116 
loan commitment for such portion prior to the issue date 
of such issue. 
‘‘(l) OTHER DEFINITIONS AND SPECIAL RULES.— 
For purposes of this section— 
‘‘(1) BOND.—The term ‘bond’ includes any ob-
ligation. 
‘‘(2) POOLED
FINANCING
BOND.—The term 
‘pooled financing bond’ shall have the meaning given 
such term by section 149(f)(4)(A). 
‘‘(3) PARTNERSHIP; 
S
CORPORATION; 
AND 
OTHER PASS-THRU ENTITIES.— 
‘‘(A) IN
GENERAL.—Under regulations 
prescribed by the Secretary, in the case of a 
partnership, trust, S corporation, or other pass- 
thru entity, rules similar to the rules of section 
41(g) shall apply with respect to the credit al-
lowable under subsection (a). 
‘‘(B) NO BASIS ADJUSTMENT.—Rules simi-
lar to the rules under section 1397E(i)(2) shall 
apply. 
‘‘(4) BONDS
HELD
BY
REGULATED
INVEST-
MENT COMPANIES.—If any clean energy coal bond is 
held by a regulated investment company, the credit 
determined under subsection (a) shall be allowed to 
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shareholders of such company under procedures pre-
scribed by the Secretary. 
‘‘(5) TREATMENT FOR ESTIMATED TAX PUR-
POSES.—Solely for purposes of sections 6654 and 
6655, the credit allowed by this section to a tax-
payer by reason of holding a clean energy coal bond 
on a credit allowance date shall be treated as if it 
were a payment of estimated tax made by the tax-
payer on such date. 
‘‘(6) REPORTING.—Issuers of clean energy coal 
bonds shall submit reports similar to the reports re-
quired under section 149(e). 
‘‘(m) TERMINATION.—This section shall not apply 
with respect to any bond issued after December 31, 
2010.’’. 
(b) REPORTING.—Subsection (d) of section 6049 of 
the Internal Revenue Code of 1986 (relating to returns 
regarding payments of interest) is amended by adding at 
the end the following new paragraph: 
‘‘(9) REPORTING OF CREDIT ON CLEAN ENERGY 
COAL BONDS.— 
‘‘(A) IN GENERAL.—For purposes of sub-
section (a), the term ‘interest’ includes amounts 
includible in gross income under section 54A(g) 
and such amounts shall be treated as paid on 
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the credit allowance date (as defined in section 
54A(b)(4)). 
‘‘(B) 
REPORTING
TO
CORPORATIONS, 
ETC.—Except as otherwise provided in regula-
tions, in the case of any interest described in 
subparagraph (A), subsection (b)(4) shall be 
applied without regard to subparagraphs (A), 
(H), (I), (J), (K), and (L)(i) of such subsection. 
‘‘(C) REGULATORY AUTHORITY.—The Sec-
retary may prescribe such regulations as are 
necessary or appropriate to carry out the pur-
poses of this paragraph, including regulations 
which require more frequent or more detailed 
reporting.’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart H of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following new item: 
‘‘Sec. 54A. Credit to holders of clean energy coal bonds.’’. 
(d) ISSUANCE OF REGULATIONS.—The Secretary of 
the Treasury shall issues regulations required under sec-
tion 54A of the Internal Revenue Code of 1986 (as added 
by this section) not later than 120 days after the date 
of the enactment of this Act. 
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(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to bonds issued after December 
31, 2006. 
SEC. 510. INCREASE IN CREDIT LIMITATION FOR QUALI-
FYING GASIFICATION PROJECTS. 
(a) IN GENERAL.—Paragraph (1) of section 48B(d) 
of the Internal Revenue Code of 1986 is amended by strik-
ing ‘‘$350,000,000’’ and inserting ‘‘$4,000,000,000’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect as if included in section 1307 
of the Energy Policy Act of 2005. 
SEC. 511. MODIFICATION OF QUALIFYING ADVANCED COAL 
PROJECT CREDIT. 
(a) IN GENERAL.—Subparagraph (C) of section 
48A(e)(1) of the Internal Revenue Code of 1986 is amend-
ed by inserting ‘‘(300 megawatts in the case of projects 
using subbituminous or lignite as a primary feedstock)’’ 
after ‘‘400 megawatts’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect as if included in section 1307 
of the Energy Policy Act of 2005. 
SEC. 512. GREAT PLAINS SYNFUELS TRUST. 
(a) IN GENERAL.—Not later than 90 days after the 
date of enactment of this Act, the Secretary shall— 
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(1) establish a trust to be known as the ‘‘Great 
Plains Synfuels Trust’’ (referred to in this section as 
the ‘‘Trust’’); and 
(2) deposit in the Trust 50 percent of the rev-
enue-sharing payments that would otherwise be re-
ceived under the asset purchase agreement between 
the Secretary and the Dakota Gasification Company, 
dated October 7, 1988, and as in effect on the date 
of enactment of this Act, as a result of the operation 
of the Great Plains Synfuels Plant. 
(b) COAL DEVELOPMENT PROGRAM.—Not later than 
180 days after the date of enactment of this Act, the Sec-
retary shall— 
(1) establish an advanced clean low-rank coal 
development program; and 
(2) use funds from the Trust, on such cost- 
sharing basis as the Secretary shall establish, to 
carry out the program at the Great Plains Synfuels 
Plant. 
