H. R. 6—417
net loss carryback shall be treated as references to 
the taxable year in which such election occurs. 
‘‘(vi) DEFINITIONS.—For purposes of this subpara-
graph— 
‘‘(I) ELECTRIC TRANSMISSION PROPERTY CAPITAL 
EXPENDITURES.—The term ‘electric transmission 
property capital expenditures’ means any expendi-
ture, chargeable to capital account, made by the 
taxpayer which is attributable to electric trans-
mission property used by the taxpayer in the trans-
mission at 69 or more kilovolts of electricity for 
sale. Such term shall not include any expenditure 
which may be refunded or the purpose of which 
may be modified at the option of the taxpayer 
so as to cease to be treated as an expenditure 
within the meaning of such term. 
‘‘(II) POLLUTION
CONTROL
FACILITY
CAPITAL 
EXPENDITURES.—The 
term 
‘pollution 
control 
facility capital expenditures’ means any expendi-
ture, chargeable to capital account, made by an 
electric utility company (as defined in section 2(3) 
of the Public Utility Holding Company Act (15 
U.S.C. 79b(3)), as in effect on the day before the 
date of the enactment of the Energy Tax Incentives 
Act of 2005) which is attributable to a facility 
which will qualify as a certified pollution control 
facility as determined under section 169(d)(1) by 
striking ‘before January 1, 1976,’ and by sub-
stituting ‘an identifiable’ for ‘a new identifiable’. 
Such term shall not include any expenditure which 
may be refunded or the purpose of which may 
be modified at the option of the taxpayer so as 
to cease to be treated as an expenditure within 
the meaning of such term.’’. 
Subtitle B—Domestic Fossil Fuel Security 
SEC. 1321. EXTENSION OF CREDIT FOR PRODUCING FUEL FROM A 
NONCONVENTIONAL 
SOURCE 
FOR 
FACILITIES 
PRO-
DUCING COKE OR COKE GAS. 
(a) IN GENERAL.—Section 29 (relating to credit for producing 
fuel from a nonconventional source) is amended by adding at the 
end the following new subsection: 
‘‘(h) EXTENSION
FOR FACILITIES PRODUCING COKE
OR COKE 
GAS.—Notwithstanding subsection (f)— 
‘‘(1) IN GENERAL.—In the case of a facility for producing 
coke or coke gas which was placed in service before January 
1, 1993, or after June 30, 1998, and before January 1, 2010, 
this section shall apply with respect to coke and coke gas 
produced in such facility and sold during the period— 
‘‘(A) beginning on the later of January 1, 2006, or 
the date that such facility is placed in service, and 
‘‘(B) ending on the date which is 4 years after the 
date such period began.
H. R. 6—418
‘‘(2) SPECIAL RULES.—In determining the amount of credit 
allowable under this section solely by reason of this sub-
section— 
‘‘(A) DAILY LIMIT.—The amount of qualified fuels sold 
during any taxable year which may be taken into account 
by reason of this subsection with respect to any facility 
shall not exceed an average barrel-of-oil equivalent of 4,000 
barrels per day. Days before the date the facility is placed 
in service shall not be taken into account in determining 
such average. 
‘‘(B) 
EXTENSION
PERIOD
TO
COMMENCE
WITH 
UNADJUSTED CREDIT AMOUNT.—For purposes of applying 
subsection (b)(2) to the $3 amount in subsection (a), in 
the case of fuels sold after 2005, subsection (d)(2)(B) shall 
be applied by substituting ‘2004’ for ‘1979’. 
‘‘(C) DENIAL
OF
DOUBLE
BENEFIT.—This subsection 
shall not apply to any facility producing qualified fuels 
for which a credit was allowed under this section for the 
taxable year or any preceding taxable year by reason of 
subsection (g).’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to fuel produced and sold after December 31, 2005, 
in taxable years ending after such date. 
SEC. 1322. MODIFICATION OF CREDIT FOR PRODUCING FUEL FROM 
A NONCONVENTIONAL SOURCE. 
(a) TREATMENT AS BUSINESS CREDIT.— 
(1) CREDIT
MOVED
TO
SUBPART
RELATING
TO
BUSINESS 
RELATED
CREDITS.—The Internal Revenue Code of 1986 is 
amended by redesignating section 29 as section 45K and by 
moving section 45K (as so redesignated) from subpart B of 
part IV of subchapter A of chapter 1 to the end of subpart 
D of part IV of subchapter A of chapter 1. 
(2) CREDIT TREATED AS BUSINESS CREDIT.—Section 38(b), 
as amended by this Act, is amended by striking ‘‘plus’’ at 
the end of paragraph (20), by striking the period at the end 
of paragraph (21) and inserting ‘‘, plus’’, and by adding at 
the end the following: 
‘‘(22) the nonconventional source production credit deter-
mined under section 45K(a).’’. 
(3) CONFORMING AMENDMENTS.— 
(A) Section 30(b)(3)(A) is amended by striking ‘‘sections 
27 and 29’’ and inserting ‘‘section 27’’. 
(B) Sections 43(b)(2), 45I(b)(2)(C)(i), and 613A(c)(6)(C) 
are each amended by striking ‘‘section 29(d)(2)(C)’’ and 
inserting ‘‘section 45K(d)(2)(C)’’. 
(C) Section 45(e)(9), as added by this Act, is amended— 
(i) by striking ‘‘section 29’’ each place it appears 
and inserting ‘‘section 45K’’, and 
(ii) by inserting ‘‘(or under section 29, as in effect 
on the day before the date of enactment of the Energy 
Tax Incentives Act of 2005, for any prior taxable year)’’ 
before the period at the end thereof. 
