I 

111TH CONGRESS 

2D SESSION H. R. 5931 

To amend the American Recovery and Reinvestment Act of 2009 and the 

Internal Revenue Code of 1986 to provide incentives for the development 

of solar energy. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 29, 2010 

Ms. MATSUI (for herself, Mr. INSLEE, and Ms. GIFFORDS) 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 American Recovery and Reinvestment Act 

of 2009 and the Internal Revenue Code of 1986 to 

provide incentives for the development of solar energy. 

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 ‘‘Renewable Energy In5 centive Act’’. 


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1 SEC. 2. EXTENSION OF GRANTS FOR SPECIFIED ENERGY 

2 PROPERTY IN LIEU OF TAX CREDITS. 

3 (a) IN GENERAL.—Subsection (a) of section 1603 of 

4 division B of the American Recovery and Reinvestment 

5 Act of 2009 is amended— 

6 (1) in paragraph (1), by striking ‘‘2009 or 

7 2010’’ and inserting ‘‘2009, 2010, 2011, or 2012’’, 

8 and 

9 (2) in paragraph (2)— 

10 (A) by striking ‘‘after 2010’’ and inserting 

11 ‘‘after 2012’’, and 

12 (B) by striking ‘‘2009 or 2010’’ and in13 serting ‘‘2009, 2010, 2011, or 2012’’. 

14 (b) CONFORMING AMENDMENT.—Subsection (j) of 

15 section 1603 of division B of such Act is amended by strik16 ing ‘‘2011’’ and inserting ‘‘2013’’. 

17 SEC. 3. EXPANSION OF GRANTS FOR SPECIFIED ENERGY 

18 PROPERTY IN LIEU OF TAX CREDITS. 

19 (a) GRANTS ALLOWED FOR CERTAIN GOVERN20 MENTAL UNITS AND COOPERATIVE ELECTRIC COMPA21 NIES.— 

22 (1) IN GENERAL.—Subsection (g) of section 

23 1603 of division B of the American Recovery and 

24 Reinvestment Act of 2009 is amended— 

25 (A) in paragraph (1), by inserting ‘‘other 

26 than a governmental unit which is a State utilVerDate Mar 15 2010 21:53 Jul 30, 2010 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5931.IH H5931

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1 ity with a service obligation (as such terms are 

2 defined in section 217 of the Federal Power 

3 Act, as in effect on the date of the enactment 

4 of this paragraph),’’ after ‘‘thereof),’’, 

5 (B) in paragraph (2), by inserting ‘‘other 

6 than a mutual or cooperative electric company 

7 described in section 50(c)(12) of such Code’’ 

8 after ‘‘such Code’’, and 

9 (C) by striking paragraph (3) and redesig10 nating paragraph (4) as paragraph (3). 

11 (2) CONFORMING AMENDMENT.—Paragraph (3) 

12 of section 1603(g) of division B of such Act, as re13 designated by paragraph (1)(C), is amended by 

14 striking ‘‘paragraph (1), (2), or (3)’’ and inserting 

15 ‘‘paragraph (1) or (2)’’. 

16 (b) NO GRANTS FOR PORTION OF PROPERTY FI17 NANCED WITH CREBS OR TAX-EXEMPT BONDS.—Sec18 tion 1603 of division B of such Act, as amended by section 

19 2, is amended by redesignating subsections (h), (i), and 

20 (j) as subsections (i), (j), and (k), respectively, and by in21 serting after subsection (g) the following new subsection: 

22 ‘‘(h) SPECIAL RULE FOR BOND FINANCED PROP23 ERTY.—The amount of any grant under this section with 

24 respect to any specified energy property shall not exceed 

25 an amount equal to— 


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1 ‘‘(1) the basis of such property, over 

2 ‘‘(2) the portion of the basis of such property 

3 which is allocable to proceeds of any bond which is 

4 designated as a new clean renewable energy bond 

5 under section 54C of such Code or any bond the in6 terest on which is exempt from tax under section 

7 103 of such Code.’’. 

