II 

111TH CONGRESS 

1ST SESSION S. 320 

To ensure that short- and long-term investment decisions critical to economic 

stimulus and job creation in clean energy are supported by Federal 

programs and reliable tax incentives. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 26, 2009 

Ms. CANTWELL introduced the following bill; which was read twice and 

referred to the Committee on Finance 

A BILL 

To ensure that short- and long-term investment decisions 

critical to economic stimulus and job creation in clean 

energy are supported by Federal programs and reliable 

tax incentives. 

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; ETC. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Clean Energy Stimulus and Investment Assurance Act 

6 of 2009’’. 

7 (b) AMENDMENT OF 1986 CODE.—Except as other8 wise expressly provided, whenever in this Act an amendVerDate Nov 24 2008 04:45 Jan 27, 2009 Jkt 079200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S320.IS S320

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1 ment or repeal is expressed in terms of an amendment 

2 to, or repeal of, a section or other provision, the reference 

3 shall be considered to be made to a section or other provi4 sion of the Internal Revenue Code fo 1986. 

5 (c) TABLE OF CONTENTS.—The table of contents for 

6 this Act is as follows: 

Sec. 1. Short title; etc. 

TITLE I—CREATING HIGH-WAGE GREEN COLLAR JOBS 

Sec. 101. Alternative energy equipment manufacturing project credit. 

Sec. 102. Fund Green Jobs Act. 

TITLE II—REVITALIZING OUR NATION’S ELECTRICITY GRID 

Sec. 201. Smart grid research and development program. 

Sec. 202. Smart grid regional demonstration initiative. 

Sec. 203. Smart grid Federal matching fund. 

Sec. 204. Recovery period for depreciation of smart meters and smart grid systems. 

Sec. 205. Bonneville Power Administration. 

TITLE III—ENSURING CLEAN ENERGY DEPLOYMENT 

Sec. 301. Shift in carryback and carryforward of unused general business credits. 

Sec. 302. Extension and modification of renewable electricity production credit. 

Sec. 303. Expansion and extension of new clean renewable energy bonds. 

Sec. 304. 30-year contracts for Federal purchases of electricity generated by renewable energy. 

TITLE IV—REDUCING FOREIGN OIL DEPENDENCE 

Sec. 401. Incentives for manufacturing facilities producing plug-in electric drive 

motor vehicle and components. 

Sec. 402. Consumer incentives for plug-in electric drive motor vehicles. 

Sec. 403. Transportation sector electrification programs. 

Sec. 404. Energy storage competitiveness. 

Sec. 405. Advanced battery manufacturing. 

Sec. 406. Extension of credits for biodiesel and renewable diesel. 

Sec. 407. Expansion and extension of electric and alternative fuel vehicle refueling property credit. 

TITLE V—ENERGY EFFICIENCY INVESTMENTS 

Sec. 501. Modification of credit for residential energy efficient property. 

Sec. 502. Business credit for qualified energy storage air conditioner property. 

Sec. 503. Extension and modification of new energy efficient home credit. 

Sec. 504. Extension and modification of deduction for energy efficient commercial buildings. 


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Sec. 505. Extension and modification of nonbusiness energy property. 

Sec. 506. Tax credits for green roofs. 

Sec. 507. Repeal of certain limitations on credit for renewable energy property. 

Sec. 508. Energy efficient appliance rebate program and Energy Star. 

1 TITLE I—CREATING HIGH-WAGE 

2 GREEN COLLAR JOBS 

3 SEC. 101. ALTERNATIVE ENERGY EQUIPMENT MANUFAC4 TURING PROJECT CREDIT. 

5 (a) IN GENERAL.—Section 46 (relating to amount of 

6 credit) is amended by striking ‘‘and’’ at the end of para7 graph (3), by striking the period at the end of paragraph 

8 (4), and by adding at the end the following new para9 graph: 

10 ‘‘(5) the alternative energy equipment manufac11 turing project credit.’’. 

12 (b) AMOUNT OF CREDIT.—Subpart E of part IV of 

13 subchapter A of chapter 1 (relating to rules for computing 

14 investment credit) is amended by inserting after section 

15 48B the following new section: 

16 ‘‘SEC. 48C. ALTERNATIVE ENERGY EQUIPMENT MANUFAC17 TURING PROJECT CREDIT. 

18 ‘‘(a) IN GENERAL.—For purposes of section 46, the 

19 alternative energy equipment manufacturing project credit 

20 for any taxable year is an amount equal to 30 percent 

21 of the qualified investment for such taxable year with re22 spect to any alternative energy equipment manufacturing 

23 project of the taxpayer. 


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1 ‘‘(b) QUALIFIED INVESTMENT.— 

2 ‘‘(1) IN GENERAL.—For purposes of subsection 

3 (a), the qualified investment for any taxable year is 

4 the basis of eligible property placed in service by the 

5 taxpayer during such taxable year which is part of 

6 an alternative energy equipment manufacturing 

7 project— 

8 ‘‘(A)(i) the construction, reconstruction, or 

9 erection of which is completed by the taxpayer 

10 after October 31, 2008, or 

11 ‘‘(ii) which is acquired by the taxpayer if 

12 the original use of such property commences 

13 with the taxpayer after October 31, 2008, 

14 ‘‘(B) with respect to which depreciation (or 

15 amortization in lieu of depreciation) is allow16 able. 

17 ‘‘(2) SPECIAL RULE FOR DUAL USE PROP18 ERTY.—In the case of any eligible property which is 

19 used to produce both property described in sub20 section (c)(1)(A) and other property which is prop21 erty so described, the amount of qualified investment 

22 taken into account under subsection (a) shall be re23 duced by an amount equal to— 


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1 ‘‘(A) the total amount of such qualified in2 vestment (determined before the application of 

3 this paragraph), multiplied by 

4 ‘‘(B) the percentage of property expected 

5 to be produced which is not property so de6 scribed. 

7 ‘‘(3) CERTAIN QUALIFIED PROGRESS EXPENDI8 TURES RULES MADE APPLICABLE.—Rules similar to 

9 the rules of subsections (c)(4) and (d) of section 46 

10 (as in effect on the day before the enactment of the 

11 Revenue Reconciliation Act of 1990) shall apply for 

12 purposes of this section. 

13 ‘‘(c) DEFINITIONS.— 

14 ‘‘(1) ALTERNATIVE ENERGY EQUIPMENT MANU15 FACTURING PROJECT.—The term ‘alternative energy 

16 equipment manufacturing project’ means a project— 

17 ‘‘(A) which re-equips, expands, or estab18 lishes an eligible manufacturing facility for the 

19 production of property which is— 

20 ‘‘(i) designed to be used to produce 

21 energy from the sun, wind, geothermal de22 posits (within the meaning of section 

23 613(e)(2)), fuel cells, or microturbines, 

24 ‘‘(ii) any battery, electric motor or 

25 generator, or power control unit which is 


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1 designed specifically for use in a new quali2 fied plug-in electric drive motor vehicle (as 

3 defined by section 30D(c)), 

4 ‘‘(iii) electricity generation, trans5 mission, or distribution infrastructure or 

6 equipment directly related to enabling 

7 smart grid functions (as defined in section 

8 1306(d) of Energy Independence and Se9 curity Act of 2007), or, 

10 ‘‘(iv) otherwise approved by the Sec11 retary, in consultation with the Secretary 

12 of Energy, as property designed to be used 

13 in the production of energy from alter14 native sources, 

15 ‘‘(B) any portion of the qualified invest16 ment of which is certified under the qualifying 

17 advanced energy project program as eligible for 

18 a credit under this section. 

19 ‘‘(2) ELIGIBLE PROPERTY.—The term ‘eligible 

20 property’ means any property which is part of a 

21 qualifying advanced energy project and is necessary 

22 for the production of property described in para23 graph (1)(A). 

24 ‘‘(3) ELIGIBLE MANUFACTURING FACILITY.— 

25 The term ‘eligible manufacturing facility’ means any 


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1 manufacturing facility for which more than 50 per2 cent of the gross receipts for the taxable year are de3 rived from sales of eligible property. 

4 ‘‘(d) ALTERNATIVE ENERGY EQUIPMENT PROJECT

5 PROGRAM.— 

6 ‘‘(1) ESTABLISHMENT.—Not later than 180 

7 days after the date of enactment of this section, the 

8 Secretary, in consultation with the Secretary of En9 ergy, shall establish a alternative energy equipment 

10 project program to consider and award certifications 

11 for qualified investments eligible for credits under 

12 this section to qualifying energy project sponsors 

13 under this section. 

