S.Amdt. 1494

SA 1494. Mr. LEE submitted an amendment intended to be proposed to
amendment SA 1407 proposed by Ms. Murkowski to the bill S. 2657, to
support innovation in advanced geothermal research and development, and
for other purposes; which was ordered to lie on the table; as follows:

At the end, add the following:

TITLE IV--REPEAL OF ENERGY TAX EXPENDITURES

SEC. 4001. SHORT TITLE; ETC.

(a) Short Title.--This title may be cited as the ``Energy
Tax Expenditure Repeal Act of 2020''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this title an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a
section or other provision, the reference shall be considered
to be made to a section or other provision of the Internal
Revenue Code of 1986.

SEC. 4002. REPEAL OF CREDIT FOR NONBUSINESS ENERGY PROPERTY.

(a) In General.--Subpart A of part IV of subchapter A of
chapter 1 is amended by striking section 25C (and by striking
the item relating to such section in the table of sections of
such subpart).
(b) Conforming Amendment.--Section 1016(a) is amended by
striking paragraph (33).
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after December 31,
2017.

SEC. 4003. REPEAL OF CREDIT FOR RESIDENTIAL ENERGY EFFICIENT
PROPERTY.

(a) In General.--Subpart A of part IV of subchapter A of
chapter 1 is amended by striking section 25D (and by striking
the item relating to such section in the table of sections
for such subpart).
(b) Conforming Amendments.--
(1) Section 23(c)(1) is amended by striking ``and section
25D''.
(2) Section 25(e)(1)(C) is amended by striking ``sections
23 and 25D'' and inserting ``section 23''.
(3) Section 1016(a) is amended by striking paragraph (34).
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after December 31,
2020.

SEC. 4004. REPEAL OF ALTERNATIVE MOTOR VEHICLE CREDIT.

(a) In General.--Subpart B of part IV of subchapter A of
chapter 1 is amended by striking section 30B (and by striking
the item relating to such section in the table of sections
for such subpart).
(b) Conforming Amendments.--
(1) Section 38(b) is amended by striking paragraph (24).
(2) Section 1016(a) is amended by striking paragraph (35).
(3) Section 6501(m) is amended by striking ``30B(h)(9),''.
(4) Section 301(3)(B) of the Energy Policy Act of 1992 (42
U.S.C. 13211(3)(B)) is amended--
(A) in clause (i), by inserting ``, as in effect on the day
before the date of the enactment of the Energy Tax
Expenditure Repeal Act of 2020'' after ``section 30B(b)(3) of
title 26'',
(B) in clause (ii), by inserting ``, as in effect on the
day before the date of the enactment of that Act'' after
``section 30B(c)(3) of that title'', and
(C) in clause (iii), by inserting ``, as in effect on the
day before the date of the enactment of that Act'' after
``section 30B(d)(3) of that title''.
(5) Section 508(a)(2) of the Energy Policy Act of 1992 (42
U.S.C. 13258(a)(2)) is amended by inserting ``, as in effect
on the day before the date of the enactment of the Energy Tax
Expenditure Repeal Act of 2020'' after ``section 30B(d)(3) of
title 26''.
(c) Effective Date.--The amendments made by this section
shall apply to property purchased after December 31, 2017.

SEC. 4005. REPEAL OF ALTERNATIVE FUEL VEHICLE REFUELING
PROPERTY CREDIT.

(a) In General.--Subpart B of part IV of subchapter A of
chapter 1 is amended by striking section 30C (and by striking
the item relating to such section in the table of sections
for such subpart).
(b) Conforming Amendments.--
(1) Section 38(b) is amended by striking paragraph (25).
(2) Section 55(c)(3) is amended by striking ``sections
30C(d)(2) and 38(c)'' and inserting ``section 38(c)''.
(3) Section 1016(a) is amended by striking paragraph (36).
(4) Section 6501(m) is amended by striking ``30C(e)(5),''.
(5) Section 244(b) of the Energy Independence and Security
Act of 2007 (42 U.S.C. 17052(b)) is amended by striking
paragraph (6).
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after December 31,
2017.

