I 
108TH CONGRESS 
1ST SESSION H. R. 1266
To amend the Internal Revenue Code of 1986 to modify the credit for 
the production of fuel from nonconventional sources and the credit for 
the production of electricity to include landfill gas. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 13, 2003
Mr. CAMP (for himself and Mr. FOLEY) 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 modify 
the credit for the production of fuel from nonconven-
tional sources and the credit for the production of elec-
tricity to include landfill gas.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. CREDIT FOR PRODUCING FUEL FROM LAND-
FILL GAS. 
(a) IN GENERAL.—Section 29 of the Internal Rev-
enue Code of 1986 (relating to credit for producing fuel 
from a nonconventional source) is amended by adding at 
the end the following new subsection:
‘‘(h) EXTENSION AND MODIFICATION FOR FACILI-
TIES PRODUCING QUALIFIED FUELS FROM LANDFILL 
GAS.—
‘‘(1) IN GENERAL.—In the case of a facility for 
producing qualified fuel from landfill gas which is 
placed in service after June 30, 1998, and before 
January 1, 2008, this section shall apply to fuel pro-
duced at such facility during the 5-year period be-
ginning on the later of—
‘‘(A) the date such facility was placed in 
service, or 
‘‘(B) the date of the enactment of this sub-
section. 
‘‘(2) REDUCTION OF CREDIT FOR PRODUCTION 
FROM CERTAIN LANDFILL GAS FACILITIES.—In the 
case of a facility to which paragraph (1) applies 
which is located at a landfill which is required pur-
suant to 40 CFR 60.752(b)(2) or 40 CFR 60.33c to 
install and operate a collection and control system 
which captures gas generated within the landfill, 
subsection (a)(1) shall be applied to gas so captured 
by substituting ‘$2’ for ‘$3’ for the taxable year dur-
ing which such system is required to be installed and 
operated.
‘‘(3) SPECIAL
RULES.—In determining the 
amount of credit allowable under this section solely 
by reason of this subsection—
‘‘(A) DAILY LIMIT.—The amount of quali-
fied 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 
200,000 cubic feet of natural gas 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.—In the 
case of fuels sold after 2003, subparagraph (B) 
of subsection (d)(2) shall be applied by sub-
stituting ‘2003’ for ‘1979’.’’. 
(b) ADDITIONAL DEFINITION.—Section 29(d) of the 
Internal Revenue Code of 1986 (relating to other defini-
tions and special rules) is amended by adding at the end 
the following new paragraph: 
‘‘(9) LANDFILL GAS FACILITY.—
‘‘(A) IN
GENERAL.—A facility for pro-
ducing qualified fuel from landfill gas, placed in 
service before, on, or after the date of the en-
actment of this paragraph, includes all wells, 
pipes, and other gas collection equipment in-
stalled as part of the facility over the life of the 
landfill, including any modifications or expan-
sions thereof, after the facility is first placed in 
service. 
‘‘(B) LANDFILL GAS.—The term ‘landfill 
gas’ means gas derived from the biodegradation 
of municipal solid waste.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to fuel sold after the date of the 
enactment of this Act. 
SEC. 2. EXTENSION AND EXPANSION OF CREDIT FOR PRO-
DUCTION OF ELECTRICITY TO PRODUCTION 
FROM LANDFILL GAS. 
(a) IN GENERAL.—Section 45(c)(1) of the Internal 
Revenue Code of 1986 (defining qualified energy re-
sources) is amended by striking ‘‘and’’ at the end of sub-
paragraph (B), by striking the period at the end of sub-
paragraph (C) and inserting ‘‘, and’’, and by adding at 
the end the following new subparagraph: 
‘‘(D) landfill gas.’’. 
(b) QUALIFIED FACILITY.—Section 45(c)(3) of the 
Internal Revenue Code of 1986 (relating to qualified facil-
ity) is amended by adding at the end the following new 
subparagraph: 
‘‘(D) LANDFILL
GAS
FACILITY.—In the 
case of a facility using landfill gas to produce 
electricity, the term ‘qualified facility’ means 
any such facility owned by the taxpayer which 
is originally placed in service before January 1, 
2008.’’. 
(c) SPECIAL RULES AND DEFINITIONS.—
(1) 
REDUCED
CREDIT
FOR
CERTAIN 
PREEFFECTIVE DATE FACILITIES.—Section 45(d) of 
the Internal Revenue Code of 1986 (relating to defi-
nitions and special rules) is amended by adding at 
the end the following new paragraph: 
‘‘(8) 
REDUCED
CREDIT
FOR
CERTAIN 
PREEFFECTIVE DATE FACILITIES.—In the case of 
any facility described in subparagraph (D) of para-
graph (3) which is placed in service before the date 
of the enactment of this subparagraph—
‘‘(A) subsection (a)(1) shall be applied by 
substituting ‘1.0 cents’ for cents ‘1.5 cents’, 
and 
‘‘(B) the 5-year period beginning on the 
date of the enactment of this paragraph shall
be substituted in lieu of the 10-year period in 
subsection (a)(2)(A)(ii).’’. 
(2) COORDINATION WITH SECTION 29.—Section 
45(c)(3) of such Code (relating to qualified facility), 
as amended by subsection (b), is amended by adding 
at the end the following new subparagraph: 
‘‘(E) COORDINATION WITH SECTION 29.—
The term ‘qualified facility’ shall not include 
any facility the production from which is taken 
into account in determining any credit under 
section 29 for the taxable year or any prior tax-
able year.’’. 
(3) LANDFILL
GAS.—Section 45(c) of such 
Code is amended by adding at the end the following 
new paragraph: 
‘‘(5) LANDFILL GAS.—The term ‘landfill gas’ 
means gas derived from the biodegradation of mu-
nicipal solid waste.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to electricity sold after the date 
of the enactment of this Act.
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