I 

111TH CONGRESS 

1ST SESSION H. R. 3919 

To amend the Internal Revenue Code of 1986 to provide for the designation 

of Clean Energy Business Zones and for tax incentives for the construction of, and employment at, energy-efficient buildings and clean energy 

facilities, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 23, 2009 

Mr. MAFFEI (for himself, Mr. MCMAHON, Mr. BARTLETT, and Mr. THOMPSON of California) introduced the following bill; which was referred to the 

Committee on Ways and Means, and in addition to the Committee on 

Small Business, 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 provide 

for the designation of Clean Energy Business Zones and 

for tax incentives for the construction of, and employment at, energy-efficient buildings and clean energy facilities, 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, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Clean Energy Business 

3 Zone Act of 2009’’ and as the ‘‘Clean Energy Empower4 ment Zone Act of 2009’’. 

5 SEC. 2. DESIGNATION OF CLEAN ENERGY BUSINESS ZONES 

6 AND TAX INCENTIVES WITH RESPECT TO 

7 SUCH ZONES. 

8 (a) IN GENERAL.—Chapter 1 of the Internal Rev9 enue Code of 1986 is amended by adding at the end the 

10 following new subchapter: 

11 ‘‘Subchapter Z—Clean Energy Business Zones 

‘‘PART I. DESIGNATION. 

‘‘PART II. TAX BENEFITS. 

12 ‘‘PART I—DESIGNATION 

‘‘Sec. 1400V–1. Designation of Clean Energy Business Zones. 

13 ‘‘SEC. 1400V–1. DESIGNATION OF CLEAN ENERGY BUSINESS 

14 ZONES. 

15 ‘‘(a) IN GENERAL.—The Secretary may designate 40 

16 clean energy business zones. 

17 ‘‘(b) CONSULTATION.—In designating such zones, the 

18 Secretary shall consult with— 

19 ‘‘(1) the Secretary of Housing and Urban De20 velopment in the case of urban areas, and 

21 ‘‘(2) the Secretary of Agriculture in the case of 

22 rural areas. 


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1 ‘‘(c) DESIGNATION CRITERIA.—In designating such 

2 zones, the Secretary shall consider the following factors: 

3 ‘‘(1) Whether the area already has a clean en4 ergy infrastructure or otherwise has a deteriorating 

5 conventional energy infrastructure. 

6 ‘‘(2) Whether the area is reliant on carbon-in7 tensive industries and, consequently, job loss is an8 ticipated due to the transition to a clean energy 

9 economy. 

10 ‘‘(3) Whether the area is home to business sec11 tors that could complement new clean energy indus12 tries. 

13 ‘‘(4) Whether the area has other environmental 

14 or economic conditions conducive to the establish15 ment of facilities relating to the manufacture or re16 search of clean energy or clean energy technologies, 

17 including the components used in such manufacture 

18 or research and the production of clean energy. 

19 ‘‘(d) SIZE.—An area may be designated as a Clean 

20 Energy Business Zone only if it meets the requirements 

21 of section 1392(a)(3). 

22 ‘‘(e) PERIOD DESIGNATIONS MAY BE MADE.—A des23 ignation may be made under subsection (a) only after 

24 2009 and before 2012. 


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1 ‘‘(f) PERIOD FOR WHICH DESIGNATION IS IN EF2 FECT.—Any designation under this section shall remain 

3 in effect during the period beginning on the date of the 

4 designation and ending on the close of the 10th calendar 

5 year beginning on or after such date of designation. 

6 ‘‘PART 1—TAX BENEFITS 

‘‘Sec. 1400V–2. Tax benefits for clean energy business zones. 

7 ‘‘SEC. 1400V–2. TAX BENEFITS FOR CLEAN ENERGY BUSI8 NESS ZONES. 

