[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4155 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 4155

 To amend the Internal Revenue Code of 1986 to permit the issuance of 
 tax-exempt bonds for financing clean energy improvements under State 
           and local property assessed clean energy programs.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 19, 2009

 Mr. Sarbanes introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to permit the issuance of 
 tax-exempt bonds for financing clean energy improvements under State 
           and local property assessed clean energy programs.

    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 ``Property Assessed Clean Energy Tax 
Benefits Act of 2009''.

SEC. 2. PROPERTY ASSESSED CLEAN ENERGY BONDS.

    (a) In General.--Section 144 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(d) Property Assessed Clean Energy Bonds.--For purposes of this 
part--
            ``(1) In general.--The term `property assessed clean energy 
        bond' means any bond issued as part of an issue 95 percent or 
        more of the net proceeds of which are to be used to finance 
        clean energy improvements under a qualified property assessed 
        clean energy program.
            ``(2) Qualified property assessed clean energy program.--
        For purposes of this subsection--
                    ``(A) In general.--The term `qualified property 
                assessed clean energy program' means a program of a 
                State or local government (or a political subdivision 
                thereof) under which such State or local government 
                finances clean energy improvements with respect to any 
                building in exchange for an assessment with respect to 
                such building under an agreement which--
                            ``(i) is between the State or local 
                        government and the owner of the building,
                            ``(ii) provides for an initial energy use 
                        audit of the building with respect to which 
                        clean energy improvements are to be made,
                            ``(iii) requires disclosure of the State or 
                        local government's estimate of utility savings 
                        for any proposed clean energy improvements,
                            ``(iv) provides that the State or local 
                        government shall arrange and finance any clean 
                        energy improvements, and
                            ``(v) specifies the term and rate of 
                        assessment with respect to the building for 
                        such clean energy improvements.
                    ``(B) Clean energy improvements.--For purposes of 
                this subsection--
                            ``(i) In general.--The term `clean energy 
                        improvements' means any distributed generation 
                        renewable energy sources, energy efficiency 
                        improvements, or water efficiency improvements 
                        which--
                                    ``(I) are permanently fixed to the 
                                building, and
                                    ``(II) will result in a 20 percent 
                                savings from the previous level of 
                                consumption with respect to the 
                                building as determined in the energy 
                                audit described in subparagraph 
                                (A)(ii).
                            ``(ii) Special rule relating to distributed 
                        generation renewable energy sources.--A 
                        distributed generation renewable energy source 
                        shall not be treated as a clean energy 
                        improvement with respect to a building unless 
                        energy efficiency improvements or water 
                        efficiency improvements are made with respect 
                        to such building under the program.''.
    (b) Treated as Qualified Bond.--Paragraph (1) of section 141(e) of 
such Code is amended by striking ``or'' at the end of subparagraph (F), 
by striking the period at the end of subparagraph (G) and inserting ``, 
or'', and by adding at the end the following new subparagraph:
                    ``(H) a property assessed clean energy bond.''.
    (c) Clerical Amendments.--
            (1) The heading of section 144 of such Code is amended by 
        striking ``bond.'' and inserting ``bond; property assessed 
        clean energy bond.''
            (2) The item relating to section 144 in the table of 
        sections for subpart A of part IV of subchapter B of chapter 1 
        of such Code is amended to read as follows:

``Sec. 144. Qualified small issuer bond; qualified student loan bond; 
                            qualified development bond; property 
                            assessed clean energy bond.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to bonds issued after the date of the enactment of this Act.
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