I 

111TH CONGRESS 

2D SESSION H. R. 5142 

To amend the Internal Revenue Code of 1986 to provide for an investment 

tax credit for biofuel facilities, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 26, 2010 

Ms. SCHWARTZ (for herself, Mr. SCHAUER, and Mr. BILBRAY) introduced the 

following bill; which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

for an investment tax credit for biofuel 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 ‘‘Grow a Renewable En5 ergy Economy Now—Jumpstart Other Biofuels Act of 

6 2010’’. 


tjames on DSK5CLS3C1PROD with BILLS
2 

•HR 5142 IH

1 SEC. 2. ALLOWANCE OF INVESTMENT TAX CREDIT FOR 

2 CERTAIN CELLULOSIC AND ALGAE-BASED 

3 BIOFUEL FACILITIES. 

4 (a) IN GENERAL.—Subsection (a) of section 48 of the 

5 Internal Revenue Code of 1986 is amended by adding at 

6 the end the following new paragraph: 

7 ‘‘(6) ELECTION TO TREAT QUALIFIED CELLU8 LOSIC AND ALGAE-BASED BIOFUEL FACILITY AS EN9 ERGY PROPERTY.— 

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

11 qualified property which is part of a qualified 

12 cellulosic and algae-based biofuel facility— 

13 ‘‘(i) such property shall be treated as 

14 energy property for purposes of this sec15 tion, and 

16 ‘‘(ii) the energy percentage with re17 spect to such property shall be 30 percent. 

18 ‘‘(B) DENIAL OF PRODUCTION CREDIT.— 

19 No credit shall be allowed under section 40 for 

20 any taxable year with respect to any qualified 

21 investment credit cellulosic and algae-based 

22 biofuel facility. 

23 ‘‘(C) QUALIFIED INVESTMENT CREDIT

24 CELLULOSIC AND ALGAE-BASED BIOFUEL FA25 CILITY.—For purposes of this paragraph, the 

26 term ‘qualified cellulosic and algae-based biofuel 


tjames on DSK5CLS3C1PROD with BILLS
3 

•HR 5142 IH

1 facility’ means a facility constructed with the 

2 primary purpose of the production of transpor3 tation-grade qualified cellulosic biofuel produc4 tion (as defined in subparagraph (C) of section 

5 40(b)(6)) or qualified algae-based biofuel pro6 duction (as defined in section (F) of such sec7 tion) if no credit has been allowed under section 

8 40 with respect to such facility and the tax9 payer makes an irrevocable election to have this 

10 paragraph apply to such facility. 

11 ‘‘(D) TERMINATION.—No election may be 

12 made under subparagraph (C) after December 

13 31, 2016.’’. 

14 (b) SPECIAL ALLOWANCE FOR CELLULOSIC BIOFUEL

15 PLANT PROPERTY.— 

16 (1) EXTENSION OF.—Paragraphs (2)(D) and 

17 (5)(B) of section 168(l) of such Code are each 

18 amended by striking ‘‘January 1, 2013’’ and insert19 ing ‘‘January 1, 2017’’. 

20 (2) COORDINATION WITH CREDIT.—Section 

21 168(l)(8) of such Code is amended by inserting ‘‘or 

22 under section 48(a)(6)(C) (relating to election to 

23 treat qualified cellulosic and algae-based biofuel fa24 cility as energy property)’’ before the period at the 

25 end. 


tjames on DSK5CLS3C1PROD with BILLS
4 

•HR 5142 IH

1 (c) CONFORMING AMENDMENT.—Section 48(a)(3) of 

2 such Code is amended by striking ‘‘section 45’’ and insert3 ing ‘‘section 40 or 45’’. 

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

5 this section shall apply to property placed in service after 

6 the date of the enactment of this Act. 

7 SEC. 3. INCLUSION OF ALGAE-BASED BIOFUEL IN DEFINI8 TION OF CELLULOSIC BIOFUEL. 

9 (a) CELLULOSIC BIOFUEL PRODUCER CREDIT.— 

10 (1) GENERAL RULE.—Paragraph (4) of section 

11 40(a) of the Internal Revenue Code of 1986 is 

12 amended by inserting ‘‘and algae-based’’ after ‘‘cel13 lulosic’’. 

