I
110th CONGRESS
2d Session
H. R. 6817
IN THE HOUSE OF REPRESENTATIVES
August 1, 2008
Mr. Matheson (for himself, Mr. Doyle, Mr. Altmire, Mr. Melancon, Mr. Donnelly, and Mr. Tanner) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Natural Resources, Energy and Commerce, Science and Technology, and Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned
A BILL
To increase domestic energy production and diversify America’s energy portfolio.
Short title
This Act may be cited as the
Fulfilling U.S. Energy Leadership Act
of 2008
.
Table of contents
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Title I—Production: OCS
Sec. 101. Inventory and leasing of Outer Continental Shelf oil and natural gas resources.
Sec. 102. Conforming amendments to moratoria on use of appropriations.
Sec. 103. Disposition of royalties.
Sec. 104. Reports on due diligence in development of leases.
Sec. 105. Limitations.
Title II—Unconventional Fuels
Sec. 201. Standby loans for qualifying coal-to-liquids projects.
Sec. 202. Oil shale leasing.
Title III—Study of energy transmission barriers and opportunities
Sec. 301. Study required.
Title IV—Next Generation Energy and Efficiency Fund
Sec. 401. Next Generation Energy and Efficiency Fund.
Title V—Addressing Transparency and Data Sharing in Speculation
Sec. 501. Commission authority over traders.
Sec. 502. Speculative limits and transparency for off-shore oil trading.
Sec. 503. Additional commission employees for improved enforcement.
Sec. 504. Study of international regulation of energy commodity markets.
Sec. 505. Index traders and swap dealers.
Sec. 506. Disaggregation of index funds and other data in energy markets.
Title VI—Nuclear energy
Sec. 601. Study of impact on greenhouse gas reductions.
Sec. 602. Study of possible cost reductions.
Sec. 603. Authorization for Nuclear Power 2010 Program.
Sec. 604. Establishment of Interagency Working Group.
Sec. 605. Nuclear energy workforce.
Title VII—Energy tax incentives
Sec. 700. Reference.
Subtitle A—Energy production incentives
Part 1—Renewable energy incentives
Sec. 701. Renewable energy credit.
Sec. 702. Production credit for electricity produced from marine renewables.
Sec. 703. Energy credit.
Sec. 704. Credit for residential energy efficient property.
Sec. 705. Special rule to implement FERC and State electric restructuring policy.
Sec. 706. New clean renewable energy bonds.
Part 2—Carbon mitigation provisions
Sec. 711. Expansion and modification of advanced coal project investment credit.
Sec. 712. Expansion and modification of coal gasification investment credit.
Sec. 713. Temporary increase in coal excise tax.
Sec. 714. Special rules for refund of the coal excise tax to certain coal producers and exporters.
Sec. 715. Carbon audit of the tax code.
Subtitle B—Transportation and domestic fuel security provisions
Sec. 721. Inclusion of cellulosic biofuel in bonus depreciation for biomass ethanol plant property.
Sec. 722. Credits for biodiesel and renewable diesel.
Sec. 723. Clarification that credits for fuel are designed to provide an incentive for United States production.
Sec. 724. Credit for new qualified plug-in electric drive motor vehicles.
Sec. 725. Exclusion from heavy truck tax for idling reduction units and advanced insulation.
Sec. 726. Restructuring of New York Liberty Zone tax credits.
Sec. 727. Transportation fringe benefit to bicycle commuters.
Sec. 728. Alternative fuel vehicle refueling property credit.
Subtitle C—Energy conservation and efficiency provisions
Sec. 731. Qualified energy conservation bonds.
Sec. 732. Credit for nonbusiness energy property.
Sec. 733. Energy efficient commercial buildings deduction.
Sec. 734. Modifications of energy efficient appliance credit for appliances produced after 2007.
Sec. 735. Accelerated recovery period for depreciation of smart meters and smart grid systems.
Sec. 736. Qualified green building and sustainable design projects.
Subtitle D—Revenue Provision
Sec. 741. Delay in application of worldwide allocation of interest.
Production: OCS
Inventory and leasing of Outer Continental Shelf oil and natural gas resources
Inventory
In general
Except as otherwise provided in subsection (c), the
Secretary of the Interior (in this section referred to as the
Secretary
) may conduct an inventory in accordance with this
subsection of oil and natural gas resources beneath the waters of the Outer
Continental Shelf (as defined in section 2 of the Outer Continental Shelf Lands
Act (43 U.S.C. 1331)), other than beneath such waters located in the Gulf of
Mexico.
Best technology available
In conducting the inventory, the Secretary shall use the best technology available to obtain accurate resource estimates.
Reports
The Secretary shall submit to Congress and the requesting Governor a report on any inventory conducted under this section.
Leasing
Except as otherwise provided in subsection (c), the Secretary shall offer for oil and natural gas leasing pursuant to the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) by as soon as practicable after the date of enactment of this Act all areas for which an inventory has been conducted under subsection (a).
Limitations
The Secretary may not under this section—
conduct an inventory under this section or any offshore oil and natural gas preleasing, leasing, or related activities for any area of the Outer Continental Shelf located within 50 miles of the coastline;
conduct an inventory under this section or any offshore oil and natural gas preleasing, leasing, or related activities for any area of the Outer Continental Shelf located more than 50 miles and less than 100 miles from the coastline of a State, if the State has enacted a statute that objects to conduct of the inventory in that area.
Conforming amendments to moratoria on use of appropriations
The Department of the Interior, Environment, and Related Agencies Appropriations Act, 2008 (division F of Public Law 110–161) is amended—
in section 104
(121 Stat. 2118) by striking the areas of northern, central, and
southern California; the North Atlantic; Washington and Oregon; and
;
and
by striking 105 (121 Stat. 2118).
Disposition of royalties
Notwithstanding any other provision of law, of amounts received by the United States as royalties under any oil and gas lease of an area of the Outer Continental Shelf issued after the date of the enactment of this Act under this title—
50 percent shall be deposited—
during the 10-year period beginning on the first date amounts are received by the United States as royalties under a lease issued under this title, into the Next Generation Energy and Efficiency Fund established by title IV; and
after such period, into the general fund of the Treasury;
37.5 percent shall be paid, in equal amounts, to the States that are affected States (as that term is defined in section 2 of the Outer Continental Shelf Lands Act (43 U.S.C. 1331) with respect to the lease tract; and
12.5 percent shall be available to provide financial assistance to States in accordance with section 6 of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l–8), which shall be considered income to the Land and Water Conservation Fund for purposes of section 2 of that Act (16 U.S.C. 460l–5).
Reports on due diligence in development of leases
The Secretary of the Interior shall issue regulations that require that the holder of a Federal oil and gas lease for the Outer Continental Shelf shall periodically submit a report to the Secretary describing the actions that have been taken under the lease that demonstrate due diligence in the development of oil and gas resources under the lease.
Limitations
Noting in this Act shall be considered to affect—
any restriction on drilling for natural gas or oil, or on the expenditure of funds for leasing Federal lands for such drilling, in any of the Great Lakes; or
any regulations governing drilling for natural gas or oil on the Outer Continental Shelf.
Unconventional Fuels
Standby loans for qualifying coal-to-liquids projects
Section 1702 of the Energy Policy Act of 2005 (42 U.S.C. 16512) is amended by adding at the end the following new subsection:
Standby Loans for Qualifying CTL Projects
Definitions
For purposes of this subsection:
Cap price
The term cap price
means a market price
specified in the standby loan agreement above which the project is required to
make payments to the United States.
Full term
The term full term
means the full term of a
standby loan agreement, as specified in the agreement, which shall not exceed
the lesser of 30 years or 90 percent of the projected useful life of the
project (as determined by the Secretary).
Market price
The term market price
means the average
quarterly price of a petroleum price index specified in the standby loan
agreement.
Minimum price
The term minimum price
means a market price
specified in the standby loan agreement below which the United States is
obligated to make disbursements to the project.
Output
The
term output
means some or all of the liquid or gaseous
transportation fuels produced from the project, as specified in the loan
agreement.
Primary term
The term primary term
means the initial term
of a standby loan agreement, as specified in the agreement, which shall not
exceed the lesser of 20 years or 75 percent of the projected useful life of the
project (as determined by the Secretary).
Qualifying ctl project
The term qualifying CTL project
means—
a commercial-scale project that converts coal to one or more liquid or gaseous transportation fuels; or
not more than one project at a facility that converts petroleum refinery waste products, including petroleum coke, into one or more liquids or gaseous transportation fuels,
Standby loan agreement
The term standby loan agreement
means a
loan agreement entered into under paragraph (2).
Standby Loans
Loan Authority
The Secretary may enter into standby loan agreements with not more than six qualifying CTL projects, at least one of which shall be a project jointly or in part owned by two or more small coal producers. Such an agreement—
shall provide that the Secretary will make a direct loan (within the meaning of section 502(1) of the Federal Credit Reform Act of 1990) to the qualifying CTL project; and
shall set a cap price and a minimum price for the primary term of the agreement.
Loan Disbursements
Such a loan shall be disbursed during the primary term of such agreement whenever the market price falls below the minimum price. The amount of such disbursements in any calendar quarter shall be equal to the excess of the minimum price over the market price, times the output of the project (but not more than a total level of disbursements specified in the agreement).
Loan Repayments
The Secretary shall establish terms and conditions, including interest rates and amortization schedules, for the repayment of such loan within the full term of the agreement, subject to the following limitations:
If in any calendar quarter during the primary term of the agreement the market price is less than the cap price, the project may elect to defer some or all of its repayment obligations due in that quarter. Any unpaid obligations will continue to accrue interest.
If in any calendar quarter during the primary term of the agreement the market price is greater than the cap price, the project shall meet its scheduled repayment obligation plus deferred repayment obligations, but shall not be required to pay in that quarter an amount that is more than the excess of the market price over the cap price, times the output of the project.
At the end of the primary term of the agreement, the cumulative amount of any deferred repayment obligations, together with accrued interest, shall be amortized (with interest) over the remainder of the full term of the agreement.
Profit-sharing
The Secretary is authorized to enter into a profit-sharing agreement with the project at the time the standby loan agreement is executed. Under such an agreement, if the market price exceeds the cap price in a calendar quarter, a profit-sharing payment shall be made for that quarter, in an amount equal to—
the excess of the market price over the cap price, times the output of the project; less
any loan repayments made for the calendar quarter.
Compliance with Federal Credit Reform Act
Upfront Payment of Cost of Loan
No standby loan agreement may be entered into under this subsection unless the project makes a payment to the United States that the Office of Management and Budget determines is equal to the cost of such loan (determined under 502(5)(B) of the Federal Credit Reform Act of 1990). Such payment shall be made at the time the standby loan agreement is executed.
Minimization of Risk to the Government
In making the determination of the cost of the loan for purposes of setting the payment for a standby loan under subparagraph (A), the Secretary and the Office of Management and Budget shall take into consideration the extent to which the minimum price and the cap price reflect historical patterns of volatility in actual oil prices relative to projections of future oil prices, based upon publicly available data from the Energy Information Administration, and employing statistical methods and analyses that are appropriate for the analysis of volatility in energy prices.
Treatment of Payments
The value to the United States of a payment under subparagraph (A) and any profit-sharing payments under paragraph (3) shall be taken into account for purposes of section 502(5)(B)(iii) of the Federal Credit Reform Act of 1990 in determining the cost to the Federal Government of a standby loan made under this subsection. If a standby loan has no cost to the Federal Government, the requirements of section 504(b) of such Act shall be deemed to be satisfied.
Other Provisions
No Double Benefit
A project receiving a loan under this subsection may not, during the primary term of the loan agreement, receive a Federal loan guarantee under subsection (a) of this section, or under other laws.
Subrogation, Etc
Subsections (g)(2) (relating to subrogation), (h) (relating to fees), and (j) (relating to full faith and credit) shall apply to standby loans under this subsection to the same extent they apply to loan guarantees.
.
Oil shale leasing
Repeal of restriction
Section 433 of the Department of the Interior, Environment, and Related Agencies Appropriations Act, 2008 (division F of Public Law 110–161; 121 Stat. 2152) is repealed.
State authority To prohibit oil shale leasing
Section 369 of the Energy Policy Act of 2005 (42 U.S.C. 15927) is amended by adding at the end the following:
State authority To prohibit oil shale leasing
No lease may be issued under this section, section 21 of the Mineral Leasing Act (30 U.S.C. 241), or any other law, for exploration, research, development, or production of oil shale on lands located in a State, if the State has enacted a law prohibiting Federal oil shale leasing in the State.
