II 

110TH CONGRESS 

2D SESSION S. 3349 

To increase energy assistance for low-income persons, to extend energy tax 

incentives, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 28, 2008 

Ms. COLLINS introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To increase energy assistance for low-income persons, to 

extend energy tax incentives, 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; TABLE OF CONTENTS. 

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

5 ‘‘Energy Assistance Act of 2008’’. 

6 (b) TABLE OF CONTENTS.—The table of contents of 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—ENERGY ASSISTANCE 

Sec. 101. Weatherization assistance. 

Sec. 102. Energy Assistance Fund. 

TITLE II—TAX PROVISIONS 


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Sec. 200. Reference. 

Subtitle A—Clean Stoves 

Sec. 201. Credit for replacement of wood-burning stoves meeting environmental 

standards. 

Subtitle B—Renewable Energy Incentives 

Sec. 211. Renewable energy credit. 

Sec. 212. Production credit for electricity produced from marine renewables. 

Sec. 213. Energy credit. 

Sec. 214. Credit for residential energy efficient property. 

Sec. 215. Special rule to implement FERC and State electric restructuring policy. 

Sec. 216. New clean renewable energy bonds. 

Subtitle C—Carbon Mitigation Provisions 

Sec. 221. Expansion and modification of advanced coal project investment credit. 

Sec. 222. Expansion and modification of coal gasification investment credit. 

Sec. 223. Temporary increase in coal excise tax. 

Sec. 224. Special rules for refund of the coal excise tax to certain coal producers and exporters. 

Sec. 225. Carbon audit of the tax code. 

Subtitle D—Transportation and Domestic Fuel Security Provisions 

Sec. 231. Inclusion of cellulosic biofuel in bonus depreciation for biomass ethanol plant property. 

Sec. 232. Credits for biodiesel and renewable diesel. 

Sec. 233. Clarification that credits for fuel are designed to provide an incentive 

for United States production. 

Sec. 234. Credit for new qualified plug-in electric drive motor vehicles. 

Sec. 235. Exclusion from heavy truck tax for idling reduction units and advanced insulation. 

Sec. 236. Transportation fringe benefit to bicycle commuters. 

Sec. 237. Alternative fuel vehicle refueling property credit. 

Subtitle E—Energy Conservation and Efficiency Provisions 

Sec. 241. Qualified energy conservation bonds. 

Sec. 242. Credit for nonbusiness energy property. 

Sec. 243. Energy efficient commercial buildings deduction. 

Sec. 244. Modifications of energy efficient appliance credit for appliances produced after 2007. 

Sec. 245. Accelerated recovery period for depreciation of smart meters and 

smart grid systems. 

Sec. 246. Qualified green building and sustainable design projects. 


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1 TITLE I—ENERGY ASSISTANCE 

2 SEC. 101. WEATHERIZATION ASSISTANCE. 

3 Section 422 of the Energy Conservation and Produc4 tion Act (42 U.S.C. 6872) is amended to read as follows: 

5 ‘‘SEC. 422. AUTHORIZATION OF APPROPRIATIONS. 

6 ‘‘There are authorized to be appropriated to carry out 

7 the weatherization program under this part— 

8 ‘‘(1) $1,800,000,000 for fiscal year 2009; 

9 ‘‘(2) $2,100,000,000 for fiscal year 2010; and 

10 ‘‘(3) $2,400,000,000 for fiscal year 2011.’’. 

11 SEC. 102. ENERGY ASSISTANCE FUND. 

12 (a) DEFINITIONS.—In this section: 

13 (1) FUND.—The term ‘‘Fund’’ means the En14 ergy Assistance Fund established under subsection 

15 (b). 

16 (2) SECRETARY CONCERNED.—The term ‘‘Sec17 retary concerned’’ means, with respect to programs 

18 carried out by each Secretary— 

19 (A) the Secretary of Agriculture; 

20 (B) the Secretary of Energy; 

21 (C) the Secretary of Housing and Urban 

22 Development; 

23 (D) the Secretary of Transportation; and 

24 (E) the Administrator of the Small Busi25 ness Administration. 


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1 (b) ESTABLISHMENT.—There is established in the 

2 Treasury of the United States a revolving fund, to be 

3 known as the ‘‘Energy Assistance Fund’’, consisting of 

4 such amounts as are appropriated to the Fund under sub5 section (h)(1). 

6 (c) EXPENDITURES FROM FUND.— 

7 (1) IN GENERAL.—Subject to paragraph (2), on 

8 request by the Secretary concerned, the Secretary of 

9 the Treasury shall transfer from the Fund to the 

10 Secretary concerned such amounts as the Secretary 

11 concerned determines are necessary to provide to 

12 carry out 1 or more qualified purposes described in 

13 subsections (d), (e) and (f). 

14 (2) ADMINISTRATIVE EXPENSES.—An amount 

15 not exceeding 10 percent of the amounts in the 

16 Fund shall be available for each fiscal year to pay 

17 the administrative expenses necessary to carry out 

18 this section. 

19 (d) LOW-INTEREST LOANS FOR PURCHASE AND IN20 STALLATION OF QUALIFYING ENERGY EFFICIENT PROP21 ERTY.— 

22 (1) IN GENERAL.—To the extent that the Sec23 retary concerned has authority under other law to 

24 make loans or grants to persons to purchase and in25 stall qualifying property, the Secretary concerned 


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1 may make available to eligible United States persons 

2 loans under this subsection for the purchase and in3 stallation of qualifying property. 

4 (2) QUALIFYING PROPERTY.—For the purpose 

5 of paragraph (1), qualifying property means— 

6 (A) any component which constitutes a 

7 qualified energy efficiency improvement (as de8 fined in section 25C(c) of the Internal Revenue 

9 Code of 1986); 

10 (B) property to heat water for use in a 

11 dwelling unit located in the United States and 

12 used a residence by the person if at least half 

13 of the energy used by such property for such 

14 purpose is derived from the sun; 

15 (C) property which uses solar energy to 

16 generate electricity for use in a dwelling unit lo17 cated in the United States and used by the per18 son (in the case of an individual) as a resi19 dence; 

20 (D) qualified fuel cell property (as defined 

21 in section 48(c)(1) of that Code) installed on or 

22 in connection with a dwelling unit located in the 

23 United States and used as a principal residence 

24 (within the meaning of section 121 of that 


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1 Code) by the person (in the case of an indi2 vidual); or 

3 (E) a compliant stove (as defined in sec4 tion 25E(c)(2) of that Code) which— 

5 (i) is installed in a dwelling unit lo6 cated in the United States; and 

7 (ii) replaces a noncompliant stove (as 

8 defined in section 25E(c)(3) of that Code) 

9 used in such dwelling unit. 

10 (3) ELIGIBILITY.—To be eligible to receive a 

11 loan under this subsection, a person that is an indi12 vidual shall have a household income of not to ex13 ceed 115 percent of the area median household in14 come, as determined by the Secretary concerned. 

15 (4) USE OF LOAN.—The recipient of a loan 

16 under this subsection may use the loan only to fund 

17 improvements to property owned by, and for the 

18 benefit of, the recipient. 

19 (5) AMOUNT.—The amount of a loan made to 

20 a person under this subsection shall equal the lesser 

21 of— 

22 (A) 90 percent of the difference between— 

23 (i) the cost incurred by the person for 

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1 fying property, as approved by the Sec2 retary; and 

3 (ii) the amount of any credit allowable 

4 to the person with respect to such property 

5 under section 25C, 25D, or 25E, of the In6 ternal Revenue Code of 1986; or 

7 (B) $30,000. 

8 (6) TERM OF LOANS.—A loan under this sub9 section shall have a term of not to exceed 15 years. 

10 (e) LOW-INTEREST LOANS FOR PURCHASE AND IN11 STALLATION OF IDLING REDUCTION AND ADVANCED IN12 SULATION FOR HEAVY TRUCKS.— 

13 (1) IN GENERAL.—To the extent that the Sec14 retary concerned has authority under other law to 

15 make loans or grants to persons to purchase and in16 stall idling reduction devices described in section 

17 4053(9) of the Internal Revenue Code of 1986 or 

18 advanced insulation described in section 4053(10) of 

19 such Code, the Secretary concerned may make avail20 able loans under this subsection to United States 

21 persons for the purchase and installation of such 

22 idling reduction devices and advanced insulation. 

23 (2) USE OF LOAN.—The recipient of a loan 

24 under this subsection may use the loan only to fund 


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1 improvements to property owned by, and for the 

2 benefit of, the recipient. 

3 (3) AMOUNT.— 

4 (A) IN GENERAL.—The amount of a loan 

5 made to a person under this subsection shall 

6 equal 90 percent of the difference between— 

7 (i) the cost incurred by the person for 

8 the purchase and installation of the idling 

9 reduction devices and advanced insulation 

10 described in subsection (a), as approved by 

11 the Secretary concerned; and 

12 (ii) 12 percent of the amount for 

13 which the idling reduction devices or ad14 vanced insulation was sold. 

15 (B) SPECIAL RULES.—In the case of any 

16 property described in paragraphs (2), (3), or 

17 (4) of section 4051(a) of the Internal Revenue 

18 Code of 1986, the amount determined under 

19 subparagraph (A) shall be zero. 

20 (C) DETERMINATION OF PRICE.—Rules 

21 similar to the rules of section 4052(b) of the 

22 Internal Revenue Code of 1986 shall apply for 

23 purposes of subparagraph (B). 


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1 (4) LOAN TERMS.—The Secretary concerned 

2 shall establish terms for loans made under this sub3 section, as determined by the Secretary concerned. 

4 (f) LOW-INTEREST LOANS FOR PURCHASE AND IN5 STALLATION OF ALTERNATIVE REFUELING STATIONS.— 

6 (1) IN GENERAL.—To the extent that the Sec7 retary concerned has authority under other law to 

8 make loans or grants to persons for the purchase 

9 and installation of any qualified alternative fuel vehi10 cle refueling property (as defined in section 30C(c) 

11 of the Internal Revenue Code of 1986), the Sec12 retary concerned may make available loans under 

13 this subsection to United States persons for the pur14 chase and installation of any such qualified alter15 native fuel vehicle refueling property placed in serv16 ice by the person during a taxable year. 

17 (2) USE OF LOAN.—The recipient of a loan 

18 under this subsection may use the loan only to fund 

19 improvements to property owned by, and for the 

20 benefit of, the recipient. 

21 (3) AMOUNT.—The amount of a loan made to 

22 a person under this subsection shall equal 90 per23 cent of the difference between— 

24 (A) the cost incurred by the person for the 

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1 native fuel vehicle refueling property described 

2 in paragraph (1), as approved by the Secretary 

3 concerned; and 

4 (B) the amount of any credit allowable to 

5 the person under section 30C of the Internal 

6 Revenue Code of 1986. 

7 (4) LOAN TERMS.—The Secretary concerned 

8 shall establish terms for loans made under this sub9 section, as determined by the Secretary concerned. 

10 (g) TRANSFERS OF AMOUNTS.— 

11 (1) IN GENERAL.—The amounts required to be 

12 transferred to the Fund under this section shall be 

13 transferred at least monthly from the general fund 

14 of the Treasury to the Fund on the basis of esti15 mates made by the Secretary of the Treasury. 

16 (2) ADJUSTMENTS.—Proper adjustment shall 

17 be made in amounts subsequently transferred to the 

18 extent prior estimates were in excess of or less than 

19 the amounts required to be transferred. 

20 (h) FUNDING.— 

21 (1) MANDATORY FUNDING.— 

22 (A) IN GENERAL.—Notwithstanding any 

23 other provision of law, on October 1, 2008, out 

24 of any funds in the Treasury not otherwise ap25 propriated, the Secretary of the Treasury shall 


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1 transfer to the Fund for the cost of loans to 

2 carry out the purposes of the Fund 

3 $1,000,000,000, to remain available until ex4 pended. 

5 (B) RECEIPT AND ACCEPTANCE.—The 

6 Fund shall be entitled to receive, shall accept, 

7 and shall use to carry out the purposes of the 

8 Fund the funds transferred under subpara9 graph (A), without further appropriation. 

10 (2) AUTHORIZATION OF APPROPRIATIONS.— 

11 (A) IN GENERAL.—In addition to the 

12 amount made available under paragraph (1), 

13 there are authorized to be appropriated to the 

14 Fund such sums as are necessary to carry out 

15 the purposes of the Fund. 

16 (B) ADDITIONAL FUNDING.—To the extent 

17 that a Secretary described in subsection (a) has 

18 authority under other law to make loans or 

19 grants described in subsection (d)(1), (e)(1), or 

20 (f)(1), in addition to any other funds made 

21 available to carry out that authority under any 

22 other provision of law, there are authorized to 

23 be appropriated to the Secretary such sums as 

24 are necessary for the Secretary to provide addi25 tional loans or grants under that authority. 


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1 TITLE II—TAX PROVISIONS 

2 SEC. 200. REFERENCE. 

3 Except as otherwise expressly provided, whenever in 

4 this title an amendment or repeal is expressed in terms 

5 of an amendment to, or repeal of, a section or other provi6 sion, the reference shall be considered to be made to a 

7 section or other provision of the Internal Revenue Code 

8 of 1986. 

9 Subtitle A—Clean Stoves 

10 SEC. 201. CREDIT FOR REPLACEMENT OF WOOD-BURNING 

11 STOVES MEETING ENVIRONMENTAL STAND12 ARDS. 

13 (a) IN GENERAL.—Subpart A of part IV of sub14 chapter A of chapter 1 (relating to nonrefundable personal 

15 credits) is amended by inserting after section 25D the fol16 lowing new section: 

17 ‘‘SEC. 25E. REPLACEMENT OF WOOD-BURNING STOVES. 

18 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in19 dividual, there shall be allowed as a credit against the tax 

20 imposed by this chapter for the taxable year an amount 

21 equal to the qualified stove replacement expenditures paid 

22 or incurred by the taxpayer for the taxable year. 

23 ‘‘(b) LIMITATION.—The amount of the credit under 

24 subsection (a) with respect to the replacement of each non25 compliant wood stove shall not exceed $500. 


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1 ‘‘(c) QUALIFIED STOVE REPLACEMENT EXPENDI2 TURES.—For purposes of this section— 

3 ‘‘(1) IN GENERAL.—The term ‘qualified stove 

4 replacement expenditures’ means expenditures made 

5 by the taxpayer for the purchase and installation of 

6 a compliant stove which— 

7 ‘‘(A) is installed in a dwelling unit located 

8 in the United States, and 

9 ‘‘(B) replaces a noncompliant wood stove 

10 used in such dwelling unit. 

11 Such term includes expenditures for labor costs 

12 properly allocable to the onsite preparation, assem13 bly, or original installation of the compliant stove. 

14 ‘‘(2) COMPLIANT STOVE.—The term ‘compliant 

15 stove’ means— 

16 ‘‘(A) a wood-burning stove which meets the 

17 requirements set forth in the ‘Standards of Per18 formance for New Residential Wood Heaters’ 

19 issued by the Environmental Protection Agency, 

20 and 

21 ‘‘(B) a pellet or corn-burning stove. 

22 ‘‘(3) NONCOMPLIANT WOOD STOVE.—The term 

23 ‘noncompliant wood stove’ means any wood-burning 

24 stove that is not a compliant stove. 


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1 ‘‘(d) JOINT OCCUPANCY, COOPERATIVE HOUSING

2 CORPORATIONS, AND WHEN EXPENDITURE MADE.— 

3 Rules similar to the rules of paragraphs (4), (5), and (8) 

4 of section 25D(e) shall apply for purposes of this section. 

