[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1476 Introduced in Senate (IS)]
108th CONGRESS
1st Session
S. 1476
To amend the Internal Revenue Code of 1986 to encourage investment in
facilities using wind to produce electricity, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 28 (legislative day, July 21), 2003
Mr. Harkin (for himself and Mr. Dayton) introduced the following bill;
which was read twice and referred to the Committee on Finance
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A BILL
To amend the Internal Revenue Code of 1986 to encourage investment in
facilities using wind to produce electricity, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Wind Power Tax Incentives Act of
2003''.
SEC. 2. OFFSET OF PASSIVE ACTIVITY LOSSES AND CREDITS OF AN ELIGIBLE
TAXPAYER FROM WIND ENERGY FACILITIES.
(a) In General.--Section 469 of the Internal Revenue Code of 1986
(relating to passive activity losses and credits limited) is amended by
redesignating subsections (l) and (m) as subsections (m) and (n) and by
inserting after subsection (k) the following new subsection:
``(l) Offset of Passive Activity Losses and Credits From Wind
Energy Facilities.--
``(1) In general.--Subsection (a) shall not apply to the
portion of the passive activity loss, or the deduction
equivalent (within the meaning of subsection (j)(5)) of the
portion of the passive activity credit, for any taxable year
which is attributable to all interests of an eligible taxpayer
in qualified facilities described in section 45(c)(3)(A).
``(2) Eligible taxpayer.--For purposes of this subsection--
``(A) In general.--The term `eligible taxpayer'
means, with respect to any taxable year, a taxpayer the
adjusted gross income (taxable income in the case of a
corporation) of which does not exceed $1,000,000.
``(B) Rules for computing adjusted gross income.--
Adjusted gross income shall be computed in the same
manner as under subsection (i)(3)(F).
``(C) Aggregation rules.--All persons treated as a
single employer under subsection (a) or (b) of section
52 shall be treated as a single taxpayer for purposes
of this paragraph.
``(D) Pass-thru entities.--In the case of a pass-
thru entity, this paragraph shall be applied at the
level of the person to which the credit is allocated by
the entity.''
(b) Effective Date.--The amendments made by this section shall
apply to facilities placed in service after the date of the enactment
of this Act.
SEC. 3. CREDIT FOR WIND ENERGY FACILITIES OF AN ELIGIBLE TAXPAYER
ALLOWED AGAINST MINIMUM TAX.
(a) In General.--Section 38(c) of the Internal Revenue Code of 1986
(relating to limitation based on amount of tax) is amended by
redesignating paragraph (4) as paragraph (5) and by inserting after
paragraph (3) the following new paragraph:
``(4) Special rules for wind energy credit.--
``(A) In general.--In the case of the wind energy
credit of an eligible taxpayer--
``(i) this section and section 39 shall be
applied separately with respect to such credit,
and
``(ii) in applying paragraph (1) to the
credit--
``(I) the tentative minimum tax
shall be treated as being zero, and
``(II) the limitation under
paragraph (1) (as modified by subclause
(I)) shall be reduced by the credit
allowed under subsection (a) for the
taxable year (other than the wind
energy credit).
``(B) Wind energy credit.--For purposes of this
subsection, the term `wind energy credit' means the
portion of the renewable electric production credit
under section 45 determined with respect to a facility
using wind to produce electricity.
``(C) Eligible taxpayer.--For purposes of this
paragraph, the term `eligible taxpayer' has the meaning
given such term by section 469(l)(2).''
(b) Conforming Amendments.--Paragraphs (2)(A)(ii)(II) and
(3)(A)(ii)(II) of section 38(c) of such Code are each amended by
inserting ``or wind energy credit'' after ``employee credit''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years ending after the date of the enactment of this
Act.
SEC. 4. APPLICATION OF CREDIT TO COOPERATIVES.
(a) In General.--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) Allocation of credit to shareholders of
cooperative.--
``(A) Election to allocate.--
``(i) In general.--In the case of a
cooperative organization described in section
1381(a), any portion of the credit determined
under subsection (a) for the taxable year may,
at the election of the organization, be
apportioned pro rata among shareholders of the
organization on the basis of the capital
contributions of the shareholders to the
organization.
``(ii) Form and effect of election.--An
election under clause (i) for any taxable year
shall be made on a timely filed return for such
year. Such election, once made, shall be
irrevocable for such taxable year.
``(B) Treatment of organizations and patrons.--The
amount of the credit apportioned to any shareholders
under subparagraph (A)--
``(i) shall not be included in the amount
determined under subsection (a) with respect to
the organization for the taxable year, and
``(ii) shall be included in the amount
determined under subsection (a) for the taxable
year of the shareholder with or within which
the taxable year of the organization ends.
``(C) Special rules for decrease in credits for
taxable year.--If the amount of the credit of a
cooperative organization determined under subsection
(a) for a taxable year is less than the amount of such
credit shown on the return of the cooperative
organization for such year, an amount equal to the
excess of--
``(i) such reduction, over
``(ii) the amount not apportioned to such
shareholders under subparagraph (A) for the
taxable year,
shall be treated as an increase in tax imposed by this
chapter on the organization. Such increase shall not be
treated as tax imposed by this chapter for purposes of
determining the amount of any credit under this subpart
or subpart A, B, E, or G.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years ending after the date of the enactment of this
Act.
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