I 

114TH CONGRESS 

1ST SESSION H. R. 4040 

To amend the Internal Revenue Code of 1986 to modify and extend certain 

tax incentives relating to energy. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 17, 2015 

Mr. BLUMENAUER (for himself, Ms. EDWARDS, Mr. MCDERMOTT, Mr. PASCRELL, Mr. HONDA, Mr. VAN HOLLEN, Ms. MCCOLLUM, Mr. 

LOWENTHAL, Mr. TED LIEU of California, Mr. HIGGINS, Mr. NEAL, Ms. 

LINDA T. SA ́NCHEZ of California, Ms. LEE, Mr. QUIGLEY, Mr. CARTWRIGHT, Ms. NORTON, Mr. RANGEL, Mr. HUFFMAN, and Mr. GRIJALVA) 

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 modify 

and extend certain tax incentives relating to energy. 

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, ETC. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Bridge to a Clean Energy Future Act of 2015’’. 

6 (b) AMENDMENT OF 1986 CODE.—Except as other7 wise expressly provided, whenever in this Act an amend8 ment or repeal is expressed in terms of an amendment 

mstockstill on DSK4VPTVN1PROD with BILLS

2 

•HR 4040 IH

1 to, or repeal of, a section or other provision, the reference 

2 shall be considered to be made to a section or other provi3 sion of the Internal Revenue Code of 1986. 

4 (c) TABLE OF CONTENTS.—The table of contents for 

5 this Act is as follows: 

Sec. 1. Short title, etc. 

TITLE I—EXTENSION AND MODIFICATION OF ENERGY TAX 

PROVISIONS 

Sec. 101. Extension and modification of credit for nonbusiness energy property. 

Sec. 102. Extension of credit for new qualified fuel cell motor vehicles. 

Sec. 103. Extension of credit for alternative fuel vehicle refueling property. 

Sec. 104. Extension of second generation biofuel producer credit. 

Sec. 105. Extension and reform of biodiesel tax incentives. 

Sec. 106. Extension of credits with respect to facilities producing energy from 

certain renewable resources. 

Sec. 107. Extension of credit for energy-efficient new homes. 

Sec. 108. Extension of special allowance for second generation biofuel plant 

property. 

Sec. 109. Extension and modification of energy efficient commercial buildings 

deduction. 

Sec. 110. Extension of special rule for sales or dispositions to implement FERC 

or State electric restructuring policy for qualified electric utilities. 

Sec. 111. Extension of excise tax credits relating to alternative fuels. 

TITLE II—ADDITIONAL PROVISIONS 

Sec. 201. Extension of energy credit for certain property under construction. 

Sec. 202. Modifications in credit for combined heat and power system property. 

Sec. 203. Energy credit for waste heat to power property. 

Sec. 204. Investment tax credit for community wind projects having generation 

capacity of not more than 20 megawatts. 

Sec. 205. Extension of publicly traded partnership ownership structure to energy power generation projects, transportation fuels, and related energy activities. 

Sec. 206. Additional advanced energy manufacturing credit allocations. 

TITLE III—ENDING OIL AND GAS TAX SUBSIDIES 

Sec. 301. Amortization of geological and geophysical expenditures. 

Sec. 302. Producing oil and gas from marginal wells. 

Sec. 303. Enhanced oil recovery credit. 

Sec. 304. Intangible drilling and development costs in the case of oil and gas 

wells. 

Sec. 305. Repeal of percentage depletion for oil and gas wells. 

Sec. 306. Repeal of deduction for tertiary injectants. 

Sec. 307. Repeal of exception to passive loss limitations for working interests 

in oil and gas properties. 

mstockstill on DSK4VPTVN1PROD with BILLS

3 

•HR 4040 IH

Sec. 308. Deduction for income attributable to domestic production activities 

not allowed with respect to oil and gas activities. 

Sec. 309. Prohibition on using last-in, first-out accounting for oil and gas companies. 

Sec. 310. Modifications of foreign tax credit rules applicable to dual capacity 

taxpayers. 

1 TITLE I—EXTENSION AND MODI2 FICATION OF ENERGY TAX 

3 PROVISIONS 

4 SEC. 101. EXTENSION AND MODIFICATION OF CREDIT FOR 

5 NONBUSINESS ENERGY PROPERTY. 

6 (a) IN GENERAL.—Paragraph (2) of section 25C(g) 

7 is amended by striking ‘‘December 31, 2014’’ and insert8 ing ‘‘December 31, 2016’’. 

9 (b) UPDATED ENERGY STAR REQUIREMENTS FOR

10 WINDOWS, DOORS, SKYLIGHTS, AND ROOFING.— 

11 (1) IN GENERAL.—Paragraph (1) of section 

12 25C(c) is amended by striking ‘‘which meets’’ and 

13 all that follows through ‘‘requirements)’’. 

14 (2) ENERGY EFFICIENT BUILDING ENVELOPE

15 COMPONENT.—Subsection (c) of section 25C is 

16 amended by redesignating paragraphs (2) and (3) as 

17 paragraphs (3) and (4), respectively, and by insert18 ing after paragraph (1) the following new para19 graph: 

20 ‘‘(2) ENERGY EFFICIENT BUILDING ENVELOPE

21 COMPONENT.—The term ‘energy efficient building 

mstockstill on DSK4VPTVN1PROD with BILLS

4 

•HR 4040 IH

1 envelope component’ means a building envelope com2 ponent which meets— 

3 ‘‘(A) applicable Energy Star program re4 quirements, in the case of a roof or roof prod5 ucts, 

6 ‘‘(B) version 6.0 Energy Star program re7 quirements, in the case of an exterior window, 

8 a skylight, or an exterior door, and 

9 ‘‘(C) the prescriptive criteria for such com10 ponent established by the 2009 International 

11 Energy Conservation Code, as such Code (in12 cluding supplements) is in effect on the date of 

13 the enactment of the American Recovery and 

14 Reinvestment Tax Act of 2009, in the case of 

15 any other component.’’. 

16 (3) CONFORMING AMENDMENT.—Subparagraph 

17 (D) of section 25C(c)(3), as so redesignated, is 

18 amended to read as follows: 

19 ‘‘(D) any roof or roof products which are 

20 installed on a dwelling unit and are specifically 

21 and primarily designed to reduce the heat gain 

22 of such dwelling unit.’’. 

23 (c) SEPARATE STANDARDS FOR TANKLESS AND

24 STORAGE WATER HEATERS.— 

mstockstill on DSK4VPTVN1PROD with BILLS

5 

•HR 4040 IH

1 (1) IN GENERAL.—Subparagraph (D) of section 

2 25C(d)(3) is amended by striking ‘‘which has either’’ 

3 and all that follows and inserting ‘‘which has ei4 ther— 

5 ‘‘(i) in the case of a storage water 

6 heater, an energy factor of at least 0.80 or 

7 a thermal efficiency of at least 90 percent, 

8 and 

9 ‘‘(ii) in the case of any other water 

10 heater, an energy factor of at least 0.90 or 

11 a thermal efficiency of at least 90 percent, 

12 and’’. 

13 (2) STORAGE WATER HEATERS.—Paragraph (3) 

14 of section 25C(d) is amended by adding at the end 

15 the following flush sentence: 

16 ‘‘For purposes of subparagraph (D)(i), the term 

17 ‘storage water heater’ means a water heater that has 

18 a water storage capacity of more than 20 gallons but 

19 not more than 55 gallons.’’. 

20 (d) MODIFICATION OF TESTING STANDARDS FOR

21 BIOMASS STOVES.—Subparagraph (E) of section 

22 25C(d)(3) is amended by inserting before the period the 

23 following: ‘‘, when tested using the higher heating value 

24 of the fuel and in accordance with the Canadian Standards 

25 Administration B415.1 test protocol’’. 

mstockstill on DSK4VPTVN1PROD with BILLS

6 

•HR 4040 IH

1 (e) SEPARATE STANDARD FOR OIL HOT WATER

2 BOILERS.—Paragraph (4) of section 25C(d) is amended 

3 by striking ‘‘95’’ and inserting ‘‘95 (90 in the case of an 

4 oil hot water boiler)’’. 

5 (f) INSTALLATION COSTS FOR QUALIFIED ENERGY

6 EFFICIENCY IMPROVEMENTS.—Paragraph (1) of sub7 section (c) of section 25C is amended by adding at the 

8 end the following flush sentence: 

9 ‘‘Such term includes expenditures for labor costs 

10 properly allocable to the onsite preparation, assem11 bly, or original installation of the component.’’. 

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

13 this section shall apply to property placed in service after 

14 December 31, 2014. 

15 SEC. 102. EXTENSION OF CREDIT FOR NEW QUALIFIED 

16 FUEL CELL MOTOR VEHICLES. 

17 (a) IN GENERAL.—Paragraph (1) of section 30B(k) 

18 is amended by striking ‘‘December 31, 2014’’ and insert19 ing ‘‘December 31, 2016’’. 

