Sets forth qualifying dates of service for facilities using such means to produce electricity.
Expands the investment tax credit to include equipment used to produce electricity from certain renewable resources.
Increases, from 10 to 20 percent, the "energy percentage" used to determine the energy credit in the case of energy property having a total installed electrical generating capacity of less than one megawatt that is placed in service before January 1, 2007.
[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4668 Introduced in House (IH)]
107th CONGRESS
2d Session
H. R. 4668
To amend the Internal Revenue Code of 1986 to expand the renewable
resources production tax credit to include additional forms of
renewable energy, and to expand the investment tax credit to include
equipment used to produce electricity from renewable resources.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 7, 2002
Mr. Hunter (for himself and Mr. Udall of Colorado) 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 expand the renewable
resources production tax credit to include additional forms of
renewable energy, and to expand the investment tax credit to include
equipment used to produce electricity from renewable resources.
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 Fuel Equity Act''.
SEC. 2. EXPANSION OF RENEWABLE RESOURCES CREDIT.
(a) In General.--Section 45(c)(1) of the Internal Revenue Code of
1986 (relating to qualified energy resources) is amended by striking
``and'' at the end of subparagraph (B), by striking the period at the
end of the subparagraph (C) and inserting a comma, and by adding at the
end the following new subparagraphs:
``(D) geothermal energy,
``(E) solar energy,
``(F) incremental hydropower, and
``(G) biomass (other than closed-loop biomass).''
(b) Extension and Modification of Placed-in-Service Rules With
Respect to Biomass Facilities.--
(1) In general.--Paragraph (3) of section 45(c) of the
Internal Revenue Code of 1986 (defining qualified facility) is
amended--
(A) by striking subparagraph (B) and inserting the
following new subparagraph:
``(B) Closed-loop biomass facility.--In the case of
a facility using closed-loop biomass to produce
electricity, the term `qualified facility' means any
facility--
``(i) owned by the taxpayer which is
originally placed in service after December 31,
1992, and before January 1, 2007, or
``(ii) owned by the taxpayer which is
originally placed in service on or before
December 31, 1992, and modified to use closed-
loop biomass to co-fire with coal before
January 1, 2007.'',
(B) by striking ``2004'' in subparagraph (C) and
inserting ``2007'', and
(C) by adding at the end the following new
subparagraph:
``(D) Biomass facility.--In the case of a facility
using biomass (other than closed-loop biomass) to
produce electricity, the term `qualified facility'
means any facility owned by the taxpayer which is
originally placed in service before January 1, 2007.''.
(2) Definition.--Subsection (c) of section 45 of such Code
(relating to definitions) is amended by adding at the end the
following new paragraph:
``(5) Biomass.--The term `biomass' means any solid,
nonhazardous, cellulosic waste material which is segregated
from other waste materials and which is derived from--
``(A) any of the following forest-related
resources: mill residues, precommercial thinnings,
slash, and brush, but not including old-growth timber,
``(B) solid wood waste materials, including waste
pallets, crates, dunnage, manufacturing and
construction wood wastes (other than pressure-treated,
chemically-treated, or painted wood wastes), and
landscape or right-of-way tree trimmings, but not
including municipal solid waste (garbage), gas derived
from the biodegradation of solid waste, or paper that
is commonly recycled, or
``(C) agriculture sources, including orchard tree
crops, vineyard, grain, legumes, sugar, and other crop
by-products or residues.''.
(3) Special rules.--Subsection (d) of section 45 of such
Code (relating to definitions and special rules) is amended by
adding at the end the following new paragraph:
``(8) Special rules with respect to biomass.--In the case
of a qualified facility described in subparagraph (B)(ii) or
(D) of subsection (c)(3)--
``(A) the 10-year period referred to in subsection
(a) shall be treated as beginning no earlier than the
date of the enactment of this paragraph,
``(B) subsection (b)(3) shall not apply to any such
facility originally placed in service before January 1,
1997, and
``(C) if such a facility is leased and the operator
thereof is the lessee, such lessee (and not the owner)
shall be treated for purposes of this section as owning
such facility.''
