PRODUCTION CREDIT FOR ELECTRICITY PRODUCED FROM MARINE RENEWABLES.

SEC. 102. PRODUCTION CREDIT FOR ELECTRICITY PRODUCED FROM MARINE RENEWABLES.(a) In General.—Paragraph (1) of section 45(c) is amended by striking “and” at the end of subparagraph (G), by striking the period at the end of subparagraph (H) and inserting “, and”, and by adding at the end the following new subparagraph:“(I) marine and hydrokinetic renewable energy.”.(b) Marine Renewables.—Subsection (c) of section 45 is amended by adding at the end the following new paragraph:“(10) Marine and hydrokinetic renewable energy.—“(A) In general.—The term ‘marine and hydrokinetic renewable energy’ means energy derived from—“(i) waves, tides, and currents in oceans, estuaries, and tidal areas,“(ii) free flowing water in rivers, lakes, and streams,“(iii) free flowing water in an irrigation system, canal, or other man-made channel, including projects that utilize nonmechanical structures to accelerate the flow of water for electric power production purposes, or“(iv) differentials in ocean temperature (ocean thermal energy conversion).“(B) Exceptions.—Such term shall not include any energy which is derived from any source which utilizes a dam, diversionary structure (except as provided in subparagraph (A)(iii)), or impoundment for electric power production purposes.”.(c) Definition of Facility.—Subsection (d) of section 45 is amended by adding at the end the following new paragraph:“(11) Marine and hydrokinetic renewable energy facilities.—In the case of a facility producing electricity from marine and hydrokinetic renewable energy, the term ‘qualified facility’ means any facility owned by the taxpayer—“(A) which has a nameplate capacity rating of at least 150 kilowatts, and“(B) which is originally placed in service on or after the date of the enactment of this paragraph and before January 1, 2012.”.(d) Credit Rate.—Subparagraph (A) of section 45(b)(4) is amended by striking “or (9)” and inserting “(9), or (11)”.(e) Coordination With Small Irrigation Power.—Paragraph (5) of section 45(d), as amended by section 101, is amended by 122 STAT. 3811 striking “January 1, 2012” and inserting “the date of the enactment of paragraph (11)”.(f) Effective Date.—The amendments made by this section shall apply to electricity produced and sold after the date of the enactment of this Act, in taxable years ending after such date.