[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1596 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 1596

 To amend the Internal Revenue Code of 1986 to provide and extend tax 
           incentives for renewable energy and conservation.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 20, 2007

  Mr. Ferguson (for himself, Mr. Kuhl of New York, Mr. Reichert, Mr. 
Burton of Indiana, and Ms. Ginny Brown-Waite of Florida) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to provide and extend tax 
           incentives for renewable energy and conservation.

    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 ``Clean and Green Renewable Energy Tax 
Credit Act of 2007''.

SEC. 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 ``2009'' and inserting ``2031''.
    (b) Eligible Fuel Cell Property.--Paragraph (1)(E) of section 48(c) 
of such Code is amended by striking ``2008'' and inserting ``2030''.
    (c) Modification of Energy Percentage.--
            (1) In general.--Clause (i) of section 48(a)(2)(A) of such 
        Code is amended by striking ``30 percent'' and inserting ``the 
        applicable percentage''.
            (2) Applicable percentage.--Paragraph (2) of section 48(a) 
        of such Code is amended by adding at the end the following new 
        subparagraph:
                    ``(C) Applicable percentage.--For purposes of this 
                paragraph, the term `applicable percentage' means--
                            ``(i) 30 percent in the case of any taxable 
                        year beginning after December 31, 2006, and 
                        before January 1, 2016,
                            ``(ii) 25 percent in the case of any 
                        taxable year beginning after December 31, 2015, 
                        and before January 1, 2022, and
                            ``(iii) 20 percent in the case of any 
                        taxable year beginning after December 31, 
                        2021.''.
    (d) Energy Property To Include Excess Energy Storage Device.--
Clause (i) of section 48(a)(3)(A) of such Code is amended to read as 
follows:
                            ``(i) 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,''.
    (e) Solar Lighting Equipment To Include Solar Hybrid Lighting 
Systems.--Clause (ii) of section 48(a)(3)(A) of such Code is amended to 
read as follows:
                            ``(ii) equipment which uses solar energy to 
                        illuminate the inside of a structure using 
                        fiber-optic distributed sunlight but only with 
                        respect to periods ending before January 1, 
                        2031,''.
    (f) Modifications.--
            (1) Solar photovoltaic energy property credit determined 
        solely by kilowatt capacity.--
                    (A) In general.--Subsection (a) of section 48 of 
                such Code is amended by redesignating paragraph (4) as 
                paragraph (5) and by inserting after paragraph (3) the 
                following new paragraph:
            ``(4) Special rule for energy credit for solar photovoltaic 
        energy property.--
                    ``(A) 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 capacity 
                of such property. Paragraph (2)(A)(ii) shall not apply 
                to property to which the preceding sentence applies.
                    ``(B) 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.''.
                    (B) 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''.
    (g) Credit Allowed Against the Alternative Minimum Tax.--Section 
38(c)(4)(B) of such Code (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 which is attributable to the energy 
                        credit determined under section 48.''.
    (h) Effective Dates.--The amendments made by this section shall 
apply to property placed in service in taxable years beginning after 
December 31, 2006.

SEC. 3. 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 
``2009'' and inserting ``2016''.
    (b) Solar Electric Property.--Paragraph (1) of section 25D(a) of 
such Code (relating to allowance of credit) is amended by striking ``30 
percent of''.
    (c) Modification of Maximum Credit.--Subparagraph (A) of section 
25D(b)(1) of such Code is amended to read as follows:
                    ``(A) $1,500 with respect to each half kilowatt of 
                installed capacity of property described in subsection 
                (d)(2) for which qualified solar electric property 
                expenditures are made,''.
    (d) Definition of Qualified Solar Water Heating Property 
Expenditure.--Paragraph (1) of section 25D(d) of such Code is amended 
by striking ``to heat water for use in'' and inserting ``to heat or 
cool (or provide hot water for use in)''.
    (e) Definition of Qualified Photovoltaic Property Expenditure.--
Paragraph (2) of section 25D(d) of such Code is amended by inserting 
``, including advanced energy storage systems installed as an 
integrated component of the foregoing'' after ``taxpayer''.
    (f) 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 (other than this 
                section) and section 27 for the taxable year.''.
            (2) Conforming amendments.--
                    (A) 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.''.
                    (B) Section 23(b)(4)(B) of such Code is amended by 
                inserting ``and section 25D'' after ``this section''.
                    (C) Section 24(b)(3)(B) of such Code is amended by 
                striking ``sections 23 and 25B'' and inserting 
                ``sections 23, 25B, and 25D''.
                    (D) Section 26(a)(1) of such Code is amended by 
                striking ``and 25B'' and inserting ``25B, and 25D''.
    (g) Effective Date.--The amendments made by this section shall 
apply to expenditures made in taxable years beginning after December 
31, 2006.

SEC. 4. 3-YEAR ACCELERATED DEPRECIATION PERIOD FOR SOLAR ENERGY 
              PROPERTY AND FUEL CELL PROPERTY.

    (a) 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 clause:
                            ``(iv) 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
                            ``(v) any property which is described in 
                        clause (iv) of section 48(a)(3)(A).''.
    (b) Conforming Amendment.--Section 168(e)(3)(B)(vi)(I) of such Code 
is amended to read as follows:
                                    ``(I) 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,''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2006.

SEC. 5. 5-YEAR EXTENSION OF CREDIT FOR ELECTRICITY PRODUCED FROM 
              CERTAIN RENEWABLE RESOURCES.

    Section 45(d) of the Internal Revenue Code of 1986 (relating to 
qualified facilities) is amended by striking ``2009'' each place it 
appears and inserting ``2014''.

SEC. 6. INVESTMENT CREDIT FOR SMALL WIND SYSTEMS.

    (a) Energy Credit for Businesses.--
            (1) In general.--Subparagraph (A) of section 48(a)(3) of 
        the Internal Revenue Code of 1986 (relating to energy property) 
        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:
                            ``(v) equipment which uses wind to generate 
                        electricity if such equipment is rated at 100 
                        kW or less,''.
            (2) 30 percent credit.--Clause (i) of section 48(a)(2)(A) 
        of such Code is amended by striking ``and'' at the end of 
        subclause (II) and by inserting after subclause (III) the 
        following new subclause:
                                    ``(IV) energy property described in 
                                paragraph (3)(A)(v), and''.
    (b) Residential Energy Efficient Property Credit for Individuals.--
            (1) In general.--Subsection (a) of section 25D of such Code 
        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:
            ``(4) 30 percent of the qualified small wind system 
        expenditures made by the taxpayer during the taxable year.''.
            (2) Maximum credit.--Paragraph (1) of section 25D(b) of 
        such Code 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:
            ``(4) $1,500 with respect to each half kilowatt of 
        installed capacity of equipment described in subsection (d)(4) 
        for which qualified small wind system expenditures are made,''.
            (3) Qualified small wind system expenditures.--Subsection 
        (d) of section 25D of such Code is amended by adding at the end 
        the following new paragraph:
            ``(4) Qualified small wind system expenditures.--The term 
        `qualified small wind system expenditures' means an expenditure 
        for equipment which uses wind to generate electricity for use 
        in a dwelling unit located in the United States and used as a 
        residence by the taxpayers if such equipment is rated at 100 kW 
        or less.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2006.

SEC. 7. EXTENSION OF CREDIT FOR NONBUSINESS ENERGY PROPERTY.

    Subsection (g) of section 25C of the Internal Revenue Code of 1986 
is amended by striking ``December 31, 2007'' and inserting ``December 
31, 2009''.
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