Climate Change Technology Tax Incentives Act of 2005 - Amends the Internal Revenue Code to allow tax credits for: (1) investment in a greenhouse gas intensity reduction project; (2) production from advanced nuclear power facilities; and (3) investment in nuclear power facilities.
Authorizes the issuance of tax-exempt facility bonds for nuclear power facilities.
Expresses the sense of the Senate that: (1) the tax credit for electricity produced from certain renewable resources should be extended through 2010; and (2) the tax credit for increasing research activities should be increased and made permanent.
Terminates the tax credits proposed by this Act after 2010.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1203 Introduced in Senate (IS)]
109th CONGRESS
1st Session
S. 1203
To amend the Internal Revenue Code of 1986 to provide tax incentives
for the investment in greenhouse gas intensity reduction projects, and
for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 8, 2005
Mr. Hagel (for himself, Mr. Pryor, Mr. Alexander, Mr. Craig, Mrs. Dole,
and Ms. Murkowski) 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 provide tax incentives
for the investment in greenhouse gas intensity reduction projects, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; AMENDMENT OF CODE.
(a) Short Title.--This title may be cited as the ``Climate Change
Technology Tax Incentives Act of 2005''.
(b) Amendment of Code.--Except as otherwise expressly provided,
whenever in this title an amendment or repeal is expressed in terms of
an amendment to, or repeal of, a section or other provision, the
reference shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.
TITLE I--GREENHOUSE GAS INTENSITY REDUCTION TAX INCENTIVES
SEC. 101. GREENHOUSE GAS INTENSITY REDUCTION INVESTMENT TAX CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
(relating to business-related credits) is amended by adding at the end
the following new section:
``SEC. 45J. GREENHOUSE GAS INTENSITY REDUCTION INVESTMENT CREDIT.
``(a) Allowance of Credit.--
``(1) In general.--For purposes of section 38, in the case
of a taxpayer's investment in a greenhouse gas intensity
reduction project approved by the accreditation panel, the
greenhouse gas intensity reduction investment credit determined
under this section for the taxable year is an amount equal to--
``(A) percentage reduction in greenhouse gas
intensity certified for such project for such year by
the accreditation panel, multiplied by
``(B) the investment in such project during such
year which is attributable, directly or indirectly, to
the taxpayer, as determined by the accreditation panel.
``(2) Aggregate dollar limitation.--The credit determined
under paragraph (1) for any taxable year, when added to any
credit allowed to the taxpayer with respect to the such project
in any preceding taxable year, shall not exceed 50 percent of
the investment attributable to the taxpayer with respect to
such project through such taxable year.
``(b) Limitation on Aggregate Credit Allowable.--
``(1) In general.--The amount of the greenhouse gas
intensity reduction investment credit determined under
subsection (a) for any project, when added to all such credits
allowed to all taxpayers with respect to the such project shall
not exceed the credit dollar amount allocated to such project
under this subsection by the accreditation panel from the
greenhouse gas intensity reduction investment credit limitation
for the calendar year in which such allocation is made.
``(2) Time for making allocation.--An allocation shall be
taken into account under paragraph (1) only if it is made not
later than the close of the calendar year in which the
greenhouse gas intensity reduction project proposal with
respect to such project is approved by the accreditation panel.
``(3) Overall limitation on aggregate credit allowable.--
The accreditation panel may allocate the aggregate credit
dollar amount to any such project for a period not to exceed a
10-year period beginning with the calendar year described in
paragraph (2).
``(c) Limitation on Amount of Credits Allocated.--
``(1) In general.--There is a greenhouse gas intensity
reduction investment credit limitation amount for each calendar
year. Such limitation amount is--
``(A) $400,000,000 for 2006,
``(B) $300,000,000 for 2007,
``(C) $300,000,000 for 2008,
``(D) $300,000,000 for 2009,
``(E) $300,000,000 for 2010, and
``(F) except as provided in paragraph (2), zero
thereafter.
``(2) Carryover of unused issuance limitation.--If for any
calendar year the limitation amount imposed by paragraph (1)
exceeds the amount of greenhouse gas intensity reduction
investment credits allocated during such year, such excess
shall be carried forward to the succeeding calendar year as an
addition to the limitation imposed by paragraph (1).