14 (2) DEFINITIONS.—Paragraph (6) of section 

15 40(b) of such Code is amended— 

16 (A) by inserting ‘‘AND ALGAE-BASED’’ 

17 after ‘‘CELLULOSIC’’ in the heading, 

18 (B) by striking subparagraph (A) and in19 serting the following: 

20 ‘‘(A) IN GENERAL.—The cellulosic and 

21 algae-based biofuel producer credit of any tax22 payer is an amount equal to the applicable 

23 amount for each gallon of— 

24 ‘‘(i) qualified cellulosic biofuel produc25 tion, and 


tjames on DSK5CLS3C1PROD with BILLS
5 

•HR 5142 IH

1 ‘‘(ii) qualified algae-based biofuel pro2 duction.’’, 

3 (C) by redesignating subparagraphs (F), 

4 (G), and (H) as subparagraphs (I), (J), and 

5 (K), respectively, 

6 (D) by inserting ‘‘AND ALGAE-BASED’’ 

7 after ‘‘CELLULOSIC’’ in the heading of subpara8 graph (I), as so redesignated, 

9 (E) by inserting ‘‘or algae-based biofuel, 

10 whichever is appropriate,’’ after ‘‘cellulosic 

11 biofuel’’ in subparagraph (J), as so redesig12 nated, 

13 (F) by inserting ‘‘and qualified algae-based 

14 biofuel production’’ after ‘‘qualified cellulosic 

15 biofuel production’’ in subparagraph (K), as so 

16 redesignated, and 

17 (G) by inserting after subparagraph (E) 

18 the following new subparagraphs: 

19 ‘‘(F) QUALIFIED ALGAE-BASED BIOFUEL

20 PRODUCTION.—For purposes of this section, 

21 the term ‘qualified algae-based biofuel produc22 tion’ means any algae-based biofuel which is 

23 produced by the taxpayer, and which during the 

24 taxable year— 


tjames on DSK5CLS3C1PROD with BILLS
6 

•HR 5142 IH

1 ‘‘(i) is sold by the taxpayer to another 

2 person— 

3 ‘‘(I) for use by such other person 

4 in the production of a qualified algae5 based biofuel mixture in such other 

6 person’s trade or business (other than 

7 casual off-farm production), 

8 ‘‘(II) for use by such other per9 son as a fuel in a trade or business, 

10 or 

11 ‘‘(III) who sells such algae-based 

12 biofuel at retail to another person and 

13 places such algae-based biofuel in the 

14 fuel tank of such other person, or 

15 ‘‘(ii) is used or sold by the taxpayer 

16 for any purpose described in clause (i). 

17 The qualified algae-based biofuel production of 

18 any taxpayer for any taxable year shall not in19 clude any alcohol which is purchased by the 

20 taxpayer and with respect to which such pro21 ducer increases the proof of the alcohol by addi22 tional distillation. 

23 ‘‘(G) QUALIFIED ALGAE-BASED BIOFUEL

24 MIXTURE.—For purposes of this paragraph, the 

25 term ‘qualified algae-based biofuel mixture’ 


tjames on DSK5CLS3C1PROD with BILLS
7 

•HR 5142 IH

1 means a mixture of algae-based biofuel and gas2 oline or of algae-based biofuel and a special fuel 

3 which— 

4 ‘‘(i) is sold by the person producing 

5 such mixture to any person for use as a 

6 fuel, or 

7 ‘‘(ii) is used as a fuel by the person 

8 producing such mixture. 

9 ‘‘(H) ALGAE-BASED BIOFUEL.—For pur10 poses of this paragraph— 

11 ‘‘(i) IN GENERAL.—The term ‘algae12 based biofuel’ means any liquid fuel, in13 cluding gasoline, diesel, aviation fuel, and 

14 ethanol, which— 

15 ‘‘(I) is produced from the bio16 mass of algal organisms, and 

17 ‘‘(II) meets the registration re18 quirements for fuels and fuel additives 

19 established by the Environmental Pro20 tection Agency under section 211 of 

21 the Clean Air Act (42 U.S.C. 7545). 

22 ‘‘(ii) ALGAL ORGANISM.—The term 

23 ‘algal organism’ means a single- or multi24 cellular organism which is primarily aquat25 ic and classified as a non-vascular plant, 


tjames on DSK5CLS3C1PROD with BILLS
8 

•HR 5142 IH

1 including microalgae, blue-green algae 

2 (cyanobacteria), and macroalgae (sea3 weeds). 

