I 

108TH CONGRESS 

2D SESSION H. R. 4704

To amend the Internal Revenue Code of 1986 to establish tax credits for 

climate neutral combustion technologies. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 24, 2004

Mr. OSE (for himself, Mr. DOOLITTLE, Mr. CARSON of Oklahoma, and Mr. 

DOOLEY of California) 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 establish 

tax credits for climate neutral combustion technologies.

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

3 SECTION 1. EXPANSION OF RENEWABLE RESOURCE CRED4 IT TO INCLUDE CLIMATE NEUTRAL COMBUS5 TION PROCESSES. 

6 (a) IN GENERAL.—Section 45(c)(1) of the Internal 

7 Revenue Code of 1986 (relating to qualified energy re8 sources) is amended by striking ‘‘and’’ at the end of sub9 paragraph (B), by striking the period at the end of sub-
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1 paragraph (C) and inserting ‘‘, and’’, and by adding at 

2 the end the following: 

3 ‘‘(D) resources used to produce climate 

4 neutral combustion.’’. 

5 (b) CLIMATE NEUTRAL COMBUSTION DEFINED.—

6 Section 45(c) of such Code (relating to definitions) is 

7 amended by adding at the end the following: 

8 ‘‘(5) CLIMATE NEUTRAL COMBUSTION.—

9 ‘‘(A) IN GENERAL.—The term ‘climate 

10 neutral combustion’ means a combustion system 

11 to generate electricity, wherein the combustion 

12 is fueled by biomass or fossil energy carriers, 

13 where the carbon dioxide, which is released dur14 ing the combustion process, is captured and ap15 plied to a useful purpose, or stored in the 

16 Earth’s subsurface by sequestration, and from 

17 which there are no atmospheric emissions of 

18 mercury or greenhouse gases, nor emissions 

19 that form fine particles, smog, or acid rain. 

20 ‘‘(B) BIOMASS.—For purposes of subpara21 graph (A), the term ‘biomass’ means—

22 ‘‘(i) any portion of a crop containing 

23 cellulose, including rice or other grain hulls 

24 or straws, seeds or pits of fruits, nut hulls, 
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1 orchard residue, tree trimmings, soybean 

2 matter, sugarcane or grape bagasse, and 

3 ‘‘(ii) agricultural wastes (other than 

4 wastes described in clause (i)), including 

5 chicken, cattle, pig, or other livestock 

6 waste. 

7 ‘‘(C) FOSSIL ENERGY CARRIERS.—For 

8 purposes of subparagraph (A), the term ‘fossil 

9 energy carrier’ means—

10 ‘‘(i) a fossil fuel, such as coal, lignite, 

11 petroleum, natural gas, including petcoke, 

12 and 

13 ‘‘(ii) refined or gasified forms of such 

14 fossil fuels.’’. 

15 (c) QUALIFIED FACILITY.—Section 45(c)(3) of such 

16 Code (defining qualified facility) is amended by adding at 

17 the end the following: 

18 ‘‘(D) CLIMATE NEUTRAL COMBUSTION FA19 CILITY.—In the case of a facility using a cli20 mate neutral combustion process to produce 

21 electricity, the term ‘qualified facility’ means 

22 any facility owned by the taxpayer which is 

23 originally placed in service after December 31, 

24 2004.’’. 
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1 (d) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years beginning after 

3 December 31, 2004.

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