II 

Calendar No. 771 

110TH CONGRESS 

2D SESSION S. 3098 

To amend the Internal Revenue Code of 1986 to extend certain expiring 

provisions, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 6, 2008 

Mr. MCCONNELL (for himself, Mr. KYL, Mr. GRASSLEY, Mr. HATCH, Mr. 

ROBERTS, Mr. INHOFE, Mr. MARTINEZ, Mr. CRAPO, Mr. SUNUNU, Mr. 

WICKER, and Mr. ENSIGN) introduced the following bill; which was read 

the first time 

JUNE 9, 2008 

Read the second time and placed on the calendar 

A BILL 

To amend the Internal Revenue Code of 1986 to extend 

certain expiring provisions, 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, 


hsrobinson on PROD1PC76 with BILLS
2 

•S 3098 PCS

1 SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; 

2 TABLE OF CONTENTS. 

3 (a) SHORT TITLE.—This Act may be cited as the 

4 ‘‘Alternative Minimum Tax and Extenders Tax Relief Act 

5 of 2008’’. 

6 (b) AMENDMENT OF 1986 CODE.—Except as other7 wise expressly provided, whenever in this Act an amend8 ment or repeal is expressed in terms of an amendment 

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

10 shall be considered to be made to a section or other provi11 sion of the Internal Revenue Code of 1986. 

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

13 this Act is as follows: 

Sec. 1. Short title; amendment of 1986 Code; table of contents. 

TITLE I—ALTERNATIVE MINIMUM TAX RELIEF 

Sec. 101. Extension of alternative minimum tax relief for nonrefundable personal credits. 

Sec. 102. Extension of increased alternative minimum tax exemption amount. 

TITLE II—INDIVIDUAL TAX PROVISIONS 

Sec. 201. Deduction for State and local sales taxes. 

Sec. 202. Deduction of qualified tuition and related expenses. 

Sec. 203. Deduction for certain expenses of elementary and secondary school 

teachers. 

Sec. 204. Tax-free distributions from individual retirement plans for charitable 

purposes. 

Sec. 205. Treatment of certain dividends of regulated investment companies. 

Sec. 206. Stock in RIC for purposes of determining estates of nonresidents not 

citizens. 

Sec. 207. Qualified investment entities. 

TITLE III—BUSINESS TAX PROVISIONS 

Sec. 301. Extension and modification of research credit. 

Sec. 302. New markets tax credit. 

Sec. 303. Subpart F exception for active financing income. 

Sec. 304. Extension of look-thru rule for related controlled foreign corporations. 

Sec. 305. Extension of 15-year straight-line cost recovery for qualified leasehold 

improvements and qualified restaurant improvements. 


hsrobinson on PROD1PC76 with BILLS
3 

•S 3098 PCS

Sec. 306. Enhanced charitable deduction for contributions of food inventory. 

Sec. 307. Extension of enhanced charitable deduction for contributions of book 

inventory. 

Sec. 308. Modification of tax treatment of certain payments to controlling exempt organizations. 

Sec. 309. Basis adjustment to stock of S corporations making charitable contributions of property. 

Sec. 310. Increase in limit on cover over of rum excise tax to Puerto Rico and 

the Virgin Islands. 

Sec. 311. Extension of economic development credit for American Samoa. 

Sec. 312. Extension of mine rescue team training credit. 

Sec. 313. Extension of election to expense advanced mine safety equipment. 

Sec. 314. Extension of expensing rules for qualified film and television productions. 

Sec. 315. Deduction allowable with respect to income attributable to domestic 

production activities in Puerto Rico. 

Sec. 316. Extension of qualified zone academy bonds. 

Sec. 317. Indian employment credit. 

Sec. 318. Accelerated depreciation for business property on Indian reservation. 

Sec. 319. Railroad track maintenance. 

Sec. 320. Seven-year cost recovery period for motorsports racing track facility. 

Sec. 321. Expensing of environmental remediation costs. 

Sec. 322. Extension of work opportunity tax credit for Hurricane Katrina employees. 

TITLE IV—EXTENSION OF CLEAN ENERGY PRODUCTION 

INCENTIVES 

Sec. 401. Extension and modification of renewable energy production tax credit. 

Sec. 402. Extension and modification of solar energy and fuel cell investment 

tax credit. 

Sec. 403. Extension and modification of residential energy efficient property 

credit. 

Sec. 404. Extension and modification of credit for clean renewable energy 

bonds. 

Sec. 405. Extension of special rule to implement FERC restructuring policy. 

TITLE V—EXTENSION OF INCENTIVES TO IMPROVE ENERGY 

EFFICIENCY 

Sec. 501. Extension and modification of credit for energy efficiency improvements to existing homes. 

Sec. 502. Extension and modification of tax credit for energy efficient new 

homes. 

Sec. 503. Extension and modification of energy efficient commercial buildings 

deduction. 

Sec. 504. Modification and extension of energy efficient appliance credit for appliances produced after 2007. 

TITLE VI—EXTENSION OF ALTERNATIVE FUELS AND MARGINAL 

PRODUCTION 

Sec. 601. Percentage depletion for marginal well production. 

Sec. 602. Credits for biodiesel and renewable diesel. 

Sec. 603. Credit for alternative fuels. 

TITLE VII—TAX ADMINISTRATION 


hsrobinson on PROD1PC76 with BILLS
4 

•S 3098 PCS

Sec. 701. Permanent authority for undercover operations. 

Sec. 702. Permanent disclosures of certain tax return information. 

Sec. 703. Disclosure of information relating to terrorist activities. 

1 TITLE I—ALTERNATIVE 

2 MINIMUM TAX RELIEF 

3 SEC. 101. EXTENSION OF ALTERNATIVE MINIMUM TAX RE4 LIEF FOR NONREFUNDABLE PERSONAL 

5 CREDITS. 

6 (a) IN GENERAL.—Paragraph (2) of section 26(a) 

7 (relating to special rule for taxable years 2000 through 

8 2007) is amended— 

9 (1) by striking ‘‘or 2007’’ and inserting ‘‘2007, 

10 or 2008’’, and 

11 (2) by striking ‘‘2007’’ in the heading thereof 

12 and inserting ‘‘2008’’. 

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

14 this section shall apply to taxable years beginning after 

15 December 31, 2007. 

16 SEC. 102. EXTENSION OF INCREASED ALTERNATIVE MIN17 IMUM TAX EXEMPTION AMOUNT. 

18 (a) IN GENERAL.—Paragraph (1) of section 55(d) 

19 (relating to exemption amount) is amended— 

20 (1) by striking ‘‘($66,250 in the case of taxable 

21 years beginning in 2007)’’ in subparagraph (A) and 

22 inserting ‘‘($69,950 in the case of taxable years be23 ginning in 2008)’’, and 


hsrobinson on PROD1PC76 with BILLS
5 

•S 3098 PCS

1 (2) by striking ‘‘($44,350 in the case of taxable 

2 years beginning in 2007)’’ in subparagraph (B) and 

3 inserting ‘‘($46,200 in the case of taxable years be4 ginning in 2008)’’. 

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

6 this section shall apply to taxable years beginning after 

7 December 31, 2007. 

8 TITLE II—INDIVIDUAL TAX 

9 PROVISIONS 

10 SEC. 201. DEDUCTION FOR STATE AND LOCAL SALES 

11 TAXES. 

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

13 164(b)(5) is amended by striking ‘‘January 1, 2008’’ and 

14 inserting ‘‘January 1, 2010’’. 

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

16 this section shall apply to taxable years beginning after 

17 December 31, 2007. 

18 SEC. 202. DEDUCTION OF QUALIFIED TUITION AND RE19 LATED EXPENSES. 

20 (a) IN GENERAL.—Subsection (e) of section 222 (re21 lating to termination) is amended by striking ‘‘December 

22 31, 2007’’ and inserting ‘‘December 31, 2009’’. 

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

24 this section shall apply to taxable years beginning after 

25 December 31, 2007. 


hsrobinson on PROD1PC76 with BILLS
6 

•S 3098 PCS

1 SEC. 203. DEDUCTION FOR CERTAIN EXPENSES OF ELE2 MENTARY AND SECONDARY SCHOOL TEACH3 ERS. 

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

5 62(a)(2) (relating to certain expenses of elementary and 

6 secondary school teachers) is amended by striking ‘‘or 

7 2007’’ and inserting ‘‘2007, 2008, or 2009’’. 

