I 
110TH CONGRESS 
1ST SESSION H. R. 2810 
To amend the Internal Revenue Code of 1986 to provide a credit against 
income tax for biomethane produced from biomass which is equivalent 
to the credit allowed for electricity produced from biomass. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 21, 2007 
Mr. JEFFERSON (for himself, Ms. NORTON, Mr. BUTTERFIELD, and Mr. 
MELANCON) introduced the following bill; which was referred to the Com-
mittee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
a credit against income tax for biomethane produced 
from biomass which is equivalent to the credit allowed 
for electricity produced from biomass. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. CREDIT FOR BIOMETHANE PRODUCED FROM 
BIOMASS WHICH IS EQUIVALENT TO CREDIT 
FOR ELECTRICITY PRODUCED FROM BIO-
MASS. 
(a) IN GENERAL.—Subsection (e) of section 45 of the 
Internal Revenue Code of 1986 (relating to electricity pro-
VerDate Aug 31 2005 
02:12 Jun 23, 2007
Jkt 059200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H2810.IH
H2810
hmoore on PRODPC68 with HMBILLS
duced from certain renewable resources, etc.) is amended 
by redesignating paragraphs (9), (10), and (11) as para-
graphs (10), (11), and (12), respectively, and by inserting 
after paragraph (8) the following new paragraph: 
‘‘(9) CREDIT
FOR
BIOMETHANE
PRODUCED 
FROM BIOMASS WHICH IS EQUIVALENT TO CREDIT 
FOR ELECTRICITY PRODUCED FROM BIOMASS.— 
‘‘(A) 
DETERMINATION
OF
CREDIT 
AMOUNT.—In the case of a producer of bio-
methane, the credit determined under this sec-
tion (without regard to this paragraph) for any 
taxable year shall be increased by 1.5 cents for 
each 3412 Btus of biomethane— 
‘‘(i) produced by the taxpayer— 
‘‘(I) from biomass, and 
‘‘(II) at a biomethane facility 
during the 10-year period beginning 
on the date the facility was originally 
placed in service, and 
‘‘(ii) sold by the taxpayer to an unre-
lated person during the taxable year. 
‘‘(B) BIOMASS.—For purposes of this 
paragraph, the term ‘biomass’ has the meaning 
given to such term by section 45K(c)(3). 
VerDate Aug 31 2005 
02:12 Jun 23, 2007
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H2810.IH
H2810
hmoore on PRODPC68 with HMBILLS
‘‘(C) BIOMETHANE.—For purposes of this 
paragraph, the term ‘biomethane’ means gas 
produced from biomass if the properties of such 
gas meet the requirements to be transported in 
an interstate natural gas pipeline as a natural 
gas substitute. Such term includes liquefied gas 
which would be described in the preceding sen-
tence but for being in liquid form. 
‘‘(D) APPLICATION
OF
RULES.—Rules 
similar to the rules of the subsection (b)(3) and 
paragraphs (1) through (5) of this subsection 
shall apply for purposes of determining the 
amount of any increase under this paragraph. 
‘‘(E) FACILITIES PRODUCING ELECTRICITY 
BEFORE
JANUARY
1, 2008.—For purposes of 
subparagraph (A)(i)(II) and subsection (d)(11), 
in the case of a facility which was originally 
placed in service before January 1, 2008 (deter-
mined without regard to this subparagraph), 
and which produced electricity from methane— 
‘‘(i) such facility shall be treated as 
originally placed in service on the first day 
on which such facility first produced bio-
methane if no credit was allowed under 
VerDate Aug 31 2005 
02:12 Jun 23, 2007
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H2810.IH
H2810
hmoore on PRODPC68 with HMBILLS
this section for electricity so produced and 
sold before such day, or 
‘‘(ii) if credit was allowed under this 
section for such electricity, only the portion 
of the 10-year period referred to in sub-
section (a)(2)(A)(ii) which is after Decem-
ber 31, 2007, may be taken into account 
under this paragraph.’’. 
(b) BIOMETHANE FACILITY.—Subsection (d) of sec-
tion 45 of such Code is amended by adding at the end 
the following new paragraph: 
‘‘(11) BIOMETHANE FACILITY.—In the case of 
a facility producing biomethane, the term ‘bio-
methane facility’ means any facility placed in service 
after December 31, 2007, and before January 1, 
2017.’’. 
(c) COORDINATION WITH CREDIT FOR PRODUCING 
FUEL FROM A NONCONVENTIONAL SOURCE.—Paragraph 
(10) of section 45(e) of such Code, as redesignated by sub-
section (a), is amended by adding at the end the following 
new subparagraph: 
‘‘(C) BIOMETHANE FACILITIES.—The term 
‘biomethane facility’ shall not include any facil-
ity the production from which is allowed as a 
credit under section 45K for the taxable year or 
VerDate Aug 31 2005 
02:12 Jun 23, 2007
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H2810.IH
H2810
hmoore on PRODPC68 with HMBILLS
any prior taxable year (or under section 29, as 
in effect on the day before the date of enact-
ment of the Energy Tax Incentives Act of 2005, 
for any prior taxable year).’’. 
(d) CONFORMING AMENDMENT.—Paragraph (2) of 
section 45(b) of such Code is amended by striking ‘‘sub-
section (a)’’ and inserting ‘‘subsections (a) and (e)(9)(A)’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to biomethane produced and sold 
after December 31, 2007. 
Æ 
VerDate Aug 31 2005 
02:12 Jun 23, 2007
Jkt 059200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6301
E:\BILLS\H2810.IH
H2810
hmoore on PRODPC68 with HMBILLS