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‘‘(ii) FORM
AND
EFFECT
OF
ELEC-
TION.—An election under clause (i) for any 
taxable year shall be made on a timely filed 
return for such year. Such election, once 
made, shall be irrevocable for such taxable 
year. Such election shall not take effect un-
less the organization designates the appor-
tionment as such in a written notice mailed 
to its patrons during the payment period 
described in section 1382(d). 
‘‘(B) TREATMENT OF ORGANIZATIONS AND 
PATRONS.— 
‘‘(i) ORGANIZATIONS.—The amount of 
the credit not apportioned to patrons pursu-
ant to subparagraph (A) shall be included 
in the amount determined under subsection 
(a)(3) for the taxable year of the organiza-
tion. 
‘‘(ii) PATRONS.—The amount of the 
credit apportioned to patrons pursuant to 
subparagraph (A) shall be included in the 
amount determined under such subsection 
for the first taxable year of each patron end-
ing on or after the last day of the payment 
period (as defined in section 1382(d)) for
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the taxable year of the organization or, if 
earlier, for the taxable year of each patron 
ending on or after the date on which the pa-
tron receives notice from the cooperative of 
the apportionment. 
‘‘(iii) SPECIAL RULES FOR DECREASE 
IN
CREDITS
FOR
TAXABLE
YEAR.—If the 
amount of the credit of the organization de-
termined under such subsection for a tax-
able year is less than the amount of such 
credit shown on the return of the organiza-
tion for such year, an amount equal to the 
excess of— 
‘‘(I) such reduction, over 
‘‘(II) the amount not apportioned 
to such patrons under subparagraph 
(A) for the taxable year, 
shall be treated as an increase in tax im-
posed by this chapter on the organization. 
Such increase shall not be treated as tax 
imposed by this chapter for purposes of de-
termining the amount of any credit under 
this chapter or for purposes of section 55.’’. 
(d) CONFORMING AMENDMENTS.—
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(1) Paragraph (4) of section 40A(b) is amended 
by striking ‘‘this section’’ and inserting ‘‘paragraph 
(1) or (2) of subsection (a)’’. 
(2) The heading of subsection (b) of section 40A 
is amended by striking ‘‘AND BIODIESEL CREDIT’’ 
and inserting ‘‘, BIODIESEL CREDIT, AND SMALL 
AGRI-BIODIESEL PRODUCER CREDIT’’. 
(3) Paragraph (3) of section 40A(d) is amended 
by redesignating subparagraph (C) as subparagraph 
(D) and by inserting after subparagraph (B) the fol-
lowing new subparagraph: 
‘‘(C) PRODUCER CREDIT.—If— 
‘‘(i) any credit was determined under 
subsection (a)(3), and 
‘‘(ii) any person does not use such fuel 
for a purpose described in subsection 
(b)(5)(B), 
then there is hereby imposed on such person a 
tax equal to 10 cents a gallon for each gallon of 
such agri-biodiesel.’’. 
(e) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years ending after the date 
of the enactment of this Act.
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SEC. 1544. IMPROVEMENTS TO SMALL ETHANOL PRODUCER 
CREDIT. 
(a) DEFINITION OF SMALL ETHANOL PRODUCER.— 
Section 40(g) (relating to definitions and special rules for 
eligible small ethanol producer credit) is amended by strik-
ing ‘‘30,000,000’’ each place it appears and inserting 
‘‘60,000,000’’. 
(b) WRITTEN NOTICE OF ELECTION TO ALLOCATE 
CREDIT TO PATRONS.—Section 40(g)(6)(A)(ii) (relating to 
form and effect of election) is amended by adding at the 
end the following new sentence: ‘‘Such election shall not take 
effect unless the organization designates the apportionment 
as such in a written notice mailed to its patrons during 
the payment period described in section 1382(d).’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years ending after the date 
of the enactment of this Act. 
SEC. 1545. CREDIT FOR EQUIPMENT FOR PROCESSING OR 
SORTING MATERIALS GATHERED THROUGH 
RECYCLING. 
(a) IN GENERAL.—Subpart D of part IV of subchapter 
A of chapter 1 (relating to business-related credits), as 
amended by this Act, is amended by adding at the end the 
following new section:
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‘‘SEC. 45M. CREDIT FOR QUALIFIED RECYCLING EQUIP-
MENT. 