20 (b) EFFECTIVE DATE.—The amendment made by 

21 this section shall apply to property purchased after De22 cember 31, 2014. 

mstockstill on DSK4VPTVN1PROD with BILLS

7 

•HR 4040 IH

1 SEC. 103. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL 

2 VEHICLE REFUELING PROPERTY. 

3 (a) IN GENERAL.—Subsection (g) of section 30C is 

4 amended by striking ‘‘December 31, 2014’’ and inserting 

5 ‘‘December 31, 2016’’. 

6 (b) EFFECTIVE DATE.—The amendment made by 

7 this section shall apply to property placed in service after 

8 December 31, 2014. 

9 SEC. 104. EXTENSION OF SECOND GENERATION BIOFUEL 

10 PRODUCER CREDIT. 

11 (a) IN GENERAL.—Clause (i) of section 40(b)(6)(J) 

12 is amended by striking ‘‘January 1, 2015’’ and inserting 

13 ‘‘January 1, 2017’’. 

14 (b) EFFECTIVE DATE.—The amendment made by 

15 this subsection shall apply to qualified second generation 

16 biofuel production after December 31, 2014. 

17 SEC. 105. EXTENSION AND REFORM OF BIODIESEL TAX IN18 CENTIVES. 

19 (a) INCOME TAX CREDIT.— 

20 (1) EXTENSION.— 

21 (A) CREDITS FOR BIODIESEL AND RENEW22 ABLE DIESEL USED AS FUEL.—Subsection (g) 

23 of section 40A is amended by striking ‘‘Decem24 ber 31, 2014’’ and inserting ‘‘December 31, 

25 2016’’. 

mstockstill on DSK4VPTVN1PROD with BILLS

8 

•HR 4040 IH

1 (B) EFFECTIVE DATE.—The amendment 

2 made by this paragraph shall apply to fuel sold 

3 or used after December 31, 2014. 

4 (2) REFORM OF INCOME TAX CREDIT.— 

5 (A) IN GENERAL.—So much of section 

6 40A as precedes subsection (c) is amended to 

7 read as follows: 

8 ‘‘SEC. 40A. BIODIESEL FUELS CREDIT. 

9 ‘‘(a) IN GENERAL.—For purposes of section 38, in 

10 the case of an eligible taxpayer, the biodiesel fuels credit 

11 determined under this section for the taxable year is $1.00 

12 for each gallon of biodiesel produced by the taxpayer which 

13 during the taxable year— 

14 ‘‘(1) is sold by the producer of such biodiesel to 

15 another person— 

16 ‘‘(A) for use by such other person’s trade 

17 or business as a fuel or in the production of a 

18 biodiesel mixture (other than casual off-farm 

19 production), or 

20 ‘‘(B) who sells such biodiesel at retail to 

21 another person and places such biodiesel in the 

22 fuel tank of such other person, or 

23 ‘‘(2) is used by such producer for any purpose 

24 described in paragraph (1). 

25 ‘‘(b) INCREASED CREDIT FOR SMALL PRODUCERS.— 

mstockstill on DSK4VPTVN1PROD with BILLS

9 

•HR 4040 IH

1 ‘‘(1) IN GENERAL.—In the case of any eligible 

2 small biodiesel producer, subsection (a) shall be ap3 plied by increasing the dollar amount contained 

4 therein by 10 cents. 

5 ‘‘(2) LIMITATION.—Paragraph (1) shall only 

6 apply with respect to the first 15,000,000 gallons of 

7 biodiesel produced by any eligible small biodiesel 

8 producer during any taxable year.’’. 

9 (B) DEFINITIONS AND SPECIAL RULES.— 

10 Section 40A(d) is amended by striking all that 

11 follows paragraph (1) and inserting the fol12 lowing: 

13 ‘‘(2) ELIGIBLE TAXPAYER.— 

14 ‘‘(A) IN GENERAL.—The term ‘eligible tax15 payer’ means, with respect to any gallon of bio16 diesel, the producer of such gallon if such pro17 ducer has paid the tax imposed by section 4081 

18 on such biodiesel. 

19 ‘‘(B) SPECIAL RULE FOR ELIGIBLE DIS20 CRETIONARY BLENDERS.—For purposes of this 

21 section (other than subsection (b)), an eligible 

22 discretionary blender shall be treated as the 

23 producer of any gallon of biodiesel which is 

24 used to make a qualified biodiesel mixture if— 

mstockstill on DSK4VPTVN1PROD with BILLS

10 

•HR 4040 IH

1 ‘‘(i) the producer of such biodiesel 

2 (determined without regard to this sub3 paragraph)— 

4 ‘‘(I) did not pay the tax imposed 

5 under section 4081 with respect to 

6 such gallon, and 

7 ‘‘(II) assigns the credit allowed 

8 under this section to the eligible dis9 cretionary blender in such form and 

10 manner as provided by the Secretary, 

11 and 

12 ‘‘(ii) such eligible discretionary blend13 er pays the tax imposed under section 

14 4081 with respect to such gallon. 

15 For purposes of the preceding sentence, an eli16 gible discretionary blender shall be treated as 

17 producing a gallon of biodiesel in the taxable 

18 year in which the sale or use of the qualified 

19 biodiesel mixture occurs. 

20 ‘‘(C) ELIGIBLE DISCRETIONARY BLEND21 ER.—For purposes of subparagraph (B), the 

22 term ‘eligible discretionary blender’ means any 

23 person who— 

mstockstill on DSK4VPTVN1PROD with BILLS

11 

•HR 4040 IH

1 ‘‘(i) is registered under section 4101 

2 as a blender of qualified biodiesel mixtures, 

3 and 

4 ‘‘(ii) has used 10,000,000 or more 

5 gallons of biodiesel in the production of 

6 qualified biodiesel mixtures in the pre7 ceding taxable year. 

8 ‘‘(3) BIODIESEL MIXTURE; QUALIFIED BIO9 DIESEL MIXTURE.— 

10 ‘‘(A) BIODIESEL MIXTURE.—The term 

11 ‘biodiesel mixture’ means a mixture which con12 sists of biodiesel and diesel fuel (as defined in 

13 section 4083(a)(3)), determined without regard 

14 to any use of kerosene. 

15 ‘‘(B) QUALIFIED BIODIESEL MIXTURE.— 

16 ‘‘(i) IN GENERAL.—The term ‘quali17 fied biodiesel mixture’ means a biodiesel 

18 mixture which is produced by an eligible 

19 discretionary blender and— 

20 ‘‘(I) sold by such eligible discre21 tionary blender to any person for use 

22 as a fuel, or 

23 ‘‘(II) used by such eligible discre24 tionary blender as a fuel. 

mstockstill on DSK4VPTVN1PROD with BILLS

12 

•HR 4040 IH

1 ‘‘(ii) SALE OR USE MUST BE IN

2 TRADE OR BUSINESS, ETC.—A biodiesel 

3 mixture shall not be treated as a qualified 

4 biodiesel mixture unless the sale or use de5 scribed in clause (i) is in a trade or busi6 ness of the eligible discretionary blender. 

7 ‘‘(4) BIODIESEL NOT USED FOR A QUALIFIED

8 PURPOSE.—If— 

9 ‘‘(A) any credit was determined with re10 spect to any biodiesel under this section, and 

11 ‘‘(B) any person uses such biodiesel for a 

12 purpose not described in subsection (a), 

13 then there is hereby imposed on such person a tax 

14 equal to the product of the rate applicable under 

15 subsection (a) and the number of gallons of such 

16 biodiesel. 

17 ‘‘(5) PASS-THRU IN THE CASE OF ESTATES AND

18 TRUSTS.—Under regulations prescribed by the Sec19 retary, rules similar to the rules of subsection (d) of 

20 section 52 shall apply. 

21 ‘‘(6) LIMITATION TO BIODIESEL WITH CONNEC22 TION TO THE UNITED STATES.—No credit shall be 

23 determined under subsection (a) with respect to bio24 diesel unless such biodiesel is produced in the United 

25 States. For purposes of this paragraph, the term 

mstockstill on DSK4VPTVN1PROD with BILLS

13 

•HR 4040 IH

1 ‘United States’ includes any possession of the 

2 United States.’’. 

3 (C) RULES FOR SMALL BIODIESEL PRO4 DUCERS.— 

5 (i) IN GENERAL.—Section 40A(e) is 

6 amended— 

7 (I) by striking ‘‘agri-biodiesel’’ 

8 each place it appears in paragraphs 

9 (1) and (5)(A) and inserting ‘‘bio10 diesel’’, 

11 (II) by striking ‘‘subsection 

12 (b)(4)(C)’’ each place it appears in 

13 paragraphs (2) and (3) and inserting 

14 ‘‘subsection (b)(2)’’, and 

15 (III) by striking ‘‘subsection 

16 (a)(3)’’ each place it appears in para17 graphs (5)(A), (6)(A)(i), and (6)(B)(i) 

18 and inserting ‘‘subsection (b)’’. 

