[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4389 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 4389

 To amend the Internal Revenue Code of 1986 to allow a credit against 
  income tax to taxpayers using energy derived from biomass to power 
 domestic paper, pulp and paperboard manufacturing process facilities.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 16, 2009

    Mr. Murphy of New York 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 allow a credit against 
  income tax to taxpayers using energy derived from biomass to power 
 domestic paper, pulp and paperboard manufacturing process facilities.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Green Energy Paper Manufacturing Act 
of 2009''.

SEC. 2. CREDIT FOR USING ENERGY DERIVED FROM BIOMASS TO POWER DOMESTIC 
              PAPER, PULP AND PAPERBOARD MANUFACTURING PROCESS 
              FACILITIES.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business-related 
credits) is amended by inserting after section 45Q the following new 
section:

``SEC. 45R. ENERGY DERIVED FROM BIOMASS TO POWER DOMESTIC PAPER, PULP 
              AND PAPERBOARD MANUFACTURING PROCESS FACILITIES.

    ``(a) General Rule.--For purposes of section 38, the renewable 
green-energy pulp, paper or paperboard manufacturing credit for any 
taxable year is an amount equal to the product of--
            ``(1) $4, multiplied by
            ``(2) the number of million Btus of steam and electricity--
                    ``(A) produced by the taxpayer--
                            ``(i) from biomass fuels, and
                            ``(ii) at a qualified paper product 
                        facility (or at an energy production facility 
                        which is located in the United States and which 
                        is under contract to provide steam or 
                        electricity to any qualified paper product 
                        facility) during the 10-year period beginning 
                        on the later of the date of the enactment of 
                        this section or the date the facility was 
                        originally placed in service, and
                    ``(B) used by the taxpayer at, or provided by the 
                taxpayer to, any pulp, paper or paperboard 
                manufacturing facility located in the United States.
    ``(b) Maximum Annual Credit Per Facility.--
            ``(1) In general.--The credit determined under this section 
        for energy used during the taxable year at any qualified paper 
        product facility shall not exceed $25,000,000.
            ``(2) Coordination with advance payments.--The dollar 
        amount in paragraph (1) shall be reduced for any taxable year 
        by the aggregate of the claims made under section 6429 for 
        periods during such year with respect to such facility.
    ``(c) Denial of Double Benefit.--Btus may not be taken into account 
under subsection (a)(2) if any credit is allowed under section 40, 40A, 
45, or 6426 for the electricity generation, the feedstock, or for the 
blending of the feedstock associated with the Btus.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Biomass fuels.--
                    ``(A) In general.--The term `biomass fuels' means 
                any liquid, solid, or gaseous fuel derived from biomass 
                (as defined in section 45K(c)(3)) or from biomass 
                process residuals from recycled and other paper 
                facilities.
                    ``(B) Cofiring with fossil fuels.--In the case of 
                fossil fuel burned in conjunction with any biomass 
                fuel, only the Btus attributable to biomass fuel may be 
                taken into account under subsection (a).
            ``(2) Qualified paper product facility.--The term 
        `qualified paper product facility' means any pulp, paper, or 
        paperboard manufacturing facility--
                    ``(A) which is originally placed in service before 
                the close of the 5-year period beginning on the date of 
                the enactment of this section, and
                    ``(B) which is located in the United States.
    ``(e) Reinvestment Requirement.--
            ``(1) In general.--The tax imposed by this chapter for any 
        taxable year shall be increased by the recapture amount (if 
        any) for the 3rd preceding taxable year.
            ``(2) Recapture amount.--For purposes of paragraph (1), the 
        term `recapture amount' means, with respect to any taxable 
        year, the excess (if any) of--
                    ``(A) 50 percent of the sum of--
                            ``(i) the credit determined under this 
                        section for the taxable year, and
                            ``(ii) the aggregate payments made under 
                        section 6429 to the taxpayer for steam and 
                        electricity produced during such year, over
                    ``(B) the aggregate qualified reinvestment made by 
                the taxpayer during such year and the 3 succeeding 
                taxable years (reduced by the qualified reinvestment 
                taken into account in determining the recapture amount 
                for any prior taxable year).
            ``(3) Qualified reinvestment.--
                    ``(A) In general.--For purposes of paragraph (2), 
                the term `qualified reinvestment' means the basis of 
                renewable energy projects, energy efficiency projects 
                and other environmental improvements at facilities 
                owned by the taxpayer and located in the United States.
                    ``(B) Reduction for federal benefits.--The basis 
                otherwise taken into account under subparagraph (A) 
                shall be reduced by the aggregate of--
                            ``(i) the credits under this chapter, and
                            ``(ii) Federal grants,
                allowed or received on account of the investment.
            ``(4) When reinvestments taken into account.--
                    ``(A) In general.--Qualified reinvestment shall be 
                taken into account when the property is placed in 
                service.
                    ``(B) Election.--At the election of the taxpayer 
                with respect to any qualified reinvestment which is 
                constructed by the taxpayer--
                            ``(i) the estimated amount of such 
                        investment shall be treated as made when the 
                        physical work of such construction begins, and
                            ``(ii) proper adjustments shall be made to 
                        such amount in the taxable year in which such 
                        investment is placed in service in any case 
                        where such estimate is greater or less than the 
                        proper amount.
    ``(f) Multiple Facility Owners.--If more than 1 person has an 
ownership interest in a qualified paper product facility, the dollar 
limitation in subsection (b) shall be allocated among such persons 
under regulations prescribed by the Secretary.''.
    (b) Credit Made Part of General Business Credit and Allowable 
Against Minimum Tax.--
            (1) In general.--Subsection (b) of section 38 of such Code 
        (relating to current year business credit) is amended by 
        striking ``plus'' at the end of paragraph (34), by striking the 
        period at the end of paragraph (35) and inserting ``, plus'', 
        and by adding at the end the following new paragraph:
            ``(36) the renewable green-energy pulp, paper or paperboard 
        manufacturing credit determined under section 45R.''.
            (2) Credit allowable against minimum tax.--Subparagraph (B) 
        of section 38(c)(4) of such Code (relating to specified 
        credits) is amended by striking ``and'' at the end of clause 
        (vii), by striking the period at the end of clause (viii) and 
        inserting ``, and'', and by adding at the end the following new 
        clause:
                            ``(ix) the credit determined under section 
                        45R.''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 45Q the following new 
item:

