Page:United States Statutes at Large Volume 119.djvu/1009

 PUBLIC LAW 109–58—AUG. 8, 2005

119 STAT. 991

‘‘(ii) FORM AND EFFECT OF ELECTION.—An election under clause (i) for any taxable year shall be made on a timely filed return for such year. Such election, once made, shall be irrevocable for such taxable year. Such election shall not take effect unless the organization designates the apportionment as such in a written notice mailed to its patrons during the payment period described in section 1382(d). ‘‘(B) TREATMENT OF ORGANIZATIONS AND PATRONS.— The amount of the credit apportioned to any patrons under subparagraph (A)— ‘‘(i) shall not be included in the amount determined under subsection (a) with respect to the organization for the taxable year, and ‘‘(ii) shall be included in the amount determined under subsection (a) for the first taxable year of each patron ending on or after the last day of the payment period (as defined in section 1382(d)) for the taxable year of the organization or, if earlier, for the taxable year of each patron ending on or after the date on which the patron receives notice from the cooperative of the apportionment. ‘‘(C) SPECIAL RULES FOR DECREASE IN CREDITS FOR TAXABLE YEAR.—If the amount of the credit of a cooperative organization determined under subsection (a) for a taxable year is less than the amount of such credit shown on the return of the cooperative organization for such year, an amount equal to the excess of— ‘‘(i) such reduction, over ‘‘(ii) the amount not apportioned to such patrons under subparagraph (A) for the taxable year, shall be treated as an increase in tax imposed by this chapter on the organization. Such increase shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit under this chapter. ‘‘(D) ELIGIBLE COOPERATIVE DEFINED.—For purposes of this section the term ‘eligible cooperative’ means a cooperative organization described in section 1381(a) which is owned more than 50 percent by agricultural producers or by entities owned by agricultural producers. For this purpose an entity owned by an agricultural producer is one that is more than 50 percent owned by agricultural producers.’’. (b) CONFORMING AMENDMENT.—The last sentence of section 55(c)(1) is amended by inserting ‘‘45(e)(11)(C),’’ after ‘‘section’’. (c) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years of cooperative organizations ending after the date of the enactment of this Act.

26 USC 55. 26 USC 45 note.

SEC. 1303. CLEAN RENEWABLE ENERGY BONDS.

(a) IN GENERAL.—Part IV of subchapter A of chapter 1 (relating to credits against tax) is amended by adding at the end the following new subpart:

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