To amend the Internal Revenue Code of 1986 to extend through 2010 certain tax incentives for renewable energy production and energy efficient building construction.

1. Adds Subtitle B--Extending Tax Incentives for Renewable Energy Production and Energy Efficient Construction SECTION 411. EXTENSION OF RENEWABLE ENERGY PRODUCTION CREDIT THROUGH 2010 at the end of title IV

   Adds a section

   In S. 2020 · Placed on Calendar Senate

   (d) Effective Date.--The amendments made by this section shall apply to amounts paid or accrued during the period beginning after December 31, 2006, and before January 1, 2008, and properly allocable to such period, with respect to mortgage insurance contracts issued after December 31, 2006.

   Inserted: Subtitle B--Extending Tax Incentives for Renewable Energy Production and Energy Efficient Construction SECTION 411. EXTENSION OF RENEWABLE ENERGY PRODUCTION CREDIT THROUGH 2010.

   Inserted: Paragraphs (1), (2), (3), (4), (5), (6), (7), and (9) of section 45(d) (relating to qualified facilities) are amended by striking "2008" each place it appears and inserting "2011".

   Inserted: SEC. 412. EXTENSION OF RENEWABLE ENERGY INVESTMENT TAX CREDIT THROUGH 2010.

   Inserted: Paragraphs (2)(A)(i)(II) and (3)(A)(ii) (relating to energy credit) is amended by striking "2008" both places it appears and inserting "2011".

   Inserted: SEC. 413. EXTENSION OF CLEAN RENEWABLE ENERGY BONDS THROUGH 2010.

   Inserted: Section 54(m) (relating to termination) is amended by striking "2007" and inserting "2010".

   Inserted: SEC. 414. EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION THROUGH 2010.

   Inserted: Section 179D(h) (relating to termination) is amended by striking "2007" and inserting "2010".

   Inserted: SEC. 415. EXTENSION OF NEW ENERGY EFFICIENT HOME CREDIT THROUGH 2010.

   Inserted: Section 45L(g) (relating to termination) is amended by striking "2007" and inserting "2010".

   Inserted: SEC. 416. EXTENSION OF RESIDENTIAL RENEWABLE ENERGY EFFICIENT PROPERTY CREDIT THROUGH 2010.

   Inserted: Section 25D(g) is amended to read as follows:

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   Inserted: "(a) Termination.--The credit allowed under this section shall not apply to--

   Inserted: "(1) property described in paragraph (1) or (2) of subsection (d) placed in service after December 31, 2010, and

   Inserted: "(2) property described in subsection (d)(3) placed in service after December 31, 2007.".

   Inserted: SEC. 417. EXTENSION OF NONBUSINESS ENERGY PROPERTY CREDIT THROUGH 2010.

   Inserted: Section 25C(g) (relating to termination) is amended by striking "2007" and inserting "2010".

   Inserted: SEC. 418. IMPOSITION OF WITHHOLDING ON CERTAIN PAYMENTS MADE BY GOVERNMENT ENTITIES.

   Inserted: (a) In General.--Section 3402 is amended by adding at the end the following new subsection:

   Inserted: "(t) Extension of Withholding to Certain Payments Made by Government Entities.--

   Inserted: "(1) General rule.--The Government of the United States, every State, every political subdivision thereof, and every instrumentality of the foregoing (including multi-State agencies) making any payment for goods and services which is subject to withholding shall deduct and withhold form such payment a tax in an amount equal to 3 percent of such payment.

   Inserted: "(2) Exceptions.--Paragraph (1) shall not apply to any payment--

   Inserted: "(A) except as provided in subparagraph (B), which is subject to withholding under any other provision of this chapter or chapter 3,

   Inserted: "(B) which is subject to withholding under section 3406 and from which amounts are being withheld under such section, "(C) of interest,

   Inserted: "(D) for real property,

   Inserted: "(E) to any tax-exempt entity, foreign government, or other entity subject to the requirements of paragraph (1),

   Inserted: "(F) made pursuant to a classified or confidential contract (as defined in section 6050M(e)(3)), and

   Inserted: "(G) made by a political subdivision of a State (or any instrumentality thereof) which makes less than $100,000,000 of such payments annually.

   Inserted: "(3) Coordination with other sections.--For purposes of sections 3403 and 3404 and for purposes of so much of subtitle F (except section 7205) as relates to this chapter, payments to any person of any payment for goods and services which is subject to withholding shall be treated as if such payments were wages paid by an employer to an employee.".

   Inserted: (b) Effective Date.--The amendment made by this section shall apply to payments made after December 31, 2005.

   Original wording

   At the end of title IV, add the following:

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As printed