[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1266 Introduced in House (IH)]
108th CONGRESS
1st Session
H. R. 1266
To amend the Internal Revenue Code of 1986 to modify the credit for the
production of fuel from nonconventional sources and the credit for the
production of electricity to include landfill gas.
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IN THE HOUSE OF REPRESENTATIVES
March 13, 2003
Mr. Camp (for himself and Mr. Foley) introduced the following bill;
which was referred to the Committee on Ways and Means
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A BILL
To amend the Internal Revenue Code of 1986 to modify the credit for the
production of fuel from nonconventional sources and the credit for the
production of electricity to include landfill gas.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. CREDIT FOR PRODUCING FUEL FROM LANDFILL GAS.
(a) In General.--Section 29 of the Internal Revenue Code of 1986
(relating to credit for producing fuel from a nonconventional source)
is amended by adding at the end the following new subsection:
``(h) Extension and Modification for Facilities Producing Qualified
Fuels From Landfill Gas.--
``(1) In general.--In the case of a facility for producing
qualified fuel from landfill gas which is placed in service
after June 30, 1998, and before January 1, 2008, this section
shall apply to fuel produced at such facility during the 5-year
period beginning on the later of--
``(A) the date such facility was placed in service,
or
``(B) the date of the enactment of this subsection.
``(2) Reduction of credit for production from certain
landfill gas facilities.--In the case of a facility to which
paragraph (1) applies which is located at a landfill which is
required pursuant to 40 CFR 60.752(b)(2) or 40 CFR 60.33c to
install and operate a collection and control system which
captures gas generated within the landfill, subsection (a)(1)
shall be applied to gas so captured by substituting `$2' for
`$3' for the taxable year during which such system is required
to be installed and operated.
``(3) Special rules.--In determining the amount of credit
allowable under this section solely by reason of this
subsection--
``(A) Daily limit.--The amount of qualified fuels
sold during any taxable year which may be taken into
account by reason of this subsection with respect to
any facility shall not exceed an average barrel-of-oil
equivalent of 200,000 cubic feet of natural gas per
day. Days before the date the facility is placed in
service shall not be taken into account in determining
such average.
``(B) Extension period to commence with unadjusted
credit amount.--In the case of fuels sold after 2003,
subparagraph (B) of subsection (d)(2) shall be applied
by substituting `2003' for `1979'.''.
(b) Additional Definition.--Section 29(d) of the Internal Revenue
Code of 1986 (relating to other definitions and special rules) is
amended by adding at the end the following new paragraph:
``(9) Landfill gas facility.--
``(A) In general.--A facility for producing
qualified fuel from landfill gas, placed in service
before, on, or after the date of the enactment of this
paragraph, includes all wells, pipes, and other gas
collection equipment installed as part of the facility
over the life of the landfill, including any
modifications or expansions thereof, after the facility
is first placed in service.
``(B) Landfill gas.--The term `landfill gas' means
gas derived from the biodegradation of municipal solid
waste.''.
(c) Effective Date.--The amendments made by this section shall
apply to fuel sold after the date of the enactment of this Act.
SEC. 2. EXTENSION AND EXPANSION OF CREDIT FOR PRODUCTION OF ELECTRICITY
TO PRODUCTION FROM LANDFILL GAS.
(a) In General.--Section 45(c)(1) of the Internal Revenue Code of
1986 (defining qualified energy resources) is amended by striking
``and'' at the end of subparagraph (B), by striking the period at the
end of subparagraph (C) and inserting ``, and'', and by adding at the
end the following new subparagraph:
``(D) landfill gas.''.
(b) Qualified Facility.--Section 45(c)(3) of the Internal Revenue
Code of 1986 (relating to qualified facility) is amended by adding at
the end the following new subparagraph:
``(D) Landfill gas facility.--In the case of a
facility using landfill gas to produce electricity, the
term `qualified facility' means any such facility owned
by the taxpayer which is originally placed in service
before January 1, 2008.''.
(c) Special Rules and Definitions.--
(1) Reduced credit for certain preeffective date
facilities.--Section 45(d) of the Internal Revenue Code of 1986
(relating to definitions and special rules) is amended by
adding at the end the following new paragraph:
``(8) Reduced credit for certain preeffective date
facilities.--In the case of any facility described in
subparagraph (D) of paragraph (3) which is placed in service
before the date of the enactment of this subparagraph--
``(A) subsection (a)(1) shall be applied by
substituting `1.0 cents' for cents `1.5 cents', and
``(B) the 5-year period beginning on the date of
the enactment of this paragraph shall be substituted in
lieu of the 10-year period in subsection
(a)(2)(A)(ii).''.
(2) Coordination with section 29.--Section 45(c)(3) of such
Code (relating to qualified facility), as amended by subsection
(b), is amended by adding at the end the following new
subparagraph:
``(E) Coordination with section 29.--The term
`qualified facility' shall not include any facility the
production from which is taken into account in
determining any credit under section 29 for the taxable
year or any prior taxable year.''.
(3) Landfill gas.--Section 45(c) of such Code is amended by
adding at the end the following new paragraph:
``(5) Landfill gas.--The term `landfill gas' means gas
derived from the biodegradation of municipal solid waste.''.
(d) Effective Date.--The amendments made by this section shall
apply to electricity sold after the date of the enactment of this Act.
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