I 

113TH CONGRESS 

1ST SESSION H. R. 259 

To amend the Internal Revenue Code of 1986 to terminate certain energy 

tax subsidies and lower the corporate income tax rate. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 15, 2013 

Mr. POMPEO (for himself, Mr. WHITFIELD, Mr. DUNCAN of South Carolina, 

Mr. HUELSKAMP, Mr. WESTMORELAND, Mr. STOCKMAN, Mr. MCCLINTOCK, Mr. AMASH, Mr. WILSON of South Carolina, Mr. BROUN of Georgia, Mr. RIBBLE, and Mr. MULVANEY) 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 terminate 

certain energy tax subsidies and lower the corporate income tax rate. 

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; TABLE OF CONTENTS; ETC. 

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

5 ‘‘Energy Freedom and Economic Prosperity Act’’. 

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


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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; table of contents; etc. 

TITLE I—REPEAL OF ENERGY TAX SUBSIDIES 

Sec. 101. Repeal of credit for alcohol fuel, biodiesel, and alternative fuel mixtures. 

Sec. 102. Early termination of credit for qualified fuel cell motor vehicles. 

Sec. 103. Early termination of new qualified plug-in electric drive motor vehicles. 

Sec. 104. Repeal of alternative fuel vehicle refueling property credit. 

Sec. 105. Repeal of credit for alcohol used as fuel. 

Sec. 106. Repeal of credit for biodiesel and renewable diesel used as fuel. 

Sec. 107. Repeal of enhanced oil recovery credit. 

Sec. 108. Termination of credit for electricity produced from certain renewable 

resources. 

Sec. 109. Repeal of credit for producing oil and gas from marginal wells. 

Sec. 110. Termination of credit for production from advanced nuclear power facilities. 

Sec. 111. Repeal of credit for carbon dioxide sequestration. 

Sec. 112. Termination of energy credit. 

Sec. 113. Repeal of qualifying advanced coal project. 

Sec. 114. Repeal of qualifying gasification project credit. 

TITLE II—REDUCTION OF CORPORATE INCOME TAX RATE 

Sec. 201. Corporate income tax rate reduced. 

6 TITLE I—REPEAL OF ENERGY 

7 TAX SUBSIDIES 

8 SEC. 101. REPEAL OF CREDIT FOR ALCOHOL FUEL, BIO9 DIESEL, AND ALTERNATIVE FUEL MIXTURES. 

10 (a) IN GENERAL.—Section 6426 is repealed. 

11 (b) CONFORMING AMENDMENTS.— 

12 (1) Paragraph (1) of section 4101(a) is amend13 ed by striking ‘‘or alcohol (as defined in section 

14 6426(b)(4)(A)’’. 


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1 (2) Paragraph (2) of section 4104(a) is amend2 ed by striking ‘‘6426, or 6427(e)’’. 

3 (3) Section 6427 is amended by striking sub4 section (e). 

5 (4) Subparagraph (E) of section 7704(d)(1) is 

6 amended— 

7 (A) by inserting ‘‘(as in effect on the day 

8 before the date of the enactment of the Energy 

9 Freedom and Economic Prosperity Act)’’ after 

10 ‘‘of section 6426’’, and 

11 (B) by inserting ‘‘(as so in effect)’’ after 

12 ‘‘section 6426(b)(4)(A)’’. 

13 (5) Paragraph (1) of section 9503(b) is amend14 ed by striking the second sentence. 

15 (c) CLERICAL AMENDMENT.—The table of sections 

16 for subchapter B of chapter 65 is amended by striking 

17 the item relating to section 6426. 

18 (d) EFFECTIVE.— 

19 (1) IN GENERAL.—Except as provided in para20 graph (2), the amendments made by this section 

21 shall apply with respect to fuel sold and used after 

22 the date of the enactment of this Act. 

