1.
(a)This Act may be cited
as the New Clean Energy Tax Extenders
Act
.
(b)Except as otherwise expressly provided,
whenever in this Act an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the reference shall
be considered to be made to a section or other provision of the Internal
Revenue Code of 1986.
(c)The table of
contents for this Act is as follows:
Sec. 1. Short title; etc.
TITLE I—Extension of clean energy production
incentives
Sec. 101. Extension and modification of renewable energy
production tax credit.
Sec. 102. Extension and modification of solar energy and fuel
cell investment tax credit.
Sec. 103. Extension and modification of residential energy
efficient property credit.
Sec. 104. Extension and modification of credit for clean
renewable energy bonds.
Sec. 105. Extension of special rule to implement FERC
restructuring policy.
TITLE II—Extension of incentives to improve energy
efficiency
Sec. 201. Extension and modification of credit for energy
efficiency improvements to existing homes.
Sec. 202. Extension and modification of tax credit for energy
efficient new homes.
Sec. 203. Extension and modification of energy efficient
commercial buildings deduction.
Sec. 204. Modification and extension of energy efficient
appliance credit for appliances produced after 2007.
TITLE III—Revenue provisions
Sec. 301. Denial of deduction for major integrated oil
companies for income attributable to domestic production of oil, gas, or
primary products thereof.
Sec. 302. Elimination of the different treatment of foreign oil
and gas extraction income and foreign oil related income for purposes of the
foreign tax credit.
<enum>I</enum><header>Extension of
clean energy production incentives</header>
<section id="idA0A87186B8944FA7BD50588B609F992B"><enum>101.</enum><header>Extension and
modification of renewable energy production tax credit</header>
<subsection id="HDB1BC1D5F4534B9890CD5FB3FDC5B4CD"><enum>(a)</enum><header>Extension of
credit</header><text display-inline="yes-display-inline">Each of the following
provisions of section 45(d) (relating to qualified facilities) is amended by
striking <quote>January 1, 2009</quote> and inserting <quote>January 1,
2013</quote>:</text>
<paragraph id="HA1FC21D2E50D4776B6043BC132CEDEDE"><enum>(1)</enum><text>Paragraph
(1).</text>
</paragraph><paragraph id="H015765F39531443E8F024EA5476C5731"><enum>(2)</enum><text>Clauses (i) and
(ii) of paragraph (2)(A).</text>
</paragraph><paragraph id="H52BE85C8411C4D21BEC774160258C411"><enum>(3)</enum><text>Clauses (i)(I) and
(ii) of paragraph (3)(A).</text>
</paragraph><paragraph id="H466046178D79455C83BBFB931C159D00"><enum>(4)</enum><text>Paragraph
(4).</text>
</paragraph><paragraph id="H71840C7A533F4262AF0432FF54845B13"><enum>(5)</enum><text>Paragraph
(5).</text>
</paragraph><paragraph id="H515AE74519C746B690762BCB6D4EC832"><enum>(6)</enum><text>Paragraph
(6).</text>
</paragraph><paragraph id="HF59AB525B86649769DAFD8B74A2AEC2"><enum>(7)</enum><text>Paragraph
(7).</text>
</paragraph><paragraph id="id71625B13BB904AFB95F53DE3D2ADEDA1"><enum>(8)</enum><text>Paragraph
(8).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAF5CB72DBAE945B300354C20E05F416C"><enum>(9)</enum><text>Subparagraphs (A)
and (B) of paragraph (9).</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HB4CF1AB00EF74640BB83F48EA4A58819"><enum>(b)</enum><header>Production
credit for electricity produced from marine renewables</header>
<paragraph id="H8AEEA1860DF5466AA3F1F4B0D7D531BC"><enum>(1)</enum><header>In
general</header><text>Paragraph (1) of section 45(c) (relating to resources) is
amended by striking <quote>and</quote> at the end of subparagraph (G), by
striking the period at the end of subparagraph (H) and inserting <quote>,
and</quote>, and by adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HF2AFB43401744260AD51E1C2AC3FD7DE" style="OLC">
<subparagraph id="HF5160F52F39A4CADBF00CC79BC26FD5E"><enum>(I)</enum><text display-inline="yes-display-inline">marine and hydrokinetic renewable
energy.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="H449C1D2BFA274191BB88B17F00A88806"><enum>(2)</enum><header>Marine
renewables</header><text>Subsection (c) of section 45 is amended by adding at
the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HFA888FAEE6E2431E9D115B05E206F923" style="OLC">
<paragraph commented="no" id="HC54771A1613C4BCCA3EEAAB7CE6C421F"><enum>(10)</enum><header>Marine and
hydrokinetic renewable energy</header>
<subparagraph id="HD8F37DB75C58437A8479E4D059D64FFF"><enum>(A)</enum><header>In
general</header><text>The term <term>marine and hydrokinetic renewable
energy</term> means energy derived from—</text>
<clause display-inline="no-display-inline" id="H382B3B55DF274E0990245BE19BEE16E3"><enum>(i)</enum><text>waves, tides, and
currents in oceans, estuaries, and tidal areas,</text>
</clause><clause id="HE68273A2B925406C9427F3617EB7D7AF"><enum>(ii)</enum><text>free flowing
water in rivers, lakes, and streams,</text>
</clause><clause id="HBFF801616BB14908AF672DF770488EDF"><enum>(iii)</enum><text>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</text>
</clause><clause id="HA507A7A724994D3A8424E2E4D7008F6D"><enum>(iv)</enum><text>differentials in
ocean temperature (ocean thermal energy conversion).</text>
</clause></subparagraph><subparagraph id="H77F25B87527F45EB9035BBADC345DF54"><enum>(B)</enum><header>Exceptions</header><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HFA40CC241F814F48ABD302B7CCA3595D"><enum>(3)</enum><header>Definition of
facility</header><text>Subsection (d) of section 45 is amended by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HF82181A480AC4662A531194093FCC26E" style="OLC">
<paragraph id="HBB99C60D83904DB49D6B78003E03F848"><enum>(11)</enum><header>Marine and
hydrokinetic renewable energy facilities</header><text display-inline="yes-display-inline">In the case of a facility producing
electricity from marine and hydrokinetic renewable energy, the term
<term>qualified facility</term> means any facility owned by the
taxpayer—</text>
<subparagraph id="HB3A46509FB9E4A06BC5CC516EBAE87A0"><enum>(A)</enum><text display-inline="yes-display-inline">which has a nameplate capacity rating of at
least 150 kilowatts, and</text>
</subparagraph><subparagraph id="HC805938B69A2485F89375B430784DBE9"><enum>(B)</enum><text>which is
originally placed in service on or after the date of the enactment of this
paragraph and before January 1,
2013.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H99580472C5BA4180A7CA9C969D6D81C8"><enum>(4)</enum><header>Credit
rate</header><text>Subparagraph (A) of section 45(b)(4) is amended by striking
<quote>or (9)</quote> and inserting <quote>(9), or (11)</quote>.</text>
</paragraph><paragraph commented="no" id="HEB22692156AA4721ACBD828B429F55DA"><enum>(5)</enum><header>Coordination
with small irrigation power</header><text>Paragraph (5) of section 45(d), as
amended by subsection (a), is amended by striking <quote>January 1,
2010</quote> and inserting <quote>the date of the enactment of paragraph
(11)</quote>.</text>
</paragraph></subsection><subsection commented="no" id="id427610985F52483D8E39E3B6DFD8D226"><enum>(c)</enum><header>Sales of
electricity to regulated public utilities treated as sales to unrelated
persons</header><text>Section 45(e)(4) (relating to related persons) is amended