9 ‘‘(a) WAGE CREDIT.—For purposes of section 

10 1396— 

11 ‘‘(1) IN GENERAL.—Subject to the modifica12 tions in paragraph (2), a Clean Energy Business 

13 Zone shall be treated as an empowerment zone. 

14 ‘‘(2) MODIFICATIONS.—In applying section 

15 1396 with respect to Clean Energy Business 

16 Zones— 

17 ‘‘(A) IN GENERAL.—In the case of quali18 fied wages— 

19 ‘‘(i) subsection (b) thereof shall be ap20 plied by substituting ‘30 percent’ for ‘20 

21 percent’, and 

22 ‘‘(ii) subsection (c) thereof shall be 

23 applied by substituting ‘$20,000’ for 

24 ‘$15,000’ each place it appears. 


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1 ‘‘(B) QUALIFIED WAGES.—For purposes of 

2 subparagraph (A), the term ‘qualified wages’ 

3 means qualified zone wages (as defined in sec4 tion 1396(c)) for services performed by the em5 ployee— 

6 ‘‘(i) in the construction of any quali7 fied Green building, or 

8 ‘‘(ii) in any qualified clean energy fa9 cility. 

10 ‘‘(C) COORDINATION WITH BASIC CRED11 IT.—The $15,000 amount in section 1396(c)(2) 

12 (without regard to this subsection) shall be re13 duced for any calendar year by the amount of 

14 wages paid or incurred during such year which 

15 are taken into account in determining the credit 

16 under this subsection. 

17 ‘‘(3) CREDIT TO BE REFUNDABLE.—So much 

18 of the credit allowable by section 1396 solely by rea19 son of this subsection shall be treated as allowed 

20 under subpart C of part IV of subchapter A of this 

21 chapter. 

22 ‘‘(b) EXPANSION OF WORK OPPORTUNITY CREDIT.— 

23 ‘‘(1) IN GENERAL.—For purposes of section 51, 

24 a Clean Energy Business Zone employee shall be 

25 treated as a member of a targeted group. 


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1 ‘‘(2) CLEAN ENERGY BUSINESS ZONE BUSINESS

2 EMPLOYEE.—For purposes of this subsection— 

3 ‘‘(A) IN GENERAL.—The term ‘Clean En4 ergy Business Zone employee’ means, with re5 spect to any period, any employee of a Clean 

6 Energy Business Zone business if— 

7 ‘‘(i) the principal place of abode of 

8 such employee during such period is within 

9 a Clean Energy Business Zone, 

10 ‘‘(ii) substantially all the services per11 formed during such period by such em12 ployee for such business are performed— 

13 ‘‘(I) in the construction of any 

14 qualified Green energy building, or 

15 ‘‘(II) in a qualified clean energy 

16 facility, and 

17 ‘‘(iii) such employee had been em18 ployed in a carbon-intensive business at 

19 any time during the 1-year period ending 

20 on the date that the individual was first 

21 hired by the employer. 

22 ‘‘(B) CLEAN ENERGY BUSINESS ZONE

23 BUSINESS.—The term ‘Clean Energy Business 

24 Zone business’ means any trade or business— 


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1 ‘‘(i) which is located in a Clean En2 ergy Business Zone, and 

3 ‘‘(ii) at least 15 percent of the em4 ployees of which are residents of a Clean 

5 Energy Business Zone. 

6 ‘‘(C) SPECIAL RULES FOR DETERMINING

7 AMOUNT OF CREDIT.—For purposes of applying 

8 subpart F of part IV of subchapter A of this 

9 chapter to wages paid or incurred to any Clean 

10 Energy Business Zone business employee— 

11 ‘‘(i) subsections (c)(4) and (i)(2) of 

12 section 51 shall not apply, and 

13 ‘‘(ii) in determining qualified wages, 

14 the following shall apply in lieu of section 

15 51(b): 

16 ‘‘(I) QUALIFIED WAGES.—The 

17 term ‘qualified wages’ means wages 

18 paid or incurred by the employer to 

19 individuals who are Clean Energy 

20 Business Zone business employees of 

21 such employer for work performed 

22 during calendar year 2010. 

