Short Title

This Act may be cited as the

Renewable Energy Tax Extenders Act

Renewable energy credit

(a)

10-year extension

Each of the following provisions of section 45(d) of the Internal Revenue Code of 1986 is amended by striking January 1, 2009 and inserting January 1, 2019: (1)Paragraph (1). (2)Clauses (i) and (ii) of paragraph (2)(A). (3)Clauses (i)(I) and (ii) of paragraph (3)(A). (4)Paragraph (4). (5)Paragraph (5). (6)Paragraph (6). (7)Paragraph (7). (8)Subparagraphs (A) and (B) of paragraph (9). (b)

Expansion of biomass facilities

(1)

Open-loop biomass facilities

Paragraph (3) of section 45(d) of the Internal Revenue Code of 1986 is amended by redesignating subparagraph (B) as subparagraph (C) and by inserting after subparagraph (A) the following new subparagraph:

(B)

Expansion of facility

Such term shall include a new unit placed in service after the date of the enactment of this subparagraph in connection with a facility described in subparagraph (A), but only to the extent of the increased amount of electricity produced at the facility by reason of such new unit.

(2)

Closed-loop biomass facilities

Paragraph (2) of section 45(d) of such Code is amended by redesignating subparagraph (B) as subparagraph (C) and inserting after subparagraph (A) the following new subparagraph:

(B)

Expansion of facility

Such term shall include a new unit placed in service after the date of the enactment of this subparagraph in connection with a facility described in subparagraph (A)(i), but only to the extent of the increased amount of electricity produced at the facility by reason of such new unit.

(c)

Modification of rules for hydropower production

Subparagraph (C) of section 45(c)(8) of such Code is amended to read as follows:

(C)

Nonhydroelectric dam

For purposes of subparagraph (A), a facility is described in this subparagraph if— (i)the hydroelectric project installed on the nonhydroelectric dam is licensed by the Federal Energy Regulatory Commission and meets all other applicable environmental, licensing, and regulatory requirements, (ii)the nonhydroelectric dam was placed in service before the date of the enactment of this paragraph and operated for flood control, navigation, or water supply purposes and did not produce hydroelectric power on the date of the enactment of this paragraph, and (iii)the hydroelectric project is operated so that the water surface elevation at any given location and time that would have occurred in the absence of the hydroelectric project is maintained, subject to any license requirements imposed under applicable law that change the water surface elevation for the purpose of improving environmental quality of the affected waterway.

The Secretary, in consultation with the Federal Energy Regulatory Commission, shall certify if a hydroelectric project licensed at a nonhydroelectric dam meets the criteria in clause (iii). Nothing in this section shall affect the standards under which the Federal Energy Regulatory Commission issues licenses for and regulates hydropower projects under part I of the Federal Power Act.

(d)

Effective date

(1)

Extension

Except as otherwise provided in this subsection, the amendments made by this section shall apply to property originally placed in service after December 31, 2008. (2)

Expansion of biomass facilities

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

Production credit for electricity produced from marine renewables

(a)

In general

Paragraph (1) of section 45(c) of the Internal Revenue Code of 1986 is amended by striking and at the end of subparagraph (G), by striking the period at the end of subparagraph (H) and inserting, and, and by adding at the end the following new subparagraph:

(I)marine and hydrokinetic renewable energy.

(b)

Marine renewables

Subsection (c) of section 45 of such Code is amended by adding at the end the following new paragraph:

(10)

Marine and hydrokinetic renewable energy

(A)

In general

The term marine and hydrokinetic renewable energy means energy derived from— (i)waves, tides, and currents in oceans, estuaries, and tidal areas, (ii)free flowing water in rivers, lakes, and streams, (iii)free flowing water in an irrigation system, canal, or other man-made channel, including projects that utilize nonmechanical structures to accelerate the flow of water for electric power production purposes, or (iv)differentials in ocean temperature (ocean thermal energy conversion). (B)

Exceptions

Such term shall not include any energy which is derived from any source which utilizes a dam, diversionary structure (except as provided in subparagraph (A)(iii)), or impoundment for electric power production purposes.

