I 111th CONGRESS 1st Session H. R. 3135 IN THE HOUSE OF REPRESENTATIVES July 8, 2009 Mr. Walz (for himself, Mr. Peterson, Mr. Oberstar, Mr. McIntyre, Mr. Perriello, Mr. Boswell, Ms. McCollum, and Mr. Rodriguez) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to provide additional incentives for facilities producing electricity from wind.

1.

Exemption from passive activity limitations for qualified wind facilities

(a)

In general

Section 469 of the Internal Revenue Code of 1986 (relating to passive activity losses and credits limited) is amended by redesignating subsections (l) and (m) as subsections (m) and (n), respectively, and by inserting after subsection (k) the following new subsection: (l)

Exception for qualified wind facilities

(1)

In general

In the case of any natural person, subsection (a) shall not apply to that portion of the passive activity loss or the deduction equivalent (within the meaning of subsection (j)(5)) of the passive activity credit for any taxable year which is attributable to any interest of such person in a facility described in section 45(d)(1) (relating to wind facility). (2)

Special rule for estates

In the case of taxable years of an estate ending less than 2 years after the date of the death of the decedent, this subsection shall apply to any interest in a facility described in section 45(d)(1) (relating to wind facility) held by the decedent on the date of his death. . (b)

Effective date

The amendments made by this section shall apply to losses and credits taken into account in taxable years beginning after the date of the enactment of this Act.

2.

Credit for electricity produced from qualified wind facilities allowed against alternative minimum tax

(a)

In general

Subparagraph (B) of section 38(c)(4) of the Internal Revenue Code of 1986 (relating to specified credits) is amended— (1)by striking and at the end of clause (vii), (2)by inserting (other than a facility described in clause (ix)) after facility in clause (iii)(I), (3)by striking the period at the end of clause (viii) and inserting , and, and (4)by adding at the end the following new clause: (ix)the credit determined under section 45 to the extent that such credit is attributable to electricity produced at a facility described in section 45(d)(1) (relating to wind facility). . (b)

Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.