110 HR 7249 IH: Renewable Power for Agriculture U.S. House of Representatives 2008-10-02 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 2d Session H. R. 7249 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.

1.

Short title

This Act may be cited as the Renewable Power for Agriculture Incentive Program Act of 2008.

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:

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.