I 

108TH CONGRESS 

1ST SESSION H. R. 790

To amend the Internal Revenue Code of 1986 to provide credits for 

individuals and businesses for the installation of certain wind energy property. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 13, 2003

Mr. COLE (for himself and Mr. CARSON of Oklahoma) 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 

credits for individuals and businesses for the installation 

of certain wind energy property.

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 ‘‘Home and Farm Wind 

5 Energy Systems Act of 2003’’. 

6 SEC. 2. CREDIT FOR WIND ENERGY PROPERTY INSTALLED 

7 IN RESIDENCES AND BUSINESSES. 

8 (a) IN GENERAL.—Subpart B of part IV of sub9 chapter A of chapter 1 of the Internal Revenue Code of 
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1 1986 is amended by inserting after section 30A the fol2 lowing new section: 

3 ‘‘SEC. 30B. WIND ENERGY PROPERTY. 

4 ‘‘(a) ALLOWANCE OF CREDIT.—There shall be al5 lowed as a credit against the tax imposed by this chapter 

6 for the taxable year an amount equal to 30 percent (10 

7 percent after December 31, 2013) of the amount paid or 

8 incurred by the taxpayer for qualified wind energy prop9 erty placed in service or installed during such taxable year. 

10 ‘‘(b) LIMITATION.—No credit shall be allowed under 

11 subsection (a) unless at least 50 percent of the energy pro12 duced annually by the qualified wind energy property is 

13 consumed on the site on which the property is placed in 

14 service or installed. 

15 ‘‘(c) QUALIFIED WIND ENERGY PROPERTY.—For 

16 purposes of this section, the term ‘qualified wind energy 

17 property’ means a qualifying wind turbine if—

18 ‘‘(1) in the case of an individual, the property 

19 is installed on or in connection with a dwelling unit 

20 which is located in the United States and which is 

21 owned and used as the taxpayer’s principal resi22 dence, 

23 ‘‘(2) the original use of which commences with 

24 the taxpayer, and 
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1 ‘‘(3) the property carries at least a 5-year lim2 ited warranty covering defects in design, material, or 

3 workmanship, and, for property that is not installed 

4 by the taxpayer, at least a 5-year limited warranty 

5 covering defects in installation. 

6 ‘‘(d) OTHER DEFINITIONS.—For purposes of this 

7 section—

8 ‘‘(1) QUALIFYING WIND TURBINE.—The term 

9 ‘qualifying wind turbine’ means a wind turbine of 75 

10 kilowatts of rated capacity or less which meets the 

11 latest performance rating standards published by the 

12 American Wind Energy Association and which is 

13 used to generate electricity. 

14 ‘‘(2) PRINCIPAL RESIDENCE.—The term ‘prin15 cipal residence’ shall have the same meaning as 

16 when used in section 121. 

17 ‘‘(e) LIMITATION BASED ON AMOUNT OF TAX.—

18 ‘‘(1) IN GENERAL.—The credit allowed under 

19 subsection (a) for any taxable year shall not exceed 

20 the excess of—

21 ‘‘(A) the sum of the regular tax liability 

22 (as defined in section 26(b)) plus the tax im23 posed by section 55, over 

24 ‘‘(B) the sum of the credits allowable 

25 under this part (other than under this section 
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1 and subpart C thereof, relating to refundable 

2 credits) and section 1397E. 

3 ‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the 

4 credit allowable under subsection (a) exceeds the 

5 limitation imposed by paragraph (1) for such taxable 

6 year, such excess shall be carried to the succeeding 

7 taxable year and added to the credit allowable under 

8 subsection (a) for such taxable year. 

9 ‘‘(f) SPECIAL RULES.—For purposes of this sec10 tion—

11 ‘‘(1) TENANT-STOCKHOLDER IN COOPERATIVE

12 HOUSING CORPORATION.—In the case of an indi13 vidual who is a tenant-stockholder (as defined in sec14 tion 216(b)(2)) in a cooperative housing corporation 

15 (as defined in section 216(b)(1)), such individual 

16 shall be treated as having paid his tenant-stock17 holder’s proportionate share (as defined in section 

18 216(b)(3)) of any expenditures paid or incurred for 

19 qualified wind energy property by such corporation, 

20 and such credit shall be allocated appropriately to 

21 such individual. 

22 ‘‘(2) CONDOMINIUMS.—

23 ‘‘(A) IN GENERAL.—In the case of an indi24 vidual who is a member of a condominium man25 agement association with respect to a condo-
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1 minium which he owns, such individual shall be 

2 treated as having paid his proportionate share 

3 of expenditures paid or incurred for qualified 

4 wind energy property by such association, and 

5 such credit shall be allocated appropriately to 

6 such individual. 

7 ‘‘(B) CONDOMINIUM MANAGEMENT ASSO8 CIATION.—For purposes of this paragraph, the 

9 term ‘condominium management association’ 

10 means an organization which meets the require11 ments of section 528(c)(2) with respect to a 

12 condominium project of which substantially all 

13 of the units are used by individuals as resi14 dences. 

15 ‘‘(g) BASIS ADJUSTMENT.—For purposes of this sub16 title, if a credit is allowed under this section for any ex17 penditure with respect to a residence or other property, 

18 the basis of such residence or other property shall be re19 duced by the amount of the credit so allowed. 

20 ‘‘(h) APPLICATION OF CREDIT.—The credit allowed 

21 under this section shall apply to property placed in service 

22 or installed after December 31, 2003.’’. 

23 (b) CONFORMING AMENDMENT.—Subsection (a) of 

24 section 1016 of such Code (relating to general rule for 

25 adjustments to basis) is amended by striking ‘‘and’’ at the 
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1 end of paragraph (27), by striking the period at the end 

2 of paragraph (28) and inserting ‘‘, and’’, and by adding 

3 at the end the following new paragraph: 

4 ‘‘(29) in the case of a residence or other prop5 erty with respect to which a credit was allowed 

6 under section 30B, to the extent provided in section 

7 30B(g).’’. 

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

9 for subpart B of part IV of subchapter A of chapter 1 

10 of such Code is amended by inserting after the item relat11 ing to section 30A the following new item:

‘‘Sec. 30B. Wind energy property.’’.

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

13 this section shall apply to taxable years ending after De14 cember 31, 2003.

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