[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 3098 Placed on Calendar Senate (PCS)]
Calendar No. 771
110th CONGRESS
2d Session
S. 3098
To amend the Internal Revenue Code of 1986 to extend certain expiring
provisions, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 6, 2008
Mr. McConnell (for himself, Mr. Kyl, Mr. Grassley, Mr. Hatch, Mr.
Roberts, Mr. Inhofe, Mr. Martinez, Mr. Crapo, Mr. Sununu, Mr. Wicker,
and Mr. Ensign) introduced the following bill; which was read the first
time
June 9, 2008
Read the second time and placed on the calendar
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to extend certain expiring
provisions, 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; AMENDMENT OF 1986 CODE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Alternative
Minimum Tax and Extenders Tax Relief Act of 2008''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.
(c) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; amendment of 1986 Code; table of contents.
TITLE I--ALTERNATIVE MINIMUM TAX RELIEF
Sec. 101. Extension of alternative minimum tax relief for nonrefundable
personal credits.
Sec. 102. Extension of increased alternative minimum tax exemption
amount.
TITLE II--INDIVIDUAL TAX PROVISIONS
Sec. 201. Deduction for State and local sales taxes.
Sec. 202. Deduction of qualified tuition and related expenses.
Sec. 203. Deduction for certain expenses of elementary and secondary
school teachers.
Sec. 204. Tax-free distributions from individual retirement plans for
charitable purposes.
Sec. 205. Treatment of certain dividends of regulated investment
companies.
Sec. 206. Stock in RIC for purposes of determining estates of
nonresidents not citizens.
Sec. 207. Qualified investment entities.
TITLE III--BUSINESS TAX PROVISIONS
Sec. 301. Extension and modification of research credit.
Sec. 302. New markets tax credit.
Sec. 303. Subpart F exception for active financing income.
Sec. 304. Extension of look-thru rule for related controlled foreign
corporations.
Sec. 305. Extension of 15-year straight-line cost recovery for
qualified leasehold improvements and
qualified restaurant improvements.
Sec. 306. Enhanced charitable deduction for contributions of food
inventory.
Sec. 307. Extension of enhanced charitable deduction for contributions
of book inventory.
Sec. 308. Modification of tax treatment of certain payments to
controlling exempt organizations.
Sec. 309. Basis adjustment to stock of S corporations making charitable
contributions of property.
Sec. 310. Increase in limit on cover over of rum excise tax to Puerto
Rico and the Virgin Islands.
Sec. 311. Extension of economic development credit for American Samoa.
Sec. 312. Extension of mine rescue team training credit.
Sec. 313. Extension of election to expense advanced mine safety
equipment.
Sec. 314. Extension of expensing rules for qualified film and
television productions.
Sec. 315. Deduction allowable with respect to income attributable to
domestic production activities in Puerto
Rico.
Sec. 316. Extension of qualified zone academy bonds.
Sec. 317. Indian employment credit.
Sec. 318. Accelerated depreciation for business property on Indian
reservation.
Sec. 319. Railroad track maintenance.
Sec. 320. Seven-year cost recovery period for motorsports racing track
facility.
Sec. 321. Expensing of environmental remediation costs.
Sec. 322. Extension of work opportunity tax credit for Hurricane
Katrina employees.
TITLE IV--EXTENSION OF CLEAN ENERGY PRODUCTION INCENTIVES
Sec. 401. Extension and modification of renewable energy production tax
credit.
Sec. 402. Extension and modification of solar energy and fuel cell
investment tax credit.
Sec. 403. Extension and modification of residential energy efficient
property credit.
Sec. 404. Extension and modification of credit for clean renewable
energy bonds.
Sec. 405. Extension of special rule to implement FERC restructuring
policy.
TITLE V--EXTENSION OF INCENTIVES TO IMPROVE ENERGY EFFICIENCY
Sec. 501. Extension and modification of credit for energy efficiency
improvements to existing homes.
Sec. 502. Extension and modification of tax credit for energy efficient
new homes.
Sec. 503. Extension and modification of energy efficient commercial
buildings deduction.
Sec. 504. Modification and extension of energy efficient appliance
credit for appliances produced after 2007.
TITLE VI--EXTENSION OF ALTERNATIVE FUELS AND MARGINAL PRODUCTION
Sec. 601. Percentage depletion for marginal well production.
Sec. 602. Credits for biodiesel and renewable diesel.
Sec. 603. Credit for alternative fuels.
TITLE VII--TAX ADMINISTRATION
Sec. 701. Permanent authority for undercover operations.
Sec. 702. Permanent disclosures of certain tax return information.
Sec. 703. Disclosure of information relating to terrorist activities.
TITLE I--ALTERNATIVE MINIMUM TAX RELIEF
SEC. 101. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR NONREFUNDABLE
PERSONAL CREDITS.
(a) In General.--Paragraph (2) of section 26(a) (relating to
special rule for taxable years 2000 through 2007) is amended--
(1) by striking ``or 2007'' and inserting ``2007, or
2008'', and
(2) by striking ``2007'' in the heading thereof and
inserting ``2008''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2007.
SEC. 102. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX EXEMPTION
AMOUNT.
(a) In General.--Paragraph (1) of section 55(d) (relating to
exemption amount) is amended--
(1) by striking ``($66,250 in the case of taxable years
beginning in 2007)'' in subparagraph (A) and inserting
``($69,950 in the case of taxable years beginning in 2008)'',
and
(2) by striking ``($44,350 in the case of taxable years
beginning in 2007)'' in subparagraph (B) and inserting
``($46,200 in the case of taxable years beginning in 2008)''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2007.
TITLE II--INDIVIDUAL TAX PROVISIONS
SEC. 201. DEDUCTION FOR STATE AND LOCAL SALES TAXES.