``(d) Greenhouse Gas Intensity Reduction Project; Greenhouse Gas
Intensity; Accreditation Panel.--For purposes of this section--
``(1) Greenhouse gas intensity reduction project.--The term
`greenhouse gas intensity reduction project' means any project
approved under this section by the accreditation panel. Such
approval shall be based on the following criteria:
``(A) The extent of the reduction in greenhouse gas
intensity proposed for the project.
``(B) Improvements in system efficiency.
``(C) In the case of projects located outside the
United States, the extent of technology transfer.
``(D) The existence and nature of agreements for
sharing project benefits and liability between the
taxpayer and any host government.
``(2) Greenhouse gas intensity.--The greenhouse gas
intensity for any period is equal to the volume of emissions
divided by the economic output associated with a project as
compared to a greenhouse gas intensity baseline established
after the date of the enactment of this section. The comparison
to such baseline may be made by geographic regions, industry
segments, or on a taxpayer basis.
``(3) Accreditation panel.--The term `accreditation panel'
means a panel jointly certified by the Secretary and the
Secretary of Commerce.
``(e) Recapture of Credit in Certain Cases.--
``(1) In general.--If, at any time during the 20-year
period of a greenhouse gas intensity reduction project, there
is a recapture event with respect to such project, then the tax
imposed by this chapter for the taxable year in which such
event occurs shall be increased by the credit recapture amount.
``(2) Credit recapture amount.--For purposes of paragraph
(1)--
``(A) In general.--The credit recapture amount is
an amount equal to the recapture percentage of all
greenhouse gas intensity reduction investment credits
previously allowable to a taxpayer with respect to any
investment in such project that is attributable to such
taxpayer.
``(B) Recapture percentage.--The recapture
percentage shall be 100 percent if the recapture event
occurs during the first 5 years of the project, 75
percent if the recapture event occurs during the second
5 years of the project, 50 percent if the recapture
event occurs during the third 5 years of the project,
25 percent if the recapture event occurs during the
fourth 5 years of the project, and 0 percent if the
recapture event occurs at any time after the 20th year
of the project.
``(3) Recapture event.--For purposes of paragraph (1),
there is a recapture event with respect to a greenhouse gas
intensity reduction project if--
``(A) the taxpayer violates a term or condition of
the approval of the project by the accreditation panel
at any time,
``(B) the taxpayer adopts a practice which the
accreditation panel has specified in its approval of
the project as a practice which would tend to defeat
the purposes of the program, or
``(C) the taxpayer disposes of any ownership
interest arising out of its investment that the
accreditation panel has determined is attributable to
the project, unless the accreditation panel determines
that such disposition will not have any adverse effect
on the greenhouse gas intensity reduction project.
If an event which otherwise would be a recapture event is
outside the control of the taxpayer, as determined by the
accreditation panel, such event shall not be treated as a
recapture event with respect to such taxpayer.
``(4) Special rules.--
``(A) Tax benefit rule.--The tax for the taxable
year shall be increased under paragraph (1) only with
respect to credits allowed by reason of this section
which were used to reduce tax liability. In the case of
credits not so used to reduce tax liability, the
carryforwards and carrybacks under section 39 shall be
appropriately adjusted.
``(B) No credits against tax.--Any increase in tax
under this subsection shall not be treated as a tax
imposed by this chapter for purposes of determining the
amount of any credit under this chapter or for purposes
of section 55.
``(f) Disallowance of Double Benefit.--
``(1) Basis reduction.--The basis of any investment in a
greenhouse gas intensity reduction project shall be reduced by
the amount of any credit determined under this section with
respect to such investment.
``(2) Charitable deduction disallowed.--No deduction shall
be allowed to a taxpayer under section 170 with respect to any
contribution which the accreditation panel certifies to the
Secretary constitutes an investment in a greenhouse gas
intensity reduction project that is attributable to such
taxpayer.
``(g) Certification to Secretary.--The accreditation panel shall
certify to the Secretary before January 31 of each year with respect to
each taxpayer which has made an investment in a greenhouse gas
intensity reduction project--
``(1) the amount of the greenhouse gas intensity reduction
investment credit allowable to such taxpayer for the preceding
calendar year,
``(2) whether a recapture event occurred with respect to
such taxpayer during the preceding calendar year, and
``(3) the credit recapture amount, if any, with respect to
such taxpayer for the preceding calendar year.
