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(2) SECTION 25D.—Section 25D(b), as added 
by section 1304 of this Act, is amended by adding 
at the end the following new paragraph: 
‘‘(3) LIMITATION
BASED
ON
AMOUNT
OF 
TAX.—The credit allowed under subsection (a) for 
the taxable year shall not exceed the excess of— 
‘‘(A) the sum of the regular tax liability 
(as defined in section 26(b)) plus the tax im-
posed by section 55, over 
‘‘(B) the sum of the credits allowable 
under this subpart (other than this section) and 
section 27 for the taxable year.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 23(b)(4)(B) is amended by inserting 
‘‘and sections 25C and 25D’’ after ‘‘this section’’. 
(2) Section 24(b)(3)(B) is amended by striking 
‘‘and 25B’’ and inserting ‘‘, 25B, 25C, and 25D’’. 
(3) Section 25(e)(1)(C) is amended by inserting 
‘‘25C, and 25D’’ after ‘‘25B,’’. 
(4) Section 25B(g)(2) is amended by striking 
‘‘section 23’’ and inserting ‘‘sections 23, 25C, and 
25D’’. 
(5) Section 26(a)(1) is amended by striking 
‘‘and 25B’’ and inserting ‘‘25B, 25C, and 25D’’.
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(6) Section 904(h) is amended by striking ‘‘and 
25B’’ and inserting ‘‘25B, 25C, and 25D’’. 
(7) Section 1400C(d) is amended by striking 
‘‘and 25B’’ and inserting ‘‘25B, 25C, and 25D’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2003. 
SEC. 1347. BUSINESS RELATED ENERGY CREDITS ALLOWED 
AGAINST REGULAR AND MINIMUM TAX. 
(a) IN GENERAL.—Subsection (c) of section 38 (re-
lating to limitation based on amount of tax) is amended 
by redesignating paragraph (4) as paragraph (5) and by 
inserting after paragraph (3) the following new paragraph: 
‘‘(4) SPECIAL RULES FOR SPECIFIED ENERGY 
CREDITS.— 
‘‘(A) IN GENERAL.—In the case of speci-
fied energy credits— 
‘‘(i) this section and section 39 shall 
be applied separately with respect to such 
credits, and 
‘‘(ii) in applying paragraph (1) to 
such credits— 
‘‘(I) the tentative minimum tax 
shall be treated as being zero, and
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‘‘(II) the limitation under para-
graph (1) (as modified by subclause 
(I)) shall be reduced by the credit al-
lowed under subsection (a) for the 
taxable year (other than the specified 
energy credits). 
‘‘(B) SPECIFIED
ENERGY
CREDITS.—For 
purposes of this subsection, the term ‘specified 
energy credits’ means the credits determined 
under sections 45G, 45H, 45I, and 45J. For 
taxable years beginning after December 31, 
2003, such term includes the credit determined 
under section 40. For taxable years beginning 
after December 31, 2003, and before January 
1, 2006, such term includes the credit deter-
mined under section 43. 
‘‘(C) SPECIAL
RULE
FOR
ELECTRICITY 
PRODUCED FROM QUALIFIED FACILITIES.—For 
purposes of this subsection, the term ‘specified 
energy credits’ shall include the credit deter-
mined under section 45 to the extent that such 
credit is attributable to electricity produced— 
‘‘(i) at a facility which is originally 
placed in service after the date of the en-
actment of this paragraph, and
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‘‘(ii) during the 4-year period begin-
ning on the date that such facility was 
originally placed in service.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Paragraph (2)(A)(ii)(II) of section 38(c) is 
amended by striking ‘‘or’’ and inserting a comma 
and by inserting ‘‘, and the specified energy credits’’ 
after ‘‘employee credit’’. 
(2) Paragraph (3)(A)(ii)(II) of section 38(c) is 
amended by inserting ‘‘and the specified energy 
credits’’ after ‘‘employee credit’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending after the 
date of the enactment of this Act. 
SEC. 1348. TEMPORARY REPEAL OF ALTERNATIVE MIN-
IMUM TAX PREFERENCE FOR INTANGIBLE 
DRILLING COSTS. 
(a) IN GENERAL.—Clause (ii) of section 57(a)(2)(E) 
is amended by adding at the end the following new sen-
tence: ‘‘The preceding sentence shall not apply to taxable 
years beginning after December 31, 2003, and before Jan-
uary 1, 2006.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2003.
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PART III—CLEAN COAL INCENTIVES 
SEC. 1351. CREDIT FOR CLEAN COAL TECHNOLOGY UNITS. 
(a) IN GENERAL.—Subpart E of part IV of sub-
chapter A of chapter 1 (relating to rules for computing 
investment credit) is amended by inserting after section 
48 the following new section: 
‘‘SEC. 48A. CLEAN COAL TECHNOLOGY CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 46, the 
clean coal technology credit for any taxable year is an 
amount equal to the applicable percentage of the basis of 
qualified clean coal property placed in service during such 
year. 
‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 
this section, the applicable percentage is— 
‘‘(1) 15 percent in the case of property placed 
in service in connection with any basic clean coal 
technology unit, and 
‘‘(2) 17.5 percent in the case of property placed 
in service in connection with any advanced clean coal 
technology unit. 