‘‘(a) ALLOWANCE OF CREDIT.—For purposes of section 
38, the qualified recycling equipment credit determined 
under this section for the taxable year is an amount equal 
to the amount paid or incurred during the taxable year for 
the cost of qualified recycling equipment placed in service 
or leased by the taxpayer. 
‘‘(b) LIMITATION.—The amount allowable as a credit 
under subsection (a) with respect to any qualified recycling 
equipment shall not exceed— 
‘‘(1) in the case of such equipment described in 
subsection (c)(1)(A)(i), 15 percent of the cost of such 
equipment, and 
‘‘(2) in the case of such equipment described in 
subsection (c)(1)(A)(ii), 15 percent of so much of the 
cost of each piece of equipment as exceeds $400,000. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) QUALIFIED RECYCLING EQUIPMENT.— 
‘‘(A) IN GENERAL.—The term ‘qualified re-
cycling equipment’ means equipment, including 
connecting piping— 
‘‘(i) employed in sorting or processing 
residential and commercial qualified recy-
clable materials described in paragraph 
(2)(A) for the purpose of converting such
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materials for use in manufacturing tangible 
consumer products, including packaging, or 
‘‘(ii) the primary purpose of which is 
the shredding and processing of qualified re-
cyclable materials described in paragraph 
(2)(B). 
‘‘(B) EQUIPMENT AT COMMERCIAL OR PUB-
LIC VENUES INCLUDED.—For purposes of sub-
paragraph (A)(i), such term includes equipment 
which is utilized at commercial or public venues, 
including recycling collection centers, where the 
equipment is utilized to sort or process qualified 
recyclable materials for such purpose. 
‘‘(C) EXCLUSION.—Such term does not in-
clude rolling stock or other equipment used to 
transport recyclable materials. 
‘‘(2) QUALIFIED RECYCLABLE MATERIALS.—The 
term ‘qualified recyclable materials’ means— 
‘‘(A) any packaging or printed material 
which is glass, paper, plastic, steel, or alu-
minum, and 
‘‘(B) any electronic waste (including any 
cathode ray tube, flat panel screen, or similar 
video display device with a screen size greater
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than 4 inches measured diagonally, or a central 
processing unit), 
generated by an individual or business and which has 
been separated from solid waste for the purposes of 
collection and recycling. 
‘‘(3) PROCESSING.—The term ‘processing’ means 
the preparation of qualified recyclable materials into 
feedstock for use in manufacturing tangible consumer 
products. 
‘‘(d) AMOUNT PAID OR INCURRED.—For purposes of 
this section— 
‘‘(1) IN GENERAL.—The term ‘amount paid or 
incurred’ includes installation costs. 
‘‘(2) LEASE PAYMENTS.—In the case of the leas-
ing of qualified recycling equipment by the taxpayer, 
the term ‘amount paid or incurred’ means the 
amount of the lease payments due to be paid during 
the term of the lease occurring during the taxable year 
other than such portion of such lease payments attrib-
utable to interest, insurance, and taxes. 
‘‘(3) 
GRANTS, 
ETC. 
EXCLUDED.—The 
term 
‘amount paid or incurred’ shall not include any 
amount to the extent such amount is funded by any 
grant, contract, or otherwise by another person (or 
any governmental entity).
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‘‘(e) OTHER TAX DEDUCTIONS AND CREDITS AVAIL-
ABLE FOR PORTION OF COST NOT TAKEN INTO ACCOUNT 
FOR CREDIT UNDER THIS SECTION.—No deduction or 
other credit under this chapter shall be allowed with respect 
to the amount of the credit determined under this section. 
‘‘(f) BASIS ADJUSTMENTS.—For purposes of this sub-
title, if a credit is allowed under this section for any 
amount paid or incurred with respect to any property, the 
increase in the basis of such property which would (but for 
this subsection) result from such expenditure shall be re-
duced by the amount of the credit so allowed.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) CREDIT MADE PART OF GENERAL BUSINESS 
CREDIT.—Subsection (b) of section 38, as amended by 
this Act, is amended by striking ‘‘plus’’ at the end of 
paragraph (21), by striking the period at the end of 
paragraph (22) and inserting ‘‘, plus’’, and by add-
ing at the end the following new paragraph: 
‘‘(23) the qualified recycling equipment credit 
determined under section 45M(a).’’. 
