216
tion, and the term ‘constructed’ includes recon-
structed and erected. 
‘‘(D) ONLY
CONSTRUCTION
OF
QUALI-
FYING
ADVANCED
CLEAN
COAL
TECHNOLOGY 
FACILITY TO BE TAKEN INTO ACCOUNT.—Con-
struction shall be taken into account only if, for 
purposes of this subpart, expenditures therefore 
are properly chargeable to capital account with 
respect to the property. 
‘‘(5) ELECTION.—An election under this sub-
section may be made at such time and in such man-
ner as the Secretary may by regulations prescribe. 
Such an election shall apply to the taxable year for 
which made and to all subsequent taxable years. 
Such an election, once made, may not be revoked ex-
cept with the consent of the Secretary. 
‘‘(e) COORDINATION WITH OTHER CREDITS.—This 
section shall not apply to any property with respect to 
which the rehabilitation credit under section 47 or the en-
ergy credit under section 48A is allowed unless the tax-
payer elects to waive the application of such credit to such 
property. 
‘‘(f) TERMINATION.—This section shall not apply 
with respect to any qualified investment made more than 
10 years after the effective date of this section.’’.
217
(3) RECAPTURE.—Section 50(a) (relating to 
other special rules) is amended by inserting after 
paragraph (6) the following: 
‘‘(7) SPECIAL RULES RELATING TO QUALIFYING 
ADVANCED CLEAN COAL TECHNOLOGY FACILITY.—
For purposes of applying this subsection in the case 
of any credit allowable by reason of section 48C, the 
following shall apply: 
‘‘(A) GENERAL
RULE.—In lieu of the 
amount of the increase in tax under paragraph 
(1), the increase in tax shall be an amount 
equal to the investment tax credit allowed under 
section 38 for all prior taxable years with re-
spect to a qualifying advanced clean coal tech-
nology facility (as defined by section 48C(b)(1)) 
multiplied by a fraction whose numerator is the 
number of years remaining to fully depreciate 
under this title the qualifying advanced clean 
coal technology facility disposed of, and whose 
denominator is the total number of years over 
which such facility would otherwise have been 
subject to depreciation. For purposes of the 
preceding sentence, the year of disposition of 
the qualifying advanced clean coal technology
218
facility property shall be treated as a year of re-
maining depreciation. 
‘‘(B) PROPERTY CEASES TO QUALIFY FOR 
PROGRESS
EXPENDITURES.—Rules similar to 
the rules of paragraph (2) shall apply in the 
case of qualified progress expenditures for a 
qualifying advanced clean coal technology facil-
ity under section 48C, except that the amount 
of the increase in tax under subparagraph (A) 
of this paragraph shall be substituted in lieu of 
the amount described in such paragraph (2). 
‘‘(C) APPLICATION OF PARAGRAPH.—This 
paragraph shall be applied separately with re-
spect to the credit allowed under section 38 re-
garding a qualifying advanced clean coal tech-
nology facility.’’. 
(4) TECHNICAL AMENDMENTS.—
(A) Section 49(a)(1)(C) is amended by 
striking ‘‘and’’ at the end of clause (iii), by 
striking the period at the end of clause (iv) and 
inserting ‘‘, and’’, and by adding at the end the 
following: 
‘‘(v) the portion of the basis of any 
qualifying advanced clean coal technology
219
facility attributable to any qualified invest-
ment (as defined by section 48C(c)).’’. 
(B) Section 50(a)(4) of such Code is 
amended by striking ‘‘and (6)’’ and inserting 
‘‘(6), and (7)’’. 
(C) Section 50(c)(6) of such Code, as 
added by section 201(e)(3), is amended by in-
serting ‘‘or any advanced clean coal technology 
facility credit under section 48C’’ after ‘‘section 
48B’’. 
(D) The table of sections for subpart E of 
part IV of subchapter A of chapter 1 is amend-
ed by inserting after the item relating to section 
48B the following:
‘‘Sec. 48C. Qualifying advanced clean coal technology facility credit.’’.
(5) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to periods after De-
cember 31, 2005, under rules similar to the rules of 
section 48(m) of the Internal Revenue Code of 1986 
(as in effect on the day before the date of enactment 
of the Revenue Reconciliation Act of 1990). 
(d) CREDIT FOR PRODUCTION FROM QUALIFYING 
ADVANCED CLEAN COAL TECHNOLOGY.—
(1) IN GENERAL.—Subpart D of part IV of 
subchapter A of chapter 1 (relating to business re-
220
lated credits) is amended by inserting after section 
45L the following: 
‘‘SEC. 45M. CREDIT FOR PRODUCTION FROM QUALIFYING 
ADVANCED CLEAN COAL TECHNOLOGY. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
the qualifying advanced clean coal technology production 
credit of any taxpayer for any taxable year is equal to—
‘‘(1) the applicable amount of advanced clean 
coal technology production credit, multiplied by 
‘‘(2) the sum of—
‘‘(A) the kilowatt hours of electricity, plus 
‘‘(B) each 3,413 Btu of fuels or chemicals, 
produced by the taxpayer during such taxable 
year at a qualifying advanced clean coal tech-
nology facility during the 10-year period begin-
ning on the date the facility was originally 
placed in service. 