(a) In General.--Subparagraph (I) of section 164(b)(5) is amended
by striking ``January 1, 2008'' and inserting ``January 1, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2007.
SEC. 202. DEDUCTION OF QUALIFIED TUITION AND RELATED EXPENSES.
(a) In General.--Subsection (e) of section 222 (relating to
termination) is amended by striking ``December 31, 2007'' and inserting
``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2007.
SEC. 203. DEDUCTION FOR CERTAIN EXPENSES OF ELEMENTARY AND SECONDARY
SCHOOL TEACHERS.
(a) In General.--Subparagraph (D) of section 62(a)(2) (relating to
certain expenses of elementary and secondary school teachers) is
amended by striking ``or 2007'' and inserting ``2007, 2008, or 2009''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to taxable years beginning after December 31, 2007.
SEC. 204. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT PLANS FOR
CHARITABLE PURPOSES.
(a) In General.--Subparagraph (F) of section 408(d)(8) (relating to
termination) is amended by striking ``December 31, 2007'' and inserting
``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply
to distributions made in taxable years beginning after December 31,
2007.
SEC. 205. TREATMENT OF CERTAIN DIVIDENDS OF REGULATED INVESTMENT
COMPANIES.
(a) Interest-Related Dividends.--Subparagraph (C) of section
871(k)(1) (defining interest-related dividend) is amended by striking
``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Short-Term Capital Gain Dividends.--Subparagraph (C) of section
871(k)(2) (defining short-term capital gain dividend) is amended by
striking ``December 31, 2007'' and inserting ``December 31, 2009''.
(c) Effective Date.--The amendments made by this section shall
apply to dividends with respect to taxable years of regulated
investment companies beginning after December 31, 2007.
SEC. 206. STOCK IN RIC FOR PURPOSES OF DETERMINING ESTATES OF
NONRESIDENTS NOT CITIZENS.
(a) In General.--Paragraph (3) of section 2105(d) (relating to
stock in a RIC) is amended by striking ``December 31, 2007'' and
inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply
to decedents dying after December 31, 2007.
SEC. 207. QUALIFIED INVESTMENT ENTITIES.
(a) In General.--Clause (ii) of section 897(h)(4)(A) (relating to
termination) is amended by striking ``December 31, 2007'' and inserting
``December 31, 2009''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on January 1, 2008.
TITLE III--BUSINESS TAX PROVISIONS
SEC. 301. EXTENSION AND MODIFICATION OF RESEARCH CREDIT.
(a) Extension.--Section 41(h) (relating to termination) is
amended--
(1) by striking ``December 31, 2007'' and inserting
``December 31, 2009'' in paragraph (1)(B),
(2) by redesignating paragraph (2) as paragraph (3), and
(3) by inserting after paragraph (1) the following new
paragraph:
``(2) Termination of alternative incremental credit.--No
election under subsection (c)(4) shall apply to amounts paid or
incurred after December 31, 2007.''.
(b) Modification of Alternative Simplified Credit.--Paragraph
(5)(A) of section 41(c) (relating to election of alternative simplified
credit) is amended to read as follows:
``(A) In general.--
``(i) Calculation of credit.--At the
election of the taxpayer, the credit determined
under subsection (a)(1) shall be equal to the
applicable percentage (as defined in clause
(ii)) of so much of the qualified research
expenses for the taxable year as exceeds 50
percent of the average qualified research
expenses for the 3 taxable years preceding the
taxable year for which the credit is being
determined.
``(ii) Applicable percentage.--For purposes
of the calculation under clause (i), the
applicable percentage is--
``(I) 14 percent, in the case of
taxable years ending before January 1,
2009, and
``(II) 16 percent, in the case of
taxable years beginning after December
31, 2008.''.
(c) Conforming Amendment.--Subparagraph (D) of section 45C(b)(1)
(relating to special rule) is amended by striking ``December 31, 2007''
and inserting ``December 31, 2009''.
(d) Technical Correction.--Paragraph (3) of section 41(h) is
amended to read as follows:
``(2) Computation for taxable year in which credit
terminates.--In the case of any taxable year with respect to
which this section applies to a number of days which is less
than the total number of days in such taxable year--
``(A) the amount determined under subsection
(c)(1)(B) with respect to such taxable year shall be
the amount which bears the same ratio to such amount
(determined without regard to this paragraph) as the
number of days in such taxable year to which this
section applies bears to the total number of days in
such taxable year, and
``(B) for purposes of subsection (c)(5), the
average qualified research expenses for the preceding 3
taxable years shall be the amount which bears the same
ratio to such average qualified research expenses
(determined without regard to this paragraph) as the
number of days in such taxable year to which this
section applies bears to the total number of days in
such taxable year.''.
(e) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred after December 31, 2007.
SEC. 302. NEW MARKETS TAX CREDIT.
Subparagraph (D) of section 45D(f)(1) (relating to national
limitation on amount of investments designated) is amended by striking
``and 2008'' and inserting ``2008, and 2009''.
SEC. 303. SUBPART F EXCEPTION FOR ACTIVE FINANCING INCOME.
(a) Exempt Insurance Income.--Paragraph (10) of section 953(e)
(relating to application) is amended--
(1) by striking ``January 1, 2009'' and inserting ``January
1, 2010'', and
(2) by striking ``December 31, 2008'' and inserting
``December 31, 2009''.
(b) Exception to Treatment as Foreign Personal Holding Company
Income.--Paragraph (9) of section 954(h) (relating to application) is
amended by striking ``January 1, 2009'' and inserting ``January 1,
2010''.
SEC. 304. EXTENSION OF LOOK-THRU RULE FOR RELATED CONTROLLED FOREIGN
CORPORATIONS.