19 (ii) The heading for subsection (e) of 

20 section 40A is amended by striking ‘‘AGRI21 BIODIESEL’’ and inserting ‘‘BIODIESEL’’. 

22 (iii) The headings for paragraphs (1) 

23 and (6) of section 40A(e) are each amend24 ed by striking ‘‘AGRI-BIODIESEL’’ and in25 serting ‘‘BIODIESEL’’. 

mstockstill on DSK4VPTVN1PROD with BILLS

14 

•HR 4040 IH

1 (D) CONFORMING AMENDMENTS RELATED

2 TO RENEWABLE DIESEL.—Section 40A(f) is 

3 amended— 

4 (i) by striking ‘‘Subsection (b)(4)’’ 

5 and inserting ‘‘Subsection (b)’’, and 

6 (ii) by striking paragraph (4) and in7 serting the following: 

8 ‘‘(4) CERTAIN AVIATION FUEL.—Except as pro9 vided in the last 3 sentences of paragraph (3), the 

10 term ‘renewable diesel’ shall include fuel derived 

11 from biomass which meets the requirements of a De12 partment of Defense specification for military jet 

13 fuel or an American Society for Testing and Mate14 rials specification for aviation turbine fuel.’’. 

15 (E) REGISTRATION OF ELIGIBLE DISCRE16 TIONARY BLENDERS.—Section 4101(a)(1) is 

17 amended— 

18 (i) by striking ‘‘and’’ before ‘‘every 

19 person producing second generation 

20 biofuel’’, and 

21 (ii) by inserting ‘‘, and every person 

22 producing qualified biodiesel mixtures (as 

23 defined in section 40A(d)(3)) 10,000,000 

24 or more gallons per year’’ after ‘‘section 

25 40(b)(6)(E))’’. 

mstockstill on DSK4VPTVN1PROD with BILLS

15 

•HR 4040 IH

1 (F) CLERICAL AMENDMENT.—The table of 

2 sections for subpart D of part IV of subchapter 

3 A of chapter 1 is amended by striking the item 

4 relating to section 40A and inserting the fol5 lowing new item: 

‘‘Sec. 40A. Biodiesel fuels credit.’’. 

6 (G) EFFECTIVE DATE.—The amendments 

7 made by this paragraph shall apply to fuel sold 

8 or used after December 31, 2015. 

9 (b) EXCISE TAX INCENTIVES.— 

10 (1) EXTENSION.— 

11 (A) IN GENERAL.—Paragraph (6) of sec12 tion 6426(c) is amended by striking ‘‘December 

13 31, 2014’’ and inserting ‘‘December 31, 2016’’. 

14 (B) PAYMENTS.—Subparagraph (B) of 

15 section 6427(e)(6) is amended by striking ‘‘De16 cember 31, 2014’’ and inserting ‘‘December 31, 

17 2016’’. 

18 (C) EFFECTIVE DATE.—The amendments 

19 made by this paragraph shall apply to fuel sold 

20 or used after December 31, 2014. 

21 (D) SPECIAL RULE FOR CERTAIN PERIODS

22 DURING 2015.—Notwithstanding any other pro23 vision of law, in the case of any biodiesel mix24 ture credit properly determined under section 

25 6426(c) of the Internal Revenue Code of 1986 

mstockstill on DSK4VPTVN1PROD with BILLS

16 

•HR 4040 IH

1 for periods after December 31, 2014, and on or 

2 before the last day of the first calendar quarter 

3 ending after the date of the enactment of this 

4 Act, such credit shall be allowed, and any re5 fund or payment attributable to such credit (in6 cluding any payment under section 6427(e) of 

7 such Code) shall be made, only in such manner 

8 as the Secretary of the Treasury (or the Sec9 retary’s delegate) shall provide. Such Secretary 

10 shall issue guidance within 30 days after the 

11 date of the enactment of this Act providing for 

12 a one-time submission of claims covering peri13 ods described in the preceding sentence. Such 

14 guidance shall provide for a 180-day period for 

15 the submission of such claims (in such manner 

16 as prescribed by such Secretary) to begin not 

17 later than 30 days after such guidance is 

18 issued. Such claims shall be paid by such Sec19 retary not later than 60 days after receipt. If 

20 such Secretary has not paid pursuant to a claim 

21 filed under this subsection within 60 days after 

22 the date of the filing of such claim, the claim 

23 shall be paid with interest from such date de24 termined by using the overpayment rate and 

25 method under section 6621 of such Code. 

mstockstill on DSK4VPTVN1PROD with BILLS

17 

•HR 4040 IH

1 (2) REFORM OF EXCISE TAX CREDIT.— 

2 (A) IN GENERAL.—Subsection (c) of sec3 tion 6426 is amended— 

4 (i) by striking all that precedes para5 graph (6) and inserting the following: 

6 ‘‘(c) BIODIESEL PRODUCTION CREDIT.— 

7 ‘‘(1) IN GENERAL.—For purposes of this sec8 tion, in the case of an eligible taxpayer, the biodiesel 

9 production credit is $1.00 for each gallon of bio10 diesel produced by the taxpayer and which— 

11 ‘‘(A) is sold by such producer to another 

12 person— 

13 ‘‘(i) for use by such other person’s 

14 trade or business as a fuel or in the pro15 duction of a biodiesel mixture (other than 

16 casual off-farm production), or 

17 ‘‘(ii) who sells such biodiesel at retail 

18 to another person and places such biodiesel 

19 in the fuel tank of such other person, or 

20 ‘‘(B) is used by such producer for any pur21 pose described in subparagraph (A). 

22 ‘‘(2) SPECIAL RULE FOR ELIGIBLE DISCRE23 TIONARY BLENDERS.—For purposes of this sub24 section and section 6427(e)(3), an eligible discre25 tionary blender shall be treated as the producer of 

mstockstill on DSK4VPTVN1PROD with BILLS

18 

•HR 4040 IH

1 any gallon of biodiesel which is used to make a 

2 qualified biodiesel mixture if— 

3 ‘‘(A) the producer of such biodiesel (deter4 mined without regard to this subparagraph)— 

5 ‘‘(i) did not pay the tax imposed 

6 under section 4081 with respect to such 

7 gallon, and 

8 ‘‘(ii) assigns the credit allowed under 

9 this section to the eligible discretionary 

10 blender in such form and manner as pro11 vided by the Secretary, and 

12 ‘‘(B) such eligible discretionary blender 

13 pays the tax imposed under section 4081 with 

14 respect to such gallon. 

15 For purposes of the preceding sentence, an eligible 

16 discretionary blender shall not be treated as pro17 ducing a gallon of biodiesel before the date on which 

18 the sale or use of the qualified biodiesel mixture oc19 curs. 

20 ‘‘(3) DEFINITIONS.—Any term used in this sub21 section which is also used in section 40A shall have 

22 the meaning given such term by section 40A.’’, and 

23 (ii) by redesignating paragraph (6), as 

24 amended by paragraph (1)(A), as para25 graph (4). 

mstockstill on DSK4VPTVN1PROD with BILLS

19 

•HR 4040 IH

1 (B) PRODUCER REGISTRATION REQUIRE2 MENT.—Subsection (a) of section 6426 is 

3 amended by striking ‘‘subsections (d) and (e)’’ 

4 in the flush sentence at the end and inserting 

5 ‘‘subsections (c), (d), and (e)’’. 

6 (C) RECAPTURE.— 

7 (i) IN GENERAL.—Subsection (f) of 

8 section 6426 is amended— 

9 (I) by striking ‘‘or biodiesel’’ 

10 each place it appears in subpara11 graphs (A) and (B)(i) of paragraph 

12 (1), 

13 (II) by striking ‘‘or biodiesel mix14 ture’’ in paragraph (1)(A), and 

15 (III) by redesignating paragraph 

16 (2) as paragraph (3) and by inserting 

17 after paragraph (1) the following new 

18 paragraph: 

19 ‘‘(2) BIODIESEL.—If any credit was determined 

20 under this section or paid pursuant to section 

21 6427(e) with respect to the production of any bio22 diesel and any person uses such biodiesel for a pur23 pose not described in subsection (c)(1), then there is 

24 hereby imposed on such person a tax equal to $1 for 

25 each gallon of such biodiesel.’’. 

mstockstill on DSK4VPTVN1PROD with BILLS

20 

•HR 4040 IH

1 (ii) CONFORMING AMENDMENTS.— 

2 (I) Paragraph (3) of section 

3 6426(f), as redesignated by clause 

4 (i)(III), is amended by inserting ‘‘or 

5 (2)’’ after ‘‘paragraph (1)’’. 

