1.
(a)This Act may be cited
as the Clean Energy Technology
Leadership Act of 2010
.
(b)Except
as otherwise expressly provided, whenever in this Act an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a section or other
provision, the reference shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.
(c)The table of contents of this Act is as follows:
Sec. 1. Short title,
etc.
TITLE I—Clean energy manufacturing
Sec. 101. Extension and modification of the qualifying advanced
energy project credit.
Sec. 102. Extension and modification of energy efficient
appliance credit.
Sec. 103. Enhanced deduction for production of advanced
alternative energy technology.
TITLE II—Renewable energy
Sec. 201. Elective payment for specified energy
property.
Sec. 202. Extension and expansion of new clean renewable energy
bonds.
Sec. 203. Increased research credit for energy
research.
TITLE III—Promoting conservation
Sec. 301. Extension of new energy efficient home
credit.
Sec. 302. Extension and modification of nonbusiness energy
credit.
Sec. 303. Energy efficient commercial buildings
deduction.
TITLE IV—Transportation
Sec. 401. Credit for qualified natural gas motor
vehicles.
Sec. 402. Natural gas vehicle bonds.
Sec. 403. Incentives for manufacturing facilities producing
vehicles fueled by compressed or liquified natural gas.
Sec. 404. Transportation fringe benefits.
Sec. 405. Alternative fuel vehicle refueling
property.
TITLE V—Alternative fuels
Sec. 501. Extension of incentives for biodiesel and renewable
diesel.
Sec. 502. Inclusion of algae-based biofuel in definition of
cellulosic biofuel.
TITLE VI—Other provisions
Sec. 601. Report on the utilization of tax
incentives.
<enum>I</enum><header>Clean energy
manufacturing</header>
<section id="HCBED3BC953F04904A5A8B7B61132F97B"><enum>101.</enum><header>Extension and
modification of the qualifying advanced energy project credit</header>
<subsection id="HAD01FECF902A4132A4D374BBD8CA479F"><enum>(a)</enum><header>Certain projects
eligible for credit without limitation</header>
<paragraph id="HF9AB261CE3A540D1ABA0141FC4AA40CA"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Subsection (a) of
section 48C is amended by striking <quote>an amount equal to</quote> and all
that follows and inserting</text>
<quoted-block display-inline="yes-display-inline" id="H45BC4CA58AC247F59646385AD83985DE" style="OLC">
<text>an amount equal to
the sum of—</text><paragraph id="H57F1D6CE3EDF43CFA81E66C9C9EE8A61"><enum>(1)</enum><text display-inline="yes-display-inline">30 percent of the basis of the statutory
advanced energy property placed in service by the taxpayer during such taxable
year, plus</text>
</paragraph><paragraph id="H3B7FCC44CF6043029746D0A372E1F2FC"><enum>(2)</enum><text>30 percent of the
qualified investment for such taxable year with respect to any qualifying
advanced energy project of the
taxpayer.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HDFBB0ED3F8FB4CF6ACE30BDC818B8733"><enum>(2)</enum><header>Statutory
advanced energy property</header><text>Subsection (c) of section 48C is amended
by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HF226382F7AB54FEEB77EB95AC1FD6FE6" style="OLC">
<paragraph id="HC1D3AE0815834F45B268C7E4DA5AD49C"><enum>(3)</enum><header>Statutory
advanced energy property</header>
<subparagraph id="H8497169B9ACE43BBABDE3BF5FB455846"><enum>(A)</enum><header>In
general</header><text>The term <term>statutory advanced energy property</term>
means any eligible property used exclusively to manufacture or
fabricate—</text>
<clause id="H78EEFB00C0E14AAE822B3CB1CE618BD1"><enum>(i)</enum><text>equipment which
uses solar energy to generate electricity,</text>
</clause><clause id="HE7715E8712C1455A920BF24350D669A2"><enum>(ii)</enum><text>fuel cell power
plants (as defined in section 48(c)(1)(C)), or</text>
</clause><clause id="H14CC511BEF0041C78DCFEB800CDB7F9A"><enum>(iii)</enum><text>systems for the
electro-chemical storage of electricity (other than lead-acid batteries) for
use—</text>
<subclause id="HE29508EF7C27456B8A03F304EBE725C9"><enum>(I)</enum><text>in electric or
hybrid-electric motor vehicles, or</text>
</subclause><subclause id="HE9F160D21ED04747AB7B912CA9D33F62"><enum>(II)</enum><text>in connection
with electric grids.</text>
</subclause></clause></subparagraph><subparagraph id="HA77BC19BFA134ACB915384FE14616B42"><enum>(B)</enum><header>Termination</header><text>Such
term shall not include any property for any period after December 31,
2014.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H15D288AD7C914106B19572B837EE9AD6"><enum>(3)</enum><header>Denial of double
benefit</header><text>Subsection (e) of section 48C is amended by adding at the
end the following: <quote>Statutory advanced energy property shall not be taken
into account in determining the qualified investment in any qualifying advanced
energy project.</quote>.</text>
</paragraph></subsection><subsection id="HF6E35C43C31E45D78EBB8A5DFA01CBB3"><enum>(b)</enum><header>Extension and
modification of the qualifying advanced energy project program</header>
<paragraph id="H317E99CE02CD474E87CA24F880822230"><enum>(1)</enum><header>Additional
limitation amount to be competitively allocated by Secretary</header><text display-inline="yes-display-inline">Subparagraph (B) of section 48C(d)(1) is
amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H03E90A0DDD6744C98909C8B4AF4AD069" style="OLC">
<subparagraph id="H1F7C4269E4C842C49BA927E2B2F65E90"><enum>(B)</enum><header>Limitation</header><text display-inline="yes-display-inline">The total amount of qualified investments
which may be designated under such program shall not exceed the amount which
will result in the total amount of credits allowed under such program being
equal to the sum of the following amounts:</text>
<clause id="HF10E5F84B18B4DDF8CE9DC1D0F20A03C"><enum>(i)</enum><header>2009 limitation
amount</header><text display-inline="yes-display-inline">$2,300,000,000.</text>
</clause><clause id="H365DA16FB3B849AE9692D25598E66BFD"><enum>(ii)</enum><header>2010 limitation
amount</header><text>$3,000,000,000.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H6A79A783D7404055BC7098E13A06CC73"><enum>(2)</enum><header>Manufacturing of
property used to produce composite utility poles</header><text>Clause (i) of
section 48C(c)(1)(A) is amended by striking <quote>or</quote> at the end of
subclause (VI), by redesignating subclause (VII) as subclause (VIII), and by
inserting after subclause (VI) the following new subclause:</text>
<quoted-block display-inline="no-display-inline" id="H7E2C3FF3551D43468899487BCD982488" style="OLC">
<subclause id="H7DB51DAE34D8470FB11C7B4E084C0914"><enum>(VII)</enum><text display-inline="yes-display-inline">utility poles or supports made from
composite materials which are comprised of at least 15 percent recycled
materials and are fully
recyclable,</text>
</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HA57FFE80037F44778A7B538E4F6DACA1"><enum>(3)</enum><header>Preference in
selection criteria for manufacturing</header><text>Paragraph (3) of section
48C(d) is amended by striking <quote>and</quote> at the end of subparagraph
(A), by striking the period at the end of subparagraph (B) and inserting
<quote>, and</quote>, and by adding at the end the following new
subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H87BF88422C844C2081BF67BE969838B6" style="OLC">
<subparagraph id="H7F39E9030A9B49DB9E8BC8AD31E48BB2"><enum>(C)</enum><text display-inline="yes-display-inline">shall give the lowest priority to projects
which merely assemble
components.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HBA28505B0EFF4603B80E015A128A6672"><enum>(c)</enum><header>Elective direct
payment of credit</header><text display-inline="yes-display-inline">Chapter 65
is amended by adding at the end the following new subchapter:</text>
<quoted-block display-inline="no-display-inline" id="H5400AB29624D4B23A78E1F0075EC21E4" style="OLC">
<subchapter id="H303EA68C3C9E44F9BB9D5CFEE0B67EDB"><enum>C</enum><header>Direct payment
provisions</header>
<toc container-level="subchapter-container" idref="H303EA68C3C9E44F9BB9D5CFEE0B67EDB" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="H3C46592C136E406EBB87541C975B9944" level="section">Sec. 6451. Elective payment for qualifying advanced energy
project credit.</toc-entry>
</toc>
<section id="H3C46592C136E406EBB87541C975B9944"><enum>6451.</enum><header>Elective
payment for qualifying advanced energy project credit</header>
<subsection commented="no" id="H78B942A7205A472BA478D76346F71E37"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Any person electing
the application of this section with respect to any qualifying advanced energy
property placed in service by such person during the taxable year shall be
treated as making a payment against the tax imposed by subtitle A for the
taxable year equal to 85 percent of the credit which would (but for subsection
(d)) be determined under section 48C with respect to such property for such
taxable year. Such payment shall be treated as made on the later of the due
date of the return of such tax or the date on which such return is
filed.</text>
</subsection><subsection id="HB3609D0C4598495180CF72FE9FDA4CA8"><enum>(b)</enum><header>Qualifying
advanced energy property</header><text>For purposes of this section, the term
<term>qualifying advanced energy property</term> means—</text>
<paragraph id="HE2E188194B644C2085CAEAD76B141BFE"><enum>(1)</enum><text>statutory advanced
energy property (as defined in section 48C(c)(3)), and</text>
</paragraph><paragraph id="H89FA4612A5A34F0D8049ABBE872349D2"><enum>(2)</enum><text>eligible property
(as defined in section 48C(c)(2)) which is part of a qualifying advanced energy
project (as defined in section 48C(c)(1)).</text>
</paragraph></subsection><subsection id="HA2446025A10C4858BC7C4DBD9E5B7E18"><enum>(c)</enum><header>Special rules
for certain non-Taxpayers</header>
<paragraph id="H0EE7D0A59ED34F679D0E46345B564878"><enum>(1)</enum><header>Denial of
payment</header><text>Subsection (a) shall not apply with respect to any
property originally placed in service by—</text>
<subparagraph display-inline="no-display-inline" id="H2072CA76210245A882B6F0BE39CFA209"><enum>(A)</enum><text>any governmental
entity,</text>
</subparagraph><subparagraph id="HAF4E66E01EDF402093AEED3759EA5F62"><enum>(B)</enum><text>any organization
described in section 501(c) or 401(a) and exempt from tax under section 501(a),
or</text>
</subparagraph><subparagraph id="H4847E6E310514ABA905827F6AA2805A9"><enum>(C)</enum><text>any entity
referred to in paragraph (4) of section 54(j).</text>
</subparagraph></paragraph><paragraph id="H5AD374EF39E74D7A8FDE658C863607E9"><enum>(2)</enum><header>Exception for
property used in unrelated trade or business</header><text display-inline="yes-display-inline">Paragraph (1) shall not apply with respect
to any property originally placed in service by an entity described in section
511(a)(2) if substantially all of the income derived from such property by such
entity is unrelated business taxable income (as defined in section 512).</text>
</paragraph><paragraph id="HAAC5A28B20FE4D30A875DE67EBEA9775"><enum>(3)</enum><header>Special rules
for partnerships and S corporations</header><text>In the case of property
originally placed in service by a partnership or an S corporation—</text>
<subparagraph id="H6BE5E94BA6CB4804BEADE38DE29C9123"><enum>(A)</enum><text>the election under
subsection (a) may be made only by such partnership or S corporation,</text>
</subparagraph><subparagraph id="HDDFC046B78A6417AA5237B19159C590C"><enum>(B)</enum><text>such partnership
or S corporation shall be treated as making the payment referred to in
subsection (a) only to the extent of the proportionate share of such
partnership or S corporation as is owned by persons who would be treated as
making such payment if the property were originally placed in service by such
persons, and</text>
</subparagraph><subparagraph id="H644CE72C475A4603828C6F3DCE21DA63"><enum>(C)</enum><text>the return
required to be made by such partnership or S corporation under section 6031 or
6037 (as the case may be) shall be treated as a return of tax for purposes of
subsection (a).</text>
</subparagraph></paragraph><continuation-text continuation-text-level="subsection">For
purposes of subparagraph (B), rules similar to the rules of section 168(h)(6)
(other than subparagraph (F) thereof) shall apply.</continuation-text></subsection><subsection id="H2714DF29647341569EB9A1778BEA421F"><enum>(d)</enum><header>Coordination
with qualifying advanced energy project credit</header>
<paragraph id="HBA48D60AF0674CBF91E8226494086062"><enum>(1)</enum><header>Denial of double
benefit</header><text>No credit shall be determined under section 48C with
respect to any property with respect to which an election is made under this
section for the taxable year in which such property is placed in service or any
subsequent taxable year.</text>
</paragraph><paragraph id="H67BFE453DE5E40CB97D816351234A758"><enum>(2)</enum><header>Full credit
amount to count against program limitation</header><text>For purposes of
administering the qualifying advanced energy project program under subsection
(d) of section 48C, the full amount of the credit with respect to which the
payment under subsection (a) is determined shall be treated as allowed under
such program.</text>
</paragraph></subsection><subsection id="HE8D8BE3C6D9C4D318384AB0C80CDEC77"><enum>(e)</enum><header>Special
rules</header><text>For purposes of this section—</text>
<paragraph id="HD74558F6D7114A3797A88032B19F7B47"><enum>(1)</enum><header>Application of
recapture rules, etc</header><text>Except as otherwise provided by the
Secretary—</text>
<subparagraph id="H74811F5A783D4FBF8BFBAD438395A179"><enum>(A)</enum><header>In
general</header><text>Except as otherwise provided in this paragraph, rules
similar to the rules of section 50, and section 1603 of the American Recovery
and Reinvestment Act of 2009, shall apply.</text>
</subparagraph><subparagraph id="H3A297F5D4E0F46B79527C38F593EA3FA"><enum>(B)</enum><header>Exception to
limitation on real estate investment trusts, etc</header><text>Paragraph (1) of
section 50(d) shall not apply.</text>
</subparagraph><subparagraph id="HDB2D30E6DCD64FA68A3F65432534E0B5"><enum>(C)</enum><header>Application of
normalization rules</header><text>Paragraph (2) of section 50(d) shall not
apply with respect to property placed in service by a person in the trade or
business of furnishing or selling electrical energy if any law or regulation
requires that not less than a certain amount of the electrical energy so
furnished or sold by such person be derived from one or more renewable
resources.</text>
</subparagraph></paragraph><paragraph id="H992A542CACC049BBBD070F50B650A9FB"><enum>(2)</enum><header>Provision of
information</header><text display-inline="yes-display-inline">A person shall
not be treated as having elected the application of this section unless the
taxpayer provides such information as the Secretary (in consultation with the
Secretary of Energy) may require for purposes of verifying the proper amount to
be treated as a payment under subsection (a) and evaluating the effectiveness
of this section.</text>
</paragraph><paragraph id="H1F0E29E62AA745E7A9C6E7D29DC6D0CE"><enum>(3)</enum><header>Exclusion from
gross income</header><text>Any credit or refund allowed or made by reason of
this section shall not be includible in gross income or alternative minimum
taxable
income.</text>
</paragraph></subsection></section></subchapter><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection display-inline="no-display-inline" id="H4EEF68F59F5F48549055D1D75E44474F"><enum>(d)</enum><header>Conforming
amendments related to direct payment</header>