(a) In General.--Subparagraph (B) of section 954(c)(6) (relating to
application) is amended by striking ``January 1, 2009'' and inserting
``January 1, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years of foreign corporations beginning after December 31,
2007, and to taxable years of United States shareholders with or within
which such taxable years of foreign corporations end.
SEC. 305. EXTENSION OF 15-YEAR STRAIGHT-LINE COST RECOVERY FOR
QUALIFIED LEASEHOLD IMPROVEMENTS AND QUALIFIED RESTAURANT
IMPROVEMENTS.
(a) In General.--Clauses (iv) and (v) of section 168(e)(3)(E)
(relating to 15-year property) are each amended by striking ``January
1, 2008'' and inserting ``January 1, 2010''.
(b) Effective Date.--The amendments made by this section shall
apply to property placed in service after December 31, 2007.
SEC. 306. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF FOOD
INVENTORY.
(a) In General.--Clause (iv) of section 170(e)(3)(C) (relating to
termination) is amended by striking ``December 31, 2007'' and inserting
``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply
to contributions made after December 31, 2007.
SEC. 307. EXTENSION OF ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS
OF BOOK INVENTORY.
(a) Extension.--Clause (iv) of section 170(e)(3)(D) (relating to
termination) is amended by striking ``December 31, 2007'' and inserting
``December 31, 2009''.
(b) Clerical Amendment.--Clause (iii) of section 170(e)(3)(D)
(relating to certification by donee) is amended by inserting ``of
books'' after ``to any contribution''.
(c) Effective Date.--The amendments made by this section shall
apply to contributions made after December 31, 2007.
SEC. 308. MODIFICATION OF TAX TREATMENT OF CERTAIN PAYMENTS TO
CONTROLLING EXEMPT ORGANIZATIONS.
(a) In General.--Clause (iv) of section 512(b)(13)(E) (relating to
termination) is amended by striking ``December 31, 2007'' and inserting
``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply
to payments received or accrued after December 31, 2007.
SEC. 309. BASIS ADJUSTMENT TO STOCK OF S CORPORATIONS MAKING CHARITABLE
CONTRIBUTIONS OF PROPERTY.
(a) In General.--The last sentence of section 1367(a)(2) (relating
to decreases in basis) is amended by striking ``December 31, 2007'' and
inserting ``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply
to contributions made in taxable years beginning after December 31,
2007.
SEC. 310. INCREASE IN LIMIT ON COVER OVER OF RUM EXCISE TAX TO PUERTO
RICO AND THE VIRGIN ISLANDS.
(a) In General.--Paragraph (1) of section 7652(f) is amended by
striking ``January 1, 2008'' and inserting ``January 1, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to distilled spirits brought into the United States after December 31,
2007.
SEC. 311. EXTENSION OF ECONOMIC DEVELOPMENT CREDIT FOR AMERICAN SAMOA.
(a) In General.--Subsection (d) of section 119 of division A of the
Tax Relief and Health Care Act of 2006 is amended--
(1) by striking ``first two taxable years'' and inserting
``first 4 taxable years'', and
(2) by striking ``January 1, 2008'' and inserting ``January
1, 2010''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2007.
SEC. 312. EXTENSION OF MINE RESCUE TEAM TRAINING CREDIT.
Section 45N(e) (relating to termination) is amended by striking
``December 31, 2008'' and inserting ``December 31, 2009''.
SEC. 313. EXTENSION OF ELECTION TO EXPENSE ADVANCED MINE SAFETY
EQUIPMENT.
Section 179E(g) (relating to termination) is amended by striking
``December 31, 2008'' and inserting ``December 31, 2009''.
SEC. 314. EXTENSION OF EXPENSING RULES FOR QUALIFIED FILM AND
TELEVISION PRODUCTIONS.
Section 181(f) (relating to termination) is amended by striking
``December 31, 2008'' and inserting ``December 31, 2009''.
SEC. 315. DEDUCTION ALLOWABLE WITH RESPECT TO INCOME ATTRIBUTABLE TO
DOMESTIC PRODUCTION ACTIVITIES IN PUERTO RICO.
(a) In General.--Subparagraph (C) of section 199(d)(8) (relating to
termination) is amended--
(1) by striking ``first 2 taxable years'' and inserting
``first 4 taxable years'', and
(2) by striking ``January 1, 2008'' and inserting ``January
1, 2010''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2007.
SEC. 316. EXTENSION OF QUALIFIED ZONE ACADEMY BONDS.
(a) In General.--Paragraph (1) of section 1397E(e) is amended by
striking ``and 2007'' and inserting ``2007, 2008, and 2009''.
(b) Effective Date.--The amendment made by this section shall apply
to obligations issued after the date of the enactment of this Act.
SEC. 317. INDIAN EMPLOYMENT CREDIT.
(a) In General.--Subsection (f) of section 45A (relating to
termination) is amended by striking ``December 31, 2007'' and inserting
``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2007.
SEC. 318. ACCELERATED DEPRECIATION FOR BUSINESS PROPERTY ON INDIAN
RESERVATION.
(a) In General.--Paragraph (8) of section 168(j) (relating to
termination) is amended by striking ``December 31, 2007'' and inserting
``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply
to property placed in service after December 31, 2007.
SEC. 319. RAILROAD TRACK MAINTENANCE.
(a) In General.--Subsection (f) of section 45G (relating to
application of section) is amended by striking ``January 1, 2008'' and
inserting ``January 1, 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to expenditures paid or incurred during taxable years beginning after
December 31, 2007.
SEC. 320. SEVEN-YEAR COST RECOVERY PERIOD FOR MOTORSPORTS RACING TRACK
FACILITY.