6 (II) The heading for paragraph 

7 (1) of section 6426(f) is amended by 

8 striking ‘‘IMPOSITION OF TAX’’ and 

9 inserting ‘‘IN GENERAL’’. 

10 (D) LIMITATION.—Section 6426(i) is 

11 amended— 

12 (i) in paragraph (2)— 

13 (I) by striking ‘‘biodiesel or’’, and 

14 (II) by striking ‘‘BIODIESEL

15 AND’’ in the heading, and 

16 (ii) by inserting after paragraph (2) 

17 the following new paragraph: 

18 ‘‘(3) BIODIESEL.—No credit shall be deter19 mined under this section with respect to biodiesel 

20 unless such biodiesel is produced in the United 

21 States.’’. 

22 (E) CLERICAL AMENDMENTS.— 

23 (i) The heading of section 6426 is 

24 amended by striking ‘‘ALCOHOL FUEL, 

25 BIODIESEL, AND ALTERNATIVE FUEL

mstockstill on DSK4VPTVN1PROD with BILLS

21 

•HR 4040 IH

1 MIXTURES’’ and inserting ‘‘ALCOHOL

2 FUEL MIXTURES, BIODIESEL PRODUC3 TION, AND ALTERNATIVE FUEL MIX4 TURES’’. 

5 (ii) The item relating to section 6426 

6 in the table of sections for subchapter B of 

7 chapter 65 is amended by striking ‘‘alcohol 

8 fuel, biodiesel, and alternative fuel mix9 tures’’ and inserting ‘‘alcohol fuel mix10 tures, biodiesel production, and alternative 

11 fuel mixtures’’. 

12 (F) EFFECTIVE DATE.—The amendments 

13 made by this paragraph shall apply to fuel sold 

14 or used after December 31, 2015. 

15 (3) REFORM OF EXCISE PAYMENTS OF CRED16 IT.— 

17 (A) IN GENERAL.—Subsection (e) of sec18 tion 6427, as amended by paragraph (1)(B), is 

19 amended— 

20 (i) by striking ‘‘or the biodiesel mix21 ture credit’’ in paragraph (1), 

22 (ii) by redesignating paragraphs (3) 

23 through (6) as paragraphs (4) through (7), 

24 respectively, and by inserting after para25 graph (2) the following new paragraph: 

mstockstill on DSK4VPTVN1PROD with BILLS

22 

•HR 4040 IH

1 ‘‘(3) BIODIESEL PRODUCTION CREDIT.—If any 

2 person produces biodiesel and sells or uses such bio3 diesel as provided in section 6426(c)(1), the Sec4 retary shall pay (without interest) to such person an 

5 amount equal to the biodiesel production credit with 

6 respect to such biodiesel.’’, 

7 (iii) by striking ‘‘paragraph (1) or 

8 (2)’’ each place it appears in paragraphs 

9 (4) and (6), as redesignated by paragraph 

10 (2), and inserting ‘‘paragraph (1), (2), or 

11 (3)’’, 

12 (iv) by striking ‘‘alternative fuel’’ each 

13 place it appears in paragraphs (4) and (6), 

14 as redesignated by paragraph (2), and in15 serting ‘‘fuel’’, and 

16 (v) by striking ‘‘biodiesel mixture (as 

17 defined in section 6426(c)(3))’’ in para18 graph (7)(B), as so redesignated, and in19 serting ‘‘biodiesel (within the meaning of 

20 section 40A)’’. 

21 (B) EFFECTIVE DATE.—The amendments 

22 made by this paragraph shall apply to fuel sold 

23 or used after December 31, 2015. 

24 (c) TREATMENT OF BIODIESEL AS A TAXABLE

25 FUEL.— 

mstockstill on DSK4VPTVN1PROD with BILLS

23 

•HR 4040 IH

1 (1) IN GENERAL.— 

2 (A) TAXABLE FUEL INCLUDES BIO3 DIESEL.—Paragraph (1) of section 4083(a) is 

4 amended by striking ‘‘and’’ at the end of sub5 paragraph (B), by striking the period at the 

6 end of subparagraph (C) and inserting ‘‘, and’’, 

7 and by adding at the end the following new sub8 paragraph: 

9 ‘‘(D) biodiesel.’’. 

10 (B) BIODIESEL DEFINED.—Subsection (a) 

11 of section 4083 is amended by adding at the 

12 end the following new paragraph: 

13 ‘‘(4) BIODIESEL.—The term ‘biodiesel’ has the 

14 meaning given such term under section 40A(d)(1), 

15 determined without regard to the last sentence 

16 thereof.’’. 

17 (2) BIODIESEL PRODUCTION FACILITIES

18 TREATED AS REFINERIES.— 

19 (A) IN GENERAL.—Subsection (a) of sec20 tion 4081 is amended by adding at the end the 

21 following new paragraph: 

22 ‘‘(5) BIODIESEL PRODUCTION FACILITIES AND

23 BLENDING FACILITIES TREATED AS REFINERIES.— 

24 For purposes of this part— 

mstockstill on DSK4VPTVN1PROD with BILLS

24 

•HR 4040 IH

1 ‘‘(A) any facility which is used to produce 

2 biodiesel, and 

3 ‘‘(B) any biodiesel blending facility, 

4 shall be treated as a refinery with respect to bio5 diesel.’’. 

6 (B) BIODIESEL BLENDING FACILITY DE7 FINED.—Section 4083 is amended by adding at 

8 the end the following new subsection: 

9 ‘‘(e) BIODIESEL BLENDING FACILITY.—For pur10 poses of this subpart, the term ‘biodiesel blending facility’ 

11 means any facility that is operated by an eligible discre12 tionary blender (as defined in section 40A(d)(2)(C)).’’. 

13 (C) BULK TRANSFERS.—Subparagraph 

14 (B) of section 4081(a)(1) is amended by adding 

15 at the end the following new clause: 

16 ‘‘(iii) SPECIAL RULES FOR BIO17 DIESEL.—The tax imposed by this para18 graph shall not apply to the removal or 

19 entry of biodiesel to any refinery or ter20 minal if the person removing or entering 

21 the biodiesel and the operator of the refin22 ery or terminal are registered under sec23 tion 4101.’’. 

24 (3) RATE OF TAX.—Subparagraph (A)(iii) of 

25 section 4081(a)(2) is amended by striking ‘‘diesel 

mstockstill on DSK4VPTVN1PROD with BILLS

25 

•HR 4040 IH

1 fuel or kerosene’’ and inserting ‘‘diesel fuel, ker2 osene, or biodiesel’’. 

3 (4) EXEMPTIONS.— 

4 (A) IN GENERAL.—Section 4082 is amend5 ed by striking ‘‘diesel fuel and kerosene’’ each 

6 place it appears in subsections (a), (c), and (g) 

7 and inserting ‘‘diesel fuel, kerosene, and bio8 diesel’’. 

9 (B) CONFORMING AMENDMENT.—Subpara10 graph (A) of section 4082(d)(1) is amended by 

11 inserting ‘‘biodiesel,’’ after ‘‘diesel fuel,’’. 

12 (5) OTHER CONFORMING AMENDMENTS.— 

13 (A) The heading for paragraph (1) of sec14 tion 4041(a) is amended by striking ‘‘DIESEL

15 FUEL AND KEROSENE’’ and inserting ‘‘DIESEL

16 FUEL, KEROSENE, AND BIODIESEL’’. 

17 (B) Paragraph (2) of section 6416(b) is 

18 amended by striking ‘‘diesel fuel or kerosene’’ 

19 and inserting ‘‘diesel fuel, kerosene, or bio20 diesel’’. 

21 (C) Section 6427(l) is amended— 

22 (i) by striking ‘‘diesel fuel or ker23 osene’’ each place it appears in paragraphs 

24 (1) and (5)(A) and inserting ‘‘diesel fuel, 

25 kerosene, or biodiesel’’, 

mstockstill on DSK4VPTVN1PROD with BILLS

26 

•HR 4040 IH

1 (ii) by striking ‘‘DIESEL FUEL AND

2 KEROSENE’’ in the heading and inserting 

3 ‘‘DIESEL FUEL, KEROSENE, AND BIO4 DIESEL’’, and 

5 (iii) by striking ‘‘DIESEL FUEL OR

6 KEROSENE’’ in the heading of paragraph 

7 (5) and inserting ‘‘DIESEL FUEL, KER8 OSENE, OR BIODIESEL’’. 

9 (D) Section 6715(c)(1) is amended by 

10 striking ‘‘diesel fuel or kerosene’’ and inserting 

11 ‘‘diesel fuel, kerosene, or biodiesel’’. 

12 (6) EFFECTIVE DATE.—The amendments made 

13 by this subsection shall apply to biodiesel sold or 

14 used after December 31, 2015. 

