A bill to amend the Internal Revenue Code of 1986 to provide a consumer renewable credit for a utility that sells renewable power, and for other purposes.

Summary: Amends the Internal Revenue Code to allow, through December 31, 2018: (1) a new business-related tax credit for sales by an electric utility of renewable electricity generated by a facility using wind or solar energy to a retail customer; and (2) payments to such utilities, in lieu of such tax credit, for sales of renewable electricity to retail customers. Delays, until 2023, the application of rules relating to the allocation and apportionment of the interest expense of domestic corporations that are members of a worldwide affiliated group.

SECTION 1. CONSUMER RENEWABLE CREDIT.

    (a) Business Credit.--
            (1) 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:

``SEC. 45S. CONSUMER RENEWABLE CREDIT.

    ``(a) General Rule.--For purposes of section 38, in the case of an 
eligible taxpayer, the consumer renewable credit for any taxable year 
is an amount equal to the product of--
            ``(1) the renewable portfolio factor of such eligible 
        taxpayer, and
            ``(2) subject to subsection (e), the number of kilowatt 
        hours of renewable electricity--
                    ``(A) purchased or produced by such taxpayer, and
                    ``(B) sold by such taxpayer to a retail customer 
                during the taxable year.
    ``(b) Renewable Portfolio Factor.--In the case of taxable years 
beginning before January 1, 2019, the renewable portfolio factor for an 
eligible taxpayer shall be determined as follows:


------------------------------------------------------------------------
                                                          Renewable
       ``Renewable electricity   percentage:          portfolio factor:
------------------------------------------------------------------------
Less than 6 percent................................           zero cents
At least 6 percent but less than 8 percent.........            0.1 cents
At least 8 percent but less than 12 percent........            0.2 cents
At least 12 percent but less than 16 percent.......            0.3 cents
At least 16 percent but less than 20 percent.......            0.4 cents
At least 20 percent but less than 24 percent.......            0.5 cents
Equal to or greater than 24 percent................           0.6 cents.
------------------------------------------------------------------------

    ``(c) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Eligible taxpayer.--The term `eligible taxpayer' 
        means an electric utility, as defined in section 3(22) of the 
        Federal Power Act (16 U.S.C. 796(22)).
            ``(2) Renewable electricity.--The term `renewable 
        electricity' means electricity generated by any facility using 
        wind or solar energy to generate such electricity.
            ``(3) Renewable electricity percentage.--The term 
        `renewable electricity percentage' means the percentage of an 
        eligible taxpayer's total sales of electricity to retail 
        customers which is derived from renewable electricity 
        (determined without regard to whether such electricity was 
        produced by the taxpayer).
            ``(4) Application of other rules.--For purposes of this 
        section, rules similar to the rules of paragraphs (1), (3), and 
        (5) of section 45(e) shall apply.
            ``(5) Credit allowed only with respect to one eligible 
        entity.--No credit shall be allowed under subsection (a) with 
        respect to renewable electricity purchased from another 
        eligible entity if a credit has been allowed under this section 
        to such other eligible entity.
    ``(d) Coordination With Payments.--The amount of the credit 
determined under this section with respect to any electricity shall be 
reduced to take into account any payment provided with respect to such 
electricity solely by reason of the application of section 6433.
    ``(e) Renewable Electricity Enhancement.--
            ``(1) Native american wind and solar.--In the case of 
        renewable electricity generated by a wind or solar energy 
        facility which is located on an Indian reservation (as defined 
        in section 168(j)(6)), the number of kilowatt hours of such 
        renewable electricity shall, for purposes of subsection (a)(2), 
        be equal to 200 percent of the kilowatt hours of such renewable 
        electricity actually purchased or produced and sold during the 
        taxable year.
            ``(2) Electric cooperative wind and solar.--In the case of 
        renewable electricity generated by a wind or solar energy 
        facility which is wholly owned by a mutual or cooperative 
        electric company (as described in section 501(c)(12) or 
        1381(a)(2)(C)), the number of kilowatt hours of such renewable 
        electricity shall, for purposes of subsection (a)(2), be equal 
        to 150 percent of the kilowatt hours of such renewable 
        electricity actually purchased or produced and sold during the 
        taxable year.''.
            (2) Credit made part of general business credit.--
        Subsection (b) of section 38 of the Internal Revenue Code of 
        1986 is amended by striking ``plus'' at the end of paragraph 
        (35), by striking the period at the end of paragraph (36) and 
        inserting ``, plus'', and by adding at the end the following 
        new paragraph:
            ``(37) the consumer renewable credit determined under 
        section 45S(a).''.
            (3) Specified credit.--Subparagraph (B) of section 38(c)(4) 
        of the Internal Revenue Code of 1986 is amended by 
        redesignating clauses (vii) through (ix) as clauses (viii) 
        through (x), respectively, and by inserting after clause (v) 
        the following new clause:
                            ``(vi) the credit determined under section 
                        45S.''.
            (4) 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 new item:

``Sec. 45S. Consumer renewable credit.''.
    (b) Payments in Lieu of Credit.--
            (1) In general.--Subchapter B of chapter 65 of the Internal 
        Revenue Code of 1986 is amended by adding at the end the 
        following new section:

``SEC. 6433. CONSUMER RENEWABLE CREDIT PAYMENTS.

