I 
112TH CONGRESS 
2D SESSION 
H. R. 5187 
To amend the Internal Revenue Code of 1986 to provide incentives for 
clean energy and to repeal fossil fuel subsidies for big oil companies. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 27, 2012 
Mr. MARKEY (for himself, Mr. WAXMAN, Mr. BLUMENAUER, Mr. LARSON of 
Connecticut, and Mr. PASCRELL) introduced the following bill; which was 
referred to the Committee on Ways and Means, and in addition to the 
Committee on Energy and Commerce, for a period to be subsequently de-
termined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
incentives for clean energy and to repeal fossil fuel sub-
sidies for big oil companies. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Investing to Modernize the Production of American 
Clean Energy and Technology Act of 2012’’ or as the 
‘‘IMPACT Act of 2012’’. 
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(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—CLEAN ENERGY INCENTIVES 
Subtitle A—Renewable Energy 
Sec. 101. Extension of renewable energy credits. 
Sec. 102. Extension of election of investment tax credit in lieu of production 
credit. 
Sec. 103. Extension of grants for specified energy property in lieu of tax cred-
its. 
Sec. 104. Extension of qualifying advanced energy project credit. 
Sec. 105. Extension of credit for energy-efficient new homes. 
Sec. 106. Extension of credit for energy-efficient appliances. 
Subtitle B—Electric, Natural Gas, and Hydrogen Vehicles 
Sec. 111. Increase and expansion of credit for qualified plug-in electric drive 
motor vehicles. 
Sec. 112. Extension of new qualified alternative fuel motor vehicle credit for 
heavy natural gas vehicles. 
Sec. 113. Modification of credit for alternative fuel vehicle refueling property 
for vehicles powered by electricity, natural gas, or hydrogen. 
Sec. 114. Electric, natural gas, and hydrogen vehicle refueling property tax 
credit bonds. 
TITLE II—REPEAL OF FOSSIL FUEL SUBSIDIES FOR BIG OIL 
COMPANIES 
Sec. 201. Prohibition on using last-in, first-out accounting for major integrated 
oil companies. 
Sec. 202. Modifications of foreign tax credit rules applicable to major inte-
grated oil companies which are dual capacity taxpayers. 
Sec. 203. Limitation on section 199 deduction attributable to oil, natural gas, 
or primary products thereof. 
Sec. 204. Limitation on deduction for intangible drilling and development costs. 
Sec. 205. Limitation on percentage depletion allowance for oil and gas wells. 
Sec. 206. Limitation on deduction for tertiary injectants. 
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TITLE I—CLEAN ENERGY 
INCENTIVES 
Subtitle A—Renewable Energy 
SEC. 101. EXTENSION OF RENEWABLE ENERGY CREDITS. 
(a) WIND.—Paragraph (1) of section 45(d) of the In-
ternal Revenue Code of 1986 is amended by striking ‘‘Jan-
uary 1, 2013’’ and inserting ‘‘January 1, 2021’’. 
(b) BIOMASS, GEOTHERMAL, SMALL IRRIGATION, 
LANDFILL
GAS, 
HYDROPOWER, 
MARINE, 
AND 
HYDROKINETIC.—Each of the following provisions of sec-
tion 45(d) of such Code is amended by striking ‘‘January 
1, 2014’’ and inserting ‘‘January 1, 2022’’: 
(1) Clauses (i) and (ii) of paragraph (2)(A). 
(2) Clauses (i)(I) and (ii) of paragraph (3)(A). 
(3) Paragraph (4). 
(4) Paragraph (6). 
(5) Subparagraphs (A) and (B) of paragraph 
(9). 
(6) Subparagraph (B) of paragraph (11). 
(c) EARLY TERMINATION IN EVENT OF FEDERAL 
RENEWABLE ELECTRICITY REQUIREMENT.—Subsection 
(d) of section 45 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new para-
graph: 
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‘‘(12) TERMINATION
IN
EVENT
OF
FEDERAL 
RENEWABLE
ELECTRICITY
REQUIREMENT.—Not-
withstanding any other provision of this section, the 
term ‘qualified facility’ shall not include any prop-
erty which is placed in service after the date which 
is 1 year after the date on which the Secretary of 
Energy makes a public declaration that a Federal 
law is in effect which requires retail electric sup-
pliers in the United States to supply minimum and 
significant amounts of electric energy which is gen-
erated from renewable sources to customers for pur-
poses other than resale.’’. 
