[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2810 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 2810

To amend the Internal Revenue Code of 1986 to provide a credit against 
income tax for biomethane produced from biomass which is equivalent to 
       the credit allowed for electricity produced from biomass.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 21, 2007

   Mr. Jefferson (for himself, Ms. Norton, Mr. Butterfield, and Mr. 
  Melancon) 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 a credit against 
income tax for biomethane produced from biomass which is equivalent to 
       the credit allowed for electricity produced from biomass.

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

SECTION 1. CREDIT FOR BIOMETHANE PRODUCED FROM BIOMASS WHICH IS 
              EQUIVALENT TO CREDIT FOR ELECTRICITY PRODUCED FROM 
              BIOMASS.

    (a) In General.--Subsection (e) of section 45 of the Internal 
Revenue Code of 1986 (relating to electricity produced from certain 
renewable resources, etc.) is amended by redesignating paragraphs (9), 
(10), and (11) as paragraphs (10), (11), and (12), respectively, and by 
inserting after paragraph (8) the following new paragraph:
            ``(9) Credit for biomethane produced from biomass which is 
        equivalent to credit for electricity produced from biomass.--
                    ``(A) Determination of credit amount.--In the case 
                of a producer of biomethane, the credit determined 
                under this section (without regard to this paragraph) 
                for any taxable year shall be increased by 1.5 cents 
                for each 3412 Btus of biomethane--
                            ``(i) produced by the taxpayer--
                                    ``(I) from biomass, and
                                    ``(II) at a biomethane facility 
                                during the 10-year period beginning on 
                                the date the facility was originally 
                                placed in service, and
                            ``(ii) sold by the taxpayer to an unrelated 
                        person during the taxable year.
                    ``(B) Biomass.--For purposes of this paragraph, the 
                term `biomass' has the meaning given to such term by 
                section 45K(c)(3).
                    ``(C) Biomethane.--For purposes of this paragraph, 
                the term `biomethane' means gas produced from biomass 
                if the properties of such gas meet the requirements to 
                be transported in an interstate natural gas pipeline as 
                a natural gas substitute. Such term includes liquefied 
                gas which would be described in the preceding sentence 
                but for being in liquid form.
                    ``(D) Application of rules.--Rules similar to the 
                rules of the subsection (b)(3) and paragraphs (1) 
                through (5) of this subsection shall apply for purposes 
                of determining the amount of any increase under this 
                paragraph.
                    ``(E) Facilities producing electricity before 
                january 1, 2008.--For purposes of subparagraph 
                (A)(i)(II) and subsection (d)(11), in the case of a 
                facility which was originally placed in service before 
                January 1, 2008 (determined without regard to this 
                subparagraph), and which produced electricity from 
                methane--
                            ``(i) such facility shall be treated as 
                        originally placed in service on the first day 
                        on which such facility first produced 
                        biomethane if no credit was allowed under this 
                        section for electricity so produced and sold 
                        before such day, or
                            ``(ii) if credit was allowed under this 
                        section for such electricity, only the portion 
                        of the 10-year period referred to in subsection 
                        (a)(2)(A)(ii) which is after December 31, 2007, 
                        may be taken into account under this 
                        paragraph.''.
    (b) Biomethane Facility.--Subsection (d) of section 45 of such Code 
is amended by adding at the end the following new paragraph:
            ``(11) Biomethane facility.--In the case of a facility 
        producing biomethane, the term `biomethane facility' means any 
        facility placed in service after December 31, 2007, and before 
        January 1, 2017.''.
    (c) Coordination With Credit for Producing Fuel From a 
Nonconventional Source.--Paragraph (10) of section 45(e) of such Code, 
as redesignated by subsection (a), is amended by adding at the end the 
following new subparagraph:
                    ``(C) Biomethane facilities.--The term `biomethane 
                facility' shall not include any facility the production 
                from which is allowed as a credit under section 45K for 
                the taxable year or any prior taxable year (or under 
                section 29, as in effect on the day before the date of 
                enactment of the Energy Tax Incentives Act of 2005, for 
                any prior taxable year).''.
    (d) Conforming Amendment.--Paragraph (2) of section 45(b) of such 
Code is amended by striking ``subsection (a)'' and inserting 
``subsections (a) and (e)(9)(A)''.
    (e) Effective Date.--The amendments made by this section shall 
apply to biomethane produced and sold after December 31, 2007.
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