II 

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. 

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. PROVISIONS RELATING TO THE INVESTMENT TAX 

2 CREDIT WITH RESPECT TO SOLAR ENERGY 

3 PROPERTY AND QUALIFIED FUEL CELL 

4 PROPERTY. 

5 (a) EXTENSION OF CREDIT FOR SOLAR ENERGY

6 PROPERTY.—Paragraphs (2)(A)(i)(II) and (3)(A)(ii) of 

7 section 48(a) of the Internal Revenue Code of 1986 are 

8 each amended by striking ‘‘January 1, 2009’’ and insert9 ing ‘‘January 1, 2017’’. 

10 (b) EXTENSION OF CREDIT FOR ELIGIBLE FUEL

11 CELL PROPERTY.—Paragraph (1)(E) of section 48(c) of 

12 the Internal Revenue Code of 1986 is amended by striking 

13 ‘‘December 31, 2008’’ and inserting ‘‘December 31, 

14 2016’’. 

15 (c) ENERGY PROPERTY TO INCLUDE EXCESS EN16 ERGY STORAGE DEVICE.—Clause (i) of section 

17 48(a)(3)(A) of the Internal Revenue Code of 1986 is 

18 amended to read as follows: 

19 ‘‘(i) equipment which uses solar en20 ergy to generate electricity, to heat or cool 

21 (or provide hot water for use in) a struc22 ture, or to provide solar process heat, or 

23 advanced energy storage systems installed 

24 as an integrated component of the fore25 going, excepting property used to generate 


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1 energy for purposes of heating a swimming 

2 pool,’’. 

3 (d) MODIFICATIONS.— 

4 (1) SOLAR PHOTOVOLTAIC ENERGY PROPERTY

5 CREDIT DETERMINED SOLELY BY KILOWATT CAPAC6 ITY.— 

7 (A) IN GENERAL.—Subsection (a) of sec8 tion 48 of the Internal Revenue Code of 1986 

9 is amended by redesignating paragraph (4) as 

10 paragraph (5) and by inserting after paragraph 

11 (3) the following new paragraph: 

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

13 SOLAR PHOTOVOLTAIC ENERGY PROPERTY.— 

14 ‘‘(A) IN GENERAL.—For purposes of sec15 tion 46, the energy credit for any taxable year 

16 for solar photovoltaic energy property described 

17 in paragraph (3)(A)(i) which is used to gen18 erate electricity and which is placed in service 

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

20 to each half kilowatt of direct current of in21 stalled capacity of such property. Paragraph 

22 (2)(A)(ii) shall not apply to property to which 

23 the preceding sentence applies. 

24 ‘‘(B) APPLICATION OF SPECIAL RULES FOR

25 REHABILITATED OR SUBSIDIZED PROPERTY.— 


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

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

3 paragraph applies.’’. 

4 (B) CONFORMING AMENDMENT.—Sub5 clause (II) of section 48(a)(2)(A)(i) of such 

6 Code is amended by striking ‘‘described in 

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

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

9 paragraph (4) does not apply’’. 

10 (e) CREDITS ALLOWED AGAINST THE ALTERNATIVE

11 MINIMUM TAX.—Section 38(c)(4)(B) of the Internal Rev12 enue Code of 1986 is amended by striking ‘‘and’’ at the 

13 end of clause (i), by striking the period at the end of 

14 clause (ii)(II) and inserting ‘‘, and’’, and by adding at the 

15 end the following new clause: 

16 ‘‘(iii) the portion of the investment 

17 credit under section 46(2) which is deter18 mined under clauses (i) and (ii) of section 

19 48(a)(2)(A).’’. 

20 (f) EFFECTIVE DATES.— 

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

22 amendments made by this section shall take effect 

23 on January 1, 2007. 


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

2 shall apply to property placed in service after De3 cember 31, 2006. 

4 SEC. 3. EXTENSION AND MODIFICATION OF CREDIT FOR 

5 RESIDENTIAL ENERGY EFFICIENT PROP6 ERTY. 

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

8 the Internal Revenue Code of 1986 is amended by striking 

9 ‘‘December 31, 2008’’ and inserting ‘‘December 31, 

10 2016’’. 

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

12 section 25D(a) of the Internal Revenue Code of 1986 is 

13 amended by striking ‘‘30 percent of’’. 

