1.Short
title; references, table of contents
(a)This Act may be cited
as the Clean Renewable Energy and
Economic Development Incentives Act of 2007
.
(b)Except as otherwise expressly provided, whenever in
this title an amendment or repeal is expressed in terms of an amendment to, or
repeal of, a section or other provision, the reference shall be considered to
be made to a section or other provision of the Internal Revenue Code of
1986.
(c)The table of contents of this Act is as follows:
Sec. 1. Short title;
references, table of contents.
TITLE I—Tax incentives for energy conservation and
exploration
Sec. 101. Extension of renewable electricity production
credit.
Sec. 102. Extension and modification of clean renewable energy
bond credit.
Sec. 103. Water conservation, reuse and efficiency
bonds.
Sec. 104. Credit for geothermal exploration
expenditures.
Sec. 105. Credit for wind energy systems.
Sec. 106. Extension and modification of new energy efficient
home credit.
Sec. 107. Investment tax credit for advanced battery
production.
Sec. 108. Qualified renewable school energy bonds.
Sec. 109. Treatment of bonds issued to finance renewable energy
resource facilities.
TITLE II—Investment tax credit with respect to solar energy
property and manufacturing
Subtitle A—Solar energy property
Sec. 201. Energy credit with respect to solar energy
property.
Sec. 202. Repeal of exclusion for solar and geothermal public
utility property under energy credit.
Sec. 203. Permanent extension and modification of credit for
residential energy efficient property.
Sec. 204. 3-year accelerated depreciation period for solar
energy property.
Subtitle B—Promotion of solar manufacturing in the United
States
Sec. 211. Solar manufacturing credit.
<enum>I</enum><header>Tax
incentives for energy conservation and exploration</header>
<section id="id305D6C3E024A47A6B67BFDCCA833562F"><enum>101.</enum><header>Extension of
renewable electricity production credit</header>
<subsection id="id46DAE456A95440328801A79E024544D7"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Paragraphs (1), (2),
(3), (4), (5), (6), (7), and (9) of section 45(d) (relating to qualified
facilities) are amended by striking <quote>January 1, 2009</quote> each place
it appears and inserting <quote>January 1, 2019</quote>.</text>
</subsection><subsection id="idBEE2FFBCD67342138BB72EDEE79C0C7A"><enum>(b)</enum><header>Deemed
placed-In-service date for renewable electricity facilities</header><text display-inline="yes-display-inline">Section 45(e) (relating to definitions and
special rules) is amended by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="idEFDE0E5A6C84421386A355D18C1CB875" style="OLC">
<paragraph id="id2C2D3C1EA9F9465F9533674030854539"><enum>(12)</enum><header>Deemed
placed-in-service date for certain facilities</header>
<subparagraph id="id26498673C23649648770E9F45D1A7087"><enum>(A)</enum><header>In
general</header><text>In the case of any facility described in paragraph (1),
(2), (3), (4) (respect to geothermal energy), (5), (6), (7), or (9), for
purposes of such paragraph, such facility shall be treated as being placed in
service before January 1, 2019, if such facility is under construction before
such date and is producing and selling electricity within 2 years after such
date.</text>
</subparagraph><subparagraph id="id12B603CB603447F08F117391A15778F9"><enum>(B)</enum><header>Period of
credit</header><text>If a facility is treated as placed in service pursuant to
subparagraph (A), the 10-year period referred to in subsection (a) shall be
treated as beginning on January 1,
2019.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idCB79CD6A4FB64FE19977267B9CD4A5EC"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on the
date of the enactment of this Act.</text>
</subsection></section><section id="idD2D37090BB974A7C9D3D160CB0D459A6"><enum>102.</enum><header>Extension and
modification of clean renewable energy bond credit</header>
<subsection id="id6D8D0B0FFB3C4F52BDDA242CBFAFE04B"><enum>(a)</enum><header>Extension</header><text>Subsection
54(m) (relating to termination) is amended by striking <quote>2008</quote> and
inserting <quote>2018</quote>.</text>
</subsection><subsection id="id2C363F2D68B34D349FD27F168463462D"><enum>(b)</enum><header>Annual volume
cap for bonds issued during extension period</header><text>Paragraph (1) of
subsection 54(f) (relating to national limitation) is amended to read as
follows:</text>
<quoted-block act-name="" id="id7AC4248F2BF042F29BD469A0EE292F18" style="OLC">
<paragraph id="idB76064E5811D48C2A310DC35F792EF10"><enum></enum><header>National
limitation</header>
<subparagraph id="idF32C6C1056DA4FFC8E624AB8F00D15EE"><enum>(A)</enum><header>Initial
national limitation</header><text>With respect to bonds issued after December
31, 2005, and before January 1, 2009, there is a national clean renewable
energy bond limitation of $1,200,000,000.</text>
</subparagraph><subparagraph id="id040686EA2EF344A69DCDD6699EDC0ABE"><enum>(B)</enum><header>Annual national
limitation</header><text>With respect to bonds issued after December 31, 2008,
and before January 1, 2019, there is a national clean renewable energy bond
limitation for each calendar year of
$1,000,000,000.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id1188DC734EB849D4BB18EF4EFBD2D28C"><enum>(c)</enum><header>Allocation by
Secretary</header><text>Paragraph (2) of subsection 54(f) (relating to
allocation by Secretary) is amended by striking <quote>, except that the
Secretary</quote> and inserting <quote>, except that, in the case of bonds
issued under paragraph (1)(A), the Secretary</quote>.</text>
</subsection><subsection id="idCD7121803F2E43FEA57A0A4005CA43CC"><enum>(d)</enum><header>Publicity
regarding allocation of clean renewable energy bonds</header>
<paragraph id="idB0A45589458E4B9C8B2DD7826524D143"><enum>(1)</enum><header>In
general</header><text>Section 54 is amended by redesignating subsection (m) as
subsection (n) and by inserting after subsection (l) the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="idEE89F7397C374E13BE0555541DB4F11E" style="OLC">
<subsection id="id67431205786046CFB911D0065137CB5C"><enum>(m)</enum><header>Publicity
regarding allocation of clean renewable energy bonds</header><text>The
Secretary shall prepare a report not later than 1 year after each allocation
under subsection (f) to Congress, and make such report publicly available,
which with respect to such allocation identifies the name of each applicant for
such allocation, the name of the borrower (if other than the applicant), the
type and location of the project that is the subject of such application, and
the amount of the allocation under subsection (f) for such project in the event
the project receives such an
allocation.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="idEF57CA26CC6E46D18E2E3A723879C5E9"><enum>(2)</enum><header>Effective
date</header><text>The amendments made by this subsection shall apply to
applications for allocations made after the date of the enactment of this
Act.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idD0EB2FB9C4E04BFEADC24F1E180A7DF5"><enum>(e)</enum><header>Effective
date</header><text>Except as otherwise provided, the amendments made by this
section shall apply to bonds issued after December 31, 2007.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="idB53BECCAD2184A3F9544C194EBD8275B"><enum>103.</enum><header>Water
conservation, reuse and efficiency bonds</header>
<subsection id="id403AE1854F2E4E6D9FAE079D3FE993FE"><enum>(a)</enum><header>In
general</header><text>Subpart H of part IV of subchapter A of chapter 1
(relating to credits against tax) is amended by adding at the end the following
new section:</text>
<quoted-block display-inline="no-display-inline" id="idE43CAC1A76084A8381C9CD796C4F7EF4" style="OLC">
<section id="IDa00569f94822464dbd6c64e24804d2ed"><enum>54A.</enum><header>Credit to
holders of water conservation, reuse and efficiency bonds</header>
<subsection id="ID3c83da8f766e446882ce6a5b9fdd4172"><enum>(a)</enum><header>Allowance of
credit</header><text>If a taxpayer holds a water conservation, reuse and
efficiency bond on 1 or more credit allowance dates of the bond occurring
during any taxable year, there shall be allowed as a credit against the tax
imposed by this chapter for the taxable year an amount equal to the sum of the
credits determined under subsection (b) with respect to such dates.</text>
</subsection><subsection id="IDd969d3a665954b58b073a1b9c915995f"><enum>(b)</enum><header>Amount of
credit</header>
<paragraph id="IDcc5261947888438bba0dd942566a5058"><enum>(1)</enum><header>In
general</header><text>The amount of the credit determined under this subsection
with respect to any credit allowance date for a water conservation, reuse and
efficiency bond is 25 percent of the annual credit determined with respect to
such bond.</text>
</paragraph><paragraph id="ID5aa273b97b0e47819edfb0dc5cf8cc81"><enum>(2)</enum><header>Annual
credit</header><text>The annual credit determined with respect to any water
conservation, reuse and efficiency bond is the product of—</text>
<subparagraph id="ID8a3e5c60855e43a98f10eede2ad718fc"><enum>(A)</enum><text>the credit rate
determined by the Secretary under paragraph (3) for the day on which such bond
was sold, multiplied by</text>
</subparagraph><subparagraph id="ID65e0cdd812f74fa698c022a4b96cff99"><enum>(B)</enum><text>the outstanding
face amount of the bond.</text>
</subparagraph></paragraph><paragraph id="ID38c53446a9704436a2bb38ed8d0e90fa"><enum>(3)</enum><header>Determination</header><text>For
purposes of paragraph (2), with respect to any water conservation, reuse and
efficiency bond, the Secretary shall determine daily or cause to be determined
daily a credit rate which shall apply to the first day on which there is a
binding, written contract for the sale or exchange of the bond. The credit rate
for any day is the credit rate which the Secretary or the Secretary’s designee
estimates will permit the issuance of water conservation, reuse and efficiency
bonds with a specified maturity or redemption date without discount and without
interest cost to the qualified issuer.</text>
</paragraph><paragraph id="ID498dfc0af59d4cca99db19e5aefac9fd"><enum>(4)</enum><header>Credit
allowance date</header><text>For purposes of this section, the term
<term>credit allowance date</term> means—</text>
<subparagraph id="IDc017aacfa8644534a16a0dae93f24b2d"><enum>(A)</enum><text>March 15,</text>
</subparagraph><subparagraph id="ID60127511ce6042b4b8f6db3ecb67cfb4"><enum>(B)</enum><text>June 15,</text>
</subparagraph><subparagraph id="IDf331b4daa90c41fbb0e5d78edf627b2f"><enum>(C)</enum><text>September 15,
and</text>
</subparagraph><subparagraph id="ID10e46c10174141b58dc9b809064418fb"><enum>(D)</enum><text>December
