I 
110TH CONGRESS 
1ST SESSION H. R. 2691 
To amend the Internal Revenue Code of 1986 to provide additional incentives 
for facilities producing electricity from wind. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 12, 2007 
Mr. WALZ of Minnesota (for himself, Mr. PETERSON of Minnesota, Mr. 
ELLISON, Ms. MCCOLLUM of Minnesota, Ms. KAPTUR, and Mr. BOS-
WELL) 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 provide 
additional incentives for facilities producing electricity 
from wind. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. PARTIAL EXEMPTION FROM PASSIVE ACTIVITY 
LIMITATIONS FOR QUALIFIED WIND FACILI-
TIES. 
(a) IN GENERAL.—Section 469 of the Internal Rev-
enue Code of 1986 (relating to passive activity losses and 
credits limited) is amended by redesignating subsections 
(l) and (m) as subsections (m) and (n), respectively, and 
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by inserting after subsection (k) the following new sub-
section: 
‘‘(l) $40,000 OFFSET FOR QUALIFIED WIND FACILI-
TIES.— 
‘‘(1) IN GENERAL.—In the case of any natural 
person, subsection (a) shall not apply to that portion 
of the passive activity loss or the deduction equiva-
lent (within the meaning of subsection (j)(5)) of the 
passive activity credit for any taxable year which is 
attributable to any interest of such person in a facil-
ity described in section 45(d)(1) (relating to wind fa-
cility). 
‘‘(2) DOLLAR
LIMITATION.—The aggregate 
amount to which paragraph (1) applies for any tax-
able year shall not exceed $40,000. 
‘‘(3) SPECIAL RULE FOR ESTATES.— 
‘‘(A) IN GENERAL.—In the case of taxable 
years of an estate ending less than 2 years after 
the date of the death of the decedent, this sub-
section shall apply to any interest in a facility 
described in section 45(d)(1) (relating to wind 
facility) held by the decedent on the date of his 
death. 
‘‘(B) 
REDUCTION
FOR
SURVIVING 
SPOUSE’S EXEMPTION.—For purposes of sub-
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paragraph (A), the $40,000 amount under 
paragraph (2) shall be reduced by the amount 
of the exemption under paragraph (1) allowable 
to the surviving spouse of the decedent for the 
taxable year ending with or within the taxable 
year of the estate. 
‘‘(4) MARRIED
INDIVIDUALS
FILING
SEPA-
RATELY.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), in the case of any married 
individual filing a separate return, this sub-
section 
shall 
be 
applied 
by 
substituting 
‘$20,000’ for ‘$40,000’ each place it appears. 
‘‘(B) TAXPAYERS
NOT
LIVING
APART.— 
This subsection shall not apply to a taxpayer 
who— 
‘‘(i) is a married individual filing a 
separate return for any taxable year, and 
‘‘(ii) does not live apart from his 
spouse at all times during such taxable 
year.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to losses and credits taken into 
account in taxable years beginning after the date of the 
enactment of this Act. 
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SEC. 2. CREDIT FOR ELECTRICITY PRODUCED FROM 
QUALIFIED 
WIND 
FACILITIES 
ALLOWED 
AGAINST ALTERNATIVE MINIMUM TAX. 
(a) IN GENERAL.—Subparagraph (B) of section 
38(c)(4) of the Internal Revenue Code of 1986 (relating 
to specified credits) is amended— 
(1) by striking ‘‘and’’ at the end of clause (i), 
(2) by inserting ‘‘(other than a facility de-
scribed in clause (iii))’’ after ‘‘facility’’ in clause 
(ii)(I), 
(3) by striking the period at the end of clause 
(ii) and inserting ‘‘, and’’, and 
(4) by adding at the end the following new 
clause: 
‘‘(iii) the credit determined under sec-
tion 45 to the extent that such credit is at-
tributable to electricity produced at a facil-
ity described in section 45(d)(1) (relating 
to wind facility).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Æ 
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