II 

111TH CONGRESS 

1ST SESSION S. 284 

To amend the Internal Revenue Code of 1986 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 SENATE OF THE UNITED STATES 

JANUARY 21, 2009 

Mr. MENENDEZ 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 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, 

3 SECTION 1. SHORT TITLE. 

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

5 Creation and Energy Independence Act of 2009’’. 


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•S 284 IS

1 SEC. 2. REFUNDABLE INVESTMENT CREDIT FOR PROPERTY 

2 USED TO MANUFACTURE SOLAR ENERGY 

3 PROPERTY. 

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

5 48(a)(3) of the Internal Revenue Code of 1986 (defining 

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

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

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

9 ‘‘(viii) property used to manufacture 

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

11 (b) CREDIT TO BE REFUNDABLE.— 

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

13 of the Internal Revenue Code of 1986 (relating to 

14 limitation based on amount of tax) is amended by 

15 redesignating paragraph (5) as paragraph (6) and 

16 by inserting after paragraph (4) the following new 

17 paragraph: 

18 ‘‘(5) SPECIAL RULES FOR SOLAR ENERGY IN19 VESTMENT CREDIT.— 

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

21 solar energy investment credit— 

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

23 be applied separately with respect to such 

24 credit, 

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

26 such credit— 


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1 ‘‘(I) the tentative minimum tax 

2 shall be treated as being zero, and 

3 ‘‘(II) the limitation under para4 graph (1) (as modified by subclause 

5 (I)) shall be reduced by the credit al6 lowed under subsection (a) for the 

7 taxable year (other than the solar en8 ergy investment credit), and 

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

10 investment credit in excess of the limita11 tion under paragraph (1) (as modified by 

12 subclause (II)) shall be treated as a credit 

13 under subpart C. 

14 ‘‘(B) SOLAR ENERGY INVESTMENT CRED15 IT.—For purposes of this subsection, the term 

16 ‘solar energy investment credit’ means so much 

17 of the energy credit as is attributable to prop18 erty described in clause (viii) of section 

19 48(a)(3)(A). 

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

21 not apply to any taxable year ending after De22 cember 31, 2010.’’. 

23 (2) CONFORMING AMENDMENTS.— 

24 (A) Subclause (II) of section 

25 38(c)(2)(A)(ii) of such Code is amended by 


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1 striking ‘‘and the specified credits’’ and insert2 ing ‘‘the specified credits, and the solar energy 

3 investment credit’’. 

4 (B) Subclause (II) of section 

5 38(c)(3)(A)(ii) of such Code is amended by 

6 striking ‘‘and the specified credits’’ and insert7 ing ‘‘, the specified credits, and the solar energy 

8 investment credit’’. 

9 (C) Subclause (II) of section 

10 38(c)(4)(A)(ii) of such Code is amended by in11 serting ‘‘and the solar energy investment cred12 it’’ after ‘‘specified credits’’. 

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

14 title 31, United States Code, is amended by in15 serting ‘‘38(c)(5),’’ after ‘‘36,’’. 

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. 

19 SEC. 3. EXCEPTION FROM SUBSIDIZED ENERGY FINANCING 

20 RULES FOR SOLAR ENERGY PROPERTY. 

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

22 48(a)(4) of the Internal Revenue Code of 1986 (defining 

23 subsidized energy financing) is amended by adding at the 

24 end the following new sentence: ‘‘Such term shall not in25 clude any loan described in section 141(c)(2)(D).’’ 


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

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

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

4 SEC. 4. EXCEPTION FROM PRIVATE ACTIVITY BOND TESTS 

5 FOR FINANCING OF SOLAR ENERGY PROP6 ERTY. 

7 (a) EXCEPTION FROM PRIVATE BUSINESS USE

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

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

10 the following new subparagraph: 

11 ‘‘(C) SOLAR ENERGY PROPERTY.—For 

12 purposes of subparagraph (A), property de13 scribed in clause (i) or (ii) of section 

14 48(a)(3)(A) shall not be treated as used in a 

15 trade or business.’’. 

16 (b) EXCEPTION FROM PRIVATE LOAN FINANCING

17 TEST.—Paragraph (2) of section 141(c) of the Internal 

18 Revenue Code of 1986 (relating to exception for tax as19 sessment, etc., loans) is amended by striking ‘‘or’’ at the 

20 end of subparagraph (B), by striking the period at the 

21 end of subparagraph (C) and inserting ‘‘, or’’, and by add22 ing at the end the following new subparagraph: 

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

24 acquisition, construction, and installation of 


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

2 48(a)(3)(A).’’. 

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

4 this section shall apply to obligations issued after the date 

5 of the enactment of this Act. 

6 SEC. 5. GOVERNMENT PROCUREMENT OF SOLAR ENERGY. 

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

8 U.S.C. 15852) is amended— 

9 (1) by redesignating subsection (d) as sub10 section (e); and 

11 (2) by inserting after subsection (c) the fol12 lowing new subsection (d): 

13 ‘‘(d) CONTRACTS FOR RENEWABLE ENERGY.—Not14 withstanding section 501(b)(1)(B) of title 40, United 

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

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

Æ 


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