15.</text>
</subparagraph><continuation-text continuation-text-level="paragraph">Such term
also includes the last day on which the bond is outstanding.</continuation-text></paragraph><paragraph id="IDbd818cea7d844e5e8482ab5ad31bd9ac"><enum>(5)</enum><header>Special rule
for issuance and redemption</header><text>In the case of a bond which is issued
during the 3-month period ending on a credit allowance date, the amount of the
credit determined under this subsection with respect to such credit allowance
date shall be a ratable portion of the credit otherwise determined based on the
portion of the 3-month period during which the bond is outstanding. A similar
rule shall apply when the bond is redeemed or matures.</text>
</paragraph></subsection><subsection id="ID41de55377ade44fe892f1951474515e3"><enum>(c)</enum><header>Limitation
based on amount of tax</header><text>The credit allowed under subsection (a)
for any taxable year shall not exceed the excess of—</text>
<paragraph id="ID6fd5643697db4679869d1e0d1c6d7521"><enum>(1)</enum><text>the sum of the
regular tax liability (as defined in section 26(b)) plus the tax imposed by
section 55, over,</text>
</paragraph><paragraph id="ID911873a95cfe4b8bb3987fd2e3b51a1a"><enum>(2)</enum><text>the sum of the
credits allowable under this part (other than subpart C, section 1400N(l), and
this section).</text>
</paragraph></subsection><subsection id="IDf6c6ca88058a49c2afa6e129d69626fd"><enum>(d)</enum><header>Water
conservation, reuse and efficiency bond</header><text>For purposes of this
section—</text>
<paragraph id="IDc00533ace8da4a6eaaee78067f045cd8"><enum>(1)</enum><header>In
general</header><text>The term <term>water conservation, reuse and efficiency
bond</term> means any bond issued as part of an issue if—</text>
<subparagraph id="IDffc48701f05d4fee9260cd793f79ccbb"><enum>(A)</enum><text>the bond is
issued by a qualified issuer pursuant to an allocation by the Secretary to such
issuer of a portion of the national water conservation, reuse and efficiency
bond limitation under subsection (f)(2),</text>
</subparagraph><subparagraph id="IDecd5d5ee81a64099ac90ce37067d5086"><enum>(B)</enum><text>95 percent or
more of the proceeds of such issue are to be used for capital expenditures
incurred by qualified borrowers for 1 or more qualified projects,</text>
</subparagraph><subparagraph id="IDe5ae1faa39974372a0a25ddc77b50039"><enum>(C)</enum><text>the qualified
issuer designates such bond for purposes of this section and the bond is in
registered form, and</text>
</subparagraph><subparagraph id="ID1cfdb79a2f4f499eb192afd2627a2257"><enum>(D)</enum><text>the issue meets
the requirements of subsection (h).</text>
</subparagraph></paragraph><paragraph id="IDbba1d6c5f8104c91a12213d3f5c48cac"><enum>(2)</enum><header>Qualified
project; special use rules</header>
<subparagraph id="IDc04a6ec3c9c64e1cb073db5d06a4542b"><enum>(A)</enum><header>In
general</header><text>The term <term>qualified project</term> means any rural
water supply project (as defined in section 102(9) of the Rural Water Supply
Act of 2006), owned by a qualified borrower, and which may include preparation
and implementation of water conservation plans, development and deployment of
water efficient products and processes, and xeriscaping projects consistent
with that section.</text>
</subparagraph><subparagraph id="ID5e321ec79a58488ab9720d79bdbaa1ad"><enum>(B)</enum><header>Refinancing
rules</header><text>For purposes of paragraph (1)(B), a qualified project may
be refinanced with proceeds of a water conservation, reuse and efficiency bond
only if the indebtedness being refinanced (including any obligation directly or
indirectly refinanced by such indebtedness) was originally incurred by a
qualified borrower after the date of the enactment of this section.</text>
</subparagraph><subparagraph id="ID1285a722bf704a0988cf23e21917cff1"><enum>(C)</enum><header>Reimbursement</header><text>For
purposes of paragraph (1)(B), a water conservation, reuse and efficiency bond
may be issued to reimburse a qualified borrower for amounts paid after the date
of the enactment of this section with respect to a qualified project, but only
if—</text>
<clause id="ID6004256f4c2d487d9917ed0d7f9f67a3"><enum>(i)</enum><text>prior to the
payment of the original expenditure, the qualified borrower declared its intent
to reimburse such expenditure with the proceeds of a water conservation, reuse
and efficiency bond,</text>
</clause><clause id="ID348106492cb14ad692837de60a4e9502"><enum>(ii)</enum><text>not later than
60 days after payment of the original expenditure, the qualified issuer adopts
an official intent to reimburse the original expenditure with such proceeds,
and</text>
</clause><clause id="IDd057b6e33dbc40e6b4dc5b235bc2e50a"><enum>(iii)</enum><text>the
reimbursement is made not later than 18 months after the date the original
expenditure is paid.</text>
</clause></subparagraph><subparagraph id="ID7adce885c748456c92dd51550758f876"><enum>(D)</enum><header>Treatment of
changes in use</header><text>For purposes of paragraph (1)(B), the proceeds of
an issue shall not be treated as used for a qualified project to the extent
that a qualified borrower or qualified issuer takes any action within its
control which causes such proceeds not to be used for a qualified project. The
Secretary shall prescribe regulations specifying remedial actions that may be
taken (including conditions to taking such remedial actions) to prevent an
action described in the preceding sentence from causing a bond to fail to be a
water conservation, reuse and efficiency bond.</text>
</subparagraph></paragraph></subsection><subsection id="IDea287095b5fe40a5854a3c42c480c75c"><enum>(e)</enum><header>Maturity
limitations</header>
<paragraph id="ID5211e209a846498b9a44e7bc569624cc"><enum>(1)</enum><header>Duration of
term</header><text>A bond shall not be treated as a water conservation, reuse
and efficiency bond if the maturity of such bond exceeds the maximum term
determined by the Secretary under paragraph (2) with respect to such
bond.</text>
</paragraph><paragraph id="IDfb65635402714bc4a1aa56ae302029f2"><enum>(2)</enum><header>Maximum
term</header><text>During each calendar month, the Secretary shall determine
the maximum term permitted under this paragraph for bonds issued during the
following calendar month. Such maximum term shall be the term which the
Secretary estimates will result in the present value of the obligation to repay
the principal on the bond being equal to 50 percent of the face amount of such
bond. Such present value shall be determined without regard to the requirements
of subsection (l)(6) and using as a discount rate the average annual interest
rate of tax-exempt obligations having a term of 10 years or more which are
issued during the month. If the term as so determined is not a multiple of a
whole year, such term shall be rounded to the next highest whole year.</text>
</paragraph></subsection><subsection id="ID22bd38ae76b54ac3aca2c6ea8e0ea384"><enum>(f)</enum><header>Limitation on
amount of bonds designated</header>
<paragraph id="IDb9a3d0d0c0c949269841645b757a678e"><enum>(1)</enum><header>National
limitation</header><text>There is a national water conservation, reuse and
efficiency bond limitation of $500,000,000 for each of the 10 calendar years
beginning after the date of enactment of this section.</text>
</paragraph><paragraph id="ID8148eb9cbfc7442e892763050b3fbcb0"><enum>(2)</enum><header>Allocation by
secretary</header><text>The Secretary shall allocate the amount described in
paragraph (1) among qualified projects in such manner as the Secretary
determines appropriate, except that the Secretary shall allocate the bond
limitation for the financing of qualified projects in as geographically diverse
a manner as practicable.</text>
</paragraph></subsection><subsection id="ID52068ba39f744413832002f05ed7e005"><enum>(g)</enum><header>Credit included
in gross income</header><text>Gross income includes the amount of the credit
allowed to the taxpayer under this section (determined without regard to
subsection (c)), and the amount so included shall be treated as interest
income.</text>
</subsection><subsection id="IDa64e567994d145bca501fd1c9aec3a30"><enum>(h)</enum><header>Special rules
relating to expenditures</header>
<paragraph id="ID4f91e1a6556a4d0b811e5e0359f21d63"><enum>(1)</enum><header>In
general</header><text>An issue shall be treated as meeting the requirements of
this subsection if, as of the date of issuance, the qualified issuer reasonably
expects—</text>
<subparagraph id="IDa28e85b786c149d5a38cd0e28e8c6b43"><enum>(A)</enum><text>at least 95
percent of the proceeds of such issue are to be spent for 1 or more qualified
projects within the 5-year period beginning on the date of issuance of the
water conservation, reuse and efficiency bond,</text>
</subparagraph><subparagraph id="IDa1f587df6f6b42b68e7238324e7c39b3"><enum>(B)</enum><text>a binding
commitment with a 3rd party to spend at least 10 percent of the proceeds of
such issue will be incurred within the 6-month period beginning on the date of
issuance of the water conservation, reuse and efficiency bond or, in the case
of a water conservation, reuse and efficiency bond the proceeds of which are to
be loaned to 2 or more qualified borrowers, such binding commitment will be
incurred within the 6-month period beginning on the date of the loan of such
proceeds to a qualified borrower, and</text>
</subparagraph><subparagraph id="IDf61283ebf1b54bbe8a33f6b3c2ccb8e3"><enum>(C)</enum><text>such projects
will be completed with due diligence and the proceeds of such issue will be
spent with due diligence.</text>
</subparagraph></paragraph><paragraph id="ID74058304921e46a5ad5e780927a76b38"><enum>(2)</enum><header>Extension of
period</header><text>Upon submission of a request prior to the expiration of
the period described in paragraph (1)(A), the Secretary may extend such period
if the qualified issuer establishes that the failure to satisfy the 5-year
requirement is due to reasonable cause and the related projects will continue
to proceed with due diligence.</text>
</paragraph><paragraph id="ID095d5248905945c7b3637415677e3361"><enum>(3)</enum><header>Failure to
spend required amount of bond proceeds within 5 years</header><text>To the
extent that less than 95 percent of the proceeds of such issue are expended by
the close of the 5-year period beginning on the date of issuance (or if an
extension has been obtained under paragraph (2), by the close of the extended
period), the qualified issuer shall redeem all of the nonqualified bonds within
90 days after the end of such period. For purposes of this paragraph, the
amount of the nonqualified bonds required to be redeemed shall be determined in
