II 

113TH CONGRESS 

2D SESSION S. 2279 

To amend the Internal Revenue Code of 1986 to terminate certain energy 

tax subsidies and lower the corporate income tax rate. 

IN THE SENATE OF THE UNITED STATES 

MAY 1, 2014 

Mr. LEE 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 terminate 

certain energy tax subsidies and lower the corporate income tax rate. 

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; REFERENCE TO 1986 CODE. 

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

5 ‘‘Energy Freedom and Economic Prosperity Act of 2014’’. 

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

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


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1 shall be considered to be made to a section or other provi2 sion of the Internal Revenue Code of 1986. 

3 TITLE I—REPEAL OF ENERGY 

4 TAX SUBSIDIES 

5 SEC. 101. REPEAL OF CREDIT FOR ALCOHOL FUEL, BIO6 DIESEL, AND ALTERNATIVE FUEL MIXTURES. 

7 (a) IN GENERAL.—Section 6426 is repealed. 

8 (b) CONFORMING AMENDMENTS.— 

9 (1) Paragraph (1) of section 4101(a) is amend10 ed by striking ‘‘or alcohol (as defined in section 

11 6426(b)(4)(A)’’. 

12 (2) Paragraph (2) of section 4104(a) is amend13 ed by striking ‘‘6426, or 6427(e)’’. 

14 (3) Section 6427 is amended by striking sub15 section (e). 

16 (4) Subparagraph (E) of section 7704(d)(1) is 

17 amended— 

18 (A) by inserting ‘‘(as in effect on the day 

19 before the date of the enactment of the Energy 

20 Freedom and Economic Prosperity Act of 

21 2014)’’ after ‘‘of section 6426’’, and 

22 (B) by inserting ‘‘(as so in effect)’’ after 

23 ‘‘section 6426(b)(4)(A)’’. 

24 (5) Paragraph (1) of section 9503(b) is amend25 ed by striking the second sentence. 


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1 (c) CLERICAL AMENDMENT.—The table of sections 

2 for subchapter B of chapter 65 is amended by striking 

3 the item relating to section 6426. 

4 (d) EFFECTIVE DATES.— 

5 (1) IN GENERAL.—Except as provided in para6 graph (2), the amendments made by this section 

7 shall apply with respect to fuel sold and used after 

8 the date of the enactment of this Act. 

9 (2) LIQUEFIED HYDROGEN.—In the case of any 

10 alternative fuel or alternative fuel mixture (as de11 fined in subsection (d)(2) or (e)(3) of section 6426 

12 of the Internal Revenue Code of 1986 as in effect 

13 before its repeal by this Act) involving liquefied hy14 drogen, the amendments made by this section shall 

15 apply with respect to fuel sold and used after Sep16 tember 30, 2014. 

17 SEC. 102. EARLY TERMINATION OF CREDIT FOR QUALIFIED 

18 FUEL CELL MOTOR VEHICLES. 

19 (a) IN GENERAL.—Section 30B is repealed. 

20 (b) CONFORMING AMENDMENTS.— 

21 (1) Subparagraph (A) of section 24(b)(3) is 

22 amended by striking ‘‘, 30B’’. 

23 (2) Paragraph (2) of section 25B(g) is amended 

24 by striking ‘‘, 30B,’’. 


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1 (3) Subsection (b) of section 38 is amended by 

2 striking paragraph (25). 

3 (4) Subsection (a) of section 1016 is amended 

4 by striking paragraph (35) and by redesignating 

5 paragraphs (36) and (37) as paragraphs (35) and 

6 (36), respectively. 

7 (5) Subsection (m) of section 6501 is amended 

8 by striking ‘‘, 30B(h)(9)’’. 

9 (c) CLERICAL AMENDMENT.—The table of sections 

10 for subpart B of part IV of subchapter A of chapter 1 

11 is amended by striking the item relating to section 30B. 

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

13 this section shall apply to property placed in service after 

14 December 31, 2014. 

15 SEC. 103. EARLY TERMINATION OF NEW QUALIFIED PLUG16 IN ELECTRIC DRIVE MOTOR VEHICLES. 

17 (a) IN GENERAL.—Section 30D is repealed. 

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

19 this section shall apply to vehicles placed in service after 

20 the date of the enactment of this Act. 

21 SEC. 104. REPEAL OF CREDIT FOR ALCOHOL USED AS 

22 FUEL. 

23 (a) IN GENERAL.—Section 40 is repealed. 

24 (b) CONFORMING AMENDMENTS.— 


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1 (1) Subsection (b) of section 38 is amended by 

2 striking paragraph (3). 

3 (2) Subsection (c) of section 196 is amended by 

4 striking paragraph (3) and by redesignating para5 graphs (4) through (14) as paragraphs (3) through 

6 (13), respectively. 

7 (3) Paragraph (1) of section 4101(a) is amend8 ed by striking ‘‘, and every person producing cellu9 losic biofuel (as defined in section 40(b)(6)(E))’’. 

10 (4) Paragraph (1) of section 4104(a) is amend11 ed by striking ‘‘, 40’’. 

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

13 this section shall apply to fuel sold or used after the date 

14 of the enactment of this Act. 

15 SEC. 105. REPEAL OF ENHANCED OIL RECOVERY CREDIT. 

16 (a) IN GENERAL.—Section 43 is repealed. 

17 (b) CONFORMING AMENDMENTS.— 

18 (1) Subsection (b) of section 38 is amended by 

19 striking paragraph (6). 

20 (2) Paragraph (4) of section 45Q(d) is amended 

21 by inserting ‘‘(as in effect on the day before the date 

22 of the enactment of the Energy Freedom and Eco23 nomic Prosperity Act of 2014)’’ after ‘‘section 

24 43(c)(2)’’. 


