To amend the Internal Revenue Code of 1986 to provide an exception to the arbitrage rules for prepayments for electricity generated from renewable resources.

Amends the Internal Revenue Code to modify bond arbitrage rules to provide that an investment-type property does not include a prepayment under a qualified renewable electricity contract, thus exempting such prepayments from arbitrage restrictions.

[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4967 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 4967

 To amend the Internal Revenue Code of 1986 to provide an exception to 
  the arbitrage rules for prepayments for electricity generated from 
                          renewable resources.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 25, 2010

Ms. Giffords (for herself, Mr. Thompson of California, Mrs. Bono Mack, 
 Mr. Grijalva, Mr. Lujan, Mr. Blumenauer, and Mr. Carnahan) 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 provide an exception to 
  the arbitrage rules for prepayments for electricity generated from 
                          renewable resources.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. EXCEPTION TO ARBITRAGE RULES FOR PREPAYMENTS FOR ELECTRICITY 
              GENERATED FROM RENEWABLE RESOURCES.

    (a) In General.--Section 148(b) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(5) Exception for prepaid electricity generated from 
        renewable resources.--
                    ``(A) In general.--The term `investment-type 
                property' does not include a prepayment under a 
                qualified renewable electricity contract.
                    ``(B) Qualified renewable electricity contract.--
                For purposes of this paragraph, the term `qualified 
                renewable electricity contract' means any contract to 
                acquire electricity if--
                            ``(i) such electricity is used by the State 
                        or political subdivision thereof with respect 
                        to which the State or local bond is issued, and
                            ``(ii) in connection with such contract the 
                        supplier of such electricity places in service 
                        property which is capable of generating from 
                        qualified energy resources (as defined in 
                        section 45(c)) the amount of electricity 
                        purchased under the contract (and such property 
                        is not taken into account under this paragraph 
                        with respect to any other contract).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to obligations issued after the date of the enactment of this Act.
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