5 ‘‘(e) BASIS ADJUSTMENT.—For purposes of this sub6 title, if a credit is allowed under this section for any ex7 penditure with respect to any property, the increase in the 

8 basis of such property which would (but for this sub9 section) result from such expenditure shall be reduced by 

10 the amount of the credit so allowed. 

11 ‘‘(f) TERMINATION.—This section shall not apply to 

12 expenditures made after December 31, 2010.’’. 

13 (b) CONFORMING AMENDMENTS.— 

14 (1) Subsection (a) of section 1016 is amend15 ed— 

16 (A) by striking ‘‘and’’ at the end of para17 graph (36), 

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

19 paragraph (37) and inserting ‘‘, and’’, and 

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

21 paragraph: 

22 ‘‘(38) to the extent provided in section 25E(e), 

23 in the case of amounts with respect to which a credit 

24 has been allowed under section 25E.’’. 


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1 (2) The table of sections for subpart A of part 

2 IV of subchapter A of chapter 1 is amended by in3 serting after the item relating to section 25D the 

4 following new item: 

‘‘Sec. 25E. Replacement of wood-burning stoves.’’. 

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

6 this section shall apply to expenditures for stoves pur7 chased after the date of the enactment of this Act. 

8 Subtitle B—Renewable Energy 

9 Incentives 

10 SEC. 211. RENEWABLE ENERGY CREDIT. 

11 (a) EXTENSION OF CREDIT.— 

12 (1) 1-YEAR EXTENSION FOR WIND FACILI13 TIES.—Paragraph (1) of section 45(d) is amended 

14 by striking ‘‘January 1, 2009’’ and inserting ‘‘Janu15 ary 1, 2010’’. 

16 (2) 3-YEAR EXTENSION FOR CERTAIN OTHER

17 FACILITIES.—Each of the following provisions of 

18 section 45(d) is amended by striking ‘‘January 1, 

19 2009’’ and inserting ‘‘January 1, 2012’’: 

20 (A) Clauses (i) and (ii) of paragraph 

21 (2)(A). 

22 (B) Clauses (i)(I) and (ii) of paragraph 

23 (3)(A). 

24 (C) Paragraph (4). 

25 (D) Paragraph (5). 


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1 (E) Paragraph (6). 

2 (F) Paragraph (7). 

3 (G) Subparagraphs (A) and (B) of para4 graph (9). 

5 (b) MODIFICATION OF CREDIT PHASEOUT.— 

6 (1) REPEAL OF PHASEOUT.—Subsection (b) of 

7 section 45 is amended— 

8 (A) by striking paragraph (1), and 

9 (B) by striking ‘‘the 8 cent amount in 

10 paragraph (1),’’ in paragraph (2) thereof. 

11 (2) LIMITATION BASED ON INVESTMENT IN FA12 CILITY.—Subsection (b) of section 45 is amended by 

13 inserting before paragraph (2) the following new 

14 paragraph: 

15 ‘‘(1) LIMITATION BASED ON INVESTMENT IN

16 FACILITY.— 

17 ‘‘(A) IN GENERAL.—In the case of any 

18 qualified facility originally placed in service 

19 after December 31, 2009, the amount of the 

20 credit determined under subsection (a) for any 

21 taxable year with respect to electricity produced 

22 at such facility shall not exceed the product 

23 of— 

24 ‘‘(i) the applicable percentage with re25 spect to such facility, multiplied by 


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1 ‘‘(ii) the eligible basis of such facility. 

2 ‘‘(B) CARRYFORWARD OF UNUSED LIMITA3 TION AND EXCESS CREDIT.— 

4 ‘‘(i) UNUSED LIMITATION.—If the 

5 limitation imposed under subparagraph (A) 

6 with respect to any facility for any taxable 

7 year exceeds the prelimitation credit for 

8 such facility for such taxable year, the lim9 itation imposed under subparagraph (A) 

10 with respect to such facility for the suc11 ceeding taxable year shall be increased by 

12 the amount of such excess. 

13 ‘‘(ii) EXCESS CREDIT.—If the 

14 prelimitation credit with respect to any fa15 cility for any taxable year exceeds the limi16 tation imposed under subparagraph (A) 

17 with respect to such facility for such tax18 able year, the credit determined under sub19 section (a) with respect to such facility for 

20 the succeeding taxable year (determined 

21 before the application of subparagraph (A) 

22 for such succeeding taxable year) shall be 

23 increased by the amount of such excess. 

24 With respect to any facility, no amount 

25 may be carried forward under this clause 


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1 to any taxable year beginning after the 10- 

2 year period described in subsection 

3 (a)(2)(A)(ii) with respect to such facility. 

4 ‘‘(iii) PRELIMITATION CREDIT.—The 

5 term ‘prelimitation credit’ with respect to 

6 any facility for a taxable year means the 

7 credit determined under subsection (a) 

8 with respect to such facility for such tax9 able year, determined without regard to 

10 subparagraph (A) and after taking into ac11 count any increase for such taxable year 

12 under clause (ii). 

13 ‘‘(C) APPLICABLE PERCENTAGE.—For 

14 purposes of this paragraph— 

15 ‘‘(i) IN GENERAL.—The term ‘applica16 ble percentage’ means, with respect to any 

17 facility, the appropriate percentage pre18 scribed by the Secretary for the month in 

19 which such facility is originally placed in 

20 service. 

21 ‘‘(ii) METHOD OF PRESCRIBING AP22 PLICABLE PERCENTAGES.—The applicable 

23 percentages prescribed by the Secretary for 

24 any month under clause (i) shall be per25 centages which yield over a 10-year period 


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1 amounts of limitation under subparagraph 

2 (A) which have a present value equal to 35 

3 percent of the eligible basis of the facility. 

4 ‘‘(iii) METHOD OF DISCOUNTING.— 

5 The present value under clause (ii) shall be 

6 determined— 

7 ‘‘(I) as of the last day of the 1st 

8 year of the 10-year period referred to 

9 in clause (ii), 

10 ‘‘(II) by using a discount rate 

11 equal to the greater of 110 percent of 

12 the Federal long-term rate as in effect 

13 under section 1274(d) for the month 

14 preceding the month for which the ap15 plicable percentage is being pre16 scribed, or 4.5 percent, and 

17 ‘‘(III) by taking into account the 

18 limitation under subparagraph (A) for 

19 any year on the last day of such year. 

20 ‘‘(D) ELIGIBLE BASIS.—For purposes of 

21 this paragraph— 

22 ‘‘(i) IN GENERAL.—The term ‘eligible 

23 basis’ means, with respect to any facility, 

24 the sum of— 


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1 ‘‘(I) the basis of such facility de2 termined as of the time that such fa3 cility is originally placed in service, 

4 and 

5 ‘‘(II) the portion of the basis of 

6 any shared qualified property which is 

7 properly allocable to such facility 

8 under clause (ii). 

9 ‘‘(ii) RULES FOR ALLOCATION.—For 

10 purposes of subclause (II) of clause (i), the 

11 basis of shared qualified property shall be 

12 allocated among all qualified facilities 

13 which are projected to be placed in service 

14 and which require utilization of such prop15 erty in proportion to projected generation 

16 from such facilities. 

17 ‘‘(iii) SHARED QUALIFIED PROP18 ERTY.—For purposes of this paragraph, 

19 the term ‘shared qualified property’ means, 

20 with respect to any facility, any property 

21 described in section 168(e)(3)(B)(vi)— 

22 ‘‘(I) which a qualified facility will 

23 require for utilization of such facility, 

24 and 


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1 ‘‘(II) which is not a qualified fa2 cility. 

3 ‘‘(iv) SPECIAL RULE RELATING TO

4 GEOTHERMAL FACILITIES.—In the case of 

5 any qualified facility using geothermal en6 ergy to produce electricity, the basis of 

7 such facility for purposes of this paragraph 

8 shall be determined as though intangible 

9 drilling and development costs described in 

10 section 263(c) were capitalized rather than 

11 expensed. 

12 ‘‘(E) SPECIAL RULE FOR FIRST AND LAST

13 YEAR OF CREDIT PERIOD.—In the case of any 

14 taxable year any portion of which is not within 

15 the 10-year period described in subsection 

16 (a)(2)(A)(ii) with respect to any facility, the 

17 amount of the limitation under subparagraph 

18 (A) with respect to such facility shall be re19 duced by an amount which bears the same ratio 

20 to the amount of such limitation (determined 

21 without regard to this subparagraph) as such 

22 portion of the taxable year which is not within 

23 such period bears to the entire taxable year. 

24 ‘‘(F) ELECTION TO TREAT ALL FACILITIES

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1 ITY.—At the election of the taxpayer, all quali2 fied facilities which are part of the same project 

3 and which are placed in service during the same 

4 calendar year shall be treated for purposes of 

5 this section as 1 facility which is placed in serv6 ice at the mid-point of such year or the first 

7 day of the following calendar year.’’. 

8 (c) TRASH FACILITY CLARIFICATION.—Paragraph 

9 (7) of section 45(d) is amended— 

10 (1) by striking ‘‘facility which burns’’ and in11 serting ‘‘facility (other than a facility described in 

12 paragraph (6)) which uses’’, and 

13 (2) by striking ‘‘COMBUSTION’’. 

14 (d) EXPANSION OF BIOMASS FACILITIES.— 

15 (1) OPEN-LOOP BIOMASS FACILITIES.—Para16 graph (3) of section 45(d) is amended by redesig17 nating subparagraph (B) as subparagraph (C) and 

18 by inserting after subparagraph (A) the following 

19 new subparagraph: 

20 ‘‘(B) EXPANSION OF FACILITY.—Such 

21 term shall include a new unit placed in service 

22 after the date of the enactment of this subpara23 graph in connection with a facility described in 

24 subparagraph (A), but only to the extent of the 


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1 increased amount of electricity produced at the 

2 facility by reason of such new unit.’’. 

3 (2) CLOSED-LOOP BIOMASS FACILITIES.—Para4 graph (2) of section 45(d) is amended by redesig5 nating subparagraph (B) as subparagraph (C) and 

6 inserting after subparagraph (A) the following new 

7 subparagraph: 

8 ‘‘(B) EXPANSION OF FACILITY.—Such 

9 term shall include a new unit placed in service 

10 after the date of the enactment of this subpara11 graph in connection with a facility described in 

12 subparagraph (A)(i), but only to the extent of 

13 the increased amount of electricity produced at 

14 the facility by reason of such new unit.’’. 

15 (e) SALES OF NET ELECTRICITY TO REGULATED

16 PUBLIC UTILITIES TREATED AS SALES TO UNRELATED

17 PERSONS.—Paragraph (4) of section 45(e) is amended by 

18 adding at the end the following new sentence: ‘‘The net 

19 amount of electricity sold by any taxpayer to a regulated 

20 public utility (as defined in section 7701(a)(33)) shall be 

21 treated as sold to an unrelated person.’’. 

22 (f) MODIFICATION OF RULES FOR HYDROPOWER

23 PRODUCTION.—Subparagraph (C) of section 45(c)(8) is 

24 amended to read as follows: 


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1 ‘‘(C) NONHYDROELECTRIC DAM.—For pur2 poses of subparagraph (A), a facility is de3 scribed in this subparagraph if— 

4 ‘‘(i) the hydroelectric project installed 

5 on the nonhydroelectric dam is licensed by 

6 the Federal Energy Regulatory Commis7 sion and meets all other applicable environ8 mental, licensing, and regulatory require9 ments, 

10 ‘‘(ii) the nonhydroelectric dam was 

11 placed in service before the date of the en12 actment of this paragraph and operated 

13 for flood control, navigation, or water sup14 ply purposes and did not produce hydro15 electric power on the date of the enactment 

16 of this paragraph, and 

17 ‘‘(iii) the hydroelectric project is oper18 ated so that the water surface elevation at 

19 any given location and time that would 

20 have occurred in the absence of the hydro21 electric project is maintained, subject to 

22 any license requirements imposed under 

23 applicable law that change the water sur24 face elevation for the purpose of improving 


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1 environmental quality of the affected wa2 terway. 

3 The Secretary, in consultation with the Federal 

4 Energy Regulatory Commission, shall certify if 

5 a hydroelectric project licensed at a nonhydro6 electric dam meets the criteria in clause (iii). 

7 Nothing in this section shall affect the stand8 ards under which the Federal Energy Regu9 latory Commission issues licenses for and regu10 lates hydropower projects under part I of the 

11 Federal Power Act.’’. 

12 (g) EFFECTIVE DATE.— 

13 (1) IN GENERAL.—Except as otherwise pro14 vided in this subsection, the amendments made by 

15 this section shall apply to property originally placed 

16 in service after December 31, 2008. 

17 (2) REPEAL OF CREDIT PHASEOUT.—The 

18 amendments made by subsection (b)(1) shall apply 

19 to taxable years ending after December 31, 2008. 

20 (3) LIMITATION BASED ON INVESTMENT IN FA21 CILITY.—The amendment made by subsection (b)(2) 

22 shall apply to property originally placed in service 

23 after December 31, 2009. 

24 (4) TRASH FACILITY CLARIFICATION; SALES TO

25 RELATED REGULATED PUBLIC UTILITIES.—The 


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1 amendments made by subsections (c) and (e) shall 

2 apply to electricity produced and sold after the date 

3 of the enactment of this Act. 

4 (5) EXPANSION OF BIOMASS FACILITIES.—The 

5 amendments made by subsection (d) shall apply to 

6 property placed in service after the date of the en7 actment of this Act. 

8 SEC. 212. PRODUCTION CREDIT FOR ELECTRICITY PRO9 DUCED FROM MARINE RENEWABLES. 

10 (a) IN GENERAL.—Paragraph (1) of section 45(c) is 

11 amended by striking ‘‘and’’ at the end of subparagraph 

12 (G), by striking the period at the end of subparagraph 

13 (H) and inserting ‘‘, and’’, and by adding at the end the 

14 following new subparagraph: 

15 ‘‘(I) marine and hydrokinetic renewable en16 ergy.’’. 

17 (b) MARINE RENEWABLES.—Subsection (c) of sec18 tion 45 is amended by adding at the end the following 

19 new paragraph: 

20 ‘‘(10) MARINE AND HYDROKINETIC RENEW21 ABLE ENERGY.— 

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

23 hydrokinetic renewable energy’ means energy 

24 derived from— 


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

2 oceans, estuaries, and tidal areas, 

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

4 lakes, and streams, 

5 ‘‘(iii) free flowing water in an irriga6 tion system, canal, or other man-made 

7 channel, including projects that utilize non8 mechanical structures to accelerate the 

9 flow of water for electric power production 

10 purposes, or 

11 ‘‘(iv) differentials in ocean tempera12 ture (ocean thermal energy conversion). 

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

14 include any energy which is derived from any 

15 source which utilizes a dam, diversionary struc16 ture (except as provided in subparagraph 

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

18 production purposes.’’. 

19 (c) DEFINITION OF FACILITY.—Subsection (d) of 

20 section 45 is amended by adding at the end the following 

21 new paragraph: 

22 ‘‘(11) MARINE AND HYDROKINETIC RENEW23 ABLE ENERGY FACILITIES.—In the case of a facility 

24 producing electricity from marine and hydrokinetic 


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1 renewable energy, the term ‘qualified facility’ means 

2 any facility owned by the taxpayer— 

3 ‘‘(A) which has a nameplate capacity rat4 ing of at least 150 kilowatts, and 

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

6 on or after the date of the enactment of this 

7 paragraph and before January 1, 2012.’’. 

