Sec. 407. EXTENSION AND MODIFICATION OF CREDITS WITH RESPECT TO FACILITIES PRODUCING ENERGY FROM CERTAIN RENEWABLE RESOURCES
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## SEC. 407 EXTENSION AND MODIFICATION OF CREDITS WITH RESPECT TO FACILITIES PRODUCING ENERGY FROM CERTAIN RENEWABLE RESOURCES ###
(a)Production Tax Credit ####
(1)Extension for wind facilities Paragraph
(1)of section 45(d) is amended by striking “January 1, 2013” and inserting “January 1, 2014”. ####
(2)Exclusion of paper which is commonly recycled from definition of municipal solid waste Section 45(c)(6) is amended by inserting “, except that such term does not include paper which is commonly recycled and which has been segregated from other solid waste (as so defined)” after “(42 U.S.C. 6903)”. ####
(3)Modification to definition of qualified facility #####
(A)In general The following provisions of section 45(d), as amended by paragraph (1), are each amended by striking “before January 1, 2014” and inserting “the construction of which begins before January 1, 2014”: ######
(i)Paragraph (1). ######
(ii)Paragraph (2)(A)(i). ######
(iii)Paragraph (3)(A)(i)(I). ######
(iv)Paragraph (6). ######
(v)Paragraph (7). ######
(vi)Paragraph (9)(B). ######
(vii)Paragraph (11)(B). #####
(B)Certain closed-loop biomass facilities Subparagraph
(A)of section 45(d)(2) is amended by adding at the end the following new flush sentence:" “For purposes of clause (ii), a facility shall be treated as modified before January 1, 2014, if the construction of such modification begins before such date.”". #####
(C)Certain open-loop biomass facilities **[**[26 U.S.C. 45](/us/usc/t26/s45)**]** Clause
(ii)of section 45(d)(3)(A) is amended by striking “is originally placed in service” and inserting “the construction of which begins”. #####
(D)Geothermal facilities ######
(i)In general Paragraph
(4)of section 45(d) is amended by striking “ and before January 1, 2014 ” and all that follows and inserting > “and which— > > > ##### “(A) > > in the case of a facility using solar energy, is placed in service before January 1, 2006, or > > > ##### “(B) > > in the case of a facility using geothermal energy, the construction of which begins before January 1, 2014. > > Such term shall not include any property described in section 48(a)(3) the basis of which is taken into account by the taxpayer for purposes of determining the energy credit under section 48.” > . #####
(E)Incremental hydropower production Paragraph
(9)of section 45(d) is amended— ######
(i)by redesignating subparagraphs
(A)and (B), as amended by subparagraph (A), as clauses
(i)and (ii), respectively, and by moving such clauses (as so redesignated) 2 ems to the right, ######
(ii)by striking “ In the case of a facility ” and inserting the following: > > ##### “(A) In general > > In the case of a facility” > , ######
(iii)by redesignating subparagraph
(C)as subparagraph (B), and ######
(iv)by adding at the end the following new subparagraph: > > ##### “(C) Special rule > > For purposes of subparagraph (A)(i), an efficiency improvement or addition to capacity shall be treated as placed in service before January 1, 2014, if the construction of such improvement or addition begins before such date.” > . ###
(b)Extension of Election to Treat Qualified Facilities as Energy Property Subparagraph
(C)of section 48(a)(5) is amended to read as follows: > > ##### “(C) Qualified investment credit facility > > For purposes of this paragraph, the term ‘qualified investment credit facility’ means any facility— > > > ###### “(i) > > which is a qualified facility (within the meaning of section 45) described in paragraph (1), (2), (3), (4), (6), (7), (9), or
(11)of section 45(d), > > > ###### “(ii) > > which is placed in service after 2008 and the construction of which begins before January 1, 2014, and > > > ###### “(iii) > > with respect to which— > > > ###### “(I) > > no credit has been allowed under section 45, and > > > ###### “(II) > > the taxpayer makes an irrevocable election to have this paragraph apply.” > . ###
(c)Technical Corrections ####
(1)Subparagraph
(D)of section 48(a)(5) is amended— #####
(A)by striking “and” at the end of clause (i)(II), #####
(B)by striking the period at the end of clause
(ii)and inserting a comma, and #####
(C)by adding at the end the following new clauses: > > ###### “(iii) > > which is constructed, reconstructed, erected, or acquired by the taxpayer, and > > > ###### “(iv) > > the original use of which commences with the taxpayer.” > . ####
(2)**[**[26 U.S.C. 48 note](/us/usc/t26/s48)**]** Paragraphs
(1)and
(2)of subsection
(a)of section 1603 of division B of the American Recovery and Reinvestment Act of 2009 are each amended by striking “placed in service” and inserting “originally placed in service by such person”. ###
(d)Effective Dates **[**[26 U.S.C. 45 note](/us/usc/t26/s45)**]** ####
(1)In general Except as provided in paragraphs
(2)and (3), the amendments made by this section shall take effect on the date of the enactment of this Act. ####
(2)Modification to definition of municipal solid waste The amendments made by subsection (a)(2) shall apply to electricity produced and sold after the date of the enactment of this Act, in taxable years ending after such date. ####
(3)Technical corrections The amendments made by subsection
(c)shall apply as if included in the enactment of the provisions of the American Recovery and Reinvestment Act of 2009 to which they relate.
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Sec. 407
EXTENSION AND MODIFICATION OF CREDITS WITH RESPECT TO FACILITIES PRODUCING ENERGY FROM CERTAIN RENEWABLE RESOURCES
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