23 (2) LIQUEFIED HYDROGEN.—In the case of any 

24 alternative fuel or alternative fuel mixture (as de25 fined in subsection (d)(2) or (e)(3) of section 6426 


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1 of the Internal Revenue Code of 1986 as in effect 

2 before its repeal by this Act) involving liquefied hy3 drogen, the amendments made by this section shall 

4 apply with respect to fuel sold and used after Sep5 tember 30, 2014. 

6 SEC. 102. EARLY TERMINATION OF CREDIT FOR QUALIFIED 

7 FUEL CELL MOTOR VEHICLES. 

8 (a) IN GENERAL.—Section 30B is repealed. 

9 (b) CONFORMING AMENDMENTS.— 

10 (1) Subparagraph (A) of section 24(b)(3) is 

11 amended by striking ‘‘, 30B’’. 

12 (2) Paragraph (2) of section 25B(g) is amended 

13 by striking ‘‘, 30B,’’. 

14 (3) Subsection (b) of section 38 is amended by 

15 striking paragraph (25). 

16 (4) Subsection (a) of section 1016 is amended 

17 by striking paragraph (35) and by redesignating 

18 paragraphs (36) and (37) as paragraphs (35) and 

19 (36), respectively. 

20 (5) Subsection (m) of section 6501 is amended 

21 by striking ‘‘, 30B(h)(9)’’. 

22 (c) CLERICAL AMENDMENT.—The table of sections 

23 for subpart B of part IV of subchapter A of chapter 1 

24 is amended by striking the item relating to section 30B. 


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

2 this section shall apply to property placed in service after 

3 December 31, 2014. 

4 SEC. 103. EARLY TERMINATION OF NEW QUALIFIED PLUG5 IN ELECTRIC DRIVE MOTOR VEHICLES. 

6 (a) IN GENERAL.—Section 30D is repealed. 

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

8 this section shall apply to vehicles placed in service after 

9 the date of the enactment of this Act. 

10 SEC. 104. REPEAL OF ALTERNATIVE FUEL VEHICLE RE11 FUELING PROPERTY CREDIT. 

12 (a) IN GENERAL.—Section 30C is repealed. 

13 (b) CONFORMING AMENDMENTS.— 

14 (1) Subsection (b) of section 38 is amended by 

15 striking paragraph (26). 

16 (2) Paragraph (3) of section 55(c) is amended 

17 by striking ‘‘, 30C(d)(2),’’. 

18 (3) Subsection (a) of section 1016, as amended 

19 by section 102 of this Act, is amended by striking 

20 paragraph (35) and by redesignating paragraph (36) 

21 as paragraph (35). 

22 (4) Subsection (m) of section 6501 is amended 

23 by striking ‘‘, 30C(e)(5)’’. 


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1 (c) CLERICAL AMENDMENT.—The table of sections 

2 for subpart B of part IV of subchapter A of chapter 1 

3 is amended by striking the item relating to section 30C. 

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

5 this section shall apply to property placed in service after 

6 the date of the enactment of this Act. 

7 SEC. 105. REPEAL OF CREDIT FOR ALCOHOL USED AS 

8 FUEL. 

9 (a) IN GENERAL.—Section 40 is repealed. 

10 (b) CONFORMING AMENDMENTS.— 

11 (1) Subsection (b) of section 38 is amended by 

12 striking paragraph (3). 

13 (2) Subsection (c) of section 196 is amended by 

14 striking paragraph (3) and by redesignating para15 graphs (4) through (14) as paragraphs (3) through 

16 (13), respectively. 

17 (3) Paragraph (1) of section 4101(a) is amend18 ed by striking ‘‘, and every person producing cellu19 losic biofuel (as defined in section 40(b)(6)(E))’’. 

20 (4) Paragraph (1) of section 4104(a) is amend21 ed by striking ‘‘, 40’’. 

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

23 this section shall apply to fuel sold or used after the date 

24 of the enactment of this Act. 


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1 SEC. 106. REPEAL OF CREDIT FOR BIODIESEL AND RENEW2 ABLE DIESEL USED AS FUEL. 

3 (a) IN GENERAL.—Section 40A is repealed. 