‘‘(c) QUALIFIED CLEAN COAL PROPERTY.—For pur-
poses of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified clean 
coal property’ means section 1245 property— 
‘‘(A) which is installed in connection 
with—
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‘‘(i) an existing coal-based unit as 
part of the conversion of such unit to any 
basic or advanced clean coal technology 
unit, or 
‘‘(ii) any new advanced clean coal 
technology unit, 
‘‘(B) which is placed in service after De-
cember 31, 2003, and before— 
‘‘(i) in the case of property to which 
subsection (b)(1) applies, January 1, 2014, 
and 
‘‘(ii) in the case of property to which 
subsection (b)(2) applies, January 1, 2017 
(January 1, 2013, in the case of property 
installed in connection with an eligible ad-
vanced pulverized coal or atmospheric flu-
idized bed combustion technology unit), 
‘‘(C) the original use of which commences 
with the taxpayer, and 
‘‘(D) which has a useful life of not less 
than 4 years. 
‘‘(2) EXISTING COAL-BASED UNIT.—The term 
‘existing coal-based unit’ means a coal-based elec-
tricity generating steam generator-turbine unit—
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‘‘(A) which is not a basic or advanced 
clean coal technology unit, and 
‘‘(B) which is in operation on or before 
January 1, 2004. 
In the case of a unit being converted to a basic clean 
coal technology unit, such term shall not include a 
unit having a nameplate capacity rating of more 
than 300 megawatts. 
‘‘(3) NEW
ADVANCED
CLEAN
COAL
TECH-
NOLOGY UNIT.—The term ‘new advanced clean coal 
technology unit’ means any advanced clean coal 
technology unit which is placed in service after De-
cember 31, 2003, and the original use of which com-
mences with the taxpayer. 
‘‘(d) BASIC CLEAN COAL TECHNOLOGY UNIT.—For 
purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘basic clean coal 
technology unit’ means a unit which— 
‘‘(A) uses clean coal technology (including 
advanced pulverized coal or atmospheric fluid-
ized bed combustion, pressurized fluidized bed 
combustion, and integrated gasification com-
bined cycle) for the production of electricity,
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‘‘(B) uses an input of at least 75 percent 
coal to produce at least 50 percent of its ther-
mal output as electricity, 
‘‘(C) has a design net heat rate of at least 
500 less than that of the existing coal-based 
unit prior to its conversion, 
‘‘(D) has a maximum design net heat rate 
of not more than 9,500, and 
‘‘(E) meets the pollution control require-
ments of paragraph (2). 
Such term shall not include an advanced clean coal 
technology unit. 
‘‘(2) POLLUTION CONTROL REQUIREMENTS.— 
‘‘(A) IN GENERAL.—A unit meets the re-
quirements of this paragraph if— 
‘‘(i) its emissions of sulfur dioxide, ni-
trogen oxide, or particulates meet the 
lower of the emission levels for each such 
emission specified in— 
‘‘(I) subparagraph (B), or 
‘‘(II) the new source performance 
standards of the Clean Air Act (42 
U.S.C. 7411) which are in effect for 
the category of source at the time of 
the conversion of the unit, and
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‘‘(ii) its emissions do not exceed any 
relevant emission level specified by regula-
tion pursuant to the hazardous air pollut-
ant requirements of the Clean Air Act (42 
U.S.C. 7412) in effect at the time of the 
conversion of the unit. 
‘‘(B) SPECIFIC LEVELS.—The levels speci-
fied in this subparagraph are— 
‘‘(i) in the case of sulfur dioxide emis-
sions, 50 percent of the sulfur dioxide 
emission levels specified in the new source 
performance standards of the Clean Air 
Act (42 U.S.C. 7411) in effect on the date 
of the enactment of this section for the 
category of source, 
‘‘(ii) in the case of nitrogen oxide 
emissions— 
‘‘(I) 0.1 pound per million Btu of 
heat input if the unit is not a cyclone- 
fired boiler, and 
‘‘(II) if the unit is a cyclone-fired 
boiler, 15 percent of the uncontrolled 
nitrogen oxide emissions from such 
boilers, and
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‘‘(iii) in the case of particulate emis-
sions, 0.02 pound per million Btu of heat 
input. 
‘‘(3) DESIGN NET HEAT RATE.—The design net 
heat rate with respect to any unit, measured in Btu 
per kilowatt hour (HHV)— 
‘‘(A) shall be based on the design annual 
heat input to and the design annual net elec-
trical power, fuels, and chemicals output from 
such unit (determined without regard to such 
unit’s co-generation of steam), 
‘‘(B) shall be adjusted for the heat content 
of the design coal to be used by the unit if it 
is less than 12,000 Btu per pound according to 
the following formula: 
‘‘(C) shall be corrected for the site ref-
erence conditions of— 
‘‘(i) elevation above sea level of 500 
feet, 
‘‘(ii) air pressure of 14.4 pounds per 
square inch absolute (psia), 
‘‘(iii) temperature, dry bulb of 63°F, 
‘‘(iv) temperature, wet bulb of 54°F, 
and
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‘‘(v) relative humidity of 55 percent, 
and 
‘‘(D) if carbon capture controls have been 
installed with respect to any existing coal-based 
unit and such controls remove at least 50 per-
cent of the unit’s carbon dioxide emissions, 
shall be adjusted up to the design heat rate 
level which would have resulted without the in-
stallation of such controls. 
‘‘(4) HHV.—The term ‘HHV’ means higher 
heating value. 
