SUN Act

Solar Uniting Neighborhoods Act of 2010 or the SUN Act - Amends the Internal Revenue Code, with respect to the tax credit for residential energy efficient property, to permit solar electric property otherwise eligible for such credit to be located on a site apart from the dwelling unit for which the electricity generated from such property is used. Limits the annual amount of such credit with respect to off-site solar electric property to $50,000.

[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5464 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 5464

   To amend the Internal Revenue Code of 1986 to provide that solar 
 electric property need not be located on the property with respect to 
    which it is generating electricity in order to qualify for the 
             residential energy efficient property credit.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 28, 2010

Ms. Giffords (for herself, Mr. Blumenauer, Mr. Thompson of California, 
 Mr. Polis of Colorado, Mr. Lujan, Ms. Hirono, Mr. Garamendi, Mr. Wu, 
 and Mrs. Bono Mack) 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 that solar 
 electric property need not be located on the property with respect to 
    which it is generating electricity in order to qualify for the 
             residential energy efficient property credit.

    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 ``Solar Uniting Neighborhoods Act of 
2010'' or the ``SUN Act''.

SEC. 2. MODIFICATION OF CREDIT FOR RESIDENTIAL ENERGY EFFICIENT 
              PROPERTY.

    (a) Clarification With Respect to Location of Solar Electric 
Property.--Section 25D(d)(2) of the Internal Revenue Code of 1986 is 
amended--
            (1) by striking ``The term'' and inserting the following:
                    ``(A) In general.--The term'', and
            (2) by adding at the end the following new subparagraph:
                    ``(B) Off-site property.--
                            ``(i) In general.--Such term shall include 
                        an expenditure for qualified property described 
                        in subparagraph (A) notwithstanding--
                                    ``(I) whether such qualified 
                                property is located on the same site as 
                                the dwelling unit for which the 
                                electricity generated from such 
                                property is used, and
                                    ``(II) whether the electricity 
                                generated by the qualified property 
                                enters the electrical grid, so long as 
                                such electricity enters the grid at any 
                                point located in the same State within 
                                which such dwelling unit is connected.
                            ``(ii) Qualified property.--For purposes of 
                        this subparagraph, the term `qualified 
                        property' means property--
                                    ``(I) which is not used in a trade 
                                or business, and
                                    ``(II) the electricity generated 
                                from which does not give rise to income 
                                for the taxable year (or any taxable 
                                year in the recapture period) in excess 
                                of amounts that would otherwise be 
                                charged to such taxpayer for 
                                electricity used at the taxpayer's 
                                residence during the year.
                            ``(iii) Recapture.--
                                    ``(I) In general.--The Secretary 
                                may provide for the recapture of the 
                                credit under this subsection with 
                                respect to any property described in 
                                this subparagraph which ceases to be 
                                qualified property during the recapture 
                                period.
                                    ``(II) Recapture period.--For 
                                purposes of this subparagraph, the 
                                recapture period with respect to any 
                                qualified property is the first 5 
                                taxable years beginning after the 
                                taxable year for which a credit is 
                                allowed under this section with respect 
                                to such property.''.
    (b) Limitation With Respect to Off-Site Solar Electric Property.--
Subsection (b) of section 25D of such Code is amended by adding at the 
end the following new paragraph:
            ``(3) Maximum credit for off-site solar electric 
        property.--In the case of any qualified solar electric property 
        expenditure with respect to property not located on the same 
        site as the dwelling unit, the credit allowed under subsection 
        (a) (determined without regard to subsection (c)) for any 
        taxable year shall not exceed $50,000.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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