23 ‘‘(II) ONLY FIRST $12,000 OF

24 WAGES PER CALENDAR YEAR TAKEN

25 INTO ACCOUNT.—The amount of the 


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1 qualified wages which may be taken 

2 into account with respect to any indi3 vidual shall not exceed $12,000 per 

4 calendar year. 

5 ‘‘(c) CLEAN RENEWABLE ENERGY BONDS.— 

6 ‘‘(1) IN GENERAL.—For purposes of section 

7 54(c)(2), the term ‘qualified facility’ includes— 

8 ‘‘(A) any qualified Green building, and 

9 ‘‘(B) any qualified clean energy facility. 

10 ‘‘(2) EXTENSION.—In the case of bonds which 

11 are clean renewable energy bonds under section 54 

12 solely by reason of this subsection, section 54(m) 

13 shall be applied by substituting ‘December 31, 2020’ 

14 for ‘December 31, 2009’. 

15 ‘‘(d) INCREASED EXPENSING UNDER SECTION

16 179.— 

17 ‘‘(1) IN GENERAL.—For purposes of section 

18 179, the dollar amount in effect under section 

19 179(b)(1) for the taxable year shall be increased by 

20 the lesser of— 

21 ‘‘(A) $250,000, or 

22 ‘‘(B) the cost of qualified section 179 

23 Clean Energy Business Zone property placed in 

24 service during the taxable year. 


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1 ‘‘(2) QUALIFIED SECTION 179 CLEAN ENERGY

2 BUSINESS ZONE PROPERTY.—For purposes of this 

3 subsection— 

4 ‘‘(A) IN GENERAL.—The term ‘qualified 

5 section 179 Clean Energy Business Zone prop6 erty’ means section 179 property (as defined in 

7 section 179(d))— 

8 ‘‘(i) which is described in section 

9 168(k)(2)(A)(i) or which is nonresidential 

10 real property or residential rental property, 

11 ‘‘(ii) substantially all of the use of 

12 which is in— 

13 ‘‘(I) a qualified Green building or 

14 a qualified clean energy facility, and 

15 ‘‘(II) the active conduct of a 

16 trade or business by the taxpayer in 

17 such Zone, 

18 ‘‘(iii) the original use of which in the 

19 Clean Energy Business Zone commences 

20 with the taxpayer on or after the date of 

21 the enactment of this section, 

22 ‘‘(iv) which is acquired by the tax23 payer by purchase (as defined in section 

24 179(d)) on or after such date, but only if 


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1 no written binding contract for the acquisi2 tion was in effect before such date, and 

3 ‘‘(v) which is placed in service by the 

4 taxpayer during the 2-year period begin5 ning on such date (during the 3-year pe6 riod beginning on such date, in the case of 

7 nonresidential real property and residential 

8 rental property). 

9 ‘‘(B) EXCEPTIONS.— 

10 ‘‘(i) ALTERNATIVE DEPRECIATION

11 PROPERTY.—Such term shall not include 

12 any property described in section 

13 168(k)(2)(D)(i). 

14 ‘‘(ii) TAX-EXEMPT BOND-FINANCED

15 PROPERTY.—Such term shall not include 

16 any property any portion of which is fi17 nanced with the proceeds of any obligation 

18 the interest on which is exempt from tax 

19 under section 103. 

20 ‘‘(iii) ELECTION OUT.—If a taxpayer 

21 makes an election under this clause with 

22 respect to any class of property for any 

23 taxable year, this subsection shall not 

24 apply to all property in such class placed 

25 in service during such taxable year. 


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1 ‘‘(3) SPECIAL RULES.—For purposes of this 

2 subsection, rules similar to the rules of subpara3 graph (E) of section 168(k)(2) shall apply, except 

4 that such subparagraph shall be applied— 

5 ‘‘(A) without regard to ‘and before Janu6 ary 1, 2010’ in clause (i) thereof, and 

7 ‘‘(B) by substituting ‘qualified Clean En8 ergy Business Zone property’ for ‘qualified 

9 property’ in clause (iv) thereof. 

