PORTFOLIO

Tax Incentives for Production and Conservation of Energy and Natural Resources (Portfolio 512)

Be a trusted advisor to your clients with Bloomberg BNA Tax Portfolios. In this portfolio, Premier tax experts bring together in one place analyses of the many income tax provisions designed to encourage production of energy resources and conservation of energy and other natural resources. The portfolio separates the analyses into six categories. The portfolio also presents a history of the provisions as they have been added, expanded, and modified. 

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DESCRIPTION

The Tax Incentives for Production and Conservation of Energy and Natural Resources, No. 512 portfolio brings together in one place analyses of the many income tax provisions designed to encourage production of energy resources and conservation of energy and other natural resources. The portfolio separates the analyses into six categories. The portfolio also presents a history of the provisions as they have been added, expanded, and modified.
First, the portfolio discusses production incentives that are provided in the form of deductions. This brings together in one place analyses of amounts that are accounted for in computing taxable income on account of energy production.
Second, the portfolio discusses production incentives that are provided in the form of credits. This brings together in one place analyses of amounts that are subtracted in computing tax liability on account of energy production.
Third, the portfolio discusses incentives for the conservation of energy and other natural resources that are provided in the form of exclusions from gross income. This brings together in one place analyses of amounts that are excluded in computing gross income on account of conservation activities.
Fourth, the portfolio discusses incentives for the conservation of energy and other natural resources that are provided in the form of deductions. This brings together in one place analyses of amounts that are deducted in computing taxable income on account of conservation activities.
Fifth, the portfolio discusses incentives for the conservation of energy and other natural resources that are provided in the form of credits. This brings together in one place analyses of amounts that are subtracted in computing tax liability on account of conservation activities.
Sixth, the portfolio discusses deductions and credits that are provided as incentives for nuclear energy. Some focus on the decommissioning of nuclear power plants, and others on the production of nuclear energy.


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AUTHORS

Bloomberg BNA Portfolios are written by leading tax professionals who set the standard as leaders in their fields. The Tax Incentives for Production and Conservation of Energy and Natural Resources, No. 512 portfolio was authored by the following attorneys.  

 

James Edward Maule, Professor of Law, Villanova, has made major contributions to widely used tax treatises such as Bloomberg BNA Tax Management Portfolios, including 560 T.M., Income Tax Basis: Overview and Conceptual Aspects, 590 T.M., Taxation of Real Estate Transactions, and 1510 T.M., State Taxation of S Corporations. Among his other books are Better That 100 Witches Should Live: The 1696 Acquittal of Thomas Maule of Salem, Massachusetts, on Charges of Seditious Libel and Its Impact on the Development of First Amendment Freedoms, and Preparing the 1065 Return. He has been a contributing author to many books such as Bloomberg BNA Tax Practice Series. Professor Maule also has written a number of articles, including: No Thanks, Uncle Sam, You Can Keep Your Tax Break, 31 Seton Hall Leg. J 81 (2006), Instant Replay, Weak Teams, and Bad Calls: An Empirical Study of Alleged Tax Court Judge Bias, 66 U. Tenn. L. Rev. 351 (1999), Tax and Marriage: Unhitching the Horse and Carriage, 67 Tax Notes 539 (1995), and Getting Hamr'd: Highest Applicable Marginal Rates That Nail Unsuspecting Taxpayers, 53 Tax Notes 1423 (1991). Professor Maule has authored several ABA Tax Section Committee reports on S corporations and partnerships, and many columns in professional periodicals. In addition, he has written computer-assisted legal educational exercises and computer programs. He also has a strong interest in First Amendment history and church/state issues.

Professor Maule is a member of the Advisory Board on U.S. Income of BNA Tax Management, Inc., and has presented many CLE programs on taxation and application of the Internet to the teaching and practice of law. He is a member of the ABA Tax Section, for which he has chaired several subcommittees and has served on a variety of committees and task forces.

