I 
111TH CONGRESS 
2D SESSION 
H. R. 4599 
To amend the Internal Revenue Code of 1986 to provide an elective payment 
for specified energy property. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 4, 2010 
Mr. BLUMENAUER (for himself, Mr. MCDERMOTT, Mr. VAN HOLLEN, Ms. 
LINDA T. SA´NCHEZ of California, Mr. WALZ, Mr. LARSON of Con-
necticut, Mr. THOMPSON of California, Mr. DOGGETT, Mr. PASCRELL, 
and Mr. POMEROY) 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 
an elective payment for specified energy property. 
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 ‘‘Renewable Energy Ex-
pansion Act of 2010’’. 
SEC. 2. ELECTIVE PAYMENT FOR SPECIFIED ENERGY 
PROPERTY. 
(a) IN GENERAL.—Chapter 65 of the Internal Rev-
enue Code of 1986 (relating to abatements, credits, and 
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refunds) is amended by adding at the end the following 
new subchapter: 
‘‘Subchapter C—Direct Payment Provisions 
‘‘Sec. 6451. Elective payment for specified energy property. 
‘‘SEC. 6451. ELECTIVE PAYMENT FOR SPECIFIED ENERGY 
PROPERTY. 
‘‘(a) IN GENERAL.—Any person making an election 
under this section with respect to any specified energy 
property originally placed in service by such person during 
the taxable year shall be treated as making a payment, 
against the tax imposed by subtitle A for the taxable year, 
equal to the applicable percentage of the basis of such 
property. Such payment shall be treated as made on the 
later of the due date of the return of such tax or the date 
on which such return is filed. 
‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 
this section, the term ‘applicable percentage’ means— 
‘‘(1) 30 percent in the case of any property de-
scribed in paragraph (2)(A)(i) or (5) of section 
48(a), and 
‘‘(2) 10 percent in the case of any other prop-
erty. 
‘‘(c) DOLLAR LIMITATIONS.—In the case of property 
described in paragraph (1), (2), or (3) of section 48(c), 
the payment otherwise treated as made under subsection 
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(a) with respect to such property shall not exceed the limi-
tation applicable to such property under such paragraph. 
‘‘(d) SPECIFIED ENERGY PROPERTY.—For purposes 
of this section— 
‘‘(1) IN GENERAL.—The term ‘specified energy 
property’ means energy property (within the mean-
ing of section 48) which— 
‘‘(A) is originally placed in service before 
January 1, 2013, or 
‘‘(B) is originally placed in service on or 
after such date and before the credit termi-
nation date with respect to such property, but 
only if the construction of such property began 
before January 1, 2013. 
‘‘(2) CREDIT TERMINATION DATE.—The term 
‘credit termination date’ means— 
‘‘(A) in the case of any energy property 
which is part of a facility described in para-
graph (1) of section 45(d), January 1, 2013, 
‘‘(B) in the case of any energy property 
which is part of a facility described in para-
graph (2), (3), (4), (6), (7), (9), or (11) of sec-
tion 45(d), January 1, 2014, and 
‘‘(C) in the case of any energy property de-
scribed in section 48(a)(3), January 1, 2017. 
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In the case of any property which is described in 
subparagraph (C) and also in another subparagraph 
of this paragraph, subparagraph (C) shall apply with 
respect to such property. 
‘‘(e) SPECIAL
RULES
FOR
CERTAIN
NON-TAX-
PAYERS.— 
‘‘(1) DENIAL
OF
PAYMENT.—Subsection (a) 
shall not apply with respect to any property origi-
nally placed in service by— 
‘‘(A) any governmental entity, 
‘‘(B) any organization described in section 
501(c) or 401(a) and exempt from tax under 
section 501(a), or 
‘‘(C) any entity referred to in paragraph 
(4) of section 54(j). 
‘‘(2) EXCEPTION FOR PROPERTY USED IN UN-
RELATED
TRADE
OR
BUSINESS.—Paragraph (1) 
shall not apply with respect to any property origi-
nally placed in service by an entity described in sec-
tion 511(a)(2) if substantially all of the income de-
rived from such property by such entity is unrelated 
business taxable income (as defined in section 512). 
