I 
109TH CONGRESS 
2D SESSION 
H. R. 5010 
To amend the Internal Revenue Code of 1986 to extend the credit for 
electricity produced from certain renewable resources, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 16, 2006 
Mrs. WILSON of New Mexico (for herself, Mr. SIMPSON, Mr. OTTER, Mr. 
BROWN of Ohio, and Mr. TERRY) 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 extend 
the credit for electricity produced from certain renewable 
resources, 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. 
This Act may be cited as the ‘‘Renewable Energy 
Credit Extension Act of 2006’’. 
SEC. 2. EXTENSION OF RENEWABLE ENERGY CREDIT. 
Section 45(d) of the Internal Revenue Code of 1986 
(relating to qualified facilities) is amended by striking 
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‘‘January 1, 2008’’ each place it appears and inserting 
‘‘January 1, 2013’’. 
SEC. 3. TREATMENT OF PERSONS NOT ABLE TO USE EN-
TIRE CREDIT. 
(a) IN GENERAL.—Section 45(e) of the Internal Rev-
enue Code of 1986 (relating to definitions and special 
rules) is amended by adding at the end the following new 
paragraph: 
‘‘(12) TREATMENT OF PERSONS NOT ABLE TO 
USE ENTIRE CREDIT.— 
‘‘(A) ALLOWANCE OF CREDIT.— 
‘‘(i) IN GENERAL.—Except as other-
wise provided in this subsection— 
‘‘(I) any credit allowable under 
subsection (a) with respect to a quali-
fied facility owned by a person de-
scribed in clause (ii) may be trans-
ferred or used as provided in this 
paragraph, and 
‘‘(II) the determination as to 
whether the credit is allowable shall 
be made without regard to the tax-ex-
empt status of the person. 
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‘‘(ii) PERSONS DESCRIBED.—A person 
is described in this clause if the person 
is— 
‘‘(I) an organization described in 
section 501(c)(12)(C) and exempt 
from tax under section 501(a), 
‘‘(II) an organization described 
in section 1381(a)(2)(C), 
‘‘(III) a public utility (as defined 
in section 136(c)(2)(B)), which is ex-
empt from income tax under this sub-
title, 
‘‘(IV) any State or political sub-
division thereof, the District of Co-
lumbia, any possession of the United 
States, or any agency or instrumen-
tality of any of the foregoing, or 
‘‘(V) any Indian tribal govern-
ment (within the meaning of section 
7871) or any agency or instrumen-
tality thereof. 
‘‘(B) TRANSFER OF CREDIT.— 
‘‘(i) IN
GENERAL.—A person de-
scribed in subparagraph (A)(ii) may trans-
fer any credit to which subparagraph 
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(A)(i) applies through an assignment to 
any other person not described in subpara-
graph (A)(ii). Such transfer may be re-
voked only with the consent of the Sec-
retary. 
‘‘(ii) REGULATIONS.—The Secretary 
shall prescribe such regulations as nec-
essary to ensure that any credit described 
in clause (i) is assigned once and not reas-
signed by such other person. 
‘‘(iii) TRANSFER PROCEEDS TREATED 
AS
ARISING
FROM
ESSENTIAL
GOVERN-
MENT
FUNCTION.—Any proceeds derived 
by a person described in subclause (III), 
(IV), or (V) of subparagraph (A)(ii) from 
the transfer of any credit under clause (i) 
shall be treated as arising from the exer-
cise of an essential government function. 
‘‘(C) USE OF CREDIT AS AN OFFSET.— 
Notwithstanding any other provision of law, in 
the case of a person described in subclause (I), 
(II), or (V) of subparagraph (A)(ii), any credit 
to which subparagraph (A)(i) applies may be 
applied by such person, to the extent provided 
by the Secretary of Agriculture, as a prepay-
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ment of any loan, debt, or other obligation the 
entity has incurred under subchapter I of chap-
ter 31 of title 7 of the Rural Electrification Act 
of 1936 (7 U.S.C. 901 et seq.), as in effect on 
the date of the enactment of the Energy Tax 
Incentives Act. 
‘‘(D) CREDIT NOT INCOME.—Any transfer 
under subparagraph (B) or use under subpara-
graph (C) of any credit to which subparagraph 
(A)(i) applies shall not be treated as income for 
purposes of section 501(c)(12). 
‘‘(E) TREATMENT
OF
UNRELATED
PER-
SONS.—For purposes of subsection (a)(2)(B), 
sales of electricity among and between persons 
described in subparagraph (A)(ii) shall be treat-
ed as sales between unrelated parties.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to electricity produced and sold 
after the date of the enactment of this Act, in taxable 
years ending after such date. 
Æ 
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