II 111th CONGRESS 1st Session S. 2826 IN THE SENATE OF THE UNITED STATES December 3, 2009 Mr. Grassley introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to extend the renewable production credit for wind and open-loop biomass facilities, and for other purposes.

1.

Short title

This Act may be cited as the Clean Renewable Energy Advancement Tax Extension Jobs Act of 2009 or the CREATE Jobs Act.

2.

Extension of renewable production credit for wind and open-loop biomass facilities

(a)

Wind

Section 45(d)(1) of the Internal Revenue Code of 1986 is amended by striking before January 1, 2013 and inserting before January 1, 2017. (b)

Open-Loop biomass

Section 45(d)(3) of the Internal Revenue Code of 1986 is amended by striking before January 1, 2014 both places it appears and inserting before January 1, 2017. (c)

Effective date

The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.

3.

Increased limitation on issuance of new clean renewable energy bonds

(a)

Additional limitation

Section 54C(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (5)

Further increase in limitation

The national new clean renewable energy bond limitation shall be increased by $2,200,000,000. Such increase shall be allocated by the Secretary consistent with the rules of paragraphs (2) and (3). . (b)

Nonapplication of certain labor standards To further increase in limitation

Section 1601(1) of the American Recovery and Reinvestment Tax Act of 2009 is amended by inserting pursuant to section 54C(c)(4) of such Code after Act,. (c)

Nonapplication of certain arbitrage and issuance rules

Section 54C of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (e)

Special rules

For purposes of this section— (1)

Limited arbitrage

Section 54A(d)(4) shall apply without regard to subparagraph (B) or (C) thereof. (2)

No credit stripping

Section 54A(i) shall not apply. . (d)

Effective date

The amendments made by this section shall apply to bonds issued after the date of the enactment of this Act.

4.

Additional first-year depreciation for 50 percent of the basis of certain qualified property

(a)

In general

Paragraph (2) of section 168(k) of the Internal Revenue Code of 1986, as amended by the American Recovery and Reinvestment Tax Act of 2009, is amended— (1)by striking January 1, 2011 and inserting January 1, 2012, and (2)by striking January 1, 2010 each place it appears and inserting January 1, 2011. (b)

Conforming amendments

(1)The heading for subsection (k) of section 168 of the Internal Revenue Code of 1986, as amended by the American Recovery and Reinvestment Tax Act of 2009, is amended by striking January 1, 2010 and inserting January 1, 2011. (2)The heading for clause (ii) of section 168(k)(2)(B) of such Code, as so amended, is amended by striking Pre-January 1, 2010 and inserting Pre-January 1, 2011. (3)Subparagraph (B) of section 168(l)(5) of such Code, as so amended, is amended by striking January 1, 2010 and inserting January 1, 2011. (4)Subparagraph (C) of section 168(n)(2) of such Code, as so amended, is amended by striking January 1, 2010 and inserting January 1, 2011. (5)Subparagraph (D) of section 1400L(b)(2) of such Code is amended by striking January 1, 2010 and inserting January 1, 2011. (6)Subparagraph (B) of section 1400N(d)(3) of such Code, as so amended, is amended by striking January 1, 2010 and inserting January 1, 2011. (c)

Effective date

The amendments made by this section shall apply to property placed in service after December 31, 2009.