,i #aadth ,,congress #ast ,session ,h4 ,r4 #djdj ,,in ,,the ,,house ,,of ,,representatives ,november #ag1 #bjae ,mr4 ,blumenauer 7for himself1 ,ms4 ,edwards1 ,mr4 ,mc,dermott1 ,mr4 ,pascrell1 ,mr4 ,honda1 ,mr4 ,van ,hollen1 ,ms4 ,mc,collum1 ,mr4 ,lowenthal1 ,mr4 ,ted ,lieu of ,california1 ,mr4 ,higgins1 ,mr4 ,neal1 ,ms4 ,linda ,t4 ,snchez of ,california1 ,ms4 ,lee1 ,mr4 ,quigley1 ,mr4 ,cartwright1 ,ms4 ,norton1 ,mr4 ,rangel1 ,mr4 ,huffman1 and ,mr4 ,grijalva7 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 modify and extend certain tax incentives relating to energy4 #a4 ,short title1 etc 7a7 ,short title ,this ,act may be cited as the ,bridge to a ,clean ,energy ,future ,act of #bjae4 7b7 ,amendment of #aihf ,code ,except as otherwise expressly provided1 whenever in this ,act an amendment or repeal is expressed in terms of an amendment to1 or repeal of1 a section or other provision1 the reference shall be considered to be made to a section or other provision of the ,internal ,revenue ,code of #aihf4 7c7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title1 etc4 ,title ,i--,extension and ,modification of ,energy ,tax ,provisions ,sec4 #aja4 ,extension and modification of credit for nonbusiness energy property4 ,sec4 #ajb4 ,extension of credit for new qualified fuel cell motor vehicles4 ,sec4 #ajc4 ,extension of credit for alternative fuel vehicle refueling property4 ,sec4 #ajd4 ,extension of second generation biofuel producer credit4 ,sec4 #aje4 ,extension and reform of biodiesel tax incentives4 ,sec4 #ajf4 ,extension of credits with respect to facilities producing energy from certain renewable resources4 ,sec4 #ajg4 ,extension of credit for energy-efficient new homes4 ,sec4 #ajh4 ,extension of special allowance for second generation biofuel plant property4 ,sec4 #aji4 ,extension and modification of energy efficient commercial buildings deduction4 ,sec4 #aaj4 ,extension of special rule for sales or dispositions to implement ,,ferc or ,state electric restructuring policy for qualified electric utilities4 ,sec4 #aaa4 ,extension of excise tax credits relating to alternative fuels4 ,title ,,ii--,additional ,provisions ,sec4 #bja4 ,extension of energy credit for certain property under construction4 ,sec4 #bjb4 ,modifications in credit for combined heat and power system property4 ,sec4 #bjc4 ,energy credit for waste heat to power property4 ,sec4 #bjd4 ,investment tax credit for community wind projects having generation capacity of not more than #bj megawatts4 ,sec4 #bje4 ,extension of publicly traded partnership ownership structure to energy power generation projects1 transportation fuels1 and related energy activities4 ,sec4 #bjf4 ,additional advanced energy manufacturing credit allocations4 ,title ,,iii--,ending ,oil and ,gas ,tax ,subsidies ,sec4 #cja4 ,amortization of geological and geophysical expenditures4 ,sec4 #cjb4 ,producing oil and gas from marginal wells4 ,sec4 #cjc4 ,enhanced oil recovery credit4 ,sec4 #cjd4 ,intangible drilling and development costs in the case of oil and gas wells4 ,sec4 #cje4 ,repeal of percentage depletion for oil and gas wells4 ,sec4 #cjf4 ,repeal of deduction for tertiary injectants4 ,sec4 #cjg4 ,repeal of exception to passive loss limitations for working interests in oil and gas properties4 ,sec4 #cjh4 ,deduction for income attributable to domestic production activities not allowed with respect to oil and gas activities4 ,sec4 #cji4 ,prohibition on using last-in1 first-out accounting for oil and gas companies4 ,sec4 #caj4 ,modifications of foreign tax credit rules applicable to dual capacity taxpayers4 ,i ,extension and ,modification of ,energy ,tax ,provisions #aja4 ,extension and modification of credit for nonbusiness energy property 7a7 ,in general ,paragraph 7#b7 of section #be;,c7g7 is amended by striking ,december #ca1 #bjad and inserting ,december #ca1 #bjaf4 7b7 ,updated ,energy ,star requirements for windows1 doors1 skylights1 and roofing 7#a7 ,in general ,paragraph 7#a7 of section #be;,c7c7 is amended by striking which meets and all that follows through requirements74 7#b7 ,energy efficient building envelope component ,subsection 7c7 of section #be;,c is amended by redesignating paragraphs 7#b7 and 7#c7 as paragraphs 7#c7 and 7#d71 respectively1 and by inserting after paragraph 7#a7 the following new paragraph3 7#b7 ,energy efficient building envelope component ,the term energy efficient building envelope component means a building envelope component which meets-- 7,a7 applicable ,energy ,star program requirements1 in the case of a roof or roof products1 7,b7 version #f4j ,energy ,star program requirements1 in the case of an exterior window1 a skylight1 or an exterior door1 and 7,c7 the prescriptive criteria for such component established by the #bjji ,international ,energy ,conservation ,code1 as such ,code 7including supplements7 is in effect on the date of the enactment of the ,american ,recovery and ,reinvestment ,tax ,act of #bjji1 in the case of any other component4 4 7#c7 ,conforming amendment ,subparagraph 7,d7 of section #be;,c7c77#c71 as so redesignated1 is amended to read as follows3 7,d7 any roof or roof products which are installed on a dwelling unit and are specifically and primarily designed to reduce the heat gain of such dwelling unit4 4 7c7 ,separate standards for tankless and storage water heaters 7#a7 ,in general ,subparagraph 7,d7 of section #be;,c7d77#c7 is amended by striking which has either and all that follows and inserting 8which has either-- 7i7 in the case of a storage water heater1 an energy factor of at least #j4hj or a thermal efficiency of at least #ij percent1 and 7ii7 in the case of any other water heater1 an energy factor of at least #j4ij or a thermal efficiency of at least #ij percent1 and 4 7#b7 ,storage water heaters ,paragraph 7#c7 of section #be;,c7d7 is amended by adding at the end the following flush sentence3 ,for purposes of subparagraph 7,d77i71 the term storage water heater means a water heater that has a water storage capacity of more than #bj gallons but not more than #ee gallons4 4 7d7 ,modification of testing standards for biomass stoves ,subparagraph 7,e7 of section #be;,c7d77#c7 is amended by inserting before the period the following3 1 when