H. R. 6—404
‘‘SUBPART H. NONREFUNDABLE CREDIT TO HOLDERS OF CERTAIN 
BONDS.’’. 
(2) Section 1397E(c)(2) is amended by inserting ‘‘, and 
subpart H thereof’’ after ‘‘refundable credits’’. 
(3) Subsection (h) of section 1397E is amended to read 
as follows: 
‘‘(h) CREDIT
TREATED
AS
NONREFUNDABLE
BONDHOLDER 
CREDIT.—For purposes of this title, the credit allowed by this section 
shall be treated as a credit allowable under subpart H of part 
IV of subchapter A of this chapter.’’. 
(4) Section 6401(b)(1) is amended by striking ‘‘and G’’ and 
inserting ‘‘G, and H’’. 
(d) ISSUANCE OF REGULATIONS.—The Secretary of the Treasury 
shall issue regulations required under section 54 of the Internal 
Revenue Code of 1986 (as added by this section) not later than 
120 days after the date of the enactment of this Act. 
(e) EFFECTIVE DATE.—The amendments made by this section 
shall apply to bonds issued after December 31, 2005. 
SEC. 1304. TREATMENT OF INCOME OF CERTAIN ELECTRIC COOPERA-
TIVES. 
(a) ELIMINATION OF SUNSET ON TREATMENT OF INCOME FROM 
OPEN ACCESS AND NUCLEAR DECOMMISSIONING TRANSACTIONS.—
Section 501(c)(12)(C) is amended by striking the last sentence. 
(b) ELIMINATION OF SUNSET ON TREATMENT OF INCOME FROM 
LOAD LOSS TRANSACTIONS.—Section 501(c)(12)(H) is amended by 
striking clause (x). 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on the date of the enactment of this Act. 
SEC. 1305. DISPOSITIONS OF TRANSMISSION PROPERTY TO IMPLE-
MENT FERC RESTRUCTURING POLICY. 
(a) IN GENERAL.—Section 451(i)(3) (defining qualifying electric 
transmission transaction) is amended by striking ‘‘2007’’ and 
inserting ‘‘2008’’. 
(b) TECHNICAL AMENDMENT RELATED TO SECTION 909 OF THE 
AMERICAN JOBS CREATION ACT
OF 2004.—Clause (ii) of section 
451(i)(4)(B) is amended by striking ‘‘the close of the period 
applicable under subsection (a)(2)(B) as extended under paragraph 
(2)’’ and inserting ‘‘December 31, 2007’’. 
(c) EFFECTIVE DATES.— 
(1) IN GENERAL.—The amendment made by subsection (a) 
shall apply to transactions occurring after the date of the 
enactment of this Act. 
(2) TECHNICAL
AMENDMENT.—The amendment made by 
subsection (b) shall take effect as if included in the amendments 
made by section 909 of the American Jobs Creation Act of 
2004. 
SEC. 1306. CREDIT FOR PRODUCTION FROM ADVANCED NUCLEAR 
POWER FACILITIES. 
(a) IN GENERAL.—Subpart D of part IV of subchapter A of 
chapter 1 (relating to business related credits) is amended by adding 
after section 45I the following new section:
H. R. 6—405
‘‘SEC. 45J. CREDIT FOR PRODUCTION FROM ADVANCED NUCLEAR 
POWER FACILITIES. 
‘‘(a) GENERAL RULE.—For purposes of section 38, the advanced 
nuclear power facility production credit of any taxpayer for any 
taxable year is equal to the product of— 
‘‘(1) 1.8 cents, multiplied by 
‘‘(2) the kilowatt hours of electricity— 
‘‘(A) produced by the taxpayer at an advanced nuclear 
power facility during the 8-year period beginning on the 
date the facility was originally placed in service, and 
‘‘(B) sold by the taxpayer to an unrelated person during 
the taxable year. 
‘‘(b) NATIONAL LIMITATION.— 
‘‘(1) IN GENERAL.—The amount of credit which would (but 
for this subsection and subsection (c)) be allowed with respect 
to any facility for any taxable year shall not exceed the amount 
which bears the same ratio to such amount of credit as— 
‘‘(A) the national megawatt capacity limitation allo-
cated to the facility, bears to 
‘‘(B) the total megawatt nameplate capacity of such 
facility. 
‘‘(2) AMOUNT OF NATIONAL LIMITATION.—The national mega-
watt capacity limitation shall be 6,000 megawatts. 
‘‘(3) ALLOCATION OF LIMITATION.—The Secretary shall allo-
cate the national megawatt capacity limitation in such manner 
as the Secretary may prescribe. 
