[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5187 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 5187

 To amend the Internal Revenue Code of 1986 to provide incentives for 
clean energy and to repeal fossil fuel subsidies for big oil companies.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 27, 2012

  Mr. Markey (for himself, Mr. Waxman, Mr. Blumenauer, Mr. Larson of 
Connecticut, and Mr. Pascrell) introduced the following bill; which was 
  referred to the Committee on Ways and Means, and in addition to the 
   Committee on Energy and Commerce, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to provide incentives for 
clean energy and to repeal fossil fuel subsidies for big oil companies.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Investing to 
Modernize the Production of American Clean Energy and Technology Act of 
2012'' or as the ``IMPACT Act of 2012''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
                    TITLE I--CLEAN ENERGY INCENTIVES

                      Subtitle A--Renewable Energy

Sec. 101. Extension of renewable energy credits.
Sec. 102. Extension of election of investment tax credit in lieu of 
                            production credit.
Sec. 103. Extension of grants for specified energy property in lieu of 
                            tax credits.
Sec. 104. Extension of qualifying advanced energy project credit.
Sec. 105. Extension of credit for energy-efficient new homes.
Sec. 106. Extension of credit for energy-efficient appliances.
        Subtitle B--Electric, Natural Gas, and Hydrogen Vehicles

Sec. 111. Increase and expansion of credit for qualified plug-in 
                            electric drive motor vehicles.
Sec. 112. Extension of new qualified alternative fuel motor vehicle 
                            credit for heavy natural gas vehicles.
Sec. 113. Modification of credit for alternative fuel vehicle refueling 
                            property for vehicles powered by 
                            electricity, natural gas, or hydrogen.
Sec. 114. Electric, natural gas, and hydrogen vehicle refueling 
                            property tax credit bonds.
    TITLE II--REPEAL OF FOSSIL FUEL SUBSIDIES FOR BIG OIL COMPANIES

Sec. 201. Prohibition on using last-in, first-out accounting for major 
                            integrated oil companies.
Sec. 202. Modifications of foreign tax credit rules applicable to major 
                            integrated oil companies which are dual 
                            capacity taxpayers.
Sec. 203. Limitation on section 199 deduction attributable to oil, 
                            natural gas, or primary products thereof.
Sec. 204. Limitation on deduction for intangible drilling and 
                            development costs.
Sec. 205. Limitation on percentage depletion allowance for oil and gas 
                            wells.
Sec. 206. Limitation on deduction for tertiary injectants.

                    TITLE I--CLEAN ENERGY INCENTIVES

                      Subtitle A--Renewable Energy

SEC. 101. EXTENSION OF RENEWABLE ENERGY CREDITS.

    (a) Wind.--Paragraph (1) of section 45(d) of the Internal Revenue 
Code of 1986 is amended by striking ``January 1, 2013'' and inserting 
``January 1, 2021''.
    (b) Biomass, Geothermal, Small Irrigation, Landfill Gas, 
Hydropower, Marine, and Hydrokinetic.--Each of the following provisions 
of section 45(d) of such Code is amended by striking ``January 1, 
2014'' and inserting ``January 1, 2022'':
            (1) Clauses (i) and (ii) of paragraph (2)(A).
            (2) Clauses (i)(I) and (ii) of paragraph (3)(A).
            (3) Paragraph (4).
            (4) Paragraph (6).
            (5) Subparagraphs (A) and (B) of paragraph (9).
            (6) Subparagraph (B) of paragraph (11).
    (c) Early Termination in Event of Federal Renewable Electricity 
Requirement.--Subsection (d) of section 45 of the Internal Revenue Code 
of 1986 is amended by adding at the end the following new paragraph:
            ``(12) Termination in event of federal renewable 
        electricity requirement.--Notwithstanding any other provision 
        of this section, the term `qualified facility' shall not 
        include any property which is placed in service after the date 
        which is 1 year after the date on which the Secretary of Energy 
        makes a public declaration that a Federal law is in effect 
        which requires retail electric suppliers in the United States 
        to supply minimum and significant amounts of electric energy 
        which is generated from renewable sources to customers for 
        purposes other than resale.''.

SEC. 102. EXTENSION OF ELECTION OF INVESTMENT TAX CREDIT IN LIEU OF 
              PRODUCTION CREDIT.

