To amend the Internal Revenue Code of 1986 to allow the $25,000 offset for individuals under the passive loss rules to apply to investments in wind energy facilities.

Amends the Internal Revenue Code to exempt investors in wind energy facilities from the income-based phaseout of the $25,000 offset for individuals under rules limiting passive activity losses and credits.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2007 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 2007

To amend the Internal Revenue Code of 1986 to allow the $25,000 offset 
for individuals under the passive loss rules to apply to investments in 
                        wind energy facilities.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 28, 2005

 Mr. Peterson of Minnesota (for himself and Mr. Gutknecht) 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 the $25,000 offset 
for individuals under the passive loss rules to apply to investments in 
                        wind energy facilities.

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

SECTION 1. APPLICATION OF $25,000 OFFSET IN PASSIVE LOSS RULES TO 
              INVESTMENTS IN WIND ENERGY FACILITIES.

    (a) Phaseout not to Apply.--
            (1) In general.--Paragraph (3) of section 469(i) of the 
        Internal Revenue Code of 1986 (relating to $25,000 offset for 
        rental real estate activities) is amended by redesignating 
        subparagraphs (E) and (F) as subparagraphs (F) and (G), 
        respectively, and by inserting after subparagraph (D) the 
        following new subparagraph:
                    ``(E) Exception for wind energy credit.--
                Subparagraph (A) shall not apply to any portion of the 
                passive activity credit for any taxable year which is 
                attributable to any credit determined under section 45 
                with respect to a facility using wind to produce 
                electricity.''.
            (2) Conforming amendment.--Subparagraph (F) of section 
        469(i)(3) of such Code, as redesignated by paragraph (1), is 
        amended--
                    (A) by striking ``or (D)'' and inserting ``(D), or 
                (E)'' in the material preceding clause (i),
                    (B) by striking ``or (D)'' in clause (iii) and 
                inserting ``, (D), or (E)'',
                    (C) by striking ``and'' at the end of clause (iv), 
                and
                    (D) by striking clause (v) and inserting the 
                following new clauses:
                            ``(v) fifth to the portion of such credit 
                        to which subparagraph (D) applies, and
                            ``(vi) then to the portion of such credit 
                        to which subparagraph (E) applies.''.
    (b) Active Participation Requirement not to Apply.--Subparagraph 
(B) of section 469(i)(6) of such Code is amended by striking ``or'' at 
the end of clause (ii), by striking the period at the end of clause 
(iii) and inserting ``, or'', and by adding at the end the following 
new clause:
                            ``(iv) any credit to which paragraph (3)(E) 
                        applies.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.
                                 <all>