I 
110TH CONGRESS 
1ST SESSION H. R. 3105 
To amend the Internal Revenue Code of 1986 to expand the credit for 
electricity produced from certain renewable resources and the investment 
energy credit to include ocean thermal energy conversion projects. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 19, 2007 
Mr. FALEOMAVAEGA (for himself, Ms. BORDALLO, Mrs. CHRISTENSEN, and 
Ms. HIRONO) 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 expand 
the credit for electricity produced from certain renewable 
resources and the investment energy credit to include 
ocean thermal energy conversion projects. 
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 ‘‘Ocean Thermal Energy 
Tax and Energy Credits Act of 2007’’. 
SEC. 2. ELECTRICITY PRODUCED FROM CERTAIN RENEW-
ABLE RESOURCES. 
(a) OCEAN THERMAL ENERGY.— 
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(1) IN GENERAL.—Section 45(c)(1) of the In-
ternal Revenue Code of 1986 is amended by striking 
‘‘and’’ at the end of subparagraph (G), by striking 
the period at the end of subparagraph (H) and in-
serting ‘‘, and’’, and by adding at the end the fol-
lowing new subparagraph: 
‘‘(I) ocean thermal energy conversion.’’. 
(2) OCEAN THERMAL ENERGY CONVERSION.— 
Section 45(c) of such Code is amended by adding at 
the end the following new paragraph: 
‘‘(10) OCEAN
THERMAL
ENERGY
CONVER-
SION.—The term ‘ocean thermal energy conversion’ 
includes energy or water, or both, from ocean ther-
mal resources, including ocean thermal-cooling for 
community air conditioning.’’. 
(3) QUALIFIED
FACILITY.—Section 45(d) of 
such Code is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(10) QUALIFIED
OCEAN
THERMAL
ENERGY 
CONVERSION
FACILITY.—In the case of a facility 
using ocean thermal energy to produce electricity, 
the term ‘qualified facility’ means any facility owned 
by the taxpayer which is originally placed in service 
after December 31, 1993, and before January 1, 
2015.’’. 
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(b) PRODUCTION
IN
THE CERTAIN TERRITORIES 
TAKEN INTO ACCOUNT.— Section 45(e)(1) of such Code 
is amended by striking ‘‘or’’ at the end of subparagraph 
(A), by striking the period at the end of subparagraph 
(B) and inserting a comma, and by adding at the end the 
following new subparagraph: 
‘‘(C) in the case of sales with respect to 
electricity the production of which is attrib-
utable to ocean thermal energy conversion— 
‘‘(i) Guam, American Samoa, Com-
monwealth of the Northern Marianas Is-
lands, United States Virgin Islands, or 
Puerto Rico, including all territorial wa-
ters, seabed and subsoil of submarine 
areas thereof, 
‘‘(ii) Republic of the Marshall Islands, 
Federated States of Micronesia, or Repub-
lic of Palau, including all territorial waters, 
seabed and subsoil of submarine areas 
thereof, or 
‘‘(iii) any United States Government 
installation worldwide, including military 
bases, embassies and other facilities, 
whether owned or leased by the United 
States Government, including all areas set 
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forth in section 638 (all territorial waters, 
seabed and subsoil of submarine areas ad-
jacent to such installations).’’. 
(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. 3. ENERGY INVESTMENT CREDIT. 
(a) IN GENERAL.—Section 48(a)(3)(A) of the Inter-
nal Revenue Code of 1986 is amended by inserting the 
word ‘‘or’’ at the end of clause (iv), and adding after 
clause (iv) the following new clause: 
‘‘(v) equipment which uses ocean ther-
mal energy to generate electricity, or to 
cool (or provide cold water for use in) a 
structure, or to produce fresh water,’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to property placed in service 
after the date of the enactment of this Act. 
Æ 
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