 

Credentials / B.S., University of Pennsylvania (1973); J.D., Villanova University (1976); LL.M. (Taxation), George Washington University (1979); lecturer, Villanova University Graduate Tax Program and Tax Forum CLE Programs; lecturer, Philadelphia Bar Association Tax Section; member, U.S. Income Advisory Board, Tax Management Inc.; former attorney-advisor, United States Tax Court, Judge Herbert L. Chabot; former attorney-advisor, Chief Counsel to the Internal Revenue Service; former Editorial Advisory Board member and Columnist, Journal of Limited Liability Companies; former lecturer, ALI-ABA; former lecturer, Tax Management, Inc. & Continuing Legal Education Satellite Network; former lecturer, Pennsylvania Bar Institute; former lecturer, Georgetown University Law Center Institute on State and Local Taxation; former lecturer, The Dickinson School of Law CLE Programs; member, American Bar Association, Section of Taxation, Committee on S Corporations (Consultant and former Chair, Subcommittee on Subchapter S and State Law; former Chair, Subcommittee on Comparison of Partnerships and S Corporations); member, American Bar Association, Section of Taxation, Committee on Teaching Taxation (former Chair, Subcommittee on Manuscripts and Unpublished Teaching Materials; member, Subcommittee on Important Developments); member, American Bar Association, Section of Taxation, Tax Practice Management Committee; member, American Bar Association, Section of Taxation, Formation of Tax Policy Committee; member, American Bar Association, Section of Taxation, Committee on Tax Structure and Simplification; former Chair, American Bar Association, Section of Taxation, Phaseout Tax Elimination Project; former member, American Bar Association, Section of Taxation, Task Force on Pass-Through Entities; former member, American Bar Association, Section of Taxation, Task Force on Legislative Recommendation No. 86-1; former member, Philadelphia Bar Association Tax Section; author of numerous books, monographs, and book chapters; contributor to various tax periodicals.


