I 

116TH CONGRESS 

1ST SESSION H. R. 2704 

To amend the Internal Revenue Code of 1986 to allow for transfers of 

the renewable electricity production credit and the energy credit. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 14, 2019 

Mr. BLUMENAUER (for himself and Mr. LAHOOD) 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 allow for 

transfers of the renewable electricity production credit 

and the energy credit. 

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 Transferability Act’’. 

6 SEC. 2. TRANSFERS OF CREDITS FOR RENEWABLE ELEC7 TRICITY PRODUCTION FACILITIES AND EN8 ERGY PROPERTY. 

9 (a) RENEWABLE ELECTRICITY PRODUCTION CRED10 IT.—Section 45(e) of the Internal Revenue Code of 1986 


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1 is amended by adding at the end the following new para2 graph: 

3 ‘‘(12) TRANSFER OF CREDIT.— 

4 ‘‘(A) IN GENERAL.—If the taxpayer elects 

5 to transfer all (or any portion specified in the 

6 election) of the credit determined under this 

7 section for any taxable year with respect to any 

8 qualified facility to an eligible project partner 

9 for a specified period, then, the eligible project 

10 partner specified in such election (and not the 

11 taxpayer) shall be treated for purposes of this 

12 title with respect to such credit (or such portion 

13 thereof) as the person producing and selling the 

14 electricity to which such credit (or portion 

15 thereof) relates. 

16 ‘‘(B) DEDUCTION FOR PAYMENTS IN CON17 NECTION WITH TRANSFER.—There shall be al18 lowed as a deduction under part VI of sub19 chapter B an amount equal to the amount paid 

20 by a taxpayer as consideration for a transfer 

21 described in subparagraph (A). 

22 ‘‘(C) ELIGIBLE PROJECT PARTNER.—For 

23 purposes of this paragraph, the term ‘eligible 

24 project partner’ means, with respect to any 

25 qualified facility, any person who— 


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1 ‘‘(i) has an ownership interest in such 

2 qualified facility, 

3 ‘‘(ii) provided equipment for or serv4 ices in the construction of such qualified 

5 facility, 

6 ‘‘(iii) provides electric transmission or 

7 distribution services for such qualified fa8 cility, 

9 ‘‘(iv) purchases electricity from such 

10 qualified facility pursuant to a contract, or 

11 ‘‘(v) provides financing for such quali12 fied facility. 

13 For purposes of clause (v), any amount paid as 

14 consideration for a transfer described in sub15 paragraph (A) shall not be treated as financing 

16 of a qualified facility. 

17 ‘‘(D) TAXABLE YEAR IN WHICH CREDIT

18 TAKEN INTO ACCOUNT.—In the case of any 

19 credit (or portion thereof) with respect to which 

20 an election is made under subparagraph (A), 

21 such credit shall be taken into account in the 

22 first taxable year of the eligible project partner 

23 ending with, or after, the electing taxpayer’s 

24 taxable year with respect to which the credit 

25 was determined. 


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1 ‘‘(E) LIMITATIONS ON ELECTION.— 

2 ‘‘(i) TIME FOR ELECTION.—An elec3 tion under this paragraph to transfer any 

4 portion of the credit allowed under this 

5 paragraph shall be made not later than the 

6 due date for the return of tax for the elect7 ing taxpayer’s taxable year with respect to 

8 which the credit was determined 

9 ‘‘(ii) NO FURTHER TRANSFERS.—No 

10 election may be made under this paragraph 

11 by a taxpayer with respect to any portion 

12 of the credit allowed under this section 

13 which has been previously transferred to 

14 such taxpayer under this paragraph. 

15 ‘‘(F) TREATMENT OF TRANSFER UNDER

16 PRIVATE USE RULES.—For purposes of section 

17 141(b)(1), any benefit derived by an eligible 

18 project partner in connection with an election 

19 under this subsection shall not be taken into ac20 count as a private business use. 

21 ‘‘(G) ADDITIONAL ELECTION REQUIRE22 MENTS.—The Secretary may prescribe such 

23 regulations as may be appropriate to carry out 

24 the purposes of this paragraph, including— 


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1 ‘‘(i) rules for determining which per2 sons are eligible project partners with re3 spect to any energy property, and 

4 ‘‘(ii) requiring information to be in5 cluded in an election under subparagraph 

6 (A) or imposing additional reporting re7 quirements.’’. 

