Clean Energy Business Zone Act of 2009 and the Clean Energy Empowerment Zone Act of 2009 - Amends the Internal Revenue Code to: (1) authorize the Secretary of the Treasury to designate 40 clean energy business zones between 2009 and 2012; (2) allow an increased tax credit for wages paid in such a zone; (3) allow a work opportunity tax credit for wages paid to an employee in such a zone; (4) allow financing of any qualified Green building or clean energy facility with clean renewable energy bonds; (5) allow increased expensing of property in such a zone; and (6) allow an exclusion from gross income of gain from the sale or exchange or any clean energy business zone asset held for more than five years.
Amends the Small Business Act and the Small Business Investment Act of 1958 to waive loan fees for qualified Green building and clean energy facility loans made before 2020.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3919 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 3919
To amend the Internal Revenue Code of 1986 to provide for the
designation of Clean Energy Business Zones and for tax incentives for
the construction of, and employment at, energy-efficient buildings and
clean energy facilities, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 23, 2009
Mr. Maffei (for himself, Mr. McMahon, Mr. Bartlett, and Mr. Thompson of
California) introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committee on Small
Business, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide for the
designation of Clean Energy Business Zones and for tax incentives for
the construction of, and employment at, energy-efficient buildings and
clean energy facilities, 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.
This Act may be cited as the ``Clean Energy Business Zone Act of
2009'' and as the ``Clean Energy Empowerment Zone Act of 2009''.
SEC. 2. DESIGNATION OF CLEAN ENERGY BUSINESS ZONES AND TAX INCENTIVES
WITH RESPECT TO SUCH ZONES.
(a) In General.--Chapter 1 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new subchapter:
``Subchapter Z--Clean Energy Business Zones
``Part I. Designation.
``Part II. Tax Benefits.
``PART I--DESIGNATION
``Sec. 1400V-1. Designation of Clean Energy Business Zones.
``SEC. 1400V-1. DESIGNATION OF CLEAN ENERGY BUSINESS ZONES.
``(a) In General.--The Secretary may designate 40 clean energy
business zones.
``(b) Consultation.--In designating such zones, the Secretary shall
consult with--
``(1) the Secretary of Housing and Urban Development in the
case of urban areas, and
``(2) the Secretary of Agriculture in the case of rural
areas.
``(c) Designation Criteria.--In designating such zones, the
Secretary shall consider the following factors:
``(1) Whether the area already has a clean energy
infrastructure or otherwise has a deteriorating conventional
energy infrastructure.
``(2) Whether the area is reliant on carbon-intensive
industries and, consequently, job loss is anticipated due to
the transition to a clean energy economy.
``(3) Whether the area is home to business sectors that
could complement new clean energy industries.
``(4) Whether the area has other environmental or economic
conditions conducive to the establishment of facilities
relating to the manufacture or research of clean energy or
clean energy technologies, including the components used in
such manufacture or research and the production of clean
energy.
``(d) Size.--An area may be designated as a Clean Energy Business
Zone only if it meets the requirements of section 1392(a)(3).
``(e) Period Designations May Be Made.--A designation may be made
under subsection (a) only after 2009 and before 2012.
``(f) Period for Which Designation Is in Effect.--Any designation
under this section shall remain in effect during the period beginning
on the date of the designation and ending on the close of the 10th
calendar year beginning on or after such date of designation.
``PART 1--TAX BENEFITS
``Sec. 1400V-2. Tax benefits for clean energy business zones.
``SEC. 1400V-2. TAX BENEFITS FOR CLEAN ENERGY BUSINESS ZONES.
``(a) Wage Credit.--For purposes of section 1396--
``(1) In general.--Subject to the modifications in
paragraph (2), a Clean Energy Business Zone shall be treated as
an empowerment zone.
``(2) Modifications.--In applying section 1396 with respect
to Clean Energy Business Zones--
``(A) In general.--In the case of qualified wages--
``(i) subsection (b) thereof shall be
applied by substituting `30 percent' for `20
percent', and
``(ii) subsection (c) thereof shall be
applied by substituting `$20,000' for `$15,000'
each place it appears.