.
Study of energy transmission barriers and opportunities
Study required
Not later than 2 years after the date of enactment of this Act, the Secretary of the Interior shall complete a study of—
barriers to additional access to Federal lands for transmission of energy;
the need for energy transmission corridors on public lands to address identified congestion or constraints; and
efficiencies and improvements that may be made to existing infrastructure for transmission of energy on Federal lands, in lieu of construction of new infrastructure.
Next Generation Energy and Efficiency Fund
Next Generation Energy and Efficiency Fund
Establishment
There
is hereby established in the Treasury of the United States the Next
Generation Energy and Efficiency Fund
(in this section referred to as
the Fund
).
Administration
The Secretary of Energy shall be responsible for administering the Fund for the purpose of carrying out this section.
Contents
The Fund shall consist of amounts deposited into the Fund under section 103(1)(A). Such deposits shall cease after $40,000,000,000 has been deposited, or 10 years of deposits have been made, whichever occurs first.
Purpose
The Fund shall be used for the purpose of research and development of technologies that will significantly decrease America’s reliance on traditional fossil fuels and increase energy efficiencies, including wind energy, solar energy, marine and hydrokinetic energy, geothermal energy, hydrogen energy, vehicle energy efficiency and environmental performance, industrial processes energy efficiencies, building and lighting energy efficiencies, smart grid technology, and energy storage systems to support electric drive vehicles.
Identification of programs
Not later than 18 months after the date of enactment of this Act, the Secretary of Energy shall identify programs of the Department of Energy described in subsection (d) for funding from the Fund, including the Advanced Research Projects Agency-Energy.
Availability of Fund
After the Secretary of Energy has completed the identification of programs under subsection (e), amounts in the Fund shall be available, without further appropriation, for carrying out such programs.
Addressing Transparency and Data Sharing in Speculation
Commission authority over traders
Section 4 of the Commodity Exchange Act (7 U.S.C. 6) is amended by adding at the end the following:
Commission authority over traders
In general
Notwithstanding any other provision of this section or any determination made by the Commission to grant relief from the requirements of subsection (a) to become a designated contract market, derivatives transaction execution facility, or other registered entity, in the case of a person located within the United States, or otherwise subject to the jurisdiction of the Commission, trading on a foreign board of trade, exchange, or market located outside the United States (including the territories and/or possessions of the United States), the Commission shall have authority under this Act—
to apply and enforce section 9, including provisions relating to manipulation or attempted manipulation, the making of false statements, and willful violations of this Act;
to require or direct the person to limit, reduce, or liquidate any position to prevent or reduce the threat of price manipulation, excessive speculation, price distortion, or disruption of delivery or the cash settlement process; and
to apply such recordkeeping requirements as the Commission determines are necessary.
Consultation
Prior to the issuance of any order under paragraph (1) to reduce a position on a foreign board of trade, exchange, or market located outside the United States (including the territories and possessions of the United States), the Commission shall consult with the foreign board of trade, exchange, or market and the appropriate regulatory authority.
Administration
Nothing in this subsection limits any of the otherwise applicable authorities of the Commission.
.
Speculative limits and transparency for off-shore oil trading
Section 4 of the Commodity Exchange Act (7 U.S.C. 6), as amended by section 501 of this Act, is amended by adding at the end the following:
Foreign boards of trade
In general
In the case of any foreign board of trade for which the Commission has granted or is considering an application to grant a board of trade located outside of the United States relief from the requirement of subsection (a) to become a designated contract market, derivatives transaction execution facility, or other registered entity, with respect to an energy commodity that is physically delivered in the United States, prior to continuing to or initially granting the relief, the Commission shall determine that the foreign board of trade—
applies comparable principles or requirements regarding the daily publication of trading information and position limits or accountability levels for speculators as apply to a designated contract market, derivatives transaction execution facility, or other registered entity trading energy commodities physically delivered in the United States; and
provides such information to the Commission regarding the extent of speculative and nonspeculative trading in the energy commodity that is comparable to the information the Commission determines necessary to publish a Commitment of Traders report for a designated contract market, derivatives transaction execution facility, or other registered entity trading energy commodities physically delivered in the United States.
Existing foreign boards of trade
During the period beginning 1 year after the date of enactment of this subsection and ending 18 months after the date of enactment of this subsection, the Commission shall determine whether to continue to grant relief in accordance with paragraph (1) to any foreign board of trade for which the Commission granted relief prior to the date of enactment of this subsection.
.
Additional commission employees for improved enforcement
Section 2(a)(7) of the Commodity Exchange Act (7 U.S.C. 2(a)(7)) is amended by adding at the end the following:
Additional employees
As soon as practicable after the date of enactment of this subparagraph, the Commission shall appoint at least 100 full-time employees (in addition to the employees employed by the Commission as of the date of the enactment of this subparagraph)—
to increase the public transparency of operations in energy futures markets;
to improve the enforcement of this Act in those markets; and
to carry out such other duties as are prescribed by the Commission.
.
Study of international regulation of energy commodity markets
In General
The Comptroller General of the United States shall conduct a study of the international regime for regulating the trading of energy commodity futures and derivatives.
Analysis
The study shall include an analysis of, at a minimum—
key common features and differences among countries in the regulation of energy commodity trading, including with respect to market oversight and enforcement;
agreements and practices for sharing market and trading data;
the use of position limits or thresholds to detect and prevent price manipulation, excessive speculation, or other unfair trading practices;
practices regarding the identification of commercial and noncommercial trading and the extent of market speculation; and
agreements and practices for facilitating international cooperation on market oversight, compliance, and enforcement.
Report
Not later than 120 days after the date of enactment of this Act, the Comptroller General shall submit to the appropriate committees of Congress a report that—
describes the results of the study; and
provides recommendations to improve openness, transparency, and other necessary elements of a properly functioning market in a manner that protects consumers in the United States from the effects of excessive speculation and energy price volatility.
Index traders and swap dealers
Section 4 of the Commodity Exchange Act (7 U.S.C. 6), as amended by sections 501 and 502 of this Act, is amended by adding at the end the following:
Index traders and swap dealers
Not later than 60 days after the date of the enactment of this subsection, the Commission shall—
routinely require detailed reporting from index traders and swap dealers in markets under the jurisdiction of the Commission;
reclassify the types of traders for regulatory and reporting purposes to distinguish between index traders and swaps dealers; and
review the trading practices for index traders in markets under the jurisdiction of the Commission—
to ensure that index trading is not adversely impacting the price discovery process; and
to determine whether different practices or regulations should be implemented.
.
Disaggregation of index funds and other data in energy markets
Section 4 of the Commodity Exchange Act (7 U.S.C. 6), as amended by sections 501, 502, and 505 of this Act, is amended by adding at the end the following:
Disaggregation of index funds and data in energy markets
The Commission shall disaggregate and make public monthly—
the number of positions and total value of index funds and other passive, long-only positions in energy markets; and
data on speculative positions relative to bona fide physical hedgers in those markets.
.
Nuclear energy
Study of impact on greenhouse gas reductions
Not later than 18 months after the date of the enactment of this Act, the Secretary of Energy shall study and report to the Congress on the effect that expanding nuclear energy production would have on reducing greenhouse gases.
Study of possible cost reductions
Not later than 18 months after the date of the enactment of this Act, the Secretary of Energy shall study and report to the Congress on the effect that expanding nuclear energy production would have on reducing the cost of an average kilowatt hour to commercial power customers.
Authorization for Nuclear Power 2010 Program
Section 952 of the Energy Policy Act of 2005 (42 U.S.C. 16272) is amended by striking subsection (c) and inserting the following:
Nuclear Power 2010 Program
In general
The Secretary shall carry out a Nuclear Power 2010 Program to position the United States to commence construction of new nuclear power plants by not later than—
calendar year 2010; or
such first calendar year after calendar year 2010 as is practicable.
Scope of program
The Nuclear Power 2010 Program shall support the objectives of—
demonstrating the licensing process for new nuclear power plants, including the Nuclear Regulatory Commission process for obtaining—
early site permits;
combined construction or operating licenses; and
design certifications; and
conducting first-of-a-kind design and engineering work on at least 2 advanced nuclear reactor designs sufficient to bring those designs to a state of design completion sufficient to allow development of firm cost estimates.
Cost-sharing
The Nuclear Power 2010 Program shall be carried out through the use of cost-sharing with the private sector.
Authorization of appropriations
There are authorized to be appropriated to the Secretary to carry out the Nuclear Power 2010 Program—
$182,800,000 for fiscal year 2009;
$159,600,000 for fiscal year 2010;
$135,600,000 for fiscal year 2011;
$46,900,000 for fiscal year 2012; and
$2,200,000 for fiscal year 2013.
.
Establishment of Interagency Working Group
Purposes
The purposes of this section are—
to increase the competitiveness of the United States nuclear energy products and services industries;
to identify the stimulus or incentives necessary to cause United States manufacturers of nuclear energy products to expand manufacturing capacity;
to facilitate the export of United States nuclear energy products and services;
to reduce the trade deficit of the United States through the export of United States nuclear energy products and services;
to retain and create nuclear energy manufacturing and related service jobs in the United States;
to integrate the objectives described in paragraphs (1) through (5), in a manner consistent with the interests of the United States, into the foreign policy of the United States; and
to authorize funds for increasing United States capacity to manufacture nuclear energy products and supply nuclear energy services.
Establishment
In general
There is established an interagency working group (referred to in this section as the Working Group) that, in consultation with representative industry organizations and manufacturers of nuclear energy products, shall make recommendations to coordinate the actions and programs of the Federal Government in order to promote increasing domestic manufacturing capacity and export of domestic nuclear energy products and services.
Composition
The Working Group shall be composed of—
the Secretary (or a designee), who shall serve as Chairperson of the Working Group; and
representatives, appointed by the head of each applicable agency or department, of—
the Department of Energy;
the Department of Commerce;
the Department of Defense;
the Department of the Treasury;
the Department of State;
the Environmental Protection Agency;
the United States Agency for International Development;
the Export-Import Bank of the United States;
the Trade and Development Agency;
the Small Business Administration;
the Office of the United States Trade Representative; and
other Federal agencies, as determined by the President.
Duties of Working Group
The Working Group shall—
not later than 180 days after the date of enactment of this Act, identify the actions necessary to promote the safe development and application in foreign countries of nuclear energy products and services—
to increase electricity generation from nuclear energy sources through development of new generation facilities;
to improve the efficiency, safety, and reliability of existing nuclear generating facilities through modifications; and
enhance the safe treatment, handling, storage, and disposal of used nuclear fuel;
not later than 180 days after the date of enactment of this Act, identify—
mechanisms (including tax stimuli for investment, loans and loan guarantees, and grants) necessary for United States companies to increase—
the capacity of the companies to produce or provide nuclear energy products and services; and
exports of nuclear energy products and services; and
administrative or legislative initiatives that are necessary—
to encourage United States companies to increase the manufacturing capacity of the companies for nuclear energy products;
to provide technical and financial assistance and support to small and mid-sized businesses to establish quality assurance programs in accordance with domestic and international nuclear quality assurance code requirements;
to encourage, through financial incentives, private sector capital investment to expand manufacturing capacity; and
to provide technical assistance and financial incentives to small and mid-sized businesses to develop the workforce necessary to increase manufacturing capacity and meet domestic and international nuclear quality assurance code requirements;
not later than 270 days after the date of enactment of this Act, submit to Congress a report that describes the findings of the Working Group under paragraphs (1) and (2), including recommendations for new legislative authority, as necessary; and
encourage the agencies represented by membership in the Working Group—
to provide technical training and education for international development personnel and local users in other countries;
to provide financial and technical assistance to nonprofit institutions that support the marketing and export efforts of domestic companies that provide nuclear energy products and services;
to develop nuclear energy projects in foreign countries;
to provide technical assistance and training materials to loan officers of the World Bank, international lending institutions, commercial and energy attaches at embassies of the United States, and other appropriate personnel in order to provide information about nuclear energy products and services to foreign governments or other potential project sponsors;
to support, through financial incentives, private sector efforts to commercialize and export nuclear energy products and services in accordance with the subsidy codes of the World Trade Organization; and
to augment budgets for trade and development programs in order to support prefeasibility or feasibility studies for projects that use nuclear energy products and services.
