[Congressional Record Volume 153, Number 128 (Saturday, August 4, 2007)]
[House]
[Pages H9915-H9951]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
RENEWABLE ENERGY AND ENERGY CONSERVATION TAX ACT OF 2007
Mr. RANGEL. Mr. Speaker, pursuant to House Resolution 615, I call up
the bill (H.R. 2776) to amend the Internal Revenue Code of 1986 to
provide tax incentives for the production of renewable energy and
energy conservation, and ask for its immediate consideration.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 2776
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF
CONTENTS.
(a) Short Title.--This Act may be cited as the ``Renewable
Energy and Energy Conservation Tax Act of 2007''.
[[Page H9916]]
(b) Amendment of 1986 Code.--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) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; amendment of 1986 Code; table of contents.
TITLE I--PRODUCTION INCENTIVES
Sec. 101. Extension and modification of renewable energy credit.
Sec. 102. Production credit for electricity produced from marine
renewables.
Sec. 103. Extension and modification of energy credit.
Sec. 104. New clean renewable energy bonds.
Sec. 105. Extension and modification of special rule to implement FERC
and State electric restructuring policy.
Sec. 106. Repeal of dollar limitation and allowance against alternative
minimum tax for residential solar and fuel cell property
credit.
TITLE II--CONSERVATION
Subtitle A--Transportation
Sec. 201. Credit for plug-in hybrid vehicles.
Sec. 202. Extension and modification of alternative fuel vehicle
refueling property credit.
Sec. 203. Extension and modification of credits for biodiesel and
renewable diesel.
Sec. 204. Credit for production of cellulosic alcohol.
Sec. 205. Extension of transportation fringe benefit to bicycle
commuters.
Sec. 206. Modification of limitation on automobile depreciation.
Sec. 207. Restructuring of New York Liberty Zone tax credits.
Subtitle B--Other Conservation Provisions
Sec. 211. Qualified energy conservation bonds.
Sec. 212. Qualified residential energy efficiency assistance bonds.
Sec. 213. Extension of energy efficient commercial buildings deduction.
Sec. 214. Modifications of energy efficient appliance credit for
appliances produced after 2007.
Sec. 215. Five-year applicable recovery period for depreciation of
qualified energy management devices.
TITLE III--REVENUE PROVISIONS
Subtitle A--Denial of Oil and Gas Tax Benefits
Sec. 301. Denial of deduction for income attributable to domestic
production of oil, natural gas, or primary products
thereof.
Sec. 302. 7-year amortization of geological and geophysical
expenditures for certain major integrated oil companies.
Sec. 303. Clarification of determination of foreign oil and gas
extraction income.
Subtitle B--Clarification of Eligibility for Certain Fuel Credits
Sec. 311. Clarification of eligibility for renewable diesel credit.
Sec. 312. Clarification that credits for fuel are designed to provide
an incentive for United States production.
TITLE IV--OTHER PROVISIONS
Subtitle A--Studies
Sec. 401. Carbon audit of the tax code.
Sec. 402. Comprehensive study of biofuels.
Subtitle B--Application of Certain Labor Standards on Projects Financed
Under Tax Credit Bonds
Sec. 411. Application of certain labor standards on projects financed
under tax credit bonds.
TITLE I--PRODUCTION INCENTIVES
SEC. 101. EXTENSION AND MODIFICATION OF RENEWABLE ENERGY
CREDIT.
(a) Extension of Credit.--Each of the following provisions
of section 45(d) (relating to qualified facilities) is
amended by striking ``January 1, 2009'' and inserting
``January 1, 2013'':
(1) Paragraph (1).
(2) Clauses (i) and (ii) of paragraph (2)(A).
(3) Clauses (i)(I) and (ii) of paragraph (3)(A).
(4) Paragraph (4).
(5) Paragraph (5).
(6) Paragraph (6).
(7) Paragraph (7).
(8) Subparagraphs (A) and (B) of paragraph (9).
(b) Modification of Credit Phaseout.--
(1) Repeal of phaseout.--Subsection (b) of section 45 is
amended--
(A) by striking paragraph (1), and
(B) by striking ``the 8 cent amount in paragraph (1),'' in
paragraph (2) thereof.
(2) Limitation based on investment in facility.--Subsection
(b) of section 45 is amended by inserting before paragraph
(2) the following new paragraph:
``(1) Limitation based on investment in facility.--
``(A) In general.--In the case of any qualified facility
originally placed in service after December 31, 2008, the
amount of the credit determined under subsection (a) for any
taxable year with respect to electricity produced at such
facility shall not exceed the product of--
``(i) the applicable percentage with respect to such
facility, multiplied by
``(ii) the eligible basis of such facility.
``(B) Carryforward of unused limitation and excess
credit.--
``(i) Unused limitation.--If the limitation imposed under
subparagraph (A) with respect to any facility for any taxable
year exceeds the credit determined under subsection (a)
(determined without regard to this paragraph) with respect to
such facility for such taxable year, the limitation imposed
under subparagraph (A) with respect to such facility for the
succeeding taxable year shall be increased by the amount of
such excess.
``(ii) Excess credit.--If the credit determined under
subsection (a) (determined without regard to this paragraph)
with respect to any facility for any taxable year exceeds the
limitation imposed under subparagraph (A) with respect to
such facility for such taxable year, the credit determined
under subsection (a) with respect to such facility for the
succeeding taxable year (determined before the application of
subparagraph (A) for such succeeding taxable year) shall be
increased by the amount of such excess. With respect to any
facility, no amount may carried forward under this clause to
any taxable year beginning after the 10-year period described
in subsection (a)(2)(A)(ii) with respect to such facility.
``(C) Applicable percentage.--For purposes of this
paragraph--
``(i) In general.--The term `applicable percentage' means,
with respect to any facility, the appropriate percentage
prescribed by the Secretary for the month in which such
facility is originally placed in service.
``(ii) Method of prescribing percentages.--The percentages
prescribed by the Secretary for any month under clause (i)
shall be percentages which yield over a 10-year period
amounts of limitation under subparagraph (A) which have a
present value equal to 35 percent of the eligible basis of
the facility.
``(iii) Method of discounting.--The present value under
clause (ii) shall be determined--
``(I) as of the last day of the 1st year of the 10-year
period referred to in clause (ii),
``(II) by using a discount rate equal to the average annual
interest rate of tax-exempt obligations having a term of 10
years or more which are issued during the month preceding the
month for which the percentage is being prescribed, and
``(III) by taking into account the limitation under
subparagraph (A) for any year on the last day of such year.
``(D) Eligible basis.--For purposes of this paragraph, the
term `eligible basis' means, with respect to any facility,
the basis of such facility determined as of the time that
such facility is originally placed in service.
``(E) Special rule for first and last year of credit
period.--In the case of any taxable year any portion of which
is not within the 10-year period described in subsection
(a)(2)(A)(ii) with respect to any facility, the amount of the
limitation under subparagraph (A) with respect to such
facility shall be reduced by an amount which bears the same
ratio to the amount of such limitation (determined without
regard to this subparagraph) as such portion of the taxable
year which is not within such period bears to the entire
taxable year.''.
(c) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to property
originally placed in service after December 31, 2008.
(2) Repeal of credit phaseout.--The amendments made by
subsection (b)(1) shall apply to taxable years ending after
December 31, 2008.
SEC. 102. PRODUCTION CREDIT FOR ELECTRICITY PRODUCED FROM
MARINE RENEWABLES.
(a) In General.--Paragraph (1) of section 45(c) (relating
to resources) is amended by striking ``and'' at the end of
subparagraph (G), by striking the period at the end of
subparagraph (H) and inserting ``, and'', and by adding at
the end the following new subparagraph:
``(I) marine and hydrokinetic renewable energy.''.
(b) Marine Renewables.--Subsection (c) of section 45 is
amended by adding at the end the following new paragraph:
``(10) Marine and hydrokinetic renewable energy.--
``(A) In general.--The term `marine and hydrokinetic
renewable energy' means energy derived from--
``(i) waves, tides, and currents in oceans, estuaries, and
tidal areas,
``(ii) free flowing water in rivers, lakes, and streams,
``(iii) free flowing water in an irrigation system, canal,
or other man-made channel, including projects that utilize
nonmechanical structures to accelerate the flow of water for
electric power production purposes, or
``(iv) differentials in ocean temperature (ocean thermal
energy conversion).
``(B) Exceptions.--Such term shall not include any energy
which is derived from any source which utilizes a dam,
diversionary structure (except as provided in subparagraph
(A)(iii)), or impoundment for electric power production
purposes.''.
(c) Definition of Facility.--Subsection (d) of section 45
is amended by adding at the end the following new paragraph:
``(11) Marine and hydrokinetic renewable energy
facilities.--In the case of a facility producing electricity
from marine and
[[Page H9917]]
hydrokinetic renewable energy, the term `qualified facility'
means any facility owned by the taxpayer--
``(A) which has a nameplate capacity rating of at least 150
kilowatts, and
``(B) which is originally placed in service on or after the
date of the enactment of this paragraph and before January 1,
2013.''.
(d) Credit Rate.--Subparagraph (A) of section 45(b)(4) is
amended by striking ``or (9)'' and inserting ``(9), or
(11)''.
(e) Coordination With Small Irrigation Power.--Paragraph
(5) of section 45(d), as amended by this Act, is amended by
striking ``January 1, 2013'' and inserting ``the date of the
enactment of paragraph (11)''.
(f) Effective Date.--The amendments made by this section
shall apply to electricity produced and sold after the date
of the enactment of this Act, in taxable years ending after
such date.
SEC. 103. EXTENSION AND MODIFICATION OF ENERGY CREDIT.
(a) Extension of Credit.--
(1) Solar energy property.--Paragraphs (2)(A)(i)(II) and
(3)(A)(ii) of section 48(a) (relating to energy credit) are
each amended by striking ``January 1, 2009'' and inserting
``January 1, 2017''.
(2) Fuel cell property.--Subparagraph (E) of section
48(c)(1) (relating to qualified fuel cell property) is
amended by striking ``December 31, 2008'' and inserting
``December 31, 2016''.
(b) Allowance of Energy Credit Against Alternative Minimum
Tax.--Subparagraph (B) of section 38(c)(4) (relating to
specified credits) is amended by striking ``and'' at the end
of clause (iii), by striking the period at the end of clause
(iv) and inserting ``, and'', and by adding at the end the
following new clause:
``(v) the credit determined under section 46 to the extent
that such credit is attributable to the energy credit
determined under section 48.''.
(c) Increase of Credit Limitation for Fuel Cell Property.--
Subparagraph (B) of section 48(c)(1) is amended by striking
``$500'' and inserting ``$1,500''.
(d) Public Electric Utility Property Taken Into Account.--
(1) In general.--Paragraph (3) of section 48(a) is amended
by striking the second sentence thereof.
(2) Conforming amendments.--
(A) Paragraph (1) of section 48(c) is amended by striking
subparagraph (D) and redesignating subparagraph (E) as
subparagraph (D).
(B) Paragraph (2) of section 48(c) is amended by striking
subparagraph (D) and redesignating subparagraph (E) as
subparagraph (D).
(e) Clerical Amendments.--Paragraphs (1)(B) and (2)(B) of
section 48(c) are each amended by striking ``paragraph (1)''
and inserting ``subsection (a)''.
(f) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall take
effect on the date of the enactment of this Act.
(2) Allowance against alternative minimum tax.--The
amendments made by subsection (b) shall apply to credits
determined under section 46 of the Internal Revenue Code of
1986 in taxable years beginning after the date of the
enactment of this Act and to carrybacks of such credits.
(3) Increase in limitation; public electric utility
property.--The amendments made by subsections (c) and (d)
shall apply to periods after the date of the enactment of
this Act, 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).
SEC. 104. NEW CLEAN RENEWABLE ENERGY BONDS.
(a) In General.--Part IV of subchapter A of chapter 1
(relating to credits against tax) is amended by adding at the
end the following new subpart:
``Subpart I--Qualified Tax Credit Bonds
``Sec. 54A. Credit to holders of qualified tax credit bonds.
``Sec. 54B. New clean renewable energy bonds.
``SEC. 54A. CREDIT TO HOLDERS OF QUALIFIED TAX CREDIT BONDS.
``(a) Allowance of Credit.--If a taxpayer holds a qualified
tax credit bond on one or more credit allowance dates of the
bond during any taxable year, there shall be allowed as a
credit against the tax imposed by this chapter for the
taxable year an amount equal to the sum of the credits
determined under subsection (b) with respect to such dates.
``(b) Amount of Credit.--
``(1) In general.--The amount of the credit determined
under this subsection with respect to any credit allowance
date for a qualified tax credit bond is 25 percent of the
annual credit determined with respect to such bond.
``(2) Annual credit.--The annual credit determined with
respect to any qualified tax credit bond is the product of--
``(A) the applicable credit rate, multiplied by
``(B) the outstanding face amount of the bond.
``(3) Applicable credit rate.--For purposes of paragraph
(2), the applicable credit rate is the rate which the
Secretary estimates will permit the issuance of qualified tax
credit bonds with a specified maturity or redemption date
without discount and without interest cost to the qualified
issuer. The applicable credit rate with respect to any
qualified tax credit bond shall be determined as of the first
day on which there is a binding, written contract for the
sale or exchange of the bond.
``(4) Special rule for issuance and redemption.--In the
case of a bond which is issued during the 3-month period
ending on a credit allowance date, the amount of the credit
determined under this subsection with respect to such credit
allowance date shall be a ratable portion of the credit
otherwise determined based on the portion of the 3-month
period during which the bond is outstanding. A similar rule
shall apply when the bond is redeemed or matures.
``(c) Limitation Based on Amount of Tax.--
``(1) In general.--The credit allowed under subsection (a)
for any taxable year shall not exceed the excess of--
``(A) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(B) the sum of the credits allowable under this part
(other than subpart C and this subpart).
``(2) Carryover of unused credit.--If the credit allowable
under subsection (a) exceeds the limitation imposed by
paragraph (1) for such taxable year, such excess shall be
carried to the succeeding taxable year and added to the
credit allowable under subsection (a) for such taxable year
(determined before the application of paragraph (1) for such
succeeding taxable year).
``(d) Qualified Tax Credit Bond.--For purposes of this
section--
``(1) Qualified tax credit bond.--The term `qualified tax
credit bond' means a new clean renewable energy bond which is
part of an issue that meets the requirements of paragraphs
(2), (3), (4), and (5).
``(2) Special rules relating to expenditures.--
``(A) In general.--An issue shall be treated as meeting the
requirements of this paragraph if, as of the date of
issuance, the issuer reasonably expects--
``(i) 100 percent or more of the available project proceeds
to be spent for 1 or more qualified purposes within the 3-
year period beginning on such date of issuance, and
``(ii) 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 such date of
issuance.
``(B) Failure to spend required amount of bond proceeds
within 3 years.--
``(i) In general.--To the extent that less than 100 percent
of the available project proceeds of the issue are expended
by the close of the expenditure period for 1 or more
qualified purposes, 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.
``(ii) Expenditure period.--For purposes of this subpart,
the term `expenditure period' means, with respect to any
issue, the 3-year period beginning on the date of issuance.
Such term shall include any extension of such period under
clause (iii).
``(iii) Extension of period.--Upon submission of a request
prior to the expiration of the expenditure period (determined
without regard to any extension under this clause), the
Secretary may extend such period if the issuer establishes
that the failure to expend the proceeds within the original
expenditure period is due to reasonable cause and the
expenditures for qualified purposes will continue to proceed
with due diligence.
``(C) Qualified purpose.--For purposes of this paragraph,
the term `qualified purpose' means a purpose specified in
section 54B(a)(1).
``(D) Reimbursement.--For purposes of this subtitle,
available project proceeds of an issue shall be treated as
spent for a qualified purpose if such proceeds are used to
reimburse the issuer for amounts paid for a qualified purpose
after the date that the Secretary makes an allocation of bond
limitation with respect to such issue, but only if--
``(i) prior to the payment of the original expenditure, the
issuer declared its intent to reimburse such expenditure with
the proceeds of a qualified tax credit bond,
``(ii) not later than 60 days after payment of the original
expenditure, the issuer adopts an official intent to
reimburse the original expenditure with such proceeds, and
``(iii) the reimbursement is made not later than 18 months
after the date the original expenditure is paid.
``(3) Reporting.--An issue shall be treated as meeting the
requirements of this paragraph if the issuer of qualified tax
credit bonds submits reports similar to the reports required
under section 149(e).
``(4) Special rules relating to arbitrage.--
``(A) In general.--An issue shall be treated as meeting the
requirements of this paragraph if the issuer satisfies the
requirements of section 148 with respect to the proceeds of
the issue.
``(B) Special rule for investments during expenditure
period.--An issue shall not be treated as failing to meet the
requirements of subparagraph (A) by reason of any investment
of available project proceeds during the expenditure period.
``(C) Special rule for reserve funds.--An issue shall not
be treated as failing to meet the requirements of
subparagraph (A)
[[Page H9918]]
by reason of any fund which is expected to be used to repay
such issue if--
``(i) such fund is funded at a rate not more rapid than
equal annual installments,
``(ii) such fund is funded in a manner that such fund will
not exceed the amount necessary to repay the issue if
invested at the maximum rate permitted under clause (iii),
and
``(iii) the yield on such fund is not greater than the
discount rate determined under paragraph (5)(B) with respect
to the issue.
``(5) Maturity limitation.--
``(A) In general.--An issue shall not be treated as meeting
the requirements of this paragraph if the maturity of any
bond which is part of such issue exceeds the maximum term
determined by the Secretary under subparagraph (B).
``(B) Maximum term.--During each calendar month, the
Secretary shall determine the maximum term permitted under
this paragraph for bonds issued during the following calendar
month. Such maximum term shall be the term which the
Secretary estimates will result in the present value of the
obligation to repay the principal on the bond being equal to
50 percent of the face amount of such bond. Such present
value shall be determined using as a discount rate the
average annual interest rate of tax-exempt obligations having
a term of 10 years or more which are issued during the month.
If the term as so determined is not a multiple of a whole
year, such term shall be rounded to the next highest whole
year.
``(e) Other Definitions.--For purposes of this subchapter--
``(1) Credit allowance date.--The term `credit allowance
date' means--
``(A) March 15,
``(B) June 15,
``(C) September 15, and
``(D) December 15.
Such term includes the last day on which the bond is
outstanding.
``(2) Bond.--The term `bond' includes any obligation.
``(3) State.--The term `State' includes the District of
Columbia and any possession of the United States.
``(4) Available project proceeds.--The term `available
project proceeds' means--
``(A) the excess of--
``(i) the proceeds from the sale of an issue, over
``(ii) the issuance costs financed by the issue (to the
extent that such costs do not exceed 2 percent of such
proceeds), and
``(B) the proceeds from any investment of the excess
described in subparagraph (A).
``(f) Credit Treated as Interest.--For purposes of this
subtitle, the credit determined under subsection (a) shall be
treated as interest which is includible in gross income.
``(g) S Corporations and Partnerships.--In the case of a
tax credit bond held by an S corporation or partnership, the
allocation of the credit allowed by this section to the
shareholders of such corporation or partners of such
partnership shall be treated as a distribution.
``(h) Bonds Held by Regulated Investment Companies and Real
Estate Investment Trusts.--If any qualified tax credit bond
is held by a regulated investment company or a real estate
investment trust, the credit determined under subsection (a)
shall be allowed to shareholders of such company or
beneficiaries of such trust (and any gross income included
under subsection (f) with respect to such credit shall be
treated as distributed to such shareholders or beneficiaries)
under procedures prescribed by the Secretary.
``(i) Credits May Be Stripped.--Under regulations
prescribed by the Secretary--
``(1) In general.--There may be a separation (including at
issuance) of the ownership of a qualified tax credit bond and
the entitlement to the credit under this section with respect
to such bond. In case of any such separation, the credit
under this section shall be allowed to the person who on the
credit allowance date holds the instrument evidencing the
entitlement to the credit and not to the holder of the bond.
``(2) Certain rules to apply.--In the case of a separation
described in paragraph (1), the rules of section 1286 shall
apply to the qualified tax credit bond as if it were a
stripped bond and to the credit under this section as if it
were a stripped coupon.
``SEC. 54B. NEW CLEAN RENEWABLE ENERGY BONDS.
``(a) New Clean Renewable Energy Bond.--For purposes of
this subpart, the term `new clean renewable energy 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
public power providers or cooperative electric companies for
one or more qualified renewable energy facilities,
``(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.--The annual credit determined
under section 54A(b) with respect to any new clean renewable
energy bond shall be 70 percent of the amount so determined
without regard to this subsection.
``(c) Limitation on Amount of Bonds Designated.--
``(1) In general.--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.
``(2) National limitation on amount of bonds designated.--
There is a national new clean renewable energy bond
limitation of $2,000,000,000 which shall be allocated by the
Secretary as provided in paragraph (3), except that--
``(A) not more than 60 percent thereof may be allocated to
qualified projects of public power providers, and
``(B) not more than 40 percent thereof may be allocated to
qualified projects of cooperative electric companies.
``(3) Method of allocation.--
``(A) Allocation among public power providers.--After the
Secretary determines the qualified projects of public power
providers which are appropriate for receiving an allocation
of the national new clean renewable energy bond limitation,
the Secretary shall, to the maximum extent practicable, make
allocations among such projects in such manner that the
amount allocated to each such project bears the same ratio to
the cost of such project as the limitation under subparagraph
(2)(A) bears to the cost of all such projects.
``(B) Allocation among cooperative electric companies.--The
Secretary shall make allocations of the amount of the
national new clean renewable energy bond limitation described
in paragraph (2)(B) among qualified projects of cooperative
electric companies in such manner as the Secretary determines
appropriate.
``(d) Definitions.--For purposes of this section--
``(1) Qualified renewable energy facility.--The term
`qualified renewable energy facility' means a qualified
facility (as determined under section 45(d) without regard to
paragraphs (8) and (10) thereof and to any placed in service
date) owned by a public power provider or a cooperative
electric company.
``(2) Public power provider.--The term `public power
provider' means a State utility with a service obligation, as
such terms are defined in section 217 of the Federal Power
Act (as in effect on the date of the enactment of this
paragraph).
``(3) Cooperative electric company.--The term `cooperative
electric company' means a mutual or cooperative electric
company described in section 501(c)(12) or section
1381(a)(2)(C).
``(4) Clean renewable energy bond lender.--The term `clean
renewable energy bond lender' means a lender which is a
cooperative which is owned by, or has outstanding loans to,
100 or more cooperative electric companies and is in
existence on February 1, 2002, and shall include any
affiliated entity which is controlled by such lender.
``(5) Qualified issuer.--The term `qualified issuer' means
a public power provider, a cooperative electric company, a
clean renewable energy bond lender, or a not-for-profit
electric utility which has received a loan or loan guarantee
under the Rural Electrification Act.''.
(b) Reporting.--Subsection (d) of section 6049 (relating to
returns regarding payments of interest) is amended by adding
at the end the following new paragraph:
``(9) Reporting of credit on qualified tax credit bonds.--
``(A) In general.--For purposes of subsection (a), the term
`interest' includes amounts includible in gross income under
section 54A and such amounts shall be treated as paid on the
credit allowance date (as defined in section 54A(e)(1)).
``(B) Reporting to corporations, etc.--Except as otherwise
provided in regulations, in the case of any interest
described in subparagraph (A) of this paragraph, subsection
(b)(4) of this section shall be applied without regard to
subparagraphs (A), (H), (I), (J), (K), and (L)(i).
``(C) Regulatory authority.--The Secretary may prescribe
such regulations as are necessary or appropriate to carry out
the purposes of this paragraph, including regulations which
require more frequent or more detailed reporting.''.
(c) Conforming Amendments.--
(1) Sections 54(c)(2) and 1400N(l)(3)(B) are each amended
by striking ``subpart C'' and inserting ``subparts C and I''.
(2) Section 1397E(c)(2) is amended by striking ``subpart
H'' and inserting ``subparts H and I''.
(3) Section 6401(b)(1) is amended by striking ``and H'' and
inserting ``H, and I''.
(4) The heading of subpart H of part IV of subchapter A of
chapter 1 is amended by striking ``Certain Bonds'' and
inserting ``Clean Renewable Energy Bonds''.
(5) The table of subparts for part IV of subchapter A of
chapter 1 is amended by striking the item relating to subpart
H and inserting the following new items:
``subpart h. nonrefundable credit to holders of clean renewable energy
bonds.
``subpart i. qualified tax credit bonds.''.
(d) Effective Dates.--The amendments made by this section
shall apply to obligations issued after the date of the
enactment of this Act.
SEC. 105. EXTENSION AND MODIFICATION OF SPECIAL RULE TO
IMPLEMENT FERC AND STATE ELECTRIC RESTRUCTURING
POLICY.
(a) Extension for Qualified Electric Utilities.--
(1) In general.--Paragraph (3) of section 451(i) (relating
to special rule for sales or dispositions to implement
Federal Energy Regulatory Commission or State electric
restructuring policy) is amended by striking
[[Page H9919]]
``before January 1, 2008,'' and inserting ``before January 1,
2010, by a qualified electric utility,''.
(2) Qualified electric utility.--Subsection (i) of section
451 is amended by redesignating paragraphs (6) through (10)
as paragraphs (7) through (11), respectively, and by
inserting after paragraph (5) the following new paragraph:
``(6) Qualified electric utility.--For purposes of this
subsection, the term `qualified electric utility' means--
``(A) an electric utility (as defined in section 3(22) of
the Federal Power Act (16 U.S.C. 796(22)), and
``(B) any person in the same holding company system (as
defined in section 1262(9) of the Public Utility Holding
Company Act of 2005 (42 U.S.C. 16451(9)) as an electric
utility referred to subparagraph (A).''.
(b) Extension of Period for Transfer of Operational Control
Authorized by FERC.--Clause (ii) of section 451(i)(4)(B) is
amended by striking ``December 31, 2007'' and inserting ``the
date which is 4 years after the close of the taxable year in
which the transaction occurs''.
(c) Property Located Outside the United States Not Treated
as Exempt Utility Property.--Paragraph (5) of section 451(i)
is amended by adding at the end the following new
subparagraph:
``(C) Exception for property located outside the united
states.--The term `exempt utility property' shall not include
any property which is located outside the United States.''.
(d) Effective Dates.--
(1) Extension.--The amendment made by subsection (a) shall
apply to transactions after December 31, 2007.
(2) Transfers of operational control.--The amendment made
by subsection (b) shall take effect as if included in section
909 of the American Jobs Creation Act of 2004.
(3) Exception for property located outside the united
states.--The amendment made by subsection (c) shall apply to
transactions after the date of the enactment of this Act.
SEC. 106. REPEAL OF DOLLAR LIMITATION AND ALLOWANCE AGAINST
ALTERNATIVE MINIMUM TAX FOR RESIDENTIAL SOLAR
AND FUEL CELL PROPERTY CREDIT.
(a) Repeal of Maximum Dollar Limitation.--
(1) In general.--Subsection (b) of section 25D (relating to
limitations) is amended to read as follows:
``(b) Certification of Solar Water Heating Property.--No
credit shall be allowed under this section for an item of
property described in subsection (d)(1) unless such property
is certified for performance by the non-profit Solar Rating
Certification Corporation or a comparable entity endorsed by
the government of the State in which such property is
installed.''.
(2) Conforming amendments.--
(A) Subsection (e) of section 25D is amended by striking
paragraph (4) and by redesignating paragraphs (5) through (9)
as paragraphs (4) through (8), respectively.
(B) Paragraph (1) of section 25C(e) is amended by striking
``(8), and (9)'' and inserting ``and (8) (and paragraph (4)
as in effect before its repeal by the Renewable Energy and
Energy Conservation Tax Act of 2007)''.
(b) Credit Allowed Against Alternative Minimum Tax.--
(1) In general.--Subsection (c) of section 25D is amended
to read as follows:
``(c) Limitation Based on Amount of Tax; Carryforward of
Unused Credit.--
``(1) Limitation based on amount of tax.--In the case of a
taxable year to which section 26(a)(2) does not apply, the
credit allowed under subsection (a) for the taxable year
shall not exceed the excess of--
``(A) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(B) the sum of the credits allowable under this subpart
(other than this section) and section 27 for the taxable
year.
``(2) Carryforward of unused credit.--
``(A) Rule for years in which all personal credits allowed
against regular and alternative minimum tax.--In the case of
a taxable year to which section 26(a)(2) applies, if the
credit allowable under subsection (a) exceeds the limitation
imposed by section 26(a)(2) for such taxable year reduced by
the sum of the credits allowable under this subpart (other
than this section), such excess shall be carried to the
succeeding taxable year and added to the credit allowable
under subsection (a) for such succeeding taxable year.
``(B) Rule for other years.--In the case of a taxable year
to which section 26(a)(2) does not apply, if the credit
allowable under subsection (a) exceeds the limitation imposed
by paragraph (1) for such taxable year, such excess shall be
carried to the succeeding taxable year and added to the
credit allowable under subsection (a) for such succeeding
taxable year.''.
(2) Conforming amendments.--
(A) Section 23(b)(4)(B) is amended by inserting ``and
section 25D'' after ``this section''.
(B) Section 24(b)(3)(B) is amended by striking ``and 25B''
and inserting ``, 25B, and 25D''.
(C) Section 25B(g)(2) is amended by striking ``section 23''
and inserting ``sections 23 and 25D''.
(D) Section 26(a)(1) is amended by striking ``and 25B'' and
inserting ``25B, and 25D''.
(c) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to expenditures made after the date of the enactment of this
Act.
(2) Allowance against alternative minimum tax.--
(A) In general.--The amendments made by subsection (b)
shall apply to taxable years beginning after the date of the
enactment of this Act.
(B) Application of egtrra sunset.--The amendments made by
subsection (b)(2) shall be subject to title IX of the
Economic Growth and Tax Relief Reconciliation Act of 2001 in
the same manner as the provisions of such Act to which such
amendments relate.
TITLE II--CONSERVATION
Subtitle A--Transportation
SEC. 201. CREDIT FOR PLUG-IN HYBRID VEHICLES.
(a) In General.--Subpart B of part IV of subchapter A of
chapter 1 (relating to other credits) is amended by adding at
the end the following new section:
``SEC. 30D. PLUG-IN HYBRID VEHICLES.
``(a) Allowance of Credit.--There shall be allowed as a
credit against the tax imposed by this chapter for the
taxable year an amount equal to the sum of the credit amounts
determined under subsection (b) with respect to each
qualified plug-in hybrid vehicle placed in service by the
taxpayer during the taxable year.
``(b) Per Vehicle Dollar Limitation.--
``(1) In general.--The amount determined under this
subsection with respect to any qualified plug-in hybrid
vehicle is the sum of the amounts determined under paragraphs
(2) and (3) with respect to such vehicle.
``(2) Base amount.--The amount determined under this
paragraph is $4,000.
``(3) Battery capacity.--In the case of vehicle which draws
propulsion energy from a battery with not less than 5
kilowatt hours of capacity, the amount determined under this
paragraph is $200, plus $200 for each kilowatt hour of
capacity in excess of 5 kilowatt hours. The amount determined
under this paragraph shall not exceed $2,000.
``(c) Application With Other Credits.--
``(1) Business credit treated as part of general business
credit.--So much of the credit which would be allowed under
subsection (a) for any taxable year (determined without
regard to this subsection) that is attributable to property
of a character subject to an allowance for depreciation shall
be treated as a credit listed in section 38(b) for such
taxable year (and not allowed under subsection (a)).
``(2) Personal credit.--
``(A) In general.--For purposes of this title, the credit
allowed under subsection (a) for any taxable year (determined
after application of paragraph (1)) shall be treated as a
credit allowable under subpart A for such taxable year.
``(B) Limitation based on amount of tax.--In the case of a
taxable year to which section 26(a)(2) does not apply, the
credit allowed under subsection (a) for any taxable year
(determined after application of paragraph (1)) shall not
exceed the excess of--
``(i) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(ii) the sum of the credits allowable under subpart A
(other than this section and sections 23 and 25D) and section
27 for the taxable year.
``(d) Qualified Plug-In Hybrid Vehicle.--For purposes of
this section--
``(1) In general.--The term `qualified plug-in hybrid
vehicle' means a motor vehicle (as defined in section
30(c)(2))--
``(A) the original use of which commences with the
taxpayer,
``(B) which is acquired for use or lease by the taxpayer
and not for resale,
``(C) which is made by a manufacturer,
``(D) which has a gross vehicle weight rating of less than
14,000 pounds,
``(E) which has received a certificate of conformity under
the Clean Air Act and meets or exceeds the Bin 5 Tier II
emission standard established in regulations prescribed by
the Administrator of the Environmental Protection Agency
under section 202(i) of the Clean Air Act for that make and
model year vehicle,
``(F) which is propelled to a significant extent by an
electric motor which draws electricity from a battery which--
``(i) has a capacity of not less than 4 kilowatt hours, and
``(ii) is capable of being recharged from an external
source of electricity, and
``(G) which either--
``(i) is also propelled to a significant extent by other
than an electric motor, or
``(ii) has a significant onboard source of electricity
which also recharges the battery referred to in subparagraph
(F).
``(2) Exception.--The term `qualified plug-in hybrid
vehicle' shall not include any vehicle which is not a
passenger automobile or light truck if such vehicle has a
gross vehicle weight rating of less than 8,500 pounds.
``(3) Other terms.--The terms `passenger automobile',
`light truck', and `manufacturer' have the meanings given
such terms in regulations prescribed by the Administrator of
the Environmental Protection Agency for purposes of the
administration of title II of the Clean Air Act (42 U.S.C.
7521 et seq.).
``(4) Battery capacity.--The term `capacity' means, with
respect to any battery, the quantity of electricity which the
battery is capable of storing, expressed in kilowatt hours,
as measured from a 100 percent state of charge to a 0 percent
state of charge.
[[Page H9920]]
``(e) Limitation on Number of Qualified Plug-In Hybrid
Vehicles Eligible for Credit.--
``(1) In general.--In the case of a qualified plug-in
hybrid vehicle sold during the phaseout period, only the
applicable percentage of the credit otherwise allowable under
subsection (a) shall be allowed.
``(2) Phaseout period.--For purposes of this subsection,
the phaseout period is the period beginning with the second
calendar quarter following the calendar quarter which
includes the first date on which the number of qualified
plug-in hybrid vehicles manufactured by the manufacturer of
the vehicle referred to in paragraph (1) sold for use in the
United States after the date of the enactment of this
section, is at least 60,000.
``(3) Applicable percentage.--For purposes of paragraph
(1), the applicable percentage is--
``(A) 50 percent for the first 2 calendar quarters of the
phaseout period,
``(B) 25 percent for the 3d and 4th calendar quarters of
the phaseout period, and
``(C) 0 percent for each calendar quarter thereafter.
``(4) Controlled groups.--Rules similar to the rules of
section 30B(f)(4) shall apply for purposes of this
subsection.
``(f) Special Rules.--
``(1) Basis reduction.--The basis of any property for which
a credit is allowable under subsection (a) shall be reduced
by the amount of such credit (determined without regard to
subsection (c)).
``(2) Recapture.--The Secretary shall, by regulations,
provide for recapturing the benefit of any credit allowable
under subsection (a) with respect to any property which
ceases to be property eligible for such credit.
``(3) Property used outside united states, etc., not
qualified.--No credit shall be allowed under subsection (a)
with respect to any property referred to in section 50(b)(1)
or with respect to the portion of the cost of any property
taken into account under section 179.
``(4) Election not to take credit.--No credit shall be
allowed under subsection (a) for any vehicle if the taxpayer
elects to not have this section apply to such vehicle.
``(5) Property used by tax-exempt entity; interaction with
air quality and motor vehicle safety standards.--Rules
similar to the rules of paragraphs (6) and (10) of section
30B(h) shall apply for purposes of this section.''.
(b) Plug-In Vehicles Not Treated as New Qualified Hybrid
Vehicles.--Section 30B(d)(3) is amended by adding at the end
the following new subparagraph:
``(D) Exclusion of plug-in vehicles.--Any vehicle with
respect to which a credit is allowable under section 30D
(determined without regard to subsection (c) thereof) shall
not be taken into account under this section.''.
(c) Credit Made Part of General Business Credit.--Section
38(b) is amended by striking ``and'' at the end of paragraph
(30), by striking the period at the end of paragraph (31) and
inserting ``, plus'', and by adding at the end the following
new paragraph:
``(32) the portion of the plug-in hybrid vehicle credit to
which section 30D(c)(1) applies.''.
(d) Conforming Amendments.--
(1)(A) Section 24(b)(3)(B), as amended by this Act, is
amended by striking ``and 25D'' and inserting ``25D, and
30D''.
(B) Section 25(e)(1)(C)(ii) is amended by inserting
``30D,'' after ``25D,''.
(C) Section 25B(g)(2), as amended by this Act, is amended
by striking ``and 25D'' and inserting ``, 25D, and 30D''.
(D) Section 26(a)(1), as amended by this Act, is amended by
striking ``and 25D'' and inserting ``25D, and 30D''.
(E) Section 1400C(d)(2) is amended by striking ``and 25D''
and inserting ``25D, and 30D''.
(2) Section 1016(a) is amended by striking ``and'' at the
end of paragraph (37), by striking the period at the end of
paragraph (38) and inserting ``, and'', and by adding at the
end the following new paragraph:
``(38) to the extent provided in section 30D(f)(1).''.
