I 111th CONGRESS 1st Session H. R. 4149 IN THE HOUSE OF REPRESENTATIVES November 19, 2009 Ms. Markey of Colorado (for herself and Mr. Paulsen) 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 a renewable electricity integration credit for a utility that purchases or produces renewable power.

1.

Renewable electricity integration credit

(a)

In general

Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

45R.

Renewable electricity integration credit

(a)

General rule

For purposes of section 38, the renewable electricity integration credit for any taxable year is an amount equal to the product of— (1)the intermittent renewable portfolio factor of an eligible taxpayer, multiplied by (2)the number of kilowatt hours of renewable electricity purchased or produced by such taxpayer and sold by such taxpayer to an unrelated person during the taxable year. (b)

Intermittent renewable portfolio factor

The intermittent renewable portfolio factor for an eligible taxpayer shall be determined as follows: In the case of an eligible taxpayer whose intermittent renewable electricity percentage is:For taxable years beginning before 2012, the intermittent renewable portfolio factor is:For taxable years beginning in or after 2012, the intermittent renewable portfolio factor is: Less than 4 percent0 cents0 cents At least 4 percent but less than 8 percent0.10 cents0 cents At least 8 percent but less than 12 percent0.20 cents0.20 cents At least 12 percent but less than 16 percent0.30 cents0.30 cents At least 16 percent but less than 20 percent0.40 cents 0.40 cents At least 20 percent but less than 24 percent0.50 cents0.50 cents Equal to or greater than 24 percent0.60 cents0.60 cents (c)

Definitions

For purposes of this section— (1)

Eligible taxpayer

The term eligible taxpayer means an electric utility (as defined in section 3(22) of the Federal Power Act (16 U.S.C. 796(22)). (2)

Renewable electricity

The term renewable electricity means electricity generated by— (A)a facility using wind to produce such electricity, and (B)a facility using solar energy to generate such electricity. (3)

Intermittent renewable electricity percentage

The term intermittent renewable electricity percentage means the percentage of an electric utility's total sales to retail load customers that is derived from renewable electricity, whether purchased or produced by the taxpayer.

. (b)

Credit made part of general business credit

Subsection (b) of section 38 of such Code is amended— (1)by striking plus at the end of paragraph (34), (2)by striking the period at the end of paragraph (35) and inserting , plus, and (3)by adding at the end the following new paragraph: (36)the renewable electricity integration credit determined under section 45R(a). . (c)

Specified credit

Subparagraph (B) of section 38(c)(4) of such Code is amended— (1)by striking and at the end of clause (vii), (2)by striking the period at the end of clause (viii), and inserting , and, and (3)by adding at the end the following new clause: (ix)the credit determined under section 45R. . (d)

Clerical amendment

The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item: Sec. 45R. Renewable electricity integration credit. . (e)

Effective date

The amendments made by this section shall apply to electricity produced or purchased after December 31, 2009.