[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5985 Introduced in House (IH)]








109th CONGRESS
  2d Session
                                H. R. 5985

    To amend the Internal Revenue Code of 1986 to extend and modify 
conservation and energy efficiency tax incentives, to extend the energy 
    efficient appliance rebate program, to establish the Center for 
            Advanced Solar Research, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 28, 2006

 Mr. Cardoza introduced the following bill; which was referred to the 
   Committee on Ways and Means, and in addition to the Committees on 
 Financial Services, Science, and Energy and Commerce, for a period to 
      be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 to extend and modify 
conservation and energy efficiency tax incentives, to extend the energy 
    efficient appliance rebate program, to establish the Center for 
            Advanced Solar Research, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Empowering America Act of 2006''.

SEC. 2. EXTENSION AND MODIFICATION OF CREDIT FOR RESIDENTIAL ENERGY 
              EFFICIENT PROPERTY.

    (a) Extension.--Subsection (g) of section 25D of the Internal 
Revenue Code of 1986 (relating to termination) is amended by striking 
``2007'' and inserting ``2015''.
    (b) Modification of Maximum Credit.--Paragraph (1) of section 
25D(b) of such Code (relating to limitations) is amended to read as 
follows:
            ``(1) Maximum credit.--The credit allowed under subsection 
        (a) for any taxable year shall not exceed--
                    ``(A) $2,000 with respect to each half kilowatt of 
                capacity of qualified photovoltaic property for which 
                qualified photovoltaic property expenditures are made,
                    ``(B) $2,000 with respect to any qualified solar 
                water heating property expenditures, and
                    ``(C) $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.''.
    (c) Credit Allowed Against Alternative Minimum Tax.--
            (1) In general.--Section 25D(b) of such Code (as amended by 
        subsection (b)) is amended by adding at the end the following 
        new paragraph:
            ``(3) Credit allowed against alternative minimum tax.--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 
                subpart A of part IV of subchapter A and section 27 for 
                the taxable year.''.
            (2) Conforming amendment.--Subsection (c) of section 25D of 
        such Code is amended to read as follows:
    ``(c) 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.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2006.

SEC. 3. EXTENSION AND MODIFICATION OF CREDIT FOR NONBUSINESS ENERGY 
              PROPERTY.

    (a) Extension.--Subsection (g) of section 25C of the Internal 
Revenue Code of 1986 (relating to termination) is amended by striking 
``2007'' and inserting ``2015''.
    (b) Modification of Credit Amount.--Section 25C of such Code 
(relating to nonbusiness energy property) is amended--
            (1) in subsection (a)(1), by striking ``10 percent'' and 
        inserting ``15 percent'', and
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``$500'' and 
                inserting ``$1,000'',
                    (B) in paragraph (2), by striking ``$200'' and 
                inserting ``$500'', and
                    (C) in paragraph (3)--
                            (i) in subparagraph (A), by striking 
                        ``$50'' and inserting ``$150'',
                            (ii) in subparagraph (B), by striking 
                        ``$150'' and inserting ``$300'', and
                            (iii) in subparagraph (C), by striking 
                        ``$300'' and inserting ``$500''.
    (c) Credit Allowed Against Alternative Minimum Tax.--Section 25C(b) 
of such Code (as amended by subsection (b)(2)) is amended by adding at 
the end the following new paragraph:
            ``(4) Credit allowed against alternative minimum tax.--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 
                subpart A of part IV of subchapter A and section 27 for 
                the taxable year.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2006.

SEC. 4. EXTENSION AND MODIFICATION OF ENERGY EFFICIENT COMMERCIAL 
              BUILDINGS DEDUCTION.

    (a) Extension.--Subsection (h) of section 179D of the Internal 
Revenue Code of 1986 (relating to termination) is amended by striking 
``2007'' and inserting ``2015''.
    (b) Modification of Maximum Deduction.--Subparagraph (A) of section 
179D(b)(1)(A) of such Code (relating to maximum amount of deduction) is 
amended by striking ``$1.80'' and inserting ``$2.00''.
    (c) Modification of Partial Allowance.--Subparagraph (A) of section 
179D(d)(1) of such Code (relating to partial allowance) is amended in 
the flush text following clause (ii) by striking ``substituting `$.60' 
for `$1.80''' and inserting ``substituting `$.75' for `$2.00'''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2006.

