I 
110TH CONGRESS 
1ST SESSION H. R. 1772 
To amend the Internal Revenue Code of 1986 to provide credits for the 
installation of wind energy property, including by rural homeowners, 
farmers, ranchers, and small businesses, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 29, 2007 
Mr. BLUMENAUER (for himself, Mr. COLE of Oklahoma, Mr. RENZI, Mr. 
HALL of New York, Mr. UDALL of Colorado, Mr. MCCOTTER, Mr. 
CONAWAY, Mrs. MCMORRIS RODGERS, Mr. WAXMAN, Mr. LUCAS, Mr. 
MCDERMOTT, and Mr. GILLMOR) 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 the installation of wind energy property, in-
cluding by rural homeowners, farmers, ranchers, and 
small businesses, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Rural Wind Energy 
Development Act’’. 
VerDate Aug 31 2005 
05:07 Apr 03, 2007
Jkt 059196
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H1772.IH
H1772
mstockstill on PROD1PC66 with BILLS
SEC. 2. CREDIT FOR INSTALLATION OF WIND ENERGY 
PROPERTY INCLUDING BY RURAL HOME-
OWNERS, FARMERS, RANCHERS, AND SMALL 
BUSINESSES. 
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 30D. WIND ENERGY PROPERTY. 
‘‘(a) ALLOWANCE OF CREDIT.—There shall be al-
lowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to $1,500 with re-
spect to each half kilowatt of capacity of qualified wind 
energy property placed in service or installed by the tax-
payer during such taxable year. 
‘‘(b) LIMITATION.—No credit shall be allowed under 
subsection (a) unless at least 50 percent of the energy pro-
duced annually by the qualified wind energy property is 
consumed on the site on which the property is placed in 
service or installed. 
‘‘(c) QUALIFIED WIND ENERGY PROPERTY.—For 
purposes of this section, the term ‘qualified wind energy 
property’ means a wind turbine of 100 kilowatts of rated 
capacity or less if— 
VerDate Aug 31 2005 
05:07 Apr 03, 2007
Jkt 059196
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H1772.IH
H1772
mstockstill on PROD1PC66 with BILLS
‘‘(1) such turbine is placed in service or in-
stalled on or in connection with property located in 
the United States, 
‘‘(2) in the case of an individual, the property 
on or in connection with which such turbine is in-
stalled is a dwelling unit, 
‘‘(3) the original use of such turbine commences 
with the taxpayer, and 
‘‘(4) such turbine carries at least a 5-year lim-
ited warranty covering defects in design, material, or 
workmanship, and, for property that is not installed 
by the taxpayer, at least a 5-year limited warranty 
covering defects in installation. 
‘‘(d) LIMITATION BASED ON AMOUNT OF TAX.— 
‘‘(1) IN GENERAL.—The credit allowed under 
subsection (a) for any taxable year shall not exceed 
the excess of— 
‘‘(A) the sum of the regular tax liability 
(as defined in section 26(b)) plus the tax im-
posed by section 55, over 
‘‘(B) the sum of the credits allowable 
under this part (other than under this section 
and subpart C thereof, relating to refundable 
credits) and section 1397E. 
VerDate Aug 31 2005 
05:07 Apr 03, 2007
Jkt 059196
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H1772.IH
H1772
mstockstill on PROD1PC66 with BILLS
‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the 
credit allowable under subsection (a) exceeds the 
limitation imposed by paragraph (1) for such taxable 
year, such excess shall be carried to the succeeding 
taxable year and added to the credit allowable under 
subsection (a) for such taxable year. 
‘‘(e) SPECIAL RULES.—For purposes of this sec-
tion— 
‘‘(1) TENANT-STOCKHOLDER IN COOPERATIVE 
HOUSING CORPORATION.—In the case of an indi-
vidual who is a tenant-stockholder (as defined in sec-
tion 216(b)(2)) in a cooperative housing corporation 
(as defined in section 216(b)(1)), such individual 
shall be treated as having paid his tenant-stock-
holder’s proportionate share (as defined in section 
216(b)(3)) of any expenditures paid or incurred for 
qualified wind energy property by such corporation, 
and such credit shall be allocated appropriately to 
such individual. 