the same manner as under section 142.</text>
</paragraph></subsection><subsection id="IDca0ea4e3fd7140e3b61222378358d863"><enum>(i)</enum><header>Special rules
relating to arbitrage</header><text>A bond which is part of an issue shall not
be treated as a water conservation, reuse and efficiency bond unless, with
respect to the issue of which the bond is a part, the qualified issuer
satisfies the arbitrage requirements of section 148 with respect to proceeds of
the issue.</text>
</subsection><subsection id="IDf3569e6c9f664b0d8d40f3d306d1c831"><enum>(j)</enum><header>Municipal water
district; qualified water systems tax credit bond lender; governmental body;
qualified borrower</header><text>For purposes of this section—</text>
<paragraph id="IDf0d12169eb1f4c7bb1a69434d0a08af6"><enum>(1)</enum><header>Municipal water
district</header><text>The term <term>municipal water district</term> shall
mean a non-profit private or public entity operated for the purpose of
implementing rural water supply projects (as defined in section 102(9) of the
Rural Water Supply Act of 2006).</text>
</paragraph><paragraph id="IDd99ecd4d151b42a7ad80feefd6feaf17"><enum>(2)</enum><header>Qualified water
systems bond lender</header><text>The term <term>qualified water systems bond
lender</term> means a lender which is a municipal water district or a public
water system which is owned by a governmental body, and shall include any
affiliated entity which is controlled by such lender.</text>
</paragraph><paragraph id="ID4edee21e583349a693c5c1e7890c9846"><enum>(3)</enum><header>Governmental
body</header><text>The term <term>governmental body</term> means any State,
territory, or possession of the United States, the District of Columbia, Indian
tribal government, and any political subdivision thereof.</text>
</paragraph><paragraph id="IDa403e6dfdc644bc2910a231605a7ee92"><enum>(4)</enum><header>Qualified
issuer</header><text>The term <term>qualified issuer</term> means—</text>
<subparagraph id="ID128c76a23c544b05a2a720e66fc710ed"><enum>(A)</enum><text>a qualified water
systems bond lender,</text>
</subparagraph><subparagraph id="IDb1e6e31252674b9dba4cef39c7f81085"><enum>(B)</enum><text>a municipal water
district, or</text>
</subparagraph><subparagraph id="IDa61ee39d5a5f447384ea87bbf63b419c"><enum>(C)</enum><text>a governmental
body.</text>
</subparagraph></paragraph><paragraph id="IDe8b4c48e1fc6416492ece5bfc92c60dc"><enum>(5)</enum><header>Qualified
borrower</header><text>The term <term>qualified borrower</term> means—</text>
<subparagraph id="ID0bf5b4c3cb974e56a2c0e50bd0a4b81e"><enum>(A)</enum><text>a municipal water
district, or</text>
</subparagraph><subparagraph id="ID7b970f539a1f423896371b07227782db"><enum>(B)</enum><text>a governmental
body.</text>
</subparagraph></paragraph></subsection><subsection id="ID1a2a3f412c334189bd4cd9047b7e504b"><enum>(k)</enum><header>Special rules
relating to pool bonds</header><text>No portion of a pooled financing bond may
be allocable to any loan unless the borrower has entered into a written loan
commitment for such portion prior to the issue date of such issue.</text>
</subsection><subsection id="ID0c4def0a2b9f41a0967182456be72909"><enum>(l)</enum><header>Other
definitions and special rules</header><text>For purposes of this
section—</text>
<paragraph id="ID2e8c40172cf54c88b18bcbee3cc9d0a6"><enum>(1)</enum><header>Bond</header><text>The
term <term>bond</term> includes any obligation.</text>
</paragraph><paragraph id="ID62f8591faaee4e6e820ac80487e9f4fe"><enum>(2)</enum><header>Pooled
financing bond</header><text>The term <term>pooled financing bond</term> shall
have the meaning given such term by section 149(f)(4)(A).</text>
</paragraph><paragraph id="IDfc3fb5775ca7402690c319a79847455e"><enum>(3)</enum><header>Partnership; S
corporation; and other pass-thru entities</header>
<subparagraph id="ID3920f9a25f3e4dd3823996fde01af644"><enum>(A)</enum><header>In
general</header><text>Under regulations prescribed by the Secretary, in the
case of a partnership, trusts corporation, or other pass-thru entity, rules
similar to the rules of section 41(g) shall apply with respect to the credit
allowable under subsection (a).</text>
</subparagraph><subparagraph id="ID9c443a805e40406f9645304f40e780bc"><enum>(B)</enum><header>No basis
adjustment</header><text>In the case of a bond held by a partnership or and
corporation, rules similar to the rules under section 1397E(i) shall
apply.</text>
</subparagraph></paragraph><paragraph id="ID2bc8f973b7b34519940d5e7e2355e870"><enum>(4)</enum><header>Bonds held by
regulated investment companies</header><text>If any water conservation, reuse
and efficiency bond is held by a regulated investment company, the credit
determined under subsection (a) shall be allowed to shareholders of such
company under procedures prescribed by the Secretary.</text>
</paragraph><paragraph id="ID6a5006cee34845c384587aff7b8d0425"><enum>(5)</enum><header>Ratable
principal amortization required</header><text>A bond shall not be treated as a
water conservation, reuse and efficiency bond unless it is part of an issue
which provides for an equal amount of principal to be paid by the qualified
issuer during each calendar year that the issue is outstanding.</text>
</paragraph><paragraph id="ID6406d9b933564608a17d53d6ed60a661"><enum>(6)</enum><header>Reporting</header><text>Issuers
of water conservation, reuse and efficiency bonds shall submit reports similar
to the reports required under section 149(e).</text>
</paragraph></subsection><subsection id="ID9d7c090d1fe24fd790e03c5937320d5a"><enum>(m)</enum><header>Termination</header><text>This
section shall not apply with respect to any bond issued after the tenth
calendar year beginning after the date of the enactment of this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id9F2A34A7DFDE4D398A53FD8080B5698A"><enum>(b)</enum><header>Reporting</header><text>Subsection
(d) of section 6049 (relating to returns regarding payments of interest) is
amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id2B4BD16F06CA46D68FBA359218A76A53" style="OLC">
<paragraph id="ID0a462e7d571348f2bf8db03750a8c866"><enum>(9)</enum><header>Reporting of
credit on water conservation, reuse and efficiency bonds</header>
<subparagraph id="ID2a422bfbb5da47ef9b28e47430b995cc"><enum>(A)</enum><header>In
general</header><text>For purposes of subsection (a), the term
<term>interest</term> includes amounts includible in gross income under section
54A(g) and such amounts shall be treated as paid on the credit allowance date
(as defined in section 54A(b)(4)).</text>
</subparagraph><subparagraph id="ID9699d004264b4eb7b2ab05afa1eff11e"><enum>(B)</enum><header>Reporting to
corporations, etc</header><text>Except as otherwise provided in regulations, in
the case of any interest described in subparagraph (A), subsection (b)(4) shall
be applied without regard to subparagraphs (A), (H), (I), (J), (K), and (L)(i)
of such subsection.</text>
</subparagraph><subparagraph id="IDf3342556f9854eb69bc878f4313bd55a"><enum>(C)</enum><header>Regulatory
authority</header><text>The Secretary may prescribe such regulations as are
necessary or appropriate to carry out the purposes of this paragraph, including
regulations which require more frequent or more detailed
reporting.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDcdc486cde60641d78f75a38cc4b6d5c6"><enum>(c)</enum><header>Conforming
amendment</header><text>The table of sections for subpart H of part IV of
subchapter A of chapter 1 is amended by adding at the end the following new
item:</text>
<quoted-block display-inline="no-display-inline" id="id67D92FF110584EADBD33AE5C6ACBE399" style="OLC">
<toc>
<toc-entry bold="off" level="section">Sec. 54A. Credit to holders of
water conservation, reuse and efficiency
bonds.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDabc9c1d6005246008680d17535a52aaf"><enum>(d)</enum><header>Issuance of
regulations</header><text>The Secretary of the Treasury shall issue regulations
required under section 54A (as added by this section) not later than 120 days
after the date of the enactment of this Act.</text>
</subsection><subsection id="ID62e31eeaa9d249c4baf76020aaabb12f"><enum>(e)</enum><header>Report on use
of bond authority</header><text>On April 1, 2008, and annually thereafter, the
Secretary of Treasury shall submit a report to Congress including the number of
applications for bonding authority received, granted and identifying the
purposes and expected effects of projects supported by the bonding authority in
the previous calendar year.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDdafa4c5415a448229d67d0dfdb15b447"><enum>(f)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to bonds
issued after December 31, 2007.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id7986D555E79D4F148725B69AFA39F5DF"><enum>104.</enum><header>Credit for
geothermal exploration expenditures</header>
<subsection id="id5B12527A978B4618A10758CB41623969"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subpart D of part IV
of subchapter A of chapter 1 (relating to business related credits) is amended
by adding at the end the following new section:</text>
<quoted-block display-inline="no-display-inline" id="idA75E540D79C3414D8929BC655A04DBA2" style="OLC">
<section id="id146786FB980044AE9F05D1F99CFCC1B5"><enum>45O.</enum><header>Credit for
geothermal exploration expenditures</header>
<subsection id="id6E135DADF30D442BAE7AC642D44C37A1"><enum>(a)</enum><header>In
general</header><text>For purposes of section 38, the geothermal exploration
expenditures credit for any taxable year is an amount equal to 10 percent of
the qualifying geothermal exploration expenditures paid or incurred by the
taxpayer during such taxable year.</text>
</subsection><subsection id="id0F4B9E9D0AFC4E86A14F81096751290C"><enum>(b)</enum><header>Qualifying
geothermal exploration expenditures</header><text>For purposes of this
section—</text>
<paragraph id="id7972AD0B452E4E1CB5CD1964A8053048"><enum>(1)</enum><header>In
general</header><text>The term <term>qualifying geothermal exploration
expenditures</term> means expenditures for drilling exploratory wells for
geothermal deposits (as defined by section 613(e)(2)).</text>
</paragraph><paragraph id="idEB3BEDB99B534212A63986EE4564612E"><enum>(2)</enum><header>Exception</header><text>Such
term shall not include expenditures for any equipment used to produce,
distribute, or use energy derived from a geothermal deposit (as so defined) for
which a credit is allowable under section 46 by reason of section 48.</text>
</paragraph></subsection><subsection id="idC6B9FAEA9B6842C5B6027AE3919ECCE3"><enum>(c)</enum><header>Special
rules</header>
<paragraph id="id643C8DF590FC4A9B8D4C2871381C3E8D"><enum>(1)</enum><header>Basis