SEC. 4006. REPEAL OF CREDIT FOR NEW QUALIFIED PLUG-IN
ELECTRIC DRIVE MOTOR VEHICLES.

(a) In General.--Subpart B of part IV of subchapter A of
chapter 1 is amended by striking section 30D (and by striking
the item relating to such section in the table of sections
for such subpart).
(b) Conforming Amendments.--
(1) Section 38(b) is amended by striking paragraph (30).
(2) Section 1016(a) is amended by striking paragraph (37).
(3) Section 6501(m) is amended by striking ``30D(e)(4),''.
(4) Section 166(b)(5)(A)(ii) of title 23, United States
Code, is amended by inserting ``, as in effect on the day
before the date of the enactment of the Energy Tax
Expenditure Repeal Act of 2020'' after ``section 30D(d)(1) of
the Internal Revenue Code of 1986''.
(c) Effective Date.--The amendments made by this section
shall apply to vehicles acquired after December 31, 2020.

SEC. 4007. REPEAL OF ENHANCED OIL RECOVERY CREDIT.

(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 is amended by striking section 43 (and by striking
the item relating to such section in the table of sections
for such subpart).
(b) Conforming Amendments.--
(1) Section 38(b) is amended by striking paragraph (6).
(2) Section 45K(b) is amended by striking paragraph (5).
(3) Section 196(c) is amended by striking paragraph (5).
(4) Section 6501(m) is amended by striking ``43,''.
(c) Effective Date.--The amendments made by this section
shall apply to amounts paid or incurred in taxable years
beginning after December 31, 2020.

SEC. 4008. REPEAL OF CREDIT FOR ELECTRICITY PRODUCED FROM
CERTAIN RENEWABLE RESOURCES.

(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 is amended by striking section 45 (and by striking
the item relating to such section in the table of sections
for such subpart).
(b) Conforming Amendments.--
(1) Section 38 is amended--
(A) in subsection (b), by striking paragraph (8), and
(B) in subsection (c)(4)(B), by striking clauses (iv) and
(v).
(2) Section 45K(g)(2) is amended by striking subparagraph
(E).
(3) Section 55(c)(1) is amended by striking
``45(e)(11)(C),''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after December 31,
2020.

SEC. 4009. REPEAL OF CREDIT FOR PRODUCING OIL AND GAS FROM
MARGINAL WELLS.

(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 is amended by striking section 45I (and by striking
the item relating to such section in the table of sections
for such subpart).
(b) Conforming Amendment.--Section 38(b) is amended by
striking paragraph (19).
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2020.

SEC. 4010. REPEAL OF CREDIT FOR PRODUCTION FROM ADVANCED
NUCLEAR POWER FACILITIES.

(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 is amended by striking section 45J (and by striking
the item relating to such section in the table of sections
for such subpart).
(b) Conforming Amendments.--
(1) Section 38(b) is amended by striking paragraph (21).
(2) Section 501(c)(12) is amended by striking subparagraph
(I).
(c) Effective Date.--The amendments made by this section
shall apply to electricity produced and sold after December
31, 2020.

SEC. 4011. REPEAL OF NEW ENERGY EFFICIENT HOME CREDIT.

(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 is amended by striking section 45L (and by striking
the item relating to such section in the table of sections
for such subpart).
(b) Conforming Amendments.--
(1) Section 38(b) is amended by striking paragraph (23).
(2) Section 196(c) is amended--
(A) by inserting ``and'' at the end of paragraph (12),
(B) by striking paragraph (13), and
(C) by redesignating paragraph (14) as paragraph (13).
(3) Section 1016(a) is amended by striking paragraph (32).
(c) Effective Date.--The amendments made by this section
shall apply to homes acquired after December 31, 2017.

