To amend the Internal Revenue Code of 1986 to expand and extend the renewable resource credit and nonconventional source credit for landfill gas facilities.

May 19, 2005

Mrs. LINCOLN introduced the following bill; which was read twice and referred to the Committee on Finance

To amend the Internal Revenue Code of 1986 to expand and extend the renewable resource credit and nonconventional source credit for landfill gas facilities.

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 `Landfill Gas-to-Energy Tax Credit Act'.

SEC. 2. EXPANSION AND EXTENSION OF RENEWABLE RESOURCE CREDIT FOR LANDFILL GAS FACILITIES.

(a) In General- Paragraph (6) of section 45(d) of the Internal Revenue Code of 1986 (relating to landfill gas facilities) is amended by striking `2006' and inserting `2009'.

(b) Credit Rate and Period for Electricity Produced and Sold After Enactment Date- Section 45(b)(4) of the Internal Revenue Code of 1986 (relating to credit rate and period for electricity produced and sold from certain facilities) is amended--

(1) by striking `(6), or (7)' in subparagraphs (A) and (B)(i) and inserting `or (7)', and

(2) by inserting `and in the case of any facility described in subsection (d)(6), the 7-year period beginning on the date the facility was originally placed in service shall be substituted for such 10-year period' before the period at the end of subparagraph (B)(i).

(c) Extension for Certain Facilities- Section 45(e) of the Internal Revenue Code of 1986 (relating to definitions and special rules) is amended by adding at the end the following new paragraph:

`(10) EXTENSION FOR CERTAIN FACILITIES- In the case of any facility described in subsection (d)(6), for purposes of subsection (b)(4), such facility shall be treated as being placed in service before January 1, 2009, if such facility is placed in service before July 1, 2009, pursuant to a binding written contract in effect before January 1, 2009.'.

(d) Effective Date- The amendments made by this section shall take effect as if included in the amendments made by section 710 of the American Jobs Creation Act of 2004.

SEC. 3. EXPANSION AND EXTENSION OF NONCONVENTIONAL SOURCE CREDIT FOR LANDFILL GAS FACILITIES.

(a) In General- Section 29 of the Internal Revenue Code of 1986 (relating to credit for producing fuel from a nonconventional source) is amended by adding at the end the following new subsection:

`(h) Landfill Gas Facilities- Notwithstanding subsection (f)--

`(1) IN GENERAL- In the case of any facility for producing qualified fuel from landfill gas which was placed in service after the date of the enactment of this subsection and before January 1, 2009, this section shall apply to fuel produced at such facility and sold during the 7-year period beginning on the date such facility was placed in service.

`(2) CLARIFICATION OF PLACED IN SERVICE DATE- In the case of any facility described in paragraph (1), such facility shall be treated as being placed in service before January 1, 2009, if such facility is placed in service before July 1, 2009, pursuant to a binding written contract in effect before January 1, 2009.

`(3) REDUCTION OF CREDIT FOR CERTAIN FACILITIES- In the case of any facility to which paragraph (1) applies and which is located at a landfill which is required pursuant to section 60.751(b)(2) or 60.33c of title 40, Code of Federal Regulations (as in effect on the date of the enactment of this subsection) to install and operate a collection and control system which captures gas generated within such landfill, subsection (a)(1) shall be applied to gas so captured by substituting `$2' for `$3' for the taxable year during which such system is required to be installed and operated.'.

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

END