reduction</header><text>For purposes of this subtitle, the basis of any
property for which a credit is allowed under this section shall be reduced by
the amount of the credit so allowed.</text>
</paragraph><paragraph id="id5A34E42A5103461BA93A437BCECCF97E"><enum>(2)</enum><header>Denial of
double benefit</header><text>No deduction or credit (other than under section
45) shall be allowed under this subtitle with respect to any expenditures for
which a credit is allowed under this
section.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id90F1DEE10A7A403F96B7670F14A8C879"><enum>(b)</enum><header>Credit made
part of general business credit</header><text>Section 38(b) (relating to
current year business credit) is amended by striking <quote>plus</quote> at the
end of paragraph (30), by striking the period at the end of paragraph (31) and
inserting <quote>, plus</quote>, and by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id91F1907492E2439789803C237B2B4EF5" style="OLC">
<paragraph id="idDF29D7F8A9B74E37946C1A899AE71BB2"><enum>(32)</enum><text>the geothermal
exploration expenditures credit determined under section
45O(a).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idF8E47DF7F03E4DE985EA95DD5EC98CF2"><enum>(c)</enum><header>Clerical
amendment</header><text>The table of sections for subpart D of part IV of
subchapter A of chapter 1 is amended by inserting after the item relating to
section 45N the following new item:</text>
<quoted-block id="id1aa7cb1c-573e-47b5-95db-030344f4f102" style="OLC">
<toc>
<toc-entry idref="id146786FB980044AE9F05D1F99CFCC1B5" level="section">Sec. 45O. Credit for geothermal exploration
expenditures.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id2A86628E2531423D9E59252D59D1E6ED"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
expenditures made in taxable years beginning after the date of the enactment of
this Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="idDFBD29B607CB4B3181746BCE7769E49E"><enum>105.</enum><header>Credit for
wind energy systems</header>
<subsection commented="no" display-inline="no-display-inline" id="id5FAE91CFE2234A2FBCC81F225B9B5BD1"><enum>(a)</enum><header>Residential</header>
<paragraph commented="no" id="id21450E937AA14015AA25668D089AF303"><enum>(1)</enum><header>In
general</header><text>Section 25D(a) is amended by striking <quote>and</quote>
at the end of paragraph (2), by striking the period at the end of paragraph (3)
and inserting <quote>, and</quote>, and by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id3ADC5E227FF64F4AA0A2872FA55001DF" style="OLC">
<paragraph id="ID8DBD7D39F8A748CEA7CA80002FE00227"><enum>(4)</enum><text>30 percent of the
qualified small wind energy property expenditures made by the taxpayer during
such
year.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="id3242E10E655644D5B375F5EDBBD17845"><enum>(2)</enum><header>Limitation</header><text>Section
25D(b)(1) is amended by striking <quote>and</quote> at the end of subparagraph
(B), by striking the period at the end of subparagraph (A) and inserting
<quote>, and</quote>, and by adding at the end the following new
subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="idA25E0768FB4340E0985B99ABDBF4E40F" style="OLC">
<subparagraph id="IDBC92D61F1E094A329F91D4A7FD405514"><enum>(D)</enum><text>$500 with respect
to each half kilowatt of capacity (not to exceed $5,000) of qualifying wind
turbines for which qualified small wind energy property expenditures are
made.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="id9AC700099CE547C9972F594BC4AD80E3"><enum>(3)</enum><header>Qualified small
wind energy property expenditures</header><text>Section 25D(d) is amended by
adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id267F5E128A184510A8826BAC5415AB1F" style="OLC">
<paragraph id="ID2FF5E9F734AF414AA5A1D4F2C0C042B9"><enum>(4)</enum><header>Qualified small
wind energy property expenditure</header>
<subparagraph id="idFB910476C2B64B3F8B54913D01F9D797"><enum>(A)</enum><header>In
general</header><text>The term <term>qualified wind energy property
expenditure</term> means an expenditure for property which uses a qualifying
wind turbine to generate electricity for use in connection with a dwelling unit
located in the United States and used as a residence by the taxpayer.</text>
</subparagraph><subparagraph id="IDcf6a282707324183aeaafe563541939c"><enum>(B)</enum><header>Qualifying wind
turbine</header><text>The term <term>qualifying wind turbine</term> means a
wind turbine of 100 kilowatts of rated capacity or less which meets the latest
performance rating standards published by the American Wind Energy Association
and which is used to generate electricity and carries at least a 5-year limited
warranty covering defects in design, material, or workmanship, and, for
property that is not installed by the taxpayer, at least a 5-year limited
warranty covering defects in
installation.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="idEFC710EF691B4C469F5ECFADA226D294"><enum>(b)</enum><header>Business</header><text>Section
48(a)(3)(A) (defining energy property) is amended by striking <quote>or</quote>
at the end of clause (iii), by adding <quote>or</quote> at the end of clause
(iv), and by inserting after clause (iv) the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="idE52E1EFACB414EC89DC92B45390C56FC" style="OLC">
<clause commented="no" id="id9E68BC35102540FAB79D24194F9CBED0"><enum>(v)</enum><text>qualifying wind
turbine (as defined in section
25D(d)(B)),</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID6667780435C94DAE88DAB258012B90C9"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to property
placed in service after the date of the enactment of this Act, in taxable years
ending after such date.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id9860A7D10FE94D0AA8CD65F07C2C2C75"><enum>106.</enum><header>Extension and
modification of new energy efficient home credit</header>
<subsection commented="no" display-inline="no-display-inline" id="id7247697FF5C6434AB3B1C4EF9E9DFD7F"><enum>(a)</enum><header>Extension</header><text>Subsection
(g) of section 45L (relating to termination) is amended by striking
<quote>2008</quote> and inserting <quote>2013</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idE1B87212A6304045A2BEB2ED784BB12E"><enum>(b)</enum><header>Increase of
credit</header><text>Paragraph (2) of subsection 45L(a) (relating to applicable
amount) is amended to read as follows:</text>
<quoted-block act-name="" id="id2D7EA3A84CE54D169ED70AC3856500B3" style="OLC">
<paragraph id="id4E9D0052E4A042B1BA21EDCBB95783C2"><enum>(2)</enum><header>Applicable
amount</header><text>For purposes of paragraph (1), the applicable amount is an
amount equal to, in the case of a dwelling unit described in—</text>
<subparagraph id="id6D0FAC2D396E44C6A522C740B17C1092"><enum>(A)</enum><text>subsection
(c)(1), $4,000,</text>
</subparagraph><subparagraph id="idFE582F931BD64869A6451156C1FA80B2"><enum>(B)</enum><text>subsection
(c)(2), $2,000, and</text>
</subparagraph><subparagraph id="id86D20304543F439D9FC41AE4ACAEBCDA"><enum>(C)</enum><text>subsection
(c)(3),
$1,000.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id5619CE30B3D844D3ADD91CF5249E68A2"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to qualified
new energy efficient homes acquired after the date of the enactment of this
Act, in taxable years ending after such date.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id935072D1AAA64627A92F72C069F5F3B6"><enum>107.</enum><header>Investment tax
credit for advanced battery production</header>
<subsection commented="no" display-inline="no-display-inline" id="id8560384F603F473EBDE9C6BECCAEECCD"><enum>(a)</enum><header>In
general</header><text>Section 48(a)(3)(A) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id5145F3CE987B4CC3B32C191FE864C324"><enum>(1)</enum><text>by striking
<quote>or</quote> at the end of clause (iii),</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idCD82A49409E2446E8F4DB3C1DDB7ED0B"><enum>(2)</enum><text>by inserting
<quote>or</quote> at the end of clause (iv), and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idCB819017C3FA42E3BB2FACF719274702"><enum>(3)</enum><text>by inserting
after clause (iv) the following new clause:</text>
<quoted-block act-name="" id="id606F10D6359247DD934D5D8706A36058" style="OLC">
<clause id="idDEDF9FAB6BF244AA9D5ACBA29E48076A"><enum>(v)</enum><text>equipment used to
produce at least 75 percent of any advanced battery and related power
electronics intended for use in—</text>
<subclause id="id462EBE0E730D411CB23FF815F2047C6E"><enum>(I)</enum><text>any qualified
electric vehicle (as defined in section 30(c)(1)(A)) or new qualified hybrid
motor vehicle (as defined in section 30B(d)(3)(A), without regard to clauses
(v) and (vi) thereof), or</text>
</subclause><subclause id="id9CCD5EF031F5467DA1D339F076863374"><enum>(II)</enum><text>any grid-enabled
or distributed residential or small commercial
application,</text>
</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id1C5FF4CAA0894964A32DA00F7CBB08C6"><enum>(b)</enum><header>Rate of energy
percentage</header><text>Section 48(a)(2)(A) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idF460FC1EB8A94D52B7DBD846DC3E0B79"><enum>(1)</enum><text>by striking
<quote>and</quote> at the end of clause (i)(III),</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id172AB86A14EA49C2B09752CAC150494C"><enum>(2)</enum><text>by striking
<quote>clause (i)</quote> in clause (ii) and inserting <quote>clause (i) or
clause (ii)</quote>,</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9F774C63E4D042C4A878C0C2D499B7C8"><enum>(3)</enum><text>by redesignating
clause (ii) as clause (iii), and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id16FEF5E97D5143059C4E3FFA85F2493E"><enum>(4)</enum><text>by inserting
after clause (i) the following new clause:</text>
<quoted-block act-name="" id="idAA36CA214AC94594ACEA4E3015E700E6" style="OLC">
<clause id="id446C593646DA496FAA3D21944587BB51"><enum>(ii)</enum><text>20 percent in
the case of energy property described in paragraph (3)(A)(v),
and</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id28317A8A801E4ED1921363578EB0DCE5"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to property
placed in service after the date of the enactment of this Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id9907A1EBA9B0462FA60E074BC5295EE4"><enum>108.</enum><header>Qualified
renewable school energy bonds</header>
<subsection commented="no" display-inline="no-display-inline" id="id43F8E3BADD8A41AEA30979CD3CC07B83"><enum>(a)</enum><header>In
general</header><text>Subchapter U of chapter 1 (relating to incentives for
education zones) is amended by redesignating section 1397F as section 1397G and
by adding at the end of part IV of such subchapter the following new
section:</text>
<quoted-block display-inline="no-display-inline" id="idC5D7BA946BD048B691E893BE0848D550" style="OLC">
<section id="idF08799BEB45D488881B97598C0941A53"><enum>1397F.</enum><header>Qualified
renewable school energy bonds</header>
<subsection id="id241E43D54A5343628C0EBC5A532751FC"><enum>(a)</enum><header>Allowance of
credit</header><text>If a taxpayer holds a qualified renewable school energy
bond on 1 or more credit allowance dates of the bond occurring during any
taxable year, there shall be allowed as a credit against the tax imposed by
this chapter for the taxable year an amount equal to the sum of the credits
determined under subsection (b) with respect to such dates.</text>
</subsection><subsection id="id8233CB192C2F469596913AA8C69647A1"><enum>(b)</enum><header>Amount of
credit</header>
<paragraph id="id739FC0A5D13A4909AFA0C721B7158F9A"><enum>(1)</enum><header>In
general</header><text>The amount of the credit determined under this subsection
with respect to any credit allowance date for a qualified renewable school
energy bond is 25 percent of the annual credit determined with respect to such
bond.</text>
</paragraph><paragraph id="idA5C29D6AEAF3403C80F0CDD20A6486DC"><enum>(2)</enum><header>Annual
credit</header><text>The annual credit determined with respect to any qualified
renewable school energy bond is the product of—</text>
<subparagraph id="id9474ECC8BF7B49EEADC234F9AF349B2C"><enum>(A)</enum><text>the credit rate
determined by the Secretary under paragraph (3) for the day on which such bond
was sold, multiplied by</text>
</subparagraph><subparagraph id="id69EF61747F9C458985259A7F06A1B754"><enum>(B)</enum><text>the outstanding
face amount of the bond.</text>
</subparagraph></paragraph><paragraph id="id69DBB62652CF486CB2110BCDC38C7CA2"><enum>(3)</enum><header>Determination</header><text>For
purposes of paragraph (2), with respect to any qualified renewable school
energy bond, the Secretary shall determine daily or cause to be determined
daily a credit rate which shall apply to the first day on which there is a
binding, written contract for the sale or exchange of the bond. The credit rate
for any day is the credit rate which the Secretary or the Secretary’s designee
estimates will permit the issuance of qualified renewable school energy bonds
with a specified maturity or redemption date without discount and without
interest cost to the qualified issuer.</text>
</paragraph><paragraph id="idD208BB52809F4C2ABB838C0D9094FC08"><enum>(4)</enum><header>Credit
allowance date</header><text>For purposes of this section, the term
<term>credit allowance date</term> means—</text>
<subparagraph id="idAC549699BFBF426A8E59ED1666967D84"><enum>(A)</enum><text>March 15,</text>
</subparagraph><subparagraph id="id4CC3D2EFA3204B7E8FF19F948E0E5CFF"><enum>(B)</enum><text>June 15,</text>
</subparagraph><subparagraph id="id0FE81527F1F34924BBE299102851EEB3"><enum>(C)</enum><text>September 15,
and</text>
</subparagraph><subparagraph id="idAC8B1C1865CC4027B5EEAE414B85F183"><enum>(D)</enum><text>December
15.</text>
</subparagraph><continuation-text continuation-text-level="paragraph">Such term
also includes the last day on which the bond is outstanding.</continuation-text></paragraph><paragraph id="id5A6F972C6EBB4080A0A561BB0F7ECFD3"><enum>(5)</enum><header>Special rule
for issuance and redemption</header><text>In the case of a bond which is issued
during the 3-month period ending on a credit allowance date, the amount of the
credit determined under this subsection with respect to such credit allowance
date shall be a ratable portion of the credit otherwise determined based on the
portion of the 3-month period during which the bond is outstanding. A similar
rule shall apply when the bond is redeemed or matures.</text>
</paragraph></subsection><subsection id="IDb5aa01a19e4942bea174d877d27ccce0"><enum>(c)</enum><header>Limitation
based on amount of tax</header><text>The credit allowed under subsection (a)
for any taxable year shall not exceed the excess of—</text>
<paragraph id="ID3f1f3c440776480b819b2fed4f4f3a4f"><enum>(1)</enum><text>the sum of the
regular tax liability (as defined in section 26(b)) plus the tax imposed by
section 55, over</text>
</paragraph><paragraph id="IDeb86bed0bc504a57b10aa44844f2cc20"><enum>(2)</enum><text>the sum of the
credits allowable under part IV of subchapter A (other than subpart C thereof,
relating to refundable credits, subpart H thereof, section 1400N(l), and this
section).</text>
</paragraph></subsection><subsection id="ID3815ced163e64aeb9cb8f5f215157f03"><enum>(d)</enum><header>Qualified
renewable school energy bond</header><text>For purposes of this section—</text>
<paragraph id="IDdcdd0d27a2ca4dc19b531a092b5f0d07"><enum>(1)</enum><header>In
general</header><text>The term <term>renewable school energy bond</term> means
any bond issued as part of an issue if—</text>
<subparagraph id="ID515a6b22c88f4634957fd68096d89c6b"><enum>(A)</enum><text>95 percent or
more of the proceeds of such issue are to be used for a qualified purpose with
respect to a qualified school operated by an eligible local education
agency,</text>
</subparagraph><subparagraph id="ID4f8db7c384a44091823e531d237718b1"><enum>(B)</enum><text>the bond is
issued by a State or local government of an eligible State within the
jurisdiction of which such school is located,</text>
</subparagraph><subparagraph id="IDd653702d16364444a50ed63cc1251dc5"><enum>(C)</enum><text>the
issuer—</text>
<clause id="ID8ab350e1c968465aa2caf6fe9ef6915d"><enum>(i)</enum><text>designates such
bond for purposes of this section, and</text>
</clause><clause id="IDf0fd5cc853bc4598b6c4c23d2cd0ba8b"><enum>(ii)</enum><text>certifies that
it has the written approval of the eligible local education agency for such
bond issuance, and</text>
</clause></subparagraph><subparagraph id="IDeee58aa5ee49472ab350d9b4ad6cfcc7"><enum>(D)</enum><text>the term of each
bond which is part of such issue is 20 years.</text>
</subparagraph></paragraph><paragraph id="IDe66e1907dd95461fa3b815a2ff63d2fb"><enum>(2)</enum><header>Qualified
school</header><text>The term <term>qualified school</term> means any public
school or public school system administrative building which is owned by or
operated by an eligible local education agency.</text>
</paragraph><paragraph id="ID5b13a50f80d44358ab3a6d15e99e4c06"><enum>(3)</enum><header>Eligible local
education agency</header><text>The term <term>eligible local education
agency</term> means any local educational agency as defined in section 9101 of
the Elementary and Secondary Education Act of 1965.</text>
</paragraph><paragraph id="id66AD39D1476F4BB19B210999012E154C"><enum>(4)</enum><header>Eligible
state</header><text>The term <term>eligible State</term> means, with respect to
any calendar year, any State described in one of the following:</text>
<subparagraph id="id16F54291AC244AB69BA1AC70615836A6"><enum>(A)</enum><text>The 5 States
within Region 4 of the United States Census with the greatest percentage
population growth change between 2000 and 2006 as determined under the
Cumulative Estimates of Population Change for the United States and States, and
for Puerto Rico—April 1, 2000 to July 1, 2006, by the Bureau of the
Census.</text>
</subparagraph><subparagraph id="idB36204DFD14B4DBBB9D193986D0CB44B"><enum>(B)</enum><text>The State with a
total percentage population growth change between 2000 and 2006 greater than
4.5 percent but less than 5.0 percent and a total population 19 years of age
and younger which is greater than 200,000 but less than 250,000 as determined
under such Cumulative Estimates and the 2005 American Community Survey by the
Bureau of the Census.</text>
</subparagraph></paragraph><paragraph id="ID687a879dcc9b40de9b0ebb7988cc2f96"><enum>(5)</enum><header>Qualified
purpose</header><text>The term <term>qualified purpose</term> means, with
respect to any qualified school, the purchase and installation of renewable
energy products.</text>
</paragraph></subsection><subsection id="ID18c60434b01a441bb7475010402980e4"><enum>(e)</enum><header>Limitation on
amount of bonds designated</header>
<paragraph id="ID7b90a85b64e241ec95015fbc918d58c8"><enum>(1)</enum><header>National
limitation</header><text>There is a national renewable school energy bond
limitation for each calendar year. Such limitation is $50,000,000 for 2008,
$100,000,000 for 2009, $150,000,000 for 2010, and, except as provided in
paragraph (4), zero thereafter.</text>
</paragraph><paragraph id="ID2a92b1fded434ca7a7c77d6bb2b2fe4a"><enum>(2)</enum><header>Allocation of
limitation</header><text>The national renewable school energy bond limitation
for a calendar year shall be allocated by the Secretary—</text>
<subparagraph id="id77597017AEB3406D99139C6FB908D3D7"><enum>(A)</enum><text>among the
eligible States described in subsection (d)(4)(A), 30 percent to the State with
the greatest percentage population growth, 20 percent to each of second and
third ranked States, and 10 percent to each of the fourth and fifth ranked
States, and</text>
</subparagraph><subparagraph id="idB65C16BFBC6540D0865E5C75FD957617"><enum>(B)</enum><text>to the State
described in subsection (d)(4)(B), 10 percent.</text>
</subparagraph><continuation-text continuation-text-level="paragraph">The
limitation amount allocated to an eligible State under the preceding sentence
shall be allocated by the State education agency to qualified schools within
such State.</continuation-text></paragraph><paragraph id="IDde57af573c0644a5ad52162e87ae6186"><enum>(3)</enum><header>Designation
subject to limitation amount</header><text>The maximum aggregate face amount of
bonds issued during any calendar year which may be designated under subsection
(d)(1) with respect to any qualified school shall not exceed the limitation
amount allocated to such school under paragraph (2) for such calendar
year.</text>
</paragraph><paragraph id="ID19c29f9338d147d4ba8264e3e0991c0e"><enum>(4)</enum><header>Carryover of
unused limitation</header><text>If for any calendar year—</text>
<subparagraph id="ID03ae304972c34421861e9d1546d180ee"><enum>(A)</enum><text>the limitation
amount for any eligible State, exceeds</text>
</subparagraph><subparagraph id="ID6861463c55e84bf58a2285946f611bd8"><enum>(B)</enum><text>the amount of
bonds issued during such year which are designated under subsection (d)(1) with
respect to qualified schools within such State,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">the
limitation amount for such State for the following calendar year shall be
increased by the amount of such excess. Any carryforward of a limitation amount
may be carried only to the first 2 years following the unused limitation year.