<paragraph id="HDAA957F26E6243CEAB682EF88587B34A"><enum>(1)</enum><text>Subparagraph (A)
of section 6211(b)(4)(A) is amended by inserting <quote>and subchapter C of
chapter 65 (including any payment treated as made under such
subchapter)</quote> after <quote>6431</quote>.</text>
</paragraph><paragraph id="H835691C451B347BD82C2D60EB15CC25F"><enum>(2)</enum><text>Subparagraph (B)
of section 6425(c)(1) is amended—</text>
<subparagraph id="H99E601309C99478D9846420F9CA3DD0A"><enum>(A)</enum><text>by striking
<quote>the credits</quote> and inserting</text>
<quoted-block display-inline="yes-display-inline" id="H00B28DB604A6433B8665DEBD91E0C242" style="OLC">
<text>the
sum of—</text><clause id="H241CC688D544404EA69587CE462F8172"><enum>(i)</enum><text display-inline="yes-display-inline">the
credits</text>
</clause><after-quoted-block>,</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H69CF079CE7824A6885556CC1B7F465C0"><enum>(B)</enum><text>by striking the
period at the end of clause (i) thereof (as amended by this paragraph) and
inserting <quote>, plus</quote>, and</text>
</subparagraph><subparagraph id="H9F910B3BAB894375B7AA758156278BA1"><enum>(C)</enum><text>by adding at the
end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="H343E2375D608489086E67F28BB746D59" style="OLC">
<clause id="H4759B3FB5CCC43A9925AD125E18CFF05"><enum>(ii)</enum><text display-inline="yes-display-inline">the payments treated as made under
subchapter C of chapter
65.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H6B967086B85B438C96BD021F39A420BB"><enum>(3)</enum><text>Paragraph (3) of
section 6654(f) is amended—</text>
<subparagraph id="HE9781F00A4764BA6A123D9F925B72564"><enum>(A)</enum><text>by striking
<quote>the credits</quote> and inserting</text>
<quoted-block display-inline="yes-display-inline" id="H737CA311F9C84977BF1B41394BED2FEE" style="OLC">
<text>the
sum of—</text><subparagraph id="H516BDCF073964E84952B7663551010C8"><enum>(A)</enum><text display-inline="yes-display-inline">the
credits</text>
</subparagraph><after-quoted-block>,</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HDD166BF26476450696EA84394DB060D4"><enum>(B)</enum><text>by striking the
period at the end of subparagraph (A) thereof (as amended by this paragraph)
and inserting <quote>, and</quote>, and</text>
</subparagraph><subparagraph id="H9DA67F3DD84945ED97869FC3B53C1B40"><enum>(C)</enum><text>by adding at the
end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H3A4B559C71484D969FCF36F4CBF9F5CA" style="OLC">
<subparagraph id="H0DC444FFA3E7435E8C09A215B8111515"><enum>(B)</enum><text display-inline="yes-display-inline">the payments treated as made under
subchapter C of chapter
65.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H34930148BB1B419D8275D1070ABB3529"><enum>(4)</enum><text>Subparagraph (B)
of section 6655(g)(1) is amended—</text>
<subparagraph id="HA3D668B111774683AA182E7174B37488"><enum>(A)</enum><text>by striking
<quote>the credits</quote> and inserting</text>
<quoted-block display-inline="yes-display-inline" id="H9033C29667DA4355AABA7A79CCCB9BCB" style="OLC">
<text>the
sum of—</text><clause id="H62F2F8F8D5CF4D3BB6F8D28A8A2AF534"><enum>(i)</enum><text display-inline="yes-display-inline">the
credits</text>
</clause><after-quoted-block>,</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H05CA8A5F44B64BCFAEF6876651BC27CF"><enum>(B)</enum><text>by striking the
period at the end of clause (i) thereof (as amended by this paragraph) and
inserting <quote>, plus</quote>, and</text>
</subparagraph><subparagraph id="HA716BBB58750478CB05761AD2AE6EF47"><enum>(C)</enum><text>by adding at the
end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="H1A4FB4B8112F4993ACB1FC39448F4ED6" style="OLC">
<clause id="H7B89E47417694D78B1F0500933DDC4CA"><enum>(ii)</enum><text display-inline="yes-display-inline">the payments treated as made under
subchapter C of chapter
65.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H4EE2971A76664581A0DC18C61EC588D9"><enum>(5)</enum><text>Paragraph (2) of
section 1324(b) of title 31, United States Code, is amended by inserting
<quote>, or from the provisions of subchapter C of chapter 65 of such
Code</quote> before the period at the end.</text>
</paragraph><paragraph id="HBFB2ED2414FE4D6484C2638CDAB27520"><enum>(6)</enum><text>The table of
subchapters for chapter 65 is amended by adding at the end the following new
item:</text>
<quoted-block display-inline="no-display-inline" id="H309A82BF22804AB1BE30A16960BDD760" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="subchapter">Subchapter C. Direct payment
provisions</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H8DEDA74953664F7CB6A49D190A60C72A"><enum>(e)</enum><header>Other conforming
amendments</header>
<paragraph id="HD91254C460EB478F9FB98CA5D61AC854"><enum>(1)</enum><text>Paragraph (3) of
section 48C(b) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H035ABFBB28DC41D1AA7D034850FAEF58" style="OLC">
<paragraph id="H09667E74BE214E23936FD8B045E8C342"><enum>(3)</enum><header>Limitation</header><text display-inline="yes-display-inline">The amount which is treated as a qualified
investment for all taxable years with respect to any qualifying advanced
manufacturing project shall not exceed the amount designated by the Secretary
under subsection
(d).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H2552146495A743848B59227F683E0C86"><enum>(2)</enum><text>Subparagraph (A)
of section 48C(c)(2) is amended by inserting <quote>in the case of a qualifying
advanced energy project,</quote> before <quote>which is
necessary</quote>.</text>
</paragraph><paragraph id="HF99EF539C8E4408C89B2B4E7E844014B"><enum>(3)</enum><text>Subparagraph (A)
of section 48C(d)(2) is amended—</text>
<subparagraph id="HE0C702B965F74786A543D0DDDAE2BFC4"><enum>(A)</enum><text>by striking
<quote>during the 2-year period</quote> and
inserting</text>
<quoted-block display-inline="yes-display-inline" id="HAEBC1FA470454CD193B81FAA1FFE070F" style="OLC">
<text>during
the—</text><clause id="HF518D94A758E46B9BEF95F868AFAEF90"><enum>(i)</enum><text display-inline="yes-display-inline">in the case of an allocation from the
limitation described in paragraph (1)(B)(i), the 2-year
period</text>
</clause><after-quoted-block>,</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HF118A73B38764A638EC86AC3046315F8"><enum>(B)</enum><text>by striking the
period at the end and inserting <quote>, or</quote>, and</text>
</subparagraph><subparagraph id="HC6DE71413F164C878D9945B249F18405"><enum>(C)</enum><text>by adding at the
end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="H69A67AE130654D9EAEA2FCE06CB88B56" style="OLC">
<clause id="HAA742EC8E4CE40559D2E182BDA20F56B"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of an allocation from the
limitation described in paragraph (1)(B)(ii), the 1-year period beginning on
the date of the enactment of this
clause.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H1D7B6812868141E088C909F98BBD622A"><enum>(4)</enum><text>Clause (v) of
section 49(a)(1)(C) is amended by inserting <quote>which is statutory advanced
energy property (as defined in section 48C(c)(3)) or</quote> after <quote>the
basis of any property</quote>.</text>
</paragraph></subsection><subsection id="HDFB3FF1FAD244F83B4CEB36EC6470DDC"><enum>(f)</enum><header>Effective
date</header>
<paragraph id="H0D5670BA50314826AA807A3693424F3A"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), the amendments made
by this section shall apply to periods after the date of the enactment of this
Act, 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).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H23770E16E06149C4B47B0DCE8D4AE2C4"><enum>(2)</enum><header>Direct payment
provisions</header><text>The amendments made by subsections (c) and (d) shall
apply to property placed in service after the date of the enactment of this
Act.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H5656AC8A3C97429CAEFD0108E6BF2258" section-type="subsequent-section"><enum>102.</enum><header>Extension and
modification of energy efficient appliance credit</header>
<subsection id="HCA71E7DB4708413B899E826912635181"><enum>(a)</enum><header>Dishwashers</header><text>Paragraph
(1) of section 45M(b) is amended by striking <quote>and</quote> at the end of
subparagraph (A), by striking the period at the end of subparagraph (B) and
inserting a comma, and by adding at the end the following new
subparagraphs:</text>
<quoted-block display-inline="no-display-inline" id="H11071FB0CD1C4DE3B5D9FEEA35F4ABC8" style="OLC">
<subparagraph id="H6A0B71B8D5F5446E877AFF086C315254"><enum>(C)</enum><text display-inline="yes-display-inline">$25 in the case of a dishwasher which is
manufactured in calendar year 2011 and which uses no more than 307 kilowatt
hours per year and 5.0 gallons per cycle (5.5 gallons per cycle for dishwashers
designed for greater than 12 place settings),</text>
</subparagraph><subparagraph id="HEAC272E0A2804714BCC8A7715E33E7D4"><enum>(D)</enum><text display-inline="yes-display-inline">$50 in the case of a dishwasher which is
manufactured in calendar year 2011, 2012, or 2013 and which uses no more than
295 kilowatt hours per year and 4.25 gallons per cycle (4.75 gallons per cycle
for dishwashers designed for greater than 12 place settings), and</text>
</subparagraph><subparagraph id="H463D408C095049FAA6BBDFA049687643"><enum>(E)</enum><text display-inline="yes-display-inline">$75 in the case of a dishwasher which is
manufactured in calendar year 2011, 2012, or 2013 and which uses no more than
280 kilowatt hours per year and 4 gallons per cycle (4.5 gallons per cycle for
dishwashers designed for greater than 12 place
settings).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H70166581BA9B445C8AA9877B45563E75"><enum>(b)</enum><header>Clothes
washers</header><text>Paragraph (2) of section 45M(b) is amended by striking
<quote>and</quote> at the end of subparagraph (C), by striking the period at
the end of subparagraph (D) and inserting a comma, and by adding at the end the
following new subparagraphs:</text>
<quoted-block display-inline="no-display-inline" id="HE6CC05A260FC4AC4A416E2F2C63EE6EC" style="OLC">
<subparagraph id="H9ED3D672418346F3B7978C78D8E8554A"><enum>(E)</enum><text display-inline="yes-display-inline">$175 in the case of a top-loading clothes
washer manufactured in calendar year 2011 which meets or exceeds a 2.2 modified
energy factor and does not exceed a 4.5 water consumption factor, and</text>
</subparagraph><subparagraph id="H54F1301F29614FB885C1BD36D5285713"><enum>(F)</enum><text>$225 in the case
of a clothes washer manufactured in calendar year 2011, 2012, or 2013—</text>
<clause id="H5FFFEDA384284AF59725E2978B896D45"><enum>(i)</enum><text display-inline="yes-display-inline">which is a top-loading clothes washer and
which meets or exceeds a 2.4 modified energy factor and does not exceed a 4.2
water consumption factor, or</text>
</clause><clause id="HA81293DF52084C4090FD38481318E1DB"><enum>(ii)</enum><text display-inline="yes-display-inline">which is a front-loading clothes washer and
which meets or exceeds a 2.8 modified energy factor and does not exceed a 3.5
water consumption
factor.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H71C9ECC746994C6DA210D8A1C40B1737"><enum>(c)</enum><header>Refrigerators</header><text>Paragraph
(3) of section 45M(b) is amended by striking <quote>and</quote> at the end of
subparagraph (C), by striking the period at the end of subparagraph (D) and
inserting a comma, and by adding at the end the following new
subparagraphs:</text>
<quoted-block display-inline="no-display-inline" id="HFC1F24BF0DD340BD9FDC0F7CBD8EF690" style="OLC">
<subparagraph id="H273088E380024AA1B1AB47F59199E19B"><enum>(E)</enum><text display-inline="yes-display-inline">$150 in the case of a refrigerator
manufactured in calendar year 2011, 2012, or 2013 which consumes at least 30
percent less energy than the 2001 energy conservation standards, and</text>
</subparagraph><subparagraph id="H98FFB0F678CC47729B231D5A5F350AFC"><enum>(F)</enum><text display-inline="yes-display-inline">$200 in the case of a refrigerator
manufactured in calendar year 2011, 2012, or 2013 which consumes at least 35
percent less energy than the 2001 energy conservation
standards.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H768FC1F8ADF0457D8A92B1CD0605892F"><enum>(d)</enum><header>Rebasing of
limitations</header>
<paragraph id="HA66290704B1745EFB8E73D27C1F8CDAF"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Paragraph (1) of
section 45M(e) is amended by striking <quote>December 31, 2007</quote> and
inserting <quote>December 31, 2010</quote>.</text>
</paragraph><paragraph id="HEA7D9035F92543668AB7ABD3E51E82B4"><enum>(2)</enum><header>Exception for
certain refrigerators and clothes washers</header><text>Paragraph (2) of
section 45M(e) is amended—</text>
<subparagraph id="H3778299EC07E48429118FFF5FB97F6B0"><enum>(A)</enum><text>by striking
<quote>subsection (b)(3)(D)</quote> and inserting <quote>subsection
(b)(3)(F)</quote>, and</text>
</subparagraph><subparagraph id="H810ED5A7ADD44F3FAF79931DD524DA9A"><enum>(B)</enum><text>by striking
<quote>subsection (b)(2)(D)</quote> and inserting <quote>subsection
(b)(2)(F)</quote>.</text>
</subparagraph></paragraph><paragraph id="HAB3E37012BA5443DBDE9A921C6E9EE13"><enum>(3)</enum><header>Gross receipts
limitation</header><text>Paragraph (3) of section 45M(e) is amended by striking
<quote>2 percent</quote> and inserting <quote>4 percent</quote>.</text>
</paragraph></subsection><subsection id="HB98DC87A23694053AD645F69EDDA922E"><enum>(e)</enum><header>Effective
date</header>
<paragraph id="H6759DC1E3D7E4E2A9473734F6234ADFC"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Except as provided in
paragraph (2), the amendments made by this section shall apply to appliances
produced after December 31, 2010.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE2B5FF1578C944EFA843706953E69AFB"><enum>(2)</enum><header>Limitations</header><text>The
amendments made by subsection (d) shall apply to taxable years beginning after
December 31, 2010.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id332A2FB22B8D4FA9A3EDDE34755FB426"><enum>103.</enum><header>Enhanced
deduction for production of advanced alternative energy technology</header>
<subsection commented="no" display-inline="no-display-inline" id="idF53E6E2D447B49BEBE77D8C37DDAD12B"><enum>(a)</enum><header>In
general</header><text>Section 199 is amended by adding at the end the following
new subsection:</text>
<quoted-block display-inline="no-display-inline" id="id0BF7A1C9B9DC4ED59942350ED825A825" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="id594D4F79CEE84F15B9C7BD8DFBBDE020"><enum>(e)</enum><header>Enhanced
deduction for manufacturers of alternative energy products</header>
<paragraph commented="no" display-inline="no-display-inline" id="idC8B3BAD5069B4B69A9977F16DF933726"><enum>(1)</enum><header>In
general</header><text>In the case of a taxpayer with domestic alternative
energy production gross receipts with respect to any taxable year beginning
after December 31, 2010, and before January 1, 2013—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id2BB332D5627E49C5898D3E5D7BBF0489"><enum>(A)</enum><text>this section
shall be applied separately with respect to qualified production activities
income attributable to such domestic alternative energy production gross
receipts and qualified production activities income attributable to other
domestic production gross receipts, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id32E4B42890954BF3AEBDD71CFA3BD5A9"><enum>(B)</enum><text>in applying this
section to qualified production activities income attributable to such domestic
alternative energy production gross receipts—</text>