SEC. 5. EXTENSION OF ENERGY CREDIT FOR EQUIPMENT WHICH USES SOLAR 
              ENERGY.

    (a) In General.--Subsection (a) of section 48 of the Internal 
Revenue Code of 1986 (relating to energy credit) is amended--
            (1) in paragraph (2)(A)(i)(II) by striking ``2008'' and 
        inserting ``2015'', and
            (2) in paragraph (3)(A)(ii) by striking ``2008'' and 
        inserting ``2015''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2006.

SEC. 6. STUDY ON EFFECTIVENESS OF ENERGY EFFICIENCY TAX INCENTIVES.

    (a) Study.--The Secretary of Energy, in collaboration with the 
Secretary of the Treasury, shall conduct a study on the effectiveness 
of the conservation and energy efficiency tax incentives enacted in 
subtitle C of the Energy Tax Incentives Act of 2005 that includes an 
analysis of the rate of participation with respect to such tax 
incentives and recommendations for additional measures that could be 
taken to increase the rate of participation.
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary of Energy shall transmit to Congress a report 
on the results of the study conducted pursuant to subsection (a).

SEC. 7. ENERGY EFFICIENT APPLIANCE REBATE PROGRAMS.

    Section 124(f) of the Energy Policy Act of 2005 (42 U.S.C. 
15821(f)) is amended by striking ``2010'' and inserting ``2015''.

SEC. 8. SOLAR ENERGY SYSTEMS BUILDING PERMIT REQUIREMENTS FOR RECEIPT 
              OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS.

    Section 104 of the Housing and Community Development Act of 1974 
(42 U.S.C. 5304) is amended by adding at the end the following new 
subsection:
    ``(n) Requirements for Building Permits Regarding Solar Energy 
Systems.--
            ``(1) In general.--A grant under section 106 for a fiscal 
        year may be made only if the grantee certifies to the Secretary 
        that--
                    ``(A) in the case of a grant under section 106(a) 
                for any Indian tribe or insular area, during such 
                fiscal year the cost of any permit or license, for 
                construction or installation of any solar energy system 
                for any structure, that is required by the tribe or 
                insular area or by any other unit of general local 
                government or other political subdivision of such tribe 
                or insular area, complies with paragraph (2);
                    ``(B) in the case of a grant under section 106(b) 
                for any metropolitan city or urban county, during such 
                fiscal year the cost of any permit or license, for 
                construction or installation of any solar energy system 
                for any structure, that is required by the metropolitan 
                city or urban county, or by any other political 
                subdivision of such city or county, complies with 
                paragraph (2); and
                    ``(C) in the case of a grant under section 106(d) 
                for any State, during such fiscal year the cost of any 
                permit or license, for construction or installation of 
                any solar energy system for any structure, that is 
                required by the State, or by any other unit of general 
                local government within any nonentitlement area of such 
                State, or other political subdivision within any 
                nonentitlement area of such State or such a unit of 
                general local government, complies with paragraph (2).
            ``(2) Limitation on cost.--The cost of permit or license 
        for construction or installation of any solar energy system 
        complies with this paragraph only if such cost does not exceed 
        the following amount:
                    ``(A) Residential structures.--In the case of a 
                structure primarily for residential use, $500.
                    ``(B) Nonresidential structures.--In the case of a 
                structure primarily for nonresidential use, 1.0 percent 
                of the total cost of the installation or construction 
                of the solar energy system.
            ``(3) Noncompliance.--If the Secretary determines that a 
        grantee of a grant made under section 106 is not in compliance 
        with a certification under paragraph (1)--
                    ``(A) the Secretary shall notify the grantee of 
                such determination; and
                    ``(B) if the grantee has not corrected such 
                noncompliance before the expiration of the 6-month 
                period beginning upon notification under subparagraph 
                (A), such grantee shall not be eligible for a grant 
                under section 106 for the first fiscal year that 
                commences after the expiration of such 6-month period.
            ``(4) Solar energy system.--For purposes of this 
        subsection, the term `solar energy system' means, with respect 
        to a structure, equipment that uses solar energy to generate 
        electricity for, or to heat or cool (or provide hot water for 
        use in), such structure.''.

