[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 2899 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                S. 2899

  To amend the American Recovery and Reinvestment Act of 2009 and the 
Internal Revenue Code of 1986 to provide incentives for the development 
                            of solar energy.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 17, 2009

 Mrs. Feinstein (for herself and Mr. Merkley) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the American Recovery and Reinvestment Act of 2009 and the 
Internal Revenue Code of 1986 to provide incentives for the development 
                            of solar energy.

    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 ``Renewable Energy Incentive Act''.

SEC. 2. EXTENSION OF GRANTS FOR SPECIFIED ENERGY PROPERTY IN LIEU OF 
              TAX CREDITS.

    (a) In General.--Subsection (a) of section 1603 of division B of 
the American Recovery and Reinvestment Act of 2009 is amended--
            (1) in paragraph (1), by striking ``2009 or 2010'' and 
        inserting ``2009, 2010, 2011, or 2012'', and
            (2) in paragraph (2)--
                    (A) by striking ``after 2010'' and inserting 
                ``after 2012'', and
                    (B) by striking ``2009 or 2010'' and inserting 
                ``2009, 2010, 2011, or 2012''.
    (b) Conforming Amendment.--Subsection (j) of section 1603 of 
division B of such Act is amended by striking ``2011'' and inserting 
``2013''.

SEC. 3. EXPANSION OF GRANTS FOR SPECIFIED ENERGY PROPERTY IN LIEU OF 
              TAX CREDITS.

    (a) Grants Allowed for Certain Governmental Units.--Paragraph (1) 
of section 1603(g) of division B of the American Recovery and 
Reinvestment Act of 2009 is amended by inserting ``other than a 
governmental unit which is a State utility with a service obligation 
(as such terms are defined in section 217 of the Federal Power Act),'' 
after ``thereof),''.
    (b) Grants Allowed for Public Power.--Paragraph (3) section 1603(g) 
of division B of such Act is amended by striking ``paragraph (4) of 
section 54(j)'' and inserting ``subparagraph (A) or (B) of section 
54(j)(4)''.
    (c) No Grants for Property for Which CREBs Have Been Issued.--
Section 1603 of division B of such Act, as amended by section 2, is 
amended by redesignating subsections (h), (i), and (j) as subsections 
(i), (j), and (k), respectively, and by inserting after subsection (g) 
the following new subsection:
    ``(h) Exception for Certain Projects.--The Secretary of the 
Treasury shall not make any grant under this section to any 
governmental unit with respect to any specified energy property 
described in subsection (d)(1) if such entity has issued any bond--
            ``(1) which is designated as a clean renewable energy bond 
        under section 54 of the Internal Revenue Code of 1986 or as a 
        new clean renewable energy bond under section 54C of such Code, 
        and
            ``(2) the proceeds of which are used for expenditures in 
        connection with the same qualified facility with respect to 
        which such specified energy property is a part.''.
    (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.

SEC. 4. CREDIT FOR QUALIFIED SOLAR MANUFACTURING PROJECT PROPERTY.

    (a) In General.--Subparagraph (A) of section 48(a)(3) of the 
Internal Revenue Code of 1986 is amended by striking ``or'' at the end 
of clause (vi), by inserting ``or'' at the end of clause (vii), and by 
inserting after clause (vii) the following new clause:
                            ``(viii) qualified solar manufacturing 
                        project property,''.
    (b) Credit Percentage.--Subclause (II) of section 48(a)(2)(A)(i) of 
such Code is amended by striking ``paragraph (3)(A)(i)'' and inserting 
``clause (i) or (viii) of paragraph (3)(A)''.
    (c) Qualified Solar Manufacturing Property.--Section 48(c) of such 
Code is amended by adding at the end the following new paragraph:
            ``(5) Qualified solar manufacturing project property.--The 
        term `qualified solar manufacturing project property' means any 
        tangible personal property (not including a building or its 
        structural components) purchased to re-equip, expand, or 
        establish a manufacturing facility for the production of 
        property described in subsection (a)(3)(A)(i), but only if such 
        property is used as an integral part of the production process. 
        Such term shall not include any property if such property has 
        been certified for a credit under section 48C.''.
    (d) Property Eligible for Grant.--Subsection (d) of section 1603 of 
division B of the American Recovery and Reinvestment Act of 2009 is 
amended by inserting after paragraph (8) the following new paragraph:
            ``(9) Qualified solar manufacturing project property.--Any 
        qualified solar manufacturing project property (as defined in 
        section 48(c)(5) of such Code).''.
    (e) Effective Date.--
            (1) In general.--The amendments made by subsections (a), 
        (b), and (c) 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).
            (2) Grants.--The amendment made by subsection (d) shall 
        apply to property placed in service after the date of the 
        enactment of this Act.