8 (d) CREDIT RATE.—Subparagraph (A) of section 

9 45(b)(4) is amended by striking ‘‘or (9)’’ and inserting 

10 ‘‘(9), or (11)’’. 

11 (e) COORDINATION WITH SMALL IRRIGATION

12 POWER.—Paragraph (5) of section 45(d), as amended by 

13 section 211, is amended by striking ‘‘January 1, 2012’’ 

14 and inserting ‘‘the date of the enactment of paragraph 

15 (11)’’. 

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

17 this section shall apply to electricity produced and sold 

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

19 years ending after such date. 

20 SEC. 213. ENERGY CREDIT. 

21 (a) EXTENSION OF CREDIT.— 

22 (1) SOLAR ENERGY PROPERTY.—Paragraphs 

23 (2)(A)(i)(II) and (3)(A)(ii) of section 48(a) are each 

24 amended by striking ‘‘January 1, 2009’’ and insert25 ing ‘‘January 1, 2015’’. 


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

2 of section 48(c)(1) is amended by striking ‘‘Decem3 ber 31, 2008’’ and inserting ‘‘December 31, 2014’’. 

4 (3) MICROTURBINE PROPERTY.—Subparagraph 

5 (E) of section 48(c)(2) is amended by striking ‘‘De6 cember 31, 2008’’ and inserting ‘‘December 31, 

7 2014’’. 

8 (b) ALLOWANCE OF ENERGY CREDIT AGAINST AL9 TERNATIVE MINIMUM TAX.—Subparagraph (B) of section 

10 38(c)(4) is amended by striking ‘‘and’’ at the end of clause 

11 (iii), by redesignating clause (iv) as clause (v), and by in12 serting after clause (iii) the following new clause: 

13 ‘‘(iv) the credit determined under sec14 tion 46 to the extent that such credit is at15 tributable to the energy credit determined 

16 under section 48, and’’. 

17 (c) ENERGY CREDIT FOR COMBINED HEAT AND

18 POWER SYSTEM PROPERTY.— 

19 (1) IN GENERAL.—Section 48(a)(3)(A) (defin20 ing energy property) is amended by striking ‘‘or’’ at 

21 the end of clause (iii), by inserting ‘‘or’’ at the end 

22 of clause (iv), and by adding at the end the following 

23 new clause: 

24 ‘‘(v) combined heat and power system 

25 property,’’. 


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1 (2) COMBINED HEAT AND POWER SYSTEM

2 PROPERTY.—Section 48 is amended by adding at 

3 the end the following new subsection: 

4 ‘‘(d) COMBINED HEAT AND POWER SYSTEM PROP5 ERTY.—For purposes of subsection (a)(3)(A)(v)— 

6 ‘‘(1) COMBINED HEAT AND POWER SYSTEM

7 PROPERTY.—The term ‘combined heat and power 

8 system property’ means property comprising a sys9 tem— 

10 ‘‘(A) which uses the same energy source 

11 for the simultaneous or sequential generation of 

12 electrical power, mechanical shaft power, or 

13 both, in combination with the generation of 

14 steam or other forms of useful thermal energy 

15 (including heating and cooling applications), 

16 ‘‘(B) which produces— 

17 ‘‘(i) at least 20 percent of its total 

18 useful energy in the form of thermal en19 ergy which is not used to produce electrical 

20 or mechanical power (or combination 

21 thereof), and 

22 ‘‘(ii) at least 20 percent of its total 

23 useful energy in the form of electrical or 

24 mechanical power (or combination thereof), 


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1 ‘‘(C) the energy efficiency percentage of 

2 which exceeds 60 percent, and 

3 ‘‘(D) which is placed in service before Jan4 uary 1, 2015. 

5 ‘‘(2) LIMITATION.— 

6 ‘‘(A) IN GENERAL.—In the case of com7 bined heat and power system property with an 

8 electrical capacity in excess of the applicable ca9 pacity placed in service during the taxable year, 

10 the credit under subsection (a)(1) (determined 

11 without regard to this paragraph) for such year 

12 shall be equal to the amount which bears the 

13 same ratio to such credit as the applicable ca14 pacity bears to the capacity of such property. 

15 ‘‘(B) APPLICABLE CAPACITY.—For pur16 poses of subparagraph (A), the term ‘applicable 

17 capacity’ means 15 megawatts or a mechanical 

18 energy capacity of more than 20,000 horse19 power or an equivalent combination of electrical 

20 and mechanical energy capacities. 

21 ‘‘(C) MAXIMUM CAPACITY.—The term 

22 ‘combined heat and power system property’ 

23 shall not include any property comprising a sys24 tem if such system has a capacity in excess of 

25 50 megawatts or a mechanical energy capacity 


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1 in excess of 67,000 horsepower or an equivalent 

2 combination of electrical and mechanical energy 

3 capacities. 

4 ‘‘(3) SPECIAL RULES.— 

5 ‘‘(A) ENERGY EFFICIENCY PERCENT6 AGE.—For purposes of this subsection, the en7 ergy efficiency percentage of a system is the 

8 fraction— 

9 ‘‘(i) the numerator of which is the 

10 total useful electrical, thermal, and me11 chanical power produced by the system at 

12 normal operating rates, and expected to be 

13 consumed in its normal application, and 

14 ‘‘(ii) the denominator of which is the 

15 lower heating value of the fuel sources for 

16 the system. 

17 ‘‘(B) DETERMINATIONS MADE ON BTU

18 BASIS.—The energy efficiency percentage and 

19 the percentages under paragraph (1)(B) shall 

20 be determined on a Btu basis. 

21 ‘‘(C) INPUT AND OUTPUT PROPERTY NOT

22 INCLUDED.—The term ‘combined heat and 

23 power system property’ does not include prop24 erty used to transport the energy source to the 


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1 facility or to distribute energy produced by the 

2 facility. 

3 ‘‘(4) SYSTEMS USING BIOMASS.—If a system is 

4 designed to use biomass (within the meaning of 

5 paragraphs (2) and (3) of section 45(c) without re6 gard to the last sentence of paragraph (3)(A)) for at 

7 least 90 percent of the energy source— 

8 ‘‘(A) paragraph (1)(C) shall not apply, but 

9 ‘‘(B) the amount of credit determined 

10 under subsection (a) with respect to such sys11 tem shall not exceed the amount which bears 

12 the same ratio to such amount of credit (deter13 mined without regard to this paragraph) as the 

14 energy efficiency percentage of such system 

15 bears to 60 percent.’’. 

16 (d) INCREASE OF CREDIT LIMITATION FOR FUEL

17 CELL PROPERTY.—Subparagraph (B) of section 48(c)(1) 

18 is amended by striking ‘‘$500’’ and inserting ‘‘$1,500’’. 

19 (e) PUBLIC UTILITY PROPERTY TAKEN INTO AC20 COUNT.— 

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

22 48(a) is amended by striking the second sentence 

23 thereof. 

24 (2) CONFORMING AMENDMENTS.— 


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1 (A) Paragraph (1) of section 48(c) is 

2 amended by striking subparagraph (D) and re3 designating subparagraph (E) as subparagraph 

4 (D). 

5 (B) Paragraph (2) of section 48(c) is 

6 amended by striking subparagraph (D) and re7 designating subparagraph (E) as subparagraph 

8 (D). 

9 (f) EFFECTIVE DATE.— 

10 (1) IN GENERAL.—Except as otherwise pro11 vided in this subsection, the amendments made by 

12 this section shall take effect on the date of the en13 actment of this Act. 

14 (2) ALLOWANCE AGAINST ALTERNATIVE MIN15 IMUM TAX.—The amendments made by subsection 

16 (b) shall apply to credits determined under section 

17 46 of the Internal Revenue Code of 1986 in taxable 

18 years beginning after the date of the enactment of 

19 this Act and to carrybacks of such credits. 

20 (3) COMBINED HEAT AND POWER AND FUEL

21 CELL PROPERTY.—The amendments made by sub22 sections (c) and (d) shall apply to periods after the 

23 date of the enactment of this Act, in taxable years 

24 ending after such date, under rules similar to the 

25 rules of section 48(m) of the Internal Revenue Code 


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1 of 1986 (as in effect on the day before the date of 

2 the enactment of the Revenue Reconciliation Act of 

3 1990). 

4 (4) PUBLIC UTILITY PROPERTY.—The amend5 ments made by subsection (e) shall apply to periods 

6 after February 13, 2008, in taxable years ending 

7 after such date, under rules similar to the rules of 

8 section 48(m) of the Internal Revenue Code of 1986 

9 (as in effect on the day before the date of the enact10 ment of the Revenue Reconciliation Act of 1990). 

11 SEC. 214. CREDIT FOR RESIDENTIAL ENERGY EFFICIENT 

12 PROPERTY. 

13 (a) EXTENSION.—Section 25D(g) is amended by 

14 striking ‘‘December 31, 2008’’ and inserting ‘‘December 

15 31, 2014’’. 

16 (b) MAXIMUM CREDIT FOR SOLAR ELECTRIC PROP17 ERTY.— 

18 (1) IN GENERAL.—Section 25D(b)(1)(A) is 

19 amended by striking ‘‘$2,000’’ and inserting 

20 ‘‘$4,000’’. 

21 (2) CONFORMING AMENDMENT.—Section 

22 25D(e)(4)(A)(i) is amended by striking ‘‘$6,667’’ 

23 and inserting ‘‘$13,333’’. 

24 (c) CREDIT FOR RESIDENTIAL WIND PROPERTY.— 


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1 (1) IN GENERAL.—Section 25D(a) is amended 

2 by striking ‘‘and’’ at the end of paragraph (2), by 

3 striking the period at the end of paragraph (3) and 

4 inserting ‘‘, and’’, and by adding at the end the fol5 lowing new paragraph: 

6 ‘‘(4) 30 percent of the qualified small wind en7 ergy property expenditures made by the taxpayer 

8 during such year.’’. 

9 (2) LIMITATION.—Section 25D(b)(1) is amend10 ed by striking ‘‘and’’ at the end of subparagraph 

11 (B), by striking the period at the end of subpara12 graph (C) and inserting ‘‘, and’’, and by adding at 

13 the end the following new subparagraph: 

14 ‘‘(D) $500 with respect to each half kilo15 watt of capacity (not to exceed $4,000) of wind 

16 turbines for which qualified small wind energy 

17 property expenditures are made.’’. 

18 (3) QUALIFIED SMALL WIND ENERGY PROP19 ERTY EXPENDITURES.— 

20 (A) IN GENERAL.—Section 25D(d) is 

21 amended by adding at the end the following 

22 new paragraph: 

23 ‘‘(4) QUALIFIED SMALL WIND ENERGY PROP24 ERTY EXPENDITURE.—The term ‘qualified small 

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1 iture for property which uses a wind turbine to gen2 erate electricity for use in connection with a dwelling 

3 unit located in the United States and used as a resi4 dence by the taxpayer.’’. 

5 (B) NO DOUBLE BENEFIT.—Section 

6 45(d)(1) is amended by adding at the end the 

7 following new sentence: ‘‘Such term shall not 

8 include any facility with respect to which any 

9 qualified small wind energy property expendi10 ture (as defined in subsection (d)(4) of section 

11 25D) is taken into account in determining the 

12 credit under such section.’’. 

13 (4) MAXIMUM EXPENDITURES IN CASE OF

14 JOINT OCCUPANCY.—Section 25D(e)(4)(A) is 

15 amended by striking ‘‘and’’ at the end of clause (ii), 

16 by striking the period at the end of clause (iii) and 

17 inserting ‘‘, and’’, and by adding at the end the fol18 lowing new clause: 

19 ‘‘(iv) $1,667 in the case of each half 

20 kilowatt of capacity (not to exceed 

21 $13,333) of wind turbines for which quali22 fied small wind energy property expendi23 tures are made.’’. 

24 (d) CREDIT FOR GEOTHERMAL HEAT PUMP SYS25 TEMS.— 


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1 (1) IN GENERAL.—Section 25D(a), as amended 

2 by subsection (c), is amended by striking ‘‘and’’ at 

3 the end of paragraph (3), by striking the period at 

4 the end of paragraph (4) and inserting ‘‘, and’’, and 

5 by adding at the end the following new paragraph: 

6 ‘‘(5) 30 percent of the qualified geothermal 

7 heat pump property expenditures made by the tax8 payer during such year.’’. 

9 (2) LIMITATION.—Section 25D(b)(1), as 

10 amended by subsection (c), is amended by striking 

11 ‘‘and’’ at the end of subparagraph (C), by striking 

12 the period at the end of subparagraph (D) and in13 serting ‘‘, and’’, and by adding at the end the fol14 lowing new subparagraph: 

15 ‘‘(E) $2,000 with respect to any qualified 

16 geothermal heat pump property expenditures.’’. 

17 (3) QUALIFIED GEOTHERMAL HEAT PUMP

18 PROPERTY EXPENDITURE.—Section 25D(d), as 

19 amended by subsection (c), is amended by adding at 

20 the end the following new paragraph: 

21 ‘‘(5) QUALIFIED GEOTHERMAL HEAT PUMP

22 PROPERTY EXPENDITURE.— 

23 ‘‘(A) IN GENERAL.—The term ‘qualified 

24 geothermal heat pump property expenditure’ 

25 means an expenditure for qualified geothermal 


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1 heat pump property installed on or in connec2 tion with a dwelling unit located in the United 

3 States and used as a residence by the taxpayer. 

4 ‘‘(B) QUALIFIED GEOTHERMAL HEAT

5 PUMP PROPERTY.—The term ‘qualified geo6 thermal heat pump property’ means any equip7 ment which— 

8 ‘‘(i) uses the ground or ground water 

9 as a thermal energy source to heat the 

10 dwelling unit referred to in subparagraph 

11 (A) or as a thermal energy sink to cool 

12 such dwelling unit, and 

13 ‘‘(ii) meets the requirements of the 

14 Energy Star program which are in effect 

15 at the time that the expenditure for such 

16 equipment is made.’’. 

17 (4) MAXIMUM EXPENDITURES IN CASE OF

18 JOINT OCCUPANCY.—Section 25D(e)(4)(A), as 

19 amended by subsection (c), is amended by striking 

20 ‘‘and’’ at the end of clause (iii), by striking the pe21 riod at the end of clause (iv) and inserting ‘‘, and’’, 

22 and by adding at the end the following new clause: 

23 ‘‘(v) $6,667 in the case of any quali24 fied geothermal heat pump property ex25 penditures.’’. 


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1 (e) CREDIT ALLOWED AGAINST ALTERNATIVE MIN2 IMUM TAX.— 

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

4 25D is amended to read as follows: 

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

6 CARRYFORWARD OF UNUSED CREDIT.— 

7 ‘‘(1) LIMITATION BASED ON AMOUNT OF

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

9 26(a)(2) does not apply, the credit allowed under 

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

11 the excess of— 

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

13 (as defined in section 26(b)) plus the tax im14 posed by section 55, over 

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

16 under this subpart (other than this section) and 

17 section 27 for the taxable year. 

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

19 ‘‘(A) RULE FOR YEARS IN WHICH ALL

20 PERSONAL CREDITS ALLOWED AGAINST REG21 ULAR AND ALTERNATIVE MINIMUM TAX.—In 

22 the case of a taxable year to which section 

23 26(a)(2) applies, if the credit allowable under 

24 subsection (a) exceeds the limitation imposed by 

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


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1 by the sum of the credits allowable under this 

2 subpart (other than this section), such excess 

3 shall be carried to the succeeding taxable year 

4 and added to the credit allowable under sub5 section (a) for such succeeding taxable year. 