    (a) In General.--Clause (ii) of section 48(a)(5)(C) of the Internal 
Revenue Code of 1986 is amended by striking ``or 2013'' and inserting 
``2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, or 2021''.
    (b) Wind Facilities.--Clause (i) of section 48(a)(5)(C) of the 
Internal Revenue Code of 1986 is amended by striking ``Any qualified 
facility'' and all that follows and inserting ``Any facility which is--
                                    ``(I) a qualified facility (within 
                                the meaning of section 45) described in 
                                paragraph (1) of section 45(d) if such 
                                facility is placed in service in 2009, 
                                2010, 2011, 2012, 2013, 2014, 2015, 
                                2016, 2017, 2018, 2019, or 2020, or
                                    ``(II) a qualifying offshore wind 
                                facility, if such facility is placed in 
                                service in 2009, 2010, 2011, 2012, 
                                2013, 2014, 2015, 2016, 2017, 2018, 
                                2019, 2020, or 2021.''.
    (c) Limitation.--Paragraph 5 of section 48(a) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
subparagraph:
                    ``(E) Limitation.--The total amount of megawatt 
                capacity for offshore facilities under clause (II) of 
                subsection (a)(5)(C) with respect to which credits may 
                be allocated under the program shall not exceed 3,000 
                megawatts.''.
    (d) Qualifying Offshore Wind Facility.--Paragraph (5) of section 
48(a) of the Internal Revenue Code of 1986 is further amended by adding 
at the end the following new subparagraph:
                    ``(F) Qualifying offshore wind facility.--For 
                purposes of this paragraph--
                            ``(i) In general.--The term `qualifying 
                        offshore wind facility' means an offshore 
                        facility using wind to produce electricity.
                            ``(ii) Offshore facility.--The term 
                        `offshore facility' means any facility located 
                        in the inland navigable waters of the United 
                        States, including the Great Lakes, or in the 
                        coastal waters of the United States, including 
                        the territorial seas of the United States, the 
                        exclusive economic zone of the United States, 
                        and the Outer Continental Shelf of the United 
                        States. For purposes of the preceding sentence, 
                        the term `United States' has the meaning given 
                        in section 638(1).''.
    (e) Availability of Grants in Lieu of Tax Credits.--Subparagraph 
(A) of section 1603(b)(2) of division B of the American Recovery and 
Reinvestment Act of 2009 is amended by inserting ``or section 48(a)(5) 
of the Internal Revenue Code of 1986'' after ``subsection (d)''.
    (f) Effective Date.--The amendments made by this section shall 
apply to facilities placed in service after December 31, 2011.

SEC. 103. EXTENSION OF GRANTS FOR SPECIFIED ENERGY PROPERTY IN LIEU OF 
              TAX CREDITS.

    (a) In General.--Subsection (a) of section 1603 of division B of 
the American Recovery and Reinvestment Act of 2009 is amended--
            (1) in paragraph (1), by striking ``or 2011'' and inserting 
        ``2011, 2012, or 2013'', and
            (2) in paragraph (2)--
                    (A) by striking ``after 2011'' and inserting 
                ``after 2013'', and
                    (B) by striking ``or 2011'' and inserting ``2011, 
                2012, or 2013''.
    (b) Conforming Amendment.--Subsection (j) of section 1603 of 
division B of such Act is amended by striking ``2012'' and inserting 
``2014''.

SEC. 104. EXTENSION OF QUALIFYING ADVANCED ENERGY PROJECT CREDIT.

    Paragraph (1) of section 48C(d) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new subparagraph:
                    ``(C) Additional limitation amount.--
                            ``(i) In general.--The dollar amount under 
                        subparagraph (B) is hereby increased by 
                        $5,000,000,000.
                            ``(ii) Applications.--Notwithstanding the 
                        deadline for submitting applications specified 
                        in paragraph (2)(A), an applicant for 
                        certification with respect to credits allocated 
                        pursuant to clause (i) may submit an 
                        application to the Secretary at such time and 
                        in such manner as the Secretary may provide.
                            ``(iii) Review, redistribution, and 
                        reallocation.--Notwithstanding the deadline for 
                        review specified in paragraph (4)(A), the 
                        Secretary shall review the credits allocated 
                        pursuant to clause (i) at such time as the 
                        Secretary determines appropriate.''.

SEC. 105. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT NEW HOMES.

    (a) In General.--Subsection (g) of section 45L of the Internal 
Revenue Code of 1986 is amended by striking ``December 31, 2011'' and 
inserting ``December 31, 2012''.
    (b) Effective Date.--The amendment made by this section shall apply 
to homes acquired after December 31, 2011.

SEC. 106. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT APPLIANCES.

