tions), as amended by paragraph (3), is amended by 
adding at the end the following: 
‘‘(9) GALLONS PER CYCLE.—The term ‘gallons 
per cycle’ means, with respect to a dishwasher, the 
amount of water, expressed in gallons, required to 
complete a normal cycle of a dishwasher. 
‘‘(10) WATER
CONSUMPTION
FACTOR.—The 
term ‘water consumption factor’ means, with respect 
to a clothes washer, the quotient of the total weight-
ed per-cycle water consumption divided by the cubic 
foot (or liter) capacity of the clothes washer.’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to appliances produced after De-
cember 31, 2007. 
SEC. 235. FIVE-YEAR APPLICABLE RECOVERY PERIOD FOR 
DEPRECIATION OF QUALIFIED ENERGY MAN-
AGEMENT DEVICES. 
(a) IN GENERAL.—Section 168(e)(3)(B) (relating to 
5-year property) is amended by striking ‘‘and’’ at the end 
of clause (v), by striking the period at the end of clause 
(vi) and inserting ‘‘, and’’, and by inserting after clause 
(vi) the following new clause: 
‘‘(vii) any qualified energy manage-
ment device.’’. 
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(b) DEFINITION OF QUALIFIED ENERGY MANAGE-
MENT DEVICE.—Section 168(i) (relating to definitions 
and special rules) is amended by inserting at the end the 
following new paragraph: 
‘‘(18) QUALIFIED
ENERGY
MANAGEMENT
DE-
VICE.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
energy management device’ means any energy 
management device which is installed on real 
property of a customer of the taxpayer and is 
placed in service by a taxpayer who— 
‘‘(i) is a supplier of electric energy or 
a provider of electric energy services, and 
‘‘(ii) provides all commercial and resi-
dential customers of such supplier or pro-
vider with net metering upon the request 
of such customer. 
‘‘(B) ENERGY
MANAGEMENT
DEVICE.— 
For purposes of subparagraph (A), the term 
‘energy management device’ means any time- 
based meter and related communication equip-
ment which is capable of being used by the tax-
payer as part of a system that— 
‘‘(i) measures and records electricity 
usage data on a time-differentiated basis 
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in at least 24 separate time segments per 
day, 
‘‘(ii) provides for the exchange of in-
formation between supplier or provider and 
the customer’s energy management device 
in support of time-based rates or other 
forms of demand response, and 
‘‘(iii) provides data to such supplier or 
provider so that the supplier or provider 
can provide energy usage information to 
customers electronically. 
‘‘(C) NET
METERING.—For purposes of 
subparagraph (A), the term ‘net metering’ 
means allowing customers a credit for providing 
electricity to the supplier or provider.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act. 
TITLE III—REVENUE 
PROVISIONS 
SEC. 301. LIMITATION OF DEDUCTION FOR INCOME AT-
TRIBUTABLE TO DOMESTIC PRODUCTION OF 
OIL, GAS, OR PRIMARY PRODUCTS THEREOF. 
(a) DENIAL
OF DEDUCTION
FOR MAJOR INTE-
GRATED OIL COMPANIES FOR INCOME ATTRIBUTABLE TO 
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DOMESTIC PRODUCTION
OF OIL, GAS, OR PRIMARY 
PRODUCTS THEREOF.— 
(1) IN GENERAL.—Subparagraph (B) of section 
199(c)(4) (relating to exceptions) is amended by 
striking ‘‘or’’ at the end of clause (ii), by striking 
the period at the end of clause (iii) and inserting ‘‘, 
or’’, and by inserting after clause (iii) the following 
new clause: 
‘‘(iv) in the case of any major inte-
grated oil company (as defined in section 
167(h)(5)(B)), the production, refining, 
processing, transportation, or distribution 
of oil, gas, or any primary product thereof 
during any taxable year described in sec-
tion 167(h)(5)(B).’’. 
