1.Short
title; table of contents
(a)This Act may be cited
as the Strategic Energy Fund Act of
2007
.
(b)The table of
contents for this Act is as follows:
Sec. 1. Short title; table of
contents.
TITLE I—Strategic Energy Fund
Subtitle A—Establishment of Strategic Energy Fund
Sec. 101. Strategic Energy Fund.
Subtitle B—Incentives To accelerate biofuels
availability
Sec. 111. Modification of alternative fuel vehicle refueling
property credit.
Sec. 112. Extension of biodiesel income and excise tax
credits.
Sec. 113. Extension of ethanol income and excise tax
credits.
Sec. 114. Small ethanol producer credit expanded for producers
of sucrose and cellulosic ethanol.
Subtitle C—Incentives To deploy fuel-efficient
vehicles
Sec. 121. Expansion of number of new qualified hybrid and
advanced lean burn technology vehicles eligible for full alternative motor
vehicle tax credit.
Sec. 122. Advanced technology motor vehicles manufacturing
credit.
Subtitle D—Incentives for clean power
Sec. 131. Extension and modification of production tax credit
for electricity produced from certain renewable resources.
Sec. 132. Extension and modification of investment tax credit
with respect to solar energy property and qualified fuel cell
property.
Sec. 133. Credit for wind energy systems.
Sec. 134. Extension and expansion of qualifying advanced coal
project credit.
Sec. 135. Geological disposal of global warming
pollutants.
Subtitle E—Incentives for energy efficient
buildings
Sec. 141. Extension of energy efficient commercial buildings
deduction.
Sec. 142. Extension and expansion of new energy efficient home
credit.
Subtitle F—Clean energy research
Sec. 151. Assistant Secretary for Advanced Energy Research,
Technology Development, and Deployment.
TITLE II—Realigning oil company incentives
Subtitle A—Excess oil profits
Sec. 201. Temporary oil profit fee.
Subtitle B—Energy fairness for America
Sec. 211. Elimination of deduction for intangible drilling and
development costs for major oil companies.
Sec. 212. Extension of election to expense certain
refineries.
Sec. 213. Elimination of amortization of geological and
geophysical expenditures for major oil companies.
Sec. 214. Modifications of foreign tax credit rules applicable
to major oil companies which are dual capacity taxpayers.
Sec. 215. Denial of deduction for income attributable to
domestic production of oil, natural gas, or primary products
thereof.
Sec. 216. Elimination of enhanced oil recovery credit for major
oil companies.
Subtitle C—Protection and retention of value of publicly-owned
energy resources
Sec. 221. Price thresholds for royalty suspension
provisions.
Sec. 222. Clarification of authority to impose price thresholds
for certain lease sales.
Sec. 223. Eligibility for new leases and the transfer of
leases; conservation of resources fees.
Sec. 224. Repeal of certain taxpayer subsidized royalty relief
for the oil and gas industry.
Subtitle D—Reduction in incentives to guzzle gas
Sec. 231. Reducing incentives to guzzle gas.
<enum>I</enum><header>Strategic Energy
Fund</header>
<subtitle id="id7A9C4778C1794AD49864954EB3EB721C"><enum>A</enum><header>Establishment of
Strategic Energy Fund</header>
<section id="idD4207BCFAB1D4A0F98F6C2EF73B0D9C2"><enum>101.</enum><header>Strategic
Energy Fund</header>
<subsection id="IDB8C02F2FDD4C4B54B7774F4271D73999"><enum>(a)</enum><header>In
general</header><text>Subchapter A of chapter 98 of the Internal Revenue Code
of 1986 (relating to trust fund code) is amended by adding at the end the
following new section:</text>
<quoted-block id="IDECCBBEE3A5484185B82F58526AD5ECB5">
<section id="IDE07E2B452AAF4246AC5DED3AC077A5E0"><enum>9511.</enum><header>Strategic
Energy Fund</header>
<subsection id="ID391707734B344D58B371ED0895B39225"><enum>(a)</enum><header>Establishment</header><text>There
is established in the Treasury of the United States a trust fund to be known as
the <quote>Strategic Energy Fund</quote>, consisting of such amounts as may be
appropriated or credited to such Fund as provided in this section or section
9602(b).</text>
</subsection><subsection id="IDBB7BA138018145CFB580FF7091700479"><enum>(b)</enum><header>Transfers to
Fund</header>
<paragraph id="id8F911067E6A7433E9B25BD3CFCE77F80"><enum>(1)</enum><header>In
general</header><text>There are hereby appropriated to the Strategic Energy
Fund amounts equivalent to—</text>
<subparagraph id="id8683896666704CCF967ED9DAF506C291"><enum>(A)</enum><text>the fees received
in the Treasury under section 5896, and</text>
</subparagraph><subparagraph id="id0AE2DBCEFD32458190BE88A9D78EA7D8"><enum>(B)</enum><text>the revenues
received in the Treasury resulting from the implementation of sections 221,
222, and 223 of the <short-title>Strategic Energy Fund Act
of 2007</short-title>.</text>
</subparagraph></paragraph><paragraph id="ID4FC461B502974E4DB9C993B36DB62D95"><enum>(2)</enum><header>Limitation</header><text>The
aggregate amount appropriated under this subsection shall not exceed—</text>
<subparagraph id="id59BCC2A6C7254D79A109B765F79A1145"><enum>(A)</enum><text>for purposes
described in subsection (c)(1)(A)—</text>
<clause id="id7DDE76023D30400CB6962E3EE789A5D0"><enum>(i)</enum><text>$1,000,000,000
during fiscal year 2008, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id13620E38EAD444FFB720AAFCAE5B636F"><enum>(ii)</enum><text>$2,000,000,000
during each of fiscal years 2009 through 2012,</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id3ECE5358F5D24E03BE2C2880FF7243C5"><enum>(B)</enum><text>for purposes
described in subsection (c)(1)(B), a total of $3,500,000,000 for the fiscal
year period 2008 through 2017, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id06E3ACE5189A475288D8599AB1C6FB06"><enum>(C)</enum><text>for purposes
described in subsection (c)(1)(C), $2,500,000,000.</text>
</subparagraph></paragraph></subsection><subsection id="idBBE3838D25E14E5684A666D451FC14A0"><enum>(c)</enum><header>Expenditures</header>
<paragraph id="id645A35CD549E4C4384EFC62AF35EBC62"><enum>(1)</enum><header>In
general</header><text>Amounts in the Strategic Energy Fund shall be available,
without further appropriation, to carry out—</text>
<subparagraph id="id7B74CD44370E44D3A4B8A5AF432B994C"><enum>(A)</enum><text>the purposes
authorized under section 151 of the <short-title>Strategic
Energy Fund Act of 2007</short-title>,</text>
</subparagraph><subparagraph id="id0AC3ABBFFD30487CBD5447E1E29C1C5B"><enum>(B)</enum><text>projects under
title XVII of the Energy Policy Act of 2005 that have a design capacity to
produce, in the aggregate, 1,000,000,000 gallons of cellulosic biomass ethanol,
without regard to section 1510(l) of the Energy Policy Act of 2005 (42 U.S.C.
16501(l)), and</text>
</subparagraph><subparagraph id="id3CCBC5A3E32B43CC9639FD2BA8E2B4CD"><enum>(C)</enum><text>the grants under
section 701 of the Clean Air Act.</text>
</subparagraph></paragraph><paragraph id="idBF58F1C716C844A1B46009CA8243CFEE"><enum>(2)</enum><header>Unexpended
funds</header><text>Any funds that have not been expended by September 30,
2017, shall be credited back to the general fund as miscellaneous tax
receipts.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID6F30AB65B9B941AD9A4B201211896D01"><enum>(b)</enum><header>Clerical
amendment</header><text>The table of sections for such subchapter is amended by
adding at the end the following new item:</text>
<quoted-block id="IDB6A4F8E9229841CB9DA21B1DBB8D7130" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 9511. Strategic Energy
Fund.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID7EE518C6E37E413A9077A10CC1D5F814"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on the
date of the enactment of this Act.</text>
</subsection></section></subtitle><subtitle id="id7FC324A8D18A42208B59E1E8977C003E"><enum>B</enum><header>Incentives To
accelerate biofuels availability</header>
<section id="id8E309C0EAE2C4009B583E0E3E890179A"><enum>111.</enum><header>Modification
of alternative fuel vehicle refueling property credit</header>
<subsection id="idD1F8F4AF17F94A19BD7E5FB617D3E260"><enum>(a)</enum><header>Increase in
credit amount</header><text>Section 30C of the Internal Revenue Code of 1986
(relating to alternative fuel vehicle refueling property credit) is
amended—</text>
<paragraph id="id99369AE9E6DD4CFD82CDAE6CF882A6E3"><enum>(1)</enum><text>by striking
<quote>30 percent</quote> in subsection (a) and inserting <quote>50
percent</quote>, and</text>
</paragraph><paragraph id="id79A3BD699AB647B18E9F58884F7A8642"><enum>(2)</enum><text>by striking
<quote>$30,000</quote> in subsection (b)(1) and inserting
<quote>$50,000</quote>.</text>
</paragraph></subsection><subsection id="idF59DBBA8461146A99E748CB4534D6427"><enum>(b)</enum><header>Credit allowed
for electric drive transportation property</header><text>Paragraph (1) of
section 30C(c) of the Internal Revenue Code of 1986 (relating to qualified
alternative fuel vehicle refueling property) is amended by striking <quote>,
but only with respect to any fuel</quote> and inserting <quote>, except that in
the case of property described in paragraph (3)(A) thereof, only with respect
to fuels</quote>.</text>
</subsection><subsection id="idF7E861EA66CB4AA291BF8F9419F374C6"><enum>(c)</enum><header>Extension of
credit</header><text>Subsection (g) section 30C of the Internal Revenue Code of
1986 (relating to termination) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idC3538485AC414988853184F219331376" style="OLC">
<subsection id="id840C65A83B734766A5F3E02F7B8E2687"><enum>(g)</enum><header>Termination of
availability of credit</header><text>This section shall not apply to property
placed in service after the earlier of December 31, 2015, or the date after
which more than 20,000 alternative refueling properties have been installed
through use of this
credit.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idCC8375E03A5B4B6AA5CC8C99A76E7E74"><enum>(d)</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, in taxable years
ending after such date.</text>
</subsection></section><section id="ID296424ecac1e4b6baca8131189f1bd89"><enum>112.</enum><header>Extension of
biodiesel income and excise tax credits</header>
<subsection id="ID142e206aa6b340d19c023707d0e9f831"><enum>(a)</enum><header>In
general</header><text>Sections 40A(g), 6426(c)(6), and 6427(e)(5)(B) of the
Internal Revenue Code of 1986 are each amended by striking <quote>December 31,
2008</quote> and inserting <quote>December 31, 2015</quote>.</text>
</subsection><subsection id="IDc61b416d7f6a4a8b93ea316e0e8c6fbd"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on
January 1, 2009.</text>
</subsection></section><section id="idF57CED1F7D7A4EB6A5E11648873F742B"><enum>113.</enum><header>Extension of
ethanol income and excise tax credits</header>
<subsection id="idBCA1573D5D1C4C479F6A464AEB67218F"><enum>(a)</enum><header>In
general</header><text>Sections 40(e)(1)(A), 6426(b)(5), and 6427(e)(5)(A) of
the Internal Revenue Code of 1986 are each amended by striking <quote>December
31, 2010</quote> and inserting <quote>December 31, 2012</quote>.</text>
</subsection><subsection id="idEBBCE4BFFF8A4561A627E2C4246F34D9"><enum>(b)</enum><header>Conforming
amendment</header><text>Section 40(e)(1)(B) of the Internal Revenue Code of
1986 is amended by striking <quote>January 1, 2011</quote> and inserting
<quote>January 1, 2013</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id5F61F7F4678F4B16BC28DCF19FB4894B"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on
January 1, 2011.</text>
</subsection></section><section id="IDA4BBA634B27D4F9FA971D83B8B63F0FB"><enum>114.</enum><header>Small ethanol
producer credit expanded for producers of sucrose and cellulosic
ethanol</header>
<subsection id="ID487C061F8C564C8ABB01B7BAFFEE6051"><enum>(a)</enum><header>In
general</header><text>Subparagraph (C) of section 40(b)(4) of the Internal
Revenue Code of 1986 (relating to small ethanol producer credit) is amended by
inserting <quote>(30,000,000 gallons for any sucrose or cellulosic ethanol
producer)</quote> after <quote>15,000,000 gallons</quote>.</text>
</subsection><subsection id="IDF0894F8D305C41AB8DD76C91E36019C3"><enum>(b)</enum><header>Sucrose or
cellulosic ethanol producer</header><text>Section 40(b)(4) of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
subparagraph:</text>
<quoted-block id="ID526EDFD9342D4E3E9E02900A9FDD41AC" style="OLC">
<subparagraph id="ID3D0211510D6B486C8DEB91919CE2F131"><enum>(E)</enum><header>Sucrose or
cellulosic ethanol producer</header>
<clause id="IDAC373EC1F1364D7AABCE72FA27737C7F"><enum>(i)</enum><header>In
general</header><text>For purposes of this paragraph, the term <term>sucrose or
cellulosic ethanol producer</term> means a producer of ethanol using sucrose
feedstock or a producer of cellulosic biomass ethanol (as defined in section
168(l)(3)).</text>
</clause><clause id="ID457A64129EA44AA2851F6034270D0E81"><enum>(ii)</enum><header>Sucrose
feedstock</header><text>For purposes of clause (i), the term <term>sucrose
feedstock</term> means any raw sugar, refined sugar, or sugar equivalents
(including juice and extract). Such term does not include any molasses, beet
thick juice, or other similar products as determined by the
Secretary.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDF0F8AEB22CCA421BA3BC2BC2ECE75A2D"><enum>(c)</enum><header>Conforming
amendments</header>
<paragraph id="ID1CDA504B905846AE890CBE8588D3818C"><enum>(1)</enum><text>Section 40(g)(2)
of the Internal Revenue Code of 1986 is amended by striking <quote>15,000,000
gallon limitation</quote> and inserting <quote>15,000,000 and 30,000,000 gallon
limitations</quote>.</text>
</paragraph><paragraph id="IDAE8800EBBDC84302BC9C4BF241B597EE"><enum>(2)</enum><text>Section
40(g)(5)(B) of such Code is amended by striking <quote>15,000,000
gallons</quote> and inserting <quote>the gallon limitation under subsection
(b)(4)(C)</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID3D7B59EC754E4C5B8DE904F5F02E1FAD"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after the date of the enactment of this Act.</text>
</subsection></section></subtitle><subtitle id="idCC6AE83ED8104FFA88CF4EFDA4E4A52E"><enum>C</enum><header>Incentives To
deploy fuel-efficient vehicles</header>
<section id="ID9f81fdc47b924215a1531eac9bffdfde"><enum>121.</enum><header>Expansion of
number of new qualified hybrid and advanced lean burn technology vehicles
eligible for full alternative motor vehicle tax credit</header>
<subsection id="idCDC75030872448A1BE013C2708645CBF"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Paragraph (2) of
section 30B(f) of the Internal Revenue Code of 1986 (relating to phaseout) is
amended by striking <quote>60,000</quote> and inserting
<quote>250,000</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDe39ea9f6b6b443538c478a1d24e501a2"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall take effect as if
included in the amendments made by section 1341(a) of the Energy Policy Act of
2005.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id4A64B1C2BDE3422D9D7F07A116A7817A" section-type="subsequent-section"><enum>122.</enum><header display-inline="yes-display-inline">Advanced technology motor vehicles
manufacturing credit</header>
<subsection commented="no" display-inline="no-display-inline" id="id57EA78A8F0EA4C06B883A32BB0E8854F"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subpart B of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 (relating to foreign tax credit,
etc.) is amended by adding at the end the following new section:</text>
<quoted-block display-inline="no-display-inline" id="idF0EDFEA863014241B3D08971A94EF0A8" style="OLC">
<section commented="no" display-inline="no-display-inline" id="id5B9526345505471BA74E7A69F060919B" section-type="subsequent-section"><enum>30D.</enum><header display-inline="yes-display-inline">Advanced technology motor vehicles
manufacturing credit</header>
<subsection commented="no" display-inline="no-display-inline" id="id8EFC0E12F3104279AC745B215E84148B"><enum>(a)</enum><header display-inline="yes-display-inline">Credit