    (a) In General.--Section 45M(b) of the Internal Revenue Code of 
1986 is amended by striking ``2011'' each place it appears other than 
in the provisions specified in subsection (b), and inserting ``2011 or 
2012''.
    (b) Provisions Specified.--The provisions of section 45M(b) of the 
Internal Revenue Code of 1986 specified in this subsection are 
subparagraph (C) of paragraph (1) and subparagraph (E) of paragraph 
(2).
    (c) Effective Date.--The amendments made by this section shall 
apply to appliances produced after December 31, 2011.

        Subtitle B--Electric, Natural Gas, and Hydrogen Vehicles

SEC. 111. INCREASE AND EXPANSION OF CREDIT FOR QUALIFIED PLUG-IN 
              ELECTRIC DRIVE MOTOR VEHICLES.

    (a) Increase in Dollar Limitation.--Paragraph (2) of section 30D(b) 
of the Internal Revenue Code of 1986 is amended by striking ``$2,500'' 
and inserting ``$5,000''.
    (b) Increase in Limitation on Number of Vehicles Eligible for 
Credit.--Paragraph (2) of section 30D(e) of such Code is amended by 
striking ``200,000'' and inserting ``400,000''.
    (c) Effective Date.--The amendment made by this section shall apply 
to vehicles acquired after the date of the enactment of this Act.

SEC. 112. EXTENSION OF NEW QUALIFIED ALTERNATIVE FUEL MOTOR VEHICLE 
              CREDIT FOR HEAVY NATURAL GAS VEHICLES.

    (a) In General.--Paragraph (4) of section 30B(k) of the Internal 
Revenue Code of 1986 is amended by inserting ``(December 31, 2016, in 
the case of a vehicle powered by compressed or liquefied natural gas 
and weighing more than 8,500 pounds)'' before the period at the end.
    (b) Effective Date.--The amendment made by this section shall apply 
to vehicles purchased after the date of the enactment of this Act.

SEC. 113. MODIFICATION OF CREDIT FOR ALTERNATIVE FUEL VEHICLE REFUELING 
              PROPERTY FOR VEHICLES POWERED BY ELECTRICITY, NATURAL 
              GAS, OR HYDROGEN.

    (a) Special Rules for Property Placed in Service Before January 1, 
2017.--Subsection (e) of section 30C of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(7) Property for recharging vehicles powered by 
        electricity, natural gas, or hydrogen.--In the case of property 
        placed in service after December 31, 2011, and before January 
        1, 2017, which relates to electricity, natural gas, or 
        hydrogen--
                    ``(A) subsection (a) shall be applied by 
                substituting `50 percent' for `30 percent',
                    ``(B) subsection (b)(1) shall be applied by 
                substituting `$50,000' for `$30,000', and
                    ``(C) subsection (b)(2) shall be applied by 
                substituting `$2,000' for `$1,000'.''.
    (b) Installation Costs.--Subsection (e) of section 30C of such 
Code, as amended by subsection (a), is amended by adding at the end the 
following:
            ``(8) Installation costs.--The cost of any qualified 
        alternative fuel vehicle refueling property which relates to 
        electricity, natural gas, or hydrogen shall include the cost of 
        the original installation of such property.''.
    (c) Termination of Credit.--Paragraph (1) of section 30C(g) of such 
Code is amended to read as follows:
            ``(1) in the case of property relating to electricity, 
        natural gas, or hydrogen, after December 31, 2017, and''.
    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2011.

SEC. 114. ELECTRIC, NATURAL GAS, AND HYDROGEN VEHICLE REFUELING 
              PROPERTY TAX CREDIT BONDS.

    (a) In General.--Paragraph (1) of section 54A(d) of the Internal 
Revenue Code of 1986 is amended by striking ``or'' at the end of 
subparagraph (D), by inserting ``or'' at the end of subparagraph (E), 
and by inserting after subparagraph (E) the following new subparagraph:
                    ``(F) a qualified electric, natural gas, and 
                hydrogen vehicle refueling property bond,''.
    (b) Qualified Purpose.--Subparagraph (C) of section 54A(d)(2) of 
the Internal Revenue Code of 1986 is amended--
            (1) by striking ``and'' at the end of clause (iv),
            (2) by striking the period at the end of clause (v) and 
        inserting ``, and'', and
            (3) by adding at the end the following new clause:
                            ``(vi) in the case of a qualified electric, 
                        natural gas, and hydrogen vehicle refueling 
                        property bond, a purpose specified in section 
                        54G(a)(1).''.
    (c) Bonds Allowed.--Subpart I of part IV of subchapter A of chapter 
1 of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 54G. QUALIFIED ELECTRIC, NATURAL GAS, AND HYDROGEN VEHICLE 
              REFUELING PROPERTY BONDS.

