Renewable Energy and Job Creation Tax Act of 2008

Bill: 110-hr-7060
Sponsor: Rep. Rangel, Charles B. [D-NY-15]
Introduced: 2008-09-25 in the House
Policy area: Taxation
Subjects: Advanced technology and technological innovations
Alabama
Alternative and renewable resources
American Samoa
Books and print media
Business investment and capital
Capital gains tax
Climate change and greenhouse gases
Coal
Commuting
Corporate finance and management
District of Columbia
Economic development
Educational facilities and institutions
Electric power generation and transmission
Elementary and secondary education
Employee benefits and pensions
Employee hiring
Employment taxes
Energy efficiency and conservation
Environmental technology
Financial services and investments
Food assistance and relief
Food industry and services
Foreign and international corporations
General taxation matters
Government studies and investigations
Hazardous wastes and toxic substances
Higher education
Hybrid, electric, and advanced technology vehicles
Income tax credits
Income tax deductions
Income tax deferral
Income tax exclusion
Indian lands and resources rights
Indian social and development programs
Industrial facilities
Interest, dividends, interest rates
Louisiana
Minority employment
Mississippi
Motor carriers
Motor fuels
Motor vehicles
Natural disasters
Oil and gas
Outdoor recreation
Pedestrians and bicycling
Public utilities and utility rates
Puerto Rico
Railroads
Research and development
Sales and excise taxes
Securities
Small business
Sports and recreation facilities
State and local taxation
Student aid and college costs
Tax administration and collection, taxpayers
Tax treatment of families
Tax-exempt organizations
Taxation of foreign income
Teaching, teachers, curricula
Television and film
Terrorism
U.S. territories and protectorates
Virgin Islands
Wages and earnings

Summary:
action_date: 2008-09-25
text: 
Renewable Energy and Job Creation Tax Act of 2008 - Amends the Internal Revenue Code to provide tax incentives for energy conservation and production, to extend expiring provisions, and provide for revenue enhancements.

Extends the tax credit for producing electricity from renewable resources: (1) through 2009 for wind facilities; and (2) through FY2011 for closed and open-loop biomass, geothermal, small irrigation power, landfill gas, trash combustion, and hydropower facilities. Includes marine and hydrokinetic renewable energy as a renewable resource for purposes of such tax credit. 

Extends through 2016 the energy tax credit for solar energy, fuel cell, and microturbine property. Allows a new energy tax credit for combined heat and power system property. Increases to $1,500 the credit limitation for fuel cell property. 

Increases and extends through 2016 the tax credit for residential energy efficient property. Eliminates the limitation on the tax credit for solar electric property. Allows a new tax credit for 30% of expenditures for wind turbines used to generate electricity in a residence and for geothermal heat pumps.

Extends tax deferral provisions for the gain on sales of transmission property by vertically-integrated electric utilities to independent transmission companies approved by the Federal Energy Regulatory Commission (FERC).

Allows a 30% investment tax credit rate for advanced coal-based generation technology projects and increases the maximum credit amounts allocable for such projects to $2.55 billion.

Increases to 30% the investment tax credit rate for coal gasification projects. 

Extends the excise tax on coal through December 31, 2018. Sets forth special rules for refund claims of coal excise tax by certain coal producers and exporters.

Requires the Secretary of the Treasury to undertake a comprehensive review of Internal Revenue Code provisions that have the largest effects on carbon and other greenhouse gas emissions and provide an estimate of the magnitude of such effects.

Includes cellulosic biofuel within the definition of &quot;biomass ethanol plant property&quot; for purposes of bonus depreciation. 

Extends through 2009 income and excise tax credits for biodiesel and renewable diesel used as fuel. Increases the rates of such credits.

Disqualifies foreign-produced fuel that is used or sold for use outside the United States from the income and excise tax credits for alcohol, biodiesel, and alternative fuel production.

Allows a new tax credit for the production of qualified plug-in electric drive motor vehicles.

Allows an exclusion from the heavy truck excise tax for idling reduction devices and advanced insulation used in certain heavy trucks and trailers.

Allows employees to exclude reimbursements for bicycle commuting expenses from gross income.

Increases and extends the tax credit for residential and commercial alternative fuel refueling property expenditures.

Extends the tax credit for nonbusiness energy property expenditures through 2008. Includes energy-efficient biomass fuel stoves as property eligible for such tax credit.

Extends through 2013 the tax deduction for energy efficient commercial building expenditures.

Modifies tax credit amounts for energy efficient household appliances produced after 2007.

Allows an accelerated 10-year recovery period for the depreciation of qualified smart electric meters and smart electric grid systems. 

Extends through FY2012 the authority to issue tax-exempt green building and sustainable design project bonds.

Extends through 2009: (1) the tax deduction for state and local sales taxes in lieu of state and local income taxes; (2) the tax deduction for qualified tuition and related expenses; (3) the exemption from withholding of tax of interest-related and short-term capital gain dividends received from a regulated investment company (RIC) and the special rule for RIC stock held in the estate of nonresidents; (4) tax-free distributions from individual retirement plans for charitable purposes; (5) the tax deduction for certain expenses of elementary and secondary school teachers; (6) the inclusion of an RIC within the definition of &quot;qualified investment entity&quot; for income tax purposes; and (7) the additional standard tax deduction for real property taxes. 

