S. 2899

Renewable Energy Incentive Act

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Contents

II

111th CONGRESS

1st Session

S. 2899

IN THE SENATE OF THE UNITED STATES

December 17, 2009

Mrs. Feinstein (for herself and Mr. Merkley) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the American Recovery and Reinvestment Act of 2009 and the Internal Revenue Code of 1986 to provide incentives for the development of solar energy.

1.

Short title

This Act may be cited as the Renewable Energy Incentive Act.

2.

Extension of grants for specified energy property in lieu of tax credits

(a)

In general

Subsection (a) of section 1603 of division B of the American Recovery and Reinvestment Act of 2009 is amended—

(1)

in paragraph (1), by striking 2009 or 2010 and inserting 2009, 2010, 2011, or 2012, and

(2)

in paragraph (2)—

(A)

by striking after 2010 and inserting after 2012, and

(B)

by striking 2009 or 2010 and inserting 2009, 2010, 2011, or 2012.

(b)

Conforming amendment

Subsection (j) of section 1603 of division B of such Act is amended by striking 2011 and inserting 2013.

3.

Expansion of grants for specified energy property in lieu of tax credits

(a)

Grants allowed for certain governmental units

Paragraph (1) of section 1603(g) of division B of the American Recovery and Reinvestment Act of 2009 is amended by inserting other than a governmental unit which is a State utility with a service obligation (as such terms are defined in section 217 of the Federal Power Act), after thereof),.

(b)

Grants allowed for public power

Paragraph (3) section 1603(g) of division B of such Act is amended by striking paragraph (4) of section 54(j) and inserting subparagraph (A) or (B) of section 54(j)(4).

(c)

No grants for property for which CREBs have been issued

Section 1603 of division B of such Act, as amended by section 2, is amended by redesignating subsections (h), (i), and (j) as subsections (i), (j), and (k), respectively, and by inserting after subsection (g) the following new subsection:

(h)

Exception for certain projects

The Secretary of the Treasury shall not make any grant under this section to any governmental unit with respect to any specified energy property described in subsection (d)(1) if such entity has issued any bond—

(1)

which is designated as a clean renewable energy bond under section 54 of the Internal Revenue Code of 1986 or as a new clean renewable energy bond under section 54C of such Code, and

(2)

the proceeds of which are used for expenditures in connection with the same qualified facility with respect to which such specified energy property is a part.

.

(d)

Effective date

The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.

4.

Credit for qualified solar manufacturing project property

(a)

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 (vi), by inserting or at the end of clause (vii), and by inserting after clause (vii) the following new clause:

(viii)

qualified solar manufacturing project property,

.

(b)

Credit percentage

Subclause (II) of section 48(a)(2)(A)(i) of such Code is amended by striking paragraph (3)(A)(i) and inserting clause (i) or (viii) of paragraph (3)(A).

(c)

Qualified solar manufacturing property

Section 48(c) of such Code is amended by adding at the end the following new paragraph:

(5)

Qualified solar manufacturing project property

The term qualified solar manufacturing project property means any tangible personal property (not including a building or its structural components) purchased to re-equip, expand, or establish a manufacturing facility for the production of property described in subsection (a)(3)(A)(i), but only if such property is used as an integral part of the production process. Such term shall not include any property if such property has been certified for a credit under section 48C.

.

(d)

Property eligible for grant

Subsection (d) of section 1603 of division B of the American Recovery and Reinvestment Act of 2009 is amended by inserting after paragraph (8) the following new paragraph:

(9)

Qualified solar manufacturing project property

Any qualified solar manufacturing project property (as defined in section 48(c)(5) of such Code).

.

(e)

Effective date

(1)

In general

The amendments made by subsections (a), (b), and (c) shall apply to periods after the date of the enactment of this Act, 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).

(2)

Grants

The amendment made by subsection (d) shall apply to property placed in service after the date of the enactment of this Act.

5.

Credit for high solarity disturbed private land consolidation

(a)

In general

Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

45R.

High solarity disturbed private land consolidation credit

(a)

In general

For purposes of section 38, the high solarity disturbed private land consolidation credit for any taxable year is an amount equal to 30 percent of any amounts paid during the taxable year to purchase more than 2 sections of contiguous high solarity disturbed private land for the purpose of consolidating the lands into a contiguous block suitable for the production of solar energy for use in a trade or business.

(b)

High solarity disturbed private land

The term high solarity disturbed private land means real property which—

(1)

is located in the United States,

(2)

was acquired in units that averaged less than 100 contiguous acres from any private person,

(3)

is in a location identified on the July 2007 Concentrating Solar Power Resources Maps published by the National Renewable Energy Laboratory as—

(A)

having a solar resource of 7 kwh per square meter per year or higher, at 3 percent or less grade, and

(B)

outside of a sensitive environmental or urban area,

(4)

was previously disturbed either by residential or retail development, agriculture, industrial use, mining, or other mechanical disturbance, and

(5)

will be primarily used for generating solar electricity from property which is described in section 48(a)(3)(A)(i) within 5 years of the date of purchase.

(c)

Reduction in basis

If a credit is determined under this section with respect to any property by reason of expenditures described in subsection (a), the basis of such property shall be reduced by the amount of the credit so determined.

(d)

Property used by tax-Exempt persons

For purposes of this section, rules similar to the rules of paragraphs (3) and (4) of section 50(b) shall apply.

(e)

Recapture in case of disposition

The Secretary shall provide for the recapture of the amount of any credit allowed under this section if the property is not used for the production of solar energy in a trade or business within 5 years of the date of purchase.

.

(b)

Credit allowed as business credit

Section 38(b) of such Code is amended by striking plus at the end of paragraph (34), by striking the period at the end of paragraph (35) and inserting , plus, and by adding at the end the following new paragraph:

(36)

the high solarity disturbed private land consolidation credit determined under section 45R(a).

.

(c)

Basis adjustment

Section 1016(a) of such Code is amended by striking and at the end of paragraph (36), by striking the period at the end of paragraph (37) and inserting , and, and by adding at the end the following:

(38)

in the case of a facility with respect to which a credit was allowed under section 45R, to the extent provided in section 45R(c).

.

(d)

Clerical amendment

The table of sections for subpart F of part IV subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 51 the following new item:

.

(e)

Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

6.

Energy credit allowed for water heaters in pools located on commercial property

(a)

In general

Section 48(a)(3)(A)(i) of the Internal Revenue Code of 1986 is amended by inserting located at a single family residence after swimming pool.

(b)

Effective date

The amendment made by this section shall apply to property placed in service after the date of the enactment of this Act.