Bridge to a Clean Energy Future Act of 2014

To amend the Internal Revenue Code of 1986 to extend certain expiring provisions relating to energy, and for other purposes. 1. Short title, etc (a) Short title This Act may be cited as the Bridge to a Clean Energy Future Act of 2014 (b) Amendment of 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, etc. Sec. 2. Extension and modification of credit for nonbusiness energy property. Sec. 3. Extension of credit for alternative fuel vehicle refueling property. Sec. 4. Extension of credit for 2-wheeled plug-in electric vehicles. Sec. 5. Extension of second generation biofuel producer credit. Sec. 6. Extension of incentives for biodiesel and renewable diesel. Sec. 7. Extension and modification of production credit for Indian coal facilities placed in service before 2009. Sec. 8. Extension of credits with respect to facilities producing energy from certain renewable resources. Sec. 9. Extension of credit for energy-efficient new homes. Sec. 10. Extension of special allowance for second generation biofuel plant property. Sec. 11. Extension and modification of energy efficient commercial buildings deduction. Sec. 12. Extension of excise tax credits relating to certain fuels. Sec. 13. Extension of credit for new qualified fuel cell motor vehicles. Sec. 14. Extension of special rule for sales or dispositions to implement FERC or State electric restructuring policy for qualified electric utilities. Sec. 15. Extension of the advanced energy project credit. Sec. 16. Extension of energy credit for certain property under construction. 2. Extension and modification of credit for nonbusiness energy property (a) In general Paragraph (2) of section 25C(g) is amended by striking December 31, 2013 December 31, 2015 (b) Updated Energy Star requirements for windows, doors, skylights, and roofing (1) In general Paragraph (1) of section 25C(c) is amended by striking which meets requirements) (2) Energy efficient building envelope component Subsection (c) of section 25C is amended by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively, and by inserting after paragraph (1) the following new paragraph: (2) Energy efficient building envelope component The term energy efficient building envelope component (A) applicable Energy Star program requirements, in the case of a roof or roof products, (B) version 6.0 Energy Star program requirements, in the case of an exterior window, a skylight, or an exterior door, and (C) the prescriptive criteria for such component established by the 2009 International Energy Conservation Code, as such Code (including supplements) is in effect on the date of the enactment of the American Recovery and Reinvestment Tax Act of 2009, in the case of any other component. . (3) Conforming amendment Subparagraph (D) of section 25C(c)(3), as so redesignated, is amended to read as follows: (D) any roof or roof products which are installed on a dwelling unit and are specifically and primarily designed to reduce the heat gain of such dwelling unit. . (c) Separate standards for tankless and storage water heaters (1) In general Subparagraph (D) of section 25C(d)(3) is amended by striking which has either (i) in the case of a storage water heater, an energy factor of at least 0.80 or a thermal efficiency of at least 90 percent, and (ii) in the case of any other water heater, an energy factor of at least 0.90 or a thermal efficiency of at least 90 percent, and . (2) Storage water heaters Paragraph (3) of section 25C(d) is amended by adding at the end the following flush sentence: For purposes of subparagraph (D)(i), the term storage water heater . (d) Modification of testing standards for biomass stoves Subparagraph (E) of section 25C(d)(3) is amended by inserting before the period the following: , when tested using the higher heating value of the fuel and in accordance with the Canadian Standards Administration B415.1 test protocol (e) Separate standard for oil hot water boilers Paragraph (4) of section 25C(d) is amended by striking 95 95 (90 in the case of an oil hot water boiler) (f) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2013. 3. Extension of credit for alternative fuel vehicle refueling property (a) In general Subsection (g) of section 30C is amended by striking placed in service placed in service after December 31, 2015. (b) Effective date The amendment made by this section shall apply to property placed in service after December 31, 2013. 