<clause commented="no" display-inline="no-display-inline" id="idCBCF17EBB1F54F83B0A5EDDB8C25AD16"><enum>(i)</enum><text>subsection (a)(1)
shall be applied by substituting <quote>12 percent</quote> for <quote>9
percent</quote>, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id17B5D5E866F34B27BA63FFD8AD0CB596"><enum>(ii)</enum><text>subsection
(b)(2)(B) shall be applied by substituting <quote>domestic alternative energy
production gross receipts</quote> for <quote>domestic production gross
receipts</quote>.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id5FE81C23C2BB4E918B768F81096ECF83"><enum>(2)</enum><header>Domestic
alternative energy production gross receipts</header><text>For purposes of this
subsection, the term <term>domestic alternative energy production gross
receipts</term> means the gross receipts of the taxpayer derived from the
manufacturing of qualifying production property which is—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id910D71A5C7BA40A9B15305D612CA2DF4"><enum>(A)</enum><text>described in
clause (i) of section 48C(c)(1)(A),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id3D8BAD6B86EC498EBE3292BE5DD08928"><enum>(B)</enum><text>qualified high
efficiency transmission property, or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id0124711F435E4EACA52CC00ADE3C0B56"><enum>(C)</enum><text>qualified
advanced electric transmission property.</text>
</subparagraph></paragraph><paragraph id="H1E5756AE2C324E23B6548325F602DD51"><enum>(3)</enum><header>Qualified high
efficiency transmission property</header><text>For purposes of this subsection,
the term <term>qualified high efficiency transmission property</term> means any
high voltage overhead electric transmission line, related substation, or other
integrated facility that—</text>
<subparagraph id="HEA32DB83832F41FFA89D268371B7F81A"><enum>(A)</enum><text>utilizes advanced
conductor core technology that has been determined by the Secretary of Energy
as—</text>
<clause id="HB99BADD2EBEC40C6AEC82CB371B0BBCD"><enum>(i)</enum><text>reasonably likely
to become commercially viable not later than the date which is 10 years after
the date of the enactment of this subsection,</text>
</clause><clause id="HFEF304208F7A4F18A66476F2608AEDBC"><enum>(ii)</enum><text>is suitable for
use on transmission lines up to 765 kV, and</text>
</clause><clause id="H2F9CBCEB2A1541C191923B8D30923CE2"><enum>(iii)</enum><text>exhibits power
losses at least 30 percent lower than that of transmission lines using
conventional ACSR conductors,</text>
</clause></subparagraph><subparagraph id="HA7A8BA659CEE434B918B883AC0311795"><enum>(B)</enum><text>has been
determined by an appropriate energy regulatory body, upon application, to be in
the public interest and thereby eligible for inclusion in regulated rates,
and</text>
</subparagraph><subparagraph id="H5EAB334179FE4652BB93A3CC9B2E8400"><enum>(C)</enum><text>can be located
safely and economically in a right of way not to exceed that used by
conventional ACSR conductors.</text>
</subparagraph></paragraph><paragraph id="HB3EE987A16984000B1539B434033FABA"><enum>(4)</enum><header>Qualified
advanced electric transmission property</header><text>For purposes of this
subsection, the term <term>qualified advanced electric transmission
property</term> means any high voltage electric transmission cable, related
substation, converter station, or other integrated facility that—</text>
<subparagraph id="H03C50614D7A74B579B51885C6474C331"><enum>(A)</enum><text>utilizes advanced
ultra low resistance superconductive material or other advanced technology that
has been determined by the Secretary of Energy as—</text>
<clause id="H4F2BE6740FE44852A941EDA3130ADB31"><enum>(i)</enum><text>reasonably likely
to become commercially viable not later than the date which is 10 years after
the date of the enactment of this subsection,</text>
</clause><clause id="H2821E4CFC9A9491D8E6963523004A315"><enum>(ii)</enum><text>capable of
reliably transmitting at least 5 gigawatts of high-voltage electric energy for
distances greater than 300 miles with energy losses not exceeding 3 percent of
the total power transported, and</text>
</clause><clause id="H7F4916858D6D4D2AB62ABA2CE6EE9A97"><enum>(iii)</enum><text>not creating an
electromagnetic field,</text>
</clause></subparagraph><subparagraph id="H3265B703B25947A9B80DD86BCE5ABB3E"><enum>(B)</enum><text>has been
determined by an appropriate energy regulatory body, upon application, to be in
the public interest and thereby eligible for inclusion in regulated rates,
and</text>
</subparagraph><subparagraph id="H6D4DEAB763244CCD94866470BEEC889B"><enum>(C)</enum><text>can be located
safely and economically in a permanent underground right of way not to exceed
25 feet in width.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idE2C70F6A122A4FD08003E5AB26F7651E"><enum>(5)</enum><header>Related
persons</header><text>Rules similar to the rules of subsection (c)(7) shall
apply for purposes of this
subsection.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idCE77CBA6D05F458E815F237248A38EE5"><enum>(b)</enum><header>Regulations</header><text>Not
later than 120 days after the date of the enactment of this Act, the Secretary
of the Treasury (or the Secretary's delegate) shall issue regulations with
respect to a process for determining whether property is described in section
199(e)(2) of the Internal Revenue Code of 1986 for purposes of the deduction
under section 199 of such Code.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id1AF69A6BCE204D3383DB3CAF8E302D2F"><enum>(c)</enum><header>Effective
date</header><text>The amendment made by subsection (a) shall apply to taxable
years beginning after December 31, 2010.</text>
</subsection></section><enum>II</enum><header>Renewable
energy</header>
<section id="H9A60AF73B893420790B5C7938580D3C1"><enum>201.</enum><header>Elective
payment for specified energy property</header>
<subsection id="HC72C4E5FDE5C4A55A5138BF6133F7397"><enum>(a)</enum><header>Elective
payments</header>
<paragraph id="id0368192C8DF64DDEA0D4DC707504A0A9"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Subchapter C of
chapter 65, as added by section 101, is amended by adding at the end the
following new section:</text>
<quoted-block display-inline="no-display-inline" id="H023B069152624E4199C5E512E4BAE37E" style="OLC">
<section id="H15C2E0C09F654597867CBE26777C45D1"><enum>6452.</enum><header>Elective
payment for specified energy property</header>
<subsection commented="no" id="HD7A0A89466914352B25834CFD2BF394B"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Any person electing
the application of this section with respect to any specified energy property
originally placed in service by such person during the taxable year shall be
treated as making a payment against the tax imposed by subtitle A for the
taxable year equal to the applicable percentage of the basis of such property.
Such payment shall be treated as made on the later of the due date of the
return of such tax or the date on which such return is filed.</text>
</subsection><subsection id="H616D29BC2F76464A821FCC2DC991DF20"><enum>(b)</enum><header>Applicable
percentage</header><text>For purposes of this section, the term
<term>applicable percentage</term> means—</text>
<paragraph id="HF4C5A92DBDF548A6A0F28C566E89DC9A"><enum>(1)</enum><text>30 percent in the
case of any property described in paragraph (2)(A)(i) or (5) of section 48(a),
and</text>
</paragraph><paragraph id="H2458487F8EDE4A189716E869AC05EDC4"><enum>(2)</enum><text>10 percent in the
case of any other property.</text>
</paragraph></subsection><subsection id="HAB9BBFDD0AC2434F9C8FA51CF38F5042"><enum>(c)</enum><header>Dollar
limitations</header><text>In the case of property described in paragraph (1),
(2), or (3) of section 48(c), the payment otherwise treated as made under
subsection (a) with respect to such property shall not exceed the limitation
applicable to such property under such paragraph.</text>
</subsection><subsection display-inline="no-display-inline" id="H1B77A2F6B4254751A29EF99E39FB3392"><enum>(d)</enum><header>Specified energy
property</header><text>For purposes of this section—</text>
<paragraph id="H42B4CD164D0340229598CA1FEB721614"><enum>(1)</enum><header>In
general</header><text>The term <term>specified energy property</term> means
energy property (within the meaning of section 48) which—</text>
<subparagraph id="H43A28D9B8E314BB3A7BD2A056587015C"><enum>(A)</enum><text>is originally
placed in service before January 1, 2013, or</text>
</subparagraph><subparagraph id="HAD2C566A18C44E45BBE251CB68A04BDF"><enum>(B)</enum><text>is originally
placed in service on or after such date and before the credit termination date
with respect to such property, but only if the construction of such property
began before January 1, 2013.</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HBEA0DB9AA6D2444BA4EE95814B95E7B1"><enum>(2)</enum><header>Credit
termination date</header><text>The term <quote>credit termination date</quote>
means—</text>
<subparagraph display-inline="no-display-inline" id="H6D4DD1C297364A88AB121E3FA55D6E88"><enum>(A)</enum><text>in the case of any
energy property which is part of a facility described in paragraph (1) of
section 45(d), January 1, 2013,</text>
</subparagraph><subparagraph id="HAA615CDE2566400792775F37F6B07C45"><enum>(B)</enum><text>in the case of any
energy property which is part of a facility described in paragraph (2), (3),
(4), (6), (7), (9), or (11) of section 45(d), January 1, 2014, and</text>
</subparagraph><subparagraph id="HB273471D67C64594B899B6B045B202EE"><enum>(C)</enum><text>in the case of any
energy property described in section 48(a)(3), January 1, 2017.</text>
</subparagraph><continuation-text continuation-text-level="paragraph">In the
case of any property which is described in subparagraph (C) and also in another
subparagraph of this paragraph, subparagraph (C) shall apply with respect to
such property.</continuation-text></paragraph></subsection><subsection id="H6BA31799B68E42ED9A47849B62944149"><enum>(e)</enum><header>Coordination
with production and investment credits</header><text>In the case of any
property with respect to which an election is made under this section—</text>
<paragraph display-inline="no-display-inline" id="H1CB693E0248C4DE5926BA7DAC6BC778B"><enum>(1)</enum><header>Denial of
production and investment credits</header><text display-inline="yes-display-inline">No credit shall be determined under section
45 or 48 with respect to such property for the taxable year in which such
property is originally placed in service or any subsequent taxable year.</text>
</paragraph><paragraph id="HA805D1256CF9460BB86E8465622A2043"><enum>(2)</enum><header>Reduction of
payment by progress expenditures already taken into account</header><text>The
amount of the payment treated as made under subsection (a) with respect to such
property shall be reduced by the aggregate amount of credits determined under
section 48 with respect to such property for all taxable years preceding the
taxable year in which such property is originally placed in service.</text>
</paragraph></subsection><subsection commented="no" id="idEAE6AE512E224F0BADC11B68BF255DAB"><enum>(f)</enum><header>Special rules
for certain non-Taxpayers</header>
<paragraph commented="no" id="idB836DA100A4B465D9B25CB4E042D3DFC"><enum>(1)</enum><header>Denial of
payment</header><text>Subsection (a) shall not apply with respect to any
property originally placed in service by—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idD6EE70362C614539AE42753A03F5F7EC"><enum>(A)</enum><text>any governmental
entity other than a governmental unit which is a State utility with a service
obligation (as such terms are defined in section 217 of the Federal Power Act),
or</text>
</subparagraph><subparagraph commented="no" id="id65E77C56B7134C638274BF30414B7DA7"><enum>(B)</enum><text>any organization
described in section 501(c) (other than a mutual or cooperative electric
company described in section 501(c)(12)) or 401(a) and exempt from tax under
section 501(a).</text>
</subparagraph></paragraph><paragraph commented="no" id="id5052FECC8EA24E3D85AD4BEF771E346C"><enum>(2)</enum><header>Exception for
property used in unrelated trade or business</header><text display-inline="yes-display-inline">Paragraph (1) shall not apply with respect
to any property originally placed in service by an entity described in section
511(a)(2) if substantially all of the income derived from such property by such
entity is unrelated business taxable income (as defined in section 512).</text>
</paragraph><paragraph commented="no" id="idF47A9CEEFF37414DBCDF82318E7D5810"><enum>(3)</enum><header>Special rules
for partnerships and S corporations</header><text>In the case of property
originally placed in service by a partnership or an S corporation—</text>
<subparagraph commented="no" id="id875588A71C7A4B5DA2DDC7D345C2F8DD"><enum>(A)</enum><text>the election
under subsection (a) may be made only by such partnership or S
corporation,</text>
</subparagraph><subparagraph commented="no" id="id7AA6FECB190542F9999FB4F11572C401"><enum>(B)</enum><text>such partnership
or S corporation shall be treated as making the payment referred to in
subsection (a) only to the extent of the proportionate share of such
partnership or S corporation as is owned by persons who would be treated as
making such payment if the property were originally placed in service by such
persons, and</text>
</subparagraph><subparagraph commented="no" id="id81892EEB98004973AEAD30B659B78145"><enum>(C)</enum><text>the return
required to be made by such partnership or S corporation under section 6031 or
6037 (as the case may be) shall be treated as a return of tax for purposes of
subsection (a).</text>
</subparagraph></paragraph><continuation-text commented="no" continuation-text-level="subsection">For purposes of subparagraph (B),
rules similar to the rules of section 168(h)(6) (other than subparagraph (F)
thereof) shall apply. For purposes of applying such rules, the term
<term>tax-exempt entity</term> shall not include any entity which is a
governmental unit which is a State utility with a service obligation (as such
terms are defined in section 217 of the Federal Power Act) or which is a mutual
or cooperative electric company described in section 501(c)(12).</continuation-text></subsection><subsection id="HA33C7DEA8BD54B29BBDC87845270C3B3"><enum>(g)</enum><header>Other
definitions and special rules</header><text>For purposes of this
section—</text>
<paragraph id="H22EA9A240BFC4E8990EFBE480DB8CED0"><enum>(1)</enum><header>Other
definitions</header><text>Terms used in this section which are also used in
section 45 or 48 shall have the same meanings for purposes of this section as
when used in such sections.</text>
</paragraph><paragraph id="H6834CB4176964DBE87553016D7132C68"><enum>(2)</enum><header>Application of
certain rules</header><text>Rules similar to the rules of subsection (e) of
section 6451 shall apply for purposes of this section.</text>
</paragraph><paragraph id="id91FE78EF3F5F46FFBBC7D241210BCE75"><enum>(3)</enum><header>Exception for
certain projects</header><text>Subsection (a) shall not apply to any
governmental unit or cooperative electric company (as defined in section
54(j)(1)) with respect to any specified energy property which is described in
section 48(a)(5)(D) if such entity has issued any bond—</text>
<subparagraph id="id51D90CED6452425B97E03A54EBD6C962"><enum>(A)</enum><text>which is
designated as a clean renewable energy bond under section 54 of the Internal
Revenue Code of 1986 or as a new clean renewable energy bond under section 54C
of such Code, and</text>
</subparagraph><subparagraph id="id4CBC872818D048DFA13258DCF9EB122B"><enum>(B)</enum><text>the proceeds of
