[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 673 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                 S. 673

 To amend the Internal Revenue Code of 1986 to provide credits for the 
 installation of wind energy property, including by rural homeowners, 
    farmers, ranchers, and small businesses, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 16, 2007

    Mr. Salazar (for himself, Mr. Smith, Mr. Dorgan, and Mr. Craig) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to provide credits for the 
 installation of wind energy property, including by rural homeowners, 
    farmers, ranchers, and small businesses, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rural Wind Energy Development Act''.

SEC. 2. CREDIT FOR INSTALLATION OF WIND ENERGY PROPERTY INCLUDING BY 
              RURAL HOMEOWNERS, FARMERS, RANCHERS, AND SMALL 
              BUSINESSES.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 30D. WIND ENERGY PROPERTY.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to $1,500 with respect to each half kilowatt of capacity of 
qualified wind energy property placed in service or installed by the 
taxpayer during such taxable year.
    ``(b) Limitation.--No credit shall be allowed under subsection (a) 
unless at least 50 percent of the energy produced annually by the 
qualified wind energy property is consumed on the site on which the 
property is placed in service or installed.
    ``(c) Qualified Wind Energy Property.--For purposes of this 
section, the term `qualified wind energy property' means a wind turbine 
of 100 kilowatts of rated capacity or less if--
            ``(1) such turbine is placed in service or installed on or 
        in connection with property located in the United States,
            ``(2) in the case of an individual, the property on or in 
        connection with which such turbine is installed is a dwelling 
        unit,
            ``(3) the original use of such turbine commences with the 
        taxpayer, and
            ``(4) such turbine 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.
    ``(d) Limitation Based on Amount of Tax.--
            ``(1) In general.--The credit allowed under subsection (a) 
        for any taxable year shall not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                part (other than under this section and subpart C 
                thereof, relating to refundable credits) and section 
                1397E.
            ``(2) Carryover of unused credit.--If the credit allowable 
        under subsection (a) exceeds the limitation imposed by 
        paragraph (1) 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 taxable year.
    ``(e) Special Rules.--For purposes of this section--
            ``(1) Tenant-stockholder in cooperative housing 
        corporation.--In the case of an individual who is a tenant-
        stockholder (as defined in section 216(b)(2)) in a cooperative 
        housing corporation (as defined in section 216(b)(1)), such 
        individual shall be treated as having paid his tenant-
        stockholder's proportionate share (as defined in section 
        216(b)(3)) of any expenditures paid or incurred for qualified 
        wind energy property by such corporation, and such credit shall 
        be allocated appropriately to such individual.
            ``(2) Condominiums.--
                    ``(A) In general.--In the case of an individual who 
                is a member of a condominium management association 
                with respect to a condominium which he owns, such 
                individual shall be treated as having paid his 
                proportionate share of expenditures paid or incurred 
                for qualified wind energy property by such association, 
                and such credit shall be allocated appropriately to 
                such individual.
                    ``(B) Condominium management association.--For 
                purposes of this paragraph, the term `condominium 
                management association' means an organization which 
                meets the requirements of section 528(c)(2) with 
                respect to a condominium project of which substantially 
                all of the units are used by individuals as dwelling 
                units.
    ``(f) Basis Adjustment.--For purposes of this subtitle, if a credit 
is allowed under this section for any expenditure with respect to a 
dwelling unit or other property, the increase in the basis of such 
dwelling unit or other property which would (but for this subsection) 
result from such expenditure shall be reduced by the amount of the 
credit so allowed.
    ``(g) Application of Credit.--The credit allowed under this section 
shall apply to property placed in service or installed after December 
31, 2006, and before January 1, 2012.''.
    (b) Conforming Amendment.--Subsection (a) of section 1016 of the 
Internal Revenue Code of 1986 (relating to general rule for adjustments 
to basis) is amended by striking ``and'' at the end of paragraph (36), 
by striking the period at the end of paragraph (37) and inserting ``, 
and'', and by adding at the end the following new paragraph:
            ``(38) in the case of a dwelling unit or other property 
        with respect to which a credit was allowed under section 30D, 
        to the extent provided in section 30D(f).''.
    (c) Clerical Amendment.--The table of sections for subpart B of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 30C the 
following new item:

``Sec. 3D. Wind energy property.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after December 31, 2006.

SEC. 3. 3-YEAR ACCELERATED DEPRECIATION PERIOD FOR WIND ENERGY 
              PROPERTY.

    (a) In General.--Subparagraph (A) of section 168(e)(3) of the 
Internal Revenue Code of 1986 is amended by striking ``and'' at the end 
of clause (ii), by striking the period at the end of clause (iii) and 
inserting ``, and'', and by inserting after clause (iii) the following 
new clause:
                            ``(iv) any property which would be 
                        described in subparagraph (A) of section 
                        48(a)(3) if `wind energy' were substituted for 
                        `solar energy' in clause (i) thereof and the 
                        last sentence of such section did not apply to 
                        such subparagraph.''.
    (b) Conforming Amendment.--Section 168(e)(3)(B)(vi)(I) of such Code 
is amended to read as follows:
                                    ``(I) is described in subparagraph 
                                (A) of section 48(a)(3) if the last 
                                sentence of such section did not apply 
                                to such subparagraph,''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2006.
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