[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 550 Introduced in House (IH)]
110th CONGRESS
1st Session
H. R. 550
To amend the Internal Revenue Code of 1986 to extend the investment tax
credit with respect to solar energy property and qualified fuel cell
property, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 18, 2007
Mr. McNulty (for himself and Mr. Camp of Michigan) 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 extend the investment tax
credit with respect to solar energy property and qualified fuel cell
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 ``Securing America's Energy
Independence Act of 2007''.
SEC. 2. EXTENSION AND MODIFICATION OF INVESTMENT TAX CREDIT WITH
RESPECT TO SOLAR ENERGY PROPERTY AND QUALIFIED FUEL CELL
PROPERTY.
(a) Solar Energy Property.--Paragraphs (2)(A)(i)(II) and (3)(A)(ii)
of section 48(a) of the Internal Revenue Code of 1986 are each amended
by striking ``2008'' and inserting ``2017''.
(b) Eligible Fuel Cell Property.--Paragraph (1)(E) of section 48(c)
of the Internal Revenue Code of 1986 is amended by striking ``2007''
and inserting ``2016''.
(c) Energy Property to Include Excess Energy Storage Device.--
Clause (i) of section 48(a)(3)(A) of such Code is amended to read as
follows:
``(i) equipment which uses solar energy to
generate electricity, to heat or cool (or
provide hot water for use in) a structure, or
to provide solar process heat, or advanced
energy storage systems installed as an
integrated component of the foregoing,
excepting property used to generate energy for
purposes of heating a swimming pool,''.
(d) Solar Lighting Equipment to Include Solar Hybrid Lighting
Systems.--Clause (ii) of section 48(a)(3)(A) of such Code is amended to
read as follows:
``(ii) equipment which uses solar energy to
illuminate the inside of a structure using
fiber-optic distributed sunlight,''.
(e) Modifications.--
(1) Solar photovoltaic energy property credit determined
solely by kilowatt capacity.--
(A) In general.--Subsection (a) of section 48 of
such Code is amended by redesignating paragraph (4) as
paragraph (5) and by inserting after paragraph (3) the
following new paragraph:
``(4) Special rule for energy credit for solar photovoltaic
energy property.--
``(A) In general.--For purposes of section 46, the
energy credit for any taxable year for solar
photovoltaic energy property described in paragraph
(3)(A)(i) which is used to generate electricity and
which is placed in service during the taxable year is
$1,500 with respect to each half kilowatt of capacity
of such property. Paragraph (2)(A)(ii) shall not apply
to property to which the preceding sentence applies.
``(B) Application of special rules for
rehabilitated or subsidized property.--Rules similar to
the rules of paragraphs (2)(B) and (5) shall apply to
property to which this paragraph applies.''.
(B) Conforming amendment.--Subclause (II) of
section 48(a)(2)(A)(i) of such Code is amended by
striking ``described in paragraph (3)(A)(i)'' and
inserting ``which is described in paragraph (3)(A)(i)
and to which paragraph (4) does not apply''.
(f) Credits Allowed Against the Alternative Minimum Tax.--Section
38(c)(4)(B) of the Internal Revenue Code of 1986 (defining specified
credits) is amended by striking the period at the end of clause
(ii)(II) and inserting ``, and'', and by adding at the end the
following new clause:
``(iii) the portion of the investment
credit under section 46(2) as determined under
clauses (i) and (ii) of section 48(a)(2)(A).''.
(g) Effective Dates.--
(1) Except as provided in paragraph (2), the amendments
made by this section shall take effect on January 1, 2007.
(2) The amendments made by subsection (c) shall apply to
property placed in service after December 31, 2006.
SEC. 3. EXTENSION AND MODIFICATION OF CREDIT FOR RESIDENTIAL ENERGY
EFFICIENT PROPERTY.
(a) Extension.--Subsection (g) of section 25D of the Internal
Revenue Code of 1986 (relating to termination) is amended by striking
``2008'' and inserting ``2016''.