For purposes of the preceding sentence, a limitation amount shall be treated as
used on a first-in first-out basis.</continuation-text></paragraph></subsection><subsection id="ID03927f31e4874bb7b9a86db50f6ae3a8"><enum>(f)</enum><header>Other
definitions</header><text>For purposes of this section—</text>
<paragraph id="ID1ab7e379277e4276b247e01391cc7e67"><enum>(1)</enum><header>Bond</header><text>The
term <quote>bond</quote> includes any obligation.</text>
</paragraph><paragraph id="ID408b875cacc741e8850a9e15980b791c"><enum>(2)</enum><header>State</header><text>The
term <quote>State</quote> includes the District of Columbia and any possession
of the United States.</text>
</paragraph></subsection><subsection id="ID064a1242288c4b53a52df1b4296fccd5"><enum>(g)</enum><header>Credit included
in gross income</header><text>Gross income includes the amount of the credit
allowed to the taxpayer under this section (determined without regard to
subsection (c)).</text>
</subsection><subsection id="ID23e8b39121fa4bfd97271a5132f81844"><enum>(h)</enum><header>Credits may be
stripped</header><text>Under regulations prescribed by the Secretary—</text>
<paragraph id="ID7937d57805b1404da524f299b49429f8"><enum>(1)</enum><header>In
general</header><text>There may be a separation (including at issuance) of the
ownership of a qualified renewable school energy bond and the entitlement to
the credit under this section with respect to such bond. In case of any such
separation, the credit under this section shall be allowed to the person which,
on the credit allowance date, holds the instrument evidencing the entitlement
to the credit and not to the holder of the bond.</text>
</paragraph><paragraph id="IDb2a38e6bec964ed7882be4cb00bf2bbb"><enum>(2)</enum><header>Certain rules
to apply</header><text>In the case of a separation described in paragraph (1),
the rules of section 1286 shall apply to the qualified renewable school energy
bond as if it were a stripped bond and to the credit under this section as if
it were a stripped coupon.</text>
</paragraph></subsection><subsection id="ID9f1b52db566144feb52d84daccbd7660"><enum>(i)</enum><header>Credit treated
as nonrefundable bondholder credit</header><text>For purposes of this title,
the credit allowed by this section shall be treated as a credit allowable under
subpart H of part IV of subchapter A of this chapter.</text>
</subsection><subsection id="ID91f5d0063af647088c7b8d58dc031834"><enum>(j)</enum><header>Special
rules</header><text>For purposes of this section, rules similar to the rules
under paragraphs (3) and (4) of section 54(l) shall
apply.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idE38D5A0F73994650860AE9466EE8F1F8"><enum>(b)</enum><header>Conforming
amendments</header><text>The table of sections for part V of such subchapter is
amended by redesignating section 1397F as section 1397G and by adding at the
end of the table of sections for part IV of such subchapter the following new
item:</text>
<quoted-block display-inline="no-display-inline" id="id389985CD854147FE8F7CA40541059070" style="OLC">
<toc>
<toc-entry bold="off" level="section">Sec. 1397F. Credit for holders
of qualified renewable school energy
bonds.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id683BE6F54BCD4D9AA83D65A18676B74A"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to bonds
issued after December 31, 2007.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id89A6A20AD54643299CE43588556573A7"><enum>109.</enum><header>Treatment of
bonds issued to finance renewable energy resource facilities</header>
<subsection commented="no" display-inline="no-display-inline" id="idF54E7D1E94E644A2AF6C775B0D509119"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subsection (a) of
section 142 (relating to exempt facility bond) is amended—</text>
<paragraph id="ID197b94773c1f4f508d823981c133ec85"><enum>(1)</enum><text>by striking
<quote>or</quote> at the end of paragraph (14),</text>
</paragraph><paragraph id="IDf24c68602ee34b2d9e7f58852569102c"><enum>(2)</enum><text>by striking the
period at the end of paragraph (15) and inserting <quote>, or</quote>,
and</text>
</paragraph><paragraph id="IDeac78d8bcdc344f1a7599f2b7f23e55c"><enum>(3)</enum><text>by inserting at
the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="idC908AE766BCC4C8698A674D4787CAD61" style="OLC">
<paragraph id="ID9271ef75ac674fc7ac19277998546446"><enum>(16)</enum><text>renewable energy
resource
facilities.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID9c34742dc11645edb2a53e5751c69731"><enum>(b)</enum><header>Definition</header><text>Section
142 is amended by inserting at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="id2D5029C47E2E460B9227D3B74E23EDB1" style="OLC">
<subsection id="IDed3f1c6ba21e4fc28c8a5c72a4d2bc6c"><enum>(n)</enum><header>Renewable
energy resource facilities</header><text>For purposes of subsection
(a)(16)—</text>
<paragraph id="idCF8D765016A54FF0BEB3A6BD59D5EB7D"><enum>(1)</enum><header>In
general</header><text>The term <term>renewable energy resource facility</term>
means any facility used to produce electric or thermal energy (including a
distributed generation facility) from—</text>
<subparagraph id="id03F6C66F928E401FB1F7E783A39EFE82"><enum>(A)</enum><text>wind
energy,</text>
</subparagraph><subparagraph id="idBA275004E5214F938E2126BF401CF465"><enum>(B)</enum><text>closed-loop
biomass (within the meaning of section 45(c(2)),</text>
</subparagraph><subparagraph id="idDA0FD3DD2C4149EEBA2141CC414B071F"><enum>(C)</enum><text>open-loop biomass
(as defined in section 45(c)(3),</text>
</subparagraph><subparagraph id="idF0F4517C5C614D38AC5DD44FA73BE048"><enum>(D)</enum><text>geothermal energy
(as defined in section 45(c)(4),</text>
</subparagraph><subparagraph id="idD10DDF2D329D4A03AA17E8EF472D4700"><enum>(E)</enum><text>solar
energy,</text>
</subparagraph><subparagraph id="id30F128332E9A495191DB594A67F9AF02"><enum>(F)</enum><text>land fill gas
derived from the biodegradation of municipal solid waste (as defined in section
45(c)(6),</text>
</subparagraph><subparagraph id="id9DFF95DF67884BF9AF0321CD3ECEEE22"><enum>(G)</enum><text>incremental
hydropower production (as determined under section 45(c)(8)(B), or</text>
</subparagraph><subparagraph id="idAF8FBCAB04BC4BE2BCA490111ACBD14E"><enum>(H)</enum><text>ocean
energy.</text>
</subparagraph></paragraph><paragraph id="idF6C24F800F6C457293A1B159B4A75F55"><enum>(2)</enum><header>Ocean
energy</header><text>The term <term>ocean energy</term> includes current, wave,
tidal, and thermal
energy.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID9e9a5e64b9794aef9da5d0c780a7bf63"><enum>(c)</enum><header>Coordination
with section 45</header><text>Section 45(b)(3) is amended by adding at the end
the following new sentence: <quote>For purposes of this paragraph, proceeds of
an issue used to provide financing for any qualified facility by reason of
section 142(a)(16) shall not be taken into account under subparagraph
(A)(ii).</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID299725336ac442c8b0fc4888b8940944"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply with respect
to bonds issued on or after the date of the enactment of this Act.</text>
</subsection></section><enum>II</enum><header>Investment tax
credit with respect to solar energy property and manufacturing</header>
<subtitle id="id3828BE6EE3A84C1B980B099A919E0AB5"><enum>A</enum><header>Solar energy
property</header>
<section id="id863F293980FD4F1297FD9A2C4841B406"><enum>201.</enum><header>Energy credit
with respect to solar energy property</header>
<subsection id="ID8073ec442b21492ba42d3aad44426be3"><enum>(a)</enum><header>Permanent
extension of credit for solar energy property</header><text>Paragraphs
(2)(A)(i)(II) and (3)(A)(ii) of section 48(a) (relating to the energy credit)
are each amended by striking <quote>but only with respect to periods ending
before January 1, 2009</quote>.</text>
</subsection><subsection id="IDf768582249d74590b23ef894905d8dd0"><enum>(b)</enum><header>Energy property
To include excess energy storage device</header><text>Clause (i) of section
48(a)(3)(A) (relating to energy property) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idD67348E7FDCE4FACABF5BB294D25CD0F" style="OLC">
<clause id="IDcfd45c48f6924ccea7bc252e03f189c6"><enum>(i)</enum><text>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,</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID326bf4f2f5744f39b1ec4bdc7244bbd1"><enum>(c)</enum><header>Additional
modifications</header>
<paragraph id="ID1e092f1715d74de0be3798f1e81ccb22"><enum>(1)</enum><header>Solar electric
energy property credit determined solely by kilowatt capacity</header>
<subparagraph id="ID425096636f16479cb8c0929febbe34b7"><enum>(A)</enum><header>In
general</header><text>Subsection (a) of section 48 (relating to the energy
credit) is amended by redesignating paragraph (4) as paragraph (5) and by
inserting after paragraph (3) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id4AA83AE22C8B4848AF04E6E90012CE2D" style="OLC">
