer to which subsection (a) applies is an organization to which part I of subchapter T applies, and</text> </paragraph>
<paragraph id="H774A6B8058D44DCBA5DF071C09D4C708"><enum>(2)</enum><text>one or more persons directly holding an ownership interest in the taxpayer are organizations to which part I of subchapter T apply,</text> </paragraph><continuation-text continuation-text-level="subsection">the taxpayer may elect to allocate all or a portion of the deduction allowable under subsection (a) to such persons. Such allocation shall be equal to the person’s ratable share of the total amount allocated, determined on the basis of the person’s ownership interest in the taxpayer. The taxable income of the taxpayer shall not be reduced under section 1382 by reason of any amount to which the preceding sentence applies.</continuation-text></subsection>
<subsection id="H5877274F9D8A44F1A2FC6D569557E413"><enum>(e)</enum><header>Basis reduction</header>
<paragraph id="HB6537B7CBE5545D8A9BD02D7E983F4ED"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of this title, if a deduction is allowed under this section with respect to any qualified oil shale extraction and processing property, the basis of such property shall be reduced by the amount of the deduction so allowed.</text> </paragraph>
<paragraph id="H51D3BC8D8C3F482A977C1C9CE054AB68"><enum>(2)</enum><header>Ordinary income recapture</header><text>For purposes of section 1245, the amount of the deduction allowable under subsection (a) with respect to any property which is of a character subject to the allowance for depreciation shall be treated as a deduction allowed for depreciation under section 167.</text> </paragraph></subsection>
<subsection id="HD80DAFEFA9BB4DB80039A78153C4CC07"><enum>(f)</enum><header>Application with other deductions and credits</header>
<paragraph id="HA6912147600F4C14AEA37B550515B89B"><enum>(1)</enum><header>Other deductions</header><text>No deduction shall be allowed under any other provision of this chapter with respect to any expenditure with respect to which a deduction is allowed under subsection (a) to the taxpayer.</text> </paragraph>
<paragraph id="H304D2CEA1079454CA4DB014E345CF39D"><enum>(2)</enum><header>Credits</header><text>No credit shall be allowed under section 38 with respect to any amount for which a deduction is allowed under subsection (a).</text> </paragraph></subsection>
<subsection id="HAC349D8667FD4723B94B6B4F9733C858"><enum>(g)</enum><header>Reporting</header><text>No deduction shall be allowed under subsection (a) to any taxpayer for any taxable year unless such taxpayer files with the Secretary a report containing such information with respect to the operation of the property of the taxpayer as the Secretary shall require.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="HEDC944F0C73044CAB1411617002800DE"><enum>(c)</enum><header>Conforming amendments</header>
<paragraph id="H14F89AC158844502B76231369341007D"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/1016">Section 1016(a)</external-xref> is amended by striking <quote>and</quote> at the end of paragraph (37), by striking the period at the end of paragraph (38) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H4E7CBC1019394E2097C67F83EA084FD9" style="OLC">
<paragraph id="HB50D68654D814729995471D0696066E"><enum>(39)</enum><text>to the extent provided in section 179F(e)(1).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="H690F96C208624180ADB3AD4916886D1D"><enum>(2)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/1245">Section 1245(a)</external-xref> is amended by inserting <quote>179F,</quote> after <quote>179E,</quote> both places it appears in paragraphs (2)(C) and (3)(C).</text> </paragraph>
<paragraph id="H0218F0EC07014EA4AB4C57488829EC97"><enum>(3)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/263">Section 263(a)(1)</external-xref> is amended by striking <quote>or</quote> at the end of subparagraph (K), by striking the period at the end of subparagraph (L) and inserting <quote>, or</quote>, and by inserting after subparagraph (L) the following new subparagraph:</text>
<quoted-block id="H89774EE5C88A452382BA49C400ABFF14">
<subparagraph id="H196677D50A66445ABC5B7065CB7EEABD"><enum>(M)</enum><text>expenditures for which a deduction is allowed under section 179F.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="H6129671DD3844FE300835F6F94923616"><enum>(4)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/312">Section 312(k)(3)(B)</external-xref> is amended by striking <quote>or 179E</quote> each place it appears in the heading and text and inserting <quote>179E, or 179F</quote>.</text> </paragraph>
<paragraph id="HF5ADA390EDF843DF92B76E6F85E7F2E4"><enum>(5)</enum><text>The table of sections for part VI of subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after the item relating to section 179F the following new item:</text>
