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considered to be made to a section or other provision of the
Internal Revenue Code of 1986.
Subtitle A—Electricity
Infrastructure
SEC. 1501. EXTENSION AND MODIFICATION OF RENEWABLE
ELECTRICITY PRODUCTION CREDIT.
(a) 3-YEAR EXTENSION FOR CERTAIN FACILITIES.—
Section 45(d) (relating to qualified facilities) is amended—
(1) by striking ‘‘January 1, 2006’’ each place it
appears in paragraphs (1), (2), (3), (5), (6), and (7)
and inserting ‘‘January 1, 2009’’, and
(2) by striking ‘‘January 1, 2006’’ in paragraph
(4) and inserting ‘‘January 1, 2009 (January 1,
2006, in the case of a facility using solar energy)’’.
(b) 
INCREASE
IN
CREDIT
PERIOD.—Section
45(b)(4)(B) (relating to credit period) is amended—
(1) by inserting ‘‘or clause (iii)’’ after ‘‘clause
(ii)’’ in clause (i), and
(2) by adding at the end the following:
‘‘(iii) TERMINATION.—Clause (i) shall
not apply to any facility placed in service
after the date of the enactment of this
clause.’’.
(c) EXPANSION OF QUALIFIED RESOURCES TO IN-
CLUDE FUEL CELLS.—
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(1) IN
GENERAL.—Section 45(c)(1) (defining
qualified energy resources) is amended by striking
‘‘and’’ at the end of subparagraph (F), by striking the
period at the end of subparagraph (G) and inserting
‘‘, and’’, and by adding at the end the following new
subparagraph:
‘‘(H) fuel cells.’’.
(2) FUEL CELL FACILITY.—Section 45(d) (relat-
ing to qualified facilities) is amended by adding at
the end the following new paragraph:
‘‘(9) FUEL CELL FACILITY.—In the case of a fa-
cility using an integrated system comprised of a fuel
cell stack assembly and associated balance of plant
components which converts a fuel into electricity
using electrochemical means, the term ‘qualified facil-
ity’ means any facility owned by the taxpayer
which—
‘‘(A) is originally placed in service after
December 31, 2005, and before January 1, 2009,
‘‘(B) has a nameplate capacity rating of at
least 0.5 megawatt of electricity, and
‘‘(C) has an electricity-only generation effi-
ciency greater than 30 percent.’’.
(3) CONFORMING AMENDMENTS RELATING TO CO-
ORDINATION WITH ENERGY CREDIT.—
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(A) IN GENERAL.—Section 45(e) (relating
to definitions and special rules) is amended by
adding at the end the following new paragraph:
‘‘(10) COORDINATION WITH ENERGY CREDIT.—
The term ‘qualified facility’ shall not include any
property described in section 48(a)(3) the basis of
which is taken into account by the taxpayer for pur-
poses of determining the energy credit under section
48.’’.
(B) 
CONFORMING
AMENDMENT.—Section
45(d)(4) is amended by striking the last sentence.
(d) EXPANSION OF QUALIFIED RESOURCES TO CER-
TAIN HYDROPOWER.—
(1) IN
GENERAL.—Section 45(c)(1) (defining
qualified energy resources), as amended by this Act,
is amended by striking ‘‘and’’ at the end of subpara-
graph (G), by striking the period at the end of sub-
paragraph (H) and inserting ‘‘, and’’, and by adding
at the end the following new subparagraph:
‘‘(I) qualified hydropower production.’’.
(2) CREDIT RATE.—Section 45(b)(4)(A) (relating
to credit rate) is amended by striking ‘‘or (7)’’ and
inserting ‘‘(7), or (10)’’.
