I 111th CONGRESS 1st Session H. R. 576 IN THE HOUSE OF REPRESENTATIVES January 15, 2009 Ms. Giffords 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 allow a refundable investment credit, and 5-year depreciation, for property used to manufacture solar energy property.

1.

Short title

This Act may be cited as the Solar Manufacturing Advancement Act of 2009.

2.

Refundable investment credit and 5-year depreciation for property used to manufacture solar energy property

(a)

In general

Subparagraph (A) of section 48(a)(3) of the Internal Revenue Code of 1986 (defining energy property) is amended by striking or at the end of clause (vi), by adding or at the end of clause (vii), and by inserting after clause (vii) the following new clause: (viii)property used to manufacture equipment described in clause (i) or (ii), . (b)

30 percent credit

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)property described in paragraph (3)(A)(viii) but only with respect to periods ending before January 1, 2017, and . (c)

Credit To be refundable

Subsection (c) of section 38 of such Code (relating to limitation based on amount of tax) is amended by redesignating paragraph (5) as paragraph (6) and by inserting after paragraph (4) the following new paragraph: (5)

Special rules for solar energy property manufacturer credit

(A)

In general

In the case of the solar energy property manufacturer credit— (i)this section and section 39 shall be applied separately with respect to such credit, (ii)in applying paragraph (1) to such credits— (I)the tentative minimum tax shall be treated as being zero, and (II)the limitation under paragraph (1) (as modified by subclause (I)) shall be reduced by the credit allowed under subsection (a) for the taxable year (other than the solar energy property manufacturer credit), and (iii)the amount of the solar energy property manufacturer credit in excess of the limitation under paragraph (1) (as modified by subclause (II)) shall be treated as a credit under subpart C. (B)

Solar energy property manufacturer credit

For purposes of this subsection, the term solar energy property manufacturer credit means so much of the energy credit as is attributable to property described in clause (viii) of section 48(a)(3)(A). . (d)

Effective date

The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act and to taxable years ending after such date.