‘‘(iii) SPECIAL RULES FOR DECREASE 
IN CREDITS FOR TAXABLE YEAR.—If the 
amount of the credit of the organization 
determined under such subsection for a 
taxable year is less than the amount of 
such credit shown on the return of the or-
ganization for such year, an amount equal 
to the excess of— 
‘‘(I) such reduction, over 
‘‘(II) the amount not apportioned 
to such patrons under subparagraph 
(A) for the taxable year, 
shall be treated as an increase in tax im-
posed by this chapter on the organization. 
Such increase shall not be treated as tax 
imposed by this chapter for purposes of de-
termining the amount of any credit under 
this chapter or for purposes of section 55. 
‘‘(f) TERMINATION.—This section shall not apply to 
any sale or use after December 31, 2018.’’. 
(b) CLERICAL AMENDMENT.—The item relating to 
section 40A in the table of sections for subpart D of part 
IV of subchapter A of chapter 1 is amended to read as 
follows: 
‘‘Sec. 40A. Qualified diesel used as fuel.’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to fuel produced after the date of 
the enactment of this Act. 
SEC. 302. EXTENSION OF CREDIT FOR ALCOHOL USED AS 
FUEL. 
(a) INCOME TAX CREDIT.—Paragraph (1) of section 
40(e) is amended— 
(1) in subparagraph (A) by striking ‘‘December 
31, 2010’’ and inserting ‘‘December 31, 2018’’, and 
(2) in subparagraph (B) by striking ‘‘January 
1, 2011’’ and inserting ‘‘January 1, 2019’’. 
(b) EXCISE TAX CREDIT.—Section 6426(b)(5) is 
amended by striking ‘‘December 31, 2010’’ and inserting 
‘‘December 31, 2018’’. 
(c) FUELS NOT USED FOR TAXABLE PURPOSES.— 
Section 6427(e)(5)(A) is amended by striking ‘‘December 
31, 2010’’ and inserting ‘‘December 31, 2018’’. 
SEC. 303. EXTENSION OF CREDIT FOR ALTERNATIVE 
FUELS. 
(a) ALTERNATIVE FUEL.—Paragraph (4) of section 
6426(d) is amended to read as follows: 
‘‘(4) TERMINATION.—This subsection shall not 
apply to any sale or use for any period after Decem-
ber 31, 2018.’’. 
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(b) ALTERNATIVE FUEL MIXTURE.—Paragraph (3) 
of section 6426(e) is amended to read as follows: 
‘‘(3) TERMINATION.—This subsection shall not 
apply to any sale or use for any period after Decem-
ber 31, 2018.’’. 
(c) FUELS NOT USED FOR TAXABLE PURPOSES.— 
Section 6427(e)(5)(C) is amended by striking ‘‘September 
30, 2009’’ and inserting ‘‘December 31, 2018’’. 
SEC. 304. INVESTMENT TAX CREDIT FOR CELLULOSIC BIO-
MASS ETHANOL PLANT PROPERTY. 
(a) ALLOWANCE OF CREDIT.—Subpart E of part IV 
of subchapter A of chapter 1 is amended by inserting after 
section 48B the following new section: 
‘‘SEC. 48C. CELLULOSIC BIOMASS ETHANOL PLANT FACIL-
ITY. 
‘‘(a) GENERAL RULE.—For purposes of section 46, 
the cellulosic biomass ethanol plant credit for any taxable 
year is 30 percent of the cost of any qualified cellulosic 
biomass ethanol plant property. 
‘‘(b) QUALIFIED CELLULOSIC BIOMASS ETHANOL 
PLANT PROPERTY.—The term ‘qualified cellulosic bio-
mass ethanol plant property’ means property of a char-
acter subject to the allowance for depreciation— 
‘‘(1) which is used in the United States solely 
to produce cellulosic biomass ethanol, 
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‘‘(2) the original use of which commences with 
the taxpayer after the date of the enactment of this 
section, 
‘‘(3) which is acquired by the taxpayer by pur-
chase (as defined in section 179(d)) after the date 
of the enactment of this subsection, but only if no 
written binding contract for the acquisition was in 
effect on or before the date of the enactment of this 
subsection, and 
‘‘(4) which is placed in service by the taxpayer 
before January 1, 2019. 
‘‘(c) CELLULOSIC BIOMASS ETHANOL.—For pur-
poses of this section, the term ‘cellulosic biomass ethanol’ 
means ethanol produced from any lignocellulosic or 
hemicellulosic matter that is available on a renewable or 
recurring basis. 