by adding at the end the following new sentence: <quote>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).</quote>.</text>
</subsection><subsection id="id9F1D1DBD54EE431080B7F0839B685A0F"><enum>(d)</enum><header>Trash facility
clarification</header><text>Paragraph (7) of section 45(d) is amended—</text>
<paragraph id="idAD0F1641F3364981A858B1DC391273C0"><enum>(1)</enum><text>by striking
<quote>facility which burns</quote> and inserting <quote>facility (other than a
facility described in paragraph (6)) which uses</quote>, and</text>
</paragraph><paragraph id="idA07CDF07C332418799FCCCDCAAA36A79"><enum>(2)</enum><text>by striking
<quote><header-in-text level="paragraph" style="OLC">combustion</header-in-text></quote>.</text>
</paragraph></subsection><subsection id="HF97129AE391C4E65B5471F9418D1F31"><enum>(e)</enum><header>Effective
dates</header>
<paragraph commented="no" display-inline="no-display-inline" id="HF7A3B656489F47E196F22B369BB8669B"><enum>(1)</enum><header>Extension</header><text>The
amendments made by subsection (a) shall apply to property originally placed in
service after December 31, 2008.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9025090DB7A440CCAFDB464C01B8B5B"><enum>(2)</enum><header>Modifications</header><text>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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idE35CCBE0B4BB4B82A3F8F90CDB5CE358"><enum>(3)</enum><header>Trash facility
clarification</header><text>The amendments made by subsection (d) shall apply
to electricity produced and sold before, on, or after December 31, 2007.</text>
</paragraph></subsection></section><section id="H269D698EF0B743C7BD54C7C7DCCFC00"><enum>102.</enum><header>Extension and
modification of solar energy and fuel cell investment tax credit</header>
<subsection id="HD6B8692F800C4C708C38B801D5AE4361"><enum>(a)</enum><header>Extension of
credit</header>
<paragraph id="H33F3142BDA5F4EA689588533EAAE1578"><enum>(1)</enum><header>Solar energy
property</header><text>Paragraphs (2)(A)(i)(II) and (3)(A)(ii) of section 48(a)
(relating to energy credit) are each amended by striking <quote>January 1,
2009</quote> and inserting <quote>January 1, 2017</quote>.</text>
</paragraph><paragraph id="HCB3E6DE160864A639151807EB9DD0695"><enum>(2)</enum><header>Fuel cell
property</header><text>Subparagraph (E) of section 48(c)(1) (relating to
qualified fuel cell property) is amended by striking <quote>December 31,
2008</quote> and inserting <quote>January 1, 2017</quote>.</text>
</paragraph><paragraph id="id9FD741F7B6C04104BB85BAF5005CA1DA"><enum>(3)</enum><header>Qualified
microturbine property</header><text>Subparagraph (E) of section 48(c)(2)
(relating to qualified microturbine property) is amended by striking
<quote>December 31, 2008</quote> and inserting <quote>January 1,
2017</quote>.</text>
</paragraph></subsection><subsection id="HCD906D8944D94AE6B3C99141FF1269E8"><enum>(b)</enum><header>Allowance of
energy credit against alternative minimum tax</header><text>Subparagraph (B) of
section 38(c)(4) (relating to specified credits) is amended by striking
<quote>and</quote> at the end of clause (iii), by striking the period at the
end of clause (iv) and inserting <quote>, and</quote>, and by adding at the end
the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="HAAE8DC24A64948CCB036BACC8F5CEC75" style="OLC">
<clause id="HDC98AA51221A4453973C60DE21E3A3C0"><enum>(v)</enum><text>the credit
determined under section 46 to the extent that such credit is attributable to
the energy credit determined under section
48.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id22128F02BA2F4152B0F05F6F255F2689"><enum>(c)</enum><header>Repeal of
dollar per kilowatt limitation for fuel cell property</header>
<paragraph commented="no" display-inline="no-display-inline" id="id9BA819B28A4F479397FFB3A8F22D8F52"><enum>(1)</enum><header>In
general</header><text>Section 48(c)(1) (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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id29C917EF3A854176AE38E7464FFC0466"><enum>(2)</enum><header>Conforming
amendment</header><text>Section 48(a)(1) is amended by striking
<quote>paragraphs (1)(B) and (2)(B) of subsection (c)</quote> and inserting
<quote>subsection (c)(2)(B)</quote>.</text>
</paragraph></subsection><subsection id="H13585CAF81954D18BD470154A7AB2201"><enum>(d)</enum><header>Public electric
utility property taken into account</header>
<paragraph id="HEB072CE0D1814CC9A700F4129200852B"><enum>(1)</enum><header>In
general</header><text>Paragraph (3) of section 48(a) is amended by striking the
second sentence thereof.</text>
</paragraph><paragraph id="H0DB5E2619C07434889807E82929FC3EF"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph id="H0FB44F1F632D4943905CD1B5BA827838"><enum>(A)</enum><text>Paragraph (1) of
section 48(c), as amended by this section, is amended by striking subparagraph
(C) and redesignating subparagraph (D) as subparagraph (C).</text>
</subparagraph><subparagraph id="H9EB51D36616E4024B8222FD60507A7E7"><enum>(B)</enum><text display-inline="yes-display-inline">Paragraph (2) of section 48(c), as amended
by subsection (a)(3), is amended by striking subparagraph (D) and redesignating
subparagraph (E) as subparagraph (D).</text>
</subparagraph></paragraph></subsection><subsection id="HE42B21EED3C646A5946C4D2B1843A47D"><enum>(e)</enum><header>Effective
dates</header>
<paragraph id="H398926E157C148FFBC20A1B65851CE25"><enum>(1)</enum><header>Extension</header><text>The
amendments made by subsection (a) shall take effect on the date of the
enactment of this Act.</text>
</paragraph><paragraph id="HBEA92A36FE9246939BC8E6B200782D9D"><enum>(2)</enum><header>Allowance
against alternative minimum tax</header><text>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.</text>
</paragraph><paragraph id="HB6951B00373E40238EA688BCB084E3B3"><enum>(3)</enum><header>Fuel cell
property and public electric utility property</header><text>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
<external-xref legal-doc="usc" parsable-cite="usc/26/48">section
48(m)</external-xref> 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).</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="HA1D364429CB54725A4DCB445B2E32D46" section-type="subsequent-section"><enum>103.</enum><header>Extension and
modification of residential energy efficient property credit</header>
<subsection id="H9349EB077AA74E2F952F418DFCE80004"><enum>(a)</enum><header>Extension</header><text>Section
25D(g) (relating to termination) is amended by striking <quote>December 31,
2008</quote> and inserting <quote>December 31, 2012</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HE46345B52DFF471495F4DDD33ED42F8"><enum>(b)</enum><header>No dollar
limitation for credit for solar electric property</header>
<paragraph commented="no" display-inline="no-display-inline" id="H938D47C10FEB43F5B3C6D268D4B321AF"><enum>(1)</enum><header>In
general</header><text>Section 25D(b)(1) (relating to maximum credit) is amended
by striking subparagraph (A) and by redesignating subparagraphs (B) and (C) as
subparagraphs (A) and (B), respectively.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA3510519FB1D46FBB2CBF3756CC6277"><enum>(2)</enum><header>Conforming
amendments</header><text>Section 25D(e)(4) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id3BB57B7559424634B0E1A453871AA1DE"><enum>(A)</enum><text>by striking
