I 

110TH CONGRESS 

1ST SESSION H. R. 1965 

To amend the Internal Revenue Code of 1986 to modify the credit to holders 

of clean renewable energy bonds. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 19, 2007 

Mr. POMEROY (for himself and Mr. LEWIS of Kentucky) 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 

the credit to holders of clean renewable energy bonds. 

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

3 SECTION 1. MODIFICATIONS TO CREDIT FOR CLEAN RE4 NEWABLE ENERGY BONDS. 

5 (a) ADDITIONAL PERIOD FOR REIMBURSEMENT OF

6 COSTS PAID BY BORROWER.—Subparagraph (C) of sec7 tion 54(d)(2) of the Internal Revenue Code of 1986 is 

8 amended by striking clause (iii) and inserting the fol9 lowing: 

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1 ‘‘(iii) the reimbursement is made not 

2 later than 18 months after the date the 

3 original expenditure is paid or, if later, the 

4 date that the project is placed in service or 

5 abandoned. 

6 In no event may the reimbursement under 

7 clause (iii) be made more than 3 years after the 

8 date the original expenditure is paid.’’. 

9 (b) CLARIFICATION OF RATABLE PRINCIPAL AMOR10 TIZATION REQUIREMENT.—Paragraph (5) of section 54(l) 

11 of such Code is amended to read as follows: 

12 ‘‘(5) RATABLE PRINCIPAL AMORTIZATION RE13 QUIRED.—A bond shall not be treated as a clean re14 newable energy bond unless it is part of an issue 

15 which provides for an equal amount of principal to 

16 be paid by the qualified issuer during each 12-month 

17 period that the issue is outstanding (other than the 

18 first 12-month period).’’. 

19 (c) MAXIMUM TERM OF ISSUE.—The second sentence 

20 of section 54(e)(2) of such Code is amended by inserting 

21 ‘‘the greater of 15 years or’’ after ‘‘Such maximum term 

22 shall be’’. 

23 (d) INCREASE IN AMOUNT OF BONDS DESIGNATED; 

24 EXTENSION THROUGH 2009.— 

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1 (1) IN GENERAL.—Subsection (f) of section 54 

2 of such Code is amended to read as follows: 

3 ‘‘(f) LIMITATION ON AMOUNT OF BONDS DES4 IGNATED.— 

5 ‘‘(1) NATIONAL LIMITATION.—There is a na6 tional clean renewable energy bond limitation for 

7 each calendar year. Such limitation is 

8 $1,000,000,000 for 2008 and 2009 and zero there9 after. 

10 ‘‘(2) ALLOCATION BY SECRETARY.—The na11 tional clean renewable energy bond limitation for a 

12 calendar year shall be allocated by the Secretary 

13 among qualified projects in such manner as the Sec14 retary determines appropriate, except that the Sec15 retary may not allocate more than $625,000,000 of 

16 such limitation for each calendar year to finance 

17 qualified projects of qualified borrowers which are 

18 governmental bodies.’’. 

19 (2) CONFORMING AMENDMENT.—Section 54 of 

20 such Code is amended by striking subsection (m). 

21 (e) EFFECTIVE DATE.— 

22 (1) IN GENERAL.—Except as provided in para23 graph (2), the amendments made by this section 

24 shall apply to obligations issued after December 31, 

25 2006. 

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1 (2) ANNUAL BOND LIMITATION.—The amend2 ments made by subsection (d) shall apply to obliga3 tions issued after December 31, 2007. 

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