which are used for expenditures in connection with the same qualified facility
with respect to which such specified energy property is a part.</text>
</subparagraph></paragraph><paragraph id="HB31F143E93534E69B9E346E225F0B47C"><enum>(4)</enum><header>Coordination
with grant program</header><text display-inline="yes-display-inline">If a grant
under section 1603 of the American Recovery and Reinvestment Tax Act of 2009 is
made with respect to any specified energy property—</text>
<subparagraph id="H9EA5F82F027946FAACF427BEC00F5184"><enum>(A)</enum><text>no election may be
made under subsection (a) with respect to such property on or after the date of
such grant, and</text>
</subparagraph><subparagraph id="HAF46F6BA716C4837B970900B1B6A01EF"><enum>(B)</enum><text>if such grant is
made after such election, such property shall be treated as having ceased to be
specified energy property immediately after such property was originally placed
in
service.</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H6641CA619EC144FA8CFBFB482464F94B"><enum>(2)</enum><header>Clerical
amendment</header><text display-inline="yes-display-inline">The table of
sections for subchapter C of chapter 65, as added by section 101, is amended by
adding at the end the following new item:</text>
<quoted-block display-inline="no-display-inline" id="HC643B38204944F1D9B7E216FF6B44F10" style="OLC">
<toc container-level="quoted-block-container" idref="H023B069152624E4199C5E512E4BAE37E" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="H15C2E0C09F654597867CBE26777C45D1" level="section">Sec. 6452. Elective payment for specified energy
property.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id9B0BBB8C22FD4442BFD060AE84C57ADF"><enum>(b)</enum><header>Treatment of
grants for cooperative electric companies</header><text>Section 501(c)(12) is
amended by adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="id4E15EF8431DC4A3E90E920C995E831C1" style="OLC">
<subparagraph id="IDb368b13b81df44f699e86726a8d2fc79"><enum>(I)</enum><text>In the case of a
mutual or cooperative electric company described in this paragraph or an
organization described in section 1381(a)(2)(C), subparagraph (A) shall be
applied without taking into account any payment made by reason of section
6452.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection display-inline="no-display-inline" id="HAD79DCDA5DCD49AD9E242A239346E469"><enum>(c)</enum><header>Technical
amendments</header>
<paragraph id="HF9F1177553A346028CA4E00E0A4BE6AB"><enum>(1)</enum><text>Paragraphs (1) and
(2) of section 1603(a) of the American Recovery and Reinvestment Tax Act of
2009 are each amended by striking <quote>is placed in service</quote> and
inserting <quote>is originally placed in service by such person</quote>.</text>
</paragraph><paragraph id="H51DC670D6A4F40EC9AAECF74808E384F"><enum>(2)</enum><text>Paragraph (1) of
section 1603(d) of such Act is amended—</text>
<subparagraph id="H3C32005065654D67B48578C61731CB2B"><enum>(A)</enum><text>by striking
<quote>(within the meaning of section 45 of such Code)</quote>, and</text>
</subparagraph><subparagraph id="HCAC2E99B036C4E1C92C512C348352A17"><enum>(B)</enum><text>by inserting
before the period at the end the following: <quote>which would (but for section
48(d)(1) of such Code) be eligible for credit under section 45 of such Code
(determined without regard to subsection (a)(2)(B) thereof)</quote>.</text>
</subparagraph></paragraph><paragraph id="H11A0D20A778F466F9D730FB1683CD76B"><enum>(3)</enum><text>Subsection (f) of
section 1603 of such Act is amended—</text>
<subparagraph display-inline="no-display-inline" id="H7763598D98C34CFCBF9B99731A43A362"><enum>(A)</enum><text display-inline="yes-display-inline">by striking the second sentence and
inserting the following: <quote>In applying such rules, any increase in tax
under chapter 1 of such Code by reason of the property being disposed of (or
otherwise ceasing to be specified energy property) shall be imposed on the
person to whom the grant was made.</quote>,</text>
</subparagraph><subparagraph id="HAABF096959004B13A35E32F854CA2B81"><enum>(B)</enum><text>by striking
<quote>In making grants under</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H531FD752A63D493F91CD7362C8B4A513" style="OLC">
<paragraph id="H17FB6C9B9C9D4396836263FAA1C27E4A"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">In making grants
under</text>
</paragraph><after-quoted-block>,
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph display-inline="no-display-inline" id="H31EE5B232AD944779E87194100966191"><enum>(C)</enum><text>by adding at the
end following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H294403F125BC423AB23C4B2178A3FCC6" style="OLC">
<paragraph id="H3BC5FF37732F47549302C9548796785A"><enum>(2)</enum><header>Special
rules</header>
<subparagraph id="H1FDB6AC4599A478DA837CEF58C45D14B"><enum>(A)</enum><header>Recapture of
excessive grant amounts</header><text>If the amount of a grant made under this
section exceeds the amount allowable as a grant under this section, such excess
shall be recaptured under paragraph (1) as if the property to which such grant
relates were disposed of immediately after such grant was made.</text>
</subparagraph><subparagraph id="H4CC10034A2614C67BF8F726EA72C6C79"><enum>(B)</enum><header>Grant
information not treated as return information</header><text display-inline="yes-display-inline">For purposes of section 6103 of the
Internal Revenue Code of 1986, in no event shall any of the following be
treated as return information:</text>
<clause id="H665831DFB20F45ADBBFB9D912A3059F3"><enum>(i)</enum><text display-inline="yes-display-inline">The amount of a grant made under subsection
(a).</text>
</clause><clause id="H220E48C4198445E8BAD3D96F578B3E03"><enum>(ii)</enum><text display-inline="yes-display-inline">The identity of the person to whom the
grant was made.</text>
</clause><clause id="H2F81A6579C71434A9F5DFA8C60B0A168"><enum>(iii)</enum><text>A description of
the property with respect to which the grant was made.</text>
</clause><clause id="H1BDB49029A7841E98C2EB80F7CC97670"><enum>(iv)</enum><text>The fact and
amount of any recapture.</text>
</clause><clause id="HBCB6E7C129A6439E8E2039B1CC36427F"><enum>(v)</enum><text>The content of any
report required by the Secretary of the Treasury to be filed in connection with
the
grant.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HA8F03BB9E4084558AB7AA0C3D3B8F767"><enum>(4)</enum><text>Subsection (g) of
section 1603 of such Act is amended—</text>
<subparagraph id="HDBBD3ED9690C484E975493EBBF75375A"><enum>(A)</enum><text>by redesignating
paragraphs (1) through (4) as subparagraphs (A) through (D),
respectively,</text>
</subparagraph><subparagraph id="H74E8D55B80C94BB9B64FF85DD4999F1F"><enum>(B)</enum><text>by moving such
subparagraphs (as so redesignated) 2 ems to the right,</text>
</subparagraph><subparagraph id="H86430398473844D790C6CB1F21BBE17E"><enum>(C)</enum><text>by striking
<quote>paragraph (1), (2), or (3)</quote> in subparagraph (D) (as so
redesignated) and inserting <quote>subparagraphs (A), (B), or
(C)</quote>,</text>
</subparagraph><subparagraph id="H700A436F456C4607B939D80386F34FD6"><enum>(D)</enum><text>by striking
<quote>The Secretary</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HAA1550BD8EAE4E4A93B7C85F93406108" style="OLC">
<paragraph id="H85B47DE8E56F493DB75348E592EE340B"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Except as provided in
paragraph (2), the Secretary</text>
</paragraph><after-quoted-block>,
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" id="HDDE9ECA1A2194A94B197C928CDE6E171"><enum>(E)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HF99FA0C1C67349D7B0B14FDE4A49C180" style="OLC">
<paragraph commented="no" id="HE7CE36A7D90248C49469589792A97330"><enum>(2)</enum><header>Exception where
property used in unrelated trade or business</header>
<subparagraph commented="no" id="H4AF56266880242A1B8EB0B7E3ABA74FE"><enum>(A)</enum><header>In
general</header><text>Paragraph (1) shall not apply to any person or entity
described therein to the extent the grant is with respect to unrelated trade or
business property.</text>
</subparagraph><subparagraph commented="no" id="HF88EA8CE02D1444E99648B9548063713"><enum>(B)</enum><header>Unrelated trade
or business property</header><text display-inline="yes-display-inline">For
purposes of this paragraph, the term <term>unrelated trade or business
property</term> means any property with respect to which substantially all of
the income derived therefrom by an organization described in section 511(a)(2)
of the Internal Revenue Code of 1986 is subject to tax under section 511 of
such Code.</text>
</subparagraph><subparagraph commented="no" id="HEE5F3B4F5E424E70AC79DF23D61807EC"><enum>(C)</enum><header>Information with
respect to pass-thrus</header><text display-inline="yes-display-inline">In the
case of a partnership or other pass-thru entity, partners or other holders of
an equity or profits interest must provide to such partnership or entity such
information as the Secretary may require to carry out the purposes of this
subsection.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection id="H65764C48493B40D0894CBA079E37F094"><enum>(d)</enum><header>Effective
date</header>
<paragraph id="HE9413B1B3DE849B0BE2A418DCF809882"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), the amendments made
by this section shall apply to property originally placed in service after the
date of the enactment of this Act.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAC5E0D246A2D4C6F9F05E724937D3F7D"><enum>(2)</enum><header>Technical
amendments</header><text display-inline="yes-display-inline">The amendments
made by subsection (c) shall take effect as if included in section 1603 of the
American Recovery and Reinvestment Tax Act of 2009.</text>
</paragraph></subsection></section><section id="H1CD27D70CCFC4760BB96BC7B1CC65890"><enum>202.</enum><header>Extension and
expansion of new clean renewable energy bonds</header>
<subsection display-inline="no-display-inline" id="H939DAD13090A43C18F1D98751C26A624"><enum>(a)</enum><header>Increased
limitation on issuance of new clean renewable energy bonds</header>
<paragraph id="H8A44C0D500E94DB89A89569B9DAE684A"><enum>(1)</enum><header>In
general</header><text>Subsection (c) of section 54C is amended by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H3845EB14A3D546D682724504B119EC84" style="OLC">
<paragraph id="H00895AADCF344269BA51D8E6D0836EA9"><enum>(5)</enum><header>2010 additional
limitation</header><text display-inline="yes-display-inline">The national new
clean renewable bond limitation shall be increased by $3,500,000,000. Such
increase shall be allocated by the Secretary as provided in paragraph (3),
except that—</text>
<subparagraph id="H49D3B5D1867F42A094D0DBC50662C865"><enum>(A)</enum><text display-inline="yes-display-inline">60 percent thereof shall be allocated to
qualified projects of public power providers, and</text>
</subparagraph><subparagraph id="H3BD85807C00741B196B29845D11C2210"><enum>(B)</enum><text>40 percent thereof
shall be allocated to qualified projects of cooperative electric
companies.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H1CD7E508ED4746858B4F89EA8C38EDCC"><enum>(2)</enum><header>Conforming
amendment</header><text>Paragraph (4) of section 54C(c) is amended by striking
<quote><header-in-text level="paragraph" style="OLC">Additional</header-in-text></quote> in the heading thereof and
inserting <quote><header-in-text level="paragraph" style="OLC">2009
additional</header-in-text></quote>.</text>
</paragraph></subsection><subsection id="H2FAAE7C9BB78409FA216AA5F474C70DB"><enum>(b)</enum><header>Energy storage
systems and biogas property made eligible for financing</header><text display-inline="yes-display-inline">Paragraph (1) of section 54C(d) is amended
by inserting <quote>or an energy storage system used in connection with
electric grids to support the use of intermittent sources of renewable
energy</quote> before <quote>owned by</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H574962F2789B433DA8661D186642BD00"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this subsection shall apply to
obligations issued after the date of the enactment of this Act.</text>
</subsection></section><section id="ID7FA8B8F124A54D64AE56E59849610C3D"><enum>203.</enum><header>Increased
research credit for energy research</header>
<subsection id="ID9FB7FE4E0C9F4CEAAA0C4DC737861202"><enum>(a)</enum><header>In
general</header><text>Section 41 is amended by redesignating subsection (h) as
subsection (i) and by inserting after subsection (g) the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="ID1A451F21DC654F07A93269F9253B35F8" style="OLC">
<subsection id="ID8246B49D63DC413EBA9D1B44715FF1ED"><enum>(h)</enum><header>Energy research
credit</header><text>In the case of any taxable year beginning in 2011 or
2012—</text>
<paragraph id="ID3947F63C6D3B495091909B398ED32F90"><enum>(1)</enum><header>In
general</header><text>The amounts determined under paragraphs (1) and (3) of
subsection (a) shall each be increased by 10 percent of the qualified energy
research expenses for the taxable year.</text>
</paragraph><paragraph id="ID4FF01CD0B0BC475288566B1C59B57609"><enum>(2)</enum><header>Qualified
energy research expenses</header><text>For purposes of this subsection—</text>
<subparagraph id="ID08B129F791064CCE9901201A9CE02556"><enum>(A)</enum><header>In
general</header><text>The term <term>qualified energy research expenses</term>
means so much of the taxpayer's qualified research expenses as are related to
the fields of fuel cells and battery technology, renewable energy and renewable
fuels, energy conservation technology, efficient transmission and distribution
of electricity, and carbon capture and sequestration.</text>
</subparagraph><subparagraph id="IDD6406937339144C78E5DFFA4AC22AAC2"><enum>(B)</enum><header>Coordination
with qualifying advanced energy project credit</header><text>Such term shall
not include expenditures taken into account in determining the amount of the
credit under section 48 or 48C.</text>
</subparagraph></paragraph><paragraph id="ID112987E07F0F4D22B6D8FE0B8925018B"><enum>(3)</enum><header>Coordination
with other research credits</header>
<subparagraph id="ID1AA6EEF8969247DAB2A1E9F6D528B8EF"><enum>(A)</enum><header>In
general</header><text>The amount of qualified energy research expenses taken
into account under subsection (a)(1)(A) shall not exceed the base
amount.</text>
</subparagraph><subparagraph id="ID8439E1CCFB694CCAB3E874A6EB0A4B8A"><enum>(B)</enum><header>Alternative
simplified credit</header><text>For purposes of subsection (c)(5), the amount
of qualified energy research expenses taken into account for the taxable year
for which the credit is being determined shall not exceed—</text>
<clause id="ID388BC66EBF6645A2AA7F5E1E607667B5"><enum>(i)</enum><text>in the case of
subsection (c)(5)(A), 50 percent of the average qualified research expenses for
the 3 taxable years preceding the taxable year for which the credit is being
determined, and</text>
</clause><clause id="ID366A5AFC989E463895576B6E943AE013"><enum>(ii)</enum><text>in the case of
subsection (c)(5)(B)(ii), zero.</text>
</clause></subparagraph><subparagraph id="ID8EC321791870431DA53F17F8A2CD192A"><enum>(C)</enum><header>Basic research
and energy research consortium payments</header><text>Any amount taken into
account under paragraph (1) shall not be taken into account under paragraph (2)
or (3) of subsection
(a).</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID7C18B17F28164F39BB35FA626D1B45C5"><enum>(b)</enum><header>Extension of
credit</header>
<paragraph id="H4CCFB68A5EC243A0A97224CEB0D3BC15"><enum>(1)</enum><header>In
