I 

110TH CONGRESS 

1ST SESSION H. R. 2555 

To amend the Internal Revenue Code of 1986 to extend the credit for 

electricity produced from certain renewable resources, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 24, 2007 

Mrs. WILSON of New Mexico 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 

the credit for electricity produced from certain renewable 

resources, 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. 

4 This Act may be cited as the ‘‘Renewable Energy 

5 Credit Extension Act of 2007’’. 

6 SEC. 2. EXTENSION OF RENEWABLE ENERGY CREDIT. 

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

8 (relating to qualified facilities) is amended by striking 

9 ‘‘January 1, 2009’’ each place it appears and inserting 

10 ‘‘January 1, 2014’’. 

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1 SEC. 3. TREATMENT OF PERSONS NOT ABLE TO USE EN2 TIRE CREDIT. 

3 (a) IN GENERAL.—Section 45(e) of the Internal Rev4 enue Code of 1986 (relating to definitions and special 

5 rules) is amended by adding at the end the following new 

6 paragraph: 

7 ‘‘(12) TREATMENT OF PERSONS NOT ABLE TO

8 USE ENTIRE CREDIT.— 

9 ‘‘(A) ALLOWANCE OF CREDIT.— 

10 ‘‘(i) IN GENERAL.—Except as other11 wise provided in this subsection— 

12 ‘‘(I) any credit allowable under 

13 subsection (a) with respect to a quali14 fied facility owned by a person de15 scribed in clause (ii) may be trans16 ferred or used as provided in this 

17 paragraph, and 

18 ‘‘(II) the determination as to 

19 whether the credit is allowable shall 

20 be made without regard to the tax-ex21 empt status of the person. 

22 ‘‘(ii) PERSONS DESCRIBED.—A person 

23 is described in this clause if the person 

24 is— 

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1 ‘‘(I) an organization described in 

2 section 501(c)(12)(C) and exempt 

3 from tax under section 501(a), 

4 ‘‘(II) an organization described 

5 in section 1381(a)(2)(C), 

6 ‘‘(III) a public utility (as defined 

7 in section 136(c)(2)(B)), which is ex8 empt from income tax under this sub9 title, 

10 ‘‘(IV) any State or political sub11 division thereof, the District of Co12 lumbia, any possession of the United 

13 States, or any agency or instrumen14 tality of any of the foregoing, or 

15 ‘‘(V) any Indian tribal govern16 ment (within the meaning of section 

17 7871) or any agency or instrumen18 tality thereof. 

19 ‘‘(B) TRANSFER OF CREDIT.— 

20 ‘‘(i) IN GENERAL.—A person de21 scribed in subparagraph (A)(ii) may trans22 fer any credit to which subparagraph 

23 (A)(i) applies through an assignment to 

24 any other person not described in subpara25 graph (A)(ii). Such transfer may be remstockstill on PROD1PC71 with BILLS

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1 voked only with the consent of the Sec2 retary. 

3 ‘‘(ii) REGULATIONS.—The Secretary 

4 shall prescribe such regulations as nec5 essary to ensure that any credit described 

6 in clause (i) is assigned once and not reas7 signed by such other person. 

8 ‘‘(iii) TRANSFER PROCEEDS TREATED

9 AS ARISING FROM ESSENTIAL GOVERN10 MENT FUNCTION.—Any proceeds derived 

11 by a person described in subclause (III), 

12 (IV), or (V) of subparagraph (A)(ii) from 

13 the transfer of any credit under clause (i) 

14 shall be treated as arising from the exer15 cise of an essential government function. 

16 ‘‘(C) CREDIT NOT INCOME.—Any transfer 

17 under subparagraph (B) of any credit to which 

18 subparagraph (A)(i) applies shall not be treated 

19 as income for purposes of section 501(c)(12). 

20 ‘‘(D) TREATMENT OF UNRELATED PER21 SONS.—For purposes of subsection (a)(2)(B), 

22 sales of electricity among and between persons 

23 described in subparagraph (A)(ii) shall be treat24 ed as sales between unrelated parties.’’. 

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

2 this section shall apply to electricity produced and sold 

3 after the date of the enactment of this Act, in taxable 

4 years ending after such date. 

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