14 ‘‘(2) CERTIFICATION.— 

15 ‘‘(A) APPLICATION PERIOD.—Each appli16 cant for certification under this paragraph shall 

17 submit an application meeting the requirements 

18 of subparagraph (B). An applicant may only 

19 submit an application during the 3-year period 

20 beginning on the date the Secretary establishes 

21 the program under paragraph (1). 

22 ‘‘(B) REQUIREMENTS FOR APPLICATIONS

23 FOR CERTIFICATION.—An application under 

24 subparagraph (A) shall contain such informa25 tion as the Secretary may require in order to 


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1 make a determination to accept or reject an ap2 plication for certification as meeting the re3 quirements under subsection (c)(1). Any infor4 mation contained in the application shall be 

5 protected as provided in section 552(b)(4) of 

6 title 5, United States Code. 

7 ‘‘(C) TIME TO ACT UPON APPLICATIONS

8 FOR CERTIFICATION.—The Secretary shall issue 

9 a determination as to whether an applicant has 

10 met the requirements under subsection (c)(1) 

11 within 60 days following the date of submittal 

12 of the application for certification. 

13 ‘‘(D) TIME TO MEET CRITERIA FOR CER14 TIFICATION.—Each applicant for certification 

15 shall have 2 years from the date of acceptance 

16 by the Secretary of the application during 

17 which to provide to the Secretary evidence that 

18 the requirements under subsection (c)(1) have 

19 been met. 

20 ‘‘(E) PERIOD OF ISSUANCE.—An applicant 

21 which receives a certification shall have 5 years 

22 from the date of issuance of the certification in 

23 order to place the project in service and if such 

24 project is not placed in service by that time peVerDate Nov 24 2008 04:45 Jan 27, 2009 Jkt 079200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S320.IS S320

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1 riod then the certification shall no longer be 

2 valid. 

3 ‘‘(3) AGGREGATE CREDITS.—The aggregate 

4 credits allowed under subsection (a) for projects cer5 tified by the Secretary under paragraph (2) may not 

6 exceed $6,000,000,000 per calendar year.’’. 

7 (c) COORDINATION WITH ENERGY CREDIT.— 

8 (1) IN GENERAL.—Section 48(a)(2)(B) is 

9 amended by inserting ‘‘or to a qualified investment 

10 (as defined under section 48C(b))’’ before the period 

11 at the end. 

12 (2) CONFORMING AMENDMENT.—The heading 

13 of section 48(a)(2)(B) is amended by striking ‘‘RE14 HABILITATION CREDIT’’ and inserting ‘‘OTHER

15 CREDITS’’. 

16 (d) CONFORMING AMENDMENTS.— 

17 (1) Section 49(a)(1)(C) is amended by striking 

18 ‘‘and’’ at the end of clause (iii), by striking clause 

19 (iv), and by adding after clause (iv) the following 

20 new clause: 

21 ‘‘(v) the basis of any property which 

22 is part of an alternative energy equipment 

23 manufacturing project credit under section 

24 48C.’’. 


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1 (2) The table of sections for subpart E of part 

2 IV of subchapter A of chapter 1 is amended by in3 serting after the item relating to section 48B the fol4 lowing new item: 

‘‘48C. Alternative energy equipment manufacturing project credit.’’. 

5 (e) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to periods after the date of the 

7 enactment of this Act, under rules similar to the rules of 

8 section 48(m) of the Internal Revenue Code of 1986 (as 

9 in effect on the day before the date of the enactment of 

10 the Revenue Reconciliation Act of 1990). 

11 SEC. 102. FUND GREEN JOBS ACT. 

12 Out of any sums in the Treasury of the United States 

13 not otherwise appropriated, $125,000,000,000 is appro14 priated for expenses necessary for the manufacturing of 

15 advanced batteries authorized under section 136(b)(1)(B) 

16 of the Energy Independence and Security Act of 2007 (42 

17 U.S.C. 17013(b)(1)(B)). Such sums shall remain available 

18 until expended. 

19 TITLE II—REVITALIZING OUR 

20 NATION’S ELECTRICITY GRID 

21 SEC. 201. SMART GRID RESEARCH AND DEVELOPMENT 

22 PROGRAM. 

23 Out of any sums in the Treasury of the United States 

24 not otherwise appropriated, $400,000,000 shall be appro25 priated for expenses necessary for the program authorized 


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1 under section 1304(a) of the Energy Independence and 

2 Security Act of 2007 (42 U.S.C. 17384(a)). Such sums 

3 shall remain available until expended. 

4 SEC. 202. SMART GRID REGIONAL DEMONSTRATION INITIA5 TIVE. 

6 Out of any sums in the Treasury of the United States 

7 not otherwise appropriated, $200,000,000 is appropriated 

8 for expenses necessary for the initiative authorized under 

9 section 1304(b) of the Energy Independence and Security 

10 Act of 2007 (42 U.S.C. 17384(b)). Such sums shall re11 main available until expended. 

12 SEC. 203. SMART GRID FEDERAL MATCHING FUND. 

13 Out of any sums in the Treasury of the United States 

14 not otherwise appropriated, $200,000,000 is appropriated 

15 for expenses necessary for grant program authorized 

16 under section 1306 of the Energy Independence and Secu17 rity Act of 2007 (42 U.S.C. 17386). Such sums shall re18 main available until expended. 

19 SEC. 204. RECOVERY PERIOD FOR DEPRECIATION OF 

20 SMART METERS AND SMART GRID SYSTEMS. 

21 (a) 5-YEAR RECOVERY PERIOD.— 

22 (1) IN GENERAL.—Subparagraph (B) of section 

23 168(e)(3) is amended by striking ‘‘and’’ at the end 

24 of clause (vi), by striking the period at the end of 


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1 clause (vii) and inserting ‘‘, and’’, and by adding at 

2 the end the following new clauses: 

3 ‘‘(viii) any qualified smart electric 

4 meter, and 

5 ‘‘(ix) any qualified smart electric grid 

6 system.’’. 

7 (2) CONFORMING AMENDMENTS.—Subpara8 graph (D) of section 168(e)(3) is amended by insert9 ing ‘‘and’’ at the end of clause (i), by striking the 

10 comma at the end of clause (ii) and inserting a pe11 riod, and by striking clauses (iii) and (iv). 

12 (b) TECHNICAL AMENDMENTS.—Paragraphs 

13 (18)(A)(ii) and (19)(A)(ii) of section 168(i) are each 

14 amended by striking ‘‘16 years’’ and inserting ‘‘10 years’’. 

15 (c) EFFECTIVE DATES.— 

16 (1) IN GENERAL.—Except as provided in para17 graph (2), the amendments made by this section 

18 shall apply to property placed in service after the 

19 date of the enactment of this Act. 

20 (2) TECHNICAL AMENDMENT.—The amend21 ments made by subsection (b) shall take effect as if 

22 included in section 306 of the Energy Improvement 

23 and Extension Act of 2008. 


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1 SEC. 205. BONNEVILLE POWER ADMINISTRATION. 

2 For the purposes of providing funds to assist in fi3 nancing the construction, acquisition, and replacement of 

4 the transmission system of the Bonneville Power Adminis5 tration and to implement the authority of the Adminis6 trator under the Pacific Northwest Electric Power Plan7 ning and Conservation Act (16 U.S.C. 839 et seq.), an 

8 additional $5,000,000,000 in borrowing authority is made 

9 available under the Federal Columbia River Transmission 

10 System Act (16 U.S.C. 838 et seq.), to remain outstanding 

11 at any time. 

12 TITLE III—ENSURING CLEAN 

13 ENERGY DEPLOYMENT 

14 SEC. 301. SHIFT IN CARRYBACK AND CARRYFORWARD OF 

15 UNUSED GENERAL BUSINESS CREDITS. 

16 (a) IN GENERAL.—Section 39(a)(1) is amended— 

17 (1) by striking ‘‘the taxable year’’ in subpara18 graph (A) and inserting ‘‘each of the 5 taxable 

19 years’’, and 

20 (2) by striking ‘‘20 taxable years’’ in subpara21 graph (B) and inserting ‘‘15 taxable years’’. 

22 (b) CONFORMING AMENDMENTS.— 

23 (1) The heading for paragraph (1) of section 

24 39(a) is amended— 

25 (A) by striking ‘‘1-YEAR’’ and inserting ‘‘5- 

26 YEAR’’, and 


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1 (B) by striking ‘‘20-YEAR’’ and inserting 

2 ‘‘15-YEAR’’. 

3 (2) Section 39(a)(2)(A) is amended by striking 

4 ‘‘21 taxable years’’ and inserting ‘‘20 taxable years’’. 