6 ‘‘(B) RULE FOR OTHER YEARS.—In the 

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

8 does not apply, if the credit allowable under 

9 subsection (a) exceeds the limitation imposed by 

10 paragraph (1) for such taxable year, such ex11 cess shall be carried to the succeeding taxable 

12 year and added to the credit allowable under 

13 subsection (a) for such succeeding taxable 

14 year.’’. 

15 (2) CONFORMING AMENDMENTS.— 

16 (A) Section 23(b)(4)(B) is amended by in17 serting ‘‘and section 25D’’ after ‘‘this section’’. 

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

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

20 25D’’. 

21 (C) Section 25B(g)(2) is amended by strik22 ing ‘‘section 23’’ and inserting ‘‘sections 23 and 

23 25D’’. 

24 (D) Section 26(a)(1) is amended by strik25 ing ‘‘and 25B’’ and inserting ‘‘25B, and 25D’’. 


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1 (f) EFFECTIVE DATE.— 

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

3 this section shall apply to taxable years beginning 

4 after December 31, 2007. 

5 (2) APPLICATION OF EGTRRA SUNSET.—The 

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

7 subsection (e)(2) shall be subject to title IX of the 

8 Economic Growth and Tax Relief Reconciliation Act 

9 of 2001 in the same manner as the provisions of 

10 such Act to which such amendments relate. 

11 SEC. 215. SPECIAL RULE TO IMPLEMENT FERC AND STATE 

12 ELECTRIC RESTRUCTURING POLICY. 

13 (a) EXTENSION FOR QUALIFIED ELECTRIC UTILI14 TIES.— 

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

16 451(i) is amended by inserting ‘‘(before January 1, 

17 2010, in the case of a qualified electric utility)’’ 

18 after ‘‘January 1, 2008’’. 

19 (2) QUALIFIED ELECTRIC UTILITY.—Subsection 

20 (i) of section 451 is amended by redesignating para21 graphs (6) through (10) as paragraphs (7) through 

22 (11), respectively, and by inserting after paragraph 

23 (5) the following new paragraph: 

24 ‘‘(6) QUALIFIED ELECTRIC UTILITY.—For pur25 poses of this subsection, the term ‘qualified electric 


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1 utility’ means a person that, as of the date of the 

2 qualifying electric transmission transaction, is 

3 vertically integrated, in that it is both— 

4 ‘‘(A) a transmitting utility (as defined in 

5 section 3(23) of the Federal Power Act (16 

6 U.S.C. 796(23))) with respect to the trans7 mission facilities to which the election under 

8 this subsection applies, and 

9 ‘‘(B) an electric utility (as defined in sec10 tion 3(22) of the Federal Power Act (16 U.S.C. 

11 796(22))).’’. 

12 (b) EXTENSION OF PERIOD FOR TRANSFER OF

13 OPERATIONAL CONTROL AUTHORIZED BY FERC.— 

14 Clause (ii) of section 451(i)(4)(B) is amended by striking 

15 ‘‘December 31, 2007’’ and inserting ‘‘the date which is 

16 4 years after the close of the taxable year in which the 

17 transaction occurs’’. 

18 (c) PROPERTY LOCATED OUTSIDE THE UNITED

19 STATES NOT TREATED AS EXEMPT UTILITY PROP20 ERTY.—Paragraph (5) of section 451(i) is amended by 

21 adding at the end the following new subparagraph: 

22 ‘‘(C) EXCEPTION FOR PROPERTY LOCATED

23 OUTSIDE THE UNITED STATES.—The term ‘ex24 empt utility property’ shall not include any 


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1 property which is located outside the United 

2 States.’’. 

3 (d) EFFECTIVE DATES.— 

4 (1) EXTENSION.—The amendments made by 

5 subsection (a) shall apply to transactions after De6 cember 31, 2007. 

7 (2) TRANSFERS OF OPERATIONAL CONTROL.— 

8 The amendment made by subsection (b) shall take 

9 effect as if included in section 909 of the American 

10 Jobs Creation Act of 2004. 

11 (3) EXCEPTION FOR PROPERTY LOCATED OUT12 SIDE THE UNITED STATES.—The amendment made 

13 by subsection (c) shall apply to transactions after 

14 the date of the enactment of this Act. 

15 SEC. 216. NEW CLEAN RENEWABLE ENERGY BONDS. 

16 (a) IN GENERAL.—Subpart I of part IV of sub17 chapter A of chapter 1 is amended by adding at the end 

18 the following new section: 

19 ‘‘SEC. 54C. NEW CLEAN RENEWABLE ENERGY BONDS. 

20 ‘‘(a) NEW CLEAN RENEWABLE ENERGY BOND.—For 

21 purposes of this subpart, the term ‘new clean renewable 

22 energy bond’ means any bond issued as part of an issue 

23 if— 

24 ‘‘(1) 100 percent of the available project pro25 ceeds of such issue are to be used for capital expendVerDate Aug 31 2005 02:47 Jul 29, 2008 Jkt 069200 PO 00000 Frm 00044 Fmt 6652 Sfmt 6201 E:\BILLS\S3349.IS S3349

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1 itures incurred by governmental bodies, public power 

2 providers, or cooperative electric companies for one 

3 or more qualified renewable energy facilities, 

4 ‘‘(2) the bond is issued by a qualified issuer, 

5 and 

6 ‘‘(3) the issuer designates such bond for pur7 poses of this section. 

8 ‘‘(b) REDUCED CREDIT AMOUNT.—The annual credit 

9 determined under section 54A(b) with respect to any new 

10 clean renewable energy bond shall be 70 percent of the 

11 amount so determined without regard to this subsection. 

12 ‘‘(c) LIMITATION ON AMOUNT OF BONDS DES13 IGNATED.— 

14 ‘‘(1) IN GENERAL.—The maximum aggregate 

15 face amount of bonds which may be designated 

16 under subsection (a) by any issuer shall not exceed 

17 the limitation amount allocated under this sub18 section to such issuer. 

19 ‘‘(2) NATIONAL LIMITATION ON AMOUNT OF

20 BONDS DESIGNATED.—There is a national new clean 

21 renewable energy bond limitation of $2,000,000,000 

22 which shall be allocated by the Secretary as provided 

23 in paragraph (3), except that— 


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‘‘(A) not more than 331 1 ⁄3 percent thereof 

2 may be allocated to qualified projects of public 

3 power providers, 

‘‘(B) not more than 331 4 ⁄3 percent thereof 

5 may be allocated to qualified projects of govern6 mental bodies, and 

‘‘(C) not more than 331 7 ⁄3 percent thereof 

8 may be allocated to qualified projects of cooper9 ative electric companies. 

10 ‘‘(3) METHOD OF ALLOCATION.— 

11 ‘‘(A) ALLOCATION AMONG PUBLIC POWER

12 PROVIDERS.—After the Secretary determines 

13 the qualified projects of public power providers 

14 which are appropriate for receiving an alloca15 tion of the national new clean renewable energy 

16 bond limitation, the Secretary shall, to the max17 imum extent practicable, make allocations 

18 among such projects in such manner that the 

19 amount allocated to each such project bears the 

20 same ratio to the cost of such project as the 

21 limitation under paragraph (2)(A) bears to the 

22 cost of all such projects. 

23 ‘‘(B) ALLOCATION AMONG GOVERNMENTAL

24 BODIES AND COOPERATIVE ELECTRIC COMPA25 NIES.—The Secretary shall make allocations of 


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1 the amount of the national new clean renewable 

2 energy bond limitation described in paragraphs 

3 (2)(B) and (2)(C) among qualified projects of 

4 governmental bodies and cooperative electric 

5 companies, respectively, in such manner as the 

6 Secretary determines appropriate. 

7 ‘‘(d) DEFINITIONS.—For purposes of this section— 

8 ‘‘(1) QUALIFIED RENEWABLE ENERGY FACIL9 ITY.—The term ‘qualified renewable energy facility’ 

10 means a qualified facility (as determined under sec11 tion 45(d) without regard to paragraphs (8) and 

12 (10) thereof and to any placed in service date) 

13 owned by a public power provider, a governmental 

14 body, or a cooperative electric company. 

15 ‘‘(2) PUBLIC POWER PROVIDER.—The term 

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

17 service obligation, as such terms are defined in sec18 tion 217 of the Federal Power Act (as in effect on 

19 the date of the enactment of this paragraph). 

20 ‘‘(3) GOVERNMENTAL BODY.—The term ‘gov21 ernmental body’ means any State or Indian tribal 

22 government, or any political subdivision thereof. 

23 ‘‘(4) COOPERATIVE ELECTRIC COMPANY.—The 

24 term ‘cooperative electric company’ means a mutual 


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1 or cooperative electric company described in section 

2 501(c)(12) or section 1381(a)(2)(C). 

3 ‘‘(5) CLEAN RENEWABLE ENERGY BOND LEND4 ER.—The term ‘clean renewable energy bond lender’ 

5 means a lender which is a cooperative which is 

6 owned by, or has outstanding loans to, 100 or more 

7 cooperative electric companies and is in existence on 

8 February 1, 2002, and shall include any affiliated 

9 entity which is controlled by such lender. 

10 ‘‘(6) QUALIFIED ISSUER.—The term ‘qualified 

11 issuer’ means a public power provider, a cooperative 

12 electric company, a governmental body, a clean re13 newable energy bond lender, or a not-for-profit elec14 tric utility which has received a loan or loan guar15 antee under the Rural Electrification Act.’’. 

16 (b) CONFORMING AMENDMENTS.— 

17 (1) Paragraph (1) of section 54A(d) is amended 

18 to read as follows: 

19 ‘‘(1) QUALIFIED TAX CREDIT BOND.—The term 

20 ‘qualified tax credit bond’ means— 

21 ‘‘(A) a qualified forestry conservation 

22 bond, or 

23 ‘‘(B) a new clean renewable energy bond, 

24 which is part of an issue that meets requirements of 

25 paragraphs (2), (3), (4), (5), and (6).’’. 


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1 (2) Subparagraph (C) of section 54A(d)(2) is 

2 amended to read as follows: 

3 ‘‘(C) QUALIFIED PURPOSE.—For purposes 

4 of this paragraph, the term ‘qualified purpose’ 

5 means— 

6 ‘‘(i) in the case of a qualified forestry 

7 conservation bond, a purpose specified in 

8 section 54B(e), and 

9 ‘‘(ii) in the case of a new clean renew10 able energy bond, a purpose specified in 

11 section 54C(a)(1).’’. 

12 (3) The table of sections for subpart I of part 

13 IV of subchapter A of chapter 1 is amended by add14 ing at the end the following new item: 

‘‘Sec. 54C. Qualified clean renewable energy bonds.’’. 

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

16 this section shall apply to obligations issued after the date 

17 of the enactment of this Act. 

18 Subtitle C—Carbon Mitigation 

19 Provisions 

20 SEC. 221. EXPANSION AND MODIFICATION OF ADVANCED 

21 COAL PROJECT INVESTMENT CREDIT. 

22 (a) MODIFICATION OF CREDIT AMOUNT.—Section 

23 48A(a) is amended by striking ‘‘and’’ at the end of para24 graph (1), by striking the period at the end of paragraph 


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1 (2) and inserting ‘‘, and’’, and by adding at the end the 

2 following new paragraph: 

3 ‘‘(3) 30 percent of the qualified investment for 

4 such taxable year in the case of projects described 

5 in clause (iii) of subsection (d)(3)(B).’’. 

6 (b) EXPANSION OF AGGREGATE CREDITS.—Section 

7 48A(d)(3)(A) is amended by striking ‘‘$1,300,000,000’’ 

8 and inserting ‘‘$2,550,000,000’’. 

9 (c) AUTHORIZATION OF ADDITIONAL PROJECTS.— 

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

11 48A(d)(3) is amended to read as follows: 

12 ‘‘(B) PARTICULAR PROJECTS.—Of the dol13 lar amount in subparagraph (A), the Secretary 

14 is authorized to certify— 

15 ‘‘(i) $800,000,000 for integrated gas16 ification combined cycle projects the appli17 cation for which is submitted during the 

18 period described in paragraph (2)(A)(i), 

19 ‘‘(ii) $500,000,000 for projects which 

20 use other advanced coal-based generation 

21 technologies the application for which is 

22 submitted during the period described in 

23 paragraph (2)(A)(i), and 

24 ‘‘(iii) $1,250,000,000 for advanced 

25 coal-based generation technology projects 


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1 the application for which is submitted dur2 ing the period described in paragraph 

3 (2)(A)(ii).’’. 

4 (2) APPLICATION PERIOD FOR ADDITIONAL

5 PROJECTS.—Subparagraph (A) of section 48A(d)(2) 

6 is amended to read as follows: 

7 ‘‘(A) APPLICATION PERIOD.—Each appli8 cant for certification under this paragraph shall 

9 submit an application meeting the requirements 

10 of subparagraph (B). An applicant may only 

11 submit an application— 

12 ‘‘(i) for an allocation from the dollar 

13 amount specified in clause (i) or (ii) of 

14 paragraph (3)(B) during the 3-year period 

15 beginning on the date the Secretary estab16 lishes the program under paragraph (1), 

17 and 

18 ‘‘(ii) for an allocation from the dollar 

19 amount specified in paragraph (3)(B)(iii) 

20 during the 3-year period beginning at the 

21 earlier of the termination of the period de22 scribed in clause (i) or the date prescribed 

23 by the Secretary.’’. 

24 (3) CAPTURE AND SEQUESTRATION OF CARBON

25 DIOXIDE EMISSIONS REQUIREMENT.— 


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1 (A) IN GENERAL.—Section 48A(e)(1) is 

2 amended by striking ‘‘and’’ at the end of sub3 paragraph (E), by striking the period at the 

4 end of subparagraph (F) and inserting ‘‘; and’’, 

5 and by adding at the end the following new sub6 paragraph: 

7 ‘‘(G) in the case of any project the applica8 tion for which is submitted during the period 

9 described in subsection (d)(2)(A)(ii), the project 

10 includes equipment which separates and seques11 ters at least 65 percent (70 percent in the case 

12 of an application for reallocated credits under 

13 subsection (d)(4)) of such project’s total carbon 

14 dioxide emissions.’’. 

15 (B) HIGHEST PRIORITY FOR PROJECTS

16 WHICH SEQUESTER CARBON DIOXIDE EMIS17 SIONS.—Section 48A(e)(3) is amended by strik18 ing ‘‘and’’ at the end of subparagraph (A)(iii), 

19 by striking the period at the end of subpara20 graph (B)(iii) and inserting ‘‘, and’’, and by 

21 adding at the end the following new subpara22 graph: 

23 ‘‘(C) give highest priority to projects with 

24 the greatest separation and sequestration per25 centage of total carbon dioxide emissions.’’. 


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1 (C) RECAPTURE OF CREDIT FOR FAILURE

2 TO SEQUESTER.—Section 48A is amended by 

3 adding at the end the following new subsection: 

4 ‘‘(i) RECAPTURE OF CREDIT FOR FAILURE TO SE5 QUESTER.—The Secretary shall provide for recapturing 

6 the benefit of any credit allowable under subsection (a) 

7 with respect to any project which fails to attain or main8 tain the separation and sequestration requirements of sub9 section (e)(1)(G).’’. 

10 (4) ADDITIONAL PRIORITY FOR RESEARCH

11 PARTNERSHIPS.—Section 48A(e)(3)(B), as amended 

12 by paragraph (3)(B), is amended— 

13 (A) by striking ‘‘and’’ at the end of clause 

14 (ii), 

15 (B) by redesignating clause (iii) as clause 

16 (iv), and 

17 (C) by inserting after clause (ii) the fol18 lowing new clause: 

19 ‘‘(iii) applicant participants who have 

20 a research partnership with an eligible edu21 cational institution (as defined in section 

22 529(e)(5)), and’’. 