<quoted-block id="H3963FF829FF14435AF5E862161CDC9FB" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 179F. Election to expense certain oil shale extraction and processing property.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HB146FCD172C24DF995E16B4EFF39A904"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to properties placed in service after the date of the enactment of this Act.</text> </subsection></section>
<enum>VI</enum><header>Provisions Relating to Advanced Coal and Nuclear Energy</header>
<section id="H11F8BDC22CDA43D09E1B0010E651B093"><enum>601.</enum><header>Alternative method for satisfying certain requirements relating to production of refined coal</header>
<subsection id="H3AE6CC9B82244EB6949417BFC1757C10"><enum>(a)</enum><header>In general</header><text>Subparagraph (A) of <external-xref legal-doc="usc" parsable-cite="usc/26/45">section 45(c)(7)</external-xref> is amended by inserting <quote>and</quote> at the end of clause (ii) and by amending clause (iii) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H136F266043214232946B5C8BEF000813" style="OLC">
<clause display-inline="no-display-inline" id="H9604BB1CF94F4BCA86C5A5B0085222B"><enum>(iii)</enum>
<subclause commented="no" display-inline="yes-display-inline" id="HD5D0FDED0FAC40A0846D29E13FDD729B"><enum>(I)</enum><text display-inline="yes-display-inline">is certified by the taxpayer as resulting (when used in the production of steam) in a qualified emission reduction and is produced in such a manner as to result in an increase of at least 50 percent in the market value of the refined coal (excluding any increase caused by materials combined or added during the production process), as compared to the value of feedstock coal, or</text> </subclause>
<subclause id="HD1B6BD1B48CC45C69C143BEB2C02F6CF" indent="up1"><enum>(II)</enum><text display-inline="yes-display-inline">is certified by the taxpayer as resulting (when used in the production of steam) in a double emission reduction.</text> </subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="HB04DB579C42040A5885ED45702D2B0BE"><enum>(b)</enum><header>Double emission reduction</header><text>Paragraph (7) of <external-xref legal-doc="usc" parsable-cite="usc/26/45">section 45(c)</external-xref> is amended by adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HB4E276F004E64801BDD067894EF2212E" style="OLC">
<subparagraph id="HDFCCF6EC0FE24F5F0049A8EC00621834"><enum>(C)</enum><header>Double emission reduction</header><text display-inline="yes-display-inline">The term <term>double emission reduction</term> means an aggregate reduction totaling at least 80 percent of the sum of the individual emission reductions of nitrogen oxide, sulfur dioxide and mercury released when burning the refined coal (excluding any dilution caused by materials combined or added during the production process), as compared to the emissions released when burning the feedstock coal or comparable coal predominantly available in the marketplace as of January 1, 2003.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H4FCC757376E740E69FED30E8B1F486B9"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to facilities placed in service after June 11, 2007.</text> </subsection></section>
<section id="H8314C1A8958A47B8861570C326F3128D"><enum>602.</enum><header>Advanced Nuclear Power Production</header>
<subsection id="H13E20859B393442DA710F4F2FB00E425"><enum>(a)</enum><header>Increase in rate</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45J">Section 45J(a)(1)</external-xref> is amended by striking <quote>1.8 cents</quote> and inserting <quote>2.25 cents</quote>.</text> </subsection>
<subsection id="H58B9C404BD4A44E3A5DB4395AE2292B3"><enum>(b)</enum><header>Increase in national limitation</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45J">Section 45J(b)(2)</external-xref> is amended by striking <quote>6,000 megawatts</quote> and inserting <quote>12,000 megawatts</quote>.</text> </subsection>
<subsection id="H84CB80598EB84C73BA19FECBCEC5B939"><enum>(c)</enum><header>Increase in annual limitation</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/45J">Section 45J(c)(1)</external-xref> is amended by striking <quote>$125,000,000</quote> and inserting <quote>$160,000,000</quote>.</text> </subsection>
<subsection id="H503471AC7ACB4B25A40771863C717598"><enum>(d)</enum><header>Extension of placed in service date</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45J">Section 45J(d)(1)(B)</external-xref> is amended by striking <quote>January 1, 2021</quote> and inserting <quote>January 1, 2041</quote>.</text> </subsection>
<subsection id="H0E52F551753A42E68E679169BD6FA342"><enum>(e)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</text> </subsection></section>
<enum>VII</enum><header>Coal to Liquids Technology</header>
