Amends the Internal Revenue Code to allow, through December 31, 2018: (1) a new business-related tax credit for sales by an electric utility of renewable electricity generated by a facility using wind or solar energy to a retail customer; and (2) payments to such utilities, in lieu of such tax credit, for sales of renewable electricity to retail customers. Delays, until 2023, the application of rules relating to the allocation and apportionment of the interest expense of domestic corporations that are members of a worldwide affiliated group.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1899 Introduced in Senate (IS)]
113th CONGRESS
2d Session
S. 1899
To amend the Internal Revenue Code of 1986 to provide a consumer
renewable credit for a utility that sells renewable power, and for
other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 9, 2014
Ms. Klobuchar (for herself, Mr. Hoeven, and Mr. Johnson of South
Dakota) introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide a consumer
renewable credit for a utility that sells renewable power, 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. CONSUMER RENEWABLE CREDIT.
(a) Business Credit.--
(1) In general.--Subpart D 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 section:
``SEC. 45S. CONSUMER RENEWABLE CREDIT.
``(a) General Rule.--For purposes of section 38, in the case of an
eligible taxpayer, the consumer renewable credit for any taxable year
is an amount equal to the product of--
``(1) the renewable portfolio factor of such eligible
taxpayer, and
``(2) subject to subsection (e), the number of kilowatt
hours of renewable electricity--
``(A) purchased or produced by such taxpayer, and
``(B) sold by such taxpayer to a retail customer
during the taxable year.
``(b) Renewable Portfolio Factor.--In the case of taxable years
beginning before January 1, 2019, the renewable portfolio factor for an
eligible taxpayer shall be determined as follows:
------------------------------------------------------------------------
Renewable
``Renewable electricity percentage: portfolio factor:
------------------------------------------------------------------------
Less than 6 percent................................ zero cents
At least 6 percent but less than 8 percent......... 0.1 cents
At least 8 percent but less than 12 percent........ 0.2 cents
At least 12 percent but less than 16 percent....... 0.3 cents
At least 16 percent but less than 20 percent....... 0.4 cents
At least 20 percent but less than 24 percent....... 0.5 cents
Equal to or greater than 24 percent................ 0.6 cents.
------------------------------------------------------------------------
``(c) Definitions and Special Rules.--For purposes of this
section--
``(1) Eligible taxpayer.--The term `eligible taxpayer'
means an electric utility, as defined in section 3(22) of the
Federal Power Act (16 U.S.C. 796(22)).
``(2) Renewable electricity.--The term `renewable
electricity' means electricity generated by any facility using
wind or solar energy to generate such electricity.
``(3) Renewable electricity percentage.--The term
`renewable electricity percentage' means the percentage of an
eligible taxpayer's total sales of electricity to retail
customers which is derived from renewable electricity
(determined without regard to whether such electricity was
produced by the taxpayer).
``(4) Application of other rules.--For purposes of this
section, rules similar to the rules of paragraphs (1), (3), and
(5) of section 45(e) shall apply.
``(5) Credit allowed only with respect to one eligible
entity.--No credit shall be allowed under subsection (a) with
respect to renewable electricity purchased from another
eligible entity if a credit has been allowed under this section
to such other eligible entity.
``(d) Coordination With Payments.--The amount of the credit
determined under this section with respect to any electricity shall be
reduced to take into account any payment provided with respect to such
electricity solely by reason of the application of section 6433.
``(e) Renewable Electricity Enhancement.--
``(1) Native american wind and solar.--In the case of
renewable electricity generated by a wind or solar energy
facility which is located on an Indian reservation (as defined
in section 168(j)(6)), the number of kilowatt hours of such
renewable electricity shall, for purposes of subsection (a)(2),
be equal to 200 percent of the kilowatt hours of such renewable
electricity actually purchased or produced and sold during the
taxable year.
``(2) Electric cooperative wind and solar.--In the case of
renewable electricity generated by a wind or solar energy
facility which is wholly owned by a mutual or cooperative
electric company (as described in section 501(c)(12) or
1381(a)(2)(C)), the number of kilowatt hours of such renewable
electricity shall, for purposes of subsection (a)(2), be equal
to 150 percent of the kilowatt hours of such renewable
electricity actually purchased or produced and sold during the
taxable year.''.
(2) Credit made part of general business credit.--
Subsection (b) of section 38 of the Internal Revenue Code of
1986 is amended by striking ``plus'' at the end of paragraph
(35), by striking the period at the end of paragraph (36) and
inserting ``, plus'', and by adding at the end the following
new paragraph:
``(37) the consumer renewable credit determined under
section 45S(a).''.