15 SEC. 106. EXTENSION OF CREDITS WITH RESPECT TO FA16 CILITIES PRODUCING ENERGY FROM CER17 TAIN RENEWABLE RESOURCES. 

18 (a) IN GENERAL.—The following provisions of sec19 tion 45(d) are each amended by striking ‘‘January 1, 

20 2015’’ each place it appears and inserting ‘‘January 1, 

21 2017’’: 

22 (1) Paragraph (1). 

23 (2) Paragraph (2)(A). 

24 (3) Paragraph (3)(A). 

25 (4) Paragraph (4)(B). 

mstockstill on DSK4VPTVN1PROD with BILLS

27 

•HR 4040 IH

1 (5) Paragraph (6). 

2 (6) Paragraph (7). 

3 (7) Paragraph (9). 

4 (8) Paragraph (11)(B). 

5 (b) EXTENSION OF ELECTION TO TREAT QUALIFIED

6 FACILITIES AS ENERGY PROPERTY.—Clause (ii) of sec7 tion 48(a)(5)(C) is amended by striking ‘‘January 1, 

8 2015’’ and inserting ‘‘January 1, 2017’’. 

9 (c) EFFECTIVE DATES.—The amendments made by 

10 this section shall take effect on January 1, 2015. 

11 SEC. 107. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT 

12 NEW HOMES. 

13 (a) IN GENERAL.—Subsection (g) of section 45L is 

14 amended by striking ‘‘December 31, 2014’’ and inserting 

15 ‘‘December 31, 2016’’. 

16 (b) EFFECTIVE DATE.—The amendment made by 

17 this section shall apply to homes acquired after December 

18 31, 2014. 

19 SEC. 108. EXTENSION OF SPECIAL ALLOWANCE FOR SEC20 OND GENERATION BIOFUEL PLANT PROP21 ERTY. 

22 (a) IN GENERAL.—Subparagraph (D) of section 

23 168(l)(2) is amended by striking ‘‘January 1, 2015’’ and 

24 inserting ‘‘January 1, 2017’’. 

mstockstill on DSK4VPTVN1PROD with BILLS

28 

•HR 4040 IH

1 (b) EFFECTIVE DATE.—The amendment made by 

2 this section shall apply to property placed in service after 

3 December 31, 2014. 

4 SEC. 109. EXTENSION AND MODIFICATION OF ENERGY EF5 FICIENT COMMERCIAL BUILDINGS DEDUC6 TION. 

7 (a) IN GENERAL.—Subsection (h) of section 179D is 

8 amended by striking ‘‘December 31, 2014’’ and inserting 

9 ‘‘December 31, 2016’’. 

10 (b) ALLOCATIONS TO INDIAN TRIBAL GOVERN11 MENTS.—Paragraph (4) of section 179D(d) is amended 

12 by striking ‘‘or local’’ and inserting ‘‘local, or Indian trib13 al’’. 

14 (c) ALLOCATIONS TO CERTAIN NONPROFIT ORGANI15 ZATIONS.— 

16 (1) IN GENERAL.—Paragraph (4) of section 

17 179D(d), as amended by subsection (b), is amended 

18 by inserting ‘‘or by an organization that is described 

19 in section 501(c)(3) and exempt from tax under sec20 tion 501(a),’’ after ‘‘political subdivision thereof,’’. 

21 (2) CLERICAL AMENDMENT.—The heading of 

22 paragraph (4) of section 179D(d) is amended by in23 serting ‘‘AND PROPERTY HELD BY CERTAIN NON24 PROFITS’’ after ‘‘PUBLIC PROPERTY’’. 

25 (d) UPDATED ASHRAE STANDARDS FOR 2016.— 

mstockstill on DSK4VPTVN1PROD with BILLS

29 

•HR 4040 IH

1 (1) IN GENERAL.—Paragraph (1) of section 

2 179D(c) is amended by striking ‘‘Standard 90.1- 

3 2001’’ each place it appears and inserting ‘‘Stand4 ard 90.1-2007’’. 

5 (2) CONFORMING AMENDMENTS.— 

6 (A) Paragraph (2) of section 179D(c) is 

7 amended to read as follows: 

8 ‘‘(2) STANDARD 90.1-2007.—The term ‘Standard 

9 90.1-2007’ means Standard 90.1-2007 of the Amer10 ican Society of Heating, Refrigerating, and Air Con11 ditioning Engineers and the Illuminating Engineer12 ing Society of North America (as in effect on the 

13 day before the date of the adoption of Standard 

14 90.1-2010 of such Societies).’’. 

15 (B) Subsection (f) of section 179D is 

16 amended by striking ‘‘Standard 90.1-2001’’ 

17 each place it appears in paragraphs (1) and 

18 (2)(C)(i) and inserting ‘‘Standard 90.1-2007’’. 

19 (C) Paragraph (1) of section 179D(f) is 

20 amended— 

21 (i) by striking ‘‘Table 9.3.1.1’’ and in22 serting ‘‘Table 9.5.1’’, and 

23 (ii) by striking ‘‘Table 9.3.1.2’’ and 

24 inserting ‘‘Table 9.6.1’’. 

mstockstill on DSK4VPTVN1PROD with BILLS

30 

•HR 4040 IH

1 (3) EFFECTIVE DATE.—The amendments made 

2 by this subsection shall apply to property placed in 

3 service after December 31, 2015. 

4 (e) EFFECTIVE DATE.—Except as provided in sub5 section (d)(3), the amendments made by this section shall 

6 apply to property placed in service after December 31, 

7 2014. 

8 SEC. 110. EXTENSION OF SPECIAL RULE FOR SALES OR DIS9 POSITIONS TO IMPLEMENT FERC OR STATE 

10 ELECTRIC RESTRUCTURING POLICY FOR 

11 QUALIFIED ELECTRIC UTILITIES. 

12 (a) IN GENERAL.—Paragraph (3) of section 451(i) 

13 is amended by striking ‘‘January 1, 2015’’ and inserting 

14 ‘‘January 1, 2017’’. 

15 (b) EFFECTIVE DATE.—The amendment made by 

16 this section shall apply to dispositions after December 31, 

17 2014. 

18 SEC. 111. EXTENSION OF EXCISE TAX CREDITS RELATING 

19 TO ALTERNATIVE FUELS. 

20 (a) EXTENSION OF ALTERNATIVE FUELS EXCISE

21 TAX CREDITS.— 

22 (1) IN GENERAL.—Sections 6426(d)(5) and 

23 6426(e)(3) are each amended by striking ‘‘December 

24 31, 2014’’ and inserting ‘‘December 31, 2016’’. 

mstockstill on DSK4VPTVN1PROD with BILLS

31 

•HR 4040 IH

1 (2) OUTLAY PAYMENTS FOR ALTERNATIVE

2 FUELS.—Subparagraph (C) of section 6427(e)(7), as 

3 redesignated by section 6(b)(3)(A)(ii), is amended by 

4 striking ‘‘December 31, 2014’’ and inserting ‘‘De5 cember 31, 2016’’. 

6 (b) EFFECTIVE DATE.—The amendments made by 

7 this section shall apply to fuel sold or used after December 

8 31, 2014. 

9 (c) SPECIAL RULE FOR CERTAIN PERIODS DURING

10 2015.—Notwithstanding any other provision of law, in the 

11 case of any alternative fuel credit properly determined 

12 under section 6426(d) of such Code for such periods, such 

13 credit shall be allowed, and any refund or payment attrib14 utable to such credit (including any payment under section 

15 6427(e) of such Code) shall be made, only in such manner 

16 as the Secretary of the Treasury (or the Secretary’s dele17 gate) shall provide. Such Secretary shall issue guidance 

18 within 30 days after the date of the enactment of this Act 

19 providing for a one-time submission of claims covering pe20 riods described in the preceding sentence. Such guidance 

21 shall provide for a 180-day period for the submission of 

22 such claims (in such manner as prescribed by such Sec23 retary) to begin not later than 30 days after such guidance 

24 is issued. Such claims shall be paid by such Secretary not 

25 later than 60 days after receipt. If such Secretary has not 

mstockstill on DSK4VPTVN1PROD with BILLS

32 

•HR 4040 IH

1 paid pursuant to a claim filed under this subsection within 

2 60 days after the date of the filing of such claim, the claim 

3 shall be paid with interest from such date determined by 

4 using the overpayment rate and method under section 

5 6621 of such Code. 

6 TITLE II—ADDITIONAL 

7 PROVISIONS 

8 SEC. 201. EXTENSION OF ENERGY CREDIT FOR CERTAIN 

9 PROPERTY UNDER CONSTRUCTION. 

10 (a) SOLAR ENERGY PROPERTY.—Paragraphs 

11 (2)(A)(i)(II) and (3)(A)(ii) of section 48(a) are each 

12 amended by striking ‘‘periods ending’’ and inserting 

13 ‘‘property the construction of which begins’’. 

