Energy Freedom and Economic Prosperity Act

To amend the Internal Revenue Code of 1986 to terminate certain energy tax subsidies and lower the corporate income tax rate. 1. Short title; table of contents; etc (a) Short title This Act may be cited as the Energy Freedom and Economic Prosperity Act (b) Reference to 1986 Code Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. (c) Table of contents The table of contents for 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. Early termination of credit for qualified fuel cell motor vehicles. Sec. 103. Early termination of new qualified plug-in electric drive 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. Title II—Reduction of corporate income tax rate Sec. 201. Corporate income tax rate reduced. I Repeal of energy tax subsidies 101. Repeal of credit for alcohol fuel, biodiesel, and alternative fuel mixtures (a) In general Section 6426 is repealed. (b) Conforming amendments (1) Paragraph (1) of section 4101(a) is amended by striking or alcohol (as defined in section 6426(b)(4)(A) (2) Paragraph (2) of section 4104(a) is amended by striking 6426, or 6427(e) (3) Section 6427 is amended by striking subsection (e). (4) Subparagraph (E) of section 7704(d)(1) is amended— (A) by inserting (as in effect on the day before the date of the enactment of the Energy Freedom and Economic Prosperity Act) of section 6426 (B) by inserting (as so in effect) section 6426(b)(4)(A) (5) Paragraph (1) of section 9503(b) is amended by striking the second sentence. (c) Clerical amendment The table of sections for subchapter B of chapter 65 is amended by striking the item relating to section 6426. (d) Effective (1) In general Except as provided in paragraph (2), the amendments made by this section shall apply with respect to fuel sold and used after the date of the enactment of this Act. (2) Liquefied hydrogen In the case of any alternative fuel or alternative fuel mixture (as defined in subsection (d)(2) or (e)(3) of section 6426 of the Internal Revenue Code of 1986 as in effect before its repeal by this Act) involving liquefied hydrogen, the amendments made by this section shall apply with respect to fuel sold and used after September 30, 2014. 102. Early termination of credit for qualified fuel cell motor vehicles (a) In general Section 30B is repealed. (b) Conforming amendments (1) Subparagraph (A) of section 24(b)(3) is amended by striking , 30B (2) Paragraph (2) of section 25B(g) is amended by striking , 30B, (3) Subsection (b) of section 38 is amended by striking paragraph (25). (4) Subsection (a) of section 1016 is amended by striking paragraph (35) and by redesignating paragraphs (36) and (37) as paragraphs (35) and (36), respectively. (5) Subsection (m) of section 6501 is amended by striking , 30B(h)(9) (c) Clerical amendment The table of sections for subpart B of part IV of subchapter A of chapter 1 is amended by striking the item relating to section 30B. (d) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2014. 103. Early termination of new qualified plug-in electric drive motor vehicles (a) In general Section 30D is repealed. (b) Effective date The amendment made by this section shall apply to vehicles placed in service after the date of the enactment of this Act. 104. Repeal of alternative fuel vehicle refueling property credit (a) In general Section 30C is repealed. (b) Conforming amendments (1) Subsection (b) of section 38 is amended by striking paragraph (26). (2) Paragraph (3) of section 55(c) is amended by striking , 30C(d)(2), (3) Subsection (a) of section 1016, as amended by section 102 of this Act, is amended by striking paragraph (35) and by redesignating paragraph (36) as paragraph (35). (4) Subsection (m) of section 6501 is amended by striking , 30C(e)(5) (c) Clerical amendment The table of sections for subpart B of part IV of subchapter A of chapter 1 is amended by striking the item relating to section 30C. (d) Effective date The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act. 105. Repeal of credit for alcohol used as fuel (a) In general Section 40 is repealed. (b) Conforming amendments (1) Subsection (b) of section 38 is amended by striking paragraph (3). (2) Subsection (c) of section 196 is amended by striking paragraph (3) and by redesignating paragraphs (4) through (14) as paragraphs (3) through (13), respectively. (3) Paragraph (1) of section 4101(a) is amended by striking , and every person producing cellulosic biofuel (as defined in section 40(b)(6)(E)) (4) Paragraph (1) of section 4104(a) is amended by striking , 40 (c) Effective date The amendments made by this section shall apply to fuel sold or used after the date of the enactment of this Act. 106. Repeal of credit for biodiesel and renewable diesel used as fuel (a) In general Section 40A is repealed. (b) Conforming amendment (1) Subsection (b) of section 38 is amended by striking paragraph (17). (2) Section 87 is repealed. (3) Subsection (c) of section 196, as amended by section 105 of this Act, is amended by striking paragraph (11) and by redesignating paragraphs (11), (12), and (13) as paragraphs (10), (11), and (12), respectively. (4) Paragraph (1) of section 4101(a) is amended by striking , every person producing or importing biodiesel (as defined in section 40A(d)(1) (5) Paragraph (1) of section 4104(a) is amended by striking , and 40A (6) Subparagraph (E) of section 7704(d)(1) is amended by inserting (as so in effect) section 40A(d)(1) (c) Clerical amendment The table of sections for subpart D of part IV of subchapter A of chapter 1 is amended by striking the item relating to section 40A. (d) Effective date The amendments made by this section shall apply to fuel produced, and sold or used, after the date of the enactment of this Act. 107. Repeal of enhanced oil recovery credit (a) In general Section 43 is repealed. (b) Conforming amendments (1) Subsection (b) of section 38 is amended by striking paragraph (6). (2) Paragraph (4) of section 45Q(d) is amended by inserting (as in effect on the day before the date of the enactment of the Energy Freedom and Economic Prosperity Act) section 43(c)(2) (3) Subsection (c) of section 196, as amended by sections 105 and 106 of this Act, is amended by striking paragraph (5) and by redesignating paragraphs (6) through (12) as paragraphs (5) through (11), respectively. (c) Clerical amendment The table of sections for subpart D of part IV of subchapter A of chapter 1 is amended by striking the item relating to section 43. (d) Effective date The amendments made by this section shall apply to costs paid or incurred after December 31, 2014. 