H.R. 3807

Renewable Energy Assistance Act of 2007

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I

110th CONGRESS

1st Session

H. R. 3807

IN THE HOUSE OF REPRESENTATIVES

October 10, 2007

Ms. Giffords (for herself, Mr. Van Hollen, Mr. Ellison, Mr. Blumenauer, Mr. Lampson, Mr. Pallone, Mr. Emanuel, Mr. Pomeroy, Mr. Chandler, Mr. Udall of New Mexico, Mr. Altmire, Ms. Berkley, Mr. Grijalva, Mr. Israel, Mr. Carney, Mr. Pastor, Mr. Ehlers, Mr. Smith of Washington, Mr. McCaul of Texas, Mr. Mitchell, Mr. Braley of Iowa, Mr. McNerney, Mr. Inslee, and Mr. Moore of Kansas) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to increase and extend certain renewable energy and energy efficiency incentives.

1.

Short title

This Act may be cited as the Renewable Energy Assistance Act of 2007.

2.

Increase and extension of credit for residential energy efficient property

(a)

Extension

Subsection (g) of section 25D of the Internal Revenue Code of 1986 is amended by striking December 31, 2008 and inserting December 31, 2016.

(b)

Repeal of maximum dollar limitation

(1)

In general

Subsection (b) of section 25D of such Code is amended to read as follows:

(b)

Certification of solar water heating property

No credit shall be allowed under this section for an item of property described in subsection (d)(1) unless such property is certified for performance by the non-profit Solar Rating Certification Corporation or a comparable entity endorsed by the government of the State in which such property is installed.

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(2)

Conforming amendments

(A)

Subsection (e) of section 25D of such Code is amended by striking paragraph (4) and by redesignating paragraphs (5) through (9) as paragraphs (4) through (8), respectively.

(B)

Paragraph (1) of section 25C(e) of such Code is amended by striking (8), and (9) and inserting and (8) (and paragraph (4) as in effect before its repeal).

(c)

Credit allowed against alternative minimum tax

(1)

In general

Subsection (c) of section 25D of such Code is amended to read as follows:

(c)

Limitation based on amount of tax; carryforward of unused credit

(1)

Limitation based on amount of tax

In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for the taxable year shall not exceed the excess of—

(A)

the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over

(B)

the sum of the credits allowable under this subpart (other than this section) and section 27 for the taxable year.

(2)

Carryforward of unused credit

(A)

Rule for years in which all personal credits allowed against regular and alternative minimum tax

In the case of a taxable year to which section 26(a)(2) applies, if the credit allowable under subsection (a) exceeds the limitation imposed by section 26(a)(2) for such taxable year reduced by the sum of the credits allowable under this subpart (other than this section), such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such succeeding taxable year.

(B)

Rule for other years

In the case of a taxable year to which section 26(a)(2) does not apply, if the credit allowable under subsection (a) exceeds the limitation imposed by paragraph (1) for such taxable year, such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such succeeding taxable year.

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(2)

Conforming amendments

(A)

Section 23(b)(4)(B) of such Code is amended by inserting and section 25D after this section.

(B)

Section 24(b)(3)(B) of such Code is amended by striking and 25B and inserting , 25B, and 25D.

(C)

Section 25B(g)(2) of such Code is amended by striking section 23 and inserting sections 23 and 25D.

(D)

Section 26(a)(1) of such Code is amended by striking and 25B and inserting 25B, and 25D.

(d)

Effective dates

(1)

In general

Except as otherwise provided in this subsection, the amendments made by this section shall apply to expenditures made after the date of the enactment of this Act.

(2)

Extension

The amendment made by subsection (a) shall apply to property placed in service after December 31, 2008.

(3)

Allowance against alternative minimum tax

(A)

In general

The amendments made by subsection (c) shall apply to taxable years beginning after the date of the enactment of this Act.

(B)

Application of EGTRRA sunset

The amendments made by subparagraphs (A) and (B) of subsection (c)(2) shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 in the same manner as the provisions of such Act to which such amendments relate.

3.