Personnel and service matters
The Secretary and the heads of agencies represented by membership in the Working Group shall detail such personnel and furnish such services to the Working Group, with or without reimbursement, as are necessary to carry out the functions of the Working Group.
Authorization of appropriations
There is authorized to be appropriated to the Secretary to carry out this section $20,000,000 for each of fiscal years 2009 and 2010.
Nuclear energy workforce
Section 1101 of the Energy Policy Act of 2005 (42 U.S.C. 16411) is amended—
by redesignating subsection (d) as subsection (e); and
by inserting after subsection (c) the following:
Workforce training
In general
The Secretary of Labor, in cooperation with the Secretary of Energy, shall promulgate regulations to implement a program to provide workforce training to meet the high demand for workers skilled in the nuclear utility and nuclear energy products and services industries.
Consultation
In carrying out this subsection, the Secretary of Labor shall consult with representatives of the nuclear utility and nuclear energy products and services industries, and organized labor, concerning skills that are needed in those industries.
Authorization of appropriations
There are authorized to be appropriated to the Secretary of Labor, in coordination with the Secretary of Education and the Secretary of Energy, to carry out this subsection $20,000,000 for each of fiscal years 2009 through 2012.
.
Energy tax incentives
Reference
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.
Energy production incentives
Renewable energy incentives
Renewable energy credit
Extension of credit
1-year extension for wind facilities
Paragraph (1) of section 45(d) is amended by
striking January 1, 2009
and inserting January 1,
2010
.
3-year extension for certain other facilities
Each of the following provisions of
section 45(d) is amended by striking January 1, 2009
and
inserting January 1, 2012
:
Clauses (i) and (ii) of paragraph (2)(A).
Clauses (i)(I) and (ii) of paragraph (3)(A).
Paragraph (4).
Paragraph (5).
Paragraph (6).
Paragraph (7).
Subparagraphs (A) and (B) of paragraph (9).
Modification of Credit Phaseout
Repeal of phaseout
Subsection (b) of section 45 is amended—
by striking paragraph (1), and
by striking
the 8 cent amount in paragraph (1),
in paragraph (2)
thereof.
Limitation based on investment in facility
Subsection (b) of section 45 is amended by inserting before paragraph (2) the following new paragraph:
Limitation based on investment in facility
In general
In the case of any qualified facility originally placed in service after December 31, 2009, the amount of the credit determined under subsection (a) for any taxable year with respect to electricity produced at such facility shall not exceed the product of—
the applicable percentage with respect to such facility, multiplied by
the eligible basis of such facility.
Carryforward of unused limitation and excess credit
Unused limitation
If the limitation imposed under subparagraph (A) with respect to any facility for any taxable year exceeds the prelimitation credit for such facility for such taxable year, the limitation imposed under subparagraph (A) with respect to such facility for the succeeding taxable year shall be increased by the amount of such excess.
Excess credit
If the prelimitation credit with respect to any facility for any taxable year exceeds the limitation imposed under subparagraph (A) with respect to such facility for such taxable year, the credit determined under subsection (a) with respect to such facility for the succeeding taxable year (determined before the application of subparagraph (A) for such succeeding taxable year) shall be increased by the amount of such excess. With respect to any facility, no amount may be carried forward under this clause to any taxable year beginning after the 10-year period described in subsection (a)(2)(A)(ii) with respect to such facility.
Prelimitation credit
The term prelimitation credit
with respect
to any facility for a taxable year means the credit determined under subsection
(a) with respect to such facility for such taxable year, determined without
regard to subparagraph (A) and after taking into account any increase for such
taxable year under clause (ii).
Applicable percentage
For purposes of this paragraph—
In general
The term applicable percentage
means, with
respect to any facility, the appropriate percentage prescribed by the Secretary
for the month in which such facility is originally placed in service.
Method of prescribing applicable percentages
The applicable percentages prescribed by the Secretary for any month under clause (i) shall be percentages which yield over a 10-year period amounts of limitation under subparagraph (A) which have a present value equal to 35 percent of the eligible basis of the facility.
Method of discounting
The present value under clause (ii) shall be determined—
as of the last day of the 1st year of the 10-year period referred to in clause (ii),
by using a discount rate equal to the greater of 110 percent of the Federal long-term rate as in effect under section 1274(d) for the month preceding the month for which the applicable percentage is being prescribed, or 4.5 percent, and
by taking into account the limitation under subparagraph (A) for any year on the last day of such year.
Eligible basis
For purposes of this paragraph—
In general
The term eligible basis
means, with
respect to any facility, the sum of—
the basis of such facility determined as of the time that such facility is originally placed in service, and
the portion of the basis of any shared qualified property which is properly allocable to such facility under clause (ii).
Rules for allocation
For purposes of subclause (II) of clause (i), the basis of shared qualified property shall be allocated among all qualified facilities which are projected to be placed in service and which require utilization of such property in proportion to projected generation from such facilities.
Shared qualified property
For purposes of this paragraph, the term
shared qualified property
means, with respect to any facility,
any property described in section 168(e)(3)(B)(vi)—
which a qualified facility will require for utilization of such facility, and
which is not a qualified facility.
Special rule relating to geothermal facilities
In the case of any qualified facility using geothermal energy to produce electricity, the basis of such facility for purposes of this paragraph shall be determined as though intangible drilling and development costs described in section 263(c) were capitalized rather than expensed.
Special rule for first and last year of credit period
In the case of any taxable year any portion of which is not within the 10-year period described in subsection (a)(2)(A)(ii) with respect to any facility, the amount of the limitation under subparagraph (A) with respect to such facility shall be reduced by an amount which bears the same ratio to the amount of such limitation (determined without regard to this subparagraph) as such portion of the taxable year which is not within such period bears to the entire taxable year.
Election to treat all facilities placed in service in a year as 1 facility
At the election of the taxpayer, all qualified facilities which are part of the same project and which are placed in service during the same calendar year shall be treated for purposes of this section as 1 facility which is placed in service at the mid-point of such year or the first day of the following calendar year.
.
Trash facility clarification
Paragraph (7) of section 45(d) is amended—
by striking
facility which burns
and inserting facility (other than a
facility described in paragraph (6)) which uses
, and
by striking
combustion
.
Expansion of biomass facilities
Open-loop biomass facilities
Paragraph (3) of section 45(d) is amended by redesignating subparagraph (B) as subparagraph (C) and by inserting after subparagraph (A) the following new subparagraph:
Expansion of facility
Such term shall include a new unit placed in service after the date of the enactment of this subparagraph in connection with a facility described in subparagraph (A), but only to the extent of the increased amount of electricity produced at the facility by reason of such new unit.
.
Closed-loop biomass facilities
Paragraph (2) of section 45(d) is amended by redesignating subparagraph (B) as subparagraph (C) and inserting after subparagraph (A) the following new subparagraph:
Expansion of facility
Such term shall include a new unit placed in service after the date of the enactment of this subparagraph in connection with a facility described in subparagraph (A)(i), but only to the extent of the increased amount of electricity produced at the facility by reason of such new unit.
.
Sales of net electricity to regulated public utilities treated as sales to unrelated persons
Paragraph (4) of section 45(e) is amended by adding at
the end the following new sentence: The net amount of electricity sold
by any taxpayer to a regulated public utility (as defined in section
7701(a)(33)) shall be treated as sold to an unrelated person.
.
Modification of rules for hydropower production
Subparagraph (C) of section 45(c)(8) is amended to read as follows:
Nonhydroelectric dam
For purposes of subparagraph (A), a facility is described in this subparagraph if—
the hydroelectric project installed on the nonhydroelectric dam is licensed by the Federal Energy Regulatory Commission and meets all other applicable environmental, licensing, and regulatory requirements,
the nonhydroelectric dam was placed in service before the date of the enactment of this paragraph and operated for flood control, navigation, or water supply purposes and did not produce hydroelectric power on the date of the enactment of this paragraph, and
the hydroelectric project is operated so that the water surface elevation at any given location and time that would have occurred in the absence of the hydroelectric project is maintained, subject to any license requirements imposed under applicable law that change the water surface elevation for the purpose of improving environmental quality of the affected waterway.
.
Effective date
In general
Except as otherwise provided in this subsection, the amendments made by this section shall apply to property originally placed in service after December 31, 2008.
Repeal of credit phaseout
The amendments made by subsection (b)(1) shall apply to taxable years ending after December 31, 2008.
Limitation based on investment in facility
The amendment made by subsection (b)(2) shall apply to property originally placed in service after December 31, 2009.
Trash facility clarification; sales to related regulated public utilities
The amendments made by subsections (c) and (e) shall apply to electricity produced and sold after the date of the enactment of this Act.
Expansion of biomass facilities
The amendments made by subsection (d) shall apply to property placed in service after the date of the enactment of this Act.
Production credit for electricity produced from marine renewables
In general
Paragraph (1) of section 45(c) is amended by striking
and
at the end of subparagraph (G), by striking the period at
the end of subparagraph (H) and inserting , and
, and by adding
at the end the following new subparagraph:
marine and hydrokinetic renewable energy.
.
Marine renewables
Subsection (c) of section 45 is amended by adding at the end the following new paragraph:
Marine and hydrokinetic renewable energy
In general
The term marine and hydrokinetic renewable energy means energy derived from—
waves, tides, and currents in oceans, estuaries, and tidal areas,
free flowing water in rivers, lakes, and streams,
free flowing water in an irrigation system, canal, or other man-made channel, including projects that utilize nonmechanical structures to accelerate the flow of water for electric power production purposes, or
differentials in ocean temperature (ocean thermal energy conversion).
Exceptions
Such term shall not include any energy which is derived from any source which utilizes a dam, diversionary structure (except as provided in subparagraph (A)(iii)), or impoundment for electric power production purposes.
.
Definition of facility
Subsection (d) of section 45 is amended by adding at the end the following new paragraph:
Marine and hydrokinetic renewable energy facilities
In the case of a facility producing electricity from marine and hydrokinetic renewable energy, the term qualified facility means any facility owned by the taxpayer—
which has a nameplate capacity rating of at least 150 kilowatts, and
which is originally placed in service on or after the date of the enactment of this paragraph and before January 1, 2012.
.
Credit rate
Subparagraph (A) of section 45(b)(4) is amended by striking
or (9)
and inserting (9), or (11)
.
Coordination with small irrigation power
Paragraph (5) of section 45(d), as amended
by section 701, is amended by striking January 1, 2012
and
inserting the date of the enactment of paragraph (11)
.
Effective date
The amendments made by this section shall apply to electricity produced and sold after the date of the enactment of this Act, in taxable years ending after such date.
Energy credit
Extension of credit
Solar energy property
Paragraphs (2)(A)(i)(II) and (3)(A)(ii) of section 48(a)
are each amended by striking January 1, 2009
and inserting
January 1, 2015
.
Fuel cell property
Subparagraph (E) of section 48(c)(1) is amended by
striking December 31, 2008
and inserting December 31,
2014
.
Microturbine property
Subparagraph (E) of section 48(c)(2) is amended by
striking December 31, 2008
and inserting December 31,
2014
.
Allowance of energy credit against alternative minimum tax
Subparagraph (B) of
section 38(c)(4) is amended by striking and
at the end of clause
(iii), by redesignating clause (iv) as clause (v), and by inserting after
clause (iii) the following new clause:
the credit determined under section 46 to the extent that such credit is attributable to the energy credit determined under section 48, and
.
Energy credit for combined heat and power system property
In general
Section 48(a)(3)(A) (defining energy property) is amended
by striking or
at the end of clause (iii), by inserting
or
at the end of clause (iv), and by adding at the end the
following new clause:
combined heat and power system property,
.
Combined Heat and Power System Property
Section 48 is amended by adding at the end the following new subsection:
Combined Heat and Power System Property
For purposes of subsection (a)(3)(A)(v)—
Combined heat and power system property
The term combined heat and power system property means property comprising a system—
which uses the same energy source for the simultaneous or sequential generation of electrical power, mechanical shaft power, or both, in combination with the generation of steam or other forms of useful thermal energy (including heating and cooling applications),
which produces—
at least 20 percent of its total useful energy in the form of thermal energy which is not used to produce electrical or mechanical power (or combination thereof), and
at least 20 percent of its total useful energy in the form of electrical or mechanical power (or combination thereof),
the energy efficiency percentage of which exceeds 60 percent, and
which is placed in service before January 1, 2015.
