Renewable Energy Expansion Act of 2010 - Amends the Internal Revenue Code to: (1) allow taxpayers an election to receive a direct payment for investing in or producing specified energy property in lieu of existing energy tax credits; and (2) extend eligibility for such payments until January 1, 2013.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4599 Introduced in House (IH)]
111th CONGRESS
2d Session
H. R. 4599
To amend the Internal Revenue Code of 1986 to provide an elective
payment for specified energy property.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 4, 2010
Mr. Blumenauer (for himself, Mr. McDermott, Mr. Van Hollen, Ms. Linda
T. Sanchez of California, Mr. Walz, Mr. Larson of Connecticut, Mr.
Thompson of California, Mr. Doggett, Mr. Pascrell, and Mr. Pomeroy)
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 an elective
payment for specified energy property.
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 ``Renewable Energy Expansion Act of
2010''.
SEC. 2. ELECTIVE PAYMENT FOR SPECIFIED ENERGY PROPERTY.
(a) In General.--Chapter 65 of the Internal Revenue Code of 1986
(relating to abatements, credits, and refunds) is amended by adding at
the end the following new subchapter:
``Subchapter C--Direct Payment Provisions
``Sec. 6451. Elective payment for specified energy property.
``SEC. 6451. ELECTIVE PAYMENT FOR SPECIFIED ENERGY PROPERTY.
``(a) In General.--Any person making an election under this section
with respect to any specified energy property originally placed in
service by such person during the taxable year shall be treated as
making a payment, against the tax imposed by subtitle A for the taxable
year, equal to the applicable percentage of the basis of such property.
Such payment shall be treated as made on the later of the due date of
the return of such tax or the date on which such return is filed.
``(b) Applicable Percentage.--For purposes of this section, the
term `applicable percentage' means--
``(1) 30 percent in the case of any property described in
paragraph (2)(A)(i) or (5) of section 48(a), and
``(2) 10 percent in the case of any other property.
``(c) Dollar Limitations.--In the case of property described in
paragraph (1), (2), or (3) of section 48(c), the payment otherwise
treated as made under subsection (a) with respect to such property
shall not exceed the limitation applicable to such property under such
paragraph.
``(d) Specified Energy Property.--For purposes of this section--
``(1) In general.--The term `specified energy property'
means energy property (within the meaning of section 48)
which--
``(A) is originally placed in service before
January 1, 2013, or
``(B) is originally placed in service on or after
such date and before the credit termination date with
respect to such property, but only if the construction
of such property began before January 1, 2013.
``(2) Credit termination date.--The term `credit
termination date' means--
``(A) in the case of any energy property which is
part of a facility described in paragraph (1) of
section 45(d), January 1, 2013,
``(B) in the case of any energy property which is
part of a facility described in paragraph (2), (3),
(4), (6), (7), (9), or (11) of section 45(d), January
1, 2014, and
``(C) in the case of any energy property described
in section 48(a)(3), January 1, 2017.
In the case of any property which is described in subparagraph
(C) and also in another subparagraph of this paragraph,
subparagraph (C) shall apply with respect to such property.
``(e) Special Rules for Certain Non-Taxpayers.--
``(1) Denial of payment.--Subsection (a) shall not apply
with respect to any property originally placed in service by--
``(A) any governmental entity,
``(B) any organization described in section 501(c)
or 401(a) and exempt from tax under section 501(a), or
``(C) any entity referred to in paragraph (4) of
section 54(j).
``(2) Exception for property used in unrelated trade or
business.--Paragraph (1) shall not apply with respect to any
property originally placed in service by an entity described in
section 511(a)(2) if substantially all of the income derived
from such property by such entity is unrelated business taxable
income (as defined in section 512).
``(3) Special rules for partnerships and s corporations.--
In the case of property originally placed in service by a
partnership or an S corporation--
``(A) the election under subsection (a) may be made
only by such partnership or S corporation,
``(B) such partnership or S corporation shall be
treated as making the payment referred to in subsection
(a) only to the extent of the proportionate share of
such partnership or S corporation as is owned by
persons who would be treated as making such payment if
the property were originally placed in service by such
persons, and
``(C) the return required to be made by such
partnership or S corporation under section 6031 or 6037
(as the case may be) shall be treated as a return of
tax for purposes of subsection (a).