4. Extension of credit for 2-wheeled plug-in electric vehicles (a) In general Subparagraph (E) of section 30D(g)(3) is amended by striking January 1, 2014 January 1, 2014 (January 1, 2016, in the case of a vehicle that has 2 wheels). (b) Effective date The amendment made by this section shall apply to vehicles acquired after December 31, 2013. 5. Extension of second generation biofuel producer credit (a) In general Clause (i) of section 40(b)(6)(J) is amended by striking January 1, 2014 January 1, 2016 (b) Effective date The amendment made by this subsection shall apply to qualified second generation biofuel production after December 31, 2013. 6. Extension of incentives for biodiesel and renewable diesel (a) Credits for biodiesel and renewable diesel used as fuel Subsection (g) of section 40A is amended by striking December 31, 2013 December 31, 2015 (b) Effective date The amendment made by this section shall apply to fuel sold or used after December 31, 2013. 7. Extension and modification of production credit for Indian coal facilities placed in service before 2009 (a) In general Subparagraph (A) of section 45(e)(10) is amended by striking 8-year period 10-year period (b) Application to new leases or subleases Paragraph (10) of section 45(d) is amended by inserting before the period the following: , and any new lease or sublease of such a facility (c) Effective date The amendments made by this section shall apply to coal produced after December 31, 2013. 8. Extension of credits with respect to facilities producing energy from certain renewable resources (a) In general The following provisions of section 45(d) are each amended by striking January 1, 2014 January 1, 2017 (1) Paragraph (1). (2) Paragraph (2)(A). (3) Paragraph (3)(A). (4) Paragraph (4)(B). (5) Paragraph (6). (6) Paragraph (7). (7) Paragraph (9). (8) Paragraph (11)(B). (b) Extension of election To treat qualified facilities as energy property Clause (ii) of section 48(a)(5)(C) is amended by striking January 1, 2014 January 1, 2017 (c) Effective dates The amendments made by this section shall take effect on January 1, 2014. 9. Extension of credit for energy-efficient new homes (a) In general Subsection (g) of section 45L is amended by striking December 31, 2013 December 31, 2015 (b) Effective date The amendment made by this section shall apply to homes acquired after December 31, 2013. 10. Extension of special allowance for second generation biofuel plant property (a) In general Subparagraph (D) of section 168(l)(2) is amended by striking January 1, 2014 January 1, 2016 (b) Effective date The amendment made by this section shall apply to property placed in service after December 31, 2013. 11. Extension and modification of energy efficient commercial buildings deduction (a) In general Subsection (h) of section 179D is amended by striking December 31, 2013 December 31, 2015 (b) Allocations to Indian tribal governments Paragraph (4) of section 179D(d) is amended by striking or local local, or Indian tribal (c) Allocations to certain nonprofit organizations (1) In general Paragraph (4) of section 179D(d), as amended by subsection (b), is amended by inserting , or by an organization that is described in section 501(c)(3) and exempt from tax under section 501(a) political subdivision thereof (2) Clerical amendment The heading of paragraph (4) of section 179D(d) is amended by inserting and property held by certain non-profits public property (d) Updated ASHRAE standards for 2015 (1) In general Paragraph (1) of section 179D(c) is amended by striking Standard 90.1–2001 Standard 90.1–2007 (2) Conforming amendments (A) Paragraph (2) of section 179D(c) is amended to read as follows: (2) Standard 90.1–2007 The term Standard 90.1–2007 . (B) Subsection (f) of section 179D is amended by striking Standard 90.1–2001 Standard 90.1–2007 (C) Paragraph (1) of section 179D(f) is amended— (i) by striking Table 9.3.1.1 Table 9.5.1 (ii) by striking Table 9.3.1.2 Table 9.6.1 (3) Effective date The amendments made by this paragraph shall apply to property placed in service after December 31, 2014. (e) Effective date Except as provided in subsection (d)(3), the amendments made by this section shall apply to property placed in service after December 31, 2013. 