109th CONGRESS
2d Session
S. 2401
To amend the Internal Revenue Code of 1986 to extend certain energy
tax incentives, and for other purposes.
IN THE SENATE OF THE UNITED STATES
March 13, 2006
Mr. GRASSLEY (for himself and Mr. BAUCUS) 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 extend certain energy
tax incentives, 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. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title- This Act may be cited as the `Alternative Energy Extender
Act'.
(b) Table of Contents- The table of contents of this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I--ENERGY INFRASTRUCTURE TAX INCENTIVES
Sec. 101. Extension of credit for electricity produced from certain renewable
resources.
Sec. 102. Extension and expansion of credit to holders of clean renewable
energy bonds.
Sec. 103. Extension and expansion of qualifying advanced coal project
credit.
Sec. 104. Extension and expansion of qualifying gasification project credit.
TITLE II--DOMESTIC FOSSIL FUEL SECURITY
Sec. 201. Extension of election to expense certain refineries.
TITLE III--CONSERVATION AND ENERGY EFFICIENCY PROVISIONS
Sec. 301. Extension of energy efficient commercial buildings deduction.
Sec. 302. Extension of new energy efficient home credit.
Sec. 303. Extension of residential energy efficient property credit.
Sec. 304. Extension of credit for business installation of qualified fuel
cells and stationary microturbine power plants.
Sec. 305. Extension of business solar investment tax credit.
TITLE IV--ALTERNATIVE FUELS AND VEHICLES INCENTIVES
Sec. 401. Extension of excise tax provisions, income tax credits, and
tariff duties.
TITLE I--ENERGY INFRASTRUCTURE TAX INCENTIVES
SEC. 101. EXTENSION OF CREDIT FOR ELECTRICITY PRODUCED FROM CERTAIN RENEWABLE
RESOURCES.
Section 45(d) of the Internal Revenue Code of 1986 (relating to qualified
facilities) is amended by striking `2008' each place it appears and inserting
`2011'.
SEC. 102. EXTENSION AND EXPANSION OF CREDIT TO HOLDERS OF CLEAN RENEWABLE
ENERGY BONDS.
(a) In General- Section 54(m) of the Internal Revenue Code of 1986 (relating
to termination) is amended by striking `2007' and inserting `2010'.
(b) Annual Volume Cap for Bonds Issued During Extension Period- Paragraph
(1) of section 54(f) of the Internal Revenue Code of 1986 (relating to limitation
on amount of bonds designated) is amended to read as follows:
`(1) NATIONAL LIMITATION-
`(A) INITIAL NATIONAL LIMITATION- With respect to bonds issued after
December 31, 2005, and before January 1, 2008, there is a national clean
renewable energy bond limitation of $800,000,000.
`(B) ANNUAL NATIONAL LIMITATION- With respect to bonds issued after
December 31, 2007, and before January 1, 2011, there is a national clean
renewable energy bond limitation for each calendar year of $800,000,000.'.
(c) Effective Date- The amendments made by this section shall apply to bonds
issued after the date of the enactment of this Act.
SEC. 103. EXTENSION AND EXPANSION OF QUALIFYING ADVANCED COAL PROJECT
CREDIT.
(a) In General- Section 48A(d)(3)(A) of the Internal Revenue Code of 1986
(relating to aggregate credits) is amended by striking `$1,300,000,000'
and inserting `$1,800,000,000'.
(b) Authorization of Additional Integrated Gasification Combined Cycle Projects-
Subparagraph (B) of section 48A(d)(3) of te Internal Revenue Code of 1986
(relating to aggregate credits) is amended to read as follows:
`(B) PARTICULAR PROJECTS- Of the dollar amount in subparagraph (A),
the Secretary is authorized to certify--
`(i) $800,000,000 for integrated gasification combined cycle projects
the application for which is submitted during the period described
in paragraph (2)(A)(i),
`(ii) $500,000,000 for projects which use other advanced coal-based
generation technologies the application for which is submitted during
the period described in paragraph (2)(A)(i), and
`(iii) $500,000,000 for integrated gasification combined cycle projects
the application for which is submitted during the period described
in paragraph (2)(A)(ii).'.
(c) Application Period for Additional Projects- Subparagraph (A) of section
48A(d)(2) of the Internal Revenue Code of 1986 (relating to certification)
is amended to read as follows:
`(A) APPLICATION PERIOD- Each applicant for certification under this
paragraph shall submit an application meeting the requirements of subparagraph
(B). An applicant may only submit an application--
`(i) for an allocation from the dollar amount specified in clause
(i) or (ii) of paragraph (3)(A) during the 3-year period beginning
on the date the Secretary establishes the program under paragraph
(1), and
`(ii) for an allocation from the dollar amount specified in paragraph
(3)(A)(iii) during the 3-year period beginning at the termination
of the period described in clause (i).'.