<section id="H5E0B5A67EDDC436D89A7CF5249CA05BD"><enum>701.</enum><header>Credit for investment in coal-to-liquid fuels projects</header>
<subsection id="HFB7E1A01BCC24D2EB8105F024DB3D2A1"><enum>(a)</enum><header>In general</header><text>Section 46 (relating to amount of credit) is amended by striking <quote>and</quote> at the end of paragraph (3), by striking the period at the end of paragraph (4) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph:</text>
<quoted-block id="H3C3B00C01BA9428D8445D7F443D34C58">
<paragraph id="H13072BBD4337496C90ABB2FE14D50487"><enum>(5)</enum><text>the qualifying coal-to-liquid fuels project credit.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection commented="no" display-inline="no-display-inline" id="H06BD0C1A67CE4B77B61D0041002D9605"><enum>(b)</enum><header>Amount of 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 48D the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H2BB0767D0029485EBBECC454C18D85E7" style="OLC">
<section id="H3A63AB2876604E3DAD5709149704954D"><enum>48E.</enum><header>Qualifying coal-to-liquid fuels project credit</header>
<subsection id="H785581950F5342A6B0E974E083AA4859"><enum>(a)</enum><header>In general</header><text>For purposes of section 46, the qualifying coal-to-liquid fuels project credit for any taxable year is an amount equal to 20 percent of the qualified investment for such taxable year.</text> </subsection>
<subsection id="HCAB389C0BC34440AA9C77FFD03F2379B"><enum>(b)</enum><header>Qualified investment</header>
<paragraph id="H5BAADA355239451CAB3C5DB66254FED7"><enum>(1)</enum><header>In general</header><text>For purposes of subsection (a), the qualified investment for any taxable year is the basis of property placed in service by the taxpayer during such taxable year which is part of a qualifying coal-to-liquid fuels project—</text>
<subparagraph id="H2D2572E6877E4ABB86C434EDAB27CB28"><enum>(A)</enum>
<clause commented="no" display-inline="yes-display-inline" id="H0391A65775EA420E855E4ED7BF00FB00"><enum>(i)</enum><text>the construction, reconstruction, or erection of which is completed by the taxpayer, or</text> </clause>
<clause id="H577B2B30E89B4E2798575DB103EA9CC4" indent="up1"><enum>(ii)</enum><text>which is acquired by the taxpayer if the original use of such property commences with the taxpayer, and</text> </clause></subparagraph>
<subparagraph id="HD89FAE16199A48F288ABF082DFC446DE"><enum>(B)</enum><text>with respect to which depreciation (or amortization in lieu of depreciation) is allowable.</text> </subparagraph></paragraph>
<paragraph id="HC3C332E1452B4926A7972994DA772FD2"><enum>(2)</enum><header>Applicable rules</header><text>For purposes of this section, rules similar to the rules of subsection (a)(4) and (b) of section 48 shall apply.</text> </paragraph></subsection>
<subsection id="HFB53BAE7A2E24655B3FAAEFE00A193B"><enum>(c)</enum><header>Definitions</header><text>For purposes of this section—</text>
<paragraph id="HE825AFCCA1884D8AB1683B24BB00A0B"><enum>(1)</enum><header>Qualifying coal-to-liquid fuels project</header><text>The term <term>qualifying coal-to-liquid fuels project</term> means any domestic project which—</text>
<subparagraph id="HBA16811C53884AC6A0F61445B373FCFD"><enum>(A)</enum><text>employs the class of reactions known as Fischer-Tropsch to produce at least 10,000 barrels per day of transportation grade liquid fuels from a feedstock that is primarily domestic coal (including any property which allows for the capture, transportation, or sequestration of by-products resulting from such process, including carbon emissions), and</text> </subparagraph>
<subparagraph id="H57E23A83C22E404899E8C551EA89955E"><enum>(B)</enum><text>any portion of the qualified investment in which is certified under the qualifying coal-to-liquid program as eligible for credit under this section in an amount (not to exceed $200,000,000) determined by the Secretary.</text> </subparagraph></paragraph>
<paragraph id="HFF9F7E2FAE61467DA495C6C1F9CED6B8"><enum>(2)</enum><header>Coal</header><text>The term <term>coal</term> means any carbonized or semicarbonized matter, including peat.</text> </paragraph></subsection>
<subsection id="HE844B615E1CA4D8899DF605C7542DE89"><enum>(d)</enum><header>Qualifying coal-to-liquid fuels project program</header>
<paragraph id="H102F19C3164E468E990012A4DF804753"><enum>(1)</enum><header>In general</header><text>The Secretary, in consultation with the Secretary of Energy, shall establish a qualifying coal-to-liquid fuels project program to consider and award certifications for qualified investment eligible for credits under this section to 10 qualifying coal-to-liquid fuels project sponsors under this section. The total qualified investment which may be awarded eligibility for credit under the program shall not exceed $2,000,000,000.</text> </paragraph>