clause (i) in subparagraph (A),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idFBAD54EB5E6F45A38202461A124147CF"><enum>(B)</enum><text>by redesignating
clauses (ii) and (iii) in subparagraph (A) as clauses (i) and (ii),
respectively, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id51B7F40FCA15456F8B784F6C7AD04737"><enum>(C)</enum><text>by striking
<quote>, (2),</quote> in subparagraph (C).</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="H5304447515B54A94979063AB66B00B2"><enum>(c)</enum><header>Credit allowed
against alternative minimum tax</header>
<paragraph commented="no" id="H53C0979DA9A7412291AAF275F98C1E44"><enum>(1)</enum><header>In
general</header><text>Subsection (c) of section 25D is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H992F54FA14B645E281E0FAFCE5D12B2" style="OLC">
<subsection commented="no" id="HA653FA503321480EBD4C5445D5C2141F"><enum>(c)</enum><header>Limitation based
on amount of tax; carryforward of unused credit</header>
<paragraph commented="no" id="H26D00907A7BB4778BE2769883EEC87C8"><enum>(1)</enum><header>Limitation based
on amount of tax</header><text>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—</text>
<subparagraph commented="no" id="H3EDA6A04899B468D976736ED0377AABB"><enum>(A)</enum><text>the sum of the
regular tax liability (as defined in section 26(b)) plus the tax imposed by
section 55, over</text>
</subparagraph><subparagraph commented="no" id="HEFEC12897D2B41EA9FEDF79583E0FAE7"><enum>(B)</enum><text>the sum of the
credits allowable under this subpart (other than this section) and section 27
for the taxable year.</text>
</subparagraph></paragraph><paragraph commented="no" id="H607683F7FFE446AF8629B93A8EE795E"><enum>(2)</enum><header>Carryforward of
unused credit</header>
<subparagraph commented="no" id="H525736544BE0433EB015FD3F8F2DA2E1"><enum>(A)</enum><header>Rule for years
in which all personal credits allowed against regular and alternative minimum
tax</header><text display-inline="yes-display-inline">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.</text>
</subparagraph><subparagraph commented="no" id="HB1FF32EA728B48DBADA6ECFC38BFC33C"><enum>(B)</enum><header>Rule for other
years</header><text>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.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="H7C7892F923184FFBA825E3EBE484F4E7"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph commented="no" id="HD6DFAD2A82C74CB48424BCE2F3CBB4E7"><enum>(A)</enum><text>Section
23(b)(4)(B) is amended by inserting <quote>and section 25D</quote> after
<quote>this section</quote>.</text>
</subparagraph><subparagraph commented="no" id="HEDF21F2BCA264911913B8D7051F9F267"><enum>(B)</enum><text>Section
24(b)(3)(B) is amended by striking <quote>and 25B</quote> and inserting
<quote>, 25B, and 25D</quote>.</text>
</subparagraph><subparagraph commented="no" id="H53CCB9C433474BD49196972D2CDEE169"><enum>(C)</enum><text>Section 25B(g)(2)
is amended by striking <quote>section 23</quote> and inserting <quote>sections
23 and 25D</quote>.</text>
</subparagraph><subparagraph commented="no" id="HCEB5E0974B6D467CB8B4E8F94C021CB"><enum>(D)</enum><text>Section 26(a)(1) is
amended by striking <quote>and 25B</quote> and inserting <quote>25B, and
25D</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="HC398765C0E594A88892DD06841BFE324"><enum>(d)</enum><header>Effective
date</header>
<paragraph id="H0FDACA8C21B74CA7B0220016D370ED2B"><enum>(1)</enum><header>In
general</header><text>The amendments made by this section shall apply to
taxable years beginning after December 31, 2007.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H30C36D1486184C00A3ED76D8EDB42D29"><enum>(2)</enum><header>Application of
EGTRRA sunset</header><text>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.</text>
</paragraph></subsection></section><section id="id897E40DD26E34F419809BC91D602E513"><enum>104.</enum><header>Extension and
modification of credit for clean renewable energy bonds</header>
<subsection id="idC80BC8CD573844BBAC4FAEEB4F84D28D"><enum>(a)</enum><header>Extension</header><text>Section
54(m) (relating to termination) is amended by striking <quote>December 31,
2008</quote> and inserting <quote>December 31, 2012</quote>.</text>
</subsection><subsection id="id2F1A66D4AF0249B7AF392AA48E9F46E5"><enum>(b)</enum><header>Increase in
national limitation</header><text>Section 54(f) (relating to limitation on
amount of bonds designated) is amended—</text>
<paragraph id="idA0967D3089294989909117A745AE5A32"><enum>(1)</enum><text>by inserting
<quote>, and for the period beginning after the date of the enactment of the
<short-title>New Clean Energy Tax Extenders
Act</short-title> and ending before January 1, 2013, $400,000,000</quote> after
<quote>$1,200,000,000</quote> in paragraph (1),</text>
</paragraph><paragraph id="id2FEFF51A2DB04A43B6C48193BAFEE51C"><enum>(2)</enum><text>by striking
<quote>$750,000,000 of the</quote> in paragraph (2) and inserting
<quote>$750,000,000 of the $1,200,000,000</quote>, and</text>
</paragraph><paragraph id="id5D0EBB0EAC41479A8D09EA8310246F35"><enum>(3)</enum><text>by striking
<quote>bodies</quote> in paragraph (2) and inserting <quote>bodies, and except
that the Secretary may not allocate more than <fraction>1/3</fraction> of the
$400,000,000 national clean renewable energy bond limitation to finance
qualified projects of qualified borrowers which are public power providers nor
more than <fraction>1/3</fraction> of such limitation to finance qualified
projects of qualified borrowers which are mutual or cooperative electric
companies described in section 501(c)(12) or section
1381(a)(2)(C)</quote>.</text>
</paragraph></subsection><subsection id="idCBCDDCB08F914D03AFF188D972C030D7"><enum>(c)</enum><header>Public power
providers defined</header><text>Section 54(j) is amended—</text>
<paragraph id="idA4FAD517C3694EECB0FB37830558E0A4"><enum>(1)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id507F8C27738E4CF4B94864664BB4A2CC" style="OLC">
<paragraph id="HE61501BFE2C348C5BACADEE973FA160"><enum>(6)</enum><header>Public power
provider</header><text display-inline="yes-display-inline">The term
<term>public power provider</term> means a State utility with a service
obligation, as such terms are defined in section 217 of the Federal Power Act
(as in effect on the date of the enactment of this
paragraph).</text>
</paragraph><after-quoted-block>,
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="id6C3482E804684ABBA67531AF000253DF"><enum>(2)</enum><text>by inserting
<quote><header-in-text level="subsection" style="OLC">; public power
provider</header-in-text></quote> before the period at the end of the
heading.</text>
</paragraph></subsection><subsection id="idE819398EB23D4316912EB47071E66AAD"><enum>(d)</enum><header>Technical
amendment</header><text>The third sentence of section 54(e)(2) is amended by
striking <quote>subsection (l)(6)</quote> and inserting <quote>subsection
(l)(5)</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id61A42F8789904B319F3649BC047540C8"><enum>(e)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to bonds
issued after the date of the enactment of this Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id844FC0C189CF4BCC8FF889F6384D0951"><enum>105.</enum><header>Extension of
special rule to implement FERC restructuring policy</header>
