1.This Act may be cited as the
Thermal Energy Cooling and Heating Act of
2009
.
2.Credit for
qualified distributed thermal storage property installed in a principal
residence
(a)Subsection (a) of section 25D of the Internal Revenue
Code of 1986 is amended by striking and
at the end of paragraph
(4), by striking the period at the end of paragraph (5) and inserting ,
and
, and by adding at the end the following new paragraph:
(6)30 percent of the
qualified distributed thermal energy storage property expenditures made by the
taxpayer during such
year.
.
(b)Qualified
distributed thermal energy storage property expenditureSection
25D(d) of such Code is amended by adding at the end the following new
paragraph:
(6)Qualified
distributed thermal energy storage property expenditureThe term
qualified distributed thermal energy storage property
expenditure
means an expenditure for qualified distributed thermal
energy storage property (as defined in section 48(e)) installed on or in
connection with a dwelling unit located in the United States and used as a
principal residence (within the meaning of section 121) by the
taxpayer.
.
(c)Modification of
maximum credit
(1)Paragraph (1) of section 25D(b) of such Code is amended
by striking and
at the end of subparagraph (B), by striking the
period at the end of subparagraph (C), and by adding at the end the following
new subparagraphs:
(D)$500 with respect to each half kilowatt of
peak demand reduction (as defined in section 48(e)(3)) by cooling systems which
are qualified distributed thermal energy storage property (as defined in
section 48(e)) for which qualified distributed thermal energy storage property
expenditures are made, and
(E)$150 for each nameplate kilowatt input of
thermal heat storage by heating systems which are qualified distributed thermal
energy storage property (as defined in section 48(e)) for which qualified
distributed thermal energy storage property expenditures are
made.
.
(2)Paragraph (4) of section 25D(e) of such Code is
amended—
(A)by amending so
much of such paragraph as precedes subparagraph (B) to read as follows:
(4)Limitations in
case of joint occupancyIn the case of any dwelling unit which is
jointly occupied and used during any calendar year as a residence by two or
more individuals the following rules shall apply:
(A)The maximum amount of expenditures which may be
taken into account under subsection (a) by all such individuals with respect to
such dwelling unit during such calendar year shall be—
(i)$1,667 in the case
of 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,
(ii)$1,667 in case of each half kilowatt of
peak demand reduction (as defined in section 48(e)(3)) by cooling systems which
are qualified distributed thermal energy storage property (as defined in
section 48(e)) for which qualified distributed thermal energy storage property
expenditures are made, and
(iii)$333 in the case of each nameplate kilowatt
input of thermal heat storage by heating systems which are qualified
distributed thermal energy storage property (as defined in section 48(e)) for
which qualified distributed thermal energy storage property expenditures are
made.
,
and
(B)by adding at the
end of subparagraph (B) the following:
This
subparagraph shall be applied separately with respect to qualified fuel cell
property expenditures, qualified distributed thermal energy storage property
expenditures with respect cooling systems, and qualified distributed thermal
energy storage property with respect to heating
systems..
(d)The amendments made by this section shall apply to taxable
years beginning after the date of the enactment of this Act.
3.Business credit
for qualified distributed thermal energy storage property
(a)Subparagraph (A) of section 48(a)(3) of the Internal
Revenue Code of 1986 is amended by deleting or
at the end of
clause (vi), by inserting or
at the end of clause (vii), and by
inserting clause (vii) the following new clause:
(viii)qualified
distributed thermal energy storage property but only with respect to periods
ending before January 1,
2017,
.
(b)Clause (i) of section 48(a)(2)(A) of such Code is
amended by striking and
at the end of subclause (III) and by
inserting after subclause (IV) the following new subclause:
(V)qualified
distributed thermal energy storage property,
and
.
(c)Qualified
distributed thermal energy storage propertySection 48 of such
Code is amended by adding at the end the following new subsection:
(e)Qualified
distributed thermal energy storage propertyFor the purposes of
this section:
(1)The term qualified distributed thermal energy
storage property
means a heating or cooling system which—
(A)consists of
mechanical thermal heat storage or cooling storage components which are
designed to create, store, and supply off peak or renewable electric
distributed thermal energy or to reduce or avoid peak electrical demand of
conventional mechanical cooling or heating equipment,
(B)has a nameplate
operational capability to deliver a minimum of 29,000 Btu per hour of cooling
capacity or a minimum of installed nameplate thermal heat storage capacity of
85,000 Btu,
(C)is designed to
deliver such cooling capacity for a minimum continuous period of 3 hours,
available daily from May 1 through September 30, or a minimum of 15,000 Btu per
hour of heating capacity for a minimum continuous period of 3 hours, available
daily from October 1 through April 30, coincident with daytime peak load
periods,
(D)is designed so as
to utilize off-peak or renewable electricity or reduce peak kilowatt demand by
90 percent for the heating and cooling load served, and
(E)is certified by
the manufacturer as designed so as not to exceed the energy consumption of
conventional HVAC equipment by more than 10 percent.
(2)Inclusion of
related equipmentSuch term shall include any secondary
components which integrate the distributed thermal energy storage system
described in paragraph (1) with the conventional heating or cooling system,
including equipment and controls for measuring and reporting operation and
performance, but shall not include any portion of the conventional heating or
cooling system.
(3)
(A)In case of qualified distributed thermal energy storage
property placed in service during the taxable year, the credit otherwise
determined under this section for such year with respect to such property shall
not exceed an amount equal to $500 for each 0.5 kilowatt of peak demand
reduction for property placed in service for cooling or $150 for each nameplate
kilowatt input for property placed in service for heating.
(B)For purposes of this subsection, the term peak
demand reduction
means the removal or avoidance of electrical demand
(kW) on the utility grid system during the daily time period of high electrical
demand. The peak demand reduction for air conditioning property shall be
determined based on Energy Efficiency Ratio (EER) standards for residential and
commercial air conditioning equipment, established under the Energy Policy and
Conservation Act of
1975.
.
(d)The amendments made by this Act shall apply to taxable years
beginning after the date of the enactment of this Act.
4.Qualified
distributed thermal energy storage property made eligible for new clean
renewable energy bonds
(a)Paragraph (1) of
section 54C(d) of the Internal Revenue Code of 1986 is amended to read as
follows:
(1)Qualified
renewable energy facilityThe
term qualified renewable energy facility
means—
(A)any qualified
facility (as determined under section 45(d) without regard to paragraphs (8)
and (10) thereof and to any placed in service date), and
(B)any qualified
distributed thermal energy storage property (as defined in section
48(e)),
owned by
a public power provider, a governmental body, or a cooperative electric
company..
(b)The amendments made by this section shall apply to
obligations issued after the date of the enactment of this Act.