``(h) Regulations.--The Secretary shall prescribe such regulations
as may be appropriate to carry out this section, including
regulations--
``(1) which limit the credit for investments which are
directly or indirectly subsidized by other Federal benefits,
``(2) which prevent the abuse of the provisions of this
section through the use of related parties, and
``(3) which impose appropriate reporting requirements.''.
(b) Credit Made Part of General Business Credit.--Subsection (b) of
section 38 is amended by striking ``plus'' at the end of paragraph
(18), by striking the period at the end of paragraph (19) and inserting
``, plus'', and by adding at the end the following new paragraph:
``(20) the greenhouse gas intensity reduction investment
credit determined under section 45J(a).''.
(c) Deduction for Unused Credit.--Subsection (c) of section 196 is
amended by striking ``and'' at the end of paragraph (11), by striking
the period at the end of paragraph (12) and inserting ``, and'', and by
adding at the end the following new paragraph:
``(13) the greenhouse gas intensity reduction investment
credit determined under section 45J(a).''.
(d) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 is amended by adding at the end
the following new item:
``Sec. 45J. Greenhouse gas intensity reduction investment credit.''.
(e) Effective Date.--The amendments made by this section shall
apply to investments made after December 31, 2005.
TITLE II--ENERGY EFFICIENCY PROVISIONS
Subtitle A--Renewable Energy
SEC. 201. SENSE OF THE SENATE REGARDING EXTENSION OF RENEWABLE ENERGY
CREDIT.
It is the sense of the Senate that the income tax credit for
electricity produced from certain renewable resources under section 45
of the Internal Revenue Code of 1986 should be extended through 2010.
Subtitle B--Nuclear Power
SEC. 211. CREDIT FOR PRODUCTION FROM ADVANCED NUCLEAR POWER FACILITIES.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
(relating to business related credits), as amended by this Act, is
amended by adding at the end the following new section:
``SEC. 45K. CREDIT FOR PRODUCTION FROM ADVANCED NUCLEAR POWER
FACILITIES.
``(a) General Rule.--For purposes of section 38, the advanced
nuclear power facility production credit of any taxpayer for any
taxable year is equal to the product of--
``(1) 0.6 cent, multiplied by
``(2) the kilowatt hours of electricity--
``(A) produced by the taxpayer at an advanced
nuclear power facility during the 10-year period
beginning on the date the facility was originally
placed in service, and
``(B) sold by the taxpayer to an unrelated person
during the taxable year.
``(b) National Limitation.--
``(1) In general.--The amount of credit which would (but
for this subsection and subsection (c)) be allowed with respect
to any facility for any taxable year shall not exceed the
amount which bears the same ratio to such amount of credit as--
``(A) the national megawatt capacity limitation
allocated to the facility, bears to
``(B) the total megawatt nameplate capacity of such
facility.
``(2) Amount of national limitation.--The national megawatt
capacity limitation shall be 8,000 megawatts.
``(3) Allocation of limitation.--The Secretary shall
allocate the national megawatt capacity limitation in such
manner as the Secretary may prescribe.
``(4) Regulations.--Not later than 6 months after the date
of the enactment of this section, the Secretary shall prescribe
such regulations as may be necessary or appropriate to carry
out the purposes of this subsection. Such regulations shall
provide a certification process under which the Secretary,
after consultation with the Secretary of Energy, shall approve
and allocate the national megawatt capacity limitation.
``(c) Other Limitations.--
``(1) Annual limitation.--The amount of the credit
allowable under subsection (a) (after the application of
subsection (b)) for any taxable year with respect to any
facility shall not exceed an amount which bears the same ratio
to $125,000,000 as--
``(A) the national megawatt capacity limitation
allocated under subsection (b) to the facility, bears
to
``(B) 1000.
``(2) Other limitations.--Rules similar to the rules of
section 45(b) shall apply for purposes of this section, except
that paragraph (2) thereof shall not apply to the 0.6 cent
under subsection (a)(1).
``(d) Advanced Nuclear Power Facility.--For purposes of this
section, the term `advanced nuclear power facility' means any advanced
nuclear facility--
``(1) which is owned by the taxpayer and which uses nuclear
energy to produce electricity, and
``(2) which is originally placed in service after the date
of the enactment of this paragraph and before January 1, 2010.
``(e) Other Rules to Apply.--Rules similar to the rules of
paragraphs (1), (2), (3), (4), and (5) of section 45(e) shall apply for
purposes of this section.''