(c) Qualified Facility To Include Geothermal, Solar Energy, and
Incremental Hydropower Facility.--
(1) In general.--Paragraph (3) of section 45(c) of such
Code, as amended by subsection (b), is amended by inserting
after subparagraph (D) the following new subparagraphs:
``(E) Geothermal facility.--In the case of a
facility using geothermal energy to produce
electricity, the term `qualified facility' means--
``(i) any facility owned by the taxpayer
which is originally placed in service after
December 31, 2001, or
``(ii) any facility owned by the taxpayer
which is originally placed in service before
January 1, 2002, but only to the extent of its
incremental geothermal production.
``(F) Solar energy facility.--In the case of a
facility using solar energy to produce electricity, the
term `qualified facility' means--
``(i) any facility owned by the taxpayer
which is originally placed in service after
December 31, 2001, or
``(ii) any facility owned by the taxpayer
which is originally placed in service before
January 1, 2002, and modified on or after such
date with additional generating capacity.
In the case of a facility referred to in clause (ii),
the credit under subsection (a) applies only to the
production from the additional generating capacity.
``(G) Incremental hydropower facility.--In the case
of a facility using incremental hydropower to produce
electricity, the term `qualified facility' means any
facility owned by the taxpayer that achieves additional
generation from--
``(i) increased efficiency, or
``(ii) additions of new capacity,
at a non-Federal hydroelectric project originally
placed in service before the date of enactment of this
subparagraph.''.
(2) Special rule.--Subsection (d) of section 45 of such
Code (relating to definitions and special rules), as amended by
subsection (b)(3), is amended by adding at the end the
following new paragraph:
``(9) Definition and special rule with respect to
incremental geothermal production.--
``(A) In general.--The term `incremental geothermal
production' means for any taxable year the excess of--
``(i) the total kilowatt hours of
electricity produced from a geothermal facility
described in subsection (c)(3)(E)(ii), over
``(ii) the average annual kilowatt hours
produced at such facility for five of the
previous seven calendar years prior to the date
of the enactment of this paragraph after
eliminating the highest and lowest kilowatt
hour production years in such seven-year
period.
``(B) Special rule.--A facility described in
subsection (c)(3)(E)(ii) which was placed in service
seven years or longer prior to the date of the
enactment of this paragraph shall, commencing with the
year of such enactment, reduce the amount calculated
under subparagraph (A)(ii) each year, on a cumulative
basis, by the average decrease in annual kilowatt hour
production for the seven-year period described in
subparagraph (A)(ii) with such cumulative sum not to
exceed 30 percent.''.
(d) Coordination With Other Credits.--Subsection (d) of section 45
of such Code (relating to definitions and special rules), as amended by
subsection (c)(2), is amended by adding at the end the following:
``(10) Coordination with other credits.--This section shall
not apply to any qualified facility with respect to which a
credit under any other section is allowed for the taxable year
unless the taxpayer elects to waive application of such credit
to such facility.''.
(e) Effective Date.--The amendments made by this section shall
apply to electricity sold after December 31, 2001.
SEC. 3. EXPANSION OF INVESTMENT TAX CREDIT TO INCLUDE EQUIPMENT USED TO
PRODUCE ELECTRICITY FROM CERTAIN RENEWABLE RESOURCES.
(a) In General.--Subparagraph (A) of section 48(a)(3) of the
Internal Revenue Code of 1986 (relating to energy credit reforestation
credit) is amended by striking ``or'' at the end of clause (i),
inserting ``or'' at the end of clause (ii), and adding at the end the
following new clause:
``(iii) equipment used to produce
electricity from a qualified facility (as
defined in section 45).''.
(b) Increased Credit for Certain Equipment.--Paragraph (2) of
section 48(a) is amended--
(1) by redesignating subparagraph (B) as subparagraph (C),
(2) in subparagraph (A), by striking ``The'' and inserting
``Except as provided in subparagraph (B), the'', and
(3) by inserting after subparagraph (A) the following new
subparagraph:
``(B) Increased percentage for certain equipment.--
In the case of energy property having a total installed
electrical generating capacity of less than 1 megawatt
and placed in service before January 1, 2007, the
energy percentage is 20 percent.''.
(c) Effective Date.--The amendments made by this section shall
apply to equipment placed in service after December 31, 2001.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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