general</header><text>Subparagraph (B) of section 41(h)(1) is amended by
striking <quote>December 31, 2009</quote> and inserting <quote>December 31,
2012</quote>.</text>
</paragraph><paragraph id="H84679879C65C452785689AE4950A7EC3"><enum>(2)</enum><header>Conforming
amendment</header><text>Subparagraph (D) of section 45C(b)(1) is amended by
striking <quote>December 31, 2009</quote> and inserting <quote>December 31,
2012</quote>.</text>
</paragraph></subsection><subsection id="HDCF4F02EA5E7447B9CA7CAA8EE9C2B08"><enum>(c)</enum><header>Effective
dates</header>
<paragraph id="id91C144F1DBC449C7A447FAC6722D83DD"><enum>(1)</enum><header>Increased
research credit</header><text>The amendments made by subsection (a) shall apply
to taxable years beginning after December 31, 2010.</text>
</paragraph><paragraph id="idDBF09B324C254D398C778705E3A0B88D"><enum>(2)</enum><header>Extension</header><text>The
amendments made by subsection (b) shall apply to amounts paid or incurred after
December 31, 2009.</text>
</paragraph></subsection></section><enum>III</enum><header>Promoting
conservation</header>
<section id="idBF69A757E63341E784383326A3A84214"><enum>301.</enum><header>Extension of
new energy efficient home credit</header>
<subsection id="id6553163BBF6A495284FFC9CCA734E94B"><enum>(a)</enum><header>In
general</header><text>Section 45L(g) is amended by striking <quote>December 31,
2009</quote> and inserting <quote>December 31, 2012</quote>.</text>
</subsection><subsection id="idCC8012F23DD94BDC9B281E8D68F4F681"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to qualified
new efficient energy homes acquired after December 31, 2009, in taxable years
ending after such date.</text>
</subsection></section><section id="idB21E4D6114B04C0889648A4788E50A44"><enum>302.</enum><header>Extension and
modification of nonbusiness energy credit</header>
<subsection id="id6CE1F13A7ABF4B3DA04B50926FC4EB5D"><enum>(a)</enum><header>Extension</header>
<paragraph id="id767DE84CAEBA462BB54581450BD6ADA0"><enum>(1)</enum><header>In
general</header><text>Section 25C(g)(2) is amended by striking <quote>December
31, 2010</quote> and inserting <quote>December 31, 2012</quote>.</text>
</paragraph><paragraph id="id55D6C6F9AF7B41A4B52F4F2F7072A097"><enum>(2)</enum><header>Limitation</header><text>Section
25C(b) is amended by striking <quote>2009 and 2010</quote> and inserting
<quote>2009, 2010, 2011, and 2012</quote>.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H5C5E3C1ABDA14A41B015989941959BA8"><enum>(b)</enum><header>Modification of
standards for windows, doors, and skylights</header><text>Paragraph (4) of
section 25C(c) is amended by striking <quote>unless</quote> and all that
follows and inserting “unless—</text>
<quoted-block display-inline="no-display-inline" id="HE8BD572F04A249ACB1B592C32DB0984B" style="OLC">
<subparagraph id="H431AB76D9B184CD782A879B8AE9B0890"><enum>(A)</enum><text>in the case of any
component placed in service after the date which is 90 days after the date of
the enactment of the <short-title>Clean Energy Technology
Leadership Act of 2010</short-title>, such component meets the criteria for
such components established by the 2010 Energy Star Program Requirements for
Residential Windows, Doors, and Skylights, Version 5.0 (or any subsequent
version of such requirements which is in effect after January 4, 2010),</text>
</subparagraph><subparagraph id="H588EA25A17BD4E7DAFD122B0F79FEA05"><enum>(B)</enum><text>in the case of any
component placed in service after the date of the enactment of the
<short-title>Clean Energy Technology Leadership Act of
2010</short-title> and on or before the date which is 90 days after such date,
such component meets the criteria described in subparagraph (A) or is equal to
or below a U factor of 0.30 and SHGC of 0.30, and</text>
</subparagraph><subparagraph id="H2B81130CF7C24CFE83FBB78CB3B88C06"><enum>(C)</enum><text>in the case of any
component which is a garage door, such component is equal to or below a U
factor of 0.30 and SHGC of
0.30.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection display-inline="no-display-inline" id="id411C4E8B8D5A475B9D4460C96C3FAA56"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on the
date of the enactment of this Act.</text>
</subsection></section><section display-inline="no-display-inline" id="H2D84851D43AB4C10B233023D53641D37" section-type="subsequent-section"><enum>303.</enum><header>Energy efficient
commercial buildings deduction</header>
<subsection id="HBAD1CF6A93064355BAB384746F7FFA70"><enum>(a)</enum><header>Certified
historic structures</header><text>Section 179D is amended by redesignating
subsection (g) as subsection (h) and by inserting after subsection (f) the
following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HA17E9CF8F64946C9A6B5773B033C14A9" style="OLC">
<subsection id="HBE94975269E7439CA529A9FB86014DD8"><enum>(g)</enum><header>Special rules
for certified historic structures</header><text display-inline="yes-display-inline">In the case of energy efficient commercial
building property installed on or in a certified historic structure (as defined
in section 47(c)(3)) in connection with a certified rehabilitation (as defined
in section 47(c)(2)(C))—</text>
<paragraph id="H6F4F75FDE4904220986C729D504506D1"><enum>(1)</enum><text>subsection
(c)(1)(D) shall be applied by substituting <quote>30 percent</quote> for
<quote>50 percent</quote>,</text>
</paragraph><paragraph id="HCABBAF02C7124BED82792201E9033B3A"><enum>(2)</enum><text>subsection
(b)(1)(A) shall be applied by substituting <quote>$3.00</quote> for
<quote>$1.80</quote>,</text>
</paragraph><paragraph id="HBBA6A919D7CF4D6189EBA991C657C02B"><enum>(3)</enum><text>subparagraphs (A)
and (C)(i) of subsection (d)(1) shall be applied by substituting
<quote>$1.00</quote> for <quote>$.60</quote> and the substitutions described in
such subparagraphs shall be made without regard to the substitution described
in paragraph (2), and</text>
</paragraph><paragraph id="H5400D32E2C474374A619F39764AD29E3"><enum>(4)</enum><text>the amount of any
credit under section 47 with respect to such property shall be determined
without regard to any reduction in the basis of such property under subsection
(e).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H80C0386EE10C4E14A40B7F65B965A726"><enum>(b)</enum><header>Energy efficient
roofs</header><text display-inline="yes-display-inline">Paragraph (1) of
section 179D(d) is amended by adding at the end the following new
subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H4FD7725496D64C999F41533E1A28D097" style="OLC">
<subparagraph id="HD7F4FD21EE404D02B2DC3FFF08D5DA41"><enum>(C)</enum><header>Special rule for
energy efficient roofs</header>
<clause id="H0D28E9D1048C4C68B23B3BFB353511BC"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">If—</text>
<subclause id="HD1B95D09FF5542ACA83C05A03B0537B2"><enum>(I)</enum><text>the building
envelope is not treated as meeting the requirements of subsection (c)(1)(D)
under subparagraph (A) of this paragraph, but</text>
</subclause><subclause id="H2E453A818EBD454FB9EC0DD0CB37010B"><enum>(II)</enum><text>the roof exceeds
the minimum requirements of Standard 90.1–2001 by 50 percent or more,</text>
</subclause><continuation-text continuation-text-level="clause">then the
requirement of subsection (c)(1)(D) shall be treated as met with respect to the
roof, and the deduction under subsection (a) shall be allowed with respect to
energy efficient commercial building property installed as part of such roof,
except that subsection (b) shall be applied to such property by substituting
<quote>the applicable percentage of $.60</quote> for
<quote>$1.80</quote>.</continuation-text></clause><clause id="H2735E107E53D469A95E9F944FA0D9740"><enum>(ii)</enum><header>Applicable
percentage</header><text display-inline="yes-display-inline">For purposes of
this subparagraph, the term <quote>applicable percentage</quote> means the
ratio (expressed as a percentage) of—</text>
<subclause id="HAD15D78651DE41669FE0DF0346B34EBE"><enum>(I)</enum><text>the square footage
of the roof, over</text>
</subclause><subclause id="HED8BF125BEEB455F8E8A2530F3A78DDB"><enum>(II)</enum><text>the square
footage of the building
envelope.</text>
</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H57A1D49F13174007A17B8823C07458F4"><enum>(c)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to property
placed in service after the date of the enactment of this Act.</text>
</subsection></section><enum>IV</enum><header>Transportation</header>
<section commented="no" id="HF9ED42E3437C428DA340990018777639"><enum>401.</enum><header>Credit for
qualified natural gas motor vehicles</header>
<subsection commented="no" id="id62A9E096C24E45249A80D7C06287C330"><enum>(a)</enum><header>In
general</header>
<paragraph commented="no" id="id9B8C06D8E34A415C8BE2E37CB7EC6DA2"><enum>(1)</enum><header>In
general</header><text>Subsection (e) of section 30B (relating to new qualified
alternative fuel motor vehicle credit) is amended by adding at the end the
following new paragraphs:</text>
<quoted-block display-inline="no-display-inline" id="idBFE8E63FA155447DA286F798F0262CA9" style="OLC">
<paragraph commented="no" id="idB3B7A3B9C9C34366A111CA615DB5004F"><enum>(6)</enum><header>Special rules
for qualified natural gas motor vehicles</header>
<subparagraph commented="no" id="id8ACFF32708D348699779F961A7BCF45E"><enum>(A)</enum><header>In
general</header><text>In the case of a qualified natural gas motor
vehicle—</text>
<clause commented="no" id="id7FABE71012024D22B0112F62DF23977D"><enum>(i)</enum><text>such motor
vehicle shall be treated as a new qualified alternative fuel motor vehicle
under this subsection,</text>
</clause><clause commented="no" id="id1CD95E5D894B45A6A7B5E600F59D0CE6"><enum>(ii)</enum><text>paragraph (3)
shall be applied by multiplying each of the dollar amounts contained in such
paragraph by 2, and</text>
</clause><clause commented="no" id="idECED8836F0744CA4891F48F41EAF684A"><enum>(iii)</enum><text>the credit
allowed under this subsection shall be transferrable as provided in
subparagraph (B).</text>
</clause></subparagraph><subparagraph id="idEDB23EFC10154C1A9133EC957500964D"><enum>(B)</enum><header>Transferability
of credit</header>
<clause id="idE123F72E27884DF2885BC7913A05DF37"><enum>(i)</enum><header>In
general</header><text>A taxpayer who places in service qualified natural gas
motor vehicle may transfer the credit allowed under this subsection with
respect to such vehicle through an assignment to the seller, the manufacturer,
or the lessee of such vehicle. Such transfer may be revoked only with the
consent of the Secretary.</text>
</clause><clause id="id72B1EE1B8D1846AB8002C294EB97C77C"><enum>(ii)</enum><header>Regulations</header><text>The
Secretary shall prescribe such regulations as necessary to ensure that any
credit transferred under clause (i) is claimed once and not reassigned by such
other person.</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="idF7FB1E68CF1C42F9BF4FE7BF9BB142C5"><enum>(7)</enum><header>Qualified
natural gas motor vehicle</header>
<subparagraph commented="no" id="id65CA3A994D834292AD3519AE19867A24"><enum>(A)</enum><header>In
general</header><text>For purposes of this subsection, the term <term>qualified
natural gas motor vehicle</term> means any motor vehicle—</text>
<clause commented="no" id="id52A407E777CF4F938B7A1770B17A1350"><enum>(i)</enum><text>which is
described in subparagraph (B), (C), or (D),</text>
</clause><clause commented="no" id="idFD0B976737EA461EA6B456783C16559F"><enum>(ii)</enum><text>the original use
of which commences with the taxpayer, and</text>
</clause><clause commented="no" id="idCB929495C4CA45E39EC7F3DBE48B0748"><enum>(iii)</enum><text>which is
acquired by the taxpayer for use or lease, but not for resale.</text>
</clause></subparagraph><subparagraph commented="no" id="idBA9D3B4637FD43A2B2BE35D198E51292"><enum>(B)</enum><header>Heavy duty
vehicles</header><text>A motor vehicle is described in this subparagraph if
such motor vehicle—</text>
<clause id="id76A09BFA72144E0295AD4D1D773CD55B"><enum>(i)</enum><text>is made by a
manufacturer,</text>
</clause><clause id="id2A38F1C834284CCFA1D4071BCFA98C18"><enum>(ii)</enum><text>has a gross
vehicle weight rating of more than 8,500 pounds, and</text>
</clause><clause id="id756B49FC4641454CAF077B3B90458C2E"><enum>(iii)</enum><text>is—</text>
<subclause id="id2FD7E744D7A6444EBBCD0BE311317B4F"><enum>(I)</enum><text>only capable of
operating on compressed or liquified natural gas, or</text>
</subclause><subclause id="id5E54E12FD7894BC6BEFA21A80DABC60B"><enum>(II)</enum><text>capable of
operating for more than 175 miles on 1 fueling of compressed or liquified
natural gas and is capable of operating on gasoline or diesel fuel.</text>
</subclause></clause></subparagraph><subparagraph id="id9726767240C54C5489A4C51A80648BEB"><enum>(C)</enum><header>Light and
medium duty vehicles</header><text>A motor vehicle is described in this
subparagraph if such motor vehicle—</text>
<clause id="id5A2E6691CB4749F7B7BA67B0BD53348A"><enum>(i)</enum><text>is made by a
manufacturer,</text>
</clause><clause id="id7412191B0077434ABE051120064557F1"><enum>(ii)</enum><text>has a gross
vehicle weight rating of not more 8,500 pounds,</text>
</clause><clause id="id097FE98C4E07464C8F1BF3BFDBC28BA0"><enum>(iii)</enum><text>is—</text>
<subclause id="id45216AFEFD744CAA962A3260883F20ED"><enum>(I)</enum><text>only capable of
operating on compressed or liquified natural gas, or</text>
</subclause><subclause id="idF523023BBB9D41C0B6A42C2345FC8FFC"><enum>(II)</enum><text>capable of
operating for more than 175 miles on 1 fueling of compressed or liquified
natural gas and is capable of operating on gasoline or diesel fuel,</text>
</subclause></clause><clause id="idD696B23F3B444FAE96EFAC23F8C4ED34"><enum>(iv)</enum><text>is of a
character subject to depreciation, and</text>
</clause><clause id="id854397D9F13D46209C7E39209417777E"><enum>(v)</enum><text>is acquired by a
taxpayer who—</text>
<subclause id="idED14FBEDB93E41B68EEEB71257C5915C"><enum>(I)</enum><text>owns and operates
not less than 10 motor vehicles in the course of a trade or business at the
time of the acquisition, and</text>
</subclause><subclause id="idE7D69739E2DE4EC7A9E6186B9C025583"><enum>(II)</enum><text>has placed in
service more than 2 motor vehicles described in clauses (i) through (iv) or
described in subparagraph (D)(iii) after the date of the enactment of this
paragraph.</text>
</subclause></clause></subparagraph><subparagraph id="idFDA08C39DC144B19B2D10E2E3BEA4914"><enum>(D)</enum><header>Converted or
repowered vehicles</header>
<clause id="idF25EE315E0E54231943C3728A5D34156"><enum>(i)</enum><header>In
general</header><text>A motor vehicle is described in this subparagraph if such
motor vehicle is a motor vehicle described in clause (ii) or clause (iii) which
is converted or repowered so that it—</text>
<subclause id="id6343D329889F4984829D74CDB8B01117"><enum>(I)</enum><text>is only capable
of operating on compressed or liquified natural gas, or</text>
</subclause><subclause id="idCCE9C50716F444D392867DC6B045054D"><enum>(II)</enum><text>is capable of
operating for more than 175 miles on 1 fueling of compressed or liquified
natural gas and is capable of operating on gasoline or diesel fuel, is capable
of operating on compressed or liquefied natural gas.</text>
</subclause></clause><clause id="id88AE05B889A54576B802A01F39AF9D7F"><enum>(ii)</enum><header>Heavy duty
vehicles</header><text>A motor vehicle is described in this clause if such
motor vehicle—</text>
<subclause id="id9F485101270E467087CE495EB55D6B54"><enum>(I)</enum><text>has a gross
vehicle weight rating of more than 8,500 pounds, and</text>