(3) Section 6501(m) is amended by inserting ``30D(f)(4),''
after ``30C(e)(5),''.
(4) The table of sections for subpart B of part IV of
subchapter A of chapter 1 is amended by adding at the end the
following new item:
``Sec. 30D. Plug-in hybrid vehicles.''.
(e) Treatment of Alternative Motor Vehicle Credit as a
Personal Credit.--
(1) In general.--Paragraph (2) of section 30B(g) is amended
to read as follows:
``(2) Personal credit.--The credit allowed under subsection
(a) for any taxable year (after application of paragraph (1))
shall be treated as a credit allowable under subpart A for
such taxable year.''.
(2) Conforming amendment.--Subparagraph (A) of section
30C(d)(2) is amended by striking ``sections 27, 30, and 30B''
and inserting ``sections 27 and 30''.
(f) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to taxable years beginning after December 31, 2007.
(2) Treatment of alternative motor vehicle credit as
personal credit.--The amendments made by subsection (e) shall
apply to taxable years beginning after December 31, 2006.
(g) Application of EGTRRA Sunset.--The amendments made by
subsection (d)(1) shall be subject to title IX of the
Economic Growth and Tax Relief Reconciliation Act of 2001 in
the same manner as the provisions of such Act to which such
amendments relate.
SEC. 202. EXTENSION AND MODIFICATION OF ALTERNATIVE FUEL
VEHICLE REFUELING PROPERTY CREDIT.
(a) Increase in Credit Amount.--Section 30C (relating to
alternative fuel vehicle refueling property credit) is
amended--
(1) by striking ``30 percent'' in subsection (a) and
inserting ``50 percent'', and
(2) by striking ``$30,000'' in subsection (b)(1) and
inserting ``$50,000''.
(b) Extension of Credit.--Paragraph (2) of section 30C(g)
(relating to termination) is amended by striking ``December
31, 2009'' and inserting ``December 31, 2010''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
the enactment of this Act, in taxable years ending after such
date.
SEC. 203. EXTENSION AND MODIFICATION OF CREDITS FOR BIODIESEL
AND RENEWABLE DIESEL.
(a) In General.--Sections 40A(g), 6426(c)(6), and
6427(e)(5)(B) are each amended by striking ``December 31,
2008'' and inserting ``December 31, 2010''.
(b) Uniform Treatment of Diesel Produced From Biomass.--
Paragraph (3) of section 40A(f) is amended--
(1) by striking ``using a thermal depolymerization
process'', and
(2) by striking ``or D396'' in subparagraph (B).
(c) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to fuel produced,
and sold or used, after the date of the enactment of this
Act.
(2) Uniform treatment of diesel produced from biomass.--The
amendments made by subsection (b) shall apply to fuel
produced, and sold or used, after the date which is 30 days
after the date of the enactment of this Act.
SEC. 204. CREDIT FOR PRODUCTION OF CELLULOSIC ALCOHOL.
(a) In General.--Subsection (b) of section 40 is amended by
adding at the end the following new paragraph:
``(5) Cellulosic alcohol fuel producer credit.--
``(A) In general.--The cellulosic alcohol fuel producer
credit of any cellulosic alcohol fuel producer for any
taxable year is 50 cents for each gallon of qualified
cellulosic fuel production of such producer.
``(B) Qualified cellulosic fuel production.--For purposes
of this paragraph, the term `qualified cellulosic fuel
production' means any cellulosic alcohol which is produced by
a cellulosic alcohol fuel producer, and which during the
taxable year--
``(i) is sold by such producer to another person--
``(I) for use by such other person in the production of a
qualified mixture in such other person's trade or business
(other than casual off-farm production),
``(II) for use by such other person as a fuel in a trade or
business, or
``(III) who sells such alcohol at retail to another person
and places such alcohol in the fuel tank of such other
person, or
``(ii) is used or sold by such producer for any purpose
described in clause (i).
``(C) Cellulosic alcohol.--For purposes of this paragraph,
the term `cellulosic alcohol' means any alcohol which--
``(i) is produced in the United States for use as a fuel in
the United States, and
``(ii) is derived from any lignocellulosic or
hemicellulosic matter that is available on a renewable or
recurring basis.
For purposes of this subparagraph, the term `United States'
includes any possession of the United States.
``(D) Cellulosic alcohol fuel producer.--For purposes of
this paragraph, the term `cellulosic alcohol fuel producer'
means any person who produces cellulosic alcohol in a trade
or business and is registered with the Secretary as a
cellulosic alcohol fuel producer.
``(E) Additional distillation excluded.--The qualified
cellulosic fuel production of any producer for any taxable
year shall not include any alcohol which is purchased by the
producer and with respect to which such producer increases
the proof of the alcohol by additional distillation.''.
(b) Conforming Amendments.--
(1) Subsection (a) of section 40 is amended by striking
``plus'' at the end of paragraph (1), by striking ``plus'' at
the end of paragraph (2), by striking the period at the end
of paragraph (3) and inserting ``, plus'', and by adding at
the end the following new paragraph:
``(4) in the case of a cellulosic alcohol fuel producer,
the cellulosic alcohol fuel producer credit.''.
(2) Clause (ii) of section 40(d)(3)(C) is amended by
striking ``subsection (b)(4)(B)'' and inserting ``paragraph
(4)(B) or (5)(B) of subsection (b)''.
(c) Effective Date.--The amendments made by this section
shall apply to alcohol produced after December 31, 2007.
SEC. 205. EXTENSION OF TRANSPORTATION FRINGE BENEFIT TO
BICYCLE COMMUTERS.
(a) In General.--Paragraph (1) of section 132(f) of the
Internal Revenue Code of 1986 (relating to general rule for
qualified transportation fringe) is amended by adding at the
end the following:
[[Page H9921]]
``(D) Any qualified bicycle commuting reimbursement.''.
(b) Limitation on Exclusion.--Paragraph (2) of section
132(f) 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) the applicable annual limitation in the case of any
qualified bicycle commuting reimbursement.''.
(c) Definitions.--Paragraph (5) of section 132(f) of such
Code (relating to definitions) is amended by adding at the
end the following:
``(F) Definitions related to bicycle commuting
reimbursement.--
``(i) Qualified bicycle commuting reimbursement.--The term
`qualified bicycle commuting reimbursement' means, with
respect to any calendar year, any employer reimbursement
during the 15-month period beginning with the first day of
such calendar year for reasonable expenses incurred by the
employee during such calendar year for the purchase of a
bicycle and bicycle improvements, repair, and storage, if
such bicycle is regularly used for travel between the
employee's residence and place of employment.
``(ii) Applicable annual limitation.--The term `applicable
annual limitation' means, with respect to any employee for
any calendar year, the product of $20 multiplied by the
number of qualified bicycle commuting months during such
year.
``(iii) Qualified bicycle commuting month.--The term
`qualified bicycle commuting month' means, with respect to
any employee, any month during which such employee--
``(I) regularly uses the bicycle for a substantial portion
of the travel between the employee's residence and place of
employment, and
``(II) does not receive any benefit described in
subparagraph (A), (B), or (C) of paragraph (1).''.
(d) Constructive Receipt of Benefit.--Paragraph (4) of
section 132(f) is amended by inserting ``(other than a
qualified bicycle commuting reimbursement)'' after
``qualified transportation fringe''.
(e) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2007.
SEC. 206. MODIFICATION OF LIMITATION ON AUTOMOBILE
DEPRECIATION.
(a) In General.--Paragraph (5) of section 280F(d) of the
Internal Revenue Code of 1986 (defining passenger automobile)
is amended to read as follows:
``(5) Passenger automobile.--
``(A) In general.--Except as provided in subparagraph (B),
the term `passenger automobile' means any 4-wheeled vehicle--
``(i) which is primarily designed or which can be used to
carry passengers over public streets, roads, or highways
(except any vehicle operated exclusively on a rail or rails),
and
``(ii) which is rated at not more than 14,000 pounds gross
vehicle weight.
``(B) Exceptions.--The term `passenger automobile' shall
not include--
``(i) any exempt-design vehicle, and
``(ii) any exempt-use vehicle.
``(C) Exempt-design vehicle.--The term `exempt-design
vehicle' means--
``(i) any vehicle which, by reason of its nature or design,
is not likely to be used more than a de minimis amount for
personal purposes, and
``(ii) any vehicle--
``(I) which is designed to have a seating capacity of more
than 9 persons behind the driver's seat,
``(II) which is equipped with a cargo area of at least 5
feet in interior length which is an open area or is designed
for use as an open area but is enclosed by a cap and is not
readily accessible directly from the passenger compartment,
or
``(III) has an integral enclosure, fully enclosing the
driver compartment and load carrying device, does not have
seating rearward of the driver's seat, and has no body
section protruding more than 30 inches ahead of the leading
edge of the windshield.
``(D) Exempt-use vehicle.--The term `exempt-use vehicle'
means--
``(i) any ambulance, hearse, or combination ambulance-
hearse used by the taxpayer directly in a trade or business,
``(ii) any vehicle used by the taxpayer directly in the
trade or business of transporting persons or property for
compensation or hire, and
``(iii) any truck or van if substantially all of the use of
such vehicle by the taxpayer is directly in--
``(I) a farming business (within the meaning of section
263A(e)(4)),
``(II) the transportation of a substantial amount of
equipment, supplies, or inventory, or
``(III) the moving or delivery of property which requires
substantial cargo capacity.
``(E) Recapture.--In the case of any vehicle which is not a
passenger automobile by reason of being an exempt-use
vehicle, if such vehicle ceases to be an exempt-use vehicle
in any taxable year after the taxable year in which such
vehicle is placed in service, a rule similar to the rule of
subsection (b) shall apply.''.
(b) Conforming Amendment.--Section 179(b) of such Code
(relating to limitations) is amended by striking paragraph
(6).
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after December 31,
2007.
SEC. 207. RESTRUCTURING OF NEW YORK LIBERTY ZONE TAX CREDITS.
(a) In General.--Part I of subchapter Y of chapter 1 is
amended by redesignating section 1400L as 1400K and by adding
at the end the following new section:
``SEC. 1400L. NEW YORK LIBERTY ZONE TAX CREDITS.
``(a) In General.--In the case of a New York Liberty Zone
governmental unit, there shall be allowed as a credit against
any taxes imposed for any payroll period by section 3402 for
which such governmental unit is liable under section 3403 an
amount equal to so much of the portion of the qualifying
project expenditure amount allocated under subsection (b)(3)
to such governmental unit for the calendar year as is
allocated by such governmental unit to such period under
subsection (b)(4).
``(b) Qualifying Project Expenditure Amount.--For purposes
of this section--
``(1) In general.--The term `qualifying project expenditure
amount' means, with respect to any calendar year, the sum
of--
``(A) the total expenditures paid or incurred during such
calendar year by all New York Liberty Zone governmental units
and the Port Authority of New York and New Jersey for any
portion of qualifying projects located wholly within the City
of New York, New York, and
``(B) any such expenditures--
``(i) paid or incurred in any preceding calendar year which
begins after the date of enactment of this section, and
``(ii) not previously allocated under paragraph (3).
``(2) Qualifying project.--The term `qualifying project'
means any transportation infrastructure project, including
highways, mass transit systems, railroads, airports, ports,
and waterways, in or connecting with the New York Liberty
Zone (as defined in section 1400K(h)), which is designated as
a qualifying project under this section jointly by the
Governor of the State of New York and the Mayor of the City
of New York, New York.
``(3) General allocation.--
``(A) In general.--The Governor of the State of New York
and the Mayor of the City of New York, New York, shall
jointly allocate to each New York Liberty Zone governmental
unit the portion of the qualifying project expenditure amount
which may be taken into account by such governmental unit
under subsection (a) for any calendar year in the credit
period.
``(B) Aggregate limit.--The aggregate amount which may be
allocated under subparagraph (A) for all calendar years in
the credit period shall not exceed $2,000,000,000.
``(C) Annual limit.--The aggregate amount which may be
allocated under subparagraph (A) for any calendar year in the
credit period shall not exceed the sum of--
``(i) $169,000,000, plus
``(ii) the aggregate amount authorized to be allocated
under this paragraph for all preceding calendar years in the
credit period which was not so allocated.
``(D) Unallocated amounts at end of credit period.--If, as
of the close of the credit period, the amount under
subparagraph (B) exceeds the aggregate amount allocated under
subparagraph (A) for all calendar years in the credit period,
the Governor of the State of New York and the Mayor of the
City of New York, New York, may jointly allocate to New York
Liberty Zone governmental units for any calendar year in the
5-year period following the credit period an amount equal
to--
``(i) the lesser of--
``(I) such excess, or
``(II) the qualifying project expenditure amount for such
calendar year, reduced by
``(ii) the aggregate amount allocated under this
subparagraph for all preceding calendar years.
``(4) Allocation to payroll periods.--Each New York Liberty
Zone governmental unit which has been allocated a portion of
the qualifying project expenditure amount under paragraph (3)
for a calendar year may allocate such portion to payroll
periods beginning in such calendar year as such governmental
unit determines appropriate.
``(c) Carryover of Unused Allocations.--
``(1) In general.--Except as provided in paragraph (2), if
the amount allocated under subsection (b)(3) to a New York
Liberty Zone governmental unit for any calendar year exceeds
the aggregate taxes imposed by section 3402 for which such
governmental unit is liable under section 3403 for periods
beginning in such year, such excess shall be carried to the
succeeding calendar year and added to the allocation of such
governmental unit for such succeeding calendar year.
``(2) Reallocation.--If a New York Liberty Zone
governmental unit does not use an amount allocated to it
under subsection (b)(3) within the time prescribed by the
Governor of the State of New York and the Mayor of the City
of New York, New York, then such amount shall after such time
be treated for purposes of subsection (b)(3) in the same
manner as if it had never been allocated.
``(d) Definitions and Special Rules.--For purposes of this
section--
``(1) Credit period.--The term `credit period' means the
12-year period beginning on January 1, 2008.
``(2) New york liberty zone governmental unit.--The term
`New York Liberty Zone governmental unit' means--
``(A) the State of New York,
``(B) the City of New York, New York, and
[[Page H9922]]
``(C) any agency or instrumentality of such State or City.
``(3) Treatment of funds.--Any expenditure for a qualifying
project taken into account for purposes of the credit under
this section shall be considered State and local funds for
the purpose of any Federal program.
``(4) Treatment of credit amounts for purposes of
withholding taxes.--For purposes of this title, a New York
Liberty Zone governmental unit shall be treated as having
paid to the Secretary, on the day on which wages are paid to
employees, an amount equal to the amount of the credit
allowed to such entity under subsection (a) with respect to
such wages, but only if such governmental unit deducts and
withholds wages for such payroll period under section 3401
(relating to wage withholding).
``(e) Reporting.--The Governor of the State of New York and
the Mayor of the City of New York, New York, shall jointly
submit to the Secretary an annual report--
``(1) which certifies--
``(A) the qualifying project expenditure amount for the
calendar year, and
``(B) the amount allocated to each New York Liberty Zone
governmental unit under subsection (b)(3) for the calendar
year, and
``(2) includes such other information as the Secretary may
require to carry out this section.
``(f) Guidance.--The Secretary may prescribe such guidance
as may be necessary or appropriate to ensure compliance with
the purposes of this section.''
(b) Termination of Special Allowance and Expensing.--Clause
(v) of section 1400K(b)(2)(A), as redesignated by subsection
(a), is amended by striking the parenthetical therein and
inserting ``(in the case of nonresidential real property and
residential rental property, the date of the enactment of the
Renewable Energy and Energy Conservation Tax Act of 2007 or,
if acquired pursuant to a binding contract in effect on such
enactment date, December 31, 2009)''.
(c) Conforming Amendments.--
(1) Section 38(c)(3)(B) is amended by striking ``section
1400L(a)'' and inserting ``section 1400K(a)''.
(2) Section 168(k)(2)(D)(ii) is amended by striking
``section 1400L(c)(2)'' and inserting ``1400K(c)(2)''.
(3) The table of sections for part I of subchapter Y of
chapter 1 is amended by redesignating the item relating to
section 1400L as an item relating to section 1400K and by
inserting after such item the following new item:
``Sec. 1400L. New York Liberty Zone tax credits.''.
(d) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
Subtitle B--Other Conservation Provisions
SEC. 211. QUALIFIED ENERGY CONSERVATION BONDS.
(a) In General.--Subpart I of part IV of subchapter A of
chapter 1 is amended by adding at the end the following new
section:
``SEC. 54C. QUALIFIED ENERGY CONSERVATION BONDS.
``(a) Qualified Energy Conservation Bond.--For purposes of
this subchapter, the term `qualified energy conservation
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 one or more qualified conservation
purposes,
``(2) the bond is issued by a State or local government,
and
``(3) the issuer designates such bond for purposes of this
section.
``(b) 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 (d).
``(c) National Limitation on Amount of Bonds Designated.--
There is a national qualified energy conservation bond
limitation of $3,600,000,000.
``(d) Allocations.--
``(1) In general.--The limitation applicable under
subsection (c) shall be allocated by the Secretary among the
States in proportion to the population of the States.
``(2) Allocations to largest local governments.--
``(A) In general.--In the case of any State in which there
is a large local government, each such local government shall
be allocated a portion of such State's allocation which bears
the same ratio to the State's allocation (determined without
regard to this subparagraph) as the population of such large
local government bears to the population of such State.
``(B) Allocation of unused limitation to state.--The amount
allocated under this subsection to a large local government
may be reallocated by such local government to the State in
which such local government is located.
``(C) Large local government.--For purposes of this
section, the term `large local government' means any
municipality or county if such municipality or county has a
population of 100,000 or more.
``(3) Allocation to issuers; restriction on private
activity bonds.--Any allocation under this subsection to a
State or large local government shall be allocated by such
State or large local government to issuers within the State
in a manner that results in not less than 70 percent of the
allocation to such State or large local government being used
to designate bonds which are not private activity bonds.
``(e) Qualified Conservation Purpose.--For purposes of this
section--
``(1) In general.--The term `qualified conservation
purpose' means any of the following:
``(A) Capital expenditures incurred for purposes of--
``(i) reducing energy consumption in publicly-owned
buildings by at least 20 percent,
``(ii) implementing green community programs, or
``(iii) rural development involving the production of
electricity from renewable energy resources.
``(B) Expenditures with respect to research facilities, and
research grants, to support research in--
``(i) development of cellulosic ethanol or other nonfossil
fuels,
``(ii) technologies for the capture and sequestration of
carbon dioxide produced through the use of fossil fuels,
``(iii) increasing the efficiency of existing technologies
for producing nonfossil fuels,
``(iv) automobile battery technologies and other
technologies to reduce fossil fuel consumption in
transportation, or
``(v) technologies to reduce energy use in buildings.
``(C) Mass commuting facilities and related facilities that
reduce the consumption of energy, including expenditures to
reduce pollution from vehicles used for mass commuting.
``(D) Demonstration projects designed to promote the
commercialization of--
``(i) green building technology,
``(ii) conversion of agricultural waste into methane to be
used in producing fuel or otherwise,
``(iii) advanced battery manufacturing technologies,
``(iv) technologies to reduce peak use of electricity, or
``(v) technologies for the capture and sequestration of
carbon dioxide.
``(E) Public education campaigns to promote energy
efficiency.
``(2) Special rules for private activity bonds.--For
purposes of this section, in the case of any private activity
bond, the term `qualified conservation purposes' shall not
include any expenditure which is not a capital expenditure.
``(f) Population.--
``(1) In general.--The population of any State or local
government shall be determined for purposes of this section
as provided in section 146(j) for the calendar year which
includes the date of the enactment of this section.
``(2) Special rule for counties.--In determining the
population of any county for purposes of this section, any
population of such county which is taken into account in
determining the population of any municipality which is a
large local government shall not be taken into account in
determining the population of such county.
``(g) Application to Indian Tribal Governments.--An Indian
tribal government shall be treated for purposes of this
section in the same manner as a large local government,
except that--
``(1) an Indian tribal government shall be treated for
purposes of subsection (d) as located within a State to the
extent of so much of the population of such government as
resides within such State, and
``(2) any bond issued by an Indian tribal government shall
be treated as a qualified energy conservation bond only if
issued as part of an issue the available project proceeds of
which are used for purposes for which such Indian tribal
government could issue bonds to which section 103(a)
applies.''.
(b) Conforming Amendments.--
(1) Paragraph (1) of section 54A(d), as added by section
104, is amended to read as follows:
``(1) Qualified tax credit bond.--The term `qualified tax
credit bond' means--
``(A) a new clean renewable energy bond, or
``(B) a qualified energy conservation bond,
which is part of an issue that meets requirements of
paragraphs (2), (3), (4), and (5).''.
(2) Subparagraph (C) of section 54A(d)(2), as added by
section 104, is amended to read as follows:
``(C) Qualified purpose.--For purposes of this paragraph,
the term `qualified purpose' means--
``(i) in the case of a new clean renewable energy bond, a
purpose specified in section 54B(a)(1), and
``(ii) in the case of a qualified energy conservation bond,
a purpose specified in section 54C(a)(1).''.
(3) 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:
``Sec. 54C. Qualified energy conservation bonds.''.
(c) Effective Date.--The amendments made by this section
shall apply to obligations issued after the date of the
enactment of this Act.
SEC. 212. QUALIFIED RESIDENTIAL ENERGY EFFICIENCY ASSISTANCE
BONDS.
(a) In General.--Subpart I of part IV of subchapter A of
chapter 1 (as amended by this Act) is amended by adding at
the end the following new section:
``SEC. 54D. QUALIFIED RESIDENTIAL ENERGY EFFICIENCY
ASSISTANCE BONDS.
``(a) Qualified Residential Energy Efficiency Assistance
Bond.--For purposes of this subchapter, the term `qualified
residential energy efficiency assistance 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 1 or
[[Page H9923]]
more qualified residential energy efficiency assistance
purposes,
``(2) not less than 20 percent of the available project
proceeds of such issue are to be used for 1 or more qualified
low-income residential energy efficiency assistance purposes,
``(3) repayments of principal and applicable interest on
financing provided by the issue are used not later than the
close of the 3-month period beginning on the date the
prepayment (or complete repayment) is received to redeem
bonds which are part of the issue or to provide for 1 or more
qualified residential energy efficiency assistance purposes,
``(4) the bond is issued by a State, and
``(5) the issuer designates such bond for purposes of this
section.
``(b) 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 under subsection (d)
to such issuer.
``(c) National Limitation on Amount of Bonds Designated.--
There is a national qualified energy conservation bond
limitation of $2,400,000,000.
``(d) Limitation Allocated Among States.--The limitation
under subsection (c) shall be allocated by the Secretary
among the States in proportion to the population of the
States.
``(e) Qualified Residential Energy Efficiency Assistance
Purpose.--For purposes of this section--
``(1) In general.--The term `qualified residential energy
efficiency assistance purpose' means any grant or low-
interest loan to acquire (including reasonable installation
costs)--
``(A) any property which meets (at a minimum) the
requirements of the Energy Star program and which is to be
installed in a dwelling unit,
``(B) any property which uses wind, solar, or geothermal
energy or qualified fuel cell property (as defined in section
48(c)(1)) to generate electricity, or to heat or cool water,
for use in a dwelling unit (other than property described in
section 25D(e)(3)), and
``(C) any improvements to a dwelling unit which are made
pursuant to a plan certified by an energy efficiency expert
that such improvement will yield at least a 20 percent
reduction in total household energy consumption related to
heating, cooling, lighting, and appliances.
``(2) Dollar limitations.--
``(A) In general.--Such term shall not include any grant or
loan for improvements described in paragraph (1)(C) with
respect to any dwelling unit to the extent that such grant or
loan (when added to all other grants or loans for such
improvements) exceeds $5,000.
``(B) Increased limitation for certain principal
residences.--In the case of a dwelling unit which is used as
a principal residence (within the meaning of section 121) by
the recipient of the grant or loan referred to in
subparagraph (A)--
``(i) subparagraph (A) shall be applied by substituting
`$12,000' for `$5,000' if such grant or loan would satisfy
the requirements of paragraph (1)(A) if such paragraph were
applied by substituting `50 percent' for `20 percent', and
``(ii) in any case to which clause (i) does not apply,
subparagraph (A) shall be applied by substituting `$8,000'
for `$5,000' if such grant or loan would satisfy the
requirements of paragraph (1)(A) if such paragraph were
applied by substituting `35 percent' for `20 percent'.
``(3) Low-interest loan.--The term `low interest loan'
means any loan which charges interest at a rate which does
not exceed the applicable Federal rate in effect under
section 1288(b)(1) determined as of the issuance of the loan.
``(f) Qualified Low-Income Residential Efficiency
Assistance Purpose.--For purposes of this section--
``(1) In general.--The term `qualified low-income
residential energy efficiency assistance purpose' means any
qualified residential energy efficiency assistance purpose
with respect to a dwelling unit which is occupied (at the
time of the grant or loan) by individuals whose income is 50
percent or less of area median gross income. Rules similar to
the rules of section 142(d)(2)(B) shall apply for purposes of
this paragraph.
``(2) Restriction to grants.--Such term shall not include
any loan.
``(g) Definitions and Special Rules.--For purposes of this
section--
``(1) Applicable interest.--The term `applicable interest'
means, with respect to any loan, so much of any interest on
such loan which exceeds 1 percentage point.
``(2) Special rule relating to arbitrage.--An issue shall
not be treated as failing to meet the requirements of section
54A(d)(4)(A) by reason of any investment of available project
proceeds in 1 or more qualified residential energy efficiency
assistance purposes.
``(3) Population.--The population of any State or local
government shall be determined as provided in section 146(j)
for the calendar year which includes the date of the
enactment of this section.
``(4) Reporting.--
``(A) Reports by issuers.--Issuers of qualified residential
energy efficiency assistance bonds shall, not later than 6
months after the expenditure period (as defined in section
54A) and annually thereafter until the last such bond is
redeemed, submit reports to the Secretary regarding such
bonds, including information regarding--
``(i) the number and monetary value of loans and grants
provided and the purposes for which provided,
``(ii) the number of dwelling units the energy efficiency
of which improved as result of such loans and grants,
``(iii) the types of property described in subsection
(e)(1)(A) installed as a result of such loans and grants and
the projected energy savings with respect to such property,
``(iv) the types of property described in subsection
(e)(1)(B) installed as a result of such loans and grants and
the projected production of such property, and
``(v) the projected energy savings as a result of such
loans and grants for improvements described in subsection
(e)(1)(C).
``(B) Report to congress.--Not later than 12 months after
receipt of the first report under subparagraph (A) and
annually thereafter until the last such report is required to
be submitted, the Secretary, in consultation with the
Secretary of Energy and the Administrator of the
Environmental Protection Agency, shall submit a report to
Congress regarding the bond program under this section,
including information regarding--
``(i) the aggregate of each category of information
described in subparagraph (A) (including any independent
assessment of projected energy savings), and
``(ii) an estimate of the amount of greenhouse gas
emissions reduced as a result of such bond program.''.
(b) Conforming Amendments.--
(1) Paragraph (1) of section 54A(d), as added by section
104 and amended by section 211, is amended by striking ``or''
at the end of subparagraph (A), by inserting ``or'' at the
end of subparagraph (B), and by inserting after subparagraph
(B) the following new subparagraph:
``(C) a qualified residential energy efficiency assistance
bond,''.
(2) Subparagraph (C) of section 54A(d)(2), as added by
section 104 and amended by section 211, is amended by
striking ``and'' at the end of clause (i), by striking the
period at the end of clause (ii) and inserting ``, and'', and
by adding at the end the following new clause:
``(iii) in the case of a qualified residential energy
efficiency assistance bond, a purpose specified in section
54D(a)(1).''.
(3) The table of sections for subpart I of part IV of
subchapter A of chapter 1, as amended by this Act, is amended
by adding at the end the following new item:
``Sec. 54D. Qualified residential energy efficiency assistance
bonds.''.
(c) Effective Date.--The amendments made by this section
shall apply to obligations issued after the date of the
enactment of this Act.
SEC. 213. EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS
DEDUCTION.
Subsection (h) of section 179D (relating to termination) is
amended by striking ``December 31, 2008'' and inserting
``December 31, 2013''.
SEC. 214. MODIFICATIONS OF ENERGY EFFICIENT APPLIANCE CREDIT
FOR APPLIANCES PRODUCED AFTER 2007.
(a) In General.--Subsection (b) of section 45M (relating to
applicable amount) is amended to read as follows:
``(b) Applicable Amount.--For purposes of subsection (a)--
``(1) Dishwashers.--The applicable amount is--
``(A) $45 in the case of a dishwasher which is manufactured
in calendar year 2008 or 2009 and which uses no more than 324
kilowatt hours per year and 5.8 gallons per cycle, and
``(B) $75 in the case of a dishwasher which is manufactured
in calendar year 2008, 2009, or 2010 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).
``(2) Clothes washers.--The applicable amount is--
``(A) $75 in the case of a residential top-loading clothes
washer manufactured in calendar year 2008 which meets or
exceeds a 1.72 modified energy factor and does not exceed a
8.0 water consumption factor,
``(B) $125 in the case of a residential top-loading clothes
washer manufactured in calendar year 2008 or 2009 which meets
or exceeds a 1.8 modified energy factor and does not exceed a
7.5 water consumption factor,
``(C) $150 in the case of a residential or commercial
clothes washer manufactured in calendar year 2008, 2009 or
2010 which meets or exceeds 2.0 modified energy factor and
does not exceed a 6.0 water consumption factor, and
``(D) $250 in the case of a residential or commercial
clothes washer manufactured in calendar year 2008, 2009, or
2010 which meets or exceeds 2.2 modified energy factor and
does not exceed a 4.5 water consumption factor.
``(3) Refrigerators.--The applicable amount is--
``(A) $50 in the case of a refrigerator which is
manufactured in calendar year 2008, and consumes at least 20
percent but not more than 22.9 percent less kilowatt hours
per year than the 2001 energy conservation standards,
``(B) $75 in the case of a refrigerator which is
manufactured in calendar year 2008 or 2009, and consumes at
least 23 percent but no more than 24.9 percent less kilowatt
hours per year than the 2001 energy conservation standards,
[[Page H9924]]
``(C) $100 in the case of a refrigerator which is
manufactured in calendar year 2008, 2009 or 2010, and
consumes at least 25 percent but not more than 29.9 percent
less kilowatt hours per year than the 2001 energy
conservation standards, and
``(D) $200 in the case of a refrigerator manufactured in
calendar year 2008, 2009 or 2010 and which consumes at least
30 percent less energy than the 2001 energy conservation
standards.
``(4) Dehumidifiers.--The applicable amount is--
``(A) $15 in the case of a dehumidifier manufactured in
calendar year 2008 that has a capacity less than or equal to
45 pints per day and is 7.5 percent more efficient than the
applicable Department of Energy energy conservation standard
effective October 2012, and
``(B) $25 in the case of a dehumidifier manufactured in
calendar year 2008 that has a capacity greater than 45 pints
per day and is 7.5 percent more efficient than the applicable
Department of Energy energy conservation standard effective
October 2012.''.
(b) Eligible Production.--
(1) Similar treatment for all appliances.--Subsection (c)
of section 45M (relating to eligible production) is amended--
(A) by striking paragraph (2),
(B) by striking ``(1) In general'' and all that follows
through ``the eligible'' and inserting ``The eligible'', and
(C) by moving the text of such subsection in line with the
subsection heading and redesignating subparagraphs (A) and
(B) as paragraphs (1) and (2), respectively.
(2) Modification of base period.--Paragraph (2) of section
45M(c), as amended by paragraph (1) of this section, is
amended by striking ``3-calendar year'' and inserting ``2-
calendar year''.
(c) Types of Energy Efficient Appliances.--Subsection (d)
of section 45M (defining types of energy efficient
appliances) is amended to read as follows:
``(d) Types of Energy Efficient Appliance.--For purposes of
this section, the types of energy efficient appliances are--
``(1) dishwashers described in subsection (b)(1),
``(2) clothes washers described in subsection (b)(2),
``(3) refrigerators described in subsection (b)(3), and
``(4) dehumidifiers described in subsection (b)(4).''.
(d) Aggregate Credit Amount Allowed.--
(1) Increase in limit.--Paragraph (1) of section 45M(e)
(relating to aggregate credit amount allowed) is amended to
read as follows:
``(1) Aggregate credit amount allowed.--The aggregate
amount of credit allowed under subsection (a) with respect to
a taxpayer for any taxable year shall not exceed $75,000,000
reduced by the amount of the credit allowed under subsection
(a) to the taxpayer (or any predecessor) for all prior
taxable years beginning after December 31, 2007.''.
(2) Exception for certain refrigerator and clothes
washers.--Paragraph (2) of section 45M(e) is amended to read
as follows:
``(2) Amount allowed for certain refrigerators and clothes
washers.--Refrigerators described in subsection (b)(3)(D) and
clothes washers described in subsection (b)(2)(D) shall not
be taken into account under paragraph (1).''.
(e) Qualified Energy Efficient Appliances.--
(1) In general.--Paragraph (1) of section 45M(f) (defining
qualified energy efficient appliance) is amended to read as
follows:
``(1) Qualified energy efficient appliance.--The term
`qualified energy efficient appliance' means--
``(A) any dishwasher described in subsection (b)(1),
``(B) any clothes washer described in subsection (b)(2),
``(C) any refrigerator described in subsection (b)(3), and
``(D) any dehumidifier described in subsection (b)(4).''.
(2) Clothes washer.--Section 45M(f)(3) (defining clothes
washer) is amended by inserting ``commercial'' before
``residential'' the second place it appears.
(3) Top-loading clothes washer.--Subsection (f) of section
45M (relating to definitions) is amended by redesignating
paragraphs (4), (5), (6), and (7) as paragraphs (5), (6),
(7), and (8), respectively, and by inserting after paragraph
(3) the following new paragraph:
``(4) Top-loading clothes washer.--The term ``top-loading
clothes washer'' means a clothes washer which has the clothes
container compartment access located on the top of the
machine and which operates on a vertical axis.''.
(4) Dehumidifier.--Subsection (f) of section 45M, as
amended by paragraph (3), is amended by redesignating
paragraphs (6), (7), and (8) as paragraphs (7), (8) and (9),
respectively, and by inserting after paragraph (5) the
following new paragraph:
``(6) Dehumidifier.--The term `dehumidifier' means a self-
contained, electrically operated, and mechanically
refrigerated encased assembly consisting of--
``(A) a refrigerated surface that condenses moisture from
the atmosphere,
``(B) a refrigerating system, including an electric motor,
``(C) an air-circulating fan, and
``(D) means for collecting or disposing of condensate.''.
(5) Replacement of energy factor.--Section 45M(f)(7), as
amended by paragraph (4), is amended to read as follows:
``(7) Modified energy factor.--The term `modified energy
factor' means the modified energy factor established by the
Department of Energy for compliance with the Federal energy
conservation standard.''.
(6) Gallons per cycle; water consumption factor.--Section
45M(f) (relating to definitions) is amended by adding at the
end the following:
``(10) Gallons per cycle.--The term `gallons per cycle'
means, with respect to a dishwasher, the amount of water,
expressed in gallons, required to complete a normal cycle of
a dishwasher.
``(11) Water consumption factor.--The term `water
consumption factor' means, with respect to a clothes washer,
the quotient of the total weighted per-cycle water
consumption divided by the cubic foot (or liter) capacity of
the clothes washer.''.
(f) Effective Date.--The amendments made by this section
shall apply to appliances produced after December 31, 2007.
SEC. 215. FIVE-YEAR APPLICABLE RECOVERY PERIOD FOR
DEPRECIATION OF QUALIFIED ENERGY MANAGEMENT
DEVICES.
(a) In General.--Section 168(e)(3)(B) (relating to 5-year
property) is amended by striking ``and'' at the end of clause
(v), by striking the period at the end of clause (vi) and
inserting ``, and'', and by inserting after clause (vi) the
following new clause:
``(vii) any qualified energy management device.''.
(b) Definition of Qualified Energy Management Device.--
Section 168(i) (relating to definitions and special rules) is
amended by inserting at the end the following new paragraph:
``(18) Qualified energy management device.--
``(A) In general.--The term `qualified energy management
device' means any energy management device which is installed
on real property of a customer of the taxpayer and is placed
in service by a taxpayer who--
``(i) is a supplier of electric energy or a provider of
electric energy services, and
``(ii) provides all commercial and residential customers of
such supplier or provider with net metering upon the request
of such customer.
``(B) Energy management device.--For purposes of
subparagraph (A), the term `energy management device' means
any time-based meter and related communication equipment
which is capable of being used by the taxpayer as part of a
system that--
``(i) measures and records electricity usage data on a
time-differentiated basis in at least 24 separate time
segments per day,
``(ii) provides for the exchange of information between
supplier or provider and the customer's energy management
device in support of time-based rates or other forms of
demand response, and
``(iii) provides data to such supplier or provider so that
the supplier or provider can provide energy usage information
to customers electronically.
``(C) Net metering.--For purposes of subparagraph (A), the
term `net metering' means allowing customers a credit for
providing electricity to the supplier or provider.''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
the enactment of this Act.
