H. R. 6—394
(2) by striking ‘‘January 1, 2006’’ in paragraph (4) and 
inserting ‘‘January 1, 2008 (January 1, 2006, in the case of 
a facility using solar energy)’’. 
(b) INCREASE IN CREDIT PERIOD.—Section 45(b)(4)(B) (relating 
to credit period) is amended— 
(1) by inserting ‘‘or clause (iii)’’ after ‘‘clause (ii)’’ in clause 
(i), and 
(2) by adding at the end the following: 
‘‘(iii) TERMINATION.—Clause (i) shall not apply to 
any facility placed in service after the date of the 
enactment of this clause.’’. 
(c) EXPANSION OF QUALIFIED RESOURCES TO CERTAIN HYDRO-
POWER.— 
(1) IN GENERAL.—Section 45(c)(1) (defining qualified energy 
resources) is amended by striking ‘‘and’’ at the end of subpara-
graph (F), by striking the period at the end of subparagraph 
(G) and inserting ‘‘, and’’, and by adding at the end the following 
new subparagraph: 
‘‘(H) qualified hydropower production.’’. 
(2) CREDIT
RATE.—Section 45(b)(4)(A) (relating to credit 
rate) is amended by striking ‘‘or (7)’’ and inserting ‘‘(7), or 
(9)’’. 
(3) DEFINITION OF RESOURCES.—Section 45(c) (relating to 
qualified energy resources and refined coal) is amended by 
adding at the end the following new paragraph: 
‘‘(8) QUALIFIED HYDROPOWER PRODUCTION.— 
‘‘(A) IN
GENERAL.—The term ‘qualified hydropower 
production’ means— 
‘‘(i) in the case of any hydroelectric dam which 
was placed in service on or before the date of the 
enactment of this paragraph, the incremental hydro-
power production for the taxable year, and 
‘‘(ii) in the case of any nonhydroelectric dam 
described in subparagraph (C), the hydropower produc-
tion from the facility for the taxable year. 
‘‘(B) DETERMINATION
OF
INCREMENTAL
HYDROPOWER 
PRODUCTION.— 
‘‘(i) IN GENERAL.—For purposes of subparagraph 
(A), incremental hydropower production for any taxable 
year shall be equal to the percentage of average annual 
hydropower production at the facility attributable to 
the efficiency improvements or additions of capacity 
placed in service after the date of the enactment of 
this paragraph, determined by using the same water 
flow information used to determine an historic average 
annual hydropower production baseline for such 
facility. Such percentage and baseline shall be certified 
by the Federal Energy Regulatory Commission. 
‘‘(ii) OPERATIONAL
CHANGES
DISREGARDED.—For 
purposes of clause (i), the determination of incremental 
hydropower production shall not be based on any oper-
ational changes at such facility not directly associated 
with the efficiency improvements or additions of 
capacity. 
‘‘(C) 
NONHYDROELECTRIC
DAM.—For 
purposes 
of 
subparagraph (A), a facility is described in this subpara-
graph if—
H. R. 6—395
‘‘(i) the facility is licensed by the Federal Energy 
Regulatory Commission and meets all other applicable 
environmental, licensing, and regulatory requirements, 
‘‘(ii) the facility was placed in service before the 
date of the enactment of this paragraph and did not 
produce hydroelectric power on the date of the enact-
ment of this paragraph, and 
‘‘(iii) turbines or other generating devices are to 
be added to the facility after such date to produce 
hydroelectric power, but only if there is not any 
enlargement of the diversion structure, or construction 
or enlargement of a bypass channel, or the impound-
ment or any withholding of any additional water from 
the natural stream channel.’’. 
