I 
116TH CONGRESS 
1ST SESSION H. R. 2704 
To amend the Internal Revenue Code of 1986 to allow for transfers of 
the renewable electricity production credit and the energy credit. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 14, 2019 
Mr. BLUMENAUER (for himself and Mr. LAHOOD) 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 allow for 
transfers of the renewable electricity production credit 
and the energy credit. 
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 
Transferability Act’’. 
SEC. 2. TRANSFERS OF CREDITS FOR RENEWABLE ELEC-
TRICITY PRODUCTION FACILITIES AND EN-
ERGY PROPERTY. 
(a) RENEWABLE ELECTRICITY PRODUCTION CRED-
IT.—Section 45(e) of the Internal Revenue Code of 1986 
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is amended by adding at the end the following new para-
graph: 
‘‘(12) TRANSFER OF CREDIT.— 
‘‘(A) IN GENERAL.—If the taxpayer elects 
to transfer all (or any portion specified in the 
election) of the credit determined under this 
section for any taxable year with respect to any 
qualified facility to an eligible project partner 
for a specified period, then, the eligible project 
partner specified in such election (and not the 
taxpayer) shall be treated for purposes of this 
title with respect to such credit (or such portion 
thereof) as the person producing and selling the 
electricity to which such credit (or portion 
thereof) relates. 
‘‘(B) DEDUCTION FOR PAYMENTS IN CON-
NECTION WITH TRANSFER.—There shall be al-
lowed as a deduction under part VI of sub-
chapter B an amount equal to the amount paid 
by a taxpayer as consideration for a transfer 
described in subparagraph (A). 
‘‘(C) ELIGIBLE PROJECT PARTNER.—For 
purposes of this paragraph, the term ‘eligible 
project partner’ means, with respect to any 
qualified facility, any person who— 
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‘‘(i) has an ownership interest in such 
qualified facility, 
‘‘(ii) provided equipment for or serv-
ices in the construction of such qualified 
facility, 
‘‘(iii) provides electric transmission or 
distribution services for such qualified fa-
cility, 
‘‘(iv) purchases electricity from such 
qualified facility pursuant to a contract, or 
‘‘(v) provides financing for such quali-
fied facility. 
For purposes of clause (v), any amount paid as 
consideration for a transfer described in sub-
paragraph (A) shall not be treated as financing 
of a qualified facility. 
‘‘(D) TAXABLE
YEAR
IN
WHICH
CREDIT 
TAKEN
INTO
ACCOUNT.—In the case of any 
credit (or portion thereof) with respect to which 
an election is made under subparagraph (A), 
such credit shall be taken into account in the 
first taxable year of the eligible project partner 
ending with, or after, the electing taxpayer’s 
taxable year with respect to which the credit 
was determined. 
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‘‘(E) LIMITATIONS ON ELECTION.— 
‘‘(i) TIME FOR ELECTION.—An elec-
tion under this paragraph to transfer any 
portion of the credit allowed under this 
paragraph shall be made not later than the 
due date for the return of tax for the elect-
ing taxpayer’s taxable year with respect to 
which the credit was determined 
‘‘(ii) NO FURTHER TRANSFERS.—No 
election may be made under this paragraph 
by a taxpayer with respect to any portion 
of the credit allowed under this section 
which has been previously transferred to 
such taxpayer under this paragraph. 
‘‘(F) TREATMENT
OF
TRANSFER
UNDER 
PRIVATE USE RULES.—For purposes of section 
141(b)(1), any benefit derived by an eligible 
project partner in connection with an election 
under this subsection shall not be taken into ac-
count as a private business use. 
‘‘(G) ADDITIONAL
ELECTION
REQUIRE-
MENTS.—The Secretary may prescribe such 
regulations as may be appropriate to carry out 
the purposes of this paragraph, including— 
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‘‘(i) rules for determining which per-
sons are eligible project partners with re-
spect to any energy property, and 
‘‘(ii) requiring information to be in-
cluded in an election under subparagraph 
(A) or imposing additional reporting re-
quirements.’’. 
(b) ENERGY CREDIT.— 
(1) IN GENERAL.—Section 48 of the Internal 
Revenue Code of 1986 is amended by adding at the 
end the following new subsection: 
‘‘(e) TRANSFER OF CREDIT.— 
‘‘(1) IN GENERAL.—If the taxpayer elects to 
transfer all (or any portion specified in the election) 
of the credit determined under this section for any 
taxable year with respect to any energy property to 
an eligible project partner, the eligible project part-
ner specified in such election (and not the taxpayer) 
shall be treated as the taxpayer for purposes of this 
title with respect to such credit (or portion thereof). 
‘‘(2) DEDUCTION FOR PAYMENTS IN CONNEC-
TION WITH TRANSFER.—There shall be allowed as a 
deduction under part VI of subchapter B an amount 
equal to the amount paid by a taxpayer as consider-
ation for a transfer described in paragraph (1). 
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‘‘(3) ELIGIBLE PROJECT PARTNER.—For pur-
poses of this subparagraph, the term ‘eligible project 
partner’ means, with respect to any energy property, 
any person who— 
‘‘(A) has an ownership interest in such en-
ergy property, 
‘‘(B) provided equipment for or services in 
the construction of such energy property, 
‘‘(C) provides electric transmission or dis-
tribution services for such energy property, 
‘‘(D) purchases electricity from such quali-
fied facility pursuant to a contract, or 
‘‘(E) provides financing for such energy 
property. 
For purposes of subparagraph (E), any amount paid 
as consideration for a transfer described in para-
graph (1) shall not be treated as financing of a 
qualified facility. 
‘‘(4) TAXABLE YEAR IN WHICH CREDIT TAKEN 
INTO ACCOUNT.—In the case of any credit (or por-
tion thereof) with respect to which an election is 
made under paragraph (1), such credit shall be 
taken into account in the first taxable year of the el-
igible project partner ending with, or after, the elect-
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may be appropriate to carry out the purposes of this 
subsection, including— 
‘‘(A) rules for determining which persons 
are eligible project partners with respect to any 
energy property, and 
‘‘(B) requiring information to be included 
in an election under paragraph (1) or imposing 
additional reporting requirements.’’. 
(2) NORMALIZATION RULES.—Section 50(d) of 
such Code is amended by adding at the end the fol-
lowing: ‘‘In the case of any energy property with re-
spect to which an election is made under section 
48(e)(1), the rules of the section 46(f) referred to in 
paragraph (2) shall apply only to the extent of 
amounts paid in consideration of the transfer to 
which such election relates.’’ 
(c) SPECIAL RULE FOR PROCEEDS OF TRANSFERS 
FOR MUTUAL OR COOPERATIVE ELECTRIC COMPANIES.— 
Section 501(c)(12)(I) of such Code is amended by striking 
‘‘45J(e)(1)’’ and inserting ‘‘45(e)(12), 45J(e)(1), or 
48(e)(1)’’. 
(d) 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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