For purposes of subparagraph (B), rules similar to the rules of section
168(h)(6) (other than subparagraph (F) thereof) shall apply.
``(f) Coordination With Production and Investment Credits.--In the
case of any property with respect to which an election is made under
this section--
``(1) Denial of production and investment credits.--No
credit shall be determined under section 45 or 48 with respect
to such property for the taxable year in which such property is
originally placed in service or any subsequent taxable year.
``(2) Reduction of payment by progress expenditures already
taken into account.--The amount of the payment treated as made
under subsection (a) with respect to such property shall be
reduced by the aggregate amount of credits determined under
section 48 with respect to such property for all taxable years
preceding the taxable year in which such property is originally
placed in service.
``(g) Other Definitions and Special Rules.--For purposes of this
section--
``(1) Other definitions.--Terms used in this section which
are also used in section 45 or 48 shall have the same meaning
for purposes of this section as when used in such sections.
``(2) Application of recapture rules, etc.--Except as
otherwise provided by the Secretary--
``(A) In general.--Except as otherwise provided in
this paragraph, rules similar to the rules of section
50 shall apply.
``(B) Exception to limitation on real estate
investment trusts, etc.--Paragraph (1) of section 50(d)
shall not apply.
``(C) Application of normalization rules.--
Paragraph (2) of section 50(d) shall not apply with
respect to property placed in service by a person in
the trade or business of furnishing or selling
electrical energy if any law or regulation requires
that not less than a certain amount of the electrical
energy so furnished or sold by such person be derived
from one or more renewable resources.
``(3) Provision of information.--A person shall not be
treated as having elected the application of this section
unless the taxpayer provides such information as the Secretary
(in consultation with the Secretary of Energy) may require for
purposes of verifying the proper amount to be treated as a
payment under subsection (a) and evaluating the effectiveness
of this section.
``(4) Exclusion from gross income.--Any credit or refund
allowed or made by reason of this section shall not be
includible in gross income or alternative minimum taxable
income.
``(5) Coordination with grant program.--If a grant under
section 1603 of the American Recovery and Reinvestment Tax Act
of 2009 is made with respect to any specified energy property--
``(A) no election may be made under subsection (a)
with respect to such property on or after the date of
such grant, and
``(B) if such grant is made after such election,
such property shall be treated as having ceased to be
specified energy property immediately after such
property was originally placed in service.''.
(b) Conforming Amendments.--
(1) Subparagraph (A) of section 6211(b)(4)(A) of such Code
is amended by inserting ``and subchapter C of chapter 65
(including any payment treated as made under such subchapter)''
after ``6431''.
(2) Subparagraph (B) of section 6425(c)(1) of such Code is
amended--
(A) by striking ``the credits'' and inserting ``the
sum of--
``(i) the credits'',
(B) by striking the period at the end of clause (i)
thereof (as amended by this paragraph) and inserting
``, plus'', and
(C) by adding at the end the following new clause:
``(ii) the payments treated as made under
subchapter C of chapter 65.''.
(3) Paragraph (3) of section 6654(f) of such Code is
amended--
(A) by striking ``the credits'' and inserting ``the
sum of--
``(A) the credits'',
(B) by striking the period at the end of
subparagraph (A) thereof (as amended by this paragraph)
and inserting ``, and'', and
(C) by adding at the end the following new
subparagraph:
``(B) the payments treated as made under subchapter
C of chapter 65.''.
(4) Subparagraph (B) of section 6655(g)(1) of such Code is
amended--
(A) by striking ``the credits'' and inserting ``the
sum of--
``(i) the credits'',
(B) by striking the period at the end of clause (i)
thereof (as amended by this paragraph) and inserting
``, plus'', and
(C) by adding at the end the following new clause:
``(ii) the payments treated as made under
subchapter C of chapter 65.''.
(5) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting ``, or from the provisions
of subchapter C of chapter 65 of such Code'' before the period
at the end.
(6) The table of subchapters for chapter 65 of the Internal
Revenue Code of 1986 is amended by adding at the end the
following new item:
``subchapter c. direct payment provisions.''
(c) Effective Date.--The amendments made by this section shall
apply to property originally placed in service after the date of the
enactment of this Act.
<all>
Introduced in House
Introduced in House
Sponsor introductory remarks on measure. (CR E165-166)
Referred to the House Committee on Ways and Means.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line