TABLE OF CONTENTS

Detailed Analysis

I. Introduction

A. In General

B. Historical Background

II. Production Incentives in the Form of Deductions

A. Depletion

1. In General

2. Computation for Property Other than Timber

a. In General

b. Basis for Depletion

c. Number of Units Remaining as of the Tax Year

d. Number of Units Sold During the Tax Year

3. Computation for Timber Property

a. In General

b. Number of Units Cut

c. Depletion Unit

(1) In General

(2) Recomputed Basis

(3) Adjusted Units

4. Taxpayers Entitled to Deduction

a. In General

b. Multiple Owners or Interests

B. Percentage Depletion

1. In General

2. Excluded Properties

a. In General

b. Natural Gas Exception

c. Independent Producer Exception

3. Gross Income from the Property

a. In General

(1) Measurement of Gross Income

(2) Exclusions

b. Mining

(1) In General

(2) Treatment Processes Considered as Mining

4. Specified Percentage

5. Taxable Income Limitations

C. Geological and Geophysical Expenditure Amortization

D. Depreciation Incentives for Energy Property

1. Cellulosic Biofuel Ethanol Plant Property

a. In General

b. Qualified Cellulosic Biofuel Plant Property

(1) In General

(2) Exceptions

(3) Special Rules

2. Accelerated Depreciation for Energy Property

a. In General

b. Five-Year Property

(1) In General

(2) Energy Investment Credit Property

(a) In General

(b) Solar or Wind Energy Property

(c) Solar Illumination Property

(d) Geothermal Energy Property

(e) Qualified Fuel Cell Property

(f) Qualified Microturbine Property

(g) Combined Heat and Power System Property

(h) Qualified Small Wind Energy Property

(i) Qualified Geothermal Heat Pump System

(3) Qualified Biomass Property

(4) Ocean Thermal Energy Property

c. Seven-Year Property

d. 10-Year Property

e. 15-Year Property

E. Intangible Drilling Costs

1. In General

2. Qualified Taxpayer

3. Deductible Costs

a. In General

b. Drilling and Production Preparation

c. Time of Expenditure

4. Failure to Make Election

a. Productive Wells

b. Nonproductive Wells

5. Election

6. Exception

F. Development Expenditures

1. In General

2. Exceptions

a. Expenditures Otherwise Deductible

b. Depreciable Property

c. Fractional Share Limitation

d. Prior Owner's Expenditures

e. Election of Deduction Based on Production

f. Foreign Development Expenditures

g. Alternative Minimum Tax Election

G. Tertiary Injectant Expenses

1. In General

2. Exceptions

3. Qualified Tertiary Injectant Expenses

a. In General

b. Tertiary Recovery Method

c. Hydrocarbon Limitations

(1) In General

(2) Insignificant Amount of Recoverable Hydrocarbons

(3) Limitation Computation

H. EPA Sulfur Regulation Compliance Costs

1. In General

2. Small Business Refiners

3. Qualified Capital Costs

4. Applicable Percentage

5. Election

6. Cooperative Owners

a. In General

b. Election

I. Qualified Refinery Property Costs

1. In General

2. Qualified Refinery Property

3. Deduction Prohibited

4. Cooperative Owners

5. Election

J. Mining Exploration Expenditures

1. In General

2. Exceptions

a. Expenditures Otherwise Deductible

b. Depreciable Property

c. Fractional Share Limitation

d. Prior Owner's Expenditures

e. Percentage Depletion Qualification

f. Foreign Development Expenditures

g. Alternative Minimum Tax Election

3. Election

a. Time and Manner

b. Scope

K. Reforestation Expenditures

1. In General

2. Qualified Timber Property

3. Reforestation Expenditures

4. Limitations

a. Maximum Dollar Limitation

(1) In General

(2) Related Taxpayers

b. Trusts and Estates

c. Life Tenants and Remainders

5. Amortization Deduction Computation

6. Election

III. Production Incentives in the Form of Credits

A. The Energy Components of the Investment Credit

1. In General

2. Energy Credit

a. In General

b. Computation of Credit

(1) In General

(2) Energy Percentage

(3) Limitations

(4) Subsidized Property

c. Energy Property

(1) In General

(2) Solar Energy Property

(3) Solar Illumination Property

(4) Geothermal Energy Property

(5) Qualified Fuel Cell Property

(6) Qualified Microturbine Property

(7) Combined Heat and Power System Property

(8) Qualified Small Wind Energy Property

(9) Qualified Geothermal Heat Pump System

(10) Qualified Investment Credit Facilities

d. Grants in Lieu of Credit for Specified Energy Property

(1) In General

(2) Grant Amount

(3) Eligibility

(4) Definitions

(5) "Placed in Service" and "Beginning of Construction"