TITLE III--REVENUE PROVISIONS
Subtitle A--Denial of Oil and Gas Tax Benefits
SEC. 301. DENIAL OF DEDUCTION FOR INCOME ATTRIBUTABLE TO
DOMESTIC PRODUCTION OF OIL, NATURAL GAS, OR
PRIMARY PRODUCTS THEREOF.
(a) In General.--Subparagraph (B) of section 199(c)(4)
(relating to exceptions) is amended by striking ``or'' at the
end of clause (ii), by striking the period at the end of
clause (iii) and inserting ``, or'', and by inserting after
clause (iii) the following new clause:
``(iv) the sale, exchange, or other disposition of oil,
natural gas, or any primary product thereof.''.
(b) Primary Product.--Section 199(c)(4)(B) is amended by
adding at the end the following flush sentence:
``For purposes of clause (iv), the term `primary product' has
the same meaning as when used in section 927(a)(2)(C), as in
effect before its repeal.''.
(c) Conforming Amendments.--Section 199(c)(4) is amended--
(1) in subparagraph (A)(i)(III) by striking ``electricity,
natural gas,'' and inserting ``electricity'', and
(2) in subparagraph (B)(ii) by striking ``electricity,
natural gas,'' and inserting ``electricity''.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2007.
SEC. 302. 7-YEAR AMORTIZATION OF GEOLOGICAL AND GEOPHYSICAL
EXPENDITURES FOR CERTAIN MAJOR INTEGRATED OIL
COMPANIES.
(a) In General.--Subparagraph (A) of section 167(h)(5)
(relating to special rule for major integrated oil companies)
is amended by striking ``5-year'' and inserting ``7-year''.
(b) Effective Date.--The amendment made by this section
shall apply to amounts paid or incurred after the date of the
enactment of this Act.
[[Page H9925]]
SEC. 303. CLARIFICATION OF DETERMINATION OF FOREIGN OIL AND
GAS EXTRACTION INCOME.
(a) In General.--Paragraph (1) of section 907(c) is amended
by redesignating subparagraph (B) as subparagraph (C), by
striking ``or'' at the end of subparagraph (A), and by
inserting after subparagraph (A) the following new
subparagraph:
``(B) so much of any transportation of such minerals as
occurs before the fair market value event, or''.
(b) Fair Market Value Event.--Subsection (c) of section 907
is amended by adding at the end the following new paragraph:
``(6) Fair market value event.--For purposes of this
section, the term `fair market value event' means, with
respect to any mineral, the first point in time at which such
mineral--
``(A) has a fair market value which can be determined on
the basis of a transfer, which is an arm's length
transaction, of such mineral from the taxpayer to a person
who is not related (within the meaning of section 482) to
such taxpayer, or
``(B) is at a location at which the fair market value is
readily ascertainable by reason of transactions among
unrelated third parties with respect to the same mineral
(taking into account source, location, quality, and chemical
composition).''.
(c) Special Rule for Certain Petroleum Taxes.--Subsection
(c) of section 907, as amended by subsection (b), is amended
to by adding at the end the following new paragraph:
``(7) Oil and gas taxes.--In the case of any tax imposed by
a foreign country which is limited in its application to
taxpayers engaged in oil or gas activities--
``(A) the term `oil and gas extraction taxes' shall include
such tax,
``(B) the term `foreign oil and gas extraction income'
shall include any taxable income which is taken into account
in determining such tax (or is directly attributable to the
activity to which such tax relates), and
``(C) the term `foreign oil related income' shall not
include any taxable income which is treated as foreign oil
and gas extraction income under subparagraph (B).''.
(d) Conforming Amendments.--
(1) Subparagraph (C) of section 907(c)(1), as redesignated
by this section, is amended by inserting ``or used by the
taxpayer in the activity described in subparagraph (B)''
before the period at the end.
(2) Subparagraph (B) of section 907(c)(2) is amended to
read as follows:
``(B) so much of the transportation of such minerals or
primary products as is not taken into account under paragraph
(1)(B),''.
(e) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
Subtitle B--Clarification of Eligibility for Certain Fuel Credits
SEC. 311. CLARIFICATION OF ELIGIBILITY FOR RENEWABLE DIESEL
CREDIT.
(a) Coproduction With Petroleum Feedstock.--
(1) In general.--Paragraph (3) of section 40A(f) (defining
renewable diesel) is amended by adding at the end the
following flush sentence:
``Such term does not include any fuel derived from
coprocessing biomass with a feedstock which is not biomass.
For purposes of this paragraph, the term `biomass' has the
meaning given such term by section 45K(c)(3).''.
(2) Conforming amendment.--Paragraph (3) of section 40A(f)
is amended by striking ``(as defined in section 45K(c)(3))''.
(b) Clarification of Eligibility for Alternative Fuel
Credit.--
(1) In general.--Subparagraph (F) of section 6426(d)(2) is
amended by striking ``hydrocarbons'' and inserting ``fuel''.
(2) Conforming amendment.--Section 6426 is amended by
adding at the end the following new subsection:
``(h) Denial of Double Benefit.--No credit shall be
determined under subsection (d) or (e) with respect to any
fuel with respect to which credit may be determined under
subsection (b) or (c) or under section 40 or 40A.''.
(c) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to fuel produced,
and sold or used, after June 30, 2007.
(2) Clarification of eligibility for alternative fuel
credit.--The amendment made by subsection (b) shall take
effect as if included in section 11113 of the Safe,
Accountable, Flexible, Efficient Transportation Equity Act: A
Legacy for Users.
SEC. 312. CLARIFICATION THAT CREDITS FOR FUEL ARE DESIGNED TO
PROVIDE AN INCENTIVE FOR UNITED STATES
PRODUCTION.
(a) Biodiesel Fuels Credit.--Paragraph (5) of section
40A(d), as added by subsection (c), is amended to read as
follows:
``(5) Limitation to biodiesel with connection to the united
states.--No credit shall be determined under this section
with respect to any biodiesel unless--
``(A) such biodiesel is produced in the United States for
use as a fuel in the United States, and
``(B) the taxpayer obtains a certification (in such form
and manner as prescribed by the Secretary) from the producer
of the biodiesel which identifies the product produced and
the location of such production.
For purposes of this paragraph, the term `United States'
includes any possession of the United States.''.
(b) Excise Tax Credit.--Paragraph (2) of section 6426(h),
as added by subsection (c), is amended to read as follows:
``(2) Biodiesel and alternative fuels.--No credit shall be
determined under this section with respect to any biodiesel
or alternative fuel unless--
``(A) such biodiesel or alternative fuel is produced in the
United States for use as a fuel in the United States, and
``(B) the taxpayer obtains a certification (in such form
and manner as prescribed by the Secretary) from the producer
of such biodiesel or alternative fuel which identifies the
product produced and the location of such production.''.
(c) Provisions Clarifying Treatment of Fuels With No Nexus
to the United States.--
(1) Alcohol fuels credit.--Subsection (d) of section 40 is
amended by adding at the end the following new paragraph:
``(6) Limitation to alcohol with connection to the united
states.--No credit shall be determined under this section
with respect to any alcohol which is produced outside the
United States for use as a fuel outside the United States.
For purposes of this paragraph, the term `United States'
includes any possession of the United States''.
(2) Biodiesel fuels credit.--Subsection (d) of section 40A
is amended by adding at the end the following new paragraph:
``(5) Limitation to biodiesel with connection to the united
states.--No credit shall be determined under this section
with respect to any biodiesel which is produced outside the
United States for use as a fuel outside the United States.
For purposes of this paragraph, the term `United States'
includes any possession of the United States''.
(3) Excise tax credit.--
(A) In general.--Section 6426 is amended by adding at the
end the following new subsection:
``(h) Limitation to Fuels With Connection to the United
States.--
``(1) Alcohol.--No credit shall be determined under this
section with respect to any alcohol which is produced outside
the United States for use as a fuel outside the United
States.
``(2) Biodiesel and alternative fuels.--No credit shall be
determined under this section with respect to any biodiesel
or alternative fuel which is produced outside the United
States for use as a fuel outside the United States.
For purposes of this subsection, the term `United States'
includes any possession of the United States.''.
(B) Conforming amendment.--Subsection (e) of section 6427
is amended by redesignating paragraph (5) as paragraph (6)
and by inserting after paragraph (4) the following new
paragraph:
``(5) Limitation to fuels with connection to the united
states.--No amount shall be payable under paragraph (1) or
(2) with respect to any mixture or alternative fuel if credit
is not allowed with respect to such mixture or alternative
fuel by reason of section 6426(h).''.
(d) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to fuel produced,
and sold or used, after the date of the enactment of this
Act.
(2) Provisions clarifying treatment of fuels with no nexus
to the united states.--
(A) In general.--Except as otherwise provided in this
paragraph, the amendments made by subsection (c) shall take
effect as if included in section 301 of the American Jobs
Creation Act of 2004.
(B) Alternative fuel credits.--So much of the amendments
made by subsection (c) as relate to the alternative fuel
credit or the alternative fuel mixture credit shall take
effect as if included in section 11113 of the Safe,
Accountable, Flexible, Efficient Transportation Equity Act: A
Legacy for Users.
(C) Renewable diesel.--So much of the amendments made by
subsection (c) as relate to renewable diesel shall take
effect as if included in section 1346 of the Energy Policy
Act of 2005.
TITLE IV--OTHER PROVISIONS
Subtitle A--Studies
SEC. 401. CARBON AUDIT OF THE TAX CODE.
(a) Study.--The Secretary of the Treasury shall enter into
an agreement with the National Academy of Sciences to
undertake a comprehensive review of the Internal Revenue Code
of 1986 to identify the types of and specific tax provisions
that have the largest effects on carbon and other greenhouse
gas emissions and to estimate the magnitude of those effects.
(b) Report.--Not later than 2 years after the date of
enactment of this Act, the National Academy of Sciences shall
submit to Congress a report containing the results of study
authorized under this section.
(c) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $1,500,000 for
the period of fiscal years 2008 and 2009.
SEC. 402. COMPREHENSIVE STUDY OF BIOFUELS.
(a) Study.--The Secretary of the Treasury, in consultation
with the Secretary of Agriculture, the Secretary of Energy,
and the Administrator of the Environmental Protection Agency,
shall enter into an agreement with the National Academy of
Sciences to produce an analysis of current scientific
findings to determine--
(1) current biofuels production, as well as projections for
future production,
[[Page H9926]]
(2) the maximum amount of biofuels production capable on
United States farmland,
(3) the domestic effects of a dramatic increase in biofuels
production, for example--
(A) the price of fuel,
(B) the price of land in rural and suburban communities,
(C) crop acreage and other land use,
(D) the environment, due to changes in crop acreage,
fertilizer use, runoff, water use, emissions from vehicles
utilizing biofuels, and other factors,
(E) the price of feed,
(F) the selling price of grain crops,
(G) exports and imports of grains,
(H) taxpayers, through cost or savings to commodity crop
payments, and
(I) the expansion of refinery capacity,
(4) the ability to convert corn ethanol plants for other
uses, such as cellulosic ethanol or biodiesel,
(5) a comparative analysis of corn ethanol versus other
biofuels and renewable energy sources, considering cost,
energy output, and ease of implementation, and
(6) the need for additional scientific inquiry, and
specific areas of interest for future research.
(b) Report.--The National Academy of Sciences shall submit
an initial report of the findings of the report required
under subsection (a) to the Congress not later than 3 months
after the date of the enactment of this Act, and a final
report not later than 6 months after such date of enactment.
Subtitle B--Application of Certain Labor Standards on Projects Financed
Under Tax Credit Bonds
SEC. 411. APPLICATION OF CERTAIN LABOR STANDARDS ON PROJECTS
FINANCED UNDER TAX CREDIT BONDS.
Subchapter IV of chapter 31 of title 40, United States
Code, shall apply to projects financed with the proceeds of
any tax credit bond (as defined in section 54A of the
Internal Revenue Code of 1986).
The SPEAKER pro tempore (Mr. Weiner). Pursuant to House Resolution
615, the amendment in the nature of a substitute printed in the bill is
adopted and the bill, as amended, is considered read.
The text of the bill, as amended, is as follows:
H.R. 2776
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF
CONTENTS.
(a) Short Title.--This Act may be cited as the ``Renewable
Energy and Energy Conservation Tax Act of 2007''.
(b) Amendment of 1986 Code.--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) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; amendment of 1986 Code; table of contents.
TITLE I--PRODUCTION INCENTIVES
Sec. 101. Extension and modification of renewable energy credit.
Sec. 102. Production credit for electricity produced from marine
renewables.
Sec. 103. Extension and modification of energy credit.
Sec. 104. New clean renewable energy bonds.
Sec. 105. Extension and modification of special rule to implement FERC
and State electric restructuring policy.
Sec. 106. Repeal of dollar limitation and allowance against alternative
minimum tax for residential solar and fuel cell property
credit.
TITLE II--CONSERVATION
Subtitle A--Transportation
Sec. 201. Credit for plug-in hybrid vehicles.
Sec. 202. Extension and modification of alternative fuel vehicle
refueling property credit.
Sec. 203. Extension and modification of credits for biodiesel and
renewable diesel.
Sec. 204. Credit for production of cellulosic alcohol.
Sec. 205. Extension of transportation fringe benefit to bicycle
commuters.
Sec. 206. Modification of limitation on automobile depreciation.
Sec. 207. Restructuring of New York Liberty Zone tax credits.
Subtitle B--Other Conservation Provisions
Sec. 211. Qualified energy conservation bonds.
Sec. 212. Qualified residential energy efficiency assistance bonds.
Sec. 213. Extension of energy efficient commercial buildings deduction.
Sec. 214. Modifications of energy efficient appliance credit for
appliances produced after 2007.
Sec. 215. Five-year applicable recovery period for depreciation of
qualified energy management devices.
TITLE III--REVENUE PROVISIONS
Subtitle A--Denial of Oil and Gas Tax Benefits
Sec. 301. Denial of deduction for income attributable to domestic
production of oil, natural gas, or primary products
thereof.
Sec. 302. 7-year amortization of geological and geophysical
expenditures for certain major integrated oil companies.
Sec. 303. Clarification of determination of foreign oil and gas
extraction income.
Subtitle B--Clarification of Eligibility for Certain Fuel Credits
Sec. 311. Clarification of eligibility for renewable diesel credit.
Sec. 312. Clarification that credits for fuel are designed to provide
an incentive for United States production.
TITLE IV--OTHER PROVISIONS
Subtitle A--Studies
Sec. 401. Carbon audit of the tax code.
Sec. 402. Comprehensive study of biofuels.
Subtitle B--Application of Certain Labor Standards on Projects Financed
Under Tax Credit Bonds
Sec. 411. Application of certain labor standards on projects financed
under tax credit bonds.
TITLE I--PRODUCTION INCENTIVES
SEC. 101. EXTENSION AND MODIFICATION OF RENEWABLE ENERGY
CREDIT.
(a) Extension of Credit.--Each of the following provisions
of section 45(d) (relating to qualified facilities) is
amended by striking ``January 1, 2009'' and inserting
``January 1, 2013'':
(1) Paragraph (1).
(2) Clauses (i) and (ii) of paragraph (2)(A).
(3) Clauses (i)(I) and (ii) of paragraph (3)(A).
(4) Paragraph (4).
(5) Paragraph (5).
(6) Paragraph (6).
(7) Paragraph (7).
(8) Subparagraphs (A) and (B) of paragraph (9).
(b) Modification of Credit Phaseout.--
(1) Repeal of phaseout.--Subsection (b) of section 45 is
amended--
(A) by striking paragraph (1), and
(B) by striking ``the 8 cent amount in paragraph (1),'' in
paragraph (2) thereof.
(2) Limitation based on investment in facility.--Subsection
(b) of section 45 is amended by inserting before paragraph
(2) the following new paragraph:
``(1) Limitation based on investment in facility.--
``(A) In general.--In the case of any qualified facility
originally placed in service after December 31, 2008, the
amount of the credit determined under subsection (a) for any
taxable year with respect to electricity produced at such
facility shall not exceed the product of--
``(i) the applicable percentage with respect to such
facility, multiplied by
``(ii) the eligible basis of such facility.
``(B) Carryforward of unused limitation and excess
credit.--
``(i) Unused limitation.--If the limitation imposed under
subparagraph (A) with respect to any facility for any taxable
year exceeds the credit determined under subsection (a)
(determined without regard to this paragraph) with respect to
such facility for such taxable year, the limitation imposed
under subparagraph (A) with respect to such facility for the
succeeding taxable year shall be increased by the amount of
such excess.
``(ii) Excess credit.--If the credit determined under
subsection (a) (determined without regard to this paragraph)
with respect to any facility for any taxable year exceeds the
limitation imposed under subparagraph (A) with respect to
such facility for such taxable year, the credit determined
under subsection (a) with respect to such facility for the
succeeding taxable year (determined before the application of
subparagraph (A) for such succeeding taxable year) shall be
increased by the amount of such excess. With respect to any
facility, no amount may carried forward under this clause to
any taxable year beginning after the 10-year period described
in subsection (a)(2)(A)(ii) with respect to such facility.
``(C) Applicable percentage.--For purposes of this
paragraph--
``(i) In general.--The term `applicable percentage' means,
with respect to any facility, the appropriate percentage
prescribed by the Secretary for the month in which such
facility is originally placed in service.
``(ii) Method of prescribing percentages.--The percentages
prescribed by the Secretary for any month under clause (i)
shall be percentages which yield over a 10-year period
amounts of limitation under subparagraph (A) which have a
present value equal to 35 percent of the eligible basis of
the facility.
``(iii) Method of discounting.--The present value under
clause (ii) shall be determined--
``(I) as of the last day of the 1st year of the 10-year
period referred to in clause (ii),
``(II) by using a discount rate equal to the average annual
interest rate of tax-exempt obligations having a term of 10
years or more which are issued during the month preceding the
month for which the percentage is being prescribed, and
``(III) by taking into account the limitation under
subparagraph (A) for any year on the last day of such year.
``(D) Eligible basis.--For purposes of this paragraph, the
term `eligible basis' means, with respect to any facility,
the basis of such facility determined as of the time that
such facility is originally placed in service.
``(E) Special rule for first and last year of credit
period.--In the case of any taxable year any portion of which
is not within the 10-year period described in subsection
(a)(2)(A)(ii) with respect to any facility, the amount of the
limitation under subparagraph (A) with respect to such
facility shall be reduced by an amount which bears the same
ratio to the amount of such limitation (determined without
regard to this subparagraph) as such portion of the taxable
year which is not within such period bears to the entire
taxable year.''.
(c) Effective Date.--
[[Page H9927]]
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to property
originally placed in service after December 31, 2008.
(2) Repeal of credit phaseout.--The amendments made by
subsection (b)(1) shall apply to taxable years ending after
December 31, 2008.
SEC. 102. PRODUCTION CREDIT FOR ELECTRICITY PRODUCED FROM
MARINE RENEWABLES.
(a) In General.--Paragraph (1) of section 45(c) (relating
to resources) is amended by striking ``and'' at the end of
subparagraph (G), by striking the period at the end of
subparagraph (H) and inserting ``, and'', and by adding at
the end the following new subparagraph:
``(I) marine and hydrokinetic renewable energy.''.
(b) Marine Renewables.--Subsection (c) of section 45 is
amended by adding at the end the following new paragraph:
``(10) Marine and hydrokinetic renewable energy.--
``(A) In general.--The term `marine and hydrokinetic
renewable energy' means energy derived from--
``(i) waves, tides, and currents in oceans, estuaries, and
tidal areas,
``(ii) free flowing water in rivers, lakes, and streams,
``(iii) free flowing water in an irrigation system, canal,
or other man-made channel, including projects that utilize
nonmechanical structures to accelerate the flow of water for
electric power production purposes, or
``(iv) differentials in ocean temperature (ocean thermal
energy conversion).
``(B) Exceptions.--Such term shall not include any energy
which is derived from any source which utilizes a dam,
diversionary structure (except as provided in subparagraph
(A)(iii)), or impoundment for electric power production
purposes.''.
(c) Definition of Facility.--Subsection (d) of section 45
is amended by adding at the end the following new paragraph:
``(11) Marine and hydrokinetic renewable energy
facilities.--In the case of a facility producing electricity
from marine and hydrokinetic renewable energy, the term
`qualified facility' means any facility owned by the
taxpayer--
``(A) which has a nameplate capacity rating of at least 150
kilowatts, and
``(B) which is originally placed in service on or after the
date of the enactment of this paragraph and before January 1,
2013.''.
(d) Credit Rate.--Subparagraph (A) of section 45(b)(4) is
amended by striking ``or (9)'' and inserting ``(9), or
(11)''.
(e) Coordination With Small Irrigation Power.--Paragraph
(5) of section 45(d), as amended by this Act, is amended by
striking ``January 1, 2013'' and inserting ``the date of the
enactment of paragraph (11)''.
(f) Effective Date.--The amendments made by this section
shall apply to electricity produced and sold after the date
of the enactment of this Act, in taxable years ending after
such date.
SEC. 103. EXTENSION AND MODIFICATION OF ENERGY CREDIT.
(a) Extension of Credit.--
(1) Solar energy property.--Paragraphs (2)(A)(i)(II) and
(3)(A)(ii) of section 48(a) (relating to energy credit) are
each amended by striking ``January 1, 2009'' and inserting
``January 1, 2017''.
(2) Fuel cell property.--Subparagraph (E) of section
48(c)(1) (relating to qualified fuel cell property) is
amended by striking ``December 31, 2008'' and inserting
``December 31, 2016''.
(b) Allowance of Energy Credit Against Alternative Minimum
Tax.--Subparagraph (B) of section 38(c)(4) (relating to
specified credits) is amended by striking ``and'' at the end
of clause (iii), by striking the period at the end of clause
(iv) and inserting ``, and'', and by adding at the end the
following new clause:
``(v) the credit determined under section 46 to the extent
that such credit is attributable to the energy credit
determined under section 48.''.
(c) Increase of Credit Limitation for Fuel Cell Property.--
Subparagraph (B) of section 48(c)(1) is amended by striking
``$500'' and inserting ``$1,500''.
(d) Public Electric Utility Property Taken Into Account.--
(1) In general.--Paragraph (3) of section 48(a) is amended
by striking the second sentence thereof.
(2) Conforming amendments.--
(A) Paragraph (1) of section 48(c) is amended by striking
subparagraph (D) and redesignating subparagraph (E) as
subparagraph (D).
(B) Paragraph (2) of section 48(c) is amended by striking
subparagraph (D) and redesignating subparagraph (E) as
subparagraph (D).
(e) Clerical Amendments.--Paragraphs (1)(B) and (2)(B) of
section 48(c) are each amended by striking ``paragraph (1)''
and inserting ``subsection (a)''.
(f) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall take
effect on the date of the enactment of this Act.
(2) Allowance against alternative minimum tax.--The
amendments made by subsection (b) shall apply to credits
determined under section 46 of the Internal Revenue Code of
1986 in taxable years beginning after the date of the
enactment of this Act and to carrybacks of such credits.
(3) Increase in limitation for fuel cell property.--The
amendment made by subsection (c) shall apply to periods after
the date of the enactment of this Act, 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).
(4) Public electric utility property.--The amendments made
by subsection (d) shall apply to periods after June 20, 2007,
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).
SEC. 104. NEW CLEAN RENEWABLE ENERGY BONDS.
(a) In General.--Part IV of subchapter A of chapter 1
(relating to credits against tax) is amended by adding at the
end the following new subpart:
``Subpart I--Qualified Tax Credit Bonds
``Sec. 54A. Credit to holders of qualified tax credit bonds.
``Sec. 54B. New clean renewable energy bonds.
``SEC. 54A. CREDIT TO HOLDERS OF QUALIFIED TAX CREDIT BONDS.
``(a) Allowance of Credit.--If a taxpayer holds a qualified
tax credit bond on one or more credit allowance dates of the
bond during any taxable year, there shall be allowed as a
credit against the tax imposed by this chapter for the
taxable year an amount equal to the sum of the credits
determined under subsection (b) with respect to such dates.
``(b) Amount of Credit.--
``(1) In general.--The amount of the credit determined
under this subsection with respect to any credit allowance
date for a qualified tax credit bond is 25 percent of the
annual credit determined with respect to such bond.
``(2) Annual credit.--The annual credit determined with
respect to any qualified tax credit bond is the product of--
``(A) the applicable credit rate, multiplied by
``(B) the outstanding face amount of the bond.
``(3) Applicable credit rate.--For purposes of paragraph
(2), the applicable credit rate is the rate which the
Secretary estimates will permit the issuance of qualified tax
credit bonds with a specified maturity or redemption date
without discount and without interest cost to the qualified
issuer. The applicable credit rate with respect to any
qualified tax credit bond shall be determined as of the first
day on which there is a binding, written contract for the
sale or exchange of the bond.
``(4) Special rule for issuance and redemption.--In the
case of a bond which is issued during the 3-month period
ending on a credit allowance date, the amount of the credit
determined under this subsection with respect to such credit
allowance date shall be a ratable portion of the credit
otherwise determined based on the portion of the 3-month
period during which the bond is outstanding. A similar rule
shall apply when the bond is redeemed or matures.
``(c) Limitation Based on Amount of Tax.--
``(1) In general.--The credit allowed under subsection (a)
for any taxable year shall not exceed the excess of--
``(A) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(B) the sum of the credits allowable under this part
(other than subpart C and this subpart).
``(2) Carryover of unused credit.--If the credit allowable
under subsection (a) exceeds the limitation imposed by
paragraph (1) for such taxable year, such excess shall be
carried to the succeeding taxable year and added to the
credit allowable under subsection (a) for such taxable year
(determined before the application of paragraph (1) for such
succeeding taxable year).
``(d) Qualified Tax Credit Bond.--For purposes of this
section--
``(1) Qualified tax credit bond.--The term `qualified tax
credit bond' means a new clean renewable energy bond which is
part of an issue that meets the requirements of paragraphs
(2), (3), (4), (5), and (6).
``(2) Special rules relating to expenditures.--
``(A) In general.--An issue shall be treated as meeting the
requirements of this paragraph if, as of the date of
issuance, the issuer reasonably expects--
``(i) 100 percent or more of the available project proceeds
to be spent for 1 or more qualified purposes within the 3-
year period beginning on such date of issuance, and
``(ii) 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 such date of
issuance.
``(B) Failure to spend required amount of bond proceeds
within 3 years.--
``(i) In general.--To the extent that less than 100 percent
of the available project proceeds of the issue are expended
by the close of the expenditure period for 1 or more
qualified purposes, 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.
``(ii) Expenditure period.--For purposes of this subpart,
the term `expenditure period' means, with respect to any
issue, the 3-year period beginning on the date of issuance.
Such term shall include any extension of such period under
clause (iii).
``(iii) Extension of period.--Upon submission of a request
prior to the expiration of the expenditure period (determined
without regard to any extension under this clause), the
Secretary may extend such period if the issuer establishes
that the failure to expend the proceeds within the original
expenditure period is due to reasonable cause and the
expenditures for qualified purposes will continue to proceed
with due diligence.
[[Page H9928]]
``(C) Qualified purpose.--For purposes of this paragraph,
the term `qualified purpose' means a purpose specified in
section 54B(a)(1).
``(D) Reimbursement.--For purposes of this subtitle,
available project proceeds of an issue shall be treated as
spent for a qualified purpose if such proceeds are used to
reimburse the issuer for amounts paid for a qualified purpose
after the date that the Secretary makes an allocation of bond
limitation with respect to such issue, but only if--
``(i) prior to the payment of the original expenditure, the
issuer declared its intent to reimburse such expenditure with
the proceeds of a qualified tax credit bond,
``(ii) not later than 60 days after payment of the original
expenditure, the issuer adopts an official intent to
reimburse the original expenditure with such proceeds, and
``(iii) the reimbursement is made not later than 18 months
after the date the original expenditure is paid.
``(3) Reporting.--An issue shall be treated as meeting the
requirements of this paragraph if the issuer of qualified tax
credit bonds submits reports similar to the reports required
under section 149(e).
``(4) Special rules relating to arbitrage.--
``(A) In general.--An issue shall be treated as meeting the
requirements of this paragraph if the issuer satisfies the
requirements of section 148 with respect to the proceeds of
the issue.
``(B) Special rule for investments during expenditure
period.--An issue shall not be treated as failing to meet the
requirements of subparagraph (A) by reason of any investment
of available project proceeds during the expenditure period.
``(C) Special rule for reserve funds.--An issue shall not
be treated as failing to meet the requirements of
subparagraph (A) by reason of any fund which is expected to
be used to repay such issue if--
``(i) such fund is funded at a rate not more rapid than
equal annual installments,
``(ii) such fund is funded in a manner that such fund will
not exceed the amount necessary to repay the issue if
invested at the maximum rate permitted under clause (iii),
and
``(iii) the yield on such fund is not greater than the
discount rate determined under paragraph (5)(B) with respect
to the issue.
``(5) Maturity limitation.--
``(A) In general.--An issue shall not be treated as meeting
the requirements of this paragraph if the maturity of any
bond which is part of such issue exceeds the maximum term
determined by the Secretary under subparagraph (B).
``(B) Maximum term.--During each calendar month, the
Secretary shall determine the maximum term permitted under
this paragraph for bonds issued during the following calendar
month. Such maximum term shall be the term which the
Secretary estimates will result in the present value of the
obligation to repay the principal on the bond being equal to
50 percent of the face amount of such bond. Such present
value shall be determined using as a discount rate the
average annual interest rate of tax-exempt obligations having
a term of 10 years or more which are issued during the month.
If the term as so determined is not a multiple of a whole
year, such term shall be rounded to the next highest whole
year.
``(6) Prohibition on financial conflicts of interest.--An
issue shall be treated as meeting the requirements of this
paragraph if the issuer certifies that--
``(A) applicable State and local law requirements governing
conflicts of interest are satisfied with respect to such
issue, and
``(B) if the Secretary prescribes additional conflicts of
interest rules governing the appropriate Members of Congress,
Federal, State, and local officials, and their spouses, such
additional rules are satisfied with respect to such issue.
``(e) Other Definitions.--For purposes of this subchapter--
``(1) Credit allowance date.--The term `credit allowance
date' means--
``(A) March 15,
``(B) June 15,
``(C) September 15, and
``(D) December 15.
Such term includes the last day on which the bond is
outstanding.
``(2) Bond.--The term `bond' includes any obligation.
``(3) State.--The term `State' includes the District of
Columbia and any possession of the United States.
``(4) Available project proceeds.--The term `available
project proceeds' means--
``(A) the excess of--
``(i) the proceeds from the sale of an issue, over
``(ii) the issuance costs financed by the issue (to the
extent that such costs do not exceed 2 percent of such
proceeds), and
``(B) the proceeds from any investment of the excess
described in subparagraph (A).
``(f) Credit Treated as Interest.--For purposes of this
subtitle, the credit determined under subsection (a) shall be
treated as interest which is includible in gross income.
``(g) S Corporations and Partnerships.--In the case of a
tax credit bond held by an S corporation or partnership, the
allocation of the credit allowed by this section to the
shareholders of such corporation or partners of such
partnership shall be treated as a distribution.
``(h) Bonds Held by Regulated Investment Companies and Real
Estate Investment Trusts.--If any qualified tax credit bond
is held by a regulated investment company or a real estate
investment trust, the credit determined under subsection (a)
shall be allowed to shareholders of such company or
beneficiaries of such trust (and any gross income included
under subsection (f) with respect to such credit shall be
treated as distributed to such shareholders or beneficiaries)
under procedures prescribed by the Secretary.
``(i) Credits May Be Stripped.--Under regulations
prescribed by the Secretary--
``(1) In general.--There may be a separation (including at
issuance) of the ownership of a qualified tax credit bond and
the entitlement to the credit under this section with respect
to such bond. In case of any such separation, the credit
under this section shall be allowed to the person who on the
credit allowance date holds the instrument evidencing the
entitlement to the credit and not to the holder of the bond.
``(2) Certain rules to apply.--In the case of a separation
described in paragraph (1), the rules of section 1286 shall
apply to the qualified tax credit bond as if it were a
stripped bond and to the credit under this section as if it
were a stripped coupon.
``SEC. 54B. NEW CLEAN RENEWABLE ENERGY BONDS.
``(a) New Clean Renewable Energy Bond.--For purposes of
this subpart, the term `new clean renewable energy 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
public power providers or cooperative electric companies for
one or more qualified renewable energy facilities,
``(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.--The annual credit determined
under section 54A(b) with respect to any new clean renewable
energy bond shall be 70 percent of the amount so determined
without regard to this subsection.
``(c) Limitation on Amount of Bonds Designated.--
``(1) In general.--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.
``(2) National limitation on amount of bonds designated.--
There is a national new clean renewable energy bond
limitation of $2,000,000,000 which shall be allocated by the
Secretary as provided in paragraph (3), except that--
``(A) not more than 60 percent thereof may be allocated to
qualified projects of public power providers, and
``(B) not more than 40 percent thereof may be allocated to
qualified projects of cooperative electric companies.
``(3) Method of allocation.--
``(A) Allocation among public power providers.--After the
Secretary determines the qualified projects of public power
providers which are appropriate for receiving an allocation
of the national new clean renewable energy bond limitation,
the Secretary shall, to the maximum extent practicable, make
allocations among such projects in such manner that the
amount allocated to each such project bears the same ratio to
the cost of such project as the limitation under subparagraph
(2)(A) bears to the cost of all such projects.
``(B) Allocation among cooperative electric companies.--The
Secretary shall make allocations of the amount of the
national new clean renewable energy bond limitation described
in paragraph (2)(B) among qualified projects of cooperative
electric companies in such manner as the Secretary determines
appropriate.
``(d) Definitions.--For purposes of this section--
``(1) Qualified renewable energy facility.--The term
`qualified renewable energy facility' means a qualified
facility (as determined under section 45(d) without regard to
paragraphs (8) and (10) thereof and to any placed in service
date) owned by a public power provider or a cooperative
electric company.
``(2) Public power provider.--The term `public power
provider' means a State utility with a service obligation, as
such terms are defined in section 217 of the Federal Power
Act (as in effect on the date of the enactment of this
paragraph).
``(3) Cooperative electric company.--The term `cooperative
electric company' means a mutual or cooperative electric
company described in section 501(c)(12) or section
1381(a)(2)(C).
``(4) Clean renewable energy bond lender.--The term `clean
renewable energy bond lender' means a lender which is a
cooperative which is owned by, or has outstanding loans to,
100 or more cooperative electric companies and is in
existence on February 1, 2002, and shall include any
affiliated entity which is controlled by such lender.
``(5) Qualified issuer.--The term `qualified issuer' means
a public power provider, a cooperative electric company, a
clean renewable energy bond lender, or a not-for-profit
electric utility which has received a loan or loan guarantee
under the Rural Electrification Act.''.
(b) Reporting.--Subsection (d) of section 6049 (relating to
returns regarding payments of interest) is amended by adding
at the end the following new paragraph:
``(9) Reporting of credit on qualified tax credit bonds.--
``(A) In general.--For purposes of subsection (a), the term
`interest' includes amounts includible in gross income under
section 54A and such amounts shall be treated as paid on the
credit allowance date (as defined in section 54A(e)(1)).
``(B) Reporting to corporations, etc.--Except as otherwise
provided in regulations, in the case of any interest
described in subparagraph (A) of this paragraph, subsection
(b)(4) of this section shall be applied without regard to
subparagraphs (A), (H), (I), (J), (K), and (L)(i).
``(C) Regulatory authority.--The Secretary may prescribe
such regulations as are necessary or appropriate to carry out
the purposes of this paragraph, including regulations which
require more frequent or more detailed reporting.''.
[[Page H9929]]
(c) Conforming Amendments.--
(1) Sections 54(c)(2) and 1400N(l)(3)(B) are each amended
by striking ``subpart C'' and inserting ``subparts C and I''.
(2) Section 1397E(c)(2) is amended by striking ``subpart
H'' and inserting ``subparts H and I''.
(3) Section 6401(b)(1) is amended by striking ``and H'' and
inserting ``H, and I''.
(4) The heading of subpart H of part IV of subchapter A of
chapter 1 is amended by striking ``Certain Bonds'' and
inserting ``Clean Renewable Energy Bonds''.
(5) The table of subparts for part IV of subchapter A of
chapter 1 is amended by striking the item relating to subpart
H and inserting the following new items:
``subpart h. nonrefundable credit to holders of clean renewable energy
bonds.
``subpart i. qualified tax credit bonds.''.
(d) Effective Dates.--The amendments made by this section
shall apply to obligations issued after the date of the
enactment of this Act.
SEC. 105. EXTENSION AND MODIFICATION OF SPECIAL RULE TO
IMPLEMENT FERC AND STATE ELECTRIC RESTRUCTURING
POLICY.
(a) Extension for Qualified Electric Utilities.--
(1) In general.--Paragraph (3) of section 451(i) (relating
to special rule for sales or dispositions to implement
Federal Energy Regulatory Commission or State electric
restructuring policy) is amended by striking ``before January
1, 2008,'' and inserting ``before January 1, 2010, by a
qualified electric utility,''.
(2) Qualified electric utility.--Subsection (i) of section
451 is amended by redesignating paragraphs (6) through (10)
as paragraphs (7) through (11), respectively, and by
inserting after paragraph (5) the following new paragraph:
``(6) Qualified electric utility.--For purposes of this
subsection, the term `qualified electric utility' means--
``(A) an electric utility (as defined in section 3(22) of
the Federal Power Act (16 U.S.C. 796(22))), and
``(B) any person in the same holding company system (as
defined in section 1262(9) of the Public Utility Holding
Company Act of 2005 (42 U.S.C. 16451(9))) as an electric
utility referred to subparagraph (A).''.