4 ‘‘(iii) EXCLUSION OF LOW-PROOF AL5 COHOL.—Such term shall not include any 

6 alcohol with a proof of less than 150. The 

7 determination of the proof of any alcohol 

8 shall be made without regard to any added 

9 denaturants.’’. 

10 (3) CONFORMING AMENDMENTS.— 

11 (A) Subparagraph (D) of section 40(d)(3) 

12 of such Code is amended— 

13 (i) by inserting ‘‘AND ALGAE-BASED’’ 

14 after ‘‘CELLULOSIC’’ in the heading, 

15 (ii) by inserting ‘‘or (b)(6)(F)’’ after 

16 ‘‘(b)(6)(C)’’ in clause (ii), and 

17 (iii) by inserting ‘‘or algae-based’’ 

18 after ‘‘such cellulosic’’. 

19 (B) Paragraph (6) of section 40(d) of such 

20 Code is amended— 

21 (i) by inserting ‘‘AND ALGAE-BASED’’ 

22 after ‘‘CELLULOSIC’’ in the heading, and 

23 (ii) by striking the first sentence and 

24 inserting ‘‘No cellulosic and algae-based 

25 biofuel producer credit shall be determined 


tjames on DSK5CLS3C1PROD with BILLS
9 

•HR 5142 IH

1 under subsection (a) with respect to any 

2 cellulosic or algae-based biofuel unless such 

3 cellulosic or algae-based biofuel is produced 

4 in the United States and used as a fuel in 

5 the United States.’’. 

6 (C) Paragraph (3) of section 40(e) of such 

7 Code is amended by inserting ‘‘AND ALGAE8 BASED’’ after ‘‘CELLULOSIC’’ in the heading. 

9 (D) Paragraph (1) of section 4101(a) of 

10 such Code is amended— 

11 (i) by inserting ‘‘or algae-based’’ after 

12 ‘‘cellulosic’’, and 

13 (ii) by inserting ‘‘and 40(b)(6)(H), re14 spectively’’ after ‘‘section 40(b)(6)(E)’’. 

15 (b) SPECIAL ALLOWANCE FOR CELLULOSIC BIOFUEL

16 PLANT PROPERTY.—Subsection (l) of section 168 of such 

17 Code is amended— 

18 (1) by inserting ‘‘AND ALGAE-BASED’’ after 

19 ‘‘CELLULOSIC’’ in the heading, 

20 (2) by inserting ‘‘and any qualified algae-based 

21 biofuel plant property’’ after ‘‘qualified cellulosic 

22 biofuel plant property’’ in paragraph (1), 

23 (3) by redesignating paragraphs (4) through 

24 (8) as paragraphs (6) through (10), respectively, 


tjames on DSK5CLS3C1PROD with BILLS
10 

•HR 5142 IH

1 (4) by inserting ‘‘or qualified algae-based 

2 biofuel plant property’’ after ‘‘cellulosic biofuel plant 

3 property’’ in paragraph (7)(C), as so redesignated, 

4 (5) by striking ‘‘with respect to’’ and all that 

5 follows in paragraph (9), as so redesignated, and in6 serting ‘‘with respect to any qualified cellulosic 

7 biofuel plant property and any qualified algae-based 

8 biofuel plant property which ceases to be such quali9 fied property.’’, 

10 (6) by inserting ‘‘or qualified algae-based 

11 biofuel plant property’’ after ‘‘cellulosic biofuel plant 

12 property’’ in paragraph (10), as so redesignated, and 

13 (7) by inserting after paragraph (3) the fol14 lowing new paragraphs: 

15 ‘‘(4) QUALIFIED ALGAE-BASED BIOFUEL PLANT

16 PROPERTY.—The term ‘qualified algae-based biofuel 

17 plant property’ means property of a character sub18 ject to the allowance for depreciation— 

19 ‘‘(A) which is used in the United States 

20 solely to produce algae-based biofuel, 

21 ‘‘(B) the original use of which commences 

22 with the taxpayer after the date of the enact23 ment of this paragraph, 

24 ‘‘(C) which is acquired by the taxpayer by 

25 purchase (as defined in section 179(d)) after 


tjames on DSK5CLS3C1PROD with BILLS
11 

•HR 5142 IH

1 the date of the enactment of this paragraph, 

2 but only if no written binding contract for the 

3 acquisition was in effect on or before such date, 

4 and 

5 ‘‘(D) which is placed in service by the tax6 payer before January 1, 2017. 

