Investing to Modernize the Production of American Clean Energy and Technology Act of 2014 or the IMPACT Act of 2014 - Amends the Internal Revenue Code, with respect to alternative and renewable energy tax provisions, to: (1) extend through 2023 the placed-in-service dates for the tax credit for producing electricity from wind, biomass, geothermal or solar energy, landfill gas, hydropower, and marine and hydrokinetic renewable energy facilities; (2) extend through 2023 the election of the tax credit for investment in energy property in lieu of the tax credit for producing electricity from renewable resources; (3) authorize an additional allocation of credits under the qualifying advanced energy program; and (4) extend through 2016 the tax credits for energy-efficient new home expenditures and for energy-efficient appliances.
Increases or extends tax credits for qualified plug-in electric drive motor vehicles, heavy natural gas vehicles, and alternative fuel vehicle refueling property. Provides for tax-exempt financing of electric, natural gas, and hydrogen vehicle refueling property.
Repeals or imposes limits on tax preferences for major integrated oil companies (i.e., companies that have an average daily worldwide production of at least 500,000 barrels and annual gross income over $1 billion), including the tax deduction for income attributable to oil, natural gas, or primary products thereof, the tax deduction for intangible drilling and development costs, the percentage depletion allowance for oil and gas wells, the tax deduction for tertiary injectants, and the foreign tax credit for dual capacity taxpayers.
Prohibits the use of the last-in, first-out (LIFO) accounting method by major integrated oil companies.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4753 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 4753
To amend the Internal Revenue Code of 1986 to provide incentives for
clean energy and to repeal fossil fuel subsidies for big oil companies.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 28, 2014
Mr. McDermott (for himself, Mr. Waxman, Mr. Larson of Connecticut, Mr.
Blumenauer, and Mr. Pascrell) 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 incentives for
clean energy and to repeal fossil fuel subsidies for big oil companies.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Investing to
Modernize the Production of American Clean Energy and Technology Act of
2014'' or as the ``IMPACT Act of 2014''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--CLEAN ENERGY INCENTIVES
Subtitle A--Renewable Energy
Sec. 101. Extension of renewable energy credits.
Sec. 102. Extension of election of investment tax credit in lieu of
production credit.
Sec. 103. Extension of qualifying advanced energy project credit.
Sec. 104. Extension of credit for energy-efficient new homes.
Sec. 105. Extension of credit for energy-efficient appliances.
Subtitle B--Electric, Natural Gas, and Hydrogen Vehicles
Sec. 111. Increase and expansion of credit for qualified plug-in
electric drive motor vehicles.
Sec. 112. Extension of new qualified alternative fuel motor vehicle
credit for heavy natural gas vehicles.
Sec. 113. Modification of credit for alternative fuel vehicle refueling
property for vehicles powered by
electricity, natural gas, or hydrogen.
Sec. 114. Electric, natural gas, and hydrogen vehicle refueling
property tax credit bonds.
TITLE II--REPEAL OF FOSSIL FUEL SUBSIDIES FOR BIG OIL COMPANIES
Sec. 201. Prohibition on using last-in, first-out accounting for major
integrated oil companies.
Sec. 202. Modifications of foreign tax credit rules applicable to major
integrated oil companies which are dual
capacity taxpayers.
Sec. 203. Limitation on section 199 deduction attributable to oil,
natural gas, or primary products thereof.
Sec. 204. Limitation on deduction for intangible drilling and
development costs.
Sec. 205. Limitation on percentage depletion allowance for oil and gas
wells.
Sec. 206. Limitation on deduction for tertiary injectants.
TITLE I--CLEAN ENERGY INCENTIVES
Subtitle A--Renewable Energy
SEC. 101. EXTENSION OF RENEWABLE ENERGY CREDITS.
(a) Wind, Biomass, Geothermal, Small Irrigation, Landfill Gas,
Hydropower, Marine, and Hydrokinetic.--Each of the following provisions
of section 45(d) of such Code is amended by striking ``January 1,
2014'' each place it appears and inserting ``January 1, 2024'':
(1) Paragraph (1).
(2) Clauses (i) and (ii) of paragraph (2)(A).
(3) Clauses (i)(I) and (ii) of paragraph (3)(A).
(4) Paragraph (4).
(5) Paragraph (6).
