To amend the Internal Revenue Code of 1986 to provide an investment tax credit for biomass heating property and repeal the passive activity limitation exception for working interests in oil and gas property.

Amends the Internal Revenue Code to: (1) allow a 30% energy tax credit for investment in certain biomass heating property for periods ending before January 1, 2014; and (2) repeal the exemption from passive activity rules for working interests in oil or gas property.

[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5918 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 5918

To amend the Internal Revenue Code of 1986 to provide an investment tax 
  credit for biomass heating property and repeal the passive activity 
  limitation exception for working interests in oil and gas property.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 29, 2010

  Mr. Hodes 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 investment tax 
  credit for biomass heating property and repeal the passive activity 
  limitation exception for working interests in oil and gas property.

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

SECTION 1. INVESTMENT TAX CREDIT FOR BIOMASS HEATING PROPERTY.

    (a) In General.--Subparagraph (A) of section 48(a)(3) of the 
Internal Revenue Code of 1986 (defining energy property) is amended by 
striking ``or'' at the end of clause (vi), by inserting ``or'' at the 
end of clause (vii), and by inserting after clause (vii) the following 
new clause:
                            ``(viii) biomass heating property, 
                        including boilers or furnaces which operate at 
                        output efficiencies greater than 75 percent and 
                        which provide thermal energy in the form of 
                        heat, hot water, or steam for space heating, 
                        air conditioning, domestic hot water, or 
                        industrial process heat, but only with respect 
                        to periods ending before January 1, 2014,''.
    (b) 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 inserting after subclause (IV) the following new subclause:
                                    ``(V) energy property described in 
                                paragraph (3)(A)(viii), and''.
    (c) Effective Date.--The amendments made by this section shall 
apply to periods after the date of the enactment of this Act, in 
taxable years ending after such date, under rules similar to the rules 
of section 48(m) of the Internal Revenue Code of 1986 (as in effect on 
the day before the date of the enactment of the Revenue Reconciliation 
Act of 1990).

SEC. 2. REPEAL OF EXCEPTION FROM PASSIVE ACTIVITY RULES FOR WORKING 
              INTERESTS IN OIL OR GAS PROPERTY.

    (a) In General.--Subsection (c) of section 469 of the Internal 
Revenue Code of 1986 is amended by striking paragraph (3).
    (b) Conforming Amendment.--Paragraph (4) of section 469 (c) of such 
Code is amended--
            (1) by striking ``Paragraphs (2) and (3)'' and inserting 
        ``Paragraph (2)'', and
            (2) by striking ``Paragraphs (2) and (3)'' in the heading 
        and inserting  ``Paragraph (2)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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