I 

112TH CONGRESS 

1ST SESSION H. R. 3308 

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

tax subsidies and lower the corporate income tax rate. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 2, 2011 

Mr. POMPEO (for himself, Mr. LABRADOR, Mr. RIBBLE, and Mr. FLAKE) introduced the following bill; which was referred to the Committee on Ways 

and Means, and in addition to the Committee on Energy and Commerce, 

for a period to be subsequently determined by the Speaker, in each case 

for consideration of such provisions as fall within the jurisdiction of the 

committee concerned 

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; TABLE OF CONTENTS; ETC. 

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

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

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 


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

2 shall be considered to be made to a section or other provi3 sion of the Internal Revenue Code of 1986. 

4 (c) TABLE OF CONTENTS.—The table of contents for 

5 this Act is as follows: 

Sec. 1. Short title; table of contents; etc. 

TITLE I—REPEAL OF ENERGY TAX SUBSIDIES 

Sec. 101. Repeal of credit for alcohol fuel, biodiesel, and alternative fuel mixtures. 

Sec. 102. Repeal of credit for certain plug-in electric vehicles. 

Sec. 103. Early termination of credit for qualified fuel cell motor vehicles. 

Sec. 104. Repeal of alternative fuel vehicle refueling property credit. 

Sec. 105. Repeal of credit for alcohol used as fuel. 

Sec. 106. Repeal of credit for biodiesel and renewable diesel used as fuel. 

Sec. 107. Repeal of enhanced oil recovery credit. 

Sec. 108. Termination of credit for electricity produced from certain renewable 

resources. 

Sec. 109. Repeal of credit for producing oil and gas from marginal wells. 

Sec. 110. Termination of credit for production from advanced nuclear power facilities. 

Sec. 111. Repeal of credit for carbon dioxide sequestration. 

Sec. 112. Termination of energy credit. 

Sec. 113. Repeal of qualifying advanced coal project. 

Sec. 114. Repeal of qualifying gasification project credit. 

Sec. 115. Repeal of American Recovery and Reinvestment Act of 2009 energy 

grant program. 

TITLE II—REDUCTION OF CORPORATE INCOME TAX RATE 

Sec. 201. Corporate income tax rate reduced. 

6 TITLE I—REPEAL OF ENERGY 

7 TAX SUBSIDIES 

8 SEC. 101. REPEAL OF CREDIT FOR ALCOHOL FUEL, BIO9 DIESEL, AND ALTERNATIVE FUEL MIXTURES. 

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

11 (b) CONFORMING AMENDMENTS.— 


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1 (1) Subparagraph (D) of section 6427(e)(6) of 

2 such Code is amended by striking ‘‘September 30, 

3 2014’’ and inserting ‘‘September 30, 2012’’. 

4 (2) Paragraph (1) of section 4101(a) is amend5 ed by striking ‘‘or alcohol (as defined in section 

6 6426(b)(4)(A)’’. 

7 (3) Paragraph (2) of section 4104(a) is amend8 ed by striking ‘‘6426, or 6427(e)’’. 

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

10 amended— 

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

12 before the date of the enactment of the Energy 

13 Freedom and Economic Prosperity Act)’’ after 

14 ‘‘of section 6426’’, and 

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

16 ‘‘section 6426(b)(4)(A)’’. 

17 (5) Paragraph (1) of section 9503(b) is amend18 ed by striking the second sentence. 

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

20 for subchapter B of chapter 65 is amended by striking 

21 the item relating to section 6426. 

22 (d) EFFECTIVE.—The amendments made by this sec23 tion shall apply with respect to fuel sold and used after 

24 December 31, 2012. 


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1 SEC. 102. REPEAL OF CREDIT FOR CERTAIN PLUG-IN ELEC2 TRIC VEHICLES. 

3 (a) IN GENERAL.—Section 30 is repealed. 

4 (b) CONFORMING AMENDMENTS.— 

5 (1) Paragraph (3) of Section 24(b) is amended 

6 by striking ‘‘, 30’’. 

7 (2) Clause (ii) of section 25(e)(1)(C) is amend8 ed by striking ‘‘, 30’’. 

9 (3) Paragraph (2) of section 25B(g) is amended 

10 by striking ‘‘, 30’’. 

11 (4) Paragraph (1) of section 26(a) is amended 

12 by striking ‘‘, 30’’. 

13 (5) Subclause (VI) of section 48C(c)(1)(A)(i) is 

14 amended by inserting ‘‘(as in effect on the day be15 fore the date of the enactment of the Energy Free16 dom and Economic Prosperity Act)’’ after ‘‘section 

17 30(d)’’. 