‘‘(b) APPLICABLE AMOUNT.—For purposes of this 
section, the applicable amount of advanced clean coal tech-
nology production credit with respect to production from 
a qualifying advanced clean coal technology facility shall 
be determined as follows: 
‘‘(1) Where the design coal has a heat content 
of more than 8,000 Btu per pound:
221
‘‘(A) In the case of a facility originally 
placed in service before 2008, if—
‘‘The facility design net heat rate, Btu/kWh (HHV) 
is: 
The applicable amount is: 
For 1st 5 years 
of such service 
For 2d 5 years of 
such service 
Not more than 8,400 .................................................
$.0050
$.0030
More than 8,400 but not more than 8,550 ...............
$.0010
$.0010
More than 8,550 but less than 8,750 ........................
$.0005
$.0005. 
‘‘(B) In the case of a facility originally 
placed in service after 2007 and before 2012, 
if—
‘‘The facility design net heat rate, Btu/kWh (HHV) 
is: 
The applicable amount is: 
For 1st 5 years 
of such service 
For 2d 5 years of 
such service 
Not more than 7,770 .................................................
$.0090
$.0075
More than 7,770 but not more than 8,125 ...............
$.0070
$.0050
More than 8,125 but not more than 8,350 ...............
$.0060
$.0040. 
‘‘(C) In the case of a facility originally 
placed in service after 2011 and before 2015, 
if—
‘‘The facility design net heat rate, Btu/kWh (HHV) 
is: 
The applicable amount is: 
For 1st 5 years 
of such service 
For 2d 5 years of 
such service 
Not more than 7,380 .................................................
$.0120
$.0090
More than 7,380 but not more than 7,720 ...............
$.0095
$.0070. 
‘‘(2) Where the design coal has a heat content 
of not more than 8,000 Btu per pound: 
‘‘(A) In the case of a facility originally 
placed in service before 2008, if—
‘‘The facility design net thermal efficiency (HHV) 
is: 
The applicable amount is: 
For 1st 5 years 
of such service 
For 2d 5 years of 
such service 
Not more than 8,500 .................................................
$.0050
$.0030
More than 8,500 but not more than 8,650 ...............
$.0010
$.0010
More than 8,650 but not more than 8,750 ...............
$.0005
$.0005.
222
‘‘(B) In the case of a facility originally 
placed in service after 2007 and before 2012, 
if—
‘‘The facility design net heat rate, Btu/kWh (HHV) 
is: 
The applicable amount is: 
For 1st 5 years 
of such service 
For 2d 5 years of 
such service 
Not more than 8,000 .................................................
$.0090
$.0075
More than 8,000 but not more than 8,250 ...............
$.0070
$.0050
More than 8,250 but not more than 8,400 ...............
$.0060
$.0040. 
‘‘(C) In the case of a facility originally 
placed in service after 2011 and before 2015, 
if—
The facility design net heat rate, Btu/kWh (HHV) 
is: 
The applicable amount is: 
For 1st 5 years 
of such service 
For 2d 5 years of 
such service 
Not more than 7,800 .................................................
$.0120
$.0090
More than 7,800 but not more than 7,950 ...............
$.0095
$.0070. 
‘‘(3) Where the clean coal technology facility is 
producing fuel or chemicals: 
‘‘(A) In the case of a facility originally 
placed in service before 2008, if—
‘‘The facility design net thermal efficiency (HHV) 
is: 
The applicable amount is: 
For 1st 5 years 
of such service 
For 2d 5 years of 
such service 
Not less than 40.6 percent ........................................
$.0050
$.0030
Less than 40.6 but not less than 40 percent ............
$.0010
$.0010
Less than 40 but not less than 39 percent ...............
$.0005
$.0005. 
‘‘(B) In the case of a facility originally 
placed in service after 2007 and before 2012, 
if—
‘‘The facility design net thermal efficiency (HHV) 
is: 
The applicable amount is: 
For 1st 5 years 
of such service 
For 2d 5 years of 
such service 
Not less than 43.9 percent ........................................
$.0090
$.0075
223
‘‘The facility design net thermal efficiency (HHV) 
is: 
The applicable amount is: 
For 1st 5 years 
of such service 
For 2d 5 years of 
such service 
Less than 43.9 but not less than 42 percent ............
$.0070
$.0050
Less than 42 but not less than 40.9 percent ............
$.0060
$.0040. 
‘‘(C) In the case of a facility originally 
placed in service after 2011 and before 2015, 
if—
‘‘The facility design net thermal efficiency (HHV) 
is: 
The applicable amount is: 
For 1st 5 years 
of such service 
For 2d 5 years of 
such service 
Not less than 44.2 percent ........................................
$.0120
$.0090
Less than 44.2 but not less than 43.6 percent .........
$.0095
$.0070
‘‘(c) INFLATION ADJUSTMENT FACTOR.—For cal-
endar years after 2005, each amount in paragraphs (1), 
(2), and (3) shall be adjusted by multiplying such amount 
by the inflation adjustment factor for the calendar year 
in which the amount is applied. If any amount as in-
creased under the preceding sentence is not a multiple of 
0.01 cent, such amount shall be rounded to the nearest 
multiple of 0.01 cent. 
‘‘(d) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section—
‘‘(1) IN GENERAL.—Any term used in this sec-
tion which is also used in section 48B shall have the 
meaning given such term in section 48B. 
‘‘(2) APPLICABLE RULES.—The rules of para-
graphs (3), (4), and (5) of section 45(e) shall apply.
