H. R. 1424—76 
(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, in taxable years ending after such date. 
SEC. 208. CERTAIN INCOME AND GAINS RELATING TO ALCOHOL FUELS 
AND MIXTURES, BIODIESEL FUELS AND MIXTURES, AND 
ALTERNATIVE FUELS AND MIXTURES TREATED AS QUALI-
FYING INCOME FOR PUBLICLY TRADED PARTNERSHIPS. 
(a) IN GENERAL.—Subparagraph (E) of section 7704(d)(1), as 
amended by this Act, is amended by striking ‘‘or industrial source 
carbon dioxide’’ and inserting ‘‘, industrial source carbon dioxide, 
or the transportation or storage of any fuel described in subsection 
(b), (c), (d), or (e) of section 6426, or any alcohol fuel defined 
in section 6426(b)(4)(A) or any biodiesel fuel as defined in section 
40A(d)(1)’’ after ‘‘timber)’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall take effect on the date of the enactment of this Act, in 
taxable years ending after such date. 
SEC. 209. EXTENSION AND MODIFICATION OF ELECTION TO EXPENSE 
CERTAIN REFINERIES. 
(a) EXTENSION.—Paragraph (1) of section 179C(c) (relating to 
qualified refinery property) is amended— 
(1) by striking ‘‘January 1, 2012’’ in subparagraph (B) 
and inserting ‘‘January 1, 2014’’, and 
(2) by striking ‘‘January 1, 2008’’ each place it appears 
in subparagraph (F) and inserting ‘‘January 1, 2010’’. 
(b) INCLUSION OF FUEL DERIVED FROM SHALE AND TAR SANDS.— 
(1) IN GENERAL.—Subsection (d) of section 179C is amended 
by inserting ‘‘, or directly from shale or tar sands’’ after ‘‘(as 
defined in section 45K(c))’’. 
(2) CONFORMING
AMENDMENT.—Paragraph (2) of section 
179C(e) is amended by inserting ‘‘shale, tar sands, or’’ before 
‘‘qualified fuels’’. 
(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. 
SEC. 210. EXTENSION OF SUSPENSION OF TAXABLE INCOME LIMIT 
ON PERCENTAGE DEPLETION FOR OIL AND NATURAL GAS 
PRODUCED FROM MARGINAL PROPERTIES. 
Subparagraph (H) of section 613A(c)(6) (relating to oil and 
gas produced from marginal properties) is amended by striking 
‘‘for any taxable year’’ and all that follows and inserting ‘‘for any 
taxable year— 
‘‘(i) beginning after December 31, 1997, and before 
January 1, 2008, or 
‘‘(ii) beginning after December 31, 2008, and before 
January 1, 2010.’’. 
SEC. 211. TRANSPORTATION FRINGE BENEFIT TO BICYCLE COM-
MUTERS. 
(a) IN GENERAL.—Paragraph (1) of section 132(f) is amended 
by adding at the end the following: 
‘‘(D) Any qualified bicycle commuting reimbursement.’’. 
(b) LIMITATION ON EXCLUSION.—Paragraph (2) of section 132(f) 
is amended by striking ‘‘and’’ at the end of subparagraph (A),
H. R. 1424—77 
by striking the period at the end of subparagraph (B) and inserting 
‘‘, and’’, and by adding at the end the following new subparagraph: 
‘‘(C) the applicable annual limitation in the case of 
any qualified bicycle commuting reimbursement.’’. 
(c) DEFINITIONS.—Paragraph (5) of section 132(f) is amended 
by adding at the end the following: 
‘‘(F) DEFINITIONS
RELATED
TO
BICYCLE
COMMUTING 
REIMBURSEMENT.— 
‘‘(i) QUALIFIED
BICYCLE
COMMUTING
REIMBURSE-
MENT.—The 
term 
‘qualified 
bicycle 
commuting 
reimbursement’ means, with respect to any calendar 
year, any employer reimbursement during the 15- 
month period beginning with the first day of such 
calendar year for reasonable expenses incurred by the 
employee during such calendar year for the purchase 
of a bicycle and bicycle improvements, repair, and stor-
age, if such bicycle is regularly used for travel between 
the employee’s residence and place of employment. 
