II 

109TH CONGRESS 

2D SESSION S. 2401 

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

tax incentives, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 13, 2006 

Mr. GRASSLEY (for himself and Mr. BAUCUS) 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 

certain energy tax incentives, and for other purposes. 

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. 

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

5 ‘‘Alternative Energy Extender Act’’. 

6 (b) TABLE OF CONTENTS.—The table of contents of 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—ENERGY INFRASTRUCTURE TAX INCENTIVES 

Sec. 101. Extension of credit for electricity produced from certain renewable resources. 


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Sec. 102. Extension and expansion of credit to holders of clean renewable energy bonds. 

Sec. 103. Extension and expansion of qualifying advanced coal project credit. 

Sec. 104. Extension and expansion of qualifying gasification project credit. 

TITLE II—DOMESTIC FOSSIL FUEL SECURITY 

Sec. 201. Extension of election to expense certain refineries. 

TITLE III—CONSERVATION AND ENERGY EFFICIENCY 

PROVISIONS 

Sec. 301. Extension of energy efficient commercial buildings deduction. 

Sec. 302. Extension of new energy efficient home credit. 

Sec. 303. Extension of residential energy efficient property credit. 

Sec. 304. Extension of credit for business installation of qualified fuel cells and 

stationary microturbine power plants. 

Sec. 305. Extension of business solar investment tax credit. 

TITLE IV—ALTERNATIVE FUELS AND VEHICLES INCENTIVES 

Sec. 401. Extension of excise tax provisions, income tax credits, and tariff duties. 

1 TITLE I—ENERGY INFRASTRUC2 TURE TAX INCENTIVES 

3 SEC. 101. EXTENSION OF CREDIT FOR ELECTRICITY PRO4 DUCED FROM CERTAIN RENEWABLE RE5 SOURCES. 

6 Section 45(d) of the Internal Revenue Code of 1986 

7 (relating to qualified facilities) is amended by striking 

8 ‘‘2008’’ each place it appears and inserting ‘‘2011’’. 

9 SEC. 102. EXTENSION AND EXPANSION OF CREDIT TO 

10 HOLDERS OF CLEAN RENEWABLE ENERGY 

11 BONDS. 

12 (a) IN GENERAL.—Section 54(m) of the Internal 

13 Revenue Code of 1986 (relating to termination) is amend14 ed by striking ‘‘2007’’ and inserting ‘‘2010’’. 


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1 (b) ANNUAL VOLUME CAP FOR BONDS ISSUED DUR2 ING EXTENSION PERIOD.—Paragraph (1) of section 54(f) 

3 of the Internal Revenue Code of 1986 (relating to limita4 tion on amount of bonds designated) is amended to read 

5 as follows: 

6 ‘‘(1) NATIONAL LIMITATION.— 

7 ‘‘(A) INITIAL NATIONAL LIMITATION.— 

8 With respect to bonds issued after December 

9 31, 2005, and before January 1, 2008, there is 

10 a national clean renewable energy bond limita11 tion of $800,000,000. 

12 ‘‘(B) ANNUAL NATIONAL LIMITATION.— 

13 With respect to bonds issued after December 

14 31, 2007, and before January 1, 2011, there is 

15 a national clean renewable energy bond limita16 tion for each calendar year of $800,000,000.’’. 

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

18 this section shall apply to bonds issued after the date of 

19 the enactment of this Act. 

20 SEC. 103. EXTENSION AND EXPANSION OF QUALIFYING AD21 VANCED COAL PROJECT CREDIT. 

22 (a) IN GENERAL.—Section 48A(d)(3)(A) of the In23 ternal Revenue Code of 1986 (relating to aggregate cred24 its) is amended by striking ‘‘$1,300,000,000’’ and insert25 ing ‘‘$1,800,000,000’’. 