10 ‘‘(4) ALLOWANCE AGAINST ALTERNATIVE MIN11 IMUM TAX.—For purposes of this subsection, rules 

12 similar to the rules of section 168(k)(2)(G) shall 

13 apply. 

14 ‘‘(5) RECAPTURE.—For purposes of this sub15 section, rules similar to the rules under section 

16 179(d)(10) shall apply with respect to any qualified 

17 section 179 Clean Energy Business Zone property 

18 which ceases to be qualified section 179 Clean En19 ergy Business Zone property. 

20 ‘‘(e) EXCLUSION OF CAPITAL GAIN ON STOCK IN

21 QUALIFIED BUSINESSES.— 

22 ‘‘(1) IN GENERAL.—Gross income shall not in23 clude qualified capital gain from the sale or ex24 change of any Clean Energy Business Zone asset 

25 held for more than 5 years. 


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1 ‘‘(2) CLEAN ENERGY BUSINESS ZONE ASSET.— 

2 For purposes of this subsection— 

3 ‘‘(A) IN GENERAL.—The term ‘Clean En4 ergy Business Zone asset’ means— 

5 ‘‘(i) any Clean Energy Business Zone 

6 business stock, 

7 ‘‘(ii) any Clean Energy Business Zone 

8 partnership interest, and 

9 ‘‘(iii) any Clean Energy Business 

10 Zone business property. 

11 ‘‘(B) CLEAN ENERGY BUSINESS ZONE

12 BUSINESS STOCK.— 

13 ‘‘(i) IN GENERAL.—The term ‘Clean 

14 Energy Business Zone business stock’ 

15 means any stock in a domestic corporation 

16 which is originally issued after the date of 

17 the enactment of this section if— 

18 ‘‘(I) such stock is acquired by the 

19 taxpayer, before January 1, 2013, at 

20 its original issue (directly or through 

21 an underwriter) solely in exchange for 

22 cash, 

23 ‘‘(II) as of the time such stock 

24 was issued, such corporation was a 

25 Clean Energy Business Zone business 


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1 (or, in the case of a new corporation, 

2 such corporation was being organized 

3 for purposes of being a Clean Energy 

4 Business Zone business), and 

5 ‘‘(III) during substantially all of 

6 the taxpayer’s holding period for such 

7 stock, such corporation qualified as a 

8 Clean Energy Business Zone business. 

9 ‘‘(ii) REDEMPTIONS.—A rule similar 

10 to the rule of section 1202(c)(3) shall 

11 apply for purposes of this paragraph. 

12 ‘‘(C) CLEAN ENERGY BUSINESS ZONE

13 PARTNERSHIP INTEREST.—The term ‘Clean 

14 Energy Business Zone partnership interest’ 

15 means any capital or profits interest in a do16 mestic partnership which is originally issued 

17 after the date of the enactment of this section 

18 if— 

19 ‘‘(i) such interest is acquired by the 

20 taxpayer, before January 1, 2013, from 

21 the partnership solely in exchange for cash, 

22 ‘‘(ii) as of the time such interest was 

23 acquired, such partnership was a Clean 

24 Energy Business Zone business (or, in the 

25 case of a new partnership, such partnerVerDate Nov 24 2008 23:02 Oct 23, 2009 Jkt 089200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\H3919.IH H3919

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1 ship was being organized for purposes of 

2 being a Clean Energy Business Zone busi3 ness), and 

4 ‘‘(iii) during substantially all of the 

5 taxpayer’s holding period for such interest, 

6 such partnership qualified as a Clean En7 ergy Business Zone business. 

8 A rule similar to the rule of subparagraph 

9 (B)(ii) shall apply for purposes of this subpara10 graph. 