(6) Leasing

(7) Recapture

(8) Application Process

3. Qualifying Advanced Coal Project Credit

a. In General

b. Qualified Investment

(1) In General

(2) Eligible Property

(3) Subsidized Property

c. Qualifying Advanced Coal Project

d. Integrated Gasification Combined Cycle Project

e. Advanced Coal-Based Generation Technology

f. Credit Amounts

g. Certification and Allocation of Credits

h. Impact on Clean Air Act

4. Qualifying Gasification Project Credit

a. In General

b. Qualified Investment

(1) In General

(2) Eligible Property

(3) Subsidized Property

c. Qualifying Gasification Project

d. Credit Amounts

e. Certification and Allocation of Credits

5. Qualifying Advanced Energy Project Credit

a. In General

b. Qualified Investment

c. Eligible Property

d. Qualifying Advanced Energy Project

e. Credit Amounts

f. Certification and Allocation of Credits

6. Progress Expenditures

a. In General

b. Progress Expenditure Property

c. Qualified Progress Expenditures

7. At-Risk Limitations

a. In General

b. Credit Base

c. Applicable Property

(1) In General

(2) Covered Taxpayers

(3) Applicable At-Risk Activity

(a) In General

(b) Separation and Aggregation Rules

(c) Exceptions

(i) Closely Held Corporation Equipment Leasing

(ii) Active Businesses of Qualified C Corporations

d. Nonqualified Nonrecourse Financing

(1) In General

(2) Nonrecourse Financing

(3) Qualified Person

(4) Related Person

e. Application to Partnerships and S Corporations

f. Subsequent Decreases in Nonqualified Nonrecourse Financing

g. Subsequent Increases in Nonqualified Nonrecourse Financing

(1) In General

(2) Qualified Energy Property

8. Recapture of Investment Tax Credit

a. In General

b. Early Disposition Recapture Amounts

c. Exceptions

d. At-Risk Reduction Recapture

9. Lessors and Lessees

a. Investment Credit Sales and Leasebacks

b. Lessor Pass-Through of Investment Credit to Lessee

(1) In General

(2) Restrictions

(3) Full Pass-Through

(4) Partial Pass-Through

(5) Election

B. Alcohol Fuel Credit

1. In General

2. Computation of Credit

a. In General

b. Alcohol Mixture Credit

c. Alcohol Credit

d. Small Ethanol Producer Credit

e. Cellulosic Biofuel Producer Credit

3. Product Definitions

a. Alcohol

b. Special Fuel

c. Volume of Alcohol

4. Eligible Small Ethanol Producer

5. Special Rules for Related Persons and Pass-Through Entities

a. Estates and Trusts

b. Special Rules for Applying Small Ethanol Producer Limits

(1) Controlled Corporate Groups

(2) Commonly Controlled Taxpayers

(3) Pass-Through Entities

(4) Cooperatives

c. Special Rules for Apportioning Cellulosic Biofuel Producer Credit

6. Excise Tax on Prohibited Changes in Use or Character

7. Election to Forgo Credit

C. Biodiesel and Renewable Diesel Fuel Credit

1. In General

2. Computation of Credit

a. In General

b. Biodiesel Mixture Credit

c. Biodiesel Credit

d. Small Agri-Biodiesel Producer Credit

3. Product Definitions

a. Biodiesel

b. Agri-biodiesel

c. Renewable Diesel

4. Eligible Small Agri-Biodiesel Producer

5. Special Rules for Related Persons and Pass-Through Entities

a. Estates and Trusts

b. Special Rules for Applying Small Agri-Biodiesel Producer Limits

(1) Controlled Corporate Groups

(2) Commonly Controlled Taxpayers

(3) Pass-Through Entities

(4) Cooperatives

6. Excise Tax on Prohibited Changes in Use or Character

D. Enhanced Oil Recovery Credit

1. In General

2. Computation of Credit

a. In General

b. Reduction for Increased Crude Oil Prices

c. Qualified Enhanced Oil Recovery Costs

(1) In General

(2) Qualified Enhanced Oil Recovery Project

3. Election to Forgo Credit

E. Renewable Electricity Production Credit

1. In General

2. Computation of Credit

a. Credit Before Reductions

(1) In General

(2) Increase for Producers of Refined Coal

(3) Increase for Producers of Indian Coal

b. Reductions

(1) Reduction for Increased Electricity Prices

