I 

110TH CONGRESS 

1ST SESSION H. R. 550 

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 HOUSE OF REPRESENTATIVES 

JANUARY 18, 2007 

Mr. MCNULTY (for himself and Mr. CAMP of Michigan) 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 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 of 2007’’. 


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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 ‘‘2017’’. 

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 ‘‘2016’’. 

13 (c) ENERGY PROPERTY TO INCLUDE EXCESS EN14 ERGY STORAGE DEVICE.—Clause (i) of section 

15 48(a)(3)(A) of such Code is amended to read as follows: 

16 ‘‘(i) equipment which uses solar en17 ergy to generate electricity, to heat or cool 

18 (or provide hot water for use in) a struc19 ture, or to provide solar process heat, or 

20 advanced energy storage systems installed 

21 as an integrated component of the fore22 going, excepting property used to generate 

23 energy for purposes of heating a swimming 

24 pool,’’. 

25 (d) SOLAR LIGHTING EQUIPMENT TO INCLUDE

26 SOLAR HYBRID LIGHTING SYSTEMS.—Clause (ii) of secVerDate Aug 31 2005 17:49 Jan 20, 2007 Jkt 059196 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H550.IH H550

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1 tion 48(a)(3)(A) of such Code is amended to read as fol2 lows: 

3 ‘‘(ii) equipment which uses solar en4 ergy to illuminate the inside of a structure 

5 using fiber-optic distributed sunlight,’’. 

6 (e) MODIFICATIONS.— 

7 (1) SOLAR PHOTOVOLTAIC ENERGY PROPERTY

8 CREDIT DETERMINED SOLELY BY KILOWATT CAPAC9 ITY.— 

10 (A) IN GENERAL.—Subsection (a) of sec11 tion 48 of such Code is amended by redesig12 nating paragraph (4) as paragraph (5) and by 

13 inserting after paragraph (3) the following new 

14 paragraph: 

15 ‘‘(4) SPECIAL RULE FOR ENERGY CREDIT FOR

16 SOLAR PHOTOVOLTAIC ENERGY PROPERTY.— 

17 ‘‘(A) IN GENERAL.—For purposes of sec18 tion 46, the energy credit for any taxable year 

19 for solar photovoltaic energy property described 

20 in paragraph (3)(A)(i) which is used to gen21 erate electricity and which is placed in service 

22 during the taxable year is $1,500 with respect 

23 to each half kilowatt of capacity of such prop24 erty. Paragraph (2)(A)(ii) shall not apply to 


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1 property to which the preceding sentence ap2 plies. 

3 ‘‘(B) APPLICATION OF SPECIAL RULES FOR

4 REHABILITATED OR SUBSIDIZED PROPERTY.— 

5 Rules similar to the rules of paragraphs (2)(B) 

6 and (5) shall apply to property to which this 

7 paragraph applies.’’. 

8 (B) CONFORMING AMENDMENT.—Sub9 clause (II) of section 48(a)(2)(A)(i) of such 

10 Code is amended by striking ‘‘described in 

11 paragraph (3)(A)(i)’’ and inserting ‘‘which is 

12 described in paragraph (3)(A)(i) and to which 

13 paragraph (4) does not apply’’. 

14 (f) CREDITS ALLOWED AGAINST THE ALTERNATIVE

15 MINIMUM TAX.—Section 38(c)(4)(B) of the Internal Rev16 enue Code of 1986 (defining specified credits) is amended 

17 by striking the period at the end of clause (ii)(II) and in18 serting ‘‘, and’’, and by adding at the end the following 

19 new clause: 

20 ‘‘(iii) the portion of the investment 

21 credit under section 46(2) as determined 

22 under clauses (i) and (ii) of section 

23 48(a)(2)(A).’’. 

24 (g) EFFECTIVE DATES.— 


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1 (1) Except as provided in paragraph (2), the 

2 amendments made by this section shall take effect 

3 on January 1, 2007. 

4 (2) The amendments made by subsection (c) 

5 shall apply to property placed in service after De6 cember 31, 2006. 

7 SEC. 3. EXTENSION AND MODIFICATION OF CREDIT FOR 

8 RESIDENTIAL ENERGY EFFICIENT PROP9 ERTY. 

10 (a) EXTENSION.—Subsection (g) of section 25D of 

11 the Internal Revenue Code of 1986 (relating to termi12 nation) is amended by striking ‘‘2008’’ and inserting 

13 ‘‘2016’’. 