‘‘(e) ADVANCED CLEAN COAL TECHNOLOGY UNIT.— 
For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘advanced clean 
coal technology unit’ means any electricity gener-
ating unit of the taxpayer— 
‘‘(A) which is— 
‘‘(i) an eligible advanced pulverized 
coal or atmospheric fluidized bed combus-
tion technology unit, 
‘‘(ii) an eligible pressurized fluidized 
bed combustion technology unit, 
‘‘(iii) an eligible integrated gasifi-
cation combined cycle technology unit, or 
‘‘(iv) an eligible other technology unit,
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‘‘(B) which uses an input of at least 75 
percent coal to produce at least 50 percent of 
its thermal output as electricity, and 
‘‘(C) which meets the carbon emission rate 
requirements of paragraph (6). 
‘‘(2) ELIGIBLE ADVANCED PULVERIZED COAL 
OR
ATMOSPHERIC
FLUIDIZED
BED
COMBUSTION 
TECHNOLOGY
UNIT.—The term ‘eligible advanced 
pulverized coal or atmospheric fluidized bed combus-
tion technology unit’ means a clean coal technology 
unit using advanced pulverized coal or atmospheric 
fluidized bed combustion technology which has a de-
sign net heat rate of not more than 8,500 (8,900 in 
the case of units placed in service before 2009). 
‘‘(3) ELIGIBLE PRESSURIZED FLUIDIZED BED 
COMBUSTION TECHNOLOGY UNIT.—The term ‘eligi-
ble pressurized fluidized bed combustion technology 
unit’ means a clean coal technology unit using pres-
surized fluidized bed combustion technology which 
has a design net heat rate of not more than 7,720 
(8,900 in the case of units placed in service before 
2009, and 8,500 in the case of units placed in serv-
ice after 2008 and before 2013). 
‘‘(4) ELIGIBLE
INTEGRATED
GASIFICATION 
COMBINED
CYCLE
TECHNOLOGY
UNIT.—The term
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‘eligible integrated gasification combined cycle tech-
nology unit’ means a clean coal technology unit 
using integrated gasification combined cycle tech-
nology, with or without fuel or chemical co-produc-
tion— 
‘‘(A) which has a design net heat rate of 
not more than 7,720 (8,900 in the case of units 
placed in service before 2009, and 8,500 in the 
case of units placed in service after 2008 and 
before 2013), and 
‘‘(B) has a net thermal efficiency (HHV) 
using coal with fuel or chemical co-production 
of not less than 44.2 percent (38.4 percent in 
the case of units placed in service before 2009, 
and 40.2 percent in the case of units placed in 
service after 2008 and before 2013). 
‘‘(5) ELIGIBLE
OTHER
TECHNOLOGY
UNIT.— 
The term ‘eligible other technology unit’ means a 
clean coal technology unit— 
‘‘(A) which uses any other technology for 
the production of electricity, and 
‘‘(B) which has a design net heat rate 
which meets the requirement of paragraph (2). 
‘‘(6) 
CARBON
EMISSION
RATE
REQUIRE-
MENTS.—
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‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), a unit meets the require-
ments of this paragraph if— 
‘‘(i) in the case of a unit using design 
coal with a heat content of not more than 
9,000 Btu per pound, the carbon emission 
rate is less than 0.60 pound of carbon per 
kilowatt hour, and 
‘‘(ii) in the case of a unit using design 
coal with a heat content of more than 
9,000 Btu per pound, the carbon emission 
rate is less than 0.54 pound of carbon per 
kilowatt hour. 
‘‘(B) 
ELIGIBLE
OTHER
TECHNOLOGY 
UNIT.—In the case of an eligible other tech-
nology unit, subparagraph (A) shall be applied 
by substituting ‘0.51’ and ‘0.459’ for ‘0.60’ and 
‘0.54’, respectively. 
‘‘(f) NATIONAL LIMITATIONS ON CREDIT.—For pur-
poses of this section— 
‘‘(1) IN
GENERAL.—The amount of credit 
which would (but for this subsection) be allowed 
with respect to any property shall not exceed the 
amount which bears the same ratio to such amount 
of credit as—
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‘‘(A) the national megawatt capacity limi-
tation allocated to the taxpayer with respect to 
the basic or advanced clean coal technology unit 
to which such property relates, bears to 
‘‘(B) the total megawatt capacity of such 
unit. 
The capacity described in subparagraph (B) shall be 
the reasonably expected capacity after the installa-
tion of the property. 
‘‘(2) AMOUNT OF NATIONAL LIMITATION.— 
‘‘(A) ADVANCED
UNITS.—The national 
megawatt capacity limitation for advanced clean 
coal technology units shall be 6,000 megawatts. 
Of such amount, the national megawatt capac-
ity limitation is— 
‘‘(i) for advanced clean coal tech-
nology units using advanced pulverized 
coal or atmospheric fluidized bed combus-
tion technology, not more than 1,500 
megawatts (not more than 750 megawatts 
in the case of units placed in service before 
2009), 
‘‘(ii) for such units using pressurized 
fluidized bed combustion technology, not 
more than 750 megawatts (not more than
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375 megawatts in the case of units placed 
in service before 2009), 
‘‘(iii) for such units using integrated 
gasification combined cycle technology, 
with or without fuel or chemical co-produc-
tion, not more than 3,000 megawatts (not 
more than 1,250 megawatts in the case of 
units placed in service before 2009), and 
‘‘(iv) for such units using other tech-
nology for the production of electricity, not 
more than 750 megawatts (not more than 
375 megawatts in the case of units placed 
in service before 2009). 