(2) Reduction for Subsidies

(3) Reduction for Certain Facilities

3. Qualified Energy Resources

a. In General

b. Closed-Loop Biomass

c. Open-Loop Biomass

d. Geothermal Energy

e. Small Irrigation Power

f. Municipal Solid Waste

g. Qualified Hydropower Production

h. Marine and Hydrokinetic Renewable Energy

4. Qualified Facility

a. In General

b. Wind Facility

c. Closed-Loop Biomass Facility

d. Open-Loop Biomass Facility

e. Geothermal Energy Facility

f. Solar Energy Facility

g. Small Irrigation Power Facility

h. Landfill Gas Facility

i. Trash Facility

j. Refined Coal Production Facility

k. Qualified Hydropower Facility

l. Indian Coal Production Facility

m. Marine and Hydrokinetic Renewable Energy Facility

5. Credit Period

6. Qualified Sale

a. In General

b. Disqualified Wind-Generated Electricity

7. Related Person

8. Inflation Adjustment Factor

9. Allocation Among Taxpayers

a. Multiple Owners

b. Estates and Trusts

c. Partnerships

d. S Corporation Shareholders

e. Cooperatives

F. Low-Sulfur Diesel Fuel Production Credit

1. In General

2. Computation of Credit

a. In General

b. Limitations

3. Small Business Refiner

4. Low Sulfur Diesel Fuel

5. Refinery Runs

6. Required Certification

7. Cooperatives

8. Election to Forgo Credit

G. Marginal Oil and Gas Well Production Credit

1. In General

2. Computation of Credit

a. In General

b. Reduction

c. Inflation Adjustment Factor

d. Qualified Crude Oil and Natural Gas Production

3. Oil and Natural Gas

4. Eligible Taxpayers

H. Nonconventional Source Fuels Credit

1. In General

2. Computation of Credit

a. Credit Before Reductions

b. Reductions and Limitations

(1) Reduction for Increased Crude Oil Prices

(2) Reduction for Subsidies

(3) Reduction for the Energy Credit

(4) Reduction for Enhanced Oil Recovery Credit

c. Inflation Adjustment Factor

d. Barrel-of-Oil Equivalent

3. Qualified Fuels

a. In General

b. Physical Definition Requirement

(1) In General

(2) Qualified Natural Gas

(3) Solid Synthetic Fuels

(4) Biomass

c. Production Date Requirement

(1) In General

(2) Special Fuels

(3) Coke and Coke Gas

d. Conventionality of Production Process

4. Qualified Sales

5. Attributable to Taxpayer

6. Estates and Trusts

I. Clean Renewable Energy Bond Credit

1. In General

2. Computation

a. In General

b. Limitation

3. Clean Renewable Energy Bond

a. Definition

b. Qualified Issuer

c. National Clean Renewable Energy Bond Limitation

d. Qualified Borrower

e. Qualified Project

f. Qualified Issue

g. Maximum Term

h. Governmental Body

4. Pass-Through Entities

5. Special Rules

a. Pooled Financing Bonds

b. Reporting

J. New Clean Renewable Energy Bond Credit

1. In General

2. Computation

a. In General

b. Limitation

3. Qualified New Clean Renewable Energy Bond

a. Definition

b. New Clean Renewable Energy Bond

(1) Definition

(2) National Qualified New Clean Renewable Energy Bond Limitation

(3) Qualified Renewable Energy Facility

(4) Public Power Provider

(5) Governmental Body

(6) Cooperative Electric Company

(7) Qualified Issuer

(8) Qualified Costs

c. Expenditure Requirement

d. Reporting Requirement

e. Arbitrage Requirement

f. Maturity Limitation Requirement

g. Conflict of Interest Requirement

h. Available Project Proceeds

4. Pass-Through Entities

5. Stripped Credits

6. Expiration of Allocation

K. Trans-Alaska Pipeline Liability Fund Credit

1. In General

2. Computation of Credit

a. In General

b. Limitation on Amount

c. Limitation on Carryback

3. Credit Financed by Trust Fund

IV. Conservation Incentives in the Form of Exclusions

A. Clean Air Act Amendments

B. Energy Conservation Subsidies

C. Certain Cost-Sharing Payments

1. In General

2. Excludible Portion

3. Amount Included in Gross Income

a. In General

b. Section 126 Improvement

c. Value of § 126 Improvement

d. Cost of the Improvement