5 (3) Section 39(a)(2)(B) is amended— 

6 (A) by striking ‘‘20 taxable years’’ and in7 serting ‘‘19 taxable years’’, and 

8 (B) by striking ‘‘20 YEARS’’ in the heading 

9 thereof and inserting ‘‘19 YEARS’’. 

10 (4) Section 39(a) is amended by striking para11 graph (3). 

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

13 this section shall apply to credits arising in taxable years 

14 beginning after the date of the enactment of this Act. 

15 SEC. 302. EXTENSION AND MODIFICATION OF RENEWABLE 

16 ELECTRICITY PRODUCTION CREDIT. 

17 (a) EXTENSION.—Section 45(d) is amended— 

18 (1) by striking ‘‘January 1, 2010’’ in paragraph 

19 (1) and inserting ‘‘January 1, 2014’’, 

20 (2) by striking ‘‘January 1, 2011’’ each place 

21 it appears in paragraphs (2), (3), (4), (5), (6), (7), 

22 and (9) and inserting ‘‘January 1, 2014’’, and 

23 (3) by striking ‘‘January 1, 2012’’ in paragraph 

24 (11)(B) and inserting ‘‘January 1, 2014’’. 


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1 (b) CREDIT TO INCLUDE PRODUCTION OF THERMAL

2 ENERGY.— 

3 (1) IN GENERAL.—Section 45 is amended by 

4 adding at the end the following new subsection: 

5 ‘‘(f) CREDIT FOR PRODUCTION OF THERMAL EN6 ERGY.— 

7 ‘‘(1) IN GENERAL.—In the case of a taxpayer 

8 who— 

9 ‘‘(A) produces thermal energy from closed10 loop biomass, open-loop biomass, or geothermal 

11 energy at a qualified facility, and 

12 ‘‘(B) makes an election under this sub13 section with respect to such facility, 

14 subsection (a) shall be applied by substituting ‘each 

15 3,413 Btus of thermal energy (or fraction thereof)’ 

16 for ‘the kilowatt hours of electricity’ in paragraph 

17 (2) thereof. 

18 ‘‘(2) DENIAL OF DOUBLE BENEFIT.—If an elec19 tion under this subsection is in effect with respect 

20 to any facility, no credit shall be allowed under sub21 section (a) with respect to the production of elec22 tricity at such facility. 

23 ‘‘(3) ELECTION.— 

24 ‘‘(A) IN GENERAL.—An election under this 

25 subsection shall specify the facility to which the 


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1 election applies and shall be in such manner as 

2 the Secretary may by regulations prescribe. 

3 ‘‘(B) ELECTION IRREVOCABLE.—Any elec4 tion made under this subsection may not be re5 voked except with the consent of the Sec6 retary.’’. 

7 (2) CONFORMING AMENDMENTS.— 

8 (A) Section 45(c)(2) is amended by insert9 ing ‘‘or thermal energy’’ after ‘‘electricity’’. 

10 (B) Section 45(d) is amended by inserting 

11 ‘‘or thermal energy’’ after ‘‘electricity’’ each 

12 place it appears in paragraphs (2), (3), and (4). 

13 (C) Section 45(e) is amended by inserting 

14 ‘‘or thermal energy’’ after ‘‘electricity’’ each 

15 place it appears in paragraphs (1) and (4). 

16 (D) The heading of section 45 is amended 

17 by inserting ‘‘AND THERMAL ENERGY’’ after 

18 ‘‘ELECTRICITY’’. 

19 (E) The item relating to section 45 in the 

20 table of sections for subpart D of part IV of 

21 subchapter A of chapter 1 is amended by in22 serting ‘‘and thermal energy’’ after ‘‘Elec23 tricity’’. 

24 (c) ELIMINATION OF REDUCED CREDIT RATE FOR

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1 CILITIES.—Paragraph (4) of section 45(b) is amended to 

2 read as follows: 

3 ‘‘(4) CREDIT PERIOD FOR ELECTRICITY PRO4 DUCED AND SOLD FROM CERTAIN FACILITIES.— 

5 ‘‘(A) IN GENERAL.—Except as provided in 

6 subparagraph (B) or subparagraph (C), in the 

7 case of any facility described in paragraph (3), 

8 (4), (5), (6), or (7) of subsection (d), the 5-year 

9 period beginning on the date the facility was 

10 originally placed in service shall be substituted 

11 for the 10-year period in subsection 

12 (a)(2)(A)(ii). 

13 ‘‘(B) CERTAIN OPEN-LOOP BIOMASS FA14 CILITIES.—In the case of any facility described 

15 in subsection (d)(3)(A)(ii) placed in service be16 fore October 22, 2004, the 5-year period begin17 ning on January 1, 2005, shall be substituted 

18 for the 10-year period in subsection 

19 (a)(2)(A)(ii). 

20 ‘‘(C) TERMINATION.—Subparagraph (A) 

21 shall not apply to any facility placed in service 

22 after August 8, 2005.’’. 

23 (d) CREDIT ALLOWED FOR ZERO-CARBON EMIS24 SIONS RESOURCE FACILITIES.— 


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1 (1) IN GENERAL.—Section 45(c)(1) is amended 

2 by striking ‘‘and’’ at the end of subparagraph (H), 

3 by striking the period at the end of subparagraph 

4 (I) and inserting ‘‘, and’’, and by adding at the end 

5 the following new subparagraph: 

6 ‘‘(J) zero-carbon emissions resources.’’. 

7 (2) DEFINITION OF RESOURCES.—Section 45(c) 

8 is amended by adding at the end the following new 

9 paragraph: 

10 ‘‘(11) ZERO-CARBON EMISSIONS RESOURCE.— 

11 The term ‘zero-carbon emission resource’ means any 

12 resource— 

13 ‘‘(A) not described in paragraphs (2) 

14 through (10), 

15 ‘‘(B) from which electricity or thermal en16 ergy can be produced without producing carbon 

17 emissions, and 

18 ‘‘(C) which is approved by the Secretary, 

19 after consultation with the Secretary of En20 ergy.’’. 

21 (3) FACILITIES.—Section 45(d) is amended by 

22 adding at the end the following new paragraph: 

23 ‘‘(11) ZERO-CARBON EMISSIONS RESOURCE FA24 CILITY.—In the case of a facility using a zero-carbon 

25 emissions resource to produce electricity or thermal 


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1 energy, the term ‘qualified facility’ means any facil2 ity owned by the taxpayer which is originally placed 

3 in service after the date of the enactment of this 

4 paragraph and before January 1, 2014.’’. 

5 (e) MODIFICATION OF RENEWABLE ELECTRICITY

6 PRODUCTION CREDIT FOR BIOMASS FACILITIES.— 

7 (1) IN GENERAL.—Section 45(e) is amended by 

8 adding at the end the following new paragraph: 

9 ‘‘(12) CREDIT ALLOWED FOR ELECTRICITY

10 PRODUCED FROM BIOMASS FOR ON-SITE USE.—In 

11 the case of electricity produced after December 31, 

12 2008, at any facility described in paragraph (2) or 

13 (3) of subsection (d) which is equipped with a meter14 ing device to determine electricity consumption or 

15 sale, subsection (a)(2) shall be applied without re16 gard to subparagraph (B) thereof with respect to 

17 such electricity produced and consumed at such fa18 cility.’’. 

19 (2) CREDIT PERIOD FOR ELECTRICITY PRO20 DUCED FROM OPEN-LOOP BIOMASS FOR ON-SITE

21 USE.—Section 45(b)(4), as amended by subsection 

22 (c), is amended— 

23 (A) by striking ‘‘subparagraph (B) or sub24 paragraph (C)’’ in subparagraph (A) and in25 serting ‘‘subparagraph (B), (C), or (D)’’, 


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1 (B) by redesignating subparagraph (C) as 

2 subparagraph (D), and 

3 (C) by inserting after subparagraph (B) 

4 the following new subparagraph: 

5 ‘‘(C) ELECTRICITY PRODUCED FOR ON6 SITE USE AT CERTAIN OPEN-LOOP BIOMASS FA7 CILITIES.—In the case of electricity produced 

8 and consumed as described in subsection 

9 (e)(12) at any facility described in subsection 

10 (d)(3)(A)(ii) which is placed in service before 

11 the date of the enactment of this clause, the 5- 

12 year period beginning on January 1, 2009, shall 

13 be substituted for the 10-year period in sub14 section (a)(2)(A)(ii).’’. 

