text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Enhancing Renewable Energy 
  Investment Act''.
  
  SEC. 2. INCREASE OF ENERGY CREDIT FOR EQUIPMENT USED TO GENERATE 
                ELECTRICITY BY GEOTHERMAL POWER.
  
      (a) In General.--Clause (i) of section 48(a)(2)(A) of the Internal 
  Revenue Code of 1986 is amended--
              (1) in subclause (III), by striking ``and''; and
              (2) by adding at the end the following:
                                      ``(V) energy property described in 
                                  paragraph (3)(A)(iii), but only with 
                                  respect to periods ending before 
                                  January 1, 2017, and''.
      (b) Effective Date.--The amendments made by this section shall 
  apply to property placed in service after the date of the enactment of 
  this Act.
  
  SEC. 3. EXTENSION OF SPECIFIED ENERGY PROPERTY GRANTS IN LIEU OF 
                CREDIT.
  
      (a) In General.--Subsection (a) of section 1603 of the American 
  Recovery and Reinvestment Tax Act of 2009 is amended by striking 
  ``unless such property--'' and all that follows through the period at 
  the end and inserting the following: ``unless such property is placed 
  in service before the credit termination date with respect to such 
  property.''.
      (b) Effective Date.--The amendment made by this section shall apply 
  to grants made after the date of the enactment of this Act.
  
  SEC. 4. NONQUALIFIED DEFERRED COMPENSATION FROM CERTAIN TAX INDIFFERENT 
                PARTIES.
  
      (a) In General.--Subpart B of part II of subchapter E of chapter 1 
  of the Internal Revenue Code of 1986 is amended by inserting after 
  section 457 the following new section:
  
  ``SEC. 457A. NONQUALIFIED DEFERRED COMPENSATION FROM CERTAIN TAX 
                INDIFFERENT PARTIES.
  
      ``(a) In General.--Any compensation which is deferred under a 
  nonqualified deferred compensation plan of a nonqualified entity shall 
  be includible in gross income when there is no substantial risk of 
  forfeiture of the rights to such compensation.
      ``(b) Nonqualified Entity.--For purposes of this section, the term 
  `nonqualified entity' means--
              ``(1) any foreign corporation unless substantially all of 
          its income is--
                      ``(A) effectively connected with the conduct of a 
                  trade or business in the United States, or
                      ``(B) subject to a comprehensive foreign income 
                  tax, and
              ``(2) any partnership unless substantially all of its 
          income is allocated to persons other than--
                      ``(A) foreign persons with respect to whom such 
                  income is not subject to a comprehensive foreign income 
                  tax, and
                      ``(B) organizations which are exempt from tax under 
                  this title.
      ``(c) Determinability of Amounts of Compensation.--
              ``(1) In general.--If the amount of any compensation is not 
          determinable at the time that such compensation is otherwise 
          includible in gross income under subsection (a)--
                      ``(A) such amount shall be so includible in gross 
                  income when determinable, and
                      ``(B) the tax imposed under this chapter for the 
                  taxable year in which such compensation is includible 
                  in gross income shall be increased by the sum of--
                              ``(i) the amount of interest determined 
                          under paragraph (2), and
                              ``(ii) an amount equal to 20 percent of the 
                          amount of such compensation.
              ``(2) Interest.--For purposes of paragraph (1)(B)(i), the 
          interest determined under this paragraph for any taxable year 
          is the amount of interest at the underpayment rate under 
          section 6621 plus 1 percentage point on the underpayments that 
          would have occurred had the deferred compensation been 
          includible in gross income for the taxable year in which first 
          deferred or, if later, the first taxable year in which such 
          deferred compensation is not subject to a substantial risk of 
          forfeiture.
      ``(d) Other Definitions and Special Rules.--For purposes of this 
  section--
              ``(1) Substantial risk of forfeiture.--
                      ``(A) In general.--The rights of a person to 
                  compensation shall be treated as subject to a 
                  substantial risk of forfeiture only if such person's 
                  rights to such compensation are conditioned upon the 
                  future performance of substantial services by any 
                  individual.
                      ``(B) Exception for compensation based on gain 
                  recognized on an investment asset.--
                              ``(i) In general.--To the extent provided 
                          in regulations prescribed by the Secretary, if 
                          compensation is determined solely by reference 
                          to the amount of gain recognized on the 
                          disposition of an investment asset, such 
                          compensation shall be treated as subject to a 
                          substantial risk of forfeiture until the date 
                          of such disposition.
                              ``(ii) Investment asset.--For purposes of 
                          clause (i), the term `investment asset' means 
                          any single asset (other than an investment fund 
                          or similar entity)--
                                      ``(I) acquired directly by an 
                                  investment fund or similar entity,
                                      ``(II) with respect to which such 
                                  entity does not (nor does any person 
                                  related to such entity) participate in 
                                  the active management of such asset (or 
                                  if such asset is an interest in an 
                                  entity, in the active management of the 
                                  activities of such entity), and
                                      ``(III) substantially all of any 
                                  gain on the disposition of which (other 
                                  than such deferred compensation) is 
                                  allocated to investors in such entity.
                              ``(iii) Coordination with special rule.--
                          Paragraph (3)(B) shall not apply to any 
                          compensation to which clause (i) applies.
              ``(2) Comprehensive foreign income tax.--The term 
          `comprehensive foreign income tax' means, with respect to any 
          foreign person, the income tax of a foreign country if--
                      ``(A) such person is eligible for the benefits of a 
                  comprehensive income tax treaty between such foreign 
                  country and the United States, or
                      ``(B) such person demonstrates to the satisfaction 
                  of the Secretary that such foreign country has a 
                  comprehensive income tax.
              ``(3) Nonqualified deferred compensation plan.--
                      ``(A) In general.--The term `nonqualified deferred 
                  compensation plan' has the meaning given such term 
                  under section 409A(d), except that such term shall 
                  include any plan that provides a right to compensation 
                  based on the appreciation in value of a specified 
                  number of equity units of the service recipient.
                      ``(B) Exception.--Compensation shall not be treated 
                  as deferred for purposes of this section if the service 
                  provider receives payment of such compensation not 
                  later than 12 months after the end of the taxable year 
                  of the service recipient during which the right to the 
                  payment of such compensation is no longer subject to a 
                  substantial risk of forfeiture.
              ``(4) Exception for certain compensation with respect to 
          effectively connected income.--In the case of a foreign 
          corporation with income which is taxable under section 882, 
          this section shall not apply to compensation which, had such 
          compensation had been paid in cash on the date that such 
          compensation ceased to be subject to a substantial risk of 
          forfeiture, would have been deductible by such foreign 
          corporation against such income.
              ``(5) Application of rules.--Rules similar to the rules of 
          paragraphs (5) and (6) of section 409A(d) shall apply.
      ``(e) Regulations.--The Secretary shall prescribe such regulations 
  as may be necessary or appropriate to carry out the purposes of this 
  section, including regulations disregarding a substantial risk of 
  forfeiture in cases where necessary to carry out the purposes of this 
  section.''.
      (b) Conforming Amendment.--Section 26(b)(2) of such Code is amended 
  by striking ``and'' at the end of subparagraph (V), by striking the 
  period at the end of subparagraph (W) and inserting ``, and'', and by 
  adding at the end the following new subparagraph:
                      ``(X) section 457A(c)(1)(B) (relating to 
                  determinability of amounts of compensation).''.
      (c) Clerical Amendment.--The table of sections of subpart B of part 
  II of subchapter E of chapter 1 of such Code is amended by inserting 
  after the item relating to section 457 the following new item:
  