e. Computation of Excludible Portion

4. Qualifying Conservation Programs

a. In General

b. Small Watershed Programs

D. Illegal Irrigation Subsidies

V. Conservation Incentives in the Form of Deductions

A. Clean-Fuel Vehicle Property and Certain Refueling Property

1. In General

2. Qualified Clean-Fuel Vehicle Property

3. Qualified Clean-Fuel Vehicle Refueling Property

4. Limitations

5. Recapture of Deduction

a. In General

b. Qualified Clean-Fuel Vehicle Property Recapture

c. Qualified Clean-Fuel Vehicle Refueling Property Recapture

6. Basis Adjustments and Application of § 1245

B. Energy-Efficient Commercial Building Property

1. In General

2. Deduction Limitation

3. Energy-Efficient Commercial Building Property

a. In General

b. Partial Allowance

c. Interim Lighting System Rules

4. Public Property

5. Certifications

C. Soil and Water Conservation and Endangered Species Recovery Expenditures

1. In General

2. Adoption of Method

3. Scope of Method

4. Percentage Limitation

a. In General

b. Carryover

5. Soil and Water Conservation Expenditures Defined

a. In General

b. Exceptions

c. Conservation and Drainage District Assessments

(1) In General

(2) Nine-Year Amortization

d. Land Used in Farming

6. Policy Limitations

a. Conservation Plan Consistency

b. Wetlands

7. Engaged in the Business of Farming

a. In General

b. Landlords

c. Farms

D. Environmental Clean-Up Expenditures

1. Qualified Environmental Remediation Expenditures

a. In General

b. Qualified Environmental Remediation Expenditure

c. Qualified Contaminated Site

d. Hazardous Substance

e. Recapture of Deduction

f. Making the § 198 Election

2. Other Environmental Clean-Up Expenditures

a. In General

b. Underground Storage Tanks

c. Asbestos Removal

d. Nuclear Waste Containment

VI. Conservation Incentives in the Form of Credits

A. Nonbusiness Energy Property Credit

1. In General

2. Computation of Credit

a. In General

b. Limitations

3. Definitions

a. Qualified Energy Efficiency Improvement

b. Residential Energy Property Expenditures

4. Allocation of Credit

5. When Expenditure Made

6. Manufacturer's Certification

B. Residential Energy-Efficient Property Credit

1. In General

2. Computation

a. In General

b. Limitations

c. Qualified Solar Electric Property Expenditure

d. Qualified Solar Water Heating Property Expenditure

e. Qualified Fuel Cell Property Expenditure

f. Qualified Small Wind Energy Property Expenditure

g. Qualified Geothermal Heat Pump Property Expenditure

h. Labor and Installation Costs

3. Allocation of Credit

4. When Expenditure Made

5. Limitation

C. New Energy-Efficient Home Credit

1. In General

2. Computation

3. Qualified New Energy-Efficient Home

a. In General

b. Comparable Dwelling Unit

c. Certification

(1) In General

(2) Certified New Home

(3) Certified Manufactured Home

(4) Alternatively Certified Manufactured Home

(5) Energy Star Manufactured Home

(6) Generally Applicable Standards

4. Eligible Contractor

D. Energy-Efficient Appliance Credit

1. In General

2. Qualified Energy-Efficient Appliances

3. Computation

a. In General

b. Applicable Amounts

c. Eligible Production

d. Limitations

4. Special Rules

a. Tax-Exempt Organizations

b. Estates and Trusts

c. Regulated Investment Companies and Real Estate Investment Trusts

d. Farmers' and Other Cooperatives

e. Controlled Groups

E. Certain Plug-In Electric Vehicles

1. In General

2. Eligibility Requirements

3. Application with Other Credits

4. Special Rules

5. Certification

F. Alternative Motor Vehicle Credit

1. In General

2. Alternative Motor Vehicles

a. In General

b. New Qualified Fuel Cell Motor Vehicle

c. New Advanced Lean-Burn-Technology Motor Vehicle

d. New Qualified Hybrid Motor Vehicle

e. New Qualified Alternative-Fuel Motor Vehicle

f. Motor Vehicle

3. Computation

a. In General

b. New Qualified Fuel Cell Motor Vehicle Credit