224
‘‘(3) INFLATION
ADJUSTMENT
FACTOR.—The 
term ‘inflation adjustment factor’ means, with re-
spect to a calendar year, a fraction the numerator 
of which is the GDP implicit price deflator for the 
preceding calendar year and the denominator of 
which is the GDP implicit price deflator for the cal-
endar year 2005. 
‘‘(4) GDP IMPLICIT
PRICE
DEFLATOR.—The 
term ‘GDP implicit price deflator’ means the most 
recent revision of the implicit price deflator for the 
gross domestic product as computed by the Depart-
ment of Commerce before March 15 of the calendar 
year.’’. 
(2) CREDIT TREATED AS BUSINESS CREDIT.—
Section 38(b) is amended by striking ‘‘plus’’ at the 
end of paragraph (22), by striking the period at the 
end of paragraph (23) and inserting ‘‘, plus’’, and 
by adding at the end the following: 
‘‘(24) the qualifying advanced clean coal tech-
nology production credit determined under section 
45M(a).’’. 
(3) CLERICAL AMENDMENT.—The table of sec-
tions for subpart D of part IV of subchapter A of 
chapter 1 is amended by inserting after the item re-
lating to section 45I the following:
225
‘‘Sec. 45M. Credit for production from qualifying advanced clean coal tech-
nology.’’.
(4) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to production after the 
date of enactment of this Act. 
Subtitle B—Long Term Incentives 
SEC. 331. TAX INCENTIVES FOR RETOOLING AND INVEST-
MENT IN NEW FACILITIES AND ASSETS TO 
PRODUCE 
ENERGY 
EFFICIENCY 
TECH-
NOLOGIES AND DOMESTIC CLEAN ENERGY 
PRODUCTION TECHNOLOGIES. 
(a) RESEARCH CREDIT.—Section 41 (relating to 
credit for increasing research activities) is amended by 
adding at the end the following new subsection: 
‘‘(i) CERTAIN TECHNOLOGIES.—
‘‘(1) INCREASED CREDIT AMOUNT.—In the case 
of expenses relating to a technology described in 
paragraph (2), subsection (a)(1) shall be applied by 
substituting ‘40 percent’ for ‘20 percent’. 
‘‘(2) TECHNOLOGY DESCRIBED.—A technology 
described in this paragraph is—
‘‘(A) a facility modified to use closed-loop 
biomass to co-fire with coal (within the meaning 
of section 45(d)(2)(A)(ii)),
226
‘‘(B) a facility which uses qualified clean 
energy 
resources 
(as 
defined 
in 
section 
45(c)(1)), 
‘‘(C) a technology which enables a vehicle 
to qualify for the alternative motor vehicle cred-
it under section 30B, as determined by the sec-
retary, and which is—
‘‘(i) a fuel cell described in section 
30B(b)(3), 
‘‘(ii) a hybrid motor vehicle technology 
described in paragraphs (2) or (3) of sec-
tion 30B(c), 
‘‘(iii) an alternative fuel motor vehicle 
described in section 30B(d)(4), or 
‘‘(iv) an advanced diesel motor vehicle 
described in section 30B(e), 
‘‘(D) a qualified energy efficient appliance 
(as defined by section 45K(d)), 
‘‘(E) energy property described in section 
48A(c), 
‘‘(F) property, expenditures for which a 
credit is allowed under section 25C, 
‘‘(G) qualified energy management device 
or qualified retrofitted meter (as defined by sec-
tion 30D(b)),
227
‘‘(H) qualified flywheel property (as de-
fined by section 30E(c)), and 
‘‘(I) new electricity transmission lines de-
signed and built primarily to transmit elec-
tricity from rural renewable energy resources 
which do not currently have access to such 
transmission lines. 
‘‘(3) DOMESTIC PRODUCTION REQUIREMENT.—
An expense shall be treated as not described in para-
graph (1) unless any research qualified under this 
section is conducted substantially within the United 
States. 
‘‘(4) TECHNOLOGY
PORTION
OF
CREDIT
RE-
FUNDABLE FOR SMALL BUSINESSES.—
‘‘(A) IN GENERAL.—In the case of an eligi-
ble small business, the portion of the credit 
which is attributable to expenses relating to 
technologies described in paragraph (2) and 
which would (but for subparagraph (B)) be al-
lowable under this section shall be treated for 
purposes of this title as a credit allowed under 
subpart C. 
‘‘(B) NO DOUBLE BENEFIT.—The amount 
of the credit allowed under this section shall be 
reduced by the amount of any credit treated as
228
allowed under subpart C by reason of subpara-
graph (A). 
‘‘(C) ELIGIBLE
SMALL
BUSINESS.—For 
purposes of this paragraph, a taxpayer is an eli-
gible small business for any taxable year if the 
average annual gross receipts of the taxpayer 
for the 3 preceding taxable years do not exceed 
$5,000,000. For purposes of the preceding sen-
tence, rules similar to the rules of paragraphs 
(2) and (3) of section 448(c) shall apply.’’. 
(b) INVESTMENT TAX CREDIT
FOR EQUIPMENT, 
STRUCTURES, AND ALL ASSETS INVOLVED IN PRODUC-
TION OF QUALIFIED TECHNOLOGIES.—
(1) IN
GENERAL.—Section 46 (relating to 
amount of investment credit) is amended by striking 
‘‘and’’ at the end of paragraph (4), by striking the 
period at the end of paragraph (5) and inserting ‘‘; 
and’’, and by adding at the end the following new 
paragraph: 
‘‘(6) the qualified technology credit.’’. 
