S.Amdt. 3618

SA 3618. Mr. HATCH (for himself, Mr. Heller, and Mr. Carper)
submitted an amendment intended to be proposed by him 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. ____. INVESTMENT CREDIT FOR WASTE HEAT TO POWER
PROPERTY.

(a) In General.--Subparagraph (A) of section 48(a)(3) of
the Internal Revenue Code of 1986 is amended by striking
``or'' at the end of clause (vi), by striking the comma at
the end of clause (vii) and inserting ``, or'', and by
inserting after clause (vii) the following new clause:
``(viii) waste heat to power property,''.
(b) Waste Heat to Power Property.--Subsection (c) of
section 48 of the Internal Revenue Code of 1986 is amended by
adding at the end the following new paragraph:
``(5) Waste heat to power property.--
``(A) In general.--The term `waste heat to power property'
means property--
``(i) comprising a system which generates electricity
through the recovery of a qualified waste heat resource, and
``(ii) which is placed in service before January 1, 2018.
``(B) Qualified waste heat resource.--The term `qualified
waste heat resource' means--
``(i) exhaust heat or flared gas from an industrial process
that does not have, as its primary purpose, the production of
electricity, and
``(ii) a pressure drop in any gas for an industrial or
commercial process.
``(C) Limitations.--
``(i) In general.--For purposes of subsection (a)(1), the
basis of any waste heat to power property taken into account
under this section shall not exceed the excess of--

``(I) the basis of such property, over
``(II) the fair market value of comparable property which
does not have the capacity to capture and convert a qualified
waste heat resource to electricity.

``(ii) Capacity limitation.--The term `waste heat to power
property' shall not include any property comprising a system
if such system has a capacity in excess of 50 megawatts.''.
(c) Effective Date.--The amendments made by this section
shall apply to periods after the date of the enactment of
this Act, in taxable years ending after such date, under
rules similar to the rules of section 48(m) of the Internal
Revenue Code of 1986 (as in effect on the day before the date
of the enactment of the Revenue Reconciliation Act of 1990).
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