<paragraph id="H1CD4C99259E64ACEA88B592619DF2395"><enum>(2)</enum><header>Period of issuance</header><text>A certificate of eligibility under paragraph (1) may be issued only during the 10-fiscal year period beginning on October 1, 2007.</text> </paragraph>
<paragraph id="H5F3396F8922C4BE694454244B4268D21"><enum>(3)</enum><header>Selection criteria</header><text>The Secretary shall not make a competitive certification award for qualified investment for credit eligibility under this section unless the recipient has documented to the satisfaction of the Secretary that—</text>
<subparagraph id="H3E1FB0438727422CB2013B081BA0EDCE"><enum>(A)</enum><text>the proposal of the award recipient is financially viable,</text> </subparagraph>
<subparagraph id="HD05DC595B8124F43A1A8152FCCAD204C"><enum>(B)</enum><text>the recipient will provide sufficient information to the Secretary for the Secretary to ensure that the qualified investment is spent efficiently and effectively,</text> </subparagraph>
<subparagraph id="H20A62B8ADD5749ACA53C64A37DE2B00"><enum>(C)</enum><text>the fuels identified with respect to the gasification technology for such project will comprise at least 90 percent of the fuels required by the project for the production of transportation grade liquid fuels,</text> </subparagraph>
<subparagraph id="H237C48F3EC704DC39F7D536DDB8E48D2"><enum>(D)</enum><text>the award recipient’s project team is competent in the planning and construction of coal gasification facilities and familiar with operation of the Fischer-Tropsch process, with preference given to those recipients with experience which demonstrates successful and reliable operations of such process, and</text> </subparagraph>
<subparagraph id="HD8CB530290D24C398032351E023BB263"><enum>(E)</enum><text>the award recipient has met other criteria established and published by the Secretary.</text> </subparagraph></paragraph></subsection>
<subsection id="HA16E2C5F68EA4AF8BAAFED95EEC08DCC"><enum>(e)</enum><header>Denial of double benefit</header><text>No deduction or other credit shall be allowed with respect to the basis of any property taken into account in determining the credit allowed under this section.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H37AA8CA2AAC5403EAFDF166B78EB9681"><enum>(c)</enum><header>Conforming amendments</header>
<paragraph id="H14057125D10345EA879098B129CEDF3B"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/49">Section 49(a)(1)(C)</external-xref> is amended by striking <quote>and</quote> at the end of clause (v), by striking the period at the end of clause (vi) and inserting <quote>, and</quote>, and by adding after clause (vi) the following new clause:</text>
<quoted-block id="H76A8672D427D41369EC79129F3077BFD">
<clause id="H616907E9A760450AA75176A4D573C97"><enum>(vii)</enum><text>the basis of any property which is part of a qualifying coal-to-liquid fuels project under section 48E.</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="HCED47CE0489E4088AFE3313F85905261"><enum>(2)</enum><text>The table of sections for subpart E of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after the item relating to section 48D the following new item:</text>
<quoted-block id="H2A3EC938B69548E4BCE734AA00DF1E6D" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 48E. Qualifying coal-to-liquid fuels project credit.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H5A172DCDFA8B4BC7918D00BF6DFE6329"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to periods after the date of the enactment of this Act, under rules similar to the rules of <external-xref legal-doc="usc" parsable-cite="usc/26/48">section 48(m)</external-xref> 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="H6D281E4548F94EF8B6A42DB45E787584"><enum>702.</enum><header>Temporary expensing for equipment used in coal-to-liquid fuels process</header>
<subsection id="H68D7AABAB8A14143BB99DBB248146E6D"><enum>(a)</enum><header>In general</header><text>Part VI of subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after section 179F the following new section:</text>
<quoted-block id="H5AED32155B144243B4F8159F7CFD54D9">
<section id="H37C6C963647442BE80BB9114580981B"><enum>179G.</enum><header>Election to expense certain coal-to-liquid fuels facilities</header>
<subsection id="H15858CA3CBF54D019D85D939DC4BC78"><enum>(a)</enum><header>Treatment as expenses</header><text>A taxpayer may elect to treat the cost of any qualified coal-to-liquid fuels process property as an expense which is not chargeable to capital account. Any cost so treated shall be allowed as a deduction for the taxable year in which the expense is incurred.</text> </subsection>
<subsection id="HD85DF4E5AEFE4285B5B4D89C91E71F5E"><enum>(b)</enum><header>Election</header>