``(B) Qualified wages.--For purposes of
subparagraph (A), the term `qualified wages' means
qualified zone wages (as defined in section 1396(c))
for services performed by the employee--
``(i) in the construction of any qualified
Green building, or
``(ii) in any qualified clean energy
facility.
``(C) Coordination with basic credit.--The $15,000
amount in section 1396(c)(2) (without regard to this
subsection) shall be reduced for any calendar year by
the amount of wages paid or incurred during such year
which are taken into account in determining the credit
under this subsection.
``(3) Credit to be refundable.--So much of the credit
allowable by section 1396 solely by reason of this subsection
shall be treated as allowed under subpart C of part IV of
subchapter A of this chapter.
``(b) Expansion of Work Opportunity Credit.--
``(1) In general.--For purposes of section 51, a Clean
Energy Business Zone employee shall be treated as a member of a
targeted group.
``(2) Clean energy business zone business employee.--For
purposes of this subsection--
``(A) In general.--The term `Clean Energy Business
Zone employee' means, with respect to any period, any
employee of a Clean Energy Business Zone business if--
``(i) the principal place of abode of such
employee during such period is within a Clean
Energy Business Zone,
``(ii) substantially all the services
performed during such period by such employee
for such business are performed--
``(I) in the construction of any
qualified Green energy building, or
``(II) in a qualified clean energy
facility, and
``(iii) such employee had been employed in
a carbon-intensive business at any time during
the 1-year period ending on the date that the
individual was first hired by the employer.
``(B) Clean energy business zone business.--The
term `Clean Energy Business Zone business' means any
trade or business--
``(i) which is located in a Clean Energy
Business Zone, and
``(ii) at least 15 percent of the employees
of which are residents of a Clean Energy
Business Zone.
``(C) Special rules for determining amount of
credit.--For purposes of applying subpart F of part IV
of subchapter A of this chapter to wages paid or
incurred to any Clean Energy Business Zone business
employee--
``(i) subsections (c)(4) and (i)(2) of
section 51 shall not apply, and
``(ii) in determining qualified wages, the
following shall apply in lieu of section 51(b):
``(I) Qualified wages.--The term
`qualified wages' means wages paid or
incurred by the employer to individuals
who are Clean Energy Business Zone
business employees of such employer for
work performed during calendar year
2010.
``(II) Only first $12,000 of wages
per calendar year taken into account.--
The amount of the qualified wages which
may be taken into account with respect
to any individual shall not exceed
$12,000 per calendar year.
``(c) Clean Renewable Energy Bonds.--
``(1) In general.--For purposes of section 54(c)(2), the
term `qualified facility' includes--
``(A) any qualified Green building, and
``(B) any qualified clean energy facility.
``(2) Extension.--In the case of bonds which are clean
renewable energy bonds under section 54 solely by reason of
this subsection, section 54(m) shall be applied by substituting
`December 31, 2020' for `December 31, 2009'.
``(d) Increased Expensing Under Section 179.--
``(1) In general.--For purposes of section 179, the dollar
amount in effect under section 179(b)(1) for the taxable year
shall be increased by the lesser of--
``(A) $250,000, or
``(B) the cost of qualified section 179 Clean
Energy Business Zone property placed in service during
the taxable year.
``(2) Qualified section 179 clean energy business zone
property.--For purposes of this subsection--
``(A) In general.--The term `qualified section 179
Clean Energy Business Zone property' means section 179
property (as defined in section 179(d))--
``(i) which is described in section
168(k)(2)(A)(i) or which is nonresidential real
property or residential rental property,
``(ii) substantially all of the use of
which is in--
``(I) a qualified Green building or
a qualified clean energy facility, and
``(II) the active conduct of a
trade or business by the taxpayer in
such Zone,
``(iii) the original use of which in the
Clean Energy Business Zone commences with the
taxpayer on or after the date of the enactment
of this section,
``(iv) which is acquired by the taxpayer by
purchase (as defined in section 179(d)) on or
after such date, but only if no written binding
contract for the acquisition was in effect
before such date, and
``(v) which is placed in service by the
taxpayer during the 2-year period beginning on
such date (during the 3-year period beginning
on such date, in the case of nonresidential
real property and residential rental property).
