,i #aacth ,,congress #b;d ,session ,h4 ,r4 #dgec ,,in ,,the ,,house ,,of ,,representatives ,may #bh1 #bjad ,mr4 ,mc,dermott 7for himself1 ,mr4 ,waxman1 ,mr4 ,larson of ,connecticut1 ,mr4 ,blumenauer1 and ,mr4 ,pascrell7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide incentives for clean energy and to repeal fossil fuel subsidies for big oil companies4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,investing to ,modernize the ,production of ,american ,clean ,energy and ,technology ,act of #bjad or as the ,,impact ,act of #bjad4 7b7 ,table of contents ,the table of contents of this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,title ,i--,clean energy incentives ,subtitle ,a--,renewable energy ,sec4 #aja4 ,extension of renewable energy credits4 ,sec4 #ajb4 ,extension of election of investment tax credit in lieu of production credit4 ,sec4 #ajc4 ,extension of qualifying advanced energy project credit4 ,sec4 #ajd4 ,extension of credit for energy-efficient new homes4 ,sec4 #aje4 ,extension of credit for energy-efficient appliances4 ,subtitle ,b--,electric1 natural gas1 and hydrogen vehicles ,sec4 #aaa4 ,increase and expansion of credit for qualified plug-in electric drive motor vehicles4 ,sec4 #aab4 ,extension of new qualified alternative fuel motor vehicle credit for heavy natural gas vehicles4 ,sec4 #aac4 ,modification of credit for alternative fuel vehicle refueling property for vehicles powered by electricity1 natural gas1 or hydrogen4 ,sec4 #aad4 ,electric1 natural gas1 and hydrogen vehicle refueling property tax credit bonds4 ,title ,,ii--,repeal of fossil fuel subsidies for big oil companies ,sec4 #bja4 ,prohibition on using last-in1 first-out accounting for major integrated oil companies4 ,sec4 #bjb4 ,modifications of foreign tax credit rules applicable to major integrated oil companies which are dual capacity taxpayers4 ,sec4 #bjc4 ,limitation on section #aii deduction attributable to oil1 natural gas1 or primary products thereof4 ,sec4 #bjd4 ,limitation on deduction for intangible drilling and development costs4 ,sec4 #bje4 ,limitation on percentage depletion allowance for oil and gas wells4 ,sec4 #bjf4 ,limitation on deduction for tertiary injectants4 ,i ,clean energy incentives ,a ,renewable energy #aja4 ,extension of renewable energy credits 7a7 ,wind1 biomass1 geothermal1 small irrigation1 landfill gas1 hydropower1 marine1 and hydrokinetic ,each of the following provisions of section #de7;d7 of such ,code is amended by striking ,january #a1 #bjad each place it appears and inserting ,january #a1 #bjbd3 7#a7 ,paragraph 7#a74 7#b7 ,clauses 7i7 and 7ii7 of paragraph 7#b77;,a74 7#c7 ,clauses 7i77,i7 and 7ii7 of paragraph 7#c77;,a74 7#d7 ,paragraph 7#d74 7#e7 ,paragraph 7#f74 7#f7 ,subparagraphs 7,a7 and 7,c7 of paragraph 7#i74 7#g7 ,subparagraph 7,b7 of paragraph 7#aa74 7b7 ,early termination in event of ,federal renewable electricity requirement ,subsection 7d7 of section #de of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#ab7 ,termination in event of ,federal renewable electricity requirement ,notwithstanding any other provision of this section1 the term qualified facility shall not include any property which is placed in service after the date which is #a year after the date on which the ,secretary of ,energy makes a public declaration that a ,federal law is in effect which requires retail electric suppliers in the ,united ,states to supply minimum and significant amounts of electric energy which is generated from renewable sources to customers for purposes other than resale4 4 #ajb4 ,extension of election of investment tax credit in lieu of production credit 7a7 ,in general ,clause 7ii7 of section #dh7;a77#e77;,c7 of the ,internal ,revenue ,code of #aihf is amended by striking ,january #a1 #bjad and inserting ,january #a1 #bjbd4 7b7 ,limitation ,paragraph 7#e7 of section #dh7;a7 of such ,code is amended by adding at the end the following new subparagraphs3 7,e7 ,limitation ,in the case of a qualifying offshore wind facility to which this paragraph applies and the total megawatt nameplate capacity of which exceeds #c1jjj megawatts1 the basis which would 7but for this subparagraph7 be taken into account under subsection 7a7 with respect to such facility shall not exceed the amount which bears the same ratio to such basis as-- 7i7 #cjjj megawatts1 bears to 7ii7 the total megawatt nameplate capacity of such facility4 7,f7 ,qualifying offshore wind facility ,for purposes of this paragraph-- 7i7 ,in general ,the term qualifying offshore wind facility means an offshore facility using wind to produce electricity4 7ii7 ,offshore facility ,the term offshore facility means any facility located in the inland navigable waters of the ,united ,states1 including the ,great ,lakes1 or in the coastal waters of the ,united ,states1 including the territorial seas of the ,united ,states1 the exclusive economic zone of the ,united ,states1 and the ,outer ,continental ,shelf of the ,united ,states4 ,for purposes of the preceding sentence1 the term ,united ,states has the meaning given in section #fch7a74 4 7c7 ,effective date ,the amendments made by this section shall apply to facilities placed in service after ,december #ca1 #bjac4 #ajc4 ,extension of qualifying advanced energy project credit ,paragraph 7#a7 of section #dh;,c7d7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,c7 ,additional limitation amount 7i7 ,in general ,the total amount of credits that may be allocated under the program shall be increased by #e1jjj1jjj1jjj4 7ii7 ,applications ,notwithstanding the deadline for submitting applications specified in paragraph 7#b77;,a71 an applicant for certification with respect to credits allocated pursuant to clause 7i7 may submit an application to the ,secretary at such time and in such manner as the ,secretary may provide4 7iii7 ,review1 redistribution1 and reallocation ,notwithstanding the deadline for review specified in paragraph 7#d77;,a71 the ,secretary shall review the credits allocated pursuant to clause 7i7 at such time as the ,secretary determines appropriate4 4 #ajd4 ,extension of credit for energy-efficient new homes 7a7 ,in general ,subsection 7g7 of section #de,l of the ,internal ,revenue ,code of #aihf is amended by striking ,december #ca1 #bjac and inserting ,december #ca1 #bjaf4 7b7 ,effective date ,the amendment made by this section shall apply to homes acquired after ,december #ca1 #bjac4 #aje4 ,extension of credit for energy-efficient appliances 7a7 ,in general ,section #de,m7b7 of the ,internal ,revenue ,code of #aihf is amended by striking or #bjac each place it appears and inserting #bjac1 #bjad1 #bjae1 or #bjaf4 7b7 ,effective date ,the amendments made by this section shall apply to appliances produced after ,december #ca1 #bjac4 ,b ,electric1 natural gas1 and hydrogen vehicles #aaa4 ,increase and expansion of credit for qualified plug-in electric drive motor vehicles 7a7 ,increase in dollar limitation ,paragraph 7#b7 of section #cj;,d7b7 of the ,internal ,revenue ,code of #aihf is amended by striking #b1ejj and inserting #e1jjj4 7b7 ,increase in limitation on number of vehicles eligible for credit ,paragraph 7#b7 of section #cj;,d7e7 of such ,code is amended by striking #bjj1jjj and inserting #djj1jjj4 7c7 ,effective date ,the amendment made by this section shall apply to vehicles acquired after the date of the enactment of this ,act4 #aab4 ,extension of new qualified alternative fuel motor vehicle credit for heavy natural gas vehicles 7a7 ,in general ,paragraph 7#d7 of section #cj;,b7k7 of the ,internal ,revenue ,code of #aihf is amended by inserting 7,december #ca1 #bjah1 in the case of a vehicle powered by compressed or liquefied natural gas and weighing more than #h1ejj pounds7 before the period at the end4 7b7 ,effective date ,the amendment made by this section shall apply to vehicles purchased after the date of the enactment of this ,act4 #aac4 ,modification of credit for alternative fuel vehicle refueling property for vehicles powered by electricity1 natural gas1 or hydrogen 7a7 ,special ,rules for ,property ,placed in ,service ,before ,january #a1 #bjba ,subsection 7e7 of section #cj;,c of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#g7 ,property for recharging vehicles powered by electricity1 natural gas1 or hydrogen ,in the case of property placed in service after ,december #ca1 #bjac1 and before ,january #a1 #bjba1 which relates to electricity1 natural gas1 or hydrogen-- 7,a7 subsection 7a7 shall be applied by substituting #ej percent for #cj percent1 7,b7 subsection 7b77#a7 shall be applied by substituting #ej1jjj for #cj1jjj1 and 7,c7 subsection 7b77#b7 shall be applied by substituting #b1jjj for #a1jjj4 4 7b7 ,installation ,costs ,subsection 7e7 of section #cj;,c of such ,code1 as amended by subsection 7a71 is amended by adding at the end the following3 7#h7 ,installation costs ,the cost of any qualified alternative fuel vehicle refueling property which relates to electricity1 natural gas1 or hydrogen shall include the cost of the original installation of such property4 4 7c7 ,termination of ,credit ,paragraph 7#a7 of section #cj;,c7g7 of such ,code is amended to read as follows3 7#a7 in the case of property relating to electricity1 natural gas1 or hydrogen1 after ,december #ca1 #bjbj1 and 4 7d7 ,effective ,date ,the amendments made by this section shall apply to property placed in service after ,december #ca1 #bjac4 #aad4 ,electric1 natural gas1 and hydrogen vehicle refueling property tax credit bonds 7a7 ,in ,general ,paragraph 7#a7 of section #ed;,a7d7 of the ,internal ,revenue ,code of #aihf is amended by striking or at the end of subparagraph 7,d71 by inserting or at the end of subparagraph 7,e71 and by inserting after subparagraph 7,e7 the following new subparagraph3 7,f7 a qualified electric1 natural gas1 and hydrogen vehicle refueling property bond1 4 7b7 ,qualified ,purpose ,subparagraph 7,c7 of section #ed;,a7d77#b7 of such ,code is amended by striking and at the end of clause 7iv71 by striking the period at the end of clause 7v7 and inserting 1 and1 and by adding at the end the following new clause3 7vi7 in the case of a qualified electric1 natural gas1 and hydrogen vehicle refueling property bond1 a purpose specified in section #ed;,g7a77#a74 4 7c7 ,bonds ,allowed ,subpart ,i of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by adding at the end the following new section3 #ed;,g4 ,qualified electric1 natural gas1 and hydrogen vehicle refueling property bonds 7a7 ,qualified ,electric1 ,natural ,gas1 and ,hydrogen ,vehicle ,refueling ,property ,bond ,for purposes of this subpart1 the term qualified electric1 natural gas1 and hydrogen vehicle refueling property bond means any bond issued as part of an issue if-- 7#a7 #ajj percent of the available project proceeds of such issue are to be used for capital expenditures incurred by a qualified issuer for #a or more qualified electric1 natural gas1 and hydrogen vehicle refueling properties1 7#b7 the bond is issued by a qualified issuer1 and 7#c7 the issuer designates such bond for purposes of this section4 7b7 ,reduced ,credit ,amount ,notwithstanding paragraph 7#b7 of section #ed;,a7b71 the annual credit determined with respect to any qualified electric1 natural gas1 and hydrogen vehicle refueling property bond is #gj percent of the amount which would 7but for this subsection7 otherwise be determined under such paragraph with respect to such bond4 7c7 ,limitation on ,amount of ,bonds ,designated ,the maximum aggregate face amount of bonds which may be designated under subsection 7a7 by any issuer shall not exceed the limitation amount allocated to such issuer under subsection 7e74 7d7 ,national ,limitation on ,amount of ,bonds ,designated ,there is a national qualified electric1 natural gas1 and hydrogen vehicle refueling property bond limitation of #gej1jjj1jjj4 7e7 ,allocations ,the ,secretary shall make allocations of the amount of the national qualified electric1 natural gas1 and hydrogen vehicle refueling property bond limitation described in subsection 7d7 among purposes described in subsection 7a77#a7 in such manner as the ,secretary determines appropriate4 7f7 ,definitions ,for purposes of this section-- 7#a7 ,qualified electric1 natural gas1 and hydrogen vehicle refueling property ,the term qualified electric1 natural gas1 and hydrogen vehicle refueling property means any qualified alternative fuel vehicle refueling property 7within the meaning of section #cj;,c7 which relates to electricity1 natural gas1 or hydrogen4 7#b7 ,qualified issuer 7,a7 ,in general ,the term qualified issuer means a public power provider1 a cooperative electric company1 or a governmental body4 7,b7 ,governmental body ,the term governmental body means any ,state or ,indian tribal government1 or any political subdivision thereof4 7,c7 ,public power provider ,the term public power provider means a ,state utility that has a service obligation to end-users or to a distribution utility 7within the meaning of section #bag of the ,federal ,power ,act1 as in effect on the date of the enactment of this section74 7,d7 ,cooperative electric company ,the term cooperative electric company means a mutual or cooperative electric company described in section #eja7;c77#ab7 or an organization described in section #acha7;a77#b77;,c74 4 7d7 ,clerical ,amendment ,the table of sections for subpart ,i of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new item3 ,sec4 #ed;,g4 ,qualified electric1 natural gas1 and hydrogen vehicle refueling property bonds4 4 7e7 ,effective ,date ,the amendments made by this section shall apply to obligations issued after the date of the enactment of this ,act4 ,,ii ,repeal of fossil fuel subsidies for big oil companies #bja4 ,prohibition on using last-in1 first-out accounting for major integrated oil companies 7a7 ,in general ,section #dgb of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7h7 ,major integrated oil companies ,notwithstanding any other provision of this section1 a major integrated oil company 7as defined in section #afg7;h77#e77;,b77 may not use the method provided in subsection 7b7 in inventorying of any goods4 4 7b7 ,effective date and special rule 7#a7 ,in general ,the amendment made by subsection 7a7 shall apply to taxable years beginning after the date of the enactment of this ,act4 7#b7 ,change in method of accounting ,in the case of any taxpayer required by the amendment made by this section to change its method of accounting for its first taxable year beginning after the date of the enactment of this ,act-- 7,a7 such change shall be treated as initiated by the taxpayer1 7,b7 such change shall be treated as made with the consent of the ,secretary of the ,treasury1 and 7,c7 the net amount of the adjustments required to be taken into account by the taxpayer under section #dha of the ,internal ,revenue ,code of #aihf shall be taken into account ratably