18 (6) Paragraph (3) of section 179A(c) is amend19 ed by inserting ‘‘(as in effect on the day before the 

20 date of the enactment of the Energy Freedom and 

21 Economic Prosperity Act)’’ after section ‘‘30(c)’’. 

22 (7) Subsection (a) of section 1016 is amended 

23 by striking paragraph (25) and by redesignating 

24 paragraphs (26) through (37) as paragraphs (25) 

25 through (36), respectively. 


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1 (8) Subsection (m) of section 6501 is amended 

2 by striking ‘‘30(e)(6)’’. 

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

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

5 is amended by striking the item relating to section 30. 

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

7 this section shall apply to property placed in service after 

8 December 31, 2011. 

9 SEC. 103. EARLY TERMINATION OF CREDIT FOR QUALIFIED 

10 FUEL CELL MOTOR VEHICLES. 

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

12 (b) CONFORMING AMENDMENTS.— 

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

14 amended by striking ‘‘, 30B’’. 

15 (2) Clause (ii) of section 25(e)(1)(C) is amend16 ed by striking ‘‘, 30B’’. 

17 (3) Paragraph (2) of section 25B(g) is amended 

18 by striking ‘‘, 30B,’’. 

19 (4) Paragraph (1) of section 26(a) is amended 

20 by striking ‘‘, 30B’’. 

21 (5) Subsection (b) of section 38 is amended by 

22 striking paragraph (25). 

23 (6) Subsection (a) of section 1016, as amended 

24 by section 102 of this Act, is amended by striking 

25 paragraph (33) and by redesignating paragraphs 


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1 (34), (35), and (36) as paragraphs (33), (34), and 

2 (35), respectively. 

3 (7) Paragraph (2) of section 1400C(d) is 

4 amended by striking ‘‘, 30B’’. 

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

6 by striking ‘‘, 30B(h)(9)’’. 

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

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

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

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

11 this section shall apply to property placed in service after 

12 December 31, 2012. 

13 SEC. 104. REPEAL OF ALTERNATIVE FUEL VEHICLE RE14 FUELING PROPERTY CREDIT. 

15 (a) IN GENERAL.—Section 30C is repealed. 

16 (b) CONFORMING AMENDMENTS.— 

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

18 striking paragraph (26). 

19 (2) Paragraph (3) of section 55(c) is amended 

20 by striking ‘‘, 30C(d)(2),’’. 

21 (3) Subsection (a) of section 1016, as amended 

22 by sections 102 and 103 of this Act, is amended by 

23 striking paragraph (33) and by redesignating para24 graph (34) and (35) as paragraphs (33) and (34), 

25 respectively. 


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1 (4) Subsection (m) of section 6501 is amended 

2 by striking ‘‘, 30C(e)(5)’’. 

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

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

5 is amended by striking the item relating to section 30C. 

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

7 this section shall apply to property placed in service after 

8 December 31, 2012. 

9 SEC. 105. REPEAL OF CREDIT FOR ALCOHOL USED AS 

10 FUEL. 

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

12 (b) CONFORMING AMENDMENTS.— 

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

14 striking paragraph (3). 

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

16 striking paragraph (3) and by redesignating para17 graphs (4) through (14) as paragraphs (3) through 

18 (13), respectively. 

19 (3) Paragraph (1) of section 4101(a) is amend20 ed by striking ‘‘, and every person producing cellu21 losic biofuel (as defined in section 40(b)(6)(E))’’. 

22 (4) Paragraph (1) of section 4104(a) is amend23 ed by striking ‘‘, 40’’. 


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

2 this section shall apply to fuel sold or used after December 

3 31, 2012. 

4 SEC. 106. REPEAL OF CREDIT FOR BIODIESEL AND RENEW5 ABLE DIESEL USED AS FUEL. 

6 (a) IN GENERAL.—Section 40A is repealed. 

7 (b) CONFORMING AMENDMENT.— 

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

9 striking paragraph (17). 

10 (2) Section 87 is repealed. 

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

12 by section 106 of this Act, is amended by striking 

13 paragraph (11) and by redesignating paragraphs 

14 (11), (12), and (13) as paragraphs (10), (11), and 

15 (12), respectively. 

16 (4) Paragraph (1) of section 4101(a) is amend17 ed by striking ‘‘, every person producing or import18 ing biodiesel (as defined in section 40A(d)(1)’’. 

19 (5) Paragraph (1) of section 4104(a) is amend20 ed by striking ‘‘, and 40A’’. 

21 (6) Subparagraph (E) of section 7704(d)(1) is 

22 amended by inserting ‘‘(as so in effect)’’ after ‘‘sec23 tion 40A(d)(1)’’. 


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

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

3 is amended by striking the item relating to section 40A. 

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

5 this section shall apply to fuel produced, and sold or used, 

6 after December 31, 2011. 