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1 (3) Subsection (c) of section 196, as amended 

2 by sections 105 and 106 of this Act, is amended by 

3 striking paragraph (5) and by redesignating para4 graphs (6) through (12) as paragraphs (5) through 

5 (11), respectively. 

6 (c) CLERICAL AMENDMENT.—The table of sections 

7 for subpart D of part IV of subchapter A of chapter 1 

8 is amended by striking the item relating to section 43. 

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

10 this section shall apply to costs paid or incurred after De11 cember 31, 2014. 

12 SEC. 106. REPEAL OF CREDIT FOR PRODUCING OIL AND 

13 GAS FROM MARGINAL WELLS. 

14 (a) IN GENERAL.—Section 45I is repealed. 

15 (b) CONFORMING AMENDMENT.—Subsection (b) of 

16 section 38 is amended by striking paragraph (19). 

17 (c) CLERICAL AMENDMENT.—The table of sections 

18 for subpart D of part IV of subchapter A of chapter 1 

19 is amended by striking the item relating to section 45I. 

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

21 this section shall apply to production in taxable years be22 ginning after December 31, 2014. 


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1 SEC. 107. TERMINATION OF CREDIT FOR PRODUCTION 

2 FROM ADVANCED NUCLEAR POWER FACILI3 TIES. 

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

5 45J(d)(1) is amended by striking ‘‘January 1, 2021’’ and 

6 inserting ‘‘January 1, 2015’’. 

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

8 this section shall apply to property placed in service after 

9 December 31, 2014. 

10 SEC. 108. REPEAL OF CREDIT FOR CARBON DIOXIDE SE11 QUESTRATION. 

12 (a) IN GENERAL.—Section 45Q is repealed. 

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

14 this section shall apply to carbon dioxide captured after 

15 December 31, 2014. 

16 SEC. 109. TERMINATION OF ENERGY CREDIT. 

17 (a) IN GENERAL.—Section 48 is amended by adding 

18 at the end the following new subsection: 

19 ‘‘(e) TERMINATION.—No credit shall be allowed 

20 under subsection (a) for any period after December 31, 

21 2014.’’. 

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

23 this section shall apply to property placed in service after 

24 December 31, 2014. 


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1 SEC. 110. REPEAL OF QUALIFYING ADVANCED COAL 

2 PROJECT. 

3 (a) IN GENERAL.—Section 48A is repealed. 

4 (b) CONFORMING AMENDMENT.—Section 46 is 

5 amended by striking paragraph (3) and by redesignating 

6 paragraphs (4), (5), and (6) as paragraphs (3), (4), and 

7 (5), respectively. 

8 (c) CLERICAL AMENDMENT.—The table of sections 

9 for subpart E of part IV of subchapter A of chapter 1 

10 is amended by striking the item relating to section 48A. 

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

12 this section shall apply to property placed in service after 

13 December 31, 2014. 

14 SEC. 111. REPEAL OF QUALIFYING GASIFICATION PROJECT 

15 CREDIT. 

16 (a) IN GENERAL.—Section 48B is repealed. 

17 (b) CONFORMING AMENDMENT.—Section 46, as 

18 amended by this Act, is amended by striking paragraph 

19 (3) and by redesignating paragraphs (4) and (5) as para20 graphs (3) and (4), respectively. 

21 (c) CLERICAL AMENDMENT.—The table of sections 

22 for subpart E of part IV of subchapter A of chapter 1 

23 is amended by striking the item relating to section 48B. 

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

25 this section shall apply to property placed in service after 

26 December 31, 2014. 


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1 SEC. 112. REPEAL OF QUALIFYING ADVANCED ENERGY 

2 PROJECT CREDIT. 

3 (a) IN GENERAL.—Section 48C is repealed. 

4 (b) CONFORMING AMENDMENT.—Section 46, as 

5 amended by this Act, is amended by striking paragraph 

6 (3) and by redesignating paragraph (4) as paragraph (3). 

7 (c) CLERICAL AMENDMENT.—The table of sections 

8 for subpart E of part IV of subchapter A of chapter 1 

9 is amended by striking the item relating to section 48C. 

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

11 this section shall apply to property placed in service after 

12 December 31, 2014. 

13 TITLE II—REDUCTION OF 

14 CORPORATE INCOME TAX RATE 

15 SEC. 121. CORPORATE INCOME TAX RATE REDUCED. 

16 (a) IN GENERAL.—Not later than 1 year after the 

17 date of the enactment of this Act, the Secretary of the 

18 Treasury shall prescribe, in lieu of the rates of tax under 

19 paragraphs (1) and (2) of section 11(b), section 1201(a), 

20 and paragraphs (1), (2), and (6) of section 1445(e) of the 

21 Internal Revenue Code of 1986, such rates of tax as the 

22 Secretary estimates would result in— 

23 (1) a decrease in revenue to the Treasury for 

24 taxable years beginning during the 10-year period 

25 beginning on the date of the enactment of this Act, 

26 equal to 


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1 (2) the increase in revenue for such taxable 

2 years by reason of the amendments made by title I 

3 of this Act. 

4 (b) MAINTENANCE OF GRADUATED RATES.—In pre5 scribing the tax rates under subsection (a), the Secretary 

6 shall ensure that each rate modified under such subsection 

7 is reduced by a uniform percentage. 

8 (c) EFFECTIVE DATE.—The rates prescribed by the 

9 Secretary under subsection (a) shall apply to taxable years 

10 beginning more than 1 year after the date of the enact11 ment of this Act. 

Æ 


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