23 (5) CLERICAL AMENDMENT.—Section 48A(e)(3) 

24 is amended by striking ‘‘INTEGRATED GASIFICATION


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1 COMBINED CYCLE’’ in the heading and inserting 

2 ‘‘CERTAIN’’. 

3 (d) DISCLOSURE OF ALLOCATIONS.—Section 48A(d) 

4 is amended by adding at the end the following new para5 graph: 

6 ‘‘(5) DISCLOSURE OF ALLOCATIONS.—The Sec7 retary shall, upon making a certification under this 

8 subsection or section 48B(d), publicly disclose the 

9 identity of the applicant and the amount of the cred10 it certified with respect to such applicant.’’. 

11 (e) EFFECTIVE DATES.— 

12 (1) IN GENERAL.—Except as otherwise pro13 vided in this subsection, the amendments made by 

14 this section shall apply to credits the application for 

15 which is submitted during the period described in 

16 section 48A(d)(2)(A)(ii) of the Internal Revenue 

17 Code of 1986 and which are allocated or reallocated 

18 after the date of the enactment of this Act. 

19 (2) DISCLOSURE OF ALLOCATIONS.—The 

20 amendment made by subsection (d) shall apply to 

21 certifications made after the date of the enactment 

22 of this Act. 

23 (3) CLERICAL AMENDMENT.—The amendment 

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1 cluded in the amendment made by section 1307(b) 

2 of the Energy Tax Incentives Act of 2005. 

3 SEC. 222. EXPANSION AND MODIFICATION OF COAL GASIFI4 CATION INVESTMENT CREDIT. 

5 (a) MODIFICATION OF CREDIT AMOUNT.—Section 

6 48B(a) is amended by inserting ‘‘(30 percent in the case 

7 of credits allocated under subsection (d)(1)(B))’’ after ‘‘20 

8 percent’’. 

9 (b) EXPANSION OF AGGREGATE CREDITS.—Section 

10 48B(d)(1) is amended by striking ‘‘shall not exceed 

11 $350,000,000’’ and all that follows and inserting ‘‘shall 

12 not exceed— 

13 ‘‘(A) $350,000,000, plus 

14 ‘‘(B) $250,000,000 for qualifying gasifi15 cation projects that include equipment which 

16 separates and sequesters at least 75 percent of 

17 such project’s total carbon dioxide emissions.’’. 

18 (c) RECAPTURE OF CREDIT FOR FAILURE TO SE19 QUESTER.—Section 48B is amended by adding at the end 

20 the following new subsection: 

21 ‘‘(f) RECAPTURE OF CREDIT FOR FAILURE TO SE22 QUESTER.—The Secretary shall provide for recapturing 

23 the benefit of any credit allowable under subsection (a) 

24 with respect to any project which fails to attain or mainVerDate Aug 31 2005 02:47 Jul 29, 2008 Jkt 069200 PO 00000 Frm 00055 Fmt 6652 Sfmt 6201 E:\BILLS\S3349.IS S3349

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1 tain the separation and sequestration requirements for 

2 such project under subsection (d)(1).’’. 

3 (d) SELECTION PRIORITIES.—Section 48B(d) is 

4 amended by adding at the end the following new para5 graph: 

6 ‘‘(4) SELECTION PRIORITIES.—In determining 

7 which qualifying gasification projects to certify 

8 under this section, the Secretary shall— 

9 ‘‘(A) give highest priority to projects with 

10 the greatest separation and sequestration per11 centage of total carbon dioxide emissions, and 

12 ‘‘(B) give high priority to applicant partici13 pants who have a research partnership with an 

14 eligible educational institution (as defined in 

15 section 529(e)(5)).’’. 

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

17 this section shall apply to credits described in section 

18 48B(d)(1)(B) of the Internal Revenue Code of 1986 which 

19 are allocated or reallocated after the date of the enactment 

20 of this Act. 

21 SEC. 223. TEMPORARY INCREASE IN COAL EXCISE TAX. 

22 Paragraph (2) of section 4121(e) is amended— 

23 (1) by striking ‘‘January 1, 2014’’ in subpara24 graph (A) and inserting ‘‘December 31, 2018’’, and 


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1 (2) by striking ‘‘January 1 after 1981’’ in sub2 paragraph (B) and inserting ‘‘December 31 after 

3 2007’’. 

4 SEC. 224. SPECIAL RULES FOR REFUND OF THE COAL EX5 CISE TAX TO CERTAIN COAL PRODUCERS 

6 AND EXPORTERS. 

7 (a) REFUND.— 

8 (1) COAL PRODUCERS.— 

9 (A) IN GENERAL.—Notwithstanding sub10 sections (a)(1) and (c) of section 6416 and sec11 tion 6511 of the Internal Revenue Code of 

12 1986, if— 

13 (i) a coal producer establishes that 

14 such coal producer, or a party related to 

15 such coal producer, exported coal produced 

16 by such coal producer to a foreign country 

17 or shipped coal produced by such coal pro18 ducer to a possession of the United States, 

19 or caused such coal to be exported or 

20 shipped, the export or shipment of which 

21 was other than through an exporter who 

22 meets the requirements of paragraph (2), 

23 (ii) such coal producer filed an excise 

24 tax return on or after October 1, 1990, 


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1 and on or before the date of the enactment 

2 of this Act, and 

3 (iii) such coal producer files a claim 

4 for refund with the Secretary not later 

5 than the close of the 30-day period begin6 ning on the date of the enactment of this 

7 Act, 

8 then the Secretary shall pay to such coal pro9 ducer an amount equal to the tax paid under 

10 section 4121 of such Code on such coal ex11 ported or shipped by the coal producer or a 

12 party related to such coal producer, or caused 

13 by the coal producer or a party related to such 

14 coal producer to be exported or shipped. 

15 (B) SPECIAL RULES FOR CERTAIN TAX16 PAYERS.—For purposes of this section— 

17 (i) IN GENERAL.—If a coal producer 

18 or a party related to a coal producer has 

19 received a judgment described in clause 

20 (iii), such coal producer shall be deemed to 

21 have established the export of coal to a for22 eign country or shipment of coal to a pos23 session of the United States under sub24 paragraph (A)(i). 


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1 (ii) AMOUNT OF PAYMENT.—If a tax2 payer described in clause (i) is entitled to 

3 a payment under subparagraph (A), the 

4 amount of such payment shall be reduced 

5 by any amount paid pursuant to the judg6 ment described in clause (iii). 

7 (iii) JUDGMENT DESCRIBED.—A judg8 ment is described in this subparagraph if 

9 such judgment— 

10 (I) is made by a court of com11 petent jurisdiction within the United 

12 States, 

13 (II) relates to the constitu14 tionality of any tax paid on exported 

15 coal under section 4121 of the Inter16 nal Revenue Code of 1986, and 

17 (III) is in favor of the coal pro18 ducer or the party related to the coal 

19 producer. 

20 (2) EXPORTERS.—Notwithstanding subsections 

21 (a)(1) and (c) of section 6416 and section 6511 of 

22 the Internal Revenue Code of 1986, and a judgment 

23 described in paragraph (1)(B)(iii) of this subsection, 

24 if— 


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1 (A) an exporter establishes that such ex2 porter exported coal to a foreign country or 

3 shipped coal to a possession of the United 

4 States, or caused such coal to be so exported or 

5 shipped, 

6 (B) such exporter filed a tax return on or 

7 after October 1, 1990, and on or before the 

8 date of the enactment of this Act, and 

9 (C) such exporter files a claim for refund 

10 with the Secretary not later than the close of 

11 the 30-day period beginning on the date of the 

12 enactment of this Act, 

13 then the Secretary shall pay to such exporter an 

14 amount equal to $0.825 per ton of such coal ex15 ported by the exporter or caused to be exported or 

16 shipped, or caused to be exported or shipped, by the 

17 exporter. 

18 (b) LIMITATIONS.—Subsection (a) shall not apply 

19 with respect to exported coal if a settlement with the Fed20 eral Government has been made with and accepted by, the 

21 coal producer, a party related to such coal producer, or 

22 the exporter, of such coal, as of the date that the claim 

23 is filed under this section with respect to such exported 

24 coal. For purposes of this subsection, the term ‘‘settlement 

25 with the Federal Government’’ shall not include any settleVerDate Aug 31 2005 02:47 Jul 29, 2008 Jkt 069200 PO 00000 Frm 00060 Fmt 6652 Sfmt 6201 E:\BILLS\S3349.IS S3349

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1 ment or stipulation entered into as of the date of the en2 actment of this Act, the terms of which contemplate a 

3 judgment concerning which any party has reserved the 

4 right to file an appeal, or has filed an appeal. 

5 (c) SUBSEQUENT REFUND PROHIBITED.—No refund 

6 shall be made under this section to the extent that a credit 

7 or refund of such tax on such exported or shipped coal 

8 has been paid to any person. 

9 (d) DEFINITIONS.—For purposes of this section— 

10 (1) COAL PRODUCER.—The term ‘‘coal pro11 ducer’’ means the person in whom is vested owner12 ship of the coal immediately after the coal is severed 

13 from the ground, without regard to the existence of 

14 any contractual arrangement for the sale or other 

15 disposition of the coal or the payment of any royal16 ties between the producer and third parties. The 

17 term includes any person who extracts coal from 

18 coal waste refuse piles or from the silt waste product 

19 which results from the wet washing (or similar proc20 essing) of coal. 

21 (2) EXPORTER.—The term ‘‘exporter’’ means a 

22 person, other than a coal producer, who does not 

23 have a contract, fee arrangement, or any other 

24 agreement with a producer or seller of such coal to 


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1 export or ship such coal to a third party on behalf 

2 of the producer or seller of such coal and— 

3 (A) is indicated in the shipper’s export 

4 declaration or other documentation as the ex5 porter of record, or 

6 (B) actually exported such coal to a for7 eign country or shipped such coal to a posses8 sion of the United States, or caused such coal 

9 to be so exported or shipped. 

10 (3) RELATED PARTY.—The term ‘‘a party re11 lated to such coal producer’’ means a person who— 

12 (A) is related to such coal producer 

13 through any degree of common management, 

14 stock ownership, or voting control, 

15 (B) is related (within the meaning of sec16 tion 144(a)(3) of the Internal Revenue Code of 

17 1986) to such coal producer, or 

18 (C) has a contract, fee arrangement, or 

19 any other agreement with such coal producer to 

20 sell such coal to a third party on behalf of such 

21 coal producer. 

22 (4) SECRETARY.—The term ‘‘Secretary’’ means 

23 the Secretary of Treasury or the Secretary’s des24 ignee. 


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1 (e) TIMING OF REFUND.—With respect to any claim 

2 for refund filed pursuant to this section, the Secretary 

3 shall determine whether the requirements of this section 

4 are met not later than 180 days after such claim is filed. 

5 If the Secretary determines that the requirements of this 

6 section are met, the claim for refund shall be paid not 

7 later than 180 days after the Secretary makes such deter8 mination. 

9 (f) INTEREST.—Any refund paid pursuant to this 

10 section shall be paid by the Secretary with interest from 

11 the date of overpayment determined by using the overpay12 ment rate and method under section 6621 of the Internal 

13 Revenue Code of 1986. 

14 (g) DENIAL OF DOUBLE BENEFIT.—The payment 

15 under subsection (a) with respect to any coal shall not ex16 ceed— 

17 (1) in the case of a payment to a coal producer, 

18 the amount of tax paid under section 4121 of the 

19 Internal Revenue Code of 1986 with respect to such 

20 coal by such coal producer or a party related to such 

21 coal producer, and 

22 (2) in the case of a payment to an exporter, an 

23 amount equal to $0.825 per ton with respect to such 

24 coal exported by the exporter or caused to be ex25 ported by the exporter. 


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1 (h) APPLICATION OF SECTION.—This section applies 

2 only to claims on coal exported or shipped on or after Oc3 tober 1, 1990, through the date of the enactment of this 

4 Act. 

5 (i) STANDING NOT CONFERRED.— 

6 (1) EXPORTERS.—With respect to exporters, 

7 this section shall not confer standing upon an ex8 porter to commence, or intervene in, any judicial or 

9 administrative proceeding concerning a claim for re10 fund by a coal producer of any Federal or State tax, 

11 fee, or royalty paid by the coal producer. 

12 (2) COAL PRODUCERS.—With respect to coal 

13 producers, this section shall not confer standing 

14 upon a coal producer to commence, or intervene in, 

15 any judicial or administrative proceeding concerning 

16 a claim for refund by an exporter of any Federal or 

17 State tax, fee, or royalty paid by the producer and 

18 alleged to have been passed on to an exporter. 

19 SEC. 225. CARBON AUDIT OF THE TAX CODE. 

20 (a) STUDY.—The Secretary of the Treasury shall 

21 enter into an agreement with the National Academy of 

22 Sciences to undertake a comprehensive review of the Inter23 nal Revenue Code of 1986 to identify the types of and 

24 specific tax provisions that have the largest effects on carVerDate Aug 31 2005 02:47 Jul 29, 2008 Jkt 069200 PO 00000 Frm 00064 Fmt 6652 Sfmt 6201 E:\BILLS\S3349.IS S3349

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1 bon and other greenhouse gas emissions and to estimate 

2 the magnitude of those effects. 

3 (b) REPORT.—Not later than 2 years after the date 

4 of enactment of this Act, the National Academy of 

5 Sciences shall submit to Congress a report containing the 

6 results of study authorized under this section. 

7 (c) AUTHORIZATION OF APPROPRIATIONS.—There is 

8 authorized to be appropriated to carry out this section 

9 $1,500,000 for the period of fiscal years 2008 and 2009. 

10 Subtitle D—Transportation and 

11 Domestic Fuel Security Provisions 

12 SEC. 231. INCLUSION OF CELLULOSIC BIOFUEL IN BONUS 

13 DEPRECIATION FOR BIOMASS ETHANOL 

14 PLANT PROPERTY. 

15 (a) IN GENERAL.—Paragraph (3) of section 168(l) 

16 is amended to read as follows: 

17 ‘‘(3) CELLULOSIC BIOFUEL.—The term ‘cel18 lulosic biofuel’ means any liquid fuel which is pro19 duced from any lignocellulosic or hemicellulosic mat20 ter that is available on a renewable or recurring 

21 basis.’’. 

22 (b) CONFORMING AMENDMENTS.—Subsection (l) of 

23 section 168 is amended— 


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1 (1) by striking ‘‘cellulosic biomass ethanol’’ 

2 each place it appears and inserting ‘‘cellulosic 

3 biofuel’’, 

4 (2) by striking ‘‘CELLULOSIC BIOMASS ETH5 ANOL’’ in the heading of such subsection and insert6 ing ‘‘CELLULOSIC BIOFUEL’’, and 

7 (3) by striking ‘‘CELLULOSIC BIOMASS ETH8 ANOL’’ in the heading of paragraph (2) thereof and 

9 inserting ‘‘CELLULOSIC BIOFUEL’’. 

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

11 this section shall apply to property placed in service after 

12 the date of the enactment of this Act, in taxable years 

13 ending after such date. 

14 SEC. 232. CREDITS FOR BIODIESEL AND RENEWABLE DIE15 SEL. 

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

17 6427(e)(5)(B) are each amended by striking ‘‘December 

18 31, 2008’’ and inserting ‘‘December 31, 2009’’. 