(b) Extension of Period for Transfer of Operational Control
Authorized by FERC.--Clause (ii) of section 451(i)(4)(B) is
amended by striking ``December 31, 2007'' and inserting ``the
date which is 4 years after the close of the taxable year in
which the transaction occurs''.
(c) Property Located Outside the United States Not Treated
as Exempt Utility Property.--Paragraph (5) of section 451(i)
is amended by adding at the end the following new
subparagraph:
``(C) Exception for property located outside the united
states.--The term `exempt utility property' shall not include
any property which is located outside the United States.''.
(d) Effective Dates.--
(1) Extension.--The amendment made by subsection (a) shall
apply to transactions after December 31, 2007.
(2) Transfers of operational control.--The amendment made
by subsection (b) shall take effect as if included in section
909 of the American Jobs Creation Act of 2004.
(3) Exception for property located outside the united
states.--The amendment made by subsection (c) shall apply to
transactions after the date of the enactment of this Act.
SEC. 106. REPEAL OF DOLLAR LIMITATION AND ALLOWANCE AGAINST
ALTERNATIVE MINIMUM TAX FOR RESIDENTIAL SOLAR
AND FUEL CELL PROPERTY CREDIT.
(a) Repeal of Maximum Dollar Limitation.--
(1) In general.--Subsection (b) of section 25D (relating to
limitations) is amended to read as follows:
``(b) Certification of Solar Water Heating Property.--No
credit shall be allowed under this section for an item of
property described in subsection (d)(1) unless such property
is certified for performance by the non-profit Solar Rating
Certification Corporation or a comparable entity endorsed by
the government of the State in which such property is
installed.''.
(2) Conforming amendments.--
(A) Subsection (e) of section 25D is amended by striking
paragraph (4) and by redesignating paragraphs (5) through (9)
as paragraphs (4) through (8), respectively.
(B) Paragraph (1) of section 25C(e) is amended by striking
``(8), and (9)'' and inserting ``and (8) (and paragraph (4)
as in effect before its repeal by the Renewable Energy and
Energy Conservation Tax Act of 2007)''.
(b) Credit Allowed Against Alternative Minimum Tax.--
(1) In general.--Subsection (c) of section 25D is amended
to read as follows:
``(c) Limitation Based on Amount of Tax; Carryforward of
Unused Credit.--
``(1) Limitation based on amount of tax.--In the case of a
taxable year to which section 26(a)(2) does not apply, the
credit allowed under subsection (a) for the taxable year
shall not exceed the excess of--
``(A) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(B) the sum of the credits allowable under this subpart
(other than this section) and section 27 for the taxable
year.
``(2) Carryforward of unused credit.--
``(A) Rule for years in which all personal credits allowed
against regular and alternative minimum tax.--In the case of
a taxable year to which section 26(a)(2) applies, if the
credit allowable under subsection (a) exceeds the limitation
imposed by section 26(a)(2) for such taxable year reduced by
the sum of the credits allowable under this subpart (other
than this section), such excess shall be carried to the
succeeding taxable year and added to the credit allowable
under subsection (a) for such succeeding taxable year.
``(B) Rule for other years.--In the case of a taxable year
to which section 26(a)(2) does not apply, if the credit
allowable under subsection (a) exceeds the limitation imposed
by paragraph (1) for such taxable year, such excess shall be
carried to the succeeding taxable year and added to the
credit allowable under subsection (a) for such succeeding
taxable year.''.
(2) Conforming amendments.--
(A) Section 23(b)(4)(B) is amended by inserting ``and
section 25D'' after ``this section''.
(B) Section 24(b)(3)(B) is amended by striking ``and 25B''
and inserting ``, 25B, and 25D''.
(C) Section 25B(g)(2) is amended by striking ``section 23''
and inserting ``sections 23 and 25D''.
(D) Section 26(a)(1) is amended by striking ``and 25B'' and
inserting ``25B, and 25D''.
(c) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to expenditures made after the date of the enactment of this
Act.
(2) Allowance against alternative minimum tax.--
(A) In general.--The amendments made by subsection (b)
shall apply to taxable years beginning after the date of the
enactment of this Act.
(B) Application of egtrra sunset.--The amendments made by
subparagraphs (A) and (B) of subsection (b)(2) shall be
subject to title IX of the Economic Growth and Tax Relief
Reconciliation Act of 2001 in the same manner as the
provisions of such Act to which such amendments relate.
TITLE II--CONSERVATION
Subtitle A--Transportation
SEC. 201. CREDIT FOR PLUG-IN HYBRID VEHICLES.
(a) In General.--Subpart B of part IV of subchapter A of
chapter 1 (relating to other credits) is amended by adding at
the end the following new section:
``SEC. 30D. PLUG-IN HYBRID VEHICLES.
``(a) Allowance of Credit.--There shall be allowed as a
credit against the tax imposed by this chapter for the
taxable year an amount equal to the sum of the credit amounts
determined under subsection (b) with respect to each
qualified plug-in hybrid vehicle placed in service by the
taxpayer during the taxable year.
``(b) Per Vehicle Dollar Limitation.--
``(1) In general.--The amount determined under this
subsection with respect to any qualified plug-in hybrid
vehicle is the sum of the amounts determined under paragraphs
(2) and (3) with respect to such vehicle.
``(2) Base amount.--The amount determined under this
paragraph is $4,000.
``(3) Battery capacity.--In the case of vehicle which draws
propulsion energy from a battery with not less than 5
kilowatt hours of capacity, the amount determined under this
paragraph is $200, plus $200 for each kilowatt hour of
capacity in excess of 5 kilowatt hours. The amount determined
under this paragraph shall not exceed $2,000.
``(c) Application With Other Credits.--
``(1) Business credit treated as part of general business
credit.--So much of the credit which would be allowed under
subsection (a) for any taxable year (determined without
regard to this subsection) that is attributable to property
of a character subject to an allowance for depreciation shall
be treated as a credit listed in section 38(b) for such
taxable year (and not allowed under subsection (a)).
``(2) Personal credit.--
``(A) In general.--For purposes of this title, the credit
allowed under subsection (a) for any taxable year (determined
after application of paragraph (1)) shall be treated as a
credit allowable under subpart A for such taxable year.
``(B) Limitation based on amount of tax.--In the case of a
taxable year to which section 26(a)(2) does not apply, the
credit allowed under subsection (a) for any taxable year
(determined after application of paragraph (1)) shall not
exceed the excess of--
``(i) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(ii) the sum of the credits allowable under subpart A
(other than this section and sections 23 and 25D) and section
27 for the taxable year.
``(d) Qualified Plug-In Hybrid Vehicle.--For purposes of
this section--
``(1) In general.--The term `qualified plug-in hybrid
vehicle' means a motor vehicle (as defined in section
30(c)(2))--
``(A) the original use of which commences with the
taxpayer,
``(B) which is acquired for use or lease by the taxpayer
and not for resale,
``(C) which is made by a manufacturer,
``(D) which has a gross vehicle weight rating of less than
14,000 pounds,
``(E) which has received a certificate of conformity under
the Clean Air Act and meets or exceeds the Bin 5 Tier II
emission standard established in regulations prescribed by
the Administrator of the Environmental Protection Agency
under section 202(i) of the Clean Air Act for that make and
model year vehicle,
``(F) which is propelled to a significant extent by an
electric motor which draws electricity from a battery which--
``(i) has a capacity of not less than 4 kilowatt hours, and
``(ii) is capable of being recharged from an external
source of electricity, and
``(G) which either--
[[Page H9930]]
``(i) is also propelled to a significant extent by other
than an electric motor, or
``(ii) has a significant onboard source of electricity
which also recharges the battery referred to in subparagraph
(F).
``(2) Exception.--The term `qualified plug-in hybrid
vehicle' shall not include any vehicle which is not a
passenger automobile or light truck if such vehicle has a
gross vehicle weight rating of less than 8,500 pounds.
``(3) Other terms.--The terms `passenger automobile',
`light truck', and `manufacturer' have the meanings given
such terms in regulations prescribed by the Administrator of
the Environmental Protection Agency for purposes of the
administration of title II of the Clean Air Act (42 U.S.C.
7521 et seq.).
``(4) Battery capacity.--The term `capacity' means, with
respect to any battery, the quantity of electricity which the
battery is capable of storing, expressed in kilowatt hours,
as measured from a 100 percent state of charge to a 0 percent
state of charge.
``(e) Limitation on Number of Qualified Plug-In Hybrid
Vehicles Eligible for Credit.--
``(1) In general.--In the case of a qualified plug-in
hybrid vehicle sold during the phaseout period, only the
applicable percentage of the credit otherwise allowable under
subsection (a) shall be allowed.
``(2) Phaseout period.--For purposes of this subsection,
the phaseout period is the period beginning with the second
calendar quarter following the calendar quarter which
includes the first date on which the number of qualified
plug-in hybrid vehicles manufactured by the manufacturer of
the vehicle referred to in paragraph (1) sold for use in the
United States after the date of the enactment of this
section, is at least 60,000.
``(3) Applicable percentage.--For purposes of paragraph
(1), the applicable percentage is--
``(A) 50 percent for the first 2 calendar quarters of the
phaseout period,
``(B) 25 percent for the 3d and 4th calendar quarters of
the phaseout period, and
``(C) 0 percent for each calendar quarter thereafter.
``(4) Controlled groups.--Rules similar to the rules of
section 30B(f)(4) shall apply for purposes of this
subsection.
``(f) Special Rules.--
``(1) Basis reduction.--The basis of any property for which
a credit is allowable under subsection (a) shall be reduced
by the amount of such credit (determined without regard to
subsection (c)).
``(2) Recapture.--The Secretary shall, by regulations,
provide for recapturing the benefit of any credit allowable
under subsection (a) with respect to any property which
ceases to be property eligible for such credit.
``(3) Property used outside united states, etc., not
qualified.--No credit shall be allowed under subsection (a)
with respect to any property referred to in section 50(b)(1)
or with respect to the portion of the cost of any property
taken into account under section 179.
``(4) Election not to take credit.--No credit shall be
allowed under subsection (a) for any vehicle if the taxpayer
elects to not have this section apply to such vehicle.
``(5) Property used by tax-exempt entity; interaction with
air quality and motor vehicle safety standards.--Rules
similar to the rules of paragraphs (6) and (10) of section
30B(h) shall apply for purposes of this section.''.
(b) Plug-In Vehicles Not Treated as New Qualified Hybrid
Vehicles.--Section 30B(d)(3) is amended by adding at the end
the following new subparagraph:
``(D) Exclusion of plug-in vehicles.--Any vehicle with
respect to which a credit is allowable under section 30D
(determined without regard to subsection (c) thereof) shall
not be taken into account under this section.''.
(c) Credit Made Part of General Business Credit.--Section
38(b) is amended--
(1) by striking ``and'' each place it appears at the end of
any paragraph,
(2) by striking ``plus'' each place it appears at the end
of any paragraph,
(3) by striking the period at the end of paragraph (31) and
inserting ``, plus'', and
(4) by adding at the end the following new paragraph:
``(32) the portion of the plug-in hybrid vehicle credit to
which section 30D(c)(1) applies.''.
(d) Conforming Amendments.--
(1)(A) Section 24(b)(3)(B), as amended by this Act, is
amended by striking ``and 25D'' and inserting ``25D, and
30D''.
(B) Section 25(e)(1)(C)(ii) is amended by inserting
``30D,'' after ``25D,''.
(C) Section 25B(g)(2), as amended by this Act, is amended
by striking ``and 25D'' and inserting ``, 25D, and 30D''.
(D) Section 26(a)(1), as amended by this Act, is amended by
striking ``and 25D'' and inserting ``25D, and 30D''.
(E) Section 1400C(d)(2) is amended by striking ``and 25D''
and inserting ``25D, and 30D''.
(2) Section 1016(a) is amended by striking ``and'' at the
end of paragraph (36), by striking the period at the end of
paragraph (37) and inserting ``, and'', and by adding at the
end the following new paragraph:
``(38) to the extent provided in section 30D(f)(1).''.
(3) Section 6501(m) is amended by inserting ``30D(f)(4),''
after ``30C(e)(5),''.
(4) The table of sections for subpart B of part IV of
subchapter A of chapter 1 is amended by adding at the end the
following new item:
``Sec. 30D. Plug-in hybrid vehicles.''.
(e) Treatment of Alternative Motor Vehicle Credit as a
Personal Credit.--
(1) In general.--Paragraph (2) of section 30B(g) is amended
to read as follows:
``(2) Personal credit.--The credit allowed under subsection
(a) for any taxable year (after application of paragraph (1))
shall be treated as a credit allowable under subpart A for
such taxable year.''.
(2) Conforming amendments.--
(A) Subparagraph (A) of section 30C(d)(2) is amended by
striking ``sections 27, 30, and 30B'' and inserting
``sections 27 and 30''.
(B) Paragraph (3) of section 55(c) is amended by striking
``30B(g)(2),''.
(f) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to taxable years beginning after December 31, 2007.
(2) Treatment of alternative motor vehicle credit as
personal credit.--The amendments made by subsection (e) shall
apply to taxable years beginning after December 31, 2006.
(g) Application of EGTRRA Sunset.--The amendment made by
subsection (d)(1)(A) shall be subject to title IX of the
Economic Growth and Tax Relief Reconciliation Act of 2001 in
the same manner as the provision of such Act to which such
amendment relates.
SEC. 202. EXTENSION AND MODIFICATION OF ALTERNATIVE FUEL
VEHICLE REFUELING PROPERTY CREDIT.
(a) Increase in Credit Amount.--Section 30C (relating to
alternative fuel vehicle refueling property credit) is
amended--
(1) by striking ``30 percent'' in subsection (a) and
inserting ``50 percent'', and
(2) by striking ``$30,000'' in subsection (b)(1) and
inserting ``$50,000''.
(b) Extension of Credit.--Paragraph (2) of section 30C(g)
(relating to termination) is amended by striking ``December
31, 2009'' and inserting ``December 31, 2010''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
the enactment of this Act, in taxable years ending after such
date.
SEC. 203. EXTENSION AND MODIFICATION OF CREDITS FOR BIODIESEL
AND RENEWABLE DIESEL.
(a) In General.--Sections 40A(g), 6426(c)(6), and
6427(e)(5)(B) are each amended by striking ``December 31,
2008'' and inserting ``December 31, 2010''.
(b) Uniform Treatment of Diesel Produced From Biomass.--
Paragraph (3) of section 40A(f) is amended--
(1) by striking ``using a thermal depolymerization
process'', and
(2) by striking ``or D396'' in subparagraph (B) and
inserting ``or other equivalent standard approved by the
Secretary for fuels to be used in diesel-powered highway
vehicles''.
(c) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to fuel produced,
and sold or used, after the date of the enactment of this
Act.
(2) Uniform treatment of diesel produced from biomass.--The
amendments made by subsection (b) shall apply to fuel
produced, and sold or used, after the date which is 30 days
after the date of the enactment of this Act.
SEC. 204. CREDIT FOR PRODUCTION OF CELLULOSIC ALCOHOL.
(a) In General.--Subsection (b) of section 40 is amended by
redesignating paragraph (5) as paragraph (6) and by inserting
after paragraph (4) the following new paragraph:
``(5) Cellulosic alcohol fuel producer credit.--
``(A) In general.--The cellulosic alcohol fuel producer
credit of any cellulosic alcohol fuel producer for any
taxable year is 50 cents for each gallon of qualified
cellulosic fuel production of such producer.
``(B) Qualified cellulosic fuel production.--For purposes
of this paragraph, the term `qualified cellulosic fuel
production' means any cellulosic alcohol which is produced by
a cellulosic alcohol fuel producer, and which during the
taxable year--
``(i) is sold by such producer to another person--
``(I) for use by such other person in the production of a
qualified mixture in such other person's trade or business
(other than casual off-farm production),
``(II) for use by such other person as a fuel in a trade or
business, or
``(III) who sells such alcohol at retail to another person
and places such alcohol in the fuel tank of such other
person, or
``(ii) is used or sold by such producer for any purpose
described in clause (i).
``(C) Cellulosic alcohol.--For purposes of this paragraph,
the term `cellulosic alcohol' means any alcohol which--
``(i) is produced in the United States for use as a fuel in
the United States, and
``(ii) is derived from any lignocellulosic or
hemicellulosic matter that is available on a renewable or
recurring basis.
For purposes of this subparagraph, the term `United States'
includes any possession of the United States.
``(D) Cellulosic alcohol fuel producer.--For purposes of
this paragraph, the term `cellulosic alcohol fuel producer'
means any person who produces cellulosic alcohol in a trade
or business and is registered with the Secretary as a
cellulosic alcohol fuel producer.
``(E) Additional distillation excluded.--The qualified
cellulosic fuel production of any producer for any taxable
year shall not include any alcohol which is purchased by the
producer and with respect to which such producer increases
the proof of the alcohol by additional distillation.''.
(b) Conforming Amendments.--
(1) Subsection (a) of section 40 is amended by striking
``plus'' at the end of paragraph (1), by striking ``plus'' at
the end of paragraph (2), by striking the period at the end
of paragraph (3) and inserting ``, plus'', and by adding at
the end the following new paragraph:
``(4) in the case of a cellulosic alcohol fuel producer,
the cellulosic alcohol fuel producer credit.''.
[[Page H9931]]
(2) Clause (ii) of section 40(d)(3)(C) is amended by
striking ``subsection (b)(4)(B)'' and inserting ``paragraph
(4)(B) or (5)(B) of subsection (b)''.
(c) Effective Date.--The amendments made by this section
shall apply to alcohol produced after December 31, 2007.
SEC. 205. EXTENSION OF TRANSPORTATION FRINGE BENEFIT TO
BICYCLE COMMUTERS.
(a) In General.--Paragraph (1) of section 132(f) of the
Internal Revenue Code of 1986 (relating to general rule for
qualified transportation fringe) is amended by adding at the
end the following:
``(D) Any qualified bicycle commuting reimbursement.''.
(b) Limitation on Exclusion.--Paragraph (2) of section
132(f) 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) the applicable annual limitation in the case of any
qualified bicycle commuting reimbursement.''.
(c) Definitions.--Paragraph (5) of section 132(f) of such
Code (relating to definitions) is amended by adding at the
end the following:
``(F) Definitions related to bicycle commuting
reimbursement.--
``(i) Qualified bicycle commuting reimbursement.--The term
`qualified bicycle commuting reimbursement' means, with
respect to any calendar year, any employer reimbursement
during the 15-month
period beginning with the first day of such calendar year
for reasonable expenses incurred by the employee during such
calendar year for the purchase of a bicycle and bicycle
improvements, repair, and storage, if such bicycle is
regularly used for travel between the employee's residence
and place of employment.
``(ii) Applicable annual limitation.--The term `applicable
annual limitation' means, with respect to any employee for
any calendar year, the product of $20 multiplied by the
number of qualified bicycle commuting months during such
year.
``(iii) Qualified bicycle commuting month.--The term
`qualified bicycle commuting month' means, with respect to
any employee, any month during which such employee--
``(I) regularly uses the bicycle for a substantial portion
of the travel between the employee's residence and place of
employment, and
``(II) does not receive any benefit described in
subparagraph (A), (B), or (C) of paragraph (1).''.
(d) Constructive Receipt of Benefit.--Paragraph (4) of
section 132(f) is amended by inserting ``(other than a
qualified bicycle commuting reimbursement)'' after
``qualified transportation fringe''.
(e) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2007.
SEC. 206. MODIFICATION OF LIMITATION ON AUTOMOBILE
DEPRECIATION.
(a) In General.--Paragraph (5) of section 280F(d) of the
Internal Revenue Code of 1986 (defining passenger automobile)
is amended to read as follows:
``(5) Passenger automobile.--
``(A) In general.--Except as provided in subparagraph (B),
the term `passenger automobile' means any 4-wheeled vehicle--
``(i) which is primarily designed or which can be used to
carry passengers over public streets, roads, or highways
(except any vehicle operated exclusively on a rail or rails),
and
``(ii) which is rated at not more than 14,000 pounds gross
vehicle weight.
``(B) Exceptions.--The term `passenger automobile' shall
not include--
``(i) any exempt-design vehicle, and
``(ii) any exempt-use vehicle.
``(C) Exempt-design vehicle.--The term `exempt-design
vehicle' means--
``(i) any vehicle which, by reason of its nature or design,
is not likely to be used more than a de minimis amount for
personal purposes, and
``(ii) any vehicle--
``(I) which is designed to have a seating capacity of more
than 9 persons behind the driver's seat,
``(II) which is equipped with a cargo area of at least 5
feet in interior length which is an open area or is designed
for use as an open area but is enclosed by a cap and is not
readily accessible directly from the passenger compartment,
or
``(III) has an integral enclosure, fully enclosing the
driver compartment and load carrying device, does not have
seating rearward of the driver's seat, and has no body
section protruding more than 30 inches ahead of the leading
edge of the windshield.
``(D) Exempt-use vehicle.--The term `exempt-use vehicle'
means--
``(i) any ambulance, hearse, or combination ambulance-
hearse used by the taxpayer directly in a trade or business,
``(ii) any vehicle used by the taxpayer directly in the
trade or business of transporting persons or property for
compensation or hire, and
``(iii) any truck or van if substantially all of the use of
such vehicle by the taxpayer is directly in--
``(I) a farming business (within the meaning of section
263A(e)(4)),
``(II) the transportation of a substantial amount of
equipment, supplies, or inventory, or
``(III) the moving or delivery of property which requires
substantial cargo capacity.
``(E) Recapture.--In the case of any vehicle which is not a
passenger automobile by reason of being an exempt-use
vehicle, if such vehicle ceases to be an exempt-use vehicle
in any taxable year after the taxable year in which such
vehicle is placed in service, a rule similar to the rule of
subsection (b) shall apply.''.
(b) Conforming Amendment.--Section 179(b) of such Code
(relating to limitations) is amended by striking paragraph
(6).
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after December 31,
2007.
SEC. 207. RESTRUCTURING OF NEW YORK LIBERTY ZONE TAX CREDITS.
(a) In General.--Part I of subchapter Y of chapter 1 is
amended by redesignating section 1400L as section 1400K and
by adding at the end the following new section:
``SEC. 1400L. NEW YORK LIBERTY ZONE TAX CREDITS.
``(a) In General.--In the case of a New York Liberty Zone
governmental unit, there shall be allowed as a credit against
any taxes imposed for any payroll period by section 3402 for
which such governmental unit is liable under section 3403 an
amount equal to so much of the portion of the qualifying
project expenditure amount allocated under subsection (b)(3)
to such governmental unit for the calendar year as is
allocated by such governmental unit to such period under
subsection (b)(4).
``(b) Qualifying Project Expenditure Amount.--For purposes
of this section--
``(1) In general.--The term `qualifying project expenditure
amount' means, with respect to any calendar year, the sum
of--
``(A) the total expenditures paid or incurred during such
calendar year by all New York Liberty Zone governmental units
and the Port Authority of New York and New Jersey for any
portion of qualifying projects located wholly within the City
of New York, New York, and
``(B) any such expenditures--
``(i) paid or incurred in any preceding calendar year which
begins after the date of enactment of this section, and
``(ii) not previously allocated under paragraph (3).
``(2) Qualifying project.--The term `qualifying project'
means any transportation infrastructure project, including
highways, mass transit systems, railroads, airports, ports,
and waterways, in or connecting with the New York Liberty
Zone (as defined in section 1400K(h)), which is designated as
a qualifying project under this section jointly by the
Governor of the State of New York and the Mayor of the City
of New York, New York.
``(3) General allocation.--
``(A) In general.--The Governor of the State of New York
and the Mayor of the City of New York, New York, shall
jointly allocate to each New York Liberty Zone governmental
unit the portion of the qualifying project expenditure amount
which may be taken into account by such governmental unit
under subsection (a) for any calendar year in the credit
period.
``(B) Aggregate limit.--The aggregate amount which may be
allocated under subparagraph (A) for all calendar years in
the credit period shall not exceed $2,000,000,000.
``(C) Annual limit.--The aggregate amount which may be
allocated under subparagraph (A) for any calendar year in the
credit period shall not exceed the sum of--
``(i) $169,000,000, plus
``(ii) the aggregate amount authorized to be allocated
under this paragraph for all preceding calendar years in the
credit period which was not so allocated.
``(D) Unallocated amounts at end of credit period.--If, as
of the close of the credit period, the amount under
subparagraph (B) exceeds the aggregate amount allocated under
subparagraph (A) for all calendar years in the credit period,
the Governor of the State of New York and the Mayor of the
City of New York, New York, may jointly allocate to New York
Liberty Zone governmental units for any calendar year in the
5-year period following the credit period an amount equal
to--
``(i) the lesser of--
``(I) such excess, or
``(II) the qualifying project expenditure amount for such
calendar year, reduced by
``(ii) the aggregate amount allocated under this
subparagraph for all preceding calendar years.
``(4) Allocation to payroll periods.--Each New York Liberty
Zone governmental unit which has been allocated a portion of
the qualifying project expenditure amount under paragraph (3)
for a calendar year may allocate such portion to payroll
periods beginning in such calendar year as such governmental
unit determines appropriate.
``(c) Carryover of Unused Allocations.--
``(1) In general.--Except as provided in paragraph (2), if
the amount allocated under subsection (b)(3) to a New York
Liberty Zone governmental unit for any calendar year exceeds
the aggregate taxes imposed by section 3402 for which such
governmental unit is liable under section 3403 for periods
beginning in such year, such excess shall be carried to the
succeeding calendar year and added to the allocation of such
governmental unit for such succeeding calendar year.
``(2) Reallocation.--If a New York Liberty Zone
governmental unit does not use an amount allocated to it
under subsection (b)(3) within the time prescribed by the
Governor of the State of New York and the Mayor of the City
of New York, New York, then such amount shall after such time
be treated for purposes of subsection (b)(3) in the same
manner as if it had never been allocated.
``(d) Definitions and Special Rules.--For purposes of this
section--
``(1) Credit period.--The term `credit period' means the
12-year period beginning on January 1, 2008.
``(2) New york liberty zone governmental unit.--The term
`New York Liberty Zone governmental unit' means--
``(A) the State of New York,
``(B) the City of New York, New York, and
``(C) any agency or instrumentality of such State or City.
[[Page H9932]]
``(3) Treatment of funds.--Any expenditure for a qualifying
project taken into account for purposes of the credit under
this section shall be considered State and local funds for
the purpose of any Federal program.
``(4) Treatment of credit amounts for purposes of
withholding taxes.--For purposes of this title, a New York
Liberty Zone governmental unit shall be treated as having
paid to the Secretary, on the day on which wages are paid to
employees, an amount equal to the amount of the credit
allowed to such entity under subsection (a) with respect to
such wages, but only if such governmental unit deducts and
withholds wages for such payroll period under section 3401
(relating to wage withholding).
``(e) Reporting.--The Governor of the State of New York and
the Mayor of the City of New York, New York, shall jointly
submit to the Secretary an annual report--
``(1) which certifies--
``(A) the qualifying project expenditure amount for the
calendar year, and
``(B) the amount allocated to each New York Liberty Zone
governmental unit under subsection (b)(3) for the calendar
year, and
``(2) includes such other information as the Secretary may
require to carry out this section.
``(f) Guidance.--The Secretary may prescribe such guidance
as may be necessary or appropriate to ensure compliance with
the purposes of this section.''
(b) Termination of Special Allowance and Expensing.--
Subparagraph (A) of section 1400K(b)(2), as redesignated by
subsection (a), is amended by striking the parenthetical
therein and inserting ``(in the case of nonresidential real
property and residential rental property, the date of the
enactment of the Renewable Energy and Energy Conservation Tax
Act of 2007 or, if acquired pursuant to a binding contract in
effect on such enactment date, December 31, 2009)''.
(c) Conforming Amendments.--
(1) Section 38(c)(3)(B) is amended by striking ``section
1400L(a)'' and inserting ``section 1400K(a)''.
(2) Section 168(k)(2)(D)(ii) is amended by striking
``section 1400L(c)(2)'' and inserting ``section
1400K(c)(2)''.
(3) The table of sections for part I of subchapter Y of
chapter 1 is amended by redesignating the item relating to
section 1400L as an item relating to section 1400K and by
inserting after such item the following new item:
``Sec. 1400L. New York Liberty Zone tax credits.''.
(d) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
Subtitle B--Other Conservation Provisions
SEC. 211. QUALIFIED ENERGY CONSERVATION BONDS.
(a) In General.--Subpart I of part IV of subchapter A of
chapter 1, as added by section 104, is amended by adding at
the end the following new section:
``SEC. 54C. QUALIFIED ENERGY CONSERVATION BONDS.
``(a) Qualified Energy Conservation Bond.--For purposes of
this subchapter, the term `qualified energy conservation
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 one or more qualified conservation
purposes,
``(2) the bond is issued by a State or local government,
and
``(3) the issuer designates such bond for purposes of this
section.
``(b) 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 (d).
``(c) National Limitation on Amount of Bonds Designated.--
There is a national qualified energy conservation bond
limitation of $3,600,000,000.
``(d) Allocations.--
``(1) In general.--The limitation applicable under
subsection (c) shall be allocated by the Secretary among the
States in proportion to the population of the States.
``(2) Allocations to largest local governments.--
``(A) In general.--In the case of any State in which there
is a large local government, each such local government shall
be allocated a portion of such State's allocation which bears
the same ratio to the State's allocation (determined without
regard to this subparagraph) as the population of such large
local government bears to the population of such State.
``(B) Allocation of unused limitation to state.--The amount
allocated under this subsection to a large local government
may be reallocated by such local government to the State in
which such local government is located.
``(C) Large local government.--For purposes of this
section, the term `large local government' means any
municipality or county if such municipality or county has a
population of 100,000 or more.
``(3) Allocation to issuers; restriction on private
activity bonds.--Any allocation under this subsection to a
State or large local government shall be allocated by such
State or large local government to issuers within the State
in a manner that results in not less than 70 percent of the
allocation to such State or large local government being used
to designate bonds which are not private activity bonds.
``(e) Qualified Conservation Purpose.--For purposes of this
section--
``(1) In general.--The term `qualified conservation
purpose' means any of the following:
``(A) Capital expenditures incurred for purposes of--
``(i) reducing energy consumption in publicly-owned
buildings by at least 20 percent,
``(ii) implementing green community programs, or
``(iii) rural development involving the production of
electricity from renewable energy resources.
``(B) Expenditures with respect to research facilities, and
research grants, to support research in--
``(i) development of cellulosic ethanol or other nonfossil
fuels,
``(ii) technologies for the capture and sequestration of
carbon dioxide produced through the use of fossil fuels,
``(iii) increasing the efficiency of existing technologies
for producing nonfossil fuels,
``(iv) automobile battery technologies and other
technologies to reduce fossil fuel consumption in
transportation, or
``(v) technologies to reduce energy use in buildings.
``(C) Mass commuting facilities and related facilities that
reduce the consumption of energy, including expenditures to
reduce pollution from vehicles used for mass commuting.
``(D) Demonstration projects designed to promote the
commercialization of--
``(i) green building technology,
``(ii) conversion of agricultural waste for use in the
production of fuel or otherwise,
``(iii) advanced battery manufacturing technologies,
``(iv) technologies to reduce peak use of electricity, or
``(v) technologies for the capture and sequestration of
carbon dioxide emitted from combusting fossil fuels in order
to produce electricity.
``(E) Public education campaigns to promote energy
efficiency.
``(2) Special rules for private activity bonds.--For
purposes of this section, in the case of any private activity
bond, the term `qualified conservation purposes' shall not
include any expenditure which is not a capital expenditure.
``(f) Population.--
``(1) In general.--The population of any State or local
government shall be determined for purposes of this section
as provided in section 146(j) for the calendar year which
includes the date of the enactment of this section.
``(2) Special rule for counties.--In determining the
population of any county for purposes of this section, any
population of such county which is taken into account in
determining the population of any municipality which is a
large local government shall not be taken into account in
determining the population of such county.
``(g) Application to Indian Tribal Governments.--An Indian
tribal government shall be treated for purposes of this
section in the same manner as a large local government,
except that--
``(1) an Indian tribal government shall be treated for
purposes of subsection (d) as located within a State to the
extent of so much of the population of such government as
resides within such State, and
``(2) any bond issued by an Indian tribal government shall
be treated as a qualified energy conservation bond only if
issued as part of an issue the available project proceeds of
which are used for purposes for which such Indian tribal
government could issue bonds to which section 103(a)
applies.''.
(b) Conforming Amendments.--
(1) Paragraph (1) of section 54A(d), as added by section
104, is amended to read as follows:
``(1) Qualified tax credit bond.--The term `qualified tax
credit bond' means--
``(A) a new clean renewable energy bond, or
``(B) a qualified energy conservation bond,
which is part of an issue that meets requirements of
paragraphs (2), (3), (4), and (5).''.
(2) Subparagraph (C) of section 54A(d)(2), as added by
section 104, is amended to read as follows:
``(C) Qualified purpose.--For purposes of this paragraph,
the term `qualified purpose' means--
``(i) in the case of a new clean renewable energy bond, a
purpose specified in section 54B(a)(1), and
``(ii) in the case of a qualified energy conservation bond,
a purpose specified in section 54C(a)(1).''.
(3) 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:
``Sec. 54C. Qualified energy conservation bonds.''.
(c) Effective Date.--The amendments made by this section
shall apply to obligations issued after the date of the
enactment of this Act.
SEC. 212. QUALIFIED RESIDENTIAL ENERGY EFFICIENCY ASSISTANCE
BONDS.
(a) In General.--Subpart I of part IV of subchapter A of
chapter 1 (as amended by this Act) is amended by adding at
the end the following new section:
``SEC. 54D. QUALIFIED RESIDENTIAL ENERGY EFFICIENCY
ASSISTANCE BONDS.
``(a) Qualified Residential Energy Efficiency Assistance
Bond.--For purposes of this subchapter, the term `qualified
residential energy efficiency assistance 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 1 or more qualified residential
energy efficiency assistance purposes,
``(2) not less than 20 percent of the available project
proceeds of such issue are to be used for 1 or more qualified
low-income residential energy efficiency assistance purposes,
``(3) repayments of principal and applicable interest on
financing provided by the issue are used not later than the
close of the 3-month period beginning on the date the
prepayment (or complete repayment) is received to redeem
bonds which are part of the issue or to provide for 1 or
[[Page H9933]]
more qualified residential energy efficiency assistance
purposes,
``(4) the bond is issued by a State, and
``(5) the issuer designates such bond for purposes of this
section.
``(b) 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 under subsection (d)
to such issuer.
``(c) National Limitation on Amount of Bonds Designated.--
There is a national qualified energy conservation bond
limitation of $2,400,000,000.
``(d) Limitation Allocated Among States.--The limitation
under subsection (c) shall be allocated by the Secretary
among the States in proportion to the population of the
States.
``(e) Qualified Residential Energy Efficiency Assistance
Purpose.--For purposes of this section--
``(1) In general.--The term `qualified residential energy
efficiency assistance purpose' means any grant or low-
interest loan to acquire (including reasonable installation
costs)--
``(A) any property which meets (at a minimum) the
requirements of the Energy Star program and which is to be
installed in a dwelling unit,
``(B) any property which uses wind, solar, or geothermal
energy or qualified fuel cell property (as defined in section
48(c)(1)) to generate electricity, or to heat or cool water,
for use in a dwelling unit (other than property described in
section 25D(e)(3)), and
``(C) any improvements to a dwelling unit which are made
pursuant to a plan certified by an energy efficiency expert
that such improvement will yield at least a 20 percent
reduction in total household energy consumption related to
heating, cooling, lighting, and appliances.
``(2) Geothermal heat pump.--Any geothermal heat pump to
provide heating or cooling in a dwelling unit described in
paragraph (1)(B) shall be treated as described in paragraph
(1)(B).
``(3) Dollar limitations.--
``(A) In general.--Such term shall not include any grant or
loan for improvements described in paragraph (1)(C) with
respect to any dwelling unit to the extent that such grant or
loan (when added to all other grants or loans for such
improvements) exceeds $5,000.
``(B) Increased limitation for certain principal
residences.--In the case of a dwelling unit which is used as
a principal residence (within the meaning of section 121) by
the recipient of the grant or loan referred to in
subparagraph (A)--
``(i) subparagraph (A) shall be applied by substituting
`$12,000' for `$5,000' if such grant or loan would satisfy
the requirements of paragraph (1)(A) if such paragraph were
applied by substituting `50 percent' for `20 percent', and
``(ii) in any case to which clause (i) does not apply,
subparagraph (A) shall be applied by substituting `$8,000'
for `$5,000' if such grant or loan would satisfy the
requirements of paragraph (1)(A) if such paragraph were
applied by substituting `35 percent' for `20 percent'.
``(4) Low-interest loan.--The term `low interest loan'
means any loan which charges interest at a rate which does
not exceed the applicable Federal rate in effect under
section 1288(b)(1) determined as of the issuance of the loan.
