H.R. 2810 (110th): To amend the Internal Revenue Code of 1986 to provide a credit against income tax for biomethane ...

...produced from biomass which is equivalent to the credit allowed for electricity produced from biomass.

110th Congress, 2007–2009. Text as of Jun 21, 2007 (Introduced).

Status & Summary | PDF | Source: GPO

I

110th CONGRESS

1st Session

H. R. 2810

IN THE HOUSE OF REPRESENTATIVES

June 21, 2007

(for himself, Ms. Norton, Mr. Butterfield, and Mr. Melancon) 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 a credit against income tax for biomethane produced from biomass which is equivalent to the credit allowed for electricity produced from biomass.

1.

Credit for biomethane produced from biomass which is equivalent to credit for electricity produced from biomass

(a)

In general

Subsection (e) of section 45 of the Internal Revenue Code of 1986 (relating to electricity produced from certain renewable resources, etc.) is amended by redesignating paragraphs (9), (10), and (11) as paragraphs (10), (11), and (12), respectively, and by inserting after paragraph (8) the following new paragraph:

(9)

Credit for biomethane produced from biomass which is equivalent to credit for electricity produced from biomass

(A)

Determination of credit amount

In the case of a producer of biomethane, the credit determined under this section (without regard to this paragraph) for any taxable year shall be increased by 1.5 cents for each 3412 Btus of biomethane—

(i)

produced by the taxpayer—

(I)

from biomass, and

(II)

at a biomethane facility during the 10-year period beginning on the date the facility was originally placed in service, and

(ii)

sold by the taxpayer to an unrelated person during the taxable year.

(B)

Biomass

For purposes of this paragraph, the term biomass has the meaning given to such term by section 45K(c)(3).

(C)

Biomethane

For purposes of this paragraph, the term biomethane means gas produced from biomass if the properties of such gas meet the requirements to be transported in an interstate natural gas pipeline as a natural gas substitute. Such term includes liquefied gas which would be described in the preceding sentence but for being in liquid form.

(D)

Application of rules

Rules similar to the rules of the subsection (b)(3) and paragraphs (1) through (5) of this subsection shall apply for purposes of determining the amount of any increase under this paragraph.

(E)

Facilities producing electricity before January 1, 2008

For purposes of subparagraph (A)(i)(II) and subsection (d)(11), in the case of a facility which was originally placed in service before January 1, 2008 (determined without regard to this subparagraph), and which produced electricity from methane—

(i)

such facility shall be treated as originally placed in service on the first day on which such facility first produced biomethane if no credit was allowed under this section for electricity so produced and sold before such day, or

(ii)

if credit was allowed under this section for such electricity, only the portion of the 10-year period referred to in subsection (a)(2)(A)(ii) which is after December 31, 2007, may be taken into account under this paragraph.

.

(b)

Biomethane facility

Subsection (d) of section 45 of such Code is amended by adding at the end the following new paragraph:

(11)

Biomethane facility

In the case of a facility producing biomethane, the term biomethane facility means any facility placed in service after December 31, 2007, and before January 1, 2017.

.

(c)

Coordination with credit for producing fuel from a nonconventional source

Paragraph (10) of section 45(e) of such Code, as redesignated by subsection (a), is amended by adding at the end the following new subparagraph:

(C)

Biomethane facilities

The term biomethane facility shall not include any facility the production from which is allowed as a credit under section 45K for the taxable year or any prior taxable year (or under section 29, as in effect on the day before the date of enactment of the Energy Tax Incentives Act of 2005, for any prior taxable year).

.

(d)

Conforming amendment

Paragraph (2) of section 45(b) of such Code is amended by striking subsection (a) and inserting subsections (a) and (e)(9)(A).

(e)

Effective date

The amendments made by this section shall apply to biomethane produced and sold after December 31, 2007.