(2) QUALIFIED
TECHNOLOGY
CREDIT.—Sub-
part E of part IV of subchapter A of chapter 1 (re-
lating to rules for computing investment credit) is 
amended by inserting after section 48C the fol-
lowing:
229
‘‘SEC. 48D. QUALIFIED TECHNOLOGY CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 46, the 
qualified technology credit for any taxable year is 35 per-
cent of the basis of each facility placed in service in the 
United States during such taxable year which is primarily 
used in the production or manufacture of technology prop-
erty described in section 41(i)(2). 
‘‘(b) CERTAIN
PROGRESS
EXPENDITURE
RULES 
MADE APPLICABLE.—Rules similar to the rules of sub-
sections (c)(4) and (d) of section 46 (as in effect on the 
day before the date of the enactment of the Revenue Rec-
onciliation Act of 1990) shall apply for purposes of this 
section.’’. 
(3) SPECIAL BASIS ADJUSTMENT RULE.—Para-
graph (3) of section 50(c) (relating to basis adjust-
ment to investment credit property) is amended by 
striking ‘‘or reclamation credit’’ and inserting ‘‘, rec-
lamation credit, or qualified technology credit’’. 
(4) CLERICAL AMENDMENT.—The table of sec-
tions for subpart E of part IV of subchapter A of 
chapter 1 is amended by inserting after the item re-
lating to section 48C the following new item:
‘‘Sec. 48D. Qualified technology credit.’’.
(5) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to property placed in 
service after the date of enactment of this Act.
230
(c) ACCELERATED DEPRECIATION.—Section 168 (re-
lating to accelerated cost recovery system) is amended by 
adding at the end the following new subsection: 
‘‘(l) CERTAIN TECHNOLOGIES.—
‘‘(1) INCREASED ADDITIONAL ALLOWANCE.—In 
the case of any property located in the United States 
which is primarily used in the production or manu-
facture of technology property described in section 
41(i)(2)—
‘‘(A) the depreciation deduction provided 
by section 167(a) for the taxable year in which 
such property is placed in service shall include 
an allowance equal to the applicable percentage 
of the adjusted basis of such property; and 
‘‘(B) the adjusted basis of such property 
shall be reduced by the amount of such deduc-
tion before computing the amount otherwise al-
lowable as a depreciation deduction under this 
chapter for such taxable year and any subse-
quent taxable year. 
‘‘(2) APPLICABLE PERCENTAGE.—For purposes 
of paragraph (1), the term ‘applicable percentage’ 
means—
‘‘(A) 70 percent for taxable years begin-
ning in 2005, 2006, or 2007;
231
‘‘(B) 50 percent for taxable years begin-
ning in 2008 or 2009; 
‘‘(C) 30 percent for taxable years begin-
ning in 2010, 2011, 2012, 2013, or 2014; and 
‘‘(D) zero thereafter.’’. 
(d) EXPENSING.—Section 179 is amended by adding 
at the end the following new subsection: 
‘‘(e) PROPERTY PURCHASED FOR PRODUCTION OF 
QUALIFIED TECHNOLOGY.—In the case of section 179 
property placed in service in the United States for the pri-
mary purpose of producing or manufacturing technology 
property described in section 41(i)(2), subsection (b)(1) 
shall be applied by substituting $500,000 for any dollar 
amount specified therein.’’. 
(e) EXCLUSION FOR INTEREST ON LOANS FOR PRO-
DUCTION OF QUALIFIED TECHNOLOGY.—
(1) IN GENERAL.—Part III of subchapter B of 
chapter 1 is amended by inserting after section 
139B the following new section: 
‘‘SEC. 139C. INTEREST ON LOANS FOR PRODUCTION OF 
QUALIFIED TECHNOLOGY. 
‘‘Gross income shall not include 50 percent of the in-
terest received on any obligation the proceeds of which are 
used exclusively in the production in the United States of
232
a qualified technology property described in section 
41(i)(2).’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for part III of subchapter B of chapter 1 is 
amended by inserting after the item relating to sec-
tion 139B the following new item:
‘‘Sec. 139C. Interest on loans for production of qualified technology.’’.
(f) INCREASED CARRYOVERS.—Subsection (a) of sec-
tion 39 is amended by adding at the end the following 
new paragraph: 
‘‘(3) INCREASED
CARRYOVERS
FOR
CREDITS 
RELATING TO CERTAIN TECHNOLOGIES.—In the case 
of the credits allowable under section 38 by reason 
of section 41(i) or section 46(6)—
‘‘(A) the carryback under paragraphs (1) 
and (2) shall be 5 years in lieu of 1 year; 
‘‘(B) the carryforward paragraphs (1) and 
(2) shall be 25 years in lieu of 20 years; 
‘‘(C) this paragraph shall be applied sepa-
rately with respect to any other carryover under 
this section; and 
‘‘(D) the determination of the amounts 
carried over under this paragraph shall be made 
after this section is applied after the application 
of subparagraph (C).’’.
233
(g) ALTERNATIVE MINIMUM TAX.—Subsection (a) of 
section 56 is amended by adding at the end the following 
new paragraph: 
‘‘(8) 
QUALIFIED
TECHNOLOGIES.—Notwith-
standing any other provision of this part, no provi-
sion of this part shall apply with respect to sections 
41(i), 48D, 139C, 168(l), and 179(e).’’. 
