110 HR 4612 IH: Climate Neutral Electricity Generation U.S. House of Representatives 2007-12-13 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 110th CONGRESS 1st Session H. R. 4612 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.

1.

Short title

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

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:

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).