Home and Farm Wind Energy Systems Act of 2006 - Amends the Internal Revenue Code to allow a tax credit for 30% (10% after December 31, 2015) of the cost of installing qualified wind energy property. Defines "qualified wind energy property" as an electricity-generating wind turbine of 100 kilowatts of rated capacity or less which is installed in a dwelling unit or other property located in the United States and which meets the latest rating standards published by the American Wind Energy Association.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4716 Introduced in House (IH)]
109th CONGRESS
2d Session
H. R. 4716
To amend the Internal Revenue Code of 1986 to provide credits for
individuals and businesses for the installation of certain wind energy
property.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 8, 2006
Mr. Cole of Oklahoma (for himself, Mr. Rehberg, Mr. Goode, Mr. Udall of
Colorado, Mr. Conaway, Mr. Sanders, Mr. Case, Mr. Gillmor, and Mr.
Lucas) 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 provide credits for
individuals and businesses for the installation of certain wind energy
property.
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 ``Home and Farm Wind Energy Systems
Act of 2006''.
SEC. 2. CREDIT FOR WIND ENERGY PROPERTY INSTALLED IN RESIDENCES AND
BUSINESSES.
(a) In General.--Subpart B of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 30A the following new section:
``SEC. 30E. WIND ENERGY PROPERTY.
``(a) Allowance of Credit.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year an amount
equal to 30 percent (10 percent after December 31, 2015) of the amount
paid or incurred by the taxpayer for qualified wind energy property
placed in service or installed during such taxable year.
``(b) Limitation.--No credit shall be allowed under subsection (a)
unless at least 50 percent of the energy produced annually by the
qualified wind energy property is consumed on the site on which the
property is placed in service or installed.
``(c) Qualified Wind Energy Property.--For purposes of this
section, the term `qualified wind energy property' means a qualifying
wind turbine if--
``(1) such turbine is placed in service or installed on or
in connection with property located in the United States,
``(2) in the case of an individual, the property on or in
connection with which such turbine is installed is a dwelling
unit which is located in the United States,
``(3) the original use of such turbine commences with the
taxpayer, and
``(4) such turbine carries at least a 5-year limited
warranty covering defects in design, material, or workmanship,
and, for property that is not installed by the taxpayer, at
least a 5-year limited warranty covering defects in
installation.
``(d) Other Definitions.--For purposes of this section--
``(1) Qualifying wind turbine.--The term `qualifying wind
turbine' means a wind turbine of 100 kilowatts of rated
capacity or less which meets the latest performance rating
standards published by the American Wind Energy Association and
which is used to generate electricity.
``(2) Principal residence.--The term `principal residence'
shall have the same meaning as when used in section 121.
``(e) Limitation Based on Amount of Tax.--
``(1) In general.--The credit allowed under subsection (a)
for any 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 this
part (other than under this section and subpart C
thereof, relating to refundable credits) and section
1397E.
``(2) Carryover of unused credit.--If the credit allowable
under subsection (a) exceeds the limitation imposed by
paragraph (1) 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 taxable year.
``(f) Special Rules.--For purposes of this section--
``(1) Tenant-stockholder in cooperative housing
corporation.--In the case of an individual who is a tenant-
stockholder (as defined in section 216(b)(2)) in a cooperative
housing corporation (as defined in section 216(b)(1)), such
individual shall be treated as having paid his tenant-
stockholder's proportionate share (as defined in section
216(b)(3)) of any expenditures paid or incurred for qualified
wind energy property by such corporation, and such credit shall
be allocated appropriately to such individual.
``(2) 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 he owns, such
individual shall be treated as having paid his
proportionate share of expenditures paid or incurred
for qualified wind energy property by such association,
and such credit shall be allocated appropriately to
such individual.
``(B) Condominium management association.--For
purposes of this paragraph, the term `condominium
management association' means an organization which
meets the requirements of section 528(c)(2) with
respect to a condominium project of which substantially
all of the units are used by individuals as residences.
``(g) Basis Adjustment.--For purposes of this subtitle, if a credit
is allowed under this section for any expenditure with respect to a
residence or other property, the basis of such residence or other
property shall be reduced by the amount of the credit so allowed.
``(h) Application of Credit.--The credit allowed under this section
shall apply to property placed in service or installed after December
31, 2005.''.
(b) Conforming Amendment.--Subsection (a) of section 1016 of such
Code (relating to general rule for adjustments to basis) 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 new paragraph:
``(38) in the case of a residence or other property with
respect to which a credit was allowed under section 30E, to the
extent provided in section 30E(g).''.
(c) Clerical Amendment.--The table of sections for subpart B of
part IV of subchapter A of chapter 1 of such Code is amended by
inserting after the item relating to section 30D the following new
item:
``Sec. 30E. Wind energy property.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years ending after December 31, 2005.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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