    ``(a) Qualified Electric, Natural Gas, and Hydrogen Vehicle 
Refueling Property Bond.--For purposes of this subpart, the term 
`qualified electric, natural gas, and hydrogen vehicle refueling 
property bond' means any bond issued as part of an issue if--
            ``(1) 100 percent of the available project proceeds of such 
        issue are to be used for capital expenditures incurred by a 
        qualified issuer for 1 or more qualified electric, natural gas, 
        and hydrogen vehicle refueling properties,
            ``(2) the bond is issued by a qualified issuer, and
            ``(3) the issuer designates such bond for purposes of this 
        section.
    ``(b) Reduced Credit Amount.--Notwithstanding paragraph (2) of 
section 54A(b), the annual credit determined with respect to any 
qualified electric, natural gas, and hydrogen vehicle refueling 
property bond is 70 percent of the amount which would (but for this 
subsection) otherwise be determined under such paragraph with respect 
to such bond.
    ``(c) Limitation on Amount of Bonds Designated.--The maximum 
aggregate face amount of bonds which may be designated under subsection 
(a) by any issuer shall not exceed the limitation amount allocated to 
such issuer under subsection (e).
    ``(d) National Limitation on Amount of Bonds Designated.--There is 
a national qualified electric, natural gas, and hydrogen vehicle 
refueling property bond limitation of $750,000,000.
    ``(e) Allocations.--The Secretary shall make allocations of the 
amount of the national qualified electric, natural gas, and hydrogen 
vehicle refueling property bond limitation described in subsection (d) 
among purposes described in subsection (a)(1) in such manner as the 
Secretary determines appropriate.
    ``(f) Definitions.--For purposes of this section--
            ``(1) Qualified electric, natural gas, and hydrogen vehicle 
        refueling property.--The term `qualified electric, natural gas, 
        and hydrogen vehicle refueling property' means any qualified 
        alternative fuel vehicle refueling property (within the meaning 
        of section 30C) which relates to electricity, natural gas, or 
        hydrogen.
            ``(2) Qualified issuer.--
                    ``(A) In general.--The term `qualified issuer' 
                means a public power provider, a cooperative electric 
                company, or a governmental body.
                    ``(B) Governmental body.--The term `governmental 
                body' means any State or Indian tribal government, or 
                any political subdivision thereof.
                    ``(C) Public power provider.--The term `public 
                power provider' means a State utility that has a 
                service obligation to end-users or to a distribution 
                utility (within the meaning of section 217 of the 
                Federal Power Act, as in effect on the date of the 
                enactment of this section).
                    ``(D) Cooperative electric company.--The term 
                `cooperative electric company' means a mutual or 
                cooperative electric company described in section 
                501(c)(12) or an organization described in section 
                1381(a)(2)(C).''.
    (d) Clerical Amendment.--The table of sections for subpart I of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new item:

``Sec. 54G. Qualified electric, natural gas, and hydrogen vehicle 
                            refueling property bonds.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to obligations issued after the date of the enactment of this 
Act.

    TITLE II--REPEAL OF FOSSIL FUEL SUBSIDIES FOR BIG OIL COMPANIES

SEC. 201. PROHIBITION ON USING LAST-IN, FIRST-OUT ACCOUNTING FOR MAJOR 
              INTEGRATED OIL COMPANIES.

    (a) In General.--Section 472 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(h) Major Integrated Oil Companies.--Notwithstanding any other 
provision of this section, a major integrated oil company (as defined 
in section 167(h)(5)(B)) may not use the method provided in subsection 
(b) in inventorying of any goods.''.
    (b) Effective Date and Special Rule.--
            (1) In general.--The amendment made by subsection (a) shall 
        apply to taxable years beginning after the date of the 
        enactment of this Act.
            (2) Change in method of accounting.--In the case of any 
        taxpayer required by the amendment made by this section to 
        change its method of accounting for its first taxable year 
        beginning after the date of the enactment of this Act--
                    (A) such change shall be treated as initiated by 
                the taxpayer,
                    (B) such change shall be treated as made with the 
                consent of the Secretary of the Treasury, and
                    (C) the net amount of the adjustments required to 
                be taken into account by the taxpayer under section 481 
                of the Internal Revenue Code of 1986 shall be taken 
                into account ratably over a period (not greater than 8 
                taxable years) beginning with such first taxable year.

SEC. 202. MODIFICATIONS OF FOREIGN TAX CREDIT RULES APPLICABLE TO MAJOR 
              INTEGRATED OIL COMPANIES WHICH ARE DUAL CAPACITY 
              TAXPAYERS.