over a period 7not greater than #h taxable years7 beginning with such first taxable year4 #bjb4 ,modifications of foreign tax credit rules applicable to major integrated oil companies which are dual capacity taxpayers 7a7 ,in general ,section #ija of the ,internal ,revenue ,code of #aihf is amended by redesignating subsection 7n7 as subsection 7o7 and by inserting after subsection 7m7 the following new subsection3 7n7 ,special rules relating to major integrated oil companies which are dual capacity taxpayers 7#a7 ,general rule ,notwithstanding any other provision of this chapter1 any amount paid or accrued by a dual capacity taxpayer which is a major integrated oil company 7as defined in section #afg7;h77#e77;,b77 to a foreign country or possession of the ,united ,states for any period shall not be considered a tax-- 7,a7 if1 for such period1 the foreign country or possession does not impose a generally applicable income tax1 or 7,b7 to the extent such amount exceeds the amount 7determined in accordance with regulations7 which-- 7i7 is paid by such dual capacity taxpayer pursuant to the generally applicable income tax imposed by the country or possession1 or 7ii7 would be paid if the generally applicable income tax imposed by the country or possession were applicable to such dual capacity taxpayer4 ,nothing in this paragraph shall be construed to imply the proper treatment of any such amount not in excess of the amount determined under subparagraph 7,b74 7#b7 ,dual capacity taxpayer ,for purposes of this subsection1 the term dual capacity taxpayer means1 with respect to any foreign country or possession of the ,united ,states1 a person who-- 7,a7 is subject to a levy of such country or possession1 and 7,b7 receives 7or will receive7 directly or indirectly a specific economic benefit 7as determined in accordance with regulations7 from such country or possession4 7#c7 ,generally applicable income tax ,for purposes of this subsection-- 7,a7 ,in general ,the term generally applicable income tax means an income tax 7or a series of income taxes7 which is generally imposed under the laws of a foreign country or possession on income derived from the conduct of a trade or business within such country or possession4 7,b7 ,exceptions ,such term shall not include a tax unless it has substantial application1 by its terms and in practice1 to-- 7i7 persons who are not dual capacity taxpayers1 and 7ii7 persons who are citizens or residents of the foreign country or possession4 4 7b7 ,effective ,date 7#a7 ,in general ,the amendments made by this section shall apply to taxes paid or accrued in taxable years beginning after the date of the enactment of this ,act4 7#b7 ,contrary treaty obligations upheld ,the amendments made by this section shall not apply to the extent contrary to any treaty obligation of the ,united ,states4 #bjc4 ,limitation on section #aii deduction attributable to oil1 natural gas1 or primary products thereof 7a7 ,denial of deduction ,paragraph 7#d7 of section #aii7;c7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,e7 ,special rule for certain oil and gas income ,in the case of any taxpayer who is a major integrated oil company 7as defined in section #afg7;h77#e77;,b77 for the taxable year1 the term domestic production gross receipts shall not include gross receipts from the production1 transportation1 or distribution of oil1 natural gas1 or any primary product 7within the meaning of subsection 7d77#i77 thereof4 4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjac4 #bjd4 ,limitation on deduction for intangible drilling and development costs 7a7 ,in general ,section #bfc7;c7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new sentence3 ,this subsection shall not apply to amounts paid or incurred by a taxpayer in any taxable year in which such taxpayer is a major integrated oil company 7as defined in section #afg7;h77#e77;,b7744 7b7 ,effective date ,the amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after ,december #ca1 #bjac4 #bje4 ,limitation on percentage depletion allowance for oil and gas wells 7a7 ,in general ,section #fac;,a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7f7 ,application with respect to major integrated oil companies ,in the case of any taxable year in which the taxpayer is a major integrated oil company 7as defined in section #afg7;h77#e77;,b771 the allowance for percentage depletion shall be zero4 4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjac4 #bjf4 ,limitation on deduction for tertiary injectants 7a7 ,in general ,section #aic of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7d7 ,application with respect to major integrated oil companies ,this section shall not apply to amounts paid or incurred by a taxpayer in any taxable year in which such taxpayer is a major integrated oil company 7as defined in section #afg7;h77#e77;,b774 4 7b7 ,effective date ,the amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after ,december #ca1 #bjac4