(h) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 332. SPECIAL RULES FOR AUTOMOTIVE INDUSTRY. 
(a) IN GENERAL.—Chapter 77 is amended by adding 
at the end the following new section: 
‘‘SEC. 7529. SPECIAL RULES FOR AUTOMOTIVE INDUSTRY. 
‘‘(a) IN GENERAL.—For purposes of sections 41(i), 
48D, and 39(a)(3) any vehicle for which a credit is allowed 
by section 30B shall be treated as a technology described 
in section 41(i)(2), except that—
‘‘(1) section 41(i)(1) shall be applied by sub-
stituting ‘60 percent’ for ‘40 percent’, 
‘‘(2) section 48D shall be applied by sub-
stituting ‘50 percent’ for ‘35 percent’, and 
‘‘(3) section 39(a)(3) shall be applied by sub-
stituting ‘30 years’ for ‘25 years’ and ‘10 years’ for 
‘5 years’.
234
‘‘(b) SPECIAL RULE RELATING TO ACCELERATED 
DEPRECIATION.—For purposes of section 168(l), the ap-
plicable percentage shall be the percentage specified in 
subparagraphs (A), (B), and (C) of paragraph (2) thereof, 
increased by 10 percentage points.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 77 is amended by adding at the end the fol-
lowing new item:
‘‘Sec. 7529. Special rules for automotive industry.’’.
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 333. SPECIAL RULES FOR HIGH-CAPACITY AIRPLANES. 
(a) IN GENERAL.—Chapter 77 is amended by adding 
at the end the following new section: 
‘‘SEC. 7530. SPECIAL RULES FOR HIGH-CAPACITY AIR-
PLANES. 
‘‘(a) IN GENERAL.—For purposes of sections 41(i), 
48D, and 39(a)(3) any high-capacity airplane shall be 
treated as a technology described in section 41(i)(2), ex-
cept that—
‘‘(1) section 41(i)(1) shall be applied by sub-
stituting ‘60 percent’ for ‘40 percent’; 
‘‘(2) section 48D shall be applied by sub-
stituting ‘50 percent’ for ‘35 percent’;
235
‘‘(3) section 39(a)(3) shall be applied by sub-
stituting ‘30 years’ for ‘25 years’ and ‘8 years’ for 
‘5 years’. 
‘‘(b) SPECIAL RULE RELATING TO ACCELERATED 
DEPRECIATION.—For purposes of section 168(l), the ap-
plicable percentage shall be the percentage specified in 
subparagraphs (A), (B), and (C) of paragraph (2) thereof, 
increased by 10 percentage points. 
‘‘(c) HIGH-CAPACITY AIRPLANE.—For purposes of 
this section, the term ‘high-capacity airplane’ means a 
commercial airplane which—
‘‘(1) has a passenger seating capacity of no less 
than 200 people; 
‘‘(2) has a range of at least 7,200 nautical 
miles; and 
‘‘(3) consumes at least 15 percent less fuel than 
comparable airplanes.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 77 is amended by adding at the end the fol-
lowing new item:
‘‘Sec. 7530. Special rules for high-capacity airplanes.’’.
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act.
236
SEC. 334. NEW ELECTRICITY TRANSMISSION LINES DE-
SIGNED PRIMARILY TO CARRY ELECTRICITY 
FROM RENEWABLE ENERGY RESOURCES. 
The Secretary of the Treasury, in consultation with 
the Secretary of Energy, the Secretary of Commerce, and 
the Administrator of the Environmental Protection Agen-
cy, shall establish an appropriate investment tax credit for 
the construction of new electricity transmission lines de-
signed primarily to carry electricity from renewable energy 
resources. Such credit shall be sufficient to encourage the 
development of promising rural renewable energy domestic 
resources that otherwise would likely not be developed. 
SEC. 335. NEW ENERGY TECHNOLOGIES COMMISSION. 
(a) ESTABLISHMENT.—There is established a com-
mission to be known as the ‘‘New Energy Technologies 
Commission’’ (hereafter in this section referred to as the 
‘‘Commission’’). 
(b) DUTIES.—
(1) IDENTIFY NEW ENERGY TECHNOLOGIES EL-
IGIBLE FOR TAX INCENTIVES.—
(A) IN GENERAL.—The Commission shall 
oversee—
(i) the identification of—
(I) Apollo Approved energy effi-
ciency technologies; and
237
(II) Apollo Approved domestic 
clean energy production technologies; 
that the Commission finds substan-
tially contributes to the goals of this 
Act and merits consideration for fa-
vorable tax incentives by Congress; 
and 
(ii) the identification of criteria and 
standards for determining technologies eli-
gible under clause (i) as qualifying energy 
efficiency standards used to determine eli-
gibility for the investment, production, and 
consumption tax incentives outlined in this 
title. 
(B) MATTERS TO BE CONSIDERED BY THE 
COMMISSION.—In developing energy efficiency 
standards, the Commission shall—
(i) consult with the Environmental 
Protection Agency program known as ‘‘En-
ergy Star’’; and 
(ii) focus on technologies manufac-
tured domestically. 
(2) REPORT.—Not later than one year after the 
date of enactment of this Act, and every six months
238
thereafter the Commission shall submit to Congress 
a report that contains—
(A) a detailed statement of any technology 
that qualifies for or merits the tax incentives in 
this title; 
(B) recommendations for tax incentives 
specifically tailored to be beneficial to such 
technologies and any standards that should be 
defined in statute to determine eligibility for 
such benefits; and 
(C) recommendations for other legislation, 
administrative actions, and voluntary actions 
necessary to implement such incentives. 
