[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1697 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                S. 1697

  To amend the Internal Revenue Code of 1986 to provide a credit for 
            residential biomass fuel property expenditures.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 26, 2007

   Mr. Sununu (for himself, Mr. Gregg, and Mr. Thune) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to provide a credit for 
            residential biomass fuel property expenditures.

    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 Energy Tax Parity Act of 
2007''.

SEC. 2. CREDIT FOR BIOMASS FUEL PROPERTY EXPENDITURES.

    (a) Allowance of Credit.--Subsection (a) of section 25D of the 
Internal Revenue Code of 1986 (relating to allowance of credit), is 
amended--
            (1) by striking ``and'' at the end of paragraph (2),
            (2) by striking the period at the end of paragraph (3) and 
        inserting ``, and'', and
            (3) by adding at the end the following new paragraph:
            ``(4) 30 percent of the qualified biomass fuel property 
        expenditures made by the taxpayer during such year.''.
    (b) Maximum Credit.--Paragraph (1) of section 25D(b) of such Code 
(relating to maximum credit) is amended--
            (1) by striking ``and'' at the end of subparagraph (B),
            (2) by striking the period at the end of subparagraph (C) 
        and inserting ``, and'', and
            (3) by adding at the end the following new subparagraph:
                    ``(D) $2,000 with respect to any qualified biomass 
                fuel property expenditures.''.
    (c) Maximum Expenditures.--Subparagraph (A) of section 25D(e)(4) of 
such Code (relating to maximum expenditures in case of joint occupancy) 
is amended--
            (1) by striking ``and'' at the end of clause (ii),
            (2) by striking the period at the end of clause (iii) and 
        inserting ``, and'', and
            (3) by adding at the end the following new clause:
                            ``(iv) $6,667 in the case of any qualified 
                        biomass fuel property expenditures.''.
    (d) Qualified Biomass Fuel Property Expenditures.--Subsection (d) 
of section 25D of such Code (relating to definitions) is amended by 
adding at the end the following new paragraph:
            ``(4) Qualified biomass fuel property expenditure.--
                    ``(A) In general.--The term `qualified biomass fuel 
                property expenditure' means an expenditure for 
                property--
                            ``(i) which uses the burning of biomass 
                        fuel to heat a dwelling unit located in the 
                        United States and used as a residence by the 
                        taxpayer, or to heat water for use in such a 
                        dwelling unit, and
                            ``(ii) which has a thermal efficiency 
                        rating of at least 75 percent.
                    ``(B) Biomass fuel.--For purposes of this section, 
                the term `biomass fuel' means any plant-derived fuel 
                available on a renewable or recurring basis, including 
                agricultural crops and trees, wood and wood waste and 
                residues (including wood pellets), plants (including 
                aquatic plants), grasses, residues, and fibers.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to expenditures paid or incurred in taxable years beginning after 
December 31, 2007.
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