PUBLIC LAW 96-223—APR. 2, 1980
94 STAT. 263
"(i) the numerator of which is 25 reduced by 1 for each whole megawatt by which such installed capacity exceeds 100 megawatts, and "(ii) the denominator of which is the number of megawatts of such installed capacity but not in excess of 100. "(D) DAM REHABILITATION PROPERTY.—For purposes of this paragraph, the term 'dam rehabilitation property' means any amount properly chargeable to capital account for property (or additions or improvements to property) in connection with the rehabilitation of a dam. "(E) INSTALLED CAPACITY.—The term 'installed capacity' means, with respect to any site, the installed capacity of all electrical generating equipment placed in service at such site. Such term includes the capacity of equipment installed during the 3 taxable years following the taxable year in which the equipment is placed in service." (2) REGULAR INVESTMENT CREDIT TO APPLY TO FISH PASSAGE-
WAYS.—Subparagraph (D) of section 46(a)(2) (relating to special 26 USC 46. rule for certain energy property) is amended by adding at the end thereof the following new sentence: "In the case of any qualified hydroelectric generating property which is a fish passageway, the preceding sentence shall not apply to any period after 1979 for which the energy percentage for such property is greater than zero." (f) COGENERATION PROPERTY.—Subsection (1) of section 48 (relating 26 USC 48. to energy property) is amended by adding at the end thereof the following new paragraph: "(14) COGENERATION EQUIPMENT.—
"(A) IN GENERAL.—The term 'cogeneration equipment* means property which is an integral part of a system for using the same fuel to produce both qualified energy and electricity at an industrial or commercial facility at which, as of January 1, 1980, electricity or qualified energy was produced. "(B) ONLY COGENERATION INCREASES TAKEN INTO AC-
COUNT.—The term 'cogeneration equipment' includes property only to the extent that such property increases the capacity of the system to produce qualified energy or electricity, whichever is the secondary energy product of the system. "(C) LIMITATION ON USE OF OIL OR GAS.—The term 'cogeneration equipment' does not include any property which is part of a system if— "(i) such system uses oil or natural gas (or a product of oil or natural gas) as a fuel for any purpose other than— "(I) start-up, "(II) flame control, or "(III) back-up, or "(ii) more than 20 percent (determined on a Btu basis) of the fuel for such system for any taxable year consists of oil or natural gas (or a product of oil or natural gas). "(D) QUALIFIED ENERGY.—The term 'qualified energy' means steam, heat, or other forms of useful energy (other than electric energy) to be used for industrial, commercial, or space-heating purposes (other than in the production of electricity).
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