‘‘(ii) APPLICABLE ANNUAL LIMITATION.—The term 
‘applicable annual limitation’ means, with respect to 
any employee for any calendar year, the product of 
$20 multiplied by the number of qualified bicycle com-
muting months during such year. 
‘‘(iii) QUALIFIED BICYCLE COMMUTING MONTH.—The 
term ‘qualified bicycle commuting month’ means, with 
respect to any employee, any month during which such 
employee— 
‘‘(I) regularly uses the bicycle for a substantial 
portion of the travel between the employee’s resi-
dence and place of employment, and 
‘‘(II) does not receive any benefit described 
in subparagraph (A), (B), or (C) of paragraph (1).’’. 
(d) CONSTRUCTIVE RECEIPT OF BENEFIT.—Paragraph (4) of sec-
tion 132(f) is amended by inserting ‘‘(other than a qualified bicycle 
commuting reimbursement)’’ after ‘‘qualified transportation fringe’’. 
(e) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2008. 
TITLE III—ENERGY CONSERVATION 
AND EFFICIENCY PROVISIONS 
SEC. 301. QUALIFIED ENERGY CONSERVATION BONDS. 
(a) IN GENERAL.—Subpart I of part IV of subchapter A of 
chapter 1, as amended by section 107, is amended by adding at 
the end the following new section: 
‘‘SEC. 54D. QUALIFIED ENERGY CONSERVATION BONDS. 
‘‘(a) QUALIFIED ENERGY CONSERVATION BOND.—For purposes 
of this subchapter, the term ‘qualified energy conservation bond’ 
means any bond issued as part of an issue if— 
‘‘(1) 100 percent of the available project proceeds of such 
issue are to be used for one or more qualified conservation 
purposes, 
‘‘(2) the bond is issued by a State or local government, 
and
H. R. 1424—78 
‘‘(3) the issuer designates such bond for purposes of this 
section. 
‘‘(b) REDUCED CREDIT AMOUNT.—The annual credit determined 
under section 54A(b) with respect to any qualified energy conserva-
tion bond shall be 70 percent of the amount so determined without 
regard to this subsection. 
‘‘(c) LIMITATION ON AMOUNT OF BONDS DESIGNATED.—The max-
imum aggregate face amount of bonds which may be designated 
under subsection (a) by any issuer shall not exceed the limitation 
amount allocated to such issuer under subsection (e). 
‘‘(d) NATIONAL
LIMITATION
ON
AMOUNT
OF
BONDS
DES-
IGNATED.—There is a national qualified energy conservation bond 
limitation of $800,000,000. 
‘‘(e) ALLOCATIONS.— 
‘‘(1) IN
GENERAL.—The limitation applicable under sub-
section (d) shall be allocated by the Secretary among the States 
in proportion to the population of the States. 
‘‘(2) ALLOCATIONS TO LARGEST LOCAL GOVERNMENTS.— 
‘‘(A) IN GENERAL.—In the case of any State in which 
there is a large local government, each such local govern-
ment shall be allocated a portion of such State’s allocation 
which bears the same ratio to the State’s allocation (deter-
mined without regard to this subparagraph) as the popu-
lation of such large local government bears to the popu-
lation of such State. 
‘‘(B) ALLOCATION OF UNUSED LIMITATION TO STATE.— 
The amount allocated under this subsection to a large 
local government may be reallocated by such local govern-
ment to the State in which such local government is located. 
‘‘(C) LARGE LOCAL GOVERNMENT.—For purposes of this 
section, the term ‘large local government’ means any 
municipality or county if such municipality or county has 
a population of 100,000 or more. 
‘‘(3) ALLOCATION
TO
ISSUERS; RESTRICTION
ON
PRIVATE 
ACTIVITY BONDS.—Any allocation under this subsection to a 
State or large local government shall be allocated by such 
State or large local government to issuers within the State 
in a manner that results in not less than 70 percent of the 
allocation to such State or large local government being used 
to designate bonds which are not private activity bonds. 
‘‘(f) QUALIFIED CONSERVATION PURPOSE.—For purposes of this 
section— 
‘‘(1) IN GENERAL.—The term ‘qualified conservation purpose’ 
means any of the following: 
‘‘(A) Capital expenditures incurred for purposes of— 
‘‘(i) reducing energy consumption in publicly-owned 
buildings by at least 20 percent, 
‘‘(ii) implementing green community programs, 
‘‘(iii) rural development involving the production 
of electricity from renewable energy resources, or 
‘‘(iv) any qualified facility (as determined under 
section 45(d) without regard to paragraphs (8) and 
(10) thereof and without regard to any placed in service 
date). 