<subsection commented="no" display-inline="no-display-inline" id="idC32C64822FBD42478E623B8FB58474C6"><enum>(a)</enum><header>Qualifying
electric transmission transaction</header>
<paragraph commented="no" display-inline="no-display-inline" id="id9D371D9F8FFD472BA93528A8A4B8CC0D"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 451(i)(3)
(defining qualifying electric transmission transaction) is amended by striking
<quote>January 1, 2008</quote> and inserting <quote>January 1,
2012</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id30F012BCE448459E97B47AC0DB7714A6"><enum>(2)</enum><header>Effective
date</header><text>The amendment made by this subsection shall apply to
transactions after December 31, 2007.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idC74A4F48430641829076307CD7DA1990"><enum>(b)</enum><header>Independent
transmission company</header>
<paragraph commented="no" display-inline="no-display-inline" id="id29B694C420CB481D90E7CC5E331BF19E"><enum>(1)</enum><header>In
general</header><text>Section 451(i)(4)(B)(ii) (defining independent
transmission company) is amended by striking <quote>December 31, 2007</quote>
and inserting <quote>the date which is 5 years after the date of such
transaction</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id64D214742E0F49A3A7D90A130F1685FE"><enum>(2)</enum><header>Effective
date</header><text>The amendment made by this subsection shall take effect as
if included in the amendments made by section 909 of the American Jobs Creation
Act of 2004.</text>
</paragraph></subsection></section><enum>II</enum><header>Extension of
incentives to improve energy efficiency</header>
<section display-inline="no-display-inline" id="H4E4E73F0AC694ACFB033902D6B2B9D00" section-type="subsequent-section"><enum>201.</enum><header>Extension and
modification of credit for energy efficiency improvements to existing
homes</header>
<subsection commented="no" id="HE1311AF729B443509923399000941F78"><enum>(a)</enum><header>Extension of
credit</header><text display-inline="yes-display-inline">Section 25C(g)
(relating to termination) is amended by striking <quote>December 31,
2007</quote> and inserting <quote>December 31, 2011</quote>.</text>
</subsection><subsection id="HCCD43C36D3924ACCB3C733A06316F351"><enum>(b)</enum><header>Qualified
biomass fuel property</header>
<paragraph id="H8411EFDEE2B64C13A622B4D6474B0205"><enum>(1)</enum><header>In
general</header><text>Section 25C(d)(3) is amended—</text>
<subparagraph id="H8A719566C3F24D3CB51C5E3C8875F1F0"><enum>(A)</enum><text>by striking
<quote>and</quote> at the end of subparagraph (D),</text>
</subparagraph><subparagraph id="H7E636F6DFDD443F3A4854FA3DD897470"><enum>(B)</enum><text>by striking the
period at the end of subparagraph (E) and inserting <quote>, and</quote>,
and</text>
</subparagraph><subparagraph id="H38D94E65D3FF485EA514EB6314520095"><enum>(C)</enum><text>by adding at the
end the following new subparagraph:</text>
<quoted-block act-name="" id="HD259A568896E47AEB6E031BAF3A20013" style="OLC">
<subparagraph id="HE89CE77FF7E24398A5D63955A772CCFC"><enum>(F)</enum><text>a stove 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 which has a thermal efficiency rating of at least 75
percent.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HBCEA0C4751B94391A3C9E5B95CF2CE7"><enum>(2)</enum><header>Biomass
fuel</header><text>Section 25C(d) (relating to residential energy property
expenditures) is amended by adding at the end the following new
paragraph:</text>
<quoted-block act-name="" id="HCE430B59D2084920A3A900807B8CFDDF" style="OLC">
<paragraph id="HBB58614A2CE849DB917D9ED6C8AAA549"><enum>(6)</enum><header>Biomass
fuel</header><text>The term <term>biomass fuel</term> 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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id36693B2E816E46F18FF93BD6A09501E2"><enum>(c)</enum><header>Modifications
of standards for energy-efficient building property</header>
<paragraph id="id59117E46EE894ED3A93B8D680C16AED0"><enum>(1)</enum><header>Electric heat
pumps</header><text>Subparagraph (B) of section 25C(d)(3) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="id544CE208014042369B3376285D32D422" style="OLC">
<subparagraph id="idA2D4D89188594254886EEAD088CD45CD"><enum>(A)</enum><text>an electric heat
pump which achieves the highest efficiency tier established by the Consortium
for Energy Efficiency, as in effect on January 1,
2008.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id64A4368ACD8C4538B76AEA1B1E2C696B"><enum>(2)</enum><header>Central air
conditioners</header><text>Section 25C(d)(3)(D) is amended by striking
<quote>2006</quote> and inserting <quote>2008</quote>.</text>
</paragraph><paragraph id="id96A91A27AC37420DA676CE53222DFB4E"><enum>(3)</enum><header>Water
Heaters</header><text>Subparagraph (E) of section 25C(d) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="id24AD95E040B84F28A28B552401F71A30" style="OLC">
<subparagraph id="id21A8C092955245ED95FB53FA2E9ED100"><enum>(E)</enum><text>a natural gas,
propane, or oil water heater which has either an energy factor of at least 0.80
or a thermal efficiency of at least 90
percent.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="idDD919FE3E2964246A168C6BFB825E30C"><enum>(4)</enum><header>Oil furnaces
and hot water boilers</header><text>Paragraph (4) of section 25C(d) is amended
to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id34E72E892DED4780BEBBEBD16C12C395" style="OLC">
<paragraph id="id8BC9B1311D8746339EB582584D6A1C5C"><enum>(4)</enum><header>Qualified
natural gas, propane, and oil furnaces and hot water boilers</header>
<subparagraph id="id2902454B444C4E109A6BA2C4D1433213"><enum>(A)</enum><header>Qualified
natural gas furnace</header><text>The term <term>qualified natural gas
furnace</term> means any natural gas furnace which achieves an annual fuel
utilization efficiency rate of not less than 95.</text>
</subparagraph><subparagraph id="id8283C147023249659A4F27037EA01332"><enum>(B)</enum><header>Qualified
natural gas hot water boiler</header><text>The term <term>qualified natural gas
hot water boiler</term> means any natural gas hot water boiler which achieves
an annual fuel utilization efficiency rate of not less than 90.</text>
</subparagraph><subparagraph id="idC140B36EE62D44638B4BEA50F1E9FAE6"><enum>(C)</enum><header>Qualified
propane furnace</header><text>The term <term>qualified propane furnace</term>
means any propane furnace which achieves an annual fuel utilization efficiency
rate of not less than 95.</text>
</subparagraph><subparagraph id="id5F760AC7ABC14D2D86B78F7781B42DE4"><enum>(D)</enum><header>Qualified
propane hot water boiler</header><text>The term <term>qualified propane hot
water boiler</term> means any propane hot water boiler which achieves an annual
fuel utilization efficiency rate of not less than 90.</text>
</subparagraph><subparagraph id="id371EC18D14464A4C84793C0D544454D3"><enum>(E)</enum><header>Qualified oil
furnaces</header><text>The term <term>qualified oil furnace</term> means any
oil furnace which achieves an annual fuel utilization efficiency rate of not
less than 90.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id4CA127DA857541C0B6F76B011FC7EB72"><enum>(F)</enum><header>Qualified oil
hot water boiler</header><text>The term <term>qualified oil hot water
boiler</term> means any oil hot water boiler which achieves an annual fuel
