I 
109TH CONGRESS 
1ST SESSION H. R. 1541
To amend the Internal Revenue Code of 1986 to enhance energy infrastruc-
ture properties in the United States and to encourage the use of certain 
energy technologies, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 12, 2005
Mr. THOMAS 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 enhance 
energy infrastructure properties in the United States 
and to encourage the use of certain energy technologies, 
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. REFERENCE; TABLE OF CONTENTS. 
(a) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
ment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows:
Sec. 1. Reference; table of contents. 
TITLE I—ENERGY INFRASTRUCTURE TAX INCENTIVES 
Sec. 101. Natural gas gathering lines treated as 7-year property. 
Sec. 102. Natural gas distribution lines treated as 15-year property. 
Sec. 103. Electric transmission property treated as 15-year property. 
Sec. 104. Expansion of amortization for certain atmospheric pollution control 
facilities in connection with plants first placed in service after 
1975. 
Sec. 105. Modification of credit for producing fuel from a nonconventional 
source. 
Sec. 106. Modifications to special rules for nuclear decommissioning costs. 
Sec. 107. Arbitrage rules not to apply to prepayments for natural gas. 
Sec. 108. Determination of small refiner exception to oil depletion deduction. 
TITLE II—MISCELLANEOUS ENERGY TAX INCENTIVES 
Sec. 201. Credit for residential energy efficient property. 
Sec. 202. Credit for business installation of qualified fuel cells. 
Sec. 203. Reduced motor fuel excise tax on certain mixtures of diesel fuel. 
Sec. 204. Amortization of delay rental payments. 
Sec. 205. Amortization of geological and geophysical expenditures. 
Sec. 206. Advanced lean burn technology motor vehicle credit. 
Sec. 207. Credit for energy efficiency improvements to existing homes. 
TITLE III—ALTERNATIVE MINIMUM TAX RELIEF 
Sec. 301. New nonrefundable personal credits allowed against regular and min-
imum taxes. 
Sec. 302. Certain business energy credits allowed against regular and minimum 
taxes.
TITLE I—ENERGY INFRASTRUC-
TURE TAX INCENTIVES 
SEC. 101. NATURAL GAS GATHERING LINES TREATED AS 7-
YEAR PROPERTY. 
(a) IN GENERAL.—Subparagraph (C) of section 
168(e)(3) (relating to classification of certain property) is 
amended by striking ‘‘and’’ at the end of clause (iii), by
redesignating clause (iv) as clause (v), and by inserting 
after clause (iii) the following new clause: 
‘‘(iv) any natural gas gathering line, 
and’’. 
(b) NATURAL GAS GATHERING LINE.—Subsection (i) 
of section 168 is amended by inserting after paragraph 
(16) the following new paragraph: 
‘‘(17) NATURAL
GAS
GATHERING
LINE.—The 
term ‘natural gas gathering line’ means—
‘‘(A) the pipe, equipment, and appur-
tenances determined to be a gathering line by 
the Federal Energy Regulatory Commission, 
and 
‘‘(B) the pipe, equipment, and appur-
tenances used to deliver natural gas from the 
wellhead or a commonpoint to the point at 
which such gas first reaches—
‘‘(i) a gas processing plant, 
‘‘(ii) an interconnection with a trans-
mission pipeline for which a certificate as 
an interstate transmission pipeline has 
been issued by the Federal Energy Regu-
latory Commission, 
‘‘(iii) an interconnection with an 
intrastate transmission pipeline, or
‘‘(iv) a direct interconnection with a 
local distribution company, a gas storage 
facility, or an industrial consumer.’’. 
(c) ALTERNATIVE SYSTEM.—The table contained in 
section 168(g)(3)(B) is amended by inserting after the 
item relating to subparagraph (C)(iii) the following:
‘‘(C) (iv) ....................................................................................................
14’’.
(d) ALTERNATIVE MINIMUM TAX EXCEPTION.—Sub-
paragraph (B) of section 56(a)(1) is amended by inserting 
before the period the following: ‘‘, or in section 
168(e)(3)(C)(iv)’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
April 11, 2005. 
SEC. 102. NATURAL GAS DISTRIBUTION LINES TREATED AS 
15-YEAR PROPERTY. 
(a) IN GENERAL.—Subparagraph (E) of section 
168(e)(3) (relating to classification of certain property) is 
amended by striking ‘‘and’’ at the end of clause (v), by 
striking the period at the end of clause (vi) and inserting 
‘‘, and’’, and by adding at the end the following new 
clause: 
‘‘(vii) any natural gas distribution 
line.’’.
(b) ALTERNATIVE SYSTEM.—The table contained in 
section 168(g)(3)(B) is amended by inserting after the 
item relating to subparagraph (E)(vi) the following:
‘‘(E) (vii) ...................................................................................................
35’’.
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
April 11, 2005. 
SEC. 103. ELECTRIC TRANSMISSION PROPERTY TREATED 
AS 15-YEAR PROPERTY. 
(a) IN GENERAL.—Subparagraph (E) of section 
168(e)(3) (relating to classification of certain property), 
as amended by section 102 of this Act, is amended by 
striking ‘‘and’’ at the end of clause (vi), by striking the 
period at the end of clause (vii) and inserting ‘‘, and’’, 
and by adding at the end the following new clause: 
‘‘(viii) any section 1245 property (as 
defined in section 1245(a)(3)) used in the 
transmission at 69 or more kilovolts of 
electricity for sale and the original use of 
which commences with the taxpayer after 
April 11, 2005.’’. 
(b) ALTERNATIVE SYSTEM.—The table contained in 
section 168(g)(3)(B) is amended by inserting after the 
item relating to subparagraph (E)(vii) the following:
‘‘(E) (viii) ..................................................................................................
30’’.