allowed</header><text display-inline="yes-display-inline">There shall be
allowed as a credit against the tax imposed by this chapter for the taxable
year an amount equal to 35 percent of the qualified investment of an eligible
taxpayer for such taxable year.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id9F2884CAF70B4FE0B290E8F0F0A24697"><enum>(b)</enum><header display-inline="yes-display-inline">Qualified investment</header><text display-inline="yes-display-inline">For purposes of this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id145F359417964945B3EA62B010EBE5EA"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>qualified investment</term>
means, with respect to any taxable year, the sum of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id56A10ED40ACA4FC4975880C7B1379347"><enum>(A)</enum><text display-inline="yes-display-inline">the costs paid or incurred by the eligible
taxpayer during such taxable year—</text>
<clause commented="no" display-inline="no-display-inline" id="id05C7EDB1DBD040729121AF70BC947BCB"><enum>(i)</enum><text display-inline="yes-display-inline">to re-equip, expand, or establish any
manufacturing facility in the United States of the eligible taxpayer to produce
advanced technology motor vehicles or to produce eligible components,
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id62966285D2404427867CFBB2D890FABF"><enum>(ii)</enum><text display-inline="yes-display-inline">for qualified research (as defined in
section 41(d)) related to advanced technology motor vehicles and eligible
components performed in the United States, and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id5CF200681A2D422A91551C6F57BF66FE"><enum>(B)</enum><text display-inline="yes-display-inline">qualified engineering integration costs
performed in the United States.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id58B4DE494A7E4B0190069E545D754321"><enum>(2)</enum><header display-inline="yes-display-inline">Attribution rules</header><text display-inline="yes-display-inline">For purposes of paragraph (1)(A)(i), in the
case of a manufacturing facility of the eligible taxpayer which produces both
advanced technology motor vehicles and other motor vehicles, or eligible
components and other components, only the amount paid or incurred for the
production of advanced technology motor vehicles and eligible components shall
be taken into account.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idCEA45B3ED55D4F12970B3CEAC0AA5657"><enum>(c)</enum><header display-inline="yes-display-inline">Eligible taxpayer</header><text display-inline="yes-display-inline">For purposes of this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id4D392050440542B489975A81DB00B597"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>eligible taxpayer</term>
means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID8aae5c99a3914fddbc439d5b73d17bc7"><enum>(A)</enum><text display-inline="yes-display-inline">any motor vehicle manufacturer if more than
50 percent of its gross receipts for the taxable year is derived from the
manufacture of motor vehicles or any component parts of such vehicles,
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDc1aeca5390f249cc991f7dc5455ad8d9"><enum>(B)</enum><text display-inline="yes-display-inline">any motor vehicle component parts
manufacturer if more than 20 percent of its gross receipts for the taxable year
is derived from the manufacture of any component parts of motor
vehicles.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDa3d9f057a1c14b3293de3ceb5522def9"><enum>(2)</enum><header display-inline="yes-display-inline">Motor vehicle manufacturer</header><text display-inline="yes-display-inline">The term <term>motor vehicle
manufacturer</term> means any taxpayer who manufacturers motor vehicles.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID8b77143fdf764453a4eefa89c05e87c2"><enum>(3)</enum><header display-inline="yes-display-inline">Motor vehicle component parts
manufacturer</header><text display-inline="yes-display-inline">The term
<term>motor vehicle component parts manufacturer</term> means any taxpayer who
manufactures motor vehicle component parts, but is not a motor vehicle
manufacturer.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id92E9A699F4E34992A42924345EFC535E"><enum>(d)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idDB3A56B4D1E94747A8A44133A6E93F54"><enum>(1)</enum><header display-inline="yes-display-inline">Advanced technology motor
vehicle</header><text display-inline="yes-display-inline">The term
<term>advanced technology motor vehicle</term> means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idC15CADA47A9A4E38AF8D4C8EBB1E82CA"><enum>(A)</enum><text display-inline="yes-display-inline">any new qualified fuel cell motor vehicle
(as defined in section 30B(b)(3));</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id016B40A87628472F9710AF0924B6C211"><enum>(B)</enum><text display-inline="yes-display-inline">any new advanced lean burn technology motor
vehicle (as defined in section 30B(c)(3));</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idCE067E5632B447F5838D7C46D603D291"><enum>(C)</enum><text display-inline="yes-display-inline">any new qualified hybrid motor vehicle (as
defined in section 30B(d)(3)(A) and determined without regard to any gross
vehicle weight rating);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id28492B3E0EC744999E1A11E1CFD2B433"><enum>(D)</enum><text display-inline="yes-display-inline">any new qualified alternative motor fuel
vehicle (as defined in section 30B(e)(4));</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idB78C96C71D854671B0121083ABFB3426"><enum>(E)</enum><text display-inline="yes-display-inline">any plug-in hybrid electric vehicle;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id79EA66E5B345489FBF539E99DA07C6A5"><enum>(F)</enum><text display-inline="yes-display-inline">any electric vehicle.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idF94E4D9FFA2445E4BCECF7E45E3E133E"><enum>(2)</enum><header display-inline="yes-display-inline">Eligible components</header><text display-inline="yes-display-inline">The term <term>eligible component</term>
means any component inherent to any advanced technology motor vehicle but not
inherent to a motor vehicle which is not an advanced technology motor vehicle,
including—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id6625ED4573E049DD929EADB4EE8B8C74"><enum>(A)</enum><text display-inline="yes-display-inline">with respect to any gasoline or
diesel-electric new qualified hybrid motor vehicle, any—</text>
<clause commented="no" display-inline="no-display-inline" id="idF7FE6F3A4DEF4D4F915561EEE4E5F34C"><enum>(i)</enum><text display-inline="yes-display-inline">electric motor or generator,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id268AE1DBEA68476B8DCC3090CF17F8C1"><enum>(ii)</enum><text display-inline="yes-display-inline">power split device,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idC14BF31C30E74EC6B19DD835F52E3A9F"><enum>(iii)</enum><text display-inline="yes-display-inline">power control unit,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id87B063D033144E27BE3B1706D9380AB1"><enum>(iv)</enum><text display-inline="yes-display-inline">power controls,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idCC7F3508880A4FD1AE3087305D6F3ACB"><enum>(v)</enum><text display-inline="yes-display-inline">integrated starter generator, or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id3CC0D96A5FAD4B66BD9B26D78941DCE0"><enum>(vi)</enum><text display-inline="yes-display-inline">battery,</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idDA3A1C5F9DF14A329E3CD69E2881A8A0"><enum>(B)</enum><text display-inline="yes-display-inline">with respect to any hydraulic new qualified
hybrid motor vehicle, any—</text>
<clause commented="no" display-inline="no-display-inline" id="id93E6012F396B4E0B92B0D7A131DE12E7"><enum>(i)</enum><text display-inline="yes-display-inline">accumulator or other energy storage
device,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idE4543595B4B9449FBE6FA4C41316D010"><enum>(ii)</enum><text display-inline="yes-display-inline">hydraulic pump, or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id0362DC572131440895147A3277F929F3"><enum>(iii)</enum><text display-inline="yes-display-inline">hydraulic pump-motor assembly,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idC4118F172533443E8FDC37BA1ED28CD4"><enum>(iv)</enum><text display-inline="yes-display-inline">power control unit, or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id6808D1122EDC4198AFBFABC460EA1963"><enum>(v)</enum><text display-inline="yes-display-inline">power controls,</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC6F6B349C24E4A05B33F24377BF66CBD"><enum>(C)</enum><text display-inline="yes-display-inline">with respect to any new advanced lean burn
technology motor vehicle, any—</text>
<clause commented="no" display-inline="no-display-inline" id="id0F4BBA5A3A0F42AD838A6E101BAB6605"><enum>(i)</enum><text display-inline="yes-display-inline">diesel engine,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id19FFB9F1BCAA4CFEBA615CEAA2516EB9"><enum>(ii)</enum><text display-inline="yes-display-inline">turbocharger,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id4FA1264353F94F8C8B531A2CE7416E6E"><enum>(iii)</enum><text display-inline="yes-display-inline">fuel injection system, or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id5F89792B47984E5A9220F9489A4E051D"><enum>(iv)</enum><text display-inline="yes-display-inline">after-treatment system, such as a particle
filter or NO<subscript>X</subscript> absorber, and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC114EB0C408945C8A5DF2E936EFBCC6F"><enum>(D)</enum><text display-inline="yes-display-inline">with respect to any advanced technology
motor vehicle, any other component submitted for approval by the
Secretary.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idFAE23B89A41B4A89AE64998B38ADF0C3"><enum>(3)</enum><header display-inline="yes-display-inline">Motor vehicle</header><text display-inline="yes-display-inline">The term <term>motor vehicle</term> has the
meaning given such term by section 30(c)(2).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id48AF7072C6284FC4BF5F8A4E126D156A"><enum>(4)</enum><header display-inline="yes-display-inline">Plug-in hybrid electric vehicle</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id32FCAAD67BB446948809B5B4F84DE8E9"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>plug-in hybrid electric
vehicle</term> means a light-duty, medium-duty, or heavy-duty on-road or
nonroad vehicle that is propelled by any combination of—</text>
<clause commented="no" display-inline="no-display-inline" id="id8AFA6F4AA3EC40F499C32B72998B0D3E"><enum>(i)</enum><text display-inline="yes-display-inline">an electric motor and on-board,
rechargeable energy storage system capable of operating the vehicle in
intermittent or continuous all-electric mode and which is rechargeable using an
off-board source of electricity, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id4BCAA04D931F41E7BBC6C89AB7206411"><enum>(ii)</enum><text display-inline="yes-display-inline">an internal combustion engine or heat
engine using any combustible fuel.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id5C1FC474B4B64F1EA40163D73FCE6352"><enum>(B)</enum><header display-inline="yes-display-inline">Nonroad vehicle</header><text display-inline="yes-display-inline">The term <term>nonroad vehicle</term> means
a vehicle powered by a nonroad engine, as that term is defined in section 216
of the Clean Air Act (42 U.S.C. 7550).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id94E7C466D4774E99AB748CE6F865B01C"><enum>(5)</enum><header display-inline="yes-display-inline">Qualified engineering integration
costs</header><text display-inline="yes-display-inline">For purposes of
subsection (b)(1)(B), the term <term>qualified engineering integration
costs</term> means, with respect to any advanced technology motor vehicle,
costs incurred prior to the market introduction of such motor vehicle for
engineering tasks related to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idD142606E94F049AB945FB5D9E50843BB"><enum>(A)</enum><text display-inline="yes-display-inline">establishing functional, structural, and
performance requirements for components and subsystems to meet overall vehicle
objectives for a specific application,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF9A13AC733D7465DA92AA9E1FADB29D5"><enum>(B)</enum><text display-inline="yes-display-inline">designing interfaces for components and
subsystems with mating systems within a specific vehicle application,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id7B23B3B1C7BA47428064EAEF15CEAEF0"><enum>(C)</enum><text display-inline="yes-display-inline">designing cost effective, efficient, and
reliable manufacturing processes to produce components and subsystems for a
specific vehicle application, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id72BF26CFCCC8453A853116571565EE68"><enum>(D)</enum><text display-inline="yes-display-inline">validating functionality and performance of
components and subsystems for a specific vehicle application.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id6A226565342C412AB420FCBE8338FD07"><enum>(e)</enum><header display-inline="yes-display-inline">Limitation based on amount of tax</header>
<paragraph commented="no" display-inline="no-display-inline" id="idB74A6480B57E485185D5901D1946F42A"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The credit allowed under subsection (a) for
any taxable year shall not exceed the sum of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id519F9D346E8D498D96DCC770F2BEDD74"><enum>(A)</enum><text display-inline="yes-display-inline">the taxpayer's regular tax liability (as
defined in section 26(b)) for the taxable year, plus</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idB4AE66DF7E1F4BE3A56F6B261FE4BFD3"><enum>(B)</enum><text display-inline="yes-display-inline">the tax imposed under section 55 for the
taxable year.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id792B7BB8905A458B9308BD4F612D7F13"><enum>(2)</enum><header display-inline="yes-display-inline">Carryover of unused credit amounts</header>
<subparagraph commented="no" display-inline="no-display-inline" id="idC5AE34B2ABC246989ED704291148331C"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">If the credit allowable under subsection
(a) for a taxable year exceeds the limitation under paragraph (1) for such
taxable year, such excess shall be allowed—</text>
<clause commented="no" display-inline="no-display-inline" id="id338A94E012A14E898AFA222B909EE4E1"><enum>(i)</enum><text display-inline="yes-display-inline">as a credit carryback to each of the 13
taxable years preceding such year, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id7D2EB9D5CA964BCDAF2DE13D814A80C1"><enum>(ii)</enum><text display-inline="yes-display-inline">as a credit carryforward to each of the 20
taxable years following such year.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id27BA064CE7114A76B4FFD26C79F17190"><enum>(B)</enum><header display-inline="yes-display-inline">Amount carried to each year</header><text display-inline="yes-display-inline">For purposes of this paragraph, rules
similar to the rules of section 39(a)(2) shall apply.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idD9289879218142209017BCA9D305E515"><enum>(f)</enum><header display-inline="yes-display-inline">Special rules</header>
<paragraph commented="no" display-inline="no-display-inline" id="idD4F6574979C6484A8E575662795F77DD"><enum>(1)</enum><header display-inline="yes-display-inline">Reduction in basis</header><text display-inline="yes-display-inline">For purposes of this subtitle, if a credit
is allowed under this section for any expenditure with respect to any property,
the increase in the basis of such property which would (but for this paragraph)
result from such expenditure shall be reduced by the amount of the credit so