(a) In General.--Subparagraph (D) of section 168(i)(15) (relating
to termination) is amended to read as follows:
``(D) Application of paragraph.--Such term shall
apply to property placed in service after the date of
the enactment of the Alternative Minimum Tax and
Extenders Tax Relief Act of 2008 and before January 1,
2010.''.
(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.
SEC. 321. EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.
(a) In General.--Subsection (h) of section 198 (relating to
termination) is amended by striking ``December 31, 2007'' and inserting
``December 31, 2009''.
(b) Effective Date.--The amendment made by this section shall apply
to expenditures paid or incurred after December 31, 2007.
SEC. 322. EXTENSION OF WORK OPPORTUNITY TAX CREDIT FOR HURRICANE
KATRINA EMPLOYEES.
(a) In General.--Paragraph (1) of section 201(b) of the Katrina
Emergency Tax Relief Act of 2005 is amended by striking ``2-year'' and
inserting ``4-year''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to individuals hired after August 27, 2007.
TITLE IV--EXTENSION OF CLEAN ENERGY PRODUCTION INCENTIVES
SEC. 401. EXTENSION AND MODIFICATION OF RENEWABLE ENERGY PRODUCTION TAX
CREDIT.
(a) Extension of Credit.--Each of the following provisions of
section 45(d) (relating to qualified facilities) is amended by striking
``January 1, 2009'' and inserting ``January 1, 2010'':
(1) Paragraph (1).
(2) Clauses (i) and (ii) of paragraph (2)(A).
(3) Clauses (i)(I) and (ii) of paragraph (3)(A).
(4) Paragraph (4).
(5) Paragraph (5).
(6) Paragraph (6).
(7) Paragraph (7).
(8) Paragraph (8).
(9) Subparagraphs (A) and (B) of paragraph (9).
(b) Production Credit for Electricity Produced From Marine
Renewables.--
(1) In general.--Paragraph (1) of section 45(c) (relating
to resources) is amended by striking ``and'' at the end of
subparagraph (G), by striking the period at the end of
subparagraph (H) and inserting ``, and'', and by adding at the
end the following new subparagraph:
``(I) marine and hydrokinetic renewable energy.''.
(2) Marine renewables.--Subsection (c) of section 45 is
amended by adding at the end the following new paragraph:
``(10) Marine and hydrokinetic renewable energy.--
``(A) In general.--The term `marine and
hydrokinetic renewable energy' means energy derived
from--
``(i) waves, tides, and currents in oceans,
estuaries, and tidal areas,
``(ii) free flowing water in rivers, lakes,
and streams,
``(iii) free flowing water in an irrigation
system, canal, or other man-made channel,
including projects that utilize nonmechanical
structures to accelerate the flow of water for
electric power production purposes, or
``(iv) differentials in ocean temperature
(ocean thermal energy conversion).
``(B) Exceptions.--Such term shall not include any
energy which is derived from any source which utilizes
a dam, diversionary structure (except as provided in
subparagraph (A)(iii)), or impoundment for electric
power production purposes.''.
(3) Definition of facility.--Subsection (d) of section 45
is amended by adding at the end the following new paragraph:
``(11) Marine and hydrokinetic renewable energy
facilities.--In the case of a facility producing electricity
from marine and hydrokinetic renewable energy, the term
`qualified facility' means any facility owned by the taxpayer--
``(A) which has a nameplate capacity rating of at
least 150 kilowatts, and
``(B) which is originally placed in service on or
after the date of the enactment of this paragraph and
before January 1, 2010.''.
(4) Credit rate.--Subparagraph (A) of section 45(b)(4) is
amended by striking ``or (9)'' and inserting ``(9), or (11)''.
(5) Coordination with small irrigation power.--Paragraph
(5) of section 45(d), as amended by subsection (a), is amended
by striking ``January 1, 2010'' and inserting ``the date of the
enactment of paragraph (11)''.
(c) Sales of Electricity to Regulated Public Utilities Treated as
Sales to Unrelated Persons.--Section 45(e)(4) (relating to related
persons) is amended by adding at the end the following new sentence:
``A taxpayer shall be treated as selling electricity to an unrelated
person if such electricity is sold to a regulated public utility (as
defined in section 7701(a)(33).''.
(d) Trash Facility Clarification.--Paragraph (7) of section 45(d)
is amended--
(1) by striking ``facility which burns'' and inserting
``facility (other than a facility described in paragraph (6))
which uses'', and
(2) by striking ``combustion''.
(e) Effective Dates.--
(1) Extension.--The amendments made by subsection (a) shall
apply to property originally placed in service after December
31, 2008.
(2) Modifications.--The amendments made by subsections (b)
and (c) shall apply to electricity produced and sold after the
date of the enactment of this Act, in taxable years ending
after such date.
(3) Trash facility clarification.--The amendments made by
subsection (d) shall apply to electricity produced and sold
before, on, or after December 31, 2007.
SEC. 402. EXTENSION AND MODIFICATION OF SOLAR ENERGY AND FUEL CELL
INVESTMENT TAX CREDIT.
(a) Extension of Credit.--
(1) Solar energy property.--Paragraphs (2)(A)(i)(II) and
(3)(A)(ii) of section 48(a) (relating to energy credit) are
each amended by striking ``January 1, 2009'' and inserting
``January 1, 2017''.
(2) Fuel cell property.--Subparagraph (E) of section
48(c)(1) (relating to qualified fuel cell property) is amended
by striking ``December 31, 2008'' and inserting ``December 31,
2016''.
(3) Qualified microturbine property.--Subparagraph (E) of
section 48(c)(2) (relating to qualified microturbine property)
is amended by striking ``December 31, 2008'' and inserting
``December 31, 2016''.
