[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3032 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
1st Session
S. 3032
To amend the Internal Revenue Code of 1986 to allow for transfers of
the renewable electricity production credit, the energy credit, and the
credit for carbon oxide sequestration.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 12, 2019
Mr. Bennet 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 allow for transfers of
the renewable electricity production credit, the energy credit, and the
credit for carbon oxide sequestration.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Renewable Energy Transferability
Act''.
SEC. 2. TRANSFERS OF CREDITS FOR RENEWABLE ELECTRICITY PRODUCTION
FACILITIES AND ENERGY PROPERTY.
(a) Renewable Electricity Production Credit.--Section 45(e) of the
Internal Revenue Code of 1986 is amended by adding at the end the
following new paragraph:
``(12) Transfer of credit.--
``(A) In general.--If the taxpayer elects to
transfer all (or any portion specified in the election)
of the credit determined under this section for any
taxable year with respect to any qualified facility to
an eligible project partner for a specified period,
then, the eligible project partner specified in such
election (and not the taxpayer) shall be treated for
purposes of this title with respect to such credit (or
such portion thereof) as the person producing and
selling the electricity to which such credit (or
portion thereof) relates.
``(B) Deduction for payments in connection with
transfer.--There shall be allowed as a deduction under
part VI of subchapter B an amount equal to the amount
paid by a taxpayer as consideration for a transfer
described in subparagraph (A).
``(C) Eligible project partner.--For purposes of
this paragraph, the term `eligible project partner'
means, with respect to any qualified facility, any
person who--
``(i) has an ownership interest in such
qualified facility,
``(ii) provided equipment for or services
in the construction of such qualified facility,
``(iii) provides electric transmission or
distribution services for such qualified
facility,
``(iv) purchases electricity from such
qualified facility pursuant to a contract, or
``(v) provides financing for such qualified
facility.
For purposes of clause (v), any amount paid as
consideration for a transfer described in subparagraph
(A) shall not be treated as financing of a qualified
facility.
``(D) Taxable year in which credit taken into
account.--In the case of any credit (or portion
thereof) with respect to which an election is made
under subparagraph (A), such credit shall be taken into
account in the first taxable year of the eligible
project partner ending with, or after, the electing
taxpayer's taxable year with respect to which the
credit was determined.
``(E) Limitations on election.--
``(i) Time for election.--An election under
this paragraph to transfer any portion of the
credit allowed under this section shall be made
not later than the due date for the return of
tax for the electing taxpayer's taxable year
with respect to which the credit was
determined.
``(ii) No further transfers.--No election
may be made under this paragraph by a taxpayer
with respect to any portion of the credit
allowed under this section which has been
previously transferred to such taxpayer under
this paragraph.
``(F) Treatment of transfer under private use
rules.--For purposes of section 141(b)(1), any benefit
derived by an eligible project partner in connection
with an election under this paragraph shall not be
taken into account as a private business use.
``(G) Additional election requirements.--The
Secretary may prescribe such regulations as may be
appropriate to carry out the purposes of this
paragraph, including--
``(i) rules for determining which persons
are eligible project partners with respect to
any energy property, and
``(ii) requiring information to be included
in an election under subparagraph (A) or
imposing additional reporting requirements.''.
(b) Energy Credit.--
(1) In general.--Section 48 of the Internal Revenue Code of
1986 is amended by adding at the end the following new
subsection:
``(e) Transfer of Credit.--
``(1) In general.--If the taxpayer elects to transfer all
(or any portion specified in the election) of the credit
determined under this section for any taxable year with respect
to any energy property to an eligible project partner, the
eligible project partner specified in such election (and not
the taxpayer) shall be treated as the taxpayer for purposes of
this title with respect to such credit (or portion thereof).
``(2) Deduction for payments in connection with transfer.--
There shall be allowed as a deduction under part VI of
subchapter B an amount equal to the amount paid by a taxpayer
as consideration for a transfer described in paragraph (1).
``(3) Eligible project partner.--For purposes of this
subsection, the term `eligible project partner' means, with
respect to any energy property, any person who--
``(A) has an ownership interest in such energy
property,
``(B) provided equipment for or services in the
construction of such energy property,
``(C) provides electric transmission or
distribution services for such energy property,
``(D) purchases electricity from such qualified
facility pursuant to a contract, or
``(E) provides financing for such energy property.
For purposes of subparagraph (E), any amount paid as
consideration for a transfer described in paragraph (1) shall
not be treated as financing of a qualified facility.
``(4) Taxable year in which credit taken into account.--In
the case of any credit (or portion thereof) with respect to
which an election is made under paragraph (1), such credit
shall be taken into account in the first taxable year of the
eligible project partner ending with, or after, the electing
taxpayer's taxable year with respect to which the credit was
determined.
``(5) Limitations on election.--
``(A) Time for election.--An election under this
subsection to transfer any portion of the credit
allowed under this section shall be made not later than
the due date for the return of tax for the electing
taxpayer's taxable year with respect to which the
credit was determined.
