I 

110TH CONGRESS 

1ST SESSION H. R. 2691 

To amend the Internal Revenue Code of 1986 to provide additional incentives 

for facilities producing electricity from wind. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 12, 2007 

Mr. WALZ of Minnesota (for himself, Mr. PETERSON of Minnesota, Mr. 

ELLISON, Ms. MCCOLLUM of Minnesota, Ms. KAPTUR, and Mr. BOSWELL) 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 provide 

additional incentives for facilities producing electricity 

from wind. 

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

3 SECTION 1. PARTIAL EXEMPTION FROM PASSIVE ACTIVITY 

4 LIMITATIONS FOR QUALIFIED WIND FACILI5 TIES. 

6 (a) IN GENERAL.—Section 469 of the Internal Rev7 enue Code of 1986 (relating to passive activity losses and 

8 credits limited) is amended by redesignating subsections 

9 (l) and (m) as subsections (m) and (n), respectively, and 


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1 by inserting after subsection (k) the following new sub2 section: 

3 ‘‘(l) $40,000 OFFSET FOR QUALIFIED WIND FACILI4 TIES.— 

5 ‘‘(1) IN GENERAL.—In the case of any natural 

6 person, subsection (a) shall not apply to that portion 

7 of the passive activity loss or the deduction equiva8 lent (within the meaning of subsection (j)(5)) of the 

9 passive activity credit for any taxable year which is 

10 attributable to any interest of such person in a facil11 ity described in section 45(d)(1) (relating to wind fa12 cility). 

13 ‘‘(2) DOLLAR LIMITATION.—The aggregate 

14 amount to which paragraph (1) applies for any tax15 able year shall not exceed $40,000. 

16 ‘‘(3) SPECIAL RULE FOR ESTATES.— 

17 ‘‘(A) IN GENERAL.—In the case of taxable 

18 years of an estate ending less than 2 years after 

19 the date of the death of the decedent, this sub20 section shall apply to any interest in a facility 

21 described in section 45(d)(1) (relating to wind 

22 facility) held by the decedent on the date of his 

23 death. 

24 ‘‘(B) REDUCTION FOR SURVIVING

25 SPOUSE’S EXEMPTION.—For purposes of subVerDate Aug 31 2005 23:16 Jun 13, 2007 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2691.IH H2691

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1 paragraph (A), the $40,000 amount under 

2 paragraph (2) shall be reduced by the amount 

3 of the exemption under paragraph (1) allowable 

4 to the surviving spouse of the decedent for the 

5 taxable year ending with or within the taxable 

6 year of the estate. 

7 ‘‘(4) MARRIED INDIVIDUALS FILING SEPA8 RATELY.— 

9 ‘‘(A) IN GENERAL.—Except as provided in 

10 subparagraph (B), in the case of any married 

11 individual filing a separate return, this sub12 section shall be applied by substituting 

13 ‘$20,000’ for ‘$40,000’ each place it appears. 

14 ‘‘(B) TAXPAYERS NOT LIVING APART.— 

15 This subsection shall not apply to a taxpayer 

16 who— 

17 ‘‘(i) is a married individual filing a 

18 separate return for any taxable year, and 

19 ‘‘(ii) does not live apart from his 

20 spouse at all times during such taxable 

21 year.’’. 

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

23 this section shall apply to losses and credits taken into 

24 account in taxable years beginning after the date of the 

25 enactment of this Act. 


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1 SEC. 2. CREDIT FOR ELECTRICITY PRODUCED FROM 

2 QUALIFIED WIND FACILITIES ALLOWED 

3 AGAINST ALTERNATIVE MINIMUM TAX. 

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

5 38(c)(4) of the Internal Revenue Code of 1986 (relating 

6 to specified credits) is amended— 

7 (1) by striking ‘‘and’’ at the end of clause (i), 

8 (2) by inserting ‘‘(other than a facility de9 scribed in clause (iii))’’ after ‘‘facility’’ in clause 

10 (ii)(I), 

11 (3) by striking the period at the end of clause 

12 (ii) and inserting ‘‘, and’’, and 

13 (4) by adding at the end the following new 

14 clause: 

15 ‘‘(iii) the credit determined under sec16 tion 45 to the extent that such credit is at17 tributable to electricity produced at a facil18 ity described in section 45(d)(1) (relating 

19 to wind facility).’’. 

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

21 this section shall apply to taxable years beginning after 

22 the date of the enactment of this Act. 

Æ 


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