12. Extension of excise tax credits relating to certain fuels (a) Excise tax credits and outlay payments for biodiesel and renewable diesel fuel mixtures (1) Paragraph (6) of section 6426(c) is amended by striking December 31, 2013 December 31, 2015 (2) Subparagraph (B) of section 6427(e)(6) is amended by striking December 31, 2013 December 31, 2015 (b) Extension of alternative fuels excise tax credits (1) In general Sections 6426(d)(5) and 6426(e)(3) are each amended by striking December 31, 2013 December 31, 2015 (2) Outlay payments for alternative fuels Subparagraph (C) of section 6427(e)(6) is amended by striking December 31, 2013 December 31, 2015 (c) Extension of alternative fuels excise tax credits relating to liquefied hydrogen (1) In general Sections 6426(d)(5) and 6426(e)(3), as amended by subsection (b), are each amended by striking (September 30, 2014 in the case of any sale or use involving liquefied hydrogen) (2) Outlay payments for alternative fuels Paragraph (6) of section 6427(e) is amended— (A) by striking except as provided in subparagraph (D), any any (B) by striking the comma at the end of subparagraph (C) and inserting , and (C) by striking subparagraph (D) and redesignating subparagraph (E) as subparagraph (D). (d) Effective dates (1) In general Except as provided in paragraph (2), the amendments made by this section shall apply to fuel sold or used after December 31, 2013. (2) Liquefied hydrogen The amendments made by subsection (c) shall apply to fuels sold or used after September 30, 2014. (e) Special rule for certain periods during 2014 Notwithstanding any other provision of law, in the case of— (1) any biodiesel mixture credit properly determined under section 6426(c) of the Internal Revenue Code of 1986 for periods after December 31, 2013, and before the date of the enactment of this Act, and (2) any alternative fuel credit properly determined under section 6426(d) of such Code for such periods, such credit shall be allowed, and any refund or payment attributable to such credit (including any payment under section 6427(e) of such Code) shall be made, only in such manner as the Secretary of the Treasury (or the Secretary’s delegate) shall provide. Such Secretary shall issue guidance within 30 days after the date of the enactment of this Act providing for a one-time submission of claims covering periods described in the preceding sentence. Such guidance shall provide for a 180-day period for the submission of such claims (in such manner as prescribed by such Secretary) to begin not later than 30 days after such guidance is issued. Such claims shall be paid by such Secretary not later than 60 days after receipt. If such Secretary has not paid pursuant to a claim filed under this subsection within 60 days after the date of the filing of such claim, the claim shall be paid with interest from such date determined by using the overpayment rate and method under section 6621 of such Code. 13. Extension of credit for new qualified fuel cell motor vehicles (a) In general Paragraph (1) of section 30B(k) is amended by striking December 31, 2014 December 31, 2015 (b) Effective date The amendment made by this section shall apply to property purchased after December 31, 2014. 14. Extension of special rule for sales or dispositions to implement FERC or State electric restructuring policy for qualified electric utilities (a) In general Paragraph (3) of section 451(i) is amended by striking January 1, 2014 January 1, 2016 (b) Effective date The amendment made by this section shall apply to dispositions after December 31, 2013. 15. Extension of the advanced energy project credit (a) In general Subsection (d) of section 48C is amended by adding at the end the following new paragraph: (6) Additional 2013 allocations (A) In general Not later than 180 days after the date of the enactment of this paragraph, the Secretary, in consultation with the Secretary of Energy, shall establish a program to consider and award certifications for qualified investments eligible for credits under this section to qualifying advanced energy project sponsors with respect to applications received on or after the date of the enactment of this paragraph. (B) Limitation The total amount of credits that may be allocated under the program described in subparagraph (A) shall not exceed the 2013 allocation amount reduced by so much of the 2013 allocation amount as is taken into account as an increase in the limitation described in paragraph (1)(B). (C) Application of certain rules Rules similar to the rules of paragraphs (2), (3), (4), and (5) shall apply for purposes of the program described in subparagraph (A), except that— (i) Certification Applicants shall have 2 years from the date that the Secretary