‘‘(B) BASIC UNITS.—The national mega-
watt capacity limitation for basic clean coal 
technology units shall be 4,000 megawatts. 
‘‘(3) ALLOCATION OF LIMITATION.—The Sec-
retary shall allocate the national megawatt capacity 
limitations in such manner as the Secretary may 
prescribe, except that the Secretary may not allocate 
more than 300 megawatts to any basic clean coal 
technology unit. 
‘‘(4) REGULATIONS.—Not later than 6 months 
after the date of the enactment of this section, the 
Secretary shall prescribe such regulations as may be
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necessary or appropriate to carry out the purposes 
of this subsection. Such regulations shall provide a 
certification process under which the Secretary, after 
consultation with the Secretary of Energy, shall ap-
prove and allocate the national megawatt capacity 
limitations— 
‘‘(A) to encourage that units with the high-
est thermal efficiencies, when adjusted for the 
heat content of the design coal and site ref-
erence conditions, and environmental perform-
ance, be placed in service as soon as possible, 
and 
‘‘(B) to allocate capacity to taxpayers 
which have a definite and credible plan for plac-
ing into commercial operation a basic or ad-
vanced clean coal technology unit, including— 
‘‘(i) a site, 
‘‘(ii) contractual commitments for 
procurement and construction or, in the 
case of regulated utilities, the agreement of 
the State utility commission, 
‘‘(iii) 
filings 
for 
all 
necessary 
preconstruction approvals,
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‘‘(iv) a demonstrated record of having 
successfully completed comparable projects 
on a timely basis, and 
‘‘(v) such other factors which the Sec-
retary determines are appropriate. 
‘‘(g) SPECIAL RULES.—For purposes of this sec-
tion— 
‘‘(1) CERTAIN PROGRESS EXPENDITURE RULES 
MADE APPLICABLE.—Rules similar to the rules of 
subsections (c)(4) and (d) of section 46 (as in effect 
on the day before the date of the enactment of the 
Revenue Reconciliation Act of 1990) shall apply for 
purposes of this section. 
‘‘(2) PROPERTY FINANCED BY SUBSIDIZED FI-
NANCING OR INDUSTRIAL DEVELOPMENT BONDS.— 
Rules similar to the rules of section 45(b)(3) shall 
apply for purposes of this section. 
‘‘(3) 
NONCOMPLIANCE
WITH
POLLUTION 
LAWS.—The terms ‘basic clean coal technology unit’ 
and ‘advanced clean coal technology unit’ shall not 
include any unit which is not in compliance with the 
applicable Federal pollution prevention, control, and 
permit requirements at any time during the period 
applicable under subsection (c)(1)(B).
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‘‘(4) DENIAL OF CREDIT FOR UNITS RECEIVING 
CERTAIN OTHER FEDERAL ASSISTANCE.—The terms 
‘basic clean coal technology unit’ and ‘advanced 
clean coal technology unit’ shall not include any unit 
if, at any time during the period applicable under 
subsection (c)(1)(B), any funding is provided to such 
unit under the Clean Coal Technology Program, the 
Power Plant Improvement Initiative, or the Clean 
Coal Power Initiative administered by the Secretary 
of Energy. 
‘‘(5) COORDINATION WITH OTHER CREDITS.— 
This section shall not apply to any property with re-
spect to which the rehabilitation credit under section 
47, the energy credit under section 48, or any credit 
under section 45 or 45K is allowable unless the tax-
payer elects to waive the application of such credit 
to such property.’’. 
(b) SPECIAL RECAPTURE RULES.— 
(1) Subsection (a) of section 50 is amended by 
redesignating paragraph (3), (4), and (5) as para-
graphs (4), (5), and (6), respectively, and by insert-
ing after paragraph (2) the following new para-
graph: 
‘‘(3) SPECIAL RULES FOR CLEAN COAL TECH-
NOLOGY CREDITS.—
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‘‘(A) EARLY DISPOSITION, ETC.—If, dur-
ing any taxable year, qualified clean coal prop-
erty is disposed of, or otherwise ceases to be 
part of a basic or advanced clean coal tech-
nology unit with respect to the taxpayer, before 
the close of the recovery period under section 
168 for such unit, then the tax under this chap-
ter for such taxable year shall be increased 
by— 
‘‘(i) the aggregate decrease in the 
credits allowed under section 38 for all 
prior taxable years which would have re-
sulted solely from reducing to zero any 
credit determined under section 48A with 
respect to such property, multiplied by 
‘‘(ii) a fraction— 
‘‘(I) the numerator of which is 
the number of years in the period be-
ginning with the year of such disposi-
tion or cessation and ending with the 
last year of such recovery period, and 
‘‘(II) the denominator of which is 
the total number of years in such re-
covery period.
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‘‘(B) PROPERTY CEASES TO QUALIFY FOR 
PROGRESS
EXPENDITURES.—Rules similar to 
the rules of this paragraph shall apply in cases 
where qualified progress expenditures were 
taken into account under the rules referred to 
in section 48A(g)(1). 
‘‘(C) INCREASED RECAPTURE IN CERTAIN 
CASES.—The fraction in subparagraph (A)(ii) 
shall be 1 in any case in which the property 
ceases to be a basic or advanced clean coal 
technology unit by reason of paragraph (3), (4), 
or (5) of section 48A(g). 
