[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 284 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                 S. 284

 To amend the Internal Revenue Code of 1986 to allow a new refundable 
  credit for equipment used to manufacture solar energy property, to 
    waive the application of the subsidized financing rules to such 
                   property, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 21, 2009

 Mr. Menendez 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 allow a new refundable 
  credit for equipment used to manufacture solar energy property, to 
    waive the application of the subsidized financing rules to such 
                   property, and for other purposes.

    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 ``Solar Stimulus for Job Creation and 
Energy Independence Act of 2009''.

SEC. 2. REFUNDABLE INVESTMENT CREDIT 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) Credit To Be Refundable.--
            (1) In general.--Subsection (c) of section 38 of the 
        Internal Revenue Code of 1986 (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 investment credit.--
                    ``(A) In general.--In the case of the solar energy 
                investment credit--
                            ``(i) this section and section 39 shall be 
                        applied separately with respect to such credit,
                            ``(ii) in applying paragraph (1) to such 
                        credit--
                                    ``(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 investment credit), and
                            ``(iii) the amount of the solar energy 
                        investment 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 investment credit.--For purposes 
                of this subsection, the term `solar energy investment 
                credit' means so much of the energy credit as is 
                attributable to property described in clause (viii) of 
                section 48(a)(3)(A).
                    ``(C) Termination.--This paragraph shall not apply 
                to any taxable year ending after December 31, 2010.''.
            (2) Conforming amendments.--
                    (A) Subclause (II) of section 38(c)(2)(A)(ii) of 
                such Code is amended by striking ``and the specified 
                credits'' and inserting ``the specified credits, and 
                the solar energy investment credit''.
                    (B) Subclause (II) of section 38(c)(3)(A)(ii) of 
                such Code is amended by striking ``and the specified 
                credits'' and inserting ``, the specified credits, and 
                the solar energy investment credit''.
                    (C) Subclause (II) of section 38(c)(4)(A)(ii) of 
                such Code is amended by inserting ``and the solar 
                energy investment credit'' after ``specified credits''.
                    (D) Paragraph (2) of section 1324(b) of title 31, 
                United States Code, is amended by inserting 
                ``38(c)(5),'' after ``36,''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 3. EXCEPTION FROM SUBSIDIZED ENERGY FINANCING RULES FOR SOLAR 
              ENERGY PROPERTY.

    (a) In General.--Subparagraph (C) of section 48(a)(4) of the 
Internal Revenue Code of 1986 (defining subsidized energy financing) is 
amended by adding at the end the following new sentence: ``Such term 
shall not include any loan described in section 141(c)(2)(D).''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to property placed in service after such date in taxable years 
ending after such date.

SEC. 4. EXCEPTION FROM PRIVATE ACTIVITY BOND TESTS FOR FINANCING OF 
              SOLAR ENERGY PROPERTY.

    (a) Exception From Private Business Use Test.--Paragraph (6) of 
section 141(b) of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new subparagraph:
                    ``(C) Solar energy property.--For purposes of 
                subparagraph (A), property described in clause (i) or 
                (ii) of section 48(a)(3)(A) shall not be treated as 
                used in a trade or business.''.
    (b) Exception From Private Loan Financing Test.--Paragraph (2) of 
section 141(c) of the Internal Revenue Code of 1986 (relating to 
exception for tax assessment, etc., loans) is amended by striking 
``or'' at the end of subparagraph (B), by striking the period at the 
end of subparagraph (C) and inserting ``, or'', and by adding at the 
end the following new subparagraph:
                    ``(D) enables the borrower to finance the 
                acquisition, construction, and installation of property 
                described in clause (i) or (ii) of section 
                48(a)(3)(A).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to obligations issued after the date of the enactment of this 
Act.

SEC. 5. GOVERNMENT PROCUREMENT OF SOLAR ENERGY.

    Section 203 of the Energy Policy Act of 2005 (42 U.S.C. 15852) is 
amended--
            (1) by redesignating subsection (d) as subsection (e); and
            (2) by inserting after subsection (c) the following new 
        subsection (d):
    ``(d) Contracts for Renewable Energy.--Notwithstanding section 
501(b)(1)(B) of title 40, United States Code, a contract for renewable 
energy may be made for a period of not more than 25 years.''.
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