S.Amdt. 1490

1. Rewrites page 220, line 21 through page 221, line 2

   ReplacesPrinted page

   Removes page 220, line 21 through page 221, line 2 of the printed bill. See that page

   Inserted: (c) Extension and Expansion for Certain Fuel Produced at Existing Facilities.--

   Inserted: (1) Extension.--Section 29(f)(2) (relating to application of section) is amended by inserting "(January 1, 2007, in the case of any coke, coke gas, or natural gas and byproducts produced by coal gasification from lignite in a facility described in paragraph (1)(B))" after "January 1, 2003".

   Inserted: (2) Transferability of credit.--Section 29, as amended by subsection (a), is amended by adding the end the following new subsection;

   Inserted: "(i) Treatment of Persons Not Able To Use Entire Credit.--

   Inserted: "(1) Allowance of credit.--

   Inserted: "(A) In general.--Any credit allowable under subsection (a) with respect to any natural gas and byproducts produced by coal gasification from lignite in a facility described in paragraph (1)(B) owned by a person described in subparagraph (B) may be transferred or used as provided in this subsection and the determination as whether the credit allowable shall be made without regard to the tax-exempt status of the person.".

   Inserted: "(B) Persons described.--A person is described in this subparagraph if the person is--

   Inserted: "(i) an organization described in section 501(c)(12)(C) and exempt from tax under section 501(a),

   Inserted: "(ii) an organization described in section 1381(a)(2)(C) or subsidiaries of such organization,

   Inserted: "(iii) a public utility (as defined in section 136(c)(2)(B)), which is exempt from income tax under this subtitle,

   Inserted: "(iv) any State or political subdivision thereof, the District of Columbia, any possession of the United States, or any agency or instrumentality of any of the foregoing, or

   Inserted: "(v) any Indian tribal government (within the meaning of section 7871) or any agency or instrumentality thereof.

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   Inserted: "(2) Transfer of credit.--

   Inserted: "(A) In general.--A person described in paragraph (1)(B) may transfer any credit to which paragraph (1)(A) applies through an assignment to any other person not described in paragraph (1)(B). Such transfer may be revoked only with the consent of the Secretary.

   Inserted: "(B) Regulations.--The Secretary shall prescribe such regulations as necessary to ensure that any credit described in subparagraph (a) is assigned once and not reassigned by such other person.

   Inserted: "(C) Transfer proceeds treated as arising from essential government function.--Any proceeds derived by a person described in clause (iii), (iv), or (v) of paragraph (1)(B) from the transfer of any credit under subparagraph (A) shall be treated as arising from the exercise of an essential government function.

   Inserted: "(3) Use of credit as an offset.--Notwithstanding any other provision of law, in the case of a person described in clause (i), (ii), or (v) of paragraph (1)(B), any credit to which paragraph (1)(A) applies may be applied by such person, to the extent provided by the Secretary of Agriculture, as a prepayment of any loan, debt, or other obligation the entity has incurred under subchapter I of chapter 31 of title 7 of the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.), as in effect on the date of the enactment of the Energy Tax Incentives Act of 2003.

   Inserted: "(4) Credit not income.--Any transfer under paragraph (2) or use under paragraph (3) of any credit to which paragraph (1)(A) applies shall not be treated as income for purposes of this title.

   Inserted: "(5) Treatment of unrelated persons.--For purposes of subsection (a)(2)(A), sales of qualified fuels among and between persons described in paragraph (1)(B) shall be treated as sales between unrelated parties.".

   Original wording

   In division B, beginning on page 220, line 21, strike all through page 221, line 2, and insert the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed