H.R. 6049 would amend the Internal Revenue Code of 1986 to provide incentives for energy production and conservation, to extend certain expiring provisions, to provide individual income tax relief.

== Detailed Summary ==

<summary>
Energy and Tax Extenders Act<b>(This measure has not been amended since it was reported to the House on May 20, 2008. The summary of 2008 - Amends the Internal Revenue Code to extend various provisions relating to energy production and conservation and to individual and business-related activities.that version is repeated here.)</b>

Extends through 2009Renewable Energy and Job Creation Act of 2008 -Amends the Internal Revenue Code to provide tax creditincentives for producing electricity from wind facilitiesenergy production and through 2011 for closedconservation, to extend expiring tax provisions, and open-loop biomass, geothermal, small irrigation, hydropower, landfill gas,to extend tax benefits to individual and trash combustion facilities. Includes marine and hydrokinetic renewable energy as a renewable resource for purposes of such tax credit.business taxpayers.

Extends through 2014:<b>Title I: Energy Tax Incentives - Subtitle A: Energy Production Incentives - Part I: Renewable Energy Incentives - </b>(Sec. 101) Extends: (1) through 2009 the tax credit for producing electricity from qualified wind facilities; and (2) through 2011 the energy tax credits for producing electricity from closed and open-loop biomass, geothermal or solar energy, fuel cell,small irrigation power, municipal solid waste, trash combustion, and microturbine property; and (2) the residential energy efficient propertyqualified hydropower. Imposes a limit on such tax credit based upon investment in renewable resource facilities placed in service after 2009 in lieu of the current phaseout provisions for such credit. Expands the definitions of and rules for &quot;open-loop biomass facility,&quot; &quot;qualified trash combustion facility,&quot; and &quot;nonhydroelectric dam&quot; for purposes of such credit.

Increases(Sec. 102) Includes marine and hydrokinetic renewable energy as a renewable resource for purposes of the authorization levelstax credit for new cleanproducing electricity from renewable energy bonds.resources.

Allows(Sec. 103) Extends through 2014 the energy tax creditscredit for investment in advanced coal electricitysolar energy, fuel cell, and coal gasification projects.microturbine property. Allows a new energy tax credit for combined heat and power system property. Increases to $1,500 the credit limitation for fuel cell property. Modifies energy tax credit rules to allow: (1) offsets of tax credit amounts against alternative minimum tax (AMT) liabilities; and (2) public utility property to qualify for such credit.

Extends(Sec. 104) Extends through 20182014 the temporary increase in coal excise taxes. Sets forth special rulestax credit for refundsresidential energy efficient property. Increases to $4,000 the maximum dollar amount of coal excise taxessuch credit for solar electric property. Allows a credit for 30% of expenditures for wind turbines used to certain producers or exporters.generate electricity in a residence and for geothermal heat pumps.

Directs the Secretary of the Treasury(Sec. 105) Extends deferral rules for gain from sales or dispositions by qualified electric utilities made prior to study and report to Congress on: (1) Internal Revenue Code provisions that have the largest effects on carbon and other greenhouse gas emissions; and (2) current biofuel production.January 1, 2010.

Allows(Sec. 106) Allows a new tax credit for the production of cellulosic biofuels.investment in qualified new clean renewable energy bonds.

Extends through 2009 income and excise<b>Part II: Carbon Mitigation Provisions</b> - (Sec. 111) Increases to 30% the investment tax creditscredit rate for biodieselpower generation projects using integrated gasification combined cycle and renewable diesel.other advanced coal-based generation technology projects. Increases the maximum credit amounts allocable for such projects to $2.55 billion.

Allows a(Sec. 112) Increases to 30% the investment tax credit rate for new qualified plug-in electric drive motor vehicles.coal gasification projects. Increases by $250 million the aggregate credit amounts for coal gasification projects.

Allows a(Sec. 113) Extends the excise tax credit against payroll liabilities of New York Liberty Zone governmental units (i.e., New York State,on coal until the Cityearlier of New York,January 1, 2019, or any agencies or instrumentalities thereof) for expenditures involving transportation infrastructure projects in or connecting with the New York Liberty Zone.day after the first December 31st after December 31, 2007, on which there is no balance of repayable advances made to the Black Lung Disability Trust Fund and no unpaid interest on such advances.