11 ‘‘(D) CLEAN ENERGY BUSINESS ZONE

12 BUSINESS PROPERTY.— 

13 ‘‘(i) IN GENERAL.—The term ‘Clean 

14 Energy Business Zone business property’ 

15 means property which is a qualified Green 

16 building if— 

17 ‘‘(I) such property was acquired 

18 by the taxpayer by purchase (as de19 fined in section 179(d)(2) after the 

20 date of the enactment of this section 

21 and before January 1, 2013, 

22 ‘‘(II) the original use of such 

23 property in the Clean Energy Busi24 ness Zone commences with the tax25 payer, and 


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1 ‘‘(III) during substantially all of 

2 the taxpayer’s holding period for such 

3 property, substantially all of the use 

4 of such property was in a Clean En5 ergy Business Zone business of the 

6 taxpayer. 

7 ‘‘(ii) SPECIAL RULE FOR BUILDINGS

8 WHICH ARE SUBSTANTIALLY IMPROVED.— 

9 ‘‘(I) IN GENERAL.—The require10 ments of subclauses (I) and (II) of 

11 clause (i) shall be treated as met with 

12 respect to— 

13 ‘‘(aa) property which is sub14 stantially improved by the tax15 payer before January 1, 2013, 

16 and 

17 ‘‘(bb) any land on which 

18 such property is located. 

19 ‘‘(II) SUBSTANTIAL IMPROVE20 MENT.—For purposes of subclause 

21 (I), property shall be treated as sub22 stantially improved by the taxpayer 

23 only if, during any 24-month period 

24 beginning after December 31, 1997, 

25 additions to basis with respect to such 


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1 property in the hands of the taxpayer 

2 exceed the greater of $5,000 or an 

3 amount equal to the adjusted basis of 

4 such property at the beginning of 

5 such 24-month period in the hands of 

6 the taxpayer. 

7 ‘‘(E) TREATMENT OF CLEAN ENERGY

8 BUSINESS ZONE TERMINATION.—The termi9 nation of the designation of the Clean Energy 

10 Business Zone shall be disregarded for purposes 

11 of determining whether any property is a Clean 

12 Energy Business Zone asset. 

13 ‘‘(F) TREATMENT OF SUBSEQUENT PUR14 CHASERS, ETC.—The term ‘Clean Energy Busi15 ness Zone asset’ includes any property which 

16 would be a Clean Energy Business Zone asset 

17 but for subparagraph (B)(i)(I), (C)(i), or (D)(i) 

18 (I) or (II) in the hands of the taxpayer if such 

19 property was a Clean Energy Business Zone 

20 asset in the hands of a prior holder. 

21 ‘‘(G) 5-YEAR SAFE HARBOR.—If any prop22 erty ceases to be a Clean Energy Business Zone 

23 asset by reason of subparagraph (B)(i)(III), 

24 (C)(iii), or (D)(i)(III) after the 5-year period 

25 beginning on the date the taxpayer acquired 


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1 such property, such property shall continue to 

2 be treated as meeting the requirements of such 

3 paragraph; except that the amount of gain to 

4 which paragraph (1) applies on any sale or ex5 change of such property shall not exceed the 

6 amount which would be qualified capital gain 

7 had such property been sold on the date of such 

8 cessation. 

9 ‘‘(3) CLEAN ENERGY BUSINESS ZONE BUSI10 NESS.—For purposes of this subsection, the term 

11 ‘Clean Energy Business Zone business’ means any 

12 trade or business if— 

13 ‘‘(A) all buildings located in any Clean En14 ergy Business Zone which are owned or occu15 pied by such trade or business are qualified 

16 Green buildings or qualified clean energy facili17 ties, and 

18 ‘‘(B) such business would be an enterprise 

19 zone business (as defined in section 1397C) de20 termined— 

21 ‘‘(i) by substituting ‘80 percent’ for 

22 ‘50 percent’ in subsections (b)(2) and 

23 (c)(1) of section 1397C, 


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1 ‘‘(ii) by substituting ‘15 percent’ for 

2 ‘35 percent’ in subsections (b)(6) and 

3 (c)(5) of section 1397C, and 

4 ‘‘(iii) by treating no area other than 

5 the Clean Energy Business Zone as an em6 powerment zone or enterprise community. 