Limitation
In general
In the case of combined heat and power system property with an electrical capacity in excess of the applicable capacity placed in service during the taxable year, the credit under subsection (a)(1) (determined without regard to this paragraph) for such year shall be equal to the amount which bears the same ratio to such credit as the applicable capacity bears to the capacity of such property.
Applicable capacity
For purposes of subparagraph (A), the term applicable capacity means 15 megawatts or a mechanical energy capacity of more than 20,000 horsepower or an equivalent combination of electrical and mechanical energy capacities.
Maximum capacity
The term combined heat and power system property shall not include any property comprising a system if such system has a capacity in excess of 50 megawatts or a mechanical energy capacity in excess of 67,000 horsepower or an equivalent combination of electrical and mechanical energy capacities.
Special rules
Energy efficiency percentage
For purposes of this subsection, the energy efficiency percentage of a system is the fraction—
the numerator of which is the total useful electrical, thermal, and mechanical power produced by the system at normal operating rates, and expected to be consumed in its normal application, and
the denominator of which is the lower heating value of the fuel sources for the system.
Determinations made on btu basis
The energy efficiency percentage and the percentages under paragraph (1)(B) shall be determined on a Btu basis.
Input and output property not included
The term combined heat and power system property does not include property used to transport the energy source to the facility or to distribute energy produced by the facility.
Systems using biomass
If a system is designed to use biomass (within the meaning of paragraphs (2) and (3) of section 45(c) without regard to the last sentence of paragraph (3)(A)) for at least 90 percent of the energy source—
paragraph (1)(C) shall not apply, but
the amount of credit determined under subsection (a) with respect to such system shall not exceed the amount which bears the same ratio to such amount of credit (determined without regard to this paragraph) as the energy efficiency percentage of such system bears to 60 percent.
.
Increase of credit limitation for fuel cell property
Subparagraph (B) of
section 48(c)(1) is amended by striking $500
and inserting
$1,500
.
Public utility property taken into account
In general
Paragraph (3) of section 48(a) is amended by striking the second sentence thereof.
Conforming amendments
Paragraph (1) of section 48(c) is amended by striking subparagraph (D) and redesignating subparagraph (E) as subparagraph (D).
Paragraph (2) of section 48(c) is amended by striking subparagraph (D) and redesignating subparagraph (E) as subparagraph (D).
Effective date
In general
Except as otherwise provided in this subsection, the amendments made by this section shall take effect on the date of the enactment of this Act.
Allowance against alternative minimum tax
The amendments made by subsection (b) shall apply to credits determined under section 46 of the Internal Revenue Code of 1986 in taxable years beginning after the date of the enactment of this Act and to carrybacks of such credits.
Combined heat and power and fuel cell property
The amendments made by subsections (c) and (d) shall apply to periods after the date of the enactment of this Act, in taxable years ending after such date, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).
Public utility property
The amendments made by subsection (e) shall apply to periods after February 13, 2008, in taxable years ending after such date, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).
Credit for residential energy efficient property
Extension
Section
25D(g) is amended by striking December 31, 2008
and inserting
December 31, 2014
.
Maximum credit for solar electric property
In general
Section 25D(b)(1)(A) is amended by striking
$2,000
and inserting $4,000
.
Conforming amendment
Section 25D(e)(4)(A)(i) is amended by striking
$6,667
and inserting $13,333
.
Credit for residential wind property
In general
Section 25D(a) is amended by striking and
at the end of paragraph (2), by striking the period at the end of paragraph (3)
and inserting , and
, and by adding at the end the following new
paragraph:
30 percent of the qualified small wind energy property expenditures made by the taxpayer during such year.
.
Limitation
Section
25D(b)(1) 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:
$500 with respect to each half kilowatt of capacity (not to exceed $4,000) of wind turbines for which qualified small wind energy property expenditures are made.
.
Qualified small wind energy property expenditures
In general
Section 25D(d) is amended by adding at the end the following new paragraph:
Qualified small wind energy property expenditure
The term qualified small wind energy property expenditure means an expenditure for property which uses a wind turbine to generate electricity for use in connection with a dwelling unit located in the United States and used as a residence by the taxpayer.
.
No double benefit
Section 45(d)(1) is amended by adding at the end the
following new sentence: Such term shall not include any facility with
respect to which any qualified small wind energy property expenditure (as
defined in subsection (d)(4) of section 25D) is taken into account in
determining the credit under such section.
.
Maximum expenditures in case of joint occupancy
Section 25D(e)(4)(A) is
amended by striking and
at the end of clause (ii), by striking
the period at the end of clause (iii) and inserting , and
, and
by adding at the end the following new clause:
$1,667 in the case of each half kilowatt of capacity (not to exceed $13,333) of wind turbines for which qualified small wind energy property expenditures are made.
.
Credit for geothermal heat pump systems
In general
Section 25D(a), as amended by subsection (c), is amended
by striking and
at the end of paragraph (3), by striking the
period at the end of paragraph (4) and inserting , and
, and by
adding at the end the following new paragraph:
30 percent of the qualified geothermal heat pump property expenditures made by the taxpayer during such year.
.
Limitation
Section
25D(b)(1), as amended by subsection (c), is amended by striking
and
at the end of subparagraph (C), by striking the period at
the end of subparagraph (D) and inserting , and
, and by adding
at the end the following new subparagraph:
$2,000 with respect to any qualified geothermal heat pump property expenditures.
.
Qualified geothermal heat pump property expenditure
Section 25D(d), as amended by subsection (c), is amended by adding at the end the following new paragraph:
Qualified geothermal heat pump property expenditure
In general
The term qualified geothermal heat pump property expenditure means an expenditure for qualified geothermal heat pump property installed on or in connection with a dwelling unit located in the United States and used as a residence by the taxpayer.
Qualified geothermal heat pump property
The term qualified
geothermal heat pump property
means any equipment which—
uses the ground or ground water as a thermal energy source to heat the dwelling unit referred to in subparagraph (A) or as a thermal energy sink to cool such dwelling unit, and
meets the requirements of the Energy Star program which are in effect at the time that the expenditure for such equipment is made.
.
Maximum expenditures in case of joint occupancy
Section 25D(e)(4)(A), as
amended by subsection (c), is amended by striking and
at the end
of clause (iii), by striking the period at the end of clause (iv) and inserting
, and
, and by adding at the end the following new clause:
$6,667 in the case of any qualified geothermal heat pump property expenditures.
.
Credit allowed against alternative minimum tax
In general
Subsection (c) of section 25D is amended to read as follows:
Limitation based on amount of tax; carryforward of unused credit
Limitation based on amount of tax
In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for the taxable year shall not exceed the excess of—
the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over
the sum of the credits allowable under this subpart (other than this section) and section 27 for the taxable year.
Carryforward of unused credit
Rule for years in which all personal credits allowed against regular and alternative minimum tax
In the case of a taxable year to which section 26(a)(2) applies, if the credit allowable under subsection (a) exceeds the limitation imposed by section 26(a)(2) for such taxable year reduced by the sum of the credits allowable under this subpart (other than this section), such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such succeeding taxable year.
Rule for other years
In the case of a taxable year to which section 26(a)(2) does not apply, if the credit allowable under subsection (a) exceeds the limitation imposed by paragraph (1) for such taxable year, such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such succeeding taxable year.
.
Conforming amendments
Section
23(b)(4)(B) is amended by inserting and section 25D
after
this section
.
Section
24(b)(3)(B) is amended by striking and 25B
and inserting
, 25B, and 25D
.
Section 25B(g)(2)
is amended by striking section 23
and inserting sections
23 and 25D
.
Section 26(a)(1)
is amended by striking and 25B
and inserting 25B, and
25D
.
Effective date
In general
The amendments made by this section shall apply to taxable years beginning after December 31, 2007.
Application of EGTRRA sunset
The amendments made by subparagraphs (A) and (B) of subsection (e)(2) shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 in the same manner as the provisions of such Act to which such amendments relate.
Special rule to implement FERC and State electric restructuring policy
Extension for qualified electric utilities
In general
Paragraph (3) of section 451(i) is amended by inserting
(before January 1, 2010, in the case of a qualified electric
utility)
after January 1, 2008
.
Qualified electric utility
Subsection (i) of section 451 is amended by redesignating paragraphs (6) through (10) as paragraphs (7) through (11), respectively, and by inserting after paragraph (5) the following new paragraph:
Qualified electric utility
For purposes of this subsection, the term
qualified electric utility
means a person that, as of the date
of the qualifying electric transmission transaction, is vertically integrated,
in that it is both—
a transmitting utility (as defined in section 3(23) of the Federal Power Act (16 U.S.C. 796(23))) with respect to the transmission facilities to which the election under this subsection applies, and
an electric utility (as defined in section 3(22) of the Federal Power Act (16 U.S.C. 796(22))).
.
Extension of period for transfer of operational control authorized by FERC
Clause (ii) of section 451(i)(4)(B) is amended by striking
December 31, 2007
and inserting the date which is 4 years
after the close of the taxable year in which the transaction
occurs
.
Property located outside the united states not treated as exempt utility property
Paragraph (5) of section 451(i) is amended by adding at the end the following new subparagraph:
Exception for property located outside the united states
The term exempt
utility property
shall not include any property which is located
outside the United
States.
.
Effective Dates
Extension
The amendments made by subsection (a) shall apply to transactions after December 31, 2007.
Transfers of operational control
The amendment made by subsection (b) shall take effect as if included in section 909 of the American Jobs Creation Act of 2004.
Exception for property located outside the united states
The amendment made by subsection (c) shall apply to transactions after the date of the enactment of this Act.
New clean renewable energy bonds
In general
Subpart I of part IV of subchapter A of chapter 1 is amended by adding at the end the following new section:
New clean renewable energy bonds
New clean renewable energy bond
For purposes of this subpart, the term new clean renewable energy bond means any bond issued as part of an issue if—
100 percent of the available project proceeds of such issue are to be used for capital expenditures incurred by public power providers or cooperative electric companies for one or more qualified renewable energy facilities,
the bond is issued by a qualified issuer, and
the issuer designates such bond for purposes of this section.
Reduced credit amount
The annual credit determined under section 54A(b) with respect to any new clean renewable energy bond shall be 70 percent of the amount so determined without regard to this subsection.
Limitation on amount of bonds designated
In general
The maximum aggregate face amount of bonds which may be designated under subsection (a) by any issuer shall not exceed the limitation amount allocated under this subsection to such issuer.
National limitation on amount of bonds designated
There is a national new clean renewable energy bond limitation of $2,000,000,000 which shall be allocated by the Secretary as provided in paragraph (3), except that—
not more than 331/3 percent thereof may be allocated to qualified projects of public power providers,
not more than 331/3 percent thereof may be allocated to qualified projects of governmental bodies, and
not more than 331/3 percent thereof may be allocated to qualified projects of cooperative electric companies.
Method of allocation
Allocation among public power providers
After the Secretary determines the qualified projects of public power providers which are appropriate for receiving an allocation of the national new clean renewable energy bond limitation, the Secretary shall, to the maximum extent practicable, make allocations among such projects in such manner that the amount allocated to each such project bears the same ratio to the cost of such project as the limitation under paragraph (2)(A) bears to the cost of all such projects.
Allocation among governmental bodies and cooperative electric companies
The Secretary shall make allocations of the amount of the national new clean renewable energy bond limitation described in paragraphs (2)(B) and (2)(C) among qualified projects of governmental bodies and cooperative electric companies, respectively, in such manner as the Secretary determines appropriate.
Definitions
For purposes of this section—
Qualified renewable energy facility
The term qualified renewable energy facility means a qualified facility (as determined under section 45(d) without regard to paragraphs (8) and (10) thereof and to any placed in service date) owned by a public power provider, a governmental body, or a cooperative electric company.
Public power provider
The term public power provider means a State utility with a service obligation, as such terms are defined in section 217 of the Federal Power Act (as in effect on the date of the enactment of this paragraph).
Governmental body
The term governmental body means any State or Indian tribal government, or any political subdivision thereof.
Cooperative electric company
The term cooperative electric company means a mutual or cooperative electric company described in section 501(c)(12) or section 1381(a)(2)(C).