‘‘(B) Expenditures with respect to research facilities, 
and research grants, to support research in—
H. R. 1424—79 
‘‘(i) development of cellulosic ethanol or other non-
fossil fuels, 
‘‘(ii) technologies for the capture and sequestration 
of carbon dioxide produced through the use of fossil 
fuels, 
‘‘(iii) increasing the efficiency of existing tech-
nologies for producing nonfossil fuels, 
‘‘(iv) automobile battery technologies and other 
technologies to reduce fossil fuel consumption in 
transportation, or 
‘‘(v) technologies to reduce energy use in buildings. 
‘‘(C) Mass commuting facilities and related facilities 
that reduce the consumption of energy, including expendi-
tures to reduce pollution from vehicles used for mass com-
muting. 
‘‘(D) Demonstration projects designed to promote the 
commercialization of— 
‘‘(i) green building technology, 
‘‘(ii) conversion of agricultural waste for use in 
the production of fuel or otherwise, 
‘‘(iii) advanced battery manufacturing technologies, 
‘‘(iv) technologies to reduce peak use of electricity, 
or 
‘‘(v) technologies for the capture and sequestration 
of carbon dioxide emitted from combusting fossil fuels 
in order to produce electricity. 
‘‘(E) Public education campaigns to promote energy 
efficiency. 
‘‘(2) SPECIAL RULES FOR PRIVATE ACTIVITY BONDS.—For pur-
poses of this section, in the case of any private activity bond, 
the term ‘qualified conservation purposes’ shall not include 
any expenditure which is not a capital expenditure. 
‘‘(g) POPULATION.— 
‘‘(1) IN GENERAL.—The population of any State or local 
government shall be determined for purposes of this section 
as provided in section 146(j) for the calendar year which 
includes the date of the enactment of this section. 
‘‘(2) SPECIAL
RULE
FOR
COUNTIES.—In determining the 
population of any county for purposes of this section, any popu-
lation of such county which is taken into account in determining 
the population of any municipality which is a large local govern-
ment shall not be taken into account in determining the popu-
lation of such county. 
‘‘(h) APPLICATION TO INDIAN TRIBAL GOVERNMENTS.—An Indian 
tribal government shall be treated for purposes of this section 
in the same manner as a large local government, except that— 
‘‘(1) an Indian tribal government shall be treated for pur-
poses of subsection (e) as located within a State to the extent 
of so much of the population of such government as resides 
within such State, and 
‘‘(2) any bond issued by an Indian tribal government shall 
be treated as a qualified energy conservation bond only if 
issued as part of an issue the available project proceeds of 
which are used for purposes for which such Indian tribal 
government could issue bonds to which section 103(a) applies.’’. 
(b) CONFORMING AMENDMENTS.—
H. R. 1424—80 
(1) Paragraph (1) of section 54A(d), as amended by this 
Act, is amended to read as follows: 
‘‘(1) QUALIFIED TAX CREDIT BOND.—The term ‘qualified tax 
credit bond’ means— 
‘‘(A) a qualified forestry conservation bond, 
‘‘(B) a new clean renewable energy bond, or 
‘‘(C) a qualified energy conservation bond, 
which is part of an issue that meets requirements of paragraphs 
(2), (3), (4), (5), and (6).’’. 
(2) Subparagraph (C) of section 54A(d)(2), as amended by 
this Act, is amended to read as follows: 
‘‘(C) QUALIFIED PURPOSE.—For purposes of this para-
graph, the term ‘qualified purpose’ means— 
‘‘(i) in the case of a qualified forestry conservation 
bond, a purpose specified in section 54B(e), 
‘‘(ii) in the case of a new clean renewable energy 
bond, a purpose specified in section 54C(a)(1), and 
‘‘(iii) in the case of a qualified energy conservation 
bond, a purpose specified in section 54D(a)(1).’’. 
(3) The table of sections for subpart I of part IV of sub-
chapter A of chapter 1, as amended by this Act, is amended 
by adding at the end the following new item: 
‘‘Sec. 54D. Qualified energy conservation bonds.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to obligations issued after the date of the enactment 
of this Act. 
