[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6741 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 6741

To amend the Internal Revenue Code of 1986 to modify and extend certain 
                      energy-related tax credits.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 31, 2008

  Mr. Israel 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 modify and extend certain 
                      energy-related tax credits.

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

SECTION 1. EXTENSION AND MODIFICATION OF RENEWABLE ENERGY PRODUCTION 
              TAX CREDIT.

    (a) Extension of Credit.--Each of the following provisions of 
section 45(d) of the Internal Revenue Code of 1986 (relating to 
qualified facilities) is amended by striking ``January 1, 2009'' and 
inserting ``January 1, 2019'':
            (1) Paragraph (1).
            (2) Clauses (i) and (ii) of paragraph (2)(A).
            (3) Clauses (i)(I) and (ii) of paragraph (3)(A).
            (4) Paragraph (4).
            (5) Paragraph (5).
            (6) Paragraph (6).
            (7) Paragraph (7).
            (8) Paragraph (8).
            (9) Subparagraphs (A) and (B) of paragraph (9).
    (b) Production Credit for Electricity Produced From Marine 
Renewables.--
            (1) In general.--Paragraph (1) of section 45(c) of such 
        Code (relating to resources) is amended by striking ``and'' at 
        the end of subparagraph (G), by striking the period at the end 
        of subparagraph (H) and inserting ``, and'', and by adding at 
        the end the following new subparagraph:
                    ``(I) marine and hydrokinetic renewable energy.''.
            (2) Marine renewables.--Subsection (c) of section 45 of 
        such Code is amended by adding at the end the following new 
        paragraph:
            ``(10) Marine and hydrokinetic renewable energy.--
                    ``(A) In general.--The term `marine and 
                hydrokinetic renewable energy' means energy derived 
                from--
                            ``(i) waves, tides, and currents in oceans, 
                        estuaries, and tidal areas,
                            ``(ii) free flowing water in rivers, lakes, 
                        and streams,
                            ``(iii) free flowing water in an irrigation 
                        system, canal, or other man-made channel, 
                        including projects that utilize nonmechanical 
                        structures to accelerate the flow of water for 
                        electric power production purposes, or
                            ``(iv) differentials in ocean temperature 
                        (ocean thermal energy conversion).
                    ``(B) Exceptions.--Such term shall not include any 
                energy which is derived from any source which utilizes 
                a dam, diversionary structure (except as provided in 
                subparagraph (A)(iii)), or impoundment for electric 
                power production purposes.''.
            (3) Definition of facility.--Subsection (d) of section 45 
        of such Code is amended by adding at the end the following new 
        paragraph:
            ``(11) Marine and hydrokinetic renewable energy 
        facilities.--In the case of a facility producing electricity 
        from marine and hydrokinetic renewable energy, the term 
        `qualified facility' means any facility owned by the taxpayer--
                    ``(A) which has a nameplate capacity rating of at 
                least 150 kilowatts, and
                    ``(B) which is originally placed in service on or 
                after the date of the enactment of this paragraph and 
                before January 1, 2010.''.
            (4) Credit rate.--Subparagraph (A) of section 45(b)(4) of 
        such Code is amended by striking ``or (9)'' and inserting 
        ``(9), or (11)''.
            (5) Coordination with small irrigation power.--Paragraph 
        (5) of section 45(d) of such Code, as amended by subsection 
        (a), is amended by striking ``January 1, 2019'' and inserting 
        ``the date of the enactment of paragraph (11)''.
    (c) Sales of Electricity to Regulated Public Utilities Treated as 
Sales to Unrelated Persons.--Section 45(e)(4) of such Code (relating to 
related persons) is amended by adding at the end the following new 
sentence: ``A taxpayer shall be treated as selling electricity to an 
unrelated person if such electricity is sold to a regulated public 
utility (as defined in section 7701(a)(33).''.
    (d) Trash Facility Clarification.--Paragraph (7) of section 45(d) 
of such Code is amended--
            (1) by striking ``facility which burns'' and inserting 
        ``facility (other than a facility described in paragraph (6)) 
        which uses'', and
            (2) by striking ``combustion''.
    (e) Effective Dates.--
            (1) Extension.--The amendments made by subsection (a) shall 
        apply to property originally placed in service after December 
        31, 2008.
            (2) Modifications.--The amendments made by subsections (b) 
        and (c) shall apply to electricity produced and sold after the 
        date of the enactment of this Act, in taxable years ending 
        after such date.
            (3) Trash facility clarification.--The amendments made by 
        subsection (d) shall apply to electricity produced and sold 
        before, on, or after December 31, 2007.

SEC. 2. EXTENSION AND MODIFICATION OF SOLAR ENERGY AND FUEL CELL 
              INVESTMENT TAX CREDIT.