14 (b) QUALIFIED FUEL CELL PROPERTY.—Section 

15 48(c)(1)(D) is amended by striking ‘‘for any period after 

16 December 31, 2016’’ and inserting ‘‘the construction of 

17 which does not begin before January 1, 2017’’. 

18 (c) QUALIFIED MICROTURBINE PROPERTY.—Section 

19 48(c)(2)(D) is amended by striking ‘‘for any period after 

20 December 31, 2016’’ and inserting ‘‘the construction of 

21 which does not begin before January 1, 2017’’. 

22 (d) COMBINED HEAT AND POWER SYSTEM PROP23 ERTY.—Section 48(c)(3)(A)(iv) is amended by striking 

24 ‘‘which is placed in service’’ and inserting ‘‘construction 

25 of which begins’’. 

mstockstill on DSK4VPTVN1PROD with BILLS

33 

•HR 4040 IH

1 (e) QUALIFIED SMALL WIND ENERGY PROPERTY.— 

2 Section 48(c)(4)(C) is amended by striking ‘‘for any pe3 riod after December 31, 2016’’ and inserting ‘‘the con4 struction of which does not begin before January 1, 

5 2017’’. 

6 (f) THERMAL ENERGY PROPERTY.—Section 

7 48(a)(3)(A)(vii) is amended by striking ‘‘periods ending’’ 

8 and inserting ‘‘property the construction of which begins’’. 

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

10 this section shall take effect on the date of the enactment 

11 of this Act. 

12 SEC. 202. MODIFICATIONS IN CREDIT FOR COMBINED HEAT 

13 AND POWER SYSTEM PROPERTY. 

14 (a) INCREASED ENERGY PERCENTAGE.—Section 

15 48(a)(2)(A)(i) is amended by striking ‘‘and’’ at the end 

16 of subclause (III), by redesignating subclause (IV) as sub17 clause (V), and by inserting after subclause (III) the fol18 lowing new subclause: 

19 ‘‘(IV) energy property described 

20 in paragraph (3)(A)(v), and’’. 

21 (b) MODIFICATION OF CERTAIN CAPACITY LIMITA22 TIONS.—Section 48(c)(3)(B) is amended— 

23 (1) by striking ‘‘15 megawatts’’ in clause (ii) 

24 and inserting ‘‘25 megawatts’’, 

mstockstill on DSK4VPTVN1PROD with BILLS

34 

•HR 4040 IH

1 (2) by striking ‘‘20,000 horsepower’’ in clause 

2 (ii) and inserting ‘‘34,000 horsepower’’, and 

3 (3) by striking clause (iii). 

4 (c) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to periods after the date of the 

6 enactment of this Act, under rules similar to the rules of 

7 section 48(m) of the Internal Revenue Code of 1986 (as 

8 in effect on the day before the date of the enactment of 

9 the Revenue Reconciliation Act of 1990). 

10 SEC. 203. ENERGY CREDIT FOR WASTE HEAT TO POWER 

11 PROPERTY. 

12 (a) IN GENERAL.—Section 48(a)(3)(A) is amended 

13 by striking ‘‘or’’ at the end of clause (vi), by inserting 

14 ‘‘or’’ at the end of clause (vii), and by adding at the end 

15 the following new clause: 

16 ‘‘(viii) waste heat to power property,’’. 

17 (b) WASTE HEAT TO POWER PROPERTY.—Section 

18 48(c) is amended by adding at the end the following new 

19 paragraph: 

20 ‘‘(5) WASTE HEAT TO POWER PROPERTY.— 

21 ‘‘(A) WASTE HEAT TO POWER PROP22 ERTY.—The term ‘waste heat to power prop23 erty’ means property comprising a system which 

24 generates electricity through the recovery of a 

25 qualified waste heat resource. 

mstockstill on DSK4VPTVN1PROD with BILLS

35 

•HR 4040 IH

1 ‘‘(B) QUALIFIED WASTE HEAT RESOURCE

2 DEFINED.—The term ‘qualified waste heat re3 source’ means— 

4 ‘‘(i) exhaust heat or flared gas from 

5 any industrial process, 

6 ‘‘(ii) waste gas or industrial tail gas 

7 that would otherwise be flared, incinerated, 

8 or vented, 

9 ‘‘(iii) a pressure drop in any gas for 

10 an industrial or commercial process, or 

11 ‘‘(iv) such other forms of waste heat 

12 resources as the Secretary may determine. 

13 ‘‘(C) EXCEPTION.—The term ‘qualified 

14 waste heat resource’ does not include any heat 

15 resource from a process whose primary purpose 

16 is the generation of electricity utilizing a fossil 

17 fuel or nuclear energy. 

18 ‘‘(D) TERMINATION.—The term ‘waste 

19 heat to power property’ shall not include any 

20 property placed in service after December 31, 

21 2016.’’. 

22 (c) INCREASED ENERGY PERCENTAGE.—Section 

23 48(a)(2)(A)(i), as amended by section 201, is amended by 

24 striking ‘‘and’’ at the end of subclause (IV) and by insert25 ing after subclause (V) the following new subclause: 

mstockstill on DSK4VPTVN1PROD with BILLS

36 

•HR 4040 IH

1 ‘‘(VI) energy property described 

2 in paragraph (3)(A)(viii), and’’. 

3 (d) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to periods after the date of the 

5 enactment of this Act, under rules similar to the rules of 

6 section 48(m) of the Internal Revenue Code of 1986 (as 

7 in effect on the day before the date of the enactment of 

8 the Revenue Reconciliation Act of 1990). 

9 SEC. 204. INVESTMENT TAX CREDIT FOR COMMUNITY WIND 

10 PROJECTS HAVING GENERATION CAPACITY 

11 OF NOT MORE THAN 20 MEGAWATTS. 

12 (a) IN GENERAL.—Paragraph (4) of section 48(c) is 

13 amended— 

14 (1) by striking subparagraph (A) and inserting 

15 the following new subparagraph: 

16 ‘‘(A) IN GENERAL.—The term ‘qualified 

17 small wind energy property’ means— 

18 ‘‘(i) property which uses a qualifying 

19 small wind turbine to generate electricity, 

20 or 

21 ‘‘(ii) property which uses 1 or more 

22 wind turbines with an aggregate nameplate 

23 capacity of more than 100 kilowatts but 

24 not more than 20 megawatts.’’, and 

mstockstill on DSK4VPTVN1PROD with BILLS

37 

•HR 4040 IH

1 (2) by redesignating subparagraph (C) as sub2 paragraph (D) and by inserting after subparagraph 

3 (B) the following new subparagraph: 

4 ‘‘(C) REGULATIONS.—The Secretary shall 

5 prescribe such regulations as may be appro6 priate to prevent improper division of property 

7 to attempt to meet the limitation under sub8 paragraph (A)(ii).’’. 

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

10 this section shall apply to property placed in service after 

11 the date of the enactment of this Act. 

12 SEC. 205. EXTENSION OF PUBLICLY TRADED PARTNERSHIP 

13 OWNERSHIP STRUCTURE TO ENERGY POWER 

14 GENERATION PROJECTS, TRANSPORTATION 

15 FUELS, AND RELATED ENERGY ACTIVITIES. 

16 (a) IN GENERAL.—Subparagraph (E) of section 

17 7704(d)(1) is amended— 

18 (1) by striking ‘‘income and gains derived from 

19 the exploration’’ and inserting ‘‘income and gains 

20 derived from the following: 

21 ‘‘(i) MINERALS, NATURAL RE22 SOURCES, ETC.—The exploration’’, 

23 (2) by inserting ‘‘or’’ before ‘‘industrial 

24 source’’, 

mstockstill on DSK4VPTVN1PROD with BILLS

38 

•HR 4040 IH

1 (3) by inserting a period after ‘‘carbon diox2 ide’’, and 

3 (4) by striking ‘‘, or the transportation or stor4 age’’ and all that follows and inserting the following: 

5 ‘‘(ii) RENEWABLE ENERGY.—The gen6 eration of electric power (including the 

7 leasing of tangible personal property used 

8 for such generation) exclusively utilizing 

9 any resource described in section 45(c)(1) 

10 or energy property described in section 48 

11 (determined without regard to any termi12 nation date), or in the case of a facility de13 scribed in paragraph (3) or (7) of section 

14 45(d) (determined without regard to any 

15 placed in service date or date by which 

16 construction of the facility is required to 

17 begin), the accepting or processing of such 

18 resource. 

19 ‘‘(iii) ELECTRICITY STORAGE DE20 VICES.—The receipt and sale of electric 

21 power that has been stored in a device di22 rectly connected to the grid.’’. 