‘‘(d) SPECIAL RULE
FOR CERTAIN SUBSIDIZED 
PROPERTY.—For purposes of this section, rules similar to 
the rules of section 48(a)(4) shall apply. 
‘‘(e) DENIAL OF DOUBLE BENEFIT.—A deduction or 
credit shall not be allowed under any other provision of 
this chapter for the cost taken into account under sub-
section (a).’’. 
(b) CREDIT TREATED
AS PART
OF INVESTMENT 
CREDIT.—Section 46 is amended by striking ‘‘and’’ at the 
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end of paragraph (3), by striking the period at the end 
of paragraph (4) and inserting ‘‘, and’’, and by adding 
at the end the following new paragraph: 
‘‘(5) the cellulosic biomass ethanol plant cred-
it.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 49(a)(1)(C) is amended by striking 
‘‘and’’ at the end of clause (iii), by striking the pe-
riod at the end of clause (iv) and inserting ‘‘, and’’, 
and by adding at the end the following new clause: 
‘‘(v) the basis of any qualified cel-
lulosic biomass ethanol plant property.’’. 
(2) Section 168 is amended by striking sub-
section (l). 
(3) The table of sections for subpart E of part 
IV of subchapter A of chapter 1 of such Code is 
amended by inserting after the item relating to sec-
tion 48B the following new item: 
‘‘Sec. 48C. Cellulosic biomass ethanol plant facility.’’. 
TITLE IV—INCENTIVES TO 
CONSERVE ENERGY 
SEC. 401. EXTENSION OF NONBUSINESS ENERGY PROP-
ERTY. 
Subsection (g) of section 25C is amended by striking 
‘‘December 31, 2007’’ and inserting ‘‘December 31, 
2018’’. 
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SEC. 402. MODIFICATIONS OF ENERGY EFFICIENT APPLI-
ANCE CREDIT FOR APPLIANCES PRODUCED 
AFTER 2007. 
(a) IN GENERAL.—Subsection (b) of section 45M (re-
lating to applicable amount) is amended to read as follows: 
‘‘(b) APPLICABLE AMOUNT.—For purposes of sub-
section (a)— 
‘‘(1) DISHWASHERS.—The applicable amount 
is— 
‘‘(A) $45 in the case of a dishwasher which 
is manufactured in calendar year 2008 or 2009 
and which uses no more than 324 kilowatt 
hours per year and 5.8 gallons per cycle, and 
‘‘(B) $75 in the case of a dishwasher 
which is manufactured in calendar year 2008, 
2009, or 2010 and which uses no more than 
307 kilowatt hours per year and 5.0 gallons per 
cycle (5.5 gallons per cycle for dishwashers de-
signed for greater than 12 place settings). 
‘‘(2) 
CLOTHES
WASHERS.—The 
applicable 
amount is— 
‘‘(A) $75 in the case of a residential top- 
loading clothes washer manufactured in cal-
endar year 2008 which meets or exceeds a 1.72 
modified energy factor and does not exceed a 
8.0 water consumption factor, 
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‘‘(B) $125 in the case of a residential top- 
loading clothes washer manufactured in cal-
endar year 2008 or 2009 which meets or ex-
ceeds a 1.8 modified energy factor and does not 
exceed a 7.5 water consumption factor, 
‘‘(C) $150 in the case of a residential or 
commercial clothes washer manufactured in cal-
endar year 2008, 2009 or 2010 which meets or 
exceeds 2.0 modified energy factor and does not 
exceed a 6.0 water consumption factor, and 
‘‘(D) $250 in the case of a residential or 
commercial clothes washer manufactured in cal-
endar year 2008, 2009, or 2010 which meets or 
exceeds 2.2 modified energy factor and does not 
exceed a 4.5 water consumption factor. 
‘‘(3) REFRIGERATORS.—The applicable amount 
is— 
‘‘(A) $50 in the case of a refrigerator 
which is manufactured in calendar year 2008, 
and consumes at least 20 percent but not more 
than 22.9 percent less kilowatt hours per year 
than the 2001 energy conservation standards, 
‘‘(B) $75 in the case of a refrigerator 
which is manufactured in calendar year 2008 or 
2009, and consumes at least 23 percent but no 
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more than 24.9 percent less kilowatt hours per 
year than the 2001 energy conservation stand-
ards, 
‘‘(C) $100 in the case of a refrigerator 
which is manufactured in calendar year 2008, 
2009 or 2010, and consumes at least 25 per-
cent but not more than 29.9 percent less kilo-
watt hours per year than the 2001 energy con-
servation standards, and 
‘‘(D) $200 in the case of a refrigerator 
manufactured in calendar year 2008, 2009 or 
2010 and which consumes at least 30 percent 
less energy than the 2001 energy conservation 
standards. 