utilization efficiency rate of not less than
90.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H5FCD82BD62324C6E9BB96F8F6F07F9E6"><enum>(d)</enum><header>Effective
date</header><text>The amendments made this section shall apply to expenditures
made after December 31, 2007.</text>
</subsection></section><section commented="no" id="id939B5E3353194403A0AB36F1B2B5950B"><enum>202.</enum><header>Extension and
modification of tax credit for energy efficient new homes</header>
<subsection commented="no" id="id00001A7EA14A4399B3D865B1B2C03851"><enum>(a)</enum><header>Extension of
credit</header><text display-inline="yes-display-inline">Subsection (g) of
section 45L (relating to termination) is amended by striking <quote>December
31, 2008</quote> and inserting <quote>December 31, 2012</quote>.</text>
</subsection><subsection id="id54723ACF06DE4FA689B8EC8117EA5F5F"><enum>(b)</enum><header>Allowance for
contractor's personal residence</header><text>Subparagraph (B) of section
45L(a)(1) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idF3A856C58ED047C189F92545542D73F2" style="OLC">
<subparagraph id="id73613528F4224F87B3D30BAD28D205DA"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="idE938313191744063816592E2EE4D7297"><enum>(i)</enum><text>acquired by a person
from such eligible contractor and used by any person as a residence during the
taxable year, or</text>
</clause><clause id="id38270ACD2F3A4E0784ABA6AD36995CE3" indent="up1"><enum>(ii)</enum><text>used by such eligible contractor
as a residence during the taxable
year.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id4F4D815D24DC413D880CF69E85C64E2A"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to homes
acquired after December 31, 2008.</text>
</subsection></section><section commented="no" id="idAA7E21529A594F4081043DA43D502A11"><enum>203.</enum><header>Extension and
modification of energy efficient commercial buildings deduction</header>
<subsection commented="no" id="id481CB54D3F294E028352C3BE95ECA684"><enum>(a)</enum><header>Extension</header><text>Section
179D(h) (relating to termination) is amended by striking <quote>December 31,
2008</quote> and inserting <quote>December 31, 2012</quote>.</text>
</subsection><subsection commented="no" id="id68F59D01A735403EA2E7FB824F5756E0"><enum>(b)</enum><header>Adjustment of
maximum deduction amount</header>
<paragraph commented="no" id="idD754A8F09DC04C189C3A277FB5EF938D"><enum>(1)</enum><header>In
general</header><text>Subparagraph (A) of section 179D(b)(1) (relating to
maximum amount of deduction) is amended by striking <quote>$1.80</quote> and
inserting <quote>$2.25</quote>.</text>
</paragraph><paragraph id="id80A95924C98F4813B0FFB7A55746155D"><enum>(2)</enum><header>Partial
allowance</header><text>Paragraph (1) of section 179D(d) is amended—</text>
<subparagraph id="id9378B974A80E40F8A948DFB8DB9AEA00"><enum>(A)</enum><text>by striking
<quote>$.60</quote> and inserting <quote>$0.75</quote>, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id7E00A6AB838F450297F5E4DFF760EB81"><enum>(B)</enum><text>by striking
<quote>$1.80</quote> and inserting <quote>$2.25</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id69C6E19A1CA34425A3B1DBAAEBA3E1DA"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to property
placed in service after the date of the enactment of this Act.</text>
</subsection></section><section display-inline="no-display-inline" id="HDFE751ABDF994511B735159DD5AA70C0" section-type="subsequent-section"><enum>204.</enum><header>Modification and
extension of energy efficient appliance credit for appliances produced after
2007</header>
<subsection id="H8668A78BED85453C9BA5490008296380"><enum>(a)</enum><header>In
general</header><text>Subsection (b) of section 45M (relating to applicable
amount) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H6CAF20EB7489483DAD1C3D70FCE3E305" style="OLC">
<subsection id="H0D36D5BC4C1748649E832CF06CC15843"><enum>(b)</enum><header>Applicable
amount</header><text>For purposes of subsection (a)—</text>
<paragraph id="H71B773AD1FE14A9AA8E80887FB855EAF"><enum>(1)</enum><header>Dishwashers</header><text>The
applicable amount is—</text>
<subparagraph id="H1FA05AD3DA714EBDB9C76309E0F626B7"><enum>(A)</enum><text>$45 in the case of
a dishwasher which is manufactured in calendar year 2008 or 2009 and which uses
no more than 324 kilowatt hours per year and 5.8 gallons per cycle, and</text>
</subparagraph><subparagraph id="H53B2F95E74184C939C462E05188443CB"><enum>(B)</enum><text>$75 in the case of
a dishwasher which is manufactured in calendar year 2008, 2009, or 2010 and
which uses no more than 307 kilowatt hours per year and 5.0 gallons per cycle
(5.5 gallons per cycle for dishwashers designed for greater than 12 place
settings).</text>
</subparagraph></paragraph><paragraph id="H3E6CB6C6BC8F4CACB45FC07B7F00407F"><enum>(2)</enum><header>Clothes
washers</header><text>The applicable amount is—</text>
<subparagraph id="H67C62CD8131141E9987984277B3FAA53"><enum>(A)</enum><text>$75 in the case of
a residential top-loading clothes washer manufactured in calendar year 2008
which meets or exceeds a 1.72 modified energy factor and does not exceed a 8.0
water consumption factor,</text>
</subparagraph><subparagraph id="HD9FCE4EEBB1E45D0AA028B09865D9BA7"><enum>(B)</enum><text>$125 in the case
of a residential top-loading clothes washer manufactured in calendar year 2008
or 2009 which meets or exceeds a 1.8 modified energy factor and does not exceed
a 7.5 water consumption factor,</text>
</subparagraph><subparagraph id="H45297A51D21C433F80E786BA7181B474"><enum>(C)</enum><text>$150 in the case
of a residential or commercial clothes washer manufactured in calendar year
2008, 2009, or 2010 which meets or exceeds 2.0 modified energy factor and does
not exceed a 6.0 water consumption factor, and</text>
</subparagraph><subparagraph id="H29C4114B024149AC991890D4B6821CAE"><enum>(D)</enum><text>$250 in the case
of a residential or commercial clothes washer manufactured in calendar year
2008, 2009, or 2010 which meets or exceeds 2.2 modified energy factor and does
not exceed a 4.5 water consumption factor.</text>
</subparagraph></paragraph><paragraph id="H1A02980D41254D5698A61999ACFC9F2F"><enum>(3)</enum><header>Refrigerators</header><text>The
applicable amount is—</text>
<subparagraph id="H85E3F47F90544A4DB62BCF7B083E81F2"><enum>(A)</enum><text>$50 in the case of
a refrigerator which is manufactured in calendar year 2008, and consumes at
least 20 percent but not more than 22.9 percent less kilowatt hours per year
than the 2001 energy conservation standards,</text>
</subparagraph><subparagraph id="H3137E5EBEE1C421E9038AF74F37662E"><enum>(B)</enum><text>$75 in the case of
a refrigerator which is manufactured in calendar year 2008 or 2009, and
consumes at least 23 percent but no more than 24.9 percent less kilowatt hours
per year than the 2001 energy conservation standards,</text>
</subparagraph><subparagraph id="HB6105C96A9C542D2896BBF1E9E7EA13F"><enum>(C)</enum><text>$100 in the case
of a refrigerator which is manufactured in calendar year 2008, 2009, or 2010,
and consumes at least 25 percent but not more than 29.9 percent less kilowatt
hours per year than the 2001 energy conservation standards, and</text>
</subparagraph><subparagraph id="H8ACA1828E0AB423F8806E3A842907DB"><enum>(D)</enum><text>$200 in the case of
