II

106TH CONGRESS

1ST SESSION S. 984

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

for electricity produced from certain renewable resources.

IN THE SENATE OF THE UNITED STATES

MAY 6, 1999

Ms. COLLINS (for herself and Mrs. BOXER) 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 modify

the tax credit for electricity produced from certain renewable resources.

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 ELECTRICITY

4 PRODUCED FROM RENEWABLE RESOURCES.

5 (a) QUALIFIED FACILITIES INCLUDE ALL BIOMASS

6 FACILITIES.—

7 (1) IN GENERAL.—Subparagraph (B) of section

8 45(c)(1) of the Internal Revenue Code of 1986 (re9 lating to credit for electricity produced from certain

10 renewable resources) is amended to read as follows:
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1 ‘‘(B) biomass.’’

2 (2) BIOMASS DEFINED.—Paragraph (2) of sec3 tion 45(c) of such Code is amended to read as fol4 lows:

5 ‘‘(2) BIOMASS.—The term ‘biomass’ means—

6 ‘‘(A) any organic material from a plant

7 which is planted exclusively for purposes of

8 being used at a qualified facility to produce

9 electricity, or

10 ‘‘(B) any solid, nonhazardous, cellulosic

11 waste material which is segregated from other

12 waste materials and which is derived from—

13 ‘‘(i) any of the following forest-related

14 resources: mill residues, precommercial

15 thinnings, slash, and brush, but not includ16 ing old-growth timber,

17 ‘‘(ii) waste pallets, crates, and

18 dunnage, manufacturing and construction

19 wood wastes (other than pressure-treated,

20 chemically-treated, or painted wood

21 wastes), and landscape or right-of-way tree

22 trimmings, but not including unsegregated

23 municipal solid waste (garbage),

24 ‘‘(iii) agriculture sources, including or25 chard tree crops, vineyard, grain, legumes,
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1 sugar, and other crop by-products or resi2 dues, or

3 ‘‘(iv) poultry waste.’’

4 (b) EXTENSION AND MODIFICATION OF PLACED IN

5 SERVICE RULES.—Paragraph (3) of section 45(c) of the

6 Internal Revenue Code of 1986 is amended to read as fol7 lows:

8 ‘‘(3) QUALIFIED FACILITY.—

9 ‘‘(A) WIND FACILITIES.—In the case of a

10 facility using wind to produce electricity, the

11 term ‘qualified facility’ means any facility

12 owned by the taxpayer which is originally

13 placed in service after December 31, 1993, and

14 before July 1, 2009.

15 ‘‘(B) BIOMASS FACILITIES.—In the case of

16 a facility using biomass to produce electricity,

17 the term ‘qualified facility’ means, with respect

18 to any month, any facility owned or leased by

19 the taxpayer which is originally placed in serv20 ice before July 1, 2009, if, for such month, bio21 mass comprises not less than 75 percent (on a

22 Btu basis) of the average monthly fuel input of

23 the facility for the taxable year which includes

24 such month.
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1 ‘‘(C) SPECIAL RULES.—In the case of a

2 qualified facility described in subparagraph

3 (B)—

4 ‘‘(i) the 10-year period referred to in

5 subsection (a) shall be treated as beginning

6 not earlier than the date of the enactment

7 of this paragraph, and

8 ‘‘(ii) subsection (b)(3) shall not apply

9 to any such facility originally placed in

10 service before January 1, 1997.’’

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

12 this section shall apply to electricity produced after the

13 date of the enactment of this Act.

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