651
‘‘(1) 15 percent of the qualified solar water
heating property expenditures made by the taxpayer
during such year,
‘‘(2) 15 percent of the qualified photovoltaic
property expenditures made by the taxpayer during
such year, and
‘‘(3) 15 percent of the qualified fuel cell prop-
erty expenditures made by the taxpayer during such
year.
‘‘(b) LIMITATIONS.—
‘‘(1) MAXIMUM CREDIT.—
‘‘(A) IN
GENERAL.—The credit allowed
under subsection (a) shall not exceed—
‘‘(i) $2,000 for solar water heating
property described in subsection (c)(1),
‘‘(ii) $2,000 for photovoltaic property
described in subsection (c)(2), and
‘‘(iii) $500 for each 0.5 kilowatt of ca-
pacity of property described in subsection
(c)(3).
‘‘(B) PRIOR EXPENDITURES BY TAXPAYER
ON SAME RESIDENCE TAKEN INTO ACCOUNT.—
In determining the amount of the credit allowed
to a taxpayer with respect to any dwelling unit
under this section, the dollar amounts under
652
clauses (i) and (ii) of subparagraph (A) with re-
spect to each type of property described in such
clauses shall be reduced by the credit allowed to
the taxpayer under this section with respect to
such type of property for all preceding taxable
years with respect to such dwelling unit.
‘‘(2) PROPERTY STANDARDS.—No credit shall
be allowed under this section for an item of property
unless—
‘‘(A) the original use of such property com-
mences with the taxpayer,
‘‘(B) such property can be reasonably ex-
pected to remain in use for at least 5 years,
‘‘(C) such property is installed on or in
connection with a dwelling unit located in the
United States and used as a residence by the
taxpayer,
‘‘(D) in the case of solar water heating
property, such property is certified for perform-
ance by the non-profit Solar Rating and Certifi-
cation Corporation or a comparable entity en-
dorsed by the government of the State in which
such property is installed, and
‘‘(E) in the case of fuel cell property, such
property meets the performance and quality
653
standards (if any) which have been prescribed
by the Secretary by regulations (after consulta-
tion with the Secretary of Energy).
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) QUALIFIED SOLAR WATER HEATING PROP-
ERTY
EXPENDITURE.—The term ‘qualified solar
water heating property expenditure’ means an ex-
penditure for property which uses solar energy to
heat water for use in a dwelling unit.
‘‘(2) QUALIFIED PHOTOVOLTAIC PROPERTY EX-
PENDITURE.—The term ‘qualified photovoltaic prop-
erty expenditure’ means an expenditure for property
which uses solar energy to generate electricity for
use in a dwelling unit and which is not described in
paragraph (1).
‘‘(3) QUALIFIED
FUEL
CELL
PROPERTY
EX-
PENDITURE.—The term ‘qualified fuel cell property
expenditure’ means an expenditure for any qualified
fuel cell property (as defined in section 48(b)(1)).
‘‘(d) SPECIAL
RULES.—For purposes of this
section—
‘‘(1) SOLAR PANELS.—No expenditure relating
to a solar panel or other property installed as a roof
(or portion thereof) shall fail to be treated as prop-
erty described in paragraph (1) or (2) of subsection
654
(c) solely because it constitutes a structural compo-
nent of the structure on which it is installed.
‘‘(2) SWIMMING POOLS, ETC., USED AS STOR-
AGE MEDIUM.—Expenditures which are properly al-
locable to a swimming pool, hot tub, or any other
energy storage medium which has a function other
than the function of such storage shall not be taken
into account for purposes of this section.
‘‘(3) DOLLAR AMOUNTS IN CASE OF JOINT OC-
CUPANCY.—In the case of any dwelling unit which is
jointly occupied and used during any calendar year
as a residence by 2 or more individuals, the fol-
lowing rules shall apply:
‘‘(A) The amount of the credit allowable
under subsection (a) by reason of expenditures
made during such calendar year by any of such
individuals with respect to such dwelling unit
shall be determined by treating all of such indi-
viduals as 1 taxpayer whose taxable year is
such calendar year.
‘‘(B) There shall be allowable, with respect
to such expenditures to each of such individ-
uals, a credit under subsection (a) for the tax-
able year in which such calendar year ends in
an amount which bears the same ratio to the