I 111th CONGRESS 2d Session H. R. 5464 IN THE HOUSE OF REPRESENTATIVES May 28, 2010 Ms. Giffords (for herself, Mr. Blumenauer, Mr. Thompson of California, Mr. Polis of Colorado, Mr. Luján, Ms. Hirono, Mr. Garamendi, Mr. Wu, and Mrs. Bono Mack) 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 provide that solar electric property need not be located on the property with respect to which it is generating electricity in order to qualify for the residential energy efficient property credit.

1.

Short title

This Act may be cited as the Solar Uniting Neighborhoods Act of 2010 or the SUN Act.

2.

Modification of credit for residential energy efficient property

(a)

Clarification with respect to location of solar electric property

Section 25D(d)(2) of the Internal Revenue Code of 1986 is amended— (1)by striking The term and inserting the following: (A)

In general

The term , and (2)by adding at the end the following new subparagraph: (B)

Off-site property

(i)

In general

Such term shall include an expenditure for qualified property described in subparagraph (A) notwithstanding— (I)whether such qualified property is located on the same site as the dwelling unit for which the electricity generated from such property is used, and (II)whether the electricity generated by the qualified property enters the electrical grid, so long as such electricity enters the grid at any point located in the same State within which such dwelling unit is connected. (ii)

Qualified property

For purposes of this subparagraph, the term qualified property means property— (I)which is not used in a trade or business, and (II)the electricity generated from which does not give rise to income for the taxable year (or any taxable year in the recapture period) in excess of amounts that would otherwise be charged to such taxpayer for electricity used at the taxpayer’s residence during the year. (iii)

Recapture

(I)

In general

The Secretary may provide for the recapture of the credit under this subsection with respect to any property described in this subparagraph which ceases to be qualified property during the recapture period. (II)

Recapture period

For purposes of this subparagraph, the recapture period with respect to any qualified property is the first 5 taxable years beginning after the taxable year for which a credit is allowed under this section with respect to such property. . (b)

Limitation with respect to off-Site solar electric property

Subsection (b) of section 25D of such Code is amended by adding at the end the following new paragraph: (3)

Maximum credit for off-site solar electric property

In the case of any qualified solar electric property expenditure with respect to property not located on the same site as the dwelling unit, the credit allowed under subsection (a) (determined without regard to subsection (c)) for any taxable year shall not exceed $50,000. . (c)

Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.