‘‘(4) DEHUMIDIFIERS.—The applicable amount 
is— 
‘‘(A) $15 in the case of a dehumidifier 
manufactured in calendar year 2008 that has a 
capacity less than or equal to 45 pints per day 
and is 7.5 percent more efficient than the appli-
cable Department of Energy energy conserva-
tion standard effective October 2012, and 
‘‘(B) $25 in the case of a dehumidifier 
manufactured in calendar year 2008 that has a 
capacity greater than 45 pints per day and is 
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7.5 percent more efficient than the applicable 
Department of Energy energy conservation 
standard effective October 2012.’’. 
(b) ELIGIBLE PRODUCTION.— 
(1) SIMILAR
TREATMENT
FOR
ALL
APPLI-
ANCES.—Subsection (c) of section 45M (relating to 
eligible production) is amended— 
(A) by striking paragraph (2), 
(B) by striking ‘‘(1) IN GENERAL’’ and all 
that follows through ‘‘the eligible’’ and inserting 
‘‘The eligible’’, and 
(C) by moving the text of such subsection 
in line with the subsection heading and redesig-
nating subparagraphs (A) and (B) as para-
graphs (1) and (2), respectively. 
(2) MODIFICATION
OF
BASE
PERIOD.—Para-
graph (2) of section 45M(c), as amended by para-
graph (1) of this section, is amended by striking ‘‘3- 
calendar year’’ and inserting ‘‘2-calendar year’’. 
(c) TYPES OF ENERGY EFFICIENT APPLIANCES.— 
Subsection (d) of section 45M (defining types of energy 
efficient appliances) is amended to read as follows: 
‘‘(d) TYPES OF ENERGY EFFICIENT APPLIANCE.— 
For purposes of this section, the types of energy efficient 
appliances are— 
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‘‘(1) dishwashers described in subsection (b)(1), 
‘‘(2) clothes washers described in subsection 
(b)(2), 
‘‘(3) 
refrigerators 
described 
in 
subsection 
(b)(3), and 
‘‘(4) dehumidifiers described in subsection 
(b)(4).’’. 
(d) AGGREGATE CREDIT AMOUNT ALLOWED.— 
(1) INCREASE IN LIMIT.—Paragraph (1) of sec-
tion 45M(e) (relating to aggregate credit amount al-
lowed) is amended to read as follows: 
‘‘(1) AGGREGATE CREDIT AMOUNT ALLOWED.— 
The aggregate amount of credit allowed under sub-
section (a) with respect to a taxpayer for any tax-
able year shall not exceed $100,000,000 reduced by 
the amount of the credit allowed under subsection 
(a) to the taxpayer (or any predecessor) for all prior 
taxable years beginning after December 31, 2007.’’. 
(2) EXCEPTION FOR CERTAIN REFRIGERATOR 
AND CLOTHES WASHERS.—Paragraph (2) of section 
45M(e) is amended to read as follows: 
‘‘(2) AMOUNT ALLOWED FOR CERTAIN REFRIG-
ERATORS
AND
CLOTHES
WASHERS.—Refrigerators 
described in subsection (b)(3)(D) and clothes wash-
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ers described in subsection (b)(2)(D) shall not be 
taken into account under paragraph (1).’’. 
(e) QUALIFIED ENERGY EFFICIENT APPLIANCES.— 
(1) IN
GENERAL.—Paragraph (1) of section 
45M(f) (defining qualified energy efficient appliance) 
is amended to read as follows: 
‘‘(1) QUALIFIED
ENERGY
EFFICIENT
APPLI-
ANCE.—The term ‘qualified energy efficient appli-
ance’ means— 
‘‘(A) any dishwasher described in sub-
section (b)(1), 
‘‘(B) any clothes washer described in sub-
section (b)(2), 
‘‘(C) any refrigerator described in sub-
section (b)(3), and 
‘‘(D) any dehumidifier described in sub-
section (b)(4).’’. 
(2) CLOTHES WASHER.—Section 45M(f)(3) (de-
fining clothes washer) is amended by inserting 
‘‘commercial’’ before ‘‘residential’’ the second place 
it appears. 
(3) TOP-LOADING
CLOTHES
WASHER.—Sub-
section (f) of section 45M (relating to definitions) is 
amended by redesignating paragraphs (4), (5), (6), 
and (7) as paragraphs (5), (6), (7), and (8), respec-
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tively, and by inserting after paragraph (3) the fol-
lowing new paragraph: 
‘‘(4) TOP-LOADING
CLOTHES
WASHER.—The 
term ‘‘top-loading clothes washer’’ means a clothes 
washer which has the clothes container compartment 
access located on the top of the machine and which 
operates on a vertical axis.’’. 
