S.Amdt. 1496

1. Adds SEC. ____. OFFSET OF PASSIVE ACTIVITY LOSSES AND CREDITS OF AN ELIGIBLE TAXPAYER FROM WIND ENERGY FACILITIES at the end of title VII of division B

   Adds a section

   Inserted: SEC. ____. OFFSET OF PASSIVE ACTIVITY LOSSES AND CREDITS OF AN ELIGIBLE TAXPAYER FROM WIND ENERGY FACILITIES.

   Inserted: (a) In General.--Section 469 (relating to passive activity losses and credits limited) is amended by redesignating subsections (l) and (m) as subsections (m) and (n) and by inserting after subsection (k) the following new subsection:

   Inserted: "(l) Offset of Passive Activity Losses and Credits From Wind Energy Facilities.--

   Inserted: "(1) In general.--Subsection (a) shall not apply to the portion of the passive activity loss, or the deduction equivalent (within the meaning of subsection (j)(5)) of the portion of the passive activity credit, for any taxable year which is attributable to all interests of an eligible taxpayer in qualified facilities described in section 45(c)(3)(A).

   Inserted: "(2) Eligible taxpayer.--For purposes of this subsection--

   Inserted: "(A) In general.--The term 'eligible taxpayer' means, with respect to any taxable year, a taxpayer the adjusted gross income (taxable income in the case of a corporation) of which does not exceed $1,000,000.

   Inserted: "(B) Rules for computing adjusted gross income.--Adjusted gross income shall be computed in the same manner as under subsection (i)(3)(F).

   Inserted: "(C) Aggregation rules.--All persons treated as a single employer under subsection (a) or (b) of section 52 shall be treated as a single taxpayer for purposes of this paragraph.

   Inserted: "(D) Pass-thru entities.--In the case of a pass-thru entity, this paragraph shall be applied at the level of the person to which the credit is allocated by the entity."

   Inserted: (b) Effective Date.--The amendments made by this section shall apply to facilities placed in service after the date of the enactment of this Act.

   Inserted: SEC. ____. CREDIT FOR WIND ENERGY FACILITIES OF AN ELIGIBLE TAXPAYER ALLOWED AGAINST MINIMUM TAX.

   Inserted: (a) In General.--Section 38(c) (relating to limitation based on amount of tax) is amended by redesignating paragraph (6) as paragraph (7) and by inserting after paragraph (5) the following new paragraph:

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   Inserted: "(6) Special rules for wind energy credit.--

   Inserted: "(A) In general.--In the case of the wind energy credit of an eligible taxpayer--

   Inserted: "(i) this section and section 39 shall be applied separately with respect to such credit, and

   Inserted: "(ii) in applying paragraph (1) to the credit--

   Inserted: "(I) the tentative minimum tax shall be treated as being zero, and

   Inserted: "(II) the limitation under paragraph (1) (as modified by subclause (I)) shall be reduced by the credit allowed under subsection (a) for the taxable year (other than the wind energy credit).

   Inserted: "(B) Wind energy credit.--For purposes of this subsection, the term 'wind energy credit' means the portion of the renewable electric production credit under section 45 determined with respect to a facility using wind to produce electricity.

   Inserted: "(C) Eligible taxpayer.--For purposes of this paragraph, the term 'eligible taxpayer' has the meaning given such term by section 469(l)(2)."

   Inserted: (b) Conforming Amendments.--Subclause (II) of section 38(c)(2)(A)(ii), as amended by this Act, subclause (II) of section 38(c)(3)(A)(ii), as amended by this Act, subclause (II) of section 38(c)(4)(A)(ii), as added by this Act, and subclause (II) of section 38(c)(5)(A)(ii), as added by this Act, are each amended by inserting "or wind energy credit" after "natural gas".

   Inserted: (c) Effective Date.--The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.

   Inserted: SEC. 4. APPLICATION OF CREDIT TO COOPERATIVES.

   Inserted: (a) In General.--Section 45(e), as redesignated and amended by this Act, (relating to definitions and special rules) is amended by adding at the end the following new paragraph:

   Inserted: "(9) Allocation of credit to shareholders of cooperative.--

   Inserted: "(A) Election to allocate.--

   Inserted: "(i) In general.--In the case of a cooperative organization described in section 1381(a), any portion of the credit determined under subsection (a) for the taxable year may, at the election of the organization, be apportioned pro rata among shareholders of the organization on the basis of the capital contributions of the shareholders to the organization.

   Inserted: "(ii) Form and effect of election.--An election under clause (i) for any taxable year shall be made on a timely filed return for such year. Such election, once made, shall be irrevocable for such taxable year.

   Inserted: "(B) Treatment of organizations and patrons.--The amount of the credit apportioned to any shareholders under subparagraph (A)--

   Inserted: "(i) shall not be included in the amount determined under subsection (a) with respect to the organization for the taxable year, and

   Inserted: "(ii) shall be included in the amount determined under subsection (a) for the taxable year of the shareholder with or within which the taxable year of the organization ends.

   Inserted: "(C) Special rules for decrease in credits for taxable year.--If the amount of the credit of a cooperative organization determined under subsection (a) for a taxable year is less than the amount of such credit shown on the return of the cooperative organization for such year, an amount equal to the excess of--

   Inserted: "(i) such reduction, over

   Inserted: "(ii) the amount not apportioned to such shareholders under subparagraph (A) for the taxable year, shall be treated as an increase in tax imposed by this chapter on the organization. Such increase shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit under this subpart or subpart A, B, E, or G.".

   Inserted: (b) Effective Date.--The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.

   Original wording

   At the end of title VII of division B, insert the following:

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

As printed