SEC. 4012. REPEAL OF CREDIT FOR CARBON OXIDE SEQUESTRATION.

(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 is amended by striking section 45Q (and by striking
the item relating to such section in the table of sections
for such subpart).
(b) Conforming Amendment.--Section 38(b) is amended by
striking paragraph (29).
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2020.

SEC. 4013. REPEAL OF ENERGY CREDIT.

(a) In General.--Subpart E of part IV of subchapter A of
chapter 1 is amended by striking section 48 (and by striking
the item relating to such section in the table of sections
for such subpart).
(b) Conforming Amendments.--
(1) Section 38(c)(4)(B) is amended by striking clause (x).
(2) Section 45K(b)(3)(A)(i)(III) is amended by inserting
``, as in effect on the day before the date of the enactment
of the Energy Tax Expenditure Repeal Act of 2020'' after
``section 48(a)(4)(C)''.
(3) Section 168(e)(3)(B)(vi)(I) is amended by inserting ``,
as in effect on the day before the date of the enactment of
the Energy Tax Expenditure Repeal Act of 2020'' after
``section 48(a)(3)''.

[[Page S1488]]

(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after December 31,
2020.

SEC. 4014. REPEAL OF QUALIFYING ADVANCED COAL PROJECT CREDIT.

(a) In General.--Subpart E of part IV of subchapter A of
chapter 1 is amended by striking section 48A (and by striking
the item relating to such section in the table of sections
for such subpart).
(b) Conforming Amendment.--Section 411 of the Energy Policy
Act of 2005 (42 U.S.C. 15971) is amended by striking
subsection (d).
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after December 31,
2020.

SEC. 4015. REPEAL OF QUALIFYING GASIFICATION PROJECT CREDIT.

(a) In General.--Subpart E of part IV of subchapter A of
chapter 1 is amended by striking section 48B (and by striking
the item relating to such section in the table of sections
for such subpart).
(b) Effective Date.--The amendments made by this section
shall apply to property placed in service after December 31,
2020.

SEC. 4016. REPEAL OF QUALIFYING ADVANCED ENERGY PROJECT
CREDIT.

(a) In General.--Subpart E of part IV of subchapter A of
chapter 1 is amended by striking section 48C (and by striking
the item relating to such section in the table of sections
for such subpart).
(b) Effective Date.--The amendments made by this section
shall apply to property placed in service after December 31,
2020.

SEC. 4017. REPEAL OF EXCLUSION OF ENERGY CONSERVATION
SUBSIDIES PROVIDED BY PUBLIC UTILITIES.

(a) In General.--Part III of subchapter B of chapter 1 is
amended by striking section 136 (and by striking the item
relating to such section in the table of sections for such
part).
(b) Effective Date.--The amendments made by this section
shall apply to amounts received after December 31, 2020.

SEC. 4018. EXPENSING OF GEOLOGICAL AND GEOPHYSICAL
EXPENDITURES.

(a) In General.--Part VI of subchapter B of chapter 1 is
amended by inserting after section 176 the following new
section:

``SEC. 177. GEOLOGICAL AND GEOPHYSICAL EXPENDITURES.

``(a) Treatment as Expenses.--A taxpayer may elect to treat
any geological and geophysical expenses paid or incurred in
connection with the exploration for, or development of, oil
or gas within the United States (as defined in section 638)
which are paid or incurred by the taxpayer during the taxable
year as expenses which are not chargeable to capital account.
The expenditures so treated shall be allowed as a deduction.
``(b) Election.--An election under subsection (a) shall be
made at such time and in such manner as the Secretary
prescribes by regulations.''.
(b) Conforming Amendments.--
(1) Section 167 is amended by striking subsection (h).
(2) Section 263A(c)(3) is amended by striking ``167(h),''.
(3) The table of sections for part VI of subchapter B of
chapter 1 is amended by inserting after the item relating to
section 176 the following new item:

``Sec. 177. Geological and geophysical expenditures.''.
(c) Effective Date.--The amendments made by this section
shall apply to amounts paid or incurred after December 31,
2020.