``(B) Exceptions.--
``(i) Alternative depreciation property.--
Such term shall not include any property
described in section 168(k)(2)(D)(i).
``(ii) Tax-exempt bond-financed property.--
Such term shall not include any property any
portion of which is financed with the proceeds
of any obligation the interest on which is
exempt from tax under section 103.
``(iii) Election out.--If a taxpayer makes
an election under this clause with respect to
any class of property for any taxable year,
this subsection shall not apply to all property
in such class placed in service during such
taxable year.
``(3) Special rules.--For purposes of this subsection,
rules similar to the rules of subparagraph (E) of section
168(k)(2) shall apply, except that such subparagraph shall be
applied--
``(A) without regard to `and before January 1,
2010' in clause (i) thereof, and
``(B) by substituting `qualified Clean Energy
Business Zone property' for `qualified property' in
clause (iv) thereof.
``(4) Allowance against alternative minimum tax.--For
purposes of this subsection, rules similar to the rules of
section 168(k)(2)(G) shall apply.
``(5) Recapture.--For purposes of this subsection, rules
similar to the rules under section 179(d)(10) shall apply with
respect to any qualified section 179 Clean Energy Business Zone
property which ceases to be qualified section 179 Clean Energy
Business Zone property.
``(e) Exclusion of Capital Gain on Stock in Qualified Businesses.--
``(1) In general.--Gross income shall not include qualified
capital gain from the sale or exchange of any Clean Energy
Business Zone asset held for more than 5 years.
``(2) Clean energy business zone asset.--For purposes of
this subsection--
``(A) In general.--The term `Clean Energy Business
Zone asset' means--
``(i) any Clean Energy Business Zone
business stock,
``(ii) any Clean Energy Business Zone
partnership interest, and
``(iii) any Clean Energy Business Zone
business property.
``(B) Clean energy business zone business stock.--
``(i) In general.--The term `Clean Energy
Business Zone business stock' means any stock
in a domestic corporation which is originally
issued after the date of the enactment of this
section if--
``(I) such stock is acquired by the
taxpayer, before January 1, 2013, at
its original issue (directly or through
an underwriter) solely in exchange for
cash,
``(II) as of the time such stock
was issued, such corporation was a
Clean Energy Business Zone business
(or, in the case of a new corporation,
such corporation was being organized
for purposes of being a Clean Energy
Business Zone business), and
``(III) during substantially all of
the taxpayer's holding period for such
stock, such corporation qualified as a
Clean Energy Business Zone business.
``(ii) Redemptions.--A rule similar to the
rule of section 1202(c)(3) shall apply for
purposes of this paragraph.
``(C) Clean energy business zone partnership
interest.--The term `Clean Energy Business Zone
partnership interest' means any capital or profits
interest in a domestic partnership which is originally
issued after the date of the enactment of this section
if--
``(i) such interest is acquired by the
taxpayer, before January 1, 2013, from the
partnership solely in exchange for cash,
``(ii) as of the time such interest was
acquired, such partnership was a Clean Energy
Business Zone business (or, in the case of a
new partnership, such partnership was being
organized for purposes of being a Clean Energy
Business Zone business), and
``(iii) during substantially all of the
taxpayer's holding period for such interest,
such partnership qualified as a Clean Energy
Business Zone business.
A rule similar to the rule of subparagraph (B)(ii)
shall apply for purposes of this subparagraph.
``(D) Clean energy business zone business
property.--
``(i) In general.--The term `Clean Energy
Business Zone business property' means property
which is a qualified Green building if--
``(I) such property was acquired by
the taxpayer by purchase (as defined in
section 179(d)(2) after the date of the
enactment of this section and before
January 1, 2013,
``(II) the original use of such
property in the Clean Energy Business
Zone commences with the taxpayer, and
``(III) during substantially all of
the taxpayer's holding period for such
property, substantially all of the use
of such property was in a Clean Energy
Business Zone business of the taxpayer.