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

9 subsection (a) shall apply to taxable years beginning after 

10 December 31, 2007. 

11 SEC. 204. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RE12 TIREMENT PLANS FOR CHARITABLE PUR13 POSES. 

14 (a) IN GENERAL.—Subparagraph (F) of section 

15 408(d)(8) (relating to termination) is amended by striking 

16 ‘‘December 31, 2007’’ and inserting ‘‘December 31, 

17 2009’’. 

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

19 this section shall apply to distributions made in taxable 

20 years beginning after December 31, 2007. 

21 SEC. 205. TREATMENT OF CERTAIN DIVIDENDS OF REGU22 LATED INVESTMENT COMPANIES. 

23 (a) INTEREST-RELATED DIVIDENDS.—Subpara24 graph (C) of section 871(k)(1) (defining interest-related 

25 dividend) is amended by striking ‘‘December 31, 2007’’ 

26 and inserting ‘‘December 31, 2009’’. 


hsrobinson on PROD1PC76 with BILLS
7 

•S 3098 PCS

1 (b) SHORT-TERM CAPITAL GAIN DIVIDENDS.—Sub2 paragraph (C) of section 871(k)(2) (defining short-term 

3 capital gain dividend) is amended by striking ‘‘December 

4 31, 2007’’ and inserting ‘‘December 31, 2009’’. 

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

6 this section shall apply to dividends with respect to taxable 

7 years of regulated investment companies beginning after 

8 December 31, 2007. 

9 SEC. 206. STOCK IN RIC FOR PURPOSES OF DETERMINING 

10 ESTATES OF NONRESIDENTS NOT CITIZENS. 

11 (a) IN GENERAL.—Paragraph (3) of section 2105(d) 

12 (relating to stock in a RIC) is amended by striking ‘‘De13 cember 31, 2007’’ and inserting ‘‘December 31, 2009’’. 

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

15 this section shall apply to decedents dying after December 

16 31, 2007. 

17 SEC. 207. QUALIFIED INVESTMENT ENTITIES. 

18 (a) IN GENERAL.—Clause (ii) of section 

19 897(h)(4)(A) (relating to termination) is amended by 

20 striking ‘‘December 31, 2007’’ and inserting ‘‘December 

21 31, 2009’’. 

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

23 subsection (a) shall take effect on January 1, 2008. 


hsrobinson on PROD1PC76 with BILLS
8 

•S 3098 PCS

1 TITLE III—BUSINESS TAX 

2 PROVISIONS 

3 SEC. 301. EXTENSION AND MODIFICATION OF RESEARCH 

4 CREDIT. 

5 (a) EXTENSION.—Section 41(h) (relating to termi6 nation) is amended— 

7 (1) by striking ‘‘December 31, 2007’’ and in8 serting ‘‘December 31, 2009’’ in paragraph (1)(B), 

9 (2) by redesignating paragraph (2) as para10 graph (3), and 

11 (3) by inserting after paragraph (1) the fol12 lowing new paragraph: 

13 ‘‘(2) TERMINATION OF ALTERNATIVE INCRE14 MENTAL CREDIT.—No election under subsection 

15 (c)(4) shall apply to amounts paid or incurred after 

16 December 31, 2007.’’. 

17 (b) MODIFICATION OF ALTERNATIVE SIMPLIFIED

18 CREDIT.—Paragraph (5)(A) of section 41(c) (relating to 

19 election of alternative simplified credit) is amended to read 

20 as follows: 

21 ‘‘(A) IN GENERAL.— 

22 ‘‘(i) CALCULATION OF CREDIT.—At 

23 the election of the taxpayer, the credit de24 termined under subsection (a)(1) shall be 

25 equal to the applicable percentage (as deVerDate Aug 31 2005 23:01 Jun 09, 2008 Jkt 069200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S3098.PCS S3098

hsrobinson on PROD1PC76 with BILLS
9 

•S 3098 PCS

1 fined in clause (ii)) of so much of the 

2 qualified research expenses for the taxable 

3 year as exceeds 50 percent of the average 

4 qualified research expenses for the 3 tax5 able years preceding the taxable year for 

6 which the credit is being determined. 

7 ‘‘(ii) APPLICABLE PERCENTAGE.—For 

8 purposes of the calculation under clause 

9 (i), the applicable percentage is— 

10 ‘‘(I) 14 percent, in the case of 

11 taxable years ending before January 

12 1, 2009, and 

13 ‘‘(II) 16 percent, in the case of 

14 taxable years beginning after Decem15 ber 31, 2008.’’. 

16 (c) CONFORMING AMENDMENT.—Subparagraph (D) 

17 of section 45C(b)(1) (relating to special rule) is amended 

18 by striking ‘‘December 31, 2007’’ and inserting ‘‘Decem19 ber 31, 2009’’. 

20 (d) TECHNICAL CORRECTION.—Paragraph (3) of sec21 tion 41(h) is amended to read as follows: 

22 ‘‘(2) COMPUTATION FOR TAXABLE YEAR IN

23 WHICH CREDIT TERMINATES.—In the case of any 

24 taxable year with respect to which this section apVerDate Aug 31 2005 23:01 Jun 09, 2008 Jkt 069200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S3098.PCS S3098

hsrobinson on PROD1PC76 with BILLS
10 

•S 3098 PCS

1 plies to a number of days which is less than the total 

2 number of days in such taxable year— 

3 ‘‘(A) the amount determined under sub4 section (c)(1)(B) with respect to such taxable 

5 year shall be the amount which bears the same 

6 ratio to such amount (determined without re7 gard to this paragraph) as the number of days 

8 in such taxable year to which this section ap9 plies bears to the total number of days in such 

10 taxable year, and 

11 ‘‘(B) for purposes of subsection (c)(5), the 

12 average qualified research expenses for the pre13 ceding 3 taxable years shall be the amount 

14 which bears the same ratio to such average 

15 qualified research expenses (determined without 

16 regard to this paragraph) as the number of 

17 days in such taxable year to which this section 

18 applies bears to the total number of days in 

19 such taxable year.’’. 

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

21 this section shall apply to amounts paid or incurred after 

22 December 31, 2007. 

23 SEC. 302. NEW MARKETS TAX CREDIT. 

24 Subparagraph (D) of section 45D(f)(1) (relating to 

25 national limitation on amount of investments designated) 


hsrobinson on PROD1PC76 with BILLS
11 

•S 3098 PCS

1 is amended by striking ‘‘and 2008’’ and inserting ‘‘2008, 

2 and 2009’’. 

3 SEC. 303. SUBPART F EXCEPTION FOR ACTIVE FINANCING 

4 INCOME. 

5 (a) EXEMPT INSURANCE INCOME.—Paragraph (10) 

6 of section 953(e) (relating to application) is amended— 

7 (1) by striking ‘‘January 1, 2009’’ and insert8 ing ‘‘January 1, 2010’’, and 

9 (2) by striking ‘‘December 31, 2008’’ and in10 serting ‘‘December 31, 2009’’. 

11 (b) EXCEPTION TO TREATMENT AS FOREIGN PER12 SONAL HOLDING COMPANY INCOME.—Paragraph (9) of 

13 section 954(h) (relating to application) is amended by 

14 striking ‘‘January 1, 2009’’ and inserting ‘‘January 1, 

15 2010’’. 

16 SEC. 304. EXTENSION OF LOOK-THRU RULE FOR RELATED 

17 CONTROLLED FOREIGN CORPORATIONS. 

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

19 954(c)(6) (relating to application) is amended by striking 

20 ‘‘January 1, 2009’’ and inserting ‘‘January 1, 2010’’. 