108. Termination of credit for electricity produced from certain renewable resources (a) Wind Subsection (d) of section 45 is amended by striking January 1, 2014 the date of the enactment of the Energy Freedom and Economic Prosperity Act (b) Indian coal Subparagraph (A) of section 45(e)(10) is amended by striking 8-year period 7-year period (c) Effective date (1) Wind The amendment made by subsection (a) shall apply to property placed in service after the date of the enactment of this Act. (2) Indian coal The amendments made by subsection (b) shall apply to coal produced after December 31, 2012. (3) Other qualified energy resources For termination of other qualified energy resources for property placed in service after December 31, 2013, see section 45 of the Internal Revenue Code of 1986. 109. Repeal of credit for producing oil and gas from marginal wells (a) In general Section 45I is repealed. (b) Conforming amendment Subsection (b) of section 38 is amended by striking paragraph (19). (c) Clerical amendment The table of sections for subpart D of part IV of subchapter A of chapter 1 is amended by striking the item relating to section 45I. (d) Effective date The amendments made by this section shall apply to production in taxable years beginning after December 31, 2014. 110. Termination of credit for production from advanced nuclear power facilities (a) In general Subparagraph (B) of section 45J(d)(1) is amended by striking January 1, 2021 January 1, 2015 (b) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2014. 111. Repeal of credit for carbon dioxide sequestration (a) In general Section 45Q is repealed. (b) Effective date The amendment made by this section shall apply to carbon dioxide captured after December 31, 2014. 112. Termination of energy credit (a) In general Section 48 is amended— (1) by striking January 1, 2017 January 1, 2015 (2) by striking December 31, 2016 December 31, 2014 (b) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2014. 113. Repeal of qualifying advanced coal project (a) In general Section 48A is repealed. (b) Conforming amendment Section 46 is amended by striking paragraph (3) and by redesignating paragraphs (4), (5), and (6) as paragraphs (3), (4), and (5), respectively. (c) Clerical amendment The table of sections for subpart E of part IV of subchapter A of chapter 1 is amended by striking the item relating to section 48A. (d) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2014. 114. Repeal of qualifying gasification project credit (a) In general Section 48B is repealed. (b) Conforming amendment Section 46, as amended by this Act, is amended by striking paragraph (3) and by redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively. (c) Clerical amendment The table of sections for subpart E of part IV of subchapter A of chapter 1 is amended by striking the item relating to section 48B. (d) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2014. II Reduction of corporate income tax rate 201. Corporate income tax rate reduced (a) In general Not later than 1 year after the date of the enactment of this Act, the Secretary of the Treasury shall prescribe a rate of tax in lieu of the rates under paragraphs (1) and (2) of section 11(b), section 1201(a), and paragraphs (1), (2), and (6) of section 1445(e) to such a flat rate as the Secretary estimates would result in— (1) a decrease in revenue to the Treasury for taxable years beginning during the 10-year period beginning on the date of the enactment of this Act, equal to (2) the increase in revenue for such taxable years by reason of the amendments made by title I of this Act. (b) Effective date The rate prescribed by the Secretary under subsection (a) shall apply to taxable years beginning more than 1 year after the date of the enactment of this Act.

Summary: Energy Freedom and Economic Prosperity Act - Amends the Internal Revenue Code to repeal: (1) the excise tax credits for alcohol fuel, biodiesel, and alternative fuel mixtures; (2) the tax credits for the purchase of alternative motor vehicles and new qualified plug-in electric drive motor vehicles; (3) the alternative fuel vehicle refueling property tax credit; (4) the income tax credits for alcohol, biodiesel, and renewable diesel used as fuel; (5) the enhanced oil recovery tax credit and the tax credit for producing oil and gas from marginal wells; (6) the tax credits for producing electricity from renewable resources and from advanced nuclear power facilities; (7) the tax credit for carbon dioxide sequestration; (8) the energy tax credit; and (9) the tax credits for investment in qualifying advanced coal projects and qualifying gasification projects. Directs the Secretary of the Treasury to prescribe a flat income tax rate for corporations, in lieu of the existing marginal tax rates, based upon the overall revenue savings from the repeal of energy tax expenditures by this Act.