I 
109TH CONGRESS 
2D SESSION 
H. R. 5027 
To amend the Internal Revenue Code of 1986 to provide a credit against 
tax proportional to the number of million British thermal units of natural 
gas produced by a high Btu fuel facility. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 28, 2006 
Mr. JINDAL 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 provide 
a credit against tax proportional to the number of million 
British thermal units of natural gas produced by a high 
Btu fuel facility. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Landfill Gas Act of 
2006’’. 
SEC. 2. CREDIT FOR PRODUCTION OF NATURAL GAS. 
(a) ALLOWANCE OF CREDIT.—Subpart D of part IV 
of subchapter A of chapter 1 of the Internal Revenue Code 
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of 1986 (relating to business related credits) is amended 
by inserting after section 45M the following new section: 
‘‘SEC. 45N. CREDIT FOR PRODUCTION OF NATURAL GAS. 
‘‘(a) IN GENERAL.—For purposes of section 38, in 
the case of a taxpayer, the amount of the natural gas pro-
duction credit determined under this section for a taxable 
year is equal to the product of— 
‘‘(1) $2, multiplied by 
‘‘(2) the million British thermal units of nat-
ural gas produced by the taxpayer at a high Btu fuel 
facility during the taxable year. 
‘‘(b) REDUCTION IN CREDIT AMOUNT AS NATURAL 
GAS PRICES INCREASE.—For purposes of this section, on 
the first day of the production month following the date 
on which the spot price of natural gas delivered at Henry 
Hub, Louisiana, on average, exceeds $6 per million British 
thermal units for 30 consecutive trading days, the $2 
amount under subsection (a) shall be reduced (but not 
below zero) by an amount which is equal to the amount 
by which such spot price exceeds $6 per million British 
thermal units. 
‘‘(c) HIGH BTU FUEL FACILITY.—For purposes of 
this section— 
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‘‘(1) IN GENERAL.—The term ‘high Btu fuel fa-
cility’ means a facility that produces high Btu bio-
mass fuel. 
‘‘(2) HIGH
BTU
BIOMASS
FUEL.—The term 
‘high Btu biomass fuel’ means fuel produced from 
biomass (as defined in section 45K(c)(3)) that— 
‘‘(A) contains no more than 7 pounds of 
water per million standard cubic feet, 
‘‘(B) contains not less than 95 percent 
methane per volume, and 
‘‘(C) has a Btu content of at least 950 per 
square cubic feet. 
‘‘(d) OTHER RULES TO APPLY.—Rules similar to the 
rules of paragraphs (1), (3), (4), and (5) of section 45(e) 
shall apply for purposes of this section.’’. 
(b) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.—Subsection (b) of section 38 of such Code (re-
lating to general business credit) is amended by striking 
‘‘and’’ at the end of paragraph (29), by striking the period 
at the end of paragraph (30) and inserting ‘‘, and’’, and 
by adding at the end the following new paragraph: 
‘‘(31) the natural gas production credit deter-
mined under section 45N(a).’’. 
(c) CONFORMING AMENDMENT.—The table of sec-
tions for subpart D of part IV of subchapter A of chapter 
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1 of such Code is amended by inserting after the item 
relating to section 45M the following new item: 
‘‘Sec. 45N. Credit for production of natural gas.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to the production of natural gas 
in taxable years beginning after December 31, 2006. 
Æ 
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