7 ‘‘(5) ALGAE-BASED BIOFUEL.— 

8 ‘‘(A) IN GENERAL.—The term ‘algae-based 

9 biofuel’ means any liquid fuel which is produced 

10 from the biomass of algal organisms. 

11 ‘‘(B) ALGAL ORGANISM.—The term ‘algal 

12 organism’ means a single- or multi-cellular or13 ganism which is primarily aquatic and classified 

14 as a non-vascular plant, including microalgae, 

15 blue-green algae (cyanobacteria), and 

16 macroalgae (seaweeds).’’. 

17 (c) EFFECTIVE DATES.— 

18 (1) CELLULOSIC BIOFUEL PRODUCER CRED19 IT.—The amendments made by subsection (a) shall 

20 apply to fuel produced after the date of the enact21 ment of this Act. 

22 (2) SPECIAL ALLOWANCE FOR CELLULOSIC

23 BIOFUEL PLANT PROPERTY.—The amendments 

24 made by subsection (b) shall apply to property purVerDate Nov 24 2008 04:17 Apr 27, 2010 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H5142.IH H5142

tjames on DSK5CLS3C1PROD with BILLS
12 

•HR 5142 IH

1 chased and placed in service after the date of the en2 actment of this Act. 

3 SEC. 4. CRUDE TALL OIL INELIGIBLE FOR CELLULOSIC 

4 AND ALGAE-BASED BIOFUEL PRODUCER 

5 CREDIT. 

6 (a) IN GENERAL.—Paragraph (6) of section 40(b) of 

7 the Internal Revenue Code of 1986 is amended by redesig8 nating subparagraphs (I), (J), and (K), as designated by 

9 section 3(a)(2)(C) of this Act, as subparagraphs (J), (K), 

10 and (L), respectively, and by inserting after subparagraph 

11 (H) the following new subparagraph: 

12 ‘‘(I) EXCLUSION OF CERTAIN PROCESSED

13 FUELS WITH A HIGH ACID CONTENT.—The 

14 terms ‘cellulosic biofuel’ and ‘algae-based 

15 biofuel’ shall not include any processed fuel 

16 with an acid number greater than 25. For pur17 poses of the preceding sentence, the term ‘proc18 essed fuel’ means any fuel other than a fuel— 

19 ‘‘(i) more than 4 percent of which (de20 termined by weight) is any combination of 

21 water and sediment, or 

22 ‘‘(ii) the ash content of which is more 

23 than 1 percent (determined by weight).’’. 


tjames on DSK5CLS3C1PROD with BILLS
13 

•HR 5142 IH

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

2 this section shall apply to fuels sold or used on or after 

3 the date of the enactment of this Act. 

4 SEC. 5. EXTENSION OF CELLULOSIC AND ALGAE-BASED 

5 BIOFUEL PRODUCER CREDIT. 

6 Subparagraph (L) of section 40(b)(6) of the Internal 

7 Revenue Code of 1986, as amended by sections 3 and 4 

8 of this Act, is amended by striking ‘‘January 1, 2013’’ 

9 and inserting ‘‘January 1, 2017’’. 

10 SEC. 6. ELECTIVE PAYMENT FOR CELLULOSIC AND ALGAE11 BASED BIOFUEL FACILITY PROPERTY. 

12 (a) IN GENERAL.—Chapter 65 of the Internal Rev13 enue Code of 1986 (relating to abatements, credits, and 

14 refunds) is amended by adding at the end the following 

15 new subchapter: 

16 ‘‘Subchapter C—Direct Payment Provisions 

‘‘Sec. 6451. Elective payment for cellulosic and algae-based biofuel facility 

property. 