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

22 this section shall apply to taxable years of foreign corpora23 tions beginning after December 31, 2007, and to taxable 

24 years of United States shareholders with or within which 

25 such taxable years of foreign corporations end. 


hsrobinson on PROD1PC76 with BILLS
12 

•S 3098 PCS

1 SEC. 305. EXTENSION OF 15-YEAR STRAIGHT-LINE COST RE2 COVERY FOR QUALIFIED LEASEHOLD IM3 PROVEMENTS AND QUALIFIED RESTAURANT 

4 IMPROVEMENTS. 

5 (a) IN GENERAL.—Clauses (iv) and (v) of section 

6 168(e)(3)(E) (relating to 15-year property) are each 

7 amended by striking ‘‘January 1, 2008’’ and inserting 

8 ‘‘January 1, 2010’’. 

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

10 this section shall apply to property placed in service after 

11 December 31, 2007. 

12 SEC. 306. ENHANCED CHARITABLE DEDUCTION FOR CON13 TRIBUTIONS OF FOOD INVENTORY. 

14 (a) IN GENERAL.—Clause (iv) of section 

15 170(e)(3)(C) (relating to termination) is amended by 

16 striking ‘‘December 31, 2007’’ and inserting ‘‘December 

17 31, 2009’’. 

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

19 this section shall apply to contributions made after De20 cember 31, 2007. 

21 SEC. 307. EXTENSION OF ENHANCED CHARITABLE DEDUC22 TION FOR CONTRIBUTIONS OF BOOK INVEN23 TORY. 

24 (a) EXTENSION.—Clause (iv) of section 170(e)(3)(D) 

25 (relating to termination) is amended by striking ‘‘Decem26 ber 31, 2007’’ and inserting ‘‘December 31, 2009’’. 


hsrobinson on PROD1PC76 with BILLS
13 

•S 3098 PCS

1 (b) CLERICAL AMENDMENT.—Clause (iii) of section 

2 170(e)(3)(D) (relating to certification by donee) is amend3 ed by inserting ‘‘of books’’ after ‘‘to any contribution’’. 

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

5 this section shall apply to contributions made after De6 cember 31, 2007. 

7 SEC. 308. MODIFICATION OF TAX TREATMENT OF CERTAIN 

8 PAYMENTS TO CONTROLLING EXEMPT ORGA9 NIZATIONS. 

10 (a) IN GENERAL.—Clause (iv) of section 

11 512(b)(13)(E) (relating to termination) is amended by 

12 striking ‘‘December 31, 2007’’ and inserting ‘‘December 

13 31, 2009’’. 

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

15 this section shall apply to payments received or accrued 

16 after December 31, 2007. 

17 SEC. 309. BASIS ADJUSTMENT TO STOCK OF S CORPORA18 TIONS MAKING CHARITABLE CONTRIBU19 TIONS OF PROPERTY. 

20 (a) IN GENERAL.—The last sentence of section 

21 1367(a)(2) (relating to decreases in basis) is amended by 

22 striking ‘‘December 31, 2007’’ and inserting ‘‘December 

23 31, 2009’’. 


hsrobinson on PROD1PC76 with BILLS
14 

•S 3098 PCS

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

2 this section shall apply to contributions made in taxable 

3 years beginning after December 31, 2007. 

4 SEC. 310. INCREASE IN LIMIT ON COVER OVER OF RUM EX5 CISE TAX TO PUERTO RICO AND THE VIRGIN 

6 ISLANDS. 

7 (a) IN GENERAL.—Paragraph (1) of section 7652(f) 

8 is amended by striking ‘‘January 1, 2008’’ and inserting 

9 ‘‘January 1, 2010’’. 

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

11 this section shall apply to distilled spirits brought into the 

12 United States after December 31, 2007. 

13 SEC. 311. EXTENSION OF ECONOMIC DEVELOPMENT CRED14 IT FOR AMERICAN SAMOA. 

15 (a) IN GENERAL.—Subsection (d) of section 119 of 

16 division A of the Tax Relief and Health Care Act of 2006 

17 is amended— 

18 (1) by striking ‘‘first two taxable years’’ and in19 serting ‘‘first 4 taxable years’’, and 

20 (2) by striking ‘‘January 1, 2008’’ and insert21 ing ‘‘January 1, 2010’’. 

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

23 this section shall apply to taxable years beginning after 

24 December 31, 2007. 


hsrobinson on PROD1PC76 with BILLS
15 

•S 3098 PCS

1 SEC. 312. EXTENSION OF MINE RESCUE TEAM TRAINING 

2 CREDIT. 

3 Section 45N(e) (relating to termination) is amended 

4 by striking ‘‘December 31, 2008’’ and inserting ‘‘Decem5 ber 31, 2009’’. 

6 SEC. 313. EXTENSION OF ELECTION TO EXPENSE AD7 VANCED MINE SAFETY EQUIPMENT. 

8 Section 179E(g) (relating to termination) is amended 

9 by striking ‘‘December 31, 2008’’ and inserting ‘‘Decem10 ber 31, 2009’’. 

11 SEC. 314. EXTENSION OF EXPENSING RULES FOR QUALI12 FIED FILM AND TELEVISION PRODUCTIONS. 

13 Section 181(f) (relating to termination) is amended 

14 by striking ‘‘December 31, 2008’’ and inserting ‘‘Decem15 ber 31, 2009’’. 

16 SEC. 315. DEDUCTION ALLOWABLE WITH RESPECT TO IN17 COME ATTRIBUTABLE TO DOMESTIC PRO18 DUCTION ACTIVITIES IN PUERTO RICO. 

19 (a) IN GENERAL.—Subparagraph (C) of section 

20 199(d)(8) (relating to termination) is amended— 

21 (1) by striking ‘‘first 2 taxable years’’ and in22 serting ‘‘first 4 taxable years’’, and 

23 (2) by striking ‘‘January 1, 2008’’ and insert24 ing ‘‘January 1, 2010’’. 


hsrobinson on PROD1PC76 with BILLS
16 

•S 3098 PCS

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

2 this section shall apply to taxable years beginning after 

3 December 31, 2007. 

4 SEC. 316. EXTENSION OF QUALIFIED ZONE ACADEMY 

5 BONDS. 

6 (a) IN GENERAL.—Paragraph (1) of section 

7 1397E(e) is amended by striking ‘‘and 2007’’ and insert8 ing ‘‘2007, 2008, and 2009’’. 

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

10 this section shall apply to obligations issued after the date 

11 of the enactment of this Act. 

12 SEC. 317. INDIAN EMPLOYMENT CREDIT. 

13 (a) IN GENERAL.—Subsection (f) of section 45A (re14 lating to termination) is amended by striking ‘‘December 

15 31, 2007’’ and inserting ‘‘December 31, 2009’’. 

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

17 this section shall apply to taxable years beginning after 

18 December 31, 2007. 

19 SEC. 318. ACCELERATED DEPRECIATION FOR BUSINESS 

20 PROPERTY ON INDIAN RESERVATION. 

21 (a) IN GENERAL.—Paragraph (8) of section 168(j) 

22 (relating to termination) is amended by striking ‘‘Decem23 ber 31, 2007’’ and inserting ‘‘December 31, 2009’’. 


hsrobinson on PROD1PC76 with BILLS
17 

•S 3098 PCS

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

2 this section shall apply to property placed in service after 

3 December 31, 2007. 

4 SEC. 319. RAILROAD TRACK MAINTENANCE. 

5 (a) IN GENERAL.—Subsection (f) of section 45G (re6 lating to application of section) is amended by striking 

7 ‘‘January 1, 2008’’ and inserting ‘‘January 1, 2010’’. 

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

9 this section shall apply to expenditures paid or incurred 

10 during taxable years beginning after December 31, 2007. 

11 SEC. 320. SEVEN-YEAR COST RECOVERY PERIOD FOR MO12 TORSPORTS RACING TRACK FACILITY. 

13 (a) IN GENERAL.—Subparagraph (D) of section 

14 168(i)(15) (relating to termination) is amended to read 

15 as follows: 

16 ‘‘(D) APPLICATION OF PARAGRAPH.—Such 

17 term shall apply to property placed in service 

18 after the date of the enactment of the Alter19 native Minimum Tax and Extenders Tax Relief 

20 Act of 2008 and before January 1, 2010.’’. 

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

22 this section shall apply to property placed in service after 

23 the date of the enactment of this Act. 


hsrobinson on PROD1PC76 with BILLS
18 

•S 3098 PCS

1 SEC. 321. EXPENSING OF ENVIRONMENTAL REMEDIATION 

2 COSTS. 

3 (a) IN GENERAL.—Subsection (h) of section 198 (re4 lating to termination) is amended by striking ‘‘December 

5 31, 2007’’ and inserting ‘‘December 31, 2009’’. 