Increases and extends through 2010 the tax credit(Sec. 114) Sets forth a special rule for alternative fuel vehicle refueling property expenditures.refund claims of coal excise tax by certain coal producers and exporters.

Extends through 2013(Sec. 115) Directs the tax deductionSecretary of the Treasury to contract with the National Academy of Sciences for energy efficient commercial building expenditures.a comprehensive review of Internal Revenue Code provisions that have the largest effects on carbon and other greenhouse gas emissions. Requires the Academy to report to Congress on the results of such study not later than two years after the enactment of this Act. Authorizes appropriations.

Extends through 2009<b>Subtitle B: Transportation and Domestic Fuel Security Provisions</b> - (Sec. 121) Includes cellulosic biofuel within the tax creditdefinition of biomass ethanol plant property for energy efficient appliances.purposes of bonus depreciation.

Extends(Sec. 122) Extends through FY2012 tax-exempt bond financing2009 income and excise tax credits for qualified green buildingbiodiesel and sustainable design projects.renewable diesel used as fuel. Increases the rates of such credits.

Extends through 2008: (1) the election to deduct state and local sales taxes in lieu of state and local income taxes; (2) the tax deductions for qualified tuition and related expenses and for certain expenses of elementary and secondary school teachers; (3) the special rules relating to regulated investment companies and for charitable contributions of capital gain real property for conservation purposes; (4) tax-free distributions from individual retirement plans (IRAs) for individuals called(Sec. 123) Disqualifies foreign-produced fuel that is used or ordered to active military duty andsold for charitable purposes; (5)use outside the election to include combat pay as earned incomeUnited States for purposes of the earned income and excise tax credit; (6) authoritycredits for use of qualified mortgage bonds to finance residences for veterans; (7) the tax exclusion for amounts received under qualified group legal services plans;alcohol, biodiesel, renewable diesel, and (8) the tax credit for nonbusiness energy property.alternative fuel production.

Extends through 2008 various business-related tax provisions, including: (1) the(Sec. 124) Allows a new tax credit for increasing research activities; (2) the tax credits for Indian employment and railroad track maintenance; (3) accelerated depreciation for qualified leasehold and restaurant improvements, for motorsports racing track facilities, and for business property on Indian reservations; (4) the expensing allowance for environmental remediation costs; (5) the tax deduction for income attributable to domestic production activities in Puerto Rico; (6) the special rule for the tax treatment of qualified plug-in electric drive motor vehicles. Defines a &quot;qualified plug-in electric drive vehicle&quot; as a motor vehicle weighing less than 14,000 pounds that meets certain paymentsemission standards under the Clean Air Act and that is propelled to tax-exempt organizationsa significant extent by an electric motor that draws electricity from a controlled subsidiary; (7) issuance authority for qualified zone academy bonds; (8) tax incentives for investment in the District of Columbia; (9) the economic development credit for American Samoa; (10) the special rule for charitable contributions of food and book inventories; (11) the increased tax deduction for corporate contributions of computer equipment and technology for educational purposes; (12) the special rule for reductions in the basis of S corporation stock for charitable contributions of property; (13) work opportunity tax credit eligibility for Hurricane Katrina employees; and (14) increases in alcohol excise taxes payable to Puerto Rico and the Virgin Islands.rechargeable battery.

Extends through 2009: (1)(Sec. 125) Allows an exclusion from the new marketsheavy truck excise tax credit; (2) the subpart F exemption for active financing income earned on business operations overseas; (3) special rules for the tax treatment of payments between related controlled foreign corporations;idling reduction devices and (4) expensing of costs ofadvanced insulation used in certain filmheavy trucks and television productions.trailers.

Makes permanent authorities for: (1) Internal Revenue Service (IRS) disclosure of(Sec. 126) Revises tax information relatingincentives for investment in the New York Liberty Zone to terrorist activities; (2) IRS undercover operations;repeal certain additional depreciation allowances and (3) Social Security Administration (SSA) disclosure ofto allow a tax informationcredit against payroll liabilities of New York Liberty Zone governmental units (i.e., New York State, the City of New York, or any agencies or instrumentalities thereof) for veterans' benefit determinations.expenditures involving transportation infrastructure projects in or connecting with such Zone.

Allows individual taxpayers an additional standard tax deduction in 2008(Sec. 127) Allows employees to exclude reimbursements for state and local real property taxes.bicycle commuting expenses from gross income.