(3) 
APOLLO
APPROVED
ENERGY
TECH-
NOLOGIES.—For purposes of this section, the term 
‘‘Apollo Approved energy technologies’’ means any 
final unit product that the Commission finds sub-
stantially contributes to the goals of this Act and 
merits consideration for favorable tax incentives by 
Congress not already included in this Act. 
(4) APOLLO APPROVED DOMESTIC CLEAN EN-
ERGY PRODUCTION TECHNOLOGIES.—For purposes 
of this section, the term ‘‘Apollo Approved domestic 
clean energy production technologies’’ means any do-
mestic energy production technology that the Com-
239
mission finds substantially contributes to the goals 
of this Act and merits consideration for favorable 
tax incentives by Congress not already included in 
this Act. 
(c) MEMBERSHIP.—
(1) IN
GENERAL.—The Commission shall be 
comprised of 11 members. 
(2) APPOINTMENTS
BY
THIS
ACT.—The fol-
lowing are hereby designated as members of the 
Commission: 
(A) The Secretary of the Department of 
Energy, the Director of the Office of Energy 
Efficiency and Renewable Energy of the De-
partment of Energy, or the Administrator of 
the Energy Information Administration of the 
Department of Energy. 
(B) The Secretary of the Department of 
Commerce or designee. 
(C) The Secretary of the Department of 
Treasury or designee. 
(D) The Director of the Environmental 
Protection Agency or designee. 
(3) APPOINTMENTS
BY
THE
SENATE
AND 
HOUSE
OF
REPRESENTATIVES.—7 members ap-
pointed jointly by the majority leader and minority
240
leader of the Senate and the Speaker and minority 
leader of the House of Representatives, of whom—
(A) 1 shall represent consumer advocacy 
organizations focusing on energy issues; 
(B) 1 shall represent auto manufacturers; 
(C) 1 shall represent the lending commu-
nity; 
(D) 1 shall represent environmental advo-
cacy organizations focusing on energy issues; 
(E) 1 shall represent organized labor; 
(F) 1 shall represent small business manu-
facturers; and 
(G) 1 shall represent the energy industry. 
(4) DATE
OF
APPOINTMENTS.—The appoint-
ment of a member of the Commission shall be made 
not later than 30 days after the date of enactment 
of this Act. 
(5) TERM.—A member shall be appointed for 5 
year terms. 
(d) POWERS OF COMMISSION.—
(1) HEARINGS AND SESSIONS.—The Commis-
sion may, for the purpose of carrying out this sec-
tion, hold hearings, sit and act at times and places, 
take testimony, and receive evidence to carry out its 
duties under subsection (b). The Commission may
241
administer oaths or affirmations to witnesses ap-
pearing before it. 
(2) POWERS OF MEMBERS AND AGENTS.—Any 
member or agent of the Commission may, if author-
ized by the Commission, take any action which the 
Commission is authorized to take by this section. 
(3) OBTAINING OFFICIAL INFORMATION.—
(A) REQUIREMENT TO FURNISH.—Except 
as provided in subparagraph (B), if the Com-
mission submits a request to a Federal depart-
ment or agency for information necessary to en-
able the Commission to carry out this section, 
the head of that department or agency shall 
furnish that information to the Commission. 
(B) EXCEPTION
FOR
NATIONAL
SECU-
RITY.—If the head of a Federal department or 
agency determines that it is necessary to with-
hold requested information from disclosure to 
protect the national security interests of the 
United States, the department or agency head 
shall not furnish that information to the Com-
mission. 
(4) MAILS.—The Commission may use the 
United States mails in the same manner and under
242
the same conditions as other departments and agen-
cies of the United States. 
(5) ADMINISTRATIVE
SUPPORT
SERVICES.—
Upon the request of the Director, the Administrator 
of General Services shall provide to the Commission, 
on a reimbursable basis, the administrative support 
services necessary for the Commission to carry out 
this section. 
(6) GIFTS AND DONATIONS.—The Commission 
may accept, use, and dispose of gifts or donations of 
services or property to carry out this Act, but only 
to the extent or in the amounts provided in advance 
in appropriation Acts. 
(7) CONTRACTS.—The Commission may con-
tract with and compensate persons and government 
agencies for supplies and services, without regard to 
section 3709 of the Revised Statutes (41 U.S.C. 5). 
(e) INITIAL MEETING.—The Commission shall hold 
the initial meeting of the Commission not later than the 
earlier of—
(1) the date that is 30 days after the date on 
which all members of the Commission have been ap-
pointed; or
243
(2) the date that is 90 days after the date of 
enactment of this Act, regardless of whether all 
members have been appointed. 
(f) CHAIRPERSON
AND VICE CHAIRPERSON.—The 
Commission shall select a Chairperson and Vice Chair-
person from among the members of the Commission deter-
mined under subsection (c)(2). 
(g) EXECUTIVE COMMITTEE.—The Commission shall 
have an executive committee comprised of any five mem-
bers of the Commission. 
(h) CONFLICTS OF INTEREST.—Each member ap-
pointed to the Commission shall submit a financial disclo-
sure report pursuant to the Ethics in Government Act of 
1978, notwithstanding the minimum required rate of com-
pensation or time period employed. 