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

7 this section shall apply to expenditures paid or incurred 

8 after December 31, 2007. 

9 SEC. 322. EXTENSION OF WORK OPPORTUNITY TAX CREDIT 

10 FOR HURRICANE KATRINA EMPLOYEES. 

11 (a) IN GENERAL.—Paragraph (1) of section 201(b) 

12 of the Katrina Emergency Tax Relief Act of 2005 is 

13 amended by striking ‘‘2-year’’ and inserting ‘‘4-year’’. 

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

15 subsection (a) shall apply to individuals hired after August 

16 27, 2007. 

17 TITLE IV—EXTENSION OF CLEAN 

18 ENERGY PRODUCTION INCEN19 TIVES 

20 SEC. 401. EXTENSION AND MODIFICATION OF RENEWABLE 

21 ENERGY PRODUCTION TAX CREDIT. 

22 (a) EXTENSION OF CREDIT.—Each of the following 

23 provisions of section 45(d) (relating to qualified facilities) 

24 is amended by striking ‘‘January 1, 2009’’ and inserting 

25 ‘‘January 1, 2010’’: 

26 (1) Paragraph (1). 


hsrobinson on PROD1PC76 with BILLS
19 

•S 3098 PCS

1 (2) Clauses (i) and (ii) of paragraph (2)(A). 

2 (3) Clauses (i)(I) and (ii) of paragraph (3)(A). 

3 (4) Paragraph (4). 

4 (5) Paragraph (5). 

5 (6) Paragraph (6). 

6 (7) Paragraph (7). 

7 (8) Paragraph (8). 

8 (9) Subparagraphs (A) and (B) of paragraph 

9 (9). 

10 (b) PRODUCTION CREDIT FOR ELECTRICITY PRO11 DUCED FROM MARINE RENEWABLES.— 

12 (1) IN GENERAL.—Paragraph (1) of section 

13 45(c) (relating to resources) is amended by striking 

14 ‘‘and’’ at the end of subparagraph (G), by striking 

15 the period at the end of subparagraph (H) and in16 serting ‘‘, and’’, and by adding at the end the fol17 lowing new subparagraph: 

18 ‘‘(I) marine and hydrokinetic renewable en19 ergy.’’. 

20 (2) MARINE RENEWABLES.—Subsection (c) of 

21 section 45 is amended by adding at the end the fol22 lowing new paragraph: 

23 ‘‘(10) MARINE AND HYDROKINETIC RENEW24 ABLE ENERGY.— 


hsrobinson on PROD1PC76 with BILLS
20 

•S 3098 PCS

1 ‘‘(A) IN GENERAL.—The term ‘marine and 

2 hydrokinetic renewable energy’ means energy 

3 derived from— 

4 ‘‘(i) waves, tides, and currents in 

5 oceans, estuaries, and tidal areas, 

6 ‘‘(ii) free flowing water in rivers, 

7 lakes, and streams, 

8 ‘‘(iii) free flowing water in an irriga9 tion system, canal, or other man-made 

10 channel, including projects that utilize non11 mechanical structures to accelerate the 

12 flow of water for electric power production 

13 purposes, or 

14 ‘‘(iv) differentials in ocean tempera15 ture (ocean thermal energy conversion). 

16 ‘‘(B) EXCEPTIONS.—Such term shall not 

17 include any energy which is derived from any 

18 source which utilizes a dam, diversionary struc19 ture (except as provided in subparagraph 

20 (A)(iii)), or impoundment for electric power 

21 production purposes.’’. 

22 (3) DEFINITION OF FACILITY.—Subsection (d) 

23 of section 45 is amended by adding at the end the 

24 following new paragraph: 


hsrobinson on PROD1PC76 with BILLS
21 

•S 3098 PCS

1 ‘‘(11) MARINE AND HYDROKINETIC RENEW2 ABLE ENERGY FACILITIES.—In the case of a facility 

3 producing electricity from marine and hydrokinetic 

4 renewable energy, the term ‘qualified facility’ means 

5 any facility owned by the taxpayer— 

6 ‘‘(A) which has a nameplate capacity rat7 ing of at least 150 kilowatts, and 

8 ‘‘(B) which is originally placed in service 

9 on or after the date of the enactment of this 

10 paragraph and before January 1, 2010.’’. 

11 (4) CREDIT RATE.—Subparagraph (A) of sec12 tion 45(b)(4) is amended by striking ‘‘or (9)’’ and 

13 inserting ‘‘(9), or (11)’’. 

14 (5) COORDINATION WITH SMALL IRRIGATION

15 POWER.—Paragraph (5) of section 45(d), as amend16 ed by subsection (a), is amended by striking ‘‘Janu17 ary 1, 2010’’ and inserting ‘‘the date of the enact18 ment of paragraph (11)’’. 

19 (c) SALES OF ELECTRICITY TO REGULATED PUBLIC

20 UTILITIES TREATED AS SALES TO UNRELATED PER21 SONS.—Section 45(e)(4) (relating to related persons) is 

22 amended by adding at the end the following new sentence: 

23 ‘‘A taxpayer shall be treated as selling electricity to an 

24 unrelated person if such electricity is sold to a regulated 

25 public utility (as defined in section 7701(a)(33).’’. 


hsrobinson on PROD1PC76 with BILLS
22 

•S 3098 PCS

1 (d) TRASH FACILITY CLARIFICATION.—Paragraph 

2 (7) of section 45(d) is amended— 

3 (1) by striking ‘‘facility which burns’’ and in4 serting ‘‘facility (other than a facility described in 

5 paragraph (6)) which uses’’, and 

6 (2) by striking ‘‘COMBUSTION’’. 

7 (e) EFFECTIVE DATES.— 

8 (1) EXTENSION.—The amendments made by 

9 subsection (a) shall apply to property originally 

10 placed in service after December 31, 2008. 

11 (2) MODIFICATIONS.—The amendments made 

12 by subsections (b) and (c) shall apply to electricity 

13 produced and sold after the date of the enactment 

14 of this Act, in taxable years ending after such date. 

15 (3) TRASH FACILITY CLARIFICATION.—The 

16 amendments made by subsection (d) shall apply to 

17 electricity produced and sold before, on, or after De18 cember 31, 2007. 

19 SEC. 402. EXTENSION AND MODIFICATION OF SOLAR EN20 ERGY AND FUEL CELL INVESTMENT TAX 

21 CREDIT. 

22 (a) EXTENSION OF CREDIT.— 

23 (1) SOLAR ENERGY PROPERTY.—Paragraphs 

24 (2)(A)(i)(II) and (3)(A)(ii) of section 48(a) (relating 

25 to energy credit) are each amended by striking 


hsrobinson on PROD1PC76 with BILLS
23 

•S 3098 PCS

1 ‘‘January 1, 2009’’ and inserting ‘‘January 1, 

2 2017’’. 

3 (2) FUEL CELL PROPERTY.—Subparagraph (E) 

4 of section 48(c)(1) (relating to qualified fuel cell 

5 property) is amended by striking ‘‘December 31, 

6 2008’’ and inserting ‘‘December 31, 2016’’. 

7 (3) QUALIFIED MICROTURBINE PROPERTY.— 

8 Subparagraph (E) of section 48(c)(2) (relating to 

9 qualified microturbine property) is amended by 

10 striking ‘‘December 31, 2008’’ and inserting ‘‘De11 cember 31, 2016’’. 

12 (b) ALLOWANCE OF ENERGY CREDIT AGAINST AL13 TERNATIVE MINIMUM TAX.—Subparagraph (B) of section 

14 38(c)(4) (relating to specified credits) is amended by strik15 ing ‘‘and’’ at the end of clause (iii), by striking the period 

16 at the end of clause (iv) and inserting ‘‘, and’’, and by 

17 adding at the end the following new clause: 

18 ‘‘(v) the credit determined under sec19 tion 46 to the extent that such credit is at20 tributable to the energy credit determined 

21 under section 48.’’. 