‘‘(D) COORDINATION WITH OTHER RECAP-
TURE
RULES.—Paragraphs (1) and (2) shall 
not apply to qualified clean coal property. 
‘‘(E) DEFINITIONS.—Terms used in this 
section which are also used in section 48A shall 
have the meanings given to such terms in sec-
tion 48A.’’. 
(2) Paragraph (4) of section 50(a), as redesig-
nated by paragraph (1), is amended by striking ‘‘or 
(2)’’ and inserting ‘‘, (2), or (3)’’. 
(3) Paragraph (5) of section 50(a), as so redes-
ignated, is amended by striking ‘‘and (2)’’ and in-
serting ‘‘, (2), and (3)’’.
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(4) Section 1371(d)(1) is amended by striking 
‘‘section 50(a)(4)’’ and inserting ‘‘section 50(a)(5)’’. 
(c) TECHNICAL AMENDMENTS.— 
(1) Section 46 (relating to amount of credit) is 
amended by striking ‘‘and’’ at the end of paragraph 
(2), by striking the period at the end of paragraph 
(3) and inserting ‘‘, and’’, and by adding at the end 
the following new paragraph: 
‘‘(4) the clean coal technology credit.’’. 
(2) Section 49(a)(1)(C) is amended by striking 
‘‘and’’ at the end of clause (ii), by striking the pe-
riod at the end of clause (iii) and inserting ‘‘, and’’, 
and by adding at the end the following new clause: 
‘‘(iv) the portion of the basis of any 
qualified clean coal property (as defined by 
section 48A(c)).’’. 
(3) The table of sections for subpart E of part 
IV of subchapter A of chapter 1 is amended by in-
serting after the item relating to section 48 the fol-
lowing new item: 
‘‘Sec. 48A. Clean coal technology credit.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to periods after December 31, 
2003, under rules similar to the rules of section 48(m) 
of the Internal Revenue Code of 1986 (as in effect on the
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day before the date of the enactment of the Revenue Rec-
onciliation Act of 1990). 
SEC. 1352. EXPANSION OF AMORTIZATION FOR CERTAIN 
POLLUTION CONTROL FACILITIES. 
(a) ELIGIBILITY OF POST-1975 POLLUTION CON-
TROL FACILITIES.— 
(1) IN
GENERAL.—Paragraph (1) of section 
169(d) is amended by striking ‘‘before January 1, 
1976,’’ and by striking ‘‘a new identifiable’’ and in-
serting ‘‘an identifiable’’. 
(2) IDENTIFIABLE
TREATMENT
FACILITY.— 
Paragraph (4) of section 169(d) is amended to read 
as follows: 
‘‘(4) IDENTIFIABLE
TREATMENT
FACILITY.— 
For purposes of paragraph (1), the term ‘identifiable 
treatment facility’ includes only tangible property 
(not including a building and its structural compo-
nents, other than a building which is exclusively a 
treatment facility) which is of a character subject to 
the allowance for depreciation provided in section 
167, which is identifiable as a treatment facility, and 
which is property— 
‘‘(A) the construction, reconstruction, or 
erection of which is completed by the taxpayer, 
or
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‘‘(B) the original use of the property com-
mences with the taxpayer.’’. 
(3) 
TECHNICAL
AMENDMENT.—Section 
169(d)(3) is amended by striking ‘‘Health, Edu-
cation, and Welfare’’ and inserting ‘‘Health and 
Human Services’’. 
(b) COORDINATION WITH SECTION 48A INVEST-
MENT CREDIT.—Section 169 is amended by redesignating 
subsections (e) though (j) as subsection (f) through (k), 
respectively, and by inserting after subsection (d) the fol-
lowing new subsection: 
‘‘(e) COORDINATION WITH SECTION 48A INVEST-
MENT CREDIT.— 
‘‘(1) IN GENERAL.—In the case of any treat-
ment facility used in connection with a plant or 
other property to which an amount is allocated 
under section 48A(f), this section shall apply only if 
such plant or other property was in operation before 
January 1, 1976. 
‘‘(2) 36-MONTH AMORTIZATION WITH RESPECT 
TO
PRE-1976
PLANTS
NOT
ALLOCATED
CREDIT.— 
References in this section to 60 months shall be 
treated as references to 36 months in the case of 
treatment facilities used in connection with a plant 
or other property in operation before January 1,
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1976, if no allocation is made under section 48A(f) 
with respect to such plant or property.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to facilities placed in service after 
the date of the enactment of this Act. 
SEC. 1353. 5-YEAR RECOVERY PERIOD FOR ELIGIBLE INTE-
GRATED GASIFICATION COMBINED CYCLE 
TECHNOLOGY UNIT ELIGIBLE FOR CREDIT. 
(a) IN GENERAL.—Subparagraph (B) of section 
168(e)(3) (defining 5-year property) is amended by strik-
ing ‘‘and’’ at the end of clause (v), by striking the period 
at the end of clause (vi) and inserting ‘‘, and’’, and by 
inserting after clause (vi) the following new clause: 
‘‘(vii) any section 1245 property 
which is part of an eligible integrated gas-
ification combined cycle technology unit (as 
defined in section 48A(e)(4)) for which an 
allocation is made under section 48A(f).’’. 