<paragraph id="ID45fd789353204cbbb8b905e9eb93da6f"><enum>(4)</enum><header>Special rule
for energy credit for solar electric energy property</header>
<subparagraph id="IDe552c94311b24b2d8101eaccd34b5dee"><enum>(A)</enum><header>In
general</header><text>For purposes of section 46, the energy credit for any
taxable year for solar electric 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 direct
current of installed capacity of such property. Paragraph (2)(A) shall not
apply to property to which the preceding sentence applies.</text>
</subparagraph><subparagraph id="ID526d9562222944c994573f58a73313bb"><enum>(B)</enum><header>Application of
special rules for rehabilitated or subsidized property</header><text>Rules
similar to the rules of paragraphs (2)(B) and (5) shall apply to property to
which this paragraph
applies.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="id1FEE0ABA0F654866B075EF01718DCA49"><enum>(B)</enum><header>Conforming
amendments</header><text>Subsection (a) of section 48 is amended—</text>
<clause id="idE007018D30404D6D9AB1F06597CA4FC3"><enum>(i)</enum><text>in
paragraph (1), by inserting <quote>in paragraph (4) and</quote> after
<quote>except as provided</quote>, and</text>
</clause><clause id="id510EA0DE0A404972ADABD2450CDA680C"><enum>(ii)</enum><text>in
paragraph (2)(A)(i)(II), by striking <quote>described in paragraph
(3)(A)(i)</quote> and inserting <quote>which is described in paragraph
(3)(A)(i) and to which paragraph (4) does not apply</quote>.</text>
</clause></subparagraph></paragraph></subsection><subsection id="ID55a9f1b7caa644269d30e92acb310fc2"><enum>(d)</enum><header>Credit allowed
against the alternative minimum tax</header><text>Section 38(c)(4)(B) (relating
to specified credits) is amended by—</text>
<paragraph id="idBEA20C7B65F94DCB86DBDD3C793002AF"><enum>(1)</enum><text>striking
<quote>and</quote> at the end of clause (i),</text>
</paragraph><paragraph id="idA32BC5EEC1B04055B9783D025C4DDEA4"><enum>(2)</enum><text>striking the
period at the end of clause (ii)(II) and inserting <quote>, and</quote>,
and</text>
</paragraph><paragraph id="idEDC67BF23E3C4D3F958AB2639C8C650D"><enum>(3)</enum><text>adding at the end
the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="idD20B80E5A9E74E85B7DC87DF102B8035" style="OLC">
<clause id="ID4ceb6b14d6e44befbdd0095482e63800"><enum>(iii)</enum><text>the portion of
the investment credit under section 46(2) which is determined under clauses (i)
and (ii) of section
48(a)(3)(A).</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="idF207EDE762984EEA841BE23AD4307572"><enum>(e)</enum><header>Effective
date</header><text>The amendment made by subsection (a) shall apply to periods
after December 31, 2007, in taxable years beginning after such date, under
rules similar to the rules of section 48(m) (as in effect on the day before the
date of the enactment of the Revenue Reconciliation Act of 1990).</text>
</subsection></section><section id="id02C2767834B543A89679CCA6B481F733"><enum>202.</enum><header>Repeal of
exclusion for solar and geothermal public utility property under energy
credit</header>
<subsection id="idD0099B192FE34A55AACC756FB1639D3E"><enum>(a)</enum><header>In
general</header><text>The second sentence of section 48(a)(3) is amended by
inserting <quote>(other than property described in clause (i) or (iii) of
subparagraph (A))</quote> after <quote>any property</quote>.</text>
</subsection><subsection id="id097B0AC207804A0FA689B108518D0D52"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by subsection (a) shall apply to periods
after December 31, 2007, in taxable years beginning after such date, under
rules similar to the rules of section 48(m) (as in effect on the day before the
date of the enactment of the Revenue Reconciliation Act of 1990).</text>
</subsection></section><section id="idF088C591B2EB46E199C038DA6F0C5AE0"><enum>203.</enum><header>Permanent
extension and modification of credit for residential energy efficient
property</header>
<subsection id="ID8adf70f4d90747e59702eb66d5a5bdfe"><enum>(a)</enum><header>Permanent
extension</header><text>Section 25D is amended by striking subsection (g)
(relating to termination).</text>
</subsection><subsection id="ID8c58237864a4449f9862cc8dd4d1a997"><enum>(b)</enum><header>Solar electric
property</header><text>Paragraph (1) of section 25D(a) (relating to allowance
of credit) is amended by striking <quote>30 percent of</quote>.</text>
</subsection><subsection id="ID2eddcf4b4f5641e58f2d358111cbf392"><enum>(c)</enum><header>Modification of
maximum credit</header><text>Paragraph (1) of section 25D(b) (relating to
limitations) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id6DA58BEFB4B148D184A869221EB81E5A" style="OLC">
<paragraph id="IDa9746f1f15324fe8853bdff3cbe7d520"><enum>(1)</enum><header>Maximum
credit</header><text>The credit allowed under subsection (a) (determined
without regard to subsection (c)) for any taxable year shall not exceed—</text>
<subparagraph id="IDb8cab71880fa4eafa2e8b50a984273dd"><enum>(A)</enum><text>$1,500 with
respect to each half kilowatt of direct current of installed capacity of
qualified solar electric property for which qualified solar electric property
expenditures are made,</text>
</subparagraph><subparagraph id="IDa5bd2ca7bbea4e5ab882431f3dfa8992"><enum>(B)</enum><text>$2,000 with
respect to any qualified solar heating and cooling property expenditures,
and</text>
</subparagraph><subparagraph id="IDe788eeadd6c842b18c4148bdcbaaa0a8"><enum>(C)</enum><text>$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.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID841762215a764b7aa2854ef624a6342b"><enum>(d)</enum><header>Definition of
qualified solar heating and cooling property expenditure</header>
<paragraph id="ID47be378a2bf5476b9332f118c51c2e15"><enum>(1)</enum><header>In
general</header><text>Paragraph (1) of section 25D(d) (relating to definitions)
is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id181DDCEC9BD8421E886E2C2ADC894FA5" style="OLC">
<paragraph id="ID50831e02746c4c5eb2cc44f56b3fee26"><enum>(2)</enum><header>Qualified solar
heating and cooling property expenditure</header><text>The term <term>qualified
solar heating and cooling property expenditure</term> means an expenditure for
property to heat or cool (or provide hot water for use in) a dwelling unit
located in the United States and used as a residence by the taxpayer if at
least half of the energy used by such property for such purpose is derived from
the sun. Such term shall not include an expenditure which is a qualified solar
electric property
expenditure.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="idE1ADA6A1066F40959C486B89C2C8EF6A"><enum>(2)</enum><header>Conforming
amendments</header><text>Section 25D (relating to residential energy efficient
property) is amended—</text>
<subparagraph id="id39AD3787791149F7812D6BAFAF320172"><enum>(A)</enum><text>by striking
<quote>solar water heating</quote> in subsections (a)(2) and (e)(4)(A)(ii) and
inserting <quote>solar heating and cooling</quote>, and</text>
</subparagraph><subparagraph id="id8B93FBC6DEBE49A396ACAE03C6E8F57B"><enum>(B)</enum><text>by striking the
heading for subsection (b)(2) and inserting the following new heading:
<quote>(2) <header-in-text level="paragraph" style="OLC">Certification of solar
heating and cooling property.</header-in-text></quote>.</text>
</subparagraph></paragraph></subsection><subsection id="ID27b0e56395954b8daba9ed14033b2930"><enum>(e)</enum><header>Credit allowed
against alternative minimum tax</header>
<paragraph id="ID75f9dda96645416b830656f5fcec1294"><enum>(1)</enum><header>In
general</header><text>Section 25D(b) (relating to limitations), as amended by
subsection (c), is amended by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id3E2B3FED8B6042448BB44ED8BCD7549E" style="OLC">
<paragraph id="ID9135912eeaba498cb5b9d1a06406641d"><enum>(3)</enum><header>Credit allowed
against alternative minimum tax</header><text>The credit allowed under
subsection (a) for the taxable year shall not exceed the excess of—</text>
<subparagraph id="ID8258a4d5afb843e3a4a1cbf99fcac9a3"><enum>(A)</enum><text>the sum of the
regular tax liability (as defined in section 26(b)) plus the tax imposed by
section 55, over</text>
</subparagraph><subparagraph id="IDdd7d82dfe8f340d18c4a7e29ae1bf029"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDece308f509d94fe48faade9923b3e5e2"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph id="ID11c4a9f3fce046afbbc763f2097c7998"><enum>(A)</enum><text>Subsection (c) of
section 25D (relating to carryforward of unused credit) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="id259164AED2784F12A0CE6A2BF06EF9C3" style="OLC">
<subsection id="ID8e0bcfbdf3f54839b7164fb76a0a3540"><enum>(c)</enum><header>Carryforward of
unused credit</header><text>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.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="IDabc65f3d4c6440d197a4d1934553c416"><enum>(B)</enum><text>Section