(b) Allowance of Energy Credit Against Alternative Minimum Tax.--
Subparagraph (B) of section 38(c)(4) (relating to specified credits) is
amended by striking ``and'' at the end of clause (iii), by striking the
period at the end of clause (iv) and inserting ``, and'', and by adding
at the end the following new clause:
``(v) the credit determined under section
46 to the extent that such credit is
attributable to the energy credit determined
under section 48.''.
(c) Repeal of Dollar Per Kilowatt Limitation for Fuel Cell
Property.--
(1) In general.--Section 48(c)(1) (relating to qualified
fuel cell), as amended by subsection (a)(2), is amended by
striking subparagraph (B) and by redesignating subparagraphs
(C), (D), and (E) as subparagraphs (B), (C), and (D),
respectively.
(2) Conforming amendment.--Section 48(a)(1) is amended by
striking ``paragraphs (1)(B) and (2)(B) of subsection (c)'' and
inserting ``subsection (c)(2)(B)''.
(d) Public Electric Utility Property Taken Into Account.--
(1) In general.--Paragraph (3) of section 48(a) is amended
by striking the second sentence thereof.
(2) Conforming amendments.--
(A) Paragraph (1) of section 48(c), as amended by
this section, is amended by striking subparagraph (C)
and redesignating subparagraph (D) as subparagraph (C).
(B) Paragraph (2) of section 48(c), as amended by
subsection (a)(3), is amended by striking subparagraph
(D) and redesignating subparagraph (E) as subparagraph
(D).
(e) Effective Dates.--
(1) Extension.--The amendments made by subsection (a) shall
take effect on the date of the enactment of this Act.
(2) Allowance against alternative minimum tax.--The
amendments made by subsection (b) shall apply to credits
determined under section 46 of the Internal Revenue Code of
1986 in taxable years beginning after the date of the enactment
of this Act and to carrybacks of such credits.
(3) Fuel cell property and public electric utility
property.--The amendments made by subsections (c) and (d) shall
apply to periods after the date of the enactment of this Act,
in taxable years ending after such date, 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).
SEC. 403. EXTENSION AND MODIFICATION OF RESIDENTIAL ENERGY EFFICIENT
PROPERTY CREDIT.
(a) Extension.--Section 25D(g) (relating to termination) is amended
by striking ``December 31, 2008'' and inserting ``December 31, 2009''.
(b) No Dollar Limitation for Credit for Solar Electric Property.--
(1) In general.--Section 25D(b)(1) (relating to maximum
credit) is amended by striking subparagraph (A) and by
redesignating subparagraphs (B) and (C) as subparagraphs (A)
and (B), respectively.
(2) Conforming amendments.--Section 25D(e)(4) is amended--
(A) by striking clause (i) in subparagraph (A),
(B) by redesignating clauses (ii) and (iii) in
subparagraph (A) as clauses (i) and (ii), respectively,
and
(C) by striking ``, (2),'' in subparagraph (C).
(c) Credit Allowed Against Alternative Minimum Tax.--
(1) In general.--Subsection (c) of section 25D is amended
to read as follows:
``(c) Limitation Based on Amount of Tax; Carryforward of Unused
Credit.--
``(1) Limitation based on amount of tax.--In the case of a
taxable year to which section 26(a)(2) does not apply, the
credit allowed under subsection (a) for the taxable year shall
not exceed the excess of--
``(A) the sum of the regular tax liability (as
defined in section 26(b)) plus the tax imposed by
section 55, over
``(B) the sum of the credits allowable under this
subpart (other than this section) and section 27 for
the taxable year.
``(2) Carryforward of unused credit.--
``(A) Rule for years in which all personal credits
allowed against regular and alternative minimum tax.--
In the case of a taxable year to which section 26(a)(2)
applies, if the credit allowable under subsection (a)
exceeds the limitation imposed by section 26(a)(2) for
such taxable year reduced by the sum of the credits
allowable under this subpart (other than this section),
such excess shall be carried to the succeeding taxable
year and added to the credit allowable under subsection
(a) for such succeeding taxable year.
``(B) Rule for other years.--In the case of a
taxable year to which section 26(a)(2) does not apply,
if the credit allowable under subsection (a) exceeds
the limitation imposed by paragraph (1) for such
taxable year, such excess shall be carried to the
succeeding taxable year and added to the credit
allowable under subsection (a) for such succeeding
taxable year.''.
(2) Conforming amendments.--
(A) Section 23(b)(4)(B) is amended by inserting
``and section 25D'' after ``this section''.
(B) Section 24(b)(3)(B) is amended by striking
``and 25B'' and inserting ``, 25B, and 25D''.
(C) Section 25B(g)(2) is amended by striking
``section 23'' and inserting ``sections 23 and 25D''.
(D) Section 26(a)(1) is amended by striking ``and
25B'' and inserting ``25B, and 25D''.
(d) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2007.
(2) Application of egtrra sunset.--The amendments made by
subparagraphs (A) and (B) of subsection (c)(2) shall be subject
to title IX of the Economic Growth and Tax Relief
Reconciliation Act of 2001 in the same manner as the provisions
of such Act to which such amendments relate.
SEC. 404. EXTENSION AND MODIFICATION OF CREDIT FOR CLEAN RENEWABLE
ENERGY BONDS.
(a) Extension.--Section 54(m) (relating to termination) is amended
by striking ``December 31, 2008'' and inserting ``December 31, 2009''.
