S.Amdt. 1533

1. Adds SEC. ____. MODIFICATION OF CREDIT FOR RESIDENTIAL WIND ENERGY PROPERTY at the end of title VII of division B

   Adds a section

   Inserted: SEC. ____. MODIFICATION OF CREDIT FOR RESIDENTIAL WIND ENERGY PROPERTY.

   Inserted: (a) Definition of Qualified Wind Energy Property.--Section 25C, as added by this Act, is amended by striking paragraph (5) of subsection (d) and inserting the following:

   Inserted: "(5) Qualified wind energy property expenditure defined.--

   Inserted: "(A) In general.--The term 'qualified wind energy property expenditure' means an expenditure for qualified wind energy property installed on or in connection with a dwelling unit located in the United States and used as a residence by the taxpayer, including all necessary installation fees and charges.

   Inserted: "(B) Qualified wind energy property.--The term 'qualified wind energy property' means a qualifying wind turbine--

   Inserted: "(i) the original use of which commences with the taxpayer, and

   Inserted: "(ii) which carries at least a 5-year limited warranty covering defects in design, material, or workmanship, and, for any qualifying wind turbine that is not installed by the taxpayer, at least a 5-year limited warranty covering defects in installation.

   Inserted: "(C) Qualifying wind turbine.--The term 'qualifying wind turbine' means a wind turbine of 75 kilowatts of rated capacity or less which at the time of manufacture and not more than 1 year from the date of purchase meets the latest performance rating standards published by the American Wind Energy Association or the International Electrotechnical Commission and which is used to generate electricity.".

   Inserted: (b) Amount of Credit.--

   Inserted: (1) In general.--Subsection (b)(1) of section 25C, as added by this Act, is amended by striking "and" at the end of subparagraph (B), by redesignating subparagraph (C) as subparagraph (D), and by inserting after subparagraph (B) the following:

   Inserted: "(C) $1,000 for each kilowatt of capacity of property described in subsection (d)(5), and".

   Inserted: (2) Conforming amendment.--Subparagraph (A) of section 25C(b)(1), as added by this Act, is amended by striking ", (2), or (5)" and inserting "or (2)".

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   Inserted: (c) Other Modifications.--

   Inserted: (1) Paragraph (7) of section 25C(d) (relating to labor costs), as added by this Act, is amended by inserting "or the local energy grid" after "dwelling unit".

   Inserted: (2) Paragraph (5) of section 25C(e) (relating to special rules), as added by this Act, is amended by inserting "and, in the case of qualified wind energy property, the property has begun to be used to generate electricity" before the period.

   Inserted: (c) Effective Date.--The amendments made by this section shall apply to expenditures made after the date of the enactment of this Act, in taxable years ending after such date.

   Inserted: SEC. ____. CREDIT FOR BUSINESS INSTALLATION OF SMALL WIND ENERGY PROPERTY.

   Inserted: (a) In General.--Subparagraph (A) of section 48(a)(3), as amended by this Act, (defining energy property) is amended by striking "or" at the end of clause (iii), by adding "or" at the end of clause (iv), and by inserting after clause (iv) the following new clause:

   Inserted: "(v) qualified wind energy property installed before January 1, 2009,".

   Inserted: (b) Qualified Wind Energy Property.--Subsection (a) of section 48, as amended by this Act, is amended by redesignating paragraphs (6) and (7) as paragraphs (7) and (8), respectively, and by inserting after paragraph (5) the following new paragraph:

   Inserted: "(6) Qualified wind energy property.--For purposes of this subsection--

   Inserted: "(A) In general.--The term 'qualified wind energy property' means a qualifying wind turbine--

   Inserted: "(i) installed on or in connection with a farm (as defined in section 6420(c)), a ranch, or an establishment of an eligible small business (as defined in section 44(b)) which is located in the United States and which is owned and used by the taxpayer,

   Inserted: "(ii) the original use of which commences with the taxpayer, and

   Inserted: "(iii) which carries at least a 5-year limited warranty covering defects in design, material, or workmanship, and, for any qualifying wind turbine that is not installed by the taxpayer, at least a 5-year limited warranty covering defects in installation.

   Inserted: "(B) Limitation.--In the case of any qualified wind energy property placed in service during the taxable year, the credit determined under paragraph (1) for such year with respect to such property shall not exceed an amount equal to the lesser of--

   Inserted: "(i) 30 percent of the basis of such property, including all necessary installation fees and charges, or

   Inserted: "(ii) $1,000 for each kilowatt of capacity of such property.

   Inserted: "(C) Qualifying wind turbine.--For purposes of this paragraph the term 'qualifying wind turbine' means a wind turbine of 75 kilowatts of rated capacity or less which at the time of manufacture and not more than 1 year after the date of purchase meets the latest performance rating standards published by the American Wind Energy Association or the International Electrotechnical Commission and which is used to generate electricity.

   Inserted: "(D) Safety certifications.--No credit shall be allowed under this section for any qualified wind energy property unless such property meets appropriate fire and electric code requirements.".

   Inserted: (c) Limitation.--Section 48(a)(2)(A) (relating to energy percentage), as amended by this Act, is amended redesignating clause (ii) as clause (iii), by striking "and" at the end of clause (i), and by inserting after clause (i) the following new clause:

   Inserted: "(ii) in the case of qualified wind energy property, 30 percent, and".

   Inserted: (d) Conforming Amendments.--

   Inserted: (A) Section 25C(e)(6), as added by this Act, is amended by striking "section 48(a)(6)(C)" and inserting "section 48(a)(7)(C)".

   Inserted: (B) Section 29(b)(3)(A)(i)(III), as amended by this Act, is amended by striking "section 48(a)(6)(C)" and inserting "section 48(a)(7)(C)".

   Inserted: (e) Effective Date.--The amendments made by this subsection shall apply to property placed in service after December 31, 2003, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).

   Original wording

   At the end of title VII of division B, insert the following:

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As printed