``Sec. 45R. Energy derived from biomass to power domestic paper, pulp 
                            and paperboard manufacturing process 
                            facilities.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to energy produced after December 31, 2009, in taxable years 
ending after such date.

SEC. 3. ADVANCE PAYMENTS FOR LIQUID BIOMASS USED AS A FUEL AT PAPER 
              PRODUCT FACILITIES.

    (a) In General.--Subchapter B of chapter 65 of the Internal Revenue 
Code of 1986 (relating to abatements, credits, and refunds) is amended 
by striking section 6429 and inserting the following new section:

``SEC. 6429. ADVANCE PAYMENTS FOR LIQUID BIOMASS USED AS A FUEL AT 
              PAPER PRODUCT FACILITIES.

    ``(a) In General.--If any person uses any qualified biomass liquid 
as a fuel to produce steam or electricity for use at any pulp, paper or 
paperboard manufacturing facility located in the United States, the 
Secretary shall pay (without interest) to such person an amount equal 
to--
            ``(1) $4, multiplied by
            ``(2) the number of million Btus of steam and electricity 
        so produced.
    ``(b) Maximum Annual Payments Per Facility.--The amount paid by the 
Secretary under this section for energy used during any taxable year at 
any qualified paper product facility shall not exceed $25,000,000.
    ``(c) Qualified Biomass Liquid.--For purposes of this section, the 
term `qualified biomass liquid' means any liquid--
            ``(1) which is derived from--
                    ``(A) biomass (as defined in section 45K(c)(3)), or
                    ``(B) biomass process residuals from recycled and 
                other paper facilities if such residuals meet the test 
                of liquids set forth in ASTM D4359-90, and
            ``(2) which is produced by such person at a qualified paper 
        product facility (as defined in section 45R(d)(2)) during the 
        10-year period beginning on the later of the date of the 
        enactment of this section or the date the facility was 
        originally placed in service.
    ``(d) Time for Filing Claims; Period Covered.--
            ``(1) In general.--A claim may be filed under this section 
        by any person for any period--
                    ``(A) for which $200 or more is payable, and
                    ``(B) which is not less than 1 week.
        In the case of an electronic claim, this paragraph shall be 
        applied without regard to subparagraph (A).
            ``(2) Payment of claim.--Notwithstanding subsection (a), if 
        the Secretary has not paid pursuant to a claim filed under this 
        section within 45 days of the date of the filing of such claim 
        (20 days in the case of an electronic claim), the claim shall 
        be paid with interest from such date determined by using the 
        overpayment rate and method under section 6621.
            ``(3) Time for filing claim.--No claim filed under this 
        subsection shall be allowed unless filed on or before the last 
        day of the first quarter following the earliest quarter 
        included in the claim.
    ``(e) Cofiring With Fossil Fuels.--In the case of fossil fuel 
burned in conjunction with any qualified biomass liquid, only the Btus 
attributable to the qualified biomass liquid may be taken into account 
under subsection (a).''.
    (b) Conforming Amendments.--
            (1) The table of sections for such subchapter B is amended 
        by striking the item relating to section 6429 and inserting the 
        following new item:

``Sec. 6429. Advance payments for liquid biomass used as a fuel at 
                            paper product facilities.''.
            (2) Section 1324(b)(2) of title 31, United States Code, is 
        amended by inserting ``6429,'' after ``6428,''.
    (c) Effective Date.--The amendments made by this section shall 
apply to energy produced after December 31, 2009, in taxable years 
ending after such date.
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