S. 542Senate109th Congress (2005-2007)In Committee

A bill to amend the Internal Revenue code of 1986 to extend for 5 years the credit for electricity produced from certain renewable resources, and for other purposes.

Introduced March 7, 2005

Legislative Activity

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SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

March 7, 2005

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SenateIntro Referral

Introduced in Senate

March 7, 2005

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S2170)

March 7, 2005

SenateIntro Referral

Read twice and referred to the Committee on Finance.

March 7, 2005

Floor Debate

8 members

What members said about S. 542 on the floor

3 Republicans5 Democrats
Chuck Hagel
Sen. Chuck HagelR-NE · Mar 7, 2005

Mr. President, when I began my first campaign for the U.S. Senate in 1995, I published a booklet entitled ``Where I Stand.'' I wrote it because the first obligation of a candidate is to tell voters…

John McCain
Sen. John McCainR-AZ · Mar 7, 2005

Mr. President, I am pleased to introduce the Native American Omnibus Act of 2005 to amend a variety of Federal statutes affecting Indian tribes and Indian people. This Act contains nineteen…

Olympia J. Snowe
Sen. Olympia J. SnoweR-ME · Mar 7, 2005

Mr. President, I rise today to re-introduce a bill that I offered last year that I hope will be the first in a series of proposals to simplify the Tax Code for small business owners. Once enacted,…

Joseph R. Biden Jr.
Sen. Joseph R. Biden Jr.D-DE · Mar 7, 2005

Mr. President, I rise today to introduce legislation to address the problem of substance abuse in our country. The Robert Wood Johnson Foundation has called substance abuse America's No. 1 health…

Byron L. Dorgan
Sen. Byron L. DorganD-ND · Mar 7, 2005

Mr. President, today I am joined by Senator Smith of Oregon and several of our colleagues in introducing legislation to extend the soon-to-expire tax credits in Federal law that incentivize the…

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Byron L. Dorgan
Sen. Byron L. DorganD-ND · Mar 7, 2005

Mr. President, today I am joined by Senator Smith of Oregon and several of our colleagues in introducing legislation to extend the soon-to-expire tax credits in Federal law that incentivize the…

Russell D. Feingold
Sen. Russell D. FeingoldD-WI · Mar 7, 2005

Mr. President, today I am reintroducing legislation to eliminate from the Federal tax code percentage depletion allowances for hardrock minerals mined on Federal public lands. I thank Senator…

Jeff Bingaman
Sen. Jeff BingamanD-NM · Mar 7, 2005

Mr. President, the landmark report Mental Health: A Report of the Surgeon General brought the hidden mental health crisis to the attention of the U.S. public. According to that report, 13.7 million…

Daniel K. Inouye
Sen. Daniel K. InouyeD-HI · Mar 7, 2005

Mr. President, I rise today to introduce the Native American Connectivity Act. Senator Cantwell joins me in sponsoring this measure. Over 70 years ago, we passed the Communications Act of 1934 and…

Bill Text

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Introduced in SenateIssued March 7, 2005

II

109th CONGRESS

1st Session

S. 542

IN THE SENATE OF THE UNITED STATES

March 7, 2005

Mr. Dorgan (for himself, Mr. Smith, Mrs. Murray, Ms. Cantwell, Mr. Johnson, and Mr. Harkin) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to extend for 5 years the credit for electricity produced from certain renewable resources, and for other purposes.

1.

Extension of renewable energy credit

Section 45(d) of the Internal Revenue Code of 1986 (relating to qualified facilities) is amended by striking January 1, 2006 each place it appears and inserting January 1, 2011.

2.

Treatment of persons not able to use entire credit

(a)

In general

Section 45(e) of the Internal Revenue Code of 1986 (relating to definitions and special rules) is amended by adding at the end the following new paragraph:

(10)

Treatment of persons not able to use entire credit

(A)

Allowance of credit

(i)

In general

Except as otherwise provided in this subsection—

(I)

any credit allowable under subsection (a) with respect to a qualified facility owned by a person described in clause (ii) may be transferred or used as provided in this paragraph, and

(II)

the determination as to whether the credit is allowable shall be made without regard to the tax-exempt status of the person.

(ii)

Persons described

A person is described in this clause if the person is—

(I)

an organization described in section 501(c)(12)(C) and exempt from tax under section 501(a),

(II)

an organization described in section 1381(a)(2)(C),

(III)

a public utility (as defined in section 136(c)(2)(B)), which is exempt from income tax under this subtitle,

(IV)

any State or political subdivision thereof, the District of Columbia, any possession of the United States, or any agency or instrumentality of any of the foregoing, or

(V)

any Indian tribal government (within the meaning of section 7871) or any agency or instrumentality thereof.

(B)

Transfer of credit

(i)

In general

A person described in subparagraph (A)(ii) may transfer any credit to which subparagraph (A)(i) applies through an assignment to any other person not described in subparagraph (A)(ii). Such transfer may be revoked only with the consent of the Secretary.

(ii)

Regulations

The Secretary shall prescribe such regulations as necessary to ensure that any credit described in clause (i) is assigned once and not reassigned by such other person.

(iii)

Transfer proceeds treated as arising from essential government function

Any proceeds derived by a person described in subclause (III), (IV), or (V) of subparagraph (A)(ii) from the transfer of any credit under clause (i) shall be treated as arising from the exercise of an essential government function.

(C)

Use of credit as an offset

Notwithstanding any other provision of law, in the case of a person described in subclause (I), (II), or (V) of subparagraph (A)(ii), any credit to which subparagraph (A)(i) applies may be applied by such person, to the extent provided by the Secretary of Agriculture, as a prepayment of any loan, debt, or other obligation the entity has incurred under subchapter I of chapter 31 of title 7 of the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.), as in effect on the date of the enactment of the Energy Tax Incentives Act.

(D)

Credit not income

Any transfer under subparagraph (B) or use under subparagraph (C) of any credit to which subparagraph (A)(i) applies shall not be treated as income for purposes of section 501(c)(12).

(E)

Treatment of unrelated persons

For purposes of subsection (a)(2)(B), sales of electricity among and between persons described in subparagraph (A)(ii) shall be treated as sales between unrelated parties.

.

(b)

Effective date

The amendment made by this section shall apply to shall apply to electricity produced and sold after the date of the enactment of this Act, in taxable years ending after such date.