II
111th CONGRESS
2d Session
S. 3064
IN THE SENATE OF THE UNITED STATES
March 3, 2010
Ms. Snowe (for herself, Mr. Carper, and Ms. Collins) introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to provide a credit for the production of energy from deep water offshore wind.
Short title
This Act may be cited as the
Deepwater Offshore Wind Incentive Act
.
Credit for production of energy from deep water offshore wind
Production credit
In general
Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:
Credit for production for deep water offshore wind
General rule
For purposes of section 38, the deep water offshore wind production credit of any taxpayer for any taxable year is equal to the product of—
3.04 cents, multiplied by
the kilowatt hours of electricity—
produced by the taxpayer at a deep water offshore wind facility during the 10-year period beginning on the date the facility was originally placed in service, and
sold by the taxpayer to an unrelated person during the taxable year.
National limitation
In general
The amount of credit which would (but for this subsection) be allowed with respect to any facility for any taxable year shall not exceed the amount which bears the same ratio to such amount of credit as—
the national megawatt capacity limitation allocated to the facility, bears to
the total megawatt nameplate capacity of such facility.
Amount of national limitation
The aggregate amount of national megawatt capacity limitation allocated by the Secretary under paragraph (3) shall not exceed 6,000 megawatts.
Allocation of limitation
The Secretary shall allocate the national megawatt capacity limitation in the following manner:
The Secretary shall allocate the first 5,000 megawatts of the national megawatt capacity limitation to facilities by giving priority to facilities which will be placed in service at the earliest date.
The Secretary shall allocate the remaining megawatts of the national megawatt capacity limitation by taking into account the technology of the facility.
Regulations
Not later than 6 months after the date of the enactment of this section, the Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this subsection. Such regulations shall provide a certification process under which the Secretary, after consultation with the Secretary of Energy, shall approve and allocate the national megawatt capacity limitation.
Deep water offshore wind facility
For purposes of this section—
In general
The term deep water offshore wind facility means any facility which—
is owned by the taxpayer,
uses wind to produce electricity,
operates in 60 meters or more of water,
is located within the internal or territorial waters of the United States, and
is placed in service after the date of the enactment of this section and before January 1, 2030.
Exceptions
Such term shall not include any facility if—
a credit has been allowed to such facility under section 45 for such taxable year or any prior taxable year,
a credit has been allowed with respect to such facility under section 46 by reason of section 48(a) for such taxable or any preceding taxable year, or
a grant has been made with respect to such facility under section 1603 of the American Recovery and Reinvestment Act of 2009.
Other rules to apply
Rules similar to the rules of paragraphs (1), (3), (4), and (5) of section 45(e) shall apply for purposes of this section.
Inflation adjustment
In general
In the case of any calendar year after 2010, the 3.04 cent amount in subsection (a)(1) shall be adjusted by multiplying such amount by the inflation adjustment factor for the calendar year in which the sale occurs. If any amount as increased under the preceding sentence is not a multiple of 0.01 cent, such amount shall be rounded to the nearest multiple of 0.01 cent.
Inflation adjustment factor
For purposes of paragraph (1), the term
inflation adjustment factor has the meaning given such term under
section 45(e)(2)(B), except that calendar year 2010
shall be
substituted for calendar year
1992
.
.
Credit made part of general business credit
Section 38(b) of the Internal Revenue Code of 1986 is amended—
by striking plus
at the end
of paragraph (34),
by striking the period at the end of
paragraph (35) and inserting , plus
, and
by adding at the end the following new paragraph:
the deep water offshore wind production credit determined under section 45R(a).
.
Coordination with other benefits
Section 45 production credit
Section 45(e) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
Coordination with deep water offshore wind credit
No credit shall be allowed under subsection (a) with respect to any qualified facility described in subsection (d)(1) if a credit has been allowed to such facility under section 45J for such taxable year or any prior taxable year.
.
Investment credit
Subsections (B) and (C) of section
48(d)(5)(B) of such Code are each amended by inserting or section
45R
after section 45
.
Grants
Section 48(d)(1) of such Code is amended by
striking or section 45
and inserting , section 45, or
section 45R
.
Clerical amendment
The table of sections for subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following:
.
Option To elect investment credit in lieu of production credit
Section
48(a)(5)(C)(i) of the Internal Revenue Code of 1986 is amended by inserting
, or any deep water offshore wind facility (within the meaning of
section 45R) if such facility is placed in service before 2030
before
the period at the end.
Effective date
The amendments made by this section shall apply to facilities placed in service after the date of the enactment of this Act.