‘‘(4) REGULATIONS.—Not later than 6 months after the date 
of the enactment of this section, the Secretary shall prescribe 
such regulations as may be necessary or appropriate to carry 
out the purposes of this subsection. Such regulations shall 
provide a certification process under which the Secretary, after 
consultation with the Secretary of Energy, shall approve and 
allocate the national megawatt capacity limitation. 
‘‘(c) OTHER LIMITATIONS.— 
‘‘(1) ANNUAL LIMITATION.—The amount of the credit allow-
able under subsection (a) (after the application of subsection 
(b)) for any taxable year with respect to any facility shall 
not exceed an amount which bears the same ratio to 
$125,000,000 as— 
‘‘(A) the national megawatt capacity limitation allo-
cated under subsection (b) to the facility, bears to 
‘‘(B) 1,000. 
‘‘(2) OTHER
LIMITATIONS.—Rules similar to the rules of 
section 45(b)(1) shall apply for purposes of this section. 
‘‘(d) ADVANCED NUCLEAR POWER FACILITY.—For purposes of 
this section— 
‘‘(1) IN
GENERAL.—The term ‘advanced nuclear power 
facility’ means any advanced nuclear facility— 
‘‘(A) which is owned by the taxpayer and which uses 
nuclear energy to produce electricity, and 
‘‘(B) which is placed in service after the date of the 
enactment of this paragraph and before January 1, 2021. 
‘‘(2) ADVANCED NUCLEAR FACILITY.—For purposes of para-
graph (1), the term ‘advanced nuclear facility’ means any 
nuclear facility the reactor design for which is approved after 
December 31, 1993, by the Nuclear Regulatory Commission
H. R. 6—406
(and such design or a substantially similar design of comparable 
capacity was not approved on or before such date). 
‘‘(e) OTHER RULES TO APPLY.—Rules similar to the rules of 
paragraphs (1), (2), (3), (4), and (5) of section 45(e) shall apply 
for purposes of this section.’’. 
(b) CREDIT TREATED AS BUSINESS CREDIT.—Section 38(b), as 
amended by the Transportation Equity Act: A Legacy for Users, 
is amended by striking ‘‘plus’’ at the end of paragraph (19), by 
striking the period at the end of paragraph (20) and inserting 
‘‘, plus’’, and by adding at the end the following: 
‘‘(21) the advanced nuclear power facility production credit 
determined under section 45J(a).’’. 
(c) CLERICAL AMENDMENT.—The table of sections for subpart 
D of part IV of subchapter A of chapter 1 is amended by adding 
at the end the following:
‘‘Sec. 45J. Credit for production from advanced nuclear power facilities.’’.
(d) EFFECTIVE DATE.—The amendments made by this section 
shall apply to production in taxable years beginning after the date 
of the enactment of this Act. 
SEC. 1307. CREDIT FOR INVESTMENT IN CLEAN COAL FACILITIES. 
(a) IN GENERAL.—Section 46 (relating to amount of credit) 
is amended by striking ‘‘and’’ at the end of paragraph (1), by 
striking the period at the end of paragraph (2), and by adding 
at the end the following new paragraphs: 
‘‘(3) the qualifying advanced coal project credit, and 
‘‘(4) the qualifying gasification project credit.’’. 
(b) AMOUNT OF CREDITS.—Subpart E of part IV of subchapter 
A of chapter 1 (relating to rules for computing investment credit) 
is amended by inserting after section 48 the following new sections: 
‘‘SEC. 48A. QUALIFYING ADVANCED COAL PROJECT CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 46, the qualifying 
advanced coal project credit for any taxable year is an amount 
equal to— 
‘‘(1) 20 percent of the qualified investment for such taxable 
year in the case of projects described in subsection (d)(3)(B)(i), 
and 
‘‘(2) 15 percent of the qualified investment for such taxable 
year in the case of projects described in subsection (d)(3)(B)(ii). 
‘‘(b) QUALIFIED INVESTMENT.— 
‘‘(1) IN GENERAL.—For purposes of subsection (a), the quali-
fied investment for any taxable year is the basis of eligible 
property placed in service by the taxpayer during such taxable 
year which is part of a qualifying advanced coal project— 
‘‘(A)(i) the construction, reconstruction, or erection of 
which is completed by the taxpayer, or 
‘‘(ii) which is acquired by the taxpayer if the original 
use of such property commences with the taxpayer, and 
‘‘(B) with respect to which depreciation (or amortization 
in lieu of depreciation) is allowable. 
‘‘(2) SPECIAL RULE FOR CERTAIN SUBSIDIZED PROPERTY.—
Rules similar to section 48(a)(4) shall apply for purposes of 
this section. 
‘‘(3) CERTAIN
QUALIFIED
PROGRESS
EXPENDITURES
RULES 
MADE APPLICABLE.—Rules similar to the rules of subsections 
(c)(4) and (d) of section 46 (as in effect on the day before