(b) Increase in National Limitation.--Section 54(f) (relating to
limitation on amount of bonds designated) is amended--
(1) by inserting ``, and for the period beginning after the
date of the enactment of the Clean Energy Tax Stimulus Act of
2008 and ending before January 1, 2010, $400,000,000'' after
``$1,200,000,000'' in paragraph (1),
(2) by striking ``$750,000,000 of the'' in paragraph (2)
and inserting ``$750,000,000 of the $1,200,000,000'', and
(3) by striking ``bodies'' in paragraph (2) and inserting
``bodies, and except that the Secretary may not allocate more
than \1/3\ of the $400,000,000 national clean renewable energy
bond limitation to finance qualified projects of qualified
borrowers which are public power providers nor more than \1/3\
of such limitation to finance qualified projects of qualified
borrowers which are mutual or cooperative electric companies
described in section 501(c)(12) or section 1381(a)(2)(C)''.
(c) Public Power Providers Defined.--Section 54(j) is amended--
(1) by adding at the end the following new paragraph:
``(6) Public power provider.--The term `public power
provider' means a State utility with a service obligation, as
such terms are defined in section 217 of the Federal Power Act
(as in effect on the date of the enactment of this
paragraph).'', and
(2) by inserting ``; Public Power Provider'' before the
period at the end of the heading.
(d) Technical Amendment.--The third sentence of section 54(e)(2) is
amended by striking ``subsection (l)(6)'' and inserting ``subsection
(l)(5)''.
(e) Effective Date.--The amendments made by this section shall
apply to bonds issued after the date of the enactment of this Act.
SEC. 405. EXTENSION OF SPECIAL RULE TO IMPLEMENT FERC RESTRUCTURING
POLICY.
(a) Qualifying Electric Transmission Transaction.--
(1) In general.--Section 451(i)(3) (defining qualifying
electric transmission transaction) is amended by striking
``January 1, 2008'' and inserting ``January 1, 2010''.
(2) Effective date.--The amendment made by this subsection
shall apply to transactions after December 31, 2007.
(b) Independent Transmission Company.--
(1) In general.--Section 451(i)(4)(B)(ii) (defining
independent transmission company) is amended by striking
``December 31, 2007'' and inserting ``the date which is 2 years
after the date of such transaction''.
(2) Effective date.--The amendment made by this subsection
shall take effect as if included in the amendments made by
section 909 of the American Jobs Creation Act of 2004.
TITLE V--EXTENSION OF INCENTIVES TO IMPROVE ENERGY EFFICIENCY
SEC. 501. EXTENSION AND MODIFICATION OF CREDIT FOR ENERGY EFFICIENCY
IMPROVEMENTS TO EXISTING HOMES.
(a) Extension of Credit.--Section 25C(g) (relating to termination)
is amended by striking ``December 31, 2007'' and inserting ``December
31, 2009''.
(b) Qualified Biomass Fuel Property.--
(1) In general.--Section 25C(d)(3) is amended--
(A) by striking ``and'' at the end of subparagraph
(D),
(B) by striking the period at the end of
subparagraph (E) and inserting ``, and'', and
(C) by adding at the end the following new
subparagraph:
``(F) a stove which uses the burning of biomass
fuel to heat a dwelling unit located in the United
States and used as a residence by the taxpayer, or to
heat water for use in such a dwelling unit, and which
has a thermal efficiency rating of at least 75
percent.''.
(2) Biomass fuel.--Section 25C(d) (relating to residential
energy property expenditures) is amended by adding at the end
the following new paragraph:
``(6) Biomass fuel.--The term `biomass fuel' means any
plant-derived fuel available on a renewable or recurring basis,
including agricultural crops and trees, wood and wood waste and
residues (including wood pellets), plants (including aquatic
plants), grasses, residues, and fibers.''.
(c) Modifications of Standards for Energy-Efficient Building
Property.--
(1) Electric heat pumps.--Subparagraph (B) of section
25C(d)(3) is amended to read as follows:
``(A) an electric heat pump which achieves the
highest efficiency tier established by the Consortium
for Energy Efficiency, as in effect on January 1,
2008.''.
(2) Central air conditioners.--Section 25C(d)(3)(D) is
amended by striking ``2006'' and inserting ``2008''.
(3) Water heaters.--Subparagraph (E) of section 25C(d) is
amended to read as follows:
``(E) a natural gas, propane, or oil water heater
which has either an energy factor of at least 0.80 or a
thermal efficiency of at least 90 percent.''.
(4) Oil furnaces and hot water boilers.--Paragraph (4) of
section 25C(d) is amended to read as follows:
``(4) Qualified natural gas, propane, and oil furnaces and
hot water boilers.--
``(A) Qualified natural gas furnace.--The term
`qualified natural gas furnace' means any natural gas
furnace which achieves an annual fuel utilization
efficiency rate of not less than 95.
``(B) Qualified natural gas hot water boiler.--The
term `qualified natural gas hot water boiler' means any
natural gas hot water boiler which achieves an annual
fuel utilization efficiency rate of not less than 90.
``(C) Qualified propane furnace.--The term
`qualified propane furnace' means any propane furnace
which achieves an annual fuel utilization efficiency
rate of not less than 95.
``(D) Qualified propane hot water boiler.--The term
`qualified propane hot water boiler' means any propane
hot water boiler which achieves an annual fuel
utilization efficiency rate of not less than 90.
``(E) Qualified oil furnaces.--The term `qualified
oil furnace' means any oil furnace which achieves an
annual fuel utilization efficiency rate of not less
than 90.
``(F) Qualified oil hot water boiler.--The term
`qualified oil hot water boiler' means any oil hot
water boiler which achieves an annual fuel utilization
efficiency rate of not less than 90.''.
(d) Effective Date.--The amendments made this section shall apply
to expenditures made after December 31, 2007.
SEC. 502. EXTENSION AND MODIFICATION OF TAX CREDIT FOR ENERGY EFFICIENT
NEW HOMES.