(2) Subsection (a) of section 1016, as amended 
by this Act, is amended by striking ‘‘and’’ at the end 
of paragraph (37), by striking the period at the end 
of paragraph (38) and inserting ‘‘; and’’, and by add-
ing at the end the following new paragraph:
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‘‘(39) to the extent provided in section 45M(f), in 
the case of amounts with respect to which a credit has 
been allowed under section 45M.’’. 
(3) The table of sections for subpart D of part 
IV of subchapter A of chapter 1, as amended by this 
Act, is amended by inserting after the item relating 
to section 45L the following new item: 
‘‘Sec. 45M. Credit for qualified recycling equipment.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2005. 
SEC. 1546. 5-YEAR NET OPERATING LOSS CARRYOVER IF 
ANY RESULTING REFUND IS USED FOR ELEC-
TRIC TRANSMISSION EQUIPMENT. 
(a) IN GENERAL.—Paragraph (1) of section 172(b) 
(relating to net operating loss carrybacks and carryovers) 
is amended by adding at the end the following new subpara-
graph: 
‘‘(I) 
TRANSMISSION
PROPERTY
INVEST-
MENT.— 
‘‘(i) IN GENERAL.—In the case of a net 
operating loss in a taxable year ending 
after December 31, 2002, and before Janu-
ary 1, 2006, there shall be a net operating 
loss carryback to each of the 5 years pre-
ceding the taxable year of such loss to the
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extent that any refund resulting from such 
carryback is used for electric transmission 
property capital expenditures or pollution 
control facility capital expenditures. 
‘‘(ii) REFUND CLAIM.—Any refund re-
sulting from the application of clause (i) 
may be claimed by the taxpayer during any 
taxable year ending after December 31, 
2005, and before January 1, 2009, except 
that the portion of such refund which may 
be claimed during any taxable year shall 
not exceed the sum of the taxpayer’s electric 
transmission property capital expenditures 
and pollution control facility capital ex-
penditures made in the preceding taxable 
year. 
‘‘(iii) CARRYOVER
OF
EXCESS
RE-
FUNDS.—Any portion of such refund that 
exceeds the sum of the taxpayer’s electric 
transmission property capital expenditures 
and pollution control facility capital ex-
penditures made during the preceding tax-
able year shall, subject to clause (ii), be con-
sidered a refund due to the taxpayer and 
claimed in the succeeding taxable year if
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such taxable year begins before January 1, 
2009. 
‘‘(iv) DEFINITIONS.—For purposes of 
this subparagraph— 
‘‘(I) 
ELECTRIC
TRANSMISSION 
PROPERTY CAPITAL EXPENDITURES.— 
The term ‘electric transmission prop-
erty capital expenditures’ means any 
expenditure, chargeable to capital ac-
count, made by the taxpayer which is 
attributable to electric transmission 
property used in the transmission at 
69 or more kilovolts of electricity for 
sale. 
‘‘(II) POLLUTION CONTROL FACIL-
ITY
CAPITAL
EXPENDITURES.—The 
term ‘pollution control facility capital 
expenditures’ means any expenditure, 
chargeable to capital account, made by 
an electric utility company (as defined 
in section 2(3) of the Public Utility 
Holding Company Act (15 U.S.C. 
79b(3)) which is attributable to a facil-
ity which will qualify as a certified 
pollution control facility as determined
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under section 169(d)(1) by striking ‘be-
fore January 1, 1976,’ and by sub-
stituting ‘an identifiable’ for ‘a new 
identifiable’.’’ 
(b) ELECTION TO DISREGARD CARRYBACK.—Section 
172(j) (relating to disregard 5-year carryback for certain 
net operating losses) is amended by inserting ‘‘or (b)(1)(I)’’ 
after ‘‘(b)(1)(H)’’ both places it appears. 
(c) APPLICATION.—In the case of a net operating loss 
described in section 172(b)(1)(I) of the Internal Revenue 
Code of 1986 (as added by subsection (a)) for a taxable year 
ending in 2003, 2004, or 2005, any election made under 
section 172(j) of such Code (as amended by subsection (b)) 
shall be treated as timely made if made before January 1, 
2009. 
SEC. 1547. CREDIT FOR QUALIFYING POLLUTION CONTROL 
EQUIPMENT. 