19 (b) INCREASE IN RATE OF CREDIT.— 

20 (1) INCOME TAX CREDIT.—Paragraphs (1)(A) 

21 and (2)(A) of section 40A(b) are each amended by 

22 striking ‘‘50 cents’’ and inserting ‘‘$1.00’’. 

23 (2) EXCISE TAX CREDIT.—Paragraph (2) of 

24 section 6426(c) is amended to read as follows: 


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1 ‘‘(2) APPLICABLE AMOUNT.—For purposes of 

2 this subsection, the applicable amount is $1.00.’’. 

3 (3) CONFORMING AMENDMENTS.— 

4 (A) Subsection (b) of section 40A is 

5 amended by striking paragraph (3) and by re6 designating paragraphs (4) and (5) as para7 graphs (3) and (4), respectively. 

8 (B) Paragraph (2) of section 40A(f) is 

9 amended to read as follows: 

10 ‘‘(2) EXCEPTION.—Subsection (b)(4) shall not 

11 apply with respect to renewable diesel.’’. 

12 (C) Paragraphs (2) and (3) of section 

13 40A(e) are each amended by striking ‘‘sub14 section (b)(5)(C)’’ and inserting ‘‘subsection 

15 (b)(4)(C)’’. 

16 (D) Clause (ii) of section 40A(d)(3)(C) is 

17 amended by striking ‘‘subsection (b)(5)(B)’’ 

18 and inserting ‘‘subsection (b)(4)(B)’’. 

19 (c) UNIFORM TREATMENT OF DIESEL PRODUCED

20 FROM BIOMASS.—Paragraph (3) of section 40A(f) is 

21 amended— 

22 (1) by striking ‘‘diesel fuel’’ and inserting ‘‘liq23 uid fuel’’, 

24 (2) by striking ‘‘using a thermal 

25 depolymerization process’’, and 


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1 (3) by striking ‘‘or D396’’ in subparagraph (B) 

2 and inserting ‘‘, D396, or other equivalent standard 

3 approved by the Secretary’’. 

4 (d) COPRODUCTION OF RENEWABLE DIESEL WITH

5 PETROLEUM FEEDSTOCK.— 

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

7 40A(f) (defining renewable diesel) is amended by 

8 adding at the end the following new sentence: ‘‘Such 

9 term does not include any fuel derived from coproc10 essing biomass with a feedstock which is not bio11 mass. For purposes of this paragraph, the term ‘bio12 mass’ has the meaning given such term by section 

13 45K(c)(3).’’. 

14 (2) CONFORMING AMENDMENT.—Paragraph (3) 

15 of section 40A(f) is amended by striking ‘‘(as de16 fined in section 45K(c)(3))’’. 

17 (e) ELIGIBILITY OF CERTAIN AVIATION FUEL.— 

18 Paragraph (3) of section 40A(f) (defining renewable die19 sel) is amended by adding at the end the following: ‘‘The 

20 term ‘renewable diesel’ also means fuel derived from bio21 mass which meets the requirements of a Department of 

22 Defense specification for military jet fuel or an American 

23 Society of Testing and Materials specification for aviation 

24 turbine fuel.’’. 

25 (f) EFFECTIVE DATE.— 


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1 (1) IN GENERAL.—Except as otherwise pro2 vided in this subsection, the amendments made by 

3 this section shall apply to fuel produced, and sold or 

4 used, after December 31, 2008. 

5 (2) COPRODUCTION OF RENEWABLE DIESEL

6 WITH PETROLEUM FEEDSTOCK.—The amendments 

7 made by subsection (d) shall apply to fuel produced, 

8 and sold or used, after the date of the enactment of 

9 this Act. 

10 SEC. 233. CLARIFICATION THAT CREDITS FOR FUEL ARE 

11 DESIGNED TO PROVIDE AN INCENTIVE FOR 

12 UNITED STATES PRODUCTION. 

13 (a) ALCOHOL FUELS CREDIT.—Paragraph (6) of sec14 tion 40(d) is amended to read as follows: 

15 ‘‘(6) LIMITATION TO ALCOHOL WITH CONNEC16 TION TO THE UNITED STATES.—No credit shall be 

17 determined under this section with respect to any al18 cohol which is produced outside the United States 

19 for use as a fuel outside the United States. For pur20 poses of this paragraph, the term ‘United States’ in21 cludes any possession of the United States.’’. 

22 (b) BIODIESEL FUELS CREDIT.—Subsection (d) of 

23 section 40A is amended by adding at the end the following 

24 new paragraph: 


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1 ‘‘(5) LIMITATION TO BIODIESEL WITH CONNEC2 TION TO THE UNITED STATES.—No credit shall be 

3 determined under this section with respect to any 

4 biodiesel which is produced outside the United 

5 States for use as a fuel outside the United States. 

6 For purposes of this paragraph, the term ‘United 

7 States’ includes any possession of the United 

8 States.’’. 

9 (c) EXCISE TAX CREDIT.— 

10 (1) IN GENERAL.—Section 6426 is amended by 

11 adding at the end the following new subsection: 

12 ‘‘(i) LIMITATION TO FUELS WITH CONNECTION TO

13 THE UNITED STATES.— 

14 ‘‘(1) ALCOHOL.—No credit shall be determined 

15 under this section with respect to any alcohol which 

16 is produced outside the United States for use as a 

17 fuel outside the United States. 

18 ‘‘(2) BIODIESEL AND ALTERNATIVE FUELS.— 

19 No credit shall be determined under this section 

20 with respect to any biodiesel or alternative fuel 

21 which is produced outside the United States for use 

22 as a fuel outside the United States. 

23 For purposes of this subsection, the term ‘United States’ 

24 includes any possession of the United States.’’. 


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1 (2) CONFORMING AMENDMENT.—Subsection (e) 

2 of section 6427 is amended by redesignating para3 graph (5) as paragraph (6) and by inserting after 

4 paragraph (4) the following new paragraph: 

5 ‘‘(5) LIMITATION TO FUELS WITH CONNECTION

6 TO THE UNITED STATES.—No amount shall be pay7 able under paragraph (1) or (2) with respect to any 

8 mixture or alternative fuel if credit is not allowed 

9 with respect to such mixture or alternative fuel by 

10 reason of section 6426(i).’’. 

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

12 this section shall apply to claims for credit or payment 

13 made on or after May 15, 2008. 

14 SEC. 234. CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC 

15 DRIVE MOTOR VEHICLES. 

16 (a) IN GENERAL.—Subpart B of part IV of sub17 chapter A of chapter 1 is amended by adding at the end 

18 the following new section: 

19 ‘‘SEC. 30D. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE 

20 MOTOR VEHICLES. 

21 ‘‘(a) ALLOWANCE OF CREDIT.—There shall be al22 lowed as a credit against the tax imposed by this chapter 

23 for the taxable year an amount equal to the sum of the 

24 credit amounts determined under subsection (b) with re25 spect to each new qualified plug-in electric drive motor veVerDate Aug 31 2005 02:47 Jul 29, 2008 Jkt 069200 PO 00000 Frm 00071 Fmt 6652 Sfmt 6201 E:\BILLS\S3349.IS S3349

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1 hicle placed in service by the taxpayer during the taxable 

2 year. 

3 ‘‘(b) PER VEHICLE DOLLAR LIMITATION.— 

4 ‘‘(1) IN GENERAL.—The amount determined 

5 under this subsection with respect to any new quali6 fied plug-in electric drive motor vehicle is the sum 

7 of the amounts determined under paragraphs (2) 

8 and (3) with respect to such vehicle. 

9 ‘‘(2) BASE AMOUNT.—The amount determined 

10 under this paragraph is $3,000. 

11 ‘‘(3) BATTERY CAPACITY.—In the case of a ve12 hicle which draws propulsion energy from a battery 

13 with not less than 5 kilowatt hours of capacity, the 

14 amount determined under this paragraph is $200, 

15 plus $200 for each kilowatt hour of capacity in ex16 cess of 5 kilowatt hours. The amount determined 

17 under this paragraph shall not exceed $2,000. 

18 ‘‘(c) APPLICATION WITH OTHER CREDITS.— 

19 ‘‘(1) BUSINESS CREDIT TREATED AS PART OF

20 GENERAL BUSINESS CREDIT.—So much of the credit 

21 which would be allowed under subsection (a) for any 

22 taxable year (determined without regard to this sub23 section) that is attributable to property of a char24 acter subject to an allowance for depreciation shall 


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1 be treated as a credit listed in section 38(b) for such 

2 taxable year (and not allowed under subsection (a)). 

3 ‘‘(2) PERSONAL CREDIT.— 

4 ‘‘(A) IN GENERAL.—For purposes of this 

5 title, the credit allowed under subsection (a) for 

6 any taxable year (determined after application 

7 of paragraph (1)) shall be treated as a credit 

8 allowable under subpart A for such taxable 

9 year. 

10 ‘‘(B) LIMITATION BASED ON AMOUNT OF

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

12 section 26(a)(2) does not apply, the credit al13 lowed under subsection (a) for any taxable year 

14 (determined after application of paragraph (1)) 

15 shall not exceed the excess of— 

16 ‘‘(i) the sum of the regular tax liabil17 ity (as defined in section 26(b)) plus the 

18 tax imposed by section 55, over 

19 ‘‘(ii) the sum of the credits allowable 

20 under subpart A (other than this section 

21 and sections 23 and 25D) and section 27 

22 for the taxable year. 

23 ‘‘(d) NEW QUALIFIED PLUG-IN ELECTRIC DRIVE

24 MOTOR VEHICLE.—For purposes of this section— 


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1 ‘‘(1) IN GENERAL.—The term ‘new qualified 

2 plug-in electric drive motor vehicle’ means a motor 

3 vehicle (as defined in section 30(c)(2))— 

4 ‘‘(A) the original use of which commences 

5 with the taxpayer, 

6 ‘‘(B) which is acquired for use or lease by 

7 the taxpayer and not for resale, 

8 ‘‘(C) which is made by a manufacturer, 

9 ‘‘(D) which has a gross vehicle weight rat10 ing of less than 14,000 pounds, 

11 ‘‘(E) which has received a certificate of 

12 conformity under the Clean Air Act and meets 

13 or exceeds the Bin 5 Tier II emission standard 

14 established in regulations prescribed by the Ad15 ministrator of the Environmental Protection 

16 Agency under section 202(i) of the Clean Air 

17 Act for that make and model year vehicle, and 

18 ‘‘(F) which is propelled to a significant ex19 tent by an electric motor which draws electricity 

20 from a battery which— 

21 ‘‘(i) has a capacity of not less than 4 

22 kilowatt hours, and 

23 ‘‘(ii) is capable of being recharged 

24 from an external source of electricity. 


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1 ‘‘(2) EXCEPTION.—The term ‘new qualified 

2 plug-in electric drive motor vehicle’ shall not include 

3 any vehicle which is not a passenger automobile or 

4 light truck if such vehicle has a gross vehicle weight 

5 rating of less than 8,500 pounds. 

6 ‘‘(3) OTHER TERMS.—The terms ‘passenger 

7 automobile’, ‘light truck’, and ‘manufacturer’ have 

8 the meanings given such terms in regulations pre9 scribed by the Administrator of the Environmental 

10 Protection Agency for purposes of the administra11 tion of title II of the Clean Air Act (42 U.S.C. 7521 

12 et seq.). 

13 ‘‘(4) BATTERY CAPACITY.—The term ‘capacity’ 

14 means, with respect to any battery, the quantity of 

15 electricity which the battery is capable of storing, ex16 pressed in kilowatt hours, as measured from a 100 

17 percent state of charge to a 0 percent state of 

18 charge. 

19 ‘‘(e) LIMITATION ON NUMBER OF NEW QUALIFIED

20 PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES ELIGIBLE

21 FOR CREDIT.— 

22 ‘‘(1) IN GENERAL.—In the case of a new quali23 fied plug-in electric drive motor vehicle sold during 

24 the phaseout period, only the applicable percentage 


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1 of the credit otherwise allowable under subsection 

2 (a) shall be allowed. 

3 ‘‘(2) PHASEOUT PERIOD.—For purposes of this 

4 subsection, the phaseout period is the period begin5 ning with the second calendar quarter following the 

6 calendar quarter which includes the first date on 

7 which the number of new qualified plug-in electric 

8 drive motor vehicles manufactured by the manufac9 turer of the vehicle referred to in paragraph (1) sold 

10 for use in the United States after the date of the en11 actment of this section, is at least 60,000. 

12 ‘‘(3) APPLICABLE PERCENTAGE.—For purposes 

13 of paragraph (1), the applicable percentage is— 

14 ‘‘(A) 50 percent for the first 2 calendar 

15 quarters of the phaseout period, 

16 ‘‘(B) 25 percent for the 3d and 4th cal17 endar quarters of the phaseout period, and 

18 ‘‘(C) 0 percent for each calendar quarter 

19 thereafter. 

20 ‘‘(4) CONTROLLED GROUPS.—Rules similar to 

21 the rules of section 30B(f)(4) shall apply for pur22 poses of this subsection. 

23 ‘‘(f) SPECIAL RULES.— 

24 ‘‘(1) BASIS REDUCTION.—The basis of any 

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1 section (a) shall be reduced by the amount of such 

2 credit (determined without regard to subsection (c)). 

3 ‘‘(2) RECAPTURE.—The Secretary shall, by reg4 ulations, provide for recapturing the benefit of any 

5 credit allowable under subsection (a) with respect to 

6 any property which ceases to be property eligible for 

7 such credit. 

8 ‘‘(3) PROPERTY USED OUTSIDE UNITED

9 STATES, ETC., NOT QUALIFIED.—No credit shall be 

10 allowed under subsection (a) with respect to any 

11 property referred to in section 50(b)(1) or with re12 spect to the portion of the cost of any property 

13 taken into account under section 179. 

14 ‘‘(4) ELECTION NOT TO TAKE CREDIT.—No 

15 credit shall be allowed under subsection (a) for any 

16 vehicle if the taxpayer elects to not have this section 

17 apply to such vehicle. 

18 ‘‘(5) PROPERTY USED BY TAX-EXEMPT ENTITY; 

19 INTERACTION WITH AIR QUALITY AND MOTOR VEHI20 CLE SAFETY STANDARDS.—Rules similar to the rules 

21 of paragraphs (6) and (10) of section 30B(h) shall 

22 apply for purposes of this section.’’. 

23 (b) COORDINATION WITH ALTERNATIVE MOTOR VE24 HICLE CREDIT.—Section 30B(d)(3) is amended by adding 

25 at the end the following new subparagraph: 


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1 ‘‘(D) EXCLUSION OF PLUG-IN VEHICLES.— 

2 Any vehicle with respect to which a credit is al3 lowable under section 30D (determined without 

4 regard to subsection (c) thereof) shall not be 

5 taken into account under this section.’’. 

6 (c) CREDIT MADE PART OF GENERAL BUSINESS

7 CREDIT.—Section 38(b) is amended by striking ‘‘plus’’ at 

8 the end of paragraph (32), by striking the period at the 

9 end of paragraph (33) and inserting ‘‘plus’’, and by add10 ing at the end the following new paragraph: 

11 ‘‘(34) the portion of the new qualified plug-in 

12 electric drive motor vehicle credit to which section 

13 30D(c)(1) applies.’’. 

14 (d) CONFORMING AMENDMENTS.— 

15 (1)(A) Section 24(b)(3)(B), as amended by sec16 tion 214, is amended by striking ‘‘and 25D’’ and in17 serting ‘‘25D, and 30D’’. 

18 (B) Section 25(e)(1)(C)(ii) is amended by in19 serting ‘‘30D,’’ after ‘‘25D,’’. 