(2) PRIMARY PRODUCT.—Section 199(c)(4)(B) 
is amended by adding at the end the following flush 
sentence: 
‘‘For purposes of clause (iv), the term ‘primary 
product’ has the same meaning as when used in 
section 927(a)(2)(C), as in effect before its re-
peal.’’. 
(b) LIMITATION ON OIL RELATED QUALIFIED PRO-
DUCTION ACTIVITIES INCOME FOR TAXPAYERS OTHER 
THAN MAJOR INTEGRATED OIL COMPANIES.— 
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(1) IN GENERAL.—Section 199(d) is amended 
by redesignating paragraph (9) as paragraph (10) 
and by inserting after paragraph (8) the following 
new paragraph: 
‘‘(9) SPECIAL RULE FOR TAXPAYERS WITH OIL 
RELATED
QUALIFIED
PRODUCTION
ACTIVITIES
IN-
COME.— 
‘‘(A) IN GENERAL.—If a taxpayer (other 
than a major integrated oil company (as defined 
in section 167(h)(5)(B))) has oil related quali-
fied production activities income for any taxable 
year beginning after 2009, the amount of the 
deduction under subsection (a) shall be reduced 
by 3 percent of the least of— 
‘‘(i) the oil related qualified produc-
tion activities income of the taxpayer for 
the taxable year, 
‘‘(ii) the qualified production activities 
income of the taxpayer for the taxable 
year, or 
‘‘(iii) 
taxable 
income 
(determined 
without regard to this section). 
‘‘(B) OIL
RELATED
QUALIFIED
PRODUC-
TION
ACTIVITIES
INCOME.—The term ‘oil re-
lated qualified production activities income’ 
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means for any taxable year the qualified pro-
duction activities income which is attributable 
to the production, refining, processing, trans-
portation, or distribution of oil, gas, or any pri-
mary product thereof during such taxable 
year.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
199(d)(2) (relating to application to individuals) is 
amended by striking ‘‘subsection (a)(1)(B)’’ and in-
serting ‘‘subsections (a)(1)(B) and (d)(9)(A)(iii)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
SEC. 302. CLARIFICATION OF DETERMINATION OF FOREIGN 
OIL AND GAS EXTRACTION INCOME. 
(a) IN GENERAL.—Paragraph (1) of section 907(c) 
is amended by redesignating subparagraph (B) as sub-
paragraph (C), by striking ‘‘or’’ at the end of subpara-
graph (A), and by inserting after subparagraph (A) the 
following new subparagraph: 
‘‘(B) so much of any transportation of 
such minerals as occurs before the fair market 
value event, or’’. 
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(b) FAIR MARKET VALUE EVENT.—Subsection (c) of 
section 907 is amended by adding at the end the following 
new paragraph: 
‘‘(6) FAIR MARKET VALUE EVENT.—For pur-
poses of this section, the term ‘fair market value 
event’ means, with respect to any mineral, the first 
point in time at which such mineral— 
‘‘(A) has a fair market value which can be 
determined on the basis of a transfer, which is 
an arm’s length transaction, of such mineral 
from the taxpayer to a person who is not re-
lated (within the meaning of section 482) to 
such taxpayer, or 
‘‘(B) is at a location at which the fair mar-
ket value is readily ascertainable by reason of 
transactions among unrelated third parties with 
respect to the same mineral (taking into ac-
count source, location, quality, and chemical 
composition).’’. 
(c) SPECIAL
RULE
FOR
CERTAIN
PETROLEUM 
TAXES.—Subsection (c) of section 907, as amended by 
subsection (b), is amended to by adding at the end the 
following new paragraph: 
‘‘(7) OIL AND GAS TAXES.—In the case of any 
tax imposed by a foreign country which is limited in 
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its application to taxpayers engaged in oil or gas ac-
tivities— 
‘‘(A) the term ‘oil and gas extraction taxes’ 
shall include such tax, 
‘‘(B) the term ‘foreign oil and gas extrac-
tion income’ shall include any taxable income 
which is taken into account in determining such 
tax (or is directly attributable to the activity to 
which such tax relates), and 
‘‘(C) the term ‘foreign oil related income’ 
shall not include any taxable income which is 
treated as foreign oil and gas extraction income 
under subparagraph (B).’’. 
