H.R.6
To enhance energy conservation and research and development, to
provide for security and diversity in the energy supply for the American people,
and for other purposes. (Introduced in House)
SEC. 43005. EXTENSION AND MODIFICATION OF CREDIT FOR PRODUCING FUEL FROM A
NONCONVENTIONAL SOURCE.
(a) IN GENERAL- Section 29 is amended by adding at the end the following
new subsection:
`(h) EXTENSION FOR OTHER FACILITIES-
`(1) EXTENSION FOR OIL AND CERTAIN GAS- In the case of a well for
producing qualified fuels described in subparagraph (A) or (B)(i) of
subsection (c)(1)--
`(A) APPLICATION OF CREDIT FOR NEW WELLS- Notwithstanding subsection
(f), this section shall apply with respect to such fuels--
`(i) which are produced from a well drilled after the date of the
enactment of this subsection and before January 1, 2007, and
`(ii) which are sold not later than the close of the 4-year period
beginning on the date that such well is drilled, or, if earlier, January
1, 2010.
`(B) EXTENSION OF CREDIT FOR OLD WELLS- Subsection (f)(2) shall be
applied by substituting `2007' for `2003' with respect to wells described
in subsection (f)(1)(A) with respect to such fuels.
`(2) EXTENSION FOR FACILITIES PRODUCING QUALIFIED FUEL FROM LANDFILL
GAS-
`(A) IN GENERAL- In the case of a facility for producing qualified
fuel from landfill gas which was placed in service after June 30, 1998,
and before January 1, 2007, this section shall apply to fuel produced at
such facility during the 5-year period beginning on the later
of--
`(i) the date such facility was placed in service, or
`(ii) the date of the enactment of this subsection.
`(B) REDUCTION OF CREDIT FOR CERTAIN LANDFILL FACILITIES- In the case
of a facility to which paragraph (1) applies and which is located at a
landfill which is required pursuant to section 60.751(b)(2) or section
60.33c of title 40, Code of Federal Regulations (as in effect on April 3,
2003) to install and operate a collection and control system which
captures gas generated within the landfill, subsection (a)(1) shall be
applied to gas so captured by substituting `$2' for `$3' for the taxable
year during which such system is required to be installed and
operated.
`(3) SPECIAL RULES- In determining the amount of credit allowable under
this section solely by reason of this subsection--
`(A) DAILY LIMIT- The amount of qualified fuels sold during any
taxable year which may be taken into account by reason of this subsection
with respect to any project shall not exceed an average barrel-of-oil
equivalent of 200,000 cubic feet of natural gas per day. Days before the
date the project is placed in service shall not be taken into account in
determining such average.
`(B) EXTENSION PERIOD TO COMMENCE WITH UNADJUSTED CREDIT AMOUNT- In
the case of fuels sold during 2003, the dollar amount applicable under
subsection (a)(1) shall be $3 (without regard to subsection (b)(2)). In
the case of fuels sold after 2003, subparagraph (B) of subsection (d)(2)
shall be applied by substituting `2003' for `1979'.'.
(b) TREATMENT AS BUSINESS CREDIT-
(1) CREDIT MOVED TO SUBPART RELATING TO BUSINESS RELATED CREDITS- The
Internal Revenue Code of 1986 is amended by redesignating section 29 as
section 45J and by moving section 45J (as so redesignated) from subpart B of
part IV of subchapter A of chapter 1 to the end of subpart D of part IV of
subchapter A of chapter 1.
(2) CREDIT TREATED AS BUSINESS CREDIT- Section 38(b) is amended by
striking `plus' at the end of paragraph (17), by striking the period at the
end of paragraph (18) and inserting `, plus', and by adding at the end the
following:
`(19) the nonconventional source production credit determined under
section 45J(a).'.
(3) CONFORMING AMENDMENTS-
(A) Section 30(b)(2)(A), as redesignated by section 110(a), is amended
by striking `sections 27 and 29' and inserting `section 27'.
(B) Section 30B(d), as added by section 41011, is amended by striking
`, 29,'.
(C) Section 39(d) is amended by adding at the end the following new
paragraph:
`(13) NO CARRYBACK FOR NONCONVENTIONAL SOURCE PRODUCTION CREDIT- No
portion of the unused business credit for any taxable year which is
attributable to the credit under section 45J may be carried back to a
taxable year ending before April 1, 2003.'.
(D) Sections 43(b)(2), 45I(b)(2)(C) (as added by section 43001), and
613A(c)(6)(C) are each amended by striking `section 29(d)(2)(C)' and
inserting `section 45J(d)(2)(C)'.
(E) Paragraph (9) of section 45(c), as added by section 41002(c), is
amended by striking `section 29' and inserting `section 45J' and by
striking `SECTION 29' in the heading of such paragraph and inserting
`SECTION 45J'.
(F) Section 45I(d)(3), as added by section 43001, is amended by
striking `section 29' each place it appears and inserting `section
45J'.
(G) Section 45J(a), as amended by section 43001(d) and redesignated by
paragraph (1), is amended by striking `At the election of the taxpayer,
there shall be allowed as a credit against the tax imposed by this chapter
for the taxable year' and inserting `For purposes of section 38, if the
taxpayer elects to have this section apply, the nonconventional source
production credit determined under this section for the taxable year
is'.
(H) Section 45J(b), as so redesignated, is amended by striking
paragraph (6).
(I) Section 53(d)(1)(B)(iii) is amended by striking `under section 29'
and all that follows through `or not allowed'.
(J) Section 55(c)(2) is amended by striking `29(b)(6),'.
(K) Subsection (a) of section 772 is amended by inserting `and' at the
end of paragraph (9), by striking paragraph (10), and by redesignating
paragraph (11) as paragraph (10).
(L) Paragraph (5) of section 772(d) is amended by striking `the
foreign tax credit, and the credit allowable under section 29' and
inserting `and the foreign tax credit'.
(M) The table of sections for subpart B of part IV of subchapter A of
chapter 1 is amended by striking the item relating to section 29.
(N) The table of sections for subpart D of part IV of subchapter A of
chapter 1 is amended by inserting after the item relating to section 45I
the following new item:
`Sec. 45J. Credit for producing fuel from a nonconventional source.'.
(1) IN GENERAL- The amendment made by subsection (a) shall apply to fuel
sold after March 31, 2003, in taxable years ending after such date.
(2) TREATMENT AS BUSINESS CREDIT- The amendments made by subsection (b)
shall apply to taxable years ending after March 31, 2003.