(a) ALLOWANCE OF QUALIFYING POLLUTION CONTROL 
EQUIPMENT CREDIT.—Section 46 (relating to amount of 
credit), as amended by this Act, 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 qualifying pollution control equipment 
credit.’’.
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(b) AMOUNT
OF QUALIFYING POLLUTION CONTROL 
EQUIPMENT CREDIT.—Subpart E of part IV of subchapter 
A of chapter 1 (relating to rules for computing investment 
credit), as amended by this Act, is amended by inserting 
after section 48C the following new section: 
‘‘SEC. 48D. QUALIFYING POLLUTION CONTROL EQUIPMENT 
CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 46, the 
qualifying pollution control equipment credit for any tax-
able year is an amount equal to 15 percent of the basis 
of the qualifying pollution control equipment placed in 
service at a qualifying facility during such taxable year. 
‘‘(b) 
QUALIFYING
POLLUTION
CONTROL
EQUIP-
MENT.—For purposes of this section, the term ‘qualifying 
pollution control equipment’ means any technology in-
stalled in or on a qualifying facility to reduce air emissions 
of any pollutant regulated by the Environmental Protection 
Agency under the Clean Air Act, including thermal 
oxidizers, regenerative thermal oxidizers, scrubber systems, 
evaporative control systems, vapor recovery systems, flair 
systems, bag houses, cyclones, continuous emissions moni-
toring systems, and low nitric oxide burners. 
‘‘(c) QUALIFYING FACILITY.—For purposes of this sec-
tion, the term ‘qualifying facility’ means any facility which
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produces not less than 1,000,000 gallons of ethanol during 
the taxable year. 
‘‘(d) SPECIAL RULE FOR CERTAIN SUBSIDIZED PROP-
ERTY.—Rules similar to section 48(a)(4) shall apply for 
purposes of this section. 
‘‘(e) 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 the enactment of the Revenue Reconciliation Act 
of 1990) shall apply for purposes of this subsection.’’. 
(c) RECAPTURE OF CREDIT WHERE EMISSIONS RE-
DUCTION OFFSET IS SOLD.—Paragraph (1) of section 50(a) 
is amended by redesignating subparagraph (B) as subpara-
graph (C) and by inserting after subparagraph (A) the fol-
lowing new subparagraph: 
‘‘(B) SPECIAL RULE FOR QUALIFYING POL-
LUTION CONTROL EQUIPMENT.—For purposes of 
subparagraph (A), any investment property 
which is qualifying pollution control equipment 
(as defined in section 48D(b)) shall cease to be 
investment credit property with respect to a tax-
payer if such taxpayer receives a payment in ex-
change for a credit for emission reductions at-
tributable to such qualifying pollution control
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equipment for purposes of an offset requirement 
under part D of title I of the Clean Air Act.’’. 
(d) SPECIAL RULE FOR BASIS REDUCTION; RECAP-
TURE OF CREDIT.—Paragraph (3) of section 50(c) (relating 
to basis adjustment to investment credit property), as 
amended by this Act, is amended by inserting ‘‘or quali-
fying pollution control equipment credit’’ after ‘‘energy 
credit’’. 
(e) CONFORMING AMENDMENTS.— 
(1) Section 49(a)(1)(C), as amended by this Act, 
is amended by striking ‘‘and’’ at the end of clause 
(iv), by striking the period at the end of clause (v) 
and inserting ‘‘, and’’, and by adding at the end the 
following new clause: 
‘‘(vi) the basis of any qualifying pollu-
tion control equipment.’’ 
(2) The table of sections for subpart E of part IV 
of subchapter A of chapter 1, as amended by this Act, 
is amended by inserting after the item relating to sec-
tion 48C the following new item: 
‘‘48D. Qualifying pollution control equipment.’’. 
(f) EFFECTIVE DATE.—The amendments made by this 
section shall apply to periods after the date of the enactment 
of this Act, in taxable years ending after such date, 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
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date of the enactment of the Revenue Reconciliation Act of 
1990). 
SEC. 1548. CREDIT FOR PRODUCTION OF COAL OWNED BY 
INDIAN TRIBES. 
(a) IN GENERAL.—Subpart D of part IV of subchapter 
A of chapter 1 (relating to business-related credits), as 
amended by this Act, is amended by adding at the end the 
following new section: 
‘‘SEC. 45N. CREDIT FOR PRODUCTION OF COAL OWNED BY 
INDIAN TRIBES. 
