II
110th CONGRESS
1st Session
S. 2314
IN THE SENATE OF THE UNITED STATES
November 6, 2007
Mr. Salazar (for himself, Mr. Inhofe, and Mr. Tester) introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to make geothermal heat pump systems eligible for the energy credit and the residential energy efficient property credit, and for other purposes.
Short title
This Act may be cited as the
Geothermal Heat Pump Development Act
of 2007
.
Energy credit for geothermal heat pump systems
In general
Subparagraph (A) of
section
48(a)(3) of the Internal Revenue Code of 1986 is amended by
striking or
at the end of clause (iii), by inserting
or
at the end of clause (iv), and by adding at the end the
following new clause:
equipment which uses the ground or ground water as a thermal energy source to heat a structure or as a thermal energy sink to cool a structure,
.
Effective date
The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.
Residential energy efficient property credit for geothermal heat pump systems
In general
Subsection (a) of
section
25D of the Internal Revenue Code of 1986 is amended by striking
and
at the end of paragraph (2), by striking the period at the
end of paragraph (3) and inserting , and
, and by adding at the
end the following new paragraph:
30 percent of the qualified geothermal heat pump property expenditures made by the taxpayer during the taxable year.
.
Qualified geothermal heat Pump property expenditures
Subsection (d) of section 25D of such Code is amended by adding at the end the following new paragraph:
Qualified geothermal heat pump property expenditures
In general
The term qualified geothermal heat pump property
expenditures
means an expenditure for qualified geothermal heat pump
property installed on or in connection with a dwelling unit located in the
United States and used as a principal residence (within the meaning of section
121) by the taxpayer.
Qualified geothermal heat pump property
The term qualified
geothermal heat pump property
means any equipment which—
uses the ground or ground water as a thermal energy source to heat the dwelling unit referred to in subparagraph (A) or as a thermal energy sink to cool such dwelling unit, and
meets the requirements of the Energy Star program which are in effect at the time that the expenditure for such equipment is made.
.
Maximum credit limitation
Paragraph (1) of section 25D(b) of such Code is
amended by striking and
at the end of subparagraph (B), by
striking the period at the end of subparagraph (C) and inserting ,
and
, and by adding at the end the following new subparagraph:
$2,000 with respect to any qualified geothermal heat pump property expenditures.
.
Coordination with credit for nonbusiness energy property
Subsection (b) of section 25D of such Code is amended by adding at the end the following new paragraph:
Denial of double benefit for geothermal heat pumps
The credit allowed under subsection (a) (determined without regard to this paragraph and subsection (c)) with respect to any qualified geothermal heat pump property expenditures shall be reduced by the amount of any credit allowed under section 25C with respect to such expenditures.
.
Credit allowed against alternative minimum tax
In general
Section 25D(b) of such Code, as amended by subsection (c), is amended by adding at the end the following new paragraph:
Qualified geothermal heat pump property expenditure credit allowed against alternative minimum tax
In the case of a taxable year to which section 26(b)(2) does not apply, the credit allowed under subsection (a)(4) for the taxable year shall not exceed the excess of—
the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over
the sum of the credits allowable under this subpart (other than subsection (a)(4)) and section 27 for the taxable year.
.
Conforming amendments
Subsection (c) of section 25D of such Code is amended—
by
inserting paragraphs (1), (2), and (3) of
before
subsection (a)
both places it appears in paragraph (2),
and
by adding at the end the following new paragraph:
Carryforward of unused qualified geothermal heat pump property expenditure credit
In the case of a taxable year to which section 26(b)(2) does not apply, if the credit allowable under subsection (a)(4) for any taxable year exceeds the limitation imposed by subsection (b)(3) for such taxable year, such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a)(4) for such succeeding taxable year.
.
Section
23(b)(4)(B) of such Code is amended by inserting and section
25D(a)(4)
after this section
.
Section
24(b)(3)(B) of such Code is amended by striking sections 23 and
25B
and inserting sections 23, 25B, and
25D(a)(4)
.
Section 26(a)(1)
of such Code is amended by striking and 25B
and inserting
25B, and 25D(a)(4)
.
Effective date
The amendments made by this section shall apply to expenditures made after the date of the enactment of this Act.
3-year accelerated depreciation period for geothermal heat pump systems
In general
Subparagraph (A) of section 168(e)(3) of the Internal
Revenue Code of 1986 is amended by striking and
at the end of
clause (ii), by striking the period at the end of clause (iii) and inserting
, and
, and by adding at the end the following new clause:
any property which is described in clause (v) of section 48(a)(3)(A).
.
Conforming amendment
Subclause (I) of section 168(e)(3)(B)(vi) of such Code
is amended by inserting clause (i), (ii), (iii), or (iv) of
before subparagraph (A)
.
Effective date
The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.