I 
111TH CONGRESS 
1ST SESSION H. R. 4389 
To amend the Internal Revenue Code of 1986 to allow a credit against 
income tax to taxpayers using energy derived from biomass to power 
domestic paper, pulp and paperboard manufacturing process facilities. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 16, 2009 
Mr. MURPHY of New York 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 allow a 
credit against income tax to taxpayers using energy de-
rived from biomass to power domestic paper, pulp and 
paperboard manufacturing process facilities. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Green Energy Paper 
Manufacturing Act of 2009’’. 
VerDate Nov 24 2008 
02:09 Dec 19, 2009
Jkt 089200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H4389.IH
H4389
jbell on DSKDVH8Z91PROD with BILLS
SEC. 2. CREDIT FOR USING ENERGY DERIVED FROM BIO-
MASS TO POWER DOMESTIC PAPER, PULP 
AND PAPERBOARD MANUFACTURING PROC-
ESS FACILITIES. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to business-related credits) is amended by 
inserting after section 45Q the following new section: 
‘‘SEC. 45R. ENERGY DERIVED FROM BIOMASS TO POWER 
DOMESTIC PAPER, PULP AND PAPERBOARD 
MANUFACTURING PROCESS FACILITIES. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
the renewable green-energy pulp, paper or paperboard 
manufacturing credit for any taxable year is an amount 
equal to the product of— 
‘‘(1) $4, multiplied by 
‘‘(2) the number of million Btus of steam and 
electricity— 
‘‘(A) produced by the taxpayer— 
‘‘(i) from biomass fuels, and 
‘‘(ii) at a qualified paper product fa-
cility (or at an energy production facility 
which is located in the United States and 
which is under contract to provide steam 
or electricity to any qualified paper prod-
uct facility) during the 10-year period be-
VerDate Nov 24 2008 
02:09 Dec 19, 2009
Jkt 089200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H4389.IH
H4389
jbell on DSKDVH8Z91PROD with BILLS
ginning on the later of the date of the en-
actment of this section or the date the fa-
cility was originally placed in service, and 
‘‘(B) used by the taxpayer at, or provided 
by the taxpayer to, any pulp, paper or paper-
board manufacturing facility located in the 
United States. 
‘‘(b) MAXIMUM ANNUAL CREDIT PER FACILITY.— 
‘‘(1) IN
GENERAL.—The credit determined 
under this section for energy used during the taxable 
year at any qualified paper product facility shall not 
exceed $25,000,000. 
‘‘(2) COORDINATION
WITH
ADVANCE
PAY-
MENTS.—The dollar amount in paragraph (1) shall 
be reduced for any taxable year by the aggregate of 
the claims made under section 6429 for periods dur-
ing such year with respect to such facility. 
‘‘(c) DENIAL OF DOUBLE BENEFIT.—Btus may not 
be taken into account under subsection (a)(2) if any credit 
is allowed under section 40, 40A, 45, or 6426 for the elec-
tricity generation, the feedstock, or for the blending of the 
feedstock associated with the Btus. 
‘‘(d) DEFINITIONS.—For purposes of this section— 
‘‘(1) BIOMASS FUELS.— 
VerDate Nov 24 2008 
02:09 Dec 19, 2009
Jkt 089200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H4389.IH
H4389
jbell on DSKDVH8Z91PROD with BILLS
‘‘(A) IN
GENERAL.—The term ‘biomass 
fuels’ means any liquid, solid, or gaseous fuel 
derived from biomass (as defined in section 
45K(c)(3)) or from biomass process residuals 
from recycled and other paper facilities. 
‘‘(B) COFIRING WITH FOSSIL FUELS.—In 
the case of fossil fuel burned in conjunction 
with any biomass fuel, only the Btus attrib-
utable to biomass fuel may be taken into ac-
count under subsection (a). 
‘‘(2) QUALIFIED PAPER PRODUCT FACILITY.— 
The term ‘qualified paper product facility’ means 
any pulp, paper, or paperboard manufacturing facil-
ity— 
‘‘(A) which is originally placed in service 
before the close of the 5-year period beginning 
on the date of the enactment of this section, 
and 
‘‘(B) which is located in the United States. 
‘‘(e) REINVESTMENT REQUIREMENT.— 
‘‘(1) IN GENERAL.—The tax imposed by this 
chapter for any taxable year shall be increased by 
the recapture amount (if any) for the 3rd preceding 
taxable year. 