(a) Extension of Credit.--Subsection (g) of section 45L (relating
to termination) is amended by striking ``December 31, 2008'' and
inserting ``December 31, 2010''.
(b) Allowance for Contractor's Personal Residence.--Subparagraph
(B) of section 45L(a)(1) is amended to read as follows:
``(B)(i) acquired by a person from such eligible
contractor and used by any person as a residence during
the taxable year, or
``(ii) used by such eligible contractor as a
residence during the taxable year.''.
(c) Effective Date.--The amendments made by this section shall
apply to homes acquired after December 31, 2008.
SEC. 503. EXTENSION AND MODIFICATION OF ENERGY EFFICIENT COMMERCIAL
BUILDINGS DEDUCTION.
(a) Extension.--Section 179D(h) (relating to termination) is
amended by striking ``December 31, 2008'' and inserting ``December 31,
2009''.
(b) Adjustment of Maximum Deduction Amount.--
(1) In general.--Subparagraph (A) of section 179D(b)(1)
(relating to maximum amount of deduction) is amended by
striking ``$1.80'' and inserting ``$2.25''.
(2) Partial allowance.--Paragraph (1) of section 179D(d) is
amended--
(A) by striking ``$.60'' and inserting ``$0.75'',
and
(B) by striking ``$1.80'' and inserting ``$2.25''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act.
SEC. 504. MODIFICATION AND EXTENSION OF ENERGY EFFICIENT APPLIANCE
CREDIT FOR APPLIANCES PRODUCED AFTER 2007.
(a) In General.--Subsection (b) of section 45M (relating to
applicable amount) is amended to read as follows:
``(b) Applicable Amount.--For purposes of subsection (a)--
``(1) Dishwashers.--The applicable amount is--
``(A) $45 in the case of a dishwasher which is
manufactured in calendar year 2008 or 2009 and which
uses no more than 324 kilowatt hours per year and 5.8
gallons per cycle, and
``(B) $75 in the case of a dishwasher which is
manufactured in calendar year 2008, 2009, or 2010 and
which uses no more than 307 kilowatt hours per year and
5.0 gallons per cycle (5.5 gallons per cycle for
dishwashers designed for greater than 12 place
settings).
``(2) Clothes washers.--The applicable amount is--
``(A) $75 in the case of a residential top-loading
clothes washer manufactured in calendar year 2008 which
meets or exceeds a 1.72 modified energy factor and does
not exceed a 8.0 water consumption factor,
``(B) $125 in the case of a residential top-loading
clothes washer manufactured in calendar year 2008 or
2009 which meets or exceeds a 1.8 modified energy
factor and does not exceed a 7.5 water consumption
factor,
``(C) $150 in the case of a residential or
commercial clothes washer manufactured in calendar year
2008, 2009, or 2010 which meets or exceeds 2.0 modified
energy factor and does not exceed a 6.0 water
consumption factor, and
``(D) $250 in the case of a residential or
commercial clothes washer manufactured in calendar year
2008, 2009, or 2010 which meets or exceeds 2.2 modified
energy factor and does not exceed a 4.5 water
consumption factor.
``(3) Refrigerators.--The applicable amount is--
``(A) $50 in the case of a refrigerator which is
manufactured in calendar year 2008, and consumes at
least 20 percent but not more than 22.9 percent less
kilowatt hours per year than the 2001 energy
conservation standards,
``(B) $75 in the case of a refrigerator which is
manufactured in calendar year 2008 or 2009, and
consumes at least 23 percent but no more than 24.9
percent less kilowatt hours per year than the 2001
energy conservation standards,
``(C) $100 in the case of a refrigerator which is
manufactured in calendar year 2008, 2009, or 2010, and
consumes at least 25 percent but not more than 29.9
percent less kilowatt hours per year than the 2001
energy conservation standards, and
``(D) $200 in the case of a refrigerator
manufactured in calendar year 2008, 2009, or 2010 and
which consumes at least 30 percent less energy than the
2001 energy conservation standards.''.
(b) Eligible Production.--
(1) Similar treatment for all appliances.--Subsection (c)
of section 45M (relating to eligible production) is amended--
(A) by striking paragraph (2),
(B) by striking ``(1) In general'' and all that
follows through ``the eligible'' and inserting ``The
eligible'', and
(C) by moving the text of such subsection in line
with the subsection heading and redesignating
subparagraphs (A) and (B) as paragraphs (1) and (2),
respectively.
(2) Modification of base period.--Paragraph (2) of section
45M(c), as amended by paragraph (1) of this section, is amended
by striking ``3-calendar year'' and inserting ``2-calendar
year''.
(c) Types of Energy Efficient Appliances.--Subsection (d) of
section 45M (defining types of energy efficient appliances) is amended
to read as follows:
``(d) Types of Energy Efficient Appliance.--For purposes of this
section, the types of energy efficient appliances are--
``(1) dishwashers described in subsection (b)(1),
``(2) clothes washers described in subsection (b)(2), and
``(3) refrigerators described in subsection (b)(3).''.
(d) Aggregate Credit Amount Allowed.--
(1) Increase in limit.--Paragraph (1) of section 45M(e)
(relating to aggregate credit amount allowed) is amended to
read as follows:
``(1) Aggregate credit amount allowed.--The aggregate
amount of credit allowed under subsection (a) with respect to a
taxpayer for any taxable year shall not exceed $75,000,000
reduced by the amount of the credit allowed under subsection
(a) to the taxpayer (or any predecessor) for all prior taxable
years beginning after December 31, 2007.''.
(2) Exception for certain refrigerator and clothes
washers.--Paragraph (2) of section 45M(e) is amended to read as
follows:
``(2) Amount allowed for certain refrigerators and clothes
washers.--Refrigerators described in subsection (b)(3)(D) and
clothes washers described in subsection (b)(2)(D) shall not be
taken into account under paragraph (1).''.
