[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 320 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                 S. 320

 To ensure that short- and long-term investment decisions critical to 
  economic stimulus and job creation in clean energy are supported by 
             Federal programs and reliable tax incentives.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 26, 2009

 Ms. Cantwell introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To ensure that short- and long-term investment decisions critical to 
  economic stimulus and job creation in clean energy are supported by 
             Federal programs and reliable tax incentives.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; ETC.

    (a) Short Title.--This Act may be cited as the ``Clean Energy 
Stimulus and Investment Assurance Act of 2009''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code fo 1986.
    (c) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; etc.
             TITLE I--CREATING HIGH-WAGE GREEN COLLAR JOBS

Sec. 101. Alternative energy equipment manufacturing project credit.
Sec. 102. Fund Green Jobs Act.
          TITLE II--REVITALIZING OUR NATION'S ELECTRICITY GRID

Sec. 201. Smart grid research and development program.
Sec. 202. Smart grid regional demonstration initiative.
Sec. 203. Smart grid Federal matching fund.
Sec. 204. Recovery period for depreciation of smart meters and smart 
                            grid systems.
Sec. 205. Bonneville Power Administration.
              TITLE III--ENSURING CLEAN ENERGY DEPLOYMENT

Sec. 301. Shift in carryback and carryforward of unused general 
                            business credits.
Sec. 302. Extension and modification of renewable electricity 
                            production credit.
Sec. 303. Expansion and extension of new clean renewable energy bonds.
Sec. 304. 30-year contracts for Federal purchases of electricity 
                            generated by renewable energy.
               TITLE IV--REDUCING FOREIGN OIL DEPENDENCE

Sec. 401. Incentives for manufacturing facilities producing plug-in 
                            electric drive motor vehicle and 
                            components.
Sec. 402. Consumer incentives for plug-in electric drive motor 
                            vehicles.
Sec. 403. Transportation sector electrification programs.
Sec. 404. Energy storage competitiveness.
Sec. 405. Advanced battery manufacturing.
Sec. 406. Extension of credits for biodiesel and renewable diesel.
Sec. 407. Expansion and extension of electric and alternative fuel 
                            vehicle refueling property credit.
                 TITLE V--ENERGY EFFICIENCY INVESTMENTS

Sec. 501. Modification of credit for residential energy efficient 
                            property.
Sec. 502. Business credit for qualified energy storage air conditioner 
                            property.
Sec. 503. Extension and modification of new energy efficient home 
                            credit.
Sec. 504. Extension and modification of deduction for energy efficient 
                            commercial buildings.
Sec. 505. Extension and modification of nonbusiness energy property.
Sec. 506. Tax credits for green roofs.
Sec. 507. Repeal of certain limitations on credit for renewable energy 
                            property.
Sec. 508. Energy efficient appliance rebate program and Energy Star.

             TITLE I--CREATING HIGH-WAGE GREEN COLLAR JOBS

SEC. 101. ALTERNATIVE ENERGY EQUIPMENT MANUFACTURING PROJECT CREDIT.

    (a) In General.--Section 46 (relating to amount of credit) is 
amended by striking ``and'' at the end of paragraph (3), by striking 
the period at the end of paragraph (4), and by adding at the end the 
following new paragraph:
            ``(5) the alternative energy equipment manufacturing 
        project credit.''.
    (b) Amount of Credit.--Subpart E of part IV of subchapter A of 
chapter 1 (relating to rules for computing investment credit) is 
amended by inserting after section 48B the following new section:

``SEC. 48C. ALTERNATIVE ENERGY EQUIPMENT MANUFACTURING PROJECT CREDIT.

    ``(a) In General.--For purposes of section 46, the alternative 
energy equipment manufacturing project credit for any taxable year is 
an amount equal to 30 percent of the qualified investment for such 
taxable year with respect to any alternative energy equipment 
manufacturing project of the taxpayer.
    ``(b) Qualified Investment.--
            ``(1) In general.--For purposes of subsection (a), the 
        qualified investment for any taxable year is the basis of 
        eligible property placed in service by the taxpayer during such 
        taxable year which is part of an alternative energy equipment 
        manufacturing project--
                    ``(A)(i) the construction, reconstruction, or 
                erection of which is completed by the taxpayer after 
                October 31, 2008, or
                    ``(ii) which is acquired by the taxpayer if the 
                original use of such property commences with the 
                taxpayer after October 31, 2008,
                    ``(B) with respect to which depreciation (or 
                amortization in lieu of depreciation) is allowable.
            ``(2) Special rule for dual use property.--In the case of 
        any eligible property which is used to produce both property 
        described in subsection (c)(1)(A) and other property which is 
        property so described, the amount of qualified investment taken 
        into account under subsection (a) shall be reduced by an amount 
        equal to--
                    ``(A) the total amount of such qualified investment 
                (determined before the application of this paragraph), 
                multiplied by
                    ``(B) the percentage of property expected to be 
                produced which is not property so described.
            ``(3) Certain qualified progress expenditures rules made 
        applicable.--Rules similar to the rules of subsections (c)(4) 
        and (d) of section 46 (as in effect on the day before the 
        enactment of the Revenue Reconciliation Act of 1990) shall 
        apply for purposes of this section.
    ``(c) Definitions.--
            ``(1) Alternative energy equipment manufacturing project.--
        The term `alternative energy equipment manufacturing project' 
        means a project--
                    ``(A) which re-equips, expands, or establishes an 
                eligible manufacturing facility for the production of 
                property which is--
                            ``(i) designed to be used to produce energy 
                        from the sun, wind, geothermal deposits (within 
                        the meaning of section 613(e)(2)), fuel cells, 
                        or microturbines,
                            ``(ii) any battery, electric motor or 
                        generator, or power control unit which is 
                        designed specifically for use in a new 
                        qualified plug-in electric drive motor vehicle 
                        (as defined by section 30D(c)),
                            ``(iii) electricity generation, 
                        transmission, or distribution infrastructure or 
                        equipment directly related to enabling smart 
                        grid functions (as defined in section 1306(d) 
                        of Energy Independence and Security Act of 
                        2007), or,
                            ``(iv) otherwise approved by the Secretary, 
                        in consultation with the Secretary of Energy, 
                        as property designed to be used in the 
                        production of energy from alternative sources,
                    ``(B) any portion of the qualified investment of 
                which is certified under the qualifying advanced energy 
                project program as eligible for a credit under this 
                section.
            ``(2) Eligible property.--The term `eligible property' 
        means any property which is part of a qualifying advanced 
        energy project and is necessary for the production of property 
        described in paragraph (1)(A).
            ``(3) Eligible manufacturing facility.--The term `eligible 
        manufacturing facility' means any manufacturing facility for 
        which more than 50 percent of the gross receipts for the 
        taxable year are derived from sales of eligible property.
    ``(d) Alternative Energy Equipment Project Program.--
            ``(1) Establishment.--Not later than 180 days after the 
        date of enactment of this section, the Secretary, in 
        consultation with the Secretary of Energy, shall establish a 
        alternative energy equipment project program to consider and 
        award certifications for qualified investments eligible for 
        credits under this section to qualifying energy project 
        sponsors under this section.
            ``(2) Certification.--
                    ``(A) Application period.--Each applicant for 
                certification under this paragraph shall submit an 
                application meeting the requirements of subparagraph 
                (B). An applicant may only submit an application during 
                the 3-year period beginning on the date the Secretary 
                establishes the program under paragraph (1).
                    ``(B) Requirements for applications for 
                certification.--An application under subparagraph (A) 
                shall contain such information as the Secretary may 
                require in order to make a determination to accept or 
                reject an application for certification as meeting the 
                requirements under subsection (c)(1). Any information 
                contained in the application shall be protected as 
                provided in section 552(b)(4) of title 5, United States 
                Code.
                    ``(C) Time to act upon applications for 
                certification.--The Secretary shall issue a 
                determination as to whether an applicant has met the 
                requirements under subsection (c)(1) within 60 days 
                following the date of submittal of the application for 
                certification.
                    ``(D) Time to meet criteria for certification.--
                Each applicant for certification shall have 2 years 
                from the date of acceptance by the Secretary of the 
                application during which to provide to the Secretary 
                evidence that the requirements under subsection (c)(1) 
                have been met.
                    ``(E) Period of issuance.--An applicant which 
                receives a certification shall have 5 years from the 
                date of issuance of the certification in order to place 
                the project in service and if such project is not 
                placed in service by that time period then the 
                certification shall no longer be valid.
            ``(3) Aggregate credits.--The aggregate credits allowed 
        under subsection (a) for projects certified by the Secretary 
        under paragraph (2) may not exceed $6,000,000,000 per calendar 
        year.''.
    (c) Coordination With Energy Credit.--
            (1) In general.--Section 48(a)(2)(B) is amended by 
        inserting ``or to a qualified investment (as defined under 
        section 48C(b))'' before the period at the end.
            (2) Conforming amendment.--The heading of section 
        48(a)(2)(B) is amended by striking ``rehabilitation credit'' 
        and inserting ``other credits''.
    (d) Conforming Amendments.--
            (1) Section 49(a)(1)(C) is amended by striking ``and'' at 
        the end of clause (iii), by striking clause (iv), and by adding 
        after clause (iv) the following new clause:
                            ``(v) the basis of any property which is 
                        part of an alternative energy equipment 
                        manufacturing project credit under section 
                        48C.''.
            (2) The table of sections for subpart E of part IV of 
        subchapter A of chapter 1 is amended by inserting after the 
        item relating to section 48B the following new item:

