Clean and Green Renewable Energy Tax Credit Act of 2007 - Amends the Internal Revenue Code to: (1) extend through 2030 the tax credits for investment in solar energy and qualified fuel cell property; (2) modify the percentage rate for the energy tax credit; (3) extend through 2016 the tax credit for residential energy efficient property expenditures; (4) allow accelerated depreciation of solar energy and fuel cell property; (5) extend through 2013 the tax credit for electricity produced from certain renewable resources; (6) allow an energy tax credit and a residential energy efficient property tax credit for certain equipment which uses wind to generate energy; and (7) extend through 2009 the tax credit for nonbusiness energy property expenditures.
[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1596 Introduced in House (IH)]
110th CONGRESS
1st Session
H. R. 1596
To amend the Internal Revenue Code of 1986 to provide and extend tax
incentives for renewable energy and conservation.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 20, 2007
Mr. Ferguson (for himself, Mr. Kuhl of New York, Mr. Reichert, Mr.
Burton of Indiana, and Ms. Ginny Brown-Waite of Florida) 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 and extend tax
incentives for renewable energy and conservation.
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 ``Clean and Green Renewable Energy Tax
Credit 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 ``2009'' and inserting ``2031''.
(b) Eligible Fuel Cell Property.--Paragraph (1)(E) of section 48(c)
of such Code is amended by striking ``2008'' and inserting ``2030''.
(c) Modification of Energy Percentage.--
(1) In general.--Clause (i) of section 48(a)(2)(A) of such
Code is amended by striking ``30 percent'' and inserting ``the
applicable percentage''.
(2) Applicable percentage.--Paragraph (2) of section 48(a)
of such Code is amended by adding at the end the following new
subparagraph:
``(C) Applicable percentage.--For purposes of this
paragraph, the term `applicable percentage' means--
``(i) 30 percent in the case of any taxable
year beginning after December 31, 2006, and
before January 1, 2016,
``(ii) 25 percent in the case of any
taxable year beginning after December 31, 2015,
and before January 1, 2022, and
``(iii) 20 percent in the case of any
taxable year beginning after December 31,
2021.''.
(d) 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,''.
(e) 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 but only with
respect to periods ending before January 1,
2031,''.
(f) 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''.
(g) Credit Allowed Against the Alternative Minimum Tax.--Section
38(c)(4)(B) of such Code (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 which is attributable to the energy
credit determined under section 48.''.
(h) Effective Dates.--The amendments made by this section shall
apply to property placed in service in taxable years beginning 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
``2009'' 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.--Subparagraph (A) of section
25D(b)(1) of such Code is amended to read as follows:
``(A) $1,500 with respect to each half kilowatt of
installed capacity of property described in subsection
(d)(2) for which qualified solar electric 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 such Code (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.
SEC. 5. 5-YEAR EXTENSION OF CREDIT FOR ELECTRICITY PRODUCED FROM
CERTAIN RENEWABLE RESOURCES.
Section 45(d) of the Internal Revenue Code of 1986 (relating to
qualified facilities) is amended by striking ``2009'' each place it
appears and inserting ``2014''.
SEC. 6. INVESTMENT CREDIT FOR SMALL WIND SYSTEMS.
(a) Energy Credit for Businesses.--
(1) In general.--Subparagraph (A) of section 48(a)(3) of
the Internal Revenue Code of 1986 (relating to energy property)
is amended by striking ``or'' at the end of clause (iii), by
inserting ``or'' at the end of clause (iv), and by adding at
the end the following new clause:
``(v) equipment which uses wind to generate
electricity if such equipment is rated at 100
kW or less,''.
(2) 30 percent credit.--Clause (i) of section 48(a)(2)(A)
of such Code is amended by striking ``and'' at the end of
subclause (II) and by inserting after subclause (III) the
following new subclause:
``(IV) energy property described in
paragraph (3)(A)(v), and''.
(b) Residential Energy Efficient Property Credit for Individuals.--
(1) In general.--Subsection (a) of section 25D of such Code
is amended by striking ``and'' at the end of paragraph (2), by
striking the period at the end of paragraph (3) and inserting
``, and'', and by adding at the end the following new
paragraph:
``(4) 30 percent of the qualified small wind system
expenditures made by the taxpayer during the taxable year.''.
(2) Maximum credit.--Paragraph (1) of section 25D(b) of
such Code is amended by striking ``and'' at the end of
paragraph (2), by striking the period at the end of paragraph
(3) and inserting ``, and'', and by adding at the end the
following new paragraph:
``(4) $1,500 with respect to each half kilowatt of
installed capacity of equipment described in subsection (d)(4)
for which qualified small wind system expenditures are made,''.
(3) Qualified small wind system expenditures.--Subsection
(d) of section 25D of such Code is amended by adding at the end
the following new paragraph:
``(4) Qualified small wind system expenditures.--The term
`qualified small wind system expenditures' means an expenditure
for equipment which uses wind to generate electricity for use
in a dwelling unit located in the United States and used as a
residence by the taxpayers if such equipment is rated at 100 kW
or less.''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after December 31, 2006.
SEC. 7. EXTENSION OF CREDIT FOR NONBUSINESS ENERGY PROPERTY.
Subsection (g) of section 25C of the Internal Revenue Code of 1986
is amended by striking ``December 31, 2007'' and inserting ``December
31, 2009''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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