tested using the higher heating value of the fuel and in accordance with the ,canadian ,standards ,administration ,b#dae4a test protocol4 7e7 ,separate standard for oil hot water boilers ,paragraph 7#d7 of section #be;,c7d7 is amended by striking #ie and inserting #ie 7#ij in the case of an oil hot water boiler74 7f7 ,installation costs for qualified energy efficiency improvements ,paragraph 7#a7 of subsection 7c7 of section #be;,c is amended by adding at the end the following flush sentence3 ,such term includes expenditures for labor costs properly allocable to the onsite preparation1 assembly1 or original installation of the component4 4 7g7 ,effective date ,the amendments made by this section shall apply to property placed in service after ,december #ca1 #bjad4 #ajb4 ,extension of credit for new qualified fuel cell motor vehicles 7a7 ,in general ,paragraph 7#a7 of section #cj;,b7k7 is amended by striking ,december #ca1 #bjad and inserting ,december #ca1 #bjaf4 7b7 ,effective date ,the amendment made by this section shall apply to property purchased after ,december #ca1 #bjad4 #ajc4 ,extension of credit for alternative fuel vehicle refueling property 7a7 ,in general ,subsection 7g7 of section #cj;,c is amended by striking ,december #ca1 #bjad and inserting ,december #ca1 #bjaf4 7b7 ,effective date ,the amendment made by this section shall apply to property placed in service after ,december #ca1 #bjad4 #ajd4 ,extension of second generation biofuel producer credit 7a7 ,in general ,clause 7i7 of section #dj7;b77#f77;,j7 is amended by striking ,january #a1 #bjae and inserting ,january #a1 #bjag4 7b7 ,effective date ,the amendment made by this subsection shall apply to qualified second generation biofuel production after ,december #ca1 #bjad4 #aje4 ,extension and reform of biodiesel tax incentives 7a7 ,income tax credit 7#a7 ,extension 7,a7 ,credits for biodiesel and renewable diesel used as fuel ,subsection 7g7 of section #dj;,a is amended by striking ,december #ca1 #bjad and inserting ,december #ca1 #bjaf4 7,b7 ,effective date ,the amendment made by this paragraph shall apply to fuel sold or used after ,december #ca1 #bjad4 7#b7 ,reform of income tax credit 7,a7 ,in general ,so much of section #dj;,a as precedes subsection 7c7 is amended to read as follows3 #dj;,a4 ,biodiesel fuels credit 7a7 ,in general ,for purposes of section #ch1 in the case of an eligible taxpayer1 the biodiesel fuels credit determined under this section for the taxable year is #a4jj for each gallon of biodiesel produced by the taxpayer which during the taxable year-- 7#a7 is sold by the producer of such biodiesel to another person-- 7,a7 for use by such other person's trade or business as a fuel or in the production of a biodiesel mixture 7other than casual off-farm production71 or 7,b7 who sells such biodiesel at retail to another person and places such biodiesel in the fuel tank of such other person1 or 7#b7 is used by such producer for any purpose described in paragraph 7#a74 7b7 ,increased credit for small producers 7#a7 ,in general ,in the case of any eligible small biodiesel producer1 subsection 7a7 shall be applied by increasing the dollar amount contained therein by #aj cents4 7#b7 ,limitation ,paragraph 7#a7 shall only apply with respect to the first #ae1jjj1jjj gallons of biodiesel produced by any eligible small biodiesel producer during any taxable year4 4 7,b7 ,definitions and special rules ,section #dj;,a7d7 is amended by striking all that follows paragraph 7#a7 and inserting the following3 7#b7 ,eligible taxpayer 7,a7 ,in general ,the term eligible taxpayer means1 with respect to any gallon of biodiesel1 the producer of such gallon if such producer has paid the tax imposed by section #djha on such biodiesel4 7,b7 ,special rule for eligible discretionary blenders ,for purposes of this section 7other than subsection 7b771 an eligible discretionary blender shall be treated as the producer of any gallon of biodiesel which is used to make a qualified biodiesel mixture if-- 7i7 the producer of such biodiesel 7determined without regard to this subparagraph7-- 7,i7 did not pay the tax imposed under section #djha with respect to such gallon1 and 7,,ii7 assigns the credit allowed under this section to the eligible discretionary blender in such form and manner as provided by the ,secretary1 and 7ii7 such eligible discretionary blender pays the tax imposed under section #djha with respect to such gallon4 ,for purposes of the preceding sentence1 an eligible discretionary blender shall be treated as producing a gallon of biodiesel in the taxable year in which the sale or use of the qualified biodiesel mixture occurs4 7,c7 ,eligible discretionary blender ,for purposes of subparagraph 7,b71 the term eligible discretionary blender means any person who-- 7i7 is registered under section #daja as a blender of qualified biodiesel mixtures1 and 7ii7 has used #aj1jjj1jjj or more gallons of biodiesel in the production of qualified biodiesel mixtures in the preceding taxable year4 7#c7 ,biodiesel mixture2 qualified biodiesel mixture 7,a7 ,biodiesel mixture ,the term biodiesel mixture means a mixture which consists of biodiesel and diesel fuel 7as defined in section #djhc7;a77#c771 determined without regard to any use of kerosene4 7,b7 ,qualified biodiesel mixture 7i7 ,in general ,the term qualified biodiesel mixture means a biodiesel mixture which is produced by an eligible discretionary blender and-- 7,i7 sold by such eligible discretionary blender to any person for use as a fuel1 or 7,,ii7 used by such eligible discretionary blender as a fuel4 7ii7 ,sale or use must be in trade or business1 etc ,a biodiesel mixture shall not be treated as a qualified biodiesel mixture unless the sale or use described in clause 7i7 is in a trade or business of the eligible discretionary blender4 7#d7 ,biodiesel not used for a qualified purpose ,if-- 7,a7 any credit was determined with respect to any biodiesel under this section1 and 7,b7 any person uses such biodiesel for a purpose not described in subsection 7a71 then there is hereby imposed on such person a tax equal to the product of the rate applicable under subsection 7a7 and the number of gallons of such biodiesel4 7#e7 ,pass-thru in the case of