(b) ALTERNATIVE SYSTEM.—The table contained in 
section 168(g)(3)(B) (relating to special rule for certain 
property assigned to classes) is amended by inserting after 
the item relating to subparagraph (B)(iii) the following 
new item: 
‘‘(B) (vii) ...................................................................................................
20’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after
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the date of the enactment of this Act in taxable years end-
ing after such date. 
PART IV—HIGH VOLUME NATURAL GAS 
PROVISIONS 
SEC. 1355. HIGH VOLUME NATURAL GAS PIPE TREATED AS 
7-YEAR PROPERTY. 
(a) IN GENERAL.—Section 168(e)(3)(C) (defining 7- 
year property), as amended by this Act, is amended by 
striking ‘‘and’’ at the end of clause (ii), by redesignating 
clause (iii) as clause (iv), and by inserting after clause (ii) 
the following new clause: 
‘‘(iii) any high volume natural gas 
pipe the original use of which commences 
with the taxpayer after the date of the en-
actment of this clause, and’’. 
(b) HIGH VOLUME NATURAL GAS PIPE.—Section 
168(i) (relating to definitions and special rules), as 
amended by this Act, is amended by adding at the end 
the following new paragraph: 
‘‘(17) HIGH VOLUME NATURAL GAS PIPE.—The 
term ‘high volume natural gas pipe’ means— 
‘‘(A) pipe which has an interior diameter 
of at least 42 inches and which is part of a nat-
ural gas pipeline system, and
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‘‘(B) any related equipment and appur-
tenances used in connection with such pipe.’’. 
(c) ALTERNATIVE SYSTEM.—The table contained in 
section 168(g)(3)(B) (relating to special rule for certain 
property assigned to classes), as amended by this Act, is 
amended by inserting after the item relating to subpara-
graph (C)(ii) the following new item: 
‘‘(C) (iii) ....................................................................................................
22’’. 
(d) ALTERNATIVE MINIMUM TAX EXCEPTION.—Sub-
paragraph (B) of section 56(a)(1), as amended by this 
Act, is amended by inserting before the period the fol-
lowing: ‘‘, or in section 168(e)(3)(C)(iii)’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service on 
or after the date of the enactment of this Act. 
SEC. 1356. EXTENSION OF ENHANCED OIL RECOVERY 
CREDIT TO HIGH VOLUME NATURAL GAS FA-
CILITIES. 
(a) IN GENERAL.—Section 43(c)(1) (defining quali-
fied enhanced oil recovery costs) is amended by adding at 
the end the following new subparagraph: 
‘‘(D) Any amount which is paid or in-
curred during the taxable year in connection 
with the construction of a gas treatment plant 
which—
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‘‘(i) prepares natural gas for transpor-
tation through a pipeline with a capacity of 
at least 1,000,000,000,000 Btu of natural 
gas per day, and 
‘‘(ii) produces carbon dioxide which is 
injected into hydrocarbon-bearing geologi-
cal formations.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to costs paid or incurred in taxable 
years beginning after December 31, 2003. 
Subtitle D—Additional Provisions 
SEC. 1361. EXTENSION OF ACCELERATED DEPRECIATION 
BENEFIT FOR ENERGY-RELATED BUSINESSES 
ON INDIAN RESERVATIONS. 
Paragraph (8) of section 168(j) (relating to termi-
nation) is amended by adding at the end the following new 
sentence: ‘‘The preceding sentence shall be applied by sub-
stituting ‘‘December 31, 2005’’ for ‘‘December 31, 2004’’ 
in the case of property placed in service as part of a facil-
ity for— 
‘‘(A) the generation or transmission of 
electricity (including from any qualified energy 
resource, as defined in section 45(c)), 
‘‘(B) an oil or gas well,
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‘‘(C) the transmission or refining of oil or 
gas, or 
‘‘(D) the production of any qualified fuel 
(as defined in section 45K(c)).’’. 
SEC. 1362. PAYMENT OF DIVIDENDS ON STOCK OF CO-
OPERATIVES WITHOUT REDUCING PATRON-
AGE DIVIDENDS. 
(a) IN GENERAL.—Subsection (a) of section 1388 
(relating to patronage dividend defined) is amended by 
adding at the end the following: ‘‘For purposes of para-
graph (3), net earnings shall not be reduced by amounts 
paid during the year as dividends on capital stock or other 
proprietary capital interests of the organization to the ex-
tent that the articles of incorporation or bylaws of such 
organization or other contract with patrons provide that 
such dividends are in addition to amounts otherwise pay-
able to patrons which are derived from business done with 
or for patrons during the taxable year.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to distributions in taxable years 
ending after the date of the enactment of this Act.
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SEC. 1363. DISTRIBUTIONS FROM PUBLICLY TRADED PART-
NERSHIPS TREATED AS QUALIFYING INCOME 
OF REGULATED INVESTMENT COMPANIES. 
(a) IN GENERAL.—Paragraph (2) of section 851(b) 
(defining regulated investment company) is amended to 
read as follows: 
‘‘(2) at least 90 percent of its gross income is 
derived from— 
‘‘(A) dividends, interest, payments with re-
spect to securities loans (as defined in section 
512(a)(5)), and gains from the sale or other 
disposition of stock or securities (as defined in 
section 2(a)(36) of the Investment Company 
Act of 1940, as amended) or foreign currencies, 
or other income (including but not limited to 
gains from options, futures or forward con-
tracts) derived with respect to its business of 
investing in such stock, securities, or currencies, 
and 
‘‘(B) distributions or other income derived 
from an interest in a qualified publicly traded 
partnership (as defined in subsection (h)); 
and’’. 
