[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 425 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                 S. 425

  To amend the Internal Revenue Code of 1986 to expand the resources 
eligible for the renewable energy credit to kinetic hydropower, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 29, 2007

 Mr. Smith (for himself and Mr. Wyden) 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 expand the resources 
eligible for the renewable energy credit to kinetic hydropower, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. EXPANSION OF RESOURCES ELIGIBLE FOR RENEWABLE ENERGY CREDIT 
              TO KINETIC HYDROPOWER.

    (a) In General.--Section 45(c)(1) of the Internal Revenue Code of 
1986 (defining qualified energy resources) is amended by striking 
``and'' at the end of subparagraph (G), by striking the period at the 
end of subparagraph (H) and inserting ``, and'', and by adding at the 
end the following new subparagraph:
                    ``(I) kinetic hydropower.''.
    (b) Definition of Resources.--Section 45(c) of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(10) Kinetic hydropower.--The term `kinetic hydropower' 
        means any of the following:
                    ``(A) Ocean free flowing water derived from flows 
                from tidal currents, ocean currents, waves, or estuary 
                currents.
                    ``(B) Ocean thermal energy.
                    ``(C) Free flowing water in rivers, lakes, man made 
                channels, or streams.''.
    (c) Facilities.--Section 45(d) of the Internal Revenue Code of 1986 
(relating to qualified facilities) is amended by adding at the end the 
following new paragraph:
            ``(11) Kinetic hydropower facility.--In the case of a 
        facility using kinetic hydropower to produce electricity, the 
        term `qualified facility' means any facility owned by the 
        taxpayer which is originally placed in service after the date 
        of the enactment of this paragraph and before January 1, 2011. 
        Such term shall not include a facility which includes 
        impoundment structures.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.
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