estates and trusts ,under regulations prescribed by the ,secretary1 rules similar to the rules of subsection 7d7 of section #eb shall apply4 7#f7 ,limitation to biodiesel with connection to the united states ,no credit shall be determined under subsection 7a7 with respect to biodiesel unless such biodiesel is produced in the ,united ,states4 ,for purposes of this paragraph1 the term ,united ,states includes any possession of the ,united ,states4 4 7,c7 ,rules for small biodiesel producers 7i7 ,in general ,section #dj;,a7e7 is amended-- 7,i7 by striking agri-biodiesel each place it appears in paragraphs 7#a7 and 7#e77;,a7 and inserting biodiesel1 7,,ii7 by striking subsection 7b77#d77;,c7 each place it appears in paragraphs 7#b7 and 7#c7 and inserting subsection 7b77#b71 and 7,,iii7 by striking subsection 7a77#c7 each place it appears in paragraphs 7#e77;,a71 7#f77;,a77i71 and 7#f77;,b77i7 and inserting subsection 7b74 7ii7 ,the heading for subsection 7e7 of section #dj;,a is amended by striking agri-biodiesel and inserting biodiesel4 7iii7 ,the headings for paragraphs 7#a7 and 7#f7 of section #dj;,a7e7 are each amended by striking agri-biodiesel and inserting biodiesel4 7,d7 ,conforming amendments related to renewable diesel ,section #dj;,a7f7 is amended-- 7i7 by striking ,subsection 7b77#d7 and inserting ,subsection 7b71 and 7ii7 by striking paragraph 7#d7 and inserting the following3 7#d7 ,certain aviation fuel ,except as provided in the last #c sentences of paragraph 7#c71 the term renewable diesel shall include fuel derived from biomass which meets the requirements of a ,department of ,defense specification for military jet fuel or an ,american ,society for ,testing and ,materials specification for aviation turbine fuel4 4 7,e7 ,registration of eligible discretionary blenders ,section #daja7;a77#a7 is amended-- 7i7 by striking and before every person producing second generation biofuel1 and 7ii7 by inserting 1 and every person producing qualified biodiesel mixtures 7as defined in section #dj;,a7d77#c77 #aj1jjj1jjj or more gallons per year after section #dj7;b77#f77;,e774 7,f7 ,clerical amendment ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a is amended by striking the item relating to section #dj;,a and inserting the following new item3 ,sec4 #dj;,a4 ,biodiesel fuels credit4 4 7,g7 ,effective date ,the amendments made by this paragraph shall apply to fuel sold or used after ,december #ca1 #bjae4 7b7 ,excise tax incentives 7#a7 ,extension 7,a7 ,in general ,paragraph 7#f7 of section #fdbf7;c7 is amended by striking ,december #ca1 #bjad and inserting ,december #ca1 #bjaf4 7,b7 ,payments ,subparagraph 7,b7 of section #fdbg7;e77#f7 is amended by striking ,december #ca1 #bjad and inserting ,december #ca1 #bjaf4 7,c7 ,effective date ,the amendments made by this paragraph shall apply to fuel sold or used after ,december #ca1 #bjad4 7,d7 ,special rule for certain periods during #bjae ,notwithstanding any other provision of law1 in the case of any biodiesel mixture credit properly determined under section #fdbf7;c7 of the ,internal ,revenue ,code of #aihf for periods after ,december #ca1 #bjad1 and on or before the last day of the first calendar quarter ending after the date of the enactment of this ,act1 such credit shall be allowed1 and any refund or payment attributable to such credit 7including any payment under section #fdbg7;e7 of such ,code7 shall be made1 only in such manner as the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall provide4 ,such ,secretary shall issue guidance within #cj days after the date of the enactment of this ,act providing for a one-time submission of claims covering periods described in the preceding sentence4 ,such guidance shall provide for a #ahj-;day period for the submission of such claims 7in such manner as prescribed by such ,secretary7 to begin not later than #cj days after such guidance is issued4 ,such claims shall be paid by such ,secretary not later than #fj days after receipt4 ,if such ,secretary has not paid pursuant to a claim filed under this subsection within #fj days after the date of the filing of such claim1 the claim shall be paid with interest from such date determined by using the overpayment rate and method under section #ffba of such ,code4 7#b7 ,reform of excise tax credit 7,a7 ,in general ,subsection 7c7 of section #fdbf is amended-- 7i7 by striking all that precedes paragraph 7#f7 and inserting the following3 7c7 ,biodiesel production credit 7#a7 ,in general ,for purposes of this section1 in the case of an eligible taxpayer1 the biodiesel production credit is #a4jj for each gallon of biodiesel produced by the taxpayer and which-- 7,a7 is sold by such producer to another person-- 7i7 for use by such other person's trade or business as a fuel or in the production of a biodiesel mixture 7other than casual off-farm production71 or 7ii7 who sells such biodiesel at retail to another person and places such biodiesel in the fuel tank of such other person1 or 7,b7 is used by such producer for any purpose described in subparagraph 7,a74 7#b7 ,special rule for eligible discretionary blenders ,for purposes of this subsection and section #fdbg7;e77#c71 an eligible discretionary blender shall be treated as the producer of any gallon of biodiesel which is used to make a qualified biodiesel mixture if-- 7,a7 the producer of such biodiesel 7determined without regard to this subparagraph7-- 7i7 did not pay the tax imposed under section #djha with respect to such gallon1 and 7ii7 assigns the credit allowed under this section to the eligible discretionary blender in such form and manner as provided by the ,secretary1 and 7,b7 such eligible discretionary blender pays the tax imposed under section #djha with respect to such gallon4 ,for purposes of the preceding sentence1 an eligible discretionary blender shall not be treated as producing a gallon of biodiesel before the date on which the sale or use of the qualified biodiesel mixture occurs4 7#c7 ,definitions ,any term used in this subsection which is also used in section #dj;,a shall have the meaning given such term by section #dj;,a4 1 and 7ii7 by redesignating paragraph 7#f71 as amended by paragraph 7#a77;,a71 as paragraph 7#d74 7,b7 ,producer registration