H. R. 6—398
‘‘(ii) FORM AND EFFECT OF ELECTION.—An election 
under clause (i) for any taxable year shall be made 
on a timely filed return for such year. Such election, 
once made, shall be irrevocable for such taxable year. 
Such election shall not take effect unless the organiza-
tion designates the apportionment as such in a written 
notice mailed to its patrons during the payment period 
described in section 1382(d). 
‘‘(B) TREATMENT
OF
ORGANIZATIONS
AND
PATRONS.—
The amount of the credit apportioned to any patrons under 
subparagraph (A)— 
‘‘(i) shall not be included in the amount determined 
under subsection (a) with respect to the organization 
for the taxable year, and 
‘‘(ii) shall be included in the amount determined 
under subsection (a) for the first taxable year of each 
patron ending on or after the last day of the payment 
period (as defined in section 1382(d)) for the taxable 
year of the organization or, if earlier, for the taxable 
year of each patron ending on or after the date on 
which the patron receives notice from the cooperative 
of the apportionment. 
‘‘(C) SPECIAL RULES FOR DECREASE IN CREDITS FOR TAX-
ABLE YEAR.—If the amount of the credit of a cooperative 
organization determined under subsection (a) for a taxable 
year is less than the amount of such credit shown on 
the return of the cooperative organization for such year, 
an amount equal to the excess of— 
‘‘(i) such reduction, over 
‘‘(ii) the amount not apportioned to such patrons 
under subparagraph (A) for the taxable year, 
shall be treated as an increase in tax imposed by this 
chapter on the organization. Such increase shall not be 
treated as tax imposed by this chapter for purposes of 
determining the amount of any credit under this chapter. 
‘‘(D) ELIGIBLE COOPERATIVE DEFINED.—For purposes of 
this section the term ‘eligible cooperative’ means a coopera-
tive organization described in section 1381(a) which is 
owned more than 50 percent by agricultural producers 
or by entities owned by agricultural producers. For this 
purpose an entity owned by an agricultural producer is 
one that is more than 50 percent owned by agricultural 
producers.’’. 
(b) CONFORMING AMENDMENT.—The last sentence of section 
55(c)(1) is amended by inserting ‘‘45(e)(11)(C),’’ after ‘‘section’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years of cooperative organizations ending 
after the date of the enactment of this Act. 
SEC. 1303. CLEAN RENEWABLE ENERGY BONDS. 
(a) IN GENERAL.—Part IV of subchapter A of chapter 1 (relating 
to credits against tax) is amended by adding at the end the following 
new subpart:
H. R. 6—399
‘‘Subpart H—Nonrefundable Credit to Holders of 
Certain Bonds
‘‘Sec. 54. Credit to holders of clean renewable energy bonds.
‘‘SEC. 54. CREDIT TO HOLDERS OF CLEAN RENEWABLE ENERGY 
BONDS. 
‘‘(a) ALLOWANCE OF CREDIT.—If a taxpayer holds a clean renew-
able energy bond on one or more credit allowance dates of the 
bond occurring during any taxable year, there shall be allowed 
as a credit against the tax imposed by this chapter for the taxable 
year an amount equal to the sum of the credits determined under 
subsection (b) with respect to such dates. 
‘‘(b) AMOUNT OF CREDIT.— 
‘‘(1) IN GENERAL.—The amount of the credit determined 
under this subsection with respect to any credit allowance 
date for a clean renewable energy bond is 25 percent of the 
annual credit determined with respect to such bond. 
‘‘(2) ANNUAL CREDIT.—The annual credit determined with 
respect to any clean renewable energy bond is the product 
of— 
‘‘(A) the credit rate determined by the Secretary under 
paragraph (3) for the day on which such bond was sold, 
multiplied by 
‘‘(B) the outstanding face amount of the bond. 