  ``Sec. 457A. Nonqualified deferred compensation from certain tax 
                              indifferent parties.''.
      (d) Effective Date.--
              (1) In general.--Except as otherwise provided in this 
          subsection, the amendments made by this section shall apply to 
          amounts deferred which are attributable to services performed 
          after December 31, 2008.
              (2) Application to existing deferrals.--In the case of any 
          amount deferred to which the amendments made by this section do 
          not apply solely by reason of the fact that the amount is 
          attributable to services performed before January 1, 2009, to 
          the extent such amount is not includible in gross income in a 
          taxable year beginning before 2018, such amounts shall be 
          includible in gross income in the later of--
                      (A) the last taxable year beginning before 2018, or
                      (B) the taxable year in which there is no 
                  substantial risk of forfeiture of the rights to such 
                  compensation (determined in the same manner as 
                  determined for purposes of section 457A of the Internal 
                  Revenue Code of 1986, as added by this section).
              (3) Accelerated payments.--No later than 120 days after the 
          date of the enactment of this Act, the Secretary shall issue 
          guidance providing a limited period of time during which a 
          nonqualified deferred compensation arrangement attributable to 
          services performed on or before December 31, 2008, may, without 
          violating the requirements of section 409A(a) of the Internal 
          Revenue Code of 1986, be amended to conform the date of 
          distribution to the date the amounts are required to be 
          included in income.
              (4) Certain back-to-back arrangements.--If the taxpayer is 
          also a service recipient and maintains one or more nonqualified 
          deferred compensation arrangements for its service providers 
          under which any amount is attributable to services performed on 
          or before December 31, 2008, the guidance issued under 
          paragraph (4) shall permit such arrangements to be amended to 
          conform the dates of distribution under such arrangement to the 
          date amounts are required to be included in the income of such 
          taxpayer under this subsection.
              (5) Accelerated payment not treated as material 
          modification.--Any amendment to a nonqualified deferred 
          compensation arrangement made pursuant to paragraph (4) or (5) 
          shall not be treated as a material modification of the 
          arrangement for purposes of section 409A of the Internal 
          Revenue Code of 1986.
target: Enhancing Renewable Energy Investment Act - Amends the Internal Revenue Code to: (1) allow a 30% energy tax credit through 2016 for equipment used to produce electricity by geothermal power; and (2) require the inclusion in gross income for income tax purposes of employee compensation deferred under a nonqualified deferred compensation plan of certain foreign entities when there is no substantial risk of forfeiture of the rights to such compensation.
  
  Amends the American Recovery and Reinvestment Tax Act of 2009 to allow an extension of the grant period for specified energy property in lieu of applicable tax credits.
feat_title: To increase the energy credit for equipment used to generate electricity by geothermal power, to extend the grants for specified energy property, and for other purposes.