<paragraph id="HDEEF4BD1A5964CD999812800D21BB356"><enum>(1)</enum><header>In general</header><text>An election under this section for any taxable year shall be made on the taxpayer’s return of the tax imposed by this chapter for the taxable year. Such election shall be made in such manner as the Secretary may by regulations prescribe.</text> </paragraph>
<paragraph id="H829B20EB3C354539801B93E2B8C2CDD0"><enum>(2)</enum><header>Election irrevocable</header><text>Any election made under this section may not be revoked except with the consent of the Secretary.</text> </paragraph></subsection>
<subsection id="HC8385629330E4ACA0053EE41166B8DCF"><enum>(c)</enum><header>Qualified coal-to-liquid fuels process property</header><text>The term <term>qualified coal-to-liquid fuels process property</term> means any property located in the United States—</text>
<paragraph id="HB280852E253148EB8170182D2F7BD9B2"><enum>(1)</enum><text>which employs the Fischer-Tropsch process to produce transportation grade liquid fuels from a feedstock that is primarily domestic coal (including any property which allows for the capture, transportation, or sequestration of by-products resulting from such process, including carbon emissions),</text> </paragraph>
<paragraph id="H305258AD89274982A64B18C500337859"><enum>(2)</enum><text>the original use of which commences with the taxpayer,</text> </paragraph>
<paragraph id="HFA06AA3087CC412494C2411B800FE5F"><enum>(3)</enum><text>the construction of which—</text>
<subparagraph id="H29DB21D8764040A5947704549299AB65"><enum>(A)</enum><text>except as provided in subparagraph (B), is subject to a binding construction contract entered into after the date of the enactment of this section and before January 1, 2011, but only if there was no written binding construction contract entered into on or before such date of enactment, or</text> </subparagraph>
<subparagraph id="HB30493F3DCD7484BAC5C12705400D5FC"><enum>(B)</enum><text>in the case of self-constructed property, began after the date of the enactment of this section and before January 1, 2011, and</text> </subparagraph></paragraph>
<paragraph id="HBB1834B4D0D44098A1C938C1FA5EF4FB"><enum>(4)</enum><text>which is placed in service by the taxpayer after the date of the enactment of this section and before January 1, 2016.</text> </paragraph></subsection>
<subsection id="H16583061C8F44886B4FD87F146E57E2D"><enum>(d)</enum><header>Election To allocate deduction to cooperative owner</header><text>If—</text>
<paragraph id="H29C78B3C0866455BAA611E4CEA83B5F1"><enum>(1)</enum><text>a taxpayer to which subsection (a) applies is an organization to which part I of subchapter T applies, and</text> </paragraph>
<paragraph id="H220ED414B5EF43B8AD00C2D2DCCF9B53"><enum>(2)</enum><text>one or more persons directly holding an ownership interest in the taxpayer are organizations to which part I of subchapter T apply,</text> </paragraph><continuation-text continuation-text-level="subsection">the taxpayer may elect to allocate all or a portion of the deduction allowable under subsection (a) to such persons. Such allocation shall be equal to the person’s ratable share of the total amount allocated, determined on the basis of the person’s ownership interest in the taxpayer. The taxable income of the taxpayer shall not be reduced under section 1382 by reason of any amount to which the preceding sentence applies.</continuation-text></subsection>
<subsection id="H90D706DEDBAC4F5A832C9FF8517CE6A7"><enum>(e)</enum><header>Basis reduction</header>
<paragraph id="H4B9A59832CD341A3BC7BE2BA69314298"><enum>(1)</enum><header>In general</header><text>For purposes of this title, if a deduction is allowed under this section with respect to any qualified coal-to-liquid fuels process property, the basis of such property shall be reduced by the amount of the deduction so allowed.</text> </paragraph>
<paragraph id="H29A30415166644CCBBF587AAE82E3C9"><enum>(2)</enum><header>Ordinary income recapture</header><text>For purposes of section 1245, the amount of the deduction allowable under subsection (a) with respect to any property which is of a character subject to the allowance for depreciation shall be treated as a deduction allowed for depreciation under section 167.</text> </paragraph></subsection>
<subsection id="HEFF50191627940629D5ED1771380B272"><enum>(f)</enum><header>Application with other deductions and credits</header>
<paragraph id="HC369C1FDA146458F987D8C2684CF327D"><enum>(1)</enum><header>Other deductions</header><text>No deduction shall be allowed under any other provision of this chapter with respect to any expenditure with respect to which a deduction is allowed under subsection (a) to the taxpayer.</text> </paragraph>
<paragraph id="HF6605CD3D1644F43861D23DAA1B70673"><enum>(2)</enum><header>Credits</header><text>No credit shall be allowed under section 38 with respect to any amount for which a deduction is allowed under subsection (a).</text> </paragraph></subsection>
