[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4612 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 4612

  To amend the Internal Revenue Code of 1986 to provide an investment 
    credit for electric generation facilities with climate neutral 
                              combustion.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 13, 2007

 Mr. Costa (for himself, Mr. McCarthy of California, and Mr. Daniel E. 
    Lungren of California) 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 an investment 
    credit for electric generation facilities with climate neutral 
                              combustion.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Climate Neutral Electricity 
Generation Act of 2007''.

SEC. 2. CLIMATE NEUTRAL COMBUSTION CREDIT.

    (a) In General.--Section 46 of the Internal Revenue Code of 1986 
(relating to amount of credit) is amended by striking ``and'' at the 
end of paragraph (3), by striking the period at the end of paragraph 
(4) and inserting ``, and'', and by adding at the end the following new 
paragraph:
            ``(5) the climate neutral combustion credit.''.
    (b) Amount of Credit.--Subpart E of part IV of subchapter A of 
chapter 1 of such Code (relating to rules for computing investment 
credit) is amended by inserting after section 48B the following new 
section:

``SEC. 48C. CLIMATE NEUTRAL COMBUSTION CREDIT.

    ``(a) In General.--For purposes of section 46, the climate neutral 
combustion credit for any taxable year is an amount equal to 20 percent 
of the qualified investment for such taxable year.
    ``(b) Qualified Investment.--
            ``(1) In general.--For purposes of subsection (a), the 
        qualified investment for any taxable year is the basis of any 
        property placed in service by the taxpayer during such taxable 
        year which is part of a climate neutral combustion facility--
                    ``(A)(i) the construction, reconstruction, or 
                erection of which is completed by the taxpayer, or
                    ``(ii) which is acquired by the taxpayer if the 
                original use of such property commences with the 
                taxpayer, and
                    ``(B) with respect to which depreciation (or 
                amortization in lieu of depreciation) is allowable.
            ``(2) Special rule for certain subsidized property.--Rules 
        similar to section 48(a)(4) shall apply for purposes of this 
        section.
            ``(3) Certain qualified progress expenditures rules made 
        applicable.--Rules similar to the rules of subsections (c)(4) 
        and (d) of section 46 (as in effect on the day before the 
        enactment of the Revenue Reconciliation Act of 1990) shall 
        apply for purposes of this section.
    ``(c) Climate Neutral Combustion Facility.--For purposes of this 
section, the term `climate neutral combustion facility' means any 
facility which--
            ``(1) burns matter to produce electricity,
            ``(2) captures the carbon dioxide released during 
        combustion and uses such carbon dioxide to recover hydrocarbon 
        fuel from below ground, and
            ``(3) produces no atmospheric emissions of mercury or 
        greenhouse gasses and no emissions that form fine particulate, 
        smog, or acid rain.
    ``(d) Denial of Double Benefit.--A credit shall not be allowed 
under this section for any qualified investment for which a credit is 
allowed under section 48A or 48B.''.
    (c) Conforming Amendments.--
            (1) Section 49(a)(1)(C) of such Code is amended by striking 
        ``and'' at the end of clause (iii), by striking the period at 
        the end of clause (iv) and inserting ``, and'', and by adding 
        at the end the following new clause:
                            ``(v) the basis of any property which is 
                        part of a qualifying climate neutral combustion 
                        facility.''.
            (2) 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:

``Sec. 48C. Climate neutral combustion credit.''.
    (d) Effective Date.--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 section 48(m) 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).
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