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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 590 Introduced in Senate (IS)]

110th CONGRESS
  1st Session
                                 S. 590

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

                           February 14, 2007

   Mr. Smith (for himself, Mr. Salazar, Ms. Snowe, Mr. Menendez, Mr. 
 Lugar, Mr. Kerry, Mr. Kennedy, Mr. Allard, Mr. Wyden, Mr. Lieberman, 
    Mr. Lautenberg, Ms. Cantwell, and Ms. Landrieu) 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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Securing America's Energy 
Independence Act of 2007''.

SEC. 2. PROVISIONS RELATING TO THE INVESTMENT TAX CREDIT WITH RESPECT 
              TO SOLAR ENERGY PROPERTY AND QUALIFIED FUEL CELL 
              PROPERTY.

    (a) Extension of Credit for Solar Energy Property.--Paragraphs 
(2)(A)(i)(II) and (3)(A)(ii) of section 48(a) of the Internal Revenue 
Code of 1986 are each amended by striking ``January 1, 2009'' and 
inserting ``January 1, 2017''.
    (b) Extension of Credit for Eligible Fuel Cell Property.--Paragraph 
(1)(E) of section 48(c) of the Internal Revenue Code of 1986 is amended 
by striking ``December 31, 2008'' and inserting ``December 31, 2016''.
    (c) Energy Property to Include Excess Energy Storage Device.--
Clause (i) of section 48(a)(3)(A) of the Internal Revenue Code of 1986 
is amended to read as follows:
                            ``(i) equipment which uses solar energy to 
                        generate electricity, to heat or cool (or 
                        provide hot water for use in) a structure, or 
                        to provide solar process heat, or advanced 
                        energy storage systems installed as an 
                        integrated component of the foregoing, 
                        excepting property used to generate energy for 
                        purposes of heating a swimming pool,''.
    (d) Modifications.--
            (1) Solar photovoltaic energy property credit determined 
        solely by kilowatt capacity.--
                    (A) In general.--Subsection (a) of section 48 of 
                the Internal Revenue Code of 1986 is amended by 
                redesignating paragraph (4) as paragraph (5) and by 
                inserting after paragraph (3) the following new 
                paragraph:
            ``(4) Special rule for energy credit for solar photovoltaic 
        energy property.--
                    ``(A) In general.--For purposes of section 46, the 
                energy credit for any taxable year for solar 
                photovoltaic energy property described in paragraph 
                (3)(A)(i) which is used to generate electricity and 
                which is placed in service during the taxable year is 
                $1,500 with respect to each half kilowatt of direct 
                current of installed capacity of such property. 
                Paragraph (2)(A)(ii) shall not apply to property to 
                which the preceding sentence applies.
                    ``(B) Application of special rules for 
                rehabilitated or subsidized property.--Rules similar to 
                the rules of paragraphs (2)(B) and (5) shall apply to 
                property to which this paragraph applies.''.
                    (B) Conforming amendment.--Subclause (II) of 
                section 48(a)(2)(A)(i) of such Code is amended by 
                striking ``described in paragraph (3)(A)(i)'' and 
                inserting ``which is described in paragraph (3)(A)(i) 
                and to which paragraph (4) does not apply''.
    (e) Credits Allowed Against the Alternative Minimum Tax.--Section 
38(c)(4)(B) of the Internal Revenue Code of 1986 is amended by striking 
``and'' at the end of clause (i), by striking the period at the end of 
clause (ii)(II) and inserting ``, and'', and by adding at the end the 
following new clause:
                            ``(iii) the portion of the investment 
                        credit under section 46(2) which is determined 
                        under clauses (i) and (ii) of section 
                        48(a)(2)(A).''.
    (f) Effective Dates.--
            (1) Except as provided in paragraph (2), the amendments 
        made by this section shall take effect on January 1, 2007.
            (2) The amendments made by subsection (c) shall apply to 
        property placed in service after December 31, 2006.

SEC. 3. EXTENSION AND MODIFICATION OF CREDIT FOR RESIDENTIAL ENERGY 
              EFFICIENT PROPERTY.