8 (c) TREATMENT OF GRANTS FOR COOPERATIVE

9 ELECTRIC COMPANIES.—Paragraph (12) of section 

10 501(c) of the Internal Revenue Code of 1986 is amended 

11 by adding at the end the following new subparagraph: 

12 ‘‘(I) In the case of a mutual or cooperative 

13 electric company described in this paragraph or 

14 an organization described in section 

15 1381(a)(2)(C), subparagraph (A) shall be ap16 plied without taking into account any grant re17 ceived under section 1603 of division B of the 

18 American Recovery and Reinvestment Act of 

19 2009.’’. 

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

21 this section shall apply to property placed in service after 

22 the date of the enactment of this Act. 


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1 SEC. 4. CREDIT FOR QUALIFIED SOLAR MANUFACTURING 

2 PROJECT PROPERTY. 

3 (a) IN GENERAL.—Subparagraph (A) of section 

4 48(a)(3) of the Internal Revenue Code of 1986 is amended 

5 by striking ‘‘or’’ at the end of clause (vi), by inserting 

6 ‘‘or’’ at the end of clause (vii), and by inserting after 

7 clause (vii) the following new clause: 

8 ‘‘(viii) qualified solar manufacturing 

9 project property,’’. 

10 (b) CREDIT PERCENTAGE.—Subclause (II) of section 

11 48(a)(2)(A)(i) of such Code is amended by striking ‘‘para12 graph (3)(A)(i)’’ and inserting ‘‘clause (i) or (viii) of para13 graph (3)(A)’’. 

14 (c) QUALIFIED SOLAR MANUFACTURING PROP15 ERTY.—Section 48(c) of such Code is amended by adding 

16 at the end the following new paragraph: 

17 ‘‘(5) QUALIFIED SOLAR MANUFACTURING

18 PROJECT PROPERTY.—The term ‘qualified solar 

19 manufacturing project property’ means any tangible 

20 personal property (not including a building or its 

21 structural components) purchased to re-equip, ex22 pand, or establish a manufacturing facility for the 

23 production of property described in subsection 

24 (a)(3)(A)(i), but only if such property is used as an 

25 integral part of the production process. Such term 


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1 shall not include any property if such property has 

2 been certified for a credit under section 48C.’’. 

3 (d) PROPERTY ELIGIBLE FOR GRANT.—Subsection 

4 (d) of section 1603 of division B of the American Recovery 

5 and Reinvestment Act of 2009 is amended by inserting 

6 after paragraph (8) the following new paragraph: 

7 ‘‘(9) QUALIFIED SOLAR MANUFACTURING

8 PROJECT PROPERTY.—Any qualified solar manufac9 turing project property (as defined in section 

10 48(c)(5) of such Code).’’. 

11 (e) EFFECTIVE DATE.— 

12 (1) IN GENERAL.—The amendments made by 

13 subsections (a), (b), and (c) shall apply to periods 

14 after the date of the enactment of this Act, under 

15 rules similar to the rules of section 48(m) of the In16 ternal Revenue Code of 1986 (as in effect on the day 

17 before the date of the enactment of the Revenue 

18 Reconciliation Act of 1990). 

19 (2) GRANTS.—The amendment made by sub20 section (d) shall apply to property placed in service 

21 after the date of the enactment of this Act. 

22 SEC. 5. CREDIT FOR HIGH SOLARITY DISTURBED PRIVATE 

23 LAND CONSOLIDATION. 

24 (a) IN GENERAL.—Subpart D of part IV of sub25 chapter A of chapter 1 of the Internal Revenue Code of 


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1 1986 is amended by adding at the end the following new 

2 section: 

3 ‘‘SEC. 45S. HIGH SOLARITY DISTURBED PRIVATE LAND 

4 CONSOLIDATION CREDIT. 

5 ‘‘(a) IN GENERAL.—For purposes of section 38, the 

6 high solarity disturbed private land consolidation credit 

7 for any taxable year is an amount equal to 30 percent 

8 of any amounts paid during the taxable year to purchase 

9 more than 2 sections of contiguous high solarity disturbed 

10 private land for the purpose of consolidating the lands into 

11 a contiguous block suitable for the production of solar en12 ergy for use in a trade or business. 