<subsection id="HC678CC66C48B484487C6295F25D600E2"><enum>(g)</enum><header>Reporting</header><text>No deduction shall be allowed under subsection (a) to any taxpayer for any taxable year unless such taxpayer files with the Secretary a report containing such information with respect to the operation of the property of the taxpayer as the Secretary shall require.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="HF185A81EC3E04E6CB071A337568410F9"><enum>(b)</enum><header>Conforming amendments</header>
<paragraph id="H8598237BC0C34B60B900D9C16411EFF9"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/1016">Section 1016(a)</external-xref> is amended by striking <quote>and</quote> at the end of paragraph (38), by striking the period at the end of paragraph (39) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HBEEA015C1AAC47B1BCB6A8B911741639" style="OLC">
<paragraph id="H43C34EB47EC54F54AC551BE23D749905"><enum>(40)</enum><text>to the extent provided in section 179G(e)(1).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="H19A310E9DB3944E6BD0083AC2B809F96"><enum>(2)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/1245">Section 1245(a)</external-xref> is amended by inserting <quote>179G,</quote> after <quote>179F,</quote> both places it appears in paragraphs (2)(C) and (3)(C).</text> </paragraph>
<paragraph id="H66BC4E288ECA49529793FF8D7913627E"><enum>(3)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/263">Section 263(a)(1)</external-xref> is amended by striking <quote>or</quote> at the end of subparagraph (L), by striking the period at the end of subparagraph (M) and inserting <quote>, or</quote>, and by inserting after subparagraph (M) the following new subparagraph:</text>
<quoted-block id="HC81FA4D59BD048E697529E9540539DA2">
<subparagraph id="HE98EDF5D682640F3A67596D615983294"><enum>(N)</enum><text>expenditures for which a deduction is allowed under section 179G.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="HBF3DA89B25814C8D976400F54F1E8266"><enum>(4)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/312">Section 312(k)(3)(B)</external-xref> is amended by striking <quote>or 179G</quote> each place it appears in the heading and text and inserting <quote>179F, or 179G</quote>.</text> </paragraph>
<paragraph id="H62BABC7054DD4AAC91063508CA5C60FE"><enum>(5)</enum><text>The table of sections for part VI of subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after the item relating to section 179F the following new item:</text>
<quoted-block id="H78EB55524F084A3181685BE996FABE00" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 179G. Election to expense certain coal-to-liquid fuels facilities.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H71D6F80F5C064C65969D3660ECF01B54"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to properties placed in service after the date of the enactment of this Act.</text> </subsection></section>
<section id="HE95AC05FE5A74EC3A25FF6AC354D86CB"><enum>703.</enum><header>Extension of alternative fuel credit for fuel derived from coal through the Fischer-Tropsch process</header>
<subsection id="HAEFE1085A03C445A9B4CBB3884B436CE"><enum>(a)</enum><header>Alternative fuel credit</header><text display-inline="yes-display-inline">Paragraph (4) of <external-xref legal-doc="usc" parsable-cite="usc/26/6426">section 6426(d)</external-xref> is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H8CBAA8AAED73448EA211A646BF477288" style="OLC">
<paragraph id="HEBA92B36AC2A4F9B90A94553E96D065D"><enum>(4)</enum><header>Termination</header><text>This subsection shall not apply to—</text>
<subparagraph id="HB1DD28631C8C4DE0B100A9796D100949"><enum>(A)</enum><text>any sale or use involving liquid fuel derived from a feedstock that is primarily domestic coal (including peat) through the Fischer-Tropsch process for any period after September 30, 2020,</text> </subparagraph>
<subparagraph id="H1F76A168A4CD4840A655B85C38AAB4A5"><enum>(B)</enum><text>any sale or use involving liquified hydrogen for any period after September 30, 2014, and</text> </subparagraph>
<subparagraph id="H52C01EEE2E71441DB8A578995477AB3E"><enum>(C)</enum><text>any other sale or use for any period after September 30, 2009.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H35006B96BA554CF6A7D55FE84C4962F5"><enum>(b)</enum><header>Payments</header>
<paragraph id="H075B15823E714629B44072715E20A592"><enum>(1)</enum><header>In general</header><text>Paragraph (5) of <external-xref legal-doc="usc" parsable-cite="usc/26/6427">section 6427(e)</external-xref> is amended by striking <quote>and</quote> and the end of subparagraph (C), by striking the period at the end of subparagraph (D) and inserting <quote>, and</quote>, and by adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HC24C351A11E84680B32278EA00A5F3F3" style="OLC">
