To amend the Internal Revenue Code of 1986 to allow an investment credit for property used to fabricate solar energy property, and for other purposes.

Amends the Internal Revenue Code to allow a 30% energy tax credit for equipment used to fabricate solar energy property.

Amends the American Recovery and Reinvestment Tax Act of 2009 to allow grants in lieu of energy tax credits for equipment used to fabricate solar energy property.

[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4085 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 4085

   To amend the Internal Revenue Code of 1986 to allow an investment 
 credit for property used to fabricate solar energy property, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 17, 2009

  Mr. Thompson of California (for himself, Mr. Doggett, Mr. Camp, Mr. 
Tiberi, Mrs. Bono Mack, Ms. Eshoo, Mr. Honda, Ms. Giffords, Mr. McCaul, 
  Mr. Smith of Texas, Mr. Meeks of New York, Mr. Carter, Ms. Linda T. 
Sanchez of California, Mr. Schauer, and Ms. Zoe Lofgren of California) 
 introduced the following bill; which was referred to the Committee on 
    Ways and Means, and in addition to the Committee on Energy and 
Commerce, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to allow an investment 
 credit for property used to fabricate solar energy 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. INVESTMENT CREDIT FOR EQUIPMENT USED TO FABRICATE SOLAR 
              ENERGY PROPERTY.

    (a) In General.--Subparagraph (A) of section 48(a)(3) of the 
Internal Revenue Code of 1986 (defining energy property) is amended by 
striking ``or'' at the end of clause (vi), by adding ``or'' at the end 
of clause (vii), and inserting after clause (vii) the following new 
clause:
                            ``(viii) equipment used to fabricate 
                        property described in clause (i) or paragraph 
                        (1) or (2) of section 25D(d), including solar 
                        cells and modules that convert sunlight to 
                        electricity, but only with respect to periods 
                        ending before January 1, 2017.''.
    (b) Credit Percentage.--Clause (i) of section 48(a)(2)(A) of such 
Code is amended by striking ``and'' at the end of subclause (III) and 
by inserting after subclause (IV) the following new subclause:
                                    ``(V) energy property described in 
                                paragraph (3)(A)(viii), and''.
    (c) Effective Date.--The amendments made by this section shall 
apply to periods after the date of the enactment of this Act, 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. SOLAR ENERGY PROPERTY FABRICATION EQUIPMENT TREATED AS 
              SPECIFIED ENERGY PROPERTY FOR ENERGY PROPERTY GRANTS IN 
              LIEU OF CREDITS.

    (a) Additional Specified Energy Property.--Paragraph (3) of section 
1603(d) of the American Recovery and Reinvestment Tax Act of 2009 
(relating to grants of specified energy property in lieu of tax 
credits) is amended by striking ``described in clause (i) or (ii)'' and 
inserting ``described in clause (i), (ii) or (viii)''.
    (b) Placed in Service Limitation.--Paragraph (2) of section 1603(a) 
of the American Recovery and Reinvestment Tax Act of 2009 is amended by 
striking ``but only if the construction of such property began during 
2009 or 2010.'' and inserting the following: ``but only if--
                    ``(A) the construction of such property began 
                during 2009 or 2010, or
                    ``(B) in the case of property described in section 
                48(a)(3)(A)(viii) of the Internal Revenue Code of 1986, 
                is acquired by the taxpayer pursuant to a written 
                binding contract which was entered into during 2009 or 
                2010.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect as if included in the enactment of section 1603 of the American 
Recovery and Reinvestment Tax Act of 2009.
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