``48C. Alternative energy equipment manufacturing project credit.''.
    (e) 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).

SEC. 102. FUND GREEN JOBS ACT.

    Out of any sums in the Treasury of the United States not otherwise 
appropriated, $125,000,000,000 is appropriated for expenses necessary 
for the manufacturing of advanced batteries authorized under section 
136(b)(1)(B) of the Energy Independence and Security Act of 2007 (42 
U.S.C. 17013(b)(1)(B)). Such sums shall remain available until 
expended.

          TITLE II--REVITALIZING OUR NATION'S ELECTRICITY GRID

SEC. 201. SMART GRID RESEARCH AND DEVELOPMENT PROGRAM.

    Out of any sums in the Treasury of the United States not otherwise 
appropriated, $400,000,000 shall be appropriated for expenses necessary 
for the program authorized under section 1304(a) of the Energy 
Independence and Security Act of 2007 (42 U.S.C. 17384(a)). Such sums 
shall remain available until expended.

SEC. 202. SMART GRID REGIONAL DEMONSTRATION INITIATIVE.

    Out of any sums in the Treasury of the United States not otherwise 
appropriated, $200,000,000 is appropriated for expenses necessary for 
the initiative authorized under section 1304(b) of the Energy 
Independence and Security Act of 2007 (42 U.S.C. 17384(b)). Such sums 
shall remain available until expended.

SEC. 203. SMART GRID FEDERAL MATCHING FUND.

    Out of any sums in the Treasury of the United States not otherwise 
appropriated, $200,000,000 is appropriated for expenses necessary for 
grant program authorized under section 1306 of the Energy Independence 
and Security Act of 2007 (42 U.S.C. 17386). Such sums shall remain 
available until expended.

SEC. 204. RECOVERY PERIOD FOR DEPRECIATION OF SMART METERS AND SMART 
              GRID SYSTEMS.

    (a) 5-Year Recovery Period.--
            (1) In general.--Subparagraph (B) of section 168(e)(3) is 
        amended by striking ``and'' at the end of clause (vi), by 
        striking the period at the end of clause (vii) and inserting 
        ``, and'', and by adding at the end the following new clauses:
                            ``(viii) any qualified smart electric 
                        meter, and
                            ``(ix) any qualified smart electric grid 
                        system.''.
            (2) Conforming amendments.--Subparagraph (D) of section 
        168(e)(3) is amended by inserting ``and'' at the end of clause 
        (i), by striking the comma at the end of clause (ii) and 
        inserting a period, and by striking clauses (iii) and (iv).
    (b) Technical Amendments.--Paragraphs (18)(A)(ii) and (19)(A)(ii) 
of section 168(i) are each amended by striking ``16 years'' and 
inserting ``10 years''.
    (c) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to property placed 
        in service after the date of the enactment of this Act.
            (2) Technical amendment.--The amendments made by subsection 
        (b) shall take effect as if included in section 306 of the 
        Energy Improvement and Extension Act of 2008.

SEC. 205. BONNEVILLE POWER ADMINISTRATION.

    For the purposes of providing funds to assist in financing the 
construction, acquisition, and replacement of the transmission system 
of the Bonneville Power Administration and to implement the authority 
of the Administrator under the Pacific Northwest Electric Power 
Planning and Conservation Act (16 U.S.C. 839 et seq.), an additional 
$5,000,000,000 in borrowing authority is made available under the 
Federal Columbia River Transmission System Act (16 U.S.C. 838 et seq.), 
to remain outstanding at any time.

              TITLE III--ENSURING CLEAN ENERGY DEPLOYMENT

SEC. 301. SHIFT IN CARRYBACK AND CARRYFORWARD OF UNUSED GENERAL 
              BUSINESS CREDITS.