(4) FACILITIES.—Section 45(d) (relating to qualified facili-
ties) is amended by adding at the end the following new para-
graph: 
‘‘(9) QUALIFIED HYDROPOWER FACILITY.—In the case of a 
facility producing qualified hydroelectric production described 
in subsection (c)(8), the term ‘qualified facility’ means— 
‘‘(A) in the case of any facility producing incremental 
hydropower production, such facility but only to the extent 
of its incremental hydropower production attributable to 
efficiency improvements or additions to capacity described 
in subsection (c)(8)(B) placed in service after the date of 
the enactment of this paragraph and before January 1, 
2008, and 
‘‘(B) any other facility placed in service after the date 
of the enactment of this paragraph and before January 
1, 2008. 
‘‘(C) CREDIT PERIOD.—In the case of a qualified facility 
described in subparagraph (A), the 10-year period referred 
to in subsection (a) shall be treated as beginning on the 
date the efficiency improvements or additions to capacity 
are placed in service.’’. 
(d) INDIAN COAL.— 
(1) PRODUCTION FACILITIES.—Subsection (e) of section 45 
(relating to definitions and special rules) is amended by adding 
at the end the following new paragraph: 
‘‘(10) INDIAN COAL PRODUCTION FACILITIES.— 
‘‘(A) DETERMINATION OF CREDIT AMOUNT.—In the case 
of a producer of Indian coal, the credit determined under 
this section (without regard to this paragraph) for any 
taxable year shall be increased by an amount equal to 
the applicable dollar amount per ton of Indian coal— 
‘‘(i) produced by the taxpayer at an Indian coal 
production facility during the 7-year period beginning 
on January 1, 2006, and 
‘‘(ii) sold by the taxpayer— 
‘‘(I) to an unrelated person, and 
‘‘(II) during such 7-year period and such tax-
able year. 
‘‘(B) APPLICABLE DOLLAR AMOUNT.— 
‘‘(i) IN
GENERAL.—The term ‘applicable dollar 
amount’ for any taxable year beginning in a calendar 
year means—
H. R. 6—396
‘‘(I) $1.50 in the case of calendar years 2006 
through 2009, and 
‘‘(II) $2.00 in the case of calendar years begin-
ning after 2009. 
‘‘(ii) INFLATION ADJUSTMENT.—In the case of any 
calendar year after 2006, each of the dollar amounts 
under clause (i) shall be equal to the product of such 
dollar amount and the inflation adjustment factor 
determined under paragraph (2)(B) for the calendar 
year, except that such paragraph shall be applied by 
substituting ‘2005’ for ‘1992’. 
‘‘(C) APPLICATION OF RULES.—Rules similar to the rules 
of the subsection (b)(3) and paragraphs (1), (3), (4), and 
(5) of this subsection shall apply for purposes of deter-
mining the amount of any increase under this paragraph. 
‘‘(D) TREATMENT AS SPECIFIED CREDIT.—The increase 
in the credit determined under subsection (a) by reason 
of this paragraph with respect to any facility shall be 
treated as a specified credit for purposes of section 
38(c)(4)(A) during the 4-year period beginning on the later 
of January 1, 2006, or the date on which such facility 
is placed in service by the taxpayer.’’. 
(2) RESOURCE.—Subsection (c) of section 45 (relating to 
qualified energy resources and refined coal), as amended by 
this Act, is amended by adding at the end the following new 
paragraph: 
‘‘(9) INDIAN COAL.— 
‘‘(A) IN GENERAL.—The term ‘Indian coal’ means coal 
which is produced from coal reserves which, on June 14, 
2005— 
‘‘(i) were owned by an Indian tribe, or 
‘‘(ii) were held in trust by the United States for 
the benefit of an Indian tribe or its members. 
‘‘(B) INDIAN TRIBE.—For purposes of this paragraph, 
the term ‘Indian tribe’ has the meaning given such term 
by section 7871(c)(3)(E)(ii).’’. 
(3) INDIAN COAL PRODUCTION FACILITY.—Subsection (d) of 
section 45, as amended by this Act, is amended by adding 
at the end the following new paragraph: 
‘‘(10) INDIAN COAL PRODUCTION FACILITY.—The term ‘Indian 
coal production facility’ means a facility which is placed in 
service before January 1, 2009.’’. 