4 (b) CONFORMING AMENDMENT.— 

5 (1) Subsection (b) of section 38 is amended by 

6 striking paragraph (17). 

7 (2) Section 87 is repealed. 

8 (3) Subsection (c) of section 196, as amended 

9 by section 105 of this Act, is amended by striking 

10 paragraph (11) and by redesignating paragraphs 

11 (11), (12), and (13) as paragraphs (10), (11), and 

12 (12), respectively. 

13 (4) Paragraph (1) of section 4101(a) is amend14 ed by striking ‘‘, every person producing or import15 ing biodiesel (as defined in section 40A(d)(1)’’. 

16 (5) Paragraph (1) of section 4104(a) is amend17 ed by striking ‘‘, and 40A’’. 

18 (6) Subparagraph (E) of section 7704(d)(1) is 

19 amended by inserting ‘‘(as so in effect)’’ after ‘‘sec20 tion 40A(d)(1)’’. 

21 (c) CLERICAL AMENDMENT.—The table of sections 

22 for subpart D of part IV of subchapter A of chapter 1 

23 is amended by striking the item relating to section 40A. 

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

25 this section shall apply to fuel produced, and sold or used, 

26 after the date of the enactment of this Act. 


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1 SEC. 107. REPEAL OF ENHANCED OIL RECOVERY CREDIT. 

2 (a) IN GENERAL.—Section 43 is repealed. 

3 (b) CONFORMING AMENDMENTS.— 

4 (1) Subsection (b) of section 38 is amended by 

5 striking paragraph (6). 

6 (2) Paragraph (4) of section 45Q(d) is amended 

7 by inserting ‘‘(as in effect on the day before the date 

8 of the enactment of the Energy Freedom and Eco9 nomic Prosperity Act)’’ after ‘‘section 43(c)(2)’’. 

10 (3) Subsection (c) of section 196, as amended 

11 by sections 105 and 106 of this Act, is amended by 

12 striking paragraph (5) and by redesignating para13 graphs (6) through (12) as paragraphs (5) through 

14 (11), respectively. 

15 (c) CLERICAL AMENDMENT.—The table of sections 

16 for subpart D of part IV of subchapter A of chapter 1 

17 is amended by striking the item relating to section 43. 

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

19 this section shall apply to costs paid or incurred after De20 cember 31, 2014. 

21 SEC. 108. TERMINATION OF CREDIT FOR ELECTRICITY 

22 PRODUCED FROM CERTAIN RENEWABLE RE23 SOURCES. 

24 (a) WIND.—Subsection (d) of section 45 is amended 

25 by striking ‘‘January 1, 2014’’ in paragraph (1) and inVerDate Mar 15 2010 04:49 Jan 16, 2013 Jkt 029200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H259.IH H259

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1 serting ‘‘the date of the enactment of the Energy Freedom 

2 and Economic Prosperity Act’’. 

3 (b) INDIAN COAL.—Subparagraph (A) of section 

4 45(e)(10) is amended by striking ‘‘8-year period’’ each 

5 place it appears and inserting ‘‘7-year period’’. 

6 (c) EFFECTIVE DATE.— 

7 (1) WIND.—The amendment made by sub8 section (a) shall apply to property placed in service 

9 after the date of the enactment of this Act. 

10 (2) INDIAN COAL.—The amendments made by 

11 subsection (b) shall apply to coal produced after De12 cember 31, 2012. 

13 (3) OTHER QUALIFIED ENERGY RESOURCES.— 

14 For termination of other qualified energy resources 

15 for property placed in service after December 31, 

16 2013, see section 45 of the Internal Revenue Code 

17 of 1986. 

18 SEC. 109. REPEAL OF CREDIT FOR PRODUCING OIL AND 

19 GAS FROM MARGINAL WELLS. 

20 (a) IN GENERAL.—Section 45I is repealed. 

21 (b) CONFORMING AMENDMENT.—Subsection (b) of 

22 section 38 is amended by striking paragraph (19). 

