II 109th CONGRESS 2d Session S. 2677 IN THE SENATE OF THE UNITED STATES April 27, 2006 Mr. Smith (for himself, Mr. Menendez, Mr. Lieberman, Ms. Snowe, Mr. Jeffords, Mr. Kerry, Ms. Cantwell, Mr. Salazar, and Mrs. Clinton) 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.

1.

Short title

This Act may be cited as the Securing America's Energy Independence Act.

2.

Extension and modification of investment tax credit with respect to solar energy property and qualified fuel cell property

(a)

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 2008 and inserting 2016. (b)

Eligible fuel cell property

Paragraph (1)(E) of section 48(c) of the Internal Revenue Code of 1986 is amended by striking 2007 and inserting 2015. (c)

Credits allowed against the alternative minimum tax

Section 38(c)(4)(B) of the Internal Revenue Code of 1986 (defining specified credits) is amended by striking the period at the end of clause (ii)(II) and inserting , and, and by adding at the end the following new clause: (iii)the portion of the investment credit under section 46(2) as determined under section 48(a)(2)(A)(i). .

3.

Extension and modification of credit for residential energy efficient property

(a)

Extension

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 the Internal Revenue Code of 1986 (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)$1,000 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 the Internal Revenue Code of 1986 (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.