SEC. 302. CREDIT FOR NONBUSINESS ENERGY PROPERTY. 
(a) EXTENSION
OF CREDIT.—Section 25C(g) is amended by 
striking ‘‘placed in service after December 31, 2007’’ and inserting 
‘‘placed in service— 
‘‘(1) after December 31, 2007, and before January 1, 2009, 
or 
‘‘(2) after December 31, 2009.’’. 
(b) QUALIFIED BIOMASS FUEL PROPERTY.— 
(1) IN GENERAL.—Section 25C(d)(3) is amended— 
(A) by striking ‘‘and’’ at the end of subparagraph (D), 
(B) by striking the period at the end of subparagraph 
(E) and inserting ‘‘, and’’, and 
(C) by adding at the end the following new subpara-
graph: 
‘‘(F) a stove which uses the burning of biomass fuel 
to heat a dwelling unit located in the United States and 
used as a residence by the taxpayer, or to heat water 
for use in such a dwelling unit, and which has a thermal 
efficiency rating of at least 75 percent.’’. 
(2) BIOMASS FUEL.—Section 25C(d) is amended by adding 
at the end the following new paragraph: 
‘‘(6) BIOMASS FUEL.—The term ‘biomass fuel’ means any 
plant-derived fuel available on a renewable or recurring basis, 
including agricultural crops and trees, wood and wood waste 
and residues (including wood pellets), plants (including aquatic 
plants), grasses, residues, and fibers.’’. 
(c) MODIFICATION OF WATER HEATER REQUIREMENTS.—Section 
25C(d)(3)(E) is amended by inserting ‘‘or a thermal efficiency of 
at least 90 percent’’ after ‘‘0.80’’.
H. R. 1424—81 
(d) COORDINATION WITH CREDIT FOR QUALIFIED GEOTHERMAL 
HEAT PUMP PROPERTY EXPENDITURES.— 
(1) IN
GENERAL.—Paragraph (3) of section 25C(d), as 
amended by subsections (b) and (c), is amended by striking 
subparagraph (C) and by redesignating subparagraphs (D), (E), 
and (F) as subparagraphs (C), (D), and (E), respectively. 
(2) CONFORMING AMENDMENT.—Subparagraph (C) of section 
25C(d)(2) is amended to read as follows: 
‘‘(C) REQUIREMENTS AND STANDARDS FOR AIR CONDI-
TIONERS AND HEAT PUMPS.—The standards and require-
ments prescribed by the Secretary under subparagraph 
(B) with respect to the energy efficiency ratio (EER) for 
central air conditioners and electric heat pumps— 
‘‘(i) shall require measurements to be based on 
published data which is tested by manufacturers at 
95 degrees Fahrenheit, and 
‘‘(ii) may be based on the certified data of the 
Air Conditioning and Refrigeration Institute that are 
prepared in partnership with the Consortium for 
Energy Efficiency.’’. 
(e) MODIFICATION OF QUALIFIED ENERGY EFFICIENCY IMPROVE-
MENTS.— 
(1) IN
GENERAL.—Paragraph (1) of section 25C(c) is 
amended by inserting ‘‘, or an asphalt roof with appropriate 
cooling granules,’’ before ‘‘which meet the Energy Star program 
requirements’’. 
(2) BUILDING
ENVELOPE
COMPONENT.—Subparagraph (D) 
of section 25C(c)(2) is amended— 
(A) by inserting ‘‘or asphalt roof’’ after ‘‘metal roof’’, 
and 
(B) by inserting ‘‘or cooling granules’’ after ‘‘pigmented 
coatings’’. 
(f) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendments made this section shall apply to expenditures 
made after December 31, 2008. 
(2) MODIFICATION
OF
QUALIFIED
ENERGY
EFFICIENCY 
IMPROVEMENTS.—The amendments made by subsection (e) shall 
apply to property placed in service after the date of the enact-
ment of this Act. 
SEC. 303. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION. 
Subsection (h) of section 179D is amended by striking 
‘‘December 31, 2008’’ and inserting ‘‘December 31, 2013’’. 
SEC. 304. NEW ENERGY EFFICIENT HOME CREDIT. 
Subsection (g) of section 45L (relating to termination) is 
amended by striking ‘‘December 31, 2008’’ and inserting ‘‘December 
31, 2009’’. 