(b) Credit Treated as Business Credit.--Section 38(b), as amended
by this Act, is amended by striking ``plus'' at the end of paragraph
(19), by striking the period at the end of paragraph (20) and inserting
``, plus'', and by adding at the end the following new paragraph:
``(21) the advanced nuclear power facility production
credit determined under section 45K(a).''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1, as amended by this Act, is
amended by adding at the end the following new item:
``Sec. 45K. Credit for production from advanced nuclear power
facilities.''.
(d) Effective Date.--The amendments made by this section shall
apply to production in taxable years ending after the date of the
enactment of this Act.
SEC. 212. INVESTMENT TAX CREDIT FOR INVESTMENTS IN NUCLEAR POWER
FACILITIES.
(a) New Credit for Nuclear Power Facilities.--Section 46 is amended
by--
(1) striking ``and'' at the end of paragraph (1),
(2) striking the period at the end of paragraph (2) and
inserting ``, and'', and
(3) inserting after paragraph (2) the following new
paragraph:
``(3) the nuclear power facility construction credit.''.
(b) Nuclear Power Facility Construction Credit.--Subpart E of part
IV of subchapter A of chapter 1 is amended by inserting after section
48 the following new section:
``SEC. 48A. NUCLEAR POWER FACILITY CONSTRUCTION CREDIT.
``(a) In General.--For purposes of section 46, the nuclear power
facility construction credit for any taxable year is 10 percent of so
much of the qualified nuclear power facility expenditures paid or
incurred by the taxpayer with respect to a qualified nuclear power
facility.
``(b) When Expenditures Taken Into Account.--
``(1) In general.--Qualified nuclear power facility
expenditures shall be taken into account for the taxable year
in which the qualified nuclear power facility is placed in
service.
``(2) Coordination with subsection (c).--The amount which
would (but for this paragraph) be taken into account under
paragraph (1) with respect to any qualified nuclear power
facility shall be reduced (but not below zero) by any amount of
qualified nuclear power facility expenditures taken into
account under subsection (c) by the taxpayer or a predecessor
of the taxpayer (or, in the case of a sale and leaseback
described in section 50(a)(2)(C), by the lessee), to the extent
any amount so taken into account has not been required to be
recaptured under section 50(a).
``(c) Progress Expenditures.--
``(1) In general.--A taxpayer may elect to take into
account qualified nuclear power facility expenditures.
``(A) Self-constructed property.--In the case of a
qualified nuclear power facility which is a self-
constructed facility, in the taxable year for which
such expenditures are properly chargeable to capital
account with respect to such facility.
``(B) Acquired facility.--In the case of a
qualified nuclear facility which is not self-
constructed property, in the taxable year in which such
expenditures are paid.
``(2) Special rules for applying paragraph (1).--For
purposes of paragraph (1)--
``(A) Component parts, etc.--Property which is not
self-constructed property and which is to be a
component part of, or is otherwise to be included in,
any facility to which this subsection applies shall be
taken into account in accordance with paragraph (1)(B).
``(B) Certain borrowing disregarded.--Any amount
borrowed directly or indirectly by the taxpayer on a
nonrecourse basis from the person constructing the
facility for the taxpayer shall not be treated as an
amount expended for such facility.
``(C) Limitation for facilities or components which
are not self-constructed.--
``(i) In general.--In the case of a
facility or a component of a facility which is
not self-constructed, the amount taken into
account under paragraph (1)(B) for any taxable
year shall not exceed the amount which
represents the portion of the overall cost to
the taxpayer of the facility or component of a
facility which is properly attributable to the
portion of the facility or component which is
completed during such taxable year.
``(ii) Carry-over of certain amounts.--In
the case of a facility or component of a
facility which is not self-constructed, if for
the taxable year--
``(I) the amount which (but for
clause (i)) would have been taken into
account under paragraph (1)(B) exceeds
the limitation of clause (i), then the
amount of such excess shall be taken
into account under paragraph (1)(B) for
the succeeding taxable year, or
``(II) the limitation of clause (i)
exceeds the amount taken into account
under paragraph (1)(B), then the amount
of such excess shall increase the
limitation of clause (i) for the
succeeding taxable year.
``(D) Determination of percentage of completion.--
The determination under subparagraph (C)(i) of the
portion of the overall cost to the taxpayer of the
construction which is properly attributable to
construction completed during any taxable year shall be
made on the basis of engineering or architectural
estimates or on the basis of cost accounting records.