13 ‘‘(b) HIGH SOLARITY DISTURBED PRIVATE LAND.— 

14 The term ‘high solarity disturbed private land’ means real 

15 property which— 

16 ‘‘(1) is located in the United States, 

17 ‘‘(2) was acquired in units that averaged less 

18 than 100 contiguous acres from any private person, 

19 ‘‘(3) is in a location identified on the July 2007 

20 Concentrating Solar Power Resources Maps pub21 lished by the National Renewable Energy Labora22 tory as— 

23 ‘‘(A) having a solar resource of 7 kwh per 

24 square meter per year or higher, at 3 percent 

25 or less grade, and 


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1 ‘‘(B) outside of a sensitive environmental 

2 or urban area, 

3 ‘‘(4) was previously disturbed either by residen4 tial or retail development, agriculture, industrial use, 

5 mining, or other mechanical disturbance, and 

6 ‘‘(5) will be primarily used for generating solar 

7 electricity from property which is described in sec8 tion 48(a)(3)(A)(i) within 5 years of the date of pur9 chase. 

10 ‘‘(c) REDUCTION IN BASIS.—If a credit is determined 

11 under this section with respect to any property by reason 

12 of expenditures described in subsection (a), the basis of 

13 such property shall be reduced by the amount of the credit 

14 so determined. 

15 ‘‘(d) PROPERTY USED BY TAX-EXEMPT PERSONS.— 

16 For purposes of this section, rules similar to the rules of 

17 paragraphs (3) and (4) of section 50(b) shall apply. 

18 ‘‘(e) RECAPTURE IN CASE OF DISPOSITION.—The 

19 Secretary shall provide for the recapture of the amount 

20 of any credit allowed under this section if the property 

21 is not used for the production of solar energy in a trade 

22 or business within 5 years of the date of purchase.’’. 

23 (b) CREDIT ALLOWED AS BUSINESS CREDIT.—Sec24 tion 38(b) of such Code is amended by striking ‘‘plus’’ 

25 at the end of paragraph (35), by striking the period at 


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1 the end of paragraph (36) and inserting ‘‘, plus’’, and by 

2 adding at the end the following new paragraph: 

3 ‘‘(37) the high solarity disturbed private land 

4 consolidation credit determined under section 

5 45S(a).’’. 

6 (c) BASIS ADJUSTMENT.—Section 1016(a) of such 

7 Code is amended by striking ‘‘and’’ at the end of para8 graph (36), by striking the period at the end of paragraph 

9 (37) and inserting ‘‘, and’’, and by adding at the end the 

10 following: 

11 ‘‘(38) in the case of a facility with respect to 

12 which a credit was allowed under section 45S, to the 

13 extent provided in section 45S(c).’’. 

14 (d) CLERICAL AMENDMENT.—The table of sections 

15 for subpart D of part IV of subchapter A of chapter 1 

16 of the Internal Revenue Code of 1986 is amended by add17 ing at the end the following new item: 

‘‘Sec. 45S. High solarity disturbed private land consolidation 

credit.’’. 

18 (e) EFFECTIVE DATE.—The amendments made by 

19 this section shall apply to taxable years beginning after 

20 the date of the enactment of this Act. 


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1 SEC. 6. ENERGY CREDIT ALLOWED FOR WATER HEATERS 

2 IN POOLS LOCATED ON COMMERCIAL PROP3 ERTY. 

4 (a) IN GENERAL.—Section 48(a)(3)(A)(i) of the In5 ternal Revenue Code of 1986 is amended by inserting ‘‘lo6 cated at a single family residence’’ after ‘‘swimming pool’’. 

7 (b) EFFECTIVE DATE.—The amendment made by 

8 this section shall apply to property placed in service after 

9 the date of the enactment of this Act. 

Æ 


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