(d) Effective Date- The amendments made by this section shall take effect
as if included in the amendments made by section 1307 of the Energy Policy
Act of 2005.
SEC. 104. EXTENSION AND EXPANSION OF QUALIFYING GASIFICATION PROJECT CREDIT.
(a) In General- Section 48B(d)(1) of the Internal Revenue Code of 1986 (relating
to qualifying gasification project program) is amended by striking `$350,000,000'
and inserting `$850,000,000'.
(b) Effective Date- The amendment made by this section shall take effect
as if included in the amendments made by section 1307 of the Energy Policy
Act of 2005.
TITLE II--DOMESTIC FOSSIL FUEL SECURITY
SEC. 201. EXTENSION OF ELECTION TO EXPENSE CERTAIN REFINERIES.
(a) In General- Section 179C(c)(1) of the Internal Revenue Code of 1986
(defining qualified refinery property) is amended--
(1) by striking `and before January 1, 2012' in subparagraph (B) and inserting
`and, in the case of any qualified refinery described in subsection (d)(1),
before January 1, 2012', and
(2) by inserting `if described in subsection (d)(1)' after `of which'
in subparagraph (F)(i).
(b) Conforming Amendment- Subsection (d) of section 179C of the Internal
Revenue Code of 1986 is amended to read as follows:
`(d) Qualified Refinery- For purposes of this section, the term `qualified
refinery' means any refinery located in the United States which is designed
to serve the primary purpose of processing liquid fuel from--
`(2) qualified fuels (as defined in section 45K(c)).'.
(c) Effective Date- The amendments made by this section shall take effect
as if included in the amendment made by section 1323(a) of the Energy Policy
Act of 2005.
TITLE III--CONSERVATION AND ENERGY EFFICIENCY PROVISIONS
SEC. 301. EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.
Section 179D(h) of the Internal Revenue Code of 1986 (relating to termination)
is amended by striking `2007' and inserting `2010'.
SEC. 302. EXTENSION OF NEW ENERGY EFFICIENT HOME CREDIT.
(a) In General- Subsection (g) of section 45L of the Internal Revenue Code
of 1986 (relating to new energy efficient home credit) is amended to read
as follows:
`(g) Termination- This section shall not apply to--
`(1) any qualified new energy efficient home meeting the energy saving
requirements of subsection (c)(1) acquired after December 31, 2010, and
`(2) any qualified new energy efficient home meeting the energy saving
requirements of paragraph (2) or (3) of subsection (c) acquired after
December 31, 2007.'.
(b) Effective Date- The amendment made by this section shall take effect
as if included in the amendments made by section 1332 of the Energy Policy
Act of 2005.
SEC. 303. EXTENSION OF RESIDENTIAL ENERGY EFFICIENT PROPERTY CREDIT.
Section 25D(g) of the Internal Revenue Code of 1986 (relating to termination)
is amended by striking `2007' and inserting `2010'.
SEC. 304. EXTENSION OF CREDIT FOR BUSINESS INSTALLATION OF QUALIFIED FUEL
CELLS AND STATIONARY MICROTURBINE POWER PLANTS.
Sections 48(c)(1)(E) and 48(c)(2)(E) of the Internal Revenue Code of 1986
(relating to termination) are each amended by striking `2007' and inserting
`2010'.
SEC. 305. EXTENSION OF BUSINESS SOLAR INVESTMENT TAX CREDIT.
Sections 48(a)(2)(A)(i)(II) and 48(a)(3)(A)(ii) of the Internal Revenue
Code of 1986 (relating to termination) are each amended by striking `2008'
and inserting `2011'.
TITLE IV--ALTERNATIVE FUELS AND VEHICLES INCENTIVES
SEC. 401. EXTENSION OF EXCISE TAX PROVISIONS, INCOME TAX CREDITS, AND
TARIFF DUTIES.
(a) Biodiesel- Sections 40A(g), 6426(c)(6), and 6427(e)(5)(B) of the Internal
Revenue Code of 1986 are each amended by striking `2008' and inserting `2010'.
(1) FUELS- Sections 6426(d)(4) and 6427(e)(5)(C) of the Internal Revenue
Code of 1986 are each amended by striking `September 30, 2009' and inserting
`December 31, 2010'.
(2) REFUELING PROPERTY- Section 30C(g) of such Code is amended by striking
`2009' and inserting `2010'.
(c) Ethanol Tariff Schedule- Headings 9901.00.50 and 9901.00.52 of the Harmonized
Tariff Schedule of the United States (19 U.S.C. 3007) are each amended in
the effective period column by striking `10/1/2007' each place it appears
and inserting `1/1/2011'.
(d) Effective Date- The amendments made by this section shall take effect
on January 1, 2007.
END
