I 
109TH CONGRESS 
1ST SESSION H. R. 4348 
To amend the Internal Revenue Code of 1986 to allow a tax credit for 
the purchase and installation of emergency generators. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 16, 2005 
Mr. HASTINGS of Florida (for himself and Mr. WEXLER) 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 allow a 
tax credit for the purchase and installation of emergency 
generators. 
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 ‘‘Emergency Generators 
for Electric Needs (E–GEN) Act of 2005’’. 
SEC. 2. CREDIT FOR PURCHASE AND INSTALLATION OF 
EMERGENCY GENERATORS. 
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 30D. EMERGENCY GENERATOR CREDIT. 
‘‘(a) CREDIT ALLOWED.—There shall be allowed as 
a credit against the tax imposed by this chapter for the 
taxable year an amount equal to 75 percent of the amount 
paid or incurred by the taxpayer for the purchase and in-
stallation of any emergency generator placed in service by 
the taxpayer during the taxable year. 
‘‘(b) DOLLAR
LIMITATION.—The credit allowed 
under subsection (a) with respect to any emergency gener-
ator shall not exceed— 
‘‘(1) $60,000 in the case of an emergency gen-
erator placed in service by a character subject to an 
allowance for depreciation, and 
‘‘(2) $2,500 in any other case. 
‘‘(c) EMERGENCY GENERATOR.—For purposes of 
this section, the term ‘emergency generator’ means an 
electrical generator purchased and installed for the pur-
pose of providing emergency electric power to a taxpayer 
that otherwise purchases electric power from a utility. 
‘‘(d) APPLICATION WITH OTHER CREDITS.— 
‘‘(1) BUSINESS CREDIT TREATED AS PART OF 
GENERAL BUSINESS CREDIT.—So much of the credit 
which would be allowed under subsection (a) for any
taxable year (determined without regard to this sub-
section) that is attributable to an emergency gener-
ator placed in service by a character subject to an 
allowance for depreciation shall be treated as a cred-
it listed in section 38(b) for such taxable year (and 
not allowed under subsection (a)). 
‘‘(2) PERSONAL
CREDIT.—The credit allowed 
under subsection (a) (after the application of para-
graph (1)) for any taxable year shall not exceed the 
excess (if any) of— 
‘‘(A) the regular tax reduced by the sum of 
the credits allowable under subpart A and sec-
tions 27, 30, 30B, and 30C, over 
‘‘(B) the tentative minimum tax for the 
taxable year. 
‘‘(e) BASIS REDUCTION.—For purposes of this sub-
title, if a credit is allowed under this section for any ex-
penditure with respect to any property, the increase in the 
basis of such property which would (but for this sub-
section) result from such expenditure shall be reduced by 
the amount of the credit so allowed. 
‘‘(f) PROPERTY USED OUTSIDE UNITED STATES, 
ETC., NOT QUALIFIED.—No credit shall be allowed under 
subsection (a) with respect to any property referred to in
section 50(b)(1) or with respect to the portion of the cost 
of any property taken into account under section 179. 
‘‘(g) DENIAL OF DOUBLE BENEFIT.—No credit shall 
be allowed under subsection (a) for any expense for which 
a deduction or credit is allowed under any other provision 
of this chapter. 
‘‘(h) ELECTION NOT TO HAVE SECTION APPLY.—A 
taxpayer may elect not to have this section apply with re-
spect to an emergency generator placed in service by the 
taxpayer during the taxable year.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 1016(a) of such Code is amended 
by striking ‘‘and’’ at the end of paragraph (36), by 
striking the period at the end of paragraph (37) and 
inserting ‘‘, and’’, and by adding at the end the fol-
lowing new paragraph: 
‘‘(38) to the extent provided in section 30D(e), 
in the case of amounts with respect to which a credit 
has been allowed under section 30D.’’. 
(2) Subsection (b) of section 38 of such Code 
is amended by striking ‘‘and’’ at the end of para-
graph (25), by striking the period at the end of 
paragraph (26) and inserting ‘‘, and’’, and by add-
ing at the end the following new paragraph:
‘‘(27) the portion of the emergency generator 
credit to which section 30D(d)(1) applies.’’. 
(3) Section 55(c)(2) of such Code is amended 
by inserting ‘‘30D(d)(2)’’ after ‘‘30(b)(3),’’. 
(4) Section 6501(m) of such Code is amended 
by inserting ‘‘30D(h),’’ before ‘‘40(f),’’. 
(5) The table of sections for subpart B of part 
IV of subchapter A of chapter 1 of such Code is 
amended by adding at the end the following new 
item: 
‘‘Sec. 30D. Emergency generator credit.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act, in taxable years 
ending after such date. 
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