SEC. 102. EXTENSION OF ELECTION OF INVESTMENT TAX 
CREDIT IN LIEU OF PRODUCTION CREDIT. 
(a) IN GENERAL.—Clause (ii) of section 48(a)(5)(C) 
of the Internal Revenue Code of 1986 is amended by strik-
ing ‘‘or 2013’’ and inserting ‘‘2013, 2014, 2015, 2016, 
2017, 2018, 2019, 2020, or 2021’’. 
(b) WIND
FACILITIES.—Clause (i) of section 
48(a)(5)(C) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘Any qualified facility’’ and all that 
follows and inserting ‘‘Any facility which is— 
‘‘(I) a qualified facility (within 
the meaning of section 45) described 
in paragraph (1) of section 45(d) if 
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such facility is placed in service in 
2009, 2010, 2011, 2012, 2013, 2014, 
2015, 2016, 2017, 2018, 2019, or 
2020, or 
‘‘(II) a qualifying offshore wind 
facility, if such facility is placed in 
service in 2009, 2010, 2011, 2012, 
2013, 2014, 2015, 2016, 2017, 2018, 
2019, 2020, or 2021.’’. 
(c) LIMITATION.—Paragraph 5 of section 48(a) of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new subparagraph: 
‘‘(E) LIMITATION.—The total amount of 
megawatt capacity for offshore facilities under 
clause (II) of subsection (a)(5)(C) with respect 
to which credits may be allocated under the 
program shall not exceed 3,000 megawatts.’’. 
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(d) QUALIFYING OFFSHORE WIND FACILITY.—Para-
graph (5) of section 48(a) of the Internal Revenue Code 
of 1986 is further amended by adding at the end the fol-
lowing new subparagraph: 
‘‘(F) QUALIFYING OFFSHORE WIND FACIL-
ITY.—For purposes of this paragraph— 
‘‘(i) IN GENERAL.—The term ‘quali-
fying offshore wind facility’ means an off-
shore facility using wind to produce elec-
tricity. 
‘‘(ii) OFFSHORE FACILITY.—The term 
‘offshore facility’ means any facility located 
in the inland navigable waters of the 
United States, including the Great Lakes, 
or in the coastal waters of the United 
States, including the territorial seas of the 
United States, the exclusive economic zone 
of the United States, and the Outer Conti-
nental Shelf of the United States. For pur-
poses of the preceding sentence, the term 
‘United States’ has the meaning given in 
section 638(1).’’. 
(e) AVAILABILITY
OF GRANTS
IN LIEU
OF TAX 
CREDITS.—Subparagraph (A) of section 1603(b)(2) of di-
vision B of the American Recovery and Reinvestment Act 
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of 2009 is amended by inserting ‘‘or section 48(a)(5) of 
the Internal Revenue Code of 1986’’ after ‘‘subsection 
(d)’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to facilities placed in service after 
December 31, 2011. 
SEC. 103. EXTENSION OF GRANTS FOR SPECIFIED ENERGY 
PROPERTY IN LIEU OF TAX CREDITS. 
(a) IN GENERAL.—Subsection (a) of section 1603 of 
division B of the American Recovery and Reinvestment 
Act of 2009 is amended— 
(1) in paragraph (1), by striking ‘‘or 2011’’ and 
inserting ‘‘2011, 2012, or 2013’’, and 
(2) in paragraph (2)— 
(A) by striking ‘‘after 2011’’ and inserting 
‘‘after 2013’’, and 
(B) by striking ‘‘or 2011’’ and inserting 
‘‘2011, 2012, or 2013’’. 
(b) CONFORMING AMENDMENT.—Subsection (j) of 
section 1603 of division B of such Act is amended by strik-
ing ‘‘2012’’ and inserting ‘‘2014’’. 
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SEC. 104. EXTENSION OF QUALIFYING ADVANCED ENERGY 
PROJECT CREDIT. 