allowed.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idDB4630B8DF5546578364E6F6B3BB98FB"><enum>(2)</enum><header display-inline="yes-display-inline">Investments and property outside the united
states</header><text display-inline="yes-display-inline">No credit shall be
allowed under subsection (a) with respect to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idFEBC919B77F043D49E88A734FB24EA4B"><enum>(A)</enum><text display-inline="yes-display-inline">any manufacturing facility which is located
outside the United States, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id7D2BE5EBB4B4453D9D84E620FCCD506A"><enum>(B)</enum><text display-inline="yes-display-inline">any engineering integration or research and
development conducted outside the United States.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA73637A9C8FB434E96A64FFFD6B5B95C"><enum>(3)</enum><header display-inline="yes-display-inline">Aggregation of expenditures;
allocations</header><text display-inline="yes-display-inline">For purposes of
this section, rules similar to the rules of paragraphs (1) and (2) of section
41(f) shall apply.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idC8C7BA60093C45129DD16BCA1EAB7A2B"><enum>(4)</enum><header display-inline="yes-display-inline">Recapture</header><text display-inline="yes-display-inline">The Secretary shall, by regulation, provide
for recapturing the benefit of any credit allowable under subsection (a) with
respect to any manufacturing facility which ceases to produce advanced
technology motor vehicles or eligible components.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id22ACBBE057DF4277A6E9375DF3F1997A"><enum>(5)</enum><header display-inline="yes-display-inline">Public statement</header>
<subparagraph commented="no" display-inline="no-display-inline" id="idE875B44617334D499DE9345083A04D89"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">No credit shall be allowed under subsection
(a) for any taxable year unless the eligible taxpayer makes publicly available
a statement describing the activities of the eligible taxpayer for which the
credit is allowed and the public benefits of such activities, including the
estimated amount of any reduction in national oil consumption in future years
as a result of such activities.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idCEA6CD426D5F4FB78464C66D22D7662A"><enum>(B)</enum><header display-inline="yes-display-inline">Time for publication</header><text display-inline="yes-display-inline">The statement required under subparagraph
(A) shall be made available not later than 90 days after the end of the taxable
year for which the credit under subsection (a) is allowed and shall be in such
form as the Secretary shall prescribe.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1BB8B5F74F7846C5A8112D8203519BE9"><enum>(6)</enum><header display-inline="yes-display-inline">No double benefit</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id014D916DCFBA4CBE8333E7970ADA970C"><enum>(A)</enum><header display-inline="yes-display-inline">Coordination with other deductions and
credits</header><text display-inline="yes-display-inline">Except as provided in
subparagraph (B), the amount of any deduction or other credit allowable under
this chapter for any cost taken into account in determining the amount of the
credit under subsection (a) shall be reduced by the amount of such credit
attributable to such cost.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id1D7607072CAA47E18EA014BE85712938"><enum>(B)</enum><header display-inline="yes-display-inline">Research and development costs</header>
<clause commented="no" display-inline="no-display-inline" id="id041BB1BEDCDC4A9A80584F5CAA23D71D"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in clause (ii), any
amount described in subsection (b)(1)(A)(ii) taken into account in determining
the amount of the credit under subsection (a) for any taxable year shall not be
taken into account for purposes of determining the credit under section 41 for
such taxable year.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id91F36BFED22E4E7F8B8D449E5F60781F"><enum>(ii)</enum><header display-inline="yes-display-inline">Costs taken into account in determining
base period research expenses</header><text display-inline="yes-display-inline">Any amounts described in subsection
(b)(1)(A)(ii) taken into account in determining the amount of the credit under
subsection (a) for any taxable year which are qualified research expenses
(within the meaning of section 41(b)) shall be taken into account in
determining base period research expenses for purposes of applying section 41
to subsequent taxable years.</text>
</clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id96D2CC6FC9BD4C50A5FDDBC3E4DC3957"><enum>(g)</enum><header display-inline="yes-display-inline">Election not To take credit</header><text display-inline="yes-display-inline">No credit shall be allowed under subsection
(a) for any property if the taxpayer elects not to have this section apply to
such property.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id9AFFF80478A44D5B88EADACF7E72ADF9"><enum>(h)</enum><header display-inline="yes-display-inline">Regulations</header><text display-inline="yes-display-inline">The Secretary shall prescribe such
regulations as necessary to carry out the provisions of this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id6B40DBE7A2EB4047BB8E23270B628008"><enum>(b)</enum><header display-inline="yes-display-inline">Conforming amendments</header>
<paragraph commented="no" display-inline="no-display-inline" id="id6BE0DEA14F74461BB996050FF6B76B1E"><enum>(1)</enum><text display-inline="yes-display-inline">Section 1016(a) of the Internal Revenue
Code of 1986, as amended by this Act, is amended by striking <quote>and</quote>
at the end of paragraph (37), by striking the period at the end of paragraph
(38) and inserting <quote>, and</quote>, and by adding at the end the following
new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="idB13B87D3CA6241DAA362D6DA596EC4F4" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="idB8B1174A7A714C918A4EF42A26698767"><enum>(39)</enum><text display-inline="yes-display-inline">to the extent provided in section
30D(f)(1).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id65CD6FA42AA54A3F994EAE5EFE63AC2F"><enum>(2)</enum><text display-inline="yes-display-inline">Section 6501(m) of such Code is amended by
inserting <quote>30D(g),</quote> after <quote>30C(e)(5),</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id7990598E0A5A4B51BF026719C8FC9E93"><enum>(3)</enum><text display-inline="yes-display-inline">The table of sections for subpart B of part
IV of subchapter A of chapter 1 of such Code is amended by inserting after the
item relating to section 30C the following new item:</text>
<quoted-block display-inline="no-display-inline" id="idF156B279D17047EA9B257569567613AD" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry bold="off" level="section">Sec. 30D. Advanced technology
motor vehicles manufacturing
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id9D288A4F1FA746E4B69C23DF514F4B35"><enum>(c)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to amounts incurred in taxable years beginning after
December 31, 1993.</text>
</subsection></section></subtitle><subtitle id="id5333E8C086F443C28FEEA87B15B601F8"><enum>D</enum><header>Incentives for
clean power</header>
<section id="idDABEE0F335E94D61B9C420D77ED7D89F"><enum>131.</enum><header>Extension and
modification of production tax credit for electricity produced from certain
renewable resources</header><text display-inline="no-display-inline">Section
45(d) of the Internal Revenue Code of 1986 (relating to qualified facilities)
is amended by striking <quote>January 1, 2009</quote> each place it appears and
inserting <quote>January 1, 2014</quote>.</text>
</section><section id="id248F45580FA741E783BAB49E4C8CF9BA"><enum>132.</enum><header>Extension and
modification of investment tax credit with respect to solar energy property and
qualified fuel cell property</header>
<subsection id="id2A2C0A4C5F1E43DB8C02D2B67A496260"><enum>(a)</enum><header>Solar energy
property</header><text>Paragraphs (2)(A)(i)(II) and (3)(A)(ii) of section 48(a)
of the Internal Revenue Code of 1986 are each amended by striking
<quote>January 1, 2009</quote> and inserting <quote>January 1,
2015</quote>.</text>
</subsection><subsection id="id38117683CD774B0D86F8D407BBD8EE76"><enum>(b)</enum><header>Eligible fuel
cell property</header><text>Paragraph (1)(E) of section 48(c) of the Internal
Revenue Code of 1986 is amended by striking <quote>December 31, 2007</quote>
and inserting <quote>December 31, 2015</quote>.</text>
</subsection><subsection id="idF885B4631A834276978DE87D57145A8A"><enum>(c)</enum><header>Credits allowed
against the alternative minimum tax</header>
<paragraph id="idD46A8FC4009449A7AFA90F47ABE2B415"><enum>(1)</enum><header>In
general</header><text>Section 38(c)(4)(B) of the Internal Revenue Code of 1986
(defining specified credits), as amended by this Act, is amended by striking
the period at the end of clause (iii) and inserting <quote>, and,</quote> and
by adding at the end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="idCFD88C7F2A7D4BF08C0BE3CA4F0A0912" style="OLC">
<clause id="idFBF943C560C549F1A1239859A1C4B8D2"><enum>(iv)</enum><text>the portion of
the investment credit under section 46(2) as determined under section
48(a)(2)(A)(i).</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id3DE7E1FDD21E4D8F81E9784B371F0005"><enum>(2)</enum><header>Effective
date</header><text>The amendments made by this subsection shall apply to
taxable years beginning after December 31, 2006.</text>
</paragraph></subsection><subsection id="ID8B95D6B0A1844960834D3350A1685770"><enum>(d)</enum><header>Solar
Investment Credit Allowed for Public Utility Property</header>
<paragraph id="id82D9A78C1D044533AB3F3CBB1FA6B97A"><enum>(1)</enum><header>In
general</header><text>The second sentence of section 48(a)(3) of the Internal
Revenue Code of 1986 is amended by inserting <quote>(other than property
described in clause (i) or (ii) of subparagraph (A))</quote> before
<quote>shall not</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDBAB0079ED72F42D9B1A8D76661246921"><enum>(2)</enum><header>Effective
Date</header><text>The amendments made by this subsection 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 section 48(m) 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 commented="no" id="idE1B69048E5304E19A7E1C15862132EED"><enum>133.</enum><header>Credit for
wind energy systems</header>
<subsection commented="no" id="id658C2544E75E483EAF9F7F83AFEDAA2F"><enum>(a)</enum><header>Residential</header>
<paragraph commented="no" id="id21450E937AA14015AA25668D089AF303"><enum>(1)</enum><header>In
general</header><text>Section 25D(a) of the Internal Revenue Code of 1986 is
amended by striking <quote>and</quote> at the end of paragraph (2), by striking
the period at the end of paragraph (3) and inserting <quote>, and</quote>, and
by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id3ADC5E227FF64F4AA0A2872FA55001DF" style="OLC">
<paragraph id="ID8DBD7D39F8A748CEA7CA80002FE00227"><enum>(4)</enum><text>30 percent of the
qualified small wind energy property expenditures made by the taxpayer during
such
year.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="id3242E10E655644D5B375F5EDBBD17845"><enum>(2)</enum><header>Limitation</header><text>Section
25D(b)(1) of the Internal Revenue Code of 1986 is amended by striking
<quote>and</quote> at the end of subparagraph (B), by striking the period at
the end of subparagraph (A) and inserting <quote>, and</quote>, and by adding
at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="idA25E0768FB4340E0985B99ABDBF4E40F" style="OLC">
<subparagraph id="IDBC92D61F1E094A329F91D4A7FD405514"><enum>(D)</enum><text>$500 with respect
to each half kilowatt of capacity (not to exceed $2,000) of qualifying wind
turbines for which qualified small wind energy property expenditures are
made.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="id9AC700099CE547C9972F594BC4AD80E3"><enum>(3)</enum><header>Qualified small
wind energy property expenditures</header><text>Section 25D(d) of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id267F5E128A184510A8826BAC5415AB1F" style="OLC">
<paragraph id="ID2FF5E9F734AF414AA5A1D4F2C0C042B9"><enum>(4)</enum><header>Qualified small
wind energy property expenditure</header>
<subparagraph id="idFB910476C2B64B3F8B54913D01F9D797"><enum>(A)</enum><header>In
general</header><text>The term <term>qualified wind energy property
expenditure</term> means an expenditure for property which uses a qualifying
wind turbine to generate electricity for use in connection with a dwelling unit
located in the United States and used as a residence by the taxpayer.</text>
</subparagraph><subparagraph id="IDcf6a282707324183aeaafe563541939c"><enum>(B)</enum><header>Qualifying wind
turbine</header><text>The term <term>qualifying wind turbine</term> means a
wind turbine of 100 kilowatts of rated capacity or less which meets the latest
performance rating standards published by the American Wind Energy Association
and which is used to generate electricity and carries at least a 5-year limited
warranty covering defects in design, material, or workmanship, and, for
property that is not installed by the taxpayer, at least a 5-year limited
warranty covering defects in
installation.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="idEFC710EF691B4C469F5ECFADA226D294"><enum>(b)</enum><header>Business</header><text>Section
48(a)(3)(A) of the Internal Revenue Code of 1986 (defining energy property) is
amended by striking <quote>or</quote> at the end of clause (iii), by adding
<quote>or</quote> at the end of clause (iv), and by inserting after clause (iv)
the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="idE52E1EFACB414EC89DC92B45390C56FC" style="OLC">
<clause commented="no" id="id9E68BC35102540FAB79D24194F9CBED0"><enum>(v)</enum><text>qualifying wind
turbine (as defined in section
25D(d)(B)),</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID6667780435C94DAE88DAB258012B90C9"><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, in taxable years
ending after such date.</text>
</subsection></section><section id="ID4e417914c67340e7a2640b25d3f444a8"><enum>134.</enum><header>Extension and
expansion of qualifying advanced coal project credit</header>
<subsection id="IDd63262b45222484eb9dec8835c3d7cb1"><enum>(a)</enum><header>Expanding
aggregate credits</header><text>Section 48A(d)(3)(A) of the Internal Revenue
Code of 1986 (relating to aggregate credits) is amended by striking
<quote>$1,300,000,000</quote> and inserting
<quote>$2,300,000,000</quote>.</text>
</subsection><subsection id="ID8a821fe3c3154c0ebcc35ebce374922b"><enum>(b)</enum><header>Authorization
of Additional Projects</header><text>Subparagraph (B) of section 48A(d)(3) of
the Internal Revenue Code of 1986 (relating to aggregate credits) is amended to
read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idAC0AFB466DA242CDA38DE01648843BF5" style="OLC">
<subparagraph id="ID1f9d369655fa4cc5b3541f96f9d15911"><enum>(B)</enum><header>Particular
projects</header><text>Of the dollar amount in subparagraph (A), the Secretary
is authorized to certify—</text>
<clause id="ID3c8d554282474a8ca0f86bbd7e6007bb"><enum>(i)</enum><text>$800,000,000 for
integrated gasification combined cycle projects the application for which is
submitted during the period described in paragraph (2)(A)(i),</text>
</clause><clause id="IDfe373c3a7b9d484793ee7d3869e7b96d"><enum>(ii)</enum><text>$500,000,000 for
projects which use other advanced coal-based generation technologies the
application for which is submitted during the period described in paragraph
(2)(A)(i), and</text>
</clause><clause id="ID20c08d957d6247539ca107897a4d794c"><enum>(iii)</enum><text>$1,000,000,000
for integrated gasification combined cycle projects and other advanced
coal-based generation technology projects that include equipment to separate
