II 

110TH CONGRESS 

1ST SESSION S. 672 

To amend the Internal Revenue Code of 1986 to provide tax-exempt financing 

for qualified renewable energy facilities, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 16, 2007 

Mr. SALAZAR (for himself and Mr. SMITH) introduced the following bill; which 

was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

tax-exempt financing for qualified renewable energy facilities, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Rural Community Re5 newable Energy Bonds Act’’. 

6 SEC. 2. TAX-EXEMPT FINANCING OF QUALIFIED RENEW7 ABLE ENERGY FACILITIES. 

8 (a) IN GENERAL.—Subsection (a) of section 142 of 

9 the Internal Revenue Code of 1986 (relating to exempt 

10 facility bond) is amended— 


ccoleman on PROD1PC60 with BILLS
2 

•S 672 IS

1 (1) by striking ‘‘or’’ at the end of paragraph 

2 (14), 

3 (2) by striking the period at the end of para4 graph (15) and inserting ‘‘, or’’, and 

5 (3) by inserting at the end the following new 

6 paragraph: 

7 ‘‘(16) qualified renewable energy facilities.’’. 

8 (b) DEFINITION.—Section 142 of the Internal Rev9 enue Code of 1986 is amended by inserting at the end 

10 the following new subsection: 

11 ‘‘(n) QUALIFIED RENEWABLE ENERGY FACILI12 TIES.—For purposes of subsection (a)(16)— 

13 ‘‘(1) IN GENERAL.—The term ‘qualified renew14 able energy facility’ means any facility— 

15 ‘‘(A) described in paragraph (1), (2), (3), 

16 (4), (5), (6), or (9) of section 45(d) (relating to 

17 facilities using wind, closed-loop biomass, open18 loop biomass, geothermal, solar, small irriga19 tion, land fill gas, or qualified hydropower to 

20 produce electricity), 

21 ‘‘(B) except in the case of a facility de22 scribed in section 45(d)(5), the nameplate ca23 pacity rating of which is not more than 40 

24 megawatts, and 

25 ‘‘(C) at least— 


ccoleman on PROD1PC60 with BILLS
3 

•S 672 IS

1 ‘‘(i) 49 percent of which is owned and 

2 controlled, including unrestricted voting 

3 rights, by 1 or more persons who are resi4 dents of the State in which such facility is 

5 located, and 

6 ‘‘(ii) 10 percent of which is owned and 

7 controlled, including unrestricted voting 

8 rights, by 1 or more persons who are resi9 dents of the local area in which such facil10 ity is located. 

11 ‘‘(2) DETERMINATION OF OWNERSHIP.—For 

12 purposes of paragraph (1)(C), ownership sufficient 

13 to meet the requirement of clause (ii) thereof may 

14 be taken into account for purposes of determining if 

15 the requirement of clause (i) thereof is met. 

16 ‘‘(3) DEFINITIONS.—For purposes of this sub17 section— 

18 ‘‘(A) RESIDENT.—The term ‘resident’ 

19 means— 

20 ‘‘(i) in the case of an individual, an 

21 individual whose primary residence is in 

22 the State or local area in which the facility 

23 is located, and 

24 ‘‘(ii) in the case of an entity, at least 

25 50 percent of such entity is owned by indiVerDate Aug 31 2005 01:29 Feb 27, 2007 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S672.IS S672

ccoleman on PROD1PC60 with BILLS
4 

•S 672 IS

1 viduals who are treated as residents of 

2 such State or local area under clause (i). 

3 For purposes of clause (ii), section 318 (relat4 ing to constructive ownership of stock), as 

5 modified by section 382(l)(3)(A), shall apply for 

6 purposes of determining ownership of stock in 

7 a corporation. Similar principles shall apply for 

8 purposes of determining ownership of interests 

9 in any other entity. 

10 ‘‘(B) LOCAL AREA.—The term ‘local area’ 

11 means, with respect to any facility, an area 

12 within the 200-mile radius of such facility.’’. 

13 (c) EXEMPTION FROM VOLUME CAP.—Paragraph 

14 (3) of section 146(g) of the Internal Revenue Code of 

15 1986 (exempting certain exempt facility bonds from the 

16 state volume caps) is amended by striking ‘‘or (15)’’ and 

17 inserting ‘‘(15), or (16)’’. 

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

19 this section shall apply with respect to bonds issued on 

20 or after the date of the enactment of this Act. 

Æ 


ccoleman on PROD1PC60 with BILLS