II
110th CONGRESS
1st Session
S. 590
IN THE SENATE OF THE UNITED STATES
February 14, 2007
Mr. Smith (for himself, Mr. Salazar, Ms. Snowe, Mr. Menendez, Mr. Lugar, Mr. Kerry, Mr. Kennedy, Mr. Allard, Mr. Wyden, Mr. Lieberman, Mr. Lautenberg, Ms. Cantwell, and Ms. Landrieu) 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 extend the investment tax credit with respect to solar energy property and qualified fuel cell property, and for other purposes.
Short title
This Act may be cited as the
Securing America’s Energy Independence
Act of 2007
.
Provisions relating to the investment tax credit with respect to solar energy property and qualified fuel cell property
Extension of credit for solar energy property
Paragraphs (2)(A)(i)(II) and
(3)(A)(ii) of section 48(a) of the Internal Revenue Code of 1986 are each
amended by striking January 1, 2009
and inserting January
1, 2017
.
Extension of credit for eligible fuel cell property
Paragraph (1)(E) of
section 48(c) of the Internal Revenue Code of 1986 is amended by striking
December 31, 2008
and inserting December 31,
2016
.
Energy property to include excess energy storage device
Clause (i) of section 48(a)(3)(A) of the Internal Revenue Code of 1986 is amended to read as follows:
equipment which uses solar energy to generate electricity, to heat or cool (or provide hot water for use in) a structure, or to provide solar process heat, or advanced energy storage systems installed as an integrated component of the foregoing, excepting property used to generate energy for purposes of heating a swimming pool,
.
Modifications
Solar photovoltaic energy property credit determined solely by kilowatt capacity
In general
Subsection (a) of section 48 of the Internal Revenue Code of 1986 is amended by redesignating paragraph (4) as paragraph (5) and by inserting after paragraph (3) the following new paragraph:
Special rule for energy credit for solar photovoltaic energy property
In general
For purposes of section 46, the energy credit for any taxable year for solar photovoltaic energy property described in paragraph (3)(A)(i) which is used to generate electricity and which is placed in service during the taxable year is $1,500 with respect to each half kilowatt of direct current of installed capacity of such property. Paragraph (2)(A)(ii) shall not apply to property to which the preceding sentence applies.
Application of special rules for rehabilitated or subsidized property
Rules similar to the rules of paragraphs (2)(B) and (5) shall apply to property to which this paragraph applies.
.
Conforming amendment
Subclause (II) of section 48(a)(2)(A)(i) of such Code
is amended by striking described in paragraph (3)(A)(i)
and
inserting which is described in paragraph (3)(A)(i) and to which
paragraph (4) does not apply
.
Credits allowed against the alternative minimum tax
Section 38(c)(4)(B) of the
Internal Revenue Code of 1986 is amended by striking and
at the
end of clause (i), by striking the period at the end of clause (ii)(II) and
inserting , and
, and by adding at the end the following new
clause:
the portion of the investment credit under section 46(2) which is determined under clauses (i) and (ii) of section 48(a)(2)(A).
.
Effective dates
Except as provided in paragraph (2), the amendments made by this section shall take effect on January 1, 2007.
The amendments made by subsection (c) shall apply to property placed in service after December 31, 2006.
Extension and modification of credit for residential energy efficient property
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
.
Solar electric property
Paragraph (1) of section 25D(a) of the Internal Revenue
Code of 1986 is amended by striking 30 percent of
.
Modification of maximum credit
Paragraph (1) of section 25D(b) of the Internal Revenue Code of 1986 is amended to read as follows:
Maximum credit
The credit allowed under subsection (a) for any taxable year shall not exceed—
$1,500 with respect to each half kilowatt of direct current of installed capacity of qualified solar electric property for which qualified solar electric property expenditures are made,
$2,000 with respect to any qualified solar heating and cooling property expenditures, and
$500 with respect to each half kilowatt of capacity of qualified fuel cell property (as defined in section 48(c)(1)) for which qualified fuel cell property expenditures are made.
.
Definition of qualified solar heating and cooling property expenditure
In general
Paragraph (1) of section 25D(d) of the Internal Revenue Code of 1986 is amended to read as follows:
Qualified solar heating and cooling property expenditure
The term qualified solar heating and cooling property expenditure means an expenditure for property to heat or cool (or provide hot water for use in) a dwelling unit located in the United States and used as a residence by the taxpayer if at least half of the energy used by such property for such purpose is derived from the sun. Such term shall not include an expenditure which is a qualified solar electric property expenditure.
.
Conforming amendments
Subsections (a)(2) and (e)(4)(A)(ii) of section 25D of
such Code are each amended by striking qualified solar water
heating
and inserting qualified solar heating and
cooling
Definition of qualified photovoltaic property expenditure
Paragraph (2) of section 25D(d) of the
Internal Revenue Code of 1986 is amended by inserting , including
advanced energy storage systems installed as an integrated component of the
foregoing
after taxpayer
.
Credit allowed against alternative minimum tax
In general
Section 25D(b) of the Internal Revenue Code of 1986, as amended by subsection (c), is amended by adding at the end the following new paragraph:
Credit allowed against alternative minimum tax
The credit allowed under subsection (a) 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 subpart A of part IV of subchapter A (other than this section) and section 27 for the taxable year.
.
Conforming amendments
Subsection (c) of section 25D of such Code is amended to read as follows:
Carryforward of unused credit
If the credit allowable under subsection (a) 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) for such succeeding taxable year.
.
Section
23(b)(4)(B) of such Code is amended by inserting and section 25D
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
.
Section 26(a)(1)
of such Code is amended by striking and 25B
and inserting
25B, and 25D
.
Effective date
The amendments made by this section shall apply to expenditures made in taxable years beginning after December 31, 2006.
3-year accelerated depreciation period for solar energy property and fuel cell property
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 a
comma, and by inserting after clause (iii) the following new clauses:
any property which is described in clause (i) or (ii) of section 48(a)(3)(A) (or would be so described if the last sentence of such section did not apply to such clause), and
any property which is described in clause (iv) of section 48(a)(3)(A).
.
Conforming amendment
Subclause (I) of section 168(e)(3)(B)(vi) of the Internal Revenue Code of 1986 is amended to read as follows:
would be described in subparagraph (A) of
section 48(a)(3) if wind energy
were substituted for
solar energy
in clause (i) thereof and the last sentence of such
section did not apply to such
subparagraph,
.
Effective date
The amendments made by this section shall apply to property placed in service after December 31, 2006.