``(5) Exclusion of certain property.--The following
property shall not be taken into account for purposes of
paragraph (1)(A):
``(A) Any equipment used in connection with a swimming
pool, hot tub, or similar property.
``(B) Any television.
``(C) Any device for converting digital signal to analog.
``(D) Any DVD player.
``(E) Any video cassette recorder (VCR).
``(F) Any audio equipment.
``(G) Any cordless phone.
``(H) Any other item of property where there is substantial
recreational use.
``(f) Qualified Low-Income Residential Efficiency
Assistance Purpose.--For purposes of this section--
``(1) In general.--The term `qualified low-income
residential energy efficiency assistance purpose' means any
qualified residential energy efficiency assistance purpose
with respect to a dwelling unit which is occupied (at the
time of the grant or loan) by individuals whose income is 50
percent or less of area median gross income. Rules similar to
the rules of section 142(d)(2)(B) shall apply for purposes of
this paragraph.
``(2) Restriction to grants.--Such term shall not include
any loan.
``(g) Definitions and Special Rules.--For purposes of this
section--
``(1) Applicable interest.--The term `applicable interest'
means, with respect to any loan, so much of any interest on
such loan which exceeds 1 percentage point.
``(2) Special rule relating to arbitrage.--An issue shall
not be treated as failing to meet the requirements of section
54A(d)(4)(A) by reason of any investment of available project
proceeds in 1 or more qualified residential energy efficiency
assistance purposes.
``(3) Population.--The population of any State or local
government shall be determined as provided in section 146(j)
for the calendar year which includes the date of the
enactment of this section.
``(4) Reporting.--
``(A) Reports by issuers.--Issuers of qualified residential
energy efficiency assistance bonds shall, not later than 6
months after the expenditure period (as defined in section
54A) and annually thereafter until the last such bond is
redeemed, submit reports to the Secretary regarding such
bonds, including information regarding--
``(i) the number and monetary value of loans and grants
provided and the purposes for which provided,
``(ii) the number of dwelling units the energy efficiency
of which improved as result of such loans and grants,
``(iii) the types of property described in subsection
(e)(1)(A) installed as a result of such loans and grants and
the projected energy savings with respect to such property,
``(iv) the types of property described in subsection
(e)(1)(B) installed as a result of such loans and grants and
the projected production of such property, and
``(v) the projected energy savings as a result of such
loans and grants for improvements described in subsection
(e)(1)(C).
``(B) Report to congress.--Not later than 12 months after
receipt of the first report under subparagraph (A) and
annually thereafter until the last such report is required to
be submitted, the Secretary, in consultation with the
Secretary of Energy and the Administrator of the
Environmental Protection Agency, shall submit a report to
Congress regarding the bond program under this section,
including information regarding--
``(i) the aggregate of each category of information
described in subparagraph (A) (including any independent
assessment of projected energy savings), and
``(ii) an estimate of the amount of greenhouse gas
emissions reduced as a result of such bond program.''.
(b) Conforming Amendments.--
(1) Paragraph (1) of section 54A(d), as added by section
104 and amended by section 211, is amended by striking ``or''
at the end of subparagraph (A), by inserting ``or'' at the
end of subparagraph (B), and by inserting after subparagraph
(B) the following new subparagraph:
``(C) a qualified residential energy efficiency assistance
bond,''.
(2) Subparagraph (C) of section 54A(d)(2), as added by
section 104 and amended by section 211, is amended by
striking ``and'' at the end of clause (i), by striking the
period at the end of clause (ii) and inserting ``, and'', and
by adding at the end the following new clause:
``(iii) in the case of a qualified residential energy
efficiency assistance bond, a purpose specified in section
54D(a)(1).''.
(3) The table of sections for subpart I of part IV of
subchapter A of chapter 1, as amended by this Act, is amended
by adding at the end the following new item:
``Sec. 54D. Qualified residential energy efficiency assistance
bonds.''.
(c) Effective Date.--The amendments made by this section
shall apply to obligations issued after the date of the
enactment of this Act.
SEC. 213. EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS
DEDUCTION.
Subsection (h) of section 179D (relating to termination) is
amended by striking ``December 31, 2008'' and inserting
``December 31, 2013''.
SEC. 214. MODIFICATIONS OF ENERGY EFFICIENT APPLIANCE CREDIT
FOR APPLIANCES PRODUCED AFTER 2007.
(a) In General.--Subsection (b) of section 45M (relating to
applicable amount) is amended to read as follows:
``(b) Applicable Amount.--For purposes of subsection (a)--
``(1) Dishwashers.--The applicable amount is--
``(A) $45 in the case of a dishwasher which is manufactured
in calendar year 2008 or 2009 and which uses no more than 324
kilowatt hours per year and 5.8 gallons per cycle, and
``(B) $75 in the case of a dishwasher which is manufactured
in calendar year 2008, 2009, or 2010 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).
``(2) Clothes washers.--The applicable amount is--
``(A) $75 in the case of a residential top-loading clothes
washer manufactured in calendar year 2008 which meets or
exceeds a 1.72 modified energy factor and does not exceed a
8.0 water consumption factor,
``(B) $125 in the case of a residential top-loading clothes
washer manufactured in calendar year 2008 or 2009 which meets
or exceeds a 1.8 modified energy factor and does not exceed a
7.5 water consumption factor,
``(C) $150 in the case of a residential or commercial
clothes washer manufactured in calendar year 2008, 2009 or
2010 which meets or exceeds 2.0 modified energy factor and
does not exceed a 6.0 water consumption factor, and
``(D) $250 in the case of a residential or commercial
clothes washer manufactured in calendar year 2008, 2009, or
2010 which meets or exceeds 2.2 modified energy factor and
does not exceed a 4.5 water consumption factor.
``(3) Refrigerators.--The applicable amount is--
``(A) $50 in the case of a refrigerator which is
manufactured in calendar year 2008, and consumes at least 20
percent but not more than 22.9 percent less kilowatt hours
per year than the 2001 energy conservation standards,
``(B) $75 in the case of a refrigerator which is
manufactured in calendar year 2008 or 2009, and consumes at
least 23 percent but no more than 24.9 percent less kilowatt
hours per year than the 2001 energy conservation standards,
``(C) $100 in the case of a refrigerator which is
manufactured in calendar year 2008, 2009 or 2010, and
consumes at least 25 percent but not more than 29.9 percent
less kilowatt hours per year than the 2001 energy
conservation standards, and
``(D) $200 in the case of a refrigerator manufactured in
calendar year 2008, 2009 or 2010 and which consumes at least
30 percent less energy than the 2001 energy conservation
standards.
``(4) Dehumidifiers.--The applicable amount is--
[[Page H9934]]
``(A) $15 in the case of a dehumidifier manufactured in
calendar year 2008 that has a capacity less than or equal to
45 pints per day and is 7.5 percent more efficient than the
applicable Department of Energy energy conservation standard
effective October 2012, and
``(B) $25 in the case of a dehumidifier manufactured in
calendar year 2008 that has a capacity greater than 45 pints
per day and is 7.5 percent more efficient than the applicable
Department of Energy energy conservation standard effective
October 2012.''.
(b) Eligible Production.--
(1) Similar treatment for all appliances.--Subsection (c)
of section 45M (relating to eligible production) is amended--
(A) by striking paragraph (2),
(B) by striking ``(1) In general'' and all that follows
through ``the eligible'' and inserting ``The eligible'', and
(C) by moving the text of such subsection in line with the
subsection heading and redesignating subparagraphs (A) and
(B) as paragraphs (1) and (2), respectively.
(2) Modification of base period.--Paragraph (2) of section
45M(c), as amended by paragraph (1) of this section, is
amended by striking ``3-calendar year'' and inserting ``2-
calendar year''.
(c) Types of Energy Efficient Appliances.--Subsection (d)
of section 45M (defining types of energy efficient
appliances) is amended to read as follows:
``(d) Types of Energy Efficient Appliance.--For purposes of
this section, the types of energy efficient appliances are--
``(1) dishwashers described in subsection (b)(1),
``(2) clothes washers described in subsection (b)(2),
``(3) refrigerators described in subsection (b)(3), and
``(4) dehumidifiers described in subsection (b)(4).''.
(d) Aggregate Credit Amount Allowed.--
(1) Increase in limit.--Paragraph (1) of section 45M(e)
(relating to aggregate credit amount allowed) is amended to
read as follows:
``(1) Aggregate credit amount allowed.--The aggregate
amount of credit allowed under subsection (a) with respect to
a taxpayer for any taxable year shall not exceed $75,000,000
reduced by the amount of the credit allowed under subsection
(a) to the taxpayer (or any predecessor) for all prior
taxable years beginning after December 31, 2007.''.
(2) Exception for certain refrigerator and clothes
washers.--Paragraph (2) of section 45M(e) is amended to read
as follows:
``(2) Amount allowed for certain refrigerators and clothes
washers.--Refrigerators described in subsection (b)(3)(D) and
clothes washers described in subsection (b)(2)(D) shall not
be taken into account under paragraph (1).''.
(e) Qualified Energy Efficient Appliances.--
(1) In general.--Paragraph (1) of section 45M(f) (defining
qualified energy efficient appliance) is amended to read as
follows:
``(1) Qualified energy efficient appliance.--The term
`qualified energy efficient appliance' means--
``(A) any dishwasher described in subsection (b)(1),
``(B) any clothes washer described in subsection (b)(2),
``(C) any refrigerator described in subsection (b)(3), and
``(D) any dehumidifier described in subsection (b)(4).''.
(2) Clothes washer.--Section 45M(f)(3) (defining clothes
washer) is amended by inserting ``commercial'' before
``residential'' the second place it appears.
(3) Top-loading clothes washer.--Subsection (f) of section
45M (relating to definitions) is amended by redesignating
paragraphs (4), (5), (6), and (7) as paragraphs (5), (6),
(7), and (8), respectively, and by inserting after paragraph
(3) the following new paragraph:
``(4) Top-loading clothes washer.--The term `top-loading
clothes washer' means a clothes washer which has the clothes
container compartment access located on the top of the
machine and which operates on a vertical axis.''.
(4) Dehumidifier.--Subsection (f) of section 45M, as
amended by paragraph (3), is amended by redesignating
paragraphs (6), (7), and (8) as paragraphs (7), (8) and (9),
respectively, and by inserting after paragraph (5) the
following new paragraph:
``(6) Dehumidifier.--The term `dehumidifier' means a self-
contained, electrically operated, and mechanically
refrigerated encased assembly consisting of--
``(A) a refrigerated surface that condenses moisture from
the atmosphere,
``(B) a refrigerating system, including an electric motor,
``(C) an air-circulating fan, and
``(D) means for collecting or disposing of condensate.''.
(5) Replacement of energy factor.--Section 45M(f)(7), as
amended by paragraph (4), is amended to read as follows:
``(7) Modified energy factor.--The term `modified energy
factor' means the modified energy factor established by the
Department of Energy for compliance with the Federal energy
conservation standard.''.
(6) Gallons per cycle; water consumption factor.--Section
45M(f) (relating to definitions) is amended by adding at the
end the following:
``(10) Gallons per cycle.--The term `gallons per cycle'
means, with respect to a dishwasher, the amount of water,
expressed in gallons, required to complete a normal cycle of
a dishwasher.
``(11) Water consumption factor.--The term `water
consumption factor' means, with respect to a clothes washer,
the quotient of the total weighted per-cycle water
consumption divided by the cubic foot (or liter) capacity of
the clothes washer.''.
(f) Effective Date.--The amendments made by this section
shall apply to appliances produced after December 31, 2007.
SEC. 215. FIVE-YEAR APPLICABLE RECOVERY PERIOD FOR
DEPRECIATION OF QUALIFIED ENERGY MANAGEMENT
DEVICES.
(a) In General.--Section 168(e)(3)(B) (relating to 5-year
property) is amended by striking ``and'' at the end of clause
(v), by striking the period at the end of clause (vi) and
inserting ``, and'', and by inserting after clause (vi) the
following new clause:
``(vii) any qualified energy management device.''.
(b) Definition of Qualified Energy Management Device.--
Section 168(i) (relating to definitions and special rules) is
amended by inserting at the end the following new paragraph:
``(18) Qualified energy management device.--
``(A) In general.--The term `qualified energy management
device' means any energy management device which is installed
on real property of a customer of the taxpayer and is placed
in service by a taxpayer who--
``(i) is a supplier of electric energy or a provider of
electric energy services, and
``(ii) provides all commercial and residential customers of
such supplier or provider with net metering upon the request
of such customer.
``(B) Energy management device.--For purposes of
subparagraph (A), the term `energy management device' means
any time-based meter and related communication equipment
which is capable of being used by the taxpayer as part of a
system that--
``(i) measures and records electricity usage data on a
time-differentiated basis in at least 24 separate time
segments per day,
``(ii) provides for the exchange of information between
supplier or provider and the customer's energy management
device in support of time-based rates or other forms of
demand response, and
``(iii) provides data to such supplier or provider so that
the supplier or provider can provide energy usage information
to customers electronically.
``(C) Net metering.--For purposes of subparagraph (A), the
term `net metering' means allowing customers a credit for
providing electricity to the supplier or provider.''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
the enactment of this Act.
TITLE III--REVENUE PROVISIONS
Subtitle A--Denial of Oil and Gas Tax Benefits
SEC. 301. DENIAL OF DEDUCTION FOR INCOME ATTRIBUTABLE TO
DOMESTIC PRODUCTION OF OIL, NATURAL GAS, OR
PRIMARY PRODUCTS THEREOF.
(a) In General.--Subparagraph (B) of section 199(c)(4)
(relating to exceptions) is amended by striking ``or'' at the
end of clause (ii), by striking the period at the end of
clause (iii) and inserting ``, or'', and by inserting after
clause (iii) the following new clause:
``(iv) the sale, exchange, or other disposition of oil,
natural gas, or any primary product thereof.''.
(b) Primary Product.--Section 199(c)(4)(B) is amended by
adding at the end the following flush sentence:
``For purposes of clause (iv), the term `primary product' has
the same meaning as when used in section 927(a)(2)(C), as in
effect before its repeal.''.
(c) Conforming Amendments.--Section 199(c)(4) is amended--
(1) in subparagraph (A)(i)(III) by striking ``electricity,
natural gas,'' and inserting ``electricity'', and
(2) in subparagraph (B)(ii) by striking ``electricity,
natural gas,'' and inserting ``electricity''.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2007.
SEC. 302. 7-YEAR AMORTIZATION OF GEOLOGICAL AND GEOPHYSICAL
EXPENDITURES FOR CERTAIN MAJOR INTEGRATED OIL
COMPANIES.
(a) In General.--Subparagraph (A) of section 167(h)(5)
(relating to special rule for major integrated oil companies)
is amended by striking ``5-year'' and inserting ``7-year''.
(b) Effective Date.--The amendment made by this section
shall apply to amounts paid or incurred after the date of the
enactment of this Act.
SEC. 303. CLARIFICATION OF DETERMINATION OF FOREIGN OIL AND
GAS EXTRACTION INCOME.
(a) In General.--Paragraph (1) of section 907(c) is amended
by redesignating subparagraph (B) as subparagraph (C), by
striking ``or'' at the end of subparagraph (A), and by
inserting after subparagraph (A) the following new
subparagraph:
``(B) so much of any transportation of such minerals as
occurs before the fair market value event, or''.
(b) Fair Market Value Event.--Subsection (c) of section 907
is amended by adding at the end the following new paragraph:
``(6) Fair market value event.--For purposes of this
section, the term `fair market value event' means, with
respect to any mineral, the first point in time at which such
mineral--
``(A) has a fair market value which can be determined on
the basis of a transfer, which is an arm's length
transaction, of such mineral from the taxpayer to a person
who is not related (within the meaning of section 482) to
such taxpayer, or
[[Page H9935]]
``(B) is at a location at which the fair market value is
readily ascertainable by reason of transactions among
unrelated third parties with respect to the same mineral
(taking into account source, location, quality, and chemical
composition).''.
(c) Special Rule for Certain Petroleum Taxes.--Subsection
(c) of section 907, as amended by subsection (b), is amended
to by adding at the end the following new paragraph:
``(7) Oil and gas taxes.--In the case of any tax imposed by
a foreign country which is limited in its application to
taxpayers engaged in oil or gas activities--
``(A) the term `oil and gas extraction taxes' shall include
such tax,
``(B) the term `foreign oil and gas extraction income'
shall include any taxable income which is taken into account
in determining such tax (or is directly attributable to the
activity to which such tax relates), and
``(C) the term `foreign oil related income' shall not
include any taxable income which is treated as foreign oil
and gas extraction income under subparagraph (B).''.
(d) Conforming Amendments.--
(1) Subparagraph (C) of section 907(c)(1), as redesignated
by this section, is amended by inserting ``or used by the
taxpayer in the activity described in subparagraph (B)''
before the period at the end.
(2) Subparagraph (B) of section 907(c)(2) is amended to
read as follows:
``(B) so much of the transportation of such minerals or
primary products as is not taken into account under paragraph
(1)(B),''.
(e) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
Subtitle B--Clarification of Eligibility for Certain Fuel Credits
SEC. 311. CLARIFICATION OF ELIGIBILITY FOR RENEWABLE DIESEL
CREDIT.
(a) Coproduction With Petroleum Feedstock.--
(1) In general.--Paragraph (3) of section 40A(f) (defining
renewable diesel) is amended by adding at the end the
following flush sentence:
``Such term does not include any fuel derived from
coprocessing biomass with a feedstock which is not biomass.
For purposes of this paragraph, the term `biomass' has the
meaning given such term by section 45K(c)(3).''.
(2) Conforming amendment.--Paragraph (3) of section 40A(f)
is amended by striking ``(as defined in section 45K(c)(3))''.
(b) Clarification of Eligibility for Alternative Fuel
Credit.--
(1) In general.--Subparagraph (F) of section 6426(d)(2) is
amended by striking ``hydrocarbons'' and inserting ``fuel''.
(2) Conforming amendment.--Section 6426 is amended by
adding at the end the following new subsection:
``(h) Denial of Double Benefit.--No credit shall be
determined under subsection (d) or (e) with respect to any
fuel with respect to which credit may be determined under
subsection (b) or (c) or under section 40 or 40A.''.
(c) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to fuel produced,
and sold or used, after June 30, 2007.
(2) Clarification of eligibility for alternative fuel
credit.--The amendment made by subsection (b) shall take
effect as if included in section 11113 of the Safe,
Accountable, Flexible, Efficient Transportation Equity Act: A
Legacy for Users.
SEC. 312. CLARIFICATION THAT CREDITS FOR FUEL ARE DESIGNED TO
PROVIDE AN INCENTIVE FOR UNITED STATES
PRODUCTION.
(a) Biodiesel Fuels Credit.--Paragraph (5) of section
40A(d), as added by subsection (c), is amended to read as
follows:
``(5) Limitation to biodiesel with connection to the united
states.--No credit shall be determined under this section
with respect to any biodiesel unless--
``(A) such biodiesel is produced in the United States for
use as a fuel in the United States, and
``(B) the taxpayer obtains a certification (in such form
and manner as prescribed by the Secretary) from the producer
of the biodiesel which identifies the product produced and
the location of such production.
For purposes of this paragraph, the term `United States'
includes any possession of the United States.''.
(b) Excise Tax Credit.--Paragraph (2) of section 6426(i),
as added by subsection (c), is amended to read as follows:
``(2) Biodiesel and alternative fuels.--No credit shall be
determined under this section with respect to any biodiesel
or alternative fuel unless--
``(A) such biodiesel or alternative fuel is produced in the
United States for use as a fuel in the United States, and
``(B) the taxpayer obtains a certification (in such form
and manner as prescribed by the Secretary) from the producer
of such biodiesel or alternative fuel which identifies the
product produced and the location of such production.''.
(c) Provisions Clarifying Treatment of Fuels With No Nexus
to the United States.--
(1) Alcohol fuels credit.--Subsection (d) of section 40 is
amended by adding at the end the following new paragraph:
``(6) Limitation to alcohol with connection to the united
states.--No credit shall be determined under this section
with respect to any alcohol which is produced outside the
United States for use as a fuel outside the United States.
For purposes of this paragraph, the term `United States'
includes any possession of the United States.''.
(2) Biodiesel fuels credit.--Subsection (d) of section 40A
is amended by adding at the end the following new paragraph:
``(5) Limitation to biodiesel with connection to the united
states.--No credit shall be determined under this section
with respect to any biodiesel which is produced outside the
United States for use as a fuel outside the United States.
For purposes of this paragraph, the term `United States'
includes any possession of the United States.''.
(3) Excise tax credit.--
(A) In general.--Section 6426, as amended by section 311,
is amended by adding at the end the following new subsection:
``(i) Limitation to Fuels With Connection to the United
States.--
``(1) Alcohol.--No credit shall be determined under this
section with respect to any alcohol which is produced outside
the United States for use as a fuel outside the United
States.
``(2) Biodiesel and alternative fuels.--No credit shall be
determined under this section with respect to any biodiesel
or alternative fuel which is produced outside the United
States for use as a fuel outside the United States.
For purposes of this subsection, the term `United States'
includes any possession of the United States.''.
(B) Conforming amendment.--Subsection (e) of section 6427
is amended by redesignating paragraph (5) as paragraph (6)
and by inserting after paragraph (4) the following new
paragraph:
``(5) Limitation to fuels with connection to the united
states.--No amount shall be payable under paragraph (1) or
(2) with respect to any mixture or alternative fuel if credit
is not allowed with respect to such mixture or alternative
fuel by reason of section 6426(i).''.
(d) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to fuel produced,
and sold or used, after the date of the enactment of this
Act.
(2) Provisions clarifying treatment of fuels with no nexus
to the united states.--
(A) In general.--Except as otherwise provided in this
paragraph, the amendments made by subsection (c) shall take
effect as if included in section 301 of the American Jobs
Creation Act of 2004.
(B) Alternative fuel credits.--So much of the amendments
made by subsection (c) as relate to the alternative fuel
credit or the alternative fuel mixture credit shall take
effect as if included in section 11113 of the Safe,
Accountable, Flexible, Efficient Transportation Equity Act: A
Legacy for Users.
(C) Renewable diesel.--So much of the amendments made by
subsection (c) as relate to renewable diesel shall take
effect as if included in section 1346 of the Energy Policy
Act of 2005.
TITLE IV--OTHER PROVISIONS
Subtitle A--Studies
SEC. 401. CARBON AUDIT OF THE TAX CODE.
(a) Study.--The Secretary of the Treasury shall enter into
an agreement with the National Academy of Sciences to
undertake a comprehensive review of the Internal Revenue Code
of 1986 to identify the types of and specific tax provisions
that have the largest effects on carbon and other greenhouse
gas emissions and to estimate the magnitude of those effects.
(b) Report.--Not later than 2 years after the date of
enactment of this Act, the National Academy of Sciences shall
submit to Congress a report containing the results of study
authorized under this section.
(c) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $1,500,000 for
the period of fiscal years 2008 and 2009.
SEC. 402. COMPREHENSIVE STUDY OF BIOFUELS.
(a) Study.--The Secretary of the Treasury, in consultation
with the Secretary of Agriculture, the Secretary of Energy,
and the Administrator of the Environmental Protection Agency,
shall enter into an agreement with the National Academy of
Sciences to produce an analysis of current scientific
findings to determine--
(1) current biofuels production, as well as projections for
future production,
(2) the maximum amount of biofuels production capable on
United States farmland,
(3) the domestic effects of a dramatic increase in biofuels
production on, for example--
(A) the price of fuel,
(B) the price of land in rural and suburban communities,
(C) crop acreage and other land use,
(D) the environment, due to changes in crop acreage,
fertilizer use, runoff, water use, emissions from vehicles
utilizing biofuels, and other factors,
(E) the price of feed,
(F) the selling price of grain crops,
(G) exports and imports of grains,
(H) taxpayers, through cost or savings to commodity crop
payments, and
(I) the expansion of refinery capacity,
(4) the ability to convert corn ethanol plants for other
uses, such as cellulosic ethanol or biodiesel,
(5) a comparative analysis of corn ethanol versus other
biofuels and renewable energy sources, considering cost,
energy output, and ease of implementation, and
(6) the need for additional scientific inquiry, and
specific areas of interest for future research.
(b) Report.--The National Academy of Sciences shall submit
an initial report of the findings of the report required
under subsection (a) to the Congress not later than 3 months
after the date of the enactment of this Act, and a final
report not later than 6 months after such date of enactment.
[[Page H9936]]
Subtitle B--Application of Certain Labor Standards on Projects Financed
Under Tax Credit Bonds
SEC. 411. APPLICATION OF CERTAIN LABOR STANDARDS ON PROJECTS
FINANCED UNDER TAX CREDIT BONDS.
Subchapter IV of chapter 31 of title 40, United States
Code, shall apply to projects financed with the proceeds of
any tax credit bond (as defined in section 54A of the
Internal Revenue Code of 1986).
The SPEAKER pro tempore. The gentleman from New York (Mr. Rangel) and
the gentleman from Louisiana (Mr. McCrery) each will control 30
minutes.
The Chair recognizes the gentleman from New York.
Mr. RANGEL. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in strong support of 2776, the Renewable Energy
and Energy Efficient Tax Act.
Our committee has provided long-term incentives for electricity for
renewable sources, production from wind, solar, biomass, geothermal,
river currents, ocean tides, landfill gas and tracks combustion
resources. And at the same time, we were able to provide incentives for
States to provide bonds and grants in order to make certain that
working families would be able to purchase energy-efficient heat pumps,
home improvement appliances, solar, and a variety of other things.
And in order to pay for this, at the recommendation of the Internal
Revenue Service, we were able to raise the funds to close the loopholes
to make certain that at the end of the day the bill is revenue-neutral.
Mr. Speaker, I ask unanimous consent at this time that the remainder
of my time I be able to yield to Mr. McDermott on the committee, who
has provided a lot of work on this subject and which we're so proud to
present to this House and ultimately to the American people.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from New York?
There was no objection.
Mr. McCRERY. Mr. Speaker, I yield myself such time as I may consume.
I rise today, Mr. Speaker, in strong opposition to H.R. 2776.
It seems that many of my colleagues in the majority have developed a
sort of schizophrenia when it comes to energy. Throughout last year,
they held press conference after press conference saying that the
Republicans weren't doing enough to lower the price of gasoline at the
pump; yet, since the new Democratic majority was elected, the price of
gasoline has jumped an average of nearly $1 a gallon across the
country. Now that my colleagues have brought to the floor a bill which
they call ``energy legislation,'' which includes substantial tax
increases on the oil and gas industry, surely they don't believe this
will do anything to bring down gasoline prices.
The majority will claim that this legislation is basically the same
as H.R. 6, an energy tax increase bill passed by this House in January.
That is not the case. This bill contains double the tax increase that
that legislation did. This bill has over $15 billion worth of tax
increases. Now, some of that is because the Joint Tax Committee
reestimated the impact of one of the provisions in H.R. 6, but other
provisions are new, including a massive tax increase on United States
companies producing energy abroad.
And while overseas production of oil and gas might seem like a
tempting target for a tax hike, the Statement of Administration Policy
has rightly warned that this provision will ``disadvantage United
States-based companies by reducing their ability to compete for
investments and foreign energy-related projects.''
At a time when worldwide energy demand is increasing, it defies logic
why we would unilaterally raise taxes on American companies competing
in an international market for future exploration and production deals.
What logical reason could there be for using the tax code to help
ensure more of the world's oil production is done by non-United States
companies? And in addition to raising taxes by more than $15 billion on
energy production, the majority has made, in my view, some poor
decisions when they decided how to spend the tax increase. Their bill,
for example, would allow several Republican-created incentives
promoting conservation to expire, including incentives for individuals
to buy hybrid cars, to install solar power and solar water heaters, and
to make energy-efficiency upgrades to their homes.
Even worse, the bill before us would also authorize up to $6 billion
in tax credit bonds for so-called ``green energy products.'' At our
markup, we in the minority offered a variety of amendments to try to
define or limit the allowable uses of these bond proceeds, and those
amendments were repeatedly rejected by the majority.
During the debate today, we will hear about some of the possible uses
of these bonds and our concern that they will amount to little more
than green pork doled out to Governors, State legislatures, mayors and
city councils to fund all manner of boondoggles and white elephants.
The majority could have avoided this debate by accepting language
requiring that these products reduce energy consumption or greenhouse
gas emissions, but they didn't.
In closing, Mr. Speaker, three facts about this legislation should be
painfully obvious.
Number one, you don't lower prices at the pump by raising taxes on
the companies that find, refine and transport gasoline.
Number two, you don't increase America's energy independence by
raising taxes on our domestic energy industry, making American energy
even more expensive compared with foreign sources.
And three, you certainly don't improve anything by shoveling money at
Governors and big-city mayors with a vague mandate and zero oversight.
I urge my colleagues to reject this bill.
Mr. Speaker, I reserve the balance of my time.
General Leave
Mr. McDERMOTT. Mr. Speaker, I ask unanimous consent that all Members
be given 5 legislative days in which to revise and extend their remarks
on H.R. 2776.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Washington?
There was no objection.
Mr. McDERMOTT. Mr. Speaker, I want to begin by acknowledging and
thanking Mr. Rangel for his leadership in providing the energy
legislation which is before us today and to applaud Speaker Pelosi for
setting the agenda at the beginning of this session that will change
this country's energy.
We live in a Nation addicted to oil, and we simply can't afford it
anymore. It's too expensive for the American pocketbook; it's too
adverse for American security, and too perilous for the Earth's
atmosphere. But the key to any and every part of the energy solution
lies here in the Congress in its political will to change what we can
change for the good of the American people and the Earth.
Our energy legislation is bigger and bolder than a barrel of oil.
It's a balance of support for alternative energy production and
conservation. Every American has a stake and an ability to make a
change, and our energy legislation unleashes America's ability to
create, innovate and seek out and do that which has not been done. This
is America's declaration of energy independence, and the first campaign
plans to win what must be won. Our grandchildren, our children, our
constituents, our country deserves no less. To those who say we cannot
rise to meet the future and that we must embrace the past, I say
America's boundless optimism has plenty of room to grow and shine. When
it comes to energy policy, we have not risen to the occasion or to
America's potential. That changes today with this legislation. It
deserves bipartisan support.
And I would point out that the rhetoric we're going to hear from the
other side is basically, we have to protect the oil companies; we can't
touch their profits. Now, at a time when Americans are paying record
prices at the pump and oil is at $70 a barrel, we have to change the
status quo, and we're going to do it. It doesn't affect oil produced in
this country, and it will be better for us in the long run.
Mr. Speaker, I reserve the balance of my time.
Mr. McCRERY. Mr. Speaker, I ask unanimous consent to allow the
gentleman from Pennsylvania (Mr. English), the ranking member of the
Select Revenue Measures Subcommittee, to control the balance of the
time.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Louisiana?
[[Page H9937]]
There was no objection.
Mr. ENGLISH of Pennsylvania. Mr. Speaker, I yield myself such time as
I may consume.
Mr. Speaker, I rise tonight to lament a lost opportunity. Mr.
Speaker, our friends on the other side of the aisle had promised to
produce an energy tax bill that would promote America's energy
independence. They had a real opening to produce innovative policies,
to incentivize new technologies and promote the diversification of our
energy consumption. Instead, Mr. Speaker, the Democrats have presented
the House with a placebo that will ultimately reduce domestic energy
production, give American energy companies less of a reason to invest
in exploration here at home, encourage greater dependence on foreign
oil, and damage America's manufacturing base.
This bill is energy policy light and consists of a dog's breakfast of
stale notions clearly intended to appeal to the blogosphere rather than
to market forces.
{time} 1815
The Democrats' solution to America's energy crisis is to single out
oil and gas producers for a tax increase. That is a great sound bite.
But the fact is, Mr. Speaker, this legislation is not likely to impact
oil producers' profits in any way, shape or form. The one thing you can
you can be sure this bill will do is raise prices at the pump for
American consumers.
Furthermore, it creates disincentives that will decrease the supply
of domestic natural gas and oil and increase our country's energy
imports. While this legislation not only forces our country to become
more dependent on foreign oil, it will also force America's working
families to bear the brunt of increased energy costs. The more than $15
billion tax increase built into this bill will inevitably be borne
entirely by consumers in the form of higher gasoline and home emergency
prices.
This is vastly, in fact, about double, the tax increase contained in
H.R. 6, a staggering sum that will stifle growth and hit working
families' bottom line. The effect of high gas prices will ripple
throughout the economy, increasing prices on everything from
electronics to school supplies.
This legislation is also an assault against America's manufacturing
base. Using nearly one-third of the Nation's energy both as fuel and
feedstock, energy is the heart of American manufacturing. With such an
energy-intensive sector, raising energy prices will make domestic
manufacturers less competitive in the world market, forcing more of our
good-paying manufacturing jobs offshore.
Mr. Speaker, we have long advocated for a comprehensive energy plan
to reduce our dependence on foreign oil and increase America's access
to clean, affordable and dependable energy for their cars, their homes
and their businesses. Yet, here again, Mr. Speaker, this bill is moving
in the wrong direction. It throws out our effective incentives for
producing renewable energy and replaces them with retrograde policies.
In this bill, the Democrats have created a $6 billion slush fund for
local projects in States and cities, with no safeguards to ensure that
the money is actually used to improve America's energy independence or
the environment. This is a blank check for so-called green pork
projects all over the country that mayors and governors can dole out
like candy on Halloween. But, Mr. Speaker, this is going to be no treat
for the American taxpayer.
In addition, the wind credit, one of our most proven and effective
sources of renewable energy, gets a substantial haircut in this bill
and is effectively, under current conditions, gutted. This legislation
is bad energy policy. It is bad tax policy.
Mr. Speaker, I would hope that our colleagues would join us today in
standing up for American manufacturers, for American consumers, and
stand up to preserve our domestic energy supply and guarantee our
energy future by voting this bill down.
Mr. Speaker, I reserve the balance of my time.
Mr. McDERMOTT. My prediction is correct. We are here to protect the
oil companies, and we are glad to see that.
I will just take one of your arguments, the American Wind
Association. You said, this is no use. They say ``strengthening our
Nation's energy security, revitalizing world economies and addressing
climate change are the central goals of the 110th Congress.'' Wind
energy is a large part of the answer. They are in support of this bill.
Mr. Speaker, I reserve the balance of my time.
Announcement by the Speaker Pro Tempore
The SPEAKER pro tempore. The Chair would remind all Members to direct
their remarks to the Chair.
Mr. ENGLISH of Pennsylvania. Mr. Speaker, I yield 2 minutes to the
distinguished minority whip of the House (Mr. Blunt).
Mr. BLUNT. I thank the gentleman for yielding.
Mr. Speaker, I think you will be able to characterize our remarks in
one of two ways: One is that we are continuing to encourage domestic
exploration; the other is we are trying to do things that reach energy
independence.
Following up on the bill that moved us toward energy independence
that was passed in 2005 would have been a good idea. The efforts to
have an energy bill this year are a good idea. But this bill imposes
taxes double that already passed in H.R. 6. This would hurt our
investment in energy independence and domestic supply. I don't have
very many people in my district at all or in our State that are in gas
and oil production. Almost everybody in our State that buys anything is
in gas and oil purchasing.
Things that raise gas prices, things that don't allow us to fully
utilize our resources, things that continue to make us more and more
dependent on parts of the world that don't like us can't be a good
idea. There is nothing wrong with buying things from people who don't
like you, but there is something really dumb about having to buy things
from people who don't like you. We are still in that mode today. This
bill heads us more in that direction.
The incentives for many conservation measures are allowed to expire
in this bill. I see my good friend with a bicycle on his lapel. I note
that there is a tax benefit to pay people to bicycle to work. He would
argue, I suppose, that we don't have enough people in southwest
Missouri that bicycle to work, because we have almost no people that
bicycle to work. We have lots of people that drive 50 and 60 miles to
get to good manufacturing jobs, and they are not going to ride a
bicycle there. They don't need more expensive gasoline to get there.
Mr. Speaker, we need to move toward energy independence. This bill,
regretfully, moves us toward energy dependence.
Mr. Speaker, I urge my colleagues to vote ``no.''
Mr. McDERMOTT. The gentleman from Missouri should stay and listen.
The fact is that 36 of your Members voted for H.R. 6 because we were
closing a loophole which was never designed for the oil companies. It
was to deal with the World Trade Organization.
Mr. Speaker, the gentleman from Missouri says that we are taking
money somehow and doing bad things with it. He forgets that this issue
was to deal with FSC, and, lo and behold, the oil companies slipped in
under the door. They were never eligible for FSC before, but the
chairman of the Ways and Means Committee allowed them in in the last
Congress. They have been taking their profits and just going hell-bent
for leather.
We are taking it back from them. I am sure they are upset about it.
But it is more important that we use that money for alternative energy,
both in production of new energy sources and in conservation.
Mr. Speaker, I reserve the balance of my time.
Mr. ENGLISH of Pennsylvania. Mr. Speaker, it is now my privilege to
yield 2 minutes to the gentleman from California (Mr. Herger), a
distinguished member of our committee.
Mr. HERGER. Mr. Speaker, every time I visit with constituents, like
most of you here in Congress, I hear about high gas prices. And they're
right. Gas prices are too high. Prices in our free market are governed
by supply and demand. Record high prices result from, among other
things, the fact that we don't produce enough of our own supply
domestically and are therefore at the mercy of unpredictable and often
unstable foreign producers.
