S.Amdt. 3523

SA 3523. Mr. SCOTT (for himself, Mr. Graham, and Mr. Isakson)
submitted an amendment intended to be proposed to amendment SA 3464
submitted by Mr. Thune (for himself and Mr. Nelson) to the bill H.R.
636, to amend the Internal Revenue Code of 1986 to permanently extend
increased expensing limitations, and for other purposes; which was
ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. ____. MODIFICATION OF CREDIT FOR PRODUCTION FROM
ADVANCED NUCLEAR POWER FACILITIES.

(a) Special Rule for Public-private Partnerships.--
(1) In general.--Section 45J of the Internal Revenue Code
of 1986 is amended--
(A) by redesignating subsection (e) as subsection (f), and

[[Page S1817]]

(B) by inserting after subsection (d) the following new
subsection:
``(e) Special Rule for Public-private Partnerships.--
``(1) Transfer of credit.--
``(A) In general.--In the case of an advanced nuclear power
facility which is owned by a public private partnership or
co-owned by a qualified public entity and a non-public
entity, any qualified public entity which is a member of such
partnership or a co-owner of such facility may transfer such
entity's allocation of the credit under subsection (a), or
any portion thereof, to--
``(i) any non-public entity which is a member of such
partnership or which is a co-owner of such facility,
``(ii) any person responsible for designing the facility,
or
``(iii) any person responsible for, or participating in,
construction of the facility.

Any amount transferred to another person under this paragraph
shall be subject to the limitations under subsections (b) and
(c) and section 38.
``(B) Special rule for certain taxpayers.--Under
regulations promulgated by the Secretary, in the case of any
person described in subparagraph (ii) and (iii) of
subparagraph (A) to whom a credit is transferred--
``(i) such person shall be treated as an owner of the
advanced nuclear power facility to which the credit relates,
and
``(ii) such person shall be treated as the producer and
seller of so much of the electricity produced and sold at
such facility as bears the same ratio to all such electricity
produced and sold as the amount of credit transferred under
paragraph (1) bears to the total amount of credit allocated
to the qualified public entity.
``(2) Qualified public entity.--For purposes of this
subsection, the term `qualified public entity' means--
``(A) a Federal, State, or local government entity, or any
political subdivision, agency, or instrumentality thereof,
``(B) a mutual or cooperative electric company described in
section 501(c)(12) or section 1381(a)(2), or
``(C) a not-for-profit electric utility which has or had
received a loan or loan guarantee under the Rural
Electrification Act of 1936.
``(3) Verification of transfer of allocation.--A qualified
public entity that makes a transfer under paragraph (1), and
a nonpublic entity that receives an allocation under such a
transfer, shall provide verification of such transfer in such
manner and at such time as the Secretary shall prescribe.
``(4) Treatment of transfer under private use rules.--For
purposes of section 141(b)(1), any benefit derived by a non-
public entity in connection with a transfer under paragraph
(1) shall not be taken into account as a private business
use.''.
(2) Coordination with general business credit.--Subsection
(c) of section 38 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new paragraph:
``(7) Special rule for credit for production from advanced
nuclear power facilities.--
``(A) In general.--In the case of the credit for production
from advanced nuclear power facilities determined under
section 45J(a), paragraph (1) shall not apply with respect to
any qualified public entity (as defined in section 45J(e)(2))
which transfers the entity's allocation of such credit as
provided in section 45J(e)(1).
``(B) Verification of transfer.--Subparagraph (A) shall not
apply to any qualified public entity unless such entity
provides verification of a transfer of credit allocation as
required under section 45J(e)(3).''.
(b) Special Rule for Proceeds of Transfers for Mutual or
Cooperative Electric Companies.--Section 501(c)(12) of the
Internal Revenue Code of 1986 is amended by adding at the end
the following new subparagraph:
``(I) In the case of a mutual or cooperative electric
company described in this paragraph or an organization
described in section 1381(a)(2), income received or accrued
from a transfer described in section 45J(e)(1) shall be
treated as an amount collected from members for the sole
purpose of meeting losses and expenses.''.
(c) Permanent Extension for Qualification as Advanced
Nuclear Power Facility.--Subparagraph (B) of section
45J(d)(1) of the Internal Revenue Code of 1986 is amended by
striking ``and before January 1, 2021''.
(d) Modification of Limitation.--Section 45J(b) of the
Internal Revenue Code of 1986 is amended by striking
paragraphs (3) and (4) and inserting the following:
``(3) Allocation of limitation.--The Secretary shall
allocate the national megawatt capacity limitation to each
facility in an amount equal to the nameplate capacity of the
facility in the order in which the facility was placed in
service.''.
(e) Effective Date.--
(1) In general.--Except as provided in paragraphs (2) and
(3), the amendments made by this section shall apply to
electricity produced in taxable years beginning after the
date of the enactment of this Act.
(2) Proceeds of mutual or cooperative electric companies.--
The amendment made by subsection (b) shall apply to taxable
years beginning after the date of the enactment of this Act.
(3) Allocation of limitation.--The amendment made by
subsection (d) shall apply to allocations made after the date
of the enactment of this Act.
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