I 
110TH CONGRESS 
1ST SESSION H. R. 1965 
To amend the Internal Revenue Code of 1986 to modify the credit to holders 
of clean renewable energy bonds. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 19, 2007 
Mr. POMEROY (for himself and Mr. LEWIS of Kentucky) introduced the 
following bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to modify 
the credit to holders of clean renewable energy bonds. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. MODIFICATIONS TO CREDIT FOR CLEAN RE-
NEWABLE ENERGY BONDS. 
(a) ADDITIONAL PERIOD FOR REIMBURSEMENT OF 
COSTS PAID BY BORROWER.—Subparagraph (C) of sec-
tion 54(d)(2) of the Internal Revenue Code of 1986 is 
amended by striking clause (iii) and inserting the fol-
lowing: 
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‘‘(iii) the reimbursement is made not 
later than 18 months after the date the 
original expenditure is paid or, if later, the 
date that the project is placed in service or 
abandoned. 
In no event may the reimbursement under 
clause (iii) be made more than 3 years after the 
date the original expenditure is paid.’’. 
(b) CLARIFICATION OF RATABLE PRINCIPAL AMOR-
TIZATION REQUIREMENT.—Paragraph (5) of section 54(l) 
of such Code is amended to read as follows: 
‘‘(5) RATABLE PRINCIPAL AMORTIZATION RE-
QUIRED.—A bond shall not be treated as a clean re-
newable energy bond unless it is part of an issue 
which provides for an equal amount of principal to 
be paid by the qualified issuer during each 12-month 
period that the issue is outstanding (other than the 
first 12-month period).’’. 
(c) MAXIMUM TERM OF ISSUE.—The second sentence 
of section 54(e)(2) of such Code is amended by inserting 
‘‘the greater of 15 years or’’ after ‘‘Such maximum term 
shall be’’. 
(d) INCREASE IN AMOUNT OF BONDS DESIGNATED; 
EXTENSION THROUGH 2009.— 
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(1) IN GENERAL.—Subsection (f) of section 54 
of such Code is amended to read as follows: 
‘‘(f) LIMITATION
ON AMOUNT
OF BONDS DES-
IGNATED.— 
‘‘(1) NATIONAL LIMITATION.—There is a na-
tional clean renewable energy bond limitation for 
each 
calendar 
year. 
Such 
limitation 
is 
$1,000,000,000 for 2008 and 2009 and zero there-
after. 
‘‘(2) ALLOCATION
BY
SECRETARY.—The na-
tional clean renewable energy bond limitation for a 
calendar year shall be allocated by the Secretary 
among qualified projects in such manner as the Sec-
retary determines appropriate, except that the Sec-
retary may not allocate more than $625,000,000 of 
such limitation for each calendar year to finance 
qualified projects of qualified borrowers which are 
governmental bodies.’’. 
(2) CONFORMING AMENDMENT.—Section 54 of 
such Code is amended by striking subsection (m). 
(e) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to obligations issued after December 31, 
2006. 
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(2) ANNUAL BOND LIMITATION.—The amend-
ments made by subsection (d) shall apply to obliga-
tions issued after December 31, 2007. 
Æ 
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