23 (c) CLERICAL AMENDMENT.—The table of sections 

24 for subpart D of part IV of subchapter A of chapter 1 

25 is amended by striking the item relating to section 45I. 


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

2 this section shall apply to production in taxable years be3 ginning after December 31, 2014. 

4 SEC. 110. TERMINATION OF CREDIT FOR PRODUCTION 

5 FROM ADVANCED NUCLEAR POWER FACILI6 TIES. 

7 (a) IN GENERAL.—Subparagraph (B) of section 

8 45J(d)(1) is amended by striking ‘‘January 1, 2021’’ and 

9 inserting ‘‘January 1, 2015’’. 

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

11 this section shall apply to property placed in service after 

12 December 31, 2014. 

13 SEC. 111. REPEAL OF CREDIT FOR CARBON DIOXIDE SE14 QUESTRATION. 

15 (a) IN GENERAL.—Section 45Q is repealed. 

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

17 this section shall apply to carbon dioxide captured after 

18 December 31, 2014. 

19 SEC. 112. TERMINATION OF ENERGY CREDIT. 

20 (a) IN GENERAL.—Section 48 is amended— 

21 (1) by striking ‘‘January 1, 2017’’ each place 

22 it appears and inserting ‘‘January 1, 2015’’, and 

23 (2) by striking ‘‘December 31, 2016’’ each 

24 place it appears and inserting ‘‘December 31, 

25 2014’’. 


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

2 this section shall apply to property placed in service after 

3 December 31, 2014. 

4 SEC. 113. REPEAL OF QUALIFYING ADVANCED COAL 

5 PROJECT. 

6 (a) IN GENERAL.—Section 48A is repealed. 

7 (b) CONFORMING AMENDMENT.—Section 46 is 

8 amended by striking paragraph (3) and by redesignating 

9 paragraphs (4), (5), and (6) as paragraphs (3), (4), and 

10 (5), respectively. 

11 (c) CLERICAL AMENDMENT.—The table of sections 

12 for subpart E of part IV of subchapter A of chapter 1 

13 is amended by striking the item relating to section 48A. 

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

15 this section shall apply to property placed in service after 

16 December 31, 2014. 

17 SEC. 114. REPEAL OF QUALIFYING GASIFICATION PROJECT 

18 CREDIT. 

19 (a) IN GENERAL.—Section 48B is repealed. 

20 (b) CONFORMING AMENDMENT.—Section 46, as 

21 amended by this Act, is amended by striking paragraph 

22 (3) and by redesignating paragraphs (4) and (5) as para23 graphs (3) and (4), respectively. 


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1 (c) CLERICAL AMENDMENT.—The table of sections 

2 for subpart E of part IV of subchapter A of chapter 1 

3 is amended by striking the item relating to section 48B. 

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

5 this section shall apply to property placed in service after 

6 December 31, 2014. 

7 TITLE II—REDUCTION OF 

8 CORPORATE INCOME TAX RATE 

9 SEC. 201. CORPORATE INCOME TAX RATE REDUCED. 

10 (a) IN GENERAL.—Not later than 1 year after the 

11 date of the enactment of this Act, the Secretary of the 

12 Treasury shall prescribe a rate of tax in lieu of the rates 

13 under paragraphs (1) and (2) of section 11(b), section 

14 1201(a), and paragraphs (1), (2), and (6) of section 

15 1445(e) to such a flat rate as the Secretary estimates 

16 would result in— 

17 (1) a decrease in revenue to the Treasury for 

18 taxable years beginning during the 10-year period 

19 beginning on the date of the enactment of this Act, 

20 equal to 

21 (2) the increase in revenue for such taxable 

22 years by reason of the amendments made by title I 

23 of this Act. 

24 (b) EFFECTIVE DATE.—The rate prescribed by the 

25 Secretary under subsection (a) shall apply to taxable years 


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1 beginning more than 1 year after the date of the enact2 ment of this Act. 

Æ 


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