a refrigerator manufactured in calendar year 2008, 2009, or 2010 and which
consumes at least 30 percent less energy than the 2001 energy conservation
standards.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H5542BADAAF054FD786C5F6791223822E"><enum>(b)</enum><header>Eligible
production</header>
<paragraph id="HD64B4341DF7242E4A9335357CA5921AC"><enum>(1)</enum><header>Similar
treatment for all appliances</header><text>Subsection (c) of section 45M
(relating to eligible production) is amended—</text>
<subparagraph id="HFA9519AF9B3F4FD29B3EFFF7E01CEB44"><enum>(A)</enum><text>by striking
paragraph (2),</text>
</subparagraph><subparagraph id="H07FA5F82AE2348C49553DB6051F8BC8"><enum>(B)</enum><text>by striking
<quote>(1) <header-in-text level="paragraph" style="OLC">In
general</header-in-text></quote> and all that follows through <quote>the
eligible</quote> and inserting <quote>The eligible</quote>, and</text>
</subparagraph><subparagraph id="H12434A20BF9948CE9F9B7B5E50C9F84"><enum>(C)</enum><text>by moving the text
of such subsection in line with the subsection heading and redesignating
subparagraphs (A) and (B) as paragraphs (1) and (2), respectively.</text>
</subparagraph></paragraph><paragraph id="H50E4EC2730A14C7181AD52ADB59D6C03"><enum>(2)</enum><header>Modification of
base period</header><text>Paragraph (2) of section 45M(c), as amended by
paragraph (1) of this section, is amended by striking <quote>3-calendar
year</quote> and inserting <quote>2-calendar year</quote>.</text>
</paragraph></subsection><subsection id="H130C7D2D1BD9446100AEBF00FB98E558"><enum>(c)</enum><header>Types of energy
efficient appliances</header><text>Subsection (d) of section 45M (defining
types of energy efficient appliances) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H5EBFAB2EABEC4A8397CF9401AAF3C477" style="OLC">
<subsection id="H87BCB9A5931C4F34A486A84F5703B2A2"><enum>(d)</enum><header>Types of energy
efficient appliance</header><text display-inline="yes-display-inline">For
purposes of this section, the types of energy efficient appliances are—</text>
<paragraph id="H0638FB66088849E3897207CDFB21FD04"><enum>(1)</enum><text>dishwashers
described in subsection (b)(1),</text>
</paragraph><paragraph id="H95AEA4C87AD14158B88890651D246694"><enum>(2)</enum><text>clothes washers
described in subsection (b)(2), and</text>
</paragraph><paragraph id="H7795DEFFF5B74A38A0DBFBE000007D34"><enum>(3)</enum><text>refrigerators
described in subsection
(b)(3).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H0CDCEDFF3B1B4199AD5BF3FF688F79C2"><enum>(d)</enum><header>Aggregate credit
amount allowed</header>
<paragraph id="H2D36C9367AD247DCA1F536D79F3C69ED"><enum>(1)</enum><header>Increase in
limit</header><text>Paragraph (1) of section 45M(e) (relating to aggregate
credit amount allowed) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H8D18A14B8FED4067009694C7D6B0097" style="OLC">
<paragraph id="HAB44B6ED41AE429BBF7EAA8B8F479423"><enum>(1)</enum><header>Aggregate credit
amount allowed</header><text display-inline="yes-display-inline">The aggregate
amount of credit allowed under subsection (a) with respect to a taxpayer for
any taxable year shall not exceed $75,000,000 reduced by the amount of the
credit allowed under subsection (a) to the taxpayer (or any predecessor) for
all prior taxable years beginning after December 31,
2007.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H7007A40913054256B434CEA3832CDD7B"><enum>(2)</enum><header>Exception for
certain refrigerator and clothes washers</header><text>Paragraph (2) of section
45M(e) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HC0F284CACDBE47F2A50006BB49B2D1A2" style="OLC">
<paragraph id="H6A3FD5CC2F7847509B46FFAC74A19CD7"><enum>(2)</enum><header>Amount allowed
for certain refrigerators and clothes washers</header><text display-inline="yes-display-inline">Refrigerators described in subsection
(b)(3)(D) and clothes washers described in subsection (b)(2)(D) shall not be
taken into account under paragraph
(1).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HF847F34654D14A1EAE4475D45091BA05"><enum>(e)</enum><header>Qualified energy
efficient appliances</header>
<paragraph id="HE604C091C15B4FD78587E483005F0203"><enum>(1)</enum><header>In
general</header><text>Paragraph (1) of section 45M(f) (defining qualified
energy efficient appliance) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HF95585582BE847069427B8CD7F48C0F9" style="OLC">
<paragraph id="HBA6339B03E5D4E679DC38FB8A00019BC"><enum>(1)</enum><header>Qualified energy
efficient appliance</header><text display-inline="yes-display-inline">The term
<term>qualified energy efficient appliance</term> means—</text>
<subparagraph id="H3D5B8FC5768F481D8BCBCE00F98B009E"><enum>(A)</enum><text display-inline="yes-display-inline">any dishwasher described in subsection
(b)(1),</text>
</subparagraph><subparagraph id="H7CA629012AF74B7F91251D95007CE5B8"><enum>(B)</enum><text>any clothes washer
described in subsection (b)(2), and</text>
</subparagraph><subparagraph id="H2630530465BB427FA39655CE51454DB"><enum>(C)</enum><text>any refrigerator
described in subsection
(b)(3).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HDDFCB52435574B7D97B5BD73CCD00F2"><enum>(2)</enum><header>Clothes
washer</header><text>Section 45M(f)(3) (defining clothes washer) is amended by
inserting <quote>commercial</quote> before <quote>residential</quote> the
second place it appears.</text>
</paragraph><paragraph id="H2698E84BAA4A4B24A0EC134701C94708"><enum>(3)</enum><header>Top-loading
clothes washer</header><text>Subsection (f) of section 45M (relating to
definitions) is amended by redesignating paragraphs (4), (5), (6), and (7) as
paragraphs (5), (6), (7), and (8), respectively, and by inserting after
paragraph (3) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H605D54813A77429EA6A273E03964B34" style="OLC">
<paragraph id="HE3A7675A57D646E1AFC4C6B0A4060700"><enum>(4)</enum><header>Top-loading
clothes washer</header><text display-inline="yes-display-inline">The term
<quote>top-loading clothes washer</quote> means a clothes washer which has the
clothes container compartment access located on the top of the machine and
which operates on a vertical
axis.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HAE7CCC35820A43D884513244F4B6A6BD"><enum>(4)</enum><header>Replacement of
energy factor</header><text>Section 45M(f)(6), as redesignated by paragraph
(3), is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HF41F7B8F5613499EB0AF4EC3EF007573" style="OLC">
<paragraph id="H77C55FAF2AFE40E28B16CA17D0B8254B"><enum>(6)</enum><header>Modified energy
factor</header><text display-inline="yes-display-inline">The term
<term>modified energy factor</term> means the modified energy factor
established by the Department of Energy for compliance with the Federal energy
conservation
standard.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H15188DE32F914C158FA186D330727321"><enum>(5)</enum><header>Gallons per
cycle; water consumption factor</header><text>Section 45M(f) (relating to
definitions), as amended by paragraph (3), is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="HBE15AD7ACA8744BAB809CE66EF847670" style="OLC">
<paragraph id="H3BACA5DF23794C96BC1D76E883ABFBB2"><enum>(9)</enum><header>Gallons per
cycle</header><text display-inline="yes-display-inline">The term <term>gallons