c. New Advanced Lean-Burn-Technology Motor Vehicle Credit

d. New Qualified Hybrid Motor Vehicle Credit

e. New Qualified Alternative-Fuel Motor Vehicle Credit

f. Plug-In Conversion Credit

g. Limitations

(1) Quantity Limitation

(2) Section 179 Limitation

h. Recapture

4. City Fuel Economy

5. Vehicle Definitions

6. Manufacturer

7. Vehicles Used by Tax-Exempt Entities

8. Application with Other Credits

G. Alternative Fuel Vehicle Refueling Property Credit

1. In General

2. Qualified Alternative-Fuel Vehicle Refueling Property

3. Computation

a. In General

b. Limitations

(1) Cap Amount

(2) Section 179 Limitation

4. Property Used by Tax-Exempt Entities

5. Application with Other Credits

6. Recapture of Credit

H. New Qualified Plug-in Electric-Drive Motor Vehicle Credit

1. For Vehicles Acquired After December 31, 2009

a. In General

b. Computation

c. Limitations

d. Definitions

e. Application with Other Credits

2. For Vehicles Acquired Before January 1, 2010

a. In General

b. New Qualified Plug-in Electric-Drive Motor Vehicle

c. Computation

(1) In General

(2) Limitations

(a) Gross Vehicle Weight

(b) Sales Quantity

(c) Section 179 Limitation

(3) Recapture

d. Definitions

e. Vehicles Used by Tax-Exempt Entities

f. Application with Other Credits

I. Carbon Dioxide Sequestration Credit

1. In General

2. Computation of Credit

a. In General

b. Limitation

c. Expiration of Credit

3. Allocation Among Taxpayers

4. Recapture of Credit

J. Forestry Conservation Bond Credit

1. In General

2. Computation

a. In General

b. Limitation

3. Qualified Forestry Conservation Bond

a. In General

b. Definition, Limitation, and Purpose

(1) In General

(2) Limitation

(3) Qualified Forestry Conservation Purpose

(4) Qualified Issuer

(5) Special Arbitrage Rule

c. Expenditure Requirement

d. Reporting Requirement

e. Arbitrage Requirement

f. Maturity Limitation Requirement

g. Conflict-of-Interest Requirement

h. Available Project Proceeds

4. Pass-Through Entities

5. Election to Treat Credit Allocation as Payment of Tax

6. Stripped Credits

K. Energy Conservation Bond Credit

1. In General

2. Computation

a. In General

b. Limitation

3. Energy Conservation Bond

a. In General

b. Qualified Energy Conservation Bond

(1) In General

(2) Limitation

(3) Qualified Energy Conservation Purpose

c. Expenditure Requirement

d. Reporting Requirement

e. Arbitrage Requirement

f. Maturity Limitation Requirement

g. Conflict-of-Interest Requirement

h. Available Project Proceeds

4. Pass-Through Entities

5. Stripped Credits

VII. Incentives for Nuclear Energy

A. In General

B. Gross Income: Nuclear Decommissioning Cost Recoveries

C. Nuclear Decommissioning Expense Deductions

1. In General

2. Nuclear Decommissioning Costs

a. In General

b. Exceptions

3. Eligible Taxpayer

a. In General

b. Direct Ownership Interest

c. Qualifying Leasehold Interest

d. Qualified Experimental Nuclear Facility Interest

4. Amount Limitation

a. In General

b. Ruling Amount

c. Schedule of Ruling Amounts

(1) In General

(2) Funding Period

(3) Nuclear Decommissioning Costs Allocable to Fund

(4) Computational Premises

(a) In General

(b) Alternative Formula or Method

(c) Formula Method

(5) Procedure

(a) In General

(b) Manner of Requesting Schedule

(i) In General

(ii) Number and Scope of Requests

(iii) Noncompliance

(c) Information Required

(d) Mandatory Review

(i) In General

(ii) Alternative Formula or Method

(iii) License Renewal or Public Utility Commission Action

(iv) Procedural Compliance

(e) Elective Review

(6) Payments Before Receipt of Schedule of Ruling Amounts

(a) In General

(b) Ruling Amount Exceeding Taxpayer Proposal

(c) Ruling Amount Less than Taxpayer Proposal

(7) Level Funding Limitation

5. Tax Year Limitation

6. Special Transfers to Qualified Funds

a. In General

b. Deduction

(1) In General