Thirty years ago, when we had our first oil crisis, we were dependent
on
[[Page H9938]]
foreign sources of oil for only about one-third of our supplies. Today
it is roughly two-thirds of our supply. A sure way to fix this
situation is to encourage environmentally safe oil exploration and
production here in the United States.
But this is the opposite of what today's legislation seeks. In fact,
today's bill proposes to raise taxes on domestic oil and gas
exploration by nearly $12 billion. This discourages investment in U.S.
supplies and will, over time, increase our dependence even more on
foreign sources of fossil fuels.
Mr. Speaker, I encourage my colleagues to vote against higher gas
prices and against H.R. 2776, this ill-conceived energy legislation.
Mr. McDERMOTT. Mr. Speaker, I yield 1 minute to the gentleman from
California (Mr. Farr).
(Mr. FARR asked and was given permission to revise and extend his
remarks.)
{time} 1830
Mr. FARR. I thank the gentleman for yielding.
Mr. Speaker, I would like to rise after my colleague from California
as a fellow Californian and tell him he is dead wrong. This is the best
bill you could ever have for investment in California. We are booming
with energy alternatives. And do you know what we have done? We have
banned offshore oil. The public in California does that unanimously. We
are not about oil in California; we are about investment in the future.
This bill allows the utility companies, which now every utility
company in California gives a rebate. There are companies in California
that are buying cars for their workers if they are hybrid cars. This
allows the incentive to be increased, doubled, tripled.
This is about investment, and I just totally disagree with my
colleague on the other side of the aisle. It is not about looking at
the future through the rearview mirror; it is about investment. That is
what this bill is all about. This is the best gift you could ever have
in the tool box to help California grow economically.
I ask for an ``aye'' vote on this bill.
Mr. ENGLISH of Pennsylvania. Mr. Speaker, I reserve the balance of my
time.
Mr. McDERMOTT. Mr. Speaker, I reserve the balance of my time.
Mr. ENGLISH of Pennsylvania. Mr. Speaker, I yield 2 minutes to a
distinguished member of our committee, the gentleman from Michigan (Mr.
Camp).
Mr. CAMP of Michigan. Mr. Speaker, this bill is a missed opportunity.
In Michigan, where the average price of gas is 12 cents higher than the
national average, energy prices are a sore subject. Gas prices are too
high, the U.S. is too dependent on foreign oil, and yet the majority
party refuses to allow expanding our domestic supply of energy sources.
This bill misses the mark. H.R. 2776 is certainly creative in how it
spends taxpayer dollars. Under this legislation, $6 billion will be
given away to States for just about any project that has the word
``energy'' in it.
Republicans in the Ways and Means Committee debated this new spending
scheme at length during the bill's markup. During that debate, we found
out that States could use taxpayer money to buy hybrid Lexuses for
State employees, construct indoor rainforests, distribute complimentary
copies of Al Gore's ``An Inconvenient Truth'' in every classroom, or
hand out energy-efficient light bulbs.
In my view, the new tax credit bond programs this legislation creates
will fail to do anything to secure our Nation's energy independence
because there is no requirement that they reduce greenhouse gases or
increase energy production.
The bill, however, does have a few bright spots. It includes measures
I have supported on plug-in vehicles, solar energy and energy-efficient
programs for appliances and homes. I believe these initiatives have the
potential to have significant impact on energy conservation.
I am disappointed the underlying bill does nothing to promote hybrid
and advanced-technology diesel vehicles. In 2005 the Energy Policy Act
was enacted. It included legislation that provided tax credits to
consumers for the purchase of a new hybrid and advanced-technology
diesel vehicle. With this tax credit, Americans can knock hundreds or
thousands of dollars off the sale price of a clean fuel car or truck.
This bill does nothing to help consumers better afford hybrid or
advanced technology diesel vehicles.
In closing, I urge my colleagues to reject this flawed bill.
Mr. McDERMOTT. Mr. Speaker, I yield 1 minute to the gentleman from
Massachusetts (Mr. Neal).
Mr. NEAL of Massachusetts. Mr. Speaker, imagine Republicans today
saying that they don't trust local government and local decision-
making. As a former mayor, let me tell you, that is where much of the
great creativity and innovation takes place, in America's cities and
town halls.
There is an opportunity here to experiment. This is using a
Republican argument. What might work well in Arizona might not work
well in Connecticut, or vice versa. This is an opportunity to hear from
the mayors of America, to hear from the town halls, to hear from
legislative leaders and Governors. They are the people every day who
make important decisions.
Are Republicans saying at this moment they have contempt or mistrust
of local decision-making? That has been almost the phrase that they
have adopted for the last 25 years: ``turn decision-making back to
local government.'' There are different regional problems that demand
different regional solutions, and this offers the opportunity.
Lastly, our friend, the gentleman from Pennsylvania, said it was good
for the blogosphere. One thing we know about Republicans, if they
thought they could drill for oil in the blogosphere, they would give it
a go.
Mr. ENGLISH of Pennsylvania. Mr. Speaker, I yield myself 15 seconds.
As a former city controller, I look to a future time when I can bring
my friend from Massachusetts up to speed on why with good reason we
think there needs to be aggressive auditing and oversight of local
governments.
Mr. Speaker, I yield 2 minutes to the gentleman from Illinois (Mr.
Weller), a member of our committee.
Mr. WELLER of Illinois. Mr. Speaker, I reluctantly rise in opposition
to this legislation before us today. I generally enjoy working with
Chairman Rangel and my subcommittee chairman, Mr. McDermott, and Mr.
Neal, people I enjoy working with. But it is hard to support policy
that fails to include some good ideas. We should have a bipartisan bill
before us today, and the issue is this bill fails to build on the
successes of the 2005 energy bill.
The district that I represent south of Chicago, cities like Joliet, a
lot of rural communities, bedroom communities, was a big winner in the
2005 energy bill. Thanks to the incentives for wind and biofuels,
ethanol and biodiesel, we are seeing hundreds of millions of dollars of
new investment in wind energy and biofuels in the district that I
represent, thanks to the energy bill of 2005. I was hoping we would
build on that. I was also hoping that this legislation would include
good ideas about energy conservation.
We made one of the centerpieces of the 2005 energy bill incentives
for homeowners to make their home more energy efficient. It said that
about 20 percent of the energy we consume is consumed in our home, and
we included a tax credit for homebuilders as well as homeowners to
invest in better insulation and better windows and better roofs and
better heating and cooling technology, and they could save on that
investment and, in the long term, save on energy consumption.
It is estimated that today about 65 percent of U.S. homes are not
insulated adequately, according to Harvard. That same study said if
they were insulated properly, we would reduce the need to import 76
supertankers of crude oil from Saudi Arabia or Venezuela or some other
foreign country. So energy efficiency is a key part of our strategy for
energy independence. Also, because you are consuming less, you reduce
climate change.
We should have extended the tax credit for existing homes. We should
have extended the tax credit for new homes. Let's give tax incentives
to those who want to bring energy efficiency to home.
Mr. McDERMOTT. Mr. Speaker, I yield 1 minute to the gentlewoman from
Pennsylvania (Ms. Schwartz).
(Ms. SCHWARTZ asked and was given permission to revise and extend her
remarks.)
[[Page H9939]]
Ms. SCHWARTZ. Mr. Speaker, I stand here today to be not only
supportive, but enthusiastic about this legislation. It does very much
what we have all been talking about really actually for hours today,
about the fact that it embraces our ingenuity, our innovation and our
deep interest in energy efficiency and conservation and in new
technologies.
In fact, this legislation provides for tax credit bond financing, to
make sure that our cities and our States can move forward in helping
our people be able to do this. There are special provisions to make
sure that people can make sure their homes or residences are more
energy efficient. It uses tax credits to do that.
And there is a provision I have worked on particularly to make sure
that our largest commercial buildings can be the most energy efficient
that we know they can be. We know that giving them some tax incentives
to make sure that our commercial buildings are as energy efficient will
help us not only today, but for 50 and 75 years in the future.
So I support this legislation. I am proud of it. I think we have used
our public dollars in a very creative and important way.
Mr. Speaker, I rise in support of the Renewable Energy and Energy
Conservation Act.
This bill redirects $16 billion in oil industry tax giveaways into
the development of renewable energy and energy conservation--setting a
new direction for U.S. energy policy and putting the Nation on a path
to energy independence.
This new direction provides tax incentives for alternative sources of
energy--renewable, American-made sources, including wind, geothermal,
solar, fuel cells, and bio-diesel;
This new direction invests seriously in energy conservation,
providing tax incentives for energy efficient vehicles, energy
efficient buildings and energy efficient appliances;
And, this new direction empowers local and State governments, through
new tax credit bonds, to invest in local initiatives that reduce energy
use such as public transit, green buildings, and renewable energy
production;
We are serious about putting America's innovation and talents to work
to develop and distribute new sources of American-made energy for
American businesses and American families.
I am particularly proud that this bill contains a 5-year extension of
the energy efficient commercial building tax deduction, which I
proposed in my Buildings for the 21st Century Act.
The building industry can play an important role in enabling America
to meet its future energy needs by being models of energy efficiency.
Buildings account for 39 percent of total U.S. energy consumption and
71 percent of total U.S. electricity consumption.
We must take advantage of this moment to ensure that the next
generation of buildings are constructed to the highest efficiency
standards, and my proposal, contained in this legislation, which is
supported by the American Institute of Architects, the U.S. Green
Building Council, and the National Electrical Manufacturers
Association, will ensure that happens.
I urge a yes vote because this legislation recognizes our ingenuity,
innovation and technology as a Nation and moves the Nation forward
towards energy efficiency, conservation, and energy independence.
Mr. ENGLISH of Pennsylvania. Mr. Speaker, how much time is remaining
on both sides?
The SPEAKER pro tempore. The gentleman from Pennsylvania has 13\3/4\
minutes, and the gentleman from Washington has 22\1/2\ minutes.
Mr. ENGLISH of Pennsylvania. Obviously I am going to reserve the
balance of my time at this point.
Mr. McDERMOTT. Mr. Speaker, I reserve the balance of my time.
Mr. ENGLISH of Pennsylvania. Mr. Speaker, I reserve the balance of my
time.
Mr. McDERMOTT. Mr. Speaker, having the right to close, I will reserve
the balance of my time.
Mr. ENGLISH of Pennsylvania. Can the gentleman enlighten us on how
many speakers he has remaining, or is he prepared to close now?
Mr. McDERMOTT. At this moment, we haven't heard anything to respond
to. All we have heard is a defense of the insurance companies.
The SPEAKER pro tempore. The gentleman from Washington will suspend.
The gentleman from Washington reserves.
The gentleman from Pennsylvania is recognized.
Mr. ENGLISH of Pennsylvania. Then I reserve the balance of my time.
The SPEAKER pro tempore. The gentleman from Washington has the
opportunity to close.
The gentleman from Pennsylvania is recognized.
Mr. ENGLISH of Pennsylvania. Mr. Speaker, is he prepared to close
then?
The SPEAKER pro tempore. The gentleman from Washington has reserved
his time, as is his prerogative.
The gentleman from Pennsylvania is recognized.
Mr. ENGLISH of Pennsylvania. Mr. Speaker, I yield 2 minutes to the
gentleman from Wisconsin (Mr. Ryan).
Mr. RYAN of Wisconsin. Mr. Speaker, this bill and the bill that just
passed before us is a fiscal Frankenstein. It is a typical pattern:
more budget gimmicks on spending, more tax increases.
Last week, a farm bill passed. Budget gimmicks, tax increases.
Earlier this week, the SCHIP bill passed. Budget gimmicks, tax
increases. Today, right now, these energy bills are passing. What are
they? Budget gimmicks, tax increases.
Right now, the bill that just passed before had $6 billion in savings
that were used last week in last week's farm bill, all to give the
appearance that the majority is keeping their word on their PAYGO.
More importantly, these bills, in addition to their budget gimmicks,
raise taxes on consumers. This will cost our constituents at their
pocketbooks and at the pump.
The worst part of this bill, I think, aside from the fact that it
seeks to pick winners and losers in the marketplace, to do nothing,
nothing, to reduce our dependence on foreign oil, to reduce our
independence, it has $6 billion of walk-around money, of green pork,
for large city mayors and Governors. No accountability. Just as long as
it is in the spirit of green, in the spirit of, you know, energy, you
get the money.
Every time we have ever built a new program before, as this one does,
you have example after example of waste, fraud and abuse. It doesn't do
a thing to help the environment, it doesn't do a thing to help our
fiscal balance sheet, but it does everything to create a new program
that wastes money, that requires higher taxes.
We are seeing a consistent pattern here: more spending gimmicks and
more tax increases. These tax increases will raise prices. They will
raise prices on energy. They will raise gas prices.
This is a missed opportunity, and the missed opportunity is we could
have worked together to make ourselves less dependent on foreign oil,
do a better job on energy conservation, and advance the cause for
renewables.
Sadly, this does not do it, because it is more budget gimmicks and
spending increases.
Mr. McDERMOTT. Mr. Speaker, I yield 2 minutes to the gentleman from
Oregon (Mr. Blumenauer).
Mr. BLUMENAUER. Mr. Speaker, while I agreed with my friend from
Wisconsin about the farm bill, he could not be more wrong when it comes
to what is happening here on this energy legislation.
First and foremost, it is not just the appearance of PAYGO. We are
rolling up our sleeves and actually funding this legislation, instead
of the borrow-and-spend policies that we have seen the other side of
the aisle practice for the last 12 years. We have a bipartisan ``pay-
for'' that was approved in the first hours of this session, closing an
unnecessary loophole that was snuck in in the last session of Congress.
The notion about picking winners and losers is also wrong. With the
leadership our Chair of the select committee, Mr. Neal, we had
extensive hearings to listen to what happened across-the-board in terms
of alternative energy. We have rationalized how they are treated for
subsidizing wind, for solar, for biomass, for wave energy, a whole
range of alternative energy sources.
We are not picking winners and losers. We are extending tax
subsidies, and we are treating them all fairly to let the marketplace
act. We are increasing the supply of energy. By providing incentives
for domestic production of alternatives it is going to make a huge
difference. And we are relying on the energy and activity of cities and
States across the country that are far ahead of the Federal Government
when it comes to dealing with global warming, with dealing with energy
efficiency. We have at least 612 cities that have already initiated
their own Programs of Kyoto compliance. We are
[[Page H9940]]
providing some resources to help them do something about it.
Last, but not least, we are closing the egregious loophole that had
the Federal Government subsidize the purchase of the largest, most
energy-inefficient luxury cars. We have closed that hummer loophole. We
are instead using this money to provide opportunities for using
smaller, more fuel efficient vehicles; and we are subsidizing plug-in
hybrids, a very good trade off.
Mr. ENGLISH of Pennsylvania. Mr. Speaker, it is my privilege to yield
2\1/2\ minutes to the gentleman from Texas (Mr. Brady), a member of our
committee.
Mr. BRADY of Texas. Mr. Speaker, this bill does do some good things,
no question. It does focus on renewable energy, providing incentives
for plug-in hybrid vehicles. It encourages energy-efficient homes and
appliances in buildings. All of that is very good. We need to be more
green as a country, and we need to have a balanced portfolio. Without
question. But this is, I think, an extreme way, in some ways even a
vindictive way, to achieve it.
In this bill, we create a tax on suburban moms for buying Explorers
to take their children around town. We punish American companies for
creating jobs here in America. We punish them for creating energy here
in the United States.
There are 1.8 million jobs related to energy. What this bill does is
encourage outsourcing. It actually decreases production in the U.S. of
oil and gas and punishes companies for investing in the United States,
a tax break that was not singled out for oil and gas. In fact, 73
Democrats on this floor supported the investment in new manufacturing
and new investment in the United States.
This bill increases dependence on foreign oil; cripples America's
fledgling biodiesel industry. It kills a major renewable diesel
problem. There is no nuclear, no hydrogen, no new refineries, no
transmission lines, no coal-to-liquid, no clean coal technology.
But it does have a study on the carbon footprint of the American Tax
Code, which surely ranks just below suing OPEC as an effective way to
lower prices.
Whether you call this a ``$6 a gallon gas'' bill, a ``hug Hugo
Chavez'' gas bill, a ``less energy'' tax bill, the fact of the matter
is we all want a new direction. But we want a new direction away from
higher prices. We want a new direction away from dependence on foreign
oil.
The truth is, we have to get serious about lessening our dependence
on foreign oil. Light bulbs alone won't do it. New production of oil
and gas, along with these new renewables, will.
Mr. McDERMOTT. Mr. Speaker, I yield 30 seconds to the gentleman from
Oregon (Mr. Blumenauer) to answer the arguments presented.
Mr. BLUMENAUER. Mr. Speaker, my good friend from Texas doesn't
understand, I fear, how the Hummer loophole works. It is not the
suburban mom running around with their kids in a Hummer or a Cadillac
Escalante. It only is for business use that the Hummer loophole
applies.
We are closing it for business use, so there is not an extra
incentive for somebody to buy the largest, most fuel inefficient
vehicles, and gives them a tax break that they won't give to somebody
who buys a Ford Taurus.
{time} 1845
Mr. McDERMOTT. Mr. Speaker, I yield 2 minutes to the gentleman from
Texas (Mr. Doggett).
Mr. DOGGETT. Mr. Speaker, with the passage of the energy bill just
approved and the passage of this energy bill today, we move America in
a historic direction, a new direction on energy, not just away from our
overdependence on fossil fuels, but away from our overdependence on
fossilized ideas like those that have dominated this House for the last
12 years.
One of those fossilized ideas is that it is okay to keep borrowing
from our grandchildren. So today the reason that we hear talk about
higher taxes on a bill that is basically revenue neutral, that doesn't
borrow from our grandchildren and doesn't raise significant new
revenues, but rather restricts and evaluates our tax credits to
determine how they can be most effective, is that they don't understand
this new kind of thinking.
Just as they favored foreign corporations over farmers last week,
today they favor fossilized energy over new energy and energy
independence.
You know, going green is not just about securing a healthy planet to
raise our children. It is creating opportunities for jobs and economic
development in biodiesel and in renewable energy like solar and
geothermal power. New technologies bring new opportunities. A new class
of jobs are being created, neither blue collar nor white collar but
green collar jobs of many types from green energy.
It is a matter of recognizing that some boondoggles come along, like
where a oil company decides it will drop a little dab of grease in its
petroleum byproducts in order to claim a renewable biodiesel tax credit
and destroy a new emerging industry like our biodiesel companies and
our biofuels companies that are helping us become energy independent.
So this is a bill about jobs and about evaluating the
oversubsidization of a fossil fuel industry and moving to new energies,
biodiesel, recognizing the power of solar power, plug-in hybrids,
recognizing that we can become the leaders in the world in green jobs,
green collar jobs. This bill offers us a chance to lead on green
energy, not become green with envy as other countries leap over us.
Mr. ENGLISH of Pennsylvania. Mr. Speaker, I yield 30 seconds to the
gentleman from Texas (Mr. Brady).
Mr. BRADY of Texas. Mr. Speaker, we are told this bill is fully paid
for and is fiscally responsible. But how many times have we seen this
same tax break on the floor supposedly paying for another bill? Is it
the second time, third time? I don't mind double-counting, but there is
something offensive about triple-counting. I think that is what got
Enron in trouble in the first place.
Today we are using this as an excuse to raise taxes and cut jobs and
cut energy production here. It is not fiscally responsible.
And by the way, the tax on SUVs is not Hummers. It is above $15,300,
and that is a lot of Explorers and a lot of small business vehicles.
Mr. McDERMOTT. Mr. Speaker, I yield to the gentlewoman from Nevada
(Ms. Berkley) for a unanimous consent request.
(Ms. BERKLEY asked and was given permission to revise and extend her
remarks.)
Ms. BERKLEY. I thank the gentleman for yielding.
Mr. Speaker, I rise today in support of energy independence, national
security and weaning ourselves off of Middle Eastern oil.
It is sheer madness that--6 years after
9/11--we still rely on unstable and dictatorial regimes like Saudi
Arabia to feed our oil habit. They have shown time and time again that
they care nothing for international peace, peace in the Middle East or
helping us find a solution for the debacle in Iraq: We know they use
our oil dollars to fund terrorist organizations like Hamas, and Sunni
insurgents in Iraq. And yet we still send them billions of dollars a
year in oil revenues, because we are so dependent on their oil to fuel
our energy needs.
We are funding both sides of the war on terror. No country on Earth
has ever successfully fought a war against itself. This bill is a step
in the right direction by funding alternative, clean energies that will
set America on the path to energy independence.
With Mr. Rangel's leadership, my colleagues and I on the Ways and
Means Committee have expanded and extended the tax credits for plug-in
hybrid vehicles, cellulosic alcohol, ethanol and biodiesel.
This package also promotes alternative fuels by providing assistance
for the installation and conversion of E-85 fuel pumps and the
production of flex-fuel vehicles that run on renewable fuel. Another
provision encourages the domestic development and production of
advanced technology vehicles and the next generation of vehicle
batteries and plug-in hybrid vehicles.
Our addiction to oil has gone on long enough. It is time we declare
independence by harnessing the Sun, wind, geothermal, biomass and other
clean renewable technology, so that future generations of Americans
won't have to rely on our enemies to satisfy our energy needs.
Mr. McDERMOTT. Mr. Speaker, I yield myself such time as I may
consume.
I'm sorry, it seems like the gentleman from Texas has forgotten what
happened in the early hours of this session. We passed H.R. 6; 36 of
your Members voted for it, to close the tax, to
[[Page H9941]]
set the money aside to be put into this bill when we decided what were
reasonable uses of that money. It has never been used before. This
funding source has not been used ever on this floor before, so you are
incorrect in your assertion.
Mr. Speaker, I reserve the balance of my time.
Mr. ENGLISH of Pennsylvania. Mr. Speaker, I yield 2 minutes to a
member of our leadership, who is also a member of our committee, the
gentleman from Virginia (Mr. Cantor).
Mr. CANTOR. Mr. Speaker, I rise in opposition to this bill. Frankly,
I think that the American people are looking for some common sense when
we talk about an energy plan. I don't think there is any disagreement
among my colleagues in this House that we certainly ought to be looking
at ways to diversify our energy sources. There is no question.
But I think that the imperative, and that most Americans would agree,
that we must first look to securing our energy independence. I would
dare say there aren't many experts out there who would predict that we
can establish our energy independence through the tax benefits allowed
through this bill.
I think most Americans would agree we do have a fossil fuel economy.
And given the instability around the globe today, it is imperative that
we do all we can to support our domestic production industries so that
we do not, do not find ourselves on the receiving end of the global
pricing structure or from other countries that we rely on for our
global energy supplies.
With that, I would posit, Mr. Speaker, that $14 billion in taxes on
our production industry will do so much to damage the incentive to see
an increase in domestic production, much less do anything to help our
constituents and the people of this country when they go to the pump
and see prices nearing $3 a gallon.
So I don't see the common sense in this bill. My colleagues have
already talked about the $6 billion in taxpayer funds that are going to
flow to localities unfettered. These are taxpayer dollars. These are
not our dollars. This kind of allocation of funds deserves some
transparency. This reminds me of some of the hidden funds that we see
in many of the other bills, and that somehow this money is going to
show up and add to our energy independence.
Mr. McDERMOTT. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, the gentleman just made some arguments. He said the
country is like a supertanker and we are heading for the rocks and we
shouldn't change the direction. No, no, no, we should keep going right
straight into the rocks.
Now if you want to criticize this bill for not doing enough, I will
go along with you, and I think there are many other Members on our
side. But our problem is we can't seem to get any help from the other
side to turn the wheel even a half inch. They say oh, if you take money
away from the oil industry; they don't want to pay for anything, Mr.
Speaker. They simply want to run on the rocks and the Democrats are not
going to run this country onto the rocks.
We are going to change the direction we are going with energy. This
bill is not the answer to everything. It is not as much as it should be
or could be, but we are going in the right direction.
Mr. Speaker, I reserve the balance of my time.
Mr. ENGLISH of Pennsylvania. Mr. Speaker, how much time remains on
both sides?
The SPEAKER pro tempore. The gentleman from Pennsylvania has 7
minutes remaining. The gentleman from Washington has 16\1/2\ minutes.
Mr. ENGLISH of Pennsylvania. Mr. Speaker, is it not generally the
obligation of the Chair to invite the two sides to even up time to some
extent?
The SPEAKER pro tempore. Does the gentleman from Washington seek
recognition?
Does the gentleman from Pennsylvania seek recognition?
Mr. ENGLISH of Pennsylvania. I will defer to the gentleman.
Mr. McDERMOTT. Mr. Speaker, is closing the right of the majority?
The SPEAKER pro tempore. The gentleman is correct.
Mr. McDERMOTT. I reserve the balance of my time to close.
Mr. ENGLISH of Pennsylvania. Mr. Speaker, do I understand the
gentleman is now prepared to close?
The SPEAKER pro tempore. Does the gentleman from Pennsylvania seek to
yield time?
Mr. ENGLISH of Pennsylvania. Mr. Speaker, is it our understanding
that the gentleman is prepared to close?
The SPEAKER pro tempore. Does the gentleman yield to the gentleman
from Washington to ask a question?
Mr. ENGLISH of Pennsylvania. Mr. Speaker, I would hope I wouldn't
have to yield any time to determine this.
The SPEAKER pro tempore. The gentleman from Washington has the right
to close.
Mr. ENGLISH of Pennsylvania. Is the gentleman prepared to close?
The SPEAKER pro tempore. It is the prerogative of the gentleman from
Pennsylvania to yield time to the gentleman from Washington to inquire
as to that.
Mr. ENGLISH of Pennsylvania. Very well. I will yield 5 seconds.
Mr. McDERMOTT. No, I'll take my own time. I'm prepared to close.
Mr. ENGLISH of Pennsylvania. Mr. Speaker, in that case, I would like
to yield 3 minutes to one additional speaker, a gentleman who I think
has proven himself in this particular policy area for many years, and I
think a good Democrat, the gentleman from Texas (Mr. Gene Green).
(Mr. GENE GREEN of Texas asked and was given permission to revise and
extend his remarks.)
Mr. GENE GREEN of Texas. Mr. Speaker, I thank the gentleman. And if I
had known we had so much time on our side, Jim, I would have asked you
for time.
Mr. Speaker, I begin by stating how disappointed I am to come to the
House floor today and speak against one of this Congress's first major
energy initiatives. It pains me because I truly support the bill's
goals of promoting clean, domestic, renewable energy.
What I disagree with is how this Congress chooses to pay for these
worthy initiatives. I understand we have a budget deficit and funds for
new alternative energy programs are in short supply, but like a broken
record, this Congress continues to raid the piggybank of America's
energy producers.
Now I know it makes great press releases to say this Congress is
taking away the record profits of big oil to invest in renewable
energy. But are we drafting press releases or are we drafting sound
policy?
Earlier this year, I stood on the floor and supported H.R. 6, the
Clean Energy Act, which included many of the same tax provisions as the
bill today, and I encouraged my colleagues at that time to do the same.
While I had concerns, it could reduce incentives for domestic
production, the bill did not include more punitive measures that could
destabilize our Nation's gasoline supply even further.
As a show of good faith during that critical 100 hours for our new
majority, I voted for that bill. But I expressed my support for H.R. 6
on the floor concluding with my remarks with one important message: If
we hit one industry for billions and billions of dollars, you can't go
back for more and more and expect enough gasoline for our cars and fuel
to heat and cool our homes.
Only 6 months later, here we are again, only this time we are almost
doubling the amount of taxes on U.S. oil and gas companies. I am not
here to protect the interest of big oil, I am here to protect the
interests of the American consumer who relies on those critical energy
supplies. And I'm here to protect the jobs of U.S. workers.
Neither of these interests are advanced if we in Congress continue to
view America's energy industry as the ATM for Congress.
Everyone agrees we must invest more in renewable sources of energy,
but this isn't a buffet. We don't have the luxury to pick and choose
which energy resources our Nation will rely on. The Energy Information
Administration predicts that natural gas, oil and coal will comprise
approximately the same share of our total energy supply in 2030 as it
did in 2005, even with the new investments for renewable energy. That
is why our Nation's energy security requires tax policies that promote
greater supplies of these fuels, not policies that hinder domestic
production and refinery capacity.
[[Page H9942]]
H.R. 6 included tax provisions that brought in $7.7 billion, mostly
from the section 199 repeal. That same section now scores $11.4. In
only 6 months, the same proposal has increased in cost by an additional
$4 billion.
This large increase in new taxes targeted at the U.S. energy industry
will reduce our Nation's energy security by discouraging domestic oil
and gas production, discouraging new investments in refining capacity,
and actually tilting the competitive playing field for global energy
resources against U.S.-based oil and gas companies.
I've heard many Members of this chamber preach to the energy industry
on the need to reduce the cost of gasoline for consumers and invest
more in refinary capacity.
Can anyone tell me how increasing their taxes could possibly
accomplish these twin goals?
From 1992-2006 the five major oil companies invested $765 billion in
new capital energy infrastructure, compared to their net income of $662
billion.
These companies invested more than they earned, and less money in
their coffers means less money for critical infrastructure investments.
And finally, let's talk about jobs. In the United States, there are
almost 1.9 million Americans directly employed in the oil and natural
gas industry and almost 6 million total U.S. jobs resulting from oil
and gas activity when indirect and other employment is considered.
Increasing costs on the domestic oil and gas industry, and on U.S.
based oil and gas companies operating abroad, will jeopardize these
highpaying jobs.
So before this Congress makes yet another ATM withdrawal from the oil
and gas industry, let us not ignore the big picture of ensuring
Americans have a stable supply of energy to help move us towards our
long term goals of cleaner energy sources.
I urge my colleagues to vote for sound energy policy and vote against
this bill.
Mr. ENGLISH of Pennsylvania. Does the gentleman have any additional
speakers?
Mr. McDERMOTT. No. I reserve the balance of my time.
Mr. ENGLISH of Pennsylvania. I yield 1 minute to the gentleman from
Texas (Mr. Gohmert).
Mr. GOHMERT. Mr. Speaker, I thank my friend from Pennsylvania.
We are told this is a new direction. This isn't a new direction. This
isn't new thinking. We saw it 30 years which brought gas shrines. We
saw it 30 years ago, and it brought us gas lines. We had a chance in
this bill to fix a lot of problems.
We lost in my district, down in Lufkin, Texas, home of Charlie
Wilson, we lost nearly 1,000 hardworking union jobs because natural gas
was too expensive. We have lost a whole bunch more, and are in danger
of losing more in Longview because natural gas is too high. We could
have addressed that and fixed that.
But I guess the good thing that came out 30 years ago was that the
gas lines and the problems that arose and the high gas prices brought
us Ronald Reagan, and people's memories have waned some.
But this is Saturday, and there are not many people watching, but
please note that when the policies in this bill end up helping gas run
up to $5 a gallon--yes, it will help alternative fuels, but we would
have gotten there eventually anyway. But please note that when it gets
to $5 a gallon and more people, including union people, are losing
their jobs, they will ultimately note and voters will long remember.
So long live gas lines and Jimmy Carter's legacy.
{time} 1900
Mr. ENGLISH of Pennsylvania. Mr. Speaker, how much time do we have
remaining?
The SPEAKER pro tempore. The gentleman from Pennsylvania has 3
minutes remaining.
Mr. ENGLISH of Pennsylvania. And may I confirm again that the
gentleman is prepared to close?
Mr. McDERMOTT. Yes.
Mr. ENGLISH of Pennsylvania. Thank you. In that case, I yield the
balance of our time to a member of the Ways and Means Committee and the
ranking member of the Budget Committee, the gentleman from Wisconsin
(Mr. Ryan).
Mr. RYAN of Wisconsin. Mr. Speaker, I appreciate the gentleman
yielding.
I rise in opposition to this for a number of reasons. Does anybody on
Earth think that by raising taxes on oil and gas that we're not going
to raise prices on oil and gas? Does anybody believe that we're not
going to raise gas prices with this bill? Does anybody believe that
we're not going to make it more expensive for people to heat their
homes? Does anybody believe we're not going to make us more dependent
on foreign oil? That's what this bill does. This bill raises gas
prices, makes it more expensive for us to heat our homes, make us more
dependent on foreign oil, and less competitive internationally.
It could have been a good bill. It could have done more to make us
less dependent on foreign oil. It could have helped us do more to make
us energy independent, renewable. And why are we raising all these
taxes? So we can come up with a new pork barrel spending program to
give to big cities to spend as they wish.
Why on Earth would we do that when we're going to make our
constituents pay higher gas prices? The intentions are noble. The
delivery is bad. This policy has been tried before, and it has failed.
I urge defeat of this bill because it is a missed opportunity. It's a
missed opportunity to a real bipartisan success, like we had in the
Energy Policy Act of 2005, where we invested in hydrogen, in renewable
energy, in conservation and, yes, in more domestic production. That's
what we should do. You can't do one and not the other.
We need to produce more energy here so we're less dependent on
foreign oil. That's very important. This does none of that. It goes in
the wrong direction.
We need to incentivize conservation. There's some conservation
incentives here. We need to do more on renewables and do it in such a
way where it's not picking winners and losers; where the best
technology gets funded. Sadly, this bill says we're going to pick this
technology and not that technology, and by doing so, we're hurting
tomorrow's breakthroughs, tomorrow's innovations.
What we really ought to do is make us less dependent on foreign oil,
lower gas prices, lower home heating costs, more conservation, and not
pick winners and losers, and incentivize tomorrow's breakthroughs so
the genius of America can continue to expand and come up with those new
technologies we never heard of before.
Sadly, this prevents that from happening. It disincentivizes that. I
urge a ``no'' vote because we shouldn't be raising taxes, doing budget
gimmicks and making it more expensive for us to take our kids to
school, to go to work and heat our homes.
Mr. McDERMOTT. Mr. Speaker, I yield myself such time as I may
consume.
This is really a defining moment for the Congress, Mr. Speaker, and
how we vote will define whether we embrace the future or cling to the
past that is destroying us.
Now, the last speaker talked about somehow, if we take back some of
the obscene profits from the oil industry and use it to develop
alternative energy and to invest in conservation measures around this
country, that that will be the end of the Western World as we've known
it. Between 2004 and 2006, oil companies experienced profit increases
of an average of 62 percent, some of them as high as 117 percent. Now,
oil profits, in the dictionary, that would be obscene, and anybody who
thinks we're destroying the oil industry here simply is unwilling to
look at the facts.
Supporting this energy legislation is really a vote to move toward
our national security because our addiction to oil makes us vulnerable
to foreign countries and keeps our soldiers fighting and dying in Iraq.
No one here in this House still believes that oil wasn't a major reason
why we went into Iraq.
Supporting this energy legislation is a vote to strengthen America's
domestic economy because our addiction has made the American people
vulnerable to punishing and unrelenting price shocks. We didn't start
the increase in prices in energy. Gasoline prices weren't started in
here by raising taxes. If you think that the oil companies, I don't
know if there's anybody in this country who thinks that the Congress is
what makes the oil prices go up, the gasoline prices.
Now, supporting this energy legislation is also a vote to save our
planet,
[[Page H9943]]
because addiction to oil has placed us on a collision course with
global warming. Every witness who came before the Ways and Means
Committee, whether they were called by the Republicans or the
Democrats, agreed that global warming is something we must deal with.
The arguments I hear are not about whether there is global warming. The
question is how should we deal with it how quickly, what's the best
way.
Now, you either turn back now and we will face economic calamity and
planetary catastrophe, that's a choice you guys can make, or turn back
now and we fail the American people in our global responsibility.
The choice is very clear. The choice is really easy, and the need is
urgent for our children, for our grandchildren, for the planet.
I ask all the Members to support this legislation.
Mr. LEWIS of Georgia. Mr. Speaker, I rise today in support of greater
energy efficiency. I read an article recently about the residents of
Gudda, a small village in India, who are harnessing the Sun's power to
bring light into their homes when the Sun sets. This tiny village has
nothing; no power lines to bring electricity, no real roads for
vehicles to bring food and supplies, water is scarce, and yet this
village has easily succeeded to make use of alternative energy. Gudda
has shown that being green is easy and can be done by anyone!
The time has come for America to lead the world in the fight against
climate change and in protecting our environment. We must not delay as
we move toward energy independence.
Alternative energy means new jobs for Americans, lower energy costs
and more technology that we can export to other countries. This
legislation does more than fight global warming and protect our
environment, it will strengthen our economy and make the United States
the leader in providing alternative energy.
Let's show the world that the United States cares about global
warming and is willing to do something about it. Let's show the world
that our talent and technology will improve lives around the world.
Let's vote for this bill today.
Mr. NEAL of Massachusetts. Mr. Speaker, I rise today to support an
energy bill that puts our country on a greener energy path. The tax
provisions will expedite the adoption of green energy from solar, wind,
biofuels, geothermal and other environmentally friendly sources.
The $16 billion energy tax package helps energy stakeholders and
communities to invest in renewable sources as well as energy
conservation and efficiency.
One of the new and more progressive tax provisions is an energy
conservation bond program which helps municipalities finance
conservation projects that reduce greenhouse gas emissions.
Massachusetts stands to receive over $76 million through this program
and since the largest cities and counties are given priority in this
program, Springfield, Massachusetts, would be eligible for $1.8 million
in bonding authority helping to lead the way to a greener
Massachusetts.