17 ‘‘SEC. 6451. ELECTIVE PAYMENT FOR CELLULOSIC AND 

18 ALGAE-BASED BIOFUEL FACILITY PROPERTY. 

19 ‘‘(a) IN GENERAL.—Any person making an election 

20 under this section with respect to any specified cellulosic 

21 and algae-based biofuel facility property originally placed 

22 in service by such person during the taxable year shall 

23 be treated as making a payment, against the tax imposed 

24 by subtitle A for the taxable year equal to 30 percent of 


tjames on DSK5CLS3C1PROD with BILLS
14 

•HR 5142 IH

1 the basis of such property. Such payment shall be treated 

2 as made on the later of the due date of the return of such 

3 tax or the date on which such return is filed. 

4 ‘‘(b) SPECIFIED CELLULOSIC AND ALGAE-BASED

5 BIOFUEL FACILITY PROPERTY.—For purposes of this sec6 tion, the term ‘specified cellulosic and algae-based biofuel 

7 facility property’ means a qualified cellulosic and algae8 based biofuel facility (as defined by section 48(a)(6)(C) 

9 which— 

10 ‘‘(1) is property of a character subject to an al11 lowance for depreciation, and 

12 ‘‘(2) is originally placed in service before Janu13 ary 1, 2017. 

14 ‘‘(c) SPECIAL RULES FOR CERTAIN NON-TAX15 PAYERS.— 

16 ‘‘(1) DENIAL OF PAYMENT.—Subsection (a) 

17 shall not apply with respect to any property origi18 nally placed in service by— 

19 ‘‘(A) any governmental entity, 

20 ‘‘(B) any organization described in section 

21 501(c) or 401(a) and exempt from tax under 

22 section 501(a), or 

23 ‘‘(C) any entity referred to in paragraph 

24 (4) of section 54(j), or 


tjames on DSK5CLS3C1PROD with BILLS
15 

•HR 5142 IH

1 ‘‘(D) any partnership or other pass-thru 

2 entity any partner (or other holder of an equity 

3 or profits interest) of which is described in 

4 paragraph (1), (2), or (3). 

5 ‘‘(2) EXCEPTION FOR PROPERTY USED IN UN6 RELATED TRADE OR BUSINESS.—Paragraph (1) 

7 shall not apply with respect to any property origi8 nally placed in service by an entity described in sec9 tion 511(a)(2) if substantially all of the income de10 rived from such property by such entity is unrelated 

11 business taxable income (as defined in section 512). 

12 ‘‘(3) SPECIAL RULES FOR PARTNERSHIPS AND

13 S CORPORATIONS.—In the case of property originally 

14 placed in service by a partnership or an S corpora15 tion— 

16 ‘‘(A) the election under subsection (a) may 

17 be made only by such partnership or S corpora18 tion, 

19 ‘‘(B) such partnership or S corporation 

20 shall be treated as making the payment referred 

21 to in subsection (a) only to the extent of the 

22 proportionate share of such partnership or S 

23 corporation as is owned by persons who would 

24 be treated as making such payment if the propVerDate Nov 24 2008 04:17 Apr 27, 2010 Jkt 089200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\H5142.IH H5142

tjames on DSK5CLS3C1PROD with BILLS
16 

•HR 5142 IH

1 erty were originally placed in service by such 

2 persons, and 

3 ‘‘(C) the return required to be made by 

4 such partnership or S corporation under section 

5 6031 or 6037 (as the case may be) shall be 

6 treated as a return of tax for purposes of sub7 section (a). 

8 For purposes of subparagraph (B), rules similar to 

9 the rules of section 168(h)(6) (other than subpara10 graph (F) thereof) shall apply. 

11 ‘‘(d) COORDINATION WITH PRODUCTION AND IN12 VESTMENT CREDITS.—In the case of any property with 

13 respect to which an election is made under this section— 

14 ‘‘(1) DENIAL OF PRODUCTION AND INVEST15 MENT CREDITS.—No credit shall be determined 

16 under section 40 or 48 with respect to such property 

17 for the taxable year in which such property is origi18 nally placed in service or any subsequent taxable 

19 year. 

20 ‘‘(2) REDUCTION OF PAYMENT BY PROGRESS

21 EXPENDITURES ALREADY TAKEN INTO ACCOUNT.— 

22 The amount of the payment treated as made under 

23 subsection (a) with respect to such property shall be 

24 reduced by the aggregate amount of credits deter25 mined under section 48 with respect to such propVerDate Nov 24 2008 05:48 Apr 27, 2010 Jkt 089200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\H5142.IH H5142

tjames on DSK5CLS3C1PROD with BILLS
17 

•HR 5142 IH

1 erty for all taxable years preceding the taxable year 

2 in which such property is originally placed in service. 

