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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 546 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 546

   To amend the Internal Revenue Code of 1986 to treat certain solar 
energy credits as refundable credits, to allow a new refundable credit 
 for equipment used to manufacture solar energy property, to waive the 
application of the subsidized financing rules to such property, and for 
                            other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            January 14, 2009

 Mr. Thompson of California (for himself and Ms. Giffords) introduced 
  the following bill; which was referred to the Committee on Ways and 
  Means, and in addition to the Committee on Oversight and Government 
 Reform, 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 Internal Revenue Code of 1986 to treat certain solar 
energy credits as refundable credits, to allow a new refundable credit 
 for equipment used to manufacture solar energy property, to waive the 
application of the subsidized financing rules to such 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 ``Solar Stimulus for Job Creation and 
Energy Independence Act of 2009''.

SEC. 2. TEMPORARY REFUNDABILITY OF SOLAR ENERGY CREDIT.

    (a) Residential Solar Energy Credit.--Subsection (c) of section 25D 
of the Internal Revenue Code of 1986 (relating to limitation based on 
amount of tax; carryforward of unused credit) is amended by adding at 
the end the following new paragraph:
            ``(3) Temporary refundability of solar energy credit.--
                    ``(A) In general.--The aggregate credits allowed to 
                the taxpayer under subpart C shall be increased by the 
                credit which would be determined under paragraphs (1) 
                and (2) of subsection (a) for expenditures made during 
                the taxable year without regard to section 26(a)(2) or 
                paragraphs (1) of this subsection, as the case may be. 
                Credits allowed under subpart C by reason of the 
                preceding sentence shall not be taken into account in 
                determining the excess described in paragraph (2).
                    ``(B) Termination.--Subparagraph (A) shall not 
                apply to any taxable year ending after December 31, 
                2010.''.
    (b) Business Solar Energy Credit.--
            (1) In general.--Subsection (c) of section 38 of such Code 
        (relating to limitation based on amount of tax) is amended by 
        redesignating paragraph (5) as paragraph (6) and by inserting 
        after paragraph (4) the following new paragraph:
            ``(5) Special rules for solar energy credits.--
                    ``(A) In general.--In the case of the solar energy 
                credits--
                            ``(i) this section and section 39 shall be 
                        applied separately with respect to such 
                        credits,
                            ``(ii) in applying paragraph (1) to such 
                        credits--
                                    ``(I) the tentative minimum tax 
                                shall be treated as being zero, and
                                    ``(II) the limitation under 
                                paragraph (1) (as modified by subclause 
                                (I)) shall be reduced by the credit 
                                allowed under subsection (a) for the 
                                taxable year (other than the solar 
                                energy credits), and
                            ``(iii) the amount of the solar energy 
                        credits in excess of the limitation under 
                        paragraph (1) (as modified by subclause (II)) 
                        shall be treated as a credit under subpart C.
                    ``(B) Solar energy credits.--For purposes of this 
                subsection, the term `solar energy credits' means so 
                much of the energy credit as is attributable to 
                property described in clause (i) or (ii) of section 
                48(a)(3)(A).
                    ``(C) Termination.--This paragraph shall not apply 
                to any taxable year ending after December 31, 2010.''.
            (2) Conforming amendments.--
                    (A) Subclause (II) of section 38(c)(2)(A)(ii) of 
                such Code is amended by striking ``and the specified 
                credits'' and inserting ``the specified credits, and 
                the solar energy credits''.
                    (B) Subclause (II) of section 38(c)(3)(A)(ii) of 
                such Code is amended by striking ``and the specified 
                credits'' and inserting ``, the specified credits, and 
                the solar energy credits''.
                    (C) Subclause (II) of section 38(c)(4)(A)(ii) of 
                such Code is amended by inserting ``and the solar 
                energy credits'' after ``specified credits''.
                    (D) Paragraph (2) of section 1324(b) of title 31, 
                United States Code, is amended--
                            (i) by inserting ``25D(c)(3),'' before 
                        ``35,'' and
                            (ii) by inserting ``38(c)(5),'' after 
                        ``36,''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 3. TEMPORARY REFUNDABILITY OF DEPRECIATION DEDUCTION FOR SOLAR 
              ENERGY PROPERTY.

