II
110th CONGRESS
2d Session
S. 3349
IN THE SENATE OF THE UNITED STATES
July 28, 2008
Ms. Collins introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To increase energy assistance for low-income persons, to extend energy tax incentives, and for other purposes.
Short title; table of contents
Short title
This Act may be cited
as the Energy Assistance Act of
2008
.
Table of contents
The table of contents of this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—Energy assistance
Sec. 101. Weatherization assistance.
Sec. 102. Energy Assistance Fund.
TITLE II—Tax provisions
Sec. 200. Reference.
Subtitle A—Clean stoves
Sec. 201. Credit for replacement of wood-burning stoves meeting environmental standards.
Subtitle B—Renewable energy incentives
Sec. 211. Renewable energy credit.
Sec. 212. Production credit for electricity produced from marine renewables.
Sec. 213. Energy credit.
Sec. 214. Credit for residential energy efficient property.
Sec. 215. Special rule to implement FERC and State electric restructuring policy.
Sec. 216. New clean renewable energy bonds.
Subtitle C—Carbon mitigation provisions
Sec. 221. Expansion and modification of advanced coal project investment credit.
Sec. 222. Expansion and modification of coal gasification investment credit.
Sec. 223. Temporary increase in coal excise tax.
Sec. 224. Special rules for refund of the coal excise tax to certain coal producers and exporters.
Sec. 225. Carbon audit of the tax code.
Subtitle D—Transportation and domestic fuel security provisions
Sec. 231. Inclusion of cellulosic biofuel in bonus depreciation for biomass ethanol plant property.
Sec. 232. Credits for biodiesel and renewable diesel.
Sec. 233. Clarification that credits for fuel are designed to provide an incentive for United States production.
Sec. 234. Credit for new qualified plug-in electric drive motor vehicles.
Sec. 235. Exclusion from heavy truck tax for idling reduction units and advanced insulation.
Sec. 236. Transportation fringe benefit to bicycle commuters.
Sec. 237. Alternative fuel vehicle refueling property credit.
Subtitle E—Energy conservation and efficiency provisions
Sec. 241. Qualified energy conservation bonds.
Sec. 242. Credit for nonbusiness energy property.
Sec. 243. Energy efficient commercial buildings deduction.
Sec. 244. Modifications of energy efficient appliance credit for appliances produced after 2007.
Sec. 245. Accelerated recovery period for depreciation of smart meters and smart grid systems.
Sec. 246. Qualified green building and sustainable design projects.
Energy assistance
Weatherization assistance
Section 422 of the Energy Conservation and Production Act (42 U.S.C. 6872) is amended to read as follows:
Authorization of appropriations
There are authorized to be appropriated to carry out the weatherization program under this part—
$1,800,000,000 for fiscal year 2009;
$2,100,000,000 for fiscal year 2010; and
$2,400,000,000 for fiscal year 2011.
.
Energy Assistance Fund
Definitions
In this section:
Fund
The
term Fund
means the Energy Assistance Fund established under
subsection (b).
Secretary concerned
The term Secretary concerned means, with respect to programs carried out by each Secretary—
the Secretary of Agriculture;
the Secretary of Energy;
the Secretary of Housing and Urban Development;
the Secretary of Transportation; and
the Administrator of the Small Business Administration.
Establishment
There
is established in the Treasury of the United States a revolving fund, to be
known as the Energy Assistance Fund
, consisting of such amounts
as are appropriated to the Fund under subsection (h)(1).
Expenditures from Fund
In general
Subject to paragraph (2), on request by the Secretary concerned, the Secretary of the Treasury shall transfer from the Fund to the Secretary concerned such amounts as the Secretary concerned determines are necessary to provide to carry out 1 or more qualified purposes described in subsections (d), (e) and (f).
Administrative expenses
An amount not exceeding 10 percent of the amounts in the Fund shall be available for each fiscal year to pay the administrative expenses necessary to carry out this section.
Low-interest loans for purchase and installation of qualifying energy efficient property
In general
To the extent that the Secretary concerned has authority under other law to make loans or grants to persons to purchase and install qualifying property, the Secretary concerned may make available to eligible United States persons loans under this subsection for the purchase and installation of qualifying property.