7 ‘‘(4) OTHER DEFINITIONS AND SPECIAL

8 RULES.— 

9 ‘‘(A) QUALIFIED CAPITAL GAIN.—Except 

10 as otherwise provided in this paragraph, the 

11 term ‘qualified capital gain’ means any gain 

12 recognized on the sale or exchange of— 

13 ‘‘(i) a capital asset, or 

14 ‘‘(ii) property used in the trade or 

15 business (as defined in section 1231(b). 

16 ‘‘(B) GAIN BEFORE ENACTMENT OR AFTER

17 2012 NOT QUALIFIED.—The term ‘qualified cap18 ital gain’ shall not include any gain attributable 

19 to periods before the date of the enactment of 

20 this section or after December 31, 2012. 

21 ‘‘(C) CERTAIN GAIN NOT QUALIFIED.—The 

22 term ‘qualified capital gain’ shall not include 

23 any gain which would be treated as ordinary in24 come under section 1245 or under section 1250 


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1 if section 1250 applied to all depreciation rath2 er than the additional depreciation. 

3 ‘‘(D) INTANGIBLES AND LAND NOT INTE4 GRAL PART OF CLEAN ENERGY BUSINESS ZONE

5 BUSINESS.—The term ‘qualified capital gain’ 

6 shall not include any gain which is attributable 

7 to real property, or an intangible asset, which 

8 is not an integral part of a Clean Energy Busi9 ness Zone business. 

10 ‘‘(E) RELATED PARTY TRANSACTIONS.— 

11 The term ‘qualified capital gain’ shall not in12 clude any gain attributable, directly or indi13 rectly, in whole or in part, to a transaction with 

14 a related person. For purposes of this para15 graph, persons are related to each other if such 

16 persons are described in section 267(b) or 

17 707(b)(1). 

18 ‘‘(5) CERTAIN RULES TO APPLY.—Rules similar 

19 to the rules of subsections (g), (h), (i)(2), and (j) of 

20 section 1202 shall apply for purposes of this sub21 section. 

22 ‘‘(6) SALES AND EXCHANGES OF INTERESTS IN

23 PARTNERSHIPS AND S CORPORATIONS WHICH ARE

24 CLEAN ENERGY BUSINESS ZONE BUSINESSES.—In 

25 the case of the sale or exchange of an interest in a 


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1 partnership, or of stock in an S corporation, which 

2 was a Clean Energy Business Zone business during 

3 substantially all of the period the taxpayer held such 

4 interest or stock, the amount of qualified capital 

5 gain shall be determined without regard to— 

6 ‘‘(A) any gain which is attributable to real 

7 property, or an intangible asset, which is not an 

8 integral part of a Clean Energy Business Zone 

9 business, and 

10 ‘‘(B) any gain attributable to periods be11 fore the date of the enactment of this section or 

12 after December 31, 2012. 

13 ‘‘(f) EXPENSING OF PORTION OF COST OF QUALI14 FIED CLEAN ENERGY FACILITIES.— 

15 ‘‘(1) IN GENERAL.—A taxpayer may elect to 

16 treat the cost of any qualified clean energy facility 

17 property as an expense which is not chargeable to 

18 capital account. Any cost so treated shall be allowed 

19 as a deduction for the taxable year in which the 

20 property is placed in service. 

21 ‘‘(2) MAXIMUM AMOUNT OF DEDUCTION.— 

22 ‘‘(A) IN GENERAL.—The deduction under 

23 paragraph (1) for any taxable year shall not ex24 ceed $1,000,000. 


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1 ‘‘(B) DEDUCTION ALLOWED FOR ONLY 5

2 YEARS.—A deduction shall be allowed under 

3 this paragraph for any qualified clean energy 

4 facility property only for the taxable year dur5 ing which the qualified clean energy facility is 

6 placed in service and for the first 4 taxable 

7 years thereafter. 