and sequester a significant fraction of such a project's carbon dioxide
emissions the application for which is submitted during the period described in
paragraph
(2)(A)(ii).</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDf431bcf2139c4cb6a9c661ae001796cd"><enum>(c)</enum><header>Application
period for additional projects</header><text>Subparagraph (A) of section
48A(d)(2) of the Internal Revenue Code of 1986 (relating to certification) is
amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id924EE2178E79498C8F79D0BC2525AC29" style="OLC">
<subparagraph id="IDe5fbff622b6f4dbeac2225ad15d4d9d6"><enum>(A)</enum><header>Application
period</header><text>Each applicant for certification under this paragraph
shall submit an application meeting the requirements of subparagraph (B). An
applicant may only submit an application—</text>
<clause id="IDf8406a0421c244459268eab06ae1453b"><enum>(i)</enum><text>for an allocation
from the dollar amount specified in clause (i) or (ii) of paragraph (3)(A)
during the 3-year period beginning on the date the Secretary establishes the
program under paragraph (1), and</text>
</clause><clause id="IDd9819ba491a14671b65ae5587ece77ee"><enum>(ii)</enum><text>for an
allocation from the dollar amount specified in paragraph (3)(A)(iii) during the
3-year period beginning at the earlier of the termination of the period
described in clause (i) or the date prescribed by the
Secretary.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDb34627152d0a465684a1b687895f8e59"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect as if
included in the amendments made by section 1307 of the Energy Policy Act of
2005.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="IDa14a156a594544b2be441719b0596893" section-type="subsequent-section"><enum>135.</enum><header display-inline="yes-display-inline">Geological disposal of global warming
pollutants</header><text display-inline="no-display-inline">The Clean Air Act
(42 U.S.C. 7401 et seq.) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idAE78C72F5B1C4FEF881E816C560AF2B9" style="OLC">
<title commented="no" id="idB95834F00FCB4978B2DC0BC72958B607" level-type="subsequent"><enum>VII</enum><header display-inline="yes-display-inline">Geological disposal of global warming
pollutants</header>
<section commented="no" display-inline="no-display-inline" id="ID97e56362a79041f0aa91e7cc49510b5d" section-type="subsequent-section"><enum>701.</enum><header display-inline="yes-display-inline">Geological disposal of global warming
pollutants</header>
<subsection commented="no" display-inline="no-display-inline" id="ID739ee2c7bbd94d569893f02b6789fc66"><enum>(a)</enum><header display-inline="yes-display-inline">Geological carbon dioxide disposal
deployment projects</header>
<paragraph commented="no" display-inline="no-display-inline" id="IDb599b20ca92f443b9d2b5e9baaf4b2d9"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Administrator shall establish a
competitive grant program to provide grants to 5 entities for the deployment of
projects to geologically dispose of carbon dioxide (referred to in this
subsection as <term>geological disposal deployment projects</term>), including
through the use of equipment to separate, pressurize, transport, and sequester
carbon dioxide.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID26bf18f3242a4ef98b154148a1fd44dd"><enum>(2)</enum><header display-inline="yes-display-inline">Location</header><text display-inline="yes-display-inline">Each geological disposal deployment project
shall be conducted in a geologically distinct location in order to demonstrate
the suitability of a variety of geological structures for carbon dioxide
disposal.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID6e8b166da8844ceda8cdb3560ac1ac10"><enum>(3)</enum><header display-inline="yes-display-inline">Components</header><text display-inline="yes-display-inline">Each geological disposal deployment project
shall include an analysis of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDc9783912ccd043bca5440169f9e930f2"><enum>(A)</enum><text display-inline="yes-display-inline">mechanisms for trapping the carbon dioxide
to be geologically disposed;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID140a8d132f404ac9b71dc93e2039dbdb"><enum>(B)</enum><text display-inline="yes-display-inline">techniques for monitoring the geologically
disposed carbon dioxide;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID1890b0f2460445fcbd66c9b6b12ea98e"><enum>(C)</enum><text display-inline="yes-display-inline">public response to the geological disposal
deployment project; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id7AACD2B75B4B4EE7A43E414CB0B4BE4F"><enum>(D)</enum><text display-inline="yes-display-inline">the permanency of carbon dioxide storage in
geological reservoirs.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID77043cd646774a8b81fbc19a5c98eb74"><enum>(4)</enum><header display-inline="yes-display-inline">Requirements</header>
<subparagraph commented="no" display-inline="no-display-inline" id="IDf07fc9666c6c4d43aae97bf72438ea05"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Administrator shall establish—</text>
<clause commented="no" display-inline="no-display-inline" id="id5F8F35E725954C09BDCFA782F7C926E4"><enum>(i)</enum><text display-inline="yes-display-inline">appropriate conditions for environmental
protection with respect to geological disposal deployment projects to protect
public health and the environment; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idC02CF3DAEC5B4731889E9615BEE80B3C"><enum>(ii)</enum><text display-inline="yes-display-inline">requirements relating to applications for
grants under this subsection.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID929c5f7a4e83446a82ce743fd6c6c37a"><enum>(B)</enum><header display-inline="yes-display-inline">Rulemaking</header><text display-inline="yes-display-inline">The establishment of requirements under
subparagraph (A) shall not require a rulemaking.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDd786a06989fd43ae985c9ab77f874d84"><enum>(C)</enum><header display-inline="yes-display-inline">Minimum requirements</header><text display-inline="yes-display-inline">At a minimum, each application for a grant
under this subsection shall include—</text>
<clause commented="no" display-inline="no-display-inline" id="IDf9162101c8fb42d7a53121060848ba41"><enum>(i)</enum><text display-inline="yes-display-inline">a description of the geological disposal
deployment project proposed in the application;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID79222f8a8afb4c95945c0b64b7f48a71"><enum>(ii)</enum><text display-inline="yes-display-inline">an estimate of the quantity of carbon
dioxide to be geologically disposed over the life of the geological disposal
deployment project; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID08dc10aa369a431a9f1b0778faf16123"><enum>(iii)</enum><text display-inline="yes-display-inline">a plan to collect and disseminate data
relating to each geological disposal deployment project to be funded by the
grant.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDb5da53973fa24d7194de2e4d8411cb4d"><enum>(5)</enum><header display-inline="yes-display-inline">Partners</header><text display-inline="yes-display-inline">An applicant for a grant under this
subsection may carry out a geological disposal deployment project under a pilot
program in partnership with 1 or more public or private entities.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID4d3f3372a5db42f78bfb8c0c663f16f3"><enum>(6)</enum><header display-inline="yes-display-inline">Selection criteria</header><text display-inline="yes-display-inline">In evaluating applications under this
subsection, the Administrator shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDc09bcbe5728f45c98a9f2e73fed8035c"><enum>(A)</enum><text display-inline="yes-display-inline">consider the previous experience of each
applicant with similar projects; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID44ae10d13cfd45459f8b7afa4576ac20"><enum>(B)</enum><text display-inline="yes-display-inline">give priority consideration to applications
for geological disposal deployment projects that—</text>
<clause commented="no" display-inline="no-display-inline" id="ID50a3025b6fe14d39a9eced922ef015e0"><enum>(i)</enum><text display-inline="yes-display-inline">offer the greatest geological diversity
from other projects that have previously been approved;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDefb7e77078374e3db62aeaa73f2c35aa"><enum>(ii)</enum><text display-inline="yes-display-inline">are located in closest proximity to a
source of carbon dioxide;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID6dc181a3fa9d4f368c65170b9da3fb81"><enum>(iii)</enum><text display-inline="yes-display-inline">make use of the most affordable source of
carbon dioxide;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID44f1c352774b4ca5b1d746bb08027a8b"><enum>(iv)</enum><text display-inline="yes-display-inline">are expected to geologically dispose of the
largest quantity of carbon dioxide;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID363caa149e9a4aff98ea9b984f387e60"><enum>(v)</enum><text display-inline="yes-display-inline">are combined with demonstrations of
advanced coal electricity generation technologies;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDe8f758fa15af4c9282a37a6550610a98"><enum>(vi)</enum><text display-inline="yes-display-inline">demonstrate the greatest commitment on the
part of the applicant to ensure funding for the proposed demonstration project
and the greatest likelihood that the demonstration project will be maintained
or expanded after Federal assistance under this subsection is completed;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID5f1c26a8333a44218783d8c43e677bb5"><enum>(vii)</enum><text display-inline="yes-display-inline">minimize any adverse environmental effects
from the project.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID2a44c721cd384fe6a591c7172a87fb08"><enum>(7)</enum><header display-inline="yes-display-inline">Period of grants</header>
<subparagraph commented="no" display-inline="no-display-inline" id="ID1fae4a00a3da424eb89362b7cd425857"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">A geological disposal deployment project
funded by a grant under this subsection shall begin construction not later than
3 years after the date on which the grant is provided.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDd4dc7e5ac5f948659b0693e4dd5fccfd"><enum>(B)</enum><header display-inline="yes-display-inline">Term</header><text display-inline="yes-display-inline">The Administrator shall not provide grant
funds to any applicant under this subsection for a period of more than 5
years.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID84b7b3f4cbaf48219ceb1d2c86b34eca"><enum>(8)</enum><header display-inline="yes-display-inline">Transfer of information and
knowledge</header><text display-inline="yes-display-inline">The Administrator
shall establish mechanisms to ensure that the information and knowledge gained
by participants in the program under this subsection are published and
disseminated, including to other applicants that submitted applications for a
grant under this subsection.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID67c5f3f001904de7af9a3f59ef264109"><enum>(9)</enum><header display-inline="yes-display-inline">Schedule</header>
<subparagraph commented="no" display-inline="no-display-inline" id="ID7474c26bf84d40389a8a3cac8b26aec7"><enum>(A)</enum><header display-inline="yes-display-inline">Publication</header><text display-inline="yes-display-inline">Not later than 180 days after the date of
enactment of this title, the Administrator shall publish in the Federal
Register, and elsewhere as appropriate, a request for applications to carry out
geological disposal deployment projects.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDc98b7ea799544293a1885a31b1ec5657"><enum>(B)</enum><header display-inline="yes-display-inline">Date for applications</header><text display-inline="yes-display-inline">An application for a grant under this
subsection shall be submitted not later than 180 days after the date of
publication of the request under subparagraph (A).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDb41e0b23153645e6af7bb410d817b053"><enum>(C)</enum><header display-inline="yes-display-inline">Selection</header><text display-inline="yes-display-inline">After the date by which applications for
grants are required to be submitted under subparagraph (B), the Administrator,
in a timely manner, shall select, after peer review and based on the criteria
under paragraph (6), those geological disposal deployment projects to be
provided a grant under this subsection.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID85fe8ee7cd2e4bce9f274733812b2313"><enum>(b)</enum><header display-inline="yes-display-inline">Interim standards</header><text display-inline="yes-display-inline">Not later than 3 years after the date of
enactment of this title, the Administrator, in consultation with the Secretary
of Energy, shall, by regulation, establish interim geological carbon dioxide
disposal standards that address—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID0e65fd8027f84f5da3064dd2ec330cf0"><enum>(1)</enum><text display-inline="yes-display-inline">site selection;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDd527a390762b43b6a5748ec6f18a6f43"><enum>(2)</enum><text display-inline="yes-display-inline">permitting processes;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID915c64e559304998ac78c1e6ff9d7999"><enum>(3)</enum><text display-inline="yes-display-inline">monitoring requirements;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID2ef89e10500f4b38a1ba2ab93628d1cb"><enum>(4)</enum><text display-inline="yes-display-inline">public participation; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDb52185cc750e4ecf8cdca2450eb133f5"><enum>(5)</enum><text display-inline="yes-display-inline">such other issues as the Administrator and
the Secretary of Energy determine to be appropriate.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idB89F0DCC8B9B499C90C528ECE0B63758"><enum>(c)</enum><header display-inline="yes-display-inline">Final standards</header><text display-inline="yes-display-inline">Not later than 6 years after the date of
enactment of this title, taking into account the results of geological disposal
deployment projects carried out under subsection (a), the Administrator shall,
by regulation, establish final geological carbon dioxide disposal
standards.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID4c4171abf2c64cf2a8353124ecd0d798"><enum>(d)</enum><header display-inline="yes-display-inline">Considerations</header><text display-inline="yes-display-inline">In developing standards under subsections
(b) and (c), the Administrator shall consider the experience in the United
States in regulating—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id23A4ED55E37241F9A5673E27F1A258D8"><enum>(1)</enum><text display-inline="yes-display-inline">underground injection of waste;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id234870CF8DB54FAB9011E7C9D026867D"><enum>(2)</enum><text display-inline="yes-display-inline">enhanced oil recovery;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id30A81FC16377413390C1134BDDC7DEA6"><enum>(3)</enum><text display-inline="yes-display-inline">short-term storage of natural gas;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id0DB12CC227914B2D9F4A1E87CCD620D4"><enum>(4)</enum><text display-inline="yes-display-inline">long-term waste storage.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idE9800FA0C22E41399BD545BB0BADD71E"><enum>(e)</enum><header display-inline="yes-display-inline">Termination of authority</header><text display-inline="yes-display-inline">This section and the authority provided by
this section terminate on December 31,
2030.</text>
</subsection></section>.
