[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 3264 Introduced in Senate (IS)]
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114th CONGRESS
2d Session
S. 3264
To amend the Internal Revenue Code of 1986 to modify the credit for
production of electricity from renewable resources to allow a credit
for certain open-loop biomass and trash facilities placed in service
before the date of the enactment of this Act and to modify the
definition of municipal solid waste.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 14, 2016
Mr. Menendez (for himself, Ms. Stabenow, Mr. Cardin, Ms. Collins, Mr.
King, Ms. Ayotte, Ms. Klobuchar, and Mrs. Feinstein) 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 modify the credit for
production of electricity from renewable resources to allow a credit
for certain open-loop biomass and trash facilities placed in service
before the date of the enactment of this Act and to modify the
definition of municipal solid waste.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SPECIAL RULE FOR CERTAIN FACILITIES GENERATING ELECTRICITY
FROM BIOMASS AND MUNICIPAL SOLID WASTE.
(a) In General.--Section 45(e) of the Internal Revenue Code of 1986
is amended by adding at the end the following new paragraph:
``(12) Special rule for certain qualified facilities.--
``(A) In general.--In the case of electricity
produced at a qualified facility described in paragraph
(3) or (7) of subsection (d) and placed in service
before the date of the enactment of this paragraph, a
taxpayer may elect to apply subsection (a)(2)(A)(ii) by
substituting `the period beginning after December 31,
2016, and ending before January 1, 2018' for `the 10-
year period beginning on the date the facility was
originally placed in service'.
``(B) Limitation.--No credit shall be allowed under
subsection (a) to any taxpayer making an election under
this paragraph with respect to electricity produced and
sold at a facility during any period which, when
aggregated with all other periods for which a credit is
allowed under this section with respect to electricity
produced and sold at such facility, is in excess of 10
years.''.
(b) Effective Date.--The amendment made by this section shall take
effect on January 1, 2017.
SEC. 2. MODIFICATION TO DEFINITION OF MUNICIPAL SOLID WASTE.
(a) In General.--Paragraph (6) of section 45(c) of the Internal
Revenue Code of 1986 is amended to read as follows:
``(6) Municipal solid waste.--
``(A) In general.--The term `municipal solid waste'
has the meaning given the term `solid waste' under
section 2(27) of the Solid Waste Disposal Act (42
U.S.C. 6903), except that such term does not include--
``(i) paper which is commonly recycled and
which has been segregated from other solid
waste (as so defined), or
``(ii) solid waste (as so defined) which is
collected as part of a system which commingles
commonly recycled paper with other solid waste
which is not commonly recycled at any point
from the time of collection through any
materials recovery.
``(B) Special rule with respect to incidental and
residual waste.--Subparagraph (A)(ii) shall not apply
to--
``(i) solid waste (as so defined) which
only contains an incidental amount of commonly
recycled paper, and
``(ii) solid waste (as so defined) which is
residual waste generated at a materials
recovery facility that receives and processes
only paper and other recyclable materials
containing no more than an incidental amount of
non-recyclable solid waste.
``(C) No effect on existing processes.--Nothing in
subparagraph (A) shall be interpreted to require a
State or a political subdivision of a State, directly
or indirectly, to change the systems, processes, or
equipment it uses to collect, treat, dispose, or
otherwise use municipal solid waste, within the meaning
of the Solid Waste Disposal Act (42 U.S.C. 6903 et
seq.), nor require a change to the regulations that
implement subtitle D of such Act (42 U.S.C. 6901 et
seq.).''.
(b) Rules With Respect to Electricity Produced From Solid Waste.--
Subsection (e) of section 45 of the Internal Revenue Code of 1986, as
amended by this Act, is amended by adding at the end the following new
paragraph:
``(13) Source of municipal solid waste feedstock.--In the
case of a qualified facility that produces electricity both
from municipal solid waste and other solid waste that is not a
qualified energy resource--
``(A) such facility shall be considered a qualified
facility if it otherwise meets the requirements of
subsection (d), and
``(B) subsection (a) shall only apply to that
portion of the electricity produced from municipal
solid waste.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
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