S.Amdt. 1832

1. Adds SEC. ___. CREDIT FOR PRODUCTION OF BIOGAS FROM CERTAIN RENEWABLE FEEDSTOCKS wherever appropriate

   Adds a section

   Inserted: SEC. ___. CREDIT FOR PRODUCTION OF BIOGAS FROM CERTAIN RENEWABLE FEEDSTOCKS.

   Inserted: (a) In General.--Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 40A the following new section:

   Inserted: "SEC. 40B. BIOGAS PRODUCED FROM CERTAIN RENEWABLE FEEDSTOCKS.

   Inserted: "(a) General Rule.--For purposes of section 38, the qualified biogas production credit for any taxable year is an amount equal to the product of--

   Inserted: "(1) $4.27, and

   Inserted: "(2) each million British thermal units (mmBtu) of biogas--

   Inserted: "(A) produced by the taxpayer--

   Inserted: "(i) from qualified energy feedstock, and

   Inserted: "(ii) at a qualified facility, and

   Inserted: "(B) either--

   Inserted: "(i) sold by the taxpayer to an unrelated person during the taxable year, or

   Inserted: "(ii) used by the taxpayer during the taxable year.

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   Inserted: "(b) Definitions.--

   Inserted: "(1) Biogas.--The term 'biogas' means a gas that--

   Inserted: "(A) is derived by processing qualified energy feedstock through anaerobic digestion, gasification, or other similar processes, and

   Inserted: "(B) is an energy or fuel alternative to fossil fuels such as coal, natural gas, or petroleum-based products.

   Inserted: "(2) Qualified energy feedstock.--

   Inserted: "(A) In general.--The term 'qualified energy feedstock' means--

   Inserted: "(i) manure of agricultural livestock, including litter, wood shavings, straw, rice hulls, bedding material, and other materials incidentally collected with the manure,

   Inserted: "(ii) any nonhazardous, cellulosic, or other organic agricultural or food industry byproduct or waste material that is derived from--

   Inserted: "(I) harvesting residues,

   Inserted: "(II) wastes or byproducts from fermentation processes, ethanol production, biodiesel production, slaughter of agricultural livestock, food production, food processing, or food service, or

   Inserted: "(III) other organic wastes, byproducts, or sources, or

   Inserted: "(iii) solid wood waste materials, including waste pallets, crates, dunnage, manufacturing and construction wood wastes, and landscape or right-of-way tree trimmings.

   Inserted: "(B) Exclusions.--The term 'qualified energy feedstock' does not include--

   Inserted: "(i) pressure-treated, chemically-treated, or painted wood wastes,

   Inserted: "(ii) municipal solid waste,

   Inserted: "(iii) landfills, or

   Inserted: "(iv) paper that is commonly recycled.

   Inserted: "(C) Agricultural livestock.--The term 'agricultural livestock' means poultry, cattle, sheep, swine, goats, horses, mules, and other equines.

   Inserted: "(3) Qualified facility.--The term 'qualified facility' means a facility that--

   Inserted: "(A) uses anaerobic digestion technology, gasification technology, or other similar technologies to process qualified energy feedstock into biogas,

   Inserted: "(B) is owned by the taxpayer,

   Inserted: "(C) is located in the United States,

   Inserted: "(D) is originally placed in service before January 1, 2018, and

   Inserted: "(E) the biogas output of which is--

   Inserted: "(i) marketed through interconnection with a gas distribution or transmission pipeline, or

   Inserted: "(ii) used on-site or off-site in a quantity that is sufficient to offset the consumption of at least 50,000 mmBtu annually of commercially-marketed fuel derived from coal, crude oil, natural gas, propane, or other fossil fuel.

   Inserted: "(c) Special Rules.--For purposes of this section--

   Inserted: "(1) Production attributable to the taxpayer.--In the case of a facility in which more than 1 person has an ownership interest, except to the extent provided in regulations prescribed by the Secretary, production from the qualified facility shall be allocated among such persons in proportion to their respective ownership interests in the gross sales from such qualified facility.