Extension and modification of energy credit

(a)

Extension of 30 percent credit for solar energy

Subclause (II) of section 48(a)(2)(A)(i) of the Internal Revenue Code of 1986 is amended by striking January 1, 2009 and inserting January 1, 2017.

(b)

Extension for qualified fuel cells

Subparagraph (E) of section 48(c)(1) of such Code is amended by striking December 31, 2008 and inserting December 31, 2016.

(c)

Public electric utility property taken into account

(1)

In general

Paragraph (3) of section 48(a) of such Code is amended by striking the second sentence thereof.

(2)

Conforming amendment

Paragraph (1) of section 48(c) of such Code, after amendment under subsection (b), is amended by striking subparagraph (D) and redesignating subparagraph (E) as subparagraph (D).

(3)

Effective date

The amendments made by this subsection shall apply to periods after June 20, 2007, in taxable years ending after such date, 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).

4.

Extension of credit for nonbusiness energy property

Subsection (g) of section 25C of the Internal Revenue Code of 1986 is amended by striking December 31, 2007 and inserting December 31, 2015.

5.

Modifications of energy efficient appliance credit for appliances produced after 2007

(a)

In general

Subsection (b) of section 45M of the Internal Revenue Code of 1986 is amended to read as follows:

(b)

Applicable amount

For purposes of subsection (a)—

(1)

Dishwashers

The applicable amount is—

(A)

$45 in the case of a dishwasher which is manufactured in calendar year 2008 or 2009 and which uses no more than 324 kilowatt hours per year and 5.8 gallons per cycle, and

(B)

$75 in the case of a dishwasher which is manufactured in calendar year 2008, 2009, or 2010 and which uses no more than 307 kilowatt hours per year and 5.0 gallons per cycle (5.5 gallons per cycle for dishwashers designed for greater than 12 place settings).

(2)

Clothes washers

The applicable amount is—

(A)

$75 in the case of a residential top-loading clothes washer manufactured in calendar year 2008 which meets or exceeds a 1.72 modified energy factor and does not exceed a 8.0 water consumption factor,

(B)

$125 in the case of a residential top-loading clothes washer manufactured in calendar year 2008 or 2009 which meets or exceeds a 1.8 modified energy factor and does not exceed a 7.5 water consumption factor,

(C)

$150 in the case of a residential or commercial clothes washer manufactured in calendar year 2008, 2009 or 2010 which meets or exceeds 2.0 modified energy factor and does not exceed a 6.0 water consumption factor, and

(D)

$250 in the case of a residential or commercial clothes washer manufactured in calendar year 2008, 2009, or 2010 which meets or exceeds 2.2 modified energy factor and does not exceed a 4.5 water consumption factor.

(3)

Refrigerators

The applicable amount is—

(A)

$50 in the case of a refrigerator which is manufactured in calendar year 2008, and consumes at least 20 percent but not more than 22.9 percent less kilowatt hours per year than the 2001 energy conservation standards,

(B)

$75 in the case of a refrigerator which is manufactured in calendar year 2008 or 2009, and consumes at least 23 percent but no more than 24.9 percent less kilowatt hours per year than the 2001 energy conservation standards,

(C)

$100 in the case of a refrigerator which is manufactured in calendar year 2008, 2009 or 2010, and consumes at least 25 percent but not more than 29.9 percent less kilowatt hours per year than the 2001 energy conservation standards, and

(D)

$200 in the case of a refrigerator manufactured in calendar year 2008, 2009 or 2010 and which consumes at least 30 percent less energy than the 2001 energy conservation standards.

(4)

Dehumidifiers

The applicable amount is—

(A)

$15 in the case of a dehumidifier manufactured in calendar year 2008 that has a capacity less than or equal to 45 pints per day and is 7.5 percent more efficient than the applicable Department of Energy energy conservation standard effective October 2012, and

(B)

$25 in the case of a dehumidifier manufactured in calendar year 2008 that has a capacity greater than 45 pints per day and is 7.5 percent more efficient than the applicable Department of Energy energy conservation standard effective October 2012.