(b) Solar Electric Property.--Paragraph (1) of section 25D(a) of
such Code (relating to allowance of credit) is amended by striking ``30
percent of''.
(c) Modification of Maximum Credit.--Paragraph (1) of section
25D(b) of the Internal Revenue Code of 1986 (relating to limitations)
is amended to read as follows:
``(1) Maximum credit.--The credit allowed under subsection
(a) for any taxable year shall not exceed--
``(A) $1,500 with respect to each half kilowatt of
installed capacity of qualified solar electric property
for which qualified solar electric property
expenditures are made,
``(B) $2,000 with respect to any qualified solar
water heating property expenditures, and
``(C) $500 with respect to each half kilowatt of
capacity of qualified fuel cell property (as defined in
section 48(c)(1)) for which qualified fuel cell
property expenditures are made.''.
(d) Definition of Qualified Solar Water Heating Property
Expenditure.--Paragraph (1) of section 25D(d) of such Code is amended
by striking ``to heat water for use in'' and inserting ``to heat or
cool (or provide hot water for use in)''.
(e) Definition of Qualified Photovoltaic Property Expenditure.--
Paragraph (2) of section 25D(d) of such Code is amended by inserting
``, including advanced energy storage systems installed as an
integrated component of the foregoing'' after ``taxpayer''.
(f) Credit Allowed Against Alternative Minimum Tax.--
(1) In general.--Section 25D(b) of the Internal Revenue
Code of 1986 (as amended by subsection (b)) is amended by
adding at the end the following new paragraph:
``(3) Credit allowed against alternative minimum tax.--The
credit allowed under subsection (a) for the taxable year shall
not exceed the excess of--
``(A) the sum of the regular tax liability (as
defined in section 26(b)) plus the tax imposed by
section 55, over
``(B) the sum of the credits allowable under
subpart A of part IV of subchapter A (other than this
section) and section 27 for the taxable year.''.
(2) Conforming amendments.--
(A) Subsection (c) of section 25D of such Code is
amended to read as follows:
``(c) Carryforward of Unused Credit.--If the credit allowable under
subsection (a) for any taxable year exceeds the limitation imposed by
subsection (b)(3) for such taxable year, such excess shall be carried
to the succeeding taxable year and added to the credit allowable under
subsection (a) for such succeeding taxable year.''.
(B) Section 23(b)(4)(B) of such Code is amended by
inserting ``and section 25D'' after ``this section''.
(C) Section 24(b)(3)(B) of such Code is amended by
striking ``sections 23 and 25B'' and inserting
``sections 23, 25B, and 25D''.
(D) Section 26(a)(1) of such Code is amended by
striking ``and 25B'' and inserting ``25B, and 25D''.
(g) Effective Date.--The amendments made by this section shall
apply to expenditures made in taxable years beginning after December
31, 2006.
SEC. 4. 3-YEAR ACCELERATED DEPRECIATION PERIOD FOR SOLAR ENERGY
PROPERTY AND FUEL CELL PROPERTY.
(a) In General.--Subparagraph (A) of section 168(e)(3) of the
Internal Revenue Code of 1986 is amended by striking ``and'' at the end
of clause (ii), by striking the period at the end of clause (iii) and
inserting a comma, and by inserting after clause (iii) the following
new clause:
``(iv) any property which is described in
clause (i) or (ii) of section 48(a)(3)(A) (or
would be so described if the last sentence of
such section did not apply to such clause), and
``(v) any property which is described in
clause (iv) of section 48(a)(3)(A).''.
(b) Conforming Amendment.--Section 168(e)(3)(B)(vi)(I) of such Code
is amended to read as follows:
``(I) would be described in
subparagraph (A) of section 48(a)(3) if
`wind energy' were substituted for
`solar energy' in clause (i) thereof
and the last sentence of such section
did not apply to such subparagraph,''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after December 31, 2006.
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