15 (f) EFFECTIVE DATES.— 

16 (1) IN GENERAL.—Except as provided in para17 graph (2), the amendments made by this section 

18 shall apply to electricity and thermal energy pro19 duced and sold after the date of the enactment of 

20 this Act, in taxable years ending after such date. 

21 (2) BIOMASS FACILITIES.—The amendments 

22 made by subsection (e) shall take effect on the date 

23 of the enactment of this Act. 


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1 SEC. 303. EXPANSION AND EXTENSION OF NEW CLEAN RE2 NEWABLE ENERGY BONDS. 

3 (a) IN GENERAL.—Section 54C(c)(2) is amended by 

4 inserting ‘‘, for calendar years 2009, 2010, 2011, 2012, 

5 and 2013, an additional $5,000,000,000 for each year, 

6 and, except as provided in paragraph (4) for years after 

7 2013, zero,’’ after ‘‘$800,000,000’’. 

8 (b) CARRYOVER OF UNUSED LIMITATION.—Section 

9 54C(c) is amended by adding at the end the following new 

10 paragraph: 

11 ‘‘(4) CARRYOVER OF UNUSED LIMITATION.—If 

12 for any calendar year— 

13 ‘‘(A) the amount allocated under para14 graph (2) for such calendar year, exceeds 

15 ‘‘(B) the amount of bonds issued during 

16 such year which are designated under sub17 section (a) pursuant to such allocation, the limi18 tation amount under such paragraph for the 

19 following calendar year shall be increased by 

20 the amount of such excess.’’. 

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

22 this section shall apply to obligations issued after Decem23 ber 31, 2008. 


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1 SEC. 304. 30-YEAR CONTRACTS FOR FEDERAL PURCHASES 

2 OF ELECTRICITY GENERATED BY RENEW3 ABLE ENERGY. 

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

5 U.S.C. 15852) is amended by adding at the end the fol6 lowing new subsection: 

7 ‘‘(e) CONTRACT LENGTH.— 

8 ‘‘(1) IN GENERAL.—Notwithstanding section 

9 501(b)(1)(B) of title 40, United States Code, a con10 tract for renewable energy may be made for a period 

11 of not more than 30 years. 

12 ‘‘(2) EXCLUSION.—For purposes of this sub13 section, the term ‘renewable energy’ shall be deemed 

14 to exclude energy generated from municipal solid 

15 waste. 

16 ‘‘(3) TECHNICAL ASSISTANCE.—The Secretary 

17 shall provide technical assistance to Federal agencies 

18 regarding the implementation of this subsection. 

19 ‘‘(4) STANDARDIZED RENEWABLE ENERGY PUR20 CHASE AGREEMENT.—Not later than 90 days after 

21 the date of enactment of this subsection, the Sec22 retary, through the Federal Energy Management 

23 Program, shall publish a standardized renewable en24 ergy purchase agreement setting forth commercial 

25 terms and conditions that can be utilized by Federal 

26 agencies to acquire renewable energy. 


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1 ‘‘(5) LIMITATION.—The maximum amount obli2 gated or expended under this subsection shall not 

3 exceed $480,000,000.’’. 

4 TITLE IV—REDUCING FOREIGN 

5 OIL DEPENDENCE 

6 SEC. 401. INCENTIVES FOR MANUFACTURING FACILITIES 

7 PRODUCING PLUG-IN ELECTRIC DRIVE 

8 MOTOR VEHICLE AND COMPONENTS. 

9 (a) DEDUCTION FOR MANUFACTURING FACILI10 TIES.—Part VI of subchapter B of chapter 1 (relating to 

11 itemized deductions for individuals and corporations) is 

12 amended by inserting after section 179E the following new 

13 section: 

14 ‘‘SEC. 179F. ELECTION TO EXPENSE MANUFACTURING FA15 CILITIES PRODUCING PLUG-IN ELECTRIC 

16 DRIVE MOTOR VEHICLE AND COMPONENTS. 

17 ‘‘(a) TREATMENT AS EXPENSES.—A taxpayer may 

18 elect to treat the applicable percentage of the cost of any 

19 qualified plug-in electric drive motor vehicle manufac20 turing facility property as an expense which is not charge21 able to a capital account. Any cost so treated shall be al22 lowed as a deduction for the taxable year in which the 

23 qualified manufacturing facility property is placed in serv24 ice. 


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1 ‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 

2 subsection (a), the applicable percentage is— 

3 ‘‘(1) 100 percent, in the case of qualified plug4 in electric drive motor vehicle manufacturing facility 

5 property which is placed in service before January 1, 

6 2012, and 

7 ‘‘(2) 50 percent, in the case of qualified plug8 in electric drive motor vehicle manufacturing facility 

9 property which is placed in service after December 

10 31, 2011, and before January 1, 2015. 

11 ‘‘(c) ELECTION.— 

12 ‘‘(1) IN GENERAL.—An election under this sec13 tion for any taxable year shall be made on the tax14 payer’s return of the tax imposed by this chapter for 

15 the taxable year. Such election shall be made in such 

16 manner as the Secretary may by regulations pre17 scribe. 

18 ‘‘(2) ELECTION IRREVOCABLE.—Any election 

19 made under this section may not be revoked except 

20 with the consent of the Secretary. 

21 ‘‘(d) QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR

22 VEHICLE MANUFACTURING FACILITY PROPERTY.—For 

23 purposes of this section— 


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1 ‘‘(1) IN GENERAL.—The term ‘qualified plug-in 

2 electric drive motor vehicle manufacturing facility 

3 property’ means any qualified property— 

4 ‘‘(A) the original use of which commences 

5 with the taxpayer, 

6 ‘‘(B) which is placed in service by the tax7 payer after the date of the enactment of this 

8 section and before January 1, 2015, and 

9 ‘‘(C) no written binding contract for the 

10 construction of which was in effect on or before 

11 the date of the enactment of this section. 

12 ‘‘(2) QUALIFIED PROPERTY.— 

13 ‘‘(A) IN GENERAL.—The term ‘qualified 

14 property’ means any property which is a facility 

15 or a portion of a facility used for the production 

16 of— 

17 ‘‘(i) any new qualified plug-in electric 

18 drive motor vehicle (as defined by section 

19 30D(c)), or 

20 ‘‘(ii) any eligible component. 

21 ‘‘(B) ELIGIBLE COMPONENT.—The term 

22 ‘eligible component’ means any battery, any 

23 electric motor or generator, or any power con24 trol unit which is designed specifically for use 


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1 with a new qualified plug-in electric drive motor 

2 vehicle (as so defined). 

3 ‘‘(e) SPECIAL RULE FOR DUAL USE PROPERTY.—In 

4 the case of any qualified plug-in electric drive motor vehi5 cle manufacturing facility property which is used to 

6 produce both qualified property and other property which 

7 is not qualified property, the amount of costs taken into 

8 account under subsection (a) shall be reduced by an 

9 amount equal to— 

10 ‘‘(1) the total amount of such costs (determined 

11 before the application of this subsection), multiplied 

12 by 

13 ‘‘(2) the percentage of property expected to be 

14 produced which is not qualified property.’’. 

15 (b) REFUND OF CREDIT FOR PRIOR YEAR MINIMUM

16 TAX LIABILITY.—Section 53 (relating to credit for prior 

17 year minimum tax liability) is amended by adding at the 

18 end the following new subsection: 

19 ‘‘(g) ELECTION TO TREAT AMOUNTS ATTRIBUTABLE

20 TO QUALIFIED MANUFACTURING FACILITY.— 

21 ‘‘(1) IN GENERAL.—In the case of an eligible 

22 taxpayer, the amount determined under subsection 

23 (c) for the taxable year (after the application of sub24 section (e)) shall be increased by an amount equal 

25 to the applicable percentage of any qualified plug-in 


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1 electric drive motor vehicle manufacturing facility 

2 property which is placed in service during the tax3 able year. 

4 ‘‘(2) APPLICABLE PERCENTAGE.—For purposes 

5 of paragraph (1), the applicable percentage is— 

6 ‘‘(A) 35 percent, in the case of qualified 

7 plug-in electric drive motor vehicle manufac8 turing facility property which is placed in serv9 ice before January 1, 2012, and 

10 ‘‘(B) 17.5 percent, in the case of qualified 

11 plug-in electric drive motor vehicle manufac12 turing facility property which is placed in serv13 ice after December 31, 2011, and before Janu14 ary 1, 2015. 

15 ‘‘(3) ELIGIBLE TAXPAYER.—For purposes of 

16 this subsection, the term ‘eligible taxpayer’ means 

17 any taxpayer— 

18 ‘‘(A) who places in service qualified plug19 in electric drive motor vehicle manufacturing fa20 cility property during the taxable year, 

21 ‘‘(B) who does not make an election under 

22 section 179F(c), and 

23 ‘‘(C) who makes an election under this 

24 subsection. 