‘‘(a) ALLOWANCE OF CREDIT.—For purposes of section 
38, the Indian coal production credit determined under this 
section for the taxable year is an amount equal to the prod-
uct of— 
‘‘(1) the applicable dollar amount for the cal-
endar year in which the taxable year begins, and 
‘‘(2) the number of tons of Indian coal— 
‘‘(A) the production of which is attributable 
to the taxpayer (determined under rules similar 
to the rules under section 29(d)(3)), and 
‘‘(B) which is sold by the taxpayer to an 
unrelated person during the taxable year. 
‘‘(b) INDIAN COAL.—For purposes of this section—
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‘‘(1) IN
GENERAL.—The term ‘Indian coal’ 
means coal which is produced from coal reserves 
which, on June 14, 2005— 
‘‘(A) were owned by an Indian tribe, or 
‘‘(B) were held in trust by the United States 
for the benefit of an Indian tribe or its members. 
‘‘(2) INDIAN TRIBE.—For purposes of this sub-
section, the term ‘Indian tribe’ has the meaning given 
such term by section 7871(c)(3)(E)(ii). 
‘‘(c) OTHER TERMS.—For purposes of this section— 
‘‘(1) APPLICABLE DOLLAR AMOUNT.— 
‘‘(A) IN
GENERAL.—The term ‘applicable 
dollar amount’ means— 
‘‘(i) $1.50 in the case of calendar years 
2006 through 2009, and 
‘‘(ii) $2.00 in the case of calendar 
years beginning after 2009. 
‘‘(B) INFLATION ADJUSTMENT.—In the case 
of any calendar year after 2006, each of the dol-
lar amounts under subparagraph (A) shall be 
equal to the product of such dollar amount and 
the inflation adjustment factor determined under 
section 45(e)(2)(B) for the calendar year, except 
that such section shall be applied by substituting 
‘2005’ for ‘1992’.
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‘‘(2) UNRELATED PERSON.—The term ‘unrelated 
person’ has the same meaning as when such term is 
used in section 45. 
‘‘(d) TERMINATION.—This section shall not apply to 
sales after December 31, 2012.’’ 
(b) CREDIT MADE PART
OF GENERAL BUSINESS 
CREDIT.—Subsection (b) of section 38, as amended by this 
Act, 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 fol-
lowing new paragraph: 
‘‘(24) the Indian coal production credit deter-
mined under section 45N(a).’’. 
(c) ALLOWANCE AGAINST MINIMUM TAX.—Section 
38(c)(4) (relating to specified credits) is amended by strik-
ing the period at the end of clause (ii) and inserting ‘‘, 
or’’ and by adding at the end the following: 
‘‘(iii) the credit determined under sec-
tion 45N.’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to sales after December 31, 2005.
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SEC. 1549. CREDIT FOR REPLACEMENT STOVES MEETING 
ENVIRONMENTAL STANDARDS IN NON-AT-
TAINMENT AREAS. 
(a) IN GENERAL.—Subpart A of part IV of subchapter 
A of chapter 1 (relating to nonrefundable personal credits), 
as amended by this Act, is amended by inserting after sec-
tion 25D the following new section: 
‘‘SEC. 25E. REPLACEMENT STOVES IN AREAS WITH POOR 
AIR QUALITY. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an indi-
vidual, there shall be allowed as a credit against the tax 
imposed by this chapter for the taxable year an amount 
equal to the lesser— 
‘‘(1) the qualified stove replacement expenditures 
of the taxpayer for the taxable year, or 
‘‘(2) $500 multiplied by the number of non-
compliant wood stoves replaced by the taxpayer dur-
ing the taxable year. 
‘‘(b) QUALIFIED
STOVE
REPLACEMENT
EXPENDI-
TURES.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified stove re-
placement expenditures’ means expenditures made by 
the taxpayer for the installation of a compliant stove 
which— 
‘‘(A) is installed in a dwelling unit which—
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‘‘(i) is located in the United States in 
an area which, at the time of the installa-
tion, is designated by the Environmental 
Protection Agency as a non-attainment 
area for particulate matter less than 2.5 
micrometers in diameter or a non-attain-
ment area for particulate matter less than 
10 micrometers in diameter, and 
‘‘(ii) is used as a residence, and 
‘‘(B) replaces a noncompliant wood stove 
used in the dwelling unit. 