‘‘(3) SPECIAL RULES FOR PARTNERSHIPS AND 
S CORPORATIONS.—In the case of property originally 
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‘‘(A) IN GENERAL.—Except as otherwise 
provided in this paragraph, rules similar to the 
rules of section 50 shall apply. 
‘‘(B) EXCEPTION TO LIMITATION ON REAL 
ESTATE
INVESTMENT
TRUSTS, 
ETC.—Para-
graph (1) of section 50(d) shall not apply. 
‘‘(C) APPLICATION
OF
NORMALIZATION 
RULES.—Paragraph (2) of section 50(d) shall 
not apply with respect to property placed in 
service by a person in the trade or business of 
furnishing or selling electrical energy if any law 
or regulation requires that not less than a cer-
tain amount of the electrical energy so fur-
nished or sold by such person be derived from 
one or more renewable resources. 
‘‘(3) PROVISION OF INFORMATION.—A person 
shall not be treated as having elected the application 
of this section unless the taxpayer provides such in-
formation as the Secretary (in consultation with the 
Secretary of Energy) may require for purposes of 
verifying the proper amount to be treated as a pay-
ment under subsection (a) and evaluating the effec-
tiveness of this section. 
‘‘(4) EXCLUSION FROM GROSS INCOME.—Any 
credit or refund allowed or made by reason of this 
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section shall not be includible in gross income or al-
ternative minimum taxable income. 
‘‘(5) COORDINATION WITH GRANT PROGRAM.— 
If a grant under section 1603 of the American Re-
covery and Reinvestment Tax Act of 2009 is made 
with respect to any specified energy property— 
‘‘(A) no election may be made under sub-
section (a) with respect to such property on or 
after the date of such grant, and 
‘‘(B) if such grant is made after such elec-
tion, such property shall be treated as having 
ceased to be specified energy property imme-
diately after such property was originally placed 
in service.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Subparagraph (A) of section 6211(b)(4)(A) 
of such Code is amended by inserting ‘‘and sub-
chapter C of chapter 65 (including any payment 
treated as made under such subchapter)’’ after 
‘‘6431’’. 
(2) Subparagraph (B) of section 6425(c)(1) of 
such Code is amended— 
(A) by striking ‘‘the credits’’ and inserting 
‘‘the sum of— 
‘‘(i) the credits’’, 
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(B) by striking the period at the end of 
clause (i) thereof (as amended by this para-
graph) and inserting ‘‘, plus’’, and 
(C) by adding at the end the following new 
clause: 
‘‘(ii) the payments treated as made 
under subchapter C of chapter 65.’’. 
(3) Paragraph (3) of section 6654(f) of such 
Code is amended— 
(A) by striking ‘‘the credits’’ and inserting 
‘‘the sum of— 
‘‘(A) the credits’’, 
(B) by striking the period at the end of 
subparagraph (A) thereof (as amended by this 
paragraph) and inserting ‘‘, and’’, and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(B) the payments treated as made under 
subchapter C of chapter 65.’’. 
(4) Subparagraph (B) of section 6655(g)(1) of 
such Code is amended— 
(A) by striking ‘‘the credits’’ and inserting 
‘‘the sum of— 
‘‘(i) the credits’’, 
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(B) by striking the period at the end of 
clause (i) thereof (as amended by this para-
graph) and inserting ‘‘, plus’’, and 
(C) by adding at the end the following new 
clause: 
‘‘(ii) the payments treated as made 
under subchapter C of chapter 65.’’. 
(5) Paragraph (2) of section 1324(b) of title 
31, United States Code, is amended by inserting ‘‘, 
or from the provisions of subchapter C of chapter 65 
of such Code’’ before the period at the end. 
(6) The table of subchapters for chapter 65 of 
the Internal Revenue Code of 1986 is amended by 
adding at the end the following new item: 
‘‘SUBCHAPTER C. DIRECT PAYMENT PROVISIONS.’’ 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property originally placed in 
service after the date of the enactment of this Act. 
Æ 
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