Mr. Speaker, this legislation takes an innovative approach to new
technologies and ideas to promote greener energy. The incentives are
not narrowly focused on energy industry players alone. Consumers are
also given incentives to make energy-efficient investments in their
homes and properties, which represents a holistic approach to lessening
our reliance on fossil fuels and towards a greener, cleaner America.
Mr. STARK. Mr. Speaker, I rise today in support of ending senseless
tax breaks and subsidies for giant oil and gas companies and making
needed investments in clean energy and efficiency. Although I support
the energy package before us today, I urge my colleagues to realize
that this is a small, first step. There is a tremendous amount of work
to be done to confront global warming and shift our nation away from
our addiction to fossil fuels.
Today we have an opportunity to greatly increase energy conservation
by setting new efficiency standards for appliances and promoting
carbon-neutral green buildings. These two steps will prevent as much as
10 billion tons of carbon dioxide from entering the atmosphere. In
addition to these measures, I strongly support the Udall-Platts
amendment to establish a Renewable Electricity Standard, which will
ensure that 15 percent of our electricity is produced through renewable
sources by 2020.
In 2006 the top five oil companies raked in record-breaking profits
of over $119 billion. As President Bush himself has admitted, there is
no need to give oil companies taxpayer-funded subsidies when the price
of oil is at or near all time highs. I support the tax portion of the
package that ends $16 billion in tax breaks for companies like Exxon/
Mobil and closes the ridiculous loophole that has allowed business
owners a $25,000 deduction for purchasing a gaz-guzzling Hummer. The
savings generated are then invested in developing clean energy.
My support for the energy package is tempered by the fact that it
does not include any increase in our woefully out-of-date CAFE
standards. I am also troubled that we are continuing to subsidize corn-
based ethanol production. A simple shift from gasoline to ethanol will
do nothing to reduce greenhouse gas emissions, but it will eat up open
space and continue to drive up food prices.
Both bills make important progress and I urge my colleagues to
support them. However, larger changes, such as a carbon tax, are needed
if we are serious about stopping global warming.
Mr. THOMPSON of California. Mr. Speaker, my district--California's
First Congressional District--provides ample evidence of the importance
of renewable energy. My district is home to The Geysers, the largest
complex of geothermal power plants in the world--which can generate
enough energy to run over 750,000 homes. My district is also home to
California's best wine country and wineries that use solar systems to
generate all of their electricity.
This legislation extends and improves Federal incentives for
renewable energy production so that States across America can follow
California's lead.
We extend the tax credit for the production of biomass, geothermal,
wind, and many other types of renewable energy. We extend the solar
investment tax credit for 8 years providing long-term stability to that
industry. We expand existing and create new incentives for taxpayers to
make their homes and their businesses more energy efficient. And we
make an investment in technology known as ``smart meters''--tools that
will allow consumers to better manage their electricity usage during
peak hours.
I have some concerns with the language in this section that refers to
net metering, but I am confident that we can use the conference process
to clarify these specific provisions.
Mr. Speaker, this legislation makes a critical investment renewable
energy, and it does so without increasing the Federal deficit by a
dime.
The new Democratic Leadership has made a strong commitment to fiscal
responsibility and this legislation meets the rigorous Pay-As-You-Go
requirements of the 110th Congress.
I am proud of this investment in alternative energy and I urge an aye
vote on this legislation.
Mr. CONYERS. Mr. Speaker, today I rise in support of H.R. 2776. Every
day we see the effects of global warming and it is imperative the
Congress act on this critical issue. It is important that we continue
to improve our environment as we strive to fight the effects of global
warming. H.R. 2776 would implement tax incentives to encourage the
production of renewable resources and other energy efficient programs,
necessary measures towards fighting global warming. There are many
groups, businesses and trade organizations who join me in supporting
this bill including Greenpeace, General Electric, Friends of the Earth,
Public Citizen, Sierra Club, and Whirlpool.
H.R. 2776 will use tax credits and incentives to increase the use of
renewable and alternative fuels. It will extend the renewable energy
tax credit for those who choose to use renewable energy sources such as
wind facilities, hydropower, and marine renewable energies. The bill
will also continue providing the solar energy and fuel cell investment
credit by extending a 30 percent investment tax credit for 8 years.
Finally, this bill will provide tax incentives for renewable fuels such
as biodiesel, renewable diesel, celloslosic alcohol.
In addition, this legislation promotes the use of energy-efficient
products to reduce the Nation's consumption of energy. It provides tax
incentives for consumers to purchase energy efficient products such as
hybrid vehicles and to outfit workplaces with energy efficient
products. Manufacturers are also granted tax incentives encouraging
them to create energy efficient products. H.R. 2776 builds a
partnership between Federal, State, and local governments that would
provide local authorities the ability to raise interest free funds for
energy conservation programs in mass transit and green buildings.
Furthermore, H.R. 2776 will increase funding to encourage the
research and development of renewable energy. This bill provides
billions to States to give low interest loan programs to working
families to purchase energy-efficient appliances and energy-efficient
home improvements such as solar panels, insulation or geothermal heat
pumps. These energy saving improvements will dramatically reduce energy
consumption. This legislation also grants interest free loans for
research facilities and research grants for the development of
celloslosic ethanol, cleaner carbon dioxide, and automobile battery
technologies.
H.R. 2776 also repeals a tax loophole. The bill limits the ability of
oil and gas companies
[[Page H9944]]
to claim foreign tax credits, while leaving significant tax breaks
untouched. Yet, this provision has no impact on oil and gas production
in the United States, providing additional revenue to the U.S.
treasury.
Mr. Speaker, Southeast Michigan has been hit hard due to the Bush
administration's misguided trade policy. Governor Granholm unveiled a
21st century job initiative where billions of dollars will be invested
in developing new technologies and emerging industries. In my hometown
of Detroit, Next Energy, a 501 (c)3 organization that promotes
renewable energy, will directly benefit from these tax breaks because
they have made impressive strides in automotive and electric power.
I believe, this piece of legislation will directly contribute to
providing jobs to my constituents, end America's addiction to oil, and
hopefully transform the automotive industry. I urge my colleagues to
support H.R. 2776.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. All time for debate has expired.
Pursuant to House Resolution 615, the previous question is ordered on
the bill, as amended.
The question is on the engrossment and third reading of the bill.
The bill was ordered to be engrossed and read a third time, and was
read the third time.
Motion to Recommit Offered by Mr. English of Pennsylvania
Mr. ENGLISH of Pennsylvania. Mr. Speaker, I offer a motion to
recommit.
The SPEAKER pro tempore. Is the gentleman opposed to the bill?
Mr. ENGLISH of Pennsylvania. I am indeed, in its current form.
The SPEAKER pro tempore. The Clerk will report the motion to
recommit.
The Clerk read as follows:
Mr. English of Pennsylvania moves to recommit the bill H.R.
2776 to the Committee on Ways and Means with instructions to
report the same back to the House forthwith with the
following amendment:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF
CONTENTS.
(a) Short Title.--This Act may be cited as the ``Renewable
Energy and Energy Conservation Tax Act of 2007''.
(b) Amendment of 1986 Code.--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) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; amendment of 1986 Code; table of contents.
TITLE I--PRODUCTION AND INVESTMENT INCENTIVES
Sec. 101. Extension of renewable energy credit.
Sec. 102. Extension of energy credit.
Sec. 103. Expansion and modification of advanced coal project
investment credit.
Sec. 104. Expansion and modification of coal gasification investment
credit.
Sec. 105. Expansion of special allowance to cellulosic biomass alcohol
fuel plant property.
Sec. 106. Extension of alternative fuel vehicle refueling property
credit.
Sec. 107. Extension of biodiesel and renewable diesel used as fuel.
Sec. 108. Extension of energy efficient commercial building deduction.
TITLE II--TAX CREDIT BONDS
Sec. 201. Extension and modification of clean renewable energy bonds.
TITLE III--CONSERVATION INCENTIVES
Sec. 301. Extension and modification of credit for residential energy
efficient property.
Sec. 302. Extension of credit for hybrid motor vehicles and advanced
lean burn vehicles.
Sec. 303. Extension of nonbusiness energy property credit.
Sec. 304. Extension of new energy efficient home credit.
TITLE IV--REVENUE PROVISIONS
Sec. 401. Revision of tax rules on expatriation.
Sec. 402. Repeal of suspension of certain penalties and interest.
Sec. 403. Increase in information return penalties.
Sec. 404. Clarification that credits for fuel are designed to provide
incentive for United States production.
Sec. 405. Modification of limitation on automobile depreciation.
Sec. 406. Extension of coal excise tax levels.
Sec. 407. Bulk transfer exception not to apply to finished gasoline.
Sec. 408. Participants in government section 457 plans allowed to treat
elective deferrals as Roth contributions.
Sec. 409. Reducing REIT holding period safe harbor.
Sec. 410. Time for payment of corporate estimated taxes.
TITLE I--PRODUCTION AND INVESTMENT INCENTIVES
SEC. 101. EXTENSION OF RENEWABLE ENERGY CREDIT.
(a) In General.--Subsection (d) of section 45 (relating to
qualified facilities) is amended by striking ``January 1,
2009'' each place it appears and inserting ``January 1,
2010''.
(b) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 102. EXTENSION OF ENERGY CREDIT.
(a) In General.--
(1) Qualified fuel cell property.--Subparagraph (E) of
section 48(c)(1) is amended by striking ``December 31, 2008''
and inserting ``December 31, 2009''.
(2) Qualified microturbine property.--Subparagraph (E) of
section 48(c)(2) is amended by striking ``December 31, 2008''
and inserting ``December 31, 2009''.
(3) Solar property.--Paragraphs (2)(A)(i)(II) and
(3)(A)(ii) of section 48(a) are each amended by striking
``January 1, 2009'' and inserting ``January 1, 2010''.
(b) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment this Act.
SEC. 103. EXPANSION AND MODIFICATION OF ADVANCED COAL PROJECT
INVESTMENT CREDIT.
(a) Credit Rate Parity Among Projects.--Section 48A(a)
(relating to qualifying advanced coal project credit) is
amended by striking ``equal to'' and all that follows and
inserting ``equal to 30 percent of the qualified investment
for such taxable year.''.
(b) Expansion of Aggregate Credits.--Section 48A(d)(3)(A)
(relating to aggregate credits) is amended by striking
``$1,300,000,000'' and inserting ``$1,800,000,000''.
(c) Authorization of Additional Projects.--
(1) In general.--Subparagraph (B) of section 48A(d)(3)
(relating to aggregate credits) is amended to read as
follows:
``(B) Particular projects.--Of the dollar amount in
subparagraph (A), the Secretary is authorized to certify--
``(i) $800,000,000 for integrated gasification combined
cycle projects the application for which is submitted during
the period described in paragraph (2)(A)(i),
``(ii) $500,000,000 for projects which use other advanced
coal-based generation technologies the application for which
is submitted during the period described in paragraph
(2)(A)(i),
``(iii) $300,000,000 for integrated gasification combined
cycle projects the application for which is submitted during
the period described in paragraph (2)(A)(ii), and
``(iv) $200,000,000 for other advanced coal-based
generation technology projects the application for which is
submitted during the period described in paragraph
(2)(A)(ii).''.
(2) Application period for additional projects.--
Subparagraph (A) of section 48A(d)(2) (relating to
certification) is amended to read as follows:
``(A) Application period.--Each applicant for certification
under this paragraph shall submit an application meeting the
requirements of subparagraph (B). An applicant may only
submit an application--
``(i) for an allocation from the dollar amount specified in
clause (i) or (ii) of paragraph (3)(B) during the 3-year
period beginning on the date the Secretary establishes the
program under paragraph (1), and
``(ii) for an allocation from the dollar amount specified
in clause (iii) or (iv) of paragraph (3)(B) during the 3-year
period beginning at the earlier of the termination of the
period described in clause (i) or the date prescribed by the
Secretary.''.
(3) Capture and sequestration of carbon dioxide emissions
requirement.--Section 48A(e)(1) (relating to requirements) is
amended by striking ``and'' at the end of subparagraph (E),
by striking the period at the end of subparagraph (F) and
inserting ``, and'', and by adding at the end the following
new subparagraph:
``(G) in the case of any project the application for which
is submitted during the period described in paragraph
(2)(A)(ii), the project includes equipment to separate and
sequester 65 percent of such project's total carbon dioxide
emissions.''.
(d) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 104. EXPANSION AND MODIFICATION OF COAL GASIFICATION
INVESTMENT CREDIT.
(a) Credit Rate.--Section 48B(a) (relating to qualifying
gasification project credit) is amended by striking ``20
percent'' and inserting ``30 percent''.
(b) Expansion of Aggregate Credits.--Section 48B(d)(1)
(relating to qualifying gasification project program) is
amended by striking ``$350,000,000'' and inserting
``$500,000,000 (of which $150,000,000 shall be allocated for
qualifying gasification projects that include equipment to
separate and sequester 75 percent of such a project's total
carbon dioxide emissions)''.
(c) Eligible Projects Include Fischer-Tropsch Process.--
Section 48B(c)(7) (defining eligible entity) is amended by
striking ``and'' at the end of subparagraph (F), by striking
the period at the end of subparagraph (G) and inserting ``,
and'', and by adding at the end the following new
subparagraph:
``(H) transportation grade liquid fuels.''.
[[Page H9945]]
(d) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 105. EXPANSION OF SPECIAL ALLOWANCE TO CELLULOSIC
BIOMASS ALCOHOL FUEL PLANT PROPERTY.
(a) In General.--Paragraph (3) of section 168(l) (relating
to special allowance for cellulosic biomass ethanol plant
property) is amended to read as follows:
``(3) Cellulosic biomass alcohol.--For purposes of this
subsection, the term `cellulosic biomass alcohol' means any
alcohol produced from any lignocellulosic or hemicellulosic
matter that is available on a renewable or recurring
basis.''.
(b) Conforming Amendments.--
(1) Subsection (l) of section 168 is amended by striking
``cellulosic biomass ethanol'' each place it appears and
inserting ``cellulosic biomass alcohol''.
(2) The heading of section 168(l) is amended by striking
``Cellulosic Biomass Ethanol'' and inserting ``Cellulosic
Biomass Alcohol''.
(3) The heading of paragraph (2) of section 168(l) is
amended by striking ``cellulosic biomass ethanol'' and
inserting ``cellulosic biomass alcohol''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
the enactment of this Act.
SEC. 106. EXTENSION OF ALTERNATIVE FUEL VEHICLE REFUELING
PROPERTY CREDIT.
(a) In General.--Paragraph (2) of section 30C(g) (relating
to termination) is amended by striking ``December 31, 2009''
and inserting ``December 31, 2010''.
(b) Effective Date.--The amendment made by this section
shall take effect on the date of the enactment of this Act.
SEC. 107. EXTENSION OF BIODIESEL AND RENEWABLE DIESEL USED AS
FUEL.
(a) In General.--
(1) Income tax credits for biodiesel and renewable diesel
and small agri-biodiesel producer credit.--Subsection (g) of
section 40A (relating to termination) is amended by striking
``December 31, 2008'' and inserting ``December 31, 2009''.
(2) Excise tax credit.--Section 6426(c)(6) (relating to
termination) is amended by striking ``December 31, 2008'' and
inserting ``December 31, 2009''.
(3) Fuels not used for taxable purposes.--Section
6427(e)(5)(B) (relating to termination) is amended by
striking ``December 31, 2008'' and inserting ``December 31,
2009''.
(b) Effective Date.--The amendment made by this section
shall take effect on the date of the enactment of this Act.
SEC. 108. EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDING
DEDUCTION.
(a) In General.--Subsection (h) of section 179D (relating
to termination) is amended by striking ``December 31, 2008''
and inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section
shall take effect on the date of the enactment of this Act.
TITLE II--TAX CREDIT BONDS
SEC. 201. EXTENSION AND MODIFICATION OF CLEAN RENEWABLE
ENERGY BONDS.
(a) In General.--
(1) Increase.--Section 54(f) (relating to limitation on
amount of bonds designated) is amended--
(A) by striking ``$1,200,000,000'' in paragraph (1) and
inserting ``$1,600,000,000'', and
(B) by striking ``$750,000,000'' in paragraph (2) and
inserting ``$1,000,000,000''.
(2) Extension.--Subsection (m) of section 54 (relating to
termination) is amended by striking ``December 31, 2008'' and
inserting ``December 31, 2009''.
(b) Effective Date.--The amendments made by this section
shall apply to allocations after the date of the enactment of
this Act.
TITLE III--CONSERVATION INCENTIVES
SEC. 301. EXTENSION AND MODIFICATION OF CREDIT FOR
RESIDENTIAL ENERGY EFFICIENT PROPERTY.
(a) Extension.--Section 25D(g) (relating to termination) is
amended by striking ``December 31, 2008'' and inserting
``December 31, 2009''.
(b) Maximum Credit for Solar Electric Property.--
(1) In general.--Section 25D(b)(1)(A) (relating to maximum
credit) is amended by striking ``$2,000'' and inserting
``$4,000''.
(2) Conforming amendment.--Section 25D(e)(4)(A)(i) is
amended by striking ``$6,667'' and inserting ``$13,334''.
(c) Effective Date.--The amendments made by this section
shall apply to expenditures made after December 31, 2007.
SEC. 302. EXTENSION OF CREDIT FOR HYBRID MOTOR VEHICLES AND
ADVANCED LEAN BURN VEHICLES.
(a) In General.--Subsection (j) of section 30B (relating to
termination) is amended--
(1) by striking ``December 31, 2010'' in paragraph (2) and
inserting ``December 31, 2011'', and
(2) by striking ``December 31, 2009'' in paragraph (3) and
inserting ``December 31, 2010''.
(b) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 303. EXTENSION OF NONBUSINESS ENERGY PROPERTY CREDIT.
(a) In General.--Subsection (g) of section 25C (relating to
termination) is amended by striking ``December 31, 2007'' and
inserting ``December 31, 2008''
(b) Effective Date.--The amendment made by this section
shall apply with respect to property placed in service after
December 31, 2007.
SEC. 304. EXTENSION OF NEW ENERGY EFFICIENT HOME CREDIT.
(a) In General.--Subsection (g) of section 45L (relating to
termination) is amended by striking ``December 31, 2008'' and
inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section
shall take effect on the date of the enactment of this Act.
TITLE IV--REVENUE PROVISIONS
SEC. 401. REVISION OF TAX RULES ON EXPATRIATION.
(a) In General.--Subpart A of part II of subchapter N of
chapter 1 is amended by inserting after section 877 the
following new section:
``SEC. 877A. TAX RESPONSIBILITIES OF EXPATRIATION.
``(a) General Rules.--For purposes of this subtitle--
``(1) Mark to market.--All property of a covered expatriate
shall be treated as sold on the day before the expatriation
date for its fair market value.
``(2) Recognition of gain or loss.--In the case of any sale
under paragraph (1)--
``(A) notwithstanding any other provision of this title,
any gain arising from such sale shall be taken into account
for the taxable year of the sale, and
``(B) any loss arising from such sale shall be taken into
account for the taxable year of the sale to the extent
otherwise provided by this title, except that section 1091
shall not apply to any such loss.
Proper adjustment shall be made in the amount of any gain or
loss subsequently realized for gain or loss taken into
account under the preceding sentence, determined without
regard to paragraph (3).
``(3) Exclusion for certain gain.--
``(A) In general.--The amount which would (but for this
paragraph) be includible in the gross income of any
individual by reason of paragraph (1) shall be reduced (but
not below zero) by $600,000.
``(B) Adjustment for inflation.--
``(i) In general.--In the case of any taxable year
beginning in a calendar year after 2008, the dollar amount in
subparagraph (A) shall be increased by an amount equal to--
``(I) such dollar amount, multiplied by
``(II) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins, by substituting `calendar year 2007' for
`calendar year 1992' in subparagraph (B) thereof.
``(ii) Rounding.--If any amount as adjusted under clause
(i) is not a multiple of $1,000, such amount shall be rounded
to the nearest multiple of $1,000.
``(b) Election To Defer Tax.--
``(1) In general.--If the taxpayer elects the application
of this subsection with respect to any property treated as
sold by reason of subsection (a), the time for payment of the
additional tax attributable to such property shall be
extended until the due date of the return for the taxable
year in which such property is disposed of (or, in the case
of property disposed of in a transaction in which gain is not
recognized in whole or in part, until such other date as the
Secretary may prescribe).
``(2) Determination of tax with respect to property.--For
purposes of paragraph (1), the additional tax attributable to
any property is an amount which bears the same ratio to the
additional tax imposed by this chapter for the taxable year
solely by reason of subsection (a) as the gain taken into
account under subsection (a) with respect to such property
bears to the total gain taken into account under subsection
(a) with respect to all property to which subsection (a)
applies.
``(3) Termination of extension.--The due date for payment
of tax may not be extended under this subsection later than
the due date for the return of tax imposed by this chapter
for the taxable year which includes the date of death of the
expatriate (or, if earlier, the time that the security
provided with respect to the property fails to meet the
requirements of paragraph (4), unless the taxpayer corrects
such failure within the time specified by the Secretary).
``(4) Security.--
``(A) In general.--No election may be made under paragraph
(1) with respect to any property unless adequate security is
provided with respect to such property.
``(B) Adequate security.--For purposes of subparagraph (A),
security with respect to any property shall be treated as
adequate security if--
``(i) it is a bond which is furnished to, and accepted by,
the Secretary, which is conditioned on the payment of tax
(and interest thereon), and which meets the requirements of
section 6325, or
``(ii) it is another form of security for such payment
(including letters of credit) that meets such requirements as
the Secretary may prescribe.
``(5) Waiver of certain rights.--No election may be made
under paragraph (1) unless the taxpayer makes an irrevocable
waiver of any right under any treaty of the United States
which would preclude assessment or collection of any tax
imposed by reason of this section.
``(6) Elections.--An election under paragraph (1) shall
only apply to property described in the election and, once
made, is irrevocable.
``(7) Interest.--For purposes of section 6601, the last
date for the payment of tax
[[Page H9946]]
shall be determined without regard to the election under this
subsection.
``(c) Exception for Certain Property.--Subsection (a) shall
not apply to--
``(1) any deferred compensation item (as defined in
subsection (d)(4)),
``(2) any specified tax deferred account (as defined in
subsection (e)(2)), and
``(3) any interest in a nongrantor trust (as defined in
subsection (f)(3)).
``(d) Treatment of Deferred Compensation Items.--
``(1) Withholding on eligible deferred compensation
items.--
``(A) In general.--In the case of any eligible deferred
compensation item, the payor shall deduct and withhold from
any taxable payment to a covered expatriate with respect to
such item a tax equal to 30 percent thereof.
``(B) Taxable payment.--For purposes of subparagraph (A),
the term `taxable payment' means with respect to a covered
expatriate any payment to the extent it would be includible
in the gross income of the covered expatriate if such
expatriate continued to be subject to tax as a citizen or
resident of the United States. A deferred compensation item
shall be taken into account as a payment under the preceding
sentence when such item would be so includible.
``(2) Other deferred compensation items.--In the case of
any deferred compensation item which is not an eligible
deferred compensation item--
``(A)(i) with respect to any deferred compensation item to
which clause (ii) does not apply, an amount equal to the
present value of the covered expatriate's accrued benefit
shall be treated as having been received by such individual
on the day before the expatriation date as a distribution
under the plan, and
``(ii) with respect to any deferred compensation item
referred to in paragraph (4)(D), the rights of the covered
expatriate to such item shall be treated as becoming
transferable and not subject to a substantial risk of
forfeiture on the day before the expatriation date,
``(B) no early distribution tax shall apply by reason of
such treatment, and
``(C) appropriate adjustments shall be made to subsequent
distributions from the plan to reflect such treatment.
``(3) Eligible deferred compensation items.--For purposes
of this subsection, the term `eligible deferred compensation
item' means any deferred compensation item with respect to
which--
``(A) the payor of such item is--
``(i) a United States person, or
``(ii) a person who is not a United States person but who
elects to be treated as a United States person for purposes
of paragraph (1) and meets such requirements as the Secretary
may provide to ensure that the payor will meet the
requirements of paragraph (1), and
``(B) the covered expatriate--
``(i) notifies the payor of his status as a covered
expatriate, and
``(ii) makes an irrevocable waiver of any right to claim
any reduction under any treaty with the United States in
withholding on such item.
``(4) Deferred compensation item.--For purposes of this
subsection, the term `deferred compensation item' means--
``(A) any interest in a plan or arrangement described in
section 219(g)(5),
``(B) any interest in a foreign pension plan or similar
retirement arrangement or program,
``(C) any item of deferred compensation, and
``(D) any property, or right to property, which the
individual is entitled to receive in connection with the
performance of services to the extent not previously taken
into account under section 83 or in accordance with section
83.
``(5) Exception.--Paragraphs (1) and (2) shall not apply to
any deferred compensation item which is attributable to
services performed outside the United States while the
covered expatriate was not a citizen or resident of the
United States.
``(6) Special rules.--
``(A) Application of withholding rules.--Rules similar to
the rules of subchapter B of chapter 3 shall apply for
purposes of this subsection.
``(B) Application of tax.--Any item subject to the
withholding tax imposed under paragraph (1) shall be subject
to tax under section 871.
``(C) Coordination with other withholding requirements.--
Any item subject to withholding under paragraph (1) shall not
be subject to withholding under section 1441 or chapter 24.
``(e) Treatment of Specified Tax Deferred Accounts.--
``(1) Account treated as distributed.--In the case of any
interest in a specified tax deferred account held by a
covered expatriate on the day before the expatriation date--
``(A) the covered expatriate shall be treated as receiving
a distribution of his entire interest in such account on the
day before the expatriation date,
``(B) no early distribution tax shall apply by reason of
such treatment, and
``(C) appropriate adjustments shall be made to subsequent
distributions from the account to reflect such treatment.
``(2) Specified tax deferred account.--For purposes of
paragraph (1), the term `specified tax deferred account'
means an individual retirement plan (as defined in section
7701(a)(37)) other than any arrangement described in
subsection (k) or (p) of section 408, a qualified tuition
program (as defined in section 529), a Coverdell education
savings account (as defined in section 530), a health savings
account (as defined in section 223), and an Archer MSA (as
defined in section 220).
``(f) Special Rules for Nongrantor Trusts.--
``(1) In general.--In the case of a distribution (directly
or indirectly) of any property from a nongrantor trust to a
covered expatriate--
``(A) the trustee shall deduct and withhold from such
distribution an amount equal to 30 percent of the taxable
portion of the distribution, and
``(B) if the fair market value of such property exceeds its
adjusted basis in the hands of the trust, gain shall be
recognized to the trust as if such property were sold to the
expatriate at its fair market value.
``(2) Taxable portion.--For purposes of this subsection,
the term `taxable portion' means, with respect to any
distribution, that portion of the distribution which would be
includible in the gross income of the covered expatriate if
such expatriate continued to be subject to tax as a citizen
or resident of the United States.
``(3) Nongrantor trust.--For purposes of this subsection,
the term `nongrantor trust' means the portion of any trust
that the individual is not considered the owner of under
subpart E of part I of subchapter J. The determination under
the preceding sentence shall be made immediately before the
expatriation date.
``(4) Special rules relating to withholding.--For purposes
of this subsection--
``(A) rules similar to the rules of subsection (d)(6) shall
apply, and
``(B) the covered expatriate shall be treated as having
waived any right to claim any reduction under any treaty with
the United States in withholding on any distribution to which
paragraph (1)(A) applies.
``(g) Definitions and Special Rules Relating to
Expatriation.--For purposes of this section--
``(1) Covered expatriate.--
``(A) In general.--The term `covered expatriate' means an
expatriate who meets the requirements of subparagraph (A),
(B), or (C) of section 877(a)(2).
``(B) Exceptions.--An individual shall not be treated as
meeting the requirements of subparagraph (A) or (B) of
section 877(a)(2) if--
``(i) the individual--
``(I) became at birth a citizen of the United States and a
citizen of another country and, as of the expatriation date,
continues to be a citizen of, and is taxed as a resident of,
such other country, and
``(II) has been a resident of the United States (as defined
in section 7701(b)(1)(A)(ii)) for not more than 10 taxable
years during the 15-taxable year period ending with the
taxable year during which the expatriation date occurs, or
``(ii)(I) the individual's relinquishment of United States
citizenship occurs before such individual attains age 18\1/
2\, and
``(II) the individual has been a resident of the United
States (as so defined) for not more than 10 taxable years
before the date of relinquishment.
``(C) Covered expatriates also subject to tax as citizens
or residents.--In the case of any covered expatriate who is
subject to tax as a citizen or resident of the United States
for any period beginning after the expatriation date, such
individual shall not be treated as a covered expatriate
during such period for purposes of subsections (d)(1) and (f)
and section 2801.
``(2) Expatriate.--The term `expatriate' means--
``(A) any United States citizen who relinquishes his
citizenship, and
``(B) any long-term resident of the United States who
ceases to be a lawful permanent resident of the United States
(within the meaning of section 7701(b)(6)).
``(3) Expatriation date.--The term `expatriation date'
means--
``(A) the date an individual relinquishes United States
citizenship, or
``(B) in the case of a long-term resident of the United
States, the date on which the individual ceases to be a
lawful permanent resident of the United States (within the
meaning of section 7701(b)(6)).
``(4) Relinquishment of citizenship.--A citizen shall be
treated as relinquishing his United States citizenship on the
earliest of--
``(A) the date the individual renounces his United States
nationality before a diplomatic or consular officer of the
United States pursuant to paragraph (5) of section 349(a) of
the Immigration and Nationality Act (8 U.S.C. 1481(a)(5)),
``(B) the date the individual furnishes to the United
States Department of State a signed statement of voluntary
relinquishment of United States nationality confirming the
performance of an act of expatriation specified in paragraph
(1), (2), (3), or (4) of section 349(a) of the Immigration
and Nationality Act (8 U.S.C. 1481(a)(1)-(4)),
``(C) the date the United States Department of State issues
to the individual a certificate of loss of nationality, or
``(D) the date a court of the United States cancels a
naturalized citizen's certificate of naturalization.
Subparagraph (A) or (B) shall not apply to any individual
unless the renunciation or voluntary relinquishment is
subsequently approved by the issuance to the individual of
[[Page H9947]]
a certificate of loss of nationality by the United States
Department of State.
``(5) Long-term resident.--The term `long-term resident'
has the meaning given to such term by section 877(e)(2).
``(6) Early distribution tax.--The term `early distribution
tax' means any increase in tax imposed under section 72(t),
220(e)(4), 223(f)(4), 409A(a)(1)(B), 529(c)(6), or 530(d)(4).
``(h) Other Rules.--
``(1) Termination of deferrals, etc.--In the case of any
covered expatriate, notwithstanding any other provision of
this title--
``(A) any time period for acquiring property which would
result in the reduction in the amount of gain recognized with
respect to property disposed of by the taxpayer shall
terminate on the day before the expatriation date, and
``(B) any extension of time for payment of tax shall cease
to apply on the day before the expatriation date and the
unpaid portion of such tax shall be due and payable at the
time and in the manner prescribed by the Secretary.
``(2) Step-up in basis.--Solely for purposes of determining
any tax imposed by reason of subsection (a), property which
was held by an individual on the date the individual first
became a resident of the United States (within the meaning of
section 7701(b)) shall be treated as having a basis on such
date of not less than the fair market value of such property
on such date. The preceding sentence shall not apply if the
individual elects not to have such sentence apply. Such an
election, once made, shall be irrevocable.
``(3) Coordination with section 684.--If the expatriation
of any individual would result in the recognition of gain
under section 684, this section shall be applied after the
application of section 684.
``(i) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
the purposes of this section.''.
(b) Tax on Gifts and Bequests Received by United States
Citizens and Residents From Expatriates.--
(1) In general.--Subtitle B (relating to estate and gift
taxes) is amended by inserting after chapter 14 the following
new chapter:
``CHAPTER 15--GIFTS AND BEQUESTS FROM EXPATRIATES
``Sec. 2801. Imposition of tax.
``SEC. 2801. IMPOSITION OF TAX.
``(a) In General.--If, during any calendar year, any United
States citizen or resident receives any covered gift or
bequest, there is hereby imposed a tax equal to the product
of--
``(1) the highest rate of tax specified in the table
contained in section 2001(c) as in effect on the date of such
receipt (or, if greater, the highest rate of tax specified in
the table applicable under section 2502(a) as in effect on
the date), and
``(2) the value of such covered gift or bequest.
``(b) Tax To Be Paid by Recipient.--The tax imposed by
subsection (a) on any covered gift or bequest shall be paid
by the person receiving such gift or bequest.
``(c) Exception for Certain Gifts.--Subsection (a) shall
apply only to the extent that the value of covered gifts and
bequests received by any person during the calendar year
exceeds $10,000.
``(d) Tax Reduced by Foreign Gift or Estate Tax.--The tax
imposed by subsection (a) on any covered gift or bequest
shall be reduced by the amount of any gift or estate tax paid
to a foreign country with respect to such covered gift or
bequest.
``(e) Covered Gift or Bequest.--
``(1) In general.--For purposes of this chapter, the term
`covered gift or bequest' means--
``(A) any property acquired by gift directly or indirectly
from an individual who, at the time of such acquisition, is a
covered expatriate, and
``(B) any property acquired directly or indirectly by
reason of the death of an individual who, immediately before
such death, was a covered expatriate.
``(2) Exceptions for transfers otherwise subject to estate
or gift tax.--Such term shall not include--
``(A) any property shown on a timely filed return of tax
imposed by chapter 12 which is a taxable gift by the covered
expatriate, and
``(B) any property included in the gross estate of the
covered expatriate for purposes of chapter 11 and shown on a
timely filed return of tax imposed by chapter 11 of the
estate of the covered expatriate.
``(3) Transfers in trust.--
``(A) Domestic trusts.--In the case of a covered gift or
bequest made to a domestic trust--
``(i) subsection (a) shall apply in the same manner as if
such trust were a United States citizen, and
``(ii) the tax imposed by subsection (a) on such gift or
bequest shall be paid by such trust.
``(B) Foreign trusts.--
``(i) In general.--In the case of a covered gift or bequest
made to a foreign trust, subsection (a) shall apply to any
distribution attributable to such gift or bequest from such
trust (whether from income or corpus) to a United States
citizen or resident in the same manner as if such
distribution were a covered gift or bequest.
``(ii) Deduction for tax paid by recipient.--There shall be
allowed as a deduction under section 164 the amount of tax
imposed by this section which is paid or accrued by a United
States citizen or resident by reason of a distribution from a
foreign trust, but only to the extent such tax is imposed on
the portion of such distribution which is included in the
gross income of such citizen or resident.
``(iii) Election to be treated as domestic trust.--Solely
for purposes of this section, a foreign trust may elect to be
treated as a domestic trust. Such an election may be revoked
with the consent of the Secretary.
``(f) Covered Expatriate.--For purposes of this section,
the term `covered expatriate' has the meaning given to such
term by section 877A(g)(1).''.
(2) Clerical amendment.--The table of chapters for subtitle
B is amended by inserting after the item relating to chapter
14 the following new item:
``Chapter 15. Gifts and Bequests From Expatriates.''.
(c) Definition of Termination of United States
Citizenship.--
(1) In general.--Section 7701(a) is amended by adding at
the end the following new paragraph:
``(50) Termination of united states citizenship.--
``(A) In general.--An individual shall not cease to be
treated as a United States citizen before the date on which
the individual's citizenship is treated as relinquished under
section 877A(g)(4).
``(B) Dual citizens.--Under regulations prescribed by the
Secretary, subparagraph (A) shall not apply to an individual
who became at birth a citizen of the United States and a
citizen of another country.''.
(2) Conforming amendments.--
(A) Paragraph (1) of section 877(e) is amended to read as
follows:
``(1) In general.--Any long-term resident of the United
States who ceases to be a lawful permanent resident of the
United States (within the meaning of section 7701(b)(6))
shall be treated for purposes of this section and sections
2107, 2501, and 6039G in the same manner as if such resident
were a citizen of the United States who lost United States
citizenship on the date of such cessation or commencement.''.
(B) Paragraph (6) of section 7701(b) is amended by adding
at the end the following flush sentence:
``An individual shall cease to be treated as a lawful
permanent resident of the United States if such individual
commences to be treated as a resident of a foreign country
under the provisions of a tax treaty between the United
States and the foreign country, does not waive the benefits
of such treaty applicable to residents of the foreign
country, and notifies the Secretary of the commencement of
such treatment.''.
(C) Section 7701 is amended by striking subsection (n) and
by redesignating subsections (o) and (p) as subsections (n)
and (o), respectively.
(d) Information Returns.--Section 6039G is amended--
(1) by inserting ``or 877A'' after ``section 877(b)'' in
subsection (a), and
(2) by inserting ``or 877A'' after ``section 877(a)'' in
subsection (d).
(e) Clerical Amendment.--The table of sections for subpart
A of part II of subchapter N of chapter 1 is amended by
inserting after the item relating to section 877 the
following new item:
``Sec. 877A. Tax responsibilities of expatriation.''.
(f) Effective Date.--
(1) In general.--Except as provided in this subsection, the
amendments made by this section shall apply to expatriates
(as defined in section 877A(g) of the Internal Revenue Code
of 1986, as added by this section) whose expatriation date
(as so defined) is on or after the date of the enactment of
this Act.