SEC. 305. MODIFICATIONS OF ENERGY EFFICIENT APPLIANCE CREDIT 
FOR APPLIANCES PRODUCED AFTER 2007. 
(a) IN GENERAL.—Subsection (b) of section 45M is amended 
to read as follows: 
‘‘(b) APPLICABLE AMOUNT.—For purposes of subsection (a)— 
‘‘(1) DISHWASHERS.—The applicable amount is— 
‘‘(A) $45 in the case of a dishwasher which is manufac-
tured in calendar year 2008 or 2009 and which uses no
H. R. 1424—82 
more than 324 kilowatt hours per year and 5.8 gallons 
per cycle, and 
‘‘(B) $75 in the case of a dishwasher which is manufac-
tured in calendar year 2008, 2009, or 2010 and which 
uses no more than 307 kilowatt hours per year and 5.0 
gallons per cycle (5.5 gallons per cycle for dishwashers 
designed for greater than 12 place settings). 
‘‘(2) CLOTHES WASHERS.—The applicable amount is— 
‘‘(A) $75 in the case of a residential top-loading clothes 
washer manufactured in calendar year 2008 which meets 
or exceeds a 1.72 modified energy factor and does not 
exceed a 8.0 water consumption factor, 
‘‘(B) $125 in the case of a residential top-loading clothes 
washer manufactured in calendar year 2008 or 2009 which 
meets or exceeds a 1.8 modified energy factor and does 
not exceed a 7.5 water consumption factor, 
‘‘(C) $150 in the case of a residential or commercial 
clothes washer manufactured in calendar year 2008, 2009, 
or 2010 which meets or exceeds 2.0 modified energy factor 
and does not exceed a 6.0 water consumption factor, and 
‘‘(D) $250 in the case of a residential or commercial 
clothes washer manufactured in calendar year 2008, 2009, 
or 2010 which meets or exceeds 2.2 modified energy factor 
and does not exceed a 4.5 water consumption factor. 
‘‘(3) REFRIGERATORS.—The applicable amount is— 
‘‘(A) $50 in the case of a refrigerator which is manufac-
tured in calendar year 2008, and consumes at least 20 
percent but not more than 22.9 percent less kilowatt hours 
per year than the 2001 energy conservation standards, 
‘‘(B) $75 in the case of a refrigerator which is manufac-
tured in calendar year 2008 or 2009, and consumes at 
least 23 percent but no more than 24.9 percent less kilowatt 
hours per year than the 2001 energy conservation stand-
ards, 
‘‘(C) $100 in the case of a refrigerator which is manu-
factured in calendar year 2008, 2009, or 2010, and con-
sumes at least 25 percent but not more than 29.9 percent 
less kilowatt hours per year than the 2001 energy conserva-
tion standards, and 
‘‘(D) $200 in the case of a refrigerator manufactured 
in calendar year 2008, 2009, or 2010 and which consumes 
at least 30 percent less energy than the 2001 energy con-
servation standards.’’. 
(b) ELIGIBLE PRODUCTION.— 
(1) SIMILAR TREATMENT FOR ALL APPLIANCES.—Subsection 
(c) of section 45M is amended— 
(A) by striking paragraph (2), 
(B) by striking ‘‘(1) IN GENERAL’’ and all that follows 
through ‘‘the eligible’’ and inserting ‘‘The eligible’’, 
(C) by moving the text of such subsection in line with 
the subsection heading, and 
(D) by redesignating subparagraphs (A) and (B) as 
paragraphs (1) and (2), respectively, and by moving such 
paragraphs 2 ems to the left. 
(2) MODIFICATION OF BASE PERIOD.—Paragraph (2) of sec-
tion 45M(c), as amended by paragraph (1), is amended by 
striking ‘‘3-calendar year’’ and inserting ‘‘2-calendar year’’.
H. R. 1424—83 
(c) TYPES OF ENERGY EFFICIENT APPLIANCES.—Subsection (d) 
of section 45M is amended to read as follows: 
‘‘(d) TYPES OF ENERGY EFFICIENT APPLIANCE.—For purposes 
of this section, the types of energy efficient appliances are— 
‘‘(1) dishwashers described in subsection (b)(1), 
‘‘(2) clothes washers described in subsection (b)(2), and 
‘‘(3) refrigerators described in subsection (b)(3).’’. 