EIncentives for
energy efficient buildings
141.Extension of energy
efficient commercial buildings deductionSection 179D(h) of the Internal Revenue Code
of 1986 (relating to termination) is amended by striking December 31,
2008
and inserting December 31, 2015
.
142.Extension and
expansion of new energy efficient home credit
(a)Section
45L(g) of the Internal Revenue Code of 1986 (relating to termination) is
amended by striking December 31, 2008
and inserting
December 31, 2015
.
(b)Inclusion of 30
percent homes
(1)Section 45L(c) of the Internal Revenue Code of 1986
(relating to energy saving requirements) is amended—
(A)by striking
or
at the end of paragraph (2);
(B)by redesignating
paragraph (3) as paragraph (4); and
(C)by inserting
after paragraph (2) the following new paragraph:
(3)certified—
(A)to have a level
of annual heating and cooling energy consumption which is at least 30 percent
below the annual level described in paragraph (1), and
(B)to have building
envelope component improvements account for at least 1/3 of such 30 percent,
or.
.
(2)Applicable
amount of creditSection 45L(a)(2) is amended by striking
paragraph (3)
and inserting paragraph (3) or
(4)
.
(3)The amendments made by this subsection shall apply to
qualified new energy efficient homes acquired after the date of the enactment
of this Act.
F
151.Assistant
Secretary for Advanced Energy Research, Technology Development, and
Deployment
(a)
(1)The Secretary of
Energy shall establish in the Department of Energy the position of Assistant
Secretary for Advanced Energy Research, Technology Development, and Deployment
(referred to in this section as the Assistant Secretary
), to be
headed by, and to report to, the Secretary.
(2)The
Assistant Secretary shall be an individual with—
(A)an advanced
education degree in energy technology; and
(B)substantial
commercial research and technology development and deployment
experience.
(b)The
mission of the Assistant Secretary is—
(1)to implement an
innovative energy research, technology development, and deployment program
to—
(A)increase national
security by significantly reducing petroleum and imported fuels
consumption;
(B)significantly
improve the efficiency of electricity use and the reliability of the
electricity system; and
(C)significantly
reduce greenhouse gas emissions; and
(2)to sponsor a
diverse portfolio of cutting-edge, high-payoff research, development, and
deployment projects to carry out the program.
(c)Experimental
personnel authorityThe Assistant Secretary may staff the office
of the Assistant Secretary primarily using a program of experimental use of
special personnel management authority in order to facilitate recruitment of
eminent experts in science or engineering for management of research and
development projects and programs administered by the Assistant Secretary under
similar terms and conditions as the authority is exercised under section 1101
of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999
(Public Law 105–261; 5 U.S.C. 3104 note), as determined by the Assistant
Secretary.
(d)Transactions
other than contracts and grantsTo carry out projects under this
section, the Assistant Secretary may enter into transactions to carry out
advanced research projects under this subsection under similar terms and
conditions as the authority is exercised under section 646(g) of the Department
of Energy Organization Act (42 U.S.C. 7256(g)).
(e)Prizes for
advanced technology achievements
(1)Subject to paragraphs (2) through (4), the Assistant
Secretary may carry out a program to award cash prizes in recognition of
outstanding achievements in basic, advanced, and applied research, technology
development, and prototype development that have the potential to advance the
mission described in subsection (b) under similar terms and conditions as the
authority is exercised under section 1008 of the Energy Policy Act of 2005 (42
U.S.C. 16396).
(2)In carrying out this subsection, the Assistant
Secretary shall—
(A)use a competitive
process for the selection of recipients of cash prizes; and
(B)conduct
widely-advertised solicitation of submissions of research results, technology
developments, and prototypes.
(3)Maximum amount
for all cash prizesThe total amount of all cash prizes awarded
for a fiscal year under this subsection may not exceed $50,000,000.
(4)Maximum amount
of individual cash prizesThe amount of an individual cash prize
awarded under this subsection may not exceed $10,000,000 unless the amount of
the award is approved by the Secretary of Energy.
(f)Commercialization
of cellulosic biomass ethanolOf the amounts that are made
available to carry out this section, the Assistant Secretary shall use not less
that $2,000,000,000 to conduct research and development to increase yields,
reduce production costs, and take other steps to accelerate the
commercialization of cellulosic biomass ethanol (as defined in section
211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)(1))).
(g)Advanced
automotive battery researchOf the amounts that are made
available to carry out this section, the Assistant Secretary shall use not less
than $500,000,000 to conduct research and development on advanced battery
technology for use in hybrid-electric vehicles.
(h)As soon as practicable after the end of each fiscal year
for which the Assistant Secretary receives funds under subsection (i), the
Assistant Secretary shall submit to the Committee on Energy and Natural
Resources of the Senate and the Committee on Energy and Commerce, and the
Committee on Science, of the House of Representatives a report on the progress,
challenges, future milestones, and strategic plan of the Assistant Secretary,
including—
(1)a description of,
and rationale for, any changes in the strategic plan;
(2)the adequacy of
human and financial resources necessary to achieve the mission described in
subsection (b); and
(3)in the case of
cash prizes awarded under subsection (e), a description of—
(A)the applications
of the research, technology, or prototypes for which prizes were
awarded;
(B)the total amount
of the prizes that were awarded;
(C)the methods used
for solicitation and evaluation of submissions and an assessment of the
effectiveness of those methods; and
(D)recommendations
to improve the prize program.
(i) Relationship
to other authorityThe program under this section may be carried
out in conjunction with, or in addition to, the exercise of any other authority
of the Assistant Secretary to acquire, support, or stimulate basic, advanced,
and applied research, technology development, or prototype projects.
<enum>II</enum><header>Realigning oil
company incentives</header>
<subtitle id="id6334A441751F426FB28A0107317C5E98"><enum>A</enum><header>Excess oil
profits</header>
<section id="H142D1607341D4F39A9E5BBEF8E19CB5"><enum>201.</enum><header>Temporary oil
profit fee</header>
<subsection id="H4492C98DE6724572BF91AE740175FB9E"><enum>(a)</enum><header>In
general</header><text>Subtitle E of the Internal Revenue Code of 1986 (relating
to alcohol, tobacco, and certain other excise taxes) is amended by adding at
the end the following new chapter:</text>
<quoted-block display-inline="no-display-inline" id="id75ED6C90CC0F4267B55363D4492897AD" style="OLC">
<chapter id="H0CE021CDDF5D40A3B2F5BDDB7CFE828F"><enum>56</enum><header>Temporary fee on
excess oil profit</header>
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 5896. Imposition of
fee.</toc-entry>
<toc-entry level="section">Sec. 5897. Excess profit;
etc.</toc-entry>
<toc-entry level="section">Sec. 5898. Special rules and
definitions.</toc-entry>
</toc>
<section id="H5981C706013A4EFA994CC4E0C8CDE9C"><enum>5896.</enum><header>Imposition of
fee</header>
<subsection id="H6316B48CC3724603A58F5EFF955D1851"><enum>(a)</enum><header>In
general</header><text>In addition to any other tax imposed under this title,
there is hereby imposed on any applicable taxpayer an excise fee in an amount
equal to 50 percent of the excess profit of such taxpayer for any taxable year
beginning during 2007 or 2008.</text>
</subsection><subsection id="id4D0D2AE2A60648A895CEF31A621C4AE5"><enum>(b)</enum><header>Applicable
taxpayer</header><text>For purposes of this chapter, the term <term>applicable
taxpayer</term> means, with respect to operations in the United States—</text>
<paragraph id="id103F633E21B746D798657F64E0BF8C59"><enum>(1)</enum><text>any integrated
oil company (as defined in section 291(b)(4)), and</text>
</paragraph><paragraph id="id0D642763A1EB4810A78FA85250838C98"><enum>(2)</enum><text>any other
producer or refiner of crude oil with gross receipts from the sale of such
crude oil or refined oil products for the taxable year exceeding
$100,000,000.</text>
</paragraph></subsection></section><section id="id49F86AB714DE4C7BAF4334E11628A036"><enum>5897.</enum><header>Excess
profit; etc</header>
<subsection id="id717089812C354D5185FBBE1FBDAC6EEA"><enum>(a)</enum><header>General
rule</header><text>For purposes of this chapter, the term <term>excess
profit</term> means the excess of the adjusted taxable income of the applicable
taxpayer for the taxable year over the reasonably inflated average profit for
such taxable year.</text>
</subsection><subsection id="id13B3CA3D8DD543B2B77006FCF57E3428"><enum>(b)</enum><header>Adjusted
taxable income</header><text>For purposes of this chapter, with respect to any
applicable taxpayer, the adjusted taxable income for any taxable year is equal
to the taxable income for such taxable year (within the meaning of section 63
and determined without regard to this subsection)—</text>
<paragraph id="id935CA599BED94AA7BDCAA17694B486ED"><enum>(1)</enum><text>increased by any
interest expense deduction, charitable contribution deduction, and any net
operating loss deduction carried forward from any prior taxable year,
and</text>
</paragraph><paragraph id="idF1162BA94A104216B3A0674AA3981C6A"><enum>(2)</enum><text>reduced
by—</text>
<subparagraph id="id9124CD876B95447EB74753B007465811"><enum>(A)</enum><text>any interest
income, dividend income, and net operating losses to the extent such losses
exceed taxable income for the taxable year, and</text>
</subparagraph><subparagraph id="idF792F7AB63054432B0247A19DD54233D"><enum>(B)</enum><text>any qualified
domestic energy investment for such taxable year.</text>
</subparagraph></paragraph><continuation-text continuation-text-level="subsection">In the
case of any applicable taxpayer which is a foreign corporation, the adjusted
taxable income shall be determined with respect to such income which is
effectively connected with the conduct of a trade or business in the United
States.</continuation-text></subsection><subsection id="id5E38A64FB59441AC99807053B53B1614"><enum>(c)</enum><header>Reasonably
inflated average profit</header><text>For purposes of this chapter, with
respect to any applicable taxpayer, the reasonably inflated average profit for
any taxable year is an amount equal to the average of the adjusted taxable
income of such taxpayer for taxable years beginning during the 2000–2004
taxable year period (determined without regard to the taxable year with the
highest adjusted taxable income in such period) plus 10 percent of such
average.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id3B890BC32B824416BDCEECBBA075DDE9"><enum>(d)</enum><header>Qualified
domestic energy investment</header>
<paragraph commented="no" display-inline="no-display-inline" id="id8E47915BF6C94CB8960B312494254072"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">For purposes of this
chapter, the term <term>qualified domestic energy investment</term> means any
amount paid or incurred with respect to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id477421100FBE4DFE8CA3BEDA4EF57D9F"><enum>(A)</enum><text display-inline="yes-display-inline">any qualified facility described in
paragraph (1), (2), (3), or (4) of section 45(d) (determined without regard to
any placed in service date requirement under such section), and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id377689372FC34787B54D775B0DB60394"><enum>(B)</enum><text display-inline="yes-display-inline">any facility for the production of alcohol
used as a fuel (within the meaning of section 40) or biodiesel or
agri-biodiesel used as a fuel (within the meaning of section 40A),</text>
</subparagraph><continuation-text continuation-text-level="paragraph">originally
placed in service by the taxpayer after the date of the enactment of this
section and for which no binding contract was entered into before such
date.</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H61736604FEE84B488354D82ED7C0D8F5"><enum>(2)</enum><header display-inline="yes-display-inline">Denial of double benefit</header><text display-inline="yes-display-inline">No deduction or credit under this title
shall be allowed for that portion of the amount taken into account in
determining any qualified domestic energy investment under this section.</text>
</paragraph></subsection></section><section id="idB7956C1B641D4D09B0592F282BD7B532"><enum>5898.</enum><header>Special rules
and definitions</header>
<subsection id="IDa95e81d74ff942f29f00b909bf825120"><enum>(a)</enum><header>Withholding and
deposit of fee</header><text>The Secretary shall provide such rules as are
necessary for the withholding and deposit of the fee imposed under section
5896.</text>
</subsection><subsection id="IDb2c30bea4cb94632bac2e42e5f8ab8c6"><enum>(b)</enum><header>Records and
information</header><text>Each taxpayer liable for the fee under section 5896
shall keep such records, make such returns, and furnish such information as the
Secretary may by regulations prescribe.</text>
</subsection><subsection id="idDD11EB19B6FA4EC2975BE6A4A5696BD0"><enum>(c)</enum><header>Return of
fee</header><text>The Secretary shall provide for the filing and the time of
such filing of the return of the fee imposed under section 5896.</text>
</subsection><subsection id="IDa00341c0af1043d99d907ac0b74febdd"><enum>(d)</enum><header>Crude
oil</header><text>The term <term>crude oil</term> includes crude oil