per cycle</term> means, with respect to a dishwasher, the amount of water,
expressed in gallons, required to complete a normal cycle of a
dishwasher.</text>
</paragraph><paragraph id="H951E82F0A69649C694B95183D5C3555D"><enum>(10)</enum><header>Water
consumption factor</header><text display-inline="yes-display-inline">The term
<term>water consumption factor</term> means, with respect to a clothes washer,
the quotient of the total weighted per-cycle water consumption divided by the
cubic foot (or liter) capacity of the clothes
washer.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H34F0CDB6C6914FEFA8C6BE81006D99D9"><enum>(f)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to appliances produced after December 31, 2007.</text>
</subsection></section><enum>III</enum><header>Revenue
provisions</header>
<section display-inline="no-display-inline" id="idC278BE5EE60A42758E454454A181A6F6" section-type="subsequent-section"><enum>301.</enum><header>Denial of deduction
for major integrated oil companies for income attributable to domestic
production of oil, gas, or primary products thereof</header>
<subsection display-inline="no-display-inline" id="HA2088D56E1BB433BB8A10B7C3246524"><enum>(a)</enum><header>In
general</header><text>Subparagraph (B) of section 199(c)(4) of the Internal
Revenue Code of 1986 (relating to exceptions) is amended by striking
<quote>or</quote> at the end of clause (ii), by striking the period at the end
of clause (iii) and inserting <quote>, or</quote>, and by inserting after
clause (iii) the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="H7A6478FD1C77406A00883B7DF81B55B6" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="H29FA6AE0FCBF4E1D0021D2A8A03CD3FC"><enum>(iv)</enum><text display-inline="yes-display-inline">in the case of any major integrated oil
company (as defined in section 167(h)(5)(B)), the production, refining,
processing, transportation, or distribution of oil, gas, or any primary product
thereof during any taxable year described in section
167(h)(5)(B).</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H0ED0210FB2B54E8DA344AD0085FB3122"><enum>(b)</enum><header>Primary
product</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/199">Section 199(c)(4)(B)</external-xref> of such Code is
amended by adding at the end the following flush sentence:</text>
<quoted-block display-inline="no-display-inline" id="H0062B44561494F05AE4F1E5BDA3DF78D" style="OLC">
<quoted-block-continuation-text quoted-block-continuation-text-level="subparagraph">For
purposes of clause (iv), the term <term>primary product</term> has the same
meaning as when used in section 927(a)(2)(C), as in effect before its
repeal.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H0F263FAC24A64E2EB8B2BA004C8173B9"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2007.</text>
</subsection></section><section id="id302617B3734947D287A55D5D157845A4"><enum>302.</enum><header>Elimination of
the different treatment of foreign oil and gas extraction income and foreign
oil related income for purposes of the foreign tax credit</header>
<subsection id="id2D47AC437BEA462A826E8DD948F7E236"><enum>(a)</enum><header>In
general</header><text>Subsections (a) and (b) of section 907 (relating to
special rules in case of foreign oil and gas income) are amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="id26EDA2C30D434C75BB022D56DAA033B4" style="OLC">
<subsection id="id13E8D4FD593A49B7BCF1F270C79B1057"><enum>(a)</enum><header>Reduction in
amount allowed as foreign tax under section 901</header><text>In applying
section 901, the amount of any foreign oil and gas taxes paid or accrued (or
deemed to have been paid) during the taxable year which would (but for this
subsection) be taken into account for purposes of section 901 shall be reduced
by the amount (if any) by which the amount of such taxes exceeds the product
of—</text>
<paragraph id="id1DD4E3A98223495BBF22F63D090DEFC0"><enum>(1)</enum><text>the amount of the
combined foreign oil and gas income for the taxable year,</text>
</paragraph><paragraph id="idB676C08B5B5748459147E704A48F91E1"><enum>(2)</enum><text>multiplied
by—</text>
<subparagraph id="idF37FB48262A64B4C917248BE7E85FCE2"><enum>(A)</enum><text>in the case of a
corporation, the percentage which is equal to the highest rate of tax specified
under section 11(b), or</text>
</subparagraph><subparagraph id="id52936FE776924451B473A24BCA44E4C5"><enum>(B)</enum><text>in the case of an
individual, a fraction the numerator of which is the tax against which the
credit under section 901(a) is taken and the denominator of which is the
taxpayer's entire taxable income.</text>
</subparagraph></paragraph></subsection><subsection id="id8264C579D15441D29F14AA82DDFA751C"><enum>(b)</enum><header>Combined
foreign oil and gas income; foreign oil and gas taxes</header><text>For
purposes of this section—</text>
<paragraph id="id1C179501D680401D9D52B0243998889C"><enum>(1)</enum><header>Combined
foreign oil and gas income</header><text>The term <term>combined foreign oil
and gas income</term> means, with respect to any taxable year, the sum
of—</text>
<subparagraph id="id48B256E24E6C4A64A943C8EEB3931B8F"><enum>(A)</enum><text>foreign oil and
gas extraction income, and</text>
</subparagraph><subparagraph id="id0A78B6ADD210461E92CC4EBA915245BB"><enum>(B)</enum><text>foreign oil
related income.</text>
</subparagraph></paragraph><paragraph id="id837EAA44A2334B9A94383017FA632CAE"><enum>(2)</enum><header>Foreign oil and
gas taxes</header><text>The term <term>foreign oil and gas taxes</term> means,
with respect to any taxable year, the sum of—</text>
<subparagraph id="idD99C42F916764917A0067D90B64DA8C9"><enum>(A)</enum><text>oil and gas
extraction taxes, and</text>
</subparagraph><subparagraph id="idA4D1A1136D56407081AA8A63AC348DB2"><enum>(B)</enum><text>any income, war
profits, and excess profits taxes paid or accrued (or deemed to have been paid
or accrued under section 902 or 960) during the taxable year with respect to
foreign oil related income (determined without regard to subsection (c)(4)) or
loss which would be taken into account for purposes of section 901 without
regard to this
section.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id73693604090B4C28AE49B21568013CDD"><enum>(b)</enum><header>Recapture of
foreign oil and gas losses</header><text>Paragraph (4) of section 907(c)
(relating to recapture of foreign oil and gas extraction losses by
recharacterizing later extraction income) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idFC3CB33593AF4B61B0E72F1E155D6D09" style="OLC">
<paragraph id="id571AB78F88E048F2A65D0BF9E1341159"><enum>(4)</enum><header>Recapture of
foreign oil and gas losses by recharacterizing later combined foreign oil and
gas income</header>
<subparagraph id="id5C2F95DAD38A47788A90E27134CC5B40"><enum>(A)</enum><header>In
general</header><text>The combined foreign oil and gas income of a taxpayer for
a taxable year (determined without regard to this paragraph) shall be
reduced—</text>
<clause id="id93B0F4E9FD92407FBD617CFD6474FBD1"><enum>(i)</enum><text>first by the
amount determined under subparagraph (B), and</text>
</clause><clause id="idCADD7F5A83734019B041DF545CD7C08E"><enum>(ii)</enum><text>then by the
amount determined under subparagraph (C).</text>
</clause><continuation-text continuation-text-level="subparagraph">The