Clean renewable energy bond lender
The term clean renewable energy bond lender means a lender which is a cooperative which is owned by, or has outstanding loans to, 100 or more cooperative electric companies and is in existence on February 1, 2002, and shall include any affiliated entity which is controlled by such lender.
Qualified issuer
The term qualified issuer means a public power provider, a cooperative electric company, a governmental body, a clean renewable energy bond lender, or a not-for-profit electric utility which has received a loan or loan guarantee under the Rural Electrification Act.
.
Conforming Amendments
Paragraph (1) of section 54A(d) is amended to read as follows:
Qualified tax credit bond
The term qualified tax credit bond
means—
a qualified forestry conservation bond, or
a new clean renewable energy bond,
.
Subparagraph (C) of section 54A(d)(2) is amended to read as follows:
Qualified purpose
For purposes of this paragraph, the term qualified
purpose
means—
in the case of a qualified forestry conservation bond, a purpose specified in section 54B(e), and
in the case of a new clean renewable energy bond, a purpose specified in section 54C(a)(1).
.
The table of sections for subpart I of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item:
Qualified clean renewable energy bonds.
.
Reporting
Subsection (d) of section 6049 is amended by adding at the end the following new paragraph:
Reporting of credit on qualified tax credit bonds
In general
For purposes of subsection (a), the term interest includes amounts includible in gross income under section 54A and such amounts shall be treated as paid on the credit allowance date (as defined in section 54A(e)(1)).
Reporting to corporations, etc
Except as otherwise provided in regulations, in the case of any interest described in subparagraph (A) of this paragraph, subsection (b)(4) of this section shall be applied without regard to subparagraphs (A), (H), (I), (J), (K), and (L)(i).
Regulatory authority
The Secretary may prescribe such regulations as are necessary or appropriate to carry out the purposes of this paragraph, including regulations which require more frequent or more detailed reporting.
.
Application of certain labor standards on projects financed under tax credit bonds
Subchapter IV of chapter 31 of title 40, United States Code, shall apply to projects financed with the proceeds of any tax credit bond (as defined in section 54A of the Internal Revenue Code of 1986).
Effective Date
The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.
Carbon mitigation provisions
Expansion and modification of advanced coal project investment credit
Modification of credit amount
Section 48A(a) is amended by striking
and
at the end of paragraph (1), by striking the period at the
end of paragraph (2) and inserting , and
, and by adding at the
end the following new paragraph:
30 percent of the qualified investment for such taxable year in the case of projects described in clause (iii) of subsection (d)(3)(B).
.
Expansion of aggregate credits
Section 48A(d)(3)(A) is amended by striking
$1,300,000,000
and inserting
$2,550,000,000
.
Authorization of Additional Projects
In general
Subparagraph (B) of section 48A(d)(3) is amended to read as follows:
Particular projects
Of the dollar amount in subparagraph (A), the Secretary is authorized to certify—
$800,000,000 for integrated gasification combined cycle projects the application for which is submitted during the period described in paragraph (2)(A)(i),
$500,000,000 for projects which use other advanced coal-based generation technologies the application for which is submitted during the period described in paragraph (2)(A)(i), and
$1,250,000,000 for advanced coal-based generation technology projects the application for which is submitted during the period described in paragraph (2)(A)(ii).
.
Application period for additional projects
Subparagraph (A) of section 48A(d)(2) is amended to read as follows:
Application period
Each applicant for certification under this paragraph shall submit an application meeting the requirements of subparagraph (B). An applicant may only submit an application—
for an allocation from the dollar amount specified in clause (i) or (ii) of paragraph (3)(B) during the 3-year period beginning on the date the Secretary establishes the program under paragraph (1), and
for an allocation from the dollar amount specified in paragraph (3)(B)(iii) during the 3-year period beginning at the earlier of the termination of the period described in clause (i) or the date prescribed by the Secretary.
.
Capture and sequestration of carbon dioxide emissions requirement
In general
Section 48A(e)(1) is amended by striking
and
at the end of subparagraph (E), by striking the period at
the end of subparagraph (F) and inserting ; and
, and by adding
at the end the following new subparagraph:
in the case of any project the application for which is submitted during the period described in subsection (d)(2)(A)(ii), the project includes equipment which separates and sequesters at least 65 percent (70 percent in the case of an application for reallocated credits under subsection (d)(4)) of such project's total carbon dioxide emissions.
.
Highest priority for projects which sequester carbon dioxide emissions
Section
48A(e)(3) is amended by striking and
at the end of subparagraph
(A)(iii), by striking the period at the end of subparagraph (B)(iii) and
inserting , and
, and by adding at the end the following new
subparagraph:
give highest priority to projects with the greatest separation and sequestration percentage of total carbon dioxide emissions.
.
Recapture of credit for failure to sequester
Section 48A is amended by adding at the end the following new subsection:
Recapture of credit for failure To sequester
The Secretary shall provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any project which fails to attain or maintain the separation and sequestration requirements of subsection (e)(1)(G).
.
Additional priority for research partnerships
Section 48A(e)(3)(B), as amended by paragraph (3)(B), is amended—
by striking
and
at the end of clause (ii),
by redesignating clause (iii) as clause (iv), and
by inserting after clause (ii) the following new clause:
applicant participants who have a research partnership with an eligible educational institution (as defined in section 529(e)(5)), and
.
Clerical amendment
Section 48A(e)(3) is amended by striking
integrated gasification
combined cycle
in the heading and inserting
certain
.
Competitive certification awards modification authority
Section 48A, as amended by subsection (c)(3), is amended by adding at the end the following new subsection:
Competitive certification awards modification authority
In implementing this section or section 48B, the Secretary is directed to modify the terms of any competitive certification award and any associated closing agreement where such modification—
is consistent with the objectives of such section,
is requested by the recipient of the competitive certification award, and
involves moving the project site to improve the potential to capture and sequester carbon dioxide emissions, reduce costs of transporting feedstock, and serve a broader customer base,
.
Disclosure of allocations
Section 48A(d) is amended by adding at the end the following new paragraph:
Disclosure of allocations
The Secretary shall, upon making a certification under this subsection or section 48B(d), publicly disclose the identity of the applicant and the amount of the credit certified with respect to such applicant.
.
Effective dates
In general
Except as otherwise provided in this subsection, the amendments made by this section shall apply to credits the application for which is submitted during the period described in section 48A(d)(2)(A)(ii) of the Internal Revenue Code of 1986 and which are allocated or reallocated after the date of the enactment of this Act.
Competitive certification awards modification authority
The amendment made by subsection (d) shall take effect on the date of the enactment of this Act and is applicable to all competitive certification awards entered into under section 48A or 48B of the Internal Revenue Code of 1986, whether such awards were issued before, on, or after such date of enactment.
Disclosure of allocations
The amendment made by subsection (e) shall apply to certifications made after the date of the enactment of this Act.
Clerical amendment
The amendment made by subsection (c)(5) shall take effect as if included in the amendment made by section 1307(b) of the Energy Tax Incentives Act of 2005.
Expansion and modification of coal gasification investment credit
Modification of credit amount
Section 48B(a)
is amended by inserting (30 percent in the case of credits allocated
under subsection (d)(1)(B))
after 20 percent
.
Expansion of aggregate credits
Section 48B(d)(1) is amended by striking
shall not exceed $350,000,000
and all that follows and
inserting
shall not exceed—
$350,000,000, plus
$250,000,000 for qualifying gasification projects that include equipment which separates and sequesters at least 75 percent of such project’s total carbon dioxide emissions.
.
Recapture of credit for failure To sequester
Section 48B is amended by adding at the end the following new subsection:
Recapture of credit for failure To sequester
The Secretary shall provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any project which fails to attain or maintain the separation and sequestration requirements for such project under subsection (d)(1).
.
Selection priorities
Section 48B(d) is amended by adding at the end the following new paragraph:
Selection priorities
In determining which qualifying gasification projects to certify under this section, the Secretary shall—
give highest priority to projects with the greatest separation and sequestration percentage of total carbon dioxide emissions, and
give high priority to applicant participants who have a research partnership with an eligible educational institution (as defined in section 529(e)(5)).
.
Effective date
The amendments made by this section shall apply to credits described in section 48B(d)(1)(B) of the Internal Revenue Code of 1986 which are allocated or reallocated after the date of the enactment of this Act.
Temporary increase in coal excise tax
Paragraph (2) of section 4121(e) is amended—
by striking
January 1, 2014
in subparagraph (A) and inserting
December 31, 2018
, and
by
striking January 1 after 1981
in subparagraph (B) and inserting
December 31 after 2007
.
Special rules for refund of the coal excise tax to certain coal producers and exporters
Refund
Coal producers
In general
Notwithstanding subsections (a)(1) and (c) of section 6416 and section 6511 of the Internal Revenue Code of 1986, if—
a coal producer establishes that such coal producer, or a party related to such coal producer, exported coal produced by such coal producer to a foreign country or shipped coal produced by such coal producer to a possession of the United States, or caused such coal to be exported or shipped, the export or shipment of which was other than through an exporter who meets the requirements of paragraph (2),
such coal producer filed an excise tax return on or after October 1, 1990, and on or before the date of the enactment of this Act, and
such coal producer files a claim for refund with the Secretary not later than the close of the 30-day period beginning on the date of the enactment of this Act,
Special rules for certain taxpayers
For purposes of this section—
In general
If a coal producer or a party related to a coal producer has received a judgment described in clause (iii), such coal producer shall be deemed to have established the export of coal to a foreign country or shipment of coal to a possession of the United States under subparagraph (A)(i).
Amount of payment
If a taxpayer described in clause (i) is entitled to a payment under subparagraph (A), the amount of such payment shall be reduced by any amount paid pursuant to the judgment described in clause (iii).
Judgment described
A judgment is described in this subparagraph if such judgment—
is made by a court of competent jurisdiction within the United States,
relates to the constitutionality of any tax paid on exported coal under section 4121 of the Internal Revenue Code of 1986, and
is in favor of the coal producer or the party related to the coal producer.
Exporters
Notwithstanding subsections (a)(1) and (c) of section 6416 and section 6511 of the Internal Revenue Code of 1986, and a judgment described in paragraph (1)(B)(iii) of this subsection, if—
an exporter establishes that such exporter exported coal to a foreign country or shipped coal to a possession of the United States, or caused such coal to be so exported or shipped,
such exporter filed a tax return on or after October 1, 1990, and on or before the date of the enactment of this Act, and
such exporter files a claim for refund with the Secretary not later than the close of the 30-day period beginning on the date of the enactment of this Act,
Limitations
Subsection (a) shall not apply with respect to exported coal if a settlement with the Federal Government has been made with and accepted by, the coal producer, a party related to such coal producer, or the exporter, of such coal, as of the date that the claim is filed under this section with respect to such exported coal. For purposes of this subsection, the term settlement with the Federal Government shall not include any settlement or stipulation entered into as of the date of the enactment of this Act, the terms of which contemplate a judgment concerning which any party has reserved the right to file an appeal, or has filed an appeal.
Subsequent refund prohibited
No refund shall be made under this section to the extent that a credit or refund of such tax on such exported or shipped coal has been paid to any person.
Definitions
For purposes of this section—
Coal producer
The term coal producer means the person in whom is vested ownership of the coal immediately after the coal is severed from the ground, without regard to the existence of any contractual arrangement for the sale or other disposition of the coal or the payment of any royalties between the producer and third parties. The term includes any person who extracts coal from coal waste refuse piles or from the silt waste product which results from the wet washing (or similar processing) of coal.
Exporter
The term exporter means a person, other than a coal producer, who does not have a contract, fee arrangement, or any other agreement with a producer or seller of such coal to export or ship such coal to a third party on behalf of the producer or seller of such coal and—
is indicated in the shipper’s export declaration or other documentation as the exporter of record, or
actually exported such coal to a foreign country or shipped such coal to a possession of the United States, or caused such coal to be so exported or shipped.
Related party
The term a party related to such coal producer means a person who—
is related to such coal producer through any degree of common management, stock ownership, or voting control,
is related (within the meaning of section 144(a)(3) of the Internal Revenue Code of 1986) to such coal producer, or
has a contract, fee arrangement, or any other agreement with such coal producer to sell such coal to a third party on behalf of such coal producer.
Secretary
The term Secretary means the Secretary of Treasury or the Secretary's designee.
