(but not below zero) by the amount which bears the 
same ratio to the amount otherwise so applicable as 
such excess bears to $5. 
‘‘(2) ROUNDING.—Any reduction determined 
under subparagraph (A) which is not a multiple of 
10 cents shall be rounded to the nearest multiple of 
10 cents. 
‘‘(3) MARKET
PRICE.—For purposes of this 
paragraph, the market price per mmBtu for any tax-
able year shall be the daily average market price per 
mmBtu on the Chicago exchange during the 3- 
month period ending at the close of the preceding 
taxable year. 
‘‘(d) SPECIAL RULES.—For purposes of this sec-
tion— 
‘‘(1) PRODUCTION ATTRIBUTABLE TO THE TAX-
PAYER.—In the case of a facility in which more than 
1 person has an ownership interest, except to the ex-
tent provided in regulations prescribed by the Sec-
retary, production from the qualified facility shall be 
allocated among such persons in proportion to their 
respective ownership interests in the gross sales 
from such qualified facility. 
‘‘(2) RELATED
PERSONS.—Persons shall be 
treated as related to each other if such persons 
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would be treated as a single employer under the reg-
ulations prescribed under section 52(b). In the case 
of a corporation which is a member of an affiliated 
group of corporations filing a consolidated return, 
such corporation shall be treated as selling livestock- 
derived renewable energy to an unrelated person if 
such biogas is sold to such a person by another 
member of such group. 
‘‘(3) PASS-THRU IN THE CASE OF ESTATES AND 
TRUSTS.—Under regulations prescribed by the Sec-
retary, rules similar to the rules of subsection (d) of 
section 52 shall apply. 
‘‘(4) COORDINATION WITH CREDIT FROM PRO-
DUCING
FUEL
FROM
A
NONCONVENTIONAL 
SOURCE.—The amount of livestock-derived renew-
able energy produced and sold or used by the tax-
payer during any taxable year which is taken into 
account under this section shall be reduced by the 
amount of livestock-derived renewable energy pro-
duced and sold by the taxpayer in such taxable year 
which is taken into account under section 45K. 
‘‘(5) CREDIT ELIGIBILITY IN THE CASE OF GOV-
ERNMENT-OWNED
FACILITIES
USING
POULTRY 
WASTE.—In the case of a facility using poultry 
waste to produce livestock-derived renewable energy 
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and owned by a governmental unit, subparagraph 
(B) of subsection (b)(3) shall be applied by sub-
stituting ‘is leased or operated by the taxpayer’ for 
‘is owned by the taxpayer’. 
‘‘(e) TRANSFERABILITY OF CREDIT.— 
‘‘(1) IN GENERAL.—A taxpayer may transfer 
the credit under this section through an assignment 
to any person. Such transfer may be revoked only 
with the consent of the Secretary. 
‘‘(2) REGULATIONS.—The Secretary shall pre-
scribe such regulations as necessary to ensure that 
any credit transferred under paragraph (1) is 
claimed once and not reassigned by such other per-
son. 
‘‘(f) ADJUSTMENT BASED ON INFLATION.— 
‘‘(1) IN GENERAL.—The $5.56 amount in sub-
section (a)(1) and the $11 amount in subsection 
(c)(2)(A) shall each be adjusted by multiplying such 
amount by the inflation adjustment factor for the 
calendar year in which the sale occurs. If any 
amount as increased under the preceding sentence is 
not a multiple of 0.1 cent, such amount shall be 
rounded to the nearest multiple of 0.1 cent. 
‘‘(2) COMPUTATION
OF
INFLATION
ADJUST-
MENT FACTOR.— 
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‘‘(A) IN GENERAL.—The Secretary shall, 
not later than April 1 of each calendar year, de-
termine and publish in the Federal Register the 
inflation adjustment factor in accordance with 
this paragraph. 
‘‘(B) INFLATION ADJUSTMENT FACTOR.— 
The term ‘inflation adjustment factor’ means, 
with respect to a calendar year, a fraction the 
numerator of which is the GDP implicit price 
deflator for the preceding calendar year and the 
denominator of which is the GDP implicit price 
deflator for calendar year 2007. The term 
‘GDP implicit price deflator’ means the most 
recent revision of the implicit price deflator for 
the gross domestic product as computed and 
published by the Department of Commerce be-
fore March 15 of the calendar year.’’. 
(b) CREDIT TREATED AS BUSINESS CREDIT.—Sec-
tion 38(b) of such Code is amended by striking ‘‘plus’’ 
at the end of paragraph (30), by striking the period at 
the end of paragraph (31) and inserting ‘‘, plus’’, and by 
adding at the end the following new paragraph: 
‘‘(32) the livestock-derived renewable energy 
production credit under section 40B(a).’’. 
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(c) CREDIT
ALLOWED
AGAINST
AMT.—Section 
38(c)(4)(B) of such Code is amended by striking ‘‘and’’ 
at the end of clause (i), by striking the period at the end 
of clause (ii)(II) and inserting ‘‘, and’’, and by adding at 
the end the following new clause: 
‘‘(iii) the credit determined under sec-
tion 40B.’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of such Code is amended by inserting after the item relat-
ing to section 40A the following new item: 
‘‘Sec. 40B. Renewable energy produced from livestock waste using EPA-verified 
technologies for the comprehensive environmental treatment of 
livestock waste.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to energy produced, and sold or 
used, in taxable years beginning after the date of the en-
actment of this Act. 
TITLE II—RESEARCH AND DE-
VELOPMENT 
TO 
REDUCE 
GREENHOUSE GASES 
SEC. 201. FUNDING THE RENEWABLE ENERGY TECH-
NOLOGY VALLEY OF DEATH. 
Section 207 of the Energy Independence and Security 
Act of 2007 (42 U.S.C. 17022) is amended— 
(1) in subsection (a)— 
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