H.R. 4040

Bridge to a Clean Energy Future Act of 2015

This bill amends the Internal Revenue Code to extend various tax credits and deductions relating to energy and to repeal certain tax preferences for oil and gas activities.

TITLE I--EXTENSION AND MODIFICATION OF ENERGY TAX PROVISIONS

This title extends through 2016:

• the tax credit for nonbusiness energy property;
• the tax credit for new qualified fuel cell motor vehicles;
• the tax credit for alternative fuel vehicle refueling property expenditures;
• the tax credit for second generation biofuel production;
• the tax credits for biodiesel and renewable diesel used as fuel;
• excise tax credits for alcohol used as fuel and biodiesel mixtures;
• the tax credit for the production of electricity from renewable resources;
• the tax credit for energy-efficient new homes;
• the special depreciation allowance for second generation biofuel plant property;
• the tax deduction for energy-efficient commercial buildings;
• tax deferral rules for sales or dispositions of qualified electric facilities; and
• excise tax credits for alternative fuels and alternative fuel mixtures.

The title also revises the income and excise tax credits for biodiesel fuels to allow an increased credit for small biodiesel producers.

TITLE II--ADDITIONAL PROVISIONS

This title amends the Internal Revenue Code to: (1) extend the energy tax credit to solar energy, fuel cell, microturbine, combined heat and power system, small wind energy, and thermal energy properties the construction of which begins before January 1, 2017; (2) modify capacity limitations for combined heat and power system property; (3) allow an energy tax credit for waste heat to power property; (4) define "qualified small wind energy property" for purposes of the energy tax credit; (5) allow renewable and alternative fuel projects to operate as publicly-traded partnerships; and (6) permit additional allocations of qualifying advanced energy project tax credits.

TITLE III--ENDING OIL AND GAS TAX SUBSIDIES

The title modifies or eliminates oil and gas tax subsidies by:

• increasing to seven years the amortization period for geological and geophysical expenditures;
• repealing after 2015 the tax credits for producing oil and gas from marginal wells and for enhanced oil recovery;
• repealing after 2015 the tax deduction for the intangible drilling and development costs of oil and gas wells;
• repealing percentage depletion for oil and gas wells and the tax deduction for tertiary injectants;
• repealing the exception to passive loss rules for interests in oil and gas properties;
• repealing the tax deduction for income attributable to domestic production activities involving oil and gas;
• prohibiting the use of the last-in, first-out (LIFO) accounting method for major integrated oil companies; and
• limiting the foreign tax credit for dual capacity taxpayers (i.e., taxpayers who are subject to a levy of a foreign country or U.S. possession and who receive specific economic benefits from such country or possession).