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.
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 ‘‘Home and Farm Wind 
Energy Systems Act of 2003’’. 
SEC. 2. CREDIT FOR WIND ENERGY PROPERTY INSTALLED 
IN RESIDENCES AND 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 inserting after section 30A the fol-
lowing new section: 
‘‘SEC. 30B. 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 30 percent (10 
percent after December 31, 2013) of the amount paid or 
incurred by the taxpayer for qualified wind energy prop-
erty placed in service or installed 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 qualifying wind turbine if—
‘‘(1) in the case of an individual, the property 
is installed on or in connection with a dwelling unit 
which is located in the United States and which is 
owned and used as the taxpayer’s principal resi-
dence, 
‘‘(2) the original use of which commences with 
the taxpayer, and
‘‘(3) the property 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) OTHER DEFINITIONS.—For purposes of this 
section—
‘‘(1) QUALIFYING WIND TURBINE.—The term 
‘qualifying wind turbine’ means a wind turbine of 75 
kilowatts of rated capacity or less which meets the 
latest performance rating standards published by the 
American Wind Energy Association and which is 
used to generate electricity. 
‘‘(2) PRINCIPAL RESIDENCE.—The term ‘prin-
cipal residence’ shall have the same meaning as 
when used in section 121. 
‘‘(e) 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. 
‘‘(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. 
‘‘(f) 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 
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 resi-
dences. 
‘‘(g) BASIS ADJUSTMENT.—For purposes of this sub-
title, if a credit is allowed under this section for any ex-
penditure with respect to a residence or other property, 
the basis of such residence or other property shall be re-
duced by the amount of the credit so allowed. 
‘‘(h) APPLICATION OF CREDIT.—The credit allowed 
under this section shall apply to property placed in service 
or installed after December 31, 2003.’’. 
(b) CONFORMING AMENDMENT.—Subsection (a) of 
section 1016 of such Code (relating to general rule for 
adjustments to basis) is amended by striking ‘‘and’’ at the
end of paragraph (27), by striking the period at the end 
of paragraph (28) and inserting ‘‘, and’’, and by adding 
at the end the following new paragraph: 
‘‘(29) in the case of a residence or other prop-
erty with respect to which a credit was allowed 
under section 30B, to the extent provided in section 
30B(g).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart B of part IV of subchapter A of chapter 1 
of such Code is amended by inserting after the item relat-
ing to section 30A the following new item:
‘‘Sec. 30B. Wind energy property.’’.
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending after De-
cember 31, 2003.
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