TITLE VI—ENERGY EFFICIENCY 
SEC. 601. ENERGY CREDIT FOR COMBINED HEAT AND 
POWER SYSTEM PROPERTY. 
(a) IN GENERAL.—Section 48(a)(3)(A) of the Inter-
nal Revenue Code of 1986 (defining energy property) is 
by striking ‘‘or’’ at the end of clause (iii), by inserting 
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‘‘or’’ at the end of clause (iv), and by adding at the end 
the following new clause: 
‘‘(v) combined heat and power system 
property,’’. 
(b) COMBINED HEAT AND POWER SYSTEM PROP-
ERTY.—Section 48 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new sub-
section: 
‘‘(d) COMBINED HEAT AND POWER SYSTEM PROP-
ERTY.—For purposes of subsection (a)(3)(A)(v)— 
‘‘(1) COMBINED
HEAT
AND
POWER
SYSTEM 
PROPERTY.—The term ‘combined heat and power 
system property’ means property comprising a sys-
tem— 
‘‘(A) which uses the same energy source 
for the simultaneous or sequential generation of 
electrical power, mechanical shaft power, or 
both, in combination with the generation of 
steam or other forms of useful thermal energy 
(including heating and cooling applications), 
‘‘(B) which has an electrical capacity of 
not more than 15 megawatts or a mechanical 
energy capacity of not more than 2,000 horse-
power or an equivalent combination of electrical 
and mechanical energy capacities, 
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‘‘(C) which produces— 
‘‘(i) at least 20 percent of its total 
useful energy in the form of thermal en-
ergy which is not used to produce electrical 
or mechanical power (or combination 
thereof), and 
‘‘(ii) at least 20 percent of its total 
useful energy in the form of electrical or 
mechanical power (or combination thereof), 
‘‘(D) the energy efficiency percentage of 
which exceeds 60 percent, and 
‘‘(E) which is placed in service before Jan-
uary 1, 2011. 
‘‘(2) SPECIAL RULES.— 
‘‘(A) 
ENERGY
EFFICIENCY
PERCENT-
AGE.—For purposes of this subsection, the en-
ergy efficiency percentage of a system is the 
fraction— 
‘‘(i) the numerator of which is the 
total useful electrical, thermal, and me-
chanical power produced by the system at 
normal operating rates, and expected to be 
consumed in its normal application, and 
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‘‘(ii) the denominator of which is the 
lower heating value of the fuel sources for 
the system. 
‘‘(B) DETERMINATIONS
MADE
ON
BTU 
BASIS.—The energy efficiency percentage and 
the percentages under paragraph (1)(C) shall 
be determined on a Btu basis. 
‘‘(C) INPUT AND OUTPUT PROPERTY NOT 
INCLUDED.—The term ‘combined heat and 
power system property’ does not include prop-
erty used to transport the energy source to the 
facility or to distribute energy produced by the 
facility. 
‘‘(D) 
CERTAIN
EXCEPTION
NOT
TO 
APPLY.—The first sentence of the matter in 
subsection (a)(3) which follows subparagraph 
(D) thereof shall not apply to combined heat 
and power system property. 
‘‘(3) SYSTEMS USING BAGASSE.—If a system is 
designed to use bagasse for at least 90 percent of 
the energy source— 
‘‘(A) paragraph (1)(D) shall not apply, but 
‘‘(B) the amount of credit determined 
under subsection (a) with respect to such sys-
tem shall not exceed the amount which bears 
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the same ratio to such amount of credit (deter-
mined without regard to this paragraph) as the 
energy efficiency percentage of such system 
bears to 60 percent.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to periods after December 31, 
2006, in taxable years ending after such date, under rules 
similar to the rules of section 48(m) of the Internal Rev-
enue Code of 1986 (as in effect on the day before the date 
of the enactment of the Revenue Reconciliation Act of 
1990). 
SEC. 602. EXTENSION OF NEW ENERGY EFFICIENT HOME 
CREDIT. 
(a) IN GENERAL.—Section 45L(g) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘December 
31, 2007’’ and inserting ‘‘December 31, 2010’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to qualified new energy efficient 
homes acquired after the date of enactment of this Act, 
in taxable years ending after such date. 
SEC. 603. MODIFICATION AND EXTENSION OF ENERGY EF-
FICIENT COMMERCIAL BUILDINGS DEDUC-
TION. 
(a) INCREASE IN CREDIT AMOUNT.— 
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(1) IN GENERAL.—Subparagraph (A) of section 
179D(b)(1) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘$1.80’’ and inserting ‘‘$2.25’’. 
(2) PARTIAL ALLOWANCE.—Subparagraph (A) 
of section 179D(1) of such Code is amended— 
(A) by striking ‘‘$.60’’ and inserting 
‘‘$.75’’, and 
(B) by striking ‘‘$1.80’’ and inserting 
‘‘$2.25’’. 
(b) EXTENSION.—Section 179D(g) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘December 
31, 2007’’ and inserting ‘‘December 31, 2010’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2006. 
SEC. 604. EXTENSION OF NONBUSINESS ENERGY PROP-
ERTY. 
(a) IN GENERAL.—Section 25C(g) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘December 
31, 2007’’ and inserting ‘‘December 31, 2010’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act. 
Æ 
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