(6) Subparagraphs (A) and (C) of paragraph (9).
(7) Subparagraph (B) of paragraph (11).
(b) Early Termination in Event of Federal Renewable Electricity
Requirement.--Subsection (d) of section 45 of the Internal Revenue Code
of 1986 is amended by adding at the end the following new paragraph:
``(12) Termination in event of federal renewable
electricity requirement.--Notwithstanding any other provision
of this section, the term `qualified facility' shall not
include any property which is placed in service after the date
which is 1 year after the date on which the Secretary of Energy
makes a public declaration that a Federal law is in effect
which requires retail electric suppliers in the United States
to supply minimum and significant amounts of electric energy
which is generated from renewable sources to customers for
purposes other than resale.''.
SEC. 102. EXTENSION OF ELECTION OF INVESTMENT TAX CREDIT IN LIEU OF
PRODUCTION CREDIT.
(a) In General.--Clause (ii) of section 48(a)(5)(C) of the Internal
Revenue Code of 1986 is amended by striking ``January 1, 2014'' and
inserting ``January 1, 2024''.
(b) Limitation.--Paragraph (5) of section 48(a) of such Code is
amended by adding at the end the following new subparagraphs:
``(E) Limitation.--In the case of a qualifying
offshore wind facility to which this paragraph applies
and the total megawatt nameplate capacity of which
exceeds 3,000 megawatts, the basis which would (but for
this subparagraph) be taken into account under
subsection (a) with respect to such facility shall not
exceed the amount which bears the same ratio to such
basis as--
``(i) 3000 megawatts, bears to
``(ii) the total megawatt nameplate
capacity of such facility.
``(F) Qualifying offshore wind facility.--For
purposes of this paragraph--
``(i) In general.--The term `qualifying
offshore wind facility' means an offshore
facility using wind to produce electricity.
``(ii) Offshore facility.--The term
`offshore facility' means any facility located
in the inland navigable waters of the United
States, including the Great Lakes, or in the
coastal waters of the United States, including
the territorial seas of the United States, the
exclusive economic zone of the United States,
and the Outer Continental Shelf of the United
States. For purposes of the preceding sentence,
the term `United States' has the meaning given
in section 638(1).''.
(c) Effective Date.--The amendments made by this section shall
apply to facilities placed in service after December 31, 2013.
SEC. 103. EXTENSION OF QUALIFYING ADVANCED ENERGY PROJECT CREDIT.
Paragraph (1) of section 48C(d) of the Internal Revenue Code of
1986 is amended by adding at the end the following new subparagraph:
``(C) Additional limitation amount.--
``(i) In general.--The total amount of
credits that may be allocated under the program
shall be increased by $5,000,000,000.
``(ii) Applications.--Notwithstanding the
deadline for submitting applications specified
in paragraph (2)(A), an applicant for
certification with respect to credits allocated
pursuant to clause (i) may submit an
application to the Secretary at such time and
in such manner as the Secretary may provide.
``(iii) Review, redistribution, and
reallocation.--Notwithstanding the deadline for
review specified in paragraph (4)(A), the
Secretary shall review the credits allocated
pursuant to clause (i) at such time as the
Secretary determines appropriate.''.
SEC. 104. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT NEW HOMES.
(a) In General.--Subsection (g) of section 45L of the Internal
Revenue Code of 1986 is amended by striking ``December 31, 2013'' and
inserting ``December 31, 2016''.
(b) Effective Date.--The amendment made by this section shall apply
to homes acquired after December 31, 2013.
SEC. 105. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT APPLIANCES.
(a) In General.--Section 45M(b) of the Internal Revenue Code of
1986 is amended by striking ``or 2013'' each place it appears and
inserting ``2013, 2014, 2015, or 2016''.
(b) Effective Date.--The amendments made by this section shall
apply to appliances produced after December 31, 2013.
Subtitle B--Electric, Natural Gas, and Hydrogen Vehicles
SEC. 111. INCREASE AND EXPANSION OF CREDIT FOR QUALIFIED PLUG-IN
ELECTRIC DRIVE MOTOR VEHICLES.
(a) Increase in Dollar Limitation.--Paragraph (2) of section 30D(b)
of the Internal Revenue Code of 1986 is amended by striking ``$2,500''
and inserting ``$5,000''.