20 (C) Section 25B(g)(2), as amended by section 

21 214, is amended by striking ‘‘and 25D’’ and insert22 ing ‘‘, 25D, and 30D’’. 

23 (D) Section 26(a)(1), as amended by section 

24 214, is amended by striking ‘‘and 25D’’ and insert25 ing ‘‘25D, and 30D’’. 


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1 (E) Section 1400C(d)(2) is amended by striking 

2 ‘‘and 25D’’ and inserting ‘‘25D, and 30D’’. 

3 (2) Section 1016(a) is amended by striking 

4 ‘‘and’’ at the end of paragraph (35), by striking the 

5 period at the end of paragraph (36) and inserting ‘‘, 

6 and’’, and by adding at the end the following new 

7 paragraph: 

8 ‘‘(37) to the extent provided in section 

9 30D(f)(1).’’. 

10 (3) Section 6501(m) is amended by inserting 

11 ‘‘30D(f)(4),’’ after ‘‘30C(e)(5),’’. 

12 (4) The table of sections for subpart B of part 

13 IV of subchapter A of chapter 1 is amended by add14 ing at the end the following new item: 

‘‘Sec. 30D. New qualified plug-in electric drive motor vehicles.’’. 

15 (e) TREATMENT OF ALTERNATIVE MOTOR VEHICLE

16 CREDIT AS A PERSONAL CREDIT.— 

17 (1) IN GENERAL.—Paragraph (2) of section 

18 30B(g) is amended to read as follows: 

19 ‘‘(2) PERSONAL CREDIT.—The credit allowed 

20 under subsection (a) for any taxable year (after ap21 plication of paragraph (1)) shall be treated as a 

22 credit allowable under subpart A for such taxable 

23 year.’’. 

24 (2) CONFORMING AMENDMENTS.— 


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1 (A) Subparagraph (A) of section 30C(d)(2) 

2 is amended by striking ‘‘sections 27, 30, and 

3 30B’’ and inserting ‘‘sections 27 and 30’’. 

4 (B) Paragraph (3) of section 55(c) is 

5 amended by striking ‘‘30B(g)(2),’’. 

6 (f) EFFECTIVE DATE.— 

7 (1) IN GENERAL.—Except as otherwise pro8 vided in this subsection, the amendments made by 

9 this section shall apply to taxable years beginning 

10 after December 31, 2008. 

11 (2) TREATMENT OF ALTERNATIVE MOTOR VE12 HICLE CREDIT AS PERSONAL CREDIT.—The amend13 ments made by subsection (e) shall apply to taxable 

14 years beginning after December 31, 2007. 

15 (g) APPLICATION OF EGTRRA SUNSET.—The 

16 amendment made by subsection (d)(1)(A) shall be subject 

17 to title IX of the Economic Growth and Tax Relief Rec18 onciliation Act of 2001 in the same manner as the provi19 sion of such Act to which such amendment relates. 

20 SEC. 235. EXCLUSION FROM HEAVY TRUCK TAX FOR IDLING 

21 REDUCTION UNITS AND ADVANCED INSULA22 TION. 

23 (a) IN GENERAL.—Section 4053 is amended by add24 ing at the end the following new paragraphs: 


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1 ‘‘(9) IDLING REDUCTION DEVICE.—Any device 

2 or system of devices which— 

3 ‘‘(A) is designed to provide to a vehicle 

4 those services (such as heat, air conditioning, or 

5 electricity) that would otherwise require the op6 eration of the main drive engine while the vehi7 cle is temporarily parked or remains stationary 

8 using one or more devices affixed to a tractor, 

9 and 

10 ‘‘(B) is determined by the Administrator of 

11 the Environmental Protection Agency, in con12 sultation with the Secretary of Energy and the 

13 Secretary of Transportation, to reduce idling of 

14 such vehicle at a motor vehicle rest stop or 

15 other location where such vehicles are tempo16 rarily parked or remain stationary. 

17 ‘‘(10) ADVANCED INSULATION.—Any insulation 

18 that has an R value of not less than R35 per inch.’’. 

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

20 this section shall apply to sales or installations after the 

21 date of the enactment of this Act. 

22 SEC. 236. TRANSPORTATION FRINGE BENEFIT TO BICYCLE 

23 COMMUTERS. 

24 (a) IN GENERAL.—Paragraph (1) of section 132(f) 

25 is amended by adding at the end the following: 


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1 ‘‘(D) Any qualified bicycle commuting re2 imbursement.’’. 

3 (b) LIMITATION ON EXCLUSION.—Paragraph (2) of 

4 section 132(f) is amended by striking ‘‘and’’ at the end 

5 of subparagraph (A), by striking the period at the end 

6 of subparagraph (B) and inserting ‘‘, and’’, and by adding 

7 at the end the following new subparagraph: 

8 ‘‘(C) the applicable annual limitation in 

9 the case of any qualified bicycle commuting re10 imbursement.’’. 

11 (c) DEFINITIONS.—Paragraph (5) of section 132(f) 

12 is amended by adding at the end the following: 

13 ‘‘(F) DEFINITIONS RELATED TO BICYCLE

14 COMMUTING REIMBURSEMENT.— 

15 ‘‘(i) QUALIFIED BICYCLE COMMUTING

16 REIMBURSEMENT.—The term ‘qualified bi17 cycle commuting reimbursement’ means, 

18 with respect to any calendar year, any em19 ployer reimbursement during the 15-month 

20 period beginning with the first day of such 

21 calendar year for reasonable expenses in22 curred by the employee during such cal23 endar year for the purchase of a bicycle 

24 and bicycle improvements, repair, and stor25 age, if such bicycle is regularly used for 


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1 travel between the employee’s residence 

2 and place of employment. 

3 ‘‘(ii) APPLICABLE ANNUAL LIMITA4 TION.—The term ‘applicable annual limita5 tion’ means, with respect to any employee 

6 for any calendar year, the product of $20 

7 multiplied by the number of qualified bicy8 cle commuting months during such year. 

9 ‘‘(iii) QUALIFIED BICYCLE COM10 MUTING MONTH.—The term ‘qualified bi11 cycle commuting month’ means, with re12 spect to any employee, any month during 

13 which such employee— 

14 ‘‘(I) regularly uses the bicycle for 

15 a substantial portion of the travel be16 tween the employee’s residence and 

17 place of employment, and 

18 ‘‘(II) does not receive any benefit 

19 described in subparagraph (A), (B), 

20 or (C) of paragraph (1).’’. 

21 (d) CONSTRUCTIVE RECEIPT OF BENEFIT.—Para22 graph (4) of section 132(f) is amended by inserting 

23 ‘‘(other than a qualified bicycle commuting reimburse24 ment)’’ after ‘‘qualified transportation fringe’’. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2008. 

4 SEC. 237. ALTERNATIVE FUEL VEHICLE REFUELING PROP5 ERTY CREDIT. 

6 (a) INCREASE IN CREDIT AMOUNT.—Section 30C is 

7 amended— 

8 (1) by striking ‘‘30 percent’’ in subsection (a) 

9 and inserting ‘‘50 percent’’, and 

10 (2) by striking ‘‘$30,000’’ in subsection (b)(1) 

11 and inserting ‘‘$50,000’’. 

12 (b) EXTENSION OF CREDIT.—Paragraph (2) of sec13 tion 30C(g) is amended by striking ‘‘December 31, 2009’’ 

14 and inserting ‘‘December 31, 2010’’. 

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

16 this section shall apply to property placed in service after 

17 the date of the enactment of this Act, in taxable years 

18 ending after such date. 

19 Subtitle E—Energy Conservation 

20 and Efficiency Provisions 

21 SEC. 241. QUALIFIED ENERGY CONSERVATION BONDS. 

22 (a) IN GENERAL.—Subpart I of part IV of sub23 chapter A of chapter 1, as amended by section 216, is 

24 amended by adding at the end the following new section: 


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1 ‘‘SEC. 54D. QUALIFIED ENERGY CONSERVATION BONDS. 

2 ‘‘(a) QUALIFIED ENERGY CONSERVATION BOND.— 

3 For purposes of this subchapter, the term ‘qualified en4 ergy conservation bond’ means any bond issued as part 

5 of an issue if— 

6 ‘‘(1) 100 percent of the available project pro7 ceeds of such issue are to be used for one or more 

8 qualified conservation purposes, 

9 ‘‘(2) the bond is issued by a State or local gov10 ernment, and 

11 ‘‘(3) the issuer designates such bond for pur12 poses of this section. 

13 ‘‘(b) REDUCED CREDIT AMOUNT.—The annual credit 

14 determined under section 54A(b) with respect to any 

15 qualified energy conservation bond shall be 70 percent of 

16 the amount so determined without regard to this sub17 section. 

18 ‘‘(c) LIMITATION ON AMOUNT OF BONDS DES19 IGNATED.—The maximum aggregate face amount of 

20 bonds which may be designated under subsection (a) by 

21 any issuer shall not exceed the limitation amount allocated 

22 to such issuer under subsection (e). 

23 ‘‘(d) NATIONAL LIMITATION ON AMOUNT OF BONDS

24 DESIGNATED.—There is a national qualified energy con25 servation bond limitation of $3,000,000,000. 

26 ‘‘(e) ALLOCATIONS.— 


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1 ‘‘(1) IN GENERAL.—The limitation applicable 

2 under subsection (d) shall be allocated by the Sec3 retary among the States in proportion to the popu4 lation of the States. 

5 ‘‘(2) ALLOCATIONS TO LARGEST LOCAL GOV6 ERNMENTS.— 

7 ‘‘(A) IN GENERAL.—In the case of any 

8 State in which there is a large local govern9 ment, each such local government shall be allo10 cated a portion of such State’s allocation which 

11 bears the same ratio to the State’s allocation 

12 (determined without regard to this subpara13 graph) as the population of such large local 

14 government bears to the population of such 

15 State. 

16 ‘‘(B) ALLOCATION OF UNUSED LIMITATION

17 TO STATE.—The amount allocated under this 

18 subsection to a large local government may be 

19 reallocated by such local government to the 

20 State in which such local government is located. 

21 ‘‘(C) LARGE LOCAL GOVERNMENT.—For 

22 purposes of this section, the term ‘large local 

23 government’ means any municipality or county 

24 if such municipality or county has a population 

25 of 100,000 or more. 


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1 ‘‘(3) ALLOCATION TO ISSUERS; RESTRICTION

2 ON PRIVATE ACTIVITY BONDS.—Any allocation 

3 under this subsection to a State or large local gov4 ernment shall be allocated by such State or large 

5 local government to issuers within the State in a 

6 manner that results in not less than 70 percent of 

7 the allocation to such State or large local govern8 ment being used to designate bonds which are not 

9 private activity bonds. 

10 ‘‘(f) QUALIFIED CONSERVATION PURPOSE.—For 

11 purposes of this section— 

12 ‘‘(1) IN GENERAL.—The term ‘qualified con13 servation purpose’ means any of the following: 

14 ‘‘(A) Capital expenditures incurred for 

15 purposes of— 

16 ‘‘(i) reducing energy consumption in 

17 publicly-owned buildings by at least 20 

18 percent, 

19 ‘‘(ii) implementing green community 

20 programs, 

21 ‘‘(iii) rural development involving the 

22 production of electricity from renewable 

23 energy resources, or 

24 ‘‘(iv) any qualified facility (as deter25 mined under section 45(d) without regard 


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1 to paragraphs (8) and (10) thereof and 

2 without regard to any placed in service 

3 date). 

4 ‘‘(B) Expenditures with respect to research 

5 facilities, and research grants, to support re6 search in— 

7 ‘‘(i) development of cellulosic ethanol 

8 or other nonfossil fuels, 

9 ‘‘(ii) technologies for the capture and 

10 sequestration of carbon dioxide produced 

11 through the use of fossil fuels, 

12 ‘‘(iii) increasing the efficiency of exist13 ing technologies for producing nonfossil 

14 fuels, 

15 ‘‘(iv) automobile battery technologies 

16 and other technologies to reduce fossil fuel 

17 consumption in transportation, or 

18 ‘‘(v) technologies to reduce energy use 

19 in buildings. 

20 ‘‘(C) Mass commuting facilities and related 

21 facilities that reduce the consumption of energy, 

22 including expenditures to reduce pollution from 

23 vehicles used for mass commuting. 

24 ‘‘(D) Demonstration projects designed to 

25 promote the commercialization of— 


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1 ‘‘(i) green building technology, 

2 ‘‘(ii) conversion of agricultural waste 

3 for use in the production of fuel or other4 wise, 

5 ‘‘(iii) advanced battery manufacturing 

6 technologies, 

7 ‘‘(iv) technologies to reduce peak use 

8 of electricity, or 

9 ‘‘(v) technologies for the capture and 

10 sequestration of carbon dioxide emitted 

11 from combusting fossil fuels in order to 

12 produce electricity. 

13 ‘‘(E) Public education campaigns to pro14 mote energy efficiency. 

15 ‘‘(2) SPECIAL RULES FOR PRIVATE ACTIVITY

16 BONDS.—For purposes of this section, in the case of 

17 any private activity bond, the term ‘qualified con18 servation purposes’ shall not include any expenditure 

19 which is not a capital expenditure. 

20 ‘‘(g) POPULATION.— 

21 ‘‘(1) IN GENERAL.—The population of any 

22 State or local government shall be determined for 

23 purposes of this section as provided in section 146(j) 

24 for the calendar year which includes the date of the 

25 enactment of this section. 


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1 ‘‘(2) SPECIAL RULE FOR COUNTIES.—In deter2 mining the population of any county for purposes of 

3 this section, any population of such county which is 

4 taken into account in determining the population of 

5 any municipality which is a large local government 

6 shall not be taken into account in determining the 

7 population of such county. 

8 ‘‘(h) APPLICATION TO INDIAN TRIBAL GOVERN9 MENTS.—An Indian tribal government shall be treated for 

10 purposes of this section in the same manner as a large 

11 local government, except that— 

12 ‘‘(1) an Indian tribal government shall be treat13 ed for purposes of subsection (e) as located within 

14 a State to the extent of so much of the population 

15 of such government as resides within such State, 

16 and 

17 ‘‘(2) any bond issued by an Indian tribal gov18 ernment shall be treated as a qualified energy con19 servation bond only if issued as part of an issue the 

20 available project proceeds of which are used for pur21 poses for which such Indian tribal government could 

22 issue bonds to which section 103(a) applies.’’. 

23 (b) CONFORMING AMENDMENTS.— 

24 (1) Paragraph (1) of section 54A(d), as amend25 ed by section 216, is amended to read as follows: 


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1 ‘‘(1) QUALIFIED TAX CREDIT BOND.—The term 

2 ‘qualified tax credit bond’ means— 

3 ‘‘(A) a qualified forestry conservation 

4 bond, 

5 ‘‘(B) a new clean renewable energy bond, 

6 or 

7 ‘‘(C) a qualified energy conservation bond, 

8 which is part of an issue that meets requirements of 

9 paragraphs (2), (3), (4), (5), and (6).’’. 

10 (2) Subparagraph (C) of section 54A(d)(2), as 

11 amended by section 216, is amended to read as fol12 lows: 

13 ‘‘(C) QUALIFIED PURPOSE.—For purposes 

14 of this paragraph, the term ‘qualified purpose’ 

15 means— 

16 ‘‘(i) in the case of a qualified forestry 

17 conservation bond, a purpose specified in 

18 section 54B(e), 

19 ‘‘(ii) in the case of a new clean renew20 able energy bond, a purpose specified in 

21 section 54C(a)(1), and 

22 ‘‘(iii) in the case of a qualified energy 

23 conservation bond, a purpose specified in 

24 section 54D(a)(1).’’. 


