PTC Elimination Act

To amend the Internal Revenue Code of 1986 to phaseout and repeal the credit for electricity produced from certain renewable resources, to reduce the corporate income tax, and for other purposes. 1. Short title This Act may be cited as the PTC Elimination Act 2. Phaseout and repeal of credit for electricity produced from certain renewable resources (a) Reduction of credit and phaseout amounts (1) In general Section 45(b) (2) Conforming amendments Section 45(e)(2) of such Code is amended— (A) by striking the inflation adjustment factor and (B) by striking subparagraph (B) and redesignating subparagraph (C) as subparagraph (B). (3) Effective date The amendments made by this subsection shall apply to electricity, and refined coal, produced and sold after December 31, 2015. (b) Special rule for determining beginning of construction (1) In general Section 45(e) of such Code is amended by adding at the end the following new paragraph: (12) Special rule for determining beginning of construction For purposes of subsection (d) and section 48(a)(5), the construction of any facility, modification, improvement, addition, or other property shall not be treated as beginning before any date unless there is a continuous program of construction which begins, and makes significant progress, before such date and ends on the date that such property is placed in service. . (2) Effective date The amendment made by this subsection shall apply to taxable years beginning before, on, or after the date of the enactment of this Act. (c) Repeal of credit (1) In general Subpart D of part IV of subchapter A of chapter 1 of such Code is amended by striking section 45 (and by striking the item relating to such section in the table of sections for such subpart). (2) Conforming amendments (A) Section 38(b) of such Code is amended by striking paragraph (8). (B) Section 45J of such Code is amended by adding at the end the following new subsection: (f) References to section 45 Any reference in this section to any provision of section 45 shall be treated as a reference to such provision as in effect immediately before its repeal. . (C) Section 45K(g)(2) of such Code is amended by striking subparagraph (E). (D) Section 48 of such Code is amended by adding at the end the following new subsection: (e) References to section 45 Any reference in this section to any provision of section 45 shall be treated as a reference to such provision as in effect immediately before its repeal. . (E) Section 54(d)(2)(A) of such Code is amended by inserting (as in effect immediately before its repeal) section 45(d) (F) Section 54C(d)(1) of such Code is amended by inserting (as in effect immediately before its repeal) section 45(d) (G) Section 54D(f)(1)(A)(iv) of such Code is amended by inserting (as in effect immediately before its repeal) section 45(d) (H) Section 55(c)(1) of such Code is amended by striking 45(e)(11)(C), (3) Effective date The amendments made by this subsection shall apply to electricity, and refined coal, produced and sold after December 31, 2025. (d) Sense of Congress regarding further extension It is the sense of the Congress that the credit under section 45 3. Reduction of corporate income tax (a) In general Section 11 (e) Reduction (1) In general In the case of any taxable year beginning more than 1 year after the date of the enactment of this subsection, the amount of tax otherwise imposed under this section with respect to any taxpayer for such taxable year shall be reduced by the applicable percentage of such amount. (2) Applicable percentage For purposes of this subsection— (A) In general The term applicable percentage (i) a decrease in revenues to the Treasury for the fiscal year which includes the date of the enactment of this subsection and the 10 subsequent fiscal years, which is equal to (ii) the increase in such revenues for such taxable years by reason of the amendments made by section 2 of the PTC Elimination Act (B) Single percentage The percentage under subparagraph (A) shall be determined by the Secretary not later than the date which is 1 year after the date of the enactment of this subsection and shall apply for all taxable years to which paragraph (1) applies. . (b) Effective date The amendment made by this section shall apply to taxable years beginning more than 1 year after the date of the enactment of this Act.

Summary: PTC Elimination Act This bill amends the Internal Revenue Code to phase out and eventually eliminate the tax credit for production of electricity from renewable resources. The bill repeals the inflation adjustment for current recipients of the tax credit and modifies the "beginning of construction" requirement to require that construction of an eligible project is continuous and makes significant progress. The credit is repealed in its entirety after December 31, 2025. The bill expresses the sense of Congress that the credit should be allowed to expire and should not be extended beyond its expiration date. The bill also reduces the corporate income tax by an applicable percentage based on increases in revenues resulting from this bill.