II 

Calendar No. 309 

112TH CONGRESS 

2D SESSION S. 2064 

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

tax subsidies and lower the corporate income tax rate. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 2, 2012 

Mr. DEMINT (for himself and Mr. LEE) introduced the following bill; which 

was read the first time 

FEBRUARY 6, 2012 

Read the second time and placed on the calendar 

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 amendVerDate Mar 15 2010 00:06 Feb 07, 2012 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S2064.PCS S2064

smartinez on DSK6TPTVN1PROD with BILLS
2 

•S 2064 PCS

1 ment or repeal is expressed in terms of an amendment 

2 to, or repeal of, a section or other provision, the reference 

3 shall be considered to be made to a section or other provi4 sion of the Internal Revenue Code of 1986. 

5 (c) TABLE OF CONTENTS.—The table of contents for 

6 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. Repeal of credit for certain plug-in electric vehicles. 

Sec. 103. Early termination of credit for qualified fuel cell 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. 

Sec. 115. Repeal of American Recovery and Reinvestment Act of 2009 energy 

grant program. 

TITLE II—REDUCTION OF CORPORATE INCOME TAX RATE 

Sec. 201. Corporate income tax rate reduced. 

7 TITLE I—REPEAL OF ENERGY 

8 TAX SUBSIDIES 

9 SEC. 101. REPEAL OF CREDIT FOR ALCOHOL FUEL, BIO10 DIESEL, AND ALTERNATIVE FUEL MIXTURES. 

11 (a) IN GENERAL.—Section 6426 is repealed. 

12 (b) CONFORMING AMENDMENTS.— 


smartinez on DSK6TPTVN1PROD with BILLS
3 

•S 2064 PCS

1 (1) Subparagraph (D) of section 6427(e)(6) of 

2 such Code is amended by striking ‘‘September 30, 

3 2014’’ and inserting ‘‘September 30, 2012’’. 

4 (2) Paragraph (1) of section 4101(a) is amend5 ed by striking ‘‘or alcohol (as defined in section 

6 6426(b)(4)(A)’’. 

7 (3) Paragraph (2) of section 4104(a) is amend8 ed by striking ‘‘6426, or 6427(e)’’. 

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

10 amended— 

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

12 before the date of the enactment of the Energy 

13 Freedom and Economic Prosperity Act)’’ after 

14 ‘‘of section 6426’’, and 

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

16 ‘‘section 6426(b)(4)(A)’’. 

17 (5) Paragraph (1) of section 9503(b) is amend18 ed by striking the second sentence. 

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

20 for subchapter B of chapter 65 is amended by striking 

21 the item relating to section 6426. 

22 (d) EFFECTIVE.—The amendments made by this sec23 tion shall apply with respect to fuel sold and used after 

24 December 31, 2012. 


smartinez on DSK6TPTVN1PROD with BILLS
4 

•S 2064 PCS

1 SEC. 102. REPEAL OF CREDIT FOR CERTAIN PLUG-IN ELEC2 TRIC VEHICLES. 

3 (a) IN GENERAL.—Section 30 is repealed. 

4 (b) CONFORMING AMENDMENTS.— 

5 (1) Paragraph (3) of section 24(b) is amended 

6 by striking ‘‘, 30’’. 

7 (2) Clause (ii) of section 25(e)(1)(C) is amend8 ed by striking ‘‘, 30’’. 

9 (3) Paragraph (2) of section 25B(g) is amended 

10 by striking ‘‘, 30’’. 

11 (4) Paragraph (1) of section 26(a) is amended 

12 by striking ‘‘, 30’’. 

13 (5) Subclause (VI) of section 48C(c)(1)(A)(i) is 

14 amended by inserting ‘‘(as in effect on the day be15 fore the date of the enactment of the Energy Free16 dom and Economic Prosperity Act)’’ after ‘‘section 

17 30(d)’’. 

18 (6) Paragraph (3) of section 179A(c) is amend19 ed by inserting ‘‘(as in effect on the day before the 

20 date of the enactment of the Energy Freedom and 

21 Economic Prosperity Act)’’ after section ‘‘30(c)’’. 

22 (7) Subsection (a) of section 1016 is amended 

23 by striking paragraph (25) and by redesignating 

24 paragraphs (26) through (37) as paragraphs (25) 

25 through (36), respectively. 


smartinez on DSK6TPTVN1PROD with BILLS
5 

•S 2064 PCS

1 (8) Subsection (m) of section 6501 is amended 

2 by striking ‘‘30(e)(6)’’. 

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

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

5 is amended by striking the item relating to section 30. 

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

7 this section shall apply to property placed in service after 

8 December 31, 2011. 

9 SEC. 103. EARLY TERMINATION OF CREDIT FOR QUALIFIED 

10 FUEL CELL MOTOR VEHICLES. 

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

12 (b) CONFORMING AMENDMENTS.— 

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

14 amended by striking ‘‘, 30B’’. 

