[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 672 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                 S. 672

   To amend the Internal Revenue Code of 1986 to provide tax-exempt 
  financing for qualified renewable energy facilities, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 16, 2007

Mr. Salazar (for himself and Mr. Smith) 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 tax-exempt 
  financing for qualified renewable energy facilities, 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. SHORT TITLE.

    This Act may be cited as the ``Rural Community Renewable Energy 
Bonds Act''.

SEC. 2. TAX-EXEMPT FINANCING OF QUALIFIED RENEWABLE ENERGY FACILITIES.

    (a) In General.--Subsection (a) of section 142 of the Internal 
Revenue Code of 1986 (relating to exempt facility bond) is amended--
            (1) by striking ``or'' at the end of paragraph (14),
            (2) by striking the period at the end of paragraph (15) and 
        inserting ``, or'', and
            (3) by inserting at the end the following new paragraph:
            ``(16) qualified renewable energy facilities.''.
    (b) Definition.--Section 142 of the Internal Revenue Code of 1986 
is amended by inserting at the end the following new subsection:
    ``(n) Qualified Renewable Energy Facilities.--For purposes of 
subsection (a)(16)--
            ``(1) In general.--The term `qualified renewable energy 
        facility' means any facility--
                    ``(A) described in paragraph (1), (2), (3), (4), 
                (5), (6), or (9) of section 45(d) (relating to 
                facilities using wind, closed-loop biomass, open-loop 
                biomass, geothermal, solar, small irrigation, land fill 
                gas, or qualified hydropower to produce electricity),
                    ``(B) except in the case of a facility described in 
                section 45(d)(5), the nameplate capacity rating of 
                which is not more than 40 megawatts, and
                    ``(C) at least--
                            ``(i) 49 percent of which is owned and 
                        controlled, including unrestricted voting 
                        rights, by 1 or more persons who are residents 
                        of the State in which such facility is located, 
                        and
                            ``(ii) 10 percent of which is owned and 
                        controlled, including unrestricted voting 
                        rights, by 1 or more persons who are residents 
                        of the local area in which such facility is 
                        located.
            ``(2) Determination of ownership.--For purposes of 
        paragraph (1)(C), ownership sufficient to meet the requirement 
        of clause (ii) thereof may be taken into account for purposes 
        of determining if the requirement of clause (i) thereof is met.
            ``(3) Definitions.--For purposes of this subsection--
                    ``(A) Resident.--The term `resident' means--
                            ``(i) in the case of an individual, an 
                        individual whose primary residence is in the 
                        State or local area in which the facility is 
                        located, and
                            ``(ii) in the case of an entity, at least 
                        50 percent of such entity is owned by 
                        individuals who are treated as residents of 
                        such State or local area under clause (i).
                For purposes of clause (ii), section 318 (relating to 
                constructive ownership of stock), as modified by 
                section 382(l)(3)(A), shall apply for purposes of 
                determining ownership of stock in a corporation. 
                Similar principles shall apply for purposes of 
                determining ownership of interests in any other entity.
                    ``(B) Local area.--The term `local area' means, 
                with respect to any facility, an area within the 200-
                mile radius of such facility.''.
    (c) Exemption From Volume Cap.--Paragraph (3) of section 146(g) of 
the Internal Revenue Code of 1986 (exempting certain exempt facility 
bonds from the state volume caps) is amended by striking ``or (15)'' 
and inserting ``(15), or (16)''.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to bonds issued on or after the date of the 
enactment of this Act.
                                 <all>