I
106TH CONGRESS
1ST SESSION
H. R. 750
To amend the Internal Revenue Code of 1986 to provide a 5-year extension
of the credit for producing electricity from wind, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 11, 1999
Mr. THOMAS (for himself, Ms. DUNN, Mr. SALMON, Mr. HINCHEY, Mr.
RAMSTAD, Mr. MINGE, Mr. MATSUI, Mr. BOYD, Mr. EHLERS, Mr.
KLECZKA, Mr. BEREUTER, Mr. POMEROY, Mr. GEORGE MILLER of Cali-
fornia, Mr. LEACH, Mr. STUPAK, Mr. HASTINGS of Florida, Mrs. THUR-
MAN, Mr. KUCINICH, Mr. LEVIN, Mr. DEUTSCH, Mr. FOLEY, Mr. DAVIS
of Florida, Mr. UDALL of Colorado, Mr. WELLER, Mr. EWING, Mr.
BOEHLERT, Mr. LEWIS of Georgia, Mrs. MEEK of Florida, Mr. HOUGH-
TON, Mr. MCDERMOTT, Mr. PALLONE, Mr. FROST, Mrs. BONO, Mr.
STEARNS, Mr. DEFAZIO, Mr. ABERCROMBIE, Mr. BALDACCI, Mr. NEAL
of Massachusetts, Mr. BROWN of Ohio, Mr. TAUZIN, Mr. PORTMAN, Mr.
SHAW, Mr. LATHAM, Mr. OBERSTAR, Mr. GORDON, Mr. CARDIN, Mr.
BECERRA, Mr. MCCRERY, Mr. WATKINS, Mr. HALL of Texas, Mr. SAND-
ERS, Mr. SHAYS, Mr. SCOTT, Mrs. CAPPS, Ms. RIVERS, Ms. ROS-
LEHTINEN, Mr. WEXLER, Ms. WOOLSEY, Mr. EVANS, Mr. SCHAFFER,
and Mr. DIAZ-BALART) 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 5-year extension of the credit for producing electricity
from wind, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. 5-YEAR EXTENSION OF CREDIT FOR PRODUC-
ING ELECTRICITY FROM WIND.
(a) IN GENERAL.—Paragraph (3) of section 45(c) of
the Internal Revenue Code of 1986 (defining qualified fa-
cility) is amended to read as follows:
‘‘(3) QUALIFIED FACILITY.—The term ‘quali-
fied facility’ means any facility owned by the tax-
payer which is originally placed in service—
‘‘(A) in the case of a facility using wind to
produce electricity, after December 31, 1993,
and before July 1, 2004, and
‘‘(B) in the case of a facility using closed-
loop biomass to produce electricity, after De-
cember 31, 1992, and before July 1, 1999.’’.
(b) CREDIT NOT TO APPLY TO ELECTRICITY SOLD
TO UTILITIES UNDER CERTAIN CONTRACTS.—Subsection
(b) of section 45 of such Code is amended by adding at
the end the following new paragraph:
‘‘(4) CREDIT NOT TO APPLY TO ELECTRICITY
SOLD TO UTILITIES UNDER CERTAIN CONTRACTS.—
‘‘(A) IN GENERAL.—The credit determined
under subsection (a) shall not apply to
electricity—
‘‘(i) produced at a qualified facility
placed in service by the taxpayer after
June 30, 1999, and
‘‘(ii) sold to a utility pursuant to a
contract originally entered into before Jan-
uary 1, 1987 (whether or not amended or
restated after that date).
‘‘(B) 
EXCEPTION.—Subparagraph 
(A)
shall not apply if—
‘‘(i) the prices for energy and capacity
from such facility are established pursuant
to an amendment to the contract referred
to in subparagraph (A)(ii);
‘‘(ii) such amendment provides that
the prices set forth in the contract which
exceed avoided cost prices determined at
the time of delivery shall apply only to an-
nual quantities of electricity (prorated for
partial years) which do not exceed the
greater of—
‘‘(I) the average annual quantity
of electricity sold to the utility under
the contract during calendar years
1994, 1995, 1996, 1997, and 1998,
or
‘‘(II) the estimate of the annual
electricity production set forth in the
contract, or, if there is no such esti-
mate, the greatest annual quantity of
electricity sold to the utility under the
contract in any of the calendar years
1996, 1997, or 1998; and
‘‘(iii) such amendment provides that
energy and capacity in excess of the limita-
tion in clause (ii) may be—
‘‘(I) sold to the utility only at
prices that do not exceed avoided cost
prices determined at the time of deliv-
ery, or
‘‘(II) sold to a third party subject
to a mutually agreed upon advance
notice to the utility.
For purposes of this subparagraph, avoided cost
prices shall be determined as provided for in 18
CFR 292.304(d)(1) or any successor regula-
tion.’’.
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