Amends the Internal Revenue Code to allow a tax credit for qualified fuel cell property. Limits the amount of such credit to 30 percent (10 percent for other energy property) of the basis of such fuel cell property up to a maximum of $500 for each 0.5 kilowatt of capacity of such property. Defines "qualified fuel cell property" as a fuel cell power plant which generates at least 0.5 kilowatt of electricity using an electrochemical process.
Allows a similar tax credit for the installation of qualified fuel cell property in a principal residence. Terminates both tax credits after December 31, 2009.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1397 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 1397
To amend the Internal Revenue Code of 1986 to allow a credit against
income tax for certain energy-efficient property.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 17, 2005
Mrs. Johnson of Connecticut (for herself, Mr. McNulty, and Mr. Larson
of Connecticut) 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 allow a credit against
income tax for certain energy-efficient property.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. CREDIT FOR BUSINESS INSTALLATION OF QUALIFIED FUEL CELLS.
(a) In General.--Section 48(a)(3)(A) of the Internal Revenue Code
of 1986 (defining energy property) is amended by striking ``or'' at the
end of clause (i), by adding ``or'' at the end of clause (ii), and by
inserting after clause (ii) the following new clause:
``(iii) qualified fuel cell property,''.
(b) Qualified Fuel Cell Property.--Section 48 of such Code
(relating to energy credit) is amended by adding at the end the
following new subsection:
``(c) Qualified Fuel Cell Property.--For purposes of subsection
(a)(3)(A)(iii)--
``(1) In general.--The term `qualified fuel cell property'
means a fuel cell power plant which generates at least 0.5
kilowatt of electricity using an electrochemical process.
``(2) Limitation.--The energy credit with respect to any
qualified fuel cell property shall not exceed an amount equal
to $500 for each 0.5 kilowatt of capacity of such property.
``(3) Fuel cell power plant.--The term `fuel cell power
plant' means an integrated system, comprised of a fuel cell
stack assembly and associated balance of plant components,
which converts a fuel into electricity using electrochemical
means.
``(4) Termination.--The term `qualified fuel cell property'
shall not include any property placed in service after December
31, 2009.''.
(c) Energy Percentage.--Subparagraph (A) of section 48(a)(2) of
such Code (relating to energy percentage) is amended to read as
follows:
``(A) In general.--The energy percentage is--
``(i) in the case of qualified fuel cell
property, 30 percent, and
``(ii) in the case of any other energy
property, 10 percent.''.
(d) Conforming Amendment.--Section 48(a)(1) of such Code is amended
by inserting ``except as provided in subsection (c)(2),'' before ``the
energy''.
(e) Effective Date.--The amendments made by this section shall
apply to periods after December 31, 2004, 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. 2. CREDIT FOR NONBUSINESS INSTALLATION OF QUALIFIED FUEL CELLS.
(a) In General.--Subpart A of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to nonrefundable
personal credits) is amended by inserting after section 25B the
following new section:
``SEC. 25C. NONBUSINESS INSTALLATION OF QUALIFIED FUEL CELLS.
``(a) Allowance of Credit.--In the case of an individual, there
shall be allowed as a credit against the tax imposed by this chapter
for the taxable year an amount equal to the sum of 30 percent of the
qualified fuel cell property expenditures made by the taxpayer during
such year.
``(b) Limitations.--
``(1) Maximum credit.--The credit allowed under subsection
(a) shall not exceed $500 for each 0.5 kilowatt of capacity of
qualified fuel cell property.
``(2) Property standards.--No credit shall be allowed under
this section for an item of property unless--
``(A) the original use of such property commences
with the taxpayer,
``(B) such property reasonably can be expected to
remain in use for at least 5 years,
``(C) such property is installed on or in
connection with a dwelling unit located in the United
States and used as a residence by the taxpayer,
``(D) such property meets the performance and
quality standards (if any) which have been prescribed
by the Secretary by regulations (after consultation
with the Secretary of Energy), and
``(E) such property meets appropriate fire and
electric code requirements.
