II 111th CONGRESS 1st Session S. 2755 IN THE SENATE OF THE UNITED STATES November 9, 2009 Mr. Menendez (for himself, Ms. Stabenow, Mr. Bennet, and Mrs. Gillibrand) 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 an investment credit for equipment used to fabricate solar energy property, and for other purposes.

1.

Short title

This Act may be cited as the Solar Manufacturing Jobs Creation Act.

2.

Investment credit for equipment used to fabricate 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)equipment designed to be used for the fabrication of property described in clause (i) or paragraph (1) or (2) of section 25D(d), including solar cells and modules that convert sunlight to electricity, but only with respect to periods ending before January 1, 2017. . (b)

Credit percentage

Clause (i) of section 48(a)(2)(A) of the Internal Revenue Code of 1986 (defining energy percentage) is amended by striking and at the end of subclause (III) and by inserting after subclause (IV) the following new subclause: (V) energy property described in paragraph (3)(A)(viii), and .  (c)

Effective date

The amendments made by this section shall apply to periods after the date of the enactment of this Act, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).

3.

Solar energy property fabrication equipment treated as specified energy property for energy property grants in lieu of credits

(a)

Additional specified energy property

Section 1603(d)(3) of the American Recovery and Reinvestment Tax Act of 2009 is amended by striking described in clause (i) or (ii) and inserting described in clause (i), (ii) or (viii). (b)

Placed in service limitation

Paragraph (2) of section 1603(a) of the American Recovery and Reinvestment Tax Act of 2009 is amended by striking but only if the construction of such property began during 2009 or 2010. and inserting the following: “but only if— (A)the construction of such property began during 2009 or 2010, or (B)in the case of property described in section 48(a)(3)(A)(viii) of the Internal Revenue Code of 1986, is acquired by the taxpayer pursuant to a written binding contract which was entered into during 2009 or 2010. . (c)

Effective date

The amendments made by this section shall take effect as if included in the enactment of section 1603 of the American Recovery and Reinvestment Tax Act of 2009.