</subclause><subclause id="id04E4660C4D9A4FC683473474DAF00143"><enum>(II)</enum><text>was not capable
of operating on compressed or liquified natural gas before the date of such
conversion or repower.</text>
</subclause></clause><clause id="idEE42A6D0A9934C3D8B099CF9F71E198B"><enum>(iii)</enum><header>Light and
medium duty vehicles</header><text>A motor vehicle is described in this clause
if such motor vehicle—</text>
<subclause id="id8754D42F177C4F08A137F27C56D41AAA"><enum>(I)</enum><text>has a gross
vehicle weight rating of not more 8,500 pounds,</text>
</subclause><subclause id="id29E47C5217EB4175ACFAD77C5BE26B51"><enum>(II)</enum><text>was not capable
of operating on compressed or liquified natural gas before the date of such
conversion or repower,</text>
</subclause><subclause id="id72D9AD1B801A4ACBA7620B2D7534CB5A"><enum>(III)</enum><text>is of a
character subject to depreciation,</text>
</subclause><subclause id="id942B26C30ECD419589C5F9A68533F969"><enum>(IV)</enum><text>is acquired by a
taxpayer who owns and operates not less than 10 motor vehicles in the course of
a trade or business at the time of the acquisition, and</text>
</subclause><subclause id="idA4AF16F4D5CE4C79B0387B253E48C5B0"><enum>(V)</enum><text>is acquired by a
taxpayer who has placed in service more than 2 motor vehicles described in
subclauses (I) through (III) or described in subparagraph (C) after the date of
the enactment of this paragraph.</text>
</subclause></clause><clause id="id9BA822D5AAD84981B88982F2B25A37B3"><enum>(iv)</enum><header>Special
rules</header>
<subclause id="HB562868D9851422381FDE152EC63DBD3"><enum>(I)</enum><header>Treatment as
new</header><text>For purposes of this subsection, the original use of any
motor vehicle described in clause (i) shall be treated as beginning with the
first use after the date of the conversion or repower.</text>
</subclause><subclause id="H8EDF3211241941698BA4B394A0E8EEDC"><enum>(II)</enum><header>Rule of
construction</header><text>In the case of a used vehicle which is converted or
repowered, nothing in this section shall be construed to require that the motor
vehicle be acquired in the year the credit is claimed under this section with
respect to such vehicle.</text>
</subclause></clause></subparagraph><subparagraph id="idA904550D0A4B465C911B33DF990EDF56"><enum>(E)</enum><header>Special
rule</header><text>For purposes of this subsection, in the case of a motor
vehicle which—</text>
<clause id="id02D4C1FD62114F049C6FE239B97FAE4D"><enum>(i)</enum><text>is described in
subparagraph (C) or (D)(iii),</text>
</clause><clause id="id50CA1B084EA14C329CD91BE1B62ABCDE"><enum>(ii)</enum><text>is placed in
service after the date of the enactment of this paragraph, and</text>
</clause><clause id="idE424F5E5FBB041998D3704E2DD833F2D"><enum>(iii)</enum><text>is placed in
service by a taxpayer in a taxable year prior to the taxable year in which such
taxpayer places in service the third such motor vehicle described in
subparagraph (C) or (D)(iii) after such date of enactment.</text>
</clause><continuation-text continuation-text-level="subparagraph">Such
motor vehicle shall be treated as placed in service in the taxable year in
which such third motor vehicle is placed in
service.</continuation-text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="idE97BB44401B94B8E998CAC9863264481"><enum>(2)</enum><header>Conforming
amendment</header><text>Subparagraph (B) of section 30B(e)(5) is amended by
inserting <quote>(other than a qualified natural gas motor vehicle)</quote>
after <quote>paragraph (3)</quote>.</text>
</paragraph></subsection><subsection id="id10871E78E71B4C3B91D971A7571BD5CB"><enum>(b)</enum><header>Mixed-Fuel
vehicles</header><text>Subparagraph (C) of section 30B(e)(5) is amended by
striking <quote>a mixed-fuel vehicle which operates using</quote> and all that
follows and inserting</text>
<quoted-block display-inline="yes-display-inline" id="id93EA8DB6C5D3428F8FE08F1CAC641DF4" style="OLC">
<text>a mixed-fuel vehicle
which—</text><clause id="id25ADC8C74E7C4243843F0D15CF99AD99"><enum>(i)</enum><text>in the case of
such a vehicle which is capable of operating on compressed or liquified natural
gas, operates using at least 65 percent compressed or liquified natural gas and
not more than 35 percent petroleum-based fuel, and</text>
</clause><clause id="id3DEA8D5F08ED46D2ABAC6BDCB4F527FB"><enum>(ii)</enum><text>in the case of
any other such vehicle, operates using at least 75 percent alternative fuel and
not more than 25 percent petroleum-based
fuel.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idB6CBAF008AE143F6B0309A60806F7739"><enum>(c)</enum><header>Extension of
credit</header><text>Paragraph (4) of section 30B(k) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="idCA99AFAB0AAE433F98746A43AC83BD39" style="OLC">
<paragraph id="id7F31E74846F246D8B790535BCF33D2E4"><enum>(4)</enum><text>in the case
of—</text>
<subparagraph id="id309B199D9EFB42A1B146085B0BBDAFB7"><enum>(A)</enum><text>a new qualified
alternative fuel vehicle (as described in subsection (e)) which is a qualified
natural gas motor vehicle (as described in subsection (e)(7)), December 31,
2014, and</text>
</subparagraph><subparagraph id="id16F2B535A76B4054BCA197AF36D86BC6"><enum>(B)</enum><text>in the case of
any other new qualified alternative fuel vehicle (as described in subsection
(e)), December 31,
2010.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id81C59E26582646D6AD6DF013B43AC605"><enum>(d)</enum><header>Alternative
minimum tax treatment</header><text>Subparagraph (B) of section 38(c)(4) is
amended by redesignating clauses (i) through (ix) as clauses (ii) through (x),
respectively, and by inserting after before clause (ii) (as so redesignated)
the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="id50071F15DBAB46AB92241C58E91FD63E" style="OLC">
<clause id="ID7ffd07d8971a4532b6eff98a321c30b9"><enum>(i)</enum><text>the amount of the
credit determined under section 30B which is attributable to a qualified
natural gas motor vehicle (as defined in section
30B(e)(7)).</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H6ABEFCEF80494E8B86CF22B397D3CFD0"><enum>(e)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to property
placed in service after the date of the enactment of this Act.</text>
</subsection></section><section id="H6B25A6F4A05D496FB27613A35C8F9EDD"><enum>402.</enum><header>Natural gas
vehicle bonds</header>
<subsection id="idE923CA26090649DE85919D7840598278"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subpart I of part IV
of subchapter A of chapter 1 (relating to qualified tax credit bonds) is
amended by adding at the end the following new section:</text>
<quoted-block display-inline="no-display-inline" id="idBF9F5FB722954E88BB07677F122C52BD" style="OLC">
<section id="ID69f9d6dc09264b2e99fbc3f53090ad73"><enum>54G.</enum><header>Natural gas
vehicle bonds</header>
<subsection id="ID645d81a51d2d4387822d308b5e37fe36"><enum>(a)</enum><header>Natural gas
vehicle bond</header><text>For purposes of this subpart, the term <term>natural
gas vehicle bond</term> means any bond issued as part of an issue if—</text>
<paragraph id="idD526EAD251B14BFA8E347E578F6311AB"><enum>(1)</enum><text>100 percent of
the available project proceeds of such issue are to be used for capital
expenditures incurred by a governmental body for 1 or more qualified natural
gas vehicle projects placed in service by such governmental body primarily for
governmental or public use,</text>
</paragraph><paragraph id="id689E4B94BA5A4EA3B66EEBFD359D9CCF"><enum>(2)</enum><text>the bond is
issued by a governmental body,</text>
</paragraph><paragraph id="id34C7E7313B574291A00B8F14ACDB883D"><enum>(3)</enum><text>the issuer
designates such bond for purposes of this section, and</text>
</paragraph><paragraph id="idBB872D692BD44B33AF551EFEDE75DA0A"><enum>(4)</enum><text>in lieu of the
requirements of section 54A(d)(2), the issue meets the requirements of
subsection (c).</text>
</paragraph></subsection><subsection id="IDf89bdd064a8c4a1a8d165dbb512aad58"><enum>(b)</enum><header>Limitation on
amount of bonds designated</header>
<paragraph id="idB9A48C019AAF40A592B7854D1629A07A"><enum>(1)</enum><header>In
general</header><text>The maximum aggregate face amount of bonds which may be
designated under subsection (a) by any issuer shall not exceed the limitation
amount allocated under this subsection to such issuer.</text>
</paragraph><paragraph id="ID584e7016c80e46ccac214bb86d9df6ec"><enum>(2)</enum><header>National
limitation on amount of bonds designated</header><text>There is a national
natural gas vehicle bond limitation of $3,000,000,000.</text>
</paragraph><paragraph id="ID2d2d0639f4e74ca995ee4e308a2cb8f1"><enum>(3)</enum><header>Allocation by
Secretary</header><text>The Secretary shall allocate the amount described in
paragraph (2) among qualified natural gas vehicle projects in such manner as
the Secretary determines appropriate.</text>
</paragraph></subsection><subsection id="ID9a90ba234b304043ab3a5365a37c0c23"><enum>(c)</enum><header>Special rules
relating to expenditures</header>
<paragraph id="ID675909b3c32b4749a244a9ffd26c648a"><enum>(1)</enum><header>In
general</header><text>An issue shall be treated as meeting the requirements of
this subsection if, as of the date of issuance, the issuer reasonably
expects—</text>
<subparagraph id="ID723f641d246844c8b5a59803cc7d4b5d"><enum>(A)</enum><text>100 percent or
more of the available project proceeds of such issue are to be spent for 1 or
more qualified natural gas vehicle projects within the 5-year period beginning
on the date of issuance of the natural gas vehicle bond,</text>
</subparagraph><subparagraph id="idF7A11260DBCC4E4AA45E800B0511DA90"><enum>(B)</enum><text>a binding
commitment with a third party to spend at least 10 percent of such available
project proceeds will be incurred within the 6-month period beginning on the
date of issuance of the natural gas vehicle bond, and</text>
</subparagraph><subparagraph id="id2E1DE313F17D4D26A985D075D3F0F45C"><enum>(C)</enum><text>such projects
will be completed with due diligence and such available project proceeds will
be spent with due diligence.</text>
</subparagraph></paragraph><paragraph id="ID24077af2179c4abe9939cd05f85841d8"><enum>(2)</enum><header>Extension of
period</header><text>Upon submission of a request prior to the expiration of
the period described in paragraph (1)(A), the Secretary may extend such period
if the issuer establishes that the failure to satisfy the 5-year requirement is
due to reasonable cause and the related projects will continue to proceed with
due diligence.</text>
</paragraph><paragraph id="ID92f7cc8a51c74bd8a2168c41c8b31b13"><enum>(3)</enum><header>Failure to
spend required amount of bond proceeds within 5 years</header><text>To the
extent that less than 100 percent of the available project proceeds of such
issue are expended by the close of the 5-year period beginning on the date of
issuance (or if an extension has been obtained under paragraph (2), by the
close of the extended period), the issuer shall redeem all of the nonqualified
bonds within 90 days after the end of such period. For purposes of this
paragraph, the amount of the nonqualified bonds required to be redeemed shall
be determined in the same manner as under section 142.</text>
</paragraph></subsection><subsection id="ID88e602ee13df4b26b5df3ce70e80ac81"><enum>(d)</enum><header>Governmental
body</header><text>For purposes of this section, the term <term>governmental
body</term> means any State, territory, possession of the United States, the
District of Columbia, Indian tribal government, and any political subdivision
thereof.</text>
</subsection><subsection id="ID70ab0565fede40feb7dd0563b864d3ce"><enum>(e)</enum><header>Qualified
natural gas vehicle project</header><text>For purposes of this subpart, the
term <term>qualified natural gas vehicle project</term> means—</text>
<paragraph id="idAACE15E00DF244F59ED5348431B3019D"><enum>(1)</enum><text display-inline="yes-display-inline">1 or more qualified natural gas vehicles
(as defined in section 30B(e)(7)), or</text>
</paragraph><paragraph id="id6AE87B1CB19C46E186360814060275C7"><enum>(2)</enum><text display-inline="yes-display-inline">1 or more qualified alternative fuel
vehicle refueling properties which are used to store and or dispense compressed
or liquefied natural gas (within the meaning of section 30C(c)).</text>
</paragraph></subsection><subsection id="IDf2b171f688b64e4a91ad590fcc14b878"><enum>(f)</enum><header>Termination</header><text>This
section shall not apply with respect to any bond issued after December 31,
2019.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID9ef415c8e95a448b9297715d27cba612"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="ID8781c688b63340b89ba26a53fd7d8379"><enum>(1)</enum><text>Paragraph (1) of
section 54A(d) is amended by striking <quote>or</quote> at the end of
subparagraph (D), by inserting <quote>or</quote> at the end of subparagraph
(E), and by inserting after subparagraph (E) the following new
subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="id8C32B11CD1E4430F89732E26A66CD06B" style="OLC">
<subparagraph id="IDf2b1394773fd4443b24b2dd72a811926"><enum>(F)</enum><text>a natural gas
vehicle
bond,</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID0816fec5c18c4f5aad7af3f59f717713"><enum>(2)</enum><text>Subparagraph (C)
of section 54A(d)(2) is amended by striking <quote>and</quote> at the end of
clause (iv), by striking the period at the end of clause (v) and inserting
<quote>, and</quote>, and by adding at the end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="id5501F8658A334C2EA37322FFD83F3C46" style="OLC">
<clause id="IDe17f63e351c642cfb7c70009c00a3f65"><enum>(vi)</enum><text>in the case of a
natural gas vehicle bond, a purpose specified in section
54G(a)(1).</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id29F1F2349D6D49AAA693DC93CE1B70EE"><enum>(c)</enum><header>Clerical
amendment</header><text>The table of sections for subpart I of part IV of
subchapter A of chapter 1 is amended by adding at the end the following new
item:</text>
<quoted-block id="idf7d6bef2-336f-4013-9dee-4a1b75e70b72" style="OLC">
<toc>
<toc-entry idref="ID69f9d6dc09264b2e99fbc3f53090ad73" level="section">Sec. 54G. Natural gas vehicle
bonds.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID9feb4fd50f304bdaacbde7957564c70e"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to bonds
issued after the date of the enactment of this Act.</text>
</subsection></section><section id="id93821A5DCBA04BB6B7E26FC4115E5F09"><enum>403.</enum><header>Incentives for
manufacturing facilities producing vehicles fueled by compressed or liquified
natural gas</header>
<subsection id="id8927D006A81F411F9140F1B9AA6A404D"><enum>(a)</enum><header>Deduction for
manufacturing facilities</header><text>Part VI of subchapter B of chapter 1
(relating to itemized deductions for individuals and corporations) is amended
by inserting after section 179E the following new section:</text>
<quoted-block display-inline="no-display-inline" id="id5ADB6E5FC421473EA6C17B9F057F442E" style="OLC">
<section id="id98128FC7158C40E7AEABF0734E8B8A5B"><enum>179F.</enum><header>Expensing for
manufacturing facilities producing vehicles fueled by compressed natural gas or
liquified natural gas</header>
<subsection id="id2DF1098B377746E28DB892E48CE89426"><enum>(a)</enum><header>Treatment as
expenses</header><text>A taxpayer may elect to treat the applicable percentage
of the cost of any qualified natural gas vehicle manufacturing facility
property as an expense which is not chargeable to a capital account. Any cost
so treated shall be allowed as a deduction for the taxable year in which the
qualified manufacturing facility property is placed in service.</text>