(4) DEHUMIDIFIER.—Subsection (f) of section 
45M, as amended by paragraph (3), is amended by 
redesignating paragraphs (6), (7), and (8) as para-
graphs (7), (8) and (9), respectively, and by insert-
ing after paragraph (5) the following new para-
graph: 
‘‘(6) DEHUMIDIFIER.—The term ‘dehumidifier’ 
means a self-contained, electrically operated, and 
mechanically refrigerated encased assembly con-
sisting of— 
‘‘(A) a refrigerated surface that condenses 
moisture from the atmosphere, 
‘‘(B) a refrigerating system, including an 
electric motor, 
‘‘(C) an air-circulating fan, and 
‘‘(D) means for collecting or disposing of 
condensate.’’. 
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(5) REPLACEMENT OF ENERGY FACTOR.—Sec-
tion 45M(f)(7), as amended by paragraph (4), is 
amended to read as follows: 
‘‘(7) MODIFIED
ENERGY
FACTOR.—The term 
‘modified energy factor’ means the modified energy 
factor established by the Department of Energy for 
compliance with the Federal energy conservation 
standard.’’. 
(6) GALLONS
PER
CYCLE; WATER
CONSUMP-
TION FACTOR.—Section 45M(f) (relating to defini-
tions) is amended by adding at the end the fol-
lowing: 
‘‘(10) GALLONS PER CYCLE.—The term ‘gallons 
per cycle’ means, with respect to a dishwasher, the 
amount of water, expressed in gallons, required to 
complete a normal cycle of a dishwasher. 
‘‘(11) WATER
CONSUMPTION
FACTOR.—The 
term ‘water consumption factor’ means, with respect 
to a clothes washer, the quotient of the total weight-
ed per-cycle water consumption divided by the cubic 
foot (or liter) capacity of the clothes washer.’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to appliances produced after De-
cember 31, 2007. 
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SEC. 403. INCREASE AND EXTENSION OF ENERGY EFFI-
CIENT COMMERCIAL BUILDINGS DEDUCTION. 
(a) INCREASE IN AMOUNT OF DEDUCTION.—Section 
179D (relating to energy efficient commercial buildings 
deduction) is amended— 
(1) in subsection (b)(1)(A) by striking ‘‘$1.80’’ 
and inserting ‘‘$2.25’’, and 
(2) in subsection (d)(1)(A) by striking ‘‘$.60 
for $1.80’’ and inserting ‘‘$.75 for $2.25’’. 
(b) EXTENSION.—Subsection (h) of section 179D 
(relating to termination) is amended by striking ‘‘Decem-
ber 31, 2008’’ and inserting ‘‘December 31, 2018’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service in 
taxable years beginning after December 31, 2006. 
TITLE V—CREDIT FOR OIL 
SHALE RECOVERY COSTS 
SEC. 501. INCENTIVES FOR EXTRACTION AND PROCESSING 
OF OIL SHALE. 
(a) INVESTMENT TAX CREDIT FOR EXTRACTION AND 
PROCESSING OF OIL SHALE USING IN-SITU CONVERSION 
TECHNOLOGY.— 
(1) IN GENERAL.—Subpart E of part IV of 
subchapter A of chapter 1 is amended by inserting 
after section 48C the following new section: 
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‘‘SEC. 48D. OIL SHALE EXTRACTION AND PROCESSING FA-
CILITY. 
‘‘(a) GENERAL RULE.—For purposes of section 46, 
the oil shale extraction and processing credit for any tax-
able year is 30 percent of the cost of any qualified oil shale 
extraction and processing property. 
‘‘(b) QUALIFIED
OIL
SHALE
EXTRACTION
AND 
PROCESSING PROPERTY.—The term ‘qualified oil shale 
extraction and processing property’ means property of a 
character subject to the allowance for depreciation— 
‘‘(1) which is used in the United States solely 
to extract and process oil shale using in-situ conver-
sion technology, 
‘‘(2) the original use of which commences with 
the taxpayer after the date of the enactment of this 
section, 
‘‘(3) which is acquired by the taxpayer by pur-
chase (as defined in section 179(d)) after the date 
of the enactment of this subsection, but only if no 
written binding contract for the acquisition was in 
effect on or before the date of the enactment of this 
subsection, and 
‘‘(4) which is placed in service by the taxpayer 
before January 1, 2019. 
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‘‘(c) SPECIAL
RULE
FOR
CERTAIN
SUBSIDIZED 
PROPERTY.—For purposes of this section, rules similar to 
the rules of section 48(a)(4) shall apply. 