requirement ,subsection 7a7 of section #fdbf is amended by striking subsections 7d7 and 7e7 in the flush sentence at the end and inserting subsections 7c71 7d71 and 7e74 7,c7 ,recapture 7i7 ,in general ,subsection 7f7 of section #fdbf is amended-- 7,i7 by striking or biodiesel each place it appears in subparagraphs 7,a7 and 7,b77i7 of paragraph 7#a71 7,,ii7 by striking or biodiesel mixture in paragraph 7#a77;,a71 and 7,,iii7 by redesignating paragraph 7#b7 as paragraph 7#c7 and by inserting after paragraph 7#a7 the following new paragraph3 7#b7 ,biodiesel ,if any credit was determined under this section or paid pursuant to section #fdbg7;e7 with respect to the production of any biodiesel and any person uses such biodiesel for a purpose not described in subsection 7c77#a71 then there is hereby imposed on such person a tax equal to #a for each gallon of such biodiesel4 4 7ii7 ,conforming amendments 7,i7 ,paragraph 7#c7 of section #fdbf7;f71 as redesignated by clause 7i77,,iii71 is amended by inserting or 7#b7 after paragraph 7#a74 7,,ii7 ,the heading for paragraph 7#a7 of section #fdbf7;f7 is amended by striking ,imposition of tax and inserting ,in general4 7,d7 ,limitation ,section #fdbf7;i7 is amended-- 7i7 in paragraph 7#b7-- 7,i7 by striking biodiesel or1 and 7,,ii7 by striking ,biodiesel and in the heading1 and 7ii7 by inserting after paragraph 7#b7 the following new paragraph3 7#c7 ,biodiesel ,no credit shall be determined under this section with respect to biodiesel unless such biodiesel is produced in the ,united ,states4 4 7,e7 ,clerical amendments 7i7 ,the heading of section #fdbf is amended by striking alcohol fuel1 biodiesel1 and alternative fuel mixtures and inserting alcohol fuel mixtures1 biodiesel production1 and alternative fuel mixtures4 7ii7 ,the item relating to section #fdbf in the table of sections for subchapter ,b of chapter #fe is amended by striking alcohol fuel1 biodiesel1 and alternative fuel mixtures and inserting alcohol fuel mixtures1 biodiesel production1 and alternative fuel mixtures4 7,f7 ,effective date ,the amendments made by this paragraph shall apply to fuel sold or used after ,december #ca1 #bjae4 7#c7 ,reform of excise payments of credit 7,a7 ,in general ,subsection 7e7 of section #fdbg1 as amended by paragraph 7#a77;,b71 is amended-- 7i7 by striking or the biodiesel mixture credit in paragraph 7#a71 7ii7 by redesignating paragraphs 7#c7 through 7#f7 as paragraphs 7#d7 through 7#g71 respectively1 and by inserting after paragraph 7#b7 the following new paragraph3 7#c7 ,biodiesel production credit ,if any person produces biodiesel and sells or uses such biodiesel as provided in section #fdbf7;c77#a71 the ,secretary shall pay 7without interest7 to such person an amount equal to the biodiesel production credit with respect to such biodiesel4 1 7iii7 by striking paragraph 7#a7 or 7#b7 each place it appears in paragraphs 7#d7 and 7#f71 as redesignated by paragraph 7#b71 and inserting paragraph 7#a71 7#b71 or 7#c71 7iv7 by striking alternative fuel each place it appears in paragraphs 7#d7 and 7#f71 as redesignated by paragraph 7#b71 and inserting fuel1 and 7v7 by striking biodiesel mixture 7as defined in section #fdbf7;c77#c77 in paragraph 7#g77;,b71 as so redesignated1 and inserting biodiesel 7within the meaning of section #dj;,a74 7,b7 ,effective date ,the amendments made by this paragraph shall apply to fuel sold or used after ,december #ca1 #bjae4 7c7 ,treatment of biodiesel as a taxable fuel 7#a7 ,in general 7,a7 ,taxable fuel includes biodiesel ,paragraph 7#a7 of section #djhc7;a7 is amended by striking and at the end of subparagraph 7,b71 by striking the period at the end of subparagraph 7,c7 and inserting 1 and1 and by adding at the end the following new subparagraph3 7,d7 biodiesel4 4 7,b7 ,biodiesel defined ,subsection 7a7 of section #djhc is amended by adding at the end the following new paragraph3 7#d7 ,biodiesel ,the term biodiesel has the meaning given such term under section #dj;,a7d77#a71 determined without regard to the last sentence thereof4 4 7#b7 ,biodiesel production facilities treated as refineries 7,a7 ,in general ,subsection 7a7 of section #djha is amended by adding at the end the following new paragraph3 7#e7 ,biodiesel production facilities and blending facilities treated as refineries ,for purposes of this part-- 7,a7 any facility which is used to produce biodiesel1 and 7,b7 any biodiesel blending facility1 shall be treated as a refinery with respect to biodiesel4 4 7,b7 ,biodiesel blending facility defined ,section #djhc is amended by adding at the end the following new subsection3 7e7 ,biodiesel blending facility ,for purposes of this subpart1 the term biodiesel blending facility means any facility that is operated by an eligible discretionary blender 7as defined in section #dj;,a7d77#b77;,c774 4 7,c7 ,bulk transfers ,subparagraph 7,b7 of section #djha7;a77#a7 is amended by adding at the end the following new clause3 7iii7 ,special rules for biodiesel ,the tax imposed by this paragraph shall not apply to the removal or entry of biodiesel to any refinery or terminal if the person removing or entering the biodiesel and the operator of the refinery or terminal are registered under section #daja4 4 7#c7 ,rate of tax ,subparagraph 7,a77iii7 of section #djha7;a77#b7 is amended by striking diesel fuel or kerosene and inserting diesel fuel1 kerosene1 or biodiesel4 7#d7 ,exemptions 7,a7 ,in general ,section #djhb is amended by striking diesel fuel and kerosene each place it appears in subsections 7a71 7c71 and 7g7 and inserting diesel fuel1 kerosene1 and biodiesel4 7,b7 ,conforming amendment ,subparagraph 7,a7 of section #djhb7;d77#a7 is amended by inserting biodiesel1 after diesel fuel14 7#e7 ,other conforming amendments 7,a7 ,the heading for paragraph 7#a7 of section #djda7;a7 is amended by striking diesel fuel and kerosene and inserting diesel fuel1 kerosene1 and biodiesel4 7,b7 ,paragraph 7#b7 of section #fdaf7;b7 is amended by striking diesel fuel or kerosene and inserting diesel fuel1 kerosene1 or biodiesel4 7,c7 ,section #fdbg7l7 is amended-- 7i7 by striking diesel fuel or kerosene each place it appears in paragraphs 7#a7 and 7#e77;,a7 and inserting diesel fuel1 kerosene1 or biodiesel1 