IB 
Union Calendar No. 25
109TH CONGRESS 
1ST SESSION H. R. 1541
[Report No. 109–45] 
To amend the Internal Revenue Code of 1986 to enhance energy infrastruc-
ture properties in the United States and to encourage the use of certain 
energy technologies, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 12, 2005
Mr. THOMAS introduced the following bill; which was referred to the 
Committee on Ways and Means 
APRIL 18, 2005
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on April 12, 2005] 
A BILL 
To amend the Internal Revenue Code of 1986 to enhance 
energy infrastructure properties in the United States 
and to encourage the use of certain energy technologies, 
and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; ETC. 
(a) SHORT TITLE.—This Act may be cited as the ‘‘En-
hanced Energy Infrastructure and Technology Tax Act of 
2005’’. 
(b) AMENDMENT OF 1986 CODE.—Except as otherwise 
expressly provided, whenever in this Act an amendment or 
repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be consid-
ered to be made to a section or other provision of the Inter-
nal Revenue Code of 1986. 
(c) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows:
Sec. 1. Short title; etc. 
TITLE I—ENERGY INFRASTRUCTURE TAX INCENTIVES 
Sec. 101. Natural gas gathering lines treated as 7-year property. 
Sec. 102. Natural gas distribution lines treated as 15-year property. 
Sec. 103. Electric transmission property treated as 15-year property. 
Sec. 104. Expansion of amortization for certain atmospheric pollution control fa-
cilities in connection with plants first placed in service after 
1975. 
Sec. 105. Modification of credit for producing fuel from a nonconventional source. 
Sec. 106. Modifications to special rules for nuclear decommissioning costs. 
Sec. 107. Arbitrage rules not to apply to prepayments for natural gas. 
Sec. 108. Determination of small refiner exception to oil depletion deduction. 
TITLE II—MISCELLANEOUS ENERGY TAX INCENTIVES 
Sec. 201. Credit for residential energy efficient property. 
Sec. 202. Credit for business installation of qualified fuel cells. 
Sec. 203. Reduced motor fuel excise tax on certain mixtures of diesel fuel. 
Sec. 204. Amortization of delay rental payments. 
Sec. 205. Amortization of geological and geophysical expenditures. 
Sec. 206. Advanced lean burn technology motor vehicle credit. 
Sec. 207. Credit for energy efficiency improvements to existing homes. 
TITLE III—ALTERNATIVE MINIMUM TAX RELIEF 
Sec. 301. New nonrefundable personal credits allowed against regular and min-
imum taxes. 
Sec. 302. Certain business energy credits allowed against regular and minimum 
taxes.
TITLE I—ENERGY INFRASTRUC-
TURE TAX INCENTIVES 
SEC. 101. NATURAL GAS GATHERING LINES TREATED AS 7-
YEAR PROPERTY. 
(a) IN
GENERAL.—Subparagraph (C) of section 
168(e)(3) (relating to classification of certain property) is 
amended by striking ‘‘and’’ at the end of clause (iii), by 
redesignating clause (iv) as clause (v), and by inserting 
after clause (iii) the following new clause: 
‘‘(iv) any natural gas gathering line, 
and’’. 
(b) NATURAL GAS GATHERING LINE.—Subsection (i) 
of section 168 is amended by inserting after paragraph (16) 
the following new paragraph: 
‘‘(17) NATURAL
GAS
GATHERING
LINE.—The 
term ‘natural gas gathering line’ means—
‘‘(A) the pipe, equipment, and appur-
tenances determined to be a gathering line by the 
Federal Energy Regulatory Commission, and 
‘‘(B) the pipe, equipment, and appur-
tenances used to deliver natural gas from the 
wellhead or a commonpoint to the point at which 
such gas first reaches—
‘‘(i) a gas processing plant,
‘‘(ii) an interconnection with a trans-
mission pipeline for which a certificate as 
an interstate transmission pipeline has been 
issued by the Federal Energy Regulatory 
Commission, 
‘‘(iii) an interconnection with an 
intrastate transmission pipeline, or 
‘‘(iv) a direct interconnection with a 
local distribution company, a gas storage 
facility, or an industrial consumer.’’. 