22 (c) REPEAL OF DOLLAR PER KILOWATT LIMITATION

23 FOR FUEL CELL PROPERTY.— 

24 (1) IN GENERAL.—Section 48(c)(1) (relating to 

25 qualified fuel cell), as amended by subsection (a)(2), 


hsrobinson on PROD1PC76 with BILLS
24 

•S 3098 PCS

1 is amended by striking subparagraph (B) and by re2 designating subparagraphs (C), (D), and (E) as sub3 paragraphs (B), (C), and (D), respectively. 

4 (2) CONFORMING AMENDMENT.—Section 

5 48(a)(1) is amended by striking ‘‘paragraphs (1)(B) 

6 and (2)(B) of subsection (c)’’ and inserting ‘‘sub7 section (c)(2)(B)’’. 

8 (d) PUBLIC ELECTRIC UTILITY PROPERTY TAKEN

9 INTO ACCOUNT.— 

10 (1) IN GENERAL.—Paragraph (3) of section 

11 48(a) is amended by striking the second sentence 

12 thereof. 

13 (2) CONFORMING AMENDMENTS.— 

14 (A) Paragraph (1) of section 48(c), as 

15 amended by this section, is amended by striking 

16 subparagraph (C) and redesignating subpara17 graph (D) as subparagraph (C). 

18 (B) Paragraph (2) of section 48(c), as 

19 amended by subsection (a)(3), is amended by 

20 striking subparagraph (D) and redesignating 

21 subparagraph (E) as subparagraph (D). 

22 (e) EFFECTIVE DATES.— 

23 (1) EXTENSION.—The amendments made by 

24 subsection (a) shall take effect on the date of the en25 actment of this Act. 


hsrobinson on PROD1PC76 with BILLS
25 

•S 3098 PCS

1 (2) ALLOWANCE AGAINST ALTERNATIVE MIN2 IMUM TAX.—The amendments made by subsection 

3 (b) shall apply to credits determined under section 

4 46 of the Internal Revenue Code of 1986 in taxable 

5 years beginning after the date of the enactment of 

6 this Act and to carrybacks of such credits. 

7 (3) FUEL CELL PROPERTY AND PUBLIC ELEC8 TRIC UTILITY PROPERTY.—The amendments made 

9 by subsections (c) and (d) shall apply to periods 

10 after the date of the enactment of this Act, in tax11 able years ending after such date, under rules simi12 lar to the rules of section 48(m) of the Internal Rev13 enue Code of 1986 (as in effect on the day before 

14 the date of the enactment of the Revenue Reconcili15 ation Act of 1990). 

16 SEC. 403. EXTENSION AND MODIFICATION OF RESIDENTIAL 

17 ENERGY EFFICIENT PROPERTY CREDIT. 

18 (a) EXTENSION.—Section 25D(g) (relating to termi19 nation) is amended by striking ‘‘December 31, 2008’’ and 

20 inserting ‘‘December 31, 2009’’. 

21 (b) NO DOLLAR LIMITATION FOR CREDIT FOR

22 SOLAR ELECTRIC PROPERTY.— 

23 (1) IN GENERAL.—Section 25D(b)(1) (relating 

24 to maximum credit) is amended by striking subparaVerDate Aug 31 2005 23:01 Jun 09, 2008 Jkt 069200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\S3098.PCS S3098

hsrobinson on PROD1PC76 with BILLS
26 

•S 3098 PCS

1 graph (A) and by redesignating subparagraphs (B) 

2 and (C) as subparagraphs (A) and (B), respectively. 

3 (2) CONFORMING AMENDMENTS.—Section 

4 25D(e)(4) is amended— 

5 (A) by striking clause (i) in subparagraph 

6 (A), 

7 (B) by redesignating clauses (ii) and (iii) 

8 in subparagraph (A) as clauses (i) and (ii), re9 spectively, and 

10 (C) by striking ‘‘, (2),’’ in subparagraph 

11 (C). 

12 (c) CREDIT ALLOWED AGAINST ALTERNATIVE MIN13 IMUM TAX.— 

14 (1) IN GENERAL.—Subsection (c) of section 

15 25D is amended to read as follows: 

16 ‘‘(c) LIMITATION BASED ON AMOUNT OF TAX; 

17 CARRYFORWARD OF UNUSED CREDIT.— 

18 ‘‘(1) LIMITATION BASED ON AMOUNT OF

19 TAX.—In the case of a taxable year to which section 

20 26(a)(2) does not apply, the credit allowed under 

21 subsection (a) for the taxable year shall not exceed 

22 the excess of— 

23 ‘‘(A) the sum of the regular tax liability 

24 (as defined in section 26(b)) plus the tax im25 posed by section 55, over 


hsrobinson on PROD1PC76 with BILLS
27 

•S 3098 PCS

1 ‘‘(B) the sum of the credits allowable 

2 under this subpart (other than this section) and 

3 section 27 for the taxable year. 

4 ‘‘(2) CARRYFORWARD OF UNUSED CREDIT.— 

5 ‘‘(A) RULE FOR YEARS IN WHICH ALL

6 PERSONAL CREDITS ALLOWED AGAINST REG7 ULAR AND ALTERNATIVE MINIMUM TAX.—In 

8 the case of a taxable year to which section 

9 26(a)(2) applies, if the credit allowable under 

10 subsection (a) exceeds the limitation imposed by 

11 section 26(a)(2) for such taxable year reduced 

12 by the sum of the credits allowable under this 

13 subpart (other than this section), such excess 

14 shall be carried to the succeeding taxable year 

15 and added to the credit allowable under sub16 section (a) for such succeeding taxable year. 

17 ‘‘(B) RULE FOR OTHER YEARS.—In the 

18 case of a taxable year to which section 26(a)(2) 

19 does not apply, if the credit allowable under 

20 subsection (a) exceeds the limitation imposed by 

21 paragraph (1) for such taxable year, such ex22 cess shall be carried to the succeeding taxable 

23 year and added to the credit allowable under 

24 subsection (a) for such succeeding taxable 

25 year.’’. 


hsrobinson on PROD1PC76 with BILLS
28 

•S 3098 PCS

1 (2) CONFORMING AMENDMENTS.— 

2 (A) Section 23(b)(4)(B) is amended by in3 serting ‘‘and section 25D’’ after ‘‘this section’’. 

4 (B) Section 24(b)(3)(B) is amended by 

5 striking ‘‘and 25B’’ and inserting ‘‘, 25B, and 

6 25D’’. 

7 (C) Section 25B(g)(2) is amended by strik8 ing ‘‘section 23’’ and inserting ‘‘sections 23 and 

9 25D’’. 

10 (D) Section 26(a)(1) is amended by strik11 ing ‘‘and 25B’’ and inserting ‘‘25B, and 25D’’. 

12 (d) EFFECTIVE DATE.— 

13 (1) IN GENERAL.—The amendments made by 

14 this section shall apply to taxable years beginning 

15 after December 31, 2007. 

16 (2) APPLICATION OF EGTRRA SUNSET.—The 

17 amendments made by subparagraphs (A) and (B) of 

18 subsection (c)(2) shall be subject to title IX of the 

19 Economic Growth and Tax Relief Reconciliation Act 

20 of 2001 in the same manner as the provisions of 

21 such Act to which such amendments relate. 


hsrobinson on PROD1PC76 with BILLS
29 

•S 3098 PCS

1 SEC. 404. EXTENSION AND MODIFICATION OF CREDIT FOR 

2 CLEAN RENEWABLE ENERGY BONDS. 

3 (a) EXTENSION.—Section 54(m) (relating to termi4 nation) is amended by striking ‘‘December 31, 2008’’ and 

5 inserting ‘‘December 31, 2009’’. 