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1 (3) The table of sections for subpart I of part 

2 IV of subchapter A of chapter 1 is amended by add3 ing at the end the following new item: 

‘‘Sec. 54D. Qualified energy conservation bonds.’’. 

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

5 this section shall apply to obligations issued after the date 

6 of the enactment of this Act. 

7 SEC. 242. CREDIT FOR NONBUSINESS ENERGY PROPERTY. 

8 (a) EXTENSION OF CREDIT.—Section 25C(g) is 

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

10 ‘‘December 31, 2008’’. 

11 (b) QUALIFIED BIOMASS FUEL PROPERTY.— 

12 (1) IN GENERAL.—Section 25C(d)(3) is amend13 ed— 

14 (A) by striking ‘‘and’’ at the end of sub15 paragraph (D), 

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

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

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

19 subparagraph: 

20 ‘‘(F) a stove— 

21 ‘‘(i) which uses the burning of bio22 mass fuel— 

23 ‘‘(I) to heat a dwelling unit lo24 cated in the United States and used 

25 as a residence by the taxpayer, or 


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1 ‘‘(II) to heat water for use in 

2 such a dwelling unit, and 

3 ‘‘(ii) which— 

4 ‘‘(I) has a thermal efficiency rat5 ing of at least 75 percent, or 

6 ‘‘(II) is a wood stove which meets 

7 the standards of performance for new 

8 residential wood heaters under sub9 part AAA of part 60 of subchapter C 

10 of chapter I of title 40, Code of Fed11 eral Regulations (or a successor regu12 lation).’’. 

13 (2) BIOMASS FUEL.—Section 25C(d) is amend14 ed by adding at the end the following new para15 graph: 

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

17 means any plant-derived fuel available on a renew18 able or recurring basis, including agricultural crops 

19 and trees, wood and wood waste and residues (in20 cluding wood pellets), plants (including aquatic 

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

22 (c) COORDINATION WITH CREDIT FOR QUALIFIED

23 GEOTHERMAL HEAT PUMP PROPERTY EXPENDITURES.— 

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

25 25C(d), as amended by subsection (b), is amended 


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1 by striking subparagraph (C) and by redesignating 

2 subparagraphs (D), (E), and (F) as subparagraphs 

3 (C), (D), and (E), respectively. 

4 (2) CONFORMING AMENDMENT.—Subparagraph 

5 (C) of section 25C(d)(2) is amended to read as fol6 lows: 

7 ‘‘(C) REQUIREMENTS AND STANDARDS

8 FOR AIR CONDITIONERS AND HEAT PUMPS.— 

9 The standards and requirements prescribed by 

10 the Secretary under subparagraph (B) with re11 spect to the energy efficiency ratio (EER) for 

12 central air conditioners and electric heat 

13 pumps— 

14 ‘‘(i) shall require measurements to be 

15 based on published data which is tested by 

16 manufacturers at 95 degrees Fahrenheit, 

17 and 

18 ‘‘(ii) may be based on the certified 

19 data of the Air Conditioning and Refrig20 eration Institute that are prepared in part21 nership with the Consortium for Energy 

22 Efficiency.’’. 

23 (d) MODIFICATION OF QUALIFIED ENERGY EFFI24 CIENCY IMPROVEMENTS.— 


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

2 25C(c) is amended by inserting ‘‘, or an asphalt roof 

3 with appropriate cooling granules,’’ before ‘‘which 

4 meet the Energy Star program requirements’’. 

5 (2) BUILDING ENVELOPE COMPONENT.—Sub6 paragraph (D) of section 25C(c)(2) is amended— 

7 (A) by inserting ‘‘or asphalt roof’’ after 

8 ‘‘metal roof’’, and 

9 (B) by inserting ‘‘or cooling granules’’ 

10 after ‘‘pigmented coatings’’. 

11 (e) EFFECTIVE DATES.— 

12 (1) IN GENERAL.—Except as provided in para13 graph (2), the amendments made this section shall 

14 apply to expenditures made after December 31, 

15 2007. 

16 (2) MODIFICATION OF QUALIFIED ENERGY EF17 FICIENCY IMPROVEMENTS.—The amendments made 

18 by subsection (d) shall apply to property placed in 

19 service after the date of the enactment of this Act. 

20 SEC. 243. ENERGY EFFICIENT COMMERCIAL BUILDINGS DE21 DUCTION. 

22 Subsection (h) of section 179D is amended by strik23 ing ‘‘December 31, 2008’’ and inserting ‘‘December 31, 

24 2013’’. 


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1 SEC. 244. MODIFICATIONS OF ENERGY EFFICIENT APPLI2 ANCE CREDIT FOR APPLIANCES PRODUCED 

3 AFTER 2007. 

4 (a) IN GENERAL.—Subsection (b) of section 45M is 

5 amended to read as follows: 

6 ‘‘(b) APPLICABLE AMOUNT.—For purposes of sub7 section (a)— 

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

9 is— 

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

11 is manufactured in calendar year 2008 or 2009 

12 and which uses no more than 324 kilowatt 

13 hours per year and 5.8 gallons per cycle, and 

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

15 which is manufactured in calendar year 2008, 

16 2009, or 2010 and which uses no more than 

17 307 kilowatt hours per year and 5.0 gallons per 

18 cycle (5.5 gallons per cycle for dishwashers de19 signed for greater than 12 place settings). 

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

21 amount is— 

22 ‘‘(A) $75 in the case of a residential top23 loading clothes washer manufactured in cal24 endar year 2008 which meets or exceeds a 1.72 

25 modified energy factor and does not exceed a 

26 8.0 water consumption factor, 


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1 ‘‘(B) $125 in the case of a residential top2 loading clothes washer manufactured in cal3 endar year 2008 or 2009 which meets or ex4 ceeds a 1.8 modified energy factor and does not 

5 exceed a 7.5 water consumption factor, 

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

7 commercial clothes washer manufactured in cal8 endar year 2008, 2009, or 2010 which meets or 

9 exceeds 2.0 modified energy factor and does not 

10 exceed a 6.0 water consumption factor, and 

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

12 commercial clothes washer manufactured in cal13 endar year 2008, 2009, or 2010 which meets or 

14 exceeds 2.2 modified energy factor and does not 

15 exceed a 4.5 water consumption factor. 

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

17 is— 

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

19 which is manufactured in calendar year 2008, 

20 and consumes at least 20 percent but not more 

21 than 22.9 percent less kilowatt hours per year 

22 than the 2001 energy conservation standards, 

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

24 which is manufactured in calendar year 2008 or 

25 2009, and consumes at least 23 percent but no 


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1 more than 24.9 percent less kilowatt hours per 

2 year than the 2001 energy conservation stand3 ards, 

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

5 which is manufactured in calendar year 2008, 

6 2009, or 2010, and consumes at least 25 per7 cent but not more than 29.9 percent less kilo8 watt hours per year than the 2001 energy con9 servation standards, and 

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

11 manufactured in calendar year 2008, 2009, or 

12 2010 and which consumes at least 30 percent 

13 less energy than the 2001 energy conservation 

14 standards.’’. 

15 (b) ELIGIBLE PRODUCTION.— 

16 (1) SIMILAR TREATMENT FOR ALL APPLI17 ANCES.—Subsection (c) of section 45M is amend18 ed— 

19 (A) by striking paragraph (2), 

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

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

22 ‘‘The eligible’’, 

23 (C) by moving the text of such subsection 

24 in line with the subsection heading, and 


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1 (D) by redesignating subparagraphs (A) 

2 and (B) as paragraphs (1) and (2), respectively, 

3 and by moving such paragraphs 2 ems to the 

4 left. 

5 (2) MODIFICATION OF BASE PERIOD.—Para6 graph (2) of section 45M(c), as amended by para7 graph (1), is amended by striking ‘‘3-calendar year’’ 

8 and inserting ‘‘2-calendar year’’. 

9 (c) TYPES OF ENERGY EFFICIENT APPLIANCES.— 

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

11 efficient appliances) is amended to read as follows: 

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

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

14 appliances are— 

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

16 ‘‘(2) clothes washers described in subsection 

17 (b)(2), and 

18 ‘‘(3) refrigerators described in subsection 

19 (b)(3).’’. 

20 (d) AGGREGATE CREDIT AMOUNT ALLOWED.— 

21 (1) INCREASE IN LIMIT.—Paragraph (1) of sec22 tion 45M(e) is amended to read as follows: 

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

24 The aggregate amount of credit allowed under sub25 section (a) with respect to a taxpayer for any taxVerDate Aug 31 2005 02:47 Jul 29, 2008 Jkt 069200 PO 00000 Frm 00099 Fmt 6652 Sfmt 6201 E:\BILLS\S3349.IS S3349

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1 able year shall not exceed $75,000,000 reduced by 

2 the amount of the credit allowed under subsection 

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

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

5 (2) EXCEPTION FOR CERTAIN REFRIGERATOR

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

7 45M(e) is amended to read as follows: 

8 ‘‘(2) AMOUNT ALLOWED FOR CERTAIN REFRIG9 ERATORS AND CLOTHES WASHERS.—Refrigerators 

10 described in subsection (b)(3)(D) and clothes wash11 ers described in subsection (b)(2)(D) shall not be 

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

13 (e) QUALIFIED ENERGY EFFICIENT APPLIANCES.— 

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

15 45M(f) (defining qualified energy efficient appliance) 

16 is amended to read as follows: 

17 ‘‘(1) QUALIFIED ENERGY EFFICIENT APPLI18 ANCE.—The term ‘qualified energy efficient appli19 ance’ means— 

20 ‘‘(A) any dishwasher described in sub21 section (b)(1), 

22 ‘‘(B) any clothes washer described in sub23 section (b)(2), and 

24 ‘‘(C) any refrigerator described in sub25 section (b)(3).’’. 


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1 (2) CLOTHES WASHER.—Section 45M(f)(3) is 

2 amended by inserting ‘‘commercial’’ before ‘‘residen3 tial’’ the second place it appears. 

4 (3) TOP-LOADING CLOTHES WASHER.—Sub5 section (f) of section 45M is amended by redesig6 nating paragraphs (4), (5), (6), and (7) as para7 graphs (5), (6), (7), and (8), respectively, and by in8 serting after paragraph (3) the following new para9 graph: 

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

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

12 washer which has the clothes container compartment 

13 access located on the top of the machine and which 

14 operates on a vertical axis.’’. 

15 (4) REPLACEMENT OF ENERGY FACTOR.—Sec16 tion 45M(f)(6), as redesignated by paragraph (3), is 

17 amended to read as follows: 

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

19 ‘modified energy factor’ means the modified energy 

20 factor established by the Department of Energy for 

21 compliance with the Federal energy conservation 

22 standard.’’. 

23 (5) GALLONS PER CYCLE; WATER CONSUMP24 TION FACTOR.—Section 45M(f), as amended by 


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1 paragraph (3), is amended by adding at the end the 

2 following: 

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

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

5 amount of water, expressed in gallons, required to 

6 complete a normal cycle of a dishwasher. 

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

8 term ‘water consumption factor’ means, with respect 

9 to a clothes washer, the quotient of the total weight10 ed per-cycle water consumption divided by the cubic 

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

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

13 this section shall apply to appliances produced after De14 cember 31, 2007. 

15 SEC. 245. ACCELERATED RECOVERY PERIOD FOR DEPRE16 CIATION OF SMART METERS AND SMART 

17 GRID SYSTEMS. 

18 (a) IN GENERAL.—Section 168(e)(3)(D) is amended 

19 by striking ‘‘and’’ at the end of clause (i), by striking the 

20 period at the end of clause (ii) and inserting a comma, 

21 and by inserting after clause (ii) the following new clauses: 

22 ‘‘(iii) any qualified smart electric 

23 meter, and 

24 ‘‘(iv) any qualified smart electric grid 

25 system.’’. 


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1 (b) DEFINITIONS.—Section 168(i) is amended by in2 serting at the end the following new paragraph: 

3 ‘‘(18) QUALIFIED SMART ELECTRIC METERS.— 

4 ‘‘(A) IN GENERAL.—The term ‘qualified 

5 smart electric meter’ means any smart electric 

6 meter which is placed in service by a taxpayer 

7 who is a supplier of electric energy or a pro8 vider of electric energy services. 

9 ‘‘(B) SMART ELECTRIC METER.—For pur10 poses of subparagraph (A), the term ‘smart 

11 electric meter’ means any time-based meter and 

12 related communication equipment which is ca13 pable of being used by the taxpayer as part of 

14 a system that— 

15 ‘‘(i) measures and records electricity 

16 usage data on a time-differentiated basis 

17 in at least 24 separate time segments per 

18 day, 

19 ‘‘(ii) provides for the exchange of in20 formation between supplier or provider and 

21 the customer’s electric meter in support of 

22 time-based rates or other forms of demand 

23 response, 

24 ‘‘(iii) provides data to such supplier or 

25 provider so that the supplier or provider 


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1 can provide energy usage information to 

2 customers electronically, and 

3 ‘‘(iv) provides net metering. 

4 ‘‘(19) QUALIFIED SMART ELECTRIC GRID SYS5 TEMS.— 

6 ‘‘(A) IN GENERAL.—The term ‘qualified 

7 smart electric grid system’ means any smart 

8 grid property used as part of a system for elec9 tric distribution grid communications, moni10 toring, and management placed in service by a 

11 taxpayer who is a supplier of electric energy or 

12 a provider of electric energy services. 

13 ‘‘(B) SMART GRID PROPERTY.—For the 

14 purposes of subparagraph (A), the term ‘smart 

15 grid property’ means electronics and related 

16 equipment that is capable of— 

17 ‘‘(i) sensing, collecting, and moni18 toring data of or from all portions of a 

19 utility’s electric distribution grid, 

20 ‘‘(ii) providing real-time, two-way 

21 communications to monitor or manage 

22 such grid, and 

23 ‘‘(iii) providing real time analysis of 

24 and event prediction based upon collected 

25 data that can be used to improve electric 


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1 distribution system reliability, quality, and 

2 performance.’’. 

3 (c) CONTINUED APPLICATION OF 150 PERCENT DE4 CLINING BALANCE METHOD.—Paragraph (2) of section 

5 168(b) is amended by striking ‘‘or’’ at the end of subpara6 graph (B), by redesignating subparagraph (C) as subpara7 graph (D), and by inserting after subparagraph (B) the 

8 following new subparagraph: 

9 ‘‘(C) any property (other than property de10 scribed in paragraph (3)) which is a qualified 

11 smart electric meter or qualified smart electric 

12 grid system, or’’. 

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

14 this section shall apply to property placed in service after 

15 the date of the enactment of this Act. 

16 SEC. 246. QUALIFIED GREEN BUILDING AND SUSTAINABLE 

17 DESIGN PROJECTS. 

18 (a) IN GENERAL.—Paragraph (8) of section 142(l) 

19 is amended by striking ‘‘September 30, 2009’’ and insert20 ing ‘‘September 30, 2012’’. 

21 (b) TREATMENT OF CURRENT REFUNDING

22 BONDS.—Paragraph (9) of section 142(l) is amended by 

23 striking ‘‘October 1, 2009’’ and inserting ‘‘October 1, 

24 2012’’. 


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1 (c) ACCOUNTABILITY.—The second sentence of sec2 tion 701(d) of the American Jobs Creation Act of 2004 

3 is amended by striking ‘‘issuance,’’ and inserting 

4 ‘‘issuance of the last issue with respect to such project,’’. 

Æ 


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