 Extends through 2009: (1) the tax credits for increasing research activities, Indian employment, railroad track maintenance, and the new markets tax credit; (2) accelerated depreciation for qualified leasehold and restaurant improvements, for motorsports racing track facilities, and for business property on Indian reservations; (3) expensing of environmental remediation costs and certain film and television production costs; (4) the tax deduction for income attributable to domestic production activities in Puerto Rico; (5) special rules for related controlled foreign corporations and for the tax treatment of certain payments to tax-exempt organizations by a controlled subsidiary; (6) issuance authority for qualified zone academy bonds; (7) tax incentives for investment in the District of Columbia; (8) the economic development credit for American Samoa; (9) the expanded tax deductions for charitable contributions of food and book inventories by noncorporate taxpayers; (10) the special rule for reductions in the basis of S corporation stock for charitable contributions; (11) work opportunity tax credit eligibility for Hurricane Katrina employees (through August 28, 2009); (12) the subpart F income exemption for active financing income; and (13) the increase in alcohol excise taxes payable to Puerto Rico and the Virgin Islands.

Makes permanent the authority of the Internal Revenue Service (IRS) to: (1) conduct undercover operations; and (2) disclose tax return information related to terrorist activities.

Lowers in 2008 (from $10,000 to $8,500) the earned income threshold amount for determining the refundable portion of the child tax credit.

Modifies certain provisions relating to the tax deduction for domestic film and television productions.

 Exempts from the excise tax on bows and arrows certain arrow shafts. 

 Modifies the standards for imposing penalties on tax return preparers for understatements of tax to require: (1) substantial authority for a position with respect to an item on a tax return if such position was not disclosed with the return; and (2) a reasonable basis for a position that was disclosed with the return. Requires tax return preparers to have a reasonable belief that a position with respect to a tax shelter or a reportable transaction (a transaction having a potential for tax avoidance or evasion) will more likely than not be sustained on its merits.

Provides for revenue enhancements by: (1) reducing by 3% the tax deduction for income attributable to domestic production activities for taxpayers with income derived from activities related to oil, gas, or any primary products thereof; (2) conforming the tax treatment of foreign oil and gas extraction income and foreign oil related income for purposes of the foreign tax credit; (3) including within the reporting requirements of investment brokers the adjusted basis of any publicly traded security owned by customers of such brokers; (4) extending through 2009 the 0.2% Federal Unemployment Tax Act (FUTA) surtax; (5) requiring the inclusion in gross income of employee compensation deferred under compensation plans of certain foreign business entities; (6) delaying until 2017 the application of special rules for the worldwide allocation of interest for purposes of computing the limitation on the foreign tax credit; and (7) increasing the estimated tax payments of certain large corporations in the third quarter of 2013.


Legislative actions:
action_date: 2008-12-09
text: Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 1130.
action_date: 2008-12-08
text: Read the first time. Placed on Senate Legislative Calendar under Read the First Time.
action_date: 2008-09-26
text: Received in the Senate.
action_date: 2008-09-26
text: On passage Passed by the Yeas and Nays: 257 - 166 (Roll no. 649). (text: CR H9981-9997)
action_date: 2008-09-26
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2008-09-26
text: Passed/agreed to in House: On passage Passed by the Yeas and Nays: 257 - 166 (Roll no. 649).(text: CR H9981-9997)
action_date: 2008-09-26
text: On motion to table the motion to appeal the ruling of the chair Agreed to by the Yeas and Nays: 220 - 198 (Roll no. 648).
action_date: 2008-09-26
text: Motion to appeal the ruling of the chair tabled.
action_date: 2008-09-26
text: Mr. Neal (MA) moved to table the motion to appeal the ruling of the chair (consideration: CR H10041-10042)
action_date: 2008-09-26
text: Mr. Camp (MI) appealed the ruling of the chair. The question was then put on sustaining the ruling of the chair.
action_date: 2008-09-26
text: Mr. Neal (MA) raised a point of order against the motion to recommit with instructions. Mr. Neal stated that the motion to recommit seeks to exceed the scope of the bill and the amendment is therefore, not germane. Sustained by the Chair.
action_date: 2008-09-26
text: DEBATE - The House proceeded with 10 minutes of debate on the Camp motion to recommit with instructions. The instructions contained in the motion seek to require the bill to be reported back to the House forthwith with an amendment in the nature of a substitute relating to energy provisions.
action_date: 2008-09-26
text: Mr. Camp (MI) moved to recommit with instructions to Ways and Means. (consideration: CR H10006-10042; text: CR H10006-10040)
action_date: 2008-09-26
text: DEBATE - The House proceeded with one hour of debate on H.R. 7060.
action_date: 2008-09-26
text: Rule provides for consideration of H.R. 7060 with 1 hour of general debate. Motion to recommit with or without installowed. Measure will be considered read. Bill is closed to amendments. Waives all points of order against consideration of the bill except those arising under clause 10 for rule XXI.
action_date: 2008-09-26
text: Considered under the provisions of rule H. Res. 1502. (consideration: CR H9981-10042)
action_date: 2008-09-26
text: Rule H. Res. 1502 passed House.
action_date: 2008-09-25
text: Rules Committee Resolution H. Res. 1502 Reported to House. Rule provides for consideration of H.R. 7060 with 1 hour of general debate. Motion to recommit with or without installowed. Measure will be considered read. Bill is closed to amendments. Waives all points of order against consideration of the bill except those arising under clause 10 for rule XXI.
action_date: 2008-09-25
text: Rule H. Res. 1501 passed House.
action_date: 2008-09-25
text: Rules Committee Resolution H. Res. 1501 Reported to House. Previous question shall be considered as ordered without intervening motions except motion to recommit. Providing for consideration of the bill H.R. 7060. All points of order against considerationof the bill are waived except those arising under clause 10 of rule XXI.
action_date: 2008-09-25
text: Referred to the House Committee on Ways and Means.
action_date: 2008-09-25
text: Introduced in House
action_date: 2008-09-25
text: Introduced in House