15 (2) Clause (ii) of section 25(e)(1)(C) is amend16 ed by striking ‘‘, 30B’’. 

17 (3) Paragraph (2) of section 25B(g) is amended 

18 by striking ‘‘, 30B,’’. 

19 (4) Paragraph (1) of section 26(a) is amended 

20 by striking ‘‘, 30B’’. 

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

22 striking paragraph (25). 

23 (6) Subsection (a) of section 1016, as amended 

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

25 paragraph (33) and by redesignating paragraphs 


smartinez on DSK6TPTVN1PROD with BILLS
6 

•S 2064 PCS

1 (34), (35), and (36) as paragraphs (33), (34), and 

2 (35), respectively. 

3 (7) Paragraph (2) of section 1400C(d) is 

4 amended by striking ‘‘, 30B’’. 

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

6 by striking ‘‘, 30B(h)(9)’’. 

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

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

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

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

11 this section shall apply to property placed in service after 

12 December 31, 2012. 

13 SEC. 104. REPEAL OF ALTERNATIVE FUEL VEHICLE RE14 FUELING PROPERTY CREDIT. 

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

16 (b) CONFORMING AMENDMENTS.— 

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

18 striking paragraph (26). 

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

20 by striking ‘‘, 30C(d)(2),’’. 

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

22 by sections 102 and 103 of this Act, is amended by 

23 striking paragraph (33) and by redesignating para24 graph (34) and (35) as paragraphs (33) and (34), 

25 respectively. 


smartinez on DSK6TPTVN1PROD with BILLS
7 

•S 2064 PCS

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

2 by striking ‘‘, 30C(e)(5)’’. 

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

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

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

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

7 this section shall apply to property placed in service after 

8 December 31, 2012. 

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

10 FUEL. 

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

12 (b) CONFORMING AMENDMENTS.— 

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

14 striking paragraph (3). 

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

16 striking paragraph (3) and by redesignating para17 graphs (4) through (14) as paragraphs (3) through 

18 (13), respectively. 

19 (3) Paragraph (1) of section 4101(a) is amend20 ed by striking ‘‘, and every person producing cellu21 losic biofuel (as defined in section 40(b)(6)(E))’’. 

22 (4) Paragraph (1) of section 4104(a) is amend23 ed by striking ‘‘, 40’’. 


smartinez on DSK6TPTVN1PROD with BILLS
8 

•S 2064 PCS

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

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

3 is amended by striking the item relating to section 40. 

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

5 this section shall apply to fuel sold or used after December 

6 31, 2012. 

7 SEC. 106. REPEAL OF CREDIT FOR BIODIESEL AND RENEW8 ABLE DIESEL USED AS FUEL. 

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

10 (b) CONFORMING AMENDMENT.— 

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

12 striking paragraph (17). 

13 (2) Section 87 is repealed. 

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

15 by section 106 of this Act, is amended by striking 

16 paragraph (11) and by redesignating paragraphs 

17 (11), (12), and (13) as paragraphs (10), (11), and 

18 (12), respectively. 

19 (4) Paragraph (1) of section 4101(a) is amend20 ed by striking ‘‘, every person producing or import21 ing biodiesel (as defined in section 40A(d)(1)’’. 

22 (5) Paragraph (1) of section 4104(a) is amend23 ed by striking ‘‘, and 40A’’. 


smartinez on DSK6TPTVN1PROD with BILLS
9 

•S 2064 PCS

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

2 amended by inserting ‘‘(as so in effect)’’ after ‘‘sec3 tion 40A(d)(1)’’. 

4 (c) CLERICAL AMENDMENTS.— 

5 (1) The table of sections for subpart D of part 

6 IV of subchapter A of chapter 1 is amended by 

7 striking the item relating to section 40A. 

8 (2) The table of sections for part II of sub9 chapter A of chapter 1 is amended by striking the 

10 item relating to section 87. 

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

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

13 after December 31, 2011. 

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

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

16 (b) CONFORMING AMENDMENTS.— 

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

18 striking paragraph (6). 

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

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

21 of the enactment of the Energy Freedom and Eco22 nomic Prosperity Act)’’ after ‘‘section 43(c)(2)’’. 

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

24 by sections 106 and 107 of this Act, is amended by 

25 striking paragraph (5) and by redesignating paraVerDate Mar 15 2010 00:06 Feb 07, 2012 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S2064.PCS S2064

smartinez on DSK6TPTVN1PROD with BILLS
10 

•S 2064 PCS

1 graphs (6) through (12) as paragraphs (5) through 

2 (11), respectively. 

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

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

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

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

7 this section shall apply to costs paid or incurred in taxable 

8 years beginning after December 31, 2012. 