``(ii) Special rule for buildings which are
substantially improved.--
``(I) In general.--The requirements
of subclauses (I) and (II) of clause
(i) shall be treated as met with
respect to--
``(aa) property which is
substantially improved by the
taxpayer before January 1,
2013, and
``(bb) any land on which
such property is located.
``(II) Substantial improvement.--
For purposes of subclause (I), property
shall be treated as substantially
improved by the taxpayer only if,
during any 24-month period beginning
after December 31, 1997, additions to
basis with respect to such property in
the hands of the taxpayer exceed the
greater of $5,000 or an amount equal to
the adjusted basis of such property at
the beginning of such 24-month period
in the hands of the taxpayer.
``(E) Treatment of clean energy business zone
termination.--The termination of the designation of the
Clean Energy Business Zone shall be disregarded for
purposes of determining whether any property is a Clean
Energy Business Zone asset.
``(F) Treatment of subsequent purchasers, etc.--The
term `Clean Energy Business Zone asset' includes any
property which would be a Clean Energy Business Zone
asset but for subparagraph (B)(i)(I), (C)(i), or (D)(i)
(I) or (II) in the hands of the taxpayer if such
property was a Clean Energy Business Zone asset in the
hands of a prior holder.
``(G) 5-year safe harbor.--If any property ceases
to be a Clean Energy Business Zone asset by reason of
subparagraph (B)(i)(III), (C)(iii), or (D)(i)(III)
after the 5-year period beginning on the date the
taxpayer acquired such property, such property shall
continue to be treated as meeting the requirements of
such paragraph; except that the amount of gain to which
paragraph (1) applies on any sale or exchange of such
property shall not exceed the amount which would be
qualified capital gain had such property been sold on
the date of such cessation.
``(3) Clean energy business zone business.--For purposes of
this subsection, the term `Clean Energy Business Zone business'
means any trade or business if--
``(A) all buildings located in any Clean Energy
Business Zone which are owned or occupied by such trade
or business are qualified Green buildings or qualified
clean energy facilities, and
``(B) such business would be an enterprise zone
business (as defined in section 1397C) determined--
``(i) by substituting `80 percent' for `50
percent' in subsections (b)(2) and (c)(1) of
section 1397C,
``(ii) by substituting `15 percent' for `35
percent' in subsections (b)(6) and (c)(5) of
section 1397C, and
``(iii) by treating no area other than the
Clean Energy Business Zone as an empowerment
zone or enterprise community.
``(4) Other definitions and special rules.--
``(A) Qualified capital gain.--Except as otherwise
provided in this paragraph, the term `qualified capital
gain' means any gain recognized on the sale or exchange
of--
``(i) a capital asset, or
``(ii) property used in the trade or
business (as defined in section 1231(b).
``(B) Gain before enactment or after 2012 not
qualified.--The term `qualified capital gain' shall not
include any gain attributable to periods before the
date of the enactment of this section or after December
31, 2012.
``(C) Certain gain not qualified.--The term
`qualified capital gain' shall not include any gain
which would be treated as ordinary income under section
1245 or under section 1250 if section 1250 applied to
all depreciation rather than the additional
depreciation.
``(D) Intangibles and land not integral part of
clean energy business zone business.--The term
`qualified capital gain' shall not include any gain
which is attributable to real property, or an
intangible asset, which is not an integral part of a
Clean Energy Business Zone business.
``(E) Related party transactions.--The term
`qualified capital gain' shall not include any gain
attributable, directly or indirectly, in whole or in
part, to a transaction with a related person. For
purposes of this paragraph, persons are related to each
other if such persons are described in section 267(b)
or 707(b)(1).
``(5) Certain rules to apply.--Rules similar to the rules
of subsections (g), (h), (i)(2), and (j) of section 1202 shall
apply for purposes of this subsection.