``(B) No further transfers.--No election may be
made under this subsection by a taxpayer with respect
to any portion of the credit allowed under this section
which has been previously transferred to such taxpayer
under this subsection.
``(6) Treatment of transfer under private use rules.--For
purposes of section 141(b)(1), any benefit derived by an
eligible project partner in connection with an election under
this subsection shall not be taken into account as a private
business use.
``(7) Additional election requirements.--The Secretary may
prescribe such regulations as may be appropriate to carry out
the purposes of this subsection, including--
``(A) rules for determining which persons are
eligible project partners with respect to any energy
property, and
``(B) requiring information to be included in an
election under paragraph (1) or imposing additional
reporting requirements.''.
(2) Normalization rules.--Section 50(d) of such Code is
amended by adding at the end the following: ``In the case of
any energy property with respect to which an election is made
under section 48(e)(1), the rules of the section 46(f) referred
to in paragraph (2) shall apply only to the extent of amounts
paid in consideration of the transfer to which such election
relates.''.
(c) Credit for Carbon Oxide Sequestration.--Subparagraph (B) of
section 45Q(f)(3) of the Internal Revenue Code of 1986 is amended to
read as follows:
``(B) Transfer of credit.--
``(i) In general.--If the person described
in subparagraph (A) elects to transfer all (or
any portion specified in the election) of the
credit determined under this section for any
taxable year with respect to any qualified
facility to an eligible project partner for a
specified period, then, the eligible project
partner specified in such election (and not the
person described in subparagraph (A)) shall be
treated for purposes of this title with respect
to such credit (or such portion thereof) as the
person described in clause (i) or (ii) of such
subparagraph, as applicable, to which such
credit (or portion thereof) relates.
``(ii) Deduction for payments in connection
with transfer.--There shall be allowed as a
deduction under part VI of subchapter B an
amount equal to the amount paid by a taxpayer
as consideration for a transfer described in
clause (i).
``(iii) Eligible project partner.--For
purposes of this subparagraph, the term
`eligible project partner' means, with respect
to any qualified facility, any person who--
``(I) has an ownership interest in
such qualified facility or any carbon
capture equipment which is placed in
service at such qualified facility,
``(II) provided equipment for or
services in the construction of such
qualified facility or any carbon
capture equipment which is placed in
service at such qualified facility,
``(III) provides fuel or feedstock
for the operation of such qualified
facility,
``(IV) provides transportation,
transmission, or distribution services
for such qualified facility,
``(V) purchases, pursuant to a
contract, the industrial output of such
qualified facility or the commercial
products produced by utilization of
qualified carbon oxide captured at such
qualified facility,
``(VI) disposes of the qualified
carbon oxide, utilizes the qualified
carbon oxide, or uses the qualified
carbon oxide as a tertiary injectant,
or
``(VII) provides financing for such
qualified facility or any carbon
capture equipment which is placed in
service at such qualified facility.
For purposes of subclause (VII), any amount
paid as consideration for a transfer described
in clause (i) shall not be treated as financing
of a qualified facility.
``(iv) Taxable year in which credit taken
into account.--In the case of any credit (or
portion thereof) with respect to which an
election is made under clause (i), such credit
shall be taken into account in the first
taxable year of the eligible project partner
ending with, or after, the electing taxpayer's
taxable year with respect to which the credit
was determined.
``(v) Limitations on election.--
``(I) Time for election.--An
election under this subparagraph to
transfer any portion of the credit
allowed under this section shall be
made not later than the due date for
the return of tax for the electing
taxpayer's taxable year with respect to
which the credit was determined.
``(II) No further transfers.--No
election may be made under this
subparagraph by a taxpayer with respect
to any portion of the credit allowed
under this section which has been
previously transferred to such taxpayer
under this subparagraph.
``(vi) Treatment of transfer under private
use rules.--For purposes of section 141(b)(1),
any benefit derived by an eligible project
partner in connection with an election under
this subparagraph shall not be taken into
account as a private business use.
``(vii) Additional election requirements.--
The Secretary may prescribe such regulations as
may be appropriate to carry out the purposes of
this subparagraph, including--
``(I) rules for determining which
persons are eligible project partners
with respect to any qualified facility,
and
``(II) requiring information to be
included in an election under clause
(i) or imposing additional reporting
requirements.
``(viii) Transition rules.--Any election
made under this subparagraph with respect to a
qualified facility for any taxable years
beginning before the date of enactment of the
Renewable Energy Transferability Act shall not
apply to any taxable years beginning after the
date of enactment of such Act, and the person
described in subparagraph (A) may make a new
election or elections under clause (i) with
respect to such qualified facility.''.
(d) Special Rule for Proceeds of Transfers for Mutual or
Cooperative Electric Companies.--Section 501(c)(12)(I) of such Code is
amended by striking ``45J(e)(1)'' and inserting ``45(e)(12), 45J(e)(1),
45Q(f)(3)(B), or 48(e)(1)''.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
<all>