14 (b) SOLAR ELECTRIC PROPERTY.—Paragraph (1) of 

15 section 25D(a) of such Code (relating to allowance of cred16 it) is amended by striking ‘‘30 percent of’’. 

17 (c) MODIFICATION OF MAXIMUM CREDIT.—Para18 graph (1) of section 25D(b) of the Internal Revenue Code 

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

20 follows: 

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

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

23 exceed— 

24 ‘‘(A) $1,500 with respect to each half kilo25 watt of installed capacity of qualified solar elecVerDate Aug 31 2005 17:49 Jan 20, 2007 Jkt 059196 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H550.IH H550

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1 tric property for which qualified solar electric 

2 property expenditures are made, 

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

4 solar water heating property expenditures, and 

5 ‘‘(C) $500 with respect to each half kilo6 watt of capacity of qualified fuel cell property 

7 (as defined in section 48(c)(1)) for which quali8 fied fuel cell property expenditures are made.’’. 

9 (d) DEFINITION OF QUALIFIED SOLAR WATER

10 HEATING PROPERTY EXPENDITURE.—Paragraph (1) of 

11 section 25D(d) of such Code is amended by striking ‘‘to 

12 heat water for use in’’ and inserting ‘‘to heat or cool (or 

13 provide hot water for use in)’’. 

14 (e) DEFINITION OF QUALIFIED PHOTOVOLTAIC

15 PROPERTY EXPENDITURE.—Paragraph (2) of section 

16 25D(d) of such Code is amended by inserting ‘‘, including 

17 advanced energy storage systems installed as an inte18 grated component of the foregoing’’ after ‘‘taxpayer’’. 

19 (f) CREDIT ALLOWED AGAINST ALTERNATIVE MIN20 IMUM TAX.— 

21 (1) IN GENERAL.—Section 25D(b) of the Inter22 nal Revenue Code of 1986 (as amended by sub23 section (b)) is amended by adding at the end the fol24 lowing new paragraph: 


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1 ‘‘(3) CREDIT ALLOWED AGAINST ALTERNATIVE

2 MINIMUM TAX.—The credit allowed under subsection 

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

4 of— 

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

6 (as defined in section 26(b)) plus the tax im7 posed by section 55, over 

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

9 under subpart A of part IV of subchapter A 

10 (other than this section) and section 27 for the 

11 taxable year.’’. 

12 (2) CONFORMING AMENDMENTS.— 

13 (A) Subsection (c) of section 25D of such 

14 Code is amended to read as follows: 

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

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

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

18 such taxable year, such excess shall be carried to the suc19 ceeding taxable year and added to the credit allowable 

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

21 (B) Section 23(b)(4)(B) of such Code is 

22 amended by inserting ‘‘and section 25D’’ after 

23 ‘‘this section’’. 


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1 (C) Section 24(b)(3)(B) of such Code is 

2 amended by striking ‘‘sections 23 and 25B’’ 

3 and inserting ‘‘sections 23, 25B, and 25D’’. 

4 (D) Section 26(a)(1) of such Code is 

5 amended by striking ‘‘and 25B’’ and inserting 

6 ‘‘25B, and 25D’’. 

7 (g) EFFECTIVE DATE.—The amendments made by 

8 this section shall apply to expenditures made in taxable 

9 years beginning after December 31, 2006. 

10 SEC. 4. 3-YEAR ACCELERATED DEPRECIATION PERIOD FOR 

11 SOLAR ENERGY PROPERTY AND FUEL CELL 

12 PROPERTY. 

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

14 168(e)(3) of the Internal Revenue Code of 1986 is amend15 ed by striking ‘‘and’’ at the end of clause (ii), by striking 

16 the period at the end of clause (iii) and inserting a comma, 

17 and by inserting after clause (iii) the following new clause: 

18 ‘‘(iv) any property which is described 

19 in clause (i) or (ii) of section 48(a)(3)(A) 

20 (or would be so described if the last sen21 tence of such section did not apply to such 

22 clause), and 

23 ‘‘(v) any property which is described 

24 in clause (iv) of section 48(a)(3)(A).’’. 


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1 (b) CONFORMING AMENDMENT.—Section 

2 168(e)(3)(B)(vi)(I) of such Code is amended to read as 

3 follows: 

4 ‘‘(I) would be described in sub5 paragraph (A) of section 48(a)(3) if 

6 ‘wind energy’ were substituted for 

7 ‘solar energy’ in clause (i) thereof and 

8 the last sentence of such section did 

9 not apply to such subparagraph,’’. 

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

11 this section shall apply to property placed in service after 

12 December 31, 2006. 

Æ 


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