Republican News

Republican News

SA 3129. Mr. MCCAIN submitted an amendment intended to be proposed by him to the bill S. 1637, to amend the Internal Revenue Code of 1986 to comply with the World Trade Organization rulings on the FSC/ETI benefit in a manner that preserves jobs and production activities in the United States, to reform and simplify the international taxation rules of the United States, and for other purposes; which was ordered to lie on the table; as follows: Strike title VIII. This amendment strikes VIII --- the energy tax package. SA 3130. Mr. MCCAIN submitted an amendment intended to be proposed by him to the bill S. 1637, to amend the Internal Revenue Code of 1986 to comply with the World Trade Organization rulings on the FSC/ETI benefit in a manner that preserves jobs and production activities in the United States, to reform and simplify the international taxation rules of the United States, and for other purposes; which was ordered to lie on the table; as follows: Beginning on page 797, line 17, strike all through page 810, line 9. This amendment strikes all Section 29 tax credits, credits for the production of fuel from unconventional sources, such as oil and gas from tight sand, oil shale, etc. SA 3131. Mr. MCCAIN submitted an amendment intended to be proposed by him to the bill S. 1637, to amend the Internal Revenue Code of 1986 to comply with the World Trade Organization rulings on the FSC/ETI benefit in a manner that preserves jobs and production activities in the United States, to reform and simplify the international taxation rules of the United States, and for other purposes; which was ordered to lie on the table; as follows:  Beginning on page 773, line 4, strike all through page 827, line 14. This amendment strikes Subtitle E: Oil and Gas provisions. In addition to the above amendments, Senators McCain and Kyl each have an amendment in the nature of substitutes that strikes the entire energy tax package. Senator Grassley has filed a manager’s package of amendments. This package includes two energy-related amendments: An amendment to the section 45 credit, addressing use of the credit by the TVA and an amendment establishing a credit for qualifying pollution control equipment. It allows a “qualifying facility” to receive a credit for technology installed to reduced air emissions. A QF is defined as a facility placed in service after Dec. 31. 2003 producing not less than 1 million gallons of ethanol in a taxable year. The language of each amendment follows:    On page 625, between lines 21 and 22, insert the following:     ``(D) USE BY TVA.--     ``(i) IN GENERAL.--Notwithstanding any other provision of law, in the case of a person described in subparagraph (A)(ii)(VI), any credit to which subparagraph (A)(i) applies may be applied as a credit against the payments required to be made in any fiscal year under section 15d (e) of the Tennessee Valley Authority Act of 1933 (16 U.S.C. 831n-4(e)) as an annual return on the appropriations investment and an annual repayment sum.     ``(ii) TREATMENT OF CREDITS.--The aggregate amount of credits described in subparagraph (A)(i) with respect to such person shall be treated in the same manner and to the same extent as if such credits were a payment in cash and shall be applied first against the annual return on the appropriations investment.     ``(iii) CREDIT CARRYOVER.--With respect to any fiscal year, if the aggregate amount of credits described subparagraph (A)(i) with respect to such person exceeds the aggregate amount of payment obligations described in clause (i), the excess amount shall remain available for application as credits against the amounts of such payment obligations in succeeding fiscal years in the same manner as described in this subparagraph.  On page 931, after line 18, add the following:    SEC. 899B. CREDIT FOR QUALIFYING POLLUTION CONTROL EQUIPMENT.     (a) ALLOWANCE OF QUALIFYING POLLUTION CONTROL EQUIPMENT CREDIT.--Section 46 (relating to amount of credit), as amended by this Act, is amended by striking ``and'' at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting ``, and'', and by adding at the end the following new paragraph:     ``(4) the qualifying pollution control equipment credit.''.     (b) AMOUNT OF QUALIFYING POLLUTION CONTROL EQUIPMENT CREDIT.--Subpart E of part IV of subchapter A of chapter 1 (relating to rules for computing investment credit), as amended by this Act, is amended by inserting after section 48A the following new section:    ``SEC. 48B. QUALIFYING POLLUTION CONTROL EQUIPMENT CREDIT.     ``(a) IN GENERAL.--For purposes of section 46, the qualifying pollution control equipment credit for any taxable year is an amount equal to 15 percent of the basis of the qualifying pollution control equipment placed in service at a qualifying facility during such taxable year.     ``(b) QUALIFYING POLLUTION CONTROL EQUIPMENT.--For purposes of this section, the term `qualifying pollution control equipment' means any technology installed in or on a qualifying facility to reduce air emissions of any pollutant regulated by the Environmental Protection Agency under the Clean Air Act, including thermal oxidizers, regenerative thermal oxidizers, scrubber systems, evaporative control systems, vapor recovery systems, flair systems, bag houses, cyclones, continuous emissions monitoring systems, and low nitric oxide burners.     ``(c) QUALIFYING FACILITY.--For purposes of this section, the term `qualifying facility' means any facility which produces not less than 1,000,000 gallons of ethanol during the taxable year.     ``(d) SPECIAL RULE FOR CERTAIN SUBSIDIZED PROPERTY.--Rules similar to section 48(a)(4) shall apply for purposes of this section.     ``(e) CERTAIN QUALIFIED PROGRESS EXPENDITURES RULES MADE APPLICABLE.--Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of this subsection.''.     (c) RECAPTURE OF CREDIT WHERE EMISSIONS REDUCTION OFFSET IS SOLD.--Paragraph (1) of section 50(a) is amended by redesignating subparagraph (B) as subparagraph (C) and by inserting after subparagraph (A) the following new subparagraph:     ``(B) SPECIAL RULE FOR QUALIFYING POLLUTION CONTROL EQUIPMENT.--For purposes of subparagraph (A), any investment property which is qualifying pollution control equipment (as defined in section 48B(b)) shall cease to be investment credit property with respect to a taxpayer if such taxpayer receives a payment in exchange for a credit for emission reductions attributable to such qualifying pollution control equipment for purposes of an offset requirement under part D of title I of the Clean Air Act.''.     (d) SPECIAL RULE FOR BASIS REDUCTION; RECAPTURE OF CREDIT.--Paragraph (3) of section 50(c) (relating to basis adjustment to investment credit property), as amended by this Act, is amended by inserting ``or qualifying pollution control equipment credit'' after ``energy credit''.     (e) EFFECTIVE DATE.--The amendments made by this section shall apply to property placed in service after December 31, 2003, in taxable years ending after such date, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).