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1 ‘‘(4) OTHER DEFINITIONS AND SPECIAL

2 RULES.— 

3 ‘‘(A) QUALIFIED PLUG-IN ELECTRIC DRIVE

4 MOTOR VEHICLE MANUFACTURING FACILITY

5 PROPERTY.—The term ‘qualified plug-in electric 

6 drive motor vehicle manufacturing facility prop7 erty’ has the meaning given such term under 

8 section 179F(d). 

9 ‘‘(B) SPECIAL RULE FOR DUAL USE PROP10 ERTY.—In the case of any qualified plug-in 

11 electric drive motor vehicle manufacturing facil12 ity property which is used to produce both 

13 qualified property (as defined in section 

14 179F(d)) and other property which is not quali15 fied property, the amount of costs taken into 

16 account under paragraph (1) shall be reduced 

17 by an amount equal to— 

18 ‘‘(i) the total amount of such costs 

19 (determined before the application of this 

20 subparagraph), multiplied by 

21 ‘‘(ii) the percentage of property ex22 pected to be produced which is not quali23 fied property. 

24 ‘‘(C) ELECTION.— 


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1 ‘‘(i) IN GENERAL.—An election under 

2 this subsection for any taxable year shall 

3 be made on the taxpayer’s return of the 

4 tax imposed by this chapter for the taxable 

5 year. Such election shall be made in such 

6 manner as the Secretary may by regula7 tions prescribe. 

8 ‘‘(ii) ELECTION IRREVOCABLE.—Any 

9 election made under this subsection may 

10 not be revoked except with the consent of 

11 the Secretary. 

12 ‘‘(5) CREDIT REFUNDABLE.—For purposes of 

13 this title (other than this section), the credit allowed 

14 by reason of this subsection shall be treated as if it 

15 were allowed under subpart C.’’. 

16 (c) CLERICAL AMENDMENT.—The table of sections 

17 for part VI of subchapter B of chapter 1 is amended by 

18 adding at the end the following new item: 

‘‘Sec. 179F. Election to expense manufacturing facilities producing plug-in electric drive motor vehicle and components.’’. 

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

20 this section shall apply to taxable years beginning after 

21 the date of the enactment of this Act. 


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1 SEC. 402. CONSUMER INCENTIVES FOR PLUG-IN ELECTRIC 

2 DRIVE MOTOR VEHICLES. 

3 (a) INCREASE IN NUMBER OF PLUG-IN ELECTRIC

4 DRIVE MOTOR VEHICLES ELIGIBLE FOR TAX CREDIT.— 

5 (1) IN GENERAL.—Subparagraph (B) of section 

6 30D(b)(2) is amended by striking ‘‘250,000’’ and in7 serting ‘‘500,000’’. 

8 (2) EFFECTIVE DATE.—The amendment made 

9 by this subsection shall apply to taxable years begin10 ning after December 31, 2008. 

11 (b) CONVERSION KITS.— 

12 (1) IN GENERAL.—Section 30B (relating to al13 ternative motor vehicle credit) is amended by redes14 ignating subsections (i) and (j) as subsections (j) 

15 and (k), respectively, and by inserting after sub16 section (h) the following new subsection: 

17 ‘‘(i) PLUG-IN CONVERSION CREDIT.— 

18 ‘‘(1) IN GENERAL.—For purposes of subsection 

19 (a), the plug-in conversion credit determined under 

20 this subsection with respect to any motor vehicle 

21 which is converted to a qualified plug-in electric 

22 drive motor vehicle is the lesser of— 

23 ‘‘(A) an amount equal to— 

24 ‘‘(i) $1,250, plus 

25 ‘‘(ii) $100 for each half kilowatt hour 

26 of capacity of the plug-in traction battery 


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1 module installed in such vehicle in excess 

2 of 2.5 kilowatt hours, or 

3 ‘‘(B) 50 percent of the cost of the plug-in 

4 traction battery module installed in such vehicle 

5 as part of such conversion. 

6 ‘‘(2) LIMITATIONS.—The amount of the credit 

7 allowed under this subsection shall not exceed 

8 $4,000 with respect to the conversion of any motor 

9 vehicle. 

10 ‘‘(3) DEFINITIONS AND SPECIAL RULES.—For 

11 purposes of this subsection— 

12 ‘‘(A) QUALIFIED PLUG-IN ELECTRIC DRIVE

13 MOTOR VEHICLE.—The term ‘qualified plug-in 

14 electric drive motor vehicle’ means any new 

15 qualified plug-in electric drive motor vehicle (as 

16 defined in section 30D(c), determined without 

17 regard to paragraphs (4) and (6) thereof). 

18 ‘‘(B) PLUG-IN TRACTION BATTERY MOD19 ULE.—The term ‘plug-in traction battery mod20 ule’ means an electro-chemical energy storage 

21 device which— 

22 ‘‘(i) has a traction battery capacity of 

23 not less than 2.5 kilowatt hours, 

24 ‘‘(ii) is equipped with an electrical 

25 plug by means of which it can be energized 


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1 and recharged when plugged into an exter2 nal source of electric power, 

3 ‘‘(iii) consists of a standardized con4 figuration and is mass produced, 

5 ‘‘(iv) has been tested and approved by 

6 the National Highway Transportation 

7 Safety Administration as compliant with 

8 applicable motor vehicle and motor vehicle 

9 equipment safety standards when installed 

10 by a mechanic with standardized training 

11 in protocols established by the battery 

12 manufacturer as part of a nationwide dis13 tribution program, and 

14 ‘‘(v) is certified by a battery manufac15 turer as meeting the requirements of 

16 clauses (i) through (iv). 

17 ‘‘(C) CREDIT ALLOWED TO LESSOR OF

18 BATTERY MODULE.—In the case of a plug-in 

19 traction battery module which is leased to the 

20 taxpayer, the credit allowed under this sub21 section shall be allowed to the lessor of the 

22 plug-in traction battery module. 

23 ‘‘(D) CREDIT ALLOWED IN ADDITION TO

24 OTHER CREDITS.—The credit allowed under 

25 this subsection shall be allowed with respect to 


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1 a motor vehicle notwithstanding whether a cred2 it has been allowed with respect to such motor 

3 vehicle under this section (other than this sub4 section) in any preceding taxable year. 

5 ‘‘(4) TERMINATION.—This subsection shall not 

6 apply to conversions made after December 31, 

7 2012.’’. 

8 (2) CREDIT TREATED AS PART OF ALTER9 NATIVE MOTOR VEHICLE CREDIT.—Section 30B(a) 

10 is amended by striking ‘‘and’’ at the end of para11 graph (3), by striking the period at the end of para12 graph (4) and inserting ‘‘, and’’, and by adding at 

13 the end the following new paragraph: 

14 ‘‘(5) the plug-in conversion credit determined 

15 under subsection (i).’’. 

16 (3) NO RECAPTURE FOR VEHICLES CONVERTED

17 TO QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VE18 HICLES.—Paragraph (8) of section 30B(h) is 

19 amended by adding at the end the following: ‘‘, ex20 cept that no benefit shall be recaptured if such prop21 erty ceases to be eligible for such credit by reason 

22 of conversion to a qualified plug-in electric drive 

23 motor vehicle.’’. 

24 (4) EFFECTIVE DATE.—The amendments made 

25 by this subsection shall apply to property placed in 


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1 service after December 31, 2008, in taxable years 

2 beginning after such date. 

3 (c) CERTAIN 2- OR 3-WHEELED MOTOR VEHICLES

4 ELIGIBLE FOR CREDIT.— 

5 (1) IN GENERAL.—Section 30D is amended— 

6 (A) by redesignating subsections (f) and 

7 (g) as subsections (g) and (h), respectively, and 

8 (B) by inserting after subsection (e) the 

9 following new subsection: 

10 ‘‘(f) 2- OR 3-WHEELED MOTOR VEHICLES.—For 

11 purposes of this section— 

12 ‘‘(1) IN GENERAL.—Except as provided in para13 graph (2), 2- or 3-wheeled motor vehicles shall be 

14 treated in the same manner as motor vehicles. 

15 ‘‘(2) EXCEPTIONS.— 

16 ‘‘(A) APPLICABLE AMOUNT.—For purposes 

17 of this subsection, the applicable amount shall 

18 be $1,250. 