(3) Specified credit.--Subparagraph (B) of section 38(c)(4)
of the Internal Revenue Code of 1986 is amended by
redesignating clauses (vii) through (ix) as clauses (viii)
through (x), respectively, and by inserting after clause (v)
the following new clause:
``(vi) the credit determined under section
45S.''.
(4) Clerical amendment.--The table of sections for subpart
D 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. 45S. Consumer renewable credit.''.
(b) Payments in Lieu of Credit.--
(1) In general.--Subchapter B of chapter 65 of the Internal
Revenue Code of 1986 is amended by adding at the end the
following new section:
``SEC. 6433. CONSUMER RENEWABLE CREDIT PAYMENTS.
``(a) In General.--If any eligible person sells renewable
electricity to a retail customer, the Secretary shall pay (without
interest) to any such person who elects to receive a payment an amount
equal to the product of--
``(1) the intermittent renewable portfolio factor of such
eligible person, and
``(2) the number of kilowatt hours of renewable
electricity--
``(A) purchased or produced by such person, and
``(B) sold by such person in the trade or business
of such person to a retail customer.
``(b) Timing of Payments.--
``(1) In general.--Except as provided in paragraph (2),
rules similar to the rules of section 6427(i)(1) shall apply
for purposes of this section.
``(2) Quarterly payments.--
``(A) In general.--If, at the close of any quarter
of the taxable year of any person (or, in the case of
an eligible person that does not have a taxable year,
the close of any quarter of the fiscal year), at least
$750 is payable in the aggregate under subsection (a),
to such person with respect to electricity purchased or
produced during--
``(i) such quarter, or
``(ii) any prior quarter (for which no
other claim has been filed) during such year,
a claim may be filed under this section with respect to
such electricity.
``(B) Time for filing claim.--No claim filed under
this paragraph shall be allowed unless filed on or
before the last day of the first quarter following the
earliest quarter included in the claim.
``(c) Definitions and Special Rules.--For purposes of this
section--
``(1) Eligible person.--The term `eligible person' means--
``(A) an electric utility, as defined in section
3(22) of the Federal Power Act (16 U.S.C. 796(22)), or
``(B) a Federal power marketing agency, as defined
in section 3(19) of such Act (16 U.S.C. 796(19)).
``(2) Other definitions.--Any term used in this section
which is also used in section 45S shall have the meaning given
such term under section 45S.
``(3) Application of other rules.--For purposes of this
section, rules similar to the rules of paragraphs (1) and (3)
of section 45(e) shall apply.
``(d) Payment Disallowed Unless Amount Passed to Third-Party
Generators Charged for Integration Costs.--
``(1) In general.--In the case of renewable electricity
eligible for the payment under subsection (a) that is purchased
and not produced by an eligible person, no payment shall be
made under this section unless any charge the eligible person
has assessed the seller to recover the integration costs
associated with such electricity has been reduced (but not
below zero) to the extent of the payment received under
subsection (a) associated with such electricity.
``(2) Definitions.--For purposes of paragraph (1), charges
intended to recover integration costs do not include amounts
paid by the producer of the electricity for interconnection
facilities, distribution upgrades, network upgrades, or stand
alone network upgrades as those terms have been defined by the
Federal Energy Regulatory Commission in its Standard
Interconnection Procedures.
``(e) Payment Allowed for Special Generating and Transmitting
Entities.--
``(1) In general.--Notwithstanding subsection (a)(2), a
special generating and transmitting entity shall be eligible
for payment under subsection (a) based on the number of
kilowatt hours of renewable electricity transmitted, regardless
of whether such entity purchased or sold such electricity to
retail customers.
``(2) Definition.--For purposes of this subsection, the
term `special generating and transmitting entity' means--
``(A) an entity which is--
``(i) primarily engaged in marketing
electricity,
``(ii) provides transmissions services for
greater than 4,000 megawatts of renewable
electricity generating facilities, as
determined by reference to the machine or
nameplate capacity thereof, and
``(iii) transmits the majority of such
renewable electricity to customers located
outside of the region that it serves, or
``(B) a generation and transmission cooperative
which engages primarily in providing wholesale electric
services to its members (generally consisting of
distribution cooperatives).''.
(2) Clerical amendment.--The table of sections for subpart
B of chapter 65 of the Internal Revenue Code of 1986 is amended
by adding at the end the following new item:
``Sec. 6433. Consumer renewable credit payments.''.
(c) Effective Date.--The amendments made by this section shall
apply to electricity produced or purchased and sold after December 31,
2013, and before January 1, 2019.
SEC. 2. DELAY IN APPLICATION OF WORLDWIDE INTEREST.
(a) In General.--Paragraphs (5)(D) and (6) of section 864(f) of the
Internal Revenue Code of 1986 are each amended by striking ``December
31, 2020'' and inserting ``December 31, 2022''.
(b) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
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