I 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Solar Stimulus for Job 

3 Creation and Energy Independence Act of 2009’’. 

4 SEC. 2. TEMPORARY REFUNDABILITY OF SOLAR ENERGY 

5 CREDIT. 

6 (a) RESIDENTIAL SOLAR ENERGY CREDIT.—Sub7 section (c) of section 25D of the Internal Revenue Code 

8 of 1986 (relating to limitation based on amount of tax; 

9 carryforward of unused credit) is amended by adding at 

10 the end the following new paragraph: 

11 ‘‘(3) TEMPORARY REFUNDABILITY OF SOLAR

12 ENERGY CREDIT.— 

13 ‘‘(A) IN GENERAL.—The aggregate credits 

14 allowed to the taxpayer under subpart C shall 

15 be increased by the credit which would be deter16 mined under paragraphs (1) and (2) of sub17 section (a) for expenditures made during the 

18 taxable year without regard to section 26(a)(2) 

19 or paragraphs (1) of this subsection, as the 

20 case may be. Credits allowed under subpart C 

21 by reason of the preceding sentence shall not be 

22 taken into account in determining the excess 

23 described in paragraph (2). 

24 ‘‘(B) TERMINATION.—Subparagraph (A) 

25 shall not apply to any taxable year ending after 

26 December 31, 2010.’’. 


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1 (b) BUSINESS SOLAR ENERGY CREDIT.— 

2 (1) IN GENERAL.—Subsection (c) of section 38 

3 of such Code (relating to limitation based on amount 

4 of tax) is amended by redesignating paragraph (5) 

5 as paragraph (6) and by inserting after paragraph 

6 (4) the following new paragraph: 

7 ‘‘(5) SPECIAL RULES FOR SOLAR ENERGY

8 CREDITS.— 

9 ‘‘(A) IN GENERAL.—In the case of the 

10 solar energy credits— 

11 ‘‘(i) this section and section 39 shall 

12 be applied separately with respect to such 

13 credits, 

14 ‘‘(ii) in applying paragraph (1) to 

15 such credits— 

16 ‘‘(I) the tentative minimum tax 

17 shall be treated as being zero, and 

18 ‘‘(II) the limitation under para19 graph (1) (as modified by subclause 

20 (I)) shall be reduced by the credit al21 lowed under subsection (a) for the 

22 taxable year (other than the solar en23 ergy credits), and 

24 ‘‘(iii) the amount of the solar energy 

25 credits in excess of the limitation under 


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1 paragraph (1) (as modified by subclause 

2 (II)) shall be treated as a credit under sub3 part C. 

4 ‘‘(B) SOLAR ENERGY CREDITS.—For pur5 poses of this subsection, the term ‘solar energy 

6 credits’ means so much of the energy credit as 

7 is attributable to property described in clause 

8 (i) or (ii) of section 48(a)(3)(A). 

9 ‘‘(C) TERMINATION.—This paragraph shall 

10 not apply to any taxable year ending after De11 cember 31, 2010.’’. 

12 (2) CONFORMING AMENDMENTS.— 

13 (A) Subclause (II) of section 

14 38(c)(2)(A)(ii) of such Code is amended by 

15 striking ‘‘and the specified credits’’ and insert16 ing ‘‘the specified credits, and the solar energy 

17 credits’’. 

18 (B) Subclause (II) of section 

19 38(c)(3)(A)(ii) of such Code is amended by 

20 striking ‘‘and the specified credits’’ and insert21 ing ‘‘, the specified credits, and the solar energy 

22 credits’’. 

23 (C) Subclause (II) of section 

24 38(c)(4)(A)(ii) of such Code is amended by inVerDate Nov 24 2008 06:06 Jan 16, 2009 Jkt 079200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H546.IH H546

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1 serting ‘‘and the solar energy credits’’ after 

2 ‘‘specified credits’’. 

3 (D) Paragraph (2) of section 1324(b) of 

4 title 31, United States Code, is amended— 

5 (i) by inserting ‘‘25D(c)(3),’’ before 

6 ‘‘35,’’ and 

7 (ii) by inserting ‘‘38(c)(5),’’ after 

8 ‘‘36,’’. 

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

10 this section shall apply to taxable years beginning after 

11 the date of the enactment of this Act. 

12 SEC. 3. TEMPORARY REFUNDABILITY OF DEPRECIATION 

13 DEDUCTION FOR SOLAR ENERGY PROPERTY. 

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

15 48(a)(2) of the Internal Revenue Code of 1986 (relating 

16 to energy credit) is amended by striking ‘‘and’’ at the end 

17 of clause (i), by redesignating clause (ii) as clause (iii), 

18 and by inserting after clause (i) the following new clause: 

19 ‘‘(ii) at the election of the taxpayer 

20 for any taxable year ending before January 

1, 2011, 331 21 ⁄3 percent of the aggregate de22 ductions which would (but for subpara23 graph (C)) be allowed for the taxable year 

24 for property described in clause (i) or (ii) 

25 of paragraph (3)(A), and’’. 