SEC. 4019. PERMANENT EXPENSING OF COSTS RELATED TO SPECIFIED
ENERGY PROPERTY.

(a) In General.--Section 168(k) is amended by adding at the
end the following new paragraph:
``(11) Permanent expensing of costs related to specified
energy property.--
``(A) In general.--In the case of any specified energy
property--
``(i) paragraphs (2)(A)(iii) and (8) shall not apply, and
``(ii) the applicable percentage shall be 100 percent.
``(B) Specified energy property.--For purposes of this
paragraph, the term `specified energy property' means any
qualified property which is described in--
``(i) clause (vi) of subparagraph (B) of subsection (e)(3),
``(ii) clauses (iii) and (iv) of subparagraph (C) of such
subsection,
``(iii) clause (iii) or (iv) of subparagraph (D) of such
subsection, or
``(iv) clauses (iii) through (vi) of subparagraph (E) of
such subsection.''.
(b) Conforming Amendment.--Section 168(k)(6)(A) is amended
by inserting ``or paragraph (11)'' after ``this paragraph''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after December 31,
2020.

SEC. 4020. PERMANENT EXPENSING OF COSTS RELATED TO CERTAIN
ATMOSPHERIC POLLUTION CONTROL FACILITIES.

(a) In General.--Paragraph (11) of section 168(k), as added
by section 4019 of this Act, is amended--
(1) in the heading, by inserting ``and certain atmospheric
pollution control facilities'' after ``specified energy
property'', and
(2) in subparagraph (A), by inserting ``or any atmospheric
pollution control facility (as described in section
169(d)(5))'' after ``specified energy property''.
(b) Effective Date.--The amendments made by this section
shall apply to property placed in service after December 31,
2020.

SEC. 4021. REPEAL OF DEDUCTION FOR ENERGY EFFICIENT
COMMERCIAL BUILDINGS.

(a) In General.--Part VI of subchapter B of chapter 1 is
amended by striking section 179D (and by striking the item
relating to such section in the table of sections for such
part).
(b) Conforming Amendment.--
(1) Section 263(a)(1) is amended--
(A) in subparagraph (I), by adding ``or'' at the end,
(B) by striking subparagraph (J), and
(C) by redesignating subparagraph (K) as subparagraph (J).
(2) Section 312(k)(3)(B) is amended by striking ``, 179D''
each place it appears.
(3) Section 1016(a) is amended by striking paragraph (31).
(4) Section 1245(a) is amended--
(A) in paragraph (2)(C), by striking ``179,'', and
(B) in paragraph (3)(C), by striking ``179,''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after December 31,
2017.

SEC. 4022. REPEAL OF PERCENTAGE DEPLETION.

