Energy Freedom and Economic Prosperity Act of 2014

To amend the Internal Revenue Code of 1986 to terminate certain energy tax subsidies and lower the corporate income tax rate. 1. Short title; reference to 1986 Code (a) Short title This Act may be cited as the Energy Freedom and Economic Prosperity Act of 2014 (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. 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 Repeal of credit for alcohol fuel, biodiesel, and alternative fuel mixtures (a) In general Section 6426 is repealed.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 2014 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 dates (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 Early termination of credit for qualified fuel cell motor vehicles (a) In general Section 30B is repealed.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 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. 105. 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 of 2014 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. 106. 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. 107. 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. 108. 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. 109. Termination of energy credit (a) In general Section 48 is amended by adding at the end the following new subsection: (e) Termination No credit shall be allowed under subsection (a) for any period after December 31, 2014. . (b) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2014. 110. 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. 111. 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. 112. Repeal of qualifying advanced energy project credit (a) In general Section 48C is repealed. (b) Conforming amendment Section 46, as amended by this Act, is amended by striking paragraph (3) and by redesignating paragraph (4) as paragraph (3). (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 48C. (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 121. 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, in lieu of the rates of tax under paragraphs (1) and (2) of section 11(b), section 1201(a), and paragraphs (1), (2), and (6) of section 1445(e) of the Internal Revenue Code of 1986, such rates of tax 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) Maintenance of graduated rates In prescribing the tax rates under subsection (a), the Secretary shall ensure that each rate modified under such subsection is reduced by a uniform percentage. (c) Effective date The rates 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 of 2014 - Amends the Internal Revenue Code to repeal tax credits for: (1) alcohol fuel, biodiesel, and alternative fuel mixtures; (2) alternative motor vehicles; (3) new qualified plug-in electric drive motor vehicles; (4) alcohol used as fuel; (5) enhanced oil recovery; (6) producing oil and gas from marginal wells; (7) producing electricity from advanced nuclear power facilities; (8) carbon dioxide sequestration; (9) investment in energy property; and (10) investment in qualifying advanced coal projects, qualifying gasification projects, and qualifying advanced energy projects. Directs the Secretary of the Treasury to revise the income tax rates for corporations based upon the overall revenue savings from the repeal of the energy tax expenditures by this Act and ensure that each revised rate is reduced by a uniform percentage.