6 (b) INCREASE IN NATIONAL LIMITATION.—Section 

7 54(f) (relating to limitation on amount of bonds des8 ignated) is amended— 

9 (1) by inserting ‘‘, and for the period beginning 

10 after the date of the enactment of the Clean Energy 

11 Tax Stimulus Act of 2008 and ending before Janu12 ary 1, 2010, $400,000,000’’ after ‘‘$1,200,000,000’’ 

13 in paragraph (1), 

14 (2) by striking ‘‘$750,000,000 of the’’ in para15 graph (2) and inserting ‘‘$750,000,000 of the 

16 $1,200,000,000’’, and 

17 (3) by striking ‘‘bodies’’ in paragraph (2) and 

18 inserting ‘‘bodies, and except that the Secretary may 

not allocate more than 1 19 ⁄3 of the $400,000,000 na20 tional clean renewable energy bond limitation to fi21 nance qualified projects of qualified borrowers which 

are public power providers nor more than 1 22 ⁄3 of such 

23 limitation to finance qualified projects of qualified 

24 borrowers which are mutual or cooperative electric 

25 companies described in section 501(c)(12) or section 

26 1381(a)(2)(C)’’. 


hsrobinson on PROD1PC76 with BILLS
30 

•S 3098 PCS

1 (c) PUBLIC POWER PROVIDERS DEFINED.—Section 

2 54(j) is amended— 

3 (1) by adding at the end the following new 

4 paragraph: 

5 ‘‘(6) PUBLIC POWER PROVIDER.—The term 

6 ‘public power provider’ means a State utility with a 

7 service obligation, as such terms are defined in sec8 tion 217 of the Federal Power Act (as in effect on 

9 the date of the enactment of this paragraph).’’, and 

10 (2) by inserting ‘‘; PUBLIC POWER PROVIDER’’ 

11 before the period at the end of the heading. 

12 (d) TECHNICAL AMENDMENT.—The third sentence of 

13 section 54(e)(2) is amended by striking ‘‘subsection 

14 (l)(6)’’ and inserting ‘‘subsection (l)(5)’’. 

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

16 this section shall apply to bonds issued after the date of 

17 the enactment of this Act. 

18 SEC. 405. EXTENSION OF SPECIAL RULE TO IMPLEMENT 

19 FERC RESTRUCTURING POLICY. 

20 (a) QUALIFYING ELECTRIC TRANSMISSION TRANS21 ACTION.— 

22 (1) IN GENERAL.—Section 451(i)(3) (defining 

23 qualifying electric transmission transaction) is 

24 amended by striking ‘‘January 1, 2008’’ and insert25 ing ‘‘January 1, 2010’’. 


hsrobinson on PROD1PC76 with BILLS
31 

•S 3098 PCS

1 (2) EFFECTIVE DATE.—The amendment made 

2 by this subsection shall apply to transactions after 

3 December 31, 2007. 

4 (b) INDEPENDENT TRANSMISSION COMPANY.— 

5 (1) IN GENERAL.—Section 451(i)(4)(B)(ii) (de6 fining independent transmission company) is amend7 ed by striking ‘‘December 31, 2007’’ and inserting 

8 ‘‘the date which is 2 years after the date of such 

9 transaction’’. 

10 (2) EFFECTIVE DATE.—The amendment made 

11 by this subsection shall take effect as if included in 

12 the amendments made by section 909 of the Amer13 ican Jobs Creation Act of 2004. 

14 TITLE V—EXTENSION OF INCEN15 TIVES TO IMPROVE ENERGY 

16 EFFICIENCY 

17 SEC. 501. EXTENSION AND MODIFICATION OF CREDIT FOR 

18 ENERGY EFFICIENCY IMPROVEMENTS TO EX19 ISTING HOMES. 

20 (a) EXTENSION OF CREDIT.—Section 25C(g) (relat21 ing to termination) is amended by striking ‘‘December 31, 

22 2007’’ and inserting ‘‘December 31, 2009’’. 

23 (b) QUALIFIED BIOMASS FUEL PROPERTY.— 

24 (1) IN GENERAL.—Section 25C(d)(3) is amend25 ed— 


hsrobinson on PROD1PC76 with BILLS
32 

•S 3098 PCS

1 (A) by striking ‘‘and’’ at the end of sub2 paragraph (D), 

3 (B) by striking the period at the end of 

4 subparagraph (E) and inserting ‘‘, and’’, and 

5 (C) by adding at the end the following new 

6 subparagraph: 

7 ‘‘(F) a stove which uses the burning of bio8 mass fuel to heat a dwelling unit located in the 

9 United States and used as a residence by the 

10 taxpayer, or to heat water for use in such a 

11 dwelling unit, and which has a thermal effi12 ciency rating of at least 75 percent.’’. 

13 (2) BIOMASS FUEL.—Section 25C(d) (relating 

14 to residential energy property expenditures) is 

15 amended by adding at the end the following new 

16 paragraph: 

17 ‘‘(6) BIOMASS FUEL.—The term ‘biomass fuel’ 

18 means any plant-derived fuel available on a renew19 able or recurring basis, including agricultural crops 

20 and trees, wood and wood waste and residues (in21 cluding wood pellets), plants (including aquatic 

22 plants), grasses, residues, and fibers.’’. 

23 (c) MODIFICATIONS OF STANDARDS FOR ENERGY24 EFFICIENT BUILDING PROPERTY.— 


hsrobinson on PROD1PC76 with BILLS
33 

•S 3098 PCS

1 (1) ELECTRIC HEAT PUMPS.—Subparagraph 

2 (B) of section 25C(d)(3) is amended to read as fol3 lows: 

4 ‘‘(A) an electric heat pump which achieves 

5 the highest efficiency tier established by the 

6 Consortium for Energy Efficiency, as in effect 

7 on January 1, 2008.’’. 

8 (2) CENTRAL AIR CONDITIONERS.—Section 

9 25C(d)(3)(D) is amended by striking ‘‘2006’’ and 

10 inserting ‘‘2008’’. 

11 (3) WATER HEATERS.—Subparagraph (E) of 

12 section 25C(d) is amended to read as follows: 

13 ‘‘(E) a natural gas, propane, or oil water 

14 heater which has either an energy factor of at 

15 least 0.80 or a thermal efficiency of at least 90 

16 percent.’’. 

17 (4) OIL FURNACES AND HOT WATER BOIL18 ERS.—Paragraph (4) of section 25C(d) is amended 

19 to read as follows: 

20 ‘‘(4) QUALIFIED NATURAL GAS, PROPANE, AND

21 OIL FURNACES AND HOT WATER BOILERS.— 

22 ‘‘(A) QUALIFIED NATURAL GAS FUR23 NACE.—The term ‘qualified natural gas fur24 nace’ means any natural gas furnace which 


hsrobinson on PROD1PC76 with BILLS
34 

•S 3098 PCS

1 achieves an annual fuel utilization efficiency 

2 rate of not less than 95. 

3 ‘‘(B) QUALIFIED NATURAL GAS HOT

4 WATER BOILER.—The term ‘qualified natural 

5 gas hot water boiler’ means any natural gas hot 

6 water boiler which achieves an annual fuel utili7 zation efficiency rate of not less than 90. 

8 ‘‘(C) QUALIFIED PROPANE FURNACE.— 

9 The term ‘qualified propane furnace’ means any 

10 propane furnace which achieves an annual fuel 

11 utilization efficiency rate of not less than 95. 

12 ‘‘(D) QUALIFIED PROPANE HOT WATER

13 BOILER.—The term ‘qualified propane hot 

14 water boiler’ means any propane hot water boil15 er which achieves an annual fuel utilization effi16 ciency rate of not less than 90. 

17 ‘‘(E) QUALIFIED OIL FURNACES.—The 

18 term ‘qualified oil furnace’ means any oil fur19 nace which achieves an annual fuel utilization 

20 efficiency rate of not less than 90. 

21 ‘‘(F) QUALIFIED OIL HOT WATER BOIL22 ER.—The term ‘qualified oil hot water boiler’ 

23 means any oil hot water boiler which achieves 

24 an annual fuel utilization efficiency rate of not 

25 less than 90.’’. 


hsrobinson on PROD1PC76 with BILLS
35 

•S 3098 PCS

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

2 section shall apply to expenditures made after December 

3 31, 2007. 

4 SEC. 502. EXTENSION AND MODIFICATION OF TAX CREDIT 

5 FOR ENERGY EFFICIENT NEW HOMES. 

6 (a) EXTENSION OF CREDIT.—Subsection (g) of sec7 tion 45L (relating to termination) is amended by striking 

8 ‘‘December 31, 2008’’ and inserting ‘‘December 31, 

9 2010’’. 