(d) AGGREGATE CREDIT AMOUNT ALLOWED.— 
(1) INCREASE IN LIMIT.—Paragraph (1) of section 45M(e) 
is amended to read as follows: 
‘‘(1) AGGREGATE CREDIT AMOUNT ALLOWED.—The aggregate 
amount of credit allowed under subsection (a) with respect 
to a taxpayer for any taxable year shall not exceed $75,000,000 
reduced by the amount of the credit allowed under subsection 
(a) to the taxpayer (or any predecessor) for all prior taxable 
years beginning after December 31, 2007.’’. 
(2) EXCEPTION FOR CERTAIN REFRIGERATOR AND CLOTHES 
WASHERS.—Paragraph (2) of section 45M(e) is amended to read 
as follows: 
‘‘(2) AMOUNT ALLOWED FOR CERTAIN REFRIGERATORS AND 
CLOTHES
WASHERS.—Refrigerators described in subsection 
(b)(3)(D) and clothes washers described in subsection (b)(2)(D) 
shall not be taken into account under paragraph (1).’’. 
(e) QUALIFIED ENERGY EFFICIENT APPLIANCES.— 
(1) IN
GENERAL.—Paragraph (1) of section 45M(f) is 
amended to read as follows: 
‘‘(1) QUALIFIED ENERGY EFFICIENT APPLIANCE.—The term 
‘qualified energy efficient appliance’ means— 
‘‘(A) any dishwasher described in subsection (b)(1), 
‘‘(B) any clothes washer described in subsection (b)(2), 
and 
‘‘(C) any refrigerator described in subsection (b)(3).’’. 
(2) CLOTHES WASHER.—Section 45M(f)(3) is amended by 
inserting ‘‘commercial’’ before ‘‘residential’’ the second place 
it appears. 
(3) TOP-LOADING CLOTHES WASHER.—Subsection (f) of sec-
tion 45M is amended by redesignating paragraphs (4), (5), 
(6), and (7) as paragraphs (5), (6), (7), and (8), respectively, 
and by inserting after paragraph (3) the following new para-
graph: 
‘‘(4) TOP-LOADING CLOTHES WASHER.—The term ‘top-loading 
clothes washer’ means a clothes washer which has the clothes 
container compartment access located on the top of the machine 
and which operates on a vertical axis.’’. 
(4) REPLACEMENT OF ENERGY FACTOR.—Section 45M(f)(6), 
as redesignated by paragraph (3), is amended to read as follows: 
‘‘(6) MODIFIED ENERGY FACTOR.—The term ‘modified energy 
factor’ means the modified energy factor established by the 
Department of Energy for compliance with the Federal energy 
conservation standard.’’. 
(5) GALLONS PER CYCLE; WATER CONSUMPTION FACTOR.— 
Section 45M(f), 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.
H. R. 1424—84 
‘‘(10) WATER
CONSUMPTION
FACTOR.—The term ‘water 
consumption factor’ means, with respect to a clothes washer, 
the quotient of the total weighted 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 December 31, 2007. 
SEC. 306. ACCELERATED RECOVERY PERIOD FOR DEPRECIATION OF 
SMART METERS AND SMART GRID SYSTEMS. 
(a) IN GENERAL.—Section 168(e)(3)(D) is amended by striking 
‘‘and’’ at the end of clause (i), by striking the period at the end 
of clause (ii) and inserting a comma, and by inserting after clause 
(ii) the following new clauses: 
‘‘(iii) any qualified smart electric meter, and 
‘‘(iv) any qualified smart electric grid system.’’. 
(b) DEFINITIONS.—Section 168(i) is amended by inserting at 
the end the following new paragraph: 
‘‘(18) QUALIFIED SMART ELECTRIC METERS.— 
‘‘(A) IN GENERAL.—The term ‘qualified smart electric 
meter’ means any smart electric meter which— 
‘‘(i) is placed in service by a taxpayer who is a 
supplier of electric energy or a provider of electric 
energy services, and 
‘‘(ii) does not have a class life (determined without 
regard to subsection (e)) of less than 10 years. 
