II 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Securing America’s 

5 Energy Independence Act’’. 


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•S 2677 IS

1 SEC. 2. EXTENSION AND MODIFICATION OF INVESTMENT 

2 TAX CREDIT WITH RESPECT TO SOLAR EN3 ERGY PROPERTY AND QUALIFIED FUEL CELL 

4 PROPERTY. 

5 (a) SOLAR ENERGY PROPERTY.—Paragraphs 

6 (2)(A)(i)(II) and (3)(A)(ii) of section 48(a) of the Internal 

7 Revenue Code of 1986 are each amended by striking 

8 ‘‘2008’’ and inserting ‘‘2016’’. 

9 (b) ELIGIBLE FUEL CELL PROPERTY.—Paragraph 

10 (1)(E) of section 48(c) of the Internal Revenue Code of 

11 1986 is amended by striking ‘‘2007’’ and inserting 

12 ‘‘2015’’. 

13 (c) CREDITS ALLOWED AGAINST THE ALTERNATIVE

14 MINIMUM TAX.—Section 38(c)(4)(B) of the Internal Rev15 enue Code of 1986 (defining specified credits) is amended 

16 by striking the period at the end of clause (ii)(II) and in17 serting ‘‘, and’’, and by adding at the end the following 

18 new clause: 

19 ‘‘(iii) the portion of the investment 

20 credit under section 46(2) as determined 

21 under section 48(a)(2)(A)(i).’’. 


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•S 2677 IS

1 SEC. 3. EXTENSION AND MODIFICATION OF CREDIT FOR 

2 RESIDENTIAL ENERGY EFFICIENT PROP3 ERTY. 

4 (a) EXTENSION.—Section 25D of the Internal Rev5 enue Code of 1986 (relating to termination) is amended 

6 by striking ‘‘2007’’ and inserting ‘‘2015’’. 

7 (b) MODIFICATION OF MAXIMUM CREDIT.—Para8 graph (1) of section 25D(b) of the Internal Revenue Code 

9 of 1986 (relating to limitations) is amended to read as 

10 follows: 

11 ‘‘(1) MAXIMUM CREDIT.—The credit allowed 

12 under subsection (a) for any taxable year shall not 

13 exceed— 

14 ‘‘(A) $1,000 with respect to each half kilo15 watt of capacity of qualified photovoltaic prop16 erty for which qualified photovoltaic property 

17 expenditures are made, 

18 ‘‘(B) $2,000 with respect to any qualified 

19 solar water heating property expenditures, and 

20 ‘‘(C) $500 with respect to each half kilo21 watt of capacity of qualified fuel cell property 

22 (as defined in section 48(c)(1)) for which quali23 fied fuel cell property expenditures are made.’’. 

24 (c) CREDIT ALLOWED AGAINST ALTERNATIVE MIN25 IMUM TAX.— 


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1 (1) IN GENERAL.—Section 25D(b) of the Inter2 nal Revenue Code of 1986 (as amended by sub3 section (b)) is amended by adding at the end the fol4 lowing new paragraph: 

5 ‘‘(3) CREDIT ALLOWED AGAINST ALTERNATIVE

6 MINIMUM TAX.—The credit allowed under subsection 

7 (a) for the taxable year shall not exceed the excess 

8 of— 

9 ‘‘(A) the sum of the regular tax liability 

10 (as defined in section 26(b)) plus the tax im11 posed by section 55, over 

12 ‘‘(B) the sum of the credits allowable 

13 under subpart A of part IV of subchapter A 

14 and section 27 for the taxable year.’’. 

15 (2) CONFORMING AMENDMENT.—Subsection (c) 

16 of section 25D of such Code is amended to read as 

17 follows: 

18 ‘‘(c) CARRYFORWARD OF UNUSED CREDIT.—If the 

19 credit allowable under subsection (a) for any taxable year 

20 exceeds the limitation imposed by subsection (b)(3) for 

21 such taxable year, such excess shall be carried to the suc22 ceeding taxable year and added to the credit allowable 

23 under subsection (a) for such succeeding taxable year.’’. 


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•S 2677 IS

1 (d) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years beginning after 

3 December 31, 2006. 

Æ 


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