(b) Increase in Limitation on Number of Vehicles Eligible for
Credit.--Paragraph (2) of section 30D(e) of such Code is amended by
striking ``200,000'' and inserting ``400,000''.
(c) Effective Date.--The amendment made by this section shall apply
to vehicles acquired after the date of the enactment of this Act.
SEC. 112. EXTENSION OF NEW QUALIFIED ALTERNATIVE FUEL MOTOR VEHICLE
CREDIT FOR HEAVY NATURAL GAS VEHICLES.
(a) In General.--Paragraph (4) of section 30B(k) of the Internal
Revenue Code of 1986 is amended by inserting ``(December 31, 2018, in
the case of a vehicle powered by compressed or liquefied natural gas
and weighing more than 8,500 pounds)'' before the period at the end.
(b) Effective Date.--The amendment made by this section shall apply
to vehicles purchased after the date of the enactment of this Act.
SEC. 113. MODIFICATION OF CREDIT FOR ALTERNATIVE FUEL VEHICLE REFUELING
PROPERTY FOR VEHICLES POWERED BY ELECTRICITY, NATURAL
GAS, OR HYDROGEN.
(a) Special Rules for Property Placed in Service Before January 1,
2021.--Subsection (e) of section 30C of the Internal Revenue Code of
1986 is amended by adding at the end the following new paragraph:
``(7) Property for recharging vehicles powered by
electricity, natural gas, or hydrogen.--In the case of property
placed in service after December 31, 2013, and before January
1, 2021, which relates to electricity, natural gas, or
hydrogen--
``(A) subsection (a) shall be applied by
substituting `50 percent' for `30 percent',
``(B) subsection (b)(1) shall be applied by
substituting `$50,000' for `$30,000', and
``(C) subsection (b)(2) shall be applied by
substituting `$2,000' for `$1,000'.''.
(b) Installation Costs.--Subsection (e) of section 30C of such
Code, as amended by subsection (a), is amended by adding at the end the
following:
``(8) Installation costs.--The cost of any qualified
alternative fuel vehicle refueling property which relates to
electricity, natural gas, or hydrogen shall include the cost of
the original installation of such property.''.
(c) Termination of Credit.--Paragraph (1) of section 30C(g) of such
Code is amended to read as follows:
``(1) in the case of property relating to electricity,
natural gas, or hydrogen, after December 31, 2020, and''.
(d) Effective Date.--The amendments made by this section shall
apply to property placed in service after December 31, 2013.
SEC. 114. ELECTRIC, NATURAL GAS, AND HYDROGEN VEHICLE REFUELING
PROPERTY TAX CREDIT BONDS.
(a) In General.--Paragraph (1) of section 54A(d) of the Internal
Revenue Code of 1986 is amended by striking ``or'' at the end of
subparagraph (D), by inserting ``or'' at the end of subparagraph (E),
and by inserting after subparagraph (E) the following new subparagraph:
``(F) a qualified electric, natural gas, and
hydrogen vehicle refueling property bond,''.
(b) Qualified Purpose.--Subparagraph (C) of section 54A(d)(2) of
such Code is amended by striking ``and'' at the end of clause (iv), by
striking the period at the end of clause (v) and inserting ``, and'',
and by adding at the end the following new clause:
``(vi) in the case of a qualified electric,
natural gas, and hydrogen vehicle refueling
property bond, a purpose specified in section
54G(a)(1).''.
(c) Bonds Allowed.--Subpart I of part IV of subchapter A of chapter
1 of such Code is amended by adding at the end the following new
section:
``SEC. 54G. QUALIFIED ELECTRIC, NATURAL GAS, AND HYDROGEN VEHICLE
REFUELING PROPERTY BONDS.
``(a) Qualified Electric, Natural Gas, and Hydrogen Vehicle
Refueling Property Bond.--For purposes of this subpart, the term
`qualified electric, natural gas, and hydrogen vehicle refueling
property bond' means any bond issued as part of an issue if--
``(1) 100 percent of the available project proceeds of such
issue are to be used for capital expenditures incurred by a
qualified issuer for 1 or more qualified electric, natural gas,
and hydrogen vehicle refueling properties,
``(2) the bond is issued by a qualified issuer, and
``(3) the issuer designates such bond for purposes of this
section.