    (a) In General.--Section 39(a)(1) is amended--
            (1) by striking ``the taxable year'' in subparagraph (A) 
        and inserting ``each of the 5 taxable years'', and
            (2) by striking ``20 taxable years'' in subparagraph (B) 
        and inserting ``15 taxable years''.
    (b) Conforming Amendments.--
            (1) The heading for paragraph (1) of section 39(a) is 
        amended--
                    (A) by striking ``1-year'' and inserting ``5-
                year'', and
                    (B) by striking ``20-year'' and inserting ``15-
                year''.
            (2) Section 39(a)(2)(A) is amended by striking ``21 taxable 
        years'' and inserting ``20 taxable years''.
            (3) Section 39(a)(2)(B) is amended--
                    (A) by striking ``20 taxable years'' and inserting 
                ``19 taxable years'', and
                    (B) by striking ``20 years'' in the heading thereof 
                and inserting ``19 years''.
            (4) Section 39(a) is amended by striking paragraph (3).
    (c) Effective Date.--The amendments made by this section shall 
apply to credits arising in taxable years beginning after the date of 
the enactment of this Act.

SEC. 302. EXTENSION AND MODIFICATION OF RENEWABLE ELECTRICITY 
              PRODUCTION CREDIT.

    (a) Extension.--Section 45(d) is amended--
            (1) by striking ``January 1, 2010'' in paragraph (1) and 
        inserting ``January 1, 2014'',
            (2) by striking ``January 1, 2011'' each place it appears 
        in paragraphs (2), (3), (4), (5), (6), (7), and (9) and 
        inserting ``January 1, 2014'', and
            (3) by striking ``January 1, 2012'' in paragraph (11)(B) 
        and inserting ``January 1, 2014''.
    (b) Credit To Include Production of Thermal Energy.--
            (1) In general.--Section 45 is amended by adding at the end 
        the following new subsection:
    ``(f) Credit for Production of Thermal Energy.--
            ``(1) In general.--In the case of a taxpayer who--
                    ``(A) produces thermal energy from closed-loop 
                biomass, open-loop biomass, or geothermal energy at a 
                qualified facility, and
                    ``(B) makes an election under this subsection with 
                respect to such facility,
        subsection (a) shall be applied by substituting `each 3,413 
        Btus of thermal energy (or fraction thereof)' for `the kilowatt 
        hours of electricity' in paragraph (2) thereof.
            ``(2) Denial of double benefit.--If an election under this 
        subsection is in effect with respect to any facility, no credit 
        shall be allowed under subsection (a) with respect to the 
        production of electricity at such facility.
            ``(3) Election.--
                    ``(A) In general.--An election under this 
                subsection shall specify the facility to which the 
                election applies and shall be in such manner as the 
                Secretary may by regulations prescribe.
                    ``(B) Election irrevocable.--Any election made 
                under this subsection may not be revoked except with 
                the consent of the Secretary.''.
            (2) Conforming amendments.--
                    (A) Section 45(c)(2) is amended by inserting ``or 
                thermal energy'' after ``electricity''.
                    (B) Section 45(d) is amended by inserting ``or 
                thermal energy'' after ``electricity'' each place it 
                appears in paragraphs (2), (3), and (4).
                    (C) Section 45(e) is amended by inserting ``or 
                thermal energy'' after ``electricity'' each place it 
                appears in paragraphs (1) and (4).
                    (D) The heading of section 45 is amended by 
                inserting ``and thermal energy'' after ``electricity''.
                    (E) The item relating to section 45 in the table of 
                sections for subpart D of part IV of subchapter A of 
                chapter 1 is amended by inserting ``and thermal 
                energy'' after ``Electricity''.
    (c) Elimination of Reduced Credit Rate for Electricity Produced and 
Sold From Certain Facilities.--Paragraph (4) of section 45(b) is 
amended to read as follows:
            ``(4) Credit period for electricity produced and sold from 
        certain facilities.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B) or subparagraph (C), in the case of 
                any facility described in paragraph (3), (4), (5), (6), 
                or (7) of subsection (d), the 5-year period beginning 
                on the date the facility was originally placed in 
                service shall be substituted for the 10-year period in 
                subsection (a)(2)(A)(ii).
                    ``(B) Certain open-loop biomass facilities.--In the 
                case of any facility described in subsection 
                (d)(3)(A)(ii) placed in service before October 22, 
                2004, the 5-year period beginning on January 1, 2005, 
                shall be substituted for the 10-year period in 
                subsection (a)(2)(A)(ii).
                    ``(C) Termination.--Subparagraph (A) shall not 
                apply to any facility placed in service after August 8, 
                2005.''.
    (d) Credit Allowed for Zero-Carbon Emissions Resource Facilities.--
            (1) In general.--Section 45(c)(1) is amended by striking 
        ``and'' at the end of subparagraph (H), by striking the period 
        at the end of subparagraph (I) and inserting ``, and'', and by 
        adding at the end the following new subparagraph:
                    ``(J) zero-carbon emissions resources.''.
            (2) Definition of resources.--Section 45(c) is amended by 
        adding at the end the following new paragraph:
            ``(11) Zero-carbon emissions resource.--The term `zero-
        carbon emission resource' means any resource--
                    ``(A) not described in paragraphs (2) through (10),
                    ``(B) from which electricity or thermal energy can 
                be produced without producing carbon emissions, and
                    ``(C) which is approved by the Secretary, after 
                consultation with the Secretary of Energy.''.
            (3) Facilities.--Section 45(d) is amended by adding at the 
        end the following new paragraph:
            ``(11) Zero-carbon emissions resource facility.--In the 
        case of a facility using a zero-carbon emissions resource to 
        produce electricity or thermal energy, the term `qualified 
        facility' means any facility owned by the taxpayer which is 
        originally placed in service after the date of the enactment of 
        this paragraph and before January 1, 2014.''.
    (e) Modification of Renewable Electricity Production Credit for 
Biomass Facilities.--
            (1) In general.--Section 45(e) is amended by adding at the 
        end the following new paragraph:
            ``(12) Credit allowed for electricity produced from biomass 
        for on-site use.--In the case of electricity produced after 
        December 31, 2008, at any facility described in paragraph (2) 
        or (3) of subsection (d) which is equipped with a metering 
        device to determine electricity consumption or sale, subsection 
        (a)(2) shall be applied without regard to subparagraph (B) 
        thereof with respect to such electricity produced and consumed 
        at such facility.''.
            (2) Credit period for electricity produced from open-loop 
        biomass for on-site use.--Section 45(b)(4), as amended by 
        subsection (c), is amended--
                    (A) by striking ``subparagraph (B) or subparagraph 
                (C)'' in subparagraph (A) and inserting ``subparagraph 
                (B), (C), or (D)'',
                    (B) by redesignating subparagraph (C) as 
                subparagraph (D), and
                    (C) by inserting after subparagraph (B) the 
                following new subparagraph:
                    ``(C) Electricity produced for on-site use at 
                certain open-loop biomass facilities.--In the case of 
                electricity produced and consumed as described in 
                subsection (e)(12) at any facility described in 
                subsection (d)(3)(A)(ii) which is placed in service 
                before the date of the enactment of this clause, the 5-
                year period beginning on January 1, 2009, shall be 
                substituted for the 10-year period in subsection 
                (a)(2)(A)(ii).''.
    (f) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to electricity and 
        thermal energy produced and sold after the date of the 
        enactment of this Act, in taxable years ending after such date.
            (2) Biomass facilities.--The amendments made by subsection 
        (e) shall take effect on the date of the enactment of this Act.