<subparagraph id="H719BD4360D174AFCB841DB99900FED"><enum>(E)</enum><text>any alternative fuel or alternative fuel mixture (as so defined) involving liquid fuel derived from coal (including peat) through the Fischer-Tropsch process sold or used after September 30, 2020.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="HF3B54464EA74429189145FD83B33D6EC"><enum>(2)</enum><header>Conforming amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6427">Section 6427(e)(5)(C)</external-xref> is amended by striking <quote>subparagraph (D)</quote> and inserting <quote>subparagraphs (D) and (E)</quote>.</text> </paragraph></subsection></section>
<section id="HB3611179BFD345BE83C7F38A99B53D"><enum>704.</enum><header>Modifications to enhanced oil recovery credit</header>
<subsection id="HDD77B0E5F8E240D5B83883269016E047"><enum>(a)</enum><header>Enhanced credit for carbon dioxide injections</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/43">Section 43</external-xref> is amended by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H2198E5797E0A43FCBD7E142F9C232580" style="OLC">
<subsection id="HF6989BD421C34C739521CDF864F5F095"><enum>(f)</enum><header>Enhanced credit for projects using qualified carbon dioxide</header>
<paragraph id="H4A435E1390F4423698F661016FA3FDDA"><enum>(1)</enum><header>In general</header><text>For purposes of this section—</text>
<subparagraph id="H54F4359B90CB486A872ED120B313DD7B"><enum>(A)</enum><text>the term <term>qualified project</term> includes a project described in paragraph (2), and</text> </subparagraph>
<subparagraph id="H7E2FD9BAF6EE4B6790D9F2F2D1EBB12"><enum>(B)</enum><text>in the case of a project described in paragraph (2), subsection (a) shall be applied by substituting <quote>50 percent</quote> for <quote>15 percent</quote>.</text> </subparagraph></paragraph>
<paragraph id="HFF9B9CAFBF054D259DAD1814AA51134D"><enum>(2)</enum><header>Projects described</header><text>A project is described in this paragraph if it begins or is substantially expanded after December 31, 2007, and</text>
<subparagraph id="HA7EA2E3B26E94E1D88B7D75E5EE8CF79"><enum>(A)</enum><text>uses qualified carbon dioxide in an enhanced oil, natural gas, or coalbed methane recovery method, which involves flooding or injection, or</text> </subparagraph>
<subparagraph id="H03AA23BE71B54ED183FFAA5F36E4B0E2"><enum>(B)</enum><text>enables the capture or sequestration of qualified carbon dioxide.</text> </subparagraph></paragraph>
<paragraph id="H9DE7916F40D0413AAEC9B9F2524FF4B3"><enum>(3)</enum><header>Definitions</header><text>For purposes of this subsection—</text>
<subparagraph id="H1B2668E7C5234E0A9337B26011072E8F"><enum>(A)</enum><header>Enhanced oil recovery</header><text>The term <term>enhanced oil recovery</term> means recovery of oil by injecting or flooding with qualified carbon dioxide.</text> </subparagraph>
<subparagraph id="HDF05AE0E10C74F8A8FF400C39A1A1AE"><enum>(B)</enum><header>Enhanced natural gas recovery</header><text>The term <term>enhanced natural gas recovery</term> means recovery of natural gas by injecting or flooding with qualified carbon dioxide.</text> </subparagraph>
<subparagraph id="H936F10E90EE84916B1BF009E76202D42"><enum>(C)</enum><header>Enhanced coalbed methane recovery</header><text>The term <term>enhanced coalbed methane recovery</term> means recovery of coalbed methane by injecting or flooding with qualified carbon dioxide.</text> </subparagraph>
<subparagraph id="H4E37D7D820254FE6B486034339C5C488"><enum>(D)</enum><header>Qualified carbon dioxide</header><text>The term <term>qualified carbon dioxide</term> means carbon dioxide which is produced from the gasification and subsequent refinement of a feedstock which is primarily domestic coal, at a facility which produces coal-to-liquid fuel.</text> </subparagraph>
<subparagraph id="HBFA106E53C3942B30016C1B89365F1E8"><enum>(E)</enum><header>Capture or sequestration</header><text>The term <term>capture or sequestration</term> means any equipment or facility necessary to—</text>
<clause id="HC813FF0569EE4A3592DAF33155D85B9"><enum>(i)</enum><text>capture or separate qualified carbon dioxide from other emissions,</text> </clause>
<clause id="HB2CE44E3B4A645A9B34D5D685DB0E695"><enum>(ii)</enum><text>transport qualified carbon dioxide, or</text> </clause>
<clause id="H10AB1B544DFA46E28893D7F980ED3300"><enum>(iii)</enum><text>process and use qualified carbon dioxide in a qualified project.</text> </clause></subparagraph></paragraph>
<paragraph id="HF37C29E7493647C2B900E47497686031"><enum>(4)</enum><header>Termination</header><text>This subsection shall not apply to costs paid or incurred for any qualified project after December 31, 2020.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H429E9AC1497746C8A1E333A079967903"><enum>(b)</enum><header>Conforming amendments</header>
<paragraph id="H473774EF15074EE3B100887BA9D7A430"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/43">Section 43</external-xref> is amended—</text>
