IB 
Union Calendar No. 130 
110TH CONGRESS 
1ST SESSION H. R. 2776 
[Report No. 110–214] 
To amend the Internal Revenue Code of 1986 to provide tax incentives 
for the production of renewable energy and energy conservation. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 19, 2007 
Mr. RANGEL (for himself, Mr. LEVIN, Mr. MCDERMOTT, Mr. LEWIS of Geor-
gia, Mr. NEAL of Massachusetts, Mr. MCNULTY, Mr. TANNER, Mr. 
BECERRA, Mr. DOGGETT, Mr. POMEROY, Mrs. JONES of Ohio, Mr. 
THOMPSON of California, Mr. LARSON of Connecticut, Mr. EMANUEL, 
Mr. BLUMENAUER, Mr. KIND, Mr. PASCRELL, Ms. BERKLEY, Mr. CROW-
LEY, Mr. VAN HOLLEN, Ms. SCHWARTZ, and Mr. DAVIS of Alabama) in-
troduced the following bill; which was referred to the Committee on Ways 
and Means 
JUNE 27, 2007 
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 June 19, 2007] 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
tax incentives for the production of renewable energy 
and energy conservation. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; 
TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the ‘‘Re-
newable Energy and Energy Conservation Tax Act of 
2007’’. 
(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 of this 
Act is as follows: 
Sec. 1. Short title; amendment of 1986 Code; table of contents. 
TITLE I—PRODUCTION INCENTIVES 
Sec. 101. Extension and modification of renewable energy credit. 
Sec. 102. Production credit for electricity produced from marine renewables. 
Sec. 103. Extension and modification of energy credit. 
Sec. 104. New clean renewable energy bonds. 
Sec. 105. Extension and modification of special rule to implement FERC and 
State electric restructuring policy. 
Sec. 106. Repeal of dollar limitation and allowance against alternative minimum 
tax for residential solar and fuel cell property credit. 
TITLE II—CONSERVATION 
Subtitle A—Transportation 
Sec. 201. Credit for plug-in hybrid vehicles. 
Sec. 202. Extension and modification of alternative fuel vehicle refueling property 
credit. 
Sec. 203. Extension and modification of credits for biodiesel and renewable diesel. 
Sec. 204. Credit for production of cellulosic alcohol. 
Sec. 205. Extension of transportation fringe benefit to bicycle commuters. 
Sec. 206. Modification of limitation on automobile depreciation. 
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Sec. 207. Restructuring of New York Liberty Zone tax credits. 
Subtitle B—Other Conservation Provisions 
Sec. 211. Qualified energy conservation bonds. 
Sec. 212. Qualified residential energy efficiency assistance bonds. 
Sec. 213. Extension of energy efficient commercial buildings deduction. 
Sec. 214. Modifications of energy efficient appliance credit for appliances pro-
duced after 2007. 
Sec. 215. Five-year applicable recovery period for depreciation of qualified energy 
management devices. 
TITLE III—REVENUE PROVISIONS 
Subtitle A—Denial of Oil and Gas Tax Benefits 
Sec. 301. Denial of deduction for income attributable to domestic production of 
oil, natural gas, or primary products thereof. 
Sec. 302. 7-year amortization of geological and geophysical expenditures for cer-
tain major integrated oil companies. 
Sec. 303. Clarification of determination of foreign oil and gas extraction income. 
Subtitle B—Clarification of Eligibility for Certain Fuel Credits 
Sec. 311. Clarification of eligibility for renewable diesel credit. 
Sec. 312. Clarification that credits for fuel are designed to provide an incentive 
for United States production. 
TITLE IV—OTHER PROVISIONS 
Subtitle A—Studies 
Sec. 401. Carbon audit of the tax code. 
Sec. 402. Comprehensive study of biofuels. 
Subtitle B—Application of Certain Labor Standards on Projects Financed 
Under Tax Credit Bonds 
Sec. 411. Application of certain labor standards on projects financed under tax 
credit bonds. 
TITLE I—PRODUCTION 
INCENTIVES 
SEC. 101. EXTENSION AND MODIFICATION OF RENEWABLE 
ENERGY CREDIT. 
(a) EXTENSION OF CREDIT.—Each of the following 
provisions of section 45(d) (relating to qualified facilities) 
is amended by striking ‘‘January 1, 2009’’ and inserting 
‘‘January 1, 2013’’: 
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(1) Paragraph (1). 
(2) Clauses (i) and (ii) of paragraph (2)(A). 
(3) Clauses (i)(I) and (ii) of paragraph (3)(A). 
(4) Paragraph (4). 
(5) Paragraph (5). 
(6) Paragraph (6). 
(7) Paragraph (7). 
(8) Subparagraphs (A) and (B) of paragraph 
(9). 
(b) MODIFICATION OF CREDIT PHASEOUT.— 
(1) REPEAL OF PHASEOUT.—Subsection (b) of 
section 45 is amended— 
(A) by striking paragraph (1), and 
(B) by striking ‘‘the 8 cent amount in para-
graph (1),’’ in paragraph (2) thereof. 
(2) LIMITATION BASED ON INVESTMENT IN FA-
CILITY.—Subsection (b) of section 45 is amended by 
inserting before paragraph (2) the following new 
paragraph: 
‘‘(1) LIMITATION BASED ON INVESTMENT IN FA-
CILITY.— 
‘‘(A) IN
GENERAL.—In the case of any 
qualified facility originally placed in service 
after December 31, 2008, the amount of the cred-
it determined under subsection (a) for any tax-
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able year with respect to electricity produced at 
such facility shall not exceed the product of— 
‘‘(i) the applicable percentage with re-
spect to such facility, multiplied by 
‘‘(ii) the eligible basis of such facility. 
‘‘(B) CARRYFORWARD OF UNUSED LIMITA-
TION AND EXCESS CREDIT.— 
‘‘(i) UNUSED LIMITATION.—If the limi-
tation imposed under subparagraph (A) 
with respect to any facility for any taxable 
year exceeds the credit determined under 
subsection (a) (determined without regard 
to this paragraph) with respect to such fa-
cility for such taxable year, the limitation 
imposed under subparagraph (A) with re-
spect to such facility for the succeeding tax-
able year shall be increased by the amount 
of such excess. 
‘‘(ii) EXCESS
CREDIT.—If the credit 
determined under subsection (a) (deter-
mined without regard to this paragraph) 
with respect to any facility for any taxable 
year exceeds the limitation imposed under 
subparagraph (A) with respect to such facil-
ity for such taxable year, the credit deter-
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mined under subsection (a) with respect to 
such facility for the succeeding taxable year 
(determined before the application of sub-
paragraph (A) for such succeeding taxable 
year) shall be increased by the amount of 
such excess. With respect to any facility, no 
amount may carried forward under this 
clause to any taxable year beginning after 
the 10-year period described in subsection 
(a)(2)(A)(ii) with respect to such facility. 
‘‘(C) APPLICABLE PERCENTAGE.—For pur-
poses of this paragraph— 
‘‘(i) IN GENERAL.—The term ‘applica-
ble percentage’ means, with respect to any 
facility, the appropriate percentage pre-
scribed by the Secretary for the month in 
which such facility is originally placed in 
service. 
‘‘(ii) METHOD OF PRESCRIBING PER-
CENTAGES.—The percentages prescribed by 
the Secretary for any month under clause 
(i) shall be percentages which yield over a 
10-year period amounts of limitation under 
subparagraph (A) which have a present 
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