23 (b) EFFECTIVE DATE.—The amendments made by 

24 this section shall take effect on the date of the enactment 

25 of this Act, in taxable years ending after such date. 

mstockstill on DSK4VPTVN1PROD with BILLS

39 

•HR 4040 IH

1 SEC. 206. ADDITIONAL ADVANCED ENERGY MANUFAC2 TURING CREDIT ALLOCATIONS. 

3 (a) ADDITIONAL ALLOCATION OF CREDITS.—Section 

4 48C(d) is amended by adding at the end the following: 

5 ‘‘(6) ADDITIONAL ALLOCATION.— 

6 ‘‘(A) IN GENERAL.—In addition to credits 

7 allocated under paragraph (1), the Secretary, in 

8 consultation with the Secretary of Energy, is 

9 authorized to conduct an additional program to 

10 consider and award certifications for qualified 

11 investments eligible for credits under this sec12 tion to qualifying advanced energy project spon13 sors pursuant to applications from such spon14 sors received after December 31, 2015. 

15 ‘‘(B) LIMITATION.—The total amount of 

16 credits that may be allocated under subpara17 graph (A) shall not exceed $2,700,000,000. 

18 ‘‘(C) MODIFICATIONS TO APPLICABLE

19 RULES.—For purposes of this paragraph— 

20 ‘‘(i) APPLICATION PERIOD.—The 2- 

21 year period described in paragraph (2) 

22 shall begin on January 1, 2016. 

23 ‘‘(ii) REALLOCATION.—The 4-year pe24 riod described in paragraph (4) shall begin 

25 the date of the enactment of this para26 graph.’’. 

mstockstill on DSK4VPTVN1PROD with BILLS

40 

•HR 4040 IH

1 (b) EFFECTIVE DATE.—The amendment made by 

2 subsection (a) shall apply to periods beginning after De3 cember 31, 2015. 

4 TITLE III—ENDING OIL AND GAS 

5 TAX SUBSIDIES 

6 SEC. 301. AMORTIZATION OF GEOLOGICAL AND GEO7 PHYSICAL EXPENDITURES. 

8 (a) IN GENERAL.—Section 167(h) is amended— 

9 (1) by striking ‘‘24-month period’’ in paragraph 

10 (1) and inserting ‘‘7-year period’’, and 

11 (2) by striking paragraph (5). 

12 (b) EFFECTIVE DATE.—The amendment made by 

13 this section shall apply to amounts paid or incurred in tax14 able years beginning after December 31, 2015. 

15 SEC. 302. PRODUCING OIL AND GAS FROM MARGINAL 

16 WELLS. 

17 (a) IN GENERAL.—Subpart D of part IV of sub18 chapter A of chapter 1 is amended by striking section 45I 

19 (and by striking the item relating to such section in the 

20 table of sections for such subpart). 

21 (b) CONFORMING AMENDMENT.—Section 38(b) is 

22 amended by striking paragraph (19). 

23 (c) EFFECTIVE DATE.—The amendment made by 

24 subsection (a) shall apply to credits determined for taxable 

25 years beginning after December 31, 2015. 

mstockstill on DSK4VPTVN1PROD with BILLS

41 

•HR 4040 IH

1 SEC. 303. ENHANCED OIL RECOVERY CREDIT. 

2 (a) IN GENERAL.—Subpart D of part IV of sub3 chapter A of chapter 1 is amended by striking section 43 

4 (and by striking the item relating to such section in the 

5 table of sections for such subpart). 

6 (b) CONFORMING AMENDMENT.—Section 38(b) is 

7 amended by striking paragraph (6). 

8 (c) EFFECTIVE DATE.—The amendments made by 

9 this section shall apply to amounts paid or incurred in tax10 able years beginning after December 31, 2015. 

11 SEC. 304. INTANGIBLE DRILLING AND DEVELOPMENT 

12 COSTS IN THE CASE OF OIL AND GAS WELLS. 

13 (a) IN GENERAL.—Subsection (c) of section 263 is 

14 amended by adding at the end the following new sentence: 

15 ‘‘This subsection shall not apply to amounts paid or in16 curred by a taxpayer with respect to an oil or gas well 

17 after December 31, 2015.’’. 

18 (b) EFFECTIVE DATE.—The amendment made by 

19 this section shall apply to amounts paid or incurred in tax20 able years beginning after December 31, 2015. 

21 SEC. 305. REPEAL OF PERCENTAGE DEPLETION FOR OIL 

22 AND GAS WELLS. 

23 (a) IN GENERAL.—Part I of subchapter I of chapter 

24 1 is amended by striking section 613A (and the table of 

25 sections of such part is amended by striking the item relat26 ing to such section). 

mstockstill on DSK4VPTVN1PROD with BILLS

42 

•HR 4040 IH

1 (b) CONFORMING AMENDMENTS.— 

2 (1) Subsection (d) of section 45H is amended— 

3 (A) by striking ‘‘For purposes this section’’ 

4 and inserting the following: 

5 ‘‘(1) IN GENERAL.—For purposes of this sec6 tion’’, 

7 (B) by striking ‘‘(within the meaning of 

8 section 613A(d)(3))’’, and 

9 (C) by adding at the end the following new 

10 paragraph: 

11 ‘‘(2) RELATED PERSON.—For purposes of this 

12 subsection, a person is a related person with respect 

13 to the taxpayer if a significant ownership interest in 

14 either the taxpayer or such person is held by the 

15 other, or if a third person has a significant owner16 ship interest in both the taxpayer and such person. 

17 For purposes of the preceding sentence, the term 

18 ‘significant ownership interest’ means— 

19 ‘‘(A) with respect to any corporation, 5 

20 percent or more in value of the outstanding 

21 stock of such corporation, 

22 ‘‘(B) with respect to a partnership, 5 per23 cent or more interest in the profits or capital of 

24 such partnership, and 

mstockstill on DSK4VPTVN1PROD with BILLS

43 

•HR 4040 IH

1 ‘‘(C) with respect to an estate or trust, 5 

2 percent or more of the beneficial interests in 

3 such estate or trust. 

4 For purposes of determining a significant ownership 

5 interest, an interest owned by or for a corporation, 

6 partnership, trust, or estate shall be considered as 

7 owned directly both by itself and proportionately by 

8 its shareholders, partners, or beneficiaries, as the 

9 case may be.’’. 

10 (2) Section 56(g)(4)(F) is amended to read as 

11 follows: 

12 ‘‘(F) DEPLETION.—The allowance for de13 pletion with respect to any property placed in 

14 service in a taxable year beginning after De15 cember 31, 1989, shall be cost depletion deter16 mined under section 611.’’. 

17 (3) Section 57(a)(1) is amended by striking the 

18 last sentence. 

19 (4) Section 291(b)(4) is amended by adding at 

20 the end the following: ‘‘Any reference in the pre21 ceding sentence to section 613A shall be treated as 

22 a reference to such section as in effect prior to the 

23 date of the enactment of the Bridge to a Clean En24 ergy Future Act of 2015.’’. 

mstockstill on DSK4VPTVN1PROD with BILLS

44 

•HR 4040 IH

1 (5) Section 613(d) is amended by striking ‘‘Ex2 cept as provided in section 613A, in the case of’’ and 

3 inserting ‘‘In the case of’’. 

4 (6) Section 613(e) is amended— 

5 (A) by striking ‘‘or section 613A’’ in para6 graph (2), and 

7 (B) by striking ‘‘any amount described in 

8 section 613A(d)(5)’’ in paragraph (3) and in9 serting ‘‘any lease bonus, advance royalty, or 

10 other amount payable without regard to produc11 tion from property’’. 

12 (7) Section 705(a) is amended— 

13 (A) by inserting ‘‘and’’ at the end of para14 graph (1)(C), 

15 (B) by striking ‘‘; and’’ at the end of para16 graph (2)(B) and inserting a period, and 

17 (C) by striking paragraph (3). 

18 (8) Section 776 is amended by striking sub19 section (a) and by redesignating subsection (b) as 

20 subsection (a). 

21 (9) Section 954(g)(2)(D) is amended by insert22 ing ‘‘(as in effect before the date of the enactment 

23 of the Bridge to a Clean Energy Future Act of 

24 2015)’’ after ‘‘section 613A’’. 

mstockstill on DSK4VPTVN1PROD with BILLS

45 

•HR 4040 IH

1 (10) Section 993(c)(2)(C) is amended by strik2 ing ‘‘section 613 or 613A’’ and inserting ‘‘section 

3 613 (determined without regard to subsection (d) 

4 thereof)’’. 

5 (11) Section 1202(e)(3)(D) is amended by 

6 striking ‘‘section 613 or 613A’’ and inserting ‘‘sec7 tion 613 (determined without regard to subsection 

8 (d) thereof)’’. 

9 (12) Section 1367(a)(2) is amended by insert10 ing ‘‘and’’ at the end of subparagraph (C), by strik11 ing ‘‘, and’’ at the end of subparagraph (D) and in12 serting a period, and by striking subparagraph (E). 

13 (13) Section 1446(c) is amended by striking 

14 paragraph (2) and by redesignating paragraph (3) 

15 as paragraph (2). 

