II
109th CONGRESS
1st Session
S. 1093
IN THE SENATE OF THE UNITED STATES
May 20, 2005
Mr. Salazar introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To reauthorize and revise the Renewable Energy Production Incentive program, and for other purposes.
Short title
This Act may be cited as the
Research and Development Investment
Act
.
Reauthorize and revise the Renewable Energy Production Incentive program
Incentive payments
Section 1212(a) of
the Energy Policy Act of 1992 (42 U.S.C. 13317(a)) is amended
by striking and which satisfies
and all that follows through
Secretary shall establish.
and inserting . If there are
insufficient appropriations to make full payments for electric production from
all qualified renewable energy facilities in any given year, the Secretary
shall assign 60 percent of appropriated funds for that year to facilities that
use solar, wind, geothermal, or closed-loop (dedicated energy crops) biomass
technologies to generate electricity, and assign the remaining 40 percent to
other projects. The Secretary may, after transmitting to the Congress an
explanation of the reasons therefor, alter the percentage requirements of the
preceding sentence.
.
Qualified renewable energy facility
Section 1212(b) of the Energy Policy Act of 1992 (42 U.S.C. 13317(b)) is amended—
by striking a State or any
political
and all that follows through nonprofit electrical
cooperative
and inserting a not-for-profit electric cooperative,
a public utility described in section 115 of the Internal Revenue Code of 1986,
a State, Commonwealth, territory, or possession of the United States or the
District of Columbia, or a political subdivision thereof, or an Indian tribal
government of subdivision thereof,
; and
by inserting landfill gas,
after wind, biomass,
.
Eligibility window
Section 1212(c) of the
Energy Policy Act of 1992 (42 U.S.C. 13317(c)) is amended
by striking during the 10-fiscal year period beginning with the first
full fiscal year occurring after the enactment of this section
and
inserting after October 1, 2005, and before October 1,
2015
.
Amount of payment
Section 1212(e)(1) of
the Energy Policy Act of 1992 (42 U.S.C. 13317(e)(1)) is
amended by inserting landfill gas,
after wind,
biomass,
.
Sunset
Section 1212(f) of the Energy Policy Act of
1992 (42 U.S.C.
13317(f)) is amended by striking the expiration
of
and all that follows through of this section
and
inserting September 30, 2025
.
Authorization of appropriations
Section 1212(g) of the Energy Policy Act of 1992 (42 U.S.C. 13317(g)) is amended to read as follows:
Authorization of appropriations
There are authorized to be appropriated to carry out this section $20,000,000 for each of fiscal years 2005 through 2025, to remain available until expended.
.
Extension and expansion of credit for electricity produced from certain renewable resources
Extension
Section 45(d) of the Internal Revenue Code
of 1986 (relating to qualified facilities) is amended by striking
2006
and inserting 2011
.
Incremental geothermal energy and incremental hydropower production
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 (F), by
striking the period at the end of subparagraph (G) and inserting a comma, and
by adding at the end the following new subparagraphs:
incremental geothermal energy production, and
incremental hydropower production.
.
Definition of resources
Section 45(c) of such Code is amended by adding at the end the following new paragraphs:
Incremental geothermal production
In general
The term incremental geothermal production means for any taxable year the excess of—
the total kilowatt hours of electricity produced from an incremental geothermal facility described in subsection (d)(9), over
the average annual kilowatt hours produced at such facility for 5 of the previous 7 calendar years before the date of the enactment of this paragraph after eliminating the highest and the lowest kilowatt hour production years in such 7-year period.
Special rule
A facility described in subsection (d)(9) which was placed in service at least 7 years before the date of the enactment of this paragraph shall commencing with the year in which such date of enactment occurs, reduce the amount calculated under subparagraph (A)(ii) each year, on a cumulative basis, by the average percentage decrease in the annual kilowatt hour production for the 7-year period described in subparagraph (A)(ii) with such cumulative sum not to exceed 30 percent.
Incremental hydropower production
In general
The term incremental hydropower production means for any taxable year an amount equal to the percentage of total kilowatt hours of electricity produced from an incremental hydropower facility described in subsection (d)(10) attributable to efficiency improvements or additions of capacity as determined under subparagraph (B).
Determination of incremental hydropower production
For purposes of subparagraph (A), incremental hydropower production for any incremental hydropower facility for any taxable year shall be determined by establishing a percentage of average annual hydropower production at the facility attributable to the efficiency improvements or additions of capacity using the same water flow information used to determine an historic average annual hydropower production baseline for such facility. Such percentage and baseline shall be certified by the Federal Energy Regulatory Commission. For purposes of the preceding sentence, the determination of incremental hydropower production shall not be based on any operational changes at such facility not directly associated with the efficiency improvements or additions of capacity.
.
Facilities
Section 45(d) of such Code (relating to qualified facilities) is amended by adding at the end the following new paragraphs:
Incremental geothermal facility
In the case of a facility using incremental geothermal to produce electricity, the term qualified facility means any facility owned by the taxpayer which is originally placed in service before the date of the enactment of this paragraph, but only to the extent of its incremental geothermal production. In the case of a qualified facility described in the preceding sentence, the 10-year period referred to in subsection (a) shall be treated as beginning not earlier than such date of enactment. Such term shall not include any property described in section 48(a)(3) the basis of which is taken into account by the taxpayer for purposes of determining the energy credit under section 48.
