I 

111TH CONGRESS 

2D SESSION H. R. 5464 

To amend the Internal Revenue Code of 1986 to provide that solar electric 

property need not be located on the property with respect to which 

it is generating electricity in order to qualify for the residential energy 

efficient property credit. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 28, 2010 

Ms. GIFFORDS (for herself, Mr. BLUMENAUER, Mr. THOMPSON of California, 

Mr. POLIS of Colorado, Mr. LUJA ́N, Ms. HIRONO, Mr. GARAMENDI, Mr. 

WU, and Mrs. BONO MACK) introduced the following bill; which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

that solar electric property need not be located on the 

property with respect to which it is generating electricity 

in order to qualify for the residential energy efficient 

property credit. 

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 ‘‘Solar Uniting Neigh5 borhoods Act of 2010’’ or the ‘‘SUN Act’’. 

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1 SEC. 2. MODIFICATION OF CREDIT FOR RESIDENTIAL EN2 ERGY EFFICIENT PROPERTY. 

3 (a) CLARIFICATION WITH RESPECT TO LOCATION OF

4 SOLAR ELECTRIC PROPERTY.—Section 25D(d)(2) of the 

5 Internal Revenue Code of 1986 is amended— 

6 (1) by striking ‘‘The term’’ and inserting the 

7 following: 

8 ‘‘(A) IN GENERAL.—The term’’, and 

9 (2) by adding at the end the following new sub10 paragraph: 

11 ‘‘(B) OFF-SITE PROPERTY.— 

12 ‘‘(i) IN GENERAL.—Such term shall 

13 include an expenditure for qualified prop14 erty described in subparagraph (A) not15 withstanding— 

16 ‘‘(I) whether such qualified prop17 erty is located on the same site as the 

18 dwelling unit for which the electricity 

19 generated from such property is used, 

20 and 

21 ‘‘(II) whether the electricity gen22 erated by the qualified property enters 

23 the electrical grid, so long as such 

24 electricity enters the grid at any point 

25 located in the same State within 

26 which such dwelling unit is connected. 

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1 ‘‘(ii) QUALIFIED PROPERTY.—For 

2 purposes of this subparagraph, the term 

3 ‘qualified property’ means property— 

4 ‘‘(I) which is not used in a trade 

5 or business, and 

6 ‘‘(II) the electricity generated 

7 from which does not give rise to in8 come for the taxable year (or any tax9 able year in the recapture period) in 

10 excess of amounts that would other11 wise be charged to such taxpayer for 

12 electricity used at the taxpayer’s resi13 dence during the year. 

14 ‘‘(iii) RECAPTURE.— 

15 ‘‘(I) IN GENERAL.—The Sec16 retary may provide for the recapture 

17 of the credit under this subsection 

18 with respect to any property described 

19 in this subparagraph which ceases to 

20 be qualified property during the re21 capture period. 

22 ‘‘(II) RECAPTURE PERIOD.—For 

23 purposes of this subparagraph, the re24 capture period with respect to any 

25 qualified property is the first 5 taxmstockstill on DSKH9S0YB1PROD with BILLS

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1 able years beginning after the taxable 

2 year for which a credit is allowed 

3 under this section with respect to such 

4 property.’’. 

5 (b) LIMITATION WITH RESPECT TO OFF-SITE SOLAR

6 ELECTRIC PROPERTY.—Subsection (b) of section 25D of 

7 such Code is amended by adding at the end the following 

8 new paragraph: 

9 ‘‘(3) MAXIMUM CREDIT FOR OFF-SITE SOLAR

10 ELECTRIC PROPERTY.—In the case of any qualified 

11 solar electric property expenditure with respect to 

12 property not located on the same site as the dwelling 

13 unit, the credit allowed under subsection (a) (deter14 mined without regard to subsection (c)) for any tax15 able year shall not exceed $50,000.’’. 

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

17 this section shall apply to taxable years beginning after 

18 the date of the enactment of this Act. 

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