I 111th CONGRESS 1st Session H. R. 3834 IN THE HOUSE OF REPRESENTATIVES October 15, 2009 Mr. Higgins (for himself, Mr. Hinchey, Mr. Massa, Ms. Moore of Wisconsin, Mr. Maffei, Mr. Lee of New York, and Mr. Holt) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To amend the Internal Revenue Code of 1986 to enhance incentives for renewable energy development in high job-loss zones in metropolitan and micropolitan statistical areas.

1.

Short title

This Act may be cited as the Green Energy Investment Zone Act of 2009.

2.

Increase in incentives relating to alternative energy properties in high job-loss areas

(a)

Investment tax credits (Other than qualified facilities)

Paragraph (2) of section 48(a) of the Internal Revenue Code of 1986 is amended by adding at the end the following: (C)

Special rule for energy property located in high job-loss zones

(i)

In general

In the case of any energy property placed in service in a green energy investment zone after the date of the enactment of this subparagraph, subparagraph (A) shall be applied— (I)by substituting 40 percent for 30 percent in clause (i) thereof, and (II)by substituting 20 percent for 10 percent in clause (ii) thereof. (ii)

Green energy investment zone

For purposes of paragraph (1), the term green energy investment zone means an eligible city located within a high job-loss metropolitan statistical area or a high job-loss micropolitan statistical area. (iii)

Eligible city

For purposes of clause (i)— (I)

Metropolitan statistical area

The term eligible city means, with respect to a metropolitan statistical area, any city in such area which has a population of at least 50,000. (II)

Micropolitan statistical area

The term eligible city means, with respect to a micropolitan statistical area, any city in such area which has a population of at least 10,000. For purposes of this subparagraph, population shall be determined using the 2000 census.(D)

High-job loss

For purposes of subparagraph (C)— (i)

In general

The term high-job loss with respect to a metropolitan or a micropolitan statistical area, as the case may be, means an area designated by the Secretary as being among the lowest 1/3 of all metropolitan or micropolitan statistical areas, as the case may be, on the basis of— (I)the economic conditions referred to in clause (ii), (II)the residential economic well-being factors referred to in clause (iii), and (III)a comparison of changes from 1990 and 2000 (on the basis of the 1990 and 2000 censuses) regarding— (aa)employment, (bb)wages, (cc)gross metropolitan product or gross micropolitan product, as the case may be, and (dd)gross metropolitan product per job or gross micropolitan product per job, as the case may be. (ii)

Economic conditions

The economic conditions referred to in this clause are growth in— (I)employment, (II)annual payroll, and (III)business establishments. (iii)

Residential economic well-being factors

The residential economic well-being factors referred to in the clause are— (I)per capita income, (II)median household income, (III)poverty rate, (IV)unemployment rate, and (V)labor force participation rate. . (b)

Election To treat qualified facilities as energy property

Paragraph (5) of section 48(a) of such Code is amended by adding at the end the following: (E)

Special rule for facilities located in high job-loss zones

In the case of any qualified investment credit facility placed in service in a green energy investment zone (as defined in paragraph (2)(C)(ii)) after the date of the enactment of this subparagraph, subparagraph (A) shall be applied by substituting 40 percent for 30 percent in clause (ii) thereof. . (c)

Electricity produced from certain renewable resources, etc

Section 45 of such Code is amended by adding at the end the following: (f)

Special rule for facilities located in high job-Loss zones

In the case of electricity produced by a qualified facility placed in service in a high job loss metropolitan statistical area or micropolitan statistical area after the date of the enactment of this subsection, the amount in effect under subsection (a)(1) for a taxable year (without regard to this subsection) shall be increased by 0.5 cents. For the preceding sentence, the term high job loss with respect to a metropolitan statistical area and a micropolitan statistical area has the meaning given such term by section 48(a)(2)(D). . (d)

Grants for Specified Energy Property In Lieu of Production Credit

Subsection (b) of section 1603 of the American Recovery and Reinvestment Tax Act of 2009 is amended by adding at the end the following new paragraph: (4)

Special rule for specified energy property located in high job-loss zones

In the case of any specified energy property placed in service in a green energy investment zone (as defined in section 48(a)(2)(C)(ii)) after the date of the enactment of this paragraph, paragraph (2) shall be applied— (A)by substituting 40 percent for 30 percent in subparagraph (A) thereof, and (B)by substituting 20 percent for 10 percent in subparagraph (B) thereof. . (e)

Nonbusiness energy property

(1)

In general

Subsection (a) of section 25C of such Code is amended by adding at the end the following flush sentence: In the case of any such improvement or property which was manufactured in a green energy investment zone (as defined in section 48(a)(2)(C)(ii)) after the date of the enactment of this sentence, the preceding sentence shall be applied by substituting 40 percent for 30 percent.. (2)

Increase in limitation

Subsection (b) of section 25C of such Code is amended by striking $1,500 and inserting $2,000. (f)

Residential energy efficient property

(1)

In general

Subsection (a) of section 25D of such Code is amended by adding at the end the following flush sentence: In the case of property manufactured in a green energy investment zone (as defined in section 48(a)(2)(C)(ii)) after the date of the enactment of this sentence, the preceding sentence shall be applied by substituting 40 percent for 30 percent each place it appears.. (2)

Increase in limitation

Paragraph (1) of section 25D(b) of such Code is amended by striking $500 and inserting $750. (g)

Qualifying advanced energy project credit

Paragraph (3) of section 48C(d) of such Code is amended by striking and at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting , and, and by inserting after subparagraph (B) the following: (C)shall take into consideration whether the project is located in a green energy investment zone (as defined in section 48(a)(2)(C)(ii)). . (h)

Effective date

(1)

In general

The amendments made by this section shall take effect on the date of the enactment of this Act. (2)

Increase in limitations

The amendments made by subsections (e)(2) and (f)(2) shall apply to taxable years beginning after December 31, 2008.