7ii7 by striking diesel fuel and kerosene in the heading and inserting diesel fuel1 kerosene1 and biodiesel1 and 7iii7 by striking diesel fuel or kerosene in the heading of paragraph 7#e7 and inserting diesel fuel1 kerosene1 or biodiesel4 7,d7 ,section #fgae7;c77#a7 is amended by striking diesel fuel or kerosene and inserting diesel fuel1 kerosene1 or biodiesel4 7#f7 ,effective date ,the amendments made by this subsection shall apply to biodiesel sold or used after ,december #ca1 #bjae4 #ajf4 ,extension of credits with respect to facilities producing energy from certain renewable resources 7a7 ,in general ,the following provisions of section #de7;d7 are each amended by striking ,january #a1 #bjae each place it appears and inserting ,january #a1 #bjag3 7#a7 ,paragraph 7#a74 7#b7 ,paragraph 7#b77;,a74 7#c7 ,paragraph 7#c77;,a74 7#d7 ,paragraph 7#d77;,b74 7#e7 ,paragraph 7#f74 7#f7 ,paragraph 7#g74 7#g7 ,paragraph 7#i74 7#h7 ,paragraph 7#aa77;,b74 7b7 ,extension of election ,to treat qualified facilities as energy property ,clause 7ii7 of section #dh7;a77#e77;,c7 is amended by striking ,january #a1 #bjae and inserting ,january #a1 #bjag4 7c7 ,effective dates ,the amendments made by this section shall take effect on ,january #a1 #bjae4 #ajg4 ,extension of credit for energy-efficient new homes 7a7 ,in general ,subsection 7g7 of section #de,l is amended by striking ,december #ca1 #bjad and inserting ,december #ca1 #bjaf4 7b7 ,effective date ,the amendment made by this section shall apply to homes acquired after ,december #ca1 #bjad4 #ajh4 ,extension of special allowance for second generation biofuel plant property 7a7 ,in general ,subparagraph 7,d7 of section #afh7l77#b7 is amended by striking ,january #a1 #bjae and inserting ,january #a1 #bjag4 7b7 ,effective date ,the amendment made by this section shall apply to property placed in service after ,december #ca1 #bjad4 #aji4 ,extension and modification of energy efficient commercial buildings deduction 7a7 ,in general ,subsection 7h7 of section #agi;,d is amended by striking ,december #ca1 #bjad and inserting ,december #ca1 #bjaf4 7b7 ,allocations to ,indian tribal governments ,paragraph 7#d7 of section #agi;,d7d7 is amended by striking or local and inserting local1 or ,indian tribal4 7c7 ,allocations to certain nonprofit organizations 7#a7 ,in general ,paragraph 7#d7 of section #agi;,d7d71 as amended by subsection 7b71 is amended by inserting or by an organization that is described in section #eja7;c77#c7 and exempt from tax under section #eja7;a71 after political subdivision thereof14 7#b7 ,clerical amendment ,the heading of paragraph 7#d7 of section #agi;,d7d7 is amended by inserting and property held by certain non-profits after public property4 7d7 ,updated ,,ashrae standards for #bjaf 7#a7 ,in general ,paragraph 7#a7 of section #agi;,d7c7 is amended by striking ,standard #ij4a-bjja each place it appears and inserting ,standard #ij4a-bjjg4 7#b7 ,conforming amendments 7,a7 ,paragraph 7#b7 of section #agi;,d7c7 is amended to read as follows3 7#b7 ,standard #ij4a-bjjg ,the term ,standard #ij4a-bjjg means ,standard #ij4a-bjjg of the ,american ,society of ,heating1 ,refrigerating1 and ,air ,conditioning ,engineers and the ,illuminating ,engineering ,society of ,north ,america 7as in effect on the day before the date of the adoption of ,standard #ij4a-bjaj of such ,societies74 4 7,b7 ,subsection 7f7 of section #agi;,d is amended by striking ,standard #ij4a-bjja each place it appears in paragraphs 7#a7 and 7#b77;,c77i7 and inserting ,standard #ij4a-bjjg4 7,c7 ,paragraph 7#a7 of section #agi;,d7f7 is amended-- 7i7 by striking ,table #i4c4a4a and inserting ,table #i4e4a1 and 7ii7 by striking ,table #i4c4a4b and inserting ,table #i4f4a4 7#c7 ,effective date ,the amendments made by this subsection shall apply to property placed in service after ,december #ca1 #bjae4 7e7 ,effective date ,except as provided in subsection 7d77#c71 the amendments made by this section shall apply to property placed in service after ,december #ca1 #bjad4 #aaj4 ,extension of special rule for sales or dispositions to implement ,,ferc or ,state electric restructuring policy for qualified electric utilities 7a7 ,in general ,paragraph 7#c7 of section #dea7;i7 is amended by striking ,january #a1 #bjae and inserting ,january #a1 #bjag4 7b7 ,effective date ,the amendment made by this section shall apply to dispositions after ,december #ca1 #bjad4 #aaa4 ,extension of excise tax credits relating to alternative fuels 7a7 ,extension of alternative fuels excise tax credits 7#a7 ,in general ,sections #fdbf7;d77#e7 and #fdbf7;e77#c7 are each amended by striking ,december #ca1 #bjad and inserting ,december #ca1 #bjaf4 7#b7 ,outlay payments for alternative fuels ,subparagraph 7,c7 of section #fdbg7;e77#g71 as redesignated by section #f7;b77#c77;,a77ii71 is amended by striking ,december #ca1 #bjad and inserting ,december #ca1 #bjaf4 7b7 ,effective date ,the amendments made by this section shall apply to fuel sold or used after ,december #ca1 #bjad4 7c7 ,special rule for certain periods during #bjae ,notwithstanding any other provision of law1 in the case of any alternative fuel credit properly determined under section #fdbf7;d7 of such ,code for such periods1 such credit shall be allowed1 and any refund or payment attributable to such credit 7including any payment under section #fdbg7;e7 of such ,code7 shall be made1 only in such manner as the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall provide4 ,such ,secretary shall issue guidance within #cj days after the date of the enactment of this ,act providing for a one-time submission of claims covering periods described in the preceding sentence4 ,such guidance shall provide for a #ahj-;day period for the submission of such claims 7in such manner as prescribed by such ,secretary7 to begin not later than #cj days after such guidance is issued4 ,such claims shall be paid by such ,secretary not later than #fj days after receipt4 ,if such ,secretary has not paid pursuant to a claim filed under this subsection within #fj days after the date of the filing of such claim1 the claim shall be paid with interest from such date determined by using the overpayment rate and method under section #ffba of such ,code4 ,,ii ,additional ,provisions #bja4 ,extension of energy credit for certain property under construction 7a7 ,solar energy property ,paragraphs 7#b77;,a77i77,,ii7 and 7#c77;,a77ii7 of section #dh7;a7 are each amended by striking periods ending and inserting property the construction of which begins4 7b7 ,qualified fuel cell property ,section #dh7;c77#a77;,d7 is amended by striking for any period after ,december #ca1 #bjaf and inserting the construction of which does not begin before ,january #a1 #bjag4 7c7 ,qualified microturbine property ,section #dh7;c77#b77;,d7 is amended by striking for any period after ,december #ca1 #bjaf and inserting the construction of which does not begin before ,january #a1 #bjag4 7d7 ,combined heat and power system property ,section #dh7;c77#c77;,a77iv7 is amended by striking which is placed in service and inserting construction of which begins4 7e7 ,qualified small wind energy property ,section #dh7;c77#d77;,c7 is amended by striking for any period after ,december #ca1 #bjaf and inserting the construction of which does not begin before ,january #a1 #bjag4 7f7 ,thermal energy property ,section #dh7;a77#c77;,a77vii7 is amended by striking periods ending and inserting property the construction of which begins4 7g7 ,effective date ,the amendments made by this section shall take effect on the date of the enactment of this ,act4 #bjb4 ,modifications in credit for combined heat and power system property 7a7 ,increased energy percentage ,section #dh7;a77#b77;,a77i7 is amended by striking and at the end of subclause 7,,iii71 by redesignating subclause 7,,iv7 as subclause 7,v71 and by inserting after subclause 7,,iii7 the following new subclause3 7,,iv7 energy property described in paragraph 7#c77;,a77v71 and 4 7b7 ,modification of certain capacity limitations ,section #dh7;c77#c77;,b7 is amended-- 7#a7 by striking #ae megawatts in clause 7ii7 and inserting #be megawatts1 7#b7 by striking #bj1jjj horsepower in clause 7ii7 and inserting #cd1jjj horsepower1 and 7#c7 by striking clause 7iii74 7c7 ,effective date ,the amendments made by this section shall apply to periods after the date of the enactment of this ,act1 under rules similar to the rules of section #dh7m7 of the ,internal ,revenue ,code of #aihf 7as in effect on the day before the date of the enactment of the ,revenue ,reconciliation ,act of #aiij74 #bjc4 ,energy credit for waste heat to power property 7a7 ,in general ,section #dh7;a77#c77;,a7 is amended by striking or at the end of clause 7vi71 by inserting or at the end of clause 7vii71 and by adding at the end the following new clause3 7viii7 waste heat to power property1 4 7b7 ,waste heat ,to power property ,section #dh7;c7 is amended by adding at the end the following new paragraph3 7#e7 ,waste heat to power property 7,a7 ,waste heat to power property ,the term waste heat to power property means property comprising a system which generates electricity through the recovery of a qualified waste heat resource4 7,b7 ,qualified waste heat resource defined ,the term qualified waste heat resource means-- 7i7 exhaust heat or flared gas from any industrial process1 7ii7 waste gas or industrial tail gas that would otherwise be flared1 incinerated1 or vented1 7iii7 a pressure drop in any gas for an industrial or commercial process1 or 7iv7 such other forms of waste heat resources as the ,secretary may determine4 7,c7 ,exception ,the term qualified waste heat resource does not include any heat resource from a process whose primary purpose is the generation of electricity utilizing a fossil fuel or nuclear energy4 7,d7 ,termination ,the term waste heat to power property shall not include any property placed in service after ,december #ca1 #bjaf4 4 7c7 ,increased energy percentage ,section #dh7;a77#b77;,a77i71 as amended by section #bja1 is amended by striking and at the end of subclause 7,,iv7 and by inserting after subclause 7,v7 the following new subclause3 7,,vi7 energy property described in paragraph 7#c77;,a77viii71 and 4 7d7 ,effective date ,the amendments made by this section shall apply to periods after the date of the enactment of this ,act1 under rules similar to the rules of section #dh7m7 of the ,internal ,revenue ,code of #aihf 7as in effect on the day before the date of the enactment of the ,revenue ,reconciliation ,act of #aiij74 #bjd4 ,investment tax credit for community wind projects having generation capacity of not more than #bj megawatts 7a7 ,in general ,paragraph 7#d7 of section #dh7;c7 is amended-- 7#a7 by striking subparagraph 7,a7 and inserting the following new subparagraph3 7,a7 ,in general ,the term qualified small wind energy property means-- 7i7 property which uses a qualifying small wind turbine to generate electricity1 or 7ii7 property which uses #a or more wind turbines with an aggregate nameplate capacity of more than #ajj kilowatts but not more than #bj megawatts4 1 and 7#b7 by redesignating subparagraph 7,c7 as subparagraph 7,d7 and by inserting after subparagraph 7,b7 the following new subparagraph3 7,c7 ,regulations ,the ,secretary shall prescribe such regulations as may be appropriate to prevent improper division of property to attempt to meet the limitation under subparagraph 7,a77ii74 4 7b7 ,effective date ,the amendments made by this section shall apply to property placed in service after the date of the enactment of this ,act4 #bje4 ,extension of publicly traded partnership ownership structure to energy power generation projects1 transportation fuels1 and related energy activities 7a7 ,in general ,subparagraph 7,e7 of section #ggjd7;d77#a7 is amended-- 7#a7 by striking income and gains derived from the exploration and inserting income and gains derived from the following3 7i7 ,minerals1 natural resources1 etc ,the exploration 1 7#b7 by inserting or before industrial source1 7#c7 by inserting a period after carbon dioxide1 and 7#d7 by striking 1 or the transportation or storage and all that follows and inserting the following3 7ii7 ,renewable energy ,the generation of electric power 7including the leasing of tangible personal property used for such generation7 exclusively utilizing any resource described in section #de7;c77#a7 or energy property described in section #dh 7determined