(4) CONFORMING
AMENDMENT.—The heading for section 
45(c) is amended by striking ‘‘QUALIFIED ENERGY RESOURCES 
AND REFINED COAL’’ and inserting ‘‘RESOURCES’’. 
(e) TECHNICAL AMENDMENT RELATED TO TRASH COMBUSTION 
FACILITIES.—Section 45(d)(7) (relating to trash combustion facilities) 
is amended by adding at the end the following: ‘‘Such term shall 
include a new unit placed in service in connection with a facility 
placed in service on or before the date of the enactment of this 
paragraph, but only to the extent of the increased amount of elec-
tricity produced at the facility by reason of such new unit.’’. 
(f) ADDITIONAL TECHNICAL AMENDMENTS RELATED TO SECTION 
710 OF THE AMERICAN JOBS CREATION ACT OF 2004.— 
(1) Clause (ii) of section 45(b)(4)(B) is amended by striking 
‘‘the date of the enactment of this Act’’ and inserting ‘‘January 
1, 2005,’’.
H. R. 6—397
(2) Clause (ii) of section 45(c)(3)(A) is amended by inserting 
‘‘or any nonhazardous lignin waste material’’ after ‘‘cellulosic 
waste material’’. 
(3) Subsection (e) of section 45 is amended by striking 
paragraph (6). 
(4)(A) Paragraph (9) of section 45(e) is amended to read 
as follows: 
‘‘(9) COORDINATION WITH CREDIT FOR PRODUCING FUEL FROM 
A NONCONVENTIONAL SOURCE.— 
‘‘(A) IN GENERAL.—The term ‘qualified facility’ shall 
not include any facility which produces electricity from 
gas derived from the biodegradation of municipal solid 
waste if such biodegradation occurred in a facility (within 
the meaning of section 29) the production from which is 
allowed as a credit under section 29 for the taxable year 
or any prior taxable year. 
‘‘(B) REFINED COAL FACILITIES.—The term ‘refined coal 
production facility’ shall not include any facility the produc-
tion from which is allowed as a credit under section 29 
for the taxable year or any prior taxable year.’’. 
(B) Subparagraph (C) of section 45(e)(8) is amended by 
striking ‘‘and (9)’’. 
(5) Subclause (I) of section 168(e)(3)(B)(vi) is amended to 
read as follows: 
‘‘(I) is described in subparagraph (A) of section 
48(a)(3) (or would be so described if ‘solar and 
wind’ were substituted for ‘solar’ in clause (i) 
thereof and the last sentence of such section did 
not apply to such subparagraph),’’. 
(6) Paragraph (4) of section 710(g) of the American Jobs 
Creation Act of 2004 is amended by striking ‘‘January 1, 2004’’ 
and inserting ‘‘January 1, 2005’’. 
(g) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendments made by this section shall take effect of the date 
of the enactment of this Act. 
(2) TECHNICAL AMENDMENTS.—The amendments made by 
subsections (e) and (f) shall take effect as if included in the 
amendments made by section 710 of the American Jobs Cre-
ation Act of 2004. 
SEC. 1302. APPLICATION OF SECTION 45 CREDIT TO AGRICULTURAL 
COOPERATIVES. 
(a) IN GENERAL.—Section 45(e) (relating to definitions and spe-
cial rules), as amended by this Act, is amended by adding at 
the end the following: 
‘‘(11) ALLOCATION OF CREDIT TO PATRONS OF AGRICULTURAL 
COOPERATIVE.— 
‘‘(A) ELECTION TO ALLOCATE.— 
‘‘(i) IN GENERAL.—In the case of an eligible coopera-
tive organization, any portion of the credit determined 
under subsection (a) for the taxable year may, at the 
election of the organization, be apportioned among 
patrons of the organization on the basis of the amount 
of business done by the patrons during the taxable 
year.