Amends the Internal Revenue Code to allow a tax credit for up to 20 percent of the basis of qualified woody biomass energy property placed in service in any taxable year. Defines "qualified woody biomass energy property" as new property which is used to produce electricity from woody biomass (e.g., trees and woody plant debris) placed in service before January 1, 2010, and which has a useful life of not less than five years.
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5266 Introduced in House (IH)]
108th CONGRESS
2d Session
H. R. 5266
To amend the Internal Revenue Code of 1986 to encourage investment in
facilities which use woody biomass to produce electricity.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 7, 2004
Mr. McInnis 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 encourage investment in
facilities which use woody biomass to produce electricity.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. CREDIT FOR INVESTMENT IN FACILITIES PRODUCING ELECTRICITY
FROM WOODY BIOMASS.
(a) In General.--Subpart E of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to rules for computing
investment credit) is amended by inserting after section 48 the
following new section:
``SEC. 48A. FACILITIES PRODUCING ELECTRICITY FROM WOODY BIOMASS.
``(a) In General.--For purposes of section 46, the woody biomass
technology credit for any taxable year is an amount equal to 20 percent
of the basis of qualified woody biomass energy property placed in
service during such year.
``(b) Qualified Woody Biomass Energy Property.--For purposes of
this section, the term `qualified woody biomass energy property' means
section 1245 property--
``(1) which is used to produce electricity from woody
biomass,
``(2) which is placed in service after the date of the
enactment of this section, and before January 1, 2010,
``(3) the original use of which commences with the
taxpayer, and
``(4) which has a useful life of not less than 5 years.
``(c) Woody Biomass.--For purposes of this section, the term `woody
biomass' means trees and woody plants, including bark, limbs, tops,
needles, leaves, stumps, roots and other woody parts and debris, that
are by-products of restoration and hazardous fuel reduction treatments,
disease and insect infestation management activities, or other
management activities that involve removal, manipulation, or
silvicultural treatment of forests, trees, and woody plants.
``(d) Special Rules.--For purposes of this section--
``(1) Certain progress expenditure rules made applicable.--
Rules similar to the rules of subsections (c)(4) and (d) of
section 46 (as in effect on the day before the date of the
enactment of the Revenue Reconciliation Act of 1990) shall
apply for purposes of this section.
``(2) Property financed by subsidized financing or
industrial development bonds.--Rules similar to the rules of
section 45(b)(3) shall apply for purposes of this section.
``(3) Noncompliance with pollution laws.--The term
`qualified woody biomass energy property' shall not include any
property which is not in compliance with the applicable Federal
pollution prevention, control, and permit requirements at any
time during the 5-year period beginning on the date such
property is placed in service.
``(4) Denial of credit for property receiving certain other
federal assistance.--The term `qualified woody biomass energy
property' shall not include any property if, at any time during
the 5-year period beginning on the date such property is placed
in service, any funding is provided with respect to such
property under any provision of Federal law.
``(5) Coordination with other credits.--This section shall
not apply to any property with respect to which the
rehabilitation credit under section 47, the energy credit under
section 48, or any credit under section 45 is allowable unless
the taxpayer elects to waive the application of such credit to
such property.''.
(b) Technical Amendments.--
(1) Section 46 of such Code (relating to amount of credit)
is amended by striking ``and'' at the end of paragraph (2), by
striking the period at the end of paragraph (3) and inserting
``, and'', and by adding at the end the following new
paragraph:
``(4) the woody biomass technology credit.''.
(2) Section 49(a)(1)(C) of such Code is amended by striking
``and'' at the end of clause (ii), by striking the period at
the end of clause (iii) and inserting ``, and'', and by adding
at the end the following new clause:
``(iv) the portion of the basis of any
qualified woody biomass energy property (as
defined by section 48A(b)).''.
(3) The table of sections for subpart E of part IV of
subchapter A of chapter 1 of such Code is amended by inserting
after the item relating to section 48 the following new item:
``Sec. 48A. Facilities producing electricity from woody biomass.''.
(c) Effective Date.--The amendments made by this section shall
apply to periods after December 31, 2004, under rules similar to the
rules of section 48(m) of the Internal Revenue Code of 1986 (as in
effect on the day before the date of the enactment of the Revenue
Reconciliation Act of 1990).
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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