Unless the taxpayer establishes otherwise by clear and
convincing evidence, the construction shall be deemed
to be completed not more rapidly than ratably over the
normal construction period.
``(E) No progress expenditures for certain prior
periods.--No qualified nuclear facility expenditures
shall be taken into account under this subsection for
any period before the first day of the first taxable
year to which an election under this subsection
applies.
``(F) No progress expenditures for property for
year it is placed in service, etc.--In the case of any
qualified nuclear facility, no qualified nuclear
facility expenditures shall be taken into account under
this subsection for the earlier of--
``(i) the taxable year in which the
facility is placed in service, or
``(ii) the first taxable year for which
recapture is required under section 50(a)(2)
with respect to such facility, or for any
taxable year thereafter.
``(3) Self-constructed.--For purposes of this subsection--
``(A) the term `self-constructed facility' means
any facility if it is reasonable to believe that more
than half of the qualified nuclear facility
expenditures for such facility will be made directly by
the taxpayer, and
``(B) a component of a facility shall be treated as
not self-constructed if the cost of the component is at
least 5 percent of the expected cost of the facility
and the component is acquired by the taxpayer.
``(4) Election.--An election shall be made under this
section for a qualified nuclear power facility by claiming the
nuclear power facility construction credit for expenditures
described in paragraph (1) on a tax return filed by the due
date for such return (taking into account extensions). Such an
election shall apply to the taxable year for which made and all
subsequent taxable years. Such an election, once made, may be
revoked only with the consent of the Secretary.
``(d) Definitions and Special Rules.--For purposes of this
section--
``(1) Qualified nuclear power facility.--The term
`qualified nuclear power facility' means a nuclear power
facility, as defined in section 168(e)(8), the construction of
which was approved by the Nuclear Regulatory Commission on or
before December 31, 2014, and begun on or before December 31,
2020.
``(2) Qualified nuclear power facility expenditures.--
``(A) In general.--The term `qualified nuclear
power facility expenditures' means any amount properly
chargeable to capital account--
``(i) with respect to a qualified nuclear
power facility,
``(ii) for which depreciation is allowable
under section 168, and
``(iii) which are incurred before the
qualified nuclear power facility is placed in
service or in connection with the placement of
such facility in service.
``(B) Limitation per facility.--The amount of
qualified nuclear power facility expenditures which may
be taken into account under subsection (a) with respect
to any qualified nuclear power facility shall not
exceed $10,000,000.
``(C) Pre-effective date expenditures.--Qualified
nuclear power facility expenditures do not include any
expenditures incurred by the taxpayer before January 1,
2008, unless such expenditures constitute less than 20
percent of the total qualified nuclear power facility
expenditures (determined without regard to this
subparagraph) for the qualified nuclear power facility.
``(3) Delays and suspension of construction.--
``(A) In general.--For purposes of applying this
section and section 50, a nuclear power facility that
is under construction shall cease to be treated as a
facility that will be a qualified nuclear power
facility as of the earlier of--
``(i) the date on which the taxpayer
decides to terminate construction of the
facility, or
``(ii) the last day of any 24 month period
in which the taxpayer has failed to incur
qualified nuclear power facility expenditures
totaling at least 20 percent of the expected
total cost of the nuclear power facility.
``(B) Authority to waive.--The Secretary may waive
the application of clause (ii) of subparagraph (A) if
the Secretary determines that the taxpayer intended to
continue the construction of the qualified nuclear
power facility and the expenditures were not incurred
for reasons outside the control of the taxpayer.
``(C) Resumption of construction.--If a nuclear
power facility that is under construction ceases to be
a qualified nuclear power facility by reason of
paragraph (2) and work is subsequently resumed on the
construction of such facility--
``(i) the date work is subsequently resumed
shall be treated as the date that construction
began for purposes of paragraph (1), and
``(ii) if the facility is a qualified
nuclear power facility, the qualified nuclear
power facility expenditures shall be determined
without regard to any delay or temporary
termination of construction of the facility.''.