condensates and natural gasoline.</text>
</subsection><subsection id="id64B608CA813747D0BA1F991280530E8E"><enum>(e)</enum><header>Businesses
under common control</header><text>For purposes of this chapter, all members of
the same controlled group of corporations (within the meaning of section
267(f)) and all persons under common control (within the meaning of section
52(b) but determined by treating an interest of more than 50 percent as a
controlling interest) shall be treated as 1 person.</text>
</subsection><subsection id="ID95aba55935d8461ba2065c0527bba675"><enum>(f)</enum><header>Regulations</header><text>The
Secretary shall prescribe such regulations as may be necessary or appropriate
to carry out the purposes of this
chapter.</text>
</subsection></section></chapter><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H7C153EBF60E64961AA43B8C8DAFAFBD"><enum>(b)</enum><header>Clerical
amendment</header><text>The table of chapters for subtitle E of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
item:</text>
<quoted-block display-inline="no-display-inline" id="HB594E0669CBE4A1B8186E687E420C4F7" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="chapter">Chapter 56. Temporary fee on excess oil
profit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID2cd7dbf5706c4dda8a6236dc39b94a94"><enum>(c)</enum><header>Deductibility
of fee</header><text>The first sentence of section 164(a) of the Internal
Revenue Code of 1986 (relating to deduction for taxes) is amended by inserting
after paragraph (5) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id745702250BC2449E9DD3E0EC5647A0D9" style="OLC">
<paragraph id="IDe806831dd142469eace6e9bd46f5d094"><enum>(6)</enum><text>The fee imposed
by section
5896.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section></subtitle><subtitle id="id3517C37BAE91406C987D148CB45F9580"><enum>B</enum><header>Energy fairness
for America</header>
<section id="IDb37c9d819cb34ba7bcf18962bf59bf08"><enum>211.</enum><header>Elimination of
deduction for intangible drilling and development costs for major oil
companies</header>
<subsection id="ID07aab70d7b984800bdfa2ef1c1656fa0"><enum>(a)</enum><header>In
general</header><text>Section 263(c) of the Internal Revenue Code of 1986 is
amended by adding at the end the following new sentences: <quote>This
subsection shall not apply during any taxable year with respect to an
applicable taxpayer (as defined in section 5896(b)) if during the preceding
taxable year for the production of oil, the average price of crude oil in the
United States is greater than $34.71 per barrel, and for the production of
natural gas, the average wellhead price of natural gas in the United States is
greater than $4.34 per 1,000 cubic feet. For purposes of the preceding
sentence, the Secretary shall determine average prices, taking into
consideration the most recent data reported by the Energy Information
Administration. For taxable years beginning after December 31, 2008, each
dollar amount specified in this subsection shall be adjusted to reflect changes
for the 12-month period ending the preceding September 30 in the Consumer Price
Index for All Urban Consumers published by the Bureau of Labor Statistics of
the Department of Labor.</quote></text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID07e9ee927efa430c986e646ddde99269"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to taxable
years beginning after the date of the enactment of this Act.</text>
</subsection></section><section id="idEAC4605BDDC0470189FD9405D3A3605D"><enum>212.</enum><header>Extension of
election to expense certain refineries</header>
<subsection id="idEB8E452CD73B4EABA72EFC57B0005C30"><enum>(a)</enum><header>Extension</header>
<paragraph id="id6F7BFE9A5F0D4A8AA7812D1086F6B48F"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 179C(c)(1) of
the Internal Revenue Code of 1986 (defining qualified refinery property) is
amended—</text>
<subparagraph id="id68F9B57FD36B43C3A509CA4F6E6E2E79"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>and before January 1,
2012</quote> in subparagraph (B) and inserting <quote>and, in the case of any
qualified refinery described in subsection (d)(1), before January 1,
2012</quote>, and</text>
</subparagraph><subparagraph id="idFAC37D79F0CE40B18C99C66190FCA619"><enum>(B)</enum><text>by inserting
<quote>if described in subsection (d)(1)</quote> after <quote>of which</quote>
in subparagraph (F)(i).</text>
</subparagraph></paragraph><paragraph id="id88455AA1BBBF4F448AA687E34930FB10"><enum>(2)</enum><header>Conforming
amendment</header><text>Subsection (d) of section 179C of the Internal Revenue
Code of 1986 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idD64284D31CF2445094C819250FABAB55" style="OLC">
<subsection id="id3B39DD0C9B4B411EBD2DCDF0BE8313CB"><enum>(d)</enum><header>Qualified
refinery</header><text>For purposes of this section, the term <term>qualified
refinery</term> means any refinery located in the United States which is
designed to serve the primary purpose of processing liquid fuel from—</text>
<paragraph id="id4D08BD3DDA7342E5BC6A36817B240D1A"><enum>(1)</enum><text>crude oil,
or</text>
</paragraph><paragraph id="id0926F2502E2740FB972AEB1B7EB8FFCE"><enum>(2)</enum><text>qualified fuels
(as defined in section
45K(c)).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id753B6DF080724E80A93272A8C9AC076A"><enum>(3)</enum><header>Effective
date</header><text>The amendments made by this subsection shall take effect as
if included in the amendment made by section 1323(a) of the Energy Policy Act
of 2005.</text>
</paragraph></subsection><subsection id="id09C3D64D58DD4C66A05BC1702FB0DD9A"><enum>(b)</enum><header>Nonapplication
for major oil companies</header>
<paragraph id="id4DF8D910123E4145A72266E1DAEEE63B"><enum>(1)</enum><header>In
general</header><text>Section 179C of the Internal Revenue Code of 1986 is
amended by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="idCCCA240C497B4092BD1AD0C9B6A8F4B8" style="OLC">
<subsection id="idD72740B6A4714CCFB86F8E2F1F5AF8DE"><enum>(i)</enum><header>Nonapplication
of section</header><text>This section shall not apply during any taxable year
with respect to an applicable taxpayer (as defined in section 5896(b)) if
during the preceding taxable year for the production of oil, the average price
of crude oil in the United States is greater than $34.71 per barrel. For
purposes of the preceding sentence, the Secretary shall determine average
prices, taking into consideration the most recent data reported by the Energy
Information Administration. For taxable years beginning after December 31,
2008, the dollar amount specified in this paragraph shall be adjusted to
reflect changes for the 12-month period ending the preceding September 30 in
the Consumer Price Index for All Urban Consumers published by the Bureau of
Labor Statistics of the Department of
Labor.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id187B80367E224918AD32E84291BE499B"><enum>(2)</enum><header>Effective
date</header><text>The amendment made by this subsection shall apply to taxable
years beginning after the date of the enactment of this Act.</text>
</paragraph></subsection></section><section id="IDb73ef01e9e18474a83b63338be995f36"><enum>213.</enum><header>Elimination of
amortization of geological and geophysical expenditures for major oil
companies</header>
<subsection id="IDea53a6cb497f4373ade79abf8617364e"><enum>(a)</enum><header>In
general</header><text>Section 167(h) of the Internal Revenue Code of 1986 is
amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id27271465FDFE41E0B9EEFF8F655D25D2" style="OLC">
<paragraph id="id8BE8B498C60B4AA587C04C7C96DDCDB5"><enum>(5)</enum><header>Nonapplication
of section</header><text>This subsection shall not apply during any taxable
year with respect to an applicable taxpayer (as defined in section 5896(b)) if
during the preceding taxable year for the production of oil, the average price
of crude oil in the United States is greater than $34.71 per barrel, and for
the production of natural gas, the average wellhead price of natural gas in the
United States is greater than $4.34 per 1,000 cubic feet. For purposes of the
preceding sentence, the Secretary shall determine average prices, taking into
consideration the most recent data reported by the Energy Information
Administration. For taxable years beginning after December 31, 2008, each
dollar amount specified in this subparagraph shall be adjusted to reflect
changes for the 12-month period ending the preceding September 30 in the
Consumer Price Index for All Urban Consumers published by the Bureau of Labor
Statistics of the Department of
Labor.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDee2495d4d8a7433ca22b3c833f85280c"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on and
after the date of the enactment of this Act.</text>
</subsection></section><section changed="added" id="H5A32F2CD0432453CB78FA75BEFCE1B88"><enum>214.</enum><header>Modifications
of foreign tax credit rules applicable to major oil companies which are dual
capacity taxpayers</header>
<subsection id="H6DBFB351222F4F0292AC9BC2E9BFFC3C"><enum>(a)</enum><header>In
general</header><text>Section 901 of the Internal Revenue Code of 1986
(relating to credit for taxes of foreign countries and of possessions of the
United States) is amended by redesignating subsection (m) as (n) and by
inserting after subsection (l) the following new subsection:</text>
<quoted-block changed="added" id="H01FCF1311E3D4A8DA1A7BFBFB7D18615">
<subsection id="H330D6C6BADDB4C03955E8A706762D088"><enum>(m)</enum><header>Special rules
relating to major oil companies which are dual capacity taxpayers</header>
<paragraph id="H4D8C773A01694C39BEBD12F98AB43887"><enum>(1)</enum><header>General
rule</header><text>Notwithstanding any other provision of this chapter, any
amount paid or accrued by a dual capacity taxpayer which is an applicable
taxpayer (as defined in section 5896(b)) to a foreign country or possession of
the United States for any period shall not be considered a tax—</text>
<subparagraph id="H5C1D220ABA8747FCB66F5BDE1CEF6706"><enum>(A)</enum><text>if, for such
period, the foreign country or possession does not impose a generally
applicable income tax, or</text>
</subparagraph><subparagraph id="H6EC7050591104918B056DB9DCC87C028"><enum>(B)</enum><text>to the extent such
amount exceeds the amount (determined in accordance with regulations)
which—</text>
<clause id="H3DCC4A8CC35D44EB8E5AF8800166F2D8"><enum>(i)</enum><text>is paid by such
dual capacity taxpayer pursuant to the generally applicable income tax imposed
by the country or possession, or</text>
</clause><clause id="H2A05B3D03A8C4286992B1BEA5B80745B"><enum>(ii)</enum><text>would be paid if
the generally applicable income tax imposed by the country or possession were
applicable to such dual capacity taxpayer.</text>
</clause><continuation-text continuation-text-level="subparagraph">Nothing in this paragraph shall be
construed to imply the proper treatment of any such amount not in excess of the
amount determined under subparagraph (B).</continuation-text></subparagraph></paragraph><paragraph id="HBA741CD260BB4821AA3E15941BFD731F"><enum>(2)</enum><header>Dual capacity
taxpayer</header><text>For purposes of this subsection, the term <term>dual
capacity taxpayer</term> means, with respect to any foreign country or
possession of the United States, a person who—</text>
<subparagraph id="HF47E18DB149C4A3AB3A4805322411E1B"><enum>(A)</enum><text>is subject to a
levy of such country or possession, and</text>
</subparagraph><subparagraph id="H558E27F312964A1F8211B1F45B9DCA99"><enum>(B)</enum><text>receives (or will
receive) directly or indirectly a specific economic benefit (as determined in
accordance with regulations) from such country or possession.</text>
</subparagraph></paragraph><paragraph id="H72477FB9F9D94E98A068A582DC7F68B7"><enum>(3)</enum><header>Generally
applicable income tax</header><text>For purposes of this subsection—</text>
<subparagraph id="H8638908D5EC4482DB8E96D887BA1D595"><enum>(A)</enum><header>In
General</header><text>The term <term>generally applicable income tax</term>
means an income tax (or a series of income taxes) which is generally imposed
under the laws of a foreign country or possession on income derived from the
conduct of a trade or business within such country or possession.</text>
</subparagraph><subparagraph id="H3E9422E1914544FB80AE76188E32D153"><enum>(B)</enum><header>Exceptions</header><text>Such
term shall not include a tax unless it has substantial application, by its
terms and in practice, to—</text>
<clause id="H8F79A466245B4E03942F57F704F5CEFF"><enum>(i)</enum><text>persons who are
not dual capacity taxpayers, and</text>
</clause><clause id="HB8A926BBBCB74250B40168229AFEFD49"><enum>(ii)</enum><text>persons who are
citizens or residents of the foreign country or
possession.</text>
</clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H97B9637B9A8246EA8F2DC9DABAA02F7E"><enum>(b)</enum><header>Effective
date</header>
<paragraph id="HA40CFF1E2ED54F43A61DA092D8898E50"><enum>(1)</enum><header>In
general</header><text>The amendments made by this section shall apply to taxes
paid or accrued in taxable years beginning after the date of the enactment of
this Act.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1D7C0A56ABD4421790FC280B4A8A8545"><enum>(2)</enum><header>Contrary treaty
obligations upheld</header><text>The amendments made by this section shall not
apply to the extent contrary to any treaty obligation of the United
States.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H1408FCD59CBC429B9487CE07F5D0A2C6"><enum>215.</enum><header>Denial of
deduction for income attributable to domestic production of oil, natural gas,
or primary products thereof</header>
<subsection id="HE7720DBCCA0740F6A83E6025EBAAE0E3"><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="H5FA1B25B95584EE6867BD7845D078D66" style="OLC">
<clause id="HF7E3B4294E564BBA86ED6D31F0B39249"><enum>(iv)</enum><text>the sale,
