II 110th CONGRESS 1st Session S. 2520 IN THE SENATE OF THE UNITED STATES December 19, 2007 Mr. Johnson (for himself, Mr. Smith, and Mr. Dorgan) 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 allow Indian tribal governments to transfer the credit for electricity produced from renewable resources.

1.

Transfer by Indian tribal governments of credit for electricity produced from renewable resources

(a)

In general

Paragraph (3) of section 45(e) of the Internal Revenue Code of 1986 (relating to production attributable to the taxpayer) is amended to read as follows: (3)

Production attributable to the taxpayer

(A)

In general

In the case of a facility in which more than 1 person has an ownership interest, except to the extent provided in regulations prescribed by the Secretary, production from the facility shall be allocated among such persons in proportion to their respective ownership interests in the gross sales from such facility. (B)

Special rule for Indian tribal governments

In the case of a facility described in subparagraph (A) in which an Indian tribal government (within the meaning of section 7871) has an ownership interest in the gross sales from such facility, such government may assign to any other person who has such an ownership interest in such facility any portion of the production from the facility that would (but for this subparagraph) be allocated to such government. Any such assignment may be revoked only with the consent of the Secretary and shall be made at such time and in such manner as the Secretary may provide. . (b)

Effective date

The amendment made by this section shall apply to electricity produced and sold after December 31, 2006.