S.Amdt. 905

1. Adds SEC. __. RENEWABLE ENERGY EQUIPMENT CREDIT wherever appropriate

   Adds a section

   Inserted: SEC. __. RENEWABLE ENERGY EQUIPMENT CREDIT.

   Inserted: (a) In General.--Section 25D of the Internal Revenue Code of 1986, as added by section 1527 of this Act, is amended to read as follows:

   Inserted: "SEC. 25D. RENEWABLE ENERGY EQUIPMENT CREDITS.

   Inserted: "(a) Allowance of Credit.--In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 30 percent of so much of the qualified photovoltaic property expenditures or qualified solar heating property expenditures made by the taxpayer during such year as do not exceed $7,500.

   Inserted: "(b) Definitions.--For purposes of this section--

   Inserted: "(1) Property expenditure.--

   Inserted: "(A) In general.--The term 'property expenditure' means any expenditure for a property.

   Inserted: "(B) Inclusions.--

   Inserted: "(i) Labor costs.--The term 'property expenditure' includes the cost of any labor that is properly allocable to the onsite preparation, assembly, or original installation of the property described in paragraph (2) or (3), including the cost of piping or wiring to interconnect such property to the dwelling unit.

   Inserted: "(ii) Solar panels.--No expenditure relating to a solar panel or other property installed as a roof (or portion thereof) shall fail to be treated as a property expenditure solely because it constitutes a structural component of the structure on which it is installed.

   Inserted: "(2) Qualified photovoltaic property expenditure.--The term 'qualified photovoltaic property expenditure' means any property expenditure for property which uses solar energy to generate electricity for use in a dwelling unit through the photovoltaic effect.

   Inserted: "(3) Qualified solar heating property expenditure.--

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   Inserted: "(A) In general.--The term 'qualified solar heating property expenditure' means any property expenditure for property which uses solar energy to heat or cool (or provide hot water for use in) a dwelling unit.

   Inserted: "(B) Exclusion.--The term 'qualified solar heating property expenditure' does not include an expenditure for property which uses solar energy to heat or cool a swimming pool.

   Inserted: "(c) Special Rules.--

   Inserted: "(1) Joint occupancy.--In the case of any dwelling unit which is jointly occupied and used during any calendar year as a residence by 2 or more individuals, the following shall apply separately with respect to qualified solar heating property expenditures and qualified photovoltaic property expenditures:

   Inserted: "(A) The amount of the credit allowable under subsection (a) by reason of expenditures made during such calendar year by any of such individuals with respect to such dwelling unit shall be determined by treating all of such individuals as 1 taxpayer whose taxable year is such calendar year.

   Inserted: "(B) There shall be allowable with respect to such expenditures to each of such individuals, a credit under subsection (a) for the taxable year in which such calendar year ends in an amount which bears the same ratio to the amount determined under subparagraph (A) as the amount of such expenditures made by such individual during such calendar year bears to the aggregate of such expenditures made by all of such individuals during such calendar year.

   Inserted: "(2) Tenant-stockholder in cooperative housing corporation.--In the case of an individual who is a tenant-stockholder (as defined in section 216) in a cooperative housing corporation (as defined in that section), the individual shall be treated as having made such individual's tenant-stockholder's proportionate share (as defined in section 216(b)(3)) of any expenditures of such corporation.

   Inserted: "(3) Condominiums.--

   Inserted: "(A) In general.--In the case of an individual who is a member of a condominium management association with respect to a condominium which such individual owns, such individual shall be treated as having made such individual's proportionate share of any expenditures of such association.

   Inserted: "(B) Management association.--For purposes of this paragraph, the term 'condominium management association' means an organization which meets the requirements of paragraph (1) of section 528(c) (other than subparagraph (E) thereof) with respect to a condominium project substantially all of the units of which are used as residences.

   Inserted: "(4) Amount of expenditure.--

   Inserted: "(A) In general.--Except as provided in subparagraph (B), an expenditure with respect to an item shall be treated as made when the original installation of the item is completed.

   Inserted: "(B) Expenditures in connection with building construction.--In the case of an expenditure in connection with the construction or reconstruction of a structure, such expenditure shall be treated as made when the original use of the constructed or reconstructed structure by the taxpayer begins.

   Inserted: "(C) Amount.--

   Inserted: "(i) In general.--The amount of any expenditure shall be the cost of the expenditure.

   Inserted: "(ii) Subsidized energy financing.--For purposes of determining the amount of expenditures, there shall not be taken into account expenditures which are made from subsidized energy financing (as defined in section 48(a)(5)(A)).

   Inserted: "(d) Basis Adjustments.--For purposes of this subtitle, if a credit is allowed under this section for any expenditure with respect to any property, the increase in the basis of such property which would (but for this subsection) result from such expenditure shall be reduced by the amount of the credit so allowed.

   Inserted: "(e) Limitations.--No credit shall be allowed under this section for an item of property unless--

   Inserted: "(1) in the case of solar heating property, the property meets all applicable health and safety standards and requirements imposed by any State or local permitting authority, and

   Inserted: "(2) in the case of a photovoltaic property, the property meets all appropriate fire and electric code requirements.

   Inserted: "(f) Termination.--This section shall not apply to expenditures made after December 31, 2010.".

   Inserted: (b) Production Tax Credit for Utility-Scale Solar.--Paragraph (4) of section 45(d) of the Internal Revenue Code of 1986 (relating to qualified facilities) is amended to read as follows:

   Inserted: "(4) Geothermal or solar energy facility.--In the case of a facility using geothermal or solar energy to produce electricity, the term 'qualified facility' means any facility owned by the taxpayer which is originally placed in service after December 31, 2005, and before December 31, 2010.".

   Inserted: (c) Conforming Amendments.--

   Inserted: (1) Section 1016(a)(36) of the Internal revenue Code of 1986, as added by section 1527 of this Act, is amended to read as follows:

   Inserted: "(36) to the extent provided in section 25D(d), in the case of amounts with respect to which a credit has been allowed under section 25D.".

   Inserted: (2) The item relating to section 25D in the table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code, as added by section 1527 of this Act, is amended to read as follows:

   Inserted: "Sec. 25D. Renewable energy equipment credits.".

   Inserted: (d) Effective Date.--The amendments made by this section (other than subsection (e)) shall apply to property placed in service after December 31, 2005, in taxable years ending after such date.

   Inserted: (e) Reduction in Period by Which Renewable Energy Production Credit Extended.--Section 45(d) of the Internal Revenue Code of 1986 (relating to qualified facilities), as amended by this Act, is amended by striking "2008" each place it appears in paragraphs (1) through (7) and inserting "2007".

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