1.Investment tax credit for
biomass heating property
(a)Subparagraph (A) of
section 48(a)(3) of the Internal Revenue Code of 1986 (defining energy
property) is amended by striking or
at the end of clause (vi),
by inserting or
at the end of clause (vii), and by inserting
after clause (vii) the following new clause:
(viii)biomass heating property, including boilers
or furnaces which operate at output efficiencies greater than 75 percent and
which provide thermal energy in the form of heat, hot water, or steam for space
heating, air conditioning, domestic hot water, or industrial process heat, but
only with respect to periods ending before January 1,
2014,
.
(b)Clause (i) of section
48(a)(2)(A) of such Code is amended by striking and
at the end
of subclause (III) and by inserting after subclause (IV) the following new
subclause:
(V)energy property described in paragraph
(3)(A)(viii),
and
.
(c)The amendments made by
this section 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).
2.Repeal of exception
from passive activity rules for working interests in oil or gas
property
(a)Subsection (c) of section 469 of the Internal Revenue
Code of 1986 is amended by striking paragraph (3).
(b)Paragraph (4) of section 469 (c) of such Code is
amended—
(1)by striking
Paragraphs (2) and (3)
and inserting Paragraph
(2)
, and
(2)by striking
Paragraphs
(2) and
(3)
in the heading
and inserting Paragraph
(2)
.
(c)The amendments made by
this section shall apply to taxable years beginning after the date of the
enactment of this Act.