(b) 
SOURCE
FLOW-THROUGH
RULE
NOT
TO 
APPLY.—The last sentence of section 851(b) is amended 
by inserting ‘‘(other than a qualified publicly traded part-
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nership as defined in subsection (h))’’ after ‘‘derived from 
a partnership’’. 
(c) LIMITATION ON OWNERSHIP.—Subsection (c) of 
section 851 is amended by redesignating paragraph (5) 
as paragraph (6) and inserting after paragraph (4) the 
following new paragraph: 
‘‘(5) The term ‘outstanding voting securities of 
such issuer’ shall include the equity securities of a 
qualified publicly traded partnership (as defined in 
subsection (h)).’’. 
(d) DEFINITION OF QUALIFIED PUBLICLY TRADED 
PARTNERSHIP.—Section 851 is amended by adding at the 
end the following new subsection: 
‘‘(h) QUALIFIED
PUBLICLY
TRADED
PARTNER-
SHIP.—For purposes of this section, the term ‘qualified 
publicly traded partnership’ means a publicly traded part-
nership described in section 7704(b) other than a partner-
ship which would satisfy the gross income requirements 
of section 7704(c)(2) if qualifying income included only 
income described in subsection (b)(2)(A).’’. 
(e) DEFINITION OF QUALIFYING INCOME.—Section 
7704(d)(4) is amended by striking ‘‘section 851(b)(2)’’ 
and inserting ‘‘section 851(b)(2)(A)’’.
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(f) LIMITATION ON COMPOSITION OF ASSETS.—Sub-
paragraph (B) of section 851(b)(3) is amended to read 
as follows: 
‘‘(B) not more than 25 percent of the 
value of its total assets is invested in— 
‘‘(i) the securities (other than Govern-
ment securities or the securities of other 
regulated investment companies) of any 
one issuer, 
‘‘(ii) the securities (other than the se-
curities of other regulated investment com-
panies) of two or more issuers which the 
taxpayer controls and which are deter-
mined, under regulations prescribed by the 
Secretary, to be engaged in the same or 
similar trades or businesses or related 
trades or businesses, or 
‘‘(iii) the securities of one or more 
qualified publicly traded partnerships (as 
defined in subsection (h)).’’. 
(g) APPLICATION
OF SPECIAL PASSIVE ACTIVITY 
RULE TO REGULATED INVESTMENT COMPANIES.—Sub-
section (k) of section 469 (relating to separate application 
of section in case of publicly traded partnerships) is
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amended by adding at the end the following new para-
graph: 
‘‘(4) APPLICATION
TO
REGULATED
INVEST-
MENT COMPANIES.—For purposes of this section, a 
regulated investment company (as defined in section 
851) holding an interest in a qualified publicly trad-
ed partnership (as defined in section 851(h)) shall 
be treated as a taxpayer described in subsection 
(a)(2) with respect to items attributable to such in-
terest.’’. 
(h) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 1364. CEILING FANS. 
(a) IN GENERAL.—Subchapter II of chapter 99 of 
the Harmonized Tariff Schedule of the United States is 
amended by inserting in numerical sequence the following 
new heading: 
‘‘ 
9902.84.14 
Ceiling fans for permanent 
installation (provided for in 
subheading 8414.51.00) ......
Free 
No change 
No change 
On or before 
12/31/2005 
’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section applies to goods entered, or withdrawn from 
warehouse, for consumption on or after the 15th day after 
the date of enactment of this Act.
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SEC. 1365. CERTAIN STEAM GENERATORS, AND CERTAIN 
REACTOR VESSEL HEADS, USED IN NUCLEAR 
FACILITIES. 
(a) 
CERTAIN
STEAM
GENERATORS.—Heading 
9902.84.02 of the Harmonized Tariff Schedule of the 
United States is amended by striking ‘‘12/31/2006’’ and 
inserting ‘‘12/31/2008’’. 
(b) CERTAIN
REACTOR
VESSEL
HEADS.—Sub-
chapter II of chapter 99 of the Harmonized Tariff Sched-
ule of the United States is amended by inserting in numer-
ical sequence the following new heading: 
‘‘ 
9902.84.03 
Reactor vessel heads for nu-
clear reactors (provided for 
in subheading 8401.40.00) ..
Free 
No change 
No change 
On or before 
12/31/2007 
’’. 
(c) EFFECTIVE DATE.— 
(1) SUBSECTION (a).—The amendment made 
by subsection (a) shall take effect on the date of the 
enactment of this Act. 
(2) SUBSECTION (b).—The amendment made 
by subsection (b) shall apply to goods entered, or 
withdrawn from warehouse, for consumption on or 
after the 15th day after the date of the enactment 
of this Act.
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SEC. 1366. BROWNFIELDS DEMONSTRATION PROGRAM FOR 
QUALIFIED GREEN BUILDING AND SUSTAIN-
ABLE DESIGN PROJECTS. 
(a) TREATMENT AS EXEMPT FACILITY BOND.—Sub-
section (a) of section 142 (relating to the definition of ex-
empt facility bond) is amended by striking ‘‘or’’ at the 
end of paragraph (12), by striking the period at the end 
of paragraph (13) and inserting ‘‘, or’’, and by inserting 
at the end the following new paragraph: 
‘‘(14) qualified green building and sustainable 
design projects.’’. 
