S 631

112th CONGRESS
1st Session

S. 631

To extend certain Federal benefits and income tax provisions to energy generated by hydropower resources.

IN THE SENATE OF THE UNITED STATES

March 17, 2011

Ms. MURKOWSKI (for herself and Mr. BEGICH) introduced the following bill; which was read twice and referred to the Committee on Finance


A BILL

To extend certain Federal benefits and income tax provisions to energy generated by hydropower resources.

    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 `Hydropower Renewable Energy Development Act of 2011'.

SEC. 2. HYDROELECTRIC ENERGY TREATED AS RENEWABLE ENERGY.

    Notwithstanding any other provision of law or regulation, for purposes of any Federal program or standard, the term `renewable energy' shall include hydroelectric energy generated in the United States by a hydroelectric facility, including electric power produced by efficiency improvements and capacity additions, generation added to nonpower dams, conduits, marine and hydrokinetic resources, lake taps, pumped storage facilities, and conventional hydropower.

SEC. 3. PRODUCTION TAX CREDIT FOR HYDROPOWER RESOURCES.

    (a) In General- Subparagraph (A) of section 45(c)(8) of the Internal Revenue Code of 1986 is amended--

      (1) by striking `and' at the end of clause (i),

      (2) by striking the period at the end of clause (ii) and inserting `, and', and

      (3) by adding at the end the following new clause:

          `(iii) in the case of any hydropower facility described in subparagraph (D), the hydropower production from the facility for the taxable year.'.

    (b) Production- Paragraph (8) of section 45(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

        `(D) OTHER HYDROPOWER PRODUCTION FACILITIES- For purposes of subparagraph (A), a facility is described in this subparagraph if such facility--

          `(i) is a hydroelectric dam or nonhydroelectric dam--

            `(I) which is placed in service after the date of the enactment of the Hydropower Renewable Energy Development Act of 2011, and

            `(II) which would be described in subparagraph (A)(i) or (C) but for the placed in service date,

          `(ii) is a hydroelectric facility not described in clause (i) which has a nameplate capacity rating of less than 50 megawatts, or

          `(iii) is not described in clause (i) or (ii) and generates energy through the use of a lake tap or pumped storage.'.

    (c) Qualified Facilities- Paragraph (9) of section 45(d) of the Internal Revenue Code of 1986 is amended to read as follows:

      `(9) QUALIFIED HYDROPOWER FACILITY-

        `(A) INCREMENTAL HYDROPOWER PRODUCTION- In the case of a facility described in subsection (c)(8), without regard to subparagraph (C) or (D) thereof, which produces incremental hydropower production, the term `qualified facility' means such facility but only to the extent of such incremental hydropower production attributable to efficiency improvements or additions to capacity described in subsection (c)(8)(B) placed in service after August 8, 2005, and before January 1, 2014.

        `(B) PRODUCTION FROM CERTAIN NONHYDROELECTRIC DAMS- In the case of a facility described in subsection (c)(8)(C) which produces qualified hydropower production, the term `qualified facility' means any such facility placed in service after August 8, 2005, and before January 1, 2014.

        `(C) PRODUCTION FROM OTHER HYDROPOWER FACILITIES- In the case of qualified hydropower production at a facility after the date of the enactment of the Hydropower Renewable Energy Development Act of 2011, the term `qualified facility' includes any such facility which is described in subsection (c)(8)(D).

        `(D) CREDIT PERIOD- In the case of a qualified facility described in subparagraph (A), the 10-year period referred to in subsection (a) shall be treated as beginning on the date the efficiency improvements or additions to capacity are placed in service.'.

    (d) Increase in Credit Rate- Subparagraph (A) of section 45(b)(4) of the Internal Revenue Code of 1986 is amended by striking `(7), (9), or (11)' and inserting `or (7)'.

    (e) Effective Date- The amendments made by this section shall apply to electricity produced after the date of the enactment of this Act.

SEC. 4. 5-YEAR ACCELERATED DEPRECIATION PERIOD FOR EQUIPMENT WHICH PRODUCES ELECTRICITY FROM MARINE RENEWABLES AND HYDROPOWER.

    (a) In General- Subclause (III) of section 168(e)(3)(B)(vi) of the Internal Revenue Code of 1986 is amended to read as follows:

            `(III) is described in section 45(d)(11) (without regard to any placed in service date) and converts marine and hydrokinetic renewable energy (as defined in section 45(c)(10)) into useable energy,'.

    (b) Conventional Hydropower- Clause (vi) of section 168(e)(3)(B) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subclause:

            `(IV) is described in section 45(d)(9) (without regard to any placed in service date) and has qualified hydropower production (as defined in section 45(c)(8)), and'.

    (c) Effective Date- The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.

END