    (a) Extension.--Subsection (g) of section 25D of the Internal 
Revenue Code of 1986 is amended by striking ``December 31, 2008'' and 
inserting ``December 31, 2016''.
    (b) Solar Electric Property.--Paragraph (1) of section 25D(a) of 
the Internal Revenue Code of 1986 is amended by striking ``30 percent 
of''.
    (c) Modification of Maximum Credit.--Paragraph (1) of section 
25D(b) of the Internal Revenue Code of 1986 is amended to read as 
follows:
            ``(1) Maximum credit.--The credit allowed under subsection 
        (a) for any taxable year shall not exceed--
                    ``(A) $1,500 with respect to each half kilowatt of 
                direct current of installed capacity of qualified solar 
                electric property for which qualified solar electric 
                property expenditures are made,
                    ``(B) $2,000 with respect to any qualified solar 
                heating and cooling property expenditures, and
                    ``(C) $500 with respect to each half kilowatt of 
                capacity of qualified fuel cell property (as defined in 
                section 48(c)(1)) for which qualified fuel cell 
                property expenditures are made.''.
    (d) Definition of Qualified Solar Heating and Cooling Property 
Expenditure.--
            (1) In general.--Paragraph (1) of section 25D(d) of the 
        Internal Revenue Code of 1986 is amended to read as follows:
            ``(2) Qualified solar heating and cooling property 
        expenditure.--The term `qualified solar heating and cooling 
        property expenditure' means an expenditure for property to heat 
        or cool (or provide hot water for use in) a dwelling unit 
        located in the United States and used as a residence by the 
        taxpayer if at least half of the energy used by such property 
        for such purpose is derived from the sun. Such term shall not 
        include an expenditure which is a qualified solar electric 
        property expenditure.''.
            (2) Conforming amendments.--Subsections (a)(2) and 
        (e)(4)(A)(ii) of section 25D of such Code are each amended by 
        striking ``qualified solar water heating'' and inserting 
        ``qualified solar heating and cooling''
    (e) Definition of Qualified Photovoltaic Property Expenditure.--
Paragraph (2) of section 25D(d) of the Internal Revenue Code of 1986 is 
amended by inserting ``, including advanced energy storage systems 
installed as an integrated component of the foregoing'' after 
``taxpayer''.
    (f) Credit Allowed Against Alternative Minimum Tax.--
            (1) In general.--Section 25D(b) of the Internal Revenue 
        Code of 1986, as amended by subsection (c), is amended by 
        adding at the end the following new paragraph:
            ``(3) Credit allowed against alternative minimum tax.--The 
        credit allowed under subsection (a) for the taxable year shall 
        not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under 
                subpart A of part IV of subchapter A (other than this 
                section) and section 27 for the taxable year.''.
            (2) Conforming amendments.--
                    (A) Subsection (c) of section 25D of such Code is 
                amended to read as follows:
    ``(c) Carryforward of Unused Credit.--If the credit allowable under 
subsection (a) for any taxable year exceeds the limitation imposed by 
subsection (b)(3) for such taxable year, such excess shall be carried 
to the succeeding taxable year and added to the credit allowable under 
subsection (a) for such succeeding taxable year.''.
                    (B) Section 23(b)(4)(B) of such Code is amended by 
                inserting ``and section 25D'' after ``this section''.
                    (C) Section 24(b)(3)(B) of such Code is amended by 
                striking ``sections 23 and 25B'' and inserting 
                ``sections 23, 25B, and 25D''.
                    (D) Section 26(a)(1) of such Code is amended by 
                striking ``and 25B'' and inserting ``25B, and 25D''.
    (g) Effective Date.--The amendments made by this section shall 
apply to expenditures made in taxable years beginning after December 
31, 2006.

SEC. 4. 3-YEAR ACCELERATED DEPRECIATION PERIOD FOR SOLAR ENERGY 
              PROPERTY AND FUEL CELL PROPERTY.

    (a) In General.--Subparagraph (A) of section 168(e)(3) of the 
Internal Revenue Code of 1986 is amended by striking ``and'' at the end 
of clause (ii), by striking the period at the end of clause (iii) and 
inserting a comma, and by inserting after clause (iii) the following 
new clauses:
                            ``(iv) any property which is described in 
                        clause (i) or (ii) of section 48(a)(3)(A) (or 
                        would be so described if the last sentence of 
                        such section did not apply to such clause), and
                            ``(v) any property which is described in 
                        clause (iv) of section 48(a)(3)(A).''.
    (b) Conforming Amendment.--Subclause (I) of section 
168(e)(3)(B)(vi) of the Internal Revenue Code of 1986 is amended to 
read as follows:
                                    ``(I) would be described in 
                                subparagraph (A) of section 48(a)(3) if 
                                `wind energy' were substituted for 
                                `solar energy' in clause (i) thereof 
                                and the last sentence of such section 
                                did not apply to such subparagraph,''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2006.
                                 <all>
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