‘‘(2) CONDOMINIUMS.— 
‘‘(A) IN GENERAL.—In the case of an indi-
vidual who is a member of a condominium man-
agement association with respect to a condo-
minium which he owns, such individual shall be 
treated as having paid his proportionate share 
VerDate Aug 31 2005 
05:07 Apr 03, 2007
Jkt 059196
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H1772.IH
H1772
mstockstill on PROD1PC66 with BILLS
of expenditures paid or incurred for qualified 
wind energy property by such association, and 
such credit shall be allocated appropriately to 
such individual. 
‘‘(B) CONDOMINIUM
MANAGEMENT
ASSO-
CIATION.—For purposes of this paragraph, the 
term ‘condominium management association’ 
means an organization which meets the require-
ments of section 528(c)(2) with respect to a 
condominium project of which substantially all 
of the units are used by individuals as dwelling 
units. 
‘‘(f) BASIS ADJUSTMENT.—For purposes of this sub-
title, if a credit is allowed under this section for any ex-
penditure with respect to a dwelling unit or other prop-
erty, the increase in the basis of such dwelling unit or 
other property which would (but for this subsection) result 
from such expenditure shall be reduced by the amount of 
the credit so allowed. 
‘‘(g) APPLICATION OF CREDIT.—The credit allowed 
under this section shall apply to property placed in service 
or installed after December 31, 2006, and before January 
1, 2012.’’. 
(b) CONFORMING AMENDMENT.—Subsection (a) of 
section 1016 of the Internal Revenue Code of 1986 (relat-
VerDate Aug 31 2005 
05:07 Apr 03, 2007
Jkt 059196
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H1772.IH
H1772
mstockstill on PROD1PC66 with BILLS
ing to general rule for adjustments to basis) is amended 
by striking ‘‘and’’ at the end of paragraph (36), by strik-
ing the period at the end of paragraph (37) and inserting 
‘‘, and’’, and by adding at the end the following new para-
graph: 
‘‘(38) in the case of a dwelling unit or other 
property with respect to which a credit was allowed 
under section 30D, to the extent provided in section 
30D(f).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by in-
serting after the item relating to section 30C the following 
new item: 
‘‘Sec. 30D. Wind energy property.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending after De-
cember 31, 2006. 
SEC. 3. 3-YEAR ACCELERATED DEPRECIATION PERIOD FOR 
WIND ENERGY PROPERTY. 
(a) IN GENERAL.—Subparagraph (A) of section 
168(e)(3) of the Internal Revenue Code of 1986 is amend-
ed by striking ‘‘and’’ at the end of clause (ii), by striking 
the period at the end of clause (iii) and inserting ‘‘, and’’, 
and by inserting after clause (iii) the following new clause: 
VerDate Aug 31 2005 
05:07 Apr 03, 2007
Jkt 059196
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H1772.IH
H1772
mstockstill on PROD1PC66 with BILLS
‘‘(iv) any property which would be de-
scribed in subparagraph (A) of section 
48(a)(3) if ‘wind energy’ were substituted 
for ‘solar energy’ in clause (i) thereof and 
the last sentence of such section did not 
apply to such subparagraph.’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
168(e)(3)(B)(vi)(I) of such Code is amended to read as 
follows: 
‘‘(I) is described in subparagraph 
(A) of section 48(a)(3) if the last sen-
tence of such section did not apply to 
such subparagraph,’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2006. 
Æ 
VerDate Aug 31 2005 
05:07 Apr 03, 2007
Jkt 059196
PO 00000
Frm 00007
Fmt 6652
Sfmt 6301
E:\BILLS\H1772.IH
H1772
mstockstill on PROD1PC66 with BILLS