``(6) Sales and exchanges of interests in partnerships and
s corporations which are clean energy business zone
businesses.--In the case of the sale or exchange of an interest
in a partnership, or of stock in an S corporation, which was a
Clean Energy Business Zone business during substantially all of
the period the taxpayer held such interest or stock, the amount
of qualified capital gain shall be determined without regard
to--
``(A) any gain which is attributable to real
property, or an intangible asset, which is not an
integral part of a Clean Energy Business Zone business,
and
``(B) any gain attributable to periods before the
date of the enactment of this section or after December
31, 2012.
``(f) Expensing of Portion of Cost of Qualified Clean Energy
Facilities.--
``(1) In general.--A taxpayer may elect to treat the cost
of any qualified clean energy facility property as an expense
which is not chargeable to capital account. Any cost so treated
shall be allowed as a deduction for the taxable year in which
the property is placed in service.
``(2) Maximum amount of deduction.--
``(A) In general.--The deduction under paragraph
(1) for any taxable year shall not exceed $1,000,000.
``(B) Deduction allowed for only 5 years.--A
deduction shall be allowed under this paragraph for any
qualified clean energy facility property only for the
taxable year during which the qualified clean energy
facility is placed in service and for the first 4
taxable years thereafter.
``(3) Qualified clean energy facility property.--For
purposes of this subsection, the term `qualified clean energy
facility property' means any property--
``(A) with respect to which depreciation (or
amortization in lieu of depreciation) is allowable, and
``(B) which is installed on or in any qualified
clean energy facility.
``(4) Basis reduction.--For purposes of this subtitle, if a
deduction is allowed under this subsection with respect to any
qualified clean energy facility property, the basis of such
property shall be reduced by the amount of the deduction so
allowed.
``(5) Termination.--This subsection shall not apply to
property placed in service after December 31, 2012.
``(g) Definitions.--For purposes of this section--
``(1) Qualified green building.--
``(A) In general.--The term `qualified Green
building' means any building which is located in a
Clean Energy Business Zone and which meets the
standards prescribed by the Administrator of the
Environmental Protection Agency under subparagraph (B)
for such building.
``(B) Standards.--The Administrator of the
Environmental Protection Agency shall develop and
implement, in consultation with the Secretary of
Energy, standards for a national energy and
environmental building retrofit policy for single-
family and multifamily residences. The Administrator
shall develop and implement, in consultation with the
Secretary of Energy and the Director of Commercial
High-Performance Green Buildings, standards for a
national energy and environmental building retrofit
policy for nonresidential buildings. The programs to
implement the residential and nonresidential policies
based on the standards developed under this
subparagraph shall together be known as the Retrofit
for Energy and Environmental Performance (REEP)
program.
``(2) Qualified clean energy facility.--The term `qualified
clean energy facility' means any facility which is located in a
Clean Energy Business Zone and which relates to the manufacture
or research of clean energy or clean energy technologies,
including the components used in such manufacture or research
and the production of clean energy.''.
(b) Clerical Amendment.--The table of subchapters for chapter 1 of
such Code is amended by adding at the end the following new item:
``subchapter z. clean energy business zones.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years ending after the date of the enactment of this
Act.
SEC. 3. WAIVER OF SBA LOAN FEES.
(a) Section 7(a) Loans.--Paragraph (18) section 7(a) of the Small
Business Act is amended by adding at the end the following new
subparagraph:
``(C) No fee permitted for clean energy
construction loans.--No fee may be imposed under this
paragraph with respect to any loan made before January
1, 2020, for the construction of any qualified Green
building (as defined in section 1400V-2(g) of the
Internal Revenue Code of 1986) or any qualified clean
energy facility (as defined in such section).''.
(b) Section 504 Loans.--Paragraph (2) of section 503(d) of the
Small Business Investment Act of 1958 is amended by adding at the end
the following new sentence: ``No fee may be imposed under this
paragraph with respect to any loan made before January 1, 2020, for the
construction of any qualified Green building (as defined in section
1400V-2(g) of the Internal Revenue Code of 1986) or any qualified clean
energy facility (as defined in such section).''
<all>
Introduced in House
Introduced in House
Referred to House Ways and Means
Referred to the Committee on Ways and Means, and in addition to the Committee on Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to House Small Business
Referred to the Subcommittee on Finance and Tax.
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