without regard to any termination date71 or in the case of a facility described in paragraph 7#c7 or 7#g7 of section #de7;d7 7determined without regard to any placed in service date or date by which construction of the facility is required to begin71 the accepting or processing of such resource4 7iii7 ,electricity storage devices ,the receipt and sale of electric power that has been stored in a device directly connected to the grid4 4 7b7 ,effective date ,the amendments made by this section shall take effect on the date of the enactment of this ,act1 in taxable years ending after such date4 #bjf4 ,additional advanced energy manufacturing credit allocations 7a7 ,additional allocation of credits ,section #dh;,c7d7 is amended by adding at the end the following3 7#f7 ,additional allocation 7,a7 ,in general ,in addition to credits allocated under paragraph 7#a71 the ,secretary1 in consultation with the ,secretary of ,energy1 is authorized to conduct an additional program to consider and award certifications for qualified investments eligible for credits under this section to qualifying advanced energy project sponsors pursuant to applications from such sponsors received after ,december #ca1 #bjae4 7,b7 ,limitation ,the total amount of credits that may be allocated under subparagraph 7,a7 shall not exceed #b1gjj1jjj1jjj4 7,c7 ,modifications to applicable rules ,for purposes of this paragraph-- 7i7 ,application period ,the #b-year period described in paragraph 7#b7 shall begin on ,january #a1 #bjaf4 7ii7 ,reallocation ,the #d-year period described in paragraph 7#d7 shall begin the date of the enactment of this paragraph4 4 7b7 ,effective date ,the amendment made by subsection 7a7 shall apply to periods beginning after ,december #ca1 #bjae4 ,,iii ,ending ,oil and ,gas ,tax ,subsidies #cja4 ,amortization of geological and geophysical expenditures 7a7 ,in general ,section #afg7;h7 is amended-- 7#a7 by striking #bd-month period in paragraph 7#a7 and inserting #g-year period1 and 7#b7 by striking paragraph 7#e74 7b7 ,effective date ,the amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after ,december #ca1 #bjae4 #cjb4 ,producing oil and gas from marginal wells 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a is amended by striking section #de;,i 7and by striking the item relating to such section in the table of sections for such subpart74 7b7 ,conforming amendment ,section #ch7;b7 is amended by striking paragraph 7#ai74 7c7 ,effective date ,the amendment made by subsection 7a7 shall apply to credits determined for taxable years beginning after ,december #ca1 #bjae4 #cjc4 ,enhanced oil recovery credit 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a is amended by striking section #dc 7and by striking the item relating to such section in the table of sections for such subpart74 7b7 ,conforming amendment ,section #ch7;b7 is amended by striking paragraph 7#f74 7c7 ,effective date ,the amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after ,december #ca1 #bjae4 #cjd4 ,intangible drilling and development costs in the case of oil and gas wells 7a7 ,in general ,subsection 7c7 of section #bfc is amended by adding at the end the following new sentence3 ,this subsection shall not apply to amounts paid or incurred by a taxpayer with respect to an oil or gas well after ,december #ca1 #bjae44 7b7 ,effective date ,the amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after ,december #ca1 #bjae4 #cje4 ,repeal of percentage depletion for oil and gas wells 7a7 ,in general ,part ,i of subchapter ,i of chapter #a is amended by striking section #fac;,a 7and the table of sections of such part is amended by striking the item relating to such section74 7b7 ,conforming amendments 7#a7 ,subsection 7d7 of section #de;,h is amended-- 7,a7 by striking ,for purposes this section and inserting the following3 7#a7 ,in general ,for purposes of this section 1 7,b7 by striking 7within the meaning of section #fac;,a7d77#c771 and 7,c7 by adding at the end the following new paragraph3 7#b7 ,related person ,for purposes of this subsection1 a person is a related person with respect to the taxpayer if a significant ownership interest in either the taxpayer or such person is held by the other1 or if a third person has a significant ownership interest in both the taxpayer and such person4 ,for purposes of the preceding sentence1 the term significant ownership interest means-- 7,a7 with respect to any corporation1 #e percent or more in value of the outstanding stock of such corporation1 7,b7 with respect to a partnership1 #e percent or more interest in the profits or capital of such partnership1 and 7,c7 with respect to an estate or trust1 #e percent or more of the beneficial interests in such estate or trust4 ,for purposes of determining a significant ownership interest1 an interest owned by or for a corporation1 partnership1 trust1 or estate shall be considered as owned directly both by itself and proportionately by its shareholders1 partners1 or beneficiaries1 as the case may be4 4 7#b7 ,section #ef7;g77#d77;,f7 is amended to read as follows3 7,f7 ,depletion ,the allowance for depletion with respect to any property placed in service in a taxable year beginning after ,december #ca1 #aihi1 shall be cost depletion determined under section #faa4 4 7#c7 ,section #eg7;a77#a7 is amended by striking the last sentence4 7#d7 ,section #bia7;b77#d7 is amended by adding at the end the following3 ,any reference in the preceding sentence to section #fac;,a shall be treated as a reference to such section as in effect prior to the date of the enactment of the ,bridge to a ,clean ,energy ,future ,act of #bjae44 7#e7 ,section #fac7;d7 is amended by striking ,except as provided in section #fac;,a1 in the case of and inserting ,in the case of4 7#f7 ,section #fac7;e7 is amended-- 7,a7 by striking or section #fac;,a in paragraph 7#b71 and 7,b7 by striking any amount described in section #fac;,a7d77#e7 in paragraph 7#c7 and inserting any lease bonus1 advance royalty1 or other amount payable without regard to production from property4 7#g7 ,section #gje7;a7 is amended-- 7,a7 by inserting and at the end of paragraph 7#a77;,c71 7,b7 by striking 2 and at the end of paragraph 7#b77;,b7 and inserting