Qualifying property
For the purpose of paragraph (1), qualifying property means—
any component which constitutes a qualified energy efficiency improvement (as defined in section 25C(c) of the Internal Revenue Code of 1986);
property to heat water for use in a dwelling unit located in the United States and used a residence by the person if at least half of the energy used by such property for such purpose is derived from the sun;
property which uses solar energy to generate electricity for use in a dwelling unit located in the United States and used by the person (in the case of an individual) as a residence;
qualified fuel cell property (as defined in section 48(c)(1) of that Code) installed on or in connection with a dwelling unit located in the United States and used as a principal residence (within the meaning of section 121 of that Code) by the person (in the case of an individual); or
a compliant stove (as defined in section 25E(c)(2) of that Code) which—
is installed in a dwelling unit located in the United States; and
replaces a noncompliant stove (as defined in section 25E(c)(3) of that Code) used in such dwelling unit.
Eligibility
To be eligible to receive a loan under this subsection, a person that is an individual shall have a household income of not to exceed 115 percent of the area median household income, as determined by the Secretary concerned.
Use of loan
The recipient of a loan under this subsection may use the loan only to fund improvements to property owned by, and for the benefit of, the recipient.
Amount
The amount of a loan made to a person under this subsection shall equal the lesser of—
90 percent of the difference between—
the cost incurred by the person for the purchase and installation of the qualifying property, as approved by the Secretary; and
the amount of any credit allowable to the person with respect to such property under section 25C, 25D, or 25E, of the Internal Revenue Code of 1986; or
$30,000.
Term of loans
A loan under this subsection shall have a term of not to exceed 15 years.
Low-interest loans for purchase and installation of idling reduction and advanced insulation for heavy trucks
In general
To the extent that the Secretary concerned has authority under other law to make loans or grants to persons to purchase and install idling reduction devices described in section 4053(9) of the Internal Revenue Code of 1986 or advanced insulation described in section 4053(10) of such Code, the Secretary concerned may make available loans under this subsection to United States persons for the purchase and installation of such idling reduction devices and advanced insulation.
Use of loan
The recipient of a loan under this subsection may use the loan only to fund improvements to property owned by, and for the benefit of, the recipient.
Amount
In general
The amount of a loan made to a person under this subsection shall equal 90 percent of the difference between—
the cost incurred by the person for the purchase and installation of the idling reduction devices and advanced insulation described in subsection (a), as approved by the Secretary concerned; and
12 percent of the amount for which the idling reduction devices or advanced insulation was sold.
Special rules
In the case of any property described in paragraphs (2), (3), or (4) of section 4051(a) of the Internal Revenue Code of 1986, the amount determined under subparagraph (A) shall be zero.
Determination of price
Rules similar to the rules of section 4052(b) of the Internal Revenue Code of 1986 shall apply for purposes of subparagraph (B).
Loan terms
The Secretary concerned shall establish terms for loans made under this subsection, as determined by the Secretary concerned.
Low-interest loans for purchase and installation of alternative refueling stations
In general
To the extent that the Secretary concerned has authority under other law to make loans or grants to persons for the purchase and installation of any qualified alternative fuel vehicle refueling property (as defined in section 30C(c) of the Internal Revenue Code of 1986), the Secretary concerned may make available loans under this subsection to United States persons for the purchase and installation of any such qualified alternative fuel vehicle refueling property placed in service by the person during a taxable year.
Use of loan
The recipient of a loan under this subsection may use the loan only to fund improvements to property owned by, and for the benefit of, the recipient.
Amount
The amount of a loan made to a person under this subsection shall equal 90 percent of the difference between—
the cost incurred by the person for the purchase and installation of the qualified alternative fuel vehicle refueling property described in paragraph (1), as approved by the Secretary concerned; and
the amount of any credit allowable to the person under section 30C of the Internal Revenue Code of 1986.
Loan terms
The Secretary concerned shall establish terms for loans made under this subsection, as determined by the Secretary concerned.
Transfers of amounts
In general
The amounts required to be transferred to the Fund under this section shall be transferred at least monthly from the general fund of the Treasury to the Fund on the basis of estimates made by the Secretary of the Treasury.
Adjustments
Proper adjustment shall be made in amounts subsequently transferred to the extent prior estimates were in excess of or less than the amounts required to be transferred.
Funding
Mandatory funding
In general
Notwithstanding any other provision of law, on October 1, 2008, out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Fund for the cost of loans to carry out the purposes of the Fund $1,000,000,000, to remain available until expended.
Receipt and acceptance
The Fund shall be entitled to receive, shall accept, and shall use to carry out the purposes of the Fund the funds transferred under subparagraph (A), without further appropriation.
