II 

110TH CONGRESS 

1ST SESSION S. 1291 

To amend the Internal Revenue Code of 1986 to extend and modify the 

renewable energy production credit and to extend and modify the credit 

to holders of clean renewable energy bonds. 

IN THE SENATE OF THE UNITED STATES 

MAY 3, 2007 

Mr. THUNE 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 extend 

and modify the renewable energy production credit and 

to extend and modify the credit to holders of clean renewable energy bonds. 

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 ‘‘Wind Energy Develop5 ment Act of 2007’’ or the ‘‘WEnD Act’’. 


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1 SEC. 2. EXTENSION AND MODIFICATION OF RENEWABLE 

2 ELECTRICITY PRODUCTION CREDIT. 

3 (a) EXTENSION.—Paragraphs (1), (2), (3), (4), (5), 

4 (6), (7), and (9) of section 45(d) of the Internal Revenue 

5 Code of 1986 (relating to qualified facilities) are each 

6 amended by striking ‘‘January 1, 2009’’ each place it ap7 pears and inserting ‘‘January 1, 2013’’. 

8 (b) MODIFICATION OF INFLATION ADJUSTMENT.— 

9 Paragraph (2) of section 45(b) of the Internal Revenue 

10 Code of 1986 is amended by adding at the end the fol11 lowing new sentence: ‘‘No adjustment shall be made under 

12 this paragraph with respect to the 1.5 cent amount in sub13 section (a) and the 8 cent amount in paragraph (1) for 

14 any year after 2007.’’. 

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

16 this section apply to energy produced and sold after the 

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

18 after such date. 

19 SEC. 3. EXTENSION AND EXPANSION OF CREDIT TO HOLD20 ERS OF CLEAN RENEWABLE ENERGY BONDS. 

21 (a) EXTENSION.—Section 54(m) of the Internal Rev22 enue Code of 1986 (relating to termination) is amended 

23 by striking ‘‘2008’’ and inserting ‘‘2012’’. 

24 (b) ANNUAL VOLUME CAP FOR BONDS ISSUED DUR25 ING EXTENSION PERIOD.—Subsection (f) of section 54 of 

26 the Internal Revenue Code of 1986 (relating to limitation 


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1 on amount of bonds designated) is amended to read as 

2 follows: 

3 ‘‘(f) LIMITATION ON AMOUNT OF BONDS DES4 IGNATED.— 

5 ‘‘(1) ANNUAL NATIONAL LIMITATION.—There is 

6 a national clean renewable energy bond limitation 

7 for each calendar year of $2,250,000,000. 

8 ‘‘(2) ALLOCATION BY SECRETARY.— 

9 ‘‘(A) IN GENERAL.—Subject to subpara10 graph (B), the Secretary shall allocate the 

11 amount described in paragraph (1) among 

12 qualified projects in such manner as the Sec13 retary determines appropriate. 

14 ‘‘(B) LIMITATION ON ALLOCATIONS.—With 

15 respect to any calendar year, the Secretary may 

16 not allocate— 

17 ‘‘(i) more than $750,000,000 of the 

18 amount described in paragraph (1) to fi19 nance qualified projects of qualified bor20 rowers which are public power entities, 

21 ‘‘(ii) more than $250,000,000 of the 

22 amount described in paragraph (1) to fi23 nance qualified projects of qualified bor24 rowers which are Indian tribes, 


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1 ‘‘(iii) more than $500,000,000 of the 

2 amount described in paragraph (1) to fi3 nance qualified projects of qualified bor4 rowers which are government entities 

5 (other than public power entities or Indian 

6 tribes), and 

7 ‘‘(iv) more than $750,000,000 of the 

8 amount described in paragraph (1) to fi9 nance qualified projects of qualified bor10 rowers which are cooperative electric com11 panies or cooperative lenders. 

12 ‘‘(C) PUBLIC POWER ENTITY.—For pur13 poses of subparagraph (B), the term ‘public 

14 power entity’ means a State utility with a serv15 ice obligation, as such terms are defined in sec16 tion 217 of the Federal Power Act.’’. 

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

18 this section shall apply to bonds issued after December 

19 31, 2007. 

Æ 


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