SEC. 303. EXPANSION AND EXTENSION OF NEW CLEAN RENEWABLE ENERGY BONDS.

    (a) In General.--Section 54C(c)(2) is amended by inserting ``, for 
calendar years 2009, 2010, 2011, 2012, and 2013, an additional 
$5,000,000,000 for each year, and, except as provided in paragraph (4) 
for years after 2013, zero,'' after ``$800,000,000''.
    (b) Carryover of Unused Limitation.--Section 54C(c) is amended by 
adding at the end the following new paragraph:
            ``(4) Carryover of unused limitation.--If for any calendar 
        year--
                    ``(A) the amount allocated under paragraph (2) for 
                such calendar year, exceeds
                    ``(B) the amount of bonds issued during such year 
                which are designated under subsection (a) pursuant to 
                such allocation, the limitation amount under such 
                paragraph for the following calendar year shall be 
                increased by the amount of such excess.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to obligations issued after December 31, 2008.

SEC. 304. 30-YEAR CONTRACTS FOR FEDERAL PURCHASES OF ELECTRICITY 
              GENERATED BY RENEWABLE ENERGY.

    Section 203 of the Energy Policy Act of 2005 (42 U.S.C. 15852) is 
amended by adding at the end the following new subsection:
    ``(e) Contract Length.--
            ``(1) In general.--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 30 years.
            ``(2) Exclusion.--For purposes of this subsection, the term 
        `renewable energy' shall be deemed to exclude energy generated 
        from municipal solid waste.
            ``(3) Technical assistance.--The Secretary shall provide 
        technical assistance to Federal agencies regarding the 
        implementation of this subsection.
            ``(4) Standardized renewable energy purchase agreement.--
        Not later than 90 days after the date of enactment of this 
        subsection, the Secretary, through the Federal Energy 
        Management Program, shall publish a standardized renewable 
        energy purchase agreement setting forth commercial terms and 
        conditions that can be utilized by Federal agencies to acquire 
        renewable energy.
            ``(5) Limitation.--The maximum amount obligated or expended 
        under this subsection shall not exceed $480,000,000.''.

               TITLE IV--REDUCING FOREIGN OIL DEPENDENCE

SEC. 401. INCENTIVES FOR MANUFACTURING FACILITIES PRODUCING PLUG-IN 
              ELECTRIC DRIVE MOTOR VEHICLE AND COMPONENTS.

    (a) Deduction for Manufacturing Facilities.--Part VI of subchapter 
B of chapter 1 (relating to itemized deductions for individuals and 
corporations) is amended by inserting after section 179E the following 
new section:

``SEC. 179F. ELECTION TO EXPENSE MANUFACTURING FACILITIES PRODUCING 
              PLUG-IN ELECTRIC DRIVE MOTOR VEHICLE AND COMPONENTS.

    ``(a) Treatment as Expenses.--A taxpayer may elect to treat the 
applicable percentage of the cost of any qualified plug-in electric 
drive motor vehicle manufacturing facility property as an expense which 
is not chargeable to a capital account. Any cost so treated shall be 
allowed as a deduction for the taxable year in which the qualified 
manufacturing facility property is placed in service.
    ``(b) Applicable Percentage.--For purposes of subsection (a), the 
applicable percentage is--
            ``(1) 100 percent, in the case of qualified plug-in 
        electric drive motor vehicle manufacturing facility property 
        which is placed in service before January 1, 2012, and
            ``(2) 50 percent, in the case of qualified plug-in electric 
        drive motor vehicle manufacturing facility property which is 
        placed in service after December 31, 2011, and before January 
        1, 2015.
    ``(c) Election.--
            ``(1) In general.--An election under this section for any 
        taxable year shall be made on the taxpayer's return of the tax 
        imposed by this chapter for the taxable year. Such election 
        shall be made in such manner as the Secretary may by 
        regulations prescribe.
            ``(2) Election irrevocable.--Any election made under this 
        section may not be revoked except with the consent of the 
        Secretary.
    ``(d) Qualified Plug-In Electric Drive Motor Vehicle Manufacturing 
Facility Property.--For purposes of this section--
            ``(1) In general.--The term `qualified plug-in electric 
        drive motor vehicle manufacturing facility property' means any 
        qualified property--
                    ``(A) the original use of which commences with the 
                taxpayer,
                    ``(B) which is placed in service by the taxpayer 
                after the date of the enactment of this section and 
                before January 1, 2015, and
                    ``(C) no written binding contract for the 
                construction of which was in effect on or before the 
                date of the enactment of this section.
            ``(2) Qualified property.--
                    ``(A) In general.--The term `qualified property' 
                means any property which is a facility or a portion of 
                a facility used for the production of--
                            ``(i) any new qualified plug-in electric 
                        drive motor vehicle (as defined by section 
                        30D(c)), or
                            ``(ii) any eligible component.
                    ``(B) Eligible component.--The term `eligible 
                component' means any battery, any electric motor or 
                generator, or any power control unit which is designed 
                specifically for use with a new qualified plug-in 
                electric drive motor vehicle (as so defined).
    ``(e) Special Rule for Dual Use Property.--In the case of any 
qualified plug-in electric drive motor vehicle manufacturing facility 
property which is used to produce both qualified property and other 
property which is not qualified property, the amount of costs taken 
into account under subsection (a) shall be reduced by an amount equal 
to--
            ``(1) the total amount of such costs (determined before the 
        application of this subsection), multiplied by
            ``(2) the percentage of property expected to be produced 
        which is not qualified property.''.
    (b) Refund of Credit for Prior Year Minimum Tax Liability.--Section 
53 (relating to credit for prior year minimum tax liability) is amended 
by adding at the end the following new subsection:
    ``(g) Election To Treat Amounts Attributable to Qualified 
Manufacturing Facility.--
            ``(1) In general.--In the case of an eligible taxpayer, the 
        amount determined under subsection (c) for the taxable year 
        (after the application of subsection (e)) shall be increased by 
        an amount equal to the applicable percentage of any qualified 
        plug-in electric drive motor vehicle manufacturing facility 
        property which is placed in service during the taxable year.
            ``(2) Applicable percentage.--For purposes of paragraph 
        (1), the applicable percentage is--
                    ``(A) 35 percent, in the case of qualified plug-in 
                electric drive motor vehicle manufacturing facility 
                property which is placed in service before January 1, 
                2012, and
                    ``(B) 17.5 percent, in the case of qualified plug-
                in electric drive motor vehicle manufacturing facility 
                property which is placed in service after December 31, 
                2011, and before January 1, 2015.
            ``(3) Eligible taxpayer.--For purposes of this subsection, 
        the term `eligible taxpayer' means any taxpayer--
                    ``(A) who places in service qualified plug-in 
                electric drive motor vehicle manufacturing facility 
                property during the taxable year,
                    ``(B) who does not make an election under section 
                179F(c), and
                    ``(C) who makes an election under this subsection.
            ``(4) Other definitions and special rules.--
                    ``(A) Qualified plug-in electric drive motor 
                vehicle manufacturing facility property.--The term 
                `qualified plug-in electric drive motor vehicle 
                manufacturing facility property' has the meaning given 
                such term under section 179F(d).
                    ``(B) Special rule for dual use property.--In the 
                case of any qualified plug-in electric drive motor 
                vehicle manufacturing facility property which is used 
                to produce both qualified property (as defined in 
                section 179F(d)) and other property which is not 
                qualified property, the amount of costs taken into 
                account under paragraph (1) shall be reduced by an 
                amount equal to--
                            ``(i) the total amount of such costs 
                        (determined before the application of this 
                        subparagraph), multiplied by
                            ``(ii) the percentage of property expected 
                        to be produced which is not qualified property.
                    ``(C) Election.--
                            ``(i) In general.--An election under this 
                        subsection for any taxable year shall be made 
                        on the taxpayer's return of the tax imposed by 
                        this chapter for the taxable year. Such 
                        election shall be made in such manner as the 
                        Secretary may by regulations prescribe.
                            ``(ii) Election irrevocable.--Any election 
                        made under this subsection may not be revoked 
                        except with the consent of the Secretary.
            ``(5) Credit refundable.--For purposes of this title (other 
        than this section), the credit allowed by reason of this 
        subsection shall be treated as if it were allowed under subpart 
        C.''.
    (c) Clerical Amendment.--The table of sections for part VI of 
subchapter B of chapter 1 is amended by adding at the end the following 
new item:

