[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 3264 Introduced in Senate (IS)]

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114th CONGRESS
  2d Session
                                S. 3264

  To amend the Internal Revenue Code of 1986 to modify the credit for 
 production of electricity from renewable resources to allow a credit 
 for certain open-loop biomass and trash facilities placed in service 
    before the date of the enactment of this Act and to modify the 
                  definition of municipal solid waste.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 14, 2016

 Mr. Menendez (for himself, Ms. Stabenow, Mr. Cardin, Ms. Collins, Mr. 
  King, Ms. Ayotte, Ms. Klobuchar, and Mrs. Feinstein) 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 modify the credit for 
 production of electricity from renewable resources to allow a credit 
 for certain open-loop biomass and trash facilities placed in service 
    before the date of the enactment of this Act and to modify the 
                  definition of municipal solid waste.

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

SECTION 1. SPECIAL RULE FOR CERTAIN FACILITIES GENERATING ELECTRICITY 
              FROM BIOMASS AND MUNICIPAL SOLID WASTE.

    (a) In General.--Section 45(e) of the Internal Revenue Code of 1986 
is amended by adding at the end the following new paragraph:
            ``(12) Special rule for certain qualified facilities.--
                    ``(A) In general.--In the case of electricity 
                produced at a qualified facility described in paragraph 
                (3) or (7) of subsection (d) and placed in service 
                before the date of the enactment of this paragraph, a 
                taxpayer may elect to apply subsection (a)(2)(A)(ii) by 
                substituting `the period beginning after December 31, 
                2016, and ending before January 1, 2018' for `the 10-
                year period beginning on the date the facility was 
                originally placed in service'.
                    ``(B) Limitation.--No credit shall be allowed under 
                subsection (a) to any taxpayer making an election under 
                this paragraph with respect to electricity produced and 
                sold at a facility during any period which, when 
                aggregated with all other periods for which a credit is 
                allowed under this section with respect to electricity 
                produced and sold at such facility, is in excess of 10 
                years.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on January 1, 2017.

SEC. 2. MODIFICATION TO DEFINITION OF MUNICIPAL SOLID WASTE.

    (a) In General.--Paragraph (6) of section 45(c) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(6) Municipal solid waste.--
                    ``(A) In general.--The term `municipal solid waste' 
                has the meaning given the term `solid waste' under 
                section 2(27) of the Solid Waste Disposal Act (42 
                U.S.C. 6903), except that such term does not include--
                            ``(i) paper which is commonly recycled and 
                        which has been segregated from other solid 
                        waste (as so defined), or
                            ``(ii) solid waste (as so defined) which is 
                        collected as part of a system which commingles 
                        commonly recycled paper with other solid waste 
                        which is not commonly recycled at any point 
                        from the time of collection through any 
                        materials recovery.
                    ``(B) Special rule with respect to incidental and 
                residual waste.--Subparagraph (A)(ii) shall not apply 
                to--
                            ``(i) solid waste (as so defined) which 
                        only contains an incidental amount of commonly 
                        recycled paper, and
                            ``(ii) solid waste (as so defined) which is 
                        residual waste generated at a materials 
                        recovery facility that receives and processes 
                        only paper and other recyclable materials 
                        containing no more than an incidental amount of 
                        non-recyclable solid waste.
                    ``(C) No effect on existing processes.--Nothing in 
                subparagraph (A) shall be interpreted to require a 
                State or a political subdivision of a State, directly 
                or indirectly, to change the systems, processes, or 
                equipment it uses to collect, treat, dispose, or 
                otherwise use municipal solid waste, within the meaning 
                of the Solid Waste Disposal Act (42 U.S.C. 6903 et 
                seq.), nor require a change to the regulations that 
                implement subtitle D of such Act (42 U.S.C. 6901 et 
                seq.).''.
    (b) Rules With Respect to Electricity Produced From Solid Waste.--
Subsection (e) of section 45 of the Internal Revenue Code of 1986, as 
amended by this Act, is amended by adding at the end the following new 
paragraph:
            ``(13) Source of municipal solid waste feedstock.--In the 
        case of a qualified facility that produces electricity both 
        from municipal solid waste and other solid waste that is not a 
        qualified energy resource--
                    ``(A) such facility shall be considered a qualified 
                facility if it otherwise meets the requirements of 
                subsection (d), and
                    ``(B) subsection (a) shall only apply to that 
                portion of the electricity produced from municipal 
                solid waste.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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