(3) DEFINITION OF RESOURCES.—Section 45(c)
(relating to qualified energy resources and refined
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HR 6 EAS
coal) is amended by adding at the end the following
new paragraph:
‘‘(8) QUALIFIED HYDROPOWER PRODUCTION.—
‘‘(A) IN GENERAL.—The term ‘qualified hy-
dropower production’ means—
‘‘(i) in the case of any hydroelectric
dam which was placed in service on or be-
fore the date of the enactment of this para-
graph, the incremental hydropower produc-
tion for the taxable year, and
‘‘(ii) in the case of any nonhydro-
electric dam described in subparagraph (C),
the hydropower production from the facility
for the taxable year.
‘‘(B) DETERMINATION OF INCREMENTAL HY-
DROPOWER PRODUCTION.—
‘‘(i) IN
GENERAL.—For purposes of
subparagraph (A), incremental hydropower
production for any taxable year shall be
equal to the percentage of average annual
hydropower production at the facility at-
tributable to the efficiency improvements or
additions of capacity placed in service after
the date of the enactment of this paragraph,
determined by using the same water flow
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information used to determine an historic
average annual hydropower production
baseline for such facility. Such percentage
and baseline shall be certified by the Fed-
eral Energy Regulatory Commission.
‘‘(ii) 
OPERATIONAL
CHANGES
DIS-
REGARDED.—For purposes of clause (i), the
determination of incremental hydropower
production shall not be based on any oper-
ational changes at such facility not directly
associated with the efficiency improvements
or additions of capacity.
‘‘(C) NONHYDROELECTRIC DAM.—For pur-
poses of subparagraph (A), a facility is described
in this subparagraph if—
‘‘(i) the facility is licensed by the Fed-
eral Energy Regulatory Commission and
meets all other applicable environmental, li-
censing, and regulatory requirements,
‘‘(ii) the facility was placed in service
before the date of the enactment of this
paragraph and did not produce hydro-
electric power on the date of the enactment
of this paragraph, and
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‘‘(iii) turbines or other generating de-
vices are to be added to the facility after
such date to produce hydroelectric power,
but only if there is not any enlargement of
the diversion structure, or construction or
enlargement of a bypass channel, or the im-
poundment or any withholding of any addi-
tional water from the natural stream chan-
nel.
(4) FACILITIES.—Section 45(d) (relating to
qualified facilities), as amended by this Act, is
amended by adding at the end the following new
paragraph:
‘‘(10) QUALIFIED
HYDROPOWER
FACILITY.—In
the case of a facility producing qualified hydroelectric
production described in subsection (c)(8), the term
‘qualified facility’ means—
‘‘(A) in the case of any facility producing
incremental hydropower production, such facility
but only to the extent of its incremental hydro-
power production attributable to efficiency im-
provements or additions to capacity described in
subsection (c)(8)(B) placed in service after the
date of the enactment of this paragraph and be-
fore January 1, 2009, and
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‘‘(B) any other facility placed in service
after the date of the enactment of this paragraph
and before January 1, 2009.
‘‘(C) CREDIT
PERIOD.—In the case of a
qualified facility described in subparagraph (A),
the 10-year period referred to in subsection (a)
shall be treated as beginning on the date the effi-
ciency improvements or additions to capacity
are placed in service.’’.
(e) TECHNICAL AMENDMENT RELATED
TO TRASH
COMBUSTION FACILITIES.—Section 45(d)(7) (relating to
trash combustion facilities) is amended by adding at the
end the following: ‘‘Such term shall include a new unit
placed in service in connection with a facility placed in
service on or before the date of the enactment of this para-
graph, but only to the extent of the increased amount of
electricity produced at the facility by reason of such new
unit.’’.
(f) ADDITIONAL TECHNICAL AMENDMENTS RELATED
TO SECTION 710 OF THE AMERICAN JOBS CREATION ACT
OF 2004.—
(1) Clause (ii) of section 45(b)(4)(B) is amended
by striking ‘‘the date of the enactment of this Act’’
and inserting ‘‘January 1, 2005,’’.
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(2) Clause (ii) of section 45(c)(3)(A) is amended
by inserting ‘‘or any nonhazardous lignin waste ma-
terial’’ after ‘‘cellulosic waste material’’.
(3) Subsection (e) of section 45 is amended by
striking paragraph (6).
