To amend the Internal Revenue Code of 1986 to provide the energy tax credit for transformers designed to use soybean-based electrical transformer fluid.

Amends the Internal Revenue Code to allow an energy tax credit for investment in an electrical transformer which is designed to use, and contains, soybean-based electrical transformer fluid as the insulating fluid.

[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4305 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 4305

 To amend the Internal Revenue Code of 1986 to provide the energy tax 
   credit for transformers designed to use soybean-based electrical 
                           transformer fluid.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 14, 2009

 Mr. Meek of Florida 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 the energy tax 
   credit for transformers designed to use soybean-based electrical 
                           transformer fluid.

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

SECTION 1. ENERGY CREDIT FOR TRANSFORMERS DESIGNED TO USE SOYBEAN-BASED 
              ELECTRICAL TRANSFORMER FLUID.

    (a) In General.--Subparagraph (A) of section 48(a)(3) of the 
Internal Revenue Code of 1986 is amended by striking ``or'' at the end 
of clause (vi), by inserting ``or'' at the end of clause (vii), and by 
adding at the end the following new clause:
                            ``(viii) an electrical transformer which is 
                        designed to use, and contains, soybean-based 
                        electrical transformer fluid as the insulating 
                        fluid,''.
    (b) 30 Percent Credit for Replacement Soybean-Based Electrical 
Transformer Fluid.--
            (1) In general.--Subsection (a) of section 48 of such Code 
        is amended by adding at the end the following new paragraph:
            ``(6) Soybean-based electrical transformer fluid.--For 
        purposes of this subpart, the term `energy property' includes 
        any soybean-based electrical transformer fluid--
                    ``(A) used by the taxpayer as an insulating fluid 
                in an electrical transformer owned or operated by the 
                taxpayer, and
                    ``(B) the original use of which commences with the 
                taxpayer.''.
            (2) 30 percent credit.--Clause (i) of section 48(a)(2)(A) 
        of such Code is amended by striking ``and'' at the end of 
        subclause (III) and by adding at the end the following new 
        subclause:
                                    ``(V) any soybean-based electrical 
                                transformer fluid described in 
                                paragraph (6), and''.
    (c) Soybean-Based Electrical Transformer Fluid.--Subsection (c) of 
section 48 of such Code is amended by adding at the end the following 
new paragraph:
            ``(5) Soybean-based electrical transformer fluid.--The term 
        `soybean-based electrical transformer fluid' means any 
        insulating fluid formulated for use in electrical transformers 
        which--
                    ``(A) is at least 95 percent soybean oil by volume, 
                and
                    ``(B) has received an environmental technology 
                verification from the Administrator of the 
                Environmental Protection Agency.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service in taxable years beginning after 
the date of the enactment of this Act.
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