VerDate Nov 24 2008 
02:09 Dec 19, 2009
Jkt 089200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H4389.IH
H4389
jbell on DSKDVH8Z91PROD with BILLS
‘‘(2) RECAPTURE
AMOUNT.—For purposes of 
paragraph (1), the term ‘recapture amount’ means, 
with respect to any taxable year, the excess (if any) 
of— 
‘‘(A) 50 percent of the sum of— 
‘‘(i) the credit determined under this 
section for the taxable year, and 
‘‘(ii) the aggregate payments made 
under section 6429 to the taxpayer for 
steam and electricity produced during such 
year, over 
‘‘(B) the aggregate qualified reinvestment 
made by the taxpayer during such year and the 
3 succeeding taxable years (reduced by the 
qualified reinvestment taken into account in de-
termining the recapture amount for any prior 
taxable year). 
‘‘(3) QUALIFIED REINVESTMENT.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (2), the term ‘qualified reinvestment’ 
means the basis of renewable energy projects, 
energy efficiency projects and other environ-
mental improvements at facilities owned by the 
taxpayer and located in the United States. 
VerDate Nov 24 2008 
02:09 Dec 19, 2009
Jkt 089200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H4389.IH
H4389
jbell on DSKDVH8Z91PROD with BILLS
‘‘(B) REDUCTION
FOR
FEDERAL
BENE-
FITS.—The basis otherwise taken into account 
under subparagraph (A) shall be reduced by the 
aggregate of— 
‘‘(i) the credits under this chapter, 
and 
‘‘(ii) Federal grants, 
allowed or received on account of the invest-
ment. 
‘‘(4) WHEN REINVESTMENTS TAKEN INTO AC-
COUNT.— 
‘‘(A) IN GENERAL.—Qualified reinvestment 
shall be taken into account when the property 
is placed in service. 
‘‘(B) ELECTION.—At the election of the 
taxpayer with respect to any qualified reinvest-
ment which is constructed by the taxpayer— 
‘‘(i) the estimated amount of such in-
vestment shall be treated as made when 
the physical work of such construction be-
gins, and 
‘‘(ii) proper adjustments shall be 
made to such amount in the taxable year 
in which such investment is placed in serv-
VerDate Nov 24 2008 
02:09 Dec 19, 2009
Jkt 089200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H4389.IH
H4389
jbell on DSKDVH8Z91PROD with BILLS
ice in any case where such estimate is 
greater or less than the proper amount. 
‘‘(f) MULTIPLE FACILITY OWNERS.—If more than 1 
person has an ownership interest in a qualified paper 
product facility, the dollar limitation in subsection (b) 
shall be allocated among such persons under regulations 
prescribed by the Secretary.’’. 
(b) CREDIT MADE PART OF GENERAL BUSINESS 
CREDIT AND ALLOWABLE AGAINST MINIMUM TAX.— 
(1) IN GENERAL.—Subsection (b) of section 38 
of such Code (relating to current year business cred-
it) is amended by striking ‘‘plus’’ at the end of para-
graph (34), by striking the period at the end of 
paragraph (35) and inserting ‘‘, plus’’, and by add-
ing at the end the following new paragraph: 
‘‘(36) the renewable green-energy pulp, paper 
or paperboard manufacturing credit determined 
under section 45R.’’. 
(2) CREDIT
ALLOWABLE
AGAINST
MINIMUM 
TAX.—Subparagraph (B) of section 38(c)(4) of such 
Code (relating to specified credits) is amended by 
striking ‘‘and’’ at the end of clause (vii), by striking 
the period at the end of clause (viii) and inserting 
‘‘, and’’, and by adding at the end the following new 
clause: 
VerDate Nov 24 2008 
02:09 Dec 19, 2009
Jkt 089200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H4389.IH
H4389
jbell on DSKDVH8Z91PROD with BILLS
‘‘(ix) the credit determined under sec-
tion 45R.’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of such Code is amended by inserting after the item relat-
ing to section 45Q the following new item: 
‘‘Sec. 45R. Energy derived from biomass to power domestic paper, pulp and pa-
perboard manufacturing process facilities.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to energy produced after December 
31, 2009, in taxable years ending after such date. 
