I 

109TH CONGRESS 

1ST SESSION H. R. 2899

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

credit for producing fuel from a nonconventional source. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 14, 2005

Mr. MOORE of Kansas (for himself, Mr. SHIMKUS, Mr. MATHESON, and Mr. 

BACHUS) 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 extend 

and modify the credit for producing fuel from a nonconventional source.

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

3 SECTION 1. EXTENSION AND MODIFICATION OF CREDIT 

4 FOR PRODUCING FUEL FROM A NONCONVEN5 TIONAL SOURCE. 

6 (a) IN GENERAL.—Section 29 of the Internal Rev7 enue Code of 1986 is amended by adding at the end the 

8 following new subsection: 

9 ‘‘(h) EXTENSION FOR OTHER FACILITIES.—
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1 ‘‘(1) EXTENSION FOR OIL AND CERTAIN GAS.—

2 In the case of a well for producing qualified fuels de3 scribed in subparagraph (A) or (B)(i) of subsection 

4 (c)(1)—

5 ‘‘(A) notwithstanding subsection (f), this 

6 section shall apply with respect to such fuel—

7 ‘‘(i) which is produced from a well 

8 drilled after the date of the enactment of 

9 this subsection and before January 1, 

10 2009, and 

11 ‘‘(ii) which is sold not later than the 

12 earlier of January 1, 2012, or the close of 

13 the 4-year period beginning on the date 

14 that such fuel is produced, and 

15 ‘‘(B) with respect to such fuels produced 

16 from a well described in subsection (f)(1)(A), 

17 subsection (f)(2) shall be applied by sub18 stituting ‘2009’ for ‘2003’. 

19 ‘‘(2) EXTENSION FOR FACILITIES PRODUCING

20 QUALIFIED FUEL FROM LANDFILL GAS.—

21 ‘‘(A) IN GENERAL.—In the case of a facil22 ity for producing qualified fuel from landfill gas 

23 which was placed in service after June 30, 

24 2000, and before January 1, 2009, this section 

25 shall apply to fuel produced at such facility dur-
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1 ing the 5-year period beginning on the later 

2 of—

3 ‘‘(i) the date such facility was placed 

4 in service, or 

5 ‘‘(ii) the date of the enactment of this 

6 subsection. 

7 ‘‘(B) REDUCTION OF CREDIT FOR CERTAIN

8 LANDFILL FACILITIES.—In the case of a facility 

9 to which paragraph (1) applies and which is 

10 subject to the 1996 New Source Performance 

11 Standards/Emissions Guidelines of the Environ12 mental Protection Agency, subsection (a)(1) 

13 shall be applied by substituting ‘$2’ for ‘$3’. 

14 ‘‘(3) SPECIAL RULES.—

15 ‘‘(A) DAILY LIMIT.—In determining the 

16 amount of credit allowable under this section 

17 solely by reason of this subsection, the amount 

18 of qualified fuels sold during any taxable year 

19 which may be taken into account by reason of 

20 this subsection with respect to any project shall 

21 not exceed an average barrel-of-oil equivalent of 

22 200,000 cubic feet of natural gas per day. Days 

23 before the date the project is placed in service 

24 shall not be taken into account in determining 

25 such average. 
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1 ‘‘(B) EXTENSION PERIOD TO COMMENCE

2 WITH UNADJUSTED CREDIT AMOUNT.—In de3 termining the amount of credit allowable under 

4 this section solely by reason of this subsection 

5 with respect to fuels sold during 2005 and 

6 2006, the dollar amount applicable under sub7 section (a)(1) shall be $3 (without regard to 

8 subsection (b)(2)). In the case of fuels sold 

9 after 2006, subparagraph (B) of subsection 

10 (d)(2) shall be applied by substituting ‘2006’ 

11 for ‘1979’.’’. 

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

13 this section shall apply to fuel sold after the date of the 

14 enactment of this Act in taxable years ending after such 

15 date.

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