Timing of refund
With respect to any claim for refund filed pursuant to this section, the Secretary shall determine whether the requirements of this section are met not later than 180 days after such claim is filed. If the Secretary determines that the requirements of this section are met, the claim for refund shall be paid not later than 180 days after the Secretary makes such determination.
Interest
Any refund paid pursuant to this section shall be paid by the Secretary with interest from the date of overpayment determined by using the overpayment rate and method under section 6621 of the Internal Revenue Code of 1986.
Denial of double benefit
The payment under subsection (a) with respect to any coal shall not exceed—
in the case of a payment to a coal producer, the amount of tax paid under section 4121 of the Internal Revenue Code of 1986 with respect to such coal by such coal producer or a party related to such coal producer, and
in the case of a payment to an exporter, an amount equal to $0.825 per ton with respect to such coal exported by the exporter or caused to be exported by the exporter.
Application of section
This section applies only to claims on coal exported or shipped on or after October 1, 1990, through the date of the enactment of this Act.
Standing not conferred
Exporters
With respect to exporters, this section shall not confer standing upon an exporter to commence, or intervene in, any judicial or administrative proceeding concerning a claim for refund by a coal producer of any Federal or State tax, fee, or royalty paid by the coal producer.
Coal producers
With respect to coal producers, this section shall not confer standing upon a coal producer to commence, or intervene in, any judicial or administrative proceeding concerning a claim for refund by an exporter of any Federal or State tax, fee, or royalty paid by the producer and alleged to have been passed on to an exporter.
Carbon audit of the tax code
Study
The Secretary of the Treasury shall enter into an agreement with the National Academy of Sciences to undertake a comprehensive review of the Internal Revenue Code of 1986 to identify the types of and specific tax provisions that have the largest effects on carbon and other greenhouse gas emissions and to estimate the magnitude of those effects.
Report
Not later than 2 years after the date of enactment of this Act, the National Academy of Sciences shall submit to Congress a report containing the results of study authorized under this section.
Authorization of appropriations
There is authorized to be appropriated to carry out this section $1,500,000 for the period of fiscal years 2008 and 2009.
Transportation and domestic fuel security provisions
Inclusion of cellulosic biofuel in bonus depreciation for biomass ethanol plant property
In general
Paragraph (3) of section 168(l) is amended to read as follows:
Cellulosic biofuel
The term cellulosic biofuel means any liquid fuel which is produced from any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis.
.
Conforming amendments
Subsection (l) of section 168 is amended—
by striking cellulosic biomass
ethanol
each place it appears and inserting cellulosic
biofuel
,
by striking
cellulosic biomass
ethanol
in the heading of such subsection and
inserting cellulosic
biofuel
, and
by striking cellulosic biomass
ethanol
in the heading of paragraph (2) thereof and
inserting cellulosic
biofuel
.
Effective date
The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act, in taxable years ending after such date.
Credits for biodiesel and renewable diesel
In general
Sections 40A(g),
6426(c)(6), and 6427(e)(5)(B) are each amended by striking December 31,
2008
and inserting December 31, 2009
.
Increase in rate of credit
Income tax credit
Paragraphs (1)(A) and (2)(A) of section 40A(b) are each
amended by striking 50 cents
and inserting
$1.00
.
Excise tax credit
Paragraph (2) of section 6426(c) is amended to read as follows:
Applicable amount
For purposes of this subsection, the applicable amount is $1.00.
.
Conforming amendments
Subsection (b) of section 40A is amended by striking paragraph (3) and by redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively.
Paragraph (2) of section 40A(f) is amended to read as follows:
Exception
Subsection (b)(4) shall not apply with respect to renewable diesel.
.
Paragraphs (2) and
(3) of section 40A(e) are each amended by striking subsection
(b)(5)(C)
and inserting subsection (b)(4)(C)
.
Clause (ii) of
section 40A(d)(3)(C) is amended by striking subsection (b)(5)(B)
and inserting subsection (b)(4)(B)
.
Uniform treatment of diesel produced from biomass
Paragraph (3) of section 40A(f) is amended—
by striking
diesel fuel
and inserting liquid fuel
,
by striking
using a thermal depolymerization process
, and
by striking
or D396
in subparagraph (B) and inserting , D396, or
other equivalent standard approved by the Secretary
.
Coproduction of renewable diesel with petroleum feedstock
In general
Paragraph (3) of section 40A(f) (defining renewable diesel) is amended by adding at the end the following flush sentence:
Such term does not include any fuel derived from coprocessing biomass with a feedstock which is not biomass. For purposes of this paragraph, the term biomass has the meaning given such term by section 45K(c)(3).
.
Conforming amendment
Paragraph (3) of section 40A(f) is amended by striking
(as defined in section 45K(c)(3))
.
Eligibility of certain aviation fuel
Paragraph (3) of section 40A(f) (defining
renewable diesel) is amended by adding at the end the following: The
term renewable diesel also means fuel derived from biomass which
meets the requirements of a Department of Defense specification for military
jet fuel or an American Society of Testing and Materials specification for
aviation turbine fuel.
Effective date
In general
Except as otherwise provided in this subsection, the amendments made by this section shall apply to fuel produced, and sold or used, after December 31, 2008.
Coproduction of renewable diesel with petroleum feedstock
The amendments made by subsection (c) shall apply to fuel produced, and sold or used, after February 13, 2008.
Clarification that credits for fuel are designed to provide an incentive for United States production
Alcohol fuels credit
Subsection (d) of section 40 is amended by adding at the end the following new paragraph:
Limitation to alcohol with connection to the United States
No credit shall be determined under this section with respect to any alcohol which is produced outside the United States for use as a fuel outside the United States. For purposes of this paragraph, the term United States includes any possession of the United States.
.
Biodiesel fuels credit
Subsection (d) of section 40A is amended by adding at the end the following new paragraph:
Limitation to biodiesel with connection to the United States
No credit shall be determined under this section with respect to any biodiesel which is produced outside the United States for use as a fuel outside the United States. For purposes of this paragraph, the term United States includes any possession of the United States.
.
Excise tax credit
In general
Section 6426 is amended by adding at the end the following new subsection:
Limitation to fuels with connection to the United States
Alcohol
No credit shall be determined under this section with respect to any alcohol which is produced outside the United States for use as a fuel outside the United States.
Biodiesel and alternative fuels
No credit shall be determined under this section with respect to any biodiesel or alternative fuel which is produced outside the United States for use as a fuel outside the United States.
.
Conforming amendment
Subsection (e) of section 6427 is amended by redesignating paragraph (5) as paragraph (6) and by inserting after paragraph (4) the following new paragraph:
Limitation to fuels with connection to the United States
No amount shall be payable under paragraph (1) or (2) with respect to any mixture or alternative fuel if credit is not allowed with respect to such mixture or alternative fuel by reason of section 6426(i).
.
Effective date
The amendments made by this section shall apply to claims for credit or payment made on or after May 15, 2008.
Credit for new qualified plug-in electric drive motor vehicles
In general
Subpart B of part IV of subchapter A of chapter 1 is amended by adding at the end the following new section:
New qualified plug-in electric drive motor vehicles
Allowance of credit
There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the credit amounts determined under subsection (b) with respect to each new qualified plug-in electric drive motor vehicle placed in service by the taxpayer during the taxable year.
Per vehicle dollar limitation
In general
The amount determined under this subsection with respect to any new qualified plug-in electric drive motor vehicle is the sum of the amounts determined under paragraphs (2) and (3) with respect to such vehicle.
Base amount
The amount determined under this paragraph is $3,000.
Battery capacity
In the case of a vehicle which draws propulsion energy from a battery with not less than 5 kilowatt hours of capacity, the amount determined under this paragraph is $200, plus $200 for each kilowatt hour of capacity in excess of 5 kilowatt hours. The amount determined under this paragraph shall not exceed $2,000.
Application with other credits
Business credit treated as part of general business credit
So much of the credit which would be allowed under subsection (a) for any taxable year (determined without regard to this subsection) that is attributable to property of a character subject to an allowance for depreciation shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)).
Personal credit
In general
For purposes of this title, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year.
Limitation based on amount of tax
In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for any taxable year (determined after application of paragraph (1)) shall not exceed the excess of—
the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over
the sum of the credits allowable under subpart A (other than this section and sections 23 and 25D) and section 27 for the taxable year.
New qualified plug-In electric drive motor vehicle
For purposes of this section—
In general
The term new qualified plug-in electric drive motor vehicle means a motor vehicle (as defined in section 30(c)(2))—
the original use of which commences with the taxpayer,
which is acquired for use or lease by the taxpayer and not for resale,
which is made by a manufacturer,
which has a gross vehicle weight rating of less than 14,000 pounds,
which has received a certificate of conformity under the Clean Air Act and meets or exceeds the Bin 5 Tier II emission standard established in regulations prescribed by the Administrator of the Environmental Protection Agency under section 202(i) of the Clean Air Act for that make and model year vehicle, and
which is propelled to a significant extent by an electric motor which draws electricity from a battery which—
has a capacity of not less than 4 kilowatt hours, and
is capable of being recharged from an external source of electricity.
Exception
The term new qualified plug-in electric drive motor vehicle shall not include any vehicle which is not a passenger automobile or light truck if such vehicle has a gross vehicle weight rating of less than 8,500 pounds.
Other terms
The terms passenger automobile, light truck, and manufacturer have the meanings given such terms in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act (42 U.S.C. 7521 et seq.).
Battery capacity
The term capacity means, with respect to any battery, the quantity of electricity which the battery is capable of storing, expressed in kilowatt hours, as measured from a 100 percent state of charge to a 0 percent state of charge.
Limitation on number of new qualified plug-In electric drive motor vehicles eligible for credit
In general
In the case of a new qualified plug-in electric drive motor vehicle sold during the phaseout period, only the applicable percentage of the credit otherwise allowable under subsection (a) shall be allowed.
Phaseout period
For purposes of this subsection, the phaseout period is the period beginning with the second calendar quarter following the calendar quarter which includes the first date on which the number of new qualified plug-in electric drive motor vehicles manufactured by the manufacturer of the vehicle referred to in paragraph (1) sold for use in the United States after the date of the enactment of this section, is at least 60,000.
Applicable percentage
For purposes of paragraph (1), the applicable percentage is—
50 percent for the first 2 calendar quarters of the phaseout period,
25 percent for the 3d and 4th calendar quarters of the phaseout period, and
0 percent for each calendar quarter thereafter.
Controlled groups
Rules similar to the rules of section 30B(f)(4) shall apply for purposes of this subsection.
Special rules
Basis reduction
The basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit (determined without regard to subsection (c)).
Recapture
The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit.
Property used outside United States, etc., not qualified
No credit shall be allowed under subsection (a) with respect to any property referred to in section 50(b)(1) or with respect to the portion of the cost of any property taken into account under section 179.
Election not to take credit
No credit shall be allowed under subsection (a) for any vehicle if the taxpayer elects to not have this section apply to such vehicle.
Property used by tax-exempt entity; interaction with air quality and motor vehicle safety standards
Rules similar to the rules of paragraphs (6) and (10) of section 30B(h) shall apply for purposes of this section.
.
Coordination with alternative motor vehicle credit
Section 30B(d)(3) is amended by adding at the end the following new subparagraph:
Exclusion of plug-in vehicles
Any vehicle with respect to which a credit is allowable under section 30D (determined without regard to subsection (c) thereof) shall not be taken into account under this section.
.
Credit made part of general business credit
Section 38(b) is amended—
by striking
and
each place it appears at the end of any paragraph,
by striking
plus
each place it appears at the end of any paragraph,
by striking the period at the end of paragraph (31) and inserting ‘‘, plus’’, and
by adding at the end the following new paragraph:
the portion of the new qualified plug-in electric drive motor vehicle credit to which section 30D(c)(1) applies.
.
Conforming amendments
Section 24(b)(3)(B), as
amended by section 704, is amended by striking and 25D
and
inserting 25D, and 30D
.
Section 25(e)(1)(C)(ii) is amended by
inserting 30D,
after 25D,
.
Section 25B(g)(2), as amended by
section 704, is amended by striking and 25D
and inserting
, 25D, and 30D
.
Section 26(a)(1), as amended by
section 704, is amended by striking and 25D
and inserting
25D, and 30D
.
Section 1400C(d)(2) is amended by
striking and 25D
and inserting 25D, and
30D
.