(2) Gifts and bequests.--Chapter 15 of the Internal Revenue
Code of 1986 (as added by subsection (b)) shall apply to
covered gifts and bequests (as defined in section 2801 of
such Code, as so added) received on or after the date of the
enactment of this Act, regardless of when the transferor
expatriated.
SEC. 402. REPEAL OF SUSPENSION OF CERTAIN PENALTIES AND
INTEREST.
(a) In General.--Section 6404 is amended by striking
subsection (g) and by redesignating subsection (h) as
subsection (g).
(b) Effective Date.--The amendment made by subsection (a)
shall apply to notices provided by the Secretary of the
Treasury, or his delegate, after the date which is 6 months
after the date of the enactment of the Small Business and
Work Opportunity Tax Act of 2007.
SEC. 403. INCREASE IN INFORMATION RETURN PENALTIES.
(a) Failure to File Correct Information Returns.--
(1) In general.--Subsections (a)(1), (b)(1)(A), and
(b)(2)(A) of section 6721 are each amended by striking
``$50'' and inserting ``$100''.
(2) Aggregate annual limitation.--Subsections (a)(1),
(d)(1)(A), and (e)(3)(A) of section 6721 are each amended by
striking ``$250,000'' and inserting ``$900,000''.
(b) Reduction Where Correction Within 30 Days.--
(1) In general.--Subparagraph (A) of section 6721(b)(1) is
amended by striking ``$15'' and inserting ``$30''.
(2) Aggregate annual limitation.--Subsections (b)(1)(B) and
(d)(1)(B) of section 6721 are each amended by striking
``$75,000'' and inserting ``$200,000''.
(c) Reduction Where Correction on or Before August 1.--
[[Page H9948]]
(1) In general.--Subparagraph (A) of section 6721(b)(2) is
amended by striking ``$30'' and inserting ``$60''.
(2) Aggregate annual limitation.--Subsections (b)(2)(B) and
(d)(1)(C) of section 6721 are each amended by striking
``$150,000'' and inserting ``$400,000''.
(d) Aggregate Annual Limitations for Persons With Gross
Receipts of Not More Than $5,000,000.--Paragraph (1) of
section 6721(d) is amended--
(1) by striking ``$100,000'' in subparagraph (A) and
inserting ``$250,000'',
(2) by striking ``$25,000'' in subparagraph (B) and
inserting ``$75,000'', and
(3) by striking ``$50,000'' in subparagraph (C) and
inserting ``$150,000''.
(e) Penalty in Case of Intentional Disregard.--Paragraph
(2) of section 6721(e) is amended by striking ``$100'' and
inserting ``$250''.
(f) Failure To Furnish Correct Payee Statements.--
(1) In general.--Subsection (a) of section 6722 is amended
by striking ``$50'' and inserting ``$100''.
(2) Aggregate annual limitation.--Subsections (a) and
(c)(2)(A) of section 6722 are each amended by striking
``$100,000'' and inserting ``$600,000''.
(3) Penalty in case of intentional disregard.--Paragraph
(1) of section 6722(c) is amended by striking ``$100'' and
inserting ``$250''.
(g) Failure To Comply With Other Information Reporting
Requirements.--Section 6723 is amended--
(1) by striking ``$50'' and inserting ``$100'', and
(2) by striking ``$100,000'' and inserting ``$600,000''.
(h) Effective Date.--The amendments made by this section
shall apply with respect to information returns required to
be filed on or after January 1, 2008.
SEC. 404. CLARIFICATION THAT CREDITS FOR FUEL ARE DESIGNED TO
PROVIDE INCENTIVE FOR UNITED STATES PRODUCTION.
(a) Biodiesel Fuels Credit.--Paragraph (5) of section
40A(d), as added by subsection (c), is amended to read as
follows:
``(5) Limitation to biodiesel with connection to the united
states.--No credit shall be determined under this section
with respect to any biodiesel unless--
``(A) such biodiesel is produced in the United States for
use as a fuel in the United States, and
``(B) the taxpayer obtains a certification (in such form
and manner as prescribed by the Secretary) from the producer
of the biodiesel which identifies the product produced and
the location of such production.
For purposes of this paragraph, the term `United States'
includes any possession of the United States.''.
(b) Excise Tax Credit.--Paragraph (2) of section 6426(i),
as added by subsection (c), is amended to read as follows:
``(2) Biodiesel and alternative fuels.--No credit shall be
determined under this section with respect to any biodiesel
or alternative fuel unless--
``(A) such biodiesel or alternative fuel is produced in the
United States for use as a fuel in the United States, and
``(B) the taxpayer obtains a certification (in such form
and manner as prescribed by the Secretary) from the producer
of such biodiesel or alternative fuel which identifies the
product produced and the location of such production.''.
(c) Provisions Clarifying Treatment of Fuels With No Nexus
to the United States.--
(1) Alcohol fuels credit.--Subsection (d) of section 40 is
amended by adding at the end the following new paragraph:
``(6) Limitation to alcohol with connection to the united
states.--No credit shall be determined under this section
with respect to any alcohol which is produced outside the
United States for use as a fuel outside the United States.
For purposes of this paragraph, the term `United States'
includes any possession of the United States.''.
(2) Biodiesel fuels credit.--Subsection (d) of section 40A
is amended by adding at the end the following new paragraph:
``(5) Limitation to biodiesel with connection to the united
states.--No credit shall be determined under this section
with respect to any biodiesel which is produced outside the
United States for use as a fuel outside the United States.
For purposes of this paragraph, the term `United States'
includes any possession of the United States.''.
(3) Excise tax credit.--
(A) In general.--Section 6426 is amended by adding at the
end the following new subsection:
``(h) Limitation to Fuels With Connection to the United
States.--
``(1) Alcohol.--No credit shall be determined under this
section with respect to any alcohol which is produced outside
the United States for use as a fuel outside the United
States.
``(2) Biodiesel and alternative fuels.--No credit shall be
determined under this section with respect to any biodiesel
or alternative fuel which is produced outside the United
States for use as a fuel outside the United States.
For purposes of this subsection, the term `United States'
includes any possession of the United States.''.
(B) Conforming amendment.--Subsection (e) of section 6427
is amended by redesignating paragraph (5) as paragraph (6)
and by inserting after paragraph (4) the following new
paragraph:
``(5) Limitation to fuels with connection to the united
states.--No amount shall be payable under paragraph (1) or
(2) with respect to any mixture or alternative fuel if credit
is not allowed with respect to such mixture or alternative
fuel by reason of section 6426(h).''.
(d) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to fuel produced,
and sold or used, after the date of the enactment of this
Act.
(2) Provisions clarifying treatment of fuels with no nexus
to the united states.--
(A) In general.--Except as otherwise provided in this
paragraph, the amendments made by subsection (c) shall take
effect as if included in section 301 of the American Jobs
Creation Act of 2004.
(B) Alternative fuel credits.--So much of the amendments
made by subsection (c) as relate to the alternative fuel
credit or the alternative fuel mixture credit shall take
effect as if included in section 11113 of the Safe,
Accountable, Flexible, Efficient Transportation Equity Act: A
Legacy for Users.
(C) Renewable diesel.--So much of the amendments made by
subsection (c) as relate to renewable diesel shall take
effect as if included in section 1346 of the Energy Policy
Act of 2005.
SEC. 405. MODIFICATION OF LIMITATION ON AUTOMOBILE
DEPRECIATION.
(a) In General.--Paragraph (5) of section 280F(d) (defining
passenger automobile) is amended to read as follows:
``(5) Passenger automobile.--
``(A) In general.--Except as provided in subparagraph (B),
the term `passenger automobile' means any 4-wheeled vehicle--
``(i) which is primarily designed or which can be used to
carry passengers over public streets, roads, or highways
(except any vehicle operated exclusively on a rail or rails),
and
``(ii) which is rated at not more than 14,000 pounds gross
vehicle weight.
``(B) Exceptions.--The term `passenger automobile' shall
not include--
``(i) any exempt-design vehicle, and
``(ii) any exempt-use vehicle.
``(C) Exempt-design vehicle.--The term `exempt-design
vehicle' means--
``(i) any vehicle which, by reason of its nature or design,
is not likely to be used more than a de minimis amount for
personal purposes, and
``(ii) any vehicle--
``(I) which is designed to have a seating capacity of more
than 9 persons behind the driver"s seat,
``(II) which is equipped with a cargo area of at least 5
feet in interior length which is an open area or is designed
for use as an open area but is enclosed by a cap and is not
readily accessible directly from the passenger compartment,
or
``(III) has an integral enclosure, fully enclosing the
driver compartment and load carrying device, does not have
seating rearward of the driver's seat, and has no body
section protruding more than 30 inches ahead of the leading
edge of the windshield.
``(D) Exempt-use vehicle.--The term `exempt-use vehicle'
means--
``(i) any ambulance, hearse, or combination ambulance-
hearse used by the taxpayer directly in a trade or business,
``(ii) any vehicle used by the taxpayer directly in the
trade or business of transporting persons or property for
compensation or hire, and
``(iii) any truck or van if substantially all of the use of
such vehicle by the taxpayer is directly in--
``(I) a farming business (within the meaning of section
263A(e)(4)),
``(II) the transportation of a substantial amount of
equipment, supplies, or inventory, or
``(III) the moving or delivery of property which requires
substantial cargo capacity.
``(E) Recapture.--In the case of any vehicle which is not a
passenger automobile by reason of being an exempt-use
vehicle, if such vehicle ceases to be an exempt-use vehicle
in any taxable year after the taxable year in which such
vehicle is placed in service, a rule similar to the rule of
subsection (b) shall apply.''.
(b) Conforming Amendment.--Section 179(b) (relating to
limitations) is amended by striking paragraph (6).
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after December 31,
2007.
SEC. 406. EXTENSION OF COAL EXCISE TAX LEVELS.
Paragraph (2) of section 4121(e) (relating to reduction in
amount of tax) is amended to read as follows:
``(2) Temporary increase termination date.--For purposes of
paragraph (1), the temporary increase termination date is the
first January 1 after the date of the enactment of this
paragraph as of which there is--
``(A) no balance of repayable advances made to the Black
Lung Disability Trust Fund, and
``(B) no unpaid interest on such advances.''.
SEC. 407. BULK TRANSFER EXCEPTION NOT TO APPLY TO FINISHED
GASOLINE.
(a) In General.--Subparagraph (B) of section 4081(a)(1)
(relating to tax on removal, entry, or sale) is amended by
adding at the end the following new clause:
``(iii) Exception for finished gasoline.--Clause (i) shall
not apply to any gasoline
[[Page H9949]]
which meets the requirements for gasoline under section 211
of the Clean Air Act.''.
(b) Exception to Tax on Finished Gasoline for Prior Taxable
Removals.--Paragraph (1) of section 4081(a) is amended by
adding at the end the following new subparagraph:
``(C) Exemption for previously taxed finished gasoline.--
The tax imposed by this paragraph shall not apply to the
removal of gasoline described in subparagraph (B)(iii) from
any terminal if there was a prior taxable removal or entry of
such fuel under clause (i), (ii), or (iii) of subparagraph
(A). The preceding sentence shall not apply to the volume of
any product added to such gasoline at the terminal unless
there was a prior taxable removal or entry of such product
under clause (i), (ii), or (iii) of subparagraph (A).''.
(c) Effective Date.--The amendment made by this section
shall apply to fuel removed, entered, or sold after December
31, 2007.
SEC. 408. PARTICIPANTS IN GOVERNMENT SECTION 457 PLANS
ALLOWED TO TREAT ELECTIVE DEFERRALS AS ROTH
CONTRIBUTIONS.
(a) In General.--Section 402A(e)(1) (defining applicable
retirement plan) 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) an eligible deferred compensation plan (as defined in
section 457(b)) of an eligible employer described in section
457(e)(1)(A).''.
(b) Elective Deferrals.--Section 402A(e)(2) (defining
elective deferral) is amended to read as follows:
``(2) Elective deferral.--The term `elective deferral'
means--
``(A) any elective deferral described in subparagraph (A)
or (C) of section 402(g)(3), and
``(B) any elective deferral of compensation by an
individual under an eligible deferred compensation plan (as
defined in section 457(b)) of an eligible employer described
in section 457(e)(1)(A).''.
(c) Effective Date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31,
2007.
SEC. 409. REDUCING REIT HOLDING PERIOD SAFE HARBOR.
(a) In General.--Paragraph (6) of section 857(b) (relating
to income from prohibited transactions) is amended--
(1) by striking ``4 years'' each place it appears and
inserting ``2 years'', and
(2) by striking ``4-year'' each place it appears and
inserting ``2-year''.
(b) Conforming Amendment.--
(1) Subparagraph (A) of section 856(j)(4) (relating to
coordination with coordination with 4-year holding period) is
amended by striking ``4 years'' and inserting ``2 years''.
(2) The heading for paragraph (4) of section 856(j) is
amended by striking ``4-year'' and inserting ``2-year''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 410. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.
Subparagraph (B) of section 401(1) of the Tax Increase
Prevention and Reconciliation Act of 2005 is amended by
striking ``114.75 percent'' and inserting ``117.50''.
Mr. ENGLISH of Pennsylvania (during the reading). Mr. Speaker, I ask
unanimous consent that the motion be considered as read and printed in
the Record.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Pennsylvania?
There was no objection.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Pennsylvania is recognized for 5 minutes in support of his motion.
Mr. ENGLISH of Pennsylvania. Mr. Speaker, we have had, I think, a
very good debate today on the energy tax bill, and I admire the passion
on the other side, even if I don't associate myself with all of its
particulars. I believe the debate offered Members a chance to hear both
good and bad about what is in this bill.
The very bad, huge tax increases on American oil and gas companies
and on domestic production and the green bond slush fund are removed
from our substitute in this motion to recommit.
But the fact that I strongly oppose the bill put together by the
other side does not mean that the tax code can't play a constructive
and creative role in promoting conservation and increasing the use of
renewable and alternative fuels.
The motion to recommit provides Members of the House with the
opportunity to consider a different approach on these issues.
This motion would extend many current law provisions designed to
encourage the production of alternative fuels and the conservation of
energy, many of which the majority saw fit to include in their bill.
But several current tax provisions encouraging energy conservation
will expire if H.R. 2776 is enacted in its current form, including
incentives for individuals to make energy efficiency upgrades in their
home, to install solar power and solar water heating capacity, and to
purchase hybrid and other fuel-efficient vehicles.
I believe the extension of these consumer-based tax credits is
important, and I regret that the majority chose not to include them in
their bill and rejected, on a party-line vote in committee, an effort
to restore the tax credit for making energy efficiency upgrades to
existing homes.
It is unfortunate that the majority has become so enamored of their
tax credit slush fund program that they forgot the tax credits for
consumers are highly effective. For example, 2007 hybrid vehicle sales
in the United States are projected to be double the level from 2005,
the year Republicans first enacted the credit.
In addition, my substitute would extend the section 45 production tax
credit that has helped increase the amount of electricity generated
from sources like wind and biomass and landfill gas.
But unlike the bill before us, H.R. 2776 as reported by the
committee, my substitute does not reduce the value of the wind credit.
Many supporters of the credit, even those who have endorsed the
extension provided by the bill, have expressed real reservations that
the ``haircut'' given to the credit, that it could threaten the
continued rapid expansion of this promising alternative to fossil fuel-
powered electricity generation.
Finally, let me highlight the fact that the motion to recommit does
justice to America's greatest energy source, coal.
This country's vast reserves of coal can continue to fuel America's
economic engine for decades, even centuries to come. More than half of
the electricity in America comes from coal. It would be irresponsible,
if not irrational, to ignore this inconvenient truth.
Therefore, Mr. Speaker, the substitute would extend and reauthorize
the advanced coal and coal gasification investment tax credits. These
credits reward companies for investing in promising technologies that
convert coal into clean-burning natural gas. By placing a new carbon
sequestration requirement on these projects, the provision helps secure
our energy security while protecting our environment at the same time.
The credit also helps manufacturers who depend on natural gas as a
feedstock, because it will ensure a secure, reliable and affordable
source of this vital commodity. In doing so, we can help keep the high-
paying manufacturing jobs that rely on natural gas right here in the
United States.
And Mr. Speaker, if Members want to vote for an energy bill that
might actually increase the supply of energy, that might actually lower
the price of gasoline or heating oil, that will encourage the clean
development of our Nation's most abundant energy source, coal, you have
your chance right now.
Join us in voting for this motion to recommit.
Mr. McDERMOTT. Mr. Speaker, I rise in opposition.
The SPEAKER pro tempore. The gentleman from Washington is recognized
for 5 minutes.
Mr. McDERMOTT. Mr. Speaker, the proposal Republicans have put on the
table here are like the things that addicts say. They just want one
more fix; let's just have one more quick fix to take care of their
problems.
The things that you have said here make me wonder if you understand
how business operates. To give people a one-year extension of money and
say, make plans, build buildings, hire people and start a new industry,
but you've got a one-year guarantee, indicates you have no idea how
business runs. That's why we made it 4 years, to give people an
opportunity to actually do this.
People listening might ask themselves, well, what's the cost to all
this. Well, it costs a long-term extension for renewable energies. It
costs a long-term extension for solar properties. It costs the
production tax credit for cellulosic ethanol, which plays into the
ethanol question. It costs a long-term extension of energy-efficient
commercial building expenditures. How can you build a building in one
year, from planning to building to constructing, how can you do that?
But that's what you're suggesting; we will give them one year.
[[Page H9950]]
The Republican motion to recommit makes sure that the renewable
energy industry is denied the economic certainty they need to drive
production of energy from renewable sources in order that the oil and
gas industry can be fully sheltered.
You wouldn't want any competition for Big Oil.
I yield 2 minutes to the gentleman from Texas to talk about how you
pay for it.
The SPEAKER pro tempore. The gentleman is free to yield, but he has
to control the amount of time. The Chair cannot do that for him.
Mr. DOGGETT. Mr. Speaker, we know, first of all, what is not in this
motion to recommit. What is not in this motion to recommit is anything
about the exciting new opportunity with plug-in hybrids. This has been
deleted from the bill with this motion to recommit.
We know, as the gentleman from Washington is just saying, that what
those who have worked so hard in solar power have requested, an 8-year
extension so we can get the investment. We heard from investment
bankers saying you need that kind of dependability in order to get the
money that solar power needs to expand particularly throughout the
South and Southwest. That will not be available under this Republican
proposal.
But what is in this proposal? Well, after all of the very strange
comments that have been made about denying mom an opportunity to drive
an SUV, the same tax on Hummers that is in our proposal is in their
motion to recommit. Look at the bill. Look at the scoring from the
Joint Committee on Taxation for the motion to recommit at page 2, line
7, and you will see exactly that same matter.
{time} 1915
In fact, after all the talk about how we don't want taxes on the
petroleum industry, when I look at their proposal, I find almost $1
billion in taxes on gasoline that they are proposing in their motion to
recommit.
When I look at the line just above that in the same scoring document,
I find almost $1 billion that is proposed by them in a tax on coal.
Now, there may be a need to do that at some point as we build our
energy future here.
But everyone who votes for their motion to recommit, they need to
understand today that they are voting for about $1 billion in gasoline
taxes and almost $1 billion in taxes on coal, all at the same time they
are denying our renewable industries what they need in wind and solar.
They are denying them the dependability necessary to attract private
investment to let those industries grow.
You know, we have so much fossilized thinking that we must overcome
if we are to combat the real threat of climate change that endangers
our country, that is perhaps our greatest long-term national security
challenge. It's certainly a challenge to our health and our future.
And we also have to address the need for a new energy future that
does not leave us dependent on foreign sources of energy. We have ample
solar power here, we have great potential in this country, if we are
willing to make the hard decisions to not be bound by the ideas of the
past and move to the future.
You can do that today by rejecting this motion to recommit. When you
reject the motion to recommit, you will also be rejecting about $1
billion in taxes on gasoline, about $1 billion in taxes on coal.
The SPEAKER pro tempore. Without objection, the previous question is
ordered on the motion to recommit.
There was no objection.
The SPEAKER pro tempore. The question is on the motion to recommit.
The question was taken; and the Speaker pro tempore announced that
the noes appeared to have it.
Mr. ENGLISH of Pennsylvania. Mr. Speaker, on that I demand the yeas
and nays.
The yeas and nays were ordered.
The vote was taken by electronic device, and there were--yeas 65,
nays 346, not voting 22, as follows:
[Roll No. 834]
YEAS--65
Alexander
Bachus
Baker
Barton (TX)
Bishop (UT)
Blunt
Boehner
Bono
Boustany
Brady (TX)
Broun (GA)
Camp (MI)
Cannon
Cantor
Capito
Conaway
Davis, Tom
Deal (GA)
Dent
Ehlers
English (PA)
Fortenberry
Frelinghuysen
Gerlach
Gillmor
Granger
Hastings (WA)
Herger
Hobson
Hoekstra
Hulshof
Inglis (SC)
Kingston
Knollenberg
Linder
Lungren, Daniel E.
McCrery
Myrick
Nunes
Peterson (PA)
Petri
Pickering
Platts
Porter
Price (GA)
Pryce (OH)
Putnam
Regula
Reichert
Renzi
Rogers (KY)
Rogers (MI)
Rohrabacher
Shadegg
Smith (NE)
Smith (TX)
Thornberry
Tiberi
Upton
Walsh (NY)
Weldon (FL)
Weller
Westmoreland
Whitfield
Wolf
NAYS--346
Abercrombie
Ackerman
Aderholt
Akin
Allen
Altmire
Andrews
Arcuri
Baca
Bachmann
Baird
Baldwin
Barrett (SC)
Barrow
Bartlett (MD)
Bean
Becerra
Berkley
Berman
Berry
Biggert
Bilbray
Bilirakis
Bishop (GA)
Bishop (NY)
Blackburn
Blumenauer
Bonner
Boozman
Boren
Boswell
Boucher
Boyd (FL)
Boyda (KS)
Brady (PA)
Braley (IA)
Brown (SC)
Brown, Corrine
Brown-Waite, Ginny
Buchanan
Burgess
Burton (IN)
Butterfield
Buyer
Calvert
Campbell (CA)
Capps
Capuano
Cardoza
Carnahan
Carney
Carson
Carter
Castle
Castor
Chabot
Chandler
Cleaver
Clyburn
Cohen
Cole (OK)
Conyers
Cooper
Costa
Costello
Courtney
Cramer
Crowley
Cubin
Cuellar
Culberson
Cummings
Davis (AL)
Davis (CA)
Davis (IL)
Davis (KY)
Davis, David
Davis, Lincoln
DeFazio
DeGette
DeLauro
Diaz-Balart, L.
Diaz-Balart, M.
Dicks
Dingell
Doggett
Donnelly
Doolittle
Doyle
Drake
Dreier
Duncan
Edwards
Ellison
Ellsworth
Emanuel
Emerson
Engel
Eshoo
Etheridge
Everett
Fallin
Farr
Fattah
Feeney
Ferguson
Filner
Flake
Forbes
Fossella
Foxx
Frank (MA)
Franks (AZ)
Gallegly
Garrett (NJ)
Giffords
Gilchrest
Gillibrand
Gingrey
Gohmert
Gonzalez
Goodlatte
Gordon
Graves
Green, Al
Green, Gene
Grijalva
Gutierrez
Hall (NY)
Hall (TX)
Hare
Harman
Hastings (FL)
Heller
Hensarling
Herseth Sandlin
Higgins
Hill
Hinchey
Hirono
Hodes
Holden
Holt
Honda
Hooley
Hoyer
Inslee
Israel
Issa
Jackson (IL)
Jackson-Lee (TX)
Jefferson
Johnson (GA)
Johnson (IL)
Johnson, E. B.
Jones (NC)
Jones (OH)
Jordan
Kagen
Kanjorski
Kaptur
Keller
Kennedy
Kildee
Kind
King (IA)
King (NY)
Kirk
Kline (MN)
Kucinich
Kuhl (NY)
Lamborn
Lampson
Langevin
Larsen (WA)
Larson (CT)
Latham
LaTourette
Lee
Levin
Lewis (CA)
Lewis (GA)
Lewis (KY)
Lipinski
LoBiondo
Loebsack
Lofgren, Zoe
Lowey
Lucas
Lynch
Mack
Mahoney (FL)
Maloney (NY)
Manzullo
Marchant
Markey
Marshall
Matheson
Matsui
McCarthy (CA)
McCarthy (NY)
McCaul (TX)
McCollum (MN)
McCotter
McDermott
McGovern
McHenry
McHugh
McIntyre
McKeon
McMorris Rodgers
McNerney
McNulty
Meek (FL)
Meeks (NY)
Melancon
Mica
Michaud
Miller (FL)
Miller (MI)
Miller (NC)
Miller, Gary
Miller, George
Mitchell
Mollohan
Moore (KS)
Moore (WI)
Moran (KS)
Moran (VA)
Murphy (CT)
Murphy, Patrick
Murphy, Tim
Murtha
Musgrave
Nadler
Napolitano
Neal (MA)
Neugebauer
Oberstar
Obey
Olver
Ortiz
Pallone
Pascrell
Pastor
Payne
Pearce
Pelosi
Pence
Perlmutter
Peterson (MN)
Pitts
Poe
Pomeroy
Price (NC)
Radanovich
Rahall
Ramstad
Rangel
Rehberg
Reyes
Reynolds
Rodriguez
Rogers (AL)
Ros-Lehtinen
Roskam
Ross
Rothman
Roybal-Allard
Royce
Ruppersberger
Rush
Ryan (OH)
Ryan (WI)
Salazar
Sali
Sanchez, Linda T.
Sanchez, Loretta
Sarbanes
Schakowsky
Schiff
Schmidt
Schwartz
Scott (GA)
Scott (VA)
Sensenbrenner
Serrano
Sessions
Sestak
Shays
Shea-Porter
Sherman
Shimkus
Shuler
Shuster
Simpson
Sires
Slaughter
Smith (NJ)
Smith (WA)
Snyder
Solis
Souder
Space
Spratt
Stark
Stearns
Stupak
Sullivan
Sutton
Tanner
Tauscher
Taylor
Terry
Thompson (CA)
Thompson (MS)
Tiahrt
Tierney
Towns
Turner
Udall (CO)
Udall (NM)
Van Hollen
Velazquez
Visclosky
Walberg
Walden (OR)
Walz (MN)
Wamp
Wasserman Schultz
Waters
Watson
Watt
Waxman
Weiner
Welch (VT)
Wexler
Wicker
Wilson (NM)
Wilson (OH)
Wilson (SC)
Woolsey
Wu
Wynn
Yarmuth
Young (FL)
NOT VOTING--22
Clarke
Clay
Coble
Crenshaw
Davis, Jo Ann
Delahunt
Goode
Hastert
Hayes
Hinojosa
Hunter
Jindal
Johnson, Sam
Kilpatrick
Klein (FL)
LaHood
Lantos
Paul
Saxton
Skelton
Tancredo
Young (AK)
[[Page H9951]]
Announcement by the Speaker Pro Tempore
The SPEAKER pro tempore (during the vote). Members are advised they
have less than 2 minutes to vote.
{time} 1954
Messrs. MANZULLO, WALBERG, CAMPBELL of California, LoBIONDO, WILSON
of South Carolina, TIM MURPHY of Pennsylvania, CASTLE, FARR, FORBES,
BURTON of Indiana, MARKEY, SALI, POE, FOSSELLA, AKIN, ALTMIRE,
MARCHANT, McHENRY, PEARCE, MAHONEY of Florida, GOHMERT, SOUDER,
DONNELLY, NEUGEBAUER, CARTER, BOREN, WAMP, LATHAM, FRANKS of Arizona,
HENSARLING, SESSIONS, LAMBORN, Mrs. MILLER of Michigan, Mrs. BACHMANN,
Messrs. HILL, SENSENBRENNER, REHBERG, BONNER, KLINE of Minnesota, Ms.
ROS-LEHTINEN, Messrs. CALVERT, TURNER, SPACE, TERRY, ROGERS of Alabama,
DUNCAN, LINCOLN DIAZ-BALART of Florida, BUCHANAN, MARIO DIAZ-BALART of
Florida, BURGESS, SULLIVAN, Ms. FALLIN, Messrs. DAVID DAVIS of
Tennessee, COLE of Oklahoma, McHUGH, KUHL of New York, WALDEN of
Oregon, BILIRAKIS, GARY G. MILLER of California, CHABOT, McKEON,
STEARNS, Mrs. EMERSON, Messrs. HALL of Texas, BARTLETT of Maryland,
GINGREY, GALLEGLY, HELLER of Nevada, LEWIS of Kentucky, EVERETT,
GRAVES, YOUNG of Florida, JONES of North Carolina, DAVIS of Kentucky,
SHIMKUS, ROSKAM, ADERHOLT, BROWN of South Carolina, ROYCE, Mrs.
BIGGERT, Messrs. ISSA, LEWIS of California, SHUSTER, WICKER, LUCAS,
MORAN of Kansas, TIAHRT, RAMSTAD, FEENEY, Mrs. BLACKBURN, Messrs.
BUYER, BOOZMAN, DREIER, McCAUL of Texas, JOHNSON of Illinois, MICA,
Mrs. SCHMIDT, Mr. RADANOVICH, Ms. GINNY BROWN-WAITE of Florida and Mrs.
WILSON of New Mexico changed their vote from ``yea'' to ``nay.''
Mr. SHADEGG and Mr. ROHRABACHER changed their vote from ``nay'' to
``yea.''
So the motion to recommit was rejected.
The result of the vote was announced as above recorded.
The SPEAKER pro tempore. The question is on the passage of the bill.
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
The SPEAKER pro tempore. For what purpose does the gentleman from
Louisiana rise?
Mr. McCRERY. Parliamentary inquiry, Mr. Speaker.
The SPEAKER pro tempore. For what purpose does the gentleman from
Florida rise?
Mr. LINCOLN DIAZ-BALART of Florida. Parliamentary inquiry, Mr.
Speaker.
The SPEAKER pro tempore. For what purpose does the gentleman from
Massachusetts rise?
Mr. McGOVERN. To demand the yeas and nays.
The yeas and nays were ordered.
The vote was taken by electronic device, and there were--yeas 221,
nays 189, not voting 23, as follows:
[Roll No. 835]
YEAS--221
Abercrombie
Ackerman
Allen
Altmire
Andrews
Arcuri
Baca
Baird
Baldwin
Bean
Becerra
Berkley
Berman
Berry
Bishop (GA)
Bishop (NY)
Blumenauer
Boswell
Boucher
Boyd (FL)
Boyda (KS)
Brady (PA)
Braley (IA)
Brown, Corrine
Butterfield
Capps
Capuano
Cardoza
Carnahan
Carney
Carson
Castle
Castor
Chandler
Cleaver
Clyburn
Cohen
Conyers
Cooper
Costa
Costello
Courtney
Cramer
Crowley
Cummings
Davis (AL)
Davis (CA)
Davis (IL)
Davis, Lincoln
DeFazio
DeGette
DeLauro
Dicks
Dingell
Doggett
Donnelly
Doyle
Ellison
Ellsworth
Emanuel
Engel
Eshoo
Etheridge
Farr
Fattah
Ferguson
Filner
Frank (MA)
Giffords
Gilchrest
Gillibrand
Gordon
Green, Al
Grijalva
Gutierrez
Hall (NY)
Hare
Harman
Hastings (FL)
Herseth Sandlin
Higgins
Hill
Hinchey
Hirono
Hodes
Holden
Holt
Honda
Hooley
Hoyer
Inslee
Israel
Jackson (IL)
Jackson-Lee (TX)
Jefferson
Johnson (GA)
Johnson, E. B.
Jones (OH)
Kagen
Kanjorski
Kaptur
Kennedy
Kildee
Kind
Kirk
Kucinich
Langevin
Larsen (WA)
Larson (CT)
Lee
Levin
Lewis (GA)
Lipinski
LoBiondo
Loebsack
Lofgren, Zoe
Lowey
Lynch
Mahoney (FL)
Maloney (NY)
Markey
Marshall
Matsui
McCarthy (NY)
McCollum (MN)
McDermott
McGovern
McIntyre
McNerney
McNulty
Meek (FL)
Meeks (NY)
Michaud
Miller (NC)
Miller, George
Mitchell
Mollohan
Moore (KS)
Moore (WI)
Moran (VA)
Murphy (CT)
Murphy, Patrick
Murtha
Nadler
Napolitano
Neal (MA)
Oberstar
Obey
Olver
Pallone
Pascrell
Pastor
Payne
Pelosi
Perlmutter
Peterson (MN)
Pomeroy
Price (NC)
Rahall
Ramstad
Rangel
Reichert
Reyes
Ross
Rothman
Roybal-Allard
Ruppersberger
Rush
Ryan (OH)
Salazar
Sanchez, Linda T.
Sanchez, Loretta
Sarbanes
Schakowsky
Schiff
Schwartz
Scott (GA)
Scott (VA)
Serrano
Sestak
Shays
Shea-Porter
Sherman
Shuler
Sires
Slaughter
Smith (NJ)
Smith (WA)
Snyder
Solis
Space
Spratt
Stark
Stupak
Sutton
Tanner
Tauscher
Taylor
Thompson (CA)
Thompson (MS)
Tierney
Towns
Udall (CO)
Udall (NM)
Van Hollen
Velazquez
Visclosky
Walz (MN)
Wasserman Schultz
Waters
Watson
Watt
Waxman
Weiner
Welch (VT)
Wexler
Wilson (OH)
Woolsey
Wu
Wynn
Yarmuth
NAYS--189
Aderholt
Akin
Alexander
Bachmann
Bachus
Baker
Barrett (SC)
Barrow
Bartlett (MD)
Barton (TX)
Biggert
Bilbray
Bilirakis
Bishop (UT)
Blunt
Boehner
Bonner
Bono
Boozman
Boren
Boustany
Brady (TX)
Broun (GA)
Brown (SC)
Brown-Waite, Ginny
Buchanan
Burgess
Burton (IN)
Buyer
Calvert
Camp (MI)
Campbell (CA)
Cannon
Cantor
Capito
Carter
Chabot
Cole (OK)
Conaway
Cubin
Cuellar
Culberson
Davis (KY)
Davis, David
Davis, Tom
Deal (GA)
Dent
Diaz-Balart, L.
Diaz-Balart, M.
Doolittle
Drake
Dreier
Duncan
Edwards
Ehlers
Emerson
English (PA)
Everett
Fallin
Feeney
Flake
Forbes
Fortenberry
Fossella
Foxx
Franks (AZ)
Frelinghuysen
Gallegly
Garrett (NJ)
Gerlach
Gillmor
Gingrey
Gohmert
Gonzalez
Goodlatte
Granger
Graves
Green, Gene
Hall (TX)
Hastings (WA)
Heller
Hensarling
Herger
Hobson
Hoekstra
Hulshof
Inglis (SC)
Issa
Johnson (IL)
Jones (NC)
Jordan
Keller
King (IA)
King (NY)
Kingston
Kline (MN)
Knollenberg
Kuhl (NY)
Lamborn
Lampson
Latham
LaTourette
Lewis (CA)
Lewis (KY)
Linder
Lucas
Lungren, Daniel E.
Mack
Manzullo
Marchant
Matheson
McCarthy (CA)
McCaul (TX)
McCotter
McCrery
McHenry
McHugh
McKeon
McMorris Rodgers
Melancon
Mica
Miller (FL)
Miller (MI)
Miller, Gary
Moran (KS)
Murphy, Tim
Musgrave
Myrick
Neugebauer
Nunes
Ortiz
Pearce
Pence
Peterson (PA)
Petri
Pickering
Pitts
Platts
Poe
Porter
Price (GA)
Pryce (OH)
Putnam
Radanovich
Regula
Rehberg
Renzi
Reynolds
Rodriguez
Rogers (AL)
Rogers (KY)
Rogers (MI)
Rohrabacher
Ros-Lehtinen
Roskam
Royce
Ryan (WI)
Sali
Schmidt
Sensenbrenner
Sessions
Shadegg
Shimkus
Shuster
Simpson
Smith (NE)
Smith (TX)
Souder
Stearns
Sullivan
Terry
Thornberry
Tiahrt
Tiberi
Turner
Upton
Walberg
Walden (OR)
Walsh (NY)
Wamp
Weldon (FL)
Weller
Westmoreland
Whitfield
Wicker
Wilson (NM)
Wilson (SC)
Wolf
Young (FL)
NOT VOTING--23
Blackburn
Clarke
Clay
Coble
Crenshaw
Davis, Jo Ann
Delahunt
Goode
Hastert
Hayes
Hinojosa
Hunter
Jindal
Johnson, Sam
Kilpatrick
Klein (FL)
LaHood
Lantos
Paul
Saxton
Skelton
Tancredo
Young (AK)
Announcement by the Speaker
The SPEAKER (during the vote). Members are advised there is 1 minute
remaining on this vote.
{time} 2016
Mr. RAMSTAD changed his vote from ``nay'' to ``yea.''
So the bill was passed.
The result of the vote was announced as above recorded.
A motion to reconsider was laid on the table.
Stated against:
Mrs. BLACKBURN. Mr. Speaker, on rollcall No. 835, my voting card
malfunctioned and did not register my vote. Had my vote been accurately
recorded, I would have been recorded as ``nay.''
The SPEAKER. Pursuant to section 3(b) of House Resolution 615, H.R.
2776 is laid on the table.
____________________