<subparagraph id="HEE9291B7DEAE4C55B05C052B61C20060"><enum>(A)</enum><text>by striking <quote>enhanced oil recovery credit</quote> in subsection (a) and inserting <quote>enhanced oil, natural gas, and coalbed methane recovery, and capture and sequestration credit</quote>,</text> </subparagraph>
<subparagraph id="H4D739F5E59DC47A3A84240DD33FDB75D"><enum>(B)</enum><text>by striking <quote>qualified enhanced oil recovery costs</quote> each place it appears and inserting <quote>qualified costs</quote>,</text> </subparagraph>
<subparagraph id="H8ED64C7EBB0E4619A5A0310494AAEF9E"><enum>(C)</enum><text>by striking <quote>qualified enhanced oil recovery project</quote> each place it appears and inserting <quote>qualified project</quote>, and</text> </subparagraph>
<subparagraph id="H54C9DD6614C3456200AE3C2803FF8E08"><enum>(D)</enum><text>by striking the heading and inserting:</text>
<quoted-block display-inline="no-display-inline" id="HE15E996EA83244F097842442C2D23F9" style="OLC">
<section id="HE232F75652E04DAF98DE66B97636B527"><enum>43.</enum><header>Enhanced oil, natural gas, and coalbed methane recovery, and capture and sequestration credit</header> </section><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph>
<paragraph id="HC7C03382D62A4F1C00D874E211B1A746"><enum>(2)</enum><text>The item in the table of sections for subpart D of part IV of subchapter A of chapter 1 relating to <external-xref legal-doc="usc" parsable-cite="usc/26/43">section 43</external-xref> is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H03BA9FD8975B4940B6A388FE8516FED" style="OLC">
<toc>
<toc-entry bold="off" level="section">Sec. 43. Enhanced oil, natural gas, and coalbed methane recovery, and capture and sequestration credit.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection>
<subsection id="HEA1A1985B42147EC00D523466618331C"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to costs paid or incurred in taxable years ending after December 31, 2007.</text> </subsection></section>
<section id="HB7D8417A7DF2491E9B00DAF596B97DC"><enum>705.</enum><header>Allowance of enhanced oil, natural gas, and coalbed methane recovery, and capture and sequestration credit against the alternative minimum tax</header>
<subsection id="H6B6CED51A89145C69400639C0228A2DD"><enum>(a)</enum><header>In general</header><text>Subsection (c) of section 38 (relating to limitation based on amount of tax) is amended by redesignating paragraphs (4) and (5) as paragraphs (5) and (6), respectively, and by inserting after paragraph (3) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HD39BDF54C7F147BA97DE22BBCE6DB2CF" style="OLC">
<paragraph id="H2FE2427BDEB74DA49EC26765627E0068"><enum>(4)</enum><header>Special rules for enhanced oil, natural gas, and coalbed methane recovery, and capture and sequestration credit</header><text>In the case of the enhanced oil, natural gas, and coalbed methane recovery, and capture and sequestration credit determined under section 43—</text>
<subparagraph id="HBEB60E02BEDB46369B99CD1F07BB7F16"><enum>(A)</enum><text>this section and section 39 shall be applied separately with respect to such credit, and</text> </subparagraph>
<subparagraph id="HE2369F80B6814D5193DD57B6E6CAC31D"><enum>(B)</enum><text>in applying paragraph (1) to such credit—</text>
<clause id="H0FDD8066114A4FC6B9593E97F1675357"><enum>(i)</enum><text>the tentative minimum tax shall be treated as being zero, and</text> </clause>
<clause id="H5D5532FD518D44D9AD7D4B6CA3AB6CF1"><enum>(ii)</enum><text>the limitation under paragraph (1) (as modified by clause (i)) shall be reduced by the credit allowed under subsection (a) for the taxable year (other than the enhanced oil, natural gas, and coalbed methane recovery, and capture and sequestration credit and the specified credits).</text> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H97B8682DC3EF458A892BE8FFE194A473"><enum>(b)</enum><header>Conforming amendments</header>
<paragraph id="H3CE53D72F9E3403ABB9DCC5A47D7C05"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/38">Section 38(c)(2)(A)(ii)(II)</external-xref> is amended by inserting <quote>the enhanced oil, natural gas, and coalbed methane recovery, and capture and sequestration credit,</quote> after <quote>employee credit,</quote>.</text> </paragraph>
<paragraph id="H40E6AAE9AD394F8BABB50014297ED371"><enum>(2)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/38">Section 38(c)(3)(A)(ii)(II)</external-xref> is amended by inserting <quote>, the enhanced oil, natural gas, coalbed methane recovery, capture and sequestration credit,</quote> after <quote>employee credit</quote>.</text> </paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H84248BFD2827457F98567677EDF198D"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years ending after December 31, 2007.</text> </subsection></section>