    (a) Extension of Credit.--
            (1) Solar energy property.--Paragraphs (2)(A)(i)(II) and 
        (3)(A)(ii) of section 48(a) of the Internal Revenue Code of 
        1986 (relating to energy credit) are each amended by striking 
        ``January 1, 2009'' and inserting ``January 1, 2019''.
            (2) Fuel cell property.--Subparagraph (E) of section 
        48(c)(1) of such Code (relating to qualified fuel cell 
        property) is amended by striking ``December 31, 2008'' and 
        inserting ``December 31, 2018''.
            (3) Qualified microturbine property.--Subparagraph (E) of 
        section 48(c)(2) of such Code (relating to qualified 
        microturbine property) is amended by striking ``December 31, 
        2008'' and inserting ``December 31, 2018''.
    (b) Allowance of Energy Credit Against Alternative Minimum Tax.--
Subparagraph (B) of section 38(c)(4) of such Code (relating to 
specified credits) 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 credit determined under section 46 to the extent that 
such credit is attributable to the energy credit determined under 
section 48.''.
    (c) Repeal of Dollar Per Kilowatt Limitation for Fuel Cell 
Property.--
            (1) In general.--Section 48(c)(1) of such Code (relating to 
        qualified fuel cell), as amended by subsection (a)(2), is 
        amended by striking subparagraph (B) and by redesignating 
        subparagraphs (C), (D), and (E) as subparagraphs (B), (C), and 
        (D), respectively.
            (2) Conforming amendment.--Section 48(a)(1) of such Code is 
        amended by striking ``paragraphs (1)(B) and (2)(B) of 
        subsection (c)'' and inserting ``subsection (c)(2)(B)''.
    (d) Public Electric Utility Property Taken Into Account.--
            (1) In general.--Paragraph (3) of section 48(a) of such 
        Code is amended by striking the second sentence thereof.
            (2) Conforming amendments.--
                    (A) Paragraph (1) of section 48(c) of such Code, as 
                amended by this section, is amended by striking 
                subparagraph (C) and redesignating subparagraph (D) as 
                subparagraph (C).
                    (B) Paragraph (2) of section 48(c) of such Code, as 
                amended by subsection (a)(3), is amended by striking 
                subparagraph (D) and redesignating subparagraph (E) as 
                subparagraph (D).
    (e) Effective Dates.--
            (1) Extension.--The amendments made by subsection (a) shall 
        take effect on the date of the enactment of this Act.
            (2) Allowance against alternative minimum tax.--The 
        amendments made by subsection (b) shall apply to credits 
        determined under section 46 of the Internal Revenue Code of 
        1986 in taxable years beginning after the date of the enactment 
        of this Act and to carrybacks of such credits.
            (3) Fuel cell property and public electric utility 
        property.--The amendments made by subsections (c) and (d) shall 
        apply to periods after the date of the enactment of this Act, 
        in taxable years ending after such date, 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).

SEC. 3. EXTENSION AND MODIFICATION OF RESIDENTIAL ENERGY EFFICIENT 
              PROPERTY CREDIT.

    (a) Extension.--Subsection (g) of section 25D of the Internal 
Revenue Code of 1986 (relating to termination) is amended by striking 
``December 31, 2008'' and inserting ``December 31, 2018''.
    (b) No Dollar Limitation for Credit for Solar Electric Property.--
            (1) In general.--Section 25D(b)(1) of such Code (relating 
        to maximum credit) is amended by striking subparagraph (A) and 
        by redesignating subparagraphs (B) and (C) as subparagraphs (A) 
        and (B), respectively.
            (2) Conforming amendments.--Section 25D(e)(4) of such Code 
        is amended--
                    (A) by striking clause (i) in subparagraph (A),
                    (B) by redesignating clauses (ii) and (iii) in 
                subparagraph (A) as clauses (i) and (ii), respectively, 
                and
                    (C) by striking ``, (2),'' in subparagraph (C).
    (c) Credit Allowed Against Alternative Minimum Tax.--
            (1) In general.--Subsection (c) of section 25D of such Code 
        is amended to read as follows:
    ``(c) Limitation Based on Amount of Tax; Carryforward of Unused 
Credit.--
            ``(1) Limitation based on amount of tax.--In the case of a 
        taxable year to which section 26(a)(2) does not apply, the 
        credit allowed under subsection (a) for the taxable year shall 
        not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                subpart (other than this section) and section 27 for 
                the taxable year.
            ``(2) Carryforward of unused credit.--
                    ``(A) Rule for years in which all personal credits 
                allowed against regular and alternative minimum tax.--
                In the case of a taxable year to which section 26(a)(2) 
                applies, if the credit allowable under subsection (a) 
                exceeds the limitation imposed by section 26(a)(2) for 
                such taxable year reduced by the sum of the credits 
                allowable under this subpart (other than this section), 
                such excess shall be carried to the succeeding taxable 
                year and added to the credit allowable under subsection 
                (a) for such succeeding taxable year.
                    ``(B) Rule for other years.--In the case of a 
                taxable year to which section 26(a)(2) does not apply, 
                if the credit allowable under subsection (a) exceeds 
                the limitation imposed by paragraph (1) 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.''.
            (2) Conforming amendments.--
                    (A) Section 23(b)(4)(B) of such Code is amended by 
                inserting ``and section 25D'' after ``this section''.
                    (B) Section 24(b)(3)(B) of such Code is amended by 
                striking ``and 25B'' and inserting ``, 25B, and 25D''.
                    (C) Section 25B(g)(2) of such Code is amended by 
                striking ``section 23'' and inserting ``sections 23 and 
                25D''.
                    (D) Section 26(a)(1) of such Code is amended by 
                striking ``and 25B'' and inserting ``25B, and 25D''.
    (d) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to taxable years beginning after December 31, 2007.
            (2) Application of egtrra sunset.--The amendments made by 
        subparagraphs (A) and (B) of subsection (c)(2) shall be subject 
        to title IX of the Economic Growth and Tax Relief 
        Reconciliation Act of 2001 in the same manner as the provisions 
        of such Act to which such amendments relate.
                                 <all>