</subsection><subsection id="id65B9782CD9724B79A51A6ED26707A28F"><enum>(b)</enum><header>Applicable
percentage</header><text>For purposes of subsection (a), the applicable
percentage is—</text>
<paragraph id="idFFE11F00F2D142D5A0EDE3BB9DDC1374"><enum>(1)</enum><text>100 percent, in
the case of qualified natural gas vehicle manufacturing facility property which
is placed in service before January 1, 2013, and</text>
</paragraph><paragraph id="id7140944257B24F2DABFC9A716D2E169C"><enum>(2)</enum><text>50 percent, in
the case of qualified natural gas vehicle manufacturing facility property which
is placed in service after December 31, 2012, and before January 1,
2015.</text>
</paragraph></subsection><subsection id="ID68b0b01685d04dcfb2c4399b4759a6b0"><enum>(c)</enum><header>Election</header>
<paragraph id="IDcee8946d276c4f1184e3c913f04970cb"><enum>(1)</enum><header>In
general</header><text>An election under this section for any taxable year shall
be made on the taxpayer's return of the tax imposed by this chapter for the
taxable year. Such election shall be made in such manner as the Secretary may
by regulations prescribe.</text>
</paragraph><paragraph id="ID733c924abc96478fbe85b229ee90c594"><enum>(2)</enum><header>Election
irrevocable</header><text>Any election made under this section may not be
revoked except with the consent of the Secretary.</text>
</paragraph></subsection><subsection id="id5D919ACCD75E4C269DD3A35B35C4B4F2"><enum>(d)</enum><header>Qualified
natural gas vehicle manufacturing facility property</header><text>For purposes
of this section—</text>
<paragraph id="id18A06A84882B4AAB8037426AC0F79146"><enum>(1)</enum><header>In
general</header><text>The term <term>qualified natural gas vehicle
manufacturing facility property</term> means any qualified property—</text>
<subparagraph id="id15010DDCE17C42AE8B5EF3BBEDBC04B7"><enum>(A)</enum><text>the original use
of which commences with the taxpayer,</text>
</subparagraph><subparagraph id="id5CF3E76C68EF4A6EB13EEDFC8BC195AF"><enum>(B)</enum><text>which is placed
in service by the taxpayer after the date of the enactment of this section and
before January 1, 2015, and</text>
</subparagraph><subparagraph id="id0036B2467F344EEB8E201E70EFEC723F"><enum>(C)</enum><text>no written
binding contract for the construction of which was in effect on or before the
date of the enactment of this section.</text>
</subparagraph></paragraph><paragraph id="idCE0A072E32134EBAA4787F2D8E5D335D"><enum>(2)</enum><header>Qualified
property</header>
<subparagraph id="id40F95BF412774D188DD119F98A659EDE"><enum>(A)</enum><header>In
general</header><text>The term <term>qualified property</term> means any
property which is a facility or a portion of a facility used for the production
of—</text>
<clause id="id79C2636961C74E84BA7DB887E976BDEE"><enum>(i)</enum><text>any qualified
natural gas vehicles (as defined in section 30B(e)(7)), or</text>
</clause><clause id="id6AAE7CD0956E4AE4AB689CD95FE66D70"><enum>(ii)</enum><text>any eligible
component.</text>
</clause></subparagraph><subparagraph id="id52EF9FF33AAC45E6BCC3430668B97369"><enum>(B)</enum><header>Eligible
component</header><text>The term <term>eligible component</term> means any
component which is designed specifically for use in such a qualified natural
gas vehicle.</text>
</subparagraph></paragraph></subsection><subsection id="id1BFFFAB6726B4270AE7DF1FB091854C2"><enum>(e)</enum><header>Special rule
for dual use property</header>
<paragraph id="id422B249CDD1A4A0BB63B0B053E48CDAF"><enum>(1)</enum><header>In
general</header><text>In the case of any qualified natural gas vehicle
manufacturing facility property which is used to produce both property
described in clauses (i) and (ii) of subsection (d)(2)(A) and property which is
not so described, the amount of costs taken into account under subsection (a)
shall be reduced by an amount equal to—</text>
<subparagraph id="id216092DB55B84B8FBCF5963071D22674"><enum>(A)</enum><text>the total amount
of such costs (determined before the application of this subsection),
multiplied by</text>
</subparagraph><subparagraph id="id36E60ED4DED548C8880B565320542A16"><enum>(B)</enum><text>the percentage of
property expected to be produced which is not so described.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id012F2033082A499284464D232D7B1555"><enum>(2)</enum><header display-inline="yes-display-inline">Regulations</header><text display-inline="yes-display-inline">The Secretary shall prescribe such
regulations as are necessary to carry out the purpose of this
subsection.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id1A93577851684727AB23F64E5F2811B1"><enum>(b)</enum><header>Refund of
credit for prior year minimum tax liability</header><text>Section 53 (relating
to credit for prior year minimum tax liability) is amended by adding at the end
the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="id312755A726AC42CCB86712447E353B8C" style="OLC">
<subsection id="idF588F99A65A74928A40340D4AD612CB4"><enum>(g)</enum><header>Election To
treat amounts attributable to qualified manufacturing facility</header>
<paragraph id="id7F19FBF331C544BF84D999F4C8617C2A"><enum>(1)</enum><header>In
general</header><text>In the case of an eligible taxpayer, the amount
determined under subsection (c) for the taxable year (after the application of
subsection (e)) shall be increased by an amount equal to the applicable
percentage of any qualified natural gas vehicle manufacturing facility property
which is placed in service during the taxable year.</text>
</paragraph><paragraph id="id4E0F41D267734B1E874E8A3E29C10575"><enum>(2)</enum><header>Applicable
percentage</header><text>For purposes of paragraph (1), the applicable
percentage is—</text>
<subparagraph id="id56860D6EEAB3450DACCFADB1332476C0"><enum>(A)</enum><text>35 percent, in
the case of qualified natural gas vehicle manufacturing facility property which
is placed in service before January 1, 2013, and</text>
</subparagraph><subparagraph id="id63A7015694D2419BB1FBF1A986A3D2A7"><enum>(B)</enum><text>17.5 percent, in
the case of qualified natural gas vehicle manufacturing facility property which
is placed in service after December 31, 2012, and before January 1,
2015.</text>
</subparagraph></paragraph><paragraph id="id80643336A1024C54AA2B5D8E01EA9539"><enum>(3)</enum><header>Eligible
taxpayer</header><text>For purposes of this subsection, the term <term>eligible
taxpayer</term> means any taxpayer—</text>
<subparagraph id="idBFF49C67D3D74411AF8CD9D18CAA225D"><enum>(A)</enum><text>who places in
service qualified natural gas vehicle manufacturing facility property during
the taxable year,</text>
</subparagraph><subparagraph id="id62A423CA2E4E450B8C9B725065F3E5CD"><enum>(B)</enum><text>who does not make
an election under section 179F(c), and</text>
</subparagraph><subparagraph id="id64B8961337C149478EA0EA944CB678F3"><enum>(C)</enum><text>who makes an
election under this subsection.</text>
</subparagraph></paragraph><paragraph id="idD235D1A20F044B569922662D10551614"><enum>(4)</enum><header>Other
definitions and special rules</header>
<subparagraph id="id5DD81B039D4A403A9A1FBF93CA101DD1"><enum>(A)</enum><header>Qualified
natural gas vehicle manufacturing facility property</header><text>The term
<term>qualified natural gas vehicle manufacturing facility property</term> has
the meaning given such term under section 179F(d).</text>
</subparagraph><subparagraph id="id47D641E85D614C669B6E83A6E1073EB6"><enum>(B)</enum><header>Special rule
for dual use property</header><text>In the case of any qualified natural gas
vehicle manufacturing facility property which is used to produce both qualified
property (as defined in section 179F(d)) and other property which is not
qualified property, the amount of costs taken into account under paragraph (1)
shall be reduced by an amount equal to—</text>
<clause id="idD3AF2772A4734DCC9F808DA9655494F9"><enum>(i)</enum><text>the total amount
of such costs (determined before the application of this subparagraph),
multiplied by</text>
</clause><clause id="id4F59EBCAC91647AC838B0D9D0ED46B61"><enum>(ii)</enum><text>the percentage
of property expected to be produced which is not qualified property.</text>
</clause></subparagraph><subparagraph id="id9D1D8543DB214712B27BB669B539BC00"><enum>(C)</enum><header>Election</header>
<clause id="idD51A1818D08C4A459CF4203D8C5464FA"><enum>(i)</enum><header>In
general</header><text>An election under this subsection for any taxable year
shall be made on the taxpayer's return of the tax imposed by this chapter for
the taxable year. Such election shall be made in such manner as the Secretary
may by regulations prescribe.</text>
</clause><clause id="idC29F856A1B614C4583BF0A1D3AA66BED"><enum>(ii)</enum><header>Election
irrevocable</header><text>Any election made under this subsection may not be
revoked except with the consent of the Secretary.</text>
</clause></subparagraph></paragraph><paragraph id="id0C383E6320814A7D8C8FC92FBB2115F1"><enum>(5)</enum><header>Credit
refundable</header><text>For purposes of this title (other than this section),
the credit allowed by reason of this subsection shall be treated as if it were
allowed under subpart
C.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id3D55D91E5DEF4384AF63BA52B08EECF5"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after the date of the enactment of this Act.</text>
</subsection></section><section id="HADE332C560F646CA941CC0BEBB13ABE2"><enum>404.</enum><header>Transportation
fringe benefits</header>
<subsection id="H91BA6BCEC0274EA48474828A8356D95D"><enum>(a)</enum><header>Extension of
parity for mass transit fringe benefits</header><text display-inline="yes-display-inline">Paragraph (2) of section 132(f) is amended
by striking <quote>January 1, 2011</quote> in the last sentence and inserting
<quote>January 1, 2013</quote>.</text>
</subsection><subsection id="H6C2A300A06FC43509BFEFD46E8C10E9F"><enum>(b)</enum><header>Coordination of
qualified bicycle commuting reimbursements with other transportation fringe
benefits</header>
<paragraph id="H25BA0F98A37F439A8FE6FC3E90B849D8"><enum>(1)</enum><header>In
general</header><text>Clause (ii) of section 132(f)(5)(F) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="HD3D70C2CEE294D3499EFE9C8154C7EC7" style="OLC">
<clause id="H10B95A50ACA14A248EFCA85F175A1516"><enum>(ii)</enum><header>Applicable
annual limitation</header><text display-inline="yes-display-inline">The term
<term>applicable annual limitation</term> means, with respect to any employee
for any calendar year, the lesser of—</text>
<subclause id="H0942010C910C4DC98BDB6C78661523D3"><enum>(I)</enum><text>the product of $20
multiplied by the number of qualified bicycle commuting months during such
year, or</text>
</subclause><subclause id="H131EBD0A77D34A62915B3007817AA871"><enum>(II)</enum><text>the excess (if
any) of the product of 12 multiplied by the dollar amount in effect under
paragraph (2)(A) for the first month during such year, over the aggregate of
the benefits described in subparagraphs (A) and (B) of paragraph (1) excluded
from gross income under subsection (a) with respect to months during such
year.</text>
</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H74E377B9D0294CBD92B8FBC6FF2C1DC6"><enum>(2)</enum><header>Conforming
amendment</header><text>Subclause (II) of section 132(f)(5)(F)(iii) is amended
by striking <quote>subparagraph (A), (B), or (C) of paragraph (1)</quote> and
inserting <quote>paragraph (1)(C)</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HC87CDB126D0B4FBFB8868D2005B4234F"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to months
beginning after December 31, 2010.</text>
</subsection></section><section display-inline="no-display-inline" id="HE4AB7CF3EC4B47F9BF70310F7AA8B7F1"><enum>405.</enum><header>Alternative
fuel vehicle refueling property</header>
<subsection id="H9411D61B3FFA49218C3C4F5854D7DF14"><enum>(a)</enum><header>Extension of
credit</header><text>Subsection (g) of section 30C is amended by striking
<quote>placed in service</quote> and all that follows and inserting
<quote>placed in service after December 31, 2014.</quote>.</text>
</subsection><subsection id="HE88C5BB8BB884D09BA8E3883DD975553"><enum>(b)</enum><header>Extension of
increased credit limitations</header><text display-inline="yes-display-inline">Paragraph (6) of section 30C(e) is
amended—</text>
<paragraph id="H351479B0B4BB4E1D9409F6A75FA1003A"><enum>(1)</enum><text>by striking
<quote>January 1, 2011</quote> and inserting <quote>January 1, 2014</quote>,
and</text>
</paragraph><paragraph id="HF68C4811E66B454590FEC017539C0AD5"><enum>(2)</enum><text>by striking
<quote><header-in-text level="paragraph" style="OLC">and
2010</header-in-text></quote> in the heading and inserting
<quote><header-in-text level="paragraph" style="OLC">thru
2013</header-in-text></quote>.</text>
</paragraph></subsection><subsection id="H4F8B48871A7B46C2B59CE1AF4E7837B1"><enum>(c)</enum><header>Extension of
credit to refueling of non-Highway hydrogen fuel cell
vehicles</header><text>Subsection (c) of section 30C is amended by striking
<quote>and</quote> at the end of paragraph (1), by redesignating paragraph (2)
as paragraph (3), and by inserting after paragraph (1) the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H03C0E19DE5CA452A8C662AE6F4F11664" style="OLC">
<paragraph id="HD5A0589B5EB1459D951B472E0AE505F0"><enum>(2)</enum><text display-inline="yes-display-inline">in the case of a vehicle propelled by a
fuel cell power plant (as defined in section 48(c)(1)(C)) which converts
hydrogen into electricity, the term <term>motor vehicle</term> includes any
vehicle which is not operated exclusively on rails and the primary purpose of
which is other than the transport of passengers,
and</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H6C206BFA4B3744709E66ACBFCA012801"><enum>(d)</enum><header>Clarification of
definition of electric refueling property</header><text>Subparagraph (B) of
section 179A(d)(3) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HBBE36436065C44B598A6E69045597390" style="OLC">
<subparagraph id="H2D8104107AEE430183BDDD5902A31E46"><enum>(B)</enum><text display-inline="yes-display-inline">exclusively used for the recharging of
motor vehicles propelled by electricity (other than property used for the
generation of
electricity).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H335EAAA49E0B4D8A9C90B02B6F79BF69"><enum>(e)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to property
placed in service after the date of the enactment of this Act.</text>
</subsection></section><enum>V</enum><header>Alternative
fuels</header>
<section id="HE775309810F4465BB3D304071835624B"><enum>501.</enum><header>Extension of
incentives for biodiesel and renewable diesel</header>
<subsection id="HB14D00EB1DC64B7D8B3175EC5CEBF3B3"><enum>(a)</enum><header>Credits for
biodiesel and renewable diesel used as fuel</header><text>Subsection (g) of
section 40A is amended by striking <quote>December 31, 2009</quote> and
inserting <quote>December 31, 2012</quote>.</text>
</subsection><subsection id="H445E6D8264B541DFAB5A3B44FAF20F42"><enum>(b)</enum><header>Excise tax
credits and outlay payments for biodiesel and renewable diesel fuel
mixtures</header>
<paragraph id="H47E51F9D66854D1791334E573C4270C1"><enum>(1)</enum><text>Paragraph (6) of
section 6426(c) is amended by striking <quote>December 31, 2009</quote> and
inserting <quote>December 31, 2012</quote>.</text>
</paragraph><paragraph id="H1DBD98C050E24599AAAD0661051DDC32"><enum>(2)</enum><text>Subparagraph (B)
of section 6427(e)(6) is amended by striking <quote>December 31, 2009</quote>
and inserting <quote>December 31, 2012</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H710C3D6399134A9C97571AF7D0D45A79"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to fuel sold