SEC. 9. PROHIBITION OF RESTRICTIONS ON RESIDENTIAL INSTALLATION OF 
              SOLAR ENERGY SYSTEM.

    (a) Regulations.--Within 180 days after the enactment of this Act, 
the Secretary of Housing and Urban Development, in consultation with 
the Secretary of Energy, shall issue regulations--
            (1) to prohibit any private covenant, contract provision, 
        lease provision, homeowners' association rule or bylaw, or 
        similar restriction, that impairs the ability of the owner or 
        lessee of any residential structure designed for occupancy by 
        one family to install, construct, maintain, or use a solar 
        energy system on such residential property; and
            (2) to require that whenever any such covenant, provision, 
        rule or bylaw, or restriction requires approval for the 
        installation or use of a solar energy system, the application 
        for approval shall be processed and approved by the appropriate 
        approving entity in the same manner as an application for 
        approval of an architectural modification to the property, and 
        shall not be willfully avoided or delayed.
    (b) Contents.--Such regulations shall provide that--
            (1) such a covenant, provision, rule or bylaw, or 
        restriction impairs the installation, construction, 
        maintenance, or use of a solar energy system if it--
                    (A) unreasonably delays or prevents installation, 
                maintenance, or use;
                    (B) unreasonably increases the cost of 
                installation, maintenance, or use; or
                    (C) precludes use of such a system; and
            (2) any fee or cost imposed on the owner or lessee of such 
        a residential structure by such a covenant, provision, rule or 
        bylaw, or restriction shall be considered unreasonable if--
                    (A) such fee or cost is not reasonable in 
                comparison to the cost of the solar energy system or 
                the value of its use; or
                    (B) treatment of solar energy systems by the 
                covenant, provision, rule or bylaw, or restriction is 
                not reasonable in comparison with treatment of 
                comparable systems by the same covenant, provision, 
                rule or bylaw, or restriction.
    (c) Solar Energy System.--For purposes of this section, the term 
``solar energy system'' means, with respect to a structure, equipment 
that uses solar energy to generate electricity for, or to heat or cool 
(or provide hot water for use in), such structure.

SEC. 10. CENTER FOR ADVANCED SOLAR RESEARCH.

    (a) Establishment.--The Secretary of Energy shall establish a 
Center for Advanced Solar Research and Development within the Office of 
Energy Efficiency and Renewable Energy to carry out an advanced solar 
research and development program to coordinate and promote the further 
development of solar technologies. This program shall include a 
competitive grant program for academia and private research in solar 
technologies. The Center shall serve as a clearinghouse for United 
States solar research and development, supporting research, 
development, and demonstration of advanced solar energy systems. The 
Center shall advance--
            (1) performance, reliability, environmental impact, and 
        cost-competiveness of solar thermal and photovoltaic 
        technologies;
            (2) large-scale photovoltaic and solar thermal power 
        plants;
            (3) thermal and electricity storage technologies to enhance 
        the dispatchability of solar energy;
            (4) fuel production technologies using solar energy;
            (5) innovation in manufacturing techniques and processes 
        for solar energy systems;
            (6) materials and devices to improve photovoltaic 
        conversion efficiencies and reduce costs;
            (7) policy analysis aimed at increasing use of solar energy 
        technologies, and monitoring the effectiveness of existing 
        policies; and
            (8) comprehensive solar systems integration.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy for carrying out this section 
$250,000,000 for each of the fiscal years 2007 through 2011, to remain 
available until expended.
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