8 (b) ENERGY CREDIT.— 

9 (1) IN GENERAL.—Section 48 of the Internal 

10 Revenue Code of 1986 is amended by adding at the 

11 end the following new subsection: 

12 ‘‘(e) TRANSFER OF CREDIT.— 

13 ‘‘(1) IN GENERAL.—If the taxpayer elects to 

14 transfer all (or any portion specified in the election) 

15 of the credit determined under this section for any 

16 taxable year with respect to any energy property to 

17 an eligible project partner, the eligible project part18 ner specified in such election (and not the taxpayer) 

19 shall be treated as the taxpayer for purposes of this 

20 title with respect to such credit (or portion thereof). 

21 ‘‘(2) DEDUCTION FOR PAYMENTS IN CONNEC22 TION WITH TRANSFER.—There shall be allowed as a 

23 deduction under part VI of subchapter B an amount 

24 equal to the amount paid by a taxpayer as consider25 ation for a transfer described in paragraph (1). 


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1 ‘‘(3) ELIGIBLE PROJECT PARTNER.—For pur2 poses of this subparagraph, the term ‘eligible project 

3 partner’ means, with respect to any energy property, 

4 any person who— 

5 ‘‘(A) has an ownership interest in such en6 ergy property, 

7 ‘‘(B) provided equipment for or services in 

8 the construction of such energy property, 

9 ‘‘(C) provides electric transmission or dis10 tribution services for such energy property, 

11 ‘‘(D) purchases electricity from such quali12 fied facility pursuant to a contract, or 

13 ‘‘(E) provides financing for such energy 

14 property. 

15 For purposes of subparagraph (E), any amount paid 

16 as consideration for a transfer described in para17 graph (1) shall not be treated as financing of a 

18 qualified facility. 

19 ‘‘(4) TAXABLE YEAR IN WHICH CREDIT TAKEN

20 INTO ACCOUNT.—In the case of any credit (or por21 tion thereof) with respect to which an election is 

22 made under paragraph (1), such credit shall be 

23 taken into account in the first taxable year of the el24 igible project partner ending with, or after, the electVerDate Sep 11 2014 05:33 May 23, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H2704.IH H2704

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1 ing taxpayer’s taxable year with respect to which the 

2 credit was determined. 

3 ‘‘(5) LIMITATIONS ON ELECTION.— 

4 ‘‘(A) TIME FOR ELECTION.—An election 

5 under this subsection to transfer any portion of 

6 the credit allowed under this section shall be 

7 made not later than the due date for the return 

8 of tax for the electing taxpayer’s taxable year 

9 with respect to which the credit was deter10 mined. 

11 ‘‘(B) NO FURTHER TRANSFERS.—No elec12 tion may be made under this paragraph by a 

13 taxpayer with respect to any portion of the 

14 credit allowed under this section which has been 

15 previously transferred to such taxpayer under 

16 this subsection. 

17 ‘‘(6) TREATMENT OF TRANSFER UNDER PRI18 VATE USE RULES.—For purposes of section 

19 141(b)(1), any benefit derived by an eligible project 

20 partner in connection with an election under this 

21 subsection shall not be taken into account as a pri22 vate business use. 

23 ‘‘(7) ADDITIONAL ELECTION REQUIREMENTS.— 

24 The Secretary may prescribe such regulations as 


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1 may be appropriate to carry out the purposes of this 

2 subsection, including— 

3 ‘‘(A) rules for determining which persons 

4 are eligible project partners with respect to any 

5 energy property, and 

6 ‘‘(B) requiring information to be included 

7 in an election under paragraph (1) or imposing 

8 additional reporting requirements.’’. 

9 (2) NORMALIZATION RULES.—Section 50(d) of 

10 such Code is amended by adding at the end the fol11 lowing: ‘‘In the case of any energy property with re12 spect to which an election is made under section 

13 48(e)(1), the rules of the section 46(f) referred to in 

14 paragraph (2) shall apply only to the extent of 

15 amounts paid in consideration of the transfer to 

16 which such election relates.’’ 

17 (c) SPECIAL RULE FOR PROCEEDS OF TRANSFERS

18 FOR MUTUAL OR COOPERATIVE ELECTRIC COMPANIES.— 

19 Section 501(c)(12)(I) of such Code is amended by striking 

20 ‘‘45J(e)(1)’’ and inserting ‘‘45(e)(12), 45J(e)(1), or 

21 48(e)(1)’’. 

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

23 this section shall apply to taxable years beginning after 

24 the date of the enactment of this Act. 

Æ 


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