Securing America's Energy Independence Act

Securing America's Energy Independence Act of 2006 - Amends the Internal Revenue Code to extend through 2015: (1) the investment tax credit for solar energy property and qualified fuel cell property; and (2) the tax credit for residential photovoltaic, solar water heating, and fuel cell property expenditures. Modifies the maximum amounts for such residential credits based upon kilowatt of capacity.

Allows such credits to be taken against the alternative minimum tax.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2677 Introduced in Senate (IS)]








109th CONGRESS
  2d Session
                                S. 2677

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 SENATE OF THE UNITED STATES

                             April 27, 2006

  Mr. Smith (for himself, Mr. Menendez, Mr. Lieberman, Ms. Snowe, Mr. 
   Jeffords, Mr. Kerry, Ms. Cantwell, Mr. Salazar, and Mrs. Clinton) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 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''.

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 ``2016''.
    (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 ``2015''.
    (c) 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 
                        section 48(a)(2)(A)(i).''.

SEC. 3. EXTENSION AND MODIFICATION OF CREDIT FOR RESIDENTIAL ENERGY 
              EFFICIENT PROPERTY.

    (a) Extension.--Section 25D of the Internal Revenue Code of 1986 
(relating to termination) is amended by striking ``2007'' and inserting 
``2015''.
    (b) 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) $1,000 with respect to each half kilowatt of 
                capacity of qualified photovoltaic property for which 
                qualified photovoltaic 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.''.
    (c) 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 and section 27 for 
                the taxable year.''.
            (2) Conforming amendment.--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.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2006.
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