Section 1016(a) is
amended by striking and
at the end of paragraph (35), by
striking the period at the end of paragraph (36) and inserting ,
and
, and by adding at the end the following new paragraph:
to the extent provided in section 30D(f)(1).
.
Section 6501(m) is
amended by inserting 30D(f)(4),
after
30C(e)(5),
.
The table of sections for subpart B of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item:
Sec. 30D. New qualified plug-in electric drive motor vehicles.
.
Treatment of alternative motor vehicle credit as a personal credit
In general
Paragraph (2) of section 30B(g) is amended to read as follows:
Personal credit
The credit allowed under subsection (a) for any taxable year (after application of paragraph (1)) shall be treated as a credit allowable under subpart A for such taxable year.
.
Conforming amendments
Subparagraph (A) of section 30C(d)(2) is
amended by striking sections 27, 30, and 30B
and inserting
sections 27 and 30
.
Paragraph (3) of
section 55(c) is amended by striking 30B(g)(2),
.
Effective date
In general
Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years beginning after December 31, 2008.
Treatment of alternative motor vehicle credit as personal credit
The amendments made by subsection (e) shall apply to taxable years beginning after December 31, 2007.
Application of EGTRRA sunset
The amendment made by subsection (d)(1)(A) shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 in the same manner as the provision of such Act to which such amendment relates.
Exclusion from heavy truck tax for idling reduction units and advanced insulation
In general
Section 4053 is amended by adding at the end the following new paragraphs:
Idling reduction device
Any device or system of devices which—
is designed to provide to a vehicle those services (such as heat, air conditioning, or electricity) that would otherwise require the operation of the main drive engine while the vehicle is temporarily parked or remains stationary using one or more devices affixed to a tractor, and
is certified by the Secretary of Energy, in consultation with the Administrator of the Environmental Protection Agency and the Secretary of Transportation, to reduce idling of such vehicle at a motor vehicle rest stop or other location where such vehicles are temporarily parked or remain stationary.
Advanced insulation
Any insulation that has an R value of not less than R35 per inch.
.
Effective date
The amendment made by this section shall apply to sales or installations after the date of the enactment of this Act.
Restructuring of New York Liberty Zone tax credits
In general
Part I of subchapter Y of chapter 1 is amended by redesignating section 1400L as section 1400K and by adding at the end the following new section:
New York Liberty Zone tax credits
In general
In the case of a New York Liberty Zone governmental unit, there shall be allowed as a credit against any taxes imposed for any payroll period by section 3402 for which such governmental unit is liable under section 3403 an amount equal to so much of the portion of the qualifying project expenditure amount allocated under subsection (b)(3) to such governmental unit for the calendar year as is allocated by such governmental unit to such period under subsection (b)(4).
Qualifying project expenditure amount
For purposes of this section—
In general
The term qualifying project expenditure amount means, with respect to any calendar year, the sum of—
the total expenditures paid or incurred during such calendar year by all New York Liberty Zone governmental units and the Port Authority of New York and New Jersey for any portion of qualifying projects located wholly within the City of New York, New York, and
any such expenditures—
paid or incurred in any preceding calendar year which begins after the date of enactment of this section, and
not previously allocated under paragraph (3).
Qualifying project
The term qualifying project means any transportation infrastructure project, including highways, mass transit systems, railroads, airports, ports, and waterways, in or connecting with the New York Liberty Zone (as defined in section 1400K(h)), which is designated as a qualifying project under this section jointly by the Governor of the State of New York and the Mayor of the City of New York, New York.
General allocation
In general
The Governor of the State of New York and the Mayor of the City of New York, New York, shall jointly allocate to each New York Liberty Zone governmental unit the portion of the qualifying project expenditure amount which may be taken into account by such governmental unit under subsection (a) for any calendar year in the credit period.
Aggregate limit
The aggregate amount which may be allocated under subparagraph (A) for all calendar years in the credit period shall not exceed $2,000,000,000.
Annual limit
The aggregate amount which may be allocated under subparagraph (A) for any calendar year in the credit period shall not exceed the sum of—
$115,000,000 ($425,000,000 in the case of the last 2 years in the credit period), plus
the aggregate amount authorized to be allocated under this paragraph for all preceding calendar years in the credit period which was not so allocated.
Unallocated amounts at end of credit period
If, as of the close of the credit period, the amount under subparagraph (B) exceeds the aggregate amount allocated under subparagraph (A) for all calendar years in the credit period, the Governor of the State of New York and the Mayor of the City of New York, New York, may jointly allocate to New York Liberty Zone governmental units for any calendar year in the 5-year period following the credit period an amount equal to—
the lesser of—
such excess, or
the qualifying project expenditure amount for such calendar year, reduced by
the aggregate amount allocated under this subparagraph for all preceding calendar years.
Allocation to payroll periods
Each New York Liberty Zone governmental unit which has been allocated a portion of the qualifying project expenditure amount under paragraph (3) for a calendar year may allocate such portion to payroll periods beginning in such calendar year as such governmental unit determines appropriate.
Carryover of unused allocations
In general
Except as provided in paragraph (2), if the amount allocated under subsection (b)(3) to a New York Liberty Zone governmental unit for any calendar year exceeds the aggregate taxes imposed by section 3402 for which such governmental unit is liable under section 3403 for periods beginning in such year, such excess shall be carried to the succeeding calendar year and added to the allocation of such governmental unit for such succeeding calendar year.
Reallocation
If a New York Liberty Zone governmental unit does not use an amount allocated to it under subsection (b)(3) within the time prescribed by the Governor of the State of New York and the Mayor of the City of New York, New York, then such amount shall after such time be treated for purposes of subsection (b)(3) in the same manner as if it had never been allocated.
Definitions and special rules
For purposes of this section—
Credit period
The term credit period means the 12-year period beginning on January 1, 2009.
New York liberty zone governmental unit
The term New York Liberty Zone governmental unit means—
the State of New York,
the City of New York, New York, and
any agency or instrumentality of such State or City.
Treatment of funds
Any expenditure for a qualifying project taken into account for purposes of the credit under this section shall be considered State and local funds for the purpose of any Federal program.
Treatment of credit amounts for purposes of withholding taxes
For purposes of this title, a New York Liberty Zone governmental unit shall be treated as having paid to the Secretary, on the day on which wages are paid to employees, an amount equal to the amount of the credit allowed to such entity under subsection (a) with respect to such wages, but only if such governmental unit deducts and withholds wages for such payroll period under section 3401 (relating to wage withholding).
Reporting
The Governor of the State of New York and the Mayor of the City of New York, New York, shall jointly submit to the Secretary an annual report—
which certifies—
the qualifying project expenditure amount for the calendar year, and
the amount allocated to each New York Liberty Zone governmental unit under subsection (b)(3) for the calendar year, and
includes such other information as the Secretary may require to carry out this section.
Guidance
The Secretary may prescribe such guidance as may be necessary or appropriate to ensure compliance with the purposes of this section.
.
Termination of special allowance and expensing
Subparagraph (A) of section
1400K(b)(2), as redesignated by subsection (a), is amended by striking the
parenthetical therein and inserting (in the case of nonresidential real
property and residential rental property, the date of the enactment of the
Renewable Energy and Job Creation Act of
2008 or, if acquired pursuant to a binding contract in effect on
such enactment date, December 31, 2009)
.
Conforming amendments
Section
38(c)(3)(B) is amended by striking section 1400L(a)
and
inserting section 1400K(a)
.
Section
168(k)(2)(D)(ii) is amended by striking section 1400L(c)(2)
and
inserting section 1400K(c)(2)
.
The table of sections for part I of subchapter Y of chapter 1 is amended by redesignating the item relating to section 1400L as an item relating to section 1400K and by inserting after such item the following new item:
Sec. 1400L. New York Liberty Zone tax credits.
.
Effective date
The amendments made by this section shall take effect on the date of the enactment of this Act.
Transportation fringe benefit to bicycle commuters
In general
Paragraph (1) of section 132(f) is amended by adding at the end the following:
Any qualified bicycle commuting reimbursement.
.
Limitation on exclusion
Paragraph (2) of section 132(f) is amended by striking
and
at the end of subparagraph (A), by striking the period at
the end of subparagraph (B) and inserting , and
, and by adding
at the end the following new subparagraph:
the applicable annual limitation in the case of any qualified bicycle commuting reimbursement.
.
Definitions
Paragraph (5) of section 132(f) is amended by adding at the end the following:
Definitions related to bicycle commuting reimbursement
Qualified bicycle commuting reimbursement
The term qualified bicycle commuting reimbursement means, with respect to any calendar year, any employer reimbursement during the 15-month period beginning with the first day of such calendar year for reasonable expenses incurred by the employee during such calendar year for the purchase of a bicycle and bicycle improvements, repair, and storage, if such bicycle is regularly used for travel between the employee’s residence and place of employment.
Applicable annual limitation
The term applicable annual limitation means, with respect to any employee for any calendar year, the product of $20 multiplied by the number of qualified bicycle commuting months during such year.
Qualified bicycle commuting month
The term qualified bicycle commuting month means, with respect to any employee, any month during which such employee—
regularly uses the bicycle for a substantial portion of the travel between the employee’s residence and place of employment, and
does not receive any benefit described in subparagraph (A), (B), or (C) of paragraph (1).
.
Constructive receipt of benefit
Paragraph (4) of section 132(f) is amended by
inserting (other than a qualified bicycle commuting
reimbursement)
after qualified transportation
fringe
.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2008.
Alternative fuel vehicle refueling property credit
Increase in credit amount
Section 30C is amended—
by striking
30 percent
in subsection (a) and inserting 50
percent
, and
by
striking $30,000
in subsection (b)(1) and inserting
$50,000
.
Extension of credit
Paragraph (2) of section 30C(g) is amended by striking
December 31, 2009
and inserting December 31,
2010
.
Effective date
The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act, in taxable years ending after such date.
Energy conservation and efficiency provisions
Qualified energy conservation bonds
In general
Subpart I of part IV of subchapter A of chapter 1, as added by section 706, is amended by adding at the end the following new section:
Qualified energy conservation bonds
Qualified energy conservation bond
For purposes of this subchapter, the term qualified energy conservation bond means any bond issued as part of an issue if—
100 percent of the available project proceeds of such issue are to be used for one or more qualified conservation purposes,
the bond is issued by a State or local government, and
the issuer designates such bond for purposes of this section.
Reduced credit amount
The annual credit determined under section 54A(b) with respect to any qualified energy conservation bond shall be 70 percent of the amount so determined without regard to this subsection.
Limitation on amount of bonds designated
The maximum aggregate face amount of bonds which may be designated under subsection (a) by any issuer shall not exceed the limitation amount allocated to such issuer under subsection (e).
National limitation on amount of bonds designated
There is a national qualified energy conservation bond limitation of $3,000,000,000.
Allocations
In general
The limitation applicable under subsection (d) shall be allocated by the Secretary among the States in proportion to the population of the States.
Allocations to largest local governments
In general
In the case of any State in which there is a large local government, each such local government shall be allocated a portion of such State’s allocation which bears the same ratio to the State’s allocation (determined without regard to this subparagraph) as the population of such large local government bears to the population of such State.
Allocation of unused limitation to State
The amount allocated under this subsection to a large local government may be reallocated by such local government to the State in which such local government is located.
Large local government
For purposes of this section, the term large local government means any municipality or county if such municipality or county has a population of 100,000 or more.
Allocation to issuers; restriction on private activity bonds
Any allocation under this subsection to a State or large local government shall be allocated by such State or large local government to issuers within the State in a manner that results in not less than 70 percent of the allocation to such State or large local government being used to designate bonds which are not private activity bonds.
Qualified conservation purpose
For purposes of this section—
In general
The term qualified conservation purpose means any of the following:
Capital expenditures incurred for purposes of—
reducing energy consumption in publicly-owned buildings by at least 20 percent,
implementing green community programs,
rural development involving the production of electricity from renewable energy resources, or
any qualified facility (as determined under section 45(d) without regard to paragraphs (8) and (10) thereof and without regard to any placed in service date).
Expenditures with respect to research facilities, and research grants, to support research in—
development of cellulosic ethanol or other nonfossil fuels,
technologies for the capture and sequestration of carbon dioxide produced through the use of fossil fuels,
increasing the efficiency of existing technologies for producing nonfossil fuels,
automobile battery technologies and other technologies to reduce fossil fuel consumption in transportation, or
technologies to reduce energy use in buildings.