    ``(a) In General.--If any eligible person sells renewable 
electricity to a retail customer, the Secretary shall pay (without 
interest) to any such person who elects to receive a payment an amount 
equal to the product of--
            ``(1) the intermittent renewable portfolio factor of such 
        eligible person, and
            ``(2) the number of kilowatt hours of renewable 
        electricity--
                    ``(A) purchased or produced by such person, and
                    ``(B) sold by such person in the trade or business 
                of such person to a retail customer.
    ``(b) Timing of Payments.--
            ``(1) In general.--Except as provided in paragraph (2), 
        rules similar to the rules of section 6427(i)(1) shall apply 
        for purposes of this section.
            ``(2) Quarterly payments.--
                    ``(A) In general.--If, at the close of any quarter 
                of the taxable year of any person (or, in the case of 
                an eligible person that does not have a taxable year, 
                the close of any quarter of the fiscal year), at least 
                $750 is payable in the aggregate under subsection (a), 
                to such person with respect to electricity purchased or 
                produced during--
                            ``(i) such quarter, or
                            ``(ii) any prior quarter (for which no 
                        other claim has been filed) during such year,
                a claim may be filed under this section with respect to 
                such electricity.
                    ``(B) Time for filing claim.--No claim filed under 
                this paragraph shall be allowed unless filed on or 
                before the last day of the first quarter following the 
                earliest quarter included in the claim.
    ``(c) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Eligible person.--The term `eligible person' means--
                    ``(A) an electric utility, as defined in section 
                3(22) of the Federal Power Act (16 U.S.C. 796(22)), or
                    ``(B) a Federal power marketing agency, as defined 
                in section 3(19) of such Act (16 U.S.C. 796(19)).
            ``(2) Other definitions.--Any term used in this section 
        which is also used in section 45S shall have the meaning given 
        such term under section 45S.
            ``(3) Application of other rules.--For purposes of this 
        section, rules similar to the rules of paragraphs (1) and (3) 
        of section 45(e) shall apply.
    ``(d) Payment Disallowed Unless Amount Passed to Third-Party 
Generators Charged for Integration Costs.--
            ``(1) In general.--In the case of renewable electricity 
        eligible for the payment under subsection (a) that is purchased 
        and not produced by an eligible person, no payment shall be 
        made under this section unless any charge the eligible person 
        has assessed the seller to recover the integration costs 
        associated with such electricity has been reduced (but not 
        below zero) to the extent of the payment received under 
        subsection (a) associated with such electricity.
            ``(2) Definitions.--For purposes of paragraph (1), charges 
        intended to recover integration costs do not include amounts 
        paid by the producer of the electricity for interconnection 
        facilities, distribution upgrades, network upgrades, or stand 
        alone network upgrades as those terms have been defined by the 
        Federal Energy Regulatory Commission in its Standard 
        Interconnection Procedures.
    ``(e) Payment Allowed for Special Generating and Transmitting 
Entities.--
            ``(1) In general.--Notwithstanding subsection (a)(2), a 
        special generating and transmitting entity shall be eligible 
        for payment under subsection (a) based on the number of 
        kilowatt hours of renewable electricity transmitted, regardless 
        of whether such entity purchased or sold such electricity to 
        retail customers.
            ``(2) Definition.--For purposes of this subsection, the 
        term `special generating and transmitting entity' means--
                    ``(A) an entity which is--
                            ``(i) primarily engaged in marketing 
                        electricity,
                            ``(ii) provides transmissions services for 
                        greater than 4,000 megawatts of renewable 
                        electricity generating facilities, as 
                        determined by reference to the machine or 
                        nameplate capacity thereof, and
                            ``(iii) transmits the majority of such 
                        renewable electricity to customers located 
                        outside of the region that it serves, or
                    ``(B) a generation and transmission cooperative 
                which engages primarily in providing wholesale electric 
                services to its members (generally consisting of 
                distribution cooperatives).''.
            (2) Clerical amendment.--The table of sections for subpart 
        B of chapter 65 of the Internal Revenue Code of 1986 is amended 
        by adding at the end the following new item:

``Sec. 6433. Consumer renewable credit payments.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to electricity produced or purchased and sold after December 31, 
2013, and before January 1, 2019.

SEC. 2. DELAY IN APPLICATION OF WORLDWIDE INTEREST.

    (a) In General.--Paragraphs (5)(D) and (6) of section 864(f) of the 
Internal Revenue Code of 1986 are each amended by striking ``December 
31, 2020'' and inserting ``December 31, 2022''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.