exchange, or other disposition of oil, natural gas, or any primary product
thereof.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H337BAC6856294E21A82615CDC3B69E4"><enum>(b)</enum><header>Primary
product</header><text>Section 199(c)(4)(B) of such Code is amended by adding at
the end the following flush sentence:</text>
<quoted-block display-inline="no-display-inline" id="HF251D31B3E3F423BABFDA5605DA3E265" 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 id="H7E14ACDB516F4972B382F5464EE62D01"><enum>(c)</enum><header>Conforming
amendments</header><text>Section 199(c)(4) of such Code is amended—</text>
<paragraph id="HCDDD50DD22C84C4293651FB31B147869"><enum>(1)</enum><text display-inline="yes-display-inline">in subparagraph (A)(i)(III) by striking
<quote>electricity, natural gas,</quote> and inserting
<quote>electricity</quote>, and</text>
</paragraph><paragraph id="HF9DBBA48960F4316A8088C5C555EF545"><enum>(2)</enum><text display-inline="yes-display-inline">in subparagraph (B)(ii) by striking
<quote>electricity, natural gas,</quote> and inserting
<quote>electricity</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H77F281E899EA4B77AC11916212D1BDEC"><enum>(d)</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="ID40731eb52ec04eb1981d13e2010d70e4"><enum>216.</enum><header>Elimination of
enhanced oil recovery credit for major oil companies</header>
<subsection id="ID044047fc79284e31b27a1de47be1b651"><enum>(a)</enum><header>In
general</header><text>Section 43 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="idE8E675D77E9548B7B5491FDCED3053DD" style="OLC">
<subsection id="ID27b0b5d02dec4875afa9250bd0599608"><enum>(f)</enum><header>Nonapplication
of section</header><text>This section shall not apply during any taxable year
with respect to an applicable taxpayer (as defined in section 5896(b)) if
during the preceding taxable year for the production of oil, the average price
of crude oil in the United States is greater than $34.71 per barrel. For
purposes of the preceding sentence, the Secretary shall determine average
prices, taking into consideration the most recent data reported by the Energy
Information Administration. For taxable years beginning after December 31,
2008, the dollar amount specified in this paragraph shall be adjusted to
reflect changes for the 12-month period ending the preceding September 30 in
the Consumer Price Index for All Urban Consumers published by the Bureau of
Labor Statistics of the Department of
Labor.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID6ba1bd015d704b90814572c465aa8627"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to taxable
years beginning after the date of the enactment of this Act.</text>
</subsection></section></subtitle><subtitle id="id5A7B7B7E23204B9BBF587D40BCEAAAC3"><enum>C</enum><header>Protection and
retention of value of publicly-owned energy resources</header>
<section display-inline="no-display-inline" id="HC677FC63BE0742C0BE3F00FE93492100"><enum>221.</enum><header>Price
thresholds for royalty suspension provisions</header><text display-inline="no-display-inline">The Secretary of the Interior shall agree to
a request by any lessee to amend any lease issued for any Central and Western
Gulf of Mexico tract during the period of January 1, 1998, through December 31,
1999, to incorporate price thresholds applicable to royalty suspension
provisions, that are equal to or less than the price thresholds described in
clauses (v) through (vii) of section 8(a)(3)(C) of the Outer Continental Shelf
Lands Act (43 U.S.C. 1337(a)(3)(C)). Any amended lease shall impose the new or
revised price thresholds effective October 1, 2006. Existing lease provisions
shall prevail through September 30, 2006.</text>
</section><section id="H087AC78FB0C44D11AC6BB9B1CF6DEF63"><enum>222.</enum><header>Clarification
of authority to impose price thresholds for certain lease sales</header><text display-inline="no-display-inline">Congress reaffirms the authority of the
Secretary of the Interior under section 8(a)(1)(H) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1337(a)(1)(H)) to vary, based on the price of
production from a lease, the suspension of royalties under any lease subject to
section 304 of the Outer Continental Shelf Deep Water Royalty Relief Act
(Public Law 104–58; 43 U.S.C. 1337 note).</text>
</section><section display-inline="no-display-inline" id="H8C91A5DB8F224337B42457D3A1D8A31" section-type="subsequent-section"><enum>223.</enum><header>Eligibility for new
leases and the transfer of leases; conservation of resources fees</header>
<subsection id="HAADC93CF4E0148748DF653E9FD8DE8C"><enum>(a)</enum><header>Issuance of new
leases</header>
<paragraph id="H3845FB59AE3041D2BE67EC1D258272CA"><enum>(1)</enum><header>In
general</header><text>The Secretary shall not issue any new lease that
authorizes the production of oil or natural gas in the Gulf of Mexico under the
Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) to a person
described in paragraph (2) unless—</text>
<subparagraph id="HAC77FE233A034891A9DB452671B77301"><enum>(A)</enum><text>the person has
renegotiated each covered lease with respect to which the person is a lessee,
to modify the payment responsibilities of the person to include price
thresholds that are equal to or less than the price thresholds described in
clauses (v) through (vii) of section 8(a)(3)(C) of the Outer Continental Shelf
Lands Act (43 U.S.C. 1337(a)(3)(C)); or</text>
</subparagraph><subparagraph id="H8511FE04C7934AB08BE0DA1C112E7E6"><enum>(B)</enum><text>the person
has—</text>
<clause id="HE5D9FBDC63C546F092ED8FCA28DBB234"><enum>(i)</enum><text>paid
all fees established by the Secretary under subsection (b) that are due with
respect to each covered lease for which the person is a lessee; or</text>
</clause><clause id="HAB0FDE72FA30458898D2352D00A3C0AB"><enum>(ii)</enum><text>entered into an
agreement with the Secretary under which the person is obligated to pay such
fees.</text>
</clause></subparagraph></paragraph><paragraph id="H9FB5C16B046F491B9B1B9CE9C4B176C5"><enum>(2)</enum><header>Persons
described</header><text>A person referred to in paragraph (1) is a person
that—</text>
<subparagraph id="HC2B5F0F8F1A446B2BD87F142F282F02C"><enum>(A)</enum><text>is a lessee
that—</text>
<clause id="H7C1789C25DFA442EABFAD9A7BD2C6D72"><enum>(i)</enum><text>holds a covered
lease on the date on which the Secretary considers the issuance of the new
lease; or</text>
</clause><clause id="HA1B6DDE7864F4FC8BDE9BCDEAF098FD3"><enum>(ii)</enum><text>was
issued a covered lease before the date of enactment of this Act, but
transferred the covered lease to another person or entity (including a
subsidiary or affiliate of the lessee) after the date of enactment of this Act;
or</text>
</clause></subparagraph><subparagraph id="H4736C5E89A2849FE9D12176ED10014F3"><enum>(B)</enum><text>any other person
or entity who has any direct or indirect interest in, or who derives any
benefit from, a covered lease;</text>
</subparagraph></paragraph><paragraph id="HC010DD7DC9494C5E814EB58700763C1E"><enum>(3)</enum><header>Multiple
lessees</header>
<subparagraph id="HCF01C13E281F4DDE9DCD03064594AC9"><enum>(A)</enum><header>In
general</header><text>For purposes of paragraph (1), if there are multiple
lessees that own a share of a covered lease, the Secretary may implement
separate agreements with any lessee with a share of the covered lease that
modifies the payment responsibilities with respect to the share of the lessee
to include price thresholds that are equal to or less than the price thresholds
described in clauses (v) through (vii) of section 8(a)(3)(C) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)).</text>
</subparagraph><subparagraph id="H2D32DECAD77A48A3A67EDBDD3CFE287D"><enum>(B)</enum><header>Treatment of
share as covered lease</header><text>Beginning on the effective date of an
agreement under subparagraph (A), any share subject to the agreement shall not
constitute a covered lease with respect to any lessees that entered into the
agreement.</text>
</subparagraph></paragraph></subsection><subsection display-inline="no-display-inline" id="H7E06789FE41B49FDAA31B2E97F375E3F"><enum>(b)</enum><header>Conservation of
resources fees</header>
<paragraph id="H260A4F95063046D5A550F42CE52D0053"><enum>(1)</enum><header>In
general</header><text>Not later than 60 days after the date of enactment of
this Act, the Secretary of the Interior by regulation shall establish—</text>
<subparagraph id="HAAA13907DF9B4A2B846BFA99C8281366"><enum>(A)</enum><text>a conservation of
resources fee for producing Federal oil and gas leases in the Gulf of Mexico;
and</text>
</subparagraph><subparagraph id="HBB47A8AFFFD245ED96AF20B2E478D1AB"><enum>(B)</enum><text>a conservation of
resources fee for nonproducing Federal oil and gas leases in the Gulf of
Mexico.</text>
</subparagraph></paragraph><paragraph id="HF06CE5BCAF16452D96A7794CED50EE15"><enum>(2)</enum><header>Producing lease
fee terms</header><text>The fee under paragraph (1)(A)—</text>
<subparagraph id="HC9EB1A03305D49478FB9DCF1B3000641"><enum>(A)</enum><text>subject to
subparagraph (C), shall apply to covered leases that are producing
leases;</text>
</subparagraph><subparagraph id="H070748F261134961A1916B4FF62D081F"><enum>(B)</enum><text display-inline="yes-display-inline">shall be set at $9 per barrel for oil and
$1.25 per million Btu for gas, respectively, in 2005 dollars; and</text>
</subparagraph><subparagraph id="H1385884A94014030B78C724DEA27573B"><enum>(C)</enum><text display-inline="yes-display-inline">shall apply only to production of oil or
gas occurring—</text>
<clause id="H8EE25BF4D0344F47BC20BDC5682090BC"><enum>(i)</enum><text>in
any calendar year in which the arithmetic average of the daily closing prices
for light sweet crude oil on the New York Mercantile Exchange (NYMEX) exceeds
$34.73 per barrel for oil and $4.34 per million Btu for gas in 2005 dollars;
and</text>
</clause><clause id="H4C075E858E5340B4B84735004C7CBE80"><enum>(ii)</enum><text>on
or after October 1, 2006.</text>
</clause></subparagraph></paragraph><paragraph id="HA51FFEBBEFDD4425B82B77C700E2136D"><enum>(3)</enum><header>Nonproducing
lease fee terms</header><text>The fee under paragraph (1)(B)—</text>
<subparagraph id="H1E0B2E1342EE4FB2BC34922DEFDD6EEB"><enum>(A)</enum><text display-inline="yes-display-inline">subject to subparagraph (C), shall apply to
leases that are nonproducing leases;</text>
</subparagraph><subparagraph id="HBE31D6FE69BB4CDD80E1D188B200A1A3"><enum>(B)</enum><text>shall be set at
$3.75 per acre per year in 2005 dollars; and</text>
</subparagraph><subparagraph id="H7C3C8E2129ED45DDA179962D7881CAC7"><enum>(C)</enum><text>shall apply on and
after October 1, 2006.</text>
</subparagraph></paragraph><paragraph id="HF7415C937A9540898F00753FD82C7819"><enum>(4)</enum><header>Treatment of
receipts</header><text>Amounts received by the United States as fees under this
subsection shall be treated as offsetting receipts.</text>
</paragraph></subsection><subsection commented="no" id="H54E9E0D1C1E34C92A0A3EA322C41144"><enum>(c)</enum><header>Transfers</header><text>A
lessee or any other person who has any direct or indirect interest in, or who
derives a benefit from, a lease shall not be eligible to obtain by sale or
other transfer (including through a swap, spinoff, servicing, or other
agreement) any covered lease, the economic benefit of any covered lease, or any
other lease for the production of oil or natural gas in the Gulf of Mexico
under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.),
unless—</text>
<paragraph commented="no" id="H1193E24EBA21443D86D17E7FE4AF0073"><enum>(1)</enum><text>the lessee or
other person has—</text>
<subparagraph commented="no" id="H74BB42AB6D2645F49CE8DB66E5353660"><enum>(A)</enum><text>renegotiated all
covered leases of the lessee or other person; and</text>
</subparagraph><subparagraph commented="no" id="HDAFF0F883111409FBCEEB8E713C30999"><enum>(B)</enum><text>entered into an
agreement with the Secretary to modify the terms of all covered leases of the
lessee or other person to include limitations on royalty relief based on market
prices that are equal to or less than the price thresholds described in clauses
(v) through (vii) of section 8(a)(3)(C) of the Outer Continental Shelf Lands
Act (43 U.S.C. 1337(a)(3)(C)); or</text>
</subparagraph></paragraph><paragraph commented="no" id="HF0136E5BCE3747378BFFB3074EF67DA7"><enum>(2)</enum><text>the lessee or
other person has—</text>
<subparagraph id="HFECACE90863F417A98A53F86B132C4EE"><enum>(A)</enum><text>paid all fees
established by the Secretary under subsection (b) that are due with respect to
each covered lease for which the person is a lessee; or</text>
</subparagraph><subparagraph id="HC28A5F1A12A9454895CA6293BAA360D7"><enum>(B)</enum><text>entered into an
agreement with the Secretary under which the person is obligated to pay such
fees.</text>
</subparagraph></paragraph></subsection><subsection id="H28056D70F9424C3883BB00F283EAF784"><enum>(d)</enum><header>Definitions</header><text>In
this section—</text>
<paragraph id="H6B7022DD023F4F88884D85A2FBEE739"><enum>(1)</enum><header>Covered
lease</header><text>The term <term>covered lease</term> means a lease for oil
or gas production in the Gulf of Mexico that is—</text>
<subparagraph id="HD3111832ADFC4FB183991C97CE29573B"><enum>(A)</enum><text>in existence on
the date of enactment of this Act;</text>
</subparagraph><subparagraph id="HE1B152E99BBE47E793F828909261B1FF"><enum>(B)</enum><text>issued by the
Department of the Interior under section 304 of the Outer Continental Shelf
Deep Water Royalty Relief Act (43 U.S.C. 1337 note; Public Law 104–58);
and</text>
</subparagraph><subparagraph id="H240028E59DD0447F9818FAB8DBFE5F64"><enum>(C)</enum><text>not subject to
limitations on royalty relief based on market price that are equal to or less
than the price thresholds described in clauses (v) through (vii) of section
8(a)(3)(C) of the Outer Continental Shelf Lands Act (43 U.S.C.