or used after December 31, 2009.</text>
</subsection></section><section id="id8C116998A0EB46E086C9C34DF423188A"><enum>502.</enum><header>Inclusion of
algae-based biofuel in definition of cellulosic biofuel</header>
<subsection id="id5F90E1CD44D543F3BD2CD7F17F4867F6"><enum>(a)</enum><header>Cellulosic
biofuel producer credit</header>
<paragraph id="idECA5E0F98CAE4F9BB39C9A721CAC3952"><enum>(1)</enum><header>General
rule</header><text>Paragraph (4) of section 40(a) is amended by inserting
<quote>and algae-based</quote> after <quote>cellulosic</quote>.</text>
</paragraph><paragraph id="id85B9270EC982490C8AFCDFFC3AA1096B"><enum>(2)</enum><header>Definitions</header><text>Paragraph
(6) of section 40(b) is amended—</text>
<subparagraph id="idF94156236B714F3687D099A5163E80E3"><enum>(A)</enum><text>by inserting
<quote><header-in-text level="paragraph" style="OLC">and
algae-based</header-in-text></quote> after <quote><header-in-text level="paragraph" style="OLC">Cellulosic</header-in-text></quote> in the
heading,</text>
</subparagraph><subparagraph id="idA1624A358E8C424BB32474F8FD7CAC4D"><enum>(B)</enum><text>by striking
subparagraph (A) and inserting the following:</text>
<quoted-block act-name="" id="id3CD0A63B0A2E41F2B43EEC63000AD9F7" style="OLC">
<subparagraph id="idE29792CF7E644102A94001DDEF5D2AF5"><enum>(A)</enum><header>In
general</header><text>The cellulosic and algae-based biofuel producer credit of
any taxpayer is an amount equal to the applicable amount for each gallon
of—</text>
<clause id="id09D628882BBC4C31A8C774F4D36F70B1"><enum>(i)</enum><text>qualified
cellulosic biofuel production, and</text>
</clause><clause id="id1BB96AA32AE44D26A8BC4D8E491EB46F"><enum>(ii)</enum><text>qualified
algae-based biofuel
production.</text>
</clause></subparagraph><after-quoted-block>,</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="idAF539F3D48C248C5A37B32B0CCC56494"><enum>(C)</enum><text>by redesignating
subparagraphs (F), (G), and (H) as subparagraphs (I), (J), and (K),
respectively,</text>
</subparagraph><subparagraph id="idC6D2678F70E8456192C51C85A15A158B"><enum>(D)</enum><text>by inserting
<quote><header-in-text level="subparagraph" style="OLC">and
algae-based</header-in-text></quote> after <quote><header-in-text level="subparagraph" style="OLC">cellulosic</header-in-text></quote> in the
heading of subparagraph (I), as so redesignated,</text>
</subparagraph><subparagraph id="id0E8E6D5619724C9BB7BF5A8148CE0DF6"><enum>(E)</enum><text>by inserting
<quote>or algae-based biofuel, whichever is appropriate,</quote> after
<quote>cellulosic biofuel</quote> in subparagraph (J), as so
redesignated,</text>
</subparagraph><subparagraph id="id6F5517B755994084BA0FB30C6D693255"><enum>(F)</enum><text>by inserting
<quote>and qualified algae-based biofuel production</quote> after
<quote>qualified cellulosic biofuel production</quote> in subparagraph (K), as
so redesignated, and</text>
</subparagraph><subparagraph id="id60D56B034E0E45698ADBAFFE887AFE25"><enum>(G)</enum><text>by inserting
after subparagraph (E) the following new subparagraphs:</text>
<quoted-block act-name="" id="id4A0BC2E6AC9045C08FE7E091D306FFF0" style="OLC">
<subparagraph id="PF3B1993CE18A4944917E7EFD67730163"><enum>(F)</enum><header>Qualified
algae-based biofuel production</header><text>For purposes of this section, the
term <term>qualified algae-based biofuel production</term> means any
algae-based biofuel which is produced by the taxpayer, and which during the
taxable year—</text>
<clause id="P75680B15ADB5462DB79BC9BDB1D6A022"><enum>(i)</enum><text>is
sold by the taxpayer to another person—</text>
<subclause id="P19FD5F5922574EF98F08522AD581BAFD"><enum>(I)</enum><text>for use by such
other person in the production of a qualified algae-based biofuel mixture in
such other person's trade or business (other than casual off-farm
production),</text>
</subclause><subclause id="P059B67D1C87B43A280FA7BD49EA060F0"><enum>(II)</enum><text>for use by such
other person as a fuel in a trade or business, or</text>
</subclause><subclause id="PDED24FFCCC834A5CB172F54971C4E220"><enum>(III)</enum><text>who sells such
algae-based biofuel at retail to another person and places such algae-based
biofuel in the fuel tank of such other person, or</text>
</subclause></clause><clause id="P2C358DF70FE348EC99EA8EB99CA27D2D"><enum>(ii)</enum><text>is used or sold
by the taxpayer for any purpose described in clause (i).</text>
</clause><continuation-text continuation-text-level="subparagraph">The
qualified algae-based biofuel production of any taxpayer for any taxable year
shall not include any alcohol which is purchased by the taxpayer and with
respect to which such producer increases the proof of the alcohol by additional
distillation.</continuation-text></subparagraph><subparagraph id="P26F56238A9284EB19C6CC0086C668EEE"><enum>(G)</enum><header>Qualified
algae-based biofuel mixture</header><text>For purposes of this paragraph, the
term <term>qualified algae-based biofuel mixture</term> means a mixture of
algae-based biofuel and gasoline or of algae-based biofuel and a special fuel
which—</text>
<clause id="P8AF7120822C949FB88A3978A1D569B9B"><enum>(i)</enum><text>is
sold by the person producing such mixture to any person for use as a fuel,
or</text>
</clause><clause id="P11928F0E14EE40EB9FA5A6ACA4E4FAAF"><enum>(ii)</enum><text>is used as a fuel
by the person producing such mixture.</text>
</clause></subparagraph><subparagraph id="PD55044D7F76C47F09D437A1658C6B440"><enum>(H)</enum><header>Algae-based
biofuel</header><text>For purposes of this paragraph—</text>
<clause id="P625F49F785A644169A10DB0D1E2F8CB4"><enum>(i)</enum><header>In
general</header><text>The term <term>algae-based biofuel</term> means any
liquid fuel, including gasoline, diesel, aviation fuel, and ethanol,
which—</text>
<subclause id="id305CCE841BFB402BB555EDD59D55B9B0"><enum>(I)</enum><text>is produced from
the biomass of, or is directly secreted by, algal organisms, and</text>
</subclause><subclause id="id9FA650206003480B9A57B488C3085116"><enum>(II)</enum><text>meets the
registration requirements for fuels and fuel additives established by the
Environmental Protection Agency under section 211 of the Clean Air Act (42
U.S.C. 7545).</text>
</subclause></clause><clause id="id3729ED25C5E4493C86E9910375C32B8E"><enum>(ii)</enum><header>Algal
organism</header><text>The term <term>algal organism</term> means a single- or
multi-cellular organism which is primarily aquatic and classified as a
non-vascular plant, including microalgae, blue-green algae (cyanobacteria), and
macroalgae (seaweeds).</text>
</clause><clause id="P62258F40E9F84F43B7990F8D6D9A2FEE"><enum>(iii)</enum><header>Exclusion of
low-proof alcohol</header><text>Such term shall not include any alcohol with a
proof of less than 150. The determination of the proof of any alcohol shall be
made without regard to any added
denaturants.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="idB4239A074C1E41D89D84B76BB934A839"><enum>(3)</enum><header>Conforming
amendments</header>
<subparagraph id="idF14EA989633D4AF4B0EB2EEE64054815"><enum>(A)</enum><text>Subparagraph (D)
of section 40(d)(3) is amended—</text>
<clause id="id6AB387C10295407A917F7147C7E96168"><enum>(i)</enum><text>by
inserting <quote><header-in-text level="subparagraph" style="OLC">and
algae-based</header-in-text></quote> after <quote><header-in-text level="subparagraph" style="OLC">cellulosic</header-in-text></quote> in the
heading,</text>
</clause><clause id="id7019094FEB9A4300A47D02B61A6019C6"><enum>(ii)</enum><text>by
inserting <quote>or (b)(6)(F)</quote> after <quote>(b)(6)(C)</quote> in clause
(ii), and</text>
</clause><clause id="idEF79C91DC3CE4D2D978531954C43A415"><enum>(iii)</enum><text>by inserting
<quote>or algae-based</quote> after <quote>such cellulosic</quote>.</text>
</clause></subparagraph><subparagraph id="idDEF5FB403B6848EE84663802E2B642C1"><enum>(B)</enum><text>Paragraph (6) of
section 40(d) is amended—</text>
<clause id="idD123ED32AFAF4783B1E16CE4C34D08C8"><enum>(i)</enum><text>by
inserting <quote><header-in-text level="paragraph" style="OLC">and
algae-based</header-in-text></quote> after <quote><header-in-text level="paragraph" style="OLC">cellulosic</header-in-text></quote> in the
heading, and</text>
</clause><clause id="id2F81E041521B475992A6DDA128DC421C"><enum>(ii)</enum><text>by
striking the first sentence and inserting <quote>No cellulosic and algae-based
biofuel producer credit shall be determined under subsection (a) with respect
to any cellulosic or algae-based biofuel unless such cellulosic or algae-based
biofuel is produced in the United States and used as a fuel in the United
States.</quote></text>
</clause></subparagraph><subparagraph id="idD0F5921C78864D998C2F99D4102AC30C"><enum>(C)</enum><text>Paragraph (3) of
section 40(e) is amended by inserting <quote><header-in-text level="paragraph" style="OLC">and algae-based</header-in-text></quote> after
<quote><header-in-text level="paragraph" style="OLC">cellulosic</header-in-text></quote> in the heading.</text>
</subparagraph><subparagraph id="id8B11C5651959427C9525EEAFE08C79DE"><enum>(D)</enum><text>Paragraph (1) of
section 4101(a) is amended—</text>
<clause id="idD153A2CF9E5C470A9616FA600F5DEE66"><enum>(i)</enum><text>by
inserting <quote>or algae-based</quote> after <quote>cellulosic</quote>,
and</text>
</clause><clause id="id090AB90A65EF43D590DDC8726F077A06"><enum>(ii)</enum><text>by
inserting <quote>and 40(b)(6)(H), respectively</quote> after <quote>section
40(b)(6)(E)</quote>.</text>
</clause></subparagraph></paragraph></subsection><subsection id="idE1EFBA7BA8DE4B4E9491F3DC1FD9608C"><enum>(b)</enum><header>Special
allowance for cellulosic biofuel plant property</header><text>Subsection (l) of
section 168 is amended—</text>
<paragraph id="id92B588470D5542EB9794ECD9CE7E11F1"><enum>(1)</enum><text>by inserting
<quote><header-in-text level="subsection" style="OLC">and
algae-Based</header-in-text></quote> after <quote><header-in-text level="subsection" style="OLC">cellulosic</header-in-text></quote> in the
heading,</text>
</paragraph><paragraph id="id5078897024EB4AA7967450B3D47F8324"><enum>(2)</enum><text>by inserting
<quote>and any qualified algae-based biofuel plant property</quote> after
<quote>qualified cellulosic biofuel plant property</quote> in paragraph
(1),</text>
</paragraph><paragraph commented="no" id="idBDA7758F9A5743ACA16046B47CD07186"><enum>(3)</enum><text>by redesignating
paragraphs (4) through (8) as paragraphs (6) through (10), respectively,</text>
</paragraph><paragraph id="idBDEB3A9067B5489D9831BA77FCFC9878"><enum>(4)</enum><text>by inserting
<quote>or qualified algae-based biofuel plant property</quote> after
<quote>cellulosic biofuel plant property</quote> in paragraph (7)(C), as so
redesignated,</text>
</paragraph><paragraph id="id815F596226614D028BB7C1D15654F8C7"><enum>(5)</enum><text>by striking
<quote>with respect to</quote> and all that follows in paragraph (9), as so
redesignated, and inserting <quote>with respect to any qualified cellulosic
biofuel plant property and any qualified algae-based biofuel plant property
which ceases to be such qualified property.</quote>,</text>
</paragraph><paragraph id="idB6FAA207DF4B422CB8D5EBA1B3B2BE55"><enum>(6)</enum><text>by inserting
<quote>or qualified algae-based biofuel plant property</quote> after
<quote>cellulosic biofuel plant property</quote> in paragraph (10), as so
redesignated, and</text>
</paragraph><paragraph id="idC08FBA0FCF2F4E00BA30538ECB8835B1"><enum>(7)</enum><text>by inserting
after paragraph (3) the following new paragraphs:</text>
<quoted-block display-inline="no-display-inline" id="idD3B973E8359C455A96130C041B8BF8BE" style="OLC">
<paragraph id="P1B61490C63B14D659A9040FC469F5717"><enum>(4)</enum><header>Qualified
algae-based biofuel plant property</header><text>The term <term>qualified
algae-based biofuel plant property</term> means property of a character subject
to the allowance for depreciation—</text>
<subparagraph id="PB7A795B8A2F141EE9D45EA8749086EF7"><enum>(A)</enum><text>which is used in
the United States solely to produce algae-based biofuel,</text>
</subparagraph><subparagraph id="P1C1724C4FD5C4F4589B2F971E060D422"><enum>(B)</enum><text>the original use
of which commences with the taxpayer after the date of the enactment of this
paragraph,</text>
</subparagraph><subparagraph id="P16BB917E99AB4ED7A2DD0A5D2EB44301"><enum>(C)</enum><text>which is acquired
by the taxpayer by purchase (as defined in section 179(d)) after the date of
the enactment of this paragraph, but only if no written binding contract for
the acquisition was in effect on or before such date, and</text>
</subparagraph><subparagraph id="P7135EF8B0C194B9F8235572C27229AB3"><enum>(D)</enum><text>which is placed in
service by the taxpayer before January 1, 2013.</text>
</subparagraph></paragraph><paragraph id="PCD1C2A19A9AF4CB38FF1EFF0B327E1B6"><enum>(5)</enum><header>Algae-based
biofuel</header>
<subparagraph id="id57BF07D7373E4294844694BD4019047F"><enum>(A)</enum><header>In
general</header><text>The term <term>algae-based biofuel</term> means any
liquid fuel which is produced from the biomass of algal organisms.</text>
</subparagraph><subparagraph id="id111CB3CED9084A66B767500F9FD367A8"><enum>(B)</enum><header>Algal
organism</header><text>The term <term>algal organism</term> means a single- or
multi-cellular organism which is primarily aquatic and classified as a
non-vascular plant, including microalgae, blue-green algae (cyanobacteria), and
macroalgae
(seaweeds).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="idF66B2C586FE146BA847BA9706EC0FFBD"><enum>(c)</enum><header>Effective
dates</header>
<paragraph id="id25804EEDF9804A9388B283211D271076"><enum>(1)</enum><header>Cellulosic
biofuel producer credit</header><text>The amendments made by subsection (a)
shall apply to fuel produced after the date of the enactment of this
Act.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4251654B1FBD41EDA82A6FB309F9D559"><enum>(2)</enum><header>Special
allowance for cellulosic biofuel plant property</header><text>The amendments
made by subsection (b) shall apply to property purchased and placed in service
after the date of the enactment of this Act.</text>
</paragraph></subsection></section><enum>VI</enum><header>Other
provisions</header>
<section commented="no" display-inline="no-display-inline" id="id5CD699C8341E46C0BDED2FAB7D1DB277"><enum>601.</enum><header>Report on the
utilization of tax incentives</header>
<subsection commented="no" display-inline="no-display-inline" id="id5F5188F3FF2B4B00BD7FF4351912E5FF"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Not later than
January 1, 2013, the Comptroller General of the United States shall submit a
report to the Committee on Ways and Means of the House of Representatives and
the Committee on Finance of the Senate evaluating all temporary and permanent
energy tax incentives in effect on the date of the report.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id6EB37C8AED0A48A385ABF72229DD6D08"><enum>(b)</enum><header>Contents of
report</header><text display-inline="yes-display-inline">The report
shall—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id25949620ADBF45AEBAEA5A69CEF28BDA"><enum>(1)</enum><text display-inline="yes-display-inline">assess whether and to what extent each such
tax incentive is being utilized, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idE8E616EF8B7B4E928318840840F755E0"><enum>(2)</enum><text display-inline="yes-display-inline">contain recommendations regarding each such
tax incentive and whether such tax incentive should be terminated, extended, or
modified to achieve the purposes of the this Act.</text>
</paragraph></subsection></section>