Lowers in 2008 (from $10,000 to $8,500)(Sec. 128) Extends through 2010 the earned income threshold amounttax credit for determininginstalling nonhydrogen alternative fuel refueling property. Increases the refundable portionrate of the child tax credit.credit for alternative fuel refueling property expenditures from 30 to 50% and raises the dollar limit for commercial properties to $50,000.

Increases<b>Subtitle C: Energy Conservation and Efficiency Provisions</b> - (Sec. 141) Authorizes the AMT refundable credit amount for individual taxpayers with long-term unused tax credits in prior taxable years. Abates any underpaymentissuance of taxqualified energy conservation bonds to finance local government conservation and related interest and penalties attributable to the applicationgreenhouse gas reduction projects. Imposes a national limitation of special AMT rules for$3 billion on the treatmentissuance of incentive stock options.such bonds.

Allow attorneys a tax deduction in(Sec. 142) Extends the current taxable yeartax credit for reimbursable expenses and court costs which they pay or incur in connection with contingency fee cases.nonbusiness energy property expenditures through 2008. Includes energy-efficient biomass fuel stoves as property eligible for such tax credit.

Modifies criteria(Sec. 143) Extends the tax deduction for penalties on tax return preparers who understate tax liabilities.energy efficient commercial buildings through 2013.

Allows taxpayers who claimed a casualty loss deduction for damage to a personal residence caused by Hurricanes Katrina, Rita, or Wilma and who subsequently received a grant as compensation for such damage to file an amended tax return to disallow(Sec. 144) Revises the amounts allowable under the casualty loss deduction without payment of any tax penalty. Waives deadlinescredit for starting construction for property in the Gulf Opportunity (GO) Zone eligible for bonus depreciation. Includes Colbertenergy efficient appliances produced after 2007 (i.e., dish washers, clothes washers, and Dallas Counties in Alabama within the GO Zone for purposes of tax-exempt bond financing.refrigerators) and extends such credit through 2010.

Sets(Sec. 145) Allows an accelerated 10-year recovery period for the depreciation of qualified smart electric meters and smart electric grid systems.

(Sec. 146) Extends through FY2012 the authority to issue tax-exempt bonds for qualified green building and sustainable design projects.

<b>Title II: One-Year Extension of Temporary Provisions</b> - <b>Subtitle A: Extensions Primarily Affecting Individuals</b> - (Sec. 201) Extends through 2008: (1) the election to deduct state and local sales taxes in lieu of state and local income taxes; (2) the tax deductions for qualified tuition and related expenses and for certain expenses of elementary and secondary school teachers; (3) the exemption from withholding for interest-related and short-term capital gain dividends received from a regulated investment company; (4) tax-free distributions from individual retirement plans (IRAs) for individuals called or ordered to active military duty and for charitable purposes; (5) the election to include combat pay as earned income for purposes of the earned income tax credit; (6) authority for use of qualified mortgage bonds to finance residences for veterans; (7) special rules and definitions relating to regulated investment companies; and (8) the tax exclusion for amounts received under qualified group legal services plans.

<b>Subtitle B: Extensions Primarily Affecting Businesses</b> - (Sec. 221) Extends through 2008 the tax credit for increasing research activities. Sets forth revenue provisionsa special rule for the computation of such tax credit for taxable years in which it terminates.

Extends through 2008 other business-related tax provisions, including: (1) the tax credits for Indian employment and railroad track maintenance; (2) accelerated depreciation for qualified leasehold and restaurant improvements, for motorsports racing track facilities, and for business property on Indian reservations; (3) the expensing allowance for environmental remediation costs; (4) the tax deduction for income attributable to domestic production activities in Puerto Rico; (5) the special rule for the tax treatment of certain payments to tax-exempt organizations by a controlled subsidiary; (6) the authority for issuance of qualified zone academy bonds; (7) tax incentives for investment in the District of Columbia, including tax-exempt economic development bonds and a first-time homebuyer tax credit; (8) the economic development credit for American Samoa; (9) the special rules for charitable contributions of food and book inventories; (10) the increased tax deduction for corporate contributions of computer equipment and technology for educational purposes; (11) the special rule relating to:to reductions in the basis of S corporation stock for charitable contributions of property; and (12) work opportunity tax credit eligibility for Hurricane Katrina employees (through August 28, 2008).

Extends through 2009: (1) the inclusionnew markets tax credit; (2) the Subpart F income exemption for active financing income; and (3) expensing of qualified film and television production costs.