‘‘(B) SMART ELECTRIC METER.—For purposes of subpara-
graph (A), the term ‘smart electric meter’ means any time- 
based meter and related communication equipment which 
is capable of being used by the taxpayer as part of a 
system that— 
‘‘(i) measures and records electricity usage data 
on a time-differentiated basis in at least 24 separate 
time segments per day, 
‘‘(ii) provides for the exchange of information 
between supplier or provider and the customer’s elec-
tric meter in support of time-based rates or other forms 
of demand response, 
‘‘(iii) provides data to such supplier or provider 
so that the supplier or provider can provide energy 
usage information to customers electronically, and 
‘‘(iv) provides net metering. 
‘‘(19) QUALIFIED SMART ELECTRIC GRID SYSTEMS.— 
‘‘(A) IN GENERAL.—The term ‘qualified smart electric 
grid system’ means any smart grid property which— 
‘‘(i) is used as part of a system for electric distribu-
tion grid communications, monitoring, and manage-
ment placed in service by a taxpayer who is a supplier 
of electric energy or a provider of electric energy serv-
ices, and 
‘‘(ii) does not have a class life (determined without 
regard to subsection (e)) of less than 10 years. 
‘‘(B) SMART
GRID
PROPERTY.—For the purposes of 
subparagraph (A), the term ‘smart grid property’ means 
electronics and related equipment that is capable of— 
‘‘(i) sensing, collecting, and monitoring data of or 
from all portions of a utility’s electric distribution grid,
H. R. 1424—85 
‘‘(ii) providing real-time, two-way communications 
to monitor or manage such grid, and 
‘‘(iii) providing real time analysis of and event 
prediction based upon collected data that can be used 
to improve electric distribution system reliability, 
quality, and performance.’’. 
(c) CONTINUED APPLICATION OF 150 PERCENT DECLINING BAL-
ANCE METHOD.—Paragraph (2) of section 168(b) is amended by 
striking ‘‘or’’ at the end of subparagraph (B), by redesignating 
subparagraph (C) as subparagraph (D), and by inserting after 
subparagraph (B) the following new subparagraph: 
‘‘(C) any property (other than property described in 
paragraph (3)) which is a qualified smart electric meter 
or qualified smart electric grid system, or’’. 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall apply to property placed in service after the date of the 
enactment of this Act. 
SEC. 307. QUALIFIED GREEN BUILDING AND SUSTAINABLE DESIGN 
PROJECTS. 
(a) IN GENERAL.—Paragraph (8) of section 142(l) is amended 
by striking ‘‘September 30, 2009’’ and inserting ‘‘September 30, 
2012’’. 
(b) TREATMENT OF CURRENT REFUNDING BONDS.—Paragraph 
(9) of section 142(l) is amended by striking ‘‘October 1, 2009’’ and 
inserting ‘‘October 1, 2012’’. 
(c) ACCOUNTABILITY.—The second sentence of section 701(d) 
of the American Jobs Creation Act of 2004 is amended by striking 
‘‘issuance,’’ and inserting ‘‘issuance of the last issue with respect 
to such project,’’. 
SEC. 308. SPECIAL DEPRECIATION ALLOWANCE FOR CERTAIN REUSE 
AND RECYCLING PROPERTY. 
(a) IN GENERAL.—Section 168 is amended by adding at the 
end the following new subsection: 
‘‘(m) SPECIAL ALLOWANCE FOR CERTAIN REUSE AND RECYCLING 
PROPERTY.— 
‘‘(1) IN GENERAL.—In the case of any qualified reuse and 
recycling property— 
‘‘(A) the depreciation deduction provided by section 
167(a) for the taxable year in which such property is placed 
in service shall include an allowance equal to 50 percent 
of the adjusted basis of the qualified reuse and recycling 
property, and 
‘‘(B) the adjusted basis of the qualified reuse and 
recycling property shall be reduced by the amount of such 
deduction before computing the amount otherwise allow-
able as a depreciation deduction under this chapter for 
such taxable year and any subsequent taxable year. 
‘‘(2) QUALIFIED REUSE AND RECYCLING PROPERTY.—For pur-
poses of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘qualified reuse and 
recycling property’ means any reuse and recycling prop-
erty— 
‘‘(i) to which this section applies, 
‘‘(ii) which has a useful life of at least 5 years, 
‘‘(iii) the original use of which commences with 
the taxpayer after August 31, 2008, and