SEC. 5. CREDIT FOR HIGH SOLARITY DISTURBED PRIVATE LAND CONSOLIDATION.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45R. HIGH SOLARITY DISTURBED PRIVATE LAND CONSOLIDATION CREDIT.

    ``(a) In General.--For purposes of section 38, the high solarity 
disturbed private land consolidation credit for any taxable year is an 
amount equal to 30 percent of any amounts paid during the taxable year 
to purchase more than 2 sections of contiguous high solarity disturbed 
private land for the purpose of consolidating the lands into a 
contiguous block suitable for the production of solar energy for use in 
a trade or business.
    ``(b) High Solarity Disturbed Private Land.--The term `high 
solarity disturbed private land' means real property which--
            ``(1) is located in the United States,
            ``(2) was acquired in units that averaged less than 100 
        contiguous acres from any private person,
            ``(3) is in a location identified on the July 2007 
        Concentrating Solar Power Resources Maps published by the 
        National Renewable Energy Laboratory as--
                    ``(A) having a solar resource of 7 kwh per square 
                meter per year or higher, at 3 percent or less grade, 
                and
                    ``(B) outside of a sensitive environmental or urban 
                area,
            ``(4) was previously disturbed either by residential or 
        retail development, agriculture, industrial use, mining, or 
        other mechanical disturbance, and
            ``(5) will be primarily used for generating solar 
        electricity from property which is described in section 
        48(a)(3)(A)(i) within 5 years of the date of purchase.
    ``(c) Reduction in Basis.--If a credit is determined under this 
section with respect to any property by reason of expenditures 
described in subsection (a), the basis of such property shall be 
reduced by the amount of the credit so determined.
    ``(d) Property Used by Tax-Exempt Persons.--For purposes of this 
section, rules similar to the rules of paragraphs (3) and (4) of 
section 50(b) shall apply.
    ``(e) Recapture in Case of Disposition.--The Secretary shall 
provide for the recapture of the amount of any credit allowed under 
this section if the property is not used for the production of solar 
energy in a trade or business within 5 years of the date of 
purchase.''.
    (b) Credit Allowed as Business Credit.--Section 38(b) of such Code 
is amended by striking ``plus'' at the end of paragraph (34), by 
striking the period at the end of paragraph (35) and inserting ``, 
plus'', and by adding at the end the following new paragraph:
            ``(36) the high solarity disturbed private land 
        consolidation credit determined under section 45R(a).''.
    (c) Basis Adjustment.--Section 1016(a) of such Code is amended by 
striking ``and'' at the end of paragraph (36), by striking the period 
at the end of paragraph (37) and inserting ``, and'', and by adding at 
the end the following:
            ``(38) in the case of a facility with respect to which a 
        credit was allowed under section 45R, to the extent provided in 
        section 45R(c).''.
    (d) Clerical Amendment.--The table of sections for subpart F of 
part IV subchapter A of chapter 1 of the Internal Revenue Code of 1986 
is amended by inserting after the item relating to section 51 the 
following new item:

``Sec. 45R. High solarity disturbed private land consolidation 
                            credit.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 6. ENERGY CREDIT ALLOWED FOR WATER HEATERS IN POOLS LOCATED ON 
              COMMERCIAL PROPERTY.

    (a) In General.--Section 48(a)(3)(A)(i) of the Internal Revenue 
Code of 1986 is amended by inserting ``located at a single family 
residence'' after ``swimming pool''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after the date of the enactment of this 
Act.
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