Paragraph (1) of section 48C(d) of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subparagraph: 
‘‘(C) ADDITIONAL LIMITATION AMOUNT.— 
‘‘(i) IN GENERAL.—The dollar amount 
under subparagraph (B) is hereby in-
creased by $5,000,000,000. 
‘‘(ii) 
APPLICATIONS.—Notwith-
standing the deadline for submitting appli-
cations specified in paragraph (2)(A), an 
applicant for certification with respect to 
credits allocated pursuant to clause (i) may 
submit an application to the Secretary at 
such time and in such manner as the Sec-
retary may provide. 
‘‘(iii) REVIEW, REDISTRIBUTION, AND 
REALLOCATION.—Notwithstanding 
the 
deadline for review specified in paragraph 
(4)(A), the Secretary shall review the cred-
its allocated pursuant to clause (i) at such 
time as the Secretary determines appro-
priate.’’. 
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SEC. 105. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT 
NEW HOMES. 
(a) IN GENERAL.—Subsection (g) of section 45L of 
the Internal Revenue Code of 1986 is amended by striking 
‘‘December 31, 2011’’ and inserting ‘‘December 31, 
2012’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to homes acquired after December 
31, 2011. 
SEC. 106. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT 
APPLIANCES. 
(a) IN GENERAL.—Section 45M(b) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘2011’’ 
each place it appears other than in the provisions specified 
in subsection (b), and inserting ‘‘2011 or 2012’’. 
(b) PROVISIONS SPECIFIED.—The provisions of sec-
tion 45M(b) of the Internal Revenue Code of 1986 speci-
fied in this subsection are subparagraph (C) of paragraph 
(1) and subparagraph (E) of paragraph (2). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to appliances produced after De-
cember 31, 2011. 
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Subtitle B—Electric, Natural Gas, 
and Hydrogen Vehicles 
SEC. 111. INCREASE AND EXPANSION OF CREDIT FOR 
QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR 
VEHICLES. 
(a) INCREASE IN DOLLAR LIMITATION.—Paragraph 
(2) of section 30D(b) of the Internal Revenue Code of 
1986 is amended by striking ‘‘$2,500’’ and inserting 
‘‘$5,000’’. 
(b) INCREASE IN LIMITATION ON NUMBER OF VEHI-
CLES ELIGIBLE FOR CREDIT.—Paragraph (2) of section 
30D(e) of such Code is amended by striking ‘‘200,000’’ 
and inserting ‘‘400,000’’. 
(c) EFFECTIVE DATE.—The amendment made by 
this section shall apply to vehicles acquired after the date 
of the enactment of this Act. 
SEC. 112. EXTENSION OF NEW QUALIFIED ALTERNATIVE 
FUEL MOTOR VEHICLE CREDIT FOR HEAVY 
NATURAL GAS VEHICLES. 
(a) IN GENERAL.—Paragraph (4) of section 30B(k) 
of the Internal Revenue Code of 1986 is amended by in-
serting ‘‘(December 31, 2016, in the case of a vehicle pow-
ered by compressed or liquefied natural gas and weighing 
more than 8,500 pounds)’’ before the period at the end. 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to vehicles purchased after the date 
of the enactment of this Act. 
SEC. 113. MODIFICATION OF CREDIT FOR ALTERNATIVE 
FUEL VEHICLE REFUELING PROPERTY FOR 
VEHICLES POWERED BY ELECTRICITY, NAT-
URAL GAS, OR HYDROGEN. 
(a) SPECIAL RULES
FOR PROPERTY PLACED
IN 
SERVICE BEFORE JANUARY 1, 2017.—Subsection (e) of 
section 30C of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new para-
graph: 
‘‘(7) PROPERTY
FOR
RECHARGING
VEHICLES 
POWERED BY ELECTRICITY, NATURAL GAS, OR HY-
DROGEN.—In the case of property placed in service 
after December 31, 2011, and before January 1, 
2017, which relates to electricity, natural gas, or hy-
drogen— 
‘‘(A) subsection (a) shall be applied by 
substituting ‘50 percent’ for ‘30 percent’, 
‘‘(B) subsection (b)(1) shall be applied by 
substituting ‘$50,000’ for ‘$30,000’, and 
‘‘(C) subsection (b)(2) shall be applied by 
substituting ‘$2,000’ for ‘$1,000’.’’. 
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