[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2691 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 2691

   To amend the Internal Revenue Code of 1986 to provide additional 
       incentives for facilities producing electricity from wind.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 12, 2007

  Mr. Walz of Minnesota (for himself, Mr. Peterson of Minnesota, Mr. 
   Ellison, Ms. McCollum of Minnesota, Ms. Kaptur, and Mr. Boswell) 
 introduced the following bill; which was referred to the Committee on 
                             Ways and Means

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to provide additional 
       incentives for facilities producing electricity from wind.

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

SECTION 1. PARTIAL EXEMPTION FROM PASSIVE ACTIVITY LIMITATIONS FOR 
              QUALIFIED WIND FACILITIES.

    (a) In General.--Section 469 of the Internal Revenue Code of 1986 
(relating to passive activity losses and credits limited) is amended by 
redesignating subsections (l) and (m) as subsections (m) and (n), 
respectively, and by inserting after subsection (k) the following new 
subsection:
    ``(l) $40,000 Offset for Qualified Wind Facilities.--
            ``(1) In general.--In the case of any natural person, 
        subsection (a) shall not apply to that portion of the passive 
        activity loss or the deduction equivalent (within the meaning 
        of subsection (j)(5)) of the passive activity credit for any 
        taxable year which is attributable to any interest of such 
        person in a facility described in section 45(d)(1) (relating to 
        wind facility).
            ``(2) Dollar limitation.--The aggregate amount to which 
        paragraph (1) applies for any taxable year shall not exceed 
        $40,000.
            ``(3) Special rule for estates.--
                    ``(A) In general.--In the case of taxable years of 
                an estate ending less than 2 years after the date of 
                the death of the decedent, this subsection shall apply 
                to any interest in a facility described in section 
                45(d)(1) (relating to wind facility) held by the 
                decedent on the date of his death.
                    ``(B) Reduction for surviving spouse's exemption.--
                For purposes of subparagraph (A), the $40,000 amount 
                under paragraph (2) shall be reduced by the amount of 
                the exemption under paragraph (1) allowable to the 
                surviving spouse of the decedent for the taxable year 
                ending with or within the taxable year of the estate.
            ``(4) Married individuals filing separately.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), in the case of any married individual 
                filing a separate return, this subsection shall be 
                applied by substituting `$20,000' for `$40,000' each 
                place it appears.
                    ``(B) Taxpayers not living apart.--This subsection 
                shall not apply to a taxpayer who--
                            ``(i) is a married individual filing a 
                        separate return for any taxable year, and
                            ``(ii) does not live apart from his spouse 
                        at all times during such taxable year.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to losses and credits taken into account in taxable years 
beginning after the date of the enactment of this Act.

SEC. 2. CREDIT FOR ELECTRICITY PRODUCED FROM QUALIFIED WIND FACILITIES 
              ALLOWED AGAINST ALTERNATIVE MINIMUM TAX.

    (a) In General.--Subparagraph (B) of section 38(c)(4) of the 
Internal Revenue Code of 1986 (relating to specified credits) is 
amended--
            (1) by striking ``and'' at the end of clause (i),
            (2) by inserting ``(other than a facility described in 
        clause (iii))'' after ``facility'' in clause (ii)(I),
            (3) by striking the period at the end of clause (ii) and 
        inserting ``, and'', and
            (4) by adding at the end the following new clause:
                            ``(iii) the credit determined under section 
                        45 to the extent that such credit is 
                        attributable to electricity produced at a 
                        facility described in section 45(d)(1) 
                        (relating to wind facility).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
                                 <all>