(D) Section 45I is amended— 
(i) in subsection (c)(2)(A) by striking ‘‘section 
29(d)(5))’’ and inserting ‘‘section 45K(d)(5))’’, and
H. R. 6—419
(ii) in subsection (d)(3) by striking ‘‘section 29’’ 
both places it appears and inserting ‘‘section 45K’’. 
(E) Section 45K(a), as redesignated by paragraph (1), 
is amended by striking ‘‘There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable 
year’’ and inserting ‘‘For purposes of section 38, if the 
taxpayer elects to have this section apply, the nonconven-
tional source production credit determined under this sec-
tion for the taxable year is’’. 
(F) Section 45K(b), as so redesignated, is amended 
by striking paragraph (6). 
(G) Section 53(d)(1)(B)(iii) is amended by striking 
‘‘under section 29’’ and all that follows through ‘‘or not 
allowed’’. 
(H) Section 55(c)(3) is amended by striking ‘‘29(b)(6),’’. 
(I) Subsection (a) of section 772 is amended by inserting 
‘‘and’’ at the end of paragraph (9), by striking paragraph 
(10), and by redesignating paragraph (11) as paragraph 
(10). 
(J) Paragraph (5) of section 772(d) is amended by 
striking ‘‘the foreign tax credit, and the credit allowable 
under section 29’’ and inserting ‘‘and the foreign tax credit’’. 
(K) The table of sections for subpart B of part IV 
of subchapter A of chapter 1 is amended by striking the 
item relating to section 29. 
(L) The table of sections for subpart D of part IV 
of subchapter A of chapter 1 is amended by inserting 
after the item relating to section 45I the following new 
item:
‘‘Sec. 45K. Credit for producing fuel from a nonconventional source.’’.
(b) AMENDMENTS CONFORMING TO THE REPEAL OF THE NATURAL 
GAS POLICY ACT OF 1978.— 
(1) IN GENERAL.—Section 29(c)(2)(A) (before redesignation 
under subsection (a) and as amended by section 1321) is 
amended— 
(A) by inserting ‘‘(as in effect before the repeal of 
such section)’’ after ‘‘1978’’, and 
(B) by striking subsection (e) and redesignating sub-
sections (f), (g), and (h) as subsections (e), (f), and (g), 
respectively. 
(2) CONFORMING
AMENDMENTS.—Section 29(g)(1) (before 
redesignation under subsection (a) and paragraph (1) of this 
subsection) is amended— 
(A) in subparagraph (A) by striking ‘‘subsection 
(f)(1)(B)’’ and inserting ‘‘subsection (e)(1)(B)’’, and 
(B) in subparagraph (B) by striking ‘‘subsection (f)’’ 
and inserting ‘‘subsection (e)’’. 
(c) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendments made by this section shall apply to credits deter-
mined under the Internal Revenue Code of 1986 for taxable 
years ending after December 31, 2005. 
(2) SUBSECTION (b).—The amendments made by subsection 
(b) shall take effect on the date of the enactment of this Act.
H. R. 6—420
SEC. 1323. TEMPORARY EXPENSING FOR EQUIPMENT USED IN 
REFINING OF LIQUID FUELS. 
(a) IN GENERAL.—Part VI of subchapter B of chapter 1 is 
amended by inserting after section 179B the following new section: 
‘‘SEC. 179C. ELECTION TO EXPENSE CERTAIN REFINERIES. 
‘‘(a) TREATMENT AS EXPENSES.—A taxpayer may elect to treat 
50 percent of the cost of any qualified refinery property as an 
expense which is not chargeable to capital account. Any cost so 
treated shall be allowed as a deduction for the taxable year in 
which the qualified refinery property is placed in service. 
‘‘(b) ELECTION.— 
‘‘(1) IN GENERAL.—An election under this section for any 
taxable year shall be made on the taxpayer’s return of the 
tax imposed by this chapter for the taxable year. Such election 
shall be made in such manner as the Secretary may by regula-
tions prescribe. 
‘‘(2) ELECTION IRREVOCABLE.—Any election made under this 
section may not be revoked except with the consent of the 
Secretary. 
‘‘(c) QUALIFIED REFINERY PROPERTY.— 
‘‘(1) IN GENERAL.—The term ‘qualified refinery property’ 
means any portion of a qualified refinery— 
‘‘(A) the original use of which commences with the 
taxpayer, 
‘‘(B) which is placed in service by the taxpayer after 
the date of the enactment of this section and before January 
1, 2012, 
‘‘(C) in the case any portion of a qualified refinery 
(other than a qualified refinery which is separate from 
any existing refinery), which meets the requirements of 
subsection (e), 
‘‘(D) which meets all applicable environmental laws 
in effect on the date such portion was placed in service, 
‘‘(E) no written binding contract for the construction 
of which was in effect on or before June 14, 2005, and 
‘‘(F)(i) the construction of which is subject to a written 
binding construction contract entered into before January 
1, 2008, 
‘‘(ii) which is placed in service before January 1, 2008, 
or 
‘‘(iii) in the case of self-constructed property, the 
construction of which began after June 14, 2005, and before 
January 1, 2008. 
‘‘(2) SPECIAL
RULE
FOR
SALE-LEASEBACKS.—For purposes 
of paragraph (1)(A), if property is— 
‘‘(A) originally placed in service after the date of the 
enactment of this section by a person, and 
‘‘(B) sold and leased back by such person within 3 
months after the date such property was originally placed 
in service, 
such property shall be treated as originally placed in service 
not earlier than the date on which such property is used under 
the leaseback referred to in subparagraph (B). 
‘‘(3) EFFECT OF WAIVER UNDER CLEAN AIR ACT.—A waiver 
under the Clean Air Act shall not be taken into account in