``(b) Reduced Credit Amount.--Notwithstanding paragraph (2) of
section 54A(b), the annual credit determined with respect to any
qualified electric, natural gas, and hydrogen vehicle refueling
property bond is 70 percent of the amount which would (but for this
subsection) otherwise be determined under such paragraph with respect
to such bond.
``(c) Limitation on Amount of Bonds Designated.--The maximum
aggregate face amount of bonds which may be designated under subsection
(a) by any issuer shall not exceed the limitation amount allocated to
such issuer under subsection (e).
``(d) National Limitation on Amount of Bonds Designated.--There is
a national qualified electric, natural gas, and hydrogen vehicle
refueling property bond limitation of $750,000,000.
``(e) Allocations.--The Secretary shall make allocations of the
amount of the national qualified electric, natural gas, and hydrogen
vehicle refueling property bond limitation described in subsection (d)
among purposes described in subsection (a)(1) in such manner as the
Secretary determines appropriate.
``(f) Definitions.--For purposes of this section--
``(1) Qualified electric, natural gas, and hydrogen vehicle
refueling property.--The term `qualified electric, natural gas,
and hydrogen vehicle refueling property' means any qualified
alternative fuel vehicle refueling property (within the meaning
of section 30C) which relates to electricity, natural gas, or
hydrogen.
``(2) Qualified issuer.--
``(A) In general.--The term `qualified issuer'
means a public power provider, a cooperative electric
company, or a governmental body.
``(B) Governmental body.--The term `governmental
body' means any State or Indian tribal government, or
any political subdivision thereof.
``(C) Public power provider.--The term `public
power provider' means a State utility that has a
service obligation to end-users or to a distribution
utility (within the meaning of section 217 of the
Federal Power Act, as in effect on the date of the
enactment of this section).
``(D) Cooperative electric company.--The term
`cooperative electric company' means a mutual or
cooperative electric company described in section
501(c)(12) or an organization described in section
1381(a)(2)(C).''.
(d) Clerical Amendment.--The table of sections for subpart I of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by adding at the end the following new item:
``Sec. 54G. Qualified electric, natural gas, and hydrogen vehicle
refueling property bonds.''.
(e) Effective Date.--The amendments made by this section shall
apply to obligations issued after the date of the enactment of this
Act.
TITLE II--REPEAL OF FOSSIL FUEL SUBSIDIES FOR BIG OIL COMPANIES
SEC. 201. PROHIBITION ON USING LAST-IN, FIRST-OUT ACCOUNTING FOR MAJOR
INTEGRATED OIL COMPANIES.
(a) In General.--Section 472 of the Internal Revenue Code of 1986
is amended by adding at the end the following new subsection:
``(h) Major Integrated Oil Companies.--Notwithstanding any other
provision of this section, a major integrated oil company (as defined
in section 167(h)(5)(B)) may not use the method provided in subsection
(b) in inventorying of any goods.''.
(b) Effective Date and Special Rule.--
(1) In general.--The amendment made by subsection (a) shall
apply to taxable years beginning after the date of the
enactment of this Act.
(2) Change in method of accounting.--In the case of any
taxpayer required by the amendment made by this section to
change its method of accounting for its first taxable year
beginning after the date of the enactment of this Act--
(A) such change shall be treated as initiated by
the taxpayer,
(B) such change shall be treated as made with the
consent of the Secretary of the Treasury, and
(C) the net amount of the adjustments required to
be taken into account by the taxpayer under section 481
of the Internal Revenue Code of 1986 shall be taken
into account ratably over a period (not greater than 8
taxable years) beginning with such first taxable year.
SEC. 202. MODIFICATIONS OF FOREIGN TAX CREDIT RULES APPLICABLE TO MAJOR
INTEGRATED OIL COMPANIES WHICH ARE DUAL CAPACITY
TAXPAYERS.
