I 
110TH CONGRESS 
1ST SESSION H. R. 4612 
To amend the Internal Revenue Code of 1986 to provide an investment 
credit for electric generation facilities with climate neutral combustion. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 13, 2007 
Mr. COSTA (for himself, Mr. MCCARTHY of California, and Mr. DANIEL E. 
LUNGREN of California) 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 investment credit for electric generation facilities with 
climate neutral combustion. 
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 ‘‘Climate Neutral Elec-
tricity Generation Act of 2007’’. 
SEC. 2. CLIMATE NEUTRAL COMBUSTION CREDIT. 
(a) IN GENERAL.—Section 46 of the Internal Rev-
enue Code of 1986 (relating to amount of credit) is 
amended by striking ‘‘and’’ at the end of paragraph (3), 
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by striking the period at the end of paragraph (4) and 
inserting ‘‘, and’’, and by adding at the end the following 
new paragraph: 
‘‘(5) the climate neutral combustion credit.’’. 
(b) AMOUNT OF CREDIT.—Subpart E of part IV of 
subchapter A of chapter 1 of such Code (relating to rules 
for computing investment credit) is amended by inserting 
after section 48B the following new section: 
‘‘SEC. 48C. CLIMATE NEUTRAL COMBUSTION CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 46, the 
climate neutral combustion credit for any taxable year is 
an amount equal to 20 percent of the qualified investment 
for such taxable year. 
‘‘(b) QUALIFIED INVESTMENT.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the qualified investment for any taxable year is 
the basis of any property placed in service by the 
taxpayer during such taxable year which is part of 
a climate neutral combustion facility— 
‘‘(A)(i) the construction, reconstruction, or 
erection of which is completed by the taxpayer, 
or 
‘‘(ii) which is acquired by the taxpayer if 
the original use of such property commences 
with the taxpayer, and 
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‘‘(B) with respect to which depreciation (or 
amortization in lieu of depreciation) is allow-
able. 
‘‘(2) SPECIAL RULE FOR CERTAIN SUBSIDIZED 
PROPERTY.—Rules similar to section 48(a)(4) shall 
apply for purposes of this section. 
‘‘(3) CERTAIN QUALIFIED PROGRESS EXPENDI-
TURES RULES MADE APPLICABLE.—Rules similar to 
the rules of subsections (c)(4) and (d) of section 46 
(as in effect on the day before the enactment of the 
Revenue Reconciliation Act of 1990) shall apply for 
purposes of this section. 
‘‘(c) CLIMATE NEUTRAL COMBUSTION FACILITY.— 
For purposes of this section, the term ‘climate neutral 
combustion facility’ means any facility which— 
‘‘(1) burns matter to produce electricity, 
‘‘(2) captures the carbon dioxide released dur-
ing combustion and uses such carbon dioxide to re-
cover hydrocarbon fuel from below ground, and 
‘‘(3) produces no atmospheric emissions of mer-
cury or greenhouse gasses and no emissions that 
form fine particulate, smog, or acid rain. 
‘‘(d) DENIAL OF DOUBLE BENEFIT.—A credit shall 
not be allowed under this section for any qualified invest-
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ment for which a credit is allowed under section 48A or 
48B.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 49(a)(1)(C) of such Code is amend-
ed by striking ‘‘and’’ at the end of clause (iii), by 
striking the period at the end of clause (iv) and in-
serting ‘‘, and’’, and by adding at the end the fol-
lowing new clause: 
‘‘(v) the basis of any property which 
is part of a qualifying climate neutral com-
bustion facility.’’. 
(2) The table of sections for subpart E of part 
IV of subchapter A of chapter 1 of such Code is 
amended by inserting after the item relating to sec-
tion 48B the following new item: 
‘‘Sec. 48C. Climate neutral combustion credit.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to periods after the date of the 
enactment of this Act, under rules similar to the rules of 
section 48(m) of the Internal Revenue Code of 1986 (as 
in effect on the day before the date of the enactment of 
the Revenue Reconciliation Act of 1990). 
Æ 
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