Mass commuting facilities and related facilities that reduce the consumption of energy, including expenditures to reduce pollution from vehicles used for mass commuting.
Demonstration projects designed to promote the commercialization of—
green building technology,
conversion of agricultural waste for use in the production of fuel or otherwise,
advanced battery manufacturing technologies,
technologies to reduce peak use of electricity, or
technologies for the capture and sequestration of carbon dioxide emitted from combusting fossil fuels in order to produce electricity.
Public education campaigns to promote energy efficiency.
Special rules for private activity bonds
For purposes of this section, in the case of any private activity bond, the term qualified conservation purposes shall not include any expenditure which is not a capital expenditure.
Population
In general
The population of any State or local government shall be determined for purposes of this section as provided in section 146(j) for the calendar year which includes the date of the enactment of this section.
Special rule for counties
In determining the population of any county for purposes of this section, any population of such county which is taken into account in determining the population of any municipality which is a large local government shall not be taken into account in determining the population of such county.
Application to Indian tribal governments
An Indian tribal government shall be treated for purposes of this section in the same manner as a large local government, except that—
an Indian tribal government shall be treated for purposes of subsection (e) as located within a State to the extent of so much of the population of such government as resides within such State, and
any bond issued by an Indian tribal government shall be treated as a qualified energy conservation bond only if issued as part of an issue the available project proceeds of which are used for purposes for which such Indian tribal government could issue bonds to which section 103(a) applies.
.
Conforming amendments
Paragraph (1) of section 54A(d), as added by section 706, is amended to read as follows:
Qualified tax credit bond
The term qualified tax credit bond means—
a qualified forestry conservation bond,
a new clean renewable energy bond, or
a qualified energy conservation bond,
.
Subparagraph (C) of section 54A(d)(2), as added by section 706, is amended to read as follows:
Qualified purpose
For purposes of this paragraph, the term qualified purpose means—
in the case of a qualified forestry conservation bond, a purpose specified in section 54B(e),
in the case of a new clean renewable energy bond, a purpose specified in section 54C(a)(1), and
in the case of a qualified energy conservation bond, a purpose specified in section 54D(a)(1).
.
The table of sections for subpart I of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item:
.
Effective date
The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.
Credit for nonbusiness energy property
Extension of credit
Section 25C(g) is
amended by striking December 31, 2007
and inserting
December 31, 2008
.
Qualified biomass fuel property
In general
Section 25C(d)(3) is amended—
by striking
and
at the end of subparagraph (D),
by striking the
period at the end of subparagraph (E) and inserting , and
,
and
by adding at the end the following new subparagraph:
a stove which uses the burning of biomass fuel to heat a dwelling unit located in the United States and used as a residence by the taxpayer, or to heat water for use in such a dwelling unit, and which has a thermal efficiency rating of at least 75 percent.
.
Biomass fuel
Section 25C(d) is amended by adding at the end the following new paragraph:
Biomass fuel
The term biomass fuel means any plant-derived fuel available on a renewable or recurring basis, including agricultural crops and trees, wood and wood waste and residues (including wood pellets), plants (including aquatic plants), grasses, residues, and fibers.
.
Coordination with credit for qualified geothermal heat Pump property expenditures
In general
Paragraph (3) of section 25C(d), as amended by subsection (b), is amended by striking subparagraph (C) and by redesignating subparagraphs (D), (E), and (F) as subparagraphs (C), (D), and (E), respectively.
Conforming amendment
Subparagraph (C) of section 25C(d)(2) is amended to read as follows:
Requirements and standards for air conditioners and heat pumps
The standards and requirements prescribed by the Secretary under subparagraph (B) with respect to the energy efficiency ratio (EER) for central air conditioners and electric heat pumps—
shall require measurements to be based on published data which is tested by manufacturers at 95 degrees Fahrenheit, and
may be based on the certified data of the Air Conditioning and Refrigeration Institute that are prepared in partnership with the Consortium for Energy Efficiency.
.
Effective date
The amendments made this section shall apply to expenditures made after December 31, 2007.
Energy efficient commercial buildings deduction
Subsection (h) of section 179D is amended by
striking December 31, 2008
and inserting December 31,
2013
.
Modifications of energy efficient appliance credit for appliances produced after 2007
In general
Subsection (b) of section 45M is amended to read as follows:
Applicable amount
For purposes of subsection (a)—
Dishwashers
The applicable amount is—
$45 in the case of a dishwasher which is manufactured in calendar year 2008 or 2009 and which uses no more than 324 kilowatt hours per year and 5.8 gallons per cycle, and
$75 in the case of a dishwasher which is manufactured in calendar year 2008, 2009, or 2010 and which uses no more than 307 kilowatt hours per year and 5.0 gallons per cycle (5.5 gallons per cycle for dishwashers designed for greater than 12 place settings).
Clothes washers
The applicable amount is—
$75 in the case of a residential top-loading clothes washer manufactured in calendar year 2008 which meets or exceeds a 1.72 modified energy factor and does not exceed a 8.0 water consumption factor,
$125 in the case of a residential top-loading clothes washer manufactured in calendar year 2008 or 2009 which meets or exceeds a 1.8 modified energy factor and does not exceed a 7.5 water consumption factor,
$150 in the case of a residential or commercial clothes washer manufactured in calendar year 2008, 2009, or 2010 which meets or exceeds 2.0 modified energy factor and does not exceed a 6.0 water consumption factor, and
$250 in the case of a residential or commercial clothes washer manufactured in calendar year 2008, 2009, or 2010 which meets or exceeds 2.2 modified energy factor and does not exceed a 4.5 water consumption factor.
Refrigerators
The applicable amount is—
$50 in the case of a refrigerator which is manufactured in calendar year 2008, and consumes at least 20 percent but not more than 22.9 percent less kilowatt hours per year than the 2001 energy conservation standards,
$75 in the case of a refrigerator which is manufactured in calendar year 2008 or 2009, and consumes at least 23 percent but no more than 24.9 percent less kilowatt hours per year than the 2001 energy conservation standards,
$100 in the case of a refrigerator which is manufactured in calendar year 2008, 2009, or 2010, and consumes at least 25 percent but not more than 29.9 percent less kilowatt hours per year than the 2001 energy conservation standards, and
$200 in the case of a refrigerator manufactured in calendar year 2008, 2009, or 2010 and which consumes at least 30 percent less energy than the 2001 energy conservation standards.
.
Eligible production
Similar treatment for all appliances
Subsection (c) of section 45M is amended—
by striking paragraph (2),
by striking
(1) In
general
and all that follows through the
eligible
and inserting The eligible
,
by moving the text of such subsection in line with the subsection heading, and
by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively, and by moving such paragraphs 2 ems to the left.
Modification of base period
Paragraph (2) of section 45M(c), as amended by
paragraph (1), is amended by striking 3-calendar year
and
inserting 2-calendar year
.
Types of energy efficient appliances
Subsection (d) of section 45M (defining types of energy efficient appliances) is amended to read as follows:
Types of energy efficient appliance
For purposes of this section, the types of energy efficient appliances are—
dishwashers described in subsection (b)(1),
clothes washers described in subsection (b)(2), and
refrigerators described in subsection (b)(3).
.
Aggregate credit amount allowed
Increase in limit
Paragraph (1) of section 45M(e) is amended to read as follows:
Aggregate credit amount allowed
The aggregate amount of credit allowed under subsection (a) with respect to a taxpayer for any taxable year shall not exceed $75,000,000 reduced by the amount of the credit allowed under subsection (a) to the taxpayer (or any predecessor) for all prior taxable years beginning after December 31, 2007.
.
Exception for certain refrigerator and clothes washers
Paragraph (2) of section 45M(e) is amended to read as follows:
Amount allowed for certain refrigerators and clothes washers
Refrigerators described in subsection (b)(3)(D) and clothes washers described in subsection (b)(2)(D) shall not be taken into account under paragraph (1).
.
Qualified energy efficient appliances
In general
Paragraph (1) of section 45M(f) (defining qualified energy efficient appliance) is amended to read as follows:
Qualified energy efficient appliance
The term qualified energy efficient appliance means—
any dishwasher described in subsection (b)(1),
any clothes washer described in subsection (b)(2), and
any refrigerator described in subsection (b)(3).
.
Clothes washer
Section 45M(f)(3) is amended by inserting
commercial
before residential
the second place it
appears.
Top-loading clothes washer
Subsection (f) of section 45M is amended by redesignating paragraphs (4), (5), (6), and (7) as paragraphs (5), (6), (7), and (8), respectively, and by inserting after paragraph (3) the following new paragraph:
Top-loading clothes washer
The term
top-loading clothes washer
means a clothes washer which has the
clothes container compartment access located on the top of the machine and
which operates on a vertical
axis.
.
Replacement of energy factor
Section 45M(f)(6), as redesignated by paragraph (3), is amended to read as follows:
Modified energy factor
The term modified energy factor means the modified energy factor established by the Department of Energy for compliance with the Federal energy conservation standard.
.
Gallons per cycle; water consumption factor
Section 45M(f), as amended by paragraph (3), is amended by adding at the end the following:
Gallons per cycle
The term gallons per cycle means, with respect to a dishwasher, the amount of water, expressed in gallons, required to complete a normal cycle of a dishwasher.
Water consumption factor
The term water consumption factor means, with respect to a clothes washer, the quotient of the total weighted per-cycle water consumption divided by the cubic foot (or liter) capacity of the clothes washer.
.
Effective date
The amendments made by this section shall apply to appliances produced after December 31, 2007.
Accelerated recovery period for depreciation of smart meters and smart grid systems
In general
Section 168(e)(3)(D) is amended by striking
and
at the end of clause (i), by striking the period at the end
of clause (ii) and inserting a comma, and by inserting after clause (ii) the
following new clauses:
any qualified smart electric meter, and
any qualified smart electric grid system.
.
Definitions
Section 168(i) is amended by inserting at the end the following new paragraph:
Qualified smart electric meters
In general
The term qualified smart electric meter means any smart electric meter which is placed in service by a taxpayer who is a supplier of electric energy or a provider of electric energy services.
Smart electric meter
For purposes of subparagraph (A), the term smart electric meter means any time-based meter and related communication equipment which is capable of being used by the taxpayer as part of a system that—
measures and records electricity usage data on a time-differentiated basis in at least 24 separate time segments per day,
provides for the exchange of information between supplier or provider and the customer’s electric meter in support of time-based rates or other forms of demand response,
provides data to such supplier or provider so that the supplier or provider can provide energy usage information to customers electronically, and
provides net metering.
Qualified smart electric grid systems
In general
The term qualified smart electric grid
system
means any smart grid property used as part of a system for
electric distribution grid communications, monitoring, and management placed in
service by a taxpayer who is a supplier of electric energy or a provider of
electric energy services.
Smart grid property
For the purposes of subparagraph (A), the term
smart grid property
means electronics and related equipment that
is capable of—
sensing, collecting, and monitoring data of or from all portions of a utility’s electric distribution grid,
providing real-time, two-way communications to monitor or manage such grid, and
providing real time analysis of and event prediction based upon collected data that can be used to improve electric distribution system reliability, quality, and performance.
.
Continued application of 150 percent declining balance method
Paragraph (2)
of section 168(b) is amended by striking or
at the end of
subparagraph (B), by redesignating subparagraph (C) as subparagraph (D), and by
inserting after subparagraph (B) the following new subparagraph:
any property (other than property described in paragraph (3)) which is a qualified smart electric meter or qualified smart electric grid system, or
.
Effective date
The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.
Qualified green building and sustainable design projects
In general
Paragraph (8) of
section 142(l) is amended by striking September 30, 2009
and
inserting September 30, 2012
.
Treatment of current refunding bonds
Paragraph (9) of section 142(l) is
amended by striking October 1, 2009
and inserting October
1, 2012
.
Accountability
The
second sentence of section 701(d) of the American Jobs Creation Act of 2004 is
amended by striking issuance,
and inserting issuance of
the last issue with respect to such project,
.
Revenue Provision
Delay in application of worldwide allocation of interest
In general
Paragraph (6) of section 864(f), as amended by the
Housing Assistance Tax Act of 2008, is amended by striking December 31,
2010
and inserting December 31, 2018
.
Conforming amendment
Paragraph (5)(D) of section 864(f) is amended by
striking December 31, 2008
and inserting December 31,
2018
.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2008.