AAEA Promoting Minority Energy Partnership Act of 2010

DRAFT BILL

HR _____
111th CONGRESS
2nd Session
H. R. ____

To amend the Internal Revenue Code of 1986 to increase the deduction under section 179 to stimulate mentor/protégé partnerships in the energy sector.

IN THE HOUSE OF REPRESENTATIVES

September 7, 2010

Mr. __________________introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
A BILL

To amend the Internal Revenue Code of 1986 to increase the deduction under section 179 to stimulate mentor/protégé partnerships in order to increase minority ownership of infrastructure and resources in the energy sector.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Minority Energy Partnership Act of 2010’ or the ‘MEP Act of 2010.’

SEC. 2. QUALIFIED PARTNERSHIPS.

(a) In General- Section 179 of the Internal Revenue Code of 1986 (relating to election to expense certain depreciable assets) is amended by adding at the end the following new subsection:

‘(G) Minority Energy Partnerships-

‘(1) IN GENERAL- In the case of qualified minority energy partnerships created during a taxable year--

‘(D) subsection (a)(1) shall be $500 billion over a ten year period.


‘(2) DEFINITIONS- For purposes of this subsection--

‘(A) QUALIFIED MINORITY ENERGY PARTNERSHIP- The term ‘qualified minority energy partnership’ means section 179 property which--

‘(i) has been certified by the Secretary of Energy, and
‘(ii) includes buildings and their structural components, income-producing property and resources (investment or rental property), property held by an estate or trust, property acquired by gift or inheritance, property used in a passive activity, and property and resources purchased from related parties.
.
(b) Effective Date- The amendment made by this section shall apply to property placed in service after December 31, 2011.

SEC. 3. CERTIFICATION OF MINORITY ENERGY PARTNERSHIPS.

(a) In General- The Small Business Administration shall develop criteria to ensure and certify minority energy partnerships that meet certain standards, as determined by the Secretary of Energy.
(b) Current 8(a) firms and other minority owned business enterprises (MBEs)
with qualifications in the energy sector immediately qualify for participation in minority energy partnerships.
(c) Certification Assistance- The Small Business Administration Administrator may recognize a private entity or entities to assist in the certification using the criteria developed by the Administrator under this section.

Recommended Revenue Offsets. The amendment would pay for its tax breaks with the following revenue raisers:

1) The Consolidated Land, Energy, and Aquatic Resources Act of 2010 [CLEAR Act (H.R. 3534) --its Gulf Spill/Energy bill response] [Latest Version] contains provisions designed to do away with the ability for companies to pay zero royalties during times of high oil prices. Nick Rahall, Chairman of the House Natural Resources Committee and sponsor of the legislation believes that consumers paying sky-high gas prices that fuel record profits should not face the indignity of receiving no royalty on the sale of the public's oil. These royalties should be directed the MEP Act.

2) Thirteen percent of royalties obtained from the leasing and sale of the public's resources will be used to offset MEP Act expensing.