a period1 and 7,c7 by striking paragraph 7#c74 7#h7 ,section #ggf is amended by striking subsection 7a7 and by redesignating subsection 7b7 as subsection 7a74 7#i7 ,section #ied7;g77#b77;,d7 is amended by inserting 7as in effect before the date of the enactment of the ,bridge to a ,clean ,energy ,future ,act of #bjae7 after section #fac;,a4 7#aj7 ,section #iic7;c77#b77;,c7 is amended by striking section #fac or #fac;,a and inserting section #fac 7determined without regard to subsection 7d7 thereof74 7#aa7 ,section #abjb7;e77#c77;,d7 is amended by striking section #fac or #fac;,a and inserting section #fac 7determined without regard to subsection 7d7 thereof74 7#ab7 ,section #acfg7;a77#b7 is amended by inserting and at the end of subparagraph 7,c71 by striking 1 and at the end of subparagraph 7,d7 and inserting a period1 and by striking subparagraph 7,e74 7#ac7 ,section #addf7;c7 is amended by striking paragraph 7#b7 and by redesignating paragraph 7#c7 as paragraph 7#b74 7c7 ,effective date ,the amendments made by this section shall apply to property placed in service after ,december #ca1 #bjae4 #cjf4 ,repeal of deduction for tertiary injectants 7a7 ,in general ,part ,,vi of subchapter ,b of chapter #a is amended by striking section #aic 7and the table of sections of such subpart is amended by striking the item relating to such section74 7b7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjae4 #cjg4 ,repeal of exception to passive loss limitations for working interests in oil and gas properties 7a7 ,in general ,section #dfi7;c77#c7 is amended by adding at the end the following new subparagraph3 7,c7 ,termination ,subparagraph 7,a7 shall not apply with respect to any taxable year beginning after the date of the enactment of this ,act4 4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjae4 #cjh4 ,deduction for income attributable to domestic production activities not allowed with respect to oil and gas activities 7a7 ,in general ,section #aii7;c77#d77;,b7 is amended by striking and at the end of clause 7ii71 by striking the period at the end of clause 7iii7 and inserting 1 and1 and by inserting after clause 7iii7 the following new clause3 7iv7 the production1 refining1 processing1 transportation1 or distribution of oil1 gas1 or any primary product thereof4 4 7b7 ,conforming amendment ,section #aii7;d7 is amended by striking paragraph 7#i7 and by redesignating paragraph 7#aj7 as paragraph 7#i74 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjae4 #cji4 ,prohibition on using last-in1 first-out accounting for oil and gas companies 7a7 ,in general ,section #dgb is amended by adding at the end the following new subsection3 7h7 ,oil and gas companies 7#a7 ,in general ,notwithstanding any other provision of this section1 a major integrated oil company may not use the method provided in subsection 7b7 in inventorying of any goods4 7#b7 ,major integrated oil company ,for purposes of this subsection1 the term major integrated oil company means1 with respect to any taxable year1 a producer of crude oil-- 7,a7 which has an average daily worldwide production of crude oil of at least #ejj1jjj barrels for the taxable year1 7,b7 which has gross receipts in excess of #a1jjj1jjj1jjj for the taxable year1 and 7,c7 the average daily refinery runs of the taxpayer and related persons for the taxable year exceed #ge1jjj barrels4 7#c7 ,special rules 7,a7 ,crude production and gross receipts ,for purposes of subparagraphs 7,a7 and 7,b7 of paragraph 7#b7-- 7i7 ,controlled groups and common control ,all persons treated as a single employer under subsections 7a7 and 7b7 of section #eb shall be treated as #a person4 7ii7 ,short taxable years ,in the case of a short taxable year1 the rule under section #ddh7;c77#c77;,b7 shall apply4 7,b7 ,average daily refinery runs ,for purposes of paragraph 7#b77;,c7-- 7i7 ,in general ,the average daily refinery runs for any taxable year shall be determined by dividing the aggregate refinery runs for the taxable year by the number of days in the taxable year4 7ii7 ,related persons ,a person is a related person with respect to the taxpayer if a significant ownership interest in either the taxpayer or such person is held by the other1 or if a third person has a significant ownership interest in both the taxpayer and such person4 7iii7 ,significant ownership interest ,for purposes of clause 7ii71 the term significant ownership interest means-- 7,i7 with respect to any corporation1 #ae percent or more in value of the outstanding stock of such corporation1 7,,ii7 with respect to a partnership1 #ae percent or more interest in the profits or capital of such partnership1 and 7,,iii7 with respect to an estate or trust1 #ae percent or more of the beneficial interests in such estate or trust4 ,for purposes of determining a significant ownership interest1 an interest owned by or for a corporation1 partnership1 trust1 or estate shall be considered as owned directly both by itself and proportionately by its shareholders1 partners1 or beneficiaries1 as the case may be4 4 7b7 ,effective date and special rule 7#a7 ,in general ,the amendment made by subsection 7a7 shall apply to taxable years beginning after ,december #ca1 #bjae4 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 #caj4 ,modifications of foreign tax credit rules applicable to dual capacity taxpayers 7a7 ,in general ,section #ija is amended by redesignating subsection 7n7 as subsection 7o7 and by inserting after subsection 7m7 the following new subsection3 7n7 ,special rules relating to dual capacity taxpayers 7#a7 ,general rule ,notwithstanding any other provision of this chapter1 any amount paid or accrued by a dual capacity taxpayer to a foreign country or possession of the ,united ,states for any period with respect to combined foreign oil and gas income 7as defined in section #ijg7;b77#a77 shall not be considered a tax to the extent such amount exceeds the amount 7determined in accordance with regulations7 which would have been required to be paid if the taxpayer were not a dual capacity taxpayer4 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 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 ,december #ca1 #bjae4 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