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1 (b) AUTHORIZATION OF ADDITIONAL INTEGRATED

2 GASIFICATION COMBINED CYCLE PROJECTS.—Subpara3 graph (B) of section 48A(d)(3) of te Internal Revenue 

4 Code of 1986 (relating to aggregate credits) is amended 

5 to read as follows: 

6 ‘‘(B) PARTICULAR PROJECTS.—Of the dol7 lar amount in subparagraph (A), the Secretary 

8 is authorized to certify— 

9 ‘‘(i) $800,000,000 for integrated gas10 ification combined cycle projects the appli11 cation for which is submitted during the 

12 period described in paragraph (2)(A)(i), 

13 ‘‘(ii) $500,000,000 for projects which 

14 use other advanced coal-based generation 

15 technologies the application for which is 

16 submitted during the period described in 

17 paragraph (2)(A)(i), and 

18 ‘‘(iii) $500,000,000 for integrated 

19 gasification combined cycle projects the ap20 plication for which is submitted during the 

21 period described in paragraph (2)(A)(ii).’’. 

22 (c) APPLICATION PERIOD FOR ADDITIONAL

23 PROJECTS.—Subparagraph (A) of section 48A(d)(2) of 

24 the Internal Revenue Code of 1986 (relating to certifi25 cation) is amended to read as follows: 


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1 ‘‘(A) APPLICATION PERIOD.—Each appli2 cant for certification under this paragraph shall 

3 submit an application meeting the requirements 

4 of subparagraph (B). An applicant may only 

5 submit an application— 

6 ‘‘(i) for an allocation from the dollar 

7 amount specified in clause (i) or (ii) of 

8 paragraph (3)(A) during the 3-year period 

9 beginning on the date the Secretary estab10 lishes the program under paragraph (1), 

11 and 

12 ‘‘(ii) for an allocation from the dollar 

13 amount specified in paragraph (3)(A)(iii) 

14 during the 3-year period beginning at the 

15 termination of the period described in 

16 clause (i).’’. 

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

18 this section shall take effect as if included in the amend19 ments made by section 1307 of the Energy Policy Act of 

20 2005. 

21 SEC. 104. EXTENSION AND EXPANSION OF QUALIFYING 

22 GASIFICATION PROJECT CREDIT. 

23 (a) IN GENERAL.—Section 48B(d)(1) of the Internal 

24 Revenue Code of 1986 (relating to qualifying gasification 


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1 project program) is amended by striking ‘‘$350,000,000’’ 

2 and inserting ‘‘$850,000,000’’. 

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

4 this section shall take effect as if included in the amend5 ments made by section 1307 of the Energy Policy Act of 

6 2005. 

7 TITLE II—DOMESTIC FOSSIL 

8 FUEL SECURITY 

9 SEC. 201. EXTENSION OF ELECTION TO EXPENSE CERTAIN 

10 REFINERIES. 

11 (a) IN GENERAL.—Section 179C(c)(1) of the Inter12 nal Revenue Code of 1986 (defining qualified refinery 

13 property) is amended— 

14 (1) by striking ‘‘and before January 1, 2012’’ 

15 in subparagraph (B) and inserting ‘‘and, in the case 

16 of any qualified refinery described in subsection 

17 (d)(1), before January 1, 2012’’, and 

18 (2) by inserting ‘‘if described in subsection 

19 (d)(1)’’ after ‘‘of which’’ in subparagraph (F)(i). 

20 (b) CONFORMING AMENDMENT.—Subsection (d) of 

21 section 179C of the Internal Revenue Code of 1986 is 

22 amended to read as follows: 

23 ‘‘(d) QUALIFIED REFINERY.—For purposes of this 

24 section, the term ‘qualified refinery’ means any refinery 


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1 located in the United States which is designed to serve 

2 the primary purpose of processing liquid fuel from— 

3 ‘‘(1) crude oil, or 

4 ‘‘(2) qualified fuels (as defined in section 

5 45K(c)).’’. 

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

7 this section shall take effect as if included in the amend8 ment made by section 1323(a) of the Energy Policy Act 

9 of 2005. 