(b) QUALIFIED GREEN BUILDING AND SUSTAINABLE 
DESIGN PROJECTS.—Section 142 (relating to exempt fa-
cility bonds) is amended by adding at the end thereof the 
following new subsection: 
‘‘(l) QUALIFIED GREEN BUILDING AND SUSTAIN-
ABLE DESIGN PROJECTS.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a)(14), the term ‘qualified green building and sus-
tainable design project’ means any project which is 
designated by the Secretary, after consultation with 
the Administrator of the Environmental Protection 
Agency, as a qualified green building and sustain-
able design project and which meets the require-
ments of clauses (i), (ii), (iii), and (iv) of paragraph 
(4)(A).
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‘‘(2) DESIGNATIONS.— 
‘‘(A) IN GENERAL.—Within 60 days after 
the end of the application period described in 
paragraph (3)(A), the Secretary, after consulta-
tion with the Administrator of the Environ-
mental Protection Agency, shall designate quali-
fied green building and sustainable design 
projects. At least one of the projects designated 
shall be located in, or within a 10-mile radius 
of, an empowerment zone as designated pursu-
ant to section 1391, and at least one of the 
projects designated shall be located in a rural 
State. No more than one project shall be des-
ignated in a State. A project shall not be des-
ignated if such project includes a stadium or 
arena for professional sports exhibitions or 
games. 
‘‘(B) MINIMUM CONSERVATION AND TECH-
NOLOGY
INNOVATION
OBJECTIVES.—The Sec-
retary, after consultation with the Adminis-
trator of the Environmental Protection Agency, 
shall ensure that, in the aggregate, the projects 
designated shall—
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‘‘(i) reduce electric consumption by 
more than 150 megawatts annually as 
compared to conventional construction, 
‘‘(ii) reduce daily sulfur dioxide emis-
sions by at least 10 tons compared to coal 
generation power, 
‘‘(iii) expand by 75 percent the do-
mestic solar photovoltaic market in the 
United States (measured in megawatts) as 
compared to the expansion of that market 
from 2001 to 2002, and 
‘‘(iv) use at least 25 megawatts of 
fuel cell energy generation. 
‘‘(3) LIMITED DESIGNATIONS.—A project may 
not be designated under this subsection unless— 
‘‘(A) the project is nominated by a State 
or local government within 180 days of the en-
actment of this subsection, and 
‘‘(B) such State or local government pro-
vides written assurances that the project will 
satisfy the eligibility criteria described in para-
graph (4). 
‘‘(4) APPLICATION.— 
‘‘(A) IN GENERAL.—A project may not be 
designated under this subsection unless the ap-
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plication for such designation includes a project 
proposal which describes the energy efficiency, 
renewable energy, and sustainable design fea-
tures of the project and demonstrates that the 
project satisfies the following eligibility criteria: 
‘‘(i) GREEN BUILDING AND SUSTAIN-
ABLE DESIGN.—At least 75 percent of the 
square footage of commercial buildings 
which are part of the project is registered 
for United States Green Building Council’s 
LEED certification and is reasonably ex-
pected (at the time of the designation) to 
receive such certification. 
‘‘(ii) 
BROWNFIELD
REDEVELOP-
MENT.—The project includes a brownfield 
site as defined by section 101(39) of the 
Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 
(42 U.S.C. 9601), including a site de-
scribed in subparagraph (D)(ii)(II)(aa) 
thereof. 
‘‘(iii) STATE AND LOCAL SUPPORT.— 
The project receives specific State or local 
government resources which will support 
the project in an amount equal to at least
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$5,000,000. For purposes of the preceding 
sentence, the term ‘resources’ includes tax 
abatement benefits and contributions in 
kind. 
‘‘(iv) SIZE.—The project includes at 
least one of the following: 
‘‘(I) At least 1,000,000 square 
feet of building. 
‘‘(II) At least 20 acres. 
‘‘(v) USE
OF
TAX
BENEFIT.—The 
project proposal includes a description of 
the net benefit of the tax-exempt financing 
provided under this subsection which will 
be allocated for financing of one or more 
of the following: 
‘‘(I) The purchase, construction, 
integration, or other use of energy ef-
ficiency, renewable energy, and sus-
tainable design features of the project. 
‘‘(II) Compliance with LEED 
certification standards. 
‘‘(III) The purchase, remediation, 
and foundation construction and prep-
aration of the brownfields site.
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‘‘(vi) EMPLOYMENT.—The project is 
projected to provide permanent employ-
ment of at least 1,500 full time equivalents 
(150 full time equivalents in rural States) 
when completed and construction employ-
ment of at least 1,000 full time equivalents 
(100 full time equivalents in rural States). 
The application shall include an independent 
analysis which describes the project’s economic 
impact, including the amount of projected em-
ployment. 
‘‘(B) PROJECT DESCRIPTION.—Each appli-
cation described in subparagraph (A) shall con-
tain for each project a description of— 
‘‘(i) the amount of electric consump-
tion reduced as compared to conventional 
construction, 
‘‘(ii) the amount of sulfur dioxide 
daily emissions reduced compared to coal 
generation, 
‘‘(iii) the amount of the gross in-
stalled capacity of the project’s solar pho-
tovoltaic capacity measured in megawatts, 
and