7 SEC. 107. REPEAL OF ENHANCED OIL RECOVERY CREDIT. 

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

9 (b) CONFORMING AMENDMENTS.— 

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

11 striking paragraph (6). 

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

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

14 of the enactment of the Energy Freedom and Eco15 nomic Prosperity Act)’’ after ‘‘section 43(c)(2)’’. 

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

17 by sections 106 and 107 of this Act, is amended by 

18 striking paragraph (5) and by redesignating para19 graphs (6) through (12) as paragraphs (5) through 

20 (11), respectively. 

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

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

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


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

2 this section shall apply to costs paid or incurred in taxable 

3 years beginning after December 31, 2012. 

4 SEC. 108. TERMINATION OF CREDIT FOR ELECTRICITY 

5 PRODUCED FROM CERTAIN RENEWABLE RE6 SOURCES. 

7 (a) IN GENERAL.—Subsection (d) of section 45 is 

8 amended— 

9 (1) by striking ‘‘2013’’ in paragraph (1) and in10 serting ‘‘2012’’, and 

11 (2) by striking ‘‘2014’’ each place it appears in 

12 paragraphs (2), (3), (4), (6), (7), (9), and (11) and 

13 inserting ‘‘2012’’. 

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

15 this section shall apply to property placed in service after 

16 December 31, 2012. 

17 SEC. 109. REPEAL OF CREDIT FOR PRODUCING OIL AND 

18 GAS FROM MARGINAL WELLS. 

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

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

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

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

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

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


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

2 this section shall apply to production in taxable years be3 ginning after December 31, 2012. 

4 SEC. 110. TERMINATION OF CREDIT FOR PRODUCTION 

5 FROM ADVANCED NUCLEAR POWER FACILI6 TIES. 

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

8 45J(d)(1) is amended by striking ‘‘January 1, 2021’’ and 

9 inserting ‘‘January 1, 2013’’. 

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

11 this section shall apply to property placed in service after 

12 December 31, 2012. 

13 SEC. 111. REPEAL OF CREDIT FOR CARBON DIOXIDE SE14 QUESTRATION. 

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

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

17 this section shall apply to carbon dioxide captured after 

18 December 31, 2012. 

19 SEC. 112. TERMINATION OF ENERGY CREDIT. 

20 (a) IN GENERAL.—Section 48 is amended— 

21 (1) by striking ‘‘January 1, 2017’’ each place 

22 it appears and inserting ‘‘January 1, 2013’’, 

23 (2) by striking ‘‘December 31, 2016’’ each 

24 place it appears and inserting ‘‘December 31, 

25 2012’’, and 


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1 (3) by striking ‘‘2012, or 2013’’ in subsection 

2 (a)(5)(C)(ii) and inserting ‘‘or 2012’’. 

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

4 this section shall apply to property placed in service after 

5 December 31, 2012. 

6 SEC. 113. REPEAL OF QUALIFYING ADVANCED COAL 

7 PROJECT. 

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

9 (b) CONFORMING AMENDMENT.—Section 46 is 

10 amended by striking paragraph (3) and by redesignating 

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

12 (5), respectively. 

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

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

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

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

17 this section shall apply to property placed in service after 

18 December 31, 2012. 

19 SEC. 114. REPEAL OF QUALIFYING GASIFICATION PROJECT 

20 CREDIT. 

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

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

23 amended by this Act, is amended by striking paragraph 

24 (3) and by redesignating paragraphs (4) and (5) as para25 graphs (3) and (4), respectively. 


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

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

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

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

5 this section shall apply to property placed in service after 

6 December 31, 2012. 

7 SEC. 115. REPEAL OF AMERICAN RECOVERY AND REIN8 VESTMENT ACT OF 2009 ENERGY GRANT PRO9 GRAM. 

10 (a) IN GENERAL.—Section 1603 of division B of the 

11 American Recovery and Reinvestment Act of 2009 is re12 pealed. 

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

14 this section shall apply to property placed in service after 

15 December 31, 2011. 

16 TITLE II—REDUCTION OF 

17 CORPORATE INCOME TAX RATE 

18 SEC. 201. CORPORATE INCOME TAX RATE REDUCED. 

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

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

21 Treasury shall prescribe a rate of tax in lieu of the rates 

22 under paragraphs (1) and (2) of section 11(b), section 

23 1201(a), and paragraphs (1), (2), and (6) of section 

24 1445(e) to such a flat rate as the Secretary estimates 

25 would result in— 


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

2 taxable years beginning during the 10-year period 

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

4 equal to 

5 (2) the increase in revenue for such taxable 

6 years by reason of the amendments made by title I 

7 of this Act. 

8 (b) EFFECTIVE DATE.—The rate 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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