(2) Previously Deducted and Excluded Amounts

(3) Transfers of Qualified Funds

(4) Tax Consequences

c. Schedule of Deduction Amounts

(1) In General

(2) Procedure for Requesting Schedule of Deduction Amounts

(a) In General

(b) Number and Scope of Requests

(c) Noncompliance

(d) Information Required

7. Nuclear Decommissioning Reserve Fund

a. In General

b. Taxation of Fund

(1) In General

(2) Modified Gross Income

(a) Excluded Income

(b) Deductions Allowed

(c) Distributions of Property by Fund

(d) Tax Period

(3) Procedural Matters

(a) In General

(b) Return Filing

(i) Obligation

(ii) Fund Existence

(iii) Due Date

(c) Employer Identification Number

(d) Estimated Tax Payments

(e) Tax Deposits

(f) Additions to Tax

c. Qualification Requirements

(1) Establishment

(a) In General

(b) When Separate Funds Are Required

(c) Asset Pooling

(d) Limitation on Number of Funds

(2) Contribution Limitations

(3) Limitations on Use of Fund

(a) In General

(b) Administrative Costs and Other Incidental Expenses

(c) Trust Provisions

(4) Limitations on Self-Dealing

(a) In General

(b) Self-Dealing

(i) In General

(ii) Exceptions

(iii) Disqualified Person

(5) Excess Contribution Withdrawal Exception

(a) In General

(b) Excess Contribution

(6) Effect of Disqualification

(a) Effect on Fund

(b) Effect on Taxpayer

(i) Gross Income

(ii) Loss of Tax Benefits

d. Termination

(1) In General

(2) Effect of Termination

(a) Effect on Fund

(b) Effect on Taxpayer

(i) Gross Income

(ii) Loss of Tax Benefits

(3) Substantial Completion of Decommissioning

(a) In General

(b) Exception

(c) Substantial Completion Date

8. Nuclear Power Plant

9. Public Utility Commission

10. Disposition of Interest in Nuclear Power Plant

a. In General

b. Qualification Requirements

c. Consequences

d. Impact on Schedule of Ruling Amounts

(1) Transferor

(2) Transferee

11. Election Procedure

a. In General

b. Procedure

c. Election Statement

D. Advanced Nuclear Power Production Credit

1. In General

2. Computation of Credit

a. Credit Before Limitations and Phaseout

b. National Limitation

(1) In General

(2) Application Process

c. Dollar Limitation

d. Phaseout of Credit

3. Advanced Nuclear Power Facility

4. Qualified Production Period

5. Qualified Sale

6. Allocation Among Taxpayers

a. Multiple Owners

b. Estates and Trusts


WORKING PAPERS

Working Papers

Table of Worksheets

Worksheet 1 Tax Expenditures For Energy Production and Conservation Prepared by the Staff of the Joint Committee on Taxation JCX-25-09R (4/21/09)

Worksheet 2 Section 43 Enhanced Oil Recovery Credit Inflation Adjustment Factors and Reference Prices

Worksheet 3 Section 45 Renewable Electricity Production Credit Inflation Adjustment Factors, Reference Prices, and Credit Amounts

Worksheet 4 Section 45K Nonconventional Source Fuel Credit Inflation Adjustment Factors, Reference Prices, and Credit Amounts

Worksheet 5 List of Vehicles Certified as § 30B Qualified Hybrid Motor Vehicles

Worksheet 5A List of Vehicles Certified as § 30D Qualified Plug-In Electric Motor Vehicles and as § 30 Plug-In Electric Vehicles

Worksheet 6 Qualifying Gasification Project Program

Worksheet 7 Qualifying Advanced Coal Project Program

Worksheet 8 Certification of Energy Efficient Home Credit

Worksheet 9 Energy Efficient Home Credit; Manufactured Homes

Worksheet 10 Low Sulfur Diesel Fuel Certification

Worksheet 11 Qualifying Advanced Energy Project Credit Program

Worksheet 12 Section 1603 Program Guidance

Worksheet 13 Application for Section 1603: Payments for Specified Renewable Energy Property in Lieu of Tax Credits

Worksheet 14 Section 1603 Terms and Conditions

Bibliography

OFFICIAL

Statutes:

Regulations:

Legislative History

Treasury Rulings:

Cases:

UNOFFICIAL

Periodicals:

1979

1980

1981

1982

1983

1985

1989

1990

1991

1992

1993

1998

2001

2002

2004

2005

2006

2007