(a) In General.--Section 901 of the Internal Revenue Code of 1986
is amended by redesignating subsection (n) as subsection (o) and by
inserting after subsection (m) the following new subsection:
``(n) Special Rules Relating to Major Integrated Oil Companies
Which Are Dual Capacity Taxpayers.--
``(1) General rule.--Notwithstanding any other provision of
this chapter, any amount paid or accrued by a dual capacity
taxpayer which is a major integrated oil company (as defined in
section 167(h)(5)(B)) to a foreign country or possession of the
United States for any period shall not be considered a tax--
``(A) if, for such period, the foreign country or
possession does not impose a generally applicable
income tax, or
``(B) to the extent such amount exceeds the amount
(determined in accordance with regulations) which--
``(i) is paid by such dual capacity
taxpayer pursuant to the generally applicable
income tax imposed by the country or
possession, or
``(ii) would be paid if the generally
applicable income tax imposed by the country or
possession were applicable to such dual
capacity taxpayer.
Nothing in this paragraph shall be construed to imply the
proper treatment of any such amount not in excess of the amount
determined under subparagraph (B).
``(2) Dual capacity taxpayer.--For purposes of this
subsection, the term `dual capacity taxpayer' means, with
respect to any foreign country or possession of the United
States, a person who--
``(A) is subject to a levy of such country or
possession, and
``(B) receives (or will receive) directly or
indirectly a specific economic benefit (as determined
in accordance with regulations) from such country or
possession.
``(3) Generally applicable income tax.--For purposes of
this subsection--
``(A) In general.--The term `generally applicable
income tax' means an income tax (or a series of income
taxes) which is generally imposed under the laws of a
foreign country or possession on income derived from
the conduct of a trade or business within such country
or possession.
``(B) Exceptions.--Such term shall not include a
tax unless it has substantial application, by its terms
and in practice, to--
``(i) persons who are not dual capacity
taxpayers, and
``(ii) persons who are citizens or
residents of the foreign country or
possession.''.
(b) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to taxes paid or accrued in taxable years beginning after
the date of the enactment of this Act.
(2) Contrary treaty obligations upheld.--The amendments
made by this section shall not apply to the extent contrary to
any treaty obligation of the United States.
SEC. 203. LIMITATION ON SECTION 199 DEDUCTION ATTRIBUTABLE TO OIL,
NATURAL GAS, OR PRIMARY PRODUCTS THEREOF.
(a) Denial of Deduction.--Paragraph (4) of section 199(c) of the
Internal Revenue Code of 1986 is amended by adding at the end the
following new subparagraph:
``(E) Special rule for certain oil and gas
income.--In the case of any taxpayer who is a major
integrated oil company (as defined in section
167(h)(5)(B)) for the taxable year, the term `domestic
production gross receipts' shall not include gross
receipts from the production, transportation, or
distribution of oil, natural gas, or any primary
product (within the meaning of subsection (d)(9))
thereof.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2013.
SEC. 204. LIMITATION ON DEDUCTION FOR INTANGIBLE DRILLING AND
DEVELOPMENT COSTS.
(a) In General.--Section 263(c) of the Internal Revenue Code of
1986 is amended by adding at the end the following new sentence: ``This
subsection shall not apply to amounts paid or incurred by a taxpayer in
any taxable year in which such taxpayer is a major integrated oil
company (as defined in section 167(h)(5)(B)).''.
(b) Effective Date.--The amendment made by this section shall apply
to amounts paid or incurred in taxable years beginning after December
31, 2013.
SEC. 205. LIMITATION ON PERCENTAGE DEPLETION ALLOWANCE FOR OIL AND GAS
WELLS.
(a) In General.--Section 613A of the Internal Revenue Code of 1986
is amended by adding at the end the following new subsection:
``(f) Application With Respect to Major Integrated Oil Companies.--
In the case of any taxable year in which the taxpayer is a major
integrated oil company (as defined in section 167(h)(5)(B)), the
allowance for percentage depletion shall be zero.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2013.
SEC. 206. LIMITATION ON DEDUCTION FOR TERTIARY INJECTANTS.
(a) In General.--Section 193 of the Internal Revenue Code of 1986
is amended by adding at the end the following new subsection:
``(d) Application With Respect to Major Integrated Oil Companies.--
This section shall not apply to amounts paid or incurred by a taxpayer
in any taxable year in which such taxpayer is a major integrated oil
company (as defined in section 167(h)(5)(B)).''.
(b) Effective Date.--The amendment made by this section shall apply
to amounts paid or incurred in taxable years beginning after December
31, 2013.
<all>
Introduced in House
Introduced in House
Sponsor introductory remarks on measure. (CR E853-854)
Referred to the House Committee on Ways and Means.
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