H.R. 4967

To amend the Internal Revenue Code of 1986 to provide an exception to the arbitrage rules for prepayments for electricity generated from renewable resources.

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I

111th CONGRESS

2d Session

H. R. 4967

IN THE HOUSE OF REPRESENTATIVES

March 25, 2010

Ms. Giffords (for herself, Mr. Thompson of California, Mrs. Bono Mack, Mr. Grijalva, Mr. Luján, Mr. Blumenauer, and Mr. Carnahan) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to provide an exception to the arbitrage rules for prepayments for electricity generated from renewable resources.

1.

Exception to arbitrage rules for prepayments for electricity generated from renewable resources

(a)

In general

Section 148(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

(5)

Exception for prepaid electricity generated from renewable resources

(A)

In general

The term investment-type property does not include a prepayment under a qualified renewable electricity contract.

(B)

Qualified renewable electricity contract

For purposes of this paragraph, the term qualified renewable electricity contract means any contract to acquire electricity if—

(i)

such electricity is used by the State or political subdivision thereof with respect to which the State or local bond is issued, and

(ii)

in connection with such contract the supplier of such electricity places in service property which is capable of generating from qualified energy resources (as defined in section 45(c)) the amount of electricity purchased under the contract (and such property is not taken into account under this paragraph with respect to any other contract).

.

(b)

Effective date

The amendment made by this section shall apply to obligations issued after the date of the enactment of this Act.