II

106TH CONGRESS

1ST SESSION S. 1411

To amend the Internal Revenue Code of 1986 to extend the credit for

producing electricity from certain renewable resources.

IN THE SENATE OF THE UNITED STATES

JULY 21, 1999

Mr. STEVENS 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 extend

the credit for producing electricity from certain renewable resources.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Fish Oil Heat Act of

5 1999’’.

6 SEC. 2. EXTENSION OF CREDIT FOR PRODUCING HEAT

7 FROM CERTAIN RESOURCES.

8 (a) CREDIT FOR PRODUCING HEAT FROM FISH

9 OIL.—Section 45(c)(1) of the Internal Revenue Code of

10 1986 (defining qualified energy resources) is amended by
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1 striking ‘‘and’’ at the end of subparagraph (A), by striking

2 the period at the end of subparagraph (B) and inserting

3 ‘‘, and’’, and by adding at the end the following:

4 ‘‘(C) fish oil.’’.

5 (b) DETERMINATION OF CREDIT FOR FISH OIL.—

6 Section 45(a) of the Internal Revenue Code of 1986 is

7 amended to read as follows:

8 ‘‘(a) GENERAL RULE.—For purposes of section 38,

9 the renewable energy production credit for any taxable

10 year is an amount equal to the sum of—

11 ‘‘(1) the product of—

12 ‘‘(A) 1.5 cents, multiplied by—

13 ‘‘(B) the kilowatt hours of electricity—

14 ‘‘(i) produced by the taxpayer—

15 ‘‘(I) from qualified energy re16 sources; and

17 ‘‘(II) at a qualified facility during

18 the 10 year period beginning on the

19 date the facility was originally placed

20 in service; and

21 ‘‘(ii) sold by the taxpayer to an unre22 lated person during the taxable year; and

23 ‘‘(2) the product of—

24 ‘‘(A) .0004967 cents, multiplied by—
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1 ‘‘(B) the Btus of heat generated and used

2 by the taxpayer—

3 ‘‘(i) from qualified energy resources

4 described in subsection (c)(1)(C); and

5 ‘‘(ii) at a qualified facility (including a

6 fishing boat used in the fishing operation

7 of the taxpayer).’’.

8 (c) INFLATION ADJUSTMENT.—Section 45(b)(2) of

9 the Internal Revenue Code of 1986 (relating to credit and

10 phaseout adjustment based on inflation) is amended to

11 read as follows:

12 ‘‘(2) CREDIT AND PHASEOUT ADJUSTMENT

13 BASED ON INFLATION.—

14 ‘‘(A) IN GENERAL.—The amounts in sub15 section (a) and the 8 cent amount in paragraph

16 (1) shall each be adjusted by multiplying such

17 amount by the inflation factor for the calendar

18 year in which the sale occurs or in which the

19 heat is generated.

20 ‘‘(B) ROUNDING.—If any amount as in21 creased under subparagraph (A)—

22 ‘‘(i) in the case of an amount in sub23 section (a)(1) or paragraph (1), is not a

24 multiple of 0.1 cent, such amount shall be
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1 rounded to the nearest multiple of 0.1

2 cent; and

3 ‘‘(ii) in the case of an amount in sub4 section (a)(2), is not a multiple of .0005

5 cent, such amount shall be rounded to the

6 nearest multiple of 0.0005 cent.’’.

7 (d) DEFINITION OF FISH OIL.—Section 45(c) of the

8 Internal Revenue Code of 1986 (relating to definitions)

9 is amended by adding at the end the following:

10 ‘‘(4) FISH OIL.—The term ‘fish oil’ means fish

11 oil as used as an energy source by a taxpayer in con12 nection with the fishing operation of the taxpayer.’’.

13 (e) CONFORMING AMENDMENTS.—

14 (1) Section 38(b)(8) and section 39(d)(3) of the

15 Internal Revenue Code of 1986 are each amended by

16 striking ‘‘electricity’’ each place it appears and in17 serting ‘‘energy’’.

18 (2) The table of contents for subpart D of part

19 IV of subchapter A of chapter 1 of such Code is

20 amended by striking the item relating to section 45

21 and inserting the following:

‘‘Sec. 45. Energy produced from certain renewable resources.’’

22 (3) The heading of section 45 of such Code is

23 amended by striking ‘‘ELECTRICITY’’ and inserting

24 ‘‘ENERGY’’.
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1 (4) Paragraphs (1) and (2) of section 45(b) of

2 such Code are amended by striking ‘‘subsection (a)’’

3 and inserting ‘‘subsection (a)(1)’’ each place it ap4 pears.

5 (f) EXTENSION OF PLACED IN SERVICE DATE.—Sec6 tion 45(c)(3) of the Internal Revenue Code of 1986 (defin7 ing qualified facility) is amended by striking ‘‘1999’’ and

8 inserting ‘‘2005’’.

9 (g) EFFECTIVE DATE.—The amendments made by

10 this section shall apply to facilities placed in service after

11 the date of the enactment of this Act.

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