8 ‘‘(3) QUALIFIED CLEAN ENERGY FACILITY

9 PROPERTY.—For purposes of this subsection, the 

10 term ‘qualified clean energy facility property’ means 

11 any property— 

12 ‘‘(A) with respect to which depreciation (or 

13 amortization in lieu of depreciation) is allow14 able, and 

15 ‘‘(B) which is installed on or in any quali16 fied clean energy facility. 

17 ‘‘(4) BASIS REDUCTION.—For purposes of this 

18 subtitle, if a deduction is allowed under this sub19 section with respect to any qualified clean energy fa20 cility property, the basis of such property shall be 

21 reduced by the amount of the deduction so allowed. 

22 ‘‘(5) TERMINATION.—This subsection shall not 

23 apply to property placed in service after December 

24 31, 2012. 

25 ‘‘(g) DEFINITIONS.—For purposes of this section— 


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1 ‘‘(1) QUALIFIED GREEN BUILDING.— 

2 ‘‘(A) IN GENERAL.—The term ‘qualified 

3 Green building’ means any building which is lo4 cated in a Clean Energy Business Zone and 

5 which meets the standards prescribed by the 

6 Administrator of the Environmental Protection 

7 Agency under subparagraph (B) for such build8 ing. 

9 ‘‘(B) STANDARDS.—The Administrator of 

10 the Environmental Protection Agency shall de11 velop and implement, in consultation with the 

12 Secretary of Energy, standards for a national 

13 energy and environmental building retrofit pol14 icy for single-family and multifamily residences. 

15 The Administrator shall develop and implement, 

16 in consultation with the Secretary of Energy 

17 and the Director of Commercial High-Perform18 ance Green Buildings, standards for a national 

19 energy and environmental building retrofit pol20 icy for nonresidential buildings. The programs 

21 to implement the residential and nonresidential 

22 policies based on the standards developed under 

23 this subparagraph shall together be known as 

24 the Retrofit for Energy and Environmental 

25 Performance (REEP) program. 


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1 ‘‘(2) QUALIFIED CLEAN ENERGY FACILITY.— 

2 The term ‘qualified clean energy facility’ means any 

3 facility which is located in a Clean Energy Business 

4 Zone and which relates to the manufacture or re5 search of clean energy or clean energy technologies, 

6 including the components used in such manufacture 

7 or research and the production of clean energy.’’. 

8 (b) CLERICAL AMENDMENT.—The table of sub9 chapters for chapter 1 of such Code is amended by adding 

10 at the end the following new item: 

‘‘SUBCHAPTER Z. CLEAN ENERGY BUSINESS ZONES.’’. 

11 (c) EFFECTIVE DATE.—The amendments made by 

12 this section shall apply to taxable years ending after the 

13 date of the enactment of this Act. 

14 SEC. 3. WAIVER OF SBA LOAN FEES. 

15 (a) SECTION 7(a) LOANS.—Paragraph (18) section 

16 7(a) of the Small Business Act is amended by adding at 

17 the end the following new subparagraph: 

18 ‘‘(C) NO FEE PERMITTED FOR CLEAN EN19 ERGY CONSTRUCTION LOANS.—No fee may be 

20 imposed under this paragraph with respect to 

21 any loan made before January 1, 2020, for the 

22 construction of any qualified Green building (as 

23 defined in section 1400V–2(g) of the Internal 

24 Revenue Code of 1986) or any qualified clean 

25 energy facility (as defined in such section).’’. 


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1 (b) SECTION 504 LOANS.—Paragraph (2) of section 

2 503(d) of the Small Business Investment Act of 1958 is 

3 amended by adding at the end the following new sentence: 

4 ‘‘No fee may be imposed under this paragraph with re5 spect to any loan made before January 1, 2020, for the 

6 construction of any qualified Green building (as defined 

7 in section 1400V–2(g) of the Internal Revenue Code of 

8 1986) or any qualified clean energy facility (as defined 

9 in such section).’’ 

Æ 


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