‘‘(3) DETERMINATION.—For purposes of paragraph (2), with 
respect to any clean renewable energy bond, the Secretary 
shall determine daily or cause to be determined daily a credit 
rate which shall apply to the first day on which there is 
a binding, written contract for the sale or exchange of the 
bond. The credit rate for any day is the credit rate which 
the Secretary or the Secretary’s designee estimates will permit 
the issuance of clean renewable energy bonds with a specified 
maturity or redemption date without discount and without 
interest cost to the qualified issuer. 
‘‘(4) CREDIT ALLOWANCE DATE.—For purposes of this section, 
the term ‘credit allowance date’ means— 
‘‘(A) March 15, 
‘‘(B) June 15, 
‘‘(C) September 15, and 
‘‘(D) December 15. 
Such term also includes the last day on which the bond is 
outstanding. 
‘‘(5) SPECIAL RULE FOR ISSUANCE AND REDEMPTION.—In the 
case of a bond which is issued during the 3-month period 
ending on a credit allowance date, the amount of the credit 
determined under this subsection with respect to such credit 
allowance date shall be a ratable portion of the credit otherwise 
determined based on the portion of the 3-month period during 
which the bond is outstanding. A similar rule shall apply when 
the bond is redeemed or matures. 
‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.—The credit allowed 
under subsection (a) for any taxable year shall not exceed the 
excess of— 
‘‘(1) the sum of the regular tax liability (as defined in 
section 26(b)) plus the tax imposed by section 55, over
H. R. 6—400
‘‘(2) the sum of the credits allowable under this part (other 
than subpart C and this section). 
‘‘(d) CLEAN RENEWABLE ENERGY BOND.—For purposes of this 
section— 
‘‘(1) IN GENERAL.—The term ‘clean renewable energy bond’ 
means any bond issued as part of an issue if— 
‘‘(A) the bond is issued by a qualified issuer pursuant 
to an allocation by the Secretary to such issuer of a portion 
of the national clean renewable energy bond limitation 
under subsection (f)(2), 
‘‘(B) 95 percent or more of the proceeds of such issue 
are to be used for capital expenditures incurred by qualified 
borrowers for one or more qualified projects, 
‘‘(C) the qualified issuer designates such bond for pur-
poses of this section and the bond is in registered form, 
and 
‘‘(D) the issue meets the requirements of subsection 
(h). 
‘‘(2) QUALIFIED PROJECT; SPECIAL USE RULES.— 
‘‘(A) IN GENERAL.—The term ‘qualified project’ means 
any qualified facility (as determined under section 45(d) 
without regard to paragraph (10) and to any placed in 
service date) owned by a qualified borrower. 
‘‘(B) REFINANCING RULES.—For purposes of paragraph 
(1)(B), a qualified project may be refinanced with proceeds 
of a clean renewable energy bond only if the indebtedness 
being refinanced (including any obligation directly or 
indirectly refinanced by such indebtedness) was originally 
incurred by a qualified borrower after the date of the 
enactment of this section. 
‘‘(C) REIMBURSEMENT.—For purposes of paragraph 
(1)(B), a clean renewable energy bond may be issued to 
reimburse a qualified borrower for amounts paid after the 
date of the enactment of this section with respect to a 
qualified project, but only if— 
‘‘(i) prior to the payment of the original expendi-
ture, the qualified borrower declared its intent to 
reimburse such expenditure with the proceeds of a 
clean renewable energy bond, 
‘‘(ii) not later than 60 days after payment of the 
original expenditure, the qualified issuer adopts an 
official intent to reimburse the original expenditure 
with such proceeds, and 
‘‘(iii) the reimbursement is made not later than 
18 months after the date the original expenditure is 
paid. 
‘‘(D) TREATMENT OF CHANGES IN USE.—For purposes 
of paragraph (1)(B), the proceeds of an issue shall not 
be treated as used for a qualified project to the extent 
that a qualified borrower or qualified issuer takes any 
action within its control which causes such proceeds not 
to be used for a qualified project. The Secretary shall 
prescribe regulations specifying remedial actions that may 
be taken (including conditions to taking such remedial 
actions) to prevent an action described in the preceding 
sentence from causing a bond to fail to be a clean renewable 
energy bond.