14 (c) MODIFICATION OF MAXIMUM CREDIT.—Para15 graph (1) of section 25D(b) of the Internal Revenue Code 

16 of 1986 is amended to read as follows: 

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

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

19 exceed— 

20 ‘‘(A) $1,500 with respect to each half kilo21 watt of direct current of installed capacity of 

22 qualified solar electric property for which quali23 fied solar electric property expenditures are 

24 made, 


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

2 solar heating and cooling property expenditures, 

3 and 

4 ‘‘(C) $500 with respect to each half kilo5 watt of capacity of qualified fuel cell property 

6 (as defined in section 48(c)(1)) for which quali7 fied fuel cell property expenditures are made.’’. 

8 (d) DEFINITION OF QUALIFIED SOLAR HEATING AND

9 COOLING PROPERTY EXPENDITURE.— 

10 (1) IN GENERAL.—Paragraph (1) of section 

11 25D(d) of the Internal Revenue Code of 1986 is 

12 amended to read as follows: 

13 ‘‘(2) QUALIFIED SOLAR HEATING AND COOLING

14 PROPERTY EXPENDITURE.—The term ‘qualified 

15 solar heating and cooling property expenditure’ 

16 means an expenditure for property to heat or cool 

17 (or provide hot water for use in) a dwelling unit lo18 cated in the United States and used as a residence 

19 by the taxpayer if at least half of the energy used 

20 by such property for such purpose is derived from 

21 the sun. Such term shall not include an expenditure 

22 which is a qualified solar electric property expendi23 ture.’’. 

24 (2) CONFORMING AMENDMENTS.—Subsections 

25 (a)(2) and (e)(4)(A)(ii) of section 25D of such Code 


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1 are each amended by striking ‘‘qualified solar water 

2 heating’’ and inserting ‘‘qualified solar heating and 

3 cooling’’ 

4 (e) DEFINITION OF QUALIFIED PHOTOVOLTAIC

5 PROPERTY EXPENDITURE.—Paragraph (2) of section 

6 25D(d) of the Internal Revenue Code of 1986 is amended 

7 by inserting ‘‘, including advanced energy storage systems 

8 installed as an integrated component of the foregoing’’ 

9 after ‘‘taxpayer’’. 

10 (f) CREDIT ALLOWED AGAINST ALTERNATIVE MIN11 IMUM TAX.— 

12 (1) IN GENERAL.—Section 25D(b) of the Inter13 nal Revenue Code of 1986, as amended by sub14 section (c), is amended by adding at the end the fol15 lowing new paragraph: 

16 ‘‘(3) CREDIT ALLOWED AGAINST ALTERNATIVE

17 MINIMUM TAX.—The credit allowed under subsection 

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

19 of— 

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

21 (as defined in section 26(b)) plus the tax im22 posed by section 55, over 

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

24 under subpart A of part IV of subchapter A 


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

2 taxable year.’’. 

3 (2) CONFORMING AMENDMENTS.— 

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

5 Code is amended to read as follows: 

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

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

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

9 such taxable year, such excess shall be carried to the suc10 ceeding taxable year and added to the credit allowable 

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

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

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

14 ‘‘this section’’. 

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

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

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

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

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

20 ‘‘25B, and 25D’’. 

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

22 this section shall apply to expenditures made in taxable 

23 years beginning after December 31, 2006. 


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

2 SOLAR ENERGY PROPERTY AND FUEL CELL 

3 PROPERTY. 

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

5 168(e)(3) of the Internal Revenue Code of 1986 is amend6 ed by striking ‘‘and’’ at the end of clause (ii), by striking 

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

8 and by inserting after clause (iii) the following new 

9 clauses: 

10 ‘‘(iv) any property which is described 

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

12 (or would be so described if the last sen13 tence of such section did not apply to such 

14 clause), and 

15 ‘‘(v) any property which is described 

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

17 (b) CONFORMING AMENDMENT.—Subclause (I) of 

18 section 168(e)(3)(B)(vi) of the Internal Revenue Code of 

19 1986 is amended to read as follows: 

20 ‘‘(I) would be described in sub21 paragraph (A) of section 48(a)(3) if 

22 ‘wind energy’ were substituted for 

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

24 the last sentence of such section did 

25 not apply to such subparagraph,’’. 


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

2 this section shall apply to property placed in service after 

3 December 31, 2006. 

Æ 


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