19 ‘‘(B) OTHER EXCEPTIONS.— 

20 ‘‘(i) Subparagraph (B) of subsection 

21 (a)(2) shall be applied with respect to 2- or 

22 3-wheeled motor vehicles by substituting 

23 ‘$100 for each half kilowatt hour’ for 

24 ‘$417 for each kilowatt hour’. 


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1 ‘‘(ii) Subparagraph (A) of subsection 

2 (b)(1) shall be applied with respect to 2- or 

3 3-wheeled motor vehicles by substituting 

4 ‘$3,750’ for ‘$7,500’. 

5 ‘‘(iii) Subsection (c)(1) shall be ap6 plied with respect to 2- or 3-wheeled motor 

7 vehicles by substituting ‘2.5 kilowatt hours’ 

8 for ‘4 kilowatt hours’. 

9 ‘‘(iv) Subsection (c)(3) shall not apply 

10 with respect to 2- or 3-wheeled motor vehi11 cles. 

12 ‘‘(3) APPLICATION OF LIMITATION.—The limi13 tation provided in subsection (b)(2) shall be applied 

14 separately with respect to 2- or 3-wheeled vehicles 

15 and with respect to other motor vehicles, and in ap16 plying such limitation to 2- or 3-wheeled vehicles, 

17 ‘50,000’ shall be substituted for ‘500,000’. 

18 ‘‘(4) 2- OR 3-WHEELED MOTOR VEHICLE.—The 

19 term ‘2- or 3-wheeled vehicle’ means any vehicle— 

20 ‘‘(A) which would be described in section 

21 30(c)(2) except that it has 2 or 3 wheels, 

22 ‘‘(B) with motive power having a seat or 

23 saddle for the use of the rider and designed to 

24 travel on not more than 3 wheels in contact 

25 with the ground, 


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1 ‘‘(C) which has an electric motor that pro2 duces in excess of 5-brake horsepower, 

3 ‘‘(D) which draws propulsion from 1 or 

4 more traction batteries, and 

5 ‘‘(E) which has been certified to the De6 partment of Transportation pursuant to section 

7 567 of title 49, Code of Federal Regulations, as 

8 conforming to all applicable Federal motor vehi9 cle safety standards in effect on the date of the 

10 manufacture of the vehicle.’’. 

11 (2) EFFECTIVE DATE.—The amendments made 

12 by this subsection shall apply to property placed in 

13 service after December 31, 2008, in taxable years 

14 beginning after such date. 

15 (d) CREDIT WITH RESPECT TO LOW-SPEED VEHI16 CLES.— 

17 (1) IN GENERAL.—Subsection (e) of section 

18 30D is amended by adding at the end the following 

19 new paragraph: 

20 ‘‘(11) SPECIAL RULES FOR LOW-SPEED VEHI21 CLES.—In the case of a low-speed vehicle which 

22 meets the requirements of section 571.500 of title 

23 49, Code of Federal Regulations— 


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1 ‘‘(A) subparagraph (A) of subsection 

2 (a)(2) shall be applied with respect low-speed 

3 vehicles by substituting ‘$1,250’ for ‘$2,500’, 

4 ‘‘(B) subparagraph (B) of subsection 

5 (a)(2) shall be applied with respect to low-speed 

6 vehicles by substituting ‘$100 for each half kilo7 watt hour’ for ‘$417 for each kilowatt hour’, 

8 ‘‘(C) subparagraph (A) of subsection (b)(1) 

9 shall be applied with respect to low-speed vehi10 cles by substituting ‘$3,750’ for ‘$7,500’, 

11 ‘‘(D) the limitation provided in subsection 

12 (b)(2) shall be applied separately with respect 

13 to low-speed vehicles and with respect to other 

14 motor vehicles, and in applying such limitation 

15 to low-speed vehicles, ‘50,000’ shall be sub16 stituted for ‘500,000’, and 

17 ‘‘(E) subsection (c)(3) shall not apply with 

18 respect to low-speed vehicles.’’. 

19 (2) EFFECTIVE DATE.—The amendment made 

20 by this subsection shall apply to property placed in 

21 service after December 31, 2008, in taxable years 

22 beginning after such date. 


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1 SEC. 403. TRANSPORTATION SECTOR ELECTRIFICATION 

2 PROGRAMS. 

3 (a) Out of any sums in the Treasury of the United 

4 States not otherwise appropriated, $600,000,000 is appro5 priated for expenses necessary to implement the programs 

6 authorized under section 131(b) of the Energy Independ7 ence and Security Act of 2007 (42 U.S.C. 17011(b)). Such 

8 sums shall remain available until expended. 

9 (b) Out of any sums in the Treasury of the United 

10 States not otherwise appropriated, $600,000,000 is appro11 priated for expenses necessary to implement the programs 

12 authorized under section 131(c) of the Energy Independ13 ence and Security Act of 2007 (42 U.S.C. 17011(c)). Such 

14 sums shall remain available until expended. 

15 SEC. 404. ENERGY STORAGE COMPETITIVENESS. 

16 Out of any sums in the Treasury of the United States 

17 not otherwise appropriated, $1,800,000,000 is appro18 priated for expenses necessary to implement the programs 

19 authorized under section 641 of the Energy Independence 

20 and Security Act of 2007 (42 U.S.C. 17231). Such sums 

21 shall remain available until expended. 

22 SEC. 405. ADVANCED BATTERY MANUFACTURING. 

23 Out of any sums in the Treasury of the United States 

24 not otherwise appropriated, $1,000,000,000 is appro25 priated for expenses necessary for the manufacturing of 

26 advanced batteries authorized under section 136(b)(1)(B) 


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1 of the Energy Independence and Security Act of 2007 (42 

2 U.S.C. 17013(b)(1)(B)). Such sums shall remain available 

3 until expended. 

4 SEC. 406. EXTENSION OF CREDITS FOR BIODIESEL AND RE5 NEWABLE DIESEL. 

6 Sections 40A(g), 6426(c)(6), and 6427(e)(6)(B) are 

7 each amended by striking ‘‘December 31, 2009’’ and in8 serting ‘‘December 31, 2010’’. 

9 SEC. 407. EXPANSION AND EXTENSION OF ELECTRIC AND 

10 ALTERNATIVE FUEL VEHICLE REFUELING 

11 PROPERTY CREDIT. 

12 (a) EXPANSION.— 

13 (1) IN GENERAL.—Section 30C is amended— 

14 (A) by striking ‘‘30 percent’’ in subsection 

15 (a) and inserting ‘‘50 percent’’, and 

16 (B) by striking ‘‘$30,000’’ in subsection 

17 (b)(1) and inserting ‘‘$50,000’’. 

18 (2) EFFECTIVE DATE.—The amendments made 

19 by this subsection shall apply to property placed in 

20 service after the date of the enactment of this Act, 

21 in taxable years ending after such date. 

22 (b) EXTENSION.—Subsection (g) of section 30C is 

23 amended to read as follows: 

24 ‘‘(g) TERMINATION.—This section shall not apply to 

25 any property placed in service after December 31, 2014.’’. 


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1 TITLE V—ENERGY EFFICIENCY 

2 INVESTMENTS 

3 SEC. 501. MODIFICATION OF CREDIT FOR RESIDENTIAL EN4 ERGY EFFICIENT PROPERTY. 

5 (a) INCREASE IN CREDIT PERCENTAGE.—Section 

6 25D(a) is amended by striking ‘‘30 percent’’ each place 

7 it appears and inserting ‘‘50 percent’’. 

8 (b) CREDIT FOR QUALIFIED ENERGY STORAGE AIR

9 CONDITIONER PROPERTY INSTALLED IN A PRINCIPAL

10 RESIDENCE.— 

11 (1) IN GENERAL.—Section 25D(a), as amended 

12 by subsection (a), is amended by striking ‘‘and’’ at 

13 the end of paragraph (4), by striking the period at 

14 the end of paragraph (5) and inserting ‘‘, and’’, and 

15 by adding at the end the following new paragraph: 

16 ‘‘(6) 50 percent of the qualified energy storage 

17 air conditioner property expenditures made by the 

18 taxpayer during such year.’’. 

19 (2) QUALIFIED ENERGY STORAGE AIR CONDI20 TIONER PROPERTY EXPENDITURE.—Section 25D(d) 

21 is amended by adding at the end the following new 

22 paragraph: 

23 ‘‘(6) QUALIFIED ENERGY STORAGE AIR CONDI24 TIONER PROPERTY EXPENDITURE.—The term 

25 ‘qualified energy storage air conditioner property exVerDate Nov 24 2008 04:45 Jan 27, 2009 Jkt 079200 PO 00000 Frm 00040 Fmt 6652 Sfmt 6201 E:\BILLS\S320.IS S320

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1 penditure’ means an expenditure for qualified energy 

2 storage air conditioner property (as defined in sec3 tion 48(c)(5)) installed on or in connection with a 

4 dwelling unit located in the United States and used 

5 as a principal residence (within the meaning of sec6 tion 121) by the taxpayer.’’. 

