[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 3634 Introduced in Senate (IS)]

111th CONGRESS
  2d Session
                                S. 3634

  To amend the Internal Revenue Code of 1986 to clarify the types of 
energy conservation subsidies provided by public utilities eligible for 
                           income exclusion.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 22, 2010

 Mr. Bingaman (for himself and Mr. Udall of New Mexico) 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 clarify the types of 
energy conservation subsidies provided by public utilities eligible for 
                           income exclusion.

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

SECTION 1. CLARIFICATION OF TYPES OF ENERGY CONSERVATION SUBSIDIES 
              PROVIDED BY PUBLIC UTILITIES ELIGIBLE FOR INCOME 
              EXCLUSION.

    (a) In General.--Section 136 of the Internal Revenue Code of 1986 
is amended by redesignating subsection (d) as subsection (e) and by 
inserting after subsection (c) the following new subsection:
    ``(d) Net Metering or Net Billing Programs; Renewable Energy 
Credits.--
            ``(1) In general.--For purposes of this section, the term 
        `subsidy' includes amounts received by a customer from a public 
        utility--
                    ``(A) to pay for electricity generated from an 
                energy conservation measure under a net metering or net 
                billing program, or
                    ``(B) to pay for renewable energy credits 
                attributable to an energy conservation measure.
            ``(2) Limitation.--The amount treated as a subsidy for any 
        taxable year by reason of paragraph (1)(B) shall not exceed an 
        amount equal to--
                    ``(A) $2,000, multiplied by
                    ``(B) the whole number of years worth of renewable 
                energy credits that are sold by the customer.
            ``(3) No basis reduction.--Subsection (b) shall not apply 
        with respect to property any portion of the basis of which is 
        attributable to an amount described in paragraph (1).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to amounts received after the date of the enactment of this Act.
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