‘‘(d) DENIAL OF DOUBLE BENEFIT.—A deduction or 
credit shall not be allowed under any other provision of 
this chapter for the cost taken into account under sub-
section (a).’’. 
(2) CREDIT TREATED AS PART OF INVESTMENT 
CREDIT.—Section 46 is amended by striking ‘‘and’’ 
at the end of paragraph (4), by striking the period 
at the end of paragraph (5) and inserting ‘‘, and’’, 
and by adding at the end the following new para-
graph: 
‘‘(6) the oil shale extraction and processing 
credit.’’. 
(3) CONFORMING AMENDMENTS.— 
(A) Section 49(a)(1)(C) is amended by 
striking ‘‘and’’ at the end of clause (iv), by 
striking the period at the end of clause (v) and 
inserting ‘‘, and’’, and by adding at the end the 
following new clause: 
‘‘(vi) the basis of any qualified oil 
shale extraction and processing property.’’. 
(B) The table of sections for subpart E of 
part IV of subchapter A of chapter 1 is amend-
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ed by inserting after the item relating to section 
48C the following new item: 
‘‘Sec. 48D. Oil shale extraction and processing facility.’’. 
(b) EXPENSING OIL SHALE EXTRACTION AND PROC-
ESSING PROPERTY.—Part VI of subchapter B of chapter 
1 of is amended by inserting after section 179F the fol-
lowing new section: 
‘‘SEC. 179G. ELECTION TO EXPENSE CERTAIN OIL SHALE 
EXTRACTION AND PROCESSING PROPERTY. 
‘‘(a) TREATMENT AS EXPENSES.—A taxpayer may 
elect to treat the cost of any qualified oil shale extraction 
and processing property as an expense which is not 
chargeable to capital account. Any cost so treated shall 
be allowed as a deduction for the taxable year in which 
the expense is incurred. 
‘‘(b) ELECTION.— 
‘‘(1) IN GENERAL.—An election under this sec-
tion for any taxable year shall be made on the tax-
payer’s return of the tax imposed by this chapter for 
the taxable year. Such election shall be made in such 
manner as the Secretary may by regulations pre-
scribe. 
‘‘(2) ELECTION
IRREVOCABLE.—Any election 
made under this section may not be revoked except 
with the consent of the Secretary. 
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‘‘(c) QUALIFIED OIL SHALE EXTRACTION AND PROC-
ESSING PROPERTY.—For purposes of this section— 
‘‘(1) The term ‘qualified oil shale extraction 
and processing property’ means any property located 
in the United States— 
‘‘(A) the original use of which commences 
with the taxpayer and which original use is 
solely to extract or process oil shale, and 
‘‘(B) which is placed in service by the tax-
payer after the date of the enactment of this 
section and before January 1, 2019. 
‘‘(d) ELECTION TO ALLOCATE DEDUCTION TO COOP-
ERATIVE OWNER.—If— 
‘‘(1) a taxpayer to which subsection (a) applies 
is an organization to which part I of subchapter T 
applies, and 
‘‘(2) one or more persons directly holding an 
ownership interest in the taxpayer are organizations 
to which part I of subchapter T apply, 
the taxpayer may elect to allocate all or a portion of the 
deduction allowable under subsection (a) to such persons. 
Such allocation shall be equal to the person’s ratable share 
of the total amount allocated, determined on the basis of 
the person’s ownership interest in the taxpayer. The tax-
able income of the taxpayer shall not be reduced under 
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section 1382 by reason of any amount to which the pre-
ceding sentence applies. 
‘‘(e) BASIS REDUCTION.— 
‘‘(1) IN GENERAL.—For purposes of this title, 
if a deduction is allowed under this section with re-
spect to any qualified oil shale extraction and proc-
essing property, the basis of such property shall be 
reduced by the amount of the deduction so allowed. 
‘‘(2) ORDINARY
INCOME
RECAPTURE.—For 
purposes of section 1245, the amount of the deduc-
tion allowable under subsection (a) with respect to 
any property which is of a character subject to the 
allowance for depreciation shall be treated as a de-
duction allowed for depreciation under section 167. 
‘‘(f) APPLICATION WITH OTHER DEDUCTIONS AND 
CREDITS.— 
‘‘(1) OTHER DEDUCTIONS.—No deduction shall 
be allowed under any other provision of this chapter 
with respect to any expenditure with respect to 
which a deduction is allowed under subsection (a) to 
the taxpayer. 
‘‘(2) CREDITS.—No credit shall be allowed 
under section 38 with respect to any amount for 
which a deduction is allowed under subsection (a). 
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