16 (c) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to property placed in service after 

18 December 31, 2015. 

19 SEC. 306. REPEAL OF DEDUCTION FOR TERTIARY 

20 INJECTANTS. 

21 (a) IN GENERAL.—Part VI of subchapter B of chap22 ter 1 is amended by striking section 193 (and the table 

23 of sections of such subpart is amended by striking the item 

24 relating to such section). 

mstockstill on DSK4VPTVN1PROD with BILLS

46 

•HR 4040 IH

1 (b) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years beginning after 

3 December 31, 2015. 

4 SEC. 307. REPEAL OF EXCEPTION TO PASSIVE LOSS LIMITA5 TIONS FOR WORKING INTERESTS IN OIL AND 

6 GAS PROPERTIES. 

7 (a) IN GENERAL.—Section 469(c)(3) is amended by 

8 adding at the end the following new subparagraph: 

9 ‘‘(C) TERMINATION.—Subparagraph (A) 

10 shall not apply with respect to any taxable year 

11 beginning after the date of the enactment of 

12 this Act.’’. 

13 (b) EFFECTIVE DATE.—The amendment made by 

14 this section shall apply to taxable years beginning after 

15 December 31, 2015. 

16 SEC. 308. DEDUCTION FOR INCOME ATTRIBUTABLE TO DO17 MESTIC PRODUCTION ACTIVITIES NOT AL18 LOWED WITH RESPECT TO OIL AND GAS AC19 TIVITIES. 

20 (a) IN GENERAL.—Section 199(c)(4)(B) is amended 

21 by striking ‘‘and’’ at the end of clause (ii), by striking 

22 the period at the end of clause (iii) and inserting ‘‘, and’’, 

23 and by inserting after clause (iii) the following new clause: 

mstockstill on DSK4VPTVN1PROD with BILLS

47 

•HR 4040 IH

1 ‘‘(iv) the production, refining, proc2 essing, transportation, or distribution of 

3 oil, gas, or any primary product thereof.’’. 

4 (b) CONFORMING AMENDMENT.—Section 199(d) is 

5 amended by striking paragraph (9) and by redesignating 

6 paragraph (10) as paragraph (9). 

7 (c) EFFECTIVE DATE.—The amendments made by 

8 this section shall apply to taxable years beginning after 

9 December 31, 2015. 

10 SEC. 309. PROHIBITION ON USING LAST-IN, FIRST-OUT AC11 COUNTING FOR OIL AND GAS COMPANIES. 

12 (a) IN GENERAL.—Section 472 is amended by adding 

13 at the end the following new subsection: 

14 ‘‘(h) OIL AND GAS COMPANIES.— 

15 ‘‘(1) IN GENERAL.—Notwithstanding any other 

16 provision of this section, a major integrated oil com17 pany may not use the method provided in subsection 

18 (b) in inventorying of any goods. 

19 ‘‘(2) MAJOR INTEGRATED OIL COMPANY.—For 

20 purposes of this subsection, the term ‘major inte21 grated oil company’ means, with respect to any tax22 able year, a producer of crude oil— 

23 ‘‘(A) which has an average daily worldwide 

24 production of crude oil of at least 500,000 bar25 rels for the taxable year, 

mstockstill on DSK4VPTVN1PROD with BILLS

48 

•HR 4040 IH

1 ‘‘(B) which has gross receipts in excess of 

2 $1,000,000,000 for the taxable year, and 

3 ‘‘(C) the average daily refinery runs of the 

4 taxpayer and related persons for the taxable 

5 year exceed 75,000 barrels. 

6 ‘‘(3) SPECIAL RULES.— 

7 ‘‘(A) CRUDE PRODUCTION AND GROSS RE8 CEIPTS.—For purposes of subparagraphs (A) 

9 and (B) of paragraph (2)— 

10 ‘‘(i) CONTROLLED GROUPS AND COM11 MON CONTROL.—All persons treated as a 

12 single employer under subsections (a) and 

13 (b) of section 52 shall be treated as 1 per14 son. 

15 ‘‘(ii) SHORT TAXABLE YEARS.—In the 

16 case of a short taxable year, the rule under 

17 section 448(c)(3)(B) shall apply. 

18 ‘‘(B) AVERAGE DAILY REFINERY RUNS.— 

19 For purposes of paragraph (2)(C)— 

20 ‘‘(i) IN GENERAL.—The average daily 

21 refinery runs for any taxable year shall be 

22 determined by dividing the aggregate refin23 ery runs for the taxable year by the num24 ber of days in the taxable year. 

mstockstill on DSK4VPTVN1PROD with BILLS

49 

•HR 4040 IH

1 ‘‘(ii) RELATED PERSONS.—A person 

2 is a related person with respect to the tax3 payer if a significant ownership interest in 

4 either the taxpayer or such person is held 

5 by the other, or if a third person has a sig6 nificant ownership interest in both the tax7 payer and such person. 

8 ‘‘(iii) SIGNIFICANT OWNERSHIP IN9 TEREST.—For purposes of clause (ii), the 

10 term ‘significant ownership interest’ 

11 means— 

12 ‘‘(I) with respect to any corpora13 tion, 15 percent or more in value of 

14 the outstanding stock of such corpora15 tion, 

16 ‘‘(II) with respect to a partner17 ship, 15 percent or more interest in 

18 the profits or capital of such partner19 ship, and 

20 ‘‘(III) with respect to an estate 

21 or trust, 15 percent or more of the 

22 beneficial interests in such estate or 

23 trust. 

24 For purposes of determining a significant 

25 ownership interest, an interest owned by or 

mstockstill on DSK4VPTVN1PROD with BILLS

50 

•HR 4040 IH

1 for a corporation, partnership, trust, or es2 tate shall be considered as owned directly 

3 both by itself and proportionately by its 

4 shareholders, partners, or beneficiaries, as 

5 the case may be.’’. 

6 (b) EFFECTIVE DATE AND SPECIAL RULE.— 

7 (1) IN GENERAL.—The amendment made by 

8 subsection (a) shall apply to taxable years beginning 

9 after December 31, 2015. 

10 (2) CHANGE IN METHOD OF ACCOUNTING.—In 

11 the case of any taxpayer required by the amendment 

12 made by this section to change its method of ac13 counting for its first taxable year beginning after the 

14 date of the enactment of this Act— 

15 (A) such change shall be treated as initi16 ated by the taxpayer, 

17 (B) such change shall be treated as made 

18 with the consent of the Secretary of the Treas19 ury, and 

20 (C) the net amount of the adjustments re21 quired to be taken into account by the taxpayer 

22 under section 481 of the Internal Revenue Code 

23 of 1986 shall be taken into account ratably over 

24 a period (not greater than 8 taxable years) be25 ginning with such first taxable year. 

mstockstill on DSK4VPTVN1PROD with BILLS

51 

•HR 4040 IH

1 SEC. 310. MODIFICATIONS OF FOREIGN TAX CREDIT RULES 

2 APPLICABLE TO DUAL CAPACITY TAXPAYERS. 

3 (a) IN GENERAL.—Section 901 is amended by redes4 ignating subsection (n) as subsection (o) and by inserting 

5 after subsection (m) the following new subsection: 

6 ‘‘(n) SPECIAL RULES RELATING TO DUAL CAPACITY

7 TAXPAYERS.— 

8 ‘‘(1) GENERAL RULE.—Notwithstanding any 

9 other provision of this chapter, any amount paid or 

10 accrued by a dual capacity taxpayer to a foreign 

11 country or possession of the United States for any 

12 period with respect to combined foreign oil and gas 

13 income (as defined in section 907(b)(1)) shall not be 

14 considered a tax to the extent such amount exceeds 

15 the amount (determined in accordance with regula16 tions) which would have been required to be paid if 

17 the taxpayer were not a dual capacity taxpayer. 

18 ‘‘(2) DUAL CAPACITY TAXPAYER.—For pur19 poses of this subsection, the term ‘dual capacity tax20 payer’ means, with respect to any foreign country or 

21 possession of the United States, a person who— 

22 ‘‘(A) is subject to a levy of such country or 

23 possession, and 

24 ‘‘(B) receives (or will receive) directly or 

25 indirectly a specific economic benefit (as determstockstill on DSK4VPTVN1PROD with BILLS

52 

•HR 4040 IH

1 mined in accordance with regulations) from 

2 such country or possession.’’. 

3 (b) EFFECTIVE DATE.— 

4 (1) IN GENERAL.—The amendments made by 

5 this section shall apply to taxes paid or accrued in 

6 taxable years beginning after December 31, 2015. 

7 (2) CONTRARY TREATY OBLIGATIONS

8 UPHELD.—The amendments made by this section 

9 shall not apply to the extent contrary to any treaty 

10 obligation of the United States. 

Æ 

mstockstill on DSK4VPTVN1PROD with BILLS