(d) CONFORMING AMENDMENTS.— 
(1) Subparagraph (C) of section 907(c)(1), as 
redesignated by this section, is amended by inserting 
‘‘or used by the taxpayer in the activity described in 
subparagraph (B)’’ before the period at the end. 
(2) Subparagraph (B) of section 907(c)(2) is 
amended to read as follows: 
‘‘(B) so much of the transportation of such 
minerals or primary products as is not taken 
into account under paragraph (1)(B),’’. 
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100 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 303. TIME FOR PAYMENT OF CORPORATE ESTIMATED 
TAXES. 
The percentage under subparagraph (C) of section 
401(1) of the Tax Increase Prevention and Reconciliation 
Act of 2005 in effect on the date of the enactment of this 
Act is increased by 3.00 percentage points. 
TITLE IV—OTHER PROVISIONS 
Subtitle A—Studies 
SEC. 401. CARBON AUDIT OF THE TAX CODE. 
(a) STUDY.—The Secretary of the Treasury shall 
enter into an agreement with the National Academy of 
Sciences to undertake a comprehensive review of the Inter-
nal Revenue Code of 1986 to identify the types of and 
specific tax provisions that have the largest effects on car-
bon and other greenhouse gas emissions and to estimate 
the magnitude of those effects. 
(b) REPORT.—Not later than 2 years after the date 
of enactment of this Act, the National Academy of 
Sciences shall submit to Congress a report containing the 
results of study authorized under this section. 
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101 
(c) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$1,500,000 for the period of fiscal years 2008 and 2009. 
SEC. 402. COMPREHENSIVE STUDY OF BIOFUELS. 
(a) STUDY.—The Secretary of the Treasury, in con-
sultation with the Secretary of Agriculture, the Secretary 
of Energy, and the Administrator of the Environmental 
Protection Agency, shall enter into an agreement with the 
National Academy of Sciences to produce an analysis of 
current scientific findings to determine— 
(1) current biofuels production, as well as pro-
jections for future production, 
(2) the maximum amount of biofuels production 
capable on United States farmland, 
(3) the domestic effects of a dramatic increase 
in biofuels production on, for example— 
(A) the price of fuel, 
(B) the price of land in rural and subur-
ban communities, 
(C) crop acreage and other land use, 
(D) the environment, due to changes in 
crop acreage, fertilizer use, runoff, water use, 
emissions from vehicles utilizing biofuels, and 
other factors, 
(E) the price of feed, 
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102 
(F) the selling price of grain crops, 
(G) exports and imports of grains, 
(H) taxpayers, through cost or savings to 
commodity crop payments, and 
(I) the expansion of refinery capacity, 
(4) the ability to convert corn ethanol plants for 
other uses, such as cellulosic ethanol or biodiesel, 
(5) a comparative analysis of corn ethanol 
versus other biofuels and renewable energy sources, 
considering cost, energy output, and ease of imple-
mentation, and 
(6) the need for additional scientific inquiry, 
and specific areas of interest for future research. 
(b) REPORT.—The National Academy of Sciences 
shall submit an initial report of the findings of the report 
required under subsection (a) to the Congress not later 
than 3 months after the date of the enactment of this Act, 
and a final report not later than 6 months after such date 
of enactment. 
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103 
Subtitle B—Application of Certain 
Labor Standards on Projects Fi-
nanced Under Tax Credit Bonds 
SEC. 411. APPLICATION OF CERTAIN LABOR STANDARDS 
ON PROJECTS FINANCED UNDER TAX CREDIT 
BONDS. 
Subchapter IV of chapter 31 of title 40, United 
States Code, shall apply to projects financed with the pro-
ceeds of any tax credit bond (as defined in section 54A 
of the Internal Revenue Code of 1986). 
Æ 
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