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(b)

Eligible production

(1)

Similar treatment for all appliances

Subsection (c) of section 45M of such Code is amended—

(A)

by striking paragraph (2),

(B)

by striking (1) In general and all that follows through the eligible and inserting The eligible, and

(C)

by moving the text of such subsection in line with the subsection heading and redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively.

(2)

Modification of base period

Paragraph (2) of section 45M(c) of such Code, as amended by paragraph (1) of this section, is amended by striking 3-calendar year and inserting 2-calendar year.

(c)

Types of energy efficient appliances

Subsection (d) of section 45M of such Code is amended to read as follows:

(d)

Types of energy efficient appliance

For purposes of this section, the types of energy efficient appliances are—

(1)

dishwashers described in subsection (b)(1),

(2)

clothes washers described in subsection (b)(2),

(3)

refrigerators described in subsection (b)(3), and

(4)

dehumidifiers described in subsection (b)(4).

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(d)

Aggregate credit amount allowed

(1)

Increase in limit

Paragraph (1) of section 45M(e) of such Code is amended to read as follows:

(1)

Aggregate credit amount allowed

The aggregate amount of credit allowed under subsection (a) with respect to a taxpayer for any taxable year shall not exceed $75,000,000 reduced by the amount of the credit allowed under subsection (a) to the taxpayer (or any predecessor) for all prior taxable years beginning after December 31, 2007.

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(2)

Exception for certain refrigerator and clothes washers

Paragraph (2) of section 45M(e) of such Code is amended to read as follows:

(2)

Amount allowed for certain refrigerators and clothes washers

Refrigerators described in subsection (b)(3)(D) and clothes washers described in subsection (b)(2)(D) shall not be taken into account under paragraph (1).

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(e)

Qualified energy efficient appliances

(1)

In general

Paragraph (1) of section 45M(f) of such Code is amended to read as follows:

(1)

Qualified energy efficient appliance

The term qualified energy efficient appliance means—

(A)

any dishwasher described in subsection (b)(1),

(B)

any clothes washer described in subsection (b)(2),

(C)

any refrigerator described in subsection (b)(3), and

(D)

any dehumidifier described in subsection (b)(4).

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(2)

Clothes washer

Section 45M(f)(3) of such Code is amended by inserting commercial before residential the second place it appears.

(3)

Top-loading clothes washer

Subsection (f) of section 45M of such Code is amended by redesignating paragraphs (4), (5), (6), and (7) as paragraphs (5), (6), (7), and (8), respectively, and by inserting after paragraph (3) the following new paragraph:

(4)

Top-loading clothes washer

The term ‘top-loading clothes washer’ means a clothes washer which has the clothes container compartment access located on the top of the machine and which operates on a vertical axis.

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(4)

Dehumidifier

Subsection (f) of section 45M of such Code, as amended by paragraph (3), is amended by redesignating paragraphs (6), (7), and (8) as paragraphs (7), (8) and (9), respectively, and by inserting after paragraph (5) the following new paragraph:

(6)

Dehumidifier

The term dehumidifier means a self-contained, electrically operated, and mechanically refrigerated encased assembly consisting of—

(A)

a refrigerated surface that condenses moisture from the atmosphere,

(B)

a refrigerating system, including an electric motor,

(C)

an air-circulating fan, and

(D)

means for collecting or disposing of condensate.

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(5)

Replacement of energy factor

Section 45M(f)(7) of such Code, as amended by paragraph (4), is amended to read as follows:

(7)

Modified energy factor

The term modified energy factor means the modified energy factor established by the Department of Energy for compliance with the Federal energy conservation standard.

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(6)

Gallons per cycle; water consumption factor

Section 45M(f) of such Code is amended by adding at the end the following:

(10)

Gallons per cycle

The term gallons per cycle means, with respect to a dishwasher, the amount of water, expressed in gallons, required to complete a normal cycle of a dishwasher.

(11)

Water consumption factor

The term water consumption factor means, with respect to a clothes washer, the quotient of the total weighted per-cycle water consumption divided by the cubic foot (or liter) capacity of the clothes washer.

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(f)

Effective date

The amendments made by this section shall apply to appliances produced after December 31, 2007.