SEC. 3. ADVANCE PAYMENTS FOR LIQUID BIOMASS USED 
AS A FUEL AT PAPER PRODUCT FACILITIES. 
(a) IN GENERAL.—Subchapter B of chapter 65 of the 
Internal Revenue Code of 1986 (relating to abatements, 
credits, and refunds) is amended by striking section 6429 
and inserting the following new section: 
‘‘SEC. 6429. ADVANCE PAYMENTS FOR LIQUID BIOMASS 
USED AS A FUEL AT PAPER PRODUCT FACILI-
TIES. 
‘‘(a) IN GENERAL.—If any person uses any qualified 
biomass liquid as a fuel to produce steam or electricity 
for use at any pulp, paper or paperboard manufacturing 
facility located in the United States, the Secretary shall 
pay (without interest) to such person an amount equal 
to— 
VerDate Nov 24 2008 
02:09 Dec 19, 2009
Jkt 089200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H4389.IH
H4389
jbell on DSKDVH8Z91PROD with BILLS
‘‘(1) $4, multiplied by 
‘‘(2) the number of million Btus of steam and 
electricity so produced. 
‘‘(b) MAXIMUM ANNUAL PAYMENTS PER FACIL-
ITY.—The amount paid by the Secretary under this sec-
tion for energy used during any taxable year at any quali-
fied paper product facility shall not exceed $25,000,000. 
‘‘(c) QUALIFIED BIOMASS LIQUID.—For purposes of 
this section, the term ‘qualified biomass liquid’ means any 
liquid— 
‘‘(1) which is derived from— 
‘‘(A) biomass (as defined in section 
45K(c)(3)), or 
‘‘(B) biomass process residuals from recy-
cled and other paper facilities if such residuals 
meet the test of liquids set forth in ASTM 
D4359–90, and 
‘‘(2) which is produced by such person at a 
qualified paper product facility (as defined in section 
45R(d)(2)) during the 10-year period beginning on 
the later of the date of the enactment of this section 
or the date the facility was originally placed in serv-
ice. 
‘‘(d) TIME
FOR
FILING
CLAIMS; PERIOD
COV-
ERED.— 
VerDate Nov 24 2008 
02:09 Dec 19, 2009
Jkt 089200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H4389.IH
H4389
jbell on DSKDVH8Z91PROD with BILLS
‘‘(1) IN GENERAL.—A claim may be filed under 
this section by any person for any period— 
‘‘(A) for which $200 or more is payable, 
and 
‘‘(B) which is not less than 1 week. 
In the case of an electronic claim, this paragraph 
shall be applied without regard to subparagraph (A). 
‘‘(2) PAYMENT
OF
CLAIM.—Notwithstanding 
subsection (a), if the Secretary has not paid pursu-
ant to a claim filed under this section within 45 days 
of the date of the filing of such claim (20 days in 
the case of an electronic claim), the claim shall be 
paid with interest from such date determined by 
using the overpayment rate and method under sec-
tion 6621. 
‘‘(3) TIME FOR FILING CLAIM.—No claim filed 
under this subsection shall be allowed unless filed on 
or before the last day of the first quarter following 
the earliest quarter included in the claim. 
‘‘(e) COFIRING WITH FOSSIL FUELS.—In the case 
of fossil fuel burned in conjunction with any qualified bio-
mass liquid, only the Btus attributable to the qualified bio-
mass liquid may be taken into account under subsection 
(a).’’. 
(b) CONFORMING AMENDMENTS.— 
VerDate Nov 24 2008 
02:09 Dec 19, 2009
Jkt 089200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H4389.IH
H4389
jbell on DSKDVH8Z91PROD with BILLS
(1) The table of sections for such subchapter B 
is amended by striking the item relating to section 
6429 and inserting the following new item: 
‘‘Sec. 6429. Advance payments for liquid biomass used as a fuel at paper prod-
uct facilities.’’. 
(2) Section 1324(b)(2) of title 31, United 
States Code, is amended by inserting ‘‘6429,’’ after 
‘‘6428,’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to energy produced after December 
31, 2009, in taxable years ending after such date. 
Æ 
VerDate Nov 24 2008 
02:09 Dec 19, 2009
Jkt 089200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6301
E:\BILLS\H4389.IH
H4389
jbell on DSKDVH8Z91PROD with BILLS