Authorization of appropriations
In general
In addition to the amount made available under paragraph (1), there are authorized to be appropriated to the Fund such sums as are necessary to carry out the purposes of the Fund.
Additional funding
To the extent that a Secretary described in subsection (a) has authority under other law to make loans or grants described in subsection (d)(1), (e)(1), or (f)(1), in addition to any other funds made available to carry out that authority under any other provision of law, there are authorized to be appropriated to the Secretary such sums as are necessary for the Secretary to provide additional loans or grants under that authority.
Tax provisions
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.
Clean stoves
Credit for replacement of wood-burning stoves meeting environmental standards
In general
Subpart A of part IV of subchapter A of chapter 1 (relating to nonrefundable personal credits) is amended by inserting after section 25D the following new section:
Replacement of wood-burning stoves
Allowance of credit
In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the qualified stove replacement expenditures paid or incurred by the taxpayer for the taxable year.
Limitation
The amount of the credit under subsection (a) with respect to the replacement of each non-compliant wood stove shall not exceed $500.
Qualified stove replacement expenditures
For purposes of this section—
In general
The term qualified stove replacement expenditures means expenditures made by the taxpayer for the purchase and installation of a compliant stove which—
is installed in a dwelling unit located in the United States, and
replaces a noncompliant wood stove used in such dwelling unit.
Compliant stove
The term compliant stove means—
a wood-burning
stove which meets the requirements set forth in the Standards of
Performance for New Residential Wood Heaters
issued by the
Environmental Protection Agency, and
a pellet or corn-burning stove.
Noncompliant wood stove
The term noncompliant wood stove means any wood-burning stove that is not a compliant stove.
Joint occupancy, cooperative housing corporations, and when expenditure made
Rules similar to the rules of paragraphs (4), (5), and (8) of section 25D(e) shall apply for purposes of this section.
Basis adjustment
For purposes of this subtitle, if a credit is allowed under this section for any expenditure with respect to any property, the increase in the basis of such property which would (but for this subsection) result from such expenditure shall be reduced by the amount of the credit so allowed.
Termination
This section shall not apply to expenditures made after December 31, 2010.
.
Conforming amendments
Subsection (a) of section 1016 is amended—
by striking
and
at the end of paragraph (36),
by striking the
period at the end of paragraph (37) and inserting , and
,
and
by adding at the end the following new paragraph:
to the extent provided in section 25E(e), in the case of amounts with respect to which a credit has been allowed under section 25E.
.
The table of sections for subpart A of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 25D the following new item:
Sec. 25E. Replacement of
wood-burning stoves.
.
Effective date
The amendments made by this section shall apply to expenditures for stoves purchased after the date of the enactment of this Act.
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 211, 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 governmental bodies, 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:
.
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
.
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.
Disclosure of allocations
The amendment made by subsection (d) 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 new 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 (d) shall apply to fuel produced, and sold or used, after the date of the enactment of this Act.
Clarification that credits for fuel are designed to provide an incentive for United States production
Alcohol fuels credit
Paragraph (6) of section 40(d) is amended to read as follows:
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 plus
at the end of paragraph (32), by striking the
period at the end of paragraph (33) 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 214, 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 214, is amended by striking and 25D
and inserting
, 25D, and 30D
.
Section 26(a)(1), as amended by
section 214, 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 determined by the Administrator of the Environmental Protection Agency, in consultation with the Secretary of Energy 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.
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 amended by section 216, 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 amended by section 216, 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 amended by section 216, 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, or
is a wood stove which meets the standards of performance for new residential wood heaters under subpart AAA of part 60 of subchapter C of chapter I of title 40, Code of Federal Regulations (or a successor regulation).
.
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.
.
Modification of qualified energy efficiency improvements
In general
Paragraph (1) of section 25C(c) is amended by inserting
, or an asphalt roof with appropriate cooling granules,
before
which meet the Energy Star program requirements
.
Building envelope component
Subparagraph (D) of section 25C(c)(2) is amended—
by inserting
or asphalt roof
after metal roof
, and
by inserting
or cooling granules
after pigmented
coatings
.
Effective dates
In general
Except as provided in paragraph (2), the amendments made this section shall apply to expenditures made after December 31, 2007.
Modification of qualified energy efficiency improvements
The amendments made by subsection (d) shall apply to property placed in service after the date of the enactment of this Act.
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,
.