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1 (b) DENIAL OF DEPRECIATION WHERE CREDIT

2 ELECTED.—Paragraph (2) of section 48(a) of such Code 

3 is amended by adding at the end the following new sub4 paragraph: 

5 ‘‘(C) DENIAL OF DEPRECIATION, ETC., 

6 WHERE CREDIT ELECTED.—No deduction for 

7 depreciation (or amortization in lieu of depre8 ciation) shall be allowed for the taxable year 

9 with respect to property described in clause (i) 

10 or (ii) of paragraph (3)(A) if the taxpayer 

11 makes the election under subparagraph (A)(ii) 

12 with respect to such property. Notwithstanding 

13 the preceding sentence, deductions not allowed 

14 by the preceding sentence shall be treated as al15 lowed for purposes of applying section 1016.’’. 

16 (c) CONFORMING AMENDMENT.—Clause (iii) of sec17 tion 48(a)(2) of such Code is amended by striking ‘‘clause 

18 (i) does not apply’’ and inserting ‘‘neither clause (i) nor 

19 (ii) apply’’. 

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

21 this section shall apply to taxable years beginning after 

22 the date of the enactment of this Act. 


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1 SEC. 4. EXCEPTION FROM PRIVATE ACTIVITY BOND TESTS 

2 FOR FINANCING OF SOLAR ENERGY PROP3 ERTY. 

4 (a) EXCEPTION FROM PRIVATE BUSINESS USE

5 TEST.—Paragraph (6) of section 141(b) of the Internal 

6 Revenue Code of 1986 is amended by adding at the end 

7 the following new subparagraph: 

8 ‘‘(C) SOLAR ENERGY PROPERTY.—For 

9 purposes of subparagraph (A), property de10 scribed in clause (i) or (ii) of section 

11 48(a)(3)(A) shall not be treated as used in a 

12 trade or business.’’. 

13 (b) EXCEPTION FROM PRIVATE LOAN FINANCING

14 TEST.—Paragraph (2) of section 141(c) of such Code (re15 lating to exception for tax assessment, etc., loans) is 

16 amended by striking ‘‘or’’ at the end of subparagraph (B), 

17 by striking the period at the end of subparagraph (C) and 

18 inserting ‘‘, or’’, and by adding at the end the following 

19 new subparagraph: 

20 ‘‘(D) enables the borrower to finance the 

21 acquisition, construction, and installation of 

22 property described in clause (i) or (ii) of section 

23 48(a)(3)(A).’’. 

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

25 this section shall apply to obligations issued after the date 

26 of the enactment of this Act. 


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1 SEC. 5. EXCEPTION FROM SUBSIDIZED ENERGY FINANCING 

2 RULES FOR SOLAR ENERGY PROPERTY. 

3 (a) IN GENERAL.—Subparagraph (C) of section 

4 48(a)(4) of the Internal Revenue Code of 1986 (defining 

5 subsidized energy financing) is amended by adding at the 

6 end the following new sentence: ‘‘Such term shall not in7 clude any loan described in section 141(c)(2)(D).’’ 

8 (b) EFFECTIVE DATE.—The amendment made by 

9 subsection (a) shall apply to property placed in service 

10 after such date in taxable years ending after such date. 

11 SEC. 6. REFUNDABLE INVESTMENT CREDIT FOR PROPERTY 

12 USED TO MANUFACTURE SOLAR ENERGY 

13 PROPERTY. 

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

15 48(a)(3) of the Internal Revenue Code of 1986 (defining 

16 energy property) is amended by striking ‘‘or’’ at the end 

17 of clause (vi), by adding ‘‘or’’ at the end of clause (vii), 

18 and by inserting after clause (vii) the following new clause: 

19 ‘‘(viii) property used to manufacture 

20 equipment described in clause (i) or (ii),’’. 

21 (b) CREDIT TO BE REFUNDABLE.—Section 

22 38(c)(5)(B) of such Code, as added by this Act, is amend23 ed by striking ‘‘or (ii)’’ and inserting ‘‘, (ii), or (viii)’’. 

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

25 this section shall apply to taxable years beginning after 

26 the date of the enactment of this Act. 


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1 SEC. 7. GOVERNMENT PROCUREMENT OF SOLAR ENERGY. 

2 Section 203 of the Energy Policy Act of 2005 (42 

3 U.S.C. 15852) is amended— 

4 (1) by redesignating subsection (d) as sub5 section (e); and 

6 (2) by inserting after subsection (c) the fol7 lowing new subsection (d): 

8 ‘‘(d) CONTRACTS FOR RENEWABLE ENERGY.—Not9 withstanding section 501(b)(1)(B) of title 40, United 

10 States Code, a contract for renewable energy may be made 

11 for a period of not more than 25 years.’’. 

Æ 


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