II 

110TH CONGRESS 

1ST SESSION S. 673 

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

installation of wind energy property, including by rural homeowners, 

farmers, ranchers, and small businesses, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 16, 2007 

Mr. SALAZAR (for himself, Mr. SMITH, Mr. DORGAN, and Mr. CRAIG) 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 provide 

credits for the installation of wind energy property, including by rural homeowners, farmers, ranchers, and 

small businesses, 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 ‘‘Rural Wind Energy 

5 Development Act’’. 


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1 SEC. 2. CREDIT FOR INSTALLATION OF WIND ENERGY 

2 PROPERTY INCLUDING BY RURAL HOME3 OWNERS, FARMERS, RANCHERS, AND SMALL 

4 BUSINESSES. 

5 (a) IN GENERAL.—Subpart B of part IV of sub6 chapter A of chapter 1 of the Internal Revenue Code of 

7 1986 is amended by adding at the end the following new 

8 section: 

9 ‘‘SEC. 30D. WIND ENERGY PROPERTY. 

10 ‘‘(a) ALLOWANCE OF CREDIT.—There shall be al11 lowed as a credit against the tax imposed by this chapter 

12 for the taxable year an amount equal to $1,500 with re13 spect to each half kilowatt of capacity of qualified wind 

14 energy property placed in service or installed by the tax15 payer during such taxable year. 

16 ‘‘(b) LIMITATION.—No credit shall be allowed under 

17 subsection (a) unless at least 50 percent of the energy pro18 duced annually by the qualified wind energy property is 

19 consumed on the site on which the property is placed in 

20 service or installed. 

21 ‘‘(c) QUALIFIED WIND ENERGY PROPERTY.—For 

22 purposes of this section, the term ‘qualified wind energy 

23 property’ means a wind turbine of 100 kilowatts of rated 

24 capacity or less if— 


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1 ‘‘(1) such turbine is placed in service or in2 stalled on or in connection with property located in 

3 the United States, 

4 ‘‘(2) in the case of an individual, the property 

5 on or in connection with which such turbine is in6 stalled is a dwelling unit, 

7 ‘‘(3) the original use of such turbine commences 

8 with the taxpayer, and 

9 ‘‘(4) such turbine carries at least a 5-year lim10 ited warranty covering defects in design, material, or 

11 workmanship, and, for property that is not installed 

12 by the taxpayer, at least a 5-year limited warranty 

13 covering defects in installation. 

14 ‘‘(d) LIMITATION BASED ON AMOUNT OF TAX.— 

15 ‘‘(1) IN GENERAL.—The credit allowed under 

16 subsection (a) for any taxable year shall not exceed 

17 the excess of— 

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

19 (as defined in section 26(b)) plus the tax im20 posed by section 55, over 

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

22 under this part (other than under this section 

23 and subpart C thereof, relating to refundable 

24 credits) and section 1397E. 


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1 ‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the 

2 credit allowable under subsection (a) exceeds the 

3 limitation imposed by paragraph (1) for such taxable 

4 year, such excess shall be carried to the succeeding 

5 taxable year and added to the credit allowable under 

6 subsection (a) for such taxable year. 

7 ‘‘(e) SPECIAL RULES.—For purposes of this sec8 tion— 

9 ‘‘(1) TENANT-STOCKHOLDER IN COOPERATIVE

10 HOUSING CORPORATION.—In the case of an indi11 vidual who is a tenant-stockholder (as defined in sec12 tion 216(b)(2)) in a cooperative housing corporation 

13 (as defined in section 216(b)(1)), such individual 

14 shall be treated as having paid his tenant-stock15 holder’s proportionate share (as defined in section 

16 216(b)(3)) of any expenditures paid or incurred for 

17 qualified wind energy property by such corporation, 

18 and such credit shall be allocated appropriately to 

19 such individual. 

20 ‘‘(2) CONDOMINIUMS.— 

21 ‘‘(A) IN GENERAL.—In the case of an indi22 vidual who is a member of a condominium man23 agement association with respect to a condo24 minium which he owns, such individual shall be 

25 treated as having paid his proportionate share 


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1 of expenditures paid or incurred for qualified 

2 wind energy property by such association, and 

3 such credit shall be allocated appropriately to 

4 such individual. 

5 ‘‘(B) CONDOMINIUM MANAGEMENT ASSO6 CIATION.—For purposes of this paragraph, the 

7 term ‘condominium management association’ 

8 means an organization which meets the require9 ments of section 528(c)(2) with respect to a 

10 condominium project of which substantially all 

11 of the units are used by individuals as dwelling 

12 units. 

13 ‘‘(f) BASIS ADJUSTMENT.—For purposes of this sub14 title, if a credit is allowed under this section for any ex15 penditure with respect to a dwelling unit or other prop16 erty, the increase in the basis of such dwelling unit or 

17 other property which would (but for this subsection) result 

18 from such expenditure shall be reduced by the amount of 

19 the credit so allowed. 

20 ‘‘(g) APPLICATION OF CREDIT.—The credit allowed 

21 under this section shall apply to property placed in service 

22 or installed after December 31, 2006, and before January 

23 1, 2012.’’. 

24 (b) CONFORMING AMENDMENT.—Subsection (a) of 

25 section 1016 of the Internal Revenue Code of 1986 (relatVerDate Aug 31 2005 21:45 Feb 22, 2007 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S673.IS S673

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1 ing to general rule for adjustments to basis) is amended 

2 by striking ‘‘and’’ at the end of paragraph (36), by strik3 ing the period at the end of paragraph (37) and inserting 

4 ‘‘, and’’, and by adding at the end the following new para5 graph: 

6 ‘‘(38) in the case of a dwelling unit or other 

7 property with respect to which a credit was allowed 

8 under section 30D, to the extent provided in section 

9 30D(f).’’. 

10 (c) CLERICAL AMENDMENT.—The table of sections 

11 for subpart B of part IV of subchapter A of chapter 1 

12 of the Internal Revenue Code of 1986 is amended by in13 serting after the item relating to section 30C the following 

14 new item: 

‘‘Sec. 3D. Wind energy property.’’. 

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

16 this section shall apply to taxable years ending after De17 cember 31, 2006. 

18 SEC. 3. 3-YEAR ACCELERATED DEPRECIATION PERIOD FOR 

19 WIND ENERGY PROPERTY. 

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

21 168(e)(3) of the Internal Revenue Code of 1986 is amend22 ed by striking ‘‘and’’ at the end of clause (ii), by striking 

23 the period at the end of clause (iii) and inserting ‘‘, and’’, 

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


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1 ‘‘(iv) any property which would be de2 scribed in subparagraph (A) of section 

3 48(a)(3) if ‘wind energy’ were substituted 

4 for ‘solar energy’ in clause (i) thereof and 

5 the last sentence of such section did not 

6 apply to such subparagraph.’’. 

7 (b) CONFORMING AMENDMENT.—Section 

8 168(e)(3)(B)(vi)(I) of such Code is amended to read as 

9 follows: 

10 ‘‘(I) is described in subparagraph 

11 (A) of section 48(a)(3) if the last sen12 tence of such section did not apply to 

13 such subparagraph,’’. 

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

15 this section shall apply to property placed in service after 

16 December 31, 2006. 

Æ 


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