``(c) Qualified Fuel Cell Property Expenditure.--For purposes of
this section, the term `qualified fuel cell property expenditure' means
an expenditure for any qualified fuel cell property (as defined in
section 48(c)(1)).
``(d) Special Rules.--For purposes of this section--
``(1) Dollar amounts in case of joint occupancy.--In the
case of any dwelling unit which is jointly occupied and used
during any calendar year as a residence by 2 or more
individuals, the following rules shall apply:
``(A) The amount of the credit allowable under
subsection (a) by reason of expenditures made during
such calendar year by any of such individuals with
respect to such dwelling unit shall be determined by
treating all of such individuals as 1 taxpayer whose
taxable year is such calendar year.
``(B) There shall be allowable, with respect to
such expenditures to each of such individuals, a credit
under subsection (a) for the taxable year in which such
calendar year ends in an amount which bears the same
ratio to the amount determined under subparagraph (A)
as the amount of such expenditures made by such
individual during such calendar year bears to the
aggregate of such expenditures made by all of such
individuals during such calendar year.
``(2) Tenant-stockholder in cooperative housing
corporation.--In the case of an individual who is a tenant-
stockholder (as defined in section 216) in a cooperative
housing corporation (as defined in such section), such
individual shall be treated as having made the individual's
tenant-stockholder's proportionate share (as defined in section
216(b)(3)) of any expenditures of such corporation.
``(3) Condominiums.--
``(A) In general.--In the case of an individual who
is a member of a condominium management association
with respect to a condominium which the individual
owns, such individual shall be treated as having made
the individual's proportionate share of any
expenditures of such association.
``(B) Condominium management association.--For
purposes of this paragraph, the term `condominium
management association' means an organization which
meets the requirements of paragraph (1) of section
528(c) (other than subparagraph (E) thereof) with
respect to a condominium project substantially all of
the units of which are used as residences.
``(4) Allocation in certain cases.--If less than 80 percent
of the use of an item is for nonbusiness purposes, only that
portion of the expenditures for such item which is properly
allocable to use for nonbusiness purposes shall be taken into
account.
``(5) When expenditure made; amount of expenditure.--
``(A) In general.--Except as provided in
subparagraph (B), an expenditure with respect to an
item shall be treated as made when the original
installation of the item is completed.
``(B) Expenditures part of building construction.--
In the case of an expenditure in connection with the
construction or reconstruction of a structure, such
expenditure shall be treated as made when the original
use of the constructed or reconstructed structure by
the taxpayer begins.
``(C) Amount.--The amount of any expenditure shall
be the cost thereof.
``(6) Property financed by subsidized energy financing.--
For purposes of determining the amount of expenditures made by
any individual with respect to any dwelling unit, there shall
not be taken into account expenditures which are made from
subsidized energy financing (as defined in section
48(a)(4)(C)).
``(e) Basis Adjustments.--For purposes of this subtitle, if a
credit is allowed under this section for any expenditure with respect
to any property, the increase in the basis of such property which would
(but for this subsection) result from such expenditure shall be reduced
by the amount of the credit so allowed.
``(f) Termination.--The credit allowed under this section shall not
apply to taxable years beginning after December 31, 2009.''.
(b) Conforming Amendments.--
(1) Section 1016(a) of such Code is amended by striking
``and'' at the end of paragraph (30), by striking the period at
the end of paragraph (31) and inserting ``, and'', and by
adding at the end the following new paragraph:
``(32) to the extent provided in section 25C(e), in the
case of amounts with respect to which a credit has been allowed
under section 25C.''.
(2) The table of sections for subpart A of part IV of
subchapter A of chapter 1 of such Code is amended by inserting
after the item relating to section 25B the following new item:
``Sec. 25C. Nonbusiness installation of qualified fuel cells.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years ending after December 31, 2004.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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