establishes such program to submit applications. (ii) Selection criteria In determining which qualifying advanced energy projects to certify under such program, the Secretary, in consultation with the Secretary of Energy, shall give the highest priority to projects which manufacture (other than assembly of components) property described in a subclause of subsection (c)(1)(A)(i) (or components thereof). (iii) Review and redistribution The Secretary shall conduct a separate review and redistribution under paragraph (5) with respect to such program not later than 4 years after the date of the enactment of this paragraph. (D) 2013 allocation amount For purposes of this subsection, the term 2013 allocation amount (E) Direct payments In lieu of any qualifying advanced energy project credit which would otherwise be determined under this section with respect to an allocation to a taxpayer under this paragraph, the Secretary shall, upon the election of the taxpayer, make a grant to the taxpayer in the amount of such credit as so determined. Rules similar to the rules of section 50 shall apply with respect to any grant made under this subparagraph. . (b) Portion of 2013 allocation allocated toward pending applications under original program Subparagraph (B) of section 48C(d)(1) is amended by inserting (increased by so much of the 2013 allocation amount (not in excess of $1,500,000,000) as the Secretary determines necessary to make allocations to qualified investments with respect to which qualifying applications were submitted before the date of the enactment of paragraph (6)) $2,300,000,000 (c) Conforming amendment Paragraph (2) of section 1324(b) 48C(d)(6)(E), 36B, 16. Extension of energy credit for certain property under construction (a) Solar energy property Paragraphs (2)(A)(i)(II) and (3)(A)(ii) of section 48(a) are each amended by striking periods ending property the construction of which begins (b) Qualified fuel cell property Section 48(c)(1)(D) is amended by striking for any period after December 31, 2016 the construction of which does not begin before January 1, 2017 (c) Qualified microturbine property Section 48(c)(2)(D) is amended by striking for any period after December 31, 2016 the construction of which does not begin before January 1, 2017 (d) Combined heat and power system property Section 48(c)(3)(A)(iv) is amended by striking which is placed in service construction of which begins (e) Qualified small wind energy property Section 48(c)(4)(C) is amended by striking for any period after December 31, 2016 the construction of which does not begin before January 1, 2017 (f) Thermal energy property Section 48(a)(3)(A)(vii) is amended by striking periods ending property the construction of which begins (g) Effective date The amendments made by this section shall take effect on the date of the enactment of this Act.

Summary: Bridge to a Clean Energy Future Act of 2014 - Amends the Internal Revenue Code to extend through 2015 the following energy-related tax provisions: the tax credits for residential energy efficiency improvements, alternative fuel vehicle refueling property expenditures, two-wheeled plug-in electric vehicles, second generation biofuel production, biodiesel and renewable diesel fuel mixtures, producing electricity using Indian coal facilities, the construction of energy-efficient new homes, and new qualified fuel cell motor vehicles; the enhanced depreciation allowance for second generation biofuel plant property; the tax deduction for energy efficient commercial buildings; the excise tax credit for alternative fuels and fuels involving liquefied hydrogen; and tax deferral rules for sales or dispositions of qualified electric utilities. Extends through 2016, the tax credit for producing electricity using wind, biomass, geothermal, landfill gas, trash, hydropower, and marine and hydrokinetic renewable energy facilities. Directs the Secretary of the Treasury to establish a program to consider and award certifications for qualified investments eligible for the advanced energy project tax credit. Limits the amount of credits that may be allocated under such program to not more than $5 billion (the 2013 allocation amount). Authorizes the Secretary to make direct payments to a taxpayer in lieu of a tax credit. Extends the energy tax credit to solar energy, fuel cell, microturbine, combined heath and power system, small wind energy, and thermal energy properties the construction of which begins before January 1, 2017.