(c) ALTERNATIVE SYSTEM.—The table contained in 
section 168(g)(3)(B) is amended by inserting after the item 
relating to subparagraph (C)(iii) the following:
‘‘(C) (iv) ............................................................................................................
14’’.
(d) ALTERNATIVE MINIMUM TAX EXCEPTION.—Sub-
paragraph (B) of section 56(a)(1) is amended by inserting 
before the period the following: ‘‘, or in section 
168(e)(3)(C)(iv)’’. 
(e) EFFECTIVE DATE.—The amendments made by this 
section shall apply to property placed in service after April 
11, 2005. 
SEC. 102. NATURAL GAS DISTRIBUTION LINES TREATED AS 
15-YEAR PROPERTY. 
(a) IN
GENERAL.—Subparagraph (E) of section 
168(e)(3) (relating to classification of certain property) is 
amended by striking ‘‘and’’ at the end of clause (v), by
striking the period at the end of clause (vi) and inserting 
‘‘, and’’, and by adding at the end the following new clause: 
‘‘(vii) any natural gas distribution 
line.’’. 
(b) ALTERNATIVE SYSTEM.—The table contained in 
section 168(g)(3)(B) is amended by inserting after the item 
relating to subparagraph (E)(vi) the following:
‘‘(E) (vii) ..........................................................................................................
35’’.
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to property placed in service after April 
11, 2005. 
SEC. 103. ELECTRIC TRANSMISSION PROPERTY TREATED 
AS 15-YEAR PROPERTY. 
(a) IN
GENERAL.—Subparagraph (E) of section 
168(e)(3) (relating to classification of certain property), as 
amended by section 102 of this Act, is amended by striking 
‘‘and’’ at the end of clause (vi), by striking the period at 
the end of clause (vii) and inserting ‘‘, and’’, and by adding 
at the end the following new clause: 
‘‘(viii) any section 1245 property (as 
defined in section 1245(a)(3)) used in the 
transmission at 69 or more kilovolts of elec-
tricity for sale and the original use of which 
commences with the taxpayer after April 
11, 2005.’’.
(b) ALTERNATIVE SYSTEM.—The table contained in 
section 168(g)(3)(B) is amended by inserting after the item 
relating to subparagraph (E)(vii) the following:
‘‘(E) (viii) .........................................................................................................
30’’.
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to property placed in service after April 
11, 2005. 
SEC. 104. EXPANSION OF AMORTIZATION FOR CERTAIN AT-
MOSPHERIC POLLUTION CONTROL FACILI-
TIES IN CONNECTION WITH PLANTS FIRST 
PLACED IN SERVICE AFTER 1975. 
(a) ELIGIBILITY OF POST-1975 POLLUTION CONTROL 
FACILITIES.—Subsection (d) of section 169 (relating to 
definitions) is amended by adding at the end the following: 
‘‘(5) SPECIAL RULE RELATING TO CERTAIN AT-
MOSPHERIC POLLUTION CONTROL FACILITIES.—In the 
case of any atmospheric pollution control facility 
which is placed in service after April 11, 2005, and 
used in connection with an electric generation plant 
or other property which is primarily coal fired, para-
graph (1) shall be applied without regard to the 
phrase ‘in operation before January 1, 1976’.’’. 
(b) TREATMENT AS NEW IDENTIFIABLE TREATMENT 
FACILITY.—Subparagraph (B) of section 169(d)(4) is 
amended to read as follows:
‘‘(B) CERTAIN FACILITIES PLACED IN OPER-
ATION AFTER APRIL 11, 2005.—In the case of any 
facility described in paragraph (1) solely by rea-
son of paragraph (5), subparagraph (A) shall be 
applied by substituting ‘April 11, 2005’ for ‘De-
cember 31, 1968’ each place it appears therein.’’. 
(c) TECHNICAL AMENDMENT.—Section 169(d)(3) is 
amended by striking ‘‘Health, Education, and Welfare’’ and 
inserting ‘‘Health and Human Services’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to facilities placed in service after April 
11, 2005. 
SEC. 105. MODIFICATION OF CREDIT FOR PRODUCING FUEL 
FROM A NONCONVENTIONAL SOURCE. 