(a) In General.--Part I of subchapter I of chapter 1 is
amended by striking sections 613 and 613A (and by striking
the items relating to such sections in the table of sections
for such part).
(b) Conforming Amendments.--
(1) Section 45H(d) is amended by inserting ``, as in effect
on the day before the date of the enactment of the Energy Tax
Expenditure Repeal Act of 2020'' after ``section
613A(d)(3)''.
(2) Section 57(a)(1) is amended by striking the second
sentence.
(3) Section 263(i)(2)(A) is amended by striking
``(determined without regard to section 613)''.
(4) Section 291(a) is amended by striking paragraph (2).
(5) Section 381(c) is amended by striking paragraph (18).
(6) Section 465(c)(1)(E) is amended by inserting ``, as in
effect on the day before the date of the enactment of the
Energy Tax Expenditure Repeal Act of 2020'' after ``section
613(e)(2)''.
(7) Section 611(a) is amended by striking the second
sentence.
(8) Section 614(d) is amended by striking ``includes only''
and all that follows and inserting ``includes only an
interest burdened by the costs of production.''.
(9) Section 631(c) is amended by striking the second
sentence.
(10) Section 636(a) is amended by striking ``(for purposes
of section 613)''.
(11) Section 705(a) is amended--
(A) in paragraph (1), by adding ``and'' at the end of
subparagraph (C),
(B) in paragraph (2), by striking ``; and'' at the end of
subparagraph (B) and inserting a period, and
(C) by striking paragraph (3).
(12) Section 901(e)(1)(A) is amended by striking ``(or, if
smaller'' and all that follows through ``under section
613)''.
(13) Section 993(c)(2)(C) is amended by inserting ``(as
each such section was in effect on the day before the date of
the enactment of the Energy Tax Expenditure Repeal Act of
2020)'' after ``section 613 or 613A''.
(14) Section 1202(e)(3)(D) is amended by inserting ``(as
each such section was in effect on the day before the date of
the enactment of the Energy Tax Expenditure Repeal Act of
2020)'' after ``section 613 or 613A''.
(15) Section 1367(a)(2) is amended by adding ``and'' at the
end of subparagraph (C), by striking ``, and'' at the end of
subparagraph (D) and inserting a period, and by striking
subparagraph (E).
(16) Section 1446(c) is amended by striking paragraph (2)
and by redesignating paragraph (3) as paragraph (2).
(17) Section 4612(a)(7) is amended by inserting ``(as in
effect on the day before the date of the enactment of the
Energy Tax Expenditure Repeal Act of 2020)'' after ``section
613''.
(18) Section 4940(c)(3)(B) is amended--
(A) by striking clause (ii), and
(B) by striking all that precedes ``The deduction
provided'' and inserting the following:
``(B) Modifications.--For purposes of subparagraph (A), the
deduction provided''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2020.

SEC. 4023. REPEAL OF CREDIT FOR ALCOHOL FUEL, BIODIESEL, AND
ALTERNATIVE FUEL MIXTURES.

(a) In General.--Subchapter B of chapter 65 of subtitle F
is amended by striking section 6426 (and by striking the item
relating to such section in the table of sections for such
subchapter).
(b) Conforming Amendments.--
(1) Section 40(c) is amended by striking ``, section
6426,''.
(2) Section 40A is amended--
(A) in subsection (c), by striking ``6426 or'', and
(B) in subsection (f)(4)(B), by striking ``and section
6426(c)''.
(3) Section 4101(a)(1) is amended by inserting ``(as each
such section was in effect on the day before the date of the
enactment of the Energy Tax Expenditure Repeal Act of 2020)''
after ``section 6426(b)(4)(A)''.
(4) Section 4104(a)(2) is amended by striking ``, 6426,''.
(5) Section 6427 is amended--
(A) by striking subsection (e), and
(B) in subsection (i), by striking paragraph (3).
(6) Section 9503(b)(1) is amended by striking ``taxes
received under sections 4041 and

[[Page S1489]]

4081 shall be determined without reduction for credits under
section 6426 and''.
(c) Effective Date.--The amendments made by this section
shall apply to fuel sold or used after December 31, 2020.

SEC. 4024. CONFORMING AMENDMENTS RELATING TO MULTIPLE
SECTIONS.

(a) In General.--
(1) At-risk rules.--Section 49(a)(1)(C) is amended by
striking ``means'' and all that follows through the period
and inserting ``means the portion of the basis of any
qualified rehabilitated building attributable to qualified
rehabilitation expenditures.''.
(2) Progress expenditures for investment credit property.--
Section 50(a)(2) is amended by striking subparagraph (E).
(3) Applicable section 38 credits.--Section 59A(b)(4) is
amended by striking ``properly allocable'' and all that
follows through the period and inserting ``properly allocable
to the low-income housing credit determined under section
42(a).''.
(4) Amount of investment credit.--Section 46 is amended--
(A) in paragraph (1), by inserting ``and'' at the end,
(B) by striking paragraphs (2) through (5), and
(C) by redesignating paragraph (6) as paragraph (2).
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2020.
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