I 

109TH CONGRESS 

2D SESSION H. R. 5010 

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 

MARCH 16, 2006 

Mrs. WILSON of New Mexico (for herself, Mr. SIMPSON, Mr. OTTER, Mr. 

BROWN of Ohio, and Mr. TERRY) 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 2006’’. 

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 


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1 ‘‘January 1, 2008’’ each place it appears and inserting 

2 ‘‘January 1, 2013’’. 

3 SEC. 3. TREATMENT OF PERSONS NOT ABLE TO USE EN4 TIRE CREDIT. 

5 (a) IN GENERAL.—Section 45(e) of the Internal Rev6 enue Code of 1986 (relating to definitions and special 

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

8 paragraph: 

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

10 USE ENTIRE CREDIT.— 

11 ‘‘(A) ALLOWANCE OF CREDIT.— 

12 ‘‘(i) IN GENERAL.—Except as other13 wise provided in this subsection— 

14 ‘‘(I) any credit allowable under 

15 subsection (a) with respect to a quali16 fied facility owned by a person de17 scribed in clause (ii) may be trans18 ferred or used as provided in this 

19 paragraph, and 

20 ‘‘(II) the determination as to 

21 whether the credit is allowable shall 

22 be made without regard to the tax-ex23 empt status of the person. 


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1 ‘‘(ii) PERSONS DESCRIBED.—A person 

2 is described in this clause if the person 

3 is— 

4 ‘‘(I) an organization described in 

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

6 from tax under section 501(a), 

7 ‘‘(II) an organization described 

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

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

10 in section 136(c)(2)(B)), which is ex11 empt from income tax under this sub12 title, 

13 ‘‘(IV) any State or political sub14 division thereof, the District of Co15 lumbia, any possession of the United 

16 States, or any agency or instrumen17 tality of any of the foregoing, or 

18 ‘‘(V) any Indian tribal govern19 ment (within the meaning of section 

20 7871) or any agency or instrumen21 tality thereof. 

22 ‘‘(B) TRANSFER OF CREDIT.— 

23 ‘‘(i) IN GENERAL.—A person de24 scribed in subparagraph (A)(ii) may trans25 fer any credit to which subparagraph 


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

2 any other person not described in subpara3 graph (A)(ii). Such transfer may be re4 voked only with the consent of the Sec5 retary. 

6 ‘‘(ii) REGULATIONS.—The Secretary 

7 shall prescribe such regulations as nec8 essary to ensure that any credit described 

9 in clause (i) is assigned once and not reas10 signed by such other person. 

11 ‘‘(iii) TRANSFER PROCEEDS TREATED

12 AS ARISING FROM ESSENTIAL GOVERN13 MENT FUNCTION.—Any proceeds derived 

14 by a person described in subclause (III), 

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

16 the transfer of any credit under clause (i) 

17 shall be treated as arising from the exer18 cise of an essential government function. 

19 ‘‘(C) USE OF CREDIT AS AN OFFSET.— 

20 Notwithstanding any other provision of law, in 

21 the case of a person described in subclause (I), 

22 (II), or (V) of subparagraph (A)(ii), any credit 

23 to which subparagraph (A)(i) applies may be 

24 applied by such person, to the extent provided 

25 by the Secretary of Agriculture, as a prepayVerDate Aug 31 2005 04:16 Mar 18, 2006 Jkt 049200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H5010.IH H5010

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1 ment of any loan, debt, or other obligation the 

2 entity has incurred under subchapter I of chap3 ter 31 of title 7 of the Rural Electrification Act 

4 of 1936 (7 U.S.C. 901 et seq.), as in effect on 

5 the date of the enactment of the Energy Tax 

6 Incentives Act. 

7 ‘‘(D) CREDIT NOT INCOME.—Any transfer 

8 under subparagraph (B) or use under subpara9 graph (C) of any credit to which subparagraph 

10 (A)(i) applies shall not be treated as income for 

11 purposes of section 501(c)(12). 

12 ‘‘(E) TREATMENT OF UNRELATED PER13 SONS.—For purposes of subsection (a)(2)(B), 

14 sales of electricity among and between persons 

15 described in subparagraph (A)(ii) shall be treat16 ed as sales between unrelated parties.’’. 

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

18 this section shall apply to electricity produced and sold 

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

20 years ending after such date. 

Æ 


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