[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2739 Introduced in Senate (IS)]

113th CONGRESS
  2d Session
                                S. 2739

  To amend the Internal Revenue Code of 1986 to make qualified biogas 
    property eligible for the energy credit and to permit new clean 
      renewable energy bonds to finance qualified biogas property.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 31, 2014

  Mr. Schumer introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to make qualified biogas 
    property eligible for the energy credit and to permit new clean 
      renewable energy bonds to finance qualified biogas property.

    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 ``Biogas Investment Tax Credit Act of 
2014''.

SEC. 2. INCENTIVES FOR QUALIFIED BIOGAS PROPERTY.

    (a) Incentives for Qualified Biogas Property Made Eligible for the 
Energy Credit.--
            (1) In general.--Subparagraph (A) of section 48(a)(3) of 
        the Internal Revenue Code of 1986 is amended by striking ``or'' 
        at the end of clause (vi), by inserting ``or'' at the end of 
        clause (vii), and by adding at the end the following new 
        clause:
                            ``(viii) qualified biogas property,''.
            (2) Qualified biogas property.--Subsection (c) of section 
        48 of such Code is amended by adding at the end the following 
        new paragraph:
            ``(5) Qualified biogas property.--
                    ``(A) In general.--The term `qualified biogas 
                property' means property comprising a system which--
                            ``(i) uses anaerobic digesters or other 
                        biological, chemical, thermal, or mechanical 
                        processes (alone or in combination) to convert 
                        biomass (as defined in section 45K(c)(3)) into 
                        a gas which consists of not less than 52 
                        percent methane, and
                            ``(ii) captures such gas for use as a fuel.
                    ``(B) Inclusion of certain cleaning and 
                conditioning equipment.--Such term shall include any 
                property which cleans and conditions the gas referred 
                to in subparagraph (A) for use as a fuel.
                    ``(C) Termination.--No credit shall be determined 
                under this section with respect to any qualified biogas 
                property for any period after December 31, 2019.''.
            (3) Qualified biogas property made eligible for 30 percent 
        credit.--Clause (i) of section 48(a)(2)(A) of such Code is 
        amended by striking ``and'' at the end of subclause (III) and 
        by adding at the end the following new subclause:
                                    ``(V) qualified biogas property, 
                                and''.
            (4) Denial of double benefit.--Subsection (e) of section 45 
        of such Code is amended by adding at the end the following new 
        paragraph:
            ``(12) Coordination with energy credit for qualified biogas 
        property.--The term `qualified facility' shall not include any 
        facility which produces electricity from gas produced by 
        qualified biogas property (as defined in section 48(c)(5)) if a 
        credit is determined under section 48 with respect to such 
        property for the taxable year or any prior taxable year.''.
            (5) Effective date.--The amendments made by this subsection 
        shall apply to periods after December 31, 2013, in taxable 
        years ending after such date, 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).
    (b) Qualified Biogas Property Made Eligible for Financing With New 
Clean Renewable Energy Bonds.--
            (1) In general.--Paragraph (1) of section 54C(d) of the 
        Internal Revenue Code of 1986 is amended by inserting ``, or a 
        qualified biogas property (as defined in section 48(c)(5)),'' 
        before ``owned by''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to obligations issued after the date of the 
        enactment of this Act.
    (c) Study of Biogas.--The Secretary of the Treasury shall enter 
into an agreement with the National Renewable Energy Laboratory to 
undertake a study of biogas. Such agreement shall provide for a written 
report to be submitted to Congress not later than 2 years after the 
date of the enactment of this Act. Such report shall address the 
following issues:
            (1) The quality of biogas, including a comparison of biogas 
        to natural gas and the identification of any components of 
        biogas which make it unsuitable for injection into existing 
        natural gas pipelines.
            (2) Methods for obtaining the highest energy content in 
        biogas, including the use of co-digestion and identifying the 
        optimal feed mixture.
            (3) Recommendations for the expansion of biogas production, 
        including an analysis of the extent to which increasing the 
        methane content of biogas would result in its greater use and 
        an analysis of how the expanded use of biogas could help meet 
        the growing energy needs of the United States.
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