3 ‘‘(e) OTHER DEFINITIONS AND SPECIAL RULES.— 

4 For purposes of this section— 

5 ‘‘(1) OTHER DEFINITIONS.—Terms used in this 

6 section which are also used in section 48 shall have 

7 the same meaning for purposes of this section as 

8 when used in such section. 

9 ‘‘(2) APPLICATION OF RECAPTURE RULES, 

10 ETC.—Except as otherwise provided by the Sec11 retary— 

12 ‘‘(A) IN GENERAL.—Except as otherwise 

13 provided in this paragraph, rules similar to the 

14 rules of section 50 shall apply. 

15 ‘‘(B) EXCEPTION TO LIMITATION ON REAL

16 ESTATE INVESTMENT TRUSTS, ETC.—Para17 graph (1) of section 50(d) shall not apply. 

18 ‘‘(3) PROVISION OF INFORMATION.—A person 

19 shall not be treated as having elected the application 

20 of this section unless the taxpayer provides such in21 formation as the Secretary (in consultation with the 

22 Secretary of Energy) may require for purposes of 

23 verifying the proper amount to be treated as a pay24 ment under subsection (a) and evaluating the effec25 tiveness of this section. 


tjames on DSK5CLS3C1PROD with BILLS
18 

•HR 5142 IH

1 ‘‘(4) EXCLUSION FROM GROSS INCOME.—Any 

2 credit or refund allowed or made by reason of this 

3 section shall not be includible in gross income or al4 ternative minimum taxable income.’’. 

5 (b) CONFORMING AMENDMENTS.— 

6 (1) Subparagraph (A) of section 6211(b)(4)(A) 

7 of such Code is amended by inserting ‘‘and sub8 chapter C of chapter 65 (including any payment 

9 treated as made under such subchapter)’’ after 

10 ‘‘6431’’. 

11 (2) Subparagraph (B) of section 6425(c)(1) of 

12 such Code is amended— 

13 (A) by striking ‘‘the credits’’ and inserting 

14 ‘‘the sum of— 

15 ‘‘(i) the credits’’, 

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

17 clause (i) thereof (as amended by this para18 graph) and inserting ‘‘, plus’’, and 

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

20 clause: 

21 ‘‘(ii) the payments treated as made 

22 under subchapter C of chapter 65.’’. 

23 (3) Paragraph (4) of section 6654(f) of such 

24 Code is amended— 


tjames on DSK5CLS3C1PROD with BILLS
19 

•HR 5142 IH

1 (A) by striking ‘‘the credits’’ and inserting 

2 ‘‘the sum of— 

3 ‘‘(A) the credits’’, 

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

5 subparagraph (A) thereof (as amended by this 

6 paragraph) and inserting ‘‘, and’’, and 

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

8 subparagraph: 

9 ‘‘(B) the payments treated as made under 

10 subchapter C of chapter 65.’’. 

11 (4) Subparagraph (B) of section 6655(g)(1) of 

12 such Code is amended— 

13 (A) by striking ‘‘the credits’’ and inserting 

14 ‘‘the sum of— 

15 ‘‘(i) the credits’’, 

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

17 clause (i) thereof (as amended by this para18 graph) and inserting ‘‘, plus’’, and 

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

20 clause: 

21 ‘‘(ii) the payments treated as made 

22 under subchapter C of chapter 65.’’. 

23 (5) Paragraph (2) of section 1324(b) of title 

24 31, United States Code, is amended by inserting ‘‘, 


tjames on DSK5CLS3C1PROD with BILLS
20 

•HR 5142 IH

1 or from the provisions of subchapter C of chapter 65 

2 of such Code’’ before the period at the end. 

3 (6) The table of subchapters for chapter 65 of 

4 the Internal Revenue Code of 1986 is amended by 

5 adding at the end the following new item: 

‘‘SUBCHAPTER C. DIRECT PAYMENT PROVISIONS.’’. 

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

7 this section shall apply to property originally placed in 

8 service after the date of the enactment of this Act. 

Æ 


tjames on DSK5CLS3C1PROD with BILLS