    (a) In General.--Subparagraph (A) of section 48(a)(2) of the 
Internal Revenue Code of 1986 (relating to energy credit) is amended by 
striking ``and'' at the end of clause (i), by redesignating clause (ii) 
as clause (iii), and by inserting after clause (i) the following new 
clause:
                            ``(ii) at the election of the taxpayer for 
                        any taxable year ending before January 1, 2011, 
                        33\1/3\ percent of the aggregate deductions 
                        which would (but for subparagraph (C)) be 
                        allowed for the taxable year for property 
                        described in clause (i) or (ii) of paragraph 
                        (3)(A), and''.
    (b) Denial of Depreciation Where Credit Elected.--Paragraph (2) of 
section 48(a) of such Code is amended by adding at the end the 
following new subparagraph:
                    ``(C) Denial of depreciation, etc., where credit 
                elected.--No deduction for depreciation (or 
                amortization in lieu of depreciation) shall be allowed 
                for the taxable year with respect to property described 
                in clause (i) or (ii) of paragraph (3)(A) if the 
                taxpayer makes the election under subparagraph (A)(ii) 
                with respect to such property. Notwithstanding the 
                preceding sentence, deductions not allowed by the 
                preceding sentence shall be treated as allowed for 
                purposes of applying section 1016.''.
    (c) Conforming Amendment.--Clause (iii) of section 48(a)(2) of such 
Code is amended by striking ``clause (i) does not apply'' and inserting 
``neither clause (i) nor (ii) apply''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 4. EXCEPTION FROM PRIVATE ACTIVITY BOND TESTS FOR FINANCING OF 
              SOLAR ENERGY PROPERTY.

    (a) Exception From Private Business Use Test.--Paragraph (6) of 
section 141(b) of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new subparagraph:
                    ``(C) Solar energy property.--For purposes of 
                subparagraph (A), property described in clause (i) or 
                (ii) of section 48(a)(3)(A) shall not be treated as 
                used in a trade or business.''.
    (b) Exception From Private Loan Financing Test.--Paragraph (2) of 
section 141(c) of such Code (relating to exception for tax assessment, 
etc., loans) is amended by striking ``or'' at the end of subparagraph 
(B), by striking the period at the end of subparagraph (C) and 
inserting ``, or'', and by adding at the end the following new 
subparagraph:
                    ``(D) enables the borrower to finance the 
                acquisition, construction, and installation of property 
                described in clause (i) or (ii) of section 
                48(a)(3)(A).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to obligations issued after the date of the enactment of this 
Act.

SEC. 5. EXCEPTION FROM SUBSIDIZED ENERGY FINANCING RULES FOR SOLAR 
              ENERGY PROPERTY.

    (a) In General.--Subparagraph (C) of section 48(a)(4) of the 
Internal Revenue Code of 1986 (defining subsidized energy financing) is 
amended by adding at the end the following new sentence: ``Such term 
shall not include any loan described in section 141(c)(2)(D).''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to property placed in service after such date in taxable years 
ending after such date.

SEC. 6. REFUNDABLE INVESTMENT CREDIT FOR PROPERTY USED TO MANUFACTURE 
              SOLAR ENERGY PROPERTY.

    (a) In General.--Subparagraph (A) of section 48(a)(3) of the 
Internal Revenue Code of 1986 (defining energy property) is amended by 
striking ``or'' at the end of clause (vi), by adding ``or'' at the end 
of clause (vii), and by inserting after clause (vii) the following new 
clause:
                            ``(viii) property used to manufacture 
                        equipment described in clause (i) or (ii),''.
    (b) Credit To Be Refundable.--Section 38(c)(5)(B) of such Code, as 
added by this Act, is amended by striking ``or (ii)'' and inserting ``, 
(ii), or (viii)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 7. GOVERNMENT PROCUREMENT OF SOLAR ENERGY.

    Section 203 of the Energy Policy Act of 2005 (42 U.S.C. 15852) is 
amended--
            (1) by redesignating subsection (d) as subsection (e); and
            (2) by inserting after subsection (c) the following new 
        subsection (d):
    ``(d) Contracts for Renewable Energy.--Notwithstanding section 
501(b)(1)(B) of title 40, United States Code, a contract for renewable 
energy may be made for a period of not more than 25 years.''.
                                 <all>
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