(c)

Definition of facility

Subsection (d) of section 45 of such Code is amended by adding at the end the following new paragraph:

(11)

Marine and hydrokinetic renewable energy facilities

In the case of a facility producing electricity from marine and hydrokinetic renewable energy, the term qualified facility means any facility owned by the taxpayer— (A)which has a nameplate capacity rating of at least 150 kilowatts, and (B)which is originally placed in service on or after the date of the enactment of this paragraph and before January 1, 2019.

(d)

Credit rate

Subparagraph (A) of section 45(b)(4) of such Code is amended by striking or (9) and inserting (9), or (11). (e)

Coordination with small irrigation power

Paragraph (5) of section 45(d) of such Code, as amended by section 1, is amended by striking January 1, 2019 and inserting the date of the enactment of paragraph (11). (f)

Effective date

The amendments made by this section shall apply to electricity produced and sold after the date of the enactment of this Act, in taxable years ending after such date.

Energy credit

(a)

Extension of credit

(1)

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, 2019. (2)

Fuel cell property

Subparagraph (E) of section 48(c)(1) of such Code is amended by striking December 31, 2008 and inserting December 31, 2018. (3)

Microturbine property

Subparagraph (E) of section 48(c)(2) of such Code is amended by striking December 31, 2008 and inserting December 31, 2018. (b)

Effective date

The amendments made by this section shall take effect on the date of the enactment of this Act.

Credit for residential energy efficient property

(a)

Extension

Section 25D(g) of the Internal Revenue Code of 1986 is amended by striking December 31, 2008 and inserting December 31, 2018. (b)

Credit for geothermal heat Pump systems

(1)

In general

Section 25D(a) 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 geothermal heat pump property expenditures made by the taxpayer during such year.

(2)

Limitation

Section 25D(b)(1) of such Code is amended by striking and at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting , and, and by adding at the end the following new subparagraph:

(D)$2,000 with respect to any qualified geothermal heat pump property expenditures.

(3)

Qualified geothermal heat pump property expenditure

Section 25D(d) of such Code is amended by adding at the end the following new paragraph:

(4)

Qualified geothermal heat pump property expenditure

(A)

In general

The term qualified geothermal heat pump property expenditure means an expenditure for qualified geothermal heat pump property installed on or in connection with a dwelling unit located in the United States and used as a residence by the taxpayer. (B)

Qualified geothermal heat pump property

The term qualified geothermal heat pump property means any equipment which— (i)uses the ground or ground water as a thermal energy source to heat the dwelling unit referred to in subparagraph (A) or as a thermal energy sink to cool such dwelling unit, and (ii)meets the requirements of the Energy Star program which are in effect at the time that the expenditure for such equipment is made.

(4)

Maximum expenditures in case of joint occupancy

Section 25D(e)(4)(A) of such Code is amended by striking and at the end of clause (ii), by striking the period at the end of clause (iii) and inserting , and, and by adding at the end the following new clause:

(iv)$6,667 in the case of any qualified geothermal heat pump property expenditures.

(c)

Effective date

The amendment made by this section shall apply to property placed in service after December 31, 2008.

Alternative motor vehicle credit

(a)

Extension

Subsection (j) of section 30B of the Internal Revenue Code of 1986 (relating to termination of credit) is amended to read as follows:

(j)

Termination

This section shall not apply to any property purchased after December 31, 2018.

(b)

Repeal of limitation on number of new qualified hybrid and advanced lean-burn technology vehicles eligible for credit

Section 30B of such Code is amended by striking subsection (f). (c)

Effective dates

(1)

Extension

The amendment made by subsection (a) shall take effect on the date of the enactment of this Act. (2)

Repeal of limitation

The amendment made by subsection (b) shall apply to vehicles manufactured after December 31, 2008.