(e) Qualified Energy Efficient Appliances.--
(1) In general.--Paragraph (1) of section 45M(f) (defining
qualified energy efficient appliance) is amended to read as
follows:
``(1) Qualified energy efficient appliance.--The term
`qualified energy efficient appliance' means--
``(A) any dishwasher described in subsection
(b)(1),
``(B) any clothes washer described in subsection
(b)(2), and
``(C) any refrigerator described in subsection
(b)(3).''.
(2) Clothes washer.--Section 45M(f)(3) (defining clothes
washer) is amended by inserting ``commercial'' before
``residential'' the second place it appears.
(3) Top-loading clothes washer.--Subsection (f) of section
45M (relating to definitions) is amended by redesignating
paragraphs (4), (5), (6), and (7) as paragraphs (5), (6), (7),
and (8), respectively, and by inserting after paragraph (3) the
following new paragraph:
``(4) Top-loading clothes washer.--The term `top-loading
clothes washer' means a clothes washer which has the clothes
container compartment access located on the top of the machine
and which operates on a vertical axis.''.
(4) Replacement of energy factor.--Section 45M(f)(6), as
redesignated by paragraph (3), is amended to read as follows:
``(6) Modified energy factor.--The term `modified energy
factor' means the modified energy factor established by the
Department of Energy for compliance with the Federal energy
conservation standard.''.
(5) Gallons per cycle; water consumption factor.--Section
45M(f) (relating to definitions), as amended by paragraph (3),
is amended by adding at the end the following:
``(9) Gallons per cycle.--The term `gallons per cycle'
means, with respect to a dishwasher, the amount of water,
expressed in gallons, required to complete a normal cycle of a
dishwasher.
``(10) Water consumption factor.--The term `water
consumption factor' means, with respect to a clothes washer,
the quotient of the total weighted per-cycle water consumption
divided by the cubic foot (or liter) capacity of the clothes
washer.''.
(f) Effective Date.--The amendments made by this section shall
apply to appliances produced after December 31, 2007.
TITLE VI--EXTENSION OF ALTERNATIVE FUELS AND MARGINAL PRODUCTION
SEC. 601. PERCENTAGE DEPLETION FOR MARGINAL WELL PRODUCTION.
(a) In General.--Section 613A(c)(6)(H) (relating to temporary
suspension of taxable income limit with respect to marginal production)
is amended by striking ``January 1, 2008'' and inserting ``January 1,
2010''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2007.
SEC. 602. CREDITS FOR BIODIESEL AND RENEWABLE DIESEL.
(a) In General.--Sections 40A(g), 6426(c)(6), and 6427(e)(5)(B) are
each amended by striking ``December 31, 2008'' and inserting ``December
31, 2009''.
(b) Effective Date.--The amendments made by this section shall
apply to fuel produced, and sold or used, after December 31, 2008.
SEC. 603. CREDIT FOR ALTERNATIVE FUELS.
(a) In General.--Sections 6426(d)(4), 6426(e)(3), and 6427(e)(5)(C)
are each amended by striking ``September 30, 2009'' and inserting
``December 31, 2009''.
(b) Effective Date.--The amendments made by this section shall
apply to fuel produced, and sold or used, after September 30, 2009.
TITLE VII--TAX ADMINISTRATION
SEC. 701. PERMANENT AUTHORITY FOR UNDERCOVER OPERATIONS.
(a) In General.--Section 7608(c) (relating to rules relating to
undercover operations) is amended by striking paragraph (6).
(b) Effective Date.--The amendment made by this section shall apply
to operations conducted after the date of the enactment of this Act.
SEC. 702. PERMANENT DISCLOSURES OF CERTAIN TAX RETURN INFORMATION.
(a) Disclosures To Facilitate Combined Employment Tax Reporting.--
(1) In general.--Section 6103(d)(5) (relating to disclosure
for combined employment tax reporting) is amended--
(A) by striking ``reporting'' in the heading
thereof and all that follows through ``The Secretary''
in subparagraph (A) and inserting ``reporting.--The
Secretary'', and
(B) by striking subparagraph (B).
(2) Effective date.--The amendments made by this subsection
shall apply to disclosures after the date of the enactment of
this Act.
(b) Disclosures Relating to Certain Programs Administered by the
Department of Veterans Affairs.--
(1) In general.--Section 6103(l)(7)(D) (relating to
programs to which rule applies) is amended by striking the last
sentence.
(2) Technical amendment.--Section 6103(l)(7)(D)(viii)(III)
is amended by striking ``sections 1710(a)(1)(I), 1710(a)(2),
1710(b), and 1712(a)(2)(B)'' and inserting ``sections
1710(a)(2)(G), 1710(a)(3), and 1710(b)''.
SEC. 703. DISCLOSURE OF INFORMATION RELATING TO TERRORIST ACTIVITIES.
(a) Disclosure of Return Information To Apprise Appropriate
Officials of Terrorist Activities.--Clause (iv) of section
6103(i)(3)(C) (relating to termination) is amended by striking
``December 31, 2007'' and inserting ``December 31, 2009''.
(b) Disclosure Upon Request of Information Relating to Terrorist
Activities.--Subparagraph (E) of section 6103(i)(7) (relating to
termination) is amended by striking ``December 31, 2007'' and inserting
``December 31, 2009''.
(c) Effective Date.--The amendments made by this section shall
apply to disclosures after the date of the enactment of this Act.
Calendar No. 771
110th CONGRESS
2d Session
S. 3098
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to extend certain expiring
provisions, and for other purposes.
_______________________________________________________________________
June 9, 2008
Read the second time and placed on the calendar