Such term includes expenditures for labor costs prop-
erly allocable to the onsite preparation, assembly, or 
original installation of the compliant stove. 
‘‘(2) COMPLIANT STOVE.—The term ‘compliant 
stove’ means a solid fuel burning stove which meets 
the requirements set forth in the ‘Standards of Per-
formance for Residential Wood Heaters’ issued by the 
Environmental Protection Agency. 
‘‘(3) NONCOMPLIANT
WOOD
STOVE.—The term 
‘noncompliant wood stove’ means any wood stove 
other than a compliant stove. 
‘‘(c) OTHER RULES.—Rules similar to the rules of 
paragraphs (3) and (4) of section 25C(d) shall apply for 
purposes of this section.
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‘‘(d) BASIS ADJUSTMENT.—If an expenditure to which 
this section applies results in an increase in basis in any 
property, the increase shall be reduced by the amount of 
the credit allowed under this section with respect to the ex-
penditure. 
‘‘(e) TERMINATION.—This section shall not apply to 
expenditures made after December 31, 2008.’’ 
(b) CONFORMING AMENDMENTS.— 
(1) Subsection (a) of section 1016, as amended 
by this Act, is amended by striking ‘‘and’’ at the end 
of paragraph (38), by striking the period at the end 
of paragraph (39) and inserting ‘‘, and’’, and by add-
ing at the end the following new paragraph: 
‘‘(40) to the extent provided in section 25E(e), in 
the case of amounts with respect to which a credit has 
been allowed under section 25E.’’. 
(2) The table of sections for subpart A of part IV 
of subchapter A of chapter 1, as amended by this Act, 
is amended by inserting after the item relating to sec-
tion 25D the following new item: 
‘‘Sec. 25E. Replacement stoves in areas with poor air quality.’’. 
(c) EFFECTIVE DATES.—The amendments made by 
this section shall apply to expenditures for stoves purchased 
after the date of the enactment of this Act.
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SEC. 1550. EXEMPTION FOR EQUIPMENT FOR TRANS-
PORTING BULK BEDS OF FARM CROPS FROM 
EXCISE TAX ON RETAIL SALE OF HEAVY 
TRUCKS AND TRAILERS. 
(a) IN GENERAL.—Section 4053 of the Internal Rev-
enue Code of 1986 (relating to exemptions) is amended by 
adding at the end the following new paragraph: 
‘‘(9) BULK
BEDS
FOR
TRANSPORTING
FARM 
CROPS.—Any box, container, receptacle, bin, or other 
similar article the length of which does not exceed 26 
feet, which is mounted or placed on an automobile 
truck, and which is sold to a person who certifies to 
the seller that— 
‘‘(A) such person is actively engaged in the 
trade or business of farming, and 
‘‘(B) the primary use of the article is to 
haul to farms (and on farms) farm crops grown 
in connection with such trade or business.’’. 
(b) RECAPTURE
OF TAX UPON RESALE
OR NON-
EXEMPT USE.—Section 4052 (relating to definitions and 
special rules) is amended by redesignating subsection (g) 
as subsection (h) and by inserting after subsection (f) the 
following new subsection: 
‘‘(g) IMPOSITION OF TAX ON SALES, ETC., WITHIN 2 
YEARS OF BULK BEDS FOR TRANSPORTING FARM CROPS 
PURCHASED TAX-FREE.—
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‘‘(1) IN GENERAL.—If— 
‘‘(A) no tax was imposed under section 
4051 on the first retail sale of any article de-
scribed in section 4053(9) by reason of its ex-
empt use, and 
‘‘(B) within 2 years after the date of such 
first retail sale, such article is resold by the pur-
chaser or such purchaser makes a substantial 
nonexempt use of such article, 
then such sale or use of such article by such purchaser 
shall be treated as the first retail sale of such article 
for a price equal to its fair market value at the time 
of such sale or use. 
‘‘(2) EXEMPT USE.—For purposes of this sub-
section, the term ‘exempt use’ means any use of an 
article described in section 4053(9) if the first retail 
sale of such article is not taxable under section 4051 
by reason of such use.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to sales after September 30, 2005. 
SEC. 1551. NATIONAL ACADEMY OF SCIENCES STUDY AND 
REPORT. 
(a) STUDY.—Not later than 60 days after the date of 
the enactment of this Act, the Secretary of the Treasury 
shall enter into an agreement with the National Academy