    (a) In General.--Section 901 of the Internal Revenue Code of 1986 
is amended by redesignating subsection (n) as subsection (o) and by 
inserting after subsection (m) the following new subsection:
    ``(n) Special Rules Relating to Major Integrated Oil Companies 
Which Are Dual Capacity Taxpayers.--
            ``(1) General rule.--Notwithstanding any other provision of 
        this chapter, any amount paid or accrued by a dual capacity 
        taxpayer which is a major integrated oil company (as defined in 
        section 167(h)(5)(B)) to a foreign country or possession of the 
        United States for any period shall not be considered a tax--
                    ``(A) if, for such period, the foreign country or 
                possession does not impose a generally applicable 
                income tax, or
                    ``(B) to the extent such amount exceeds the amount 
                (determined in accordance with regulations) which--
                            ``(i) is paid by such dual capacity 
                        taxpayer pursuant to the generally applicable 
                        income tax imposed by the country or 
                        possession, or
                            ``(ii) would be paid if the generally 
                        applicable income tax imposed by the country or 
                        possession were applicable to such dual 
                        capacity taxpayer.
        Nothing in this paragraph shall be construed to imply the 
        proper treatment of any such amount not in excess of the amount 
        determined under subparagraph (B).
            ``(2) Dual capacity taxpayer.--For purposes of this 
        subsection, the term `dual capacity taxpayer' means, with 
        respect to any foreign country or possession of the United 
        States, a person who--
                    ``(A) is subject to a levy of such country or 
                possession, and
                    ``(B) receives (or will receive) directly or 
                indirectly a specific economic benefit (as determined 
                in accordance with regulations) from such country or 
                possession.
            ``(3) Generally applicable income tax.--For purposes of 
        this subsection--
                    ``(A) In general.--The term `generally applicable 
                income tax' means an income tax (or a series of income 
                taxes) which is generally imposed under the laws of a 
                foreign country or possession on income derived from 
                the conduct of a trade or business within such country 
                or possession.
                    ``(B) Exceptions.--Such term shall not include a 
                tax unless it has substantial application, by its terms 
                and in practice, to--
                            ``(i) persons who are not dual capacity 
                        taxpayers, and
                            ``(ii) persons who are citizens or 
                        residents of the foreign country or 
                        possession.''.
    (b) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to taxes paid or accrued in taxable years beginning after 
        the date of the enactment of this Act.
            (2) Contrary treaty obligations upheld.--The amendments 
        made by this section shall not apply to the extent contrary to 
        any treaty obligation of the United States.

SEC. 203. LIMITATION ON SECTION 199 DEDUCTION ATTRIBUTABLE TO OIL, 
              NATURAL GAS, OR PRIMARY PRODUCTS THEREOF.

    (a) Denial of Deduction.--Paragraph (4) of section 199(c) of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new subparagraph:
                    ``(E) Special rule for certain oil and gas 
                income.--In the case of any taxpayer who is a major 
                integrated oil company (as defined in section 
                167(h)(5)(B)) for the taxable year, the term `domestic 
                production gross receipts' shall not include gross 
                receipts from the production, transportation, or 
                distribution of oil, natural gas, or any primary 
                product (within the meaning of subsection (d)(9)) 
                thereof.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2011.

SEC. 204. LIMITATION ON DEDUCTION FOR INTANGIBLE DRILLING AND 
              DEVELOPMENT COSTS.

    (a) In General.--Section 263(c) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new sentence: ``This 
subsection shall not apply to amounts paid or incurred by a taxpayer in 
any taxable year in which such taxpayer is a major integrated oil 
company (as defined in section 167(h)(5)(B)).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to amounts paid or incurred in taxable years beginning after December 
31, 2011.

SEC. 205. LIMITATION ON PERCENTAGE DEPLETION ALLOWANCE FOR OIL AND GAS 
              WELLS.

    (a) In General.--Section 613A of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(f) Application With Respect to Major Integrated Oil Companies.--
In the case of any taxable year in which the taxpayer is a major 
integrated oil company (as defined in section 167(h)(5)(B)), the 
allowance for percentage depletion shall be zero.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2011.

SEC. 206. LIMITATION ON DEDUCTION FOR TERTIARY INJECTANTS.

    (a) In General.--Section 193 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(d) Application With Respect to Major Integrated Oil Companies.--
This section shall not apply to amounts paid or incurred by a taxpayer 
in any taxable year in which such taxpayer is a major integrated oil 
company (as defined in section 167(h)(5)(B)).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to amounts paid or incurred in taxable years beginning after December 
31, 2011.
                                 <all>