(i) STAFF APPOINTMENT AND COMPENSATION.—The 
Chairperson, in consultation with the Vice Chairperson, in 
accordance with rules agreed upon by the Commission, 
may appoint and fix the compensation of a staff director 
and such other personnel as may be necessary to enable 
the Commission to carry out its functions, without regard 
to the provisions of title 5, United States Code, governing 
appointments in the competitive service, and without re-
gard to the provisions of chapter 51 and subchapter III 
of chapter 53 of such title relating to classification and
244
General Schedule pay rates; except that no rate of pay 
fixed under this subsection may exceed the equivalent of 
that payable for a position at level V of the Executive 
Schedule under section 5316 of title 5, United States 
Code. 
(j) PERSONNEL AS FEDERAL EMPLOYEES.—
(1) IN GENERAL.—The staff director and any 
personnel of the Commission who are employees 
shall be employees under section 2105 of title 5, 
United States Code, for purposes of chapters 63, 81, 
83, 84, 85, 87, 89, and 90 of that title. 
(2) MEMBERS OF COMMISSION.—Subparagraph 
(A) shall not be construed to apply to members of 
the Commission. 
(k) DETAILEES.—Any Federal Government employee 
may be detailed to the Commission without reimbursement 
from the Commission, and such detailee shall retain the 
rights, status, and privileges of his or her regular employ-
ment without interruption. 
(l) CONSULTANT SERVICES.—The Commission is au-
thorized to procure the services of experts and consultants 
in accordance with section 3109 of title 5, United States 
Code, but at rates not to exceed the daily rate paid a per-
son occupying a position at level IV of the Executive
245
Schedule under section 5315 of title 5, United States 
Code. 
(m) MEMBER COMPENSATION.—Each member of the 
Commission specified in subsection (c)(3) may be com-
pensated at a rate not to exceed the daily equivalent of 
the annual rate of basic pay in effect for a position at 
level IV of the Executive Schedule under section 5315 of 
title 5, United States Code, for each day during which that 
member is engaged in the actual performance of the duties 
of the Commission. 
(n) 
INFORMATION
AND
ADMINISTRATIVE
EX-
PENSES.—The Federal agencies and members specified in 
subsection (c)(3) shall provide the Commission such infor-
mation and pay such administrative and members ex-
penses as the Commission requires to carry out this sec-
tion, consistent with the requirements and guidelines of 
the Federal Advisory Commission Act (5 U.S.C. App.). 
(o) TRAVEL EXPENSES.—While away from their 
homes or regular places of business in the performance 
of services for the Commission, members of the Commis-
sion shall be allowed travel expenses, including per diem 
in lieu of subsistence, in the same manner as persons em-
ployed intermittently in the Government service are al-
lowed expenses under section 5703 of title 5, United 
States Code.
246
(p) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—There is authorized to be 
appropriated to the Commission such sums as may 
be necessary to carry out this section. 
(2) 
AVAILABILITY.—Amounts 
appropriated 
under paragraph (1) are authorized to remain avail-
able until expended. 
SEC. 336. EXPENDITURE LIMITATION. 
Not later than 6 months after the date of the enact-
ment of this Act, the Secretary of the Treasury shall sub-
mit a report to the Congress on the tax expenditures in-
curred by reason of this subtitle, determined on both an 
annual basis and for the 10-year period beginning on Jan-
uary 1, 2006, together with such recommendations as the 
Secretary determines necessary or appropriate to achieve 
a national 10-year tax expenditure under this subtitle of—
(1) $10,000,000,000 with respect to auto-
mobiles, of which $7,000,000,000 shall be expended 
in the first 5 years of such 10-year period; 
(2) $1,500,000,000 with respect to airplanes, of 
which $1,000,000,000 shall be expended in the first 
5 years of such 10-year period, and 
(3) $10,500,000,000 with respect to all other 
tax expenditures under this subtitle, of which—
247
(A) $6,500,000,000 shall be expended in 
the first 3 years of such 10-year period; 
(B) $2,000,000,000 shall be expended in 
the fourth and fifth years of such 10-year pe-
riod; and 
(C) $2,000,000,000 shall be expended over 
the last 5 years of such 10-year period. 
TITLE 
IV—FEDERAL 
GOVERN-
MENT LEVERAGE TO MOVE 
NEW TECHNOLOGIES TO MAR-
KET 
SEC. 401. IMPROVED COORDINATION OF TECHNOLOGY 
TRANSFER ACTIVITIES. 
(a) TECHNOLOGY TRANSFER COORDINATOR.—The 
Secretary shall designate a Technology Transfer Coordi-
nator to perform oversight of and policy development for 
technology transfer activities at the Department. The 
Technology Transfer Coordinator shall coordinate the ac-
tivities of the Technology Transfer Working Group, and 
shall oversee the expenditure of funds allocated to the 
Technology Transfer Working Group, and shall coordinate 
with each technology partnership ombudsman appointed 
under section 11 of the Technology Transfer Commer-
cialization Act of 2000 (42 U.S.C. 7261c).
