I 
110TH CONGRESS 
1ST SESSION H. R. 1451 
To provide incentives to reduce dependence on foreign oil. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 9, 2007 
Mr. DANIEL E. LUNGREN of California (for himself and Mr. COSTA) intro-
duced the following bill; which was referred to the Committee on Ways 
and Means, and in addition to the Committees on Science and Tech-
nology and Energy and Commerce, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To provide incentives to reduce dependence on foreign oil. 
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 ‘‘New Options Petro-
leum Energy Conservation Act of 2007’’. 
SEC. 2. CLIMATE NEUTRAL COMBUSTION CREDIT. 
(a) IN GENERAL.—Section 46 of the Internal Rev-
enue Code of 1986 (relating to amount of credit) is 
amended by striking ‘‘and’’ at the end of paragraph (3), 
by striking the period at the end of paragraph (4) and 
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inserting ‘‘, and’’, and by adding at the end the following 
new paragraph: 
‘‘(5) the climate neutral combustion credit.’’. 
(b) AMOUNT OF CREDIT.—Subpart E of part IV of 
subchapter A of chapter 1 of such Code (relating to rules 
for computing investment credit) is amended by inserting 
after section 48B the following new section: 
‘‘SEC. 48C. CLIMATE NEUTRAL COMBUSTION CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 46, the 
climate neutral combustion credit for any taxable year is 
an amount equal to 20 percent of the qualified investment 
for such taxable year. 
‘‘(b) QUALIFIED INVESTMENT.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the qualified investment for any taxable year is 
the basis of any property placed in service by the 
taxpayer during such taxable year which is part of 
a climate neutral combustion facility— 
‘‘(A)(i) the construction, reconstruction, or 
erection of which is completed by the taxpayer, 
or 
‘‘(ii) which is acquired by the taxpayer if 
the original use of such property commences 
with the taxpayer, and 
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‘‘(B) with respect to which depreciation (or 
amortization in lieu of depreciation) is allow-
able. 
‘‘(2) SPECIAL RULE FOR CERTAIN SUBSIDIZED 
PROPERTY.—Rules similar to section 48(a)(4) shall 
apply for purposes of this section. 
‘‘(3) CERTAIN QUALIFIED PROGRESS EXPENDI-
TURES RULES MADE APPLICABLE.—Rules similar to 
the rules of subsections (c)(4) and (d) of section 46 
(as in effect on the day before the enactment of the 
Revenue Reconciliation Act of 1990) shall apply for 
purposes of this section. 
‘‘(c) CLIMATE NEUTRAL COMBUSTION FACILITY.— 
For purposes of this section, the term ‘climate neutral 
combustion facility’ means any facility which— 
‘‘(1) burns matter to produce electricity, 
‘‘(2) captures the carbon dioxide released dur-
ing combustion and uses such carbon dioxide to re-
cover hydrocarbon fuel from below ground, and 
‘‘(3) produces no atmospheric emissions of mer-
cury or greenhouse gasses and no emissions that 
form fine particulate, smog, or acid rain. 
‘‘(d) DENIAL OF DOUBLE BENEFIT.—A credit shall 
not be allowed under this section for any qualified invest-
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ment for which a credit is allowed under section 48A or 
48B.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 49(a)(1)(C) of such Code is amend-
ed by striking ‘‘and’’ at the end of clause (iii), by 
striking the period at the end of clause (iv) and in-
serting ‘‘, and’’, and by adding at the end the fol-
lowing new clause: 
‘‘(v) the basis of any property which 
is part of a qualifying climate neutral com-
bustion facility.’’. 
(2) 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. Climate neutral combustion credit.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to periods after the date of the 
enactment of this Act, under rules similar to the rules of 
section 48(m) of the Internal Revenue Code of 1986 (as 
in effect on the day before the date of the enactment of 
the Revenue Reconciliation Act of 1990). 
SEC. 3. EXTENSION OF ENERGY CREDIT FOR SOLAR EN-
ERGY PROPERTY. 
(a) IN GENERAL.—Paragraph (2)(A)(i)(II) and para-
graph (3)(A)(ii) of section 48(a) of the Internal Revenue 
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Code of 1986 (relating to energy credit) are each amended 
by striking ‘‘2009’’ and inserting ‘‘2013’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to periods after December 31, 
2008, in taxable years ending after such date, under rules 
similar to the rules of section 48(m) of the Internal Rev-
enue Code of 1986 (as in effect on the day before the date 
of the enactment of the Revenue Reconciliation Act of 
1990). 
SEC. 4. EXTENSION OF CREDIT FOR RESIDENTIAL ENERGY 
EFFICIENT PROPERTY. 
(a) IN GENERAL.—Subsection (g) of section 25D of 
the Internal Revenue Code of 1986 is amended by striking 
‘‘2008’’ and inserting ‘‘2012’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to property placed in service after 
December 31, 2008. 
SEC. 5. PRIZE PROGRAM. 
The Secretary of Energy shall establish a program 
to award a prize in the amount of $1,000,000,000 to the 
first automobile manufacturer incorporated in the United 
States to manufacture and sell in the United States 
60,000 midsized sedan automobiles which operate on gaso-
line and can travel 100 miles per gallon. 
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