S.Amdt. 1474

1. Adds SEC. 102. EXPANSION OF CREDIT FOR ELECTRICITY PRODUCED FROM CERTAIN RENEWABLE RESOURCES TO INCLUDE INCREMENTAL HYDROPOWER at the end of title I of division B

   Adds a section

   Inserted: SEC. 102. EXPANSION OF CREDIT FOR ELECTRICITY PRODUCED FROM CERTAIN RENEWABLE RESOURCES TO INCLUDE INCREMENTAL HYDROPOWER.

   Inserted: (a) In General.--Section 45(c)(1) (defining qualified energy resources), as amended by this Act, is amended--

   Inserted: (1) by striking "and" at the end of subparagraph (G),

   Inserted: (2) by striking the period at the end of subparagraph (H) and inserting ", and", and

   Inserted: (3) by adding at the end the following new subparagraph:

   Inserted: "(I) incremental hydropower.".

   Inserted: (b) Incremental Hydropower.--Section 45(c), as amended by this Act, is amended by adding at the end the following new paragraph:

   Inserted: "(8) Incremental hydropower.--

   Inserted: "(i) In general.--The term 'incremental hydropower' means for any taxable year an amount equal to the percentage of total kilowatt hours of electricity produced from a hydropower facility described in subsection (d)(8) attributable to efficiency improvements or additions of capacity as determined under clause (ii).

   Inserted: "(ii) Determination of incremental hydropower production.--For purposes of clause (i), incremental hydropower production for any hydropower facility for any taxable year shall be determined by establishing a percentage of average annual hydropower production at the facility attributable to the efficiency improvements or additions of capacity using the same water flow information used to determine an historic average annual hydropower production baseline for such facility. Such percentage and baseline shall be certified by the Secretary in consultation with the Federal Energy Regulatory Commission. For purposes of the preceding sentence, the determination of incremental hydropower production shall not be based on any operational changes at such facility not directly associated with the efficiency improvements or additions of capacity.".

   Inserted: (c) Incremental Hydropower Facility.--Section 45(d) (relating to qualified facilities), as amended by this Act, is amended by adding at the end the following new paragraph:

   Inserted: "(8) Incremental hydropower facility.--

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   Inserted: "(A) In general.--In the case of a facility using incremental hydropower to produce electricity, the term 'qualified facility' means any non-Federal hydroelectric facility owned by the taxpayer the efficiency improvements or additions of capacity to which are originally placed in service after the date of the enactment of the Energy Tax Incentives Act of 2003 and before January 1, 2009.

   Inserted: "(B) Special rules.--

   Inserted: "(i) 4-year period.--In the case of a qualified facility described in subparagraph (A), the 4-year period beginning on the date the efficiency improvements or additions of capacity to the facility are originally placed in service shall be substituted for the 10-year period in subsection (a)(2)(A)(ii).

   Inserted: "(ii) Noncompliance with pollution laws.--For purposes of this paragraph, a facility which is not in compliance with the applicable State and Federal pollution prevention, control, and permit requirements for any period of time shall not be considered to be a qualified facility during such period.".

   Inserted: (d) 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.

   Original wording

   At the end of title I of division B, add the following:

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As printed