Hydropower Capacity Improvement Act

Hydropower Capacity Improvement Act - Amends the Internal Revenue Code to allow: (1) a tax credit through tax year 2011 for incremental hydropower for additional generating capacity and increased efficiency at existing dams licensed by the Federal Energy Regulatory Commission; and (2) such credit for public utilities, certain organizations, and States, possessions, and Indian tribal governments. Permits credit assignment.

[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1677 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 1677

 To amend the Internal Revenue Code of 1986 to allow a tax credit for 
incremental hydropower for additional generating capacity and increased 
 efficiency at existing dams licensed by the Federal Energy Regulatory 
                              Commission.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 2, 2001

   Ms. Dunn 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 a tax credit for 
incremental hydropower for additional generating capacity and increased 
 efficiency at existing dams licensed by the Federal Energy Regulatory 
                              Commission.

    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 ``Hydropower Capacity Improvement 
Act''.

SEC. 2. TAX CREDIT FOR INCREMENTAL HYDROPOWER FOR ADDITIONAL GENERATING 
              CAPACITY AND INCREASED EFFICIENCY AT EXISTING DAMS 
              LICENSED BY THE FEDERAL ENERGY REGULATORY COMMISSION.

    (a) Credit for Incremental Hydropower.--
            (1) In general.--Subpart D of part IV of subchapter A of 
        chapter 1 of the Internal Revenue Code of 1986 (relating to 
        business credits), is amended by inserting after section 45D 
        the following new section:

``SEC. 45E. INCREMENTAL HYDROPOWER CREDIT.

    ``(a) Credit Amount.--For purposes of section 38, in the case of a 
qualified entity, the incremental hydropower credit is $65 multiplied 
by the excess of--
            ``(1) the number of kilowatts of licensed generating 
        capacity of a qualified hydroelectric facility on the last day 
        of the taxable year, over
            ``(2) the licensed kilowatt capacity of such facility on 
        January 1, 2001.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Qualified entity.--The term `qualified entity' means 
        any entity that is an owner of a qualified hydroelectric 
        facility.
            ``(2) Qualified hydroelectric facility.--The term 
        `qualified hydroelectric facility' means a non-Federal 
        hydropower facility in existence on January 1, 2001, and 
        licensed by the Federal Energy Regulatory Commission.
            ``(3) Incremental hydropower.--The term `incremental 
        hydropower' means additional generating capacity achieved from 
        increased efficiency or additions of new capacity at a 
        qualified hydroelectric facility.
    ``(c) Credit Allowed for Public Utilities and Other Entities.--Any 
credit which would be allowable under subsection (a) with respect to a 
qualified hydroelectric facility of an entity if such entity were not 
exempt from tax under this chapter shall be treated as a credit 
allowable under subpart C to such entity if such entity is--
            ``(1) a public utility,
            ``(2) an organization described in section 501(c)(12),
            ``(3) an organization described in section 1381(a)(2)(C), 
        or
            ``(4) a State, the District of Columbia, any territory or 
        possession of the United States, and any political subdivision 
        thereof.
    ``(d) Credit May Be Assigned.--If a qualified entity or an entity 
described in subsection (c) elects the application of this subsection 
with respect to any qualified hydroelectric facility for a taxable 
year, then the amount of the credit determined under this section with 
respect to that facility shall be allowed to any person designated by 
the entity and not to the entity.
    ``(e) Termination.--This section shall not apply to taxable years 
beginning after December 31, 2011.''.
    (b) Inclusion of Indian Tribal Governments.--Section 7871(a)(7) of 
the Internal Revenue Code of 1986 is amended by striking ``and'' at the 
end of subparagraph (A), by striking the period at the end of 
subparagraph (B), and by adding at the end the following:
                    ``(C) section 45E (relating to incremental 
                hydropower credit).''.
    (c) Limitation on Carryback.--Section 39(d) of the Internal Revenue 
Code of 1986 (relating to transition rules) is amended by adding at the 
end the following new paragraph:
            ``(10) No carryback of incremental hydropower credit before 
        effective date.--No portion of the unused business credit for 
        any taxable year which is attributable to the incremental 
        hydropower credit determined under section 45E may be carried 
        to a taxable year ending before the date of the enactment of 
        section 45E.''.
    (d) Conforming Amendment.--Section 38(b) of the Internal Revenue 
Code of 1986 (relating to general business credit) is amended by 
striking ``plus'' at the end of paragraph (12), by striking the period 
at the end of paragraph (13) and inserting ``, plus'', and by adding at 
the end the following new paragraph:
            ``(14) the incremental hydropower credit determined under 
        section 45E.''.
    (e) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 45D the 
following new item:

                              ``Sec. 45E. Incremental hydropower 
                                        credit.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2001.
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