``Sec. 179F. Election to expense manufacturing facilities producing 
                            plug-in electric drive motor vehicle and 
                            components.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 402. CONSUMER INCENTIVES FOR PLUG-IN ELECTRIC DRIVE MOTOR 
              VEHICLES.

    (a) Increase in Number of Plug-In Electric Drive Motor Vehicles 
Eligible for Tax Credit.--
            (1) In general.--Subparagraph (B) of section 30D(b)(2) is 
        amended by striking ``250,000'' and inserting ``500,000''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to taxable years beginning after December 31, 2008.
    (b) Conversion Kits.--
            (1) In general.--Section 30B (relating to alternative motor 
        vehicle credit) is amended by redesignating subsections (i) and 
        (j) as subsections (j) and (k), respectively, and by inserting 
        after subsection (h) the following new subsection:
    ``(i) Plug-In Conversion Credit.--
            ``(1) In general.--For purposes of subsection (a), the 
        plug-in conversion credit determined under this subsection with 
        respect to any motor vehicle which is converted to a qualified 
        plug-in electric drive motor vehicle is the lesser of--
                    ``(A) an amount equal to--
                            ``(i) $1,250, plus
                            ``(ii) $100 for each half kilowatt hour of 
                        capacity of the plug-in traction battery module 
                        installed in such vehicle in excess of 2.5 
                        kilowatt hours, or
                    ``(B) 50 percent of the cost of the plug-in 
                traction battery module installed in such vehicle as 
                part of such conversion.
            ``(2) Limitations.--The amount of the credit allowed under 
        this subsection shall not exceed $4,000 with respect to the 
        conversion of any motor vehicle.
            ``(3) Definitions and special rules.--For purposes of this 
        subsection--
                    ``(A) Qualified plug-in electric drive motor 
                vehicle.--The term `qualified plug-in electric drive 
                motor vehicle' means any new qualified plug-in electric 
                drive motor vehicle (as defined in section 30D(c), 
                determined without regard to paragraphs (4) and (6) 
                thereof).
                    ``(B) Plug-in traction battery module.--The term 
                `plug-in traction battery module' means an electro-
                chemical energy storage device which--
                            ``(i) has a traction battery capacity of 
                        not less than 2.5 kilowatt hours,
                            ``(ii) is equipped with an electrical plug 
                        by means of which it can be energized and 
                        recharged when plugged into an external source 
                        of electric power,
                            ``(iii) consists of a standardized 
                        configuration and is mass produced,
                            ``(iv) has been tested and approved by the 
                        National Highway Transportation Safety 
                        Administration as compliant with applicable 
                        motor vehicle and motor vehicle equipment 
                        safety standards when installed by a mechanic 
                        with standardized training in protocols 
                        established by the battery manufacturer as part 
                        of a nationwide distribution program, and
                            ``(v) is certified by a battery 
                        manufacturer as meeting the requirements of 
                        clauses (i) through (iv).
                    ``(C) Credit allowed to lessor of battery module.--
                In the case of a plug-in traction battery module which 
                is leased to the taxpayer, the credit allowed under 
                this subsection shall be allowed to the lessor of the 
                plug-in traction battery module.
                    ``(D) Credit allowed in addition to other 
                credits.--The credit allowed under this subsection 
                shall be allowed with respect to a motor vehicle 
                notwithstanding whether a credit has been allowed with 
                respect to such motor vehicle under this section (other 
                than this subsection) in any preceding taxable year.
            ``(4) Termination.--This subsection shall not apply to 
        conversions made after December 31, 2012.''.
            (2) Credit treated as part of alternative motor vehicle 
        credit.--Section 30B(a) is amended by striking ``and'' at the 
        end of paragraph (3), by striking the period at the end of 
        paragraph (4) and inserting ``, and'', and by adding at the end 
        the following new paragraph:
            ``(5) the plug-in conversion credit determined under 
        subsection (i).''.
            (3) No recapture for vehicles converted to qualified plug-
        in electric drive motor vehicles.--Paragraph (8) of section 
        30B(h) is amended by adding at the end the following: ``, 
        except that no benefit shall be recaptured if such property 
        ceases to be eligible for such credit by reason of conversion 
        to a qualified plug-in electric drive motor vehicle.''.
            (4) Effective date.--The amendments made by this subsection 
        shall apply to property placed in service after December 31, 
        2008, in taxable years beginning after such date.
    (c) Certain 2- or 3-Wheeled Motor Vehicles Eligible for Credit.--
            (1) In general.--Section 30D is amended--
                    (A) by redesignating subsections (f) and (g) as 
                subsections (g) and (h), respectively, and
                    (B) by inserting after subsection (e) the following 
                new subsection:
    ``(f) 2- or 3-Wheeled Motor Vehicles.--For purposes of this 
section--
            ``(1) In general.--Except as provided in paragraph (2), 2- 
        or 3-wheeled motor vehicles shall be treated in the same manner 
        as motor vehicles.
            ``(2) Exceptions.--
                    ``(A) Applicable amount.--For purposes of this 
                subsection, the applicable amount shall be $1,250.
                    ``(B) Other exceptions.--
                            ``(i) Subparagraph (B) of subsection (a)(2) 
                        shall be applied with respect to 2- or 3-
                        wheeled motor vehicles by substituting `$100 
                        for each half kilowatt hour' for `$417 for each 
                        kilowatt hour'.
                            ``(ii) Subparagraph (A) of subsection 
                        (b)(1) shall be applied with respect to 2- or 
                        3-wheeled motor vehicles by substituting 
                        `$3,750' for `$7,500'.
                            ``(iii) Subsection (c)(1) shall be applied 
                        with respect to 2- or 3-wheeled motor vehicles 
                        by substituting `2.5 kilowatt hours' for `4 
                        kilowatt hours'.
                            ``(iv) Subsection (c)(3) shall not apply 
                        with respect to 2- or 3-wheeled motor vehicles.
            ``(3) Application of limitation.--The limitation provided 
        in subsection (b)(2) shall be applied separately with respect 
        to 2- or 3-wheeled vehicles and with respect to other motor 
        vehicles, and in applying such limitation to 2- or 3-wheeled 
        vehicles, `50,000' shall be substituted for `500,000'.
            ``(4) 2- or 3-wheeled motor vehicle.--The term `2- or 3-
        wheeled vehicle' means any vehicle--
                    ``(A) which would be described in section 30(c)(2) 
                except that it has 2 or 3 wheels,
                    ``(B) with motive power having a seat or saddle for 
                the use of the rider and designed to travel on not more 
                than 3 wheels in contact with the ground,
                    ``(C) which has an electric motor that produces in 
                excess of 5-brake horsepower,
                    ``(D) which draws propulsion from 1 or more 
                traction batteries, and
                    ``(E) which has been certified to the Department of 
                Transportation pursuant to section 567 of title 49, 
                Code of Federal Regulations, as conforming to all 
                applicable Federal motor vehicle safety standards in 
                effect on the date of the manufacture of the 
                vehicle.''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to property placed in service after December 31, 
        2008, in taxable years beginning after such date.
    (d) Credit With Respect to Low-Speed Vehicles.--
            (1) In general.--Subsection (e) of section 30D is amended 
        by adding at the end the following new paragraph:
            ``(11) Special rules for low-speed vehicles.--In the case 
        of a low-speed vehicle which meets the requirements of section 
        571.500 of title 49, Code of Federal Regulations--
                    ``(A) subparagraph (A) of subsection (a)(2) shall 
                be applied with respect low-speed vehicles by 
                substituting `$1,250' for `$2,500',
                    ``(B) subparagraph (B) of subsection (a)(2) shall 
                be applied with respect to low-speed vehicles by 
                substituting `$100 for each half kilowatt hour' for 
                `$417 for each kilowatt hour',
                    ``(C) subparagraph (A) of subsection (b)(1) shall 
                be applied with respect to low-speed vehicles by 
                substituting `$3,750' for `$7,500',
                    ``(D) the limitation provided in subsection (b)(2) 
                shall be applied separately with respect to low-speed 
                vehicles and with respect to other motor vehicles, and 
                in applying such limitation to low-speed vehicles, 
                `50,000' shall be substituted for `500,000', and
                    ``(E) subsection (c)(3) shall not apply with 
                respect to low-speed vehicles.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to property placed in service after December 31, 
        2008, in taxable years beginning after such date.