248
(b) TECHNOLOGY TRANSFER WORKING GROUP.—
The Secretary shall establish a Technology Transfer 
Working Group, which shall consist of representatives of 
the National Laboratories and single-purpose research fa-
cilities, to—
(1) coordinate technology transfer activities oc-
curring at National Laboratories and single-purpose 
research facilities; 
(2) exchange information about technology 
transfer practices, including alternative approaches 
to resolution of disputes involving intellectual prop-
erty rights and other technology transfer matters; 
and 
(3) develop and disseminate to the public and 
prospective technology partners information about 
opportunities and procedures for technology transfer 
with the Department, including those related to al-
ternative approaches to resolution of disputes involv-
ing intellectual property rights and other technology 
transfer matters. 
(c) TECHNOLOGY
TRANSFER
RESPONSIBILITY.—
Nothing in this section shall affect the technology transfer 
responsibilities of Federal employees under the Stevenson-
Wydler Technology Innovation Act of 1980.
249
(d) DEFINITION.—For purposes of this section, the 
term ‘‘National Laboratory’’ means any of the following 
laboratories owned by the Department: 
(A) Ames National Laboratory. 
(B) Argonne National Laboratory. 
(C) Brookhaven National Laboratory. 
(D) Fermi National Laboratory. 
(E) Idaho National Engineering and Envi-
ronmental Laboratory. 
(F) Lawrence Berkeley National Labora-
tory. 
(G) Lawrence Livermore National Labora-
tory. 
(H) Los Alamos National Laboratory. 
(I) National Energy Technology Labora-
tory. 
(J) National Renewable Energy Labora-
tory. 
(K) Oak Ridge National Laboratory. 
(L) Pacific Northwest National Labora-
tory. 
(M) Princeton Plasma Physics Laboratory. 
(N) Sandia National Laboratories.
250
(O) Thomas Jefferson National Accel-
erator Facility. 
SEC. 402. FEDERAL SUPPORT FOR COMMERCIALIZATION 
OF NEW TECHNOLOGIES. 
(a) PROGRAM.—The Secretary of Energy shall estab-
lish a program of support, through grants, low-interest 
loans, and loan guarantees, for the commercialization, in-
cluding support for pilot projects, of new—
(1) renewable energy technologies; 
(2) technologies for energy generation from fos-
sil fuels that incorporate carbon sequestration; and 
(3) energy efficiency technologies. 
(b) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of En-
ergy for carrying out this section $5,000,000,000. 
SEC. 403. CLEAN ENERGY TECHNOLOGY EXPORTS PRO-
GRAM. 
(a) DEFINITIONS.—In this section: 
(1) INTERAGENCY WORKING GROUP.—The term 
‘‘interagency working group’’ means the Interagency 
Working Group on Clean Energy Technology Ex-
ports established under subsection (b). 
(2) UNITED
STATES
CLEAN
ENERGY
TECH-
NOLOGY.—The term ‘‘United States clean energy 
technology’’ means an energy supply or end-use
251
technology, including a technology using renewable 
energy sources, that—
(A) over its lifecycle and compared to a 
similar technology already in commercial use in 
developing countries, countries in transition, 
and other partner countries—
(i) emits substantially lower levels of 
pollutants and/or greenhouse gases; and 
(ii) may generate substantially smaller 
and/or less toxic volumes of solid or liquid 
waste; and 
(B) consists of manufactured articles, ma-
terials, and supplies produced in the United 
States substantially all from articles, materials, 
or supplies mined, produced, or manufactured 
in the United States, within the meaning of the 
Buy American Act (41 U.S.C. 10a). 
(b) INTERAGENCY WORKING GROUP.—
(1) ESTABLISHMENT.—Not later than 90 days 
after the date of enactment of this section, the Sec-
retary of Energy, the Secretary of Commerce, and 
the Administrator of the United States Agency for 
International Development shall jointly establish a 
Interagency Working Group on Clean Energy Tech-
nology Exports. The interagency working group will
252
focus on opening and expanding energy markets and 
transferring clean energy technology generated in 
the United States to developing countries, countries 
in transition, and other partner countries that are 
expected to experience, over the next 20 years, the 
most significant growth in energy production and as-
sociated greenhouse gas emissions, including through 
technology transfer programs under the Framework 
Convention on Climate Change, other international 
agreements, and relevant Federal efforts. 
(2) MEMBERSHIP.—The interagency working 
group shall be jointly chaired by representatives ap-
pointed by the agency heads under paragraph (1) 
and shall also include representatives from the De-
partment of State, the Department of the Treasury, 
the Environmental Protection Agency, the Export-
Import Bank, the Overseas Private Investment Cor-
poration, the Trade and Development Agency, and 
other Federal agencies as deemed appropriate by all 
three agency heads under paragraph (1). 
(3) DUTIES.—The interagency working group 
shall—
(A) analyze technology, policy, and market 
opportunities for international development,
253
demonstration, and deployment of clean energy 
technology developed in the United States; 
(B) investigate issues associated with 
building capacity to deploy clean energy tech-
nology generated in the United States in devel-
oping countries, countries in transition, and 
other partner countries, including—
(i) energy-sector reform; 
(ii) creation of open, transparent, and 
competitive markets for clean energy tech-
nologies; 
(iii) availability of trained personnel 
to deploy and maintain the technology; and 
(iv) demonstration and cost-buydown 
mechanisms to promote first adoption of 
the technology; 
(C) examine relevant trade, tax, inter-
national, and other policy issues to assess what 
policies would help open markets and improve 
United States clean energy technology exports 
in support of the following areas—
(i) enhancing energy innovation and 
cooperation, including energy sector and 
market reform, capacity building, and fi-
nancing measures;