I
105TH CONGRESS
2D SESSION
H. R. 4407
To amend the Internal Revenue Code of 1986 to provide that the credit
for electricity produced from certain renewable resources shall apply
to electricity produced from all biomass facilities and to extend the
placed in service deadline for such credit.
IN THE HOUSE OF REPRESENTATIVES
AUGUST 5, 1998
Mr. HERGER (for himself, Mr. MATSUI, Mr. ENSIGN, Mr. MCCRERY, Mr.
MCDERMOTT, Mrs. THURMAN, Mr. SMITH of Oregon, Mr. POMBO, Mr.
HUNTER, Mr. DOOLEY
of California, Mr. GIBBONS, and Mr.
BLUMENAUER) 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
that the credit for electricity produced from certain re-
newable resources shall apply to electricity produced from
all biomass facilities and to extend the placed in service
deadline for such credit.
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 ‘‘Biomass Energy Eq-
uity Act of 1998’’.
SEC. 2. MODIFICATIONS TO CREDIT FOR ELECTRICITY
PRODUCED FROM RENEWABLE RESOURCES.
(a) QUALIFIED FACILITIES INCLUDE ALL BIOMASS
FACILITIES.—
(1) IN GENERAL.—Subparagraph (B) of section
45(c)(1) of the Internal Revenue Code of 1986 (re-
lating to credit for electricity produced from certain
renewable resources) is amended to read as follows:
‘‘(B) biomass.’’.
(2) BIOMASS DEFINED.—Paragraph (2) of sec-
tion 45(c) of such Code is amended to read as fol-
lows:
‘‘(2) BIOMASS.—The term ‘biomass’ means—
‘‘(A) any organic material from a plant
which is planted exclusively for purposes of
being used at a qualified facility to produce
electricity, and
‘‘(B) any solid, nonhazardous, cellulosic
waste material, which is segregated from other
waste materials, and which is derived from—
‘‘(i) any of the following forest-related
resources: mill residues, precommercial
thinnings, slash, and brush, but not includ-
ing old-growth timber,
‘‘(ii) urban sources, including waste
pallets, crates, and dunnage, manufactur-
ing and construction wood wastes, and
landscape or right-of-way tree trimmings,
but not including unsegregated municipal
solid waste (garbage), or
‘‘(iii) agriculture sources, including or-
chard tree crops, vineyard, grain, legumes,
sugar, and other crop by-products or resi-
dues.’’
(b) EXTENSION AND MODIFICATION OF PLACED IN
SERVICE RULES.—Paragraph (3) of section 45(c) of such
Code is amended to read as follows:
‘‘(3) QUALIFIED FACILITY.—
‘‘(A) WIND FACILITIES.—In the case of a
facility using wind 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 July 1, 2008.
‘‘(B) BIOMASS FACILITIES.—In the case of
a facility using biomass to produce electricity,
the term ‘qualified facility’ means, with respect
to any month, any facility owned by the tax-
payer which is originally placed in service before
July 1, 2008, if, for such month, biomass com-
prises not less than 75 percent (on a Btu basis)
of the average monthly fuel input of the facility
for the taxable year which includes such month.
‘‘(C) SPECIAL RULES.—In the case of a
qualified facility described in subparagraph
(B)—
‘‘(i) the 10-year period referred to in
subsection (a) shall be treated as beginning
no earlier than the date of the enactment
of this paragraph, and
‘‘(ii) subsection (b)(3) shall not apply
to any such facility originally placed in
service before January 1, 1993.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to electricity produced after the
date of the enactment of this Act.
Æ