SEC. 403. TRANSPORTATION SECTOR ELECTRIFICATION PROGRAMS.

    (a) Out of any sums in the Treasury of the United States not 
otherwise appropriated, $600,000,000 is appropriated for expenses 
necessary to implement the programs authorized under section 131(b) of 
the Energy Independence and Security Act of 2007 (42 U.S.C. 17011(b)). 
Such sums shall remain available until expended.
    (b) Out of any sums in the Treasury of the United States not 
otherwise appropriated, $600,000,000 is appropriated for expenses 
necessary to implement the programs authorized under section 131(c) of 
the Energy Independence and Security Act of 2007 (42 U.S.C. 17011(c)). 
Such sums shall remain available until expended.

SEC. 404. ENERGY STORAGE COMPETITIVENESS.

    Out of any sums in the Treasury of the United States not otherwise 
appropriated, $1,800,000,000 is appropriated for expenses necessary to 
implement the programs authorized under section 641 of the Energy 
Independence and Security Act of 2007 (42 U.S.C. 17231). Such sums 
shall remain available until expended.

SEC. 405. ADVANCED BATTERY MANUFACTURING.

    Out of any sums in the Treasury of the United States not otherwise 
appropriated, $1,000,000,000 is appropriated for expenses necessary for 
the manufacturing of advanced batteries authorized under section 
136(b)(1)(B) of the Energy Independence and Security Act of 2007 (42 
U.S.C. 17013(b)(1)(B)). Such sums shall remain available until 
expended.

SEC. 406. EXTENSION OF CREDITS FOR BIODIESEL AND RENEWABLE DIESEL.

    Sections 40A(g), 6426(c)(6), and 6427(e)(6)(B) are each amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2010''.

SEC. 407. EXPANSION AND EXTENSION OF ELECTRIC AND ALTERNATIVE FUEL 
              VEHICLE REFUELING PROPERTY CREDIT.

    (a) Expansion.--
            (1) In general.--Section 30C is amended--
                    (A) by striking ``30 percent'' in subsection (a) 
                and inserting ``50 percent'', and
                    (B) by striking ``$30,000'' in subsection (b)(1) 
                and inserting ``$50,000''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to property placed in service after the date of the 
        enactment of this Act, in taxable years ending after such date.
    (b) Extension.--Subsection (g) of section 30C is amended to read as 
follows:
    ``(g) Termination.--This section shall not apply to any property 
placed in service after December 31, 2014.''.

                 TITLE V--ENERGY EFFICIENCY INVESTMENTS

SEC. 501. MODIFICATION OF CREDIT FOR RESIDENTIAL ENERGY EFFICIENT 
              PROPERTY.