10 TITLE III—CONSERVATION AND 

11 ENERGY EFFICIENCY PROVI12 SIONS 

13 SEC. 301. EXTENSION OF ENERGY EFFICIENT COMMERCIAL 

14 BUILDINGS DEDUCTION. 

15 Section 179D(h) of the Internal Revenue Code of 

16 1986 (relating to termination) is amended by striking 

17 ‘‘2007’’ and inserting ‘‘2010’’. 

18 SEC. 302. EXTENSION OF NEW ENERGY EFFICIENT HOME 

19 CREDIT. 

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

21 the Internal Revenue Code of 1986 (relating to new energy 

22 efficient home credit) is amended to read as follows: 

23 ‘‘(g) TERMINATION.—This section shall not apply 

24 to— 


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1 ‘‘(1) any qualified new energy efficient home 

2 meeting the energy saving requirements of sub3 section (c)(1) acquired after December 31, 2010, 

4 and 

5 ‘‘(2) any qualified new energy efficient home 

6 meeting the energy saving requirements of para7 graph (2) or (3) of subsection (c) acquired after De8 cember 31, 2007.’’. 

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

10 this section shall take effect as if included in the amend11 ments made by section 1332 of the Energy Policy Act of 

12 2005. 

13 SEC. 303. EXTENSION OF RESIDENTIAL ENERGY EFFICIENT 

14 PROPERTY CREDIT. 

15 Section 25D(g) of the Internal Revenue Code of 1986 

16 (relating to termination) is amended by striking ‘‘2007’’ 

17 and inserting ‘‘2010’’. 

18 SEC. 304. EXTENSION OF CREDIT FOR BUSINESS INSTALLA19 TION OF QUALIFIED FUEL CELLS AND STA20 TIONARY MICROTURBINE POWER PLANTS. 

21 Sections 48(c)(1)(E) and 48(c)(2)(E) of the Internal 

22 Revenue Code of 1986 (relating to termination) are each 

23 amended by striking ‘‘2007’’ and inserting ‘‘2010’’. 


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1 SEC. 305. EXTENSION OF BUSINESS SOLAR INVESTMENT 

2 TAX CREDIT. 

3 Sections 48(a)(2)(A)(i)(II) and 48(a)(3)(A)(ii) of the 

4 Internal Revenue Code of 1986 (relating to termination) 

5 are each amended by striking ‘‘2008’’ and inserting 

6 ‘‘2011’’. 

7 TITLE IV—ALTERNATIVE FUELS 

8 AND VEHICLES INCENTIVES 

9 SEC. 401. EXTENSION OF EXCISE TAX PROVISIONS, INCOME 

10 TAX CREDITS, AND TARIFF DUTIES. 

11 (a) BIODIESEL.—Sections 40A(g), 6426(c)(6), and 

12 6427(e)(5)(B) of the Internal Revenue Code of 1986 are 

13 each amended by striking ‘‘2008’’ and inserting ‘‘2010’’. 

14 (b) ALTERNATIVE FUEL.— 

15 (1) FUELS.—Sections 6426(d)(4) and 

16 6427(e)(5)(C) of the Internal Revenue Code of 1986 

17 are each amended by striking ‘‘September 30, 2009’’ 

18 and inserting ‘‘December 31, 2010’’. 

19 (2) REFUELING PROPERTY.—Section 30C(g) of 

20 such Code is amended by striking ‘‘2009’’ and in21 serting ‘‘2010’’. 

22 (c) ETHANOL TARIFF SCHEDULE.—Headings 

23 9901.00.50 and 9901.00.52 of the Harmonized Tariff 

24 Schedule of the United States (19 U.S.C. 3007) are each 

25 amended in the effective period column by striking ‘‘10/ 

26 1/2007’’ each place it appears and inserting ‘‘1/1/2011’’. 


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

2 this section shall take effect on January 1, 2007. 

Æ 


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