7 (3) MODIFICATION OF MAXIMUM CREDIT.— 

8 (A) IN GENERAL.—Paragraph (1) of sec9 tion 25D(b) is amended by striking ‘‘and’’ at 

10 the end of subparagraph (C), by striking the 

11 period at the end of subparagraph (D) and in12 serting ‘‘, and’’, and by adding at the end the 

13 following new subparagraph: 

14 ‘‘(E) $500 with respect to each half kilo15 watt of peak demand reduction (as defined in 

16 section 48(c)(5)) of qualified energy storage air 

17 conditioner property (as defined in section 

18 48(c)(5)) for which qualified energy storage air 

19 conditioner expenditures are made.’’. 

20 (B) CONFORMING AMENDMENTS.— 

21 (i) Subparagraph (A) of section 

22 25D(e)(4) is amended by striking ‘‘and’’ at 

23 the end of clause (iii), by striking the pe24 riod at the end of clause (iv) and inserting 


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1 ‘‘, and’’, and by adding at the end the fol2 lowing new clause: 

3 ‘‘(v) $1,667 in the case of each half 

4 kilowatt of peak demand reduction (as de5 fined in section 48(c)(5)) of qualified en6 ergy storage air conditioner property (as 

7 defined in section 48(c)(5)) for which 

8 qualified energy storage air conditioner ex9 penditures are made.’’. 

10 (ii) Subparagraph (C) of section 

11 25D(e)(4) is amended by striking ‘‘para12 graphs (1), (2), and (3)’’ and inserting 

13 ‘‘paragraphs (1), (3), (4), (5), and (6)’’. 

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

15 this section shall apply to property placed in service after 

16 December 31, 2008, in taxable years ending after such 

17 date. 

18 SEC. 502. BUSINESS CREDIT FOR QUALIFIED ENERGY STOR19 AGE AIR CONDITIONER PROPERTY. 

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

21 48(a)(3) is amended by deleting ‘‘or’’ at the end of clause 

22 (vi), by inserting ‘‘or’’ at the end of clause (vii), and by 

23 inserting after clause (vii) the following new clause: 

24 ‘‘(viii) qualified energy storage air 

25 conditioner property but only with respect 


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1 to periods ending before January 1, 

2 2017,’’. 

3 (b) 30 PERCENT CREDIT.—Clause (i) of section 

4 48(a)(2)(A) is amended by striking ‘‘and’’ at the end of 

5 subclause (III) and by inserting after subclause (IV) the 

6 following new subclause: 

7 ‘‘(V) qualified energy storage air 

8 conditioner property, and’’. 

9 (c) QUALIFIED ENERGY STORAGE AIR CONDITIONER

10 PROPERTY.—Section 48(c) is amended by adding at the 

11 end the following new paragraph: 

12 ‘‘(5) QUALIFIED ENERGY STORAGE AIR CONDI13 TIONER PROPERTY.—For the purposes of this sec14 tion— 

15 ‘‘(A) IN GENERAL.—The term ‘qualified 

16 energy storage air conditioner property’ means 

17 a cooling system which— 

18 ‘‘(i) consists of thermal storage or ice 

19 storage components which create, store, 

20 and supply cooling energy to reduce peak 

21 electricity demand by displacing the day22 time peak electrical demand of conven23 tional mechanical cooling equipment, 

24 ‘‘(ii) has a nameplate operational ca25 pability to deliver a minimum of 29,000 


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1 Btu and a maximum of 240,000 Btu of 

2 cooling capacity, 

3 ‘‘(iii) is designed to deliver such cool4 ing capacity for a minimum continuous pe5 riod of 3 hours, available daily from May 

6 1 through September 30, coincident with 

7 daytime peak load periods, 

8 ‘‘(iv) is designed so as to reduce peak 

9 kilowatt demand by 90 percent for the 

10 cooling load served, and 

11 ‘‘(v) is designed so as not to exceed 

12 the 24 hour energy consumption of conven13 tional cooling equipment by more than 10 

14 percent. 

15 ‘‘(B) INCLUSION OF RELATED EQUIP16 MENT.—Such term shall include any secondary 

17 components which integrate the cooling system 

18 described in paragraph (1) with the conven19 tional cooling system, including equipment and 

20 controls for measuring and reporting operation 

21 and performance, but shall not include any por22 tion of the conventional cooling system. 

23 ‘‘(C) LIMITATION.— 

24 ‘‘(i) IN GENERAL.—In the case of 

25 qualified energy storage air conditioner 


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1 property placed in service during the tax2 able year, the credit otherwise determined 

3 under this section for such year with re4 spect to such property shall not exceed an 

5 amount equal to $500 for each 0.5 kilo6 watt of peak demand reduction of such 

7 property. 

8 ‘‘(ii) PEAK DEMAND REDUCTION.— 

9 For purposes of this subsection, the term 

10 ‘peak demand reduction’ means the re11 moval of electrical demand (kW) on the 

12 utility grid system during the daily time 

13 period of high electrical demand. The peak 

14 demand reduction shall be determined 

15 based on Energy Efficiency Ratio (EER) 

16 standards for residential and commercial 

17 air conditioning equipment, established 

18 under the Energy Policy and Conservation 

19 Act of 1975.’’. 

20 (d) CONFORMING AMENDMENT.—Section 48(a)(1) is 

21 amended by striking ‘‘and (3)(B)’’ and inserting ‘‘(3)(B), 

22 (4)(B), and (5)(C)’’. 

23 (e) EFFECTIVE DATE.—The amendments made by 

24 this section shall apply to periods after December 31, 

25 2008, under rules similar to the rules of section 48(m) 


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1 of the Internal Revenue Code of 1986 (as in effect before 

2 the date of the enactment of the Revenue Reconciliation 

3 Act of 1990). 

4 SEC. 503. EXTENSION AND MODIFICATION OF NEW ENERGY 

5 EFFICIENT HOME CREDIT. 

6 (a) EXTENSION.—Subsection (g) of section 45L (re7 lating to termination) is amended by striking ‘‘December 

8 31, 2009’’ and inserting ‘‘December 31, 2012’’. 

9 (b) INCREASE.—Paragraph (2)(A) of section 45L(a) 

10 (relating to allowance of credit) is amended by striking 

11 ‘‘$2,000’’ and inserting ‘‘$4,000’’. 

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

13 this section shall apply to homes constructed and acquired 

14 after December 31, 2008. 

15 SEC. 504. EXTENSION AND MODIFICATION OF DEDUCTION 

16 FOR ENERGY EFFICIENT COMMERCIAL 

17 BUILDINGS. 

18 (a) INCREASE IN MAXIMUM AMOUNT OF DEDUC19 TION.— 

20 (1) IN GENERAL.—Subparagraph (A) of section 

21 179D(b)(1) is amended by striking ‘‘$1.80’’ and in22 serting ‘‘$2.25’’. 

23 (2) PARTIAL ALLOWANCE.—Paragraph (1) of 

24 section 179D(d) is amended— 


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1 (A) by striking ‘‘$.60’’ and inserting 

2 ‘‘$.75’’, and 

3 (B) by striking ‘‘$1.80’’ and inserting 

4 ‘‘$2.25’’. 

5 (b) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to property placed in service in 

7 taxable years beginning after the date of the enactment 

8 of this Act. 

9 SEC. 505. EXTENSION AND MODIFICATION OF NONBUSI10 NESS ENERGY PROPERTY. 

11 (a) EXTENSION.—Subsection (g)(2) of section 25C 

12 (relating to termination) is amended by striking ‘‘Decem13 ber 31, 2009’’ and inserting ‘‘December 31, 2010’’. 

14 (b) INCREASE IN TAXPAYER LIMITATION.—Para15 graph (1) of section 25C(b) is amended by striking 

16 ‘‘$500’’ and inserting ‘‘$2,000’’. 

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

18 this section shall apply to property placed in service after 

19 December 31, 2008. 

20 SEC. 506. TAX CREDITS FOR GREEN ROOFS. 

21 (a) GREEN ROOFS ELIGIBLE FOR ENERGY CRED22 IT.— 

23 (1) IN GENERAL.—Subparagraph (A) of section 

24 48(a)(3), as amended by section 502, is amended by 

25 striking ‘‘or’’ at the end of clause (vii), by striking 


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1 the period at the end of clause (viii) and inserting 

2 ‘‘, or’’, and by adding at the end the following new 

3 clause: 

4 ‘‘(ix) a qualified green roof (as de5 fined in section 25D(d)(7)(B)).’’. 