10 (b) ALLOWANCE FOR CONTRACTOR’S PERSONAL

11 RESIDENCE.—Subparagraph (B) of section 45L(a)(1) is 

12 amended to read as follows: 

13 ‘‘(B)(i) acquired by a person from such eli14 gible contractor and used by any person as a 

15 residence during the taxable year, or 

16 ‘‘(ii) used by such eligible contractor as a 

17 residence during the taxable year.’’. 

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

19 this section shall apply to homes acquired after December 

20 31, 2008. 


hsrobinson on PROD1PC76 with BILLS
36 

•S 3098 PCS

1 SEC. 503. EXTENSION AND MODIFICATION OF ENERGY EF2 FICIENT COMMERCIAL BUILDINGS DEDUC3 TION. 

4 (a) EXTENSION.—Section 179D(h) (relating to ter5 mination) is amended by striking ‘‘December 31, 2008’’ 

6 and inserting ‘‘December 31, 2009’’. 

7 (b) ADJUSTMENT OF MAXIMUM DEDUCTION

8 AMOUNT.— 

9 (1) IN GENERAL.—Subparagraph (A) of section 

10 179D(b)(1) (relating to maximum amount of deduc11 tion) is amended by striking ‘‘$1.80’’ and inserting 

12 ‘‘$2.25’’. 

13 (2) PARTIAL ALLOWANCE.—Paragraph (1) of 

14 section 179D(d) is amended— 

15 (A) by striking ‘‘$.60’’ and inserting 

16 ‘‘$0.75’’, and 

17 (B) by striking ‘‘$1.80’’ and inserting 

18 ‘‘$2.25’’. 

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

20 this section shall apply to property placed in service after 

21 the date of the enactment of this Act. 

22 SEC. 504. MODIFICATION AND EXTENSION OF ENERGY EF23 FICIENT APPLIANCE CREDIT FOR APPLI24 ANCES PRODUCED AFTER 2007. 

25 (a) IN GENERAL.—Subsection (b) of section 45M (re26 lating to applicable amount) is amended to read as follows: 


hsrobinson on PROD1PC76 with BILLS
37 

•S 3098 PCS

1 ‘‘(b) APPLICABLE AMOUNT.—For purposes of sub2 section (a)— 

3 ‘‘(1) DISHWASHERS.—The applicable amount 

4 is— 

5 ‘‘(A) $45 in the case of a dishwasher which 

6 is manufactured in calendar year 2008 or 2009 

7 and which uses no more than 324 kilowatt 

8 hours per year and 5.8 gallons per cycle, and 

9 ‘‘(B) $75 in the case of a dishwasher 

10 which is manufactured in calendar year 2008, 

11 2009, or 2010 and which uses no more than 

12 307 kilowatt hours per year and 5.0 gallons per 

13 cycle (5.5 gallons per cycle for dishwashers de14 signed for greater than 12 place settings). 

15 ‘‘(2) CLOTHES WASHERS.—The applicable 

16 amount is— 

17 ‘‘(A) $75 in the case of a residential top18 loading clothes washer manufactured in cal19 endar year 2008 which meets or exceeds a 1.72 

20 modified energy factor and does not exceed a 

21 8.0 water consumption factor, 

22 ‘‘(B) $125 in the case of a residential top23 loading clothes washer manufactured in cal24 endar year 2008 or 2009 which meets or exVerDate Aug 31 2005 23:01 Jun 09, 2008 Jkt 069200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 E:\BILLS\S3098.PCS S3098

hsrobinson on PROD1PC76 with BILLS
38 

•S 3098 PCS

1 ceeds a 1.8 modified energy factor and does not 

2 exceed a 7.5 water consumption factor, 

3 ‘‘(C) $150 in the case of a residential or 

4 commercial clothes washer manufactured in cal5 endar year 2008, 2009, or 2010 which meets or 

6 exceeds 2.0 modified energy factor and does not 

7 exceed a 6.0 water consumption factor, and 

8 ‘‘(D) $250 in the case of a residential or 

9 commercial clothes washer manufactured in cal10 endar year 2008, 2009, or 2010 which meets or 

11 exceeds 2.2 modified energy factor and does not 

12 exceed a 4.5 water consumption factor. 

13 ‘‘(3) REFRIGERATORS.—The applicable amount 

14 is— 

15 ‘‘(A) $50 in the case of a refrigerator 

16 which is manufactured in calendar year 2008, 

17 and consumes at least 20 percent but not more 

18 than 22.9 percent less kilowatt hours per year 

19 than the 2001 energy conservation standards, 

20 ‘‘(B) $75 in the case of a refrigerator 

21 which is manufactured in calendar year 2008 or 

22 2009, and consumes at least 23 percent but no 

23 more than 24.9 percent less kilowatt hours per 

24 year than the 2001 energy conservation stand25 ards, 


hsrobinson on PROD1PC76 with BILLS
39 

•S 3098 PCS

1 ‘‘(C) $100 in the case of a refrigerator 

2 which is manufactured in calendar year 2008, 

3 2009, or 2010, and consumes at least 25 per4 cent but not more than 29.9 percent less kilo5 watt hours per year than the 2001 energy con6 servation standards, and 

7 ‘‘(D) $200 in the case of a refrigerator 

8 manufactured in calendar year 2008, 2009, or 

9 2010 and which consumes at least 30 percent 

10 less energy than the 2001 energy conservation 

11 standards.’’. 

12 (b) ELIGIBLE PRODUCTION.— 

13 (1) SIMILAR TREATMENT FOR ALL APPLI14 ANCES.—Subsection (c) of section 45M (relating to 

15 eligible production) is amended— 

16 (A) by striking paragraph (2), 

17 (B) by striking ‘‘(1) IN GENERAL’’ and all 

18 that follows through ‘‘the eligible’’ and inserting 

19 ‘‘The eligible’’, and 

20 (C) by moving the text of such subsection 

21 in line with the subsection heading and redesig22 nating subparagraphs (A) and (B) as para23 graphs (1) and (2), respectively. 

24 (2) MODIFICATION OF BASE PERIOD.—Para25 graph (2) of section 45M(c), as amended by paraVerDate Aug 31 2005 23:01 Jun 09, 2008 Jkt 069200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6201 E:\BILLS\S3098.PCS S3098

hsrobinson on PROD1PC76 with BILLS
40 

•S 3098 PCS

1 graph (1) of this section, is amended by striking ‘‘3- 

2 calendar year’’ and inserting ‘‘2-calendar year’’. 

3 (c) TYPES OF ENERGY EFFICIENT APPLIANCES.— 

4 Subsection (d) of section 45M (defining types of energy 

5 efficient appliances) is amended to read as follows: 

6 ‘‘(d) TYPES OF ENERGY EFFICIENT APPLIANCE.— 

7 For purposes of this section, the types of energy efficient 

8 appliances are— 

9 ‘‘(1) dishwashers described in subsection (b)(1), 

10 ‘‘(2) clothes washers described in subsection 

11 (b)(2), and 

12 ‘‘(3) refrigerators described in subsection 

13 (b)(3).’’. 

14 (d) AGGREGATE CREDIT AMOUNT ALLOWED.— 

15 (1) INCREASE IN LIMIT.—Paragraph (1) of sec16 tion 45M(e) (relating to aggregate credit amount al17 lowed) is amended to read as follows: 

18 ‘‘(1) AGGREGATE CREDIT AMOUNT ALLOWED.— 

19 The aggregate amount of credit allowed under sub20 section (a) with respect to a taxpayer for any tax21 able year shall not exceed $75,000,000 reduced by 

22 the amount of the credit allowed under subsection 

23 (a) to the taxpayer (or any predecessor) for all prior 

24 taxable years beginning after December 31, 2007.’’. 


hsrobinson on PROD1PC76 with BILLS
41 

•S 3098 PCS

1 (2) EXCEPTION FOR CERTAIN REFRIGERATOR

2 AND CLOTHES WASHERS.—Paragraph (2) of section 

3 45M(e) is amended to read as follows: 

4 ‘‘(2) AMOUNT ALLOWED FOR CERTAIN REFRIG5 ERATORS AND CLOTHES WASHERS.—Refrigerators 

6 described in subsection (b)(3)(D) and clothes wash7 ers described in subsection (b)(2)(D) shall not be 

8 taken into account under paragraph (1).’’. 

