[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6182 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 6182

  To amend the Internal Revenue Code of 1986 to extend and expand the 
credit for qualifying advanced energy projects, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 25, 2012

  Mr. Thompson of California (for himself, Mr. Levin, Mr. Rangel, Mr. 
Stark, Mr. McDermott, Mr. Lewis of Georgia, Mr. Neal, Mr. Becerra, Mr. 
   Doggett, Mr. Larson of Connecticut, Mr. Blumenauer, Mr. Kind, Mr. 
Pascrell, Ms. Berkley, and Mr. Crowley) introduced the following bill; 
         which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to extend and expand the 
credit for qualifying advanced energy projects, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``American Advanced Energy 
Manufacturing Jobs Act of 2012''.

SEC. 2. EXTENSION AND EXPANSION OF THE QUALIFYING ADVANCED ENERGY 
              PROJECT CREDIT.

    (a) Certain Projects Eligible for Credit Without Limitation.--
            (1) In general.--Subsection (a) of section 48C of the 
        Internal Revenue Code of 1986 is amended by striking ``an 
        amount equal to'' and all that follows and inserting ``an 
        amount equal to the sum of--
            ``(1) 30 percent of the basis of the statutory advanced 
        energy property placed in service by the taxpayer during such 
        taxable year, plus
            ``(2) 30 percent of the qualified investment for such 
        taxable year which respect to any qualifying advanced energy 
        project of the taxpayer.''.
            (2) Statutory advanced energy property.--Subsection (c) of 
        section 48C of such Code is amended by adding at the end the 
        following new paragraph:
            ``(3) Statutory advanced energy property.--
                    ``(A) In general.--The term `statutory advanced 
                energy property' means any eligible property used 
                exclusively to manufacture or fabricate--
                            ``(i) equipment which uses solar energy to 
                        generate electricity,
                            ``(ii) fuel cell power plants (as defined 
                        in section 48(c)(1)(C)), or
                            ``(iii) systems for the electro-chemical 
                        storage of electricity (other than lead-acid 
                        batteries) for use--
                                    ``(I) in electric or hybrid-
                                electric motor vehicles, or
                                    ``(II) in connection with electric 
                                grids.
                    ``(B) Termination.--Such term shall not include any 
                property for any period after December 31, 2016.''.
            (3) Denial of double benefit.--Subsection (e) of section 
        48C of such Code is amended by adding at the end the following: 
        ``Statutory advanced energy property shall not be taken into 
        account in determining the qualified investment in any 
        qualifying advanced energy project.''.
    (b) Extension and Modification of the Qualifying Advanced Energy 
Project Program.--
            (1) Additional limitation amount to be competitively 
        allocated by secretary.--Subparagraph (B) of section 48C(d)(1) 
        of such Code is amended to read as follows:
                    ``(B) Limitation.--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:
                            ``(i) 2009 limitation amount.--
                        $2,300,000,000.
                            ``(ii) 2012 limitation amount.--
                        $3,000,000,000.''.
            (2) Manufacturing of property used to produce composite 
        utility poles.--Clause (i) of section 48C(c)(1)(A) of such Code 
        is amended by striking ``or'' at the end of subclause (VI), by 
        redesignating subclause (VII) as subclause (VIII), and by 
        inserting after subclause (VI) the following new subclause:
                                    ``(VII) utility poles or supports 
                                made from composite materials which are 
                                comprised of at least 15 percent 
                                recycled materials and are fully 
                                recyclable,''.
            (3) Preference in selection criteria for manufacturing.--
        Paragraph (3) of section 48C(d) of such Code is amended by 
        striking ``and'' at the end of subparagraph (A), by striking 
        the period at the end of subparagraph (B) and inserting ``, 
        and'', and by adding at the end the following new subparagraph:
                    ``(C) shall give the lowest priority to projects 
                which merely assemble components.''.
    (c) Conforming Amendments.--
            (1) Paragraph (3) of section 48C(b) of such Code is amended 
        to read as follows:
            ``(3) Limitation.--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).''.
            (2) Subparagraph (A) of section 48C(c)(2) of such Code is 
        amended by inserting ``in the case of a qualifying advanced 
        energy project,'' before ``which is necessary''.
            (3) Subparagraph (A) of section 48C(d)(2) of such Code is 
        amended--
                    (A) by striking ``during the 2-year period'' and 
                inserting ``during the--
                            ``(i) in the case of an allocation from the 
                        limitation described in paragraph (1)(B)(i), 
                        the 2-year period'',
                    (B) by striking the period at the end and inserting 
                ``, or'', and
                    (C) by adding at the end the following new clause:
                            ``(ii) 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.''.
            (4) Paragraph (4) of section 48C(d) of such Code is 
        amended--
                    (A) by striking all that precedes subparagraph (A) 
                and inserting the following:
            ``(4) Periodic review and redistribution.--At such times as 
        the Secretary determines appropriate--'', and
                    (B) by striking ``Not later than 4 years after the 
                date of the enactment of this section, the'' in 
                subparagraph (A) and inserting ``The''.
            (5) Clause (v) of section 49(a)(1)(C) of such Code is 
        amended by inserting ``which is statutory advanced energy 
        property (as defined in section 48C(c)(3)) or'' after ``the 
        basis of any property''.
    (d) Effective Date.--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).

SEC. 3. 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 ending 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. 4. LIMITATION ON DEDUCTION FOR INTANGIBLE DRILLING AND DEVELOPMENT 
              COSTS OF MAJOR INTEGRATED OIL COMPANIES.

    (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 ending after the date of 
the enactment of this Act.
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