    (a) Increase in Credit Percentage.--Section 25D(a) is amended by 
striking ``30 percent'' each place it appears and inserting ``50 
percent''.
    (b) Credit for Qualified Energy Storage Air Conditioner Property 
Installed in a Principal Residence.--
            (1) In general.--Section 25D(a), as amended by subsection 
        (a), is amended by striking ``and'' at the end of paragraph 
        (4), by striking the period at the end of paragraph (5) and 
        inserting ``, and'', and by adding at the end the following new 
        paragraph:
            ``(6) 50 percent of the qualified energy storage air 
        conditioner property expenditures made by the taxpayer during 
        such year.''.
            (2) Qualified energy storage air conditioner property 
        expenditure.--Section 25D(d) is amended by adding at the end 
        the following new paragraph:
            ``(6) Qualified energy storage air conditioner property 
        expenditure.--The term `qualified energy storage air 
        conditioner property expenditure' means an expenditure for 
        qualified energy storage air conditioner property (as defined 
        in section 48(c)(5)) installed on or in connection with a 
        dwelling unit located in the United States and used as a 
        principal residence (within the meaning of section 121) by the 
        taxpayer.''.
            (3) Modification of maximum credit.--
                    (A) In general.--Paragraph (1) of section 25D(b) is 
                amended by striking ``and'' at the end of subparagraph 
                (C), by striking the period at the end of subparagraph 
                (D) and inserting ``, and'', and by adding at the end 
                the following new subparagraph:
                    ``(E) $500 with respect to each half kilowatt of 
                peak demand reduction (as defined in section 48(c)(5)) 
                of qualified energy storage air conditioner property 
                (as defined in section 48(c)(5)) for which qualified 
                energy storage air conditioner expenditures are 
                made.''.
                    (B) Conforming amendments.--
                            (i) Subparagraph (A) of section 25D(e)(4) 
                        is amended by striking ``and'' at the end of 
                        clause (iii), by striking the period at the end 
                        of clause (iv) and inserting ``, and'', and by 
                        adding at the end the following new clause:
                            ``(v) $1,667 in the case of each half 
                        kilowatt of peak demand reduction (as defined 
                        in section 48(c)(5)) of qualified energy 
                        storage air conditioner property (as defined in 
                        section 48(c)(5)) for which qualified energy 
                        storage air conditioner expenditures are 
                        made.''.
                            (ii) Subparagraph (C) of section 25D(e)(4) 
                        is amended by striking ``paragraphs (1), (2), 
                        and (3)'' and inserting ``paragraphs (1), (3), 
                        (4), (5), and (6)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2008, in taxable 
years ending after such date.

SEC. 502. BUSINESS CREDIT FOR QUALIFIED ENERGY STORAGE AIR CONDITIONER 
              PROPERTY.

    (a) In General.--Subparagraph (A) of section 48(a)(3) is amended by 
deleting ``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 energy storage air 
                        conditioner property but only with respect to 
                        periods ending before January 1, 2017,''.
    (b) 30 Percent Credit.--Clause (i) of section 48(a)(2)(A) is 
amended by striking ``and'' at the end of subclause (III) and by 
inserting after subclause (IV) the following new subclause:
                                    ``(V) qualified energy storage air 
                                conditioner property, and''.
    (c) Qualified Energy Storage Air Conditioner Property.--Section 
48(c) is amended by adding at the end the following new paragraph:
            ``(5) Qualified energy storage air conditioner property.--
        For the purposes of this section--
                    ``(A) In general.--The term `qualified energy 
                storage air conditioner property' means a cooling 
                system which--
                            ``(i) consists of thermal storage or ice 
                        storage components which create, store, and 
                        supply cooling energy to reduce peak 
                        electricity demand by displacing the daytime 
                        peak electrical demand of conventional 
                        mechanical cooling equipment,
                            ``(ii) has a nameplate operational 
                        capability to deliver a minimum of 29,000 Btu 
                        and a maximum of 240,000 Btu of cooling 
                        capacity,
                            ``(iii) is designed to deliver such cooling 
                        capacity for a minimum continuous period of 3 
                        hours, available daily from May 1 through 
                        September 30, coincident with daytime peak load 
                        periods,
                            ``(iv) is designed so as to reduce peak 
                        kilowatt demand by 90 percent for the cooling 
                        load served, and
                            ``(v) is designed so as not to exceed the 
                        24 hour energy consumption of conventional 
                        cooling equipment by more than 10 percent.
                    ``(B) Inclusion of related equipment.--Such term 
                shall include any secondary components which integrate 
                the cooling system described in paragraph (1) with the 
                conventional cooling system, including equipment and 
                controls for measuring and reporting operation and 
                performance, but shall not include any portion of the 
                conventional cooling system.
                    ``(C) Limitation.--
                            ``(i) In general.--In the case of qualified 
                        energy storage air conditioner property placed 
                        in service during the taxable year, the credit 
                        otherwise determined under this section for 
                        such year with respect to such property shall 
                        not exceed an amount equal to $500 for each 0.5 
                        kilowatt of peak demand reduction of such 
                        property.
                            ``(ii) Peak demand reduction.--For purposes 
                        of this subsection, the term `peak demand 
                        reduction' means the removal of electrical 
                        demand (kW) on the utility grid system during 
                        the daily time period of high electrical 
                        demand. The peak demand reduction shall be 
                        determined based on Energy Efficiency Ratio 
                        (EER) standards for residential and commercial 
                        air conditioning equipment, established under 
                        the Energy Policy and Conservation Act of 
                        1975.''.
    (d) Conforming Amendment.--Section 48(a)(1) is amended by striking 
``and (3)(B)'' and inserting ``(3)(B), (4)(B), and (5)(C)''.
    (e) Effective Date.--The amendments made by this section shall 
apply to periods after December 31, 2008, under rules similar to the 
rules of section 48(m) of the Internal Revenue Code of 1986 (as in 
effect before the date of the enactment of the Revenue Reconciliation 
Act of 1990).

SEC. 503. EXTENSION AND MODIFICATION OF NEW ENERGY EFFICIENT HOME 
              CREDIT.

    (a) Extension.--Subsection (g) of section 45L (relating to 
termination) is amended by striking ``December 31, 2009'' and inserting 
``December 31, 2012''.
    (b) Increase.--Paragraph (2)(A) of section 45L(a) (relating to 
allowance of credit) is amended by striking ``$2,000'' and inserting 
``$4,000''.
    (c) Effective Date.--The amendments made by this section shall 
apply to homes constructed and acquired after December 31, 2008.

SEC. 504. EXTENSION AND MODIFICATION OF DEDUCTION FOR ENERGY EFFICIENT 
              COMMERCIAL BUILDINGS.

    (a) Increase in Maximum Amount of Deduction.--
            (1) In general.--Subparagraph (A) of section 179D(b)(1) is 
        amended by striking ``$1.80'' and inserting ``$2.25''.
            (2) Partial allowance.--Paragraph (1) of section 179D(d) is 
        amended--
                    (A) by striking ``$.60'' and inserting ``$.75'', 
                and
                    (B) by striking ``$1.80'' and inserting ``$2.25''.
    (b) Effective Date.--The amendments made by this section shall 
apply to property placed in service in taxable years beginning after 
the date of the enactment of this Act.

SEC. 505. EXTENSION AND MODIFICATION OF NONBUSINESS ENERGY PROPERTY.

    (a) Extension.--Subsection (g)(2) of section 25C (relating to 
termination) is amended by striking ``December 31, 2009'' and inserting 
``December 31, 2010''.
    (b) Increase in Taxpayer Limitation.--Paragraph (1) of section 
25C(b) is amended by striking ``$500'' and inserting ``$2,000''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2008.

