Landfill Gas Act of 2006

Landfill Gas Act of 2006 - Amends the Internal Revenue Code to allow a business-related tax credit for the production of natural gas at a high Btu fuel facility (a facility that produces high Btu biomass fuel).

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5027 Introduced in House (IH)]







109th CONGRESS
  2d Session
                                H. R. 5027

To amend the Internal Revenue Code of 1986 to provide a credit against 
  tax proportional to the number of million British thermal units of 
           natural gas produced by a high Btu fuel facility.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 28, 2006

  Mr. Jindal 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 provide a credit against 
  tax proportional to the number of million British thermal units of 
           natural gas produced by a high Btu fuel facility.

    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 ``Landfill Gas Act of 2006''.

SEC. 2. CREDIT FOR PRODUCTION OF NATURAL GAS.

    (a) Allowance of Credit.--Subpart D of part IV of subchapter A of 
chapter 1 of the Internal Revenue Code of 1986 (relating to business 
related credits) is amended by inserting after section 45M the 
following new section:

``SEC. 45N. CREDIT FOR PRODUCTION OF NATURAL GAS.

    ``(a) In General.--For purposes of section 38, in the case of a 
taxpayer, the amount of the natural gas production credit determined 
under this section for a taxable year is equal to the product of--
            ``(1) $2, multiplied by
            ``(2) the million British thermal units of natural gas 
        produced by the taxpayer at a high Btu fuel facility during the 
        taxable year.
    ``(b) Reduction in Credit Amount as Natural Gas Prices Increase.--
For purposes of this section, on the first day of the production month 
following the date on which the spot price of natural gas delivered at 
Henry Hub, Louisiana, on average, exceeds $6 per million British 
thermal units for 30 consecutive trading days, the $2 amount under 
subsection (a) shall be reduced (but not below zero) by an amount which 
is equal to the amount by which such spot price exceeds $6 per million 
British thermal units.
    ``(c) High Btu Fuel Facility.--For purposes of this section--
            ``(1) In general.--The term `high Btu fuel facility' means 
        a facility that produces high Btu biomass fuel.
            ``(2) High btu biomass fuel.--The term `high Btu biomass 
        fuel' means fuel produced from biomass (as defined in section 
        45K(c)(3)) that--
                    ``(A) contains no more than 7 pounds of water per 
                million standard cubic feet,
                    ``(B) contains not less than 95 percent methane per 
                volume, and
                    ``(C) has a Btu content of at least 950 per square 
                cubic feet.
    ``(d) Other Rules to Apply.--Rules similar to the rules of 
paragraphs (1), (3), (4), and (5) of section 45(e) shall apply for 
purposes of this section.''.
    (b) Credit to Be Part of General Business Credit.--Subsection (b) 
of section 38 of such Code (relating to general business credit) is 
amended by striking ``and'' at the end of paragraph (29), by striking 
the period at the end of paragraph (30) and inserting ``, and'', and by 
adding at the end the following new paragraph:
            ``(31) the natural gas production credit determined under 
        section 45N(a).''.
    (c) Conforming Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 45M the following new 
item:

``Sec. 45N. Credit for production of natural gas.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to the production of natural gas in taxable years beginning after 
December 31, 2006.
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