Renewable Energy Investment Act
Bill: H.R.3180 | Sponsor: Rep. Blumenauer, Earl (D-OR)
Policy area: Taxation

Summary:
Renewable Energy Investment Act
This bill allows taxpayers, including certain pass-thru entities such as partnerships and S corporations, to elect to receive tax excludable payments in lieu of amounts attributable to the tax credits for energy property and for electricity produced from certain renewable resources.

To amend the Internal Revenue Code of 1986 to provide an elective 
   payment for energy property and electricity produced from certain 
              renewable resources, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Renewable Energy Investment Act''.

SEC. 2. ELECTIVE PAYMENT FOR ENERGY PROPERTY AND ELECTRICITY PRODUCED 
              FROM CERTAIN RENEWABLE RESOURCES, ETC.

    (a) In General.--Subchapter B of chapter 65 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new section:

``SEC. 6431. ELECTIVE PAYMENT FOR ENERGY PROPERTY AND ELECTRICITY 
              PRODUCED FROM CERTAIN RENEWABLE RESOURCES, ETC.

    ``(a) Energy Property.--In the case of a taxpayer making an 
election under this subsection (at such time and in such manner as the 
Secretary may provide) with respect to any portion of an applicable 
credit, such taxpayer shall be treated as making a payment against the 
tax imposed by subtitle A for the taxable year equal to the amount of 
such portion.
    ``(b) Application to Partnerships and S Corporations.--
            ``(1) In general.--In the case of any applicable credit 
        determined with respect to any qualified resources, qualified 
        facility, or energy property held directly by a partnership or 
        S corporation, if such partnership or S corporation makes an 
        election under this subsection (in such manner as the Secretary 
        may provide) with respect to any portion of such credit--
                    ``(A) the Secretary shall make a payment to such 
                partnership or S corporation equal to the amount of 
                such portion,
                    ``(B) subsection (e)(1) shall be applied with 
                respect to such credit before determining any partner's 
                distributive share, or shareholder's pro rata share, of 
                such credit, and
                    ``(C) any amount excluded from gross income by 
                reason of subsection (e)(2) shall be treated as tax 
                exempt income for purposes of sections 705 and 1366.
            ``(2) Coordination with application at partner or 
        shareholder level.--In the case of any partnership or S 
        corporation, subsection (a) shall be applied at the partner or 
        shareholder level after application of paragraph (1)(B).
            ``(3) Irrevocable election.--Any election under this 
        subsection shall be made not later than the due date (including 
        extensions of time) for the partnership or S corporation return 
        for the taxable year for which the applicable credit is 
        determined. Any such election, once made, shall be irrevocable.
    ``(c) Application to Governmental Entities.--In the case of an 
election under this section--
            ``(1) any State or local government, or a political 
        subdivision thereof, or
            ``(2) an Indian tribal government (within the meaning of 
        section 139E),
shall not fail to be treated as a taxpayer for purposes of this section 
and determining any applicable credit.
    ``(d) Applicable Credit.--For purposes of this section, the term 
`applicable credit' means each of the following credits determined with 
respect to the taxpayer:
            ``(1) The energy credit under section 48.
            ``(2) The renewable electricity production credit under 
        section 45.
    ``(e) Special Rules.--
            ``(1) Denial of double benefit.--Solely for purposes of 
        section 38, in the case of a taxpayer making an election under 
        this section with respect to any applicable credit, such credit 
        shall be reduced by the amount of the portion of such credit 
        with respect to which the taxpayer makes such election.
            ``(2) Exclusion from gross income.--Gross income of the 
        taxpayer shall be determined without regard to this section.
            ``(3) Timing of deemed payment.--The payment described in 
        subsection (a) shall be treated as made on--
                    ``(A) in the case of any government, or political 
                subdivision, to which paragraph (1) applies and for 
                which no return is required under section 6011 or 
                6033(a), the later of the date that a return would be 
                due under section 6033(a) if such government or 
                subdivision were described in that section or the date 
                on which such government or subdivision submits a claim 
                for credit or refund (at such time and in such manner 
                as the Secretary shall provide), and
                    ``(B) in any other case, the later of the due date 
                of the return of tax for the taxable year or the date 
                on which such return is filed.
            ``(4) Waiver of special rules.--In the case of an election 
        under this section, the determination of any applicable credit 
        shall be without regard to paragraphs (3) and (4)(A)(i) of 
        section 50(b).
            ``(5) Treatment of payments to partnerships and s 
        corporations.--For purposes of section 1324 of title 31, United 
        States Code, the payments under subsection (b)(1)(B) shall be 
        treated in the same manner as a refund due from a credit 
        provision referred to in subsection (b)(2) of such section.
    ``(f) Regulations.--The Secretary shall issue such regulations or 
other guidance as may be necessary or appropriate to carry out the 
purposes of this section, including regulations or other guidance 
providing rules for determining a partner's distributive share of the 
tax exempt income described in subsection (b)(1)(C).''.
    (b) Clerical Amendment.--The table of sections for subchapter B of 
chapter 65 of such Code is amended by adding at the end the following 
new item:

``Sec. 6431. Elective payment for energy property and electricity 
                            produced from certain renewable resources, 
                            etc.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property originally placed in service after the date of the 
enactment of this Act.
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