Biogas Investment Tax Credit Act of 2014

Bill: 113-s-2739
Sponsor: full_name: Sen. Schumer, Charles E. [D-NY]
Introduced: 2014-07-31
Policy area: Taxation
Subjects: Alternative and renewable resources

Energy research

Income tax credits

Oil and gas

Securities
Latest action: action_date: 2014-07-31
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2014-07-31
action_desc: Introduced in Senate
text: <p>Biogas Investment Tax Credit Act of 2014 - Amends the Internal Revenue Code to allow: (1) an energy tax credit through 2019 for investment in qualified biogas property, and (2) financing of qualified biogas property with new clean renewable energy bonds. Defines "qualified biogas property" as property comprising a system which uses anaerobic digesters or other processes to convert biomas into a gas which consists of not less than 52% methane and which captures such gas for use as a fuel. </p> <p>Directs the Secretary of the Treasury to enter into an agreement with the National Renewable Energy Laboratory to undertake a study of biogas and to submit a report to Congress on such study.</p>

tv_txt: II 113th CONGRESS 2d Session S. 2739 IN THE SENATE OF THE UNITED STATES July 31, 2014 Mr. Schumer introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to make qualified biogas property eligible for the energy credit and to permit new clean renewable energy bonds to finance qualified biogas property.

1. Short title This Act may be cited as the Biogas Investment Tax Credit Act of 2014 . 2. Incentives for qualified biogas property (a) Incentives for qualified biogas property made eligible for the energy credit (1) In general Subparagraph (A) of section 48(a)(3) of the Internal Revenue Code of 1986 is amended by striking or at the end of clause (vi), by inserting or at the end of clause (vii), and by adding at the end the following new clause: (viii) qualified biogas property, . (2) Qualified biogas property Subsection (c) of section 48 of such Code is amended by adding at the end the following new paragraph: (5) Qualified biogas property (A) In general The term qualified biogas property means property comprising a system which— (i) uses anaerobic digesters or other biological, chemical, thermal, or mechanical processes (alone or in combination) to convert biomass (as defined in section 45K(c)(3)) into a gas which consists of not less than 52 percent methane, and (ii) captures such gas for use as a fuel. (B) Inclusion of certain cleaning and conditioning equipment Such term shall include any property which cleans and conditions the gas referred to in subparagraph (A) for use as a fuel. (C) Termination No credit shall be determined under this section with respect to any qualified biogas property for any period after December 31, 2019. . (3) Qualified biogas property made eligible for 30 percent credit Clause (i) of section 48(a)(2)(A) of such Code is amended by striking and at the end of subclause (III) and by adding at the end the following new subclause: (V) qualified biogas property, and . (4) Denial of double benefit Subsection (e) of section 45 of such Code is amended by adding at the end the following new paragraph: (12) Coordination with energy credit for qualified biogas property The term qualified facility shall not include any facility which produces electricity from gas produced by qualified biogas property (as defined in section 48(c)(5)) if a credit is determined under section 48 with respect to such property for the taxable year or any prior taxable year. . (5) Effective date The amendments made by this subsection shall apply to periods after December 31, 2013, in taxable years ending after such date, 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). (b) Qualified biogas property made eligible for financing with new clean renewable energy bonds (1) In general Paragraph (1) of section 54C(d) of the Internal Revenue Code of 1986 is amended by inserting , or a qualified biogas property (as defined in section 48(c)(5)), before owned by . (2) Effective date The amendment made by this subsection shall apply to obligations issued after the date of the enactment of this Act. (c) Study of biogas The Secretary of the Treasury shall enter into an agreement with the National Renewable Energy Laboratory to undertake a study of biogas. Such agreement shall provide for a written report to be submitted to Congress not later than 2 years after the date of the enactment of this Act. Such report shall address the following issues: (1) The quality of biogas, including a comparison of biogas to natural gas and the identification of any components of biogas which make it unsuitable for injection into existing natural gas pipelines. (2) Methods for obtaining the highest energy content in biogas, including the use of co-digestion and identifying the optimal feed mixture. (3) Recommendations for the expansion of biogas production, including an analysis of the extent to which increasing the methane content of biogas would result in its greater use and an analysis of how the expanded use of biogas could help meet the growing energy needs of the United States.