‘‘(1) INCREASED CREDIT FOR QUALIFIED CEL-
LULOSIC ENERGY FEEDSTOCK.— 
‘‘(A) IN GENERAL.—In the case of biogas 
is produced from qualified cellulosic energy 
feedstock, subsection (a) shall be applied by 
substituting the dollar amount in effect for the 
taxable year under subsection (a)(1) with an 
amount equal to 125 percent of such dollar 
amount. 
‘‘(B) QUALIFIED
CELLULOSIC
ENERGY 
FEEDSTOCK.—For purposes of subparagraph 
(A), the term ‘qualified cellulosic energy feed-
stock’ means an qualified energy feedstock that 
is 
composed 
of 
any 
lignocellulosic 
or 
hemicellulosic matter. 
‘‘(2) PRODUCTION ATTRIBUTABLE TO THE TAX-
PAYER.—In the case of a facility in which more than 
1 person has an ownership interest, except to the ex-
tent provided in regulations prescribed by the Sec-
retary, production from the qualified facility shall be 
allocated among such persons in proportion to their 
respective ownership interests in the gross sales 
from such qualified facility. 
‘‘(3) RELATED
PERSONS.—Persons shall be 
treated as related to each other if such persons 
VerDate Nov 24 2008 
06:51 Feb 25, 2009
Jkt 079200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H1158.IH
H1158
wwoods2 on PRODPC68 with BILLS
would be treated as a single employer under the reg-
ulations prescribed under section 52(b). In the case 
of a corporation which is a member of an affiliated 
group of corporations filing a consolidated return, 
such corporation shall be treated as selling biogas to 
an unrelated person if such biogas is sold to such a 
person by another member of such group. 
‘‘(4) PASS-THRU IN THE CASE OF ESTATES AND 
TRUSTS.—Under regulations prescribed by the Sec-
retary, rules similar to the rules of subsection (d) of 
section 52 shall apply. 
‘‘(5) COORDINATION WITH CREDIT FROM PRO-
DUCING
FUEL
FROM
A
NONCONVENTIONAL 
SOURCE.—The amount of biogas produced and sold 
or used by the taxpayer during any taxable year 
which is taken into account under this section shall 
be reduced by the amount of biogas produced and 
sold by the taxpayer in such taxable year which is 
taken into account under section 45K. 
‘‘(6) COORDINATION WITH CREDIT FROM PRO-
DUCING
ELECTRICITY
FROM
RENEWABLE
RE-
SOURCES.—The amount of biogas produced and sold 
or used by the taxpayer during any taxable year 
which is taken into account under this section shall 
be reduced by the amount of biogas produced and 
VerDate Nov 24 2008 
06:51 Feb 25, 2009
Jkt 079200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H1158.IH
H1158
wwoods2 on PRODPC68 with BILLS
sold by the taxpayer in such taxable year which is 
taken into account under section 45. 
‘‘(7) CREDIT ELIGIBILITY IN THE CASE OF GOV-
ERNMENT-OWNED FACILITIES.—In the case of any 
facility producing biogas and that is owned by a gov-
ernmental unit, subparagraph (B) of subsection 
(b)(3) shall be applied by substituting ‘is leased or 
operated by the taxpayer’ for ‘is owned by the tax-
payer’. 
‘‘(d) TRANSFERABILITY OF CREDIT.— 
‘‘(1) IN GENERAL.—A taxpayer may transfer 
the credit under this section through an assignment 
to any person. Such transfer may be revoked only 
with the consent of the Secretary. 
‘‘(2) REGULATIONS.—The Secretary shall pre-
scribe such regulations as necessary to ensure that 
any credit transferred under paragraph (1) is 
claimed once and not reassigned by such other per-
son. 
‘‘(e) ADJUSTMENT BASED ON INFLATION.— 
‘‘(1) IN GENERAL.—The dollar amount under 
subsection (a)(1) shall be adjusted by multiplying 
such amount by the inflation adjustment factor for 
the calendar year in which the sale occurs. If any 
amount as increased under the preceding sentence is 
VerDate Nov 24 2008 
06:51 Feb 25, 2009
Jkt 079200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H1158.IH
H1158
wwoods2 on PRODPC68 with BILLS
not a multiple of 1 cent, such amount shall be 
rounded to the nearest multiple of 1 cent. 
‘‘(2) COMPUTATION
OF
INFLATION
ADJUST-
MENT FACTOR.— 
‘‘(A) IN GENERAL.—The Secretary shall, 
not later than April 1 of each calendar year, de-
termine and publish in the Federal Register the 
inflation adjustment factor in accordance with 
this paragraph. 
‘‘(B) INFLATION ADJUSTMENT FACTOR.— 
The term ‘inflation adjustment factor’ means, 
with respect to a calendar year, a fraction the 
numerator of which is the GDP implicit price 
deflator for the preceding calendar year and the 
denominator of which is the GDP implicit price 
deflator for calendar year 2007. The term 
‘GDP implicit price deflator’ means the most 
recent revision of the implicit price deflator for 
the gross domestic product as computed and 
published by the Department of Commerce be-
fore March 15 of the calendar year.’’. 
(b) CREDIT TREATED AS BUSINESS CREDIT.—Sec-
tion 38(b) of the Internal Revenue Code of 1986 is amend-
ed by striking ‘‘plus’’ at the end of paragraph (34), by 
striking the period at the end of paragraph (35) and in-
VerDate Nov 24 2008 
06:51 Feb 25, 2009
Jkt 079200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H1158.IH
H1158
wwoods2 on PRODPC68 with BILLS