1337(a)(3)(C)).</text>
</subparagraph></paragraph><paragraph id="H7AC3DCB1EFC84497918BEBFD6D161CA8"><enum>(2)</enum><header>Lessee</header><text>The
term <term>lessee</term> includes any person or other entity that controls, is
controlled by, or is in or under common control with, a lessee.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H335DE629E4834483B4C8DAD2064D5CC"><enum>(3)</enum><header>Secretary</header><text>The
term <term>Secretary</term> means the Secretary of the Interior.</text>
</paragraph></subsection></section><section id="HF0E93FAC9C884ECA90A1D196A7BDA0C6"><enum>224.</enum><header>Repeal of
certain taxpayer subsidized royalty relief for the oil and gas
industry</header>
<subsection id="HE48341FA9E934C879896B3D9527FEC9C"><enum>(a)</enum><header>Repeal of
provisions of Energy Policy Act of 2005</header><text display-inline="yes-display-inline">The following provisions of the Energy
Policy Act of 2005 (Public Law 109–58) are repealed:</text>
<paragraph id="H03660BC57AC947A49BF689F6904E19F1"><enum>(1)</enum><text>Section 344 (42
U.S.C. 15904; relating to incentives for natural gas production from deep wells
in shallow waters of the Gulf of Mexico).</text>
</paragraph><paragraph id="HFD097EEAF10A4B508C374BB6E23337D"><enum>(2)</enum><text>Section 345 (42
U.S.C. 15905; relating to royalty relief for deep water production in the Gulf
of Mexico).</text>
</paragraph><paragraph id="HEED7904D373247EC8E614B5C08CDEFD1"><enum>(3)</enum><text display-inline="yes-display-inline">Subsection (i) of section 365 (42 U.S.C.
15924; relating to the prohibition on drilling-related permit application cost
recovery fees).</text>
</paragraph></subsection><subsection id="HCA4F8C7CF83B4A2A9404B37CDEA400B9"><enum>(b)</enum><header>Provisions
relating to Planning Areas offshore Alaska</header><text display-inline="yes-display-inline">Section 8(a)(3)(B) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1337(a)(3)(B)) is amended by striking <quote>and in
the Planning Areas offshore Alaska</quote> after <quote>West
longitude</quote>.</text>
</subsection><subsection id="HBE69F0249B0D405B9BC76D0F07FEE99"><enum>(c)</enum><header>Provisions
relating to Naval Petroleum Reserve in Alaska</header><text display-inline="yes-display-inline">Section 107 of the Naval Petroleum Reserves
Production Act of 1976 (as transferred, redesignated, moved, and amended by
section 347 of the Energy Policy Act of 2005 (119 Stat. 704)) is
amended—</text>
<paragraph id="HA770BF125B3B44CAA20041CC13F498A4"><enum>(1)</enum><text>in subsection (i)
by striking paragraphs (2) through (6); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF75AD770508B4A1FAE790080FDB1AF4B"><enum>(2)</enum><text>by striking
subsection (k).</text>
</paragraph></subsection></section></subtitle><subtitle id="idD36B3A524E2F4E3FA8155AC33225E9AB"><enum>D</enum><header>Reduction in
incentives to guzzle gas</header>
<section commented="no" display-inline="no-display-inline" id="id88582CFADB2A47198F8460B6D1849D53" section-type="subsequent-section"><enum>231.</enum><header>Reducing incentives
to guzzle gas</header>
<subsection commented="no" display-inline="no-display-inline" id="ID95E2743BBBC74DC68FEAB8B95E8F44D1"><enum>(a)</enum><header>Inclusion of
heavy vehicles in limitation on depreciation of certain luxury
automobiles</header>
<paragraph commented="no" display-inline="no-display-inline" id="id6CB20632728641DC844DA7E82EBD8432"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 280F(d)(5)(A)
of the Internal Revenue Code of 1986 (defining passenger automobile) is
amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id538B7263B8E24E47A57D68FE5D207113"><enum>(A)</enum><text display-inline="yes-display-inline">by striking clause (ii) and inserting the
following new clause:</text>
<quoted-block display-inline="no-display-inline" id="id67461FECFE6140BBAEE8FBDCEA6F06C8" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="idC1F0F1721CD149D0AB4CB7876A137130"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="idB72254E73F4E4E258664F32498E21FF1"><enum>(I)</enum><text display-inline="yes-display-inline">which is rated at 6,000 pounds unloaded
gross vehicle weight or less, or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID76E8EDD01F0B491FACA5E8518717F7A5" indent="up1"><enum>(II)</enum><text display-inline="yes-display-inline">which is rated at more than 6,000 pounds
but not more than 14,000 pounds gross vehicle
weight.</text>
</subclause></clause><after-quoted-block>,
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idE07FC1D527C54EC6813778FA8A5D165C"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>clause (ii)</quote> in
the second sentence and inserting <quote>clause (ii)(I)</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idC881E8C5E9E043CF8F227E2787D59D44"><enum>(2)</enum><header>Exception for
vehicles used in farming business</header><text display-inline="yes-display-inline">Section 280F(d)(5)(B) of such Code
(relating to exception for certain vehicles) is amended by striking
<quote>and</quote> at the end of clause (ii), by redesignating clause (iii) as
clause (iv), and by inserting after clause (ii) the following new
clause:</text>
<quoted-block display-inline="no-display-inline" id="id628E595D54F64C498CC33345C86033FD" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="idCFF33425C441419AB23CE8AA540273C2"><enum>(iii)</enum><text display-inline="yes-display-inline">any vehicle used in a farming business (as
defined in section 263A(e)(4),
and</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID4B462A9C8D9742CA9C3B0F27A7015470"><enum>(3)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this subsection shall apply to property placed in service after the date of the
enactment of this Act.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idCC4EAAB3200A4E838A5295791DBE9AB9"><enum>(b)</enum><header>Updated
depreciation deduction limits</header>
<paragraph commented="no" display-inline="no-display-inline" id="id3C73F501E4414C8BAAD636903C681C2F"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Subparagraph (A) of
section 280F(a)(1) of the Internal Revenue Code of 1986 (relating to limitation
on amount of depreciation for luxury automobiles) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="id9691F436EE3B4E98961B9898B863606E" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="idD2249D1DD2AC472E9ADCC1354738C615"><enum>(I)</enum><header>Limitation</header><text display-inline="yes-display-inline">The amount of the depreciation deduction
for any taxable year shall not exceed for any passenger automobile—</text>
<clause commented="no" display-inline="no-display-inline" id="id402DF6AC79224E87AE3E89F0D5F1A61B"><enum>(i)</enum><text display-inline="yes-display-inline">for the 1st taxable year in the recovery
period—</text>
<subclause commented="no" display-inline="no-display-inline" id="idF6C3EDF9932349B0A9C2A620D9B02C86"><enum>(I)</enum><text display-inline="yes-display-inline">described in subsection (d)(5)(A)(ii)(I),
$4,000,</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id8494D77021A645AAB2ADDF91E068BE5B"><enum>(II)</enum><text display-inline="yes-display-inline">described in the second sentence of
subsection (d)(5)(A), $5,000, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idDF9BC906D17A4346A6157A20F61AC4F6"><enum>(III)</enum><text display-inline="yes-display-inline">described in subsection (d)(5)(A)(ii)(II),
$6,000,</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="id640D25B1105A478E930B7464C948F0C5"><enum>(ii)</enum><text display-inline="yes-display-inline">for the 2nd taxable year in the recovery
period—</text>
<subclause commented="no" display-inline="no-display-inline" id="id557AABB66B8D4238B6B08109B08C6BEE"><enum>(I)</enum><text display-inline="yes-display-inline">described in subsection (d)(5)(A)(ii)(I),
$6,400,</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id23BCA16672374EC5A529BCC60BC7B643"><enum>(II)</enum><text display-inline="yes-display-inline">described in the second sentence of
subsection (d)(5)(A), $8,000, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idA1B56233B3A4426C8929EF4A175BCF78"><enum>(III)</enum><text display-inline="yes-display-inline">described in subsection (d)(5)(A)(ii)(II),
$9,600,</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="id2C193CF687C94D7CA38840BACD8B403A"><enum>(iii)</enum><text display-inline="yes-display-inline">for the 3rd taxable year in the recovery
period—</text>
<subclause commented="no" display-inline="no-display-inline" id="idACA969B8BD734254AA169FCC72B9BD9A"><enum>(I)</enum><text display-inline="yes-display-inline">described in subsection (d)(5)(A)(ii)(I),
$3,850,</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id6FE2C17B3AD34AB4BE8EDA33C6DE16C2"><enum>(II)</enum><text display-inline="yes-display-inline">described in the second sentence of
subsection (d)(5)(A), $4,800, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id86D6D14BB5814B39BD0CF4D63B9F51E7"><enum>(III)</enum><text display-inline="yes-display-inline">described in subsection (d)(5)(A)(ii)(II),
$5,775, and</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="id8E2E368202984487B6E558BA7BD94299"><enum>(iv)</enum><text display-inline="yes-display-inline">for each succeeding taxable year in the
recovery period—</text>
<subclause commented="no" display-inline="no-display-inline" id="idC657DB42B76C42B680E285B2D78F98E7"><enum>(I)</enum><text display-inline="yes-display-inline">described in subsection (d)(5)(A)(ii)(I),
$2,325,</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idD7AED34E7DC74E61838C1FFDADF9B552"><enum>(II)</enum><text display-inline="yes-display-inline">described in the second sentence of
subsection (d)(5)(A), $2,900, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id5ED8B7A916EE4713A04D35467A037538"><enum>(III)</enum><text display-inline="yes-display-inline">described in subsection (d)(5)(A)(ii)(II),
$3,475.</text>
</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idBFE5693CB731487A8A30C7B1881ED30E"><enum>(2)</enum><header>Years after
recovery period</header><text display-inline="yes-display-inline">Section
280F(a)(1)(B)(ii) of such Code is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id1D3F09FB9B68482EBD792340AA93BD16" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="id2E111BDCFBF548F2B33BE6311A258CEF"><enum>(ii)</enum><header>Limitation</header><text display-inline="yes-display-inline">The amount treated as an expense under
clause (i) for any taxable year shall not exceed for any passenger
automobile—</text>
<subclause commented="no" display-inline="no-display-inline" id="idFD095F2D68694CB9B9875F286AC054B4"><enum>(I)</enum><text display-inline="yes-display-inline">described in subsection (d)(5)(A)(ii)(I),
$2,325,</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id80CDE3CF7B05479CB3F68E99E8290B5C"><enum>(II)</enum><text display-inline="yes-display-inline">described in the second sentence of
subsection (d)(5)(A), $2,900, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idCCB04244EC6546D9A4180355C7B25F23"><enum>(III)</enum><text display-inline="yes-display-inline">described in subsection (d)(5)(A)(ii)(II),
$3,475.</text>
</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idF6611487AC6A44FB9E1FC4C9528ED80D"><enum>(3)</enum><header>Inflation
adjustment</header><text display-inline="yes-display-inline">Section 280F(d)(7)
of such Code (relating to automobile price inflation adjustment) is
amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id520838CEC822476B82329CC42968754B"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>after 1988</quote> in
subparagraph (A) and inserting <quote>after 2007</quote>, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id9E77200586D3417CA32EF8EAA8CBB5B2"><enum>(B)</enum><text display-inline="yes-display-inline">by striking subparagraph (B) and inserting
the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="idD8BF2ED7781A44F2A56C2802FB04C45D" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="idEA8005C26B324A70BF4332E36355EA5D"><enum>(B)</enum><header>Automobile
price inflation adjustment</header><text display-inline="yes-display-inline">For purposes of this paragraph—</text>
<clause commented="no" display-inline="no-display-inline" id="idD3D36BF1E60B401B84CA57D3083F68F3"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">The automobile price
inflation adjustment for any calendar year is the percentage (if any) by
which—</text>
<subclause commented="no" display-inline="no-display-inline" id="idA19E3DAC66D6441CA9672FF3BD49624F"><enum>(I)</enum><text display-inline="yes-display-inline">the average wage index for the preceding
calendar year, exceeds</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id91685C4E11444194BD457F17E8B92761"><enum>(II)</enum><text display-inline="yes-display-inline">the average wage index for 2006.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="id9AA5B0F2FAD347B982DCB1482A9B9299"><enum>(ii)</enum><header>Average wage
index</header><text display-inline="yes-display-inline">The term <term>average
wage index</term> means the average wage index published by the Social Security
Administration.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idD67FF266DB544E14BB523311C6768FB9"><enum>(4)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this subsection shall apply to property placed in service after the date of the
enactment of this Act.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id2BA7DDE8388548F4B61F8A21C2EE7B02"><enum>(c)</enum><header>Expensing
limitation for farm vehicles</header>
<paragraph commented="no" display-inline="no-display-inline" id="idADD53E354190412E88F29CE81C0CA5A2"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Paragraph (6) of
section 179(b) of the Internal Revenue Code of 1986 (relating to limitations)
is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idC2EA3669CBF14F61AC9DBD3644D2F32E" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="id0D67EE0E0BE248A9880D34BEDD018CD2"><enum>(6)</enum><header>Limitation on
cost taken into account for farm vehicles</header><text display-inline="yes-display-inline">The cost of any vehicle described in
section 280F(d)(5)(B)(iii) for any taxable year which may be taken into account
under this section shall not exceed
$30,000.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id6142C6FF2E01475CACA16C4B3D2491AF"><enum>(2)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this subsection shall apply to property placed in service after the date of the
enactment of this Act.</text>
</paragraph></subsection></section></subtitle>