   Inserted: "(2) Related persons.--Persons shall be treated as related to each other if such persons would be treated as a single employer under the regulations prescribed under section 52(b). In the case of a corporation which is a member of an affiliated group of corporations filing a consolidated return, such corporation shall be treated as selling biogas to an unrelated person if such biogas is sold to such a person by another member of such group.

   Inserted: "(3) Pass-thru in the case of estates and trusts.--Under regulations prescribed by the Secretary, rules similar to the rules of subsection (d) of section 52 shall apply.

   Inserted: "(4) Coordination with credit from producing fuel from a nonconventional source.--The amount of biogas produced and sold or used by the taxpayer during any taxable year which is taken into account under this section shall be reduced by the amount of biogas produced and sold by the taxpayer in such taxable year which is taken into account under section 45K.

   Inserted: "(5) Credit eligibility in the case of government-owned facilities using poultry waste.--In the case of a facility using poultry waste to produce biogas and owned by a governmental unit, subparagraph (B) of subsection (b)(3) shall be applied by substituting 'is leased or operated by the taxpayer' for 'is owned by the taxpayer'.

   Inserted: "(d) Transferability of Credit.--

   Inserted: "(1) In general.--A taxpayer may transfer the credit under this section through an assignment to any person. Such transfer may be revoked only with the consent of the Secretary.

   Inserted: "(2) Regulations.--The Secretary shall prescribe such regulations as necessary to ensure that any credit transferred under paragraph (1) is claimed once and not reassigned by such other person.

   Inserted: "(e) Adjustment Based on Inflation.--

   Inserted: "(1) In general.--The $4.27 amount under subsection (b)(1) shall be adjusted by multiplying such amount by the inflation adjustment factor for the calendar year in which the sale occurs. If any amount as increased under the preceding sentence is not a multiple of 0.1 cent, such amount shall be rounded to the nearest multiple of 0.1 cent.

   Inserted: "(2) Computation of inflation adjustment factor.--

   Inserted: "(A) In general.--The Secretary shall, not later than April 1 of each calendar year, determine and publish in the Federal Register the inflation adjustment factor in accordance with this paragraph.

   Inserted: "(B) Inflation adjustment factor.--The term 'inflation adjustment factor' means, with respect to a calendar year, a fraction the numerator of which is the GDP implicit price deflator for the preceding calendar year and the denominator of which is the GDP implicit price deflator for calendar year 2007. The term 'GDP implicit price deflator' means the most recent revision of the implicit price deflator for the gross domestic product as computed and published by the Department of Commerce before March 15 of the calendar year.

   Inserted: "(f) Application of Section.--This section shall apply with respect to biogas produced and sold--

   Inserted: "(1) after the date of the enactment of this section, and

   Inserted: "(2) before the date on which the Secretary of Energy certifies that 100,000,000 British thermal units of biogas have been produced at qualified facilities after such date.".

   Inserted: (b) Credit Treated as Business Credit.--Section 38(b) of such Code, as amended by this Act, is amended by striking "plus" at the end of paragraph (32), by striking the period at the end of paragraph (33) and inserting ", plus", and by adding at the end the following new paragraph:

   Inserted: "(34) the qualified biogas production credit under section 40B(a).".

   Inserted: (c) Credit Allowed Against AMT.--Section 38(c)(4)(B) of such Code is amended by striking "and" at the end of clause (i), by striking the period at the end of clause (ii)(II) and inserting ", and", and by adding at the end the following new clause:

   Inserted: "(iii) the credit determined under section 40B.".

   Inserted: (d) Clerical Amendment.--The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 40A the following new item:

   Inserted: "Sec. 40B. Biogas produced from certain renewable feedstocks.".

   Inserted: (e) Effective Date.--The amendments made by this section shall apply to biogas produced and sold or used in taxable years beginning after the date of the enactment of this Act.

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