(c) Provisions Relating to Credit Recapture.--
(1) Progress expenditure recapture rules.--
(A) Basic rules.--Subparagraph (A) of section
50(a)(2) is amended to read as follows:
``(A) In general.--If during any taxable year any
building to which section 47(d) applied or any facility
to which section 48A(c) applied ceases (by reason of
sale or other disposition, cancellation or abandonment
of contract, or otherwise) to be, with respect to the
taxpayer, property which, when placed in service, will
be a qualified rehabilitated building or a qualified
nuclear power facility, then the tax under this chapter
for such taxable year shall be increased by an amount
equal to the aggregate decrease in the credits allowed
under section 38 for all prior taxable years which
would have resulted solely from reducing to zero the
credit determined under this subpart with respect to
such building or facility.''.
(B) Amendment to excess credit recapture rule.--
Subparagraph (B) of section 50(a)(2) is amended--
(i) by inserting ``or paragraph (2) of
section 48A(b)'' after ``paragraph (2) of
section 47(b)'',
(ii) by inserting ``or section 48A(b)(1)''
after ``section 47(b)(1)'', and
(iii) by inserting ``or facility'' after
``building''.
(C) Amendment of sale and leaseback rule.--
Subparagraph (C) of section 50(a)(2) is amended--
(i) by inserting ``or section 48A(c)''
after ``section 47(d)'', and
(ii) by inserting ``or qualified nuclear
power facility expenditures'' after ``qualified
rehabilitation expenditures''.
(D) Conforming amendment.--Subparagraph (D) of
section 50(a)(2) is amended by inserting ``or section
48A(c)'' after ``section 47(d)''.
(d) No Basis Adjustment.--Section 50(c) is amended by inserting at
the end the following new paragraph:
``(6) Nuclear power facility construction credit.--
Paragraphs (1) and (2) shall not apply to the nuclear power
facility construction credit.''.
(e) Technical Amendments.--The table of sections for subpart E of
part IV of subchapter A of chapter 1 is amended by inserting after the
item for section 48 the following new item:
``Sec. 48A. Nuclear power facility construction credit.''.
(f) Effective Date.--The amendments made by this section of this
Act shall apply to expenditures incurred in taxable years beginning
after December 31, 2007.
SEC. 213. TAX-EXEMPT FINANCING OF NUCLEAR POWER FACILITIES.
(a) In General.--Subsection (a) of section 142 is amended--
(1) by striking ``or'' at the end of paragraph (13),
(2) by striking the period at the end of paragraph (14) and
inserting ``, or'', and
(3) by inserting at the end the following new paragraph:
``(15) nuclear power facility.''.
(b) Definition.--Section 142 is amended by inserting at the end the
following new subsection:
``(m) Nuclear Power Facility.--For purposes of subsection (a)(15),
the term `nuclear power facility' means a nuclear power facility
(within the meaning of section 168(e)(8)) and any nuclear fuel
assemblies (within the meaning of section 168(e)(8)(B)) initially
included in any such facility.''.
(c) Exemption From Volume Cap.--Paragraph (3) of section 146(g)
(exempting certain exempt facility bonds from the state volume caps) is
amended--
(1) by striking ``or (14)'' and inserting ``(14), or
(15)'', and
(2) by striking ``and qualified green building and
sustainable design projects'' and inserting ``qualified green
building and sustainable design projects and nuclear power
facilities''.
(d) Exemption From Alternative Depreciation.--Paragraph (5) of
section 168(g) is amended by inserting at the end the following new
subparagraph:
``(D) Nuclear power facility.--The term `tax-exempt
bond financed property' does not include any nuclear
power facility that is financed with bonds described in
section 142(a)(15).''.
(e) Effective Date.--The amendments made by this section of this
Act shall apply with respect to bonds issued on or after January 1,
2006, and before January 1, 2011.
TITLE III--RESEARCH CREDITS
SEC. 301. SENSE OF THE SENATE REGARDING PERMANENT EXTENSION OF RESEARCH
CREDIT.
It is the sense of the Senate that the income tax credit for
increasing research activities under section 41 of the Internal Revenue
Code of 1986 should be permanently extended, the rates of the
alternative incremental credit under such section should be increased,
and an alternative simplified credit for qualified research expenses
should be instituted.
TITLE IV--SUNSET
SEC. 401. SUNSET.
(a) In General.--All provisions of, and amendments made by, this
Act shall not apply to taxable years beginning after December 31, 2010.
(b) Application of Certain Laws.--The Internal Revenue Code of 1986
shall be applied and administered to taxable years beginning after
December 31, 2010, as if the provisions and amendments described in
subsection (a) had never been enacted.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
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