<b>Subtitle C: Other Extensions</b> - (Sec. 251) Makes permanent the authority for the Internal Revenue Service (IRS) to disclose tax return information related to terrorist activities.

(Sec. 252) Makes permanent the authority for the IRS to conduct undercover operations.

(Sec. 253) Makes permanent the authority for disclosure of tax return information to the Department of Veterans Affairs (VA) for veterans benefit determinations.

(Sec. 254) Extends through 2008 the increased payment ($10.50 to $13.25 per proof gallon) of distilled spirits excise tax to the Treasuries of Puerto Rico and the Virgin Islands.

(Sec. 255) Extends through 2008 parity requirements applicable to mental health benefits offered by group health plans.

<b>Title III: Additional Tax Relief - Subtitle A: Individual Tax Relief </b>- (Sec. 301) Allows individual taxpayers an additional standard tax deduction in gross2008 for state and local real property taxes. Limits the amount of such deduction to $350 ($700 for married individuals filing a joint tax return).

(Sec. 302) Lowers in 2008 (from $10,000 to $8,500) the earned income threshold amount for determining the refundable portion of deferred compensation paidthe child tax credit.

(Sec. 303) Increases the alternative minimum tax (AMT) refundable credit amount for individuals who have long-term unused minimum tax credits from prior taxable years. Abates any underpayment of tax attributable to the application of special AMT rules for the treatment of incentive stock options.

<b>Subtitle B: Business Related Provisions </b>- (Sec. 311) Allows attorneys a tax deduction in the current taxable year for reimbursable expenses and court costs which they pay or incur in connection with contingency fee cases.

(Sec. 312) Modifies rules relating to the expensing of film and television production costs.

<b>Subtitle C: Modification of Penalty on Understatement of Taxpayer's Liability by certain foreign entities;Tax Return Preparer</b> - (Sec. 321) Modifies the standards for imposing penalties on tax return preparers for understatements of tax to require: (1) substantial authority for a position with respect to an item on a tax return if such position was not disclosed with the return; and (2) increasesa reasonable basis for a position that was disclosed with the return.

Requires tax return preparers to have a reasonable belief that a position with respect to a tax shelter or a reportable transaction (a transaction having a potential for tax avoidance or evasion) will more likely than not be sustained on its merits.

<b>Subtitle D: Extension and Expansion of Certain GO Zone Incentives</b> - (Sec. 331) Allows taxpayers who claimed a casualty loss deduction for damage to a personal residence caused by Hurricanes Katrina, Rita, or Wilma and who subsequently received a grant as compensation for such damage to file an amended tax return to disallow the casualty loss deduction without payment of any tax penalty. Waives deadlines for starting construction for property in estimatedthe Gulf Opportunity (GO) Zone eligible for bonus depreciation. Includes Colbert and Dallas Counties in Alabama within the GO Zone for purposes of tax-exempt bond financing.

<b>Title IV: Revenue Provisions</b> - (Sec. 401) Requires the inclusion in gross income for income tax paymentspurposes of employee compensation deferred under a nonqualified deferred compensation plan of a nonqualified entity when there is no substantial risk of forfeiture of the rights to such compensation. Defines &quot;nonqualified entity&quot; as any foreign corporation unless substantially all of its income is: (1) effectively connected with a trade or business in the United States; or (2) subject to a comprehensive foreign income tax. Includes certain large corporations.partnerships within such definition.

(Sec. 402) Delays until 2019 the application of special rules for the worldwide allocation of interest for purposes of computing the limitation on the foreign tax credit.

(Sec. 403) Amends the Tax Increase Prevention and Reconciliation Act of 2005 to: (1) repeal the adjustment to the estimated tax liability of corporations with at least $1 billion in assets for the third quarter of 2012; and (2) increase the estimated tax payments of such corporations in the third quarter of 2013 by 37.75%.
</summary>

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== Status of the Legislation ==

<status>
Latest Major Action: 5/21/2008: Passed/agreed to in House. Status: On passage Passed by recorded vote: 263 - 160 (Roll no. 344).
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== Points in Favor ==

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== Points Against ==

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== See also ==
* http://en.wikipedia.org/wiki/Internal_Revenue_Code
* http://www.opencongress.org/bill/110-h6049/show
* http://waysandmeans.house.gov/media/pdf/110/bill.pdf :Text