23(b)(4)(B) (relating to limitation based on amount of tax) is amended by
inserting <quote>and section 25D</quote> after <quote>this
section</quote>.</text>
</subparagraph><subparagraph id="ID1f1a01ee7e0249cda3e922e308274025"><enum>(C)</enum><text>Section
24(b)(3)(B) (relating to limitation based on amount of tax) is amended by
striking <quote>sections 23 and 25B</quote> and inserting <quote>sections 23,
25B, and 25D</quote>.</text>
</subparagraph><subparagraph id="ID4ebd0d9cb3b8484492d76a5df91d373a"><enum>(D)</enum><text>Section 26(a)(1)
(relating to limitation based on amount of tax) is amended by striking
<quote>and 25B</quote> and inserting <quote>25B, and 25D</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="ID69fbb116d3214c9398adb044312d933b"><enum>(f)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
expenditures made in taxable years beginning after December 31, 2007.</text>
</subsection></section><section id="id22D7EB35D84C44E8ADDD11913FCD5909"><enum>204.</enum><header>3-year
accelerated depreciation period for solar energy property</header>
<subsection id="ID3e61b4cb8beb4fea9b5ee4c16e4f703b"><enum>(a)</enum><header>In
general</header><text>Subparagraph (A) of section 168(e)(3) (relating to 3-year
property) is amended—</text>
<paragraph id="idA71D1BD149CB48E4BC0BAB1EDDC5224A"><enum>(1)</enum><text>by striking
<quote>and</quote> at the end of clause (ii),</text>
</paragraph><paragraph id="id9147C05249E14A76AB38D8BAB6C58797"><enum>(2)</enum><text>by striking the
period at the end of clause (iii) and inserting a comma, and</text>
</paragraph><paragraph id="idCD857CC08F3747C4800E7403F4CB18F0"><enum>(3)</enum><text>by inserting
after clause (iii) the following new clauses:</text>
<quoted-block display-inline="no-display-inline" id="idA724AD44664243E2B8F79C6C4D19E3BD" style="OLC">
<clause id="IDb5b770d5a9904323a49d68706356460b"><enum>(iv)</enum><text>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</text>
</clause><clause id="ID08917a92dc614e73af0aafd4340de1f4"><enum>(v)</enum><text>any property
which is described in clause (iv) of section
48(a)(3)(A).</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID95485116c3e149a7925252e8a7fcaae1"><enum>(b)</enum><header>Conforming
amendment</header><text>Subclause (I) of section 168(e)(3)(B)(vi) (relating to
5-year property) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id6942FD51CBEC40ABBC68DCCC31F3E9AF" style="OLC">
<subclause id="IDe781c16c21d34811934f8354cac3cffd"><enum>(I)</enum><text>would be
described in subparagraph (A) of section 48(a)(3) if <quote>wind energy</quote>
were substituted for <quote>solar energy</quote> in clause (i) thereof and the
last sentence of such section did not apply to such
subparagraph,</text>
</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID7ef5422cd2d04551a577aeaa8190433d"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to property
placed in service after December 31, 2007.</text>
</subsection></section></subtitle><subtitle id="idA6CB07CC728B48298C1A28C9E5EBACBA"><enum>B</enum><header>Promotion of
solar manufacturing in the United States</header>
<section id="id218C610763ED48E99A182875635CD0E6"><enum>211.</enum><header>Solar
manufacturing credit</header>
<subsection commented="no" id="ID72afc699d0374ec1b83a3d5401235f04"><enum>(a)</enum><header>In
general</header><text>Subpart E of part IV of subchapter A of chapter 1
(relating to rules for computing investment credit) is amended by inserting
after section 48B the following new section:</text>
<quoted-block display-inline="no-display-inline" id="id1E781FF46C3C43D2A961F12260047988" style="OLC">
<section id="ID6c49cf0181344ed887488b68e87e75eb"><enum>48C.</enum><header>Solar
manufacturing credit</header>
<subsection id="IDddaa5d5756484b3b9c845501c90a2b0d"><enum>(a)</enum><header>Credit
allowed</header><text>For purposes of section 46, the solar manufacturing
credit for any taxable year is an amount equal to 30 percent of the qualified
investment for such taxable year.</text>
</subsection><subsection id="IDf47668a0db9c421e85b3ed645c8aed2b"><enum>(b)</enum><header>Qualified
investment</header><text>For purposes of this section—</text>
<paragraph id="id927CD5295B94499D86D0938227A0EC41"><enum>(1)</enum><header>In
general</header><text>The qualified investment for any taxable year is equal to
the incremental costs incurred during such taxable year to re-equip, expand, or
establish an eligible manufacturing facility—</text>
<subparagraph id="id31F976696C254005BED66F6FEFE93D4F"><enum>(A)</enum><text>to produce
polysilicon for use in solar cells, wafers manufactured for solar cells, and
solar photovoltaic cells,</text>
</subparagraph><subparagraph id="IDa4f9117414774aed907af8cef448dabd"><enum>(B)</enum><text>to produce or
assemble solar photovoltaic modules,</text>
</subparagraph><subparagraph id="IDddb18c5668fe481faf47d59119ab0146"><enum>(C)</enum><text>to produce or
assemble solar thermal panels and solar thermal storage tanks, or</text>
</subparagraph><subparagraph id="idBE086E1492274961AD6321747747508A"><enum>(D)</enum><text>to produce
concentrated solar power equipment.</text>
</subparagraph></paragraph><paragraph id="id0A076DF2EF89497BBFBAC8800ABB1DFC"><enum>(2)</enum><header>Exceptions</header><text>The
qualified investment for any taxable year shall not include—</text>
<subparagraph id="id33DB4ECFB34D44EABE5E611A9A920727"><enum>(A)</enum><text>assets utilized
to produce the materials consumed in the production of solar photovoltaic
modules, such as aluminum extrusions, glass, encapsulants, inverters, and
mounting hardware, and</text>
</subparagraph><subparagraph id="id7FD3BBDE01884069955219097D442D75"><enum>(B)</enum><text>assets utilized
to produce the materials consumed in the production of solar thermal panels,
such as aluminum extrusions, glass, copper, and mounting hardware.</text>
</subparagraph></paragraph><paragraph id="idA147E88F24B342EF9B9B5767E23060EB"><enum>(3)</enum><header>Certain
qualified progress expenditures made applicable</header><text>Rules similar to
the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day
before the enactment of the Revenue Reconciliation Act of 1990) shall apply for
purposes of this section.</text>
</paragraph></subsection><subsection id="ID1457b2d965c841bdb5a4059f26eca6b5"><enum>(c)</enum><header>Definitions</header><text>For
purposes of this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id686EF9F90C164F63BE353F6BDFF50A32"><enum>(1)</enum><header display-inline="yes-display-inline">Eligible manufacturing
facility</header><text display-inline="yes-display-inline">The term
<term>eligible manufacturing facility</term> means any manufacturing facility
for which more than 50 percent of the gross receipts for the taxable year are
derived from sales of solar equipment.</text>
</paragraph><paragraph id="IDae4dfc555f5d4621a010b7f2f9f9ffc2"><enum>(2)</enum><header>Solar
photovoltaic cell</header><text>The term <term>solar photovoltaic cell</term>
means the semiconductor device which converts photons from light into
electricity.</text>
</paragraph><paragraph id="IDcd0ea0c0387f437fb66219cb39b9eeec"><enum>(3)</enum><header>Solar
photovoltaic module</header><text>The term <term>solar photovoltaic
module</term> means an assembly of multiple interconnected solar photovoltaic
cells that are sized and packaged for installation and deployment in a specific
application.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID79afc8ce16054abcad061cae1f2b11d8"><enum>(b)</enum><header>Credit treated
as part of investment credit</header><text>Section 46 (relating to amount of
credit) is amended by striking <quote>and</quote> at the end of paragraph (3),
by striking the period at the end of paragraph (4) and inserting <quote>,
and</quote>, and by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id61409403D1A54931ABB03024FED63334" style="OLC">
<paragraph id="ID5ce5a3b5d38d4b3198941e82c087e859"><enum>(5)</enum><text>the solar
manufacturing
credit.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idCF0F4C36720B450AA1F83030BB0A233E"><enum>(c)</enum><header>Certain
nonrecourse financing excluded from credit base</header><text>Section
49(a)(1)(C) (defining credit base) is amended by striking <quote>and</quote> at
the end of clause (iii), by striking the period at the end of clause (iv) and
inserting <quote>, and</quote>, and by adding at the end the following new
clause:</text>
<quoted-block display-inline="no-display-inline" id="id41A1B00122AF482E890D7711D2593433" style="OLC">
<clause id="id854B2CC97BCC4B199FA7EBFB6881214F"><enum>(v)</enum><text>the basis of any
property which is part of the solar manufacturing credit under section
48C.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDe72649bf665b4c52bf463ade05889cdc"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to periods
after December 31, 2007, in taxable years beginning after such date, under
rules similar to the rules of section 48(m) (as in effect on the day before the
date of the enactment of the Revenue Reconciliation Act of 1990).</text>
</subsection></section></subtitle>