9 (e) QUALIFIED ENERGY EFFICIENT APPLIANCES.— 

10 (1) IN GENERAL.—Paragraph (1) of section 

11 45M(f) (defining qualified energy efficient appliance) 

12 is amended to read as follows: 

13 ‘‘(1) QUALIFIED ENERGY EFFICIENT APPLI14 ANCE.—The term ‘qualified energy efficient appli15 ance’ means— 

16 ‘‘(A) any dishwasher described in sub17 section (b)(1), 

18 ‘‘(B) any clothes washer described in sub19 section (b)(2), and 

20 ‘‘(C) any refrigerator described in sub21 section (b)(3).’’. 

22 (2) CLOTHES WASHER.—Section 45M(f)(3) (de23 fining clothes washer) is amended by inserting 

24 ‘‘commercial’’ before ‘‘residential’’ the second place 

25 it appears. 


hsrobinson on PROD1PC76 with BILLS
42 

•S 3098 PCS

1 (3) TOP-LOADING CLOTHES WASHER.—Sub2 section (f) of section 45M (relating to definitions) is 

3 amended by redesignating paragraphs (4), (5), (6), 

4 and (7) as paragraphs (5), (6), (7), and (8), respec5 tively, and by inserting after paragraph (3) the fol6 lowing new paragraph: 

7 ‘‘(4) TOP-LOADING CLOTHES WASHER.—The 

8 term ‘top-loading clothes washer’ means a clothes 

9 washer which has the clothes container compartment 

10 access located on the top of the machine and which 

11 operates on a vertical axis.’’. 

12 (4) REPLACEMENT OF ENERGY FACTOR.—Sec13 tion 45M(f)(6), as redesignated by paragraph (3), is 

14 amended to read as follows: 

15 ‘‘(6) MODIFIED ENERGY FACTOR.—The term 

16 ‘modified energy factor’ means the modified energy 

17 factor established by the Department of Energy for 

18 compliance with the Federal energy conservation 

19 standard.’’. 

20 (5) GALLONS PER CYCLE; WATER CONSUMP21 TION FACTOR.—Section 45M(f) (relating to defini22 tions), as amended by paragraph (3), is amended by 

23 adding at the end the following: 

24 ‘‘(9) GALLONS PER CYCLE.—The term ‘gallons 

25 per cycle’ means, with respect to a dishwasher, the 


hsrobinson on PROD1PC76 with BILLS
43 

•S 3098 PCS

1 amount of water, expressed in gallons, required to 

2 complete a normal cycle of a dishwasher. 

3 ‘‘(10) WATER CONSUMPTION FACTOR.—The 

4 term ‘water consumption factor’ means, with respect 

5 to a clothes washer, the quotient of the total weight6 ed per-cycle water consumption divided by the cubic 

7 foot (or liter) capacity of the clothes washer.’’. 

8 (f) EFFECTIVE DATE.—The amendments made by 

9 this section shall apply to appliances produced after De10 cember 31, 2007. 

11 TITLE VI—EXTENSION OF AL12 TERNATIVE FUELS AND MAR13 GINAL PRODUCTION 

14 SEC. 601. PERCENTAGE DEPLETION FOR MARGINAL WELL 

15 PRODUCTION. 

16 (a) IN GENERAL.—Section 613A(c)(6)(H) (relating 

17 to temporary suspension of taxable income limit with re18 spect to marginal production) is amended by striking 

19 ‘‘January 1, 2008’’ and inserting ‘‘January 1, 2010’’. 

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

21 this section shall apply to taxable years beginning after 

22 December 31, 2007. 


hsrobinson on PROD1PC76 with BILLS
44 

•S 3098 PCS

1 SEC. 602. CREDITS FOR BIODIESEL AND RENEWABLE DIE2 SEL. 

3 (a) IN GENERAL.—Sections 40A(g), 6426(c)(6), and 

4 6427(e)(5)(B) are each amended by striking ‘‘December 

5 31, 2008’’ and inserting ‘‘December 31, 2009’’. 

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

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

8 after December 31, 2008. 

9 SEC. 603. CREDIT FOR ALTERNATIVE FUELS. 

10 (a) IN GENERAL.—Sections 6426(d)(4), 6426(e)(3), 

11 and 6427(e)(5)(C) are each amended by striking ‘‘Sep12 tember 30, 2009’’ and inserting ‘‘December 31, 2009’’. 

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

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

15 after September 30, 2009. 

16 TITLE VII—TAX 

17 ADMINISTRATION 

18 SEC. 701. PERMANENT AUTHORITY FOR UNDERCOVER OP19 ERATIONS. 

20 (a) IN GENERAL.—Section 7608(c) (relating to rules 

21 relating to undercover operations) is amended by striking 

22 paragraph (6). 

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

24 this section shall apply to operations conducted after the 

25 date of the enactment of this Act. 


hsrobinson on PROD1PC76 with BILLS
45 

•S 3098 PCS

1 SEC. 702. PERMANENT DISCLOSURES OF CERTAIN TAX RE2 TURN INFORMATION. 

3 (a) DISCLOSURES TO FACILITATE COMBINED EM4 PLOYMENT TAX REPORTING.— 

5 (1) IN GENERAL.—Section 6103(d)(5) (relating 

6 to disclosure for combined employment tax report7 ing) is amended— 

8 (A) by striking ‘‘REPORTING’’ in the head9 ing thereof and all that follows through ‘‘The 

10 Secretary’’ in subparagraph (A) and inserting 

11 ‘‘REPORTING.—The Secretary’’, and 

12 (B) by striking subparagraph (B). 

13 (2) EFFECTIVE DATE.—The amendments made 

14 by this subsection shall apply to disclosures after the 

15 date of the enactment of this Act. 

16 (b) DISCLOSURES RELATING TO CERTAIN PROGRAMS

17 ADMINISTERED BY THE DEPARTMENT OF VETERANS AF18 FAIRS.— 

19 (1) IN GENERAL.—Section 6103(l)(7)(D) (relat20 ing to programs to which rule applies) is amended 

21 by striking the last sentence. 

22 (2) TECHNICAL AMENDMENT.—Section 

23 6103(l)(7)(D)(viii)(III) is amended by striking ‘‘sec24 tions 1710(a)(1)(I), 1710(a)(2), 1710(b), and 

25 1712(a)(2)(B)’’ and inserting ‘‘sections 

26 1710(a)(2)(G), 1710(a)(3), and 1710(b)’’. 


hsrobinson on PROD1PC76 with BILLS
46 

•S 3098 PCS

1 SEC. 703. DISCLOSURE OF INFORMATION RELATING TO 

2 TERRORIST ACTIVITIES. 

3 (a) DISCLOSURE OF RETURN INFORMATION TO AP4 PRISE APPROPRIATE OFFICIALS OF TERRORIST ACTIVI5 TIES.—Clause (iv) of section 6103(i)(3)(C) (relating to 

6 termination) is amended by striking ‘‘December 31, 2007’’ 

7 and inserting ‘‘December 31, 2009’’. 

8 (b) DISCLOSURE UPON REQUEST OF INFORMATION

9 RELATING TO TERRORIST ACTIVITIES.—Subparagraph 

10 (E) of section 6103(i)(7) (relating to termination) is 

11 amended by striking ‘‘December 31, 2007’’ and inserting 

12 ‘‘December 31, 2009’’. 

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

14 this section shall apply to disclosures after the date of the 

15 enactment of this Act. 


hsrobinson on PROD1PC76 with BILLS

hsrobinson on PROD1PC76 with BILLS
Calendar No. 771 

110TH CONGRESS 

2D SESSION S. 3098 

A BILL 

To amend the Internal Revenue Code of 1986 to 

purposes. extend certain expiring provisions, and for other 

JUNE 9, 2008 

Read the second time and placed on the calendar 


hsrobinson on PROD1PC76 with BILLS