[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7249 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 7249

 To amend the Internal Revenue Code of 1986 to provide a tax credit to 
farmers to offest high energy prices, to encourage the use of renewable 
               energy, and to reduce prices to consumers.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 2, 2008

   Mr. Holt 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 tax credit to 
farmers to offest high energy prices, to encourage the use of renewable 
               energy, and to reduce prices to consumers.

    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 ``Renewable Power for Agriculture 
Incentive Program Act of 2008''.

SEC. 2. CREDIT TO FARMERS TO OFFSET HIGH ENERGY COSTS, ENCOURAGE USE OF 
              RENEWABLE ENERGY, AND REDUCED PRICES TO CONSUMERS.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45Q. FARMER'S RENEWABLE ENERGY CREDIT.

    ``(a) Determination of Credits for 2008.--
            ``(1) In general.--In the case of the taxpayer's taxable 
        year which includes December 31, 2008, the farmer's renewable 
        energy credit determined under this section is an amount equal 
        to the excessive fuel cost paid or incurred by the taxpayer 
        during such taxable year for any creditable fuel used by the 
        taxpayer in the trade or business of farming.
            ``(2) Excessive fuel cost.--For purposes of this 
        subsection--
                    ``(A) In general.--The term `excessive fuel cost' 
                means, with respect to any creditable fuel, the excess 
                (if any) of--
                            ``(i) the amount paid or incurred by the 
                        taxpayer for such fuel, over
                            ``(ii) the adjusted base price for such 
                        fuel.
                    ``(B) Adjusted base price.--The term `adjusted base 
                price' means, with respect to any creditable fuel, the 
                average price for such fuel on September 6, 2004, for 
                the region in which the taxpayer purchased such fuel 
                (as determined by Secretary using data of the Energy 
                Information Agency of the Department of Energy).
    ``(b) Determination of Credits After 2008.--In the case of any 
taxable year of the taxpayer beginning after December 31, 2008--
            ``(1) In general.--In the case of an eligible taxpayer, the 
        farmer's renewable energy credit determined under this section 
        is an amount equal to the product of--
                    ``(A) the annual fuel reduction amount, multiplied 
                by
                    ``(B) the average fuel price.
            ``(2) Credit eligibility conditioned on use of prior year 
        credit.--No credit shall be allowed to any taxpayer under this 
        subsection, unless the taxpayer demonstrates to the 
        satisfaction of the Secretary that such taxpayer has used the 
        credit allowed to the taxpayer under this section for the 
        preceding taxable year as follows:
                    ``(A) 50 percent of the amount of such credit has 
                been used to reduce the prices to consumers of the 
                agricultural commodities produced by the taxpayer in 
                the trade or business of farming.
                    ``(B) In the case of any creditable fuel other than 
                electricity, 50 percent of the amount of such credit 
                has been used to substitute renewable energy for the 
                fossil fuels used by the taxpayer in the trade or 
                business of farming.
                    ``(C) In the case of electricity, 50 percent of the 
                amount of such credit has been used to either--
                            ``(i) substitute electricity produced by 
                        the taxpayer from renewable resources for the 
                        electricity purchased from the grid and used by 
                        the taxpayer in the trade or business of 
                        farming, or
                            ``(ii) decrease the amount of electricity 
                        used by the taxpayer in the trade or business 
                        of farming by increasing efficiency.
            ``(3) Definitions.--For purposes of this subsection--
                    ``(A) Annual fuel reduction amount.--The term 
                `annual fuel reduction amount' means, with respect to 
                any creditable fuel for any taxable year, the excess 
                of--
                            ``(i) the amount of such creditable fuel 
                        used by the taxpayer in the trade or business 
                        of farming during the preceding taxable year, 
                        over
                            ``(ii) the amount of such creditable fuel 
                        used by the taxpayer in the trade or business 
                        of farming during the taxable year for which 
                        credit is being determined.
                    ``(B) Average fuel price.--The term `average fuel 
                price' means, with respect to any creditable fuel for 
                any taxable year, the average price of such fuel during 
                the calendar year preceding the calendar year in which 
                the taxable year begins for the region in which the 
                taxpayer purchased such fuel (as determined by 
                Secretary using data of the Energy Information Agency 
                of the Department of Energy).
            ``(4) Eligible taxpayer.--The term `eligible taxpayer' 
        means, with respect to any taxable year, any taxpayer who--
                    ``(A) was allowed a credit under this section for 
                the preceding taxable year, or
                    ``(B) was not engaged in the trade or business of 
                farming for any preceding taxable year which ended on 
                or after December 31, 2008.
    ``(c) Creditable Fuel.--For purposes of this section, the term 
`creditable fuel' means any fossil fuel and electricity. This section 
shall be applied separately with respect to electricity and with 
respect to each type of fossil fuel.
    ``(d) Termination.--No credit shall be allowed under this section 
for any taxable year beginning after December 31, 2013.''.
    (b) Credit To Be Part of General Business Credit.--Subsection (b) 
of section 38 of such Code is amended by striking ``plus'' at the end 
of paragraph (31), by striking the period at the end of paragraph (32) 
and inserting ``, plus'', and by adding at the end the following new 
paragraph:
            ``(33) the farmer's renewable energy credit determined 
        under section 45Q.''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following new item:

``Sec. 45Q. Farmer's renewable energy credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years ending on or after December 31, 2008.
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