Incremental hydropower facility
In the case of a facility using incremental hydropower to produce electricity, the term qualified facility means any non-Federal hydroelectric facility owned by the taxpayer which is originally placed in service before the date of the enactment of this paragraph, but only to the extent of its incremental hydropower production. In the case of a qualified facility described in the preceding sentence, the 10-year period referred to in subsection (a) shall be treated as beginning not earlier than such date of enactment.
.
Effective date
The amendments made by this section shall apply to facilities placed in service after December 31, 2005.
Credit for residential energy efficient property
In general
Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to nonrefundable personal credits) is amended by inserting after section 25B the following new section:
Residential solar and geothermal property
Allowance of credit
In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 10 percent of the qualified energy property expenditures made by the taxpayer during such year.
Limitations
No credit shall be allowed under this section for an item of property unless—
the original use of such property commences with the taxpayer,
such property reasonably can be expected to remain in use for at least 5 years, and
such property is installed on or in connection with a dwelling unit located in the United States and used as a residence by the taxpayer.
Qualified energy property expenditures
For purposes of this section, the term qualified energy property expenditure means an expenditure for energy property (as defined in paragraph (3) of section 48(a) (determined without regard to subparagraphs (B) and (C) thereof).
Special rules
For purposes of this section—
Solar panels
No expenditure relating to a solar panel or other property installed as a roof (or portion thereof) shall fail to be treated as property described in subsection (c) solely because it constitutes a structural component of the structure on which it is installed.
Swimming pools, etc., used as storage medium
Expenditures which are properly allocable to a swimming pool, hot tub, or any other energy storage medium which has a function other than the function of such storage shall not be taken into account for purposes of this section.
Dollar amounts in case of joint occupancy
In the case of any dwelling unit which is jointly occupied and used during any calendar year as a residence by 2 or more individuals, the following rules shall apply:
The amount of the credit allowable under subsection (a) by reason of expenditures made during such calendar year by any of such individuals with respect to such dwelling unit shall be determined by treating all of such individuals as 1 taxpayer whose taxable year is such calendar year.
There shall be allowable, with respect to such expenditures to each of such individuals, a credit under subsection (a) for the taxable year in which such calendar year ends in an amount which bears the same ratio to the amount determined under subparagraph (A) as the amount of such expenditures made by such individual during such calendar year bears to the aggregate of such expenditures made by all of such individuals during such calendar year.
Tenant-stockholder in cooperative housing corporation
In the case of an individual who is a tenant-stockholder (as defined in section 216) in a cooperative housing corporation (as defined in such section), such individual shall be treated as having made the individual’s tenant-stockholder’s proportionate share (as defined in section 216(b)(3)) of any expenditures of such corporation.
Condominiums
In general
In the case of an individual who is a member of a condominium management association with respect to a condominium which the individual owns, such individual shall be treated as having made the individual’s proportionate share of any expenditures of such association.
Condominium management association
For purposes of this paragraph, the term condominium management association means an organization which meets the requirements of paragraph (1) of section 528(c) (other than subparagraph (E) thereof) with respect to a condominium project substantially all of the units of which are used as residences.
Allocation in certain cases
If less than 80 percent of the use of an item is for nonbusiness purposes, only that portion of the expenditures for such item which is properly allocable to use for nonbusiness purposes shall be taken into account.
When expenditure made; amount of expenditure
In general
Except as provided in subparagraph (B), an expenditure with respect to an item shall be treated as made when the original installation of the item is completed.
Expenditures part of building construction
In the case of an expenditure in connection with the construction or reconstruction of a structure, such expenditure shall be treated as made when the original use of the constructed or reconstructed structure by the taxpayer begins.
Amount
The amount of any expenditure shall be the cost thereof.
Property financed by subsidized energy financing
For purposes of determining the amount of expenditures made by any individual with respect to any dwelling unit, there shall not be taken into account expenditures which are made from subsidized energy financing (as defined in section 48(a)(4)(C)).
Basis adjustments
For purposes of this subtitle, if a credit is allowed under this section for any expenditure with respect to any property, the increase in the basis of such property which would (but for this subsection) result from such expenditure shall be reduced by the amount of the credit so allowed.
.
Conforming amendments
Section 1016(a) of the Internal Revenue
Code of 1986 is amended by striking and
at the end of paragraph
(30), by striking the period at the end of paragraph (31) and inserting
, and
, and by adding at the end the following new
paragraph:
to the extent provided in section 25C(e), in the case of amounts with respect to which a credit has been allowed under section 25C.
.
The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 25B the following new item:
Sec. 25C. Residential solar and geothermal property.
.
Effective date
The amendments made by this section shall apply to taxable years ending after December 31, 2004.
Delay in phaseout of deduction for clean-fuel vehicles
In general
Section 179A(b)(1)(B)
of the Internal Revenue Code of 1986 (relating to phaseout) is amended by
striking 2005
and inserting 2006
.
Effective date
The amendment made by this section shall apply to property placed in service after December 31, 2005.
Delay in phaseout of credit for qualified electric vehicles
In general
Section 30(b)(2) of
the Internal Revenue Code of 1986 (relating to phaseout) is amended by striking
2005
and inserting 2006
.
Effective date
The amendment made by this section shall apply to property placed in service after December 31, 2005.