(a) TREATMENT AS BUSINESS CREDIT.—
(1) CREDIT MOVED TO SUBPART RELATING TO 
BUSINESS RELATED CREDITS.—The Internal Revenue 
Code of 1986 is amended by redesignating section 29 
as section 45J and by moving section 45J (as so re-
designated) from subpart B of part IV of subchapter 
A of chapter 1 to the end of subpart D of part IV of 
subchapter A of chapter 1. 
(2) CREDIT TREATED AS BUSINESS CREDIT.—
Section 38(b) is amended by striking ‘‘plus’’ at the 
end of paragraph (18), by striking the period at the
end of paragraph (19) and inserting ‘‘, plus’’, and by 
adding at the end the following: 
‘‘(20) the nonconventional source production 
credit determined under section 45J(a).’’. 
(3) CONFORMING AMENDMENTS.—
(A) Section 30(b)(3)(A) is amended by 
striking ‘‘sections 27 and 29’’ and inserting ‘‘sec-
tion 27’’. 
(B) Sections 43(b)(2), 45I(b)(2)(C)(i), and 
613A(c)(6)(C) are each amended by striking 
‘‘section 29(d)(2)(C)’’ and inserting ‘‘section 
45J(d)(2)(C)’’. 
(C) Section 45(e)(9) is amended—
(i) by striking ‘‘section 29’’ and insert-
ing ‘‘section 45J’’, and 
(ii) by inserting ‘‘(or under section 29, 
as in effect on the day before the date of en-
actment of the Enhanced Energy Infrastruc-
ture and Technology Tax Act of 2005, for 
any prior taxable year)’’ before the period 
at the end thereof. 
(D) Section 45I is amended—
(i) in subsection (c)(2)(A) by striking 
‘‘section 29(d)(5))’’ and inserting ‘‘section 
45J(d)(5))’’, and
(ii) in subsection (d)(3) by striking 
‘‘section 29’’ both places it appears and in-
serting ‘‘section 45J’’. 
(E) Section 45J(a), as redesignated by 
paragraph (1), is amended by striking ‘‘There 
shall be allowed as a credit against the tax im-
posed by this chapter for the taxable year’’ and 
inserting ‘‘For purposes of section 38, if the tax-
payer elects to have this section apply, the non-
conventional source production credit determined 
under this section for the taxable year is’’. 
(F) Section 45J(b), as so redesignated, is 
amended by striking paragraph (6). 
(G) Section 53(d)(1)(B)(iii) is amended by 
striking ‘‘under section 29’’ and all that follows 
through ‘‘or not allowed’’. 
(H) Section 55(c)(3) is amended by striking 
‘‘29(b)(6),’’. 
(I) Subsection (a) of section 772 is amended 
by inserting ‘‘and’’ at the end of paragraph (9), 
by striking paragraph (10), and by redesig-
nating paragraph (11) as paragraph (10). 
(J) Paragraph (5) of section 772(d) is 
amended by striking ‘‘the foreign tax credit, and
the credit allowable under section 29’’ and in-
serting ‘‘and the foreign tax credit’’. 
(K) The table of sections for subpart B of 
part IV of subchapter A of chapter 1 is amended 
by striking the item relating to section 29. 
(L) The table of sections for subpart D of 
part IV of subchapter A of chapter 1 is amended 
by inserting after the item relating to section 45I 
the following new item:
‘‘Sec. 45J. Credit for producing fuel from a nonconventional source.’’.
(b) AMENDMENTS CONFORMING TO THE REPEAL OF 
THE NATURAL GAS POLICY ACT OF 1978.—
(1) IN GENERAL.—Section 29(c)(2)(A) (before re-
designation under subsection (a)) is amended—
(A) by inserting ‘‘(as in effect before the re-
peal of such section)’’ after ‘‘1978’’, and 
(B) by striking subsection (e) and redesig-
nating subsections (f) and (g) as subsections (e) 
and (f), respectively. 
(2) 
CONFORMING
AMENDMENTS.—Section 
29(g)(1)(before redesignation under subsection (a) and 
paragraph (1) of this subsection) is amended—
(A) in subparagraph (A) by striking ‘‘sub-
section (f)(1)(B)’’ and inserting ‘‘subsection 
(e)(1)(B)’’, and