SEC. 506. TAX CREDITS FOR GREEN ROOFS.

    (a) Green Roofs Eligible for Energy Credit.--
            (1) In general.--Subparagraph (A) of section 48(a)(3), as 
        amended by section 502, is amended by striking ``or'' at the 
        end of clause (vii), by striking the period at the end of 
        clause (viii) and inserting ``, or'', and by adding at the end 
        the following new clause:
                            ``(ix) a qualified green roof (as defined 
                        in section 25D(d)(7)(B)).''.
            (2) 30 percent credit.--Clause (i) of section 48(a)(2)(A), 
        as amended by section 502, is amended by striking ``and'' at 
        the end of subclause (IV) and by inserting after subclause (V) 
        the following new subclause:
                                    ``(VI) qualified green roof (as 
                                defined in section 25D(d)(7)(B)), 
                                and''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to periods after December 31, 2009, under rules 
        similar to the rules of section 48(m) of the Internal Revenue 
        Code of 1986 (as in effect before the date of the enactment of 
        the Revenue Reconciliation Act of 1990).
    (b) Credit for Residential Green Roofs.--
            (1) In general.--
                    (A) Allowance of credit.--Section 25D(a) (relating 
                to allowance of credit), as amended by section 501, is 
                amended by striking ``and'' at the end of paragraph 
                (5), by striking the period at the end of paragraph (6) 
                and inserting ``, and'', and by adding at the end the 
                following new paragraph:
            ``(7) 30 percent of the qualified green roof property 
        expenditures made by the taxpayer during such year.''.
                    (B) Limitation.--Section 25D(b) (relating to 
                limitations), as amended by section 501, is amended--
                            (i) by striking ``and'' at the end of 
                        paragraph (1)(D), by striking the period at the 
                        end of paragraph (1)(E) and inserting ``, 
                        and'', and by adding at the end of paragraph 
                        (1) the following new subparagraph:
                    ``(F) $5,000 with respect to any qualified green 
                roof property expenditures.'', and
                            (ii) by adding at the end the following new 
                        paragraph:
            ``(3) Certification for green roof property.--No credit 
        shall be allowed under this section for an item of property 
        described in subsection (d)(7), unless the taxpayer certifies 
        that--
                    ``(A) such taxpayer has received all required 
                permits and approvals to construct the green roof,
                    ``(B) such roof is designed and constructed by 
                licensed design professionals, consultants and 
                contractors under applicable building codes and 
                appropriate licensing laws, and
                    ``(C) such taxpayer has received a written analysis 
                confirming that--
                            ``(i) the structural capacity of the roof 
                        would support the proposed green roof, and
                            ``(ii) the condition of the roof is 
                        satisfactory for green roof construction and 
                        there is appropriate safe access to the roof 
                        for maintenance purposes.''.
                    (C) Qualified green roof property expenditures.--
                Section 25D(d) (relating to definitions), as amended by 
                section 501, is amended by adding at the end the 
                following new paragraph:
            ``(7) Qualified green roof property expenditure.--
                    ``(A) In general.--The term `qualified green roof 
                property expenditure' means an expenditure described in 
                subparagraph (B) for a qualified green roof which is 
                installed on a building located in the United States 
                and used as a residence by the taxpayer.
                    ``(B) Expenditures described.--An expenditure 
                described in this subparagraph is an expenditure for--
                            ``(i) design and construction services,
                            ``(ii) permit process expenses,
                            ``(iii) structural analysis,
                            ``(iv) design, construction, materials, and 
                        installation of irrigation systems plans,
                            ``(v) design, construction, materials, and 
                        installation of waterproofing,
                            ``(vi) purchase and installation of growing 
                        media, vegetation, and other green roof matter,
                            ``(vii) leak detection systems and membrane 
                        protection and quality control,
                            ``(viii) design, assembly, and original 
                        installation,
                            ``(ix) labor costs properly allocable to 
                        on-site preparation, and
                            ``(x) monitoring and maintenance activities 
                        until vegetation is established, including 
                        monitoring and maintenance plan for the system 
                        once established for the life of the green roof 
                        system.
                    ``(C) Qualified green roof.--The term `qualified 
                green roof' means any green roof at least 50 percent of 
                which is a vegetated green roof system constructed 
                under building code ASTM standards, where applicable. 
                Such term includes any retrofit or new construction 
                green roof.
                    ``(D) Green roof.--The term `green roof' means any 
                roof which consists of vegetation and soil, or a 
                growing medium with a minimum 3 inch depth, planted 
                over a waterproofing membrane and its associated 
                components, such as a protection course, a root 
                barrier, a drainage layer, or thermal insulation and an 
                aeration layer.''.
                    (D) Maximum expenditures in case of joint 
                occupancy.--
                            (i) In general.--Section 25D(e)(4)(A) 
                        (relating to maximum expenditures), as amended 
                        by section 501, is amended by striking ``and'' 
                        at the end of clause (iv), by striking the 
                        period at the end of clause (v) and inserting 
                        ``, and'', and by adding at the end the 
                        following new clause:
                            ``(vi) $1,667 in the case of any qualified 
                        green roof property expenditures.''.
                            (ii) Conforming amendment.--Subparagraph 
                        (C) of section 25D(e)(4), as amended by section 
                        501, is amended by striking ``and (6)'' and 
                        inserting ``(6), and (7)''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to property placed in service after December 31, 
        2008, in taxable years ending after such date.

SEC. 507. REPEAL OF CERTAIN LIMITATIONS ON CREDIT FOR RENEWABLE ENERGY 
              PROPERTY.

    (a) Repeal of Limitation on Credit for Qualified Small Wind Energy 
Property.--Paragraph (4) of section 48(c) is amended by striking 
subparagraph (B) and by redesignating subparagraphs (C) and (D) as 
subparagraphs (B) and (C), respectively.
    (b) Repeal of Limitation on Property Financed by Subsidized Energy 
Financing.--
            (1) In general.--Subsection (a) of section 48 is amended by 
        striking paragraph (4).
            (2) Conforming amendments.--
                    (A) Section 25C(e)(1) is amended by striking 
                ```(8), and (9)''' and inserting ```and (8)'''.
                    (B) Section 25D(e) is amended by striking paragraph 
                (9).
    (c) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendment made by this section shall apply to periods after 
        December 31, 2008, 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) Conforming amendments.--The amendments made by 
        subsection (b)(2) shall apply to taxable years beginning after 
        December 31, 2008.

SEC. 508. ENERGY EFFICIENT APPLIANCE REBATE PROGRAM AND ENERGY STAR.

    Out of any sums in the Treasury of the United States not otherwise 
appropriated, $300,000,000 is appropriated for expenses necessary to 
implement the program authorized under section 124 of the Energy Policy 
Act of 2005 (42 U.S.C. 15821) and the Energy Star program. Such sums 
shall remain available until expended.
                                 <all>