S.Amdt. 885

1. Adds SEC. __. THREE-YEAR APPLICABLE RECOVERY PERIOD FOR DEPRECIATION OF QUALIFIED ENERGY MANAGEMENT DEVICES wherever appropriate

   Adds a section

   Inserted: SEC. __. THREE-YEAR APPLICABLE RECOVERY PERIOD FOR DEPRECIATION OF QUALIFIED ENERGY MANAGEMENT DEVICES.

   Inserted: (a) In General.--Section 168(e)(3)(A) (defining 3-year property) is amended by striking "and" at the end of clause (ii), by striking the period at the end of clause (iii) and inserting ", and", and by adding at the end the following new clause:

   Inserted: "(iv) any qualified energy management device.".

   Inserted: (b) Definition of Qualified Energy Management Device.--Section 168(i) (relating to definitions and special rules), as amended by this Act, is amended by inserting at the end the following new paragraph:

   Inserted: "(17) Qualified energy management device.--

   Inserted: "(A) In general.--The term 'qualified energy management device' means any energy management device which is placed in service before January 1, 2009, by a taxpayer who is a supplier of electric energy or a provider of electric energy services.

   Inserted: "(B) Energy management device.--For purposes of subparagraph (A), the term 'energy management device' means any meter or metering device which is used by the taxpayer--

   Inserted: "(i) to measure and record electricity usage data on a time-differentiated basis in at least 4 separate time segments per day, and

   Inserted: "(ii) to provide such data on at least a monthly basis to both consumers and the taxpayer.".

   Inserted: (c) Alternative System.--The table contained in section 168(g)(3)(B) is amended by inserting after the item relating to subparagraph (A)(iii) the following:

   Inserted: "(A)(iv).........................................................20".

   Inserted: (d) Effective Date.--The amendments made by this section (other than subsection (e)) shall apply to property placed in service after December 31, 2005, in taxable years ending after such date.

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   Inserted: (e) Freeze of Interest Suspension Rules With Respect to Listed Transactions.--

   Inserted: (1) In general.--Paragraph (2) of section 903(d) of the American Jobs Creation Act of 2004 is amended to read as follows:

   Inserted: "(2) Exception for reportable or listed transactions.--

   Inserted: "(A) In general.--The amendments made by subsection (c) shall apply with respect to interest accruing after October 3, 2004.

   Inserted: "(B) Special rule for certain listed transactions.--

   Inserted: "(i) In general.--Except as provided in clause (ii) or (iii), in the case of any listed transaction, the amendments made by subsection (c) shall also apply with respect to interest accruing on or before October 3, 2004.

   Inserted: "(ii) Participants in settlement initiatives.--Clause (i) shall not apply to a listed transaction if, as of May 9, 2005--

   Inserted: "(I) the taxpayer is participating in a published settlement initiative which is offered by the Secretary of the Treasury or his delegate to a group of similarly situated taxpayers claiming benefits from the listed transaction, or

   Inserted: "(II) the taxpayer has entered into a settlement agreement pursuant to such an initiative with respect to the tax liability arising in connection with the listed transaction.

   Inserted: Subclause (I) shall not apply to the taxpayer if, after May 9, 2005, the taxpayer withdraws from, or terminates, participation in the initiative or the Secretary or his delegate determines that a settlement agreement will not be reached pursuant to the initiative within a reasonable period of time.

   Inserted: "(iii) Closed transactions.--Clause (i) shall not apply to a listed transaction if, as of May 9, 2005--

   Inserted: "(I) the assessment of all Federal income taxes for the taxable year in which the tax liability to which the interest relates arose is prevented by the operation of any law or rule of law, or

   Inserted: "(II) a closing agreement under section 7121 has been entered into with respect to the tax liability arising in connection with the listed transaction.".

   Inserted: (2) Effective date.--The amendment made by this subsection shall take effect as if included in the provisions of the American Jobs Creation Act of 2004 to which it relates.

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   Original wording

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As printed