(4)(A) Paragraph (9) of section 45(e) is amended
to read as follows:
‘‘(9) COORDINATION
WITH
CREDIT
FOR
PRO-
DUCING FUEL FROM A NONCONVENTIONAL SOURCE.—
‘‘(A) IN GENERAL.—The term ‘qualified fa-
cility’ shall not include any facility which pro-
duces electricity from gas derived from the bio-
degradation of municipal solid waste if such bio-
degradation occurred in a facility (within the
meaning of section 29) the production from
which is allowed as a credit under section 29 for
the taxable year or any prior taxable year.
‘‘(B) REFINED COAL FACILITIES.—The term
‘refined coal production facility’ shall not in-
clude any facility the production from which is
allowed as a credit under section 29 for the tax-
able year or any prior taxable year.’’.
(B) Subparagraph (C) of section 45(e)(8) is
amended by striking ‘‘and (9)’’.
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(5) Subclause (I) of section 168(e)(3)(B)(vi) is
amended to read as follows:
‘‘(I) is described in subparagraph
(A) of section 48(a)(3) (or would be so
described if ‘solar and wind’ were sub-
stituted for ‘solar’ in clause (i) thereof
and the last sentence of such section
did not apply to such subparagraph),’’.
(6) Paragraph (4) of section 710(g) of the Amer-
ican Jobs Creation Act of 2004 is amended by strik-
ing ‘‘January 1, 2004’’ and inserting ‘‘January 1,
2005’’.
(g) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section shall
take effect of the date of the enactment of this Act.
(2) TECHNICAL AMENDMENTS.—The amendments
made by subsections (e) and (f) shall take effect as if
included in the amendments made by section 710 of
the American Jobs Creation Act of 2004.
SEC. 1502. APPLICATION OF SECTION 45 CREDIT TO AGRI-
CULTURAL COOPERATIVES.
(a) IN GENERAL.—Section 45(e) (relating to defini-
tions and special rules), as amended by this Act, is amended
by adding at the end the following:
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‘‘(11) ALLOCATION OF CREDIT TO PATRONS OF
AGRICULTURAL COOPERATIVE.—
‘‘(A) ELECTION TO ALLOCATE.—
‘‘(i) IN GENERAL.—In the case of an
eligible cooperative organization, any por-
tion of the credit determined under sub-
section (a) for the taxable year may, at the
election of the organization, be apportioned
among patrons of the organization on the
basis of the amount of business done by the
patrons during the taxable year.
‘‘(ii) FORM
AND
EFFECT
OF
ELEC-
TION.—An election under clause (i) for any
taxable year shall be made on a timely filed
return for such year. Such election, once
made, shall be irrevocable for such taxable
year.
‘‘(B) TREATMENT OF ORGANIZATIONS AND
PATRONS.—The amount of the credit apportioned
to any patrons under subparagraph (A)—
‘‘(i) shall not be included in the
amount determined under subsection (a)
with respect to the organization for the tax-
able year, and
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‘‘(ii) shall be included in the amount
determined under subsection (a) for the tax-
able year of the patrons with or within
which the taxable year of the organization
ends.
‘‘(C) SPECIAL
RULES
FOR
DECREASE
IN
CREDITS FOR TAXABLE YEAR.—If the amount of
the credit of a cooperative organization deter-
mined under subsection (a) for a taxable year is
less than the amount of such credit shown on the
return of the cooperative organization for such
year, an amount equal to the excess of—
‘‘(i) such reduction, over
‘‘(ii) the amount not apportioned to
such patrons under subparagraph (A) for
the taxable year, shall be treated as an in-
crease in tax imposed by this chapter on the
organization. Such increase shall not be
treated as tax imposed by this chapter for
purposes of determining the amount of any
credit under this subpart or subpart A, B,
E, or G.
‘‘(D) ELIGIBLE
COOPERATIVE
DEFINED.—
For purposes of this section the term ‘eligible co-
operative’ means a cooperative organization de-