aggregate amount of such reductions shall be treated as income (from sources
without the United States) which is not combined foreign oil and gas
income.</continuation-text></subparagraph><subparagraph id="id4EFEF4E6641E4CA498782254234C6521"><enum>(B)</enum><header>Reduction for
pre-2008 foreign oil extraction losses</header><text>The reduction under this
paragraph shall be equal to the lesser of—</text>
<clause id="id5514ADEB4356461698757016203345DA"><enum>(i)</enum><text>the foreign oil
and gas extraction income of the taxpayer for the taxable year (determined
without regard to this paragraph), or</text>
</clause><clause id="idA964F0B8A33244068F72F2C99FD76C02"><enum>(ii)</enum><text>the excess
of—</text>
<subclause id="idE7E5BD62CA96452D9E92BDEEB1AC8AA7"><enum>(I)</enum><text>the aggregate
amount of foreign oil extraction losses for preceding taxable years beginning
after December 31, 1982, and before January 1, 2008, over</text>
</subclause><subclause id="id90C401AD165D4E068FCE11F4CF1CAC23"><enum>(II)</enum><text>so much of such
aggregate amount as was recharacterized under this paragraph (as in effect
before and after the date of the enactment of the Energy Advancement and
Investment Act of 2007) for preceding taxable years beginning after December
31, 1982.</text>
</subclause></clause></subparagraph><subparagraph id="id5721D069D3194CA2B0A3A31564DE5C6C"><enum>(C)</enum><header>Reduction for
post-2008 foreign oil and gas losses</header><text>The reduction under this
paragraph shall be equal to the lesser of—</text>
<clause id="idCFAA7FAC76934E49A20DEE7DD744FCF4"><enum>(i)</enum><text>the combined
foreign oil and gas income of the taxpayer for the taxable year (determined
without regard to this paragraph), reduced by an amount equal to the reduction
under subparagraph (A) for the taxable year, or</text>
</clause><clause id="id7CEA24749226435A9ACA88E80BEA01FD"><enum>(ii)</enum><text>the excess
of—</text>
<subclause id="idA09D790E0CB54F4D8D621E34A2655DEB"><enum>(I)</enum><text>the aggregate
amount of foreign oil and gas losses for preceding taxable years beginning
after December 31, 2007, over</text>
</subclause><subclause id="id5F8798227C7B448A914E9B4045DE1EDC"><enum>(II)</enum><text>so much of such
aggregate amount as was recharacterized under this paragraph for preceding
taxable years beginning after December 31, 2007.</text>
</subclause></clause></subparagraph><subparagraph id="id1B28CB638CAC4589A31FC1DF70605CD1"><enum>(D)</enum><header>Foreign oil and
gas loss defined</header>
<clause id="idECCA0979E3E048AB9F09A38AF330A4B3"><enum>(i)</enum><header>In
general</header><text>For purposes of this paragraph, the term <term>foreign
oil and gas loss</term> means the amount by which—</text>
<subclause id="id61DD04CD843F4B9AA811D687E947FF71"><enum>(I)</enum><text>the gross income
for the taxable year from sources without the United States and its possessions
(whether or not the taxpayer chooses the benefits of this subpart for such
taxable year) taken into account in determining the combined foreign oil and
gas income for such year, is exceeded by</text>
</subclause><subclause id="id157F87BAD40D4092BB030479AC579861"><enum>(II)</enum><text>the sum of the
deductions properly apportioned or allocated thereto.</text>
</subclause></clause><clause id="id92424400B1644A6D8C8EE0D623CD81FD"><enum>(ii)</enum><header>Net operating
loss deduction not taken into account</header><text>For purposes of clause (i),
the net operating loss deduction allowable for the taxable year under section
172(a) shall not be taken into account.</text>
</clause><clause id="idB94228F297264438AA956A52CB0C207C"><enum>(iii)</enum><header>Expropriation
and casualty losses not taken into account</header><text>For purposes of clause
(i), there shall not be taken into account—</text>
<subclause id="id8660D0CEC79F4FC281FC32EFF1B00726"><enum>(I)</enum><text>any foreign
expropriation loss (as defined in section 172(h) (as in effect on the day
before the date of the enactment of the Revenue Reconciliation Act of 1990))
for the taxable year, or</text>
</subclause><subclause id="idCBD99E76CDED4C2A9D4C80754D55325A"><enum>(II)</enum><text>any loss for the
taxable year which arises from fire, storm, shipwreck, or other casualty, or
from theft,</text>
</subclause><continuation-text continuation-text-level="clause">to the extent
such loss is not compensated for by insurance or otherwise.</continuation-text></clause><clause id="id8089A710A81D43BD8667FF5DEEC4F53D"><enum>(iv)</enum><header>Foreign oil
extraction loss</header><text>For purposes of subparagraph (B)(ii)(I), foreign
oil extraction losses shall be determined under this paragraph as in effect on
the day before the date of the enactment of the Energy Advancement and
Investment Act of
2007.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id9DDFCB9882B4480C94494BDE102704B5"><enum>(c)</enum><header>Carryback and
carryover of disallowed credits</header><text>Section 907(f) (relating to
carryback and carryover of disallowed credits) is amended—</text>
<paragraph id="idDAE9164F6AC94092BE3D2D8922B78EB7"><enum>(1)</enum><text>by striking
<quote>oil and gas extraction taxes</quote> each place it appears and inserting
<quote>foreign oil and gas taxes</quote>, and</text>
</paragraph><paragraph id="idB749AFE886AD410786F877EB447F2D49"><enum>(2)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id477246DA29C6412C81F3AA2E16178358" style="OLC">
<paragraph id="id8358214C6849487DA3DB2228A52B8042"><enum>(4)</enum><header>Transition
rules for pre-2008 and 2008 disallowed credits</header>
<subparagraph id="id79048D6051C146A2A7E3FAB60B5D1897"><enum>(A)</enum><header>Pre-2008
credits</header><text>In the case of any unused credit year beginning before
January 1, 2008, this subsection shall be applied to any unused oil and gas
extraction taxes carried from such unused credit year to a year beginning after
December 31, 2007, by substituting <quote>oil and gas extraction taxes</quote>
for <quote>foreign oil and gas taxes</quote> each place it appears in
paragraphs (1), (2), and (3), and by substituting <quote>foreign oil and gas
extraction income</quote> for <quote>foreign oil and gas income</quote> in
applying subsection (a) for each relevant year.</text>
</subparagraph><subparagraph id="id7ED7539FB1FA4D55B3D9E489B9EB5E10"><enum>(B)</enum><header>2008
credits</header><text>In the case of any unused credit year beginning in 2008,
the amendments made to this subsection by the Energy Advancement and Investment
Act of 2007 shall be treated as being in effect for any preceding year
beginning before January 1, 2008, solely for purposes of determining how much
of the unused foreign oil and gas taxes for such unused credit year may be
deemed paid or accrued in such preceding
year.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id078E7E9A792741EF9D33617813C2748D"><enum>(d)</enum><header>Conforming
amendment</header><text>Section 6501(i) is amended by striking <quote>oil and
gas extraction taxes</quote> and inserting <quote>foreign oil and gas
taxes</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDE9D8F37FECF54DEBA293D79320A74CF3"><enum>(e)</enum><header display-inline="yes-display-inline">Effective date</header><text>The amendments
made by this section shall apply to taxable years beginning after December 31,
2007.</text>
</subsection></section>