9 SEC. 108. TERMINATION OF CREDIT FOR ELECTRICITY 

10 PRODUCED FROM CERTAIN RENEWABLE RE11 SOURCES. 

12 (a) IN GENERAL.—Subsection (d) of section 45 is 

13 amended— 

14 (1) by striking ‘‘2013’’ in paragraph (1) and in15 serting ‘‘2012’’, and 

16 (2) by striking ‘‘2014’’ each place it appears in 

17 paragraphs (2), (3), (4), (6), (7), (9), and (11) and 

18 inserting ‘‘2012’’. 

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

20 this section shall apply to property placed in service after 

21 December 31, 2012. 

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

23 GAS FROM MARGINAL WELLS. 

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


smartinez on DSK6TPTVN1PROD with BILLS
11 

•S 2064 PCS

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

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

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

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

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

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

7 this section shall apply to production in taxable years be8 ginning after December 31, 2012. 

9 SEC. 110. TERMINATION OF CREDIT FOR PRODUCTION 

10 FROM ADVANCED NUCLEAR POWER FACILI11 TIES. 

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

13 45J(d)(1) is amended by striking ‘‘January 1, 2021’’ and 

14 inserting ‘‘January 1, 2013’’. 

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

16 this section shall apply to property placed in service after 

17 December 31, 2012. 

18 SEC. 111. REPEAL OF CREDIT FOR CARBON DIOXIDE SE19 QUESTRATION. 

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

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

22 section 38 is amended by striking paragraph (34). 

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 45Q. 


smartinez on DSK6TPTVN1PROD with BILLS
12 

•S 2064 PCS

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

2 this section shall apply to carbon dioxide captured after 

3 December 31, 2012. 

4 SEC. 112. TERMINATION OF ENERGY CREDIT. 

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

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

7 it appears and inserting ‘‘January 1, 2013’’, 

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

9 place it appears and inserting ‘‘December 31, 

10 2012’’, and 

11 (3) by striking ‘‘2012, or 2013’’ in subsection 

12 (a)(5)(C)(ii) and inserting ‘‘or 2012’’. 

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

14 this section shall apply to property placed in service after 

15 December 31, 2012. 

16 SEC. 113. REPEAL OF QUALIFYING ADVANCED COAL 

17 PROJECT. 

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

19 (b) CONFORMING AMENDMENT.—Section 46 is 

20 amended by striking paragraph (3) and by redesignating 

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

22 (5), respectively. 

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

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

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


smartinez on DSK6TPTVN1PROD with BILLS
13 

•S 2064 PCS

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

2 this section shall apply to property placed in service after 

3 December 31, 2012. 

4 SEC. 114. REPEAL OF QUALIFYING GASIFICATION PROJECT 

5 CREDIT. 

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

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

8 amended by this Act, is amended by striking paragraph 

9 (3) and by redesignating paragraphs (4) and (5) as para10 graphs (3) and (4), 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 48B. 

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

15 this section shall apply to property placed in service after 

16 December 31, 2012. 

17 SEC. 115. REPEAL OF AMERICAN RECOVERY AND REIN18 VESTMENT ACT OF 2009 ENERGY GRANT PRO19 GRAM. 

20 (a) IN GENERAL.—Section 1603 of division B of the 

21 American Recovery and Reinvestment Act of 2009 is re22 pealed. 

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

24 this section shall apply to property placed in service after 

25 December 31, 2011. 


smartinez on DSK6TPTVN1PROD with BILLS
14 

•S 2064 PCS

1 TITLE II—REDUCTION OF 

2 CORPORATE INCOME TAX RATE 

3 SEC. 201. CORPORATE INCOME TAX RATE REDUCED. 

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

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

6 Treasury shall prescribe proportionate modifications to 

7 each of the rates of tax under paragraph (1) of section 

8 11(b) of the Internal Revenue Code of 1986 such that— 

9 (1) the decrease in revenue to the Treasury for 

10 taxable years beginning during the 10-year period 

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

12 as estimated by the Secretary, is equal to 

13 (2) the increase in revenue for such taxable 

14 years by reason of the amendments made by title I 

15 of this Act, as estimated by the Secretary. 

16 The appropriate corresponding changes shall be made to 

17 the dollar amounts contained in the last 2 sentences of 

18 section 11(b)(1) of such Code and to the rates of tax 

19 under section 11(b)(2) of such Code, section 1201(a) of 

20 such Code, and paragraphs (1), (2), and (6) of section 

21 1445(e) of such Code. 

22 (b) EFFECTIVE DATE.—The rates prescribed by the 

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

24 beginning more than 1 year after the date of the enact25 ment of this Act. 


smartinez on DSK6TPTVN1PROD with BILLS

smartinez on DSK6TPTVN1PROD with BILLS
Calendar No. 309 

112TH CONGRESS 

2D SESSION S. 2064 

A BILL 

To amend the Internal Revenue Code of 1986 to 

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

FEBRUARY 6, 2012 

Read the second time and placed on the calendar 


smartinez on DSK6TPTVN1PROD with BILLS