6 (2) 30 PERCENT CREDIT.—Clause (i) of section 

7 48(a)(2)(A), as amended by section 502, is amended 

8 by striking ‘‘and’’ at the end of subclause (IV) and 

9 by inserting after subclause (V) the following new 

10 subclause: 

11 ‘‘(VI) qualified green roof (as de12 fined in section 25D(d)(7)(B)), and’’. 

13 (3) EFFECTIVE DATE.—The amendments made 

14 by this subsection shall apply to periods after De15 cember 31, 2009, under rules similar to the rules of 

16 section 48(m) of the Internal Revenue Code of 1986 

17 (as in effect before the date of the enactment of the 

18 Revenue Reconciliation Act of 1990). 

19 (b) CREDIT FOR RESIDENTIAL GREEN ROOFS.— 

20 (1) IN GENERAL.— 

21 (A) ALLOWANCE OF CREDIT.—Section 

22 25D(a) (relating to allowance of credit), as 

23 amended by section 501, is amended by striking 

24 ‘‘and’’ at the end of paragraph (5), by striking 

25 the period at the end of paragraph (6) and inVerDate Nov 24 2008 04:45 Jan 27, 2009 Jkt 079200 PO 00000 Frm 00048 Fmt 6652 Sfmt 6201 E:\BILLS\S320.IS S320

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1 serting ‘‘, and’’, and by adding at the end the 

2 following new paragraph: 

3 ‘‘(7) 30 percent of the qualified green roof 

4 property expenditures made by the taxpayer during 

5 such year.’’. 

6 (B) LIMITATION.—Section 25D(b) (relat7 ing to limitations), as amended by section 501, 

8 is amended— 

9 (i) by striking ‘‘and’’ at the end of 

10 paragraph (1)(D), by striking the period at 

11 the end of paragraph (1)(E) and inserting 

12 ‘‘, and’’, and by adding at the end of para13 graph (1) the following new subparagraph: 

14 ‘‘(F) $5,000 with respect to any qualified 

15 green roof property expenditures.’’, and 

16 (ii) by adding at the end the following 

17 new paragraph: 

18 ‘‘(3) CERTIFICATION FOR GREEN ROOF PROP19 ERTY.—No credit shall be allowed under this section 

20 for an item of property described in subsection 

21 (d)(7), unless the taxpayer certifies that— 

22 ‘‘(A) such taxpayer has received all re23 quired permits and approvals to construct the 

24 green roof, 


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1 ‘‘(B) such roof is designed and constructed 

2 by licensed design professionals, consultants 

3 and contractors under applicable building codes 

4 and appropriate licensing laws, and 

5 ‘‘(C) such taxpayer has received a written 

6 analysis confirming that— 

7 ‘‘(i) the structural capacity of the roof 

8 would support the proposed green roof, 

9 and 

10 ‘‘(ii) the condition of the roof is satis11 factory for green roof construction and 

12 there is appropriate safe access to the roof 

13 for maintenance purposes.’’. 

14 (C) QUALIFIED GREEN ROOF PROPERTY

15 EXPENDITURES.—Section 25D(d) (relating to 

16 definitions), as amended by section 501, is 

17 amended by adding at the end the following 

18 new paragraph: 

19 ‘‘(7) QUALIFIED GREEN ROOF PROPERTY EX20 PENDITURE.— 

21 ‘‘(A) IN GENERAL.—The term ‘qualified 

22 green roof property expenditure’ means an ex23 penditure described in subparagraph (B) for a 

24 qualified green roof which is installed on a 


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1 building located in the United States and used 

2 as a residence by the taxpayer. 

3 ‘‘(B) EXPENDITURES DESCRIBED.—An ex4 penditure described in this subparagraph is an 

5 expenditure for— 

6 ‘‘(i) design and construction services, 

7 ‘‘(ii) permit process expenses, 

8 ‘‘(iii) structural analysis, 

9 ‘‘(iv) design, construction, materials, 

10 and installation of irrigation systems plans, 

11 ‘‘(v) design, construction, materials, 

12 and installation of waterproofing, 

13 ‘‘(vi) purchase and installation of 

14 growing media, vegetation, and other green 

15 roof matter, 

16 ‘‘(vii) leak detection systems and 

17 membrane protection and quality control, 

18 ‘‘(viii) design, assembly, and original 

19 installation, 

20 ‘‘(ix) labor costs properly allocable to 

21 on-site preparation, and 

22 ‘‘(x) monitoring and maintenance ac23 tivities until vegetation is established, in24 cluding monitoring and maintenance plan 


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1 for the system once established for the life 

2 of the green roof system. 

3 ‘‘(C) QUALIFIED GREEN ROOF.—The term 

4 ‘qualified green roof’ means any green roof at 

5 least 50 percent of which is a vegetated green 

6 roof system constructed under building code 

7 ASTM standards, where applicable. Such term 

8 includes any retrofit or new construction green 

9 roof. 

10 ‘‘(D) GREEN ROOF.—The term ‘green roof’ 

11 means any roof which consists of vegetation and 

12 soil, or a growing medium with a minimum 3 

13 inch depth, planted over a waterproofing mem14 brane and its associated components, such as a 

15 protection course, a root barrier, a drainage 

16 layer, or thermal insulation and an aeration 

17 layer.’’. 

18 (D) MAXIMUM EXPENDITURES IN CASE OF

19 JOINT OCCUPANCY.— 

20 (i) IN GENERAL.—Section 

21 25D(e)(4)(A) (relating to maximum ex22 penditures), as amended by section 501, is 

23 amended by striking ‘‘and’’ at the end of 

24 clause (iv), by striking the period at the 

25 end of clause (v) and inserting ‘‘, and’’, 


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1 and by adding at the end the following new 

2 clause: 

3 ‘‘(vi) $1,667 in the case of any quali4 fied green roof property expenditures.’’. 

5 (ii) CONFORMING AMENDMENT.—Sub6 paragraph (C) of section 25D(e)(4), as 

7 amended by section 501, is amended by 

8 striking ‘‘and (6)’’ and inserting ‘‘(6), and 

9 (7)’’. 

10 (2) EFFECTIVE DATE.—The amendments made 

11 by this subsection shall apply to property placed in 

12 service after December 31, 2008, in taxable years 

13 ending after such date. 

14 SEC. 507. REPEAL OF CERTAIN LIMITATIONS ON CREDIT 

15 FOR RENEWABLE ENERGY PROPERTY. 

16 (a) REPEAL OF LIMITATION ON CREDIT FOR QUALI17 FIED SMALL WIND ENERGY PROPERTY.—Paragraph (4) 

18 of section 48(c) is amended by striking subparagraph (B) 

19 and by redesignating subparagraphs (C) and (D) as sub20 paragraphs (B) and (C), respectively. 

21 (b) REPEAL OF LIMITATION ON PROPERTY FI22 NANCED BY SUBSIDIZED ENERGY FINANCING.— 

23 (1) IN GENERAL.—Subsection (a) of section 48 

24 is amended by striking paragraph (4). 

25 (2) CONFORMING AMENDMENTS.— 


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1 (A) Section 25C(e)(1) is amended by strik2 ing ‘‘ ‘(8), and (9)’ ’’ and inserting ‘‘ ‘and (8)’ ’’. 

3 (B) Section 25D(e) is amended by striking 

4 paragraph (9). 

5 (c) EFFECTIVE DATES.— 

6 (1) IN GENERAL.—Except as provided in para7 graph (2), the amendment made by this section shall 

8 apply to periods after December 31, 2008, under 

9 rules similar to the rules of section 48(m) of the In10 ternal Revenue Code of 1986 (as in effect on the day 

11 before the date of the enactment of the Revenue 

12 Reconciliation Act of 1990). 

13 (2) CONFORMING AMENDMENTS.—The amend14 ments made by subsection (b)(2) shall apply to tax15 able years beginning after December 31, 2008. 

16 SEC. 508. ENERGY EFFICIENT APPLIANCE REBATE PRO17 GRAM AND ENERGY STAR. 

18 Out of any sums in the Treasury of the United States 

19 not otherwise appropriated, $300,000,000 is appropriated 

20 for expenses necessary to implement the program author21 ized under section 124 of the Energy Policy Act of 2005 

22 (42 U.S.C. 15821) and the Energy Star program. Such 

23 sums shall remain available until expended. 

Æ 


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