SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Solar Stimulus for Job 
Creation and Energy Independence Act of 2009’’. 
SEC. 2. TEMPORARY REFUNDABILITY OF SOLAR ENERGY 
CREDIT. 
(a) RESIDENTIAL SOLAR ENERGY CREDIT.—Sub-
section (c) of section 25D of the Internal Revenue Code 
of 1986 (relating to limitation based on amount of tax; 
carryforward of unused credit) is amended by adding at 
the end the following new paragraph: 
‘‘(3) TEMPORARY
REFUNDABILITY
OF
SOLAR 
ENERGY CREDIT.— 
‘‘(A) IN GENERAL.—The aggregate credits 
allowed to the taxpayer under subpart C shall 
be increased by the credit which would be deter-
mined under paragraphs (1) and (2) of sub-
section (a) for expenditures made during the 
taxable year without regard to section 26(a)(2) 
or paragraphs (1) of this subsection, as the 
case may be. Credits allowed under subpart C 
by reason of the preceding sentence shall not be 
taken into account in determining the excess 
described in paragraph (2). 
‘‘(B) TERMINATION.—Subparagraph (A) 
shall not apply to any taxable year ending after 
December 31, 2010.’’. 
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(b) BUSINESS SOLAR ENERGY CREDIT.— 
(1) IN GENERAL.—Subsection (c) of section 38 
of such Code (relating to limitation based on amount 
of tax) is amended by redesignating paragraph (5) 
as paragraph (6) and by inserting after paragraph 
(4) the following new paragraph: 
‘‘(5) SPECIAL
RULES
FOR
SOLAR
ENERGY 
CREDITS.— 
‘‘(A) IN
GENERAL.—In the case of the 
solar energy credits— 
‘‘(i) this section and section 39 shall 
be applied separately with respect to such 
credits, 
‘‘(ii) in applying paragraph (1) to 
such credits— 
‘‘(I) the tentative minimum tax 
shall be treated as being zero, and 
‘‘(II) the limitation under para-
graph (1) (as modified by subclause 
(I)) shall be reduced by the credit al-
lowed under subsection (a) for the 
taxable year (other than the solar en-
ergy credits), and 
‘‘(iii) the amount of the solar energy 
credits in excess of the limitation under 
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paragraph (1) (as modified by subclause 
(II)) shall be treated as a credit under sub-
part C. 
‘‘(B) SOLAR ENERGY CREDITS.—For pur-
poses of this subsection, the term ‘solar energy 
credits’ means so much of the energy credit as 
is attributable to property described in clause 
(i) or (ii) of section 48(a)(3)(A). 
‘‘(C) TERMINATION.—This paragraph shall 
not apply to any taxable year ending after De-
cember 31, 2010.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) 
Subclause 
(II) 
of 
section 
38(c)(2)(A)(ii) of such Code is amended by 
striking ‘‘and the specified credits’’ and insert-
ing ‘‘the specified credits, and the solar energy 
credits’’. 
(B) 
Subclause 
(II) 
of 
section 
38(c)(3)(A)(ii) of such Code is amended by 
striking ‘‘and the specified credits’’ and insert-
ing ‘‘, the specified credits, and the solar energy 
credits’’. 
(C) 
Subclause 
(II) 
of 
section 
38(c)(4)(A)(ii) of such Code is amended by in-
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serting ‘‘and the solar energy credits’’ after 
‘‘specified credits’’. 
(D) Paragraph (2) of section 1324(b) of 
title 31, United States Code, is amended— 
(i) by inserting ‘‘25D(c)(3),’’ before 
‘‘35,’’ and 
(ii) by inserting ‘‘38(c)(5),’’ after 
‘‘36,’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 3. TEMPORARY REFUNDABILITY OF DEPRECIATION 
DEDUCTION FOR SOLAR ENERGY PROPERTY. 
(a) IN GENERAL.—Subparagraph (A) of section 
48(a)(2) of the Internal Revenue Code of 1986 (relating 
to energy credit) is amended by striking ‘‘and’’ at the end 
of clause (i), by redesignating clause (ii) as clause (iii), 
and by inserting after clause (i) the following new clause: 
‘‘(ii) at the election of the taxpayer 
for any taxable year ending before January 
1, 2011, 331⁄3 percent of the aggregate de-
ductions which would (but for subpara-
graph (C)) be allowed for the taxable year 
for property described in clause (i) or (ii) 
of paragraph (3)(A), and’’. 
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(b) DENIAL
OF DEPRECIATION WHERE CREDIT 
ELECTED.—Paragraph (2) of section 48(a) of such Code 
is amended by adding at the end the following new sub-
paragraph: 
‘‘(C) DENIAL
OF
DEPRECIATION, ETC., 
WHERE
CREDIT
ELECTED.—No deduction for 
depreciation (or amortization in lieu of depre-
ciation) shall be allowed for the taxable year 
with respect to property described in clause (i) 
or (ii) of paragraph (3)(A) if the taxpayer 
makes the election under subparagraph (A)(ii) 
with respect to such property. Notwithstanding 
the preceding sentence, deductions not allowed 
by the preceding sentence shall be treated as al-
lowed for purposes of applying section 1016.’’. 
(c) CONFORMING AMENDMENT.—Clause (iii) of sec-
tion 48(a)(2) of such Code is amended by striking ‘‘clause 
(i) does not apply’’ and inserting ‘‘neither clause (i) nor 
(ii) apply’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
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SEC. 4. EXCEPTION FROM PRIVATE ACTIVITY BOND TESTS 
FOR FINANCING OF SOLAR ENERGY PROP-
ERTY. 
(a) EXCEPTION FROM PRIVATE BUSINESS USE 
TEST.—Paragraph (6) of section 141(b) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new subparagraph: 
‘‘(C) SOLAR
ENERGY
PROPERTY.—For 
purposes of subparagraph (A), property de-
scribed in clause (i) or (ii) of section 
48(a)(3)(A) shall not be treated as used in a 
trade or business.’’. 
(b) EXCEPTION FROM PRIVATE LOAN FINANCING 
TEST.—Paragraph (2) of section 141(c) of such Code (re-
lating to exception for tax assessment, etc., loans) is 
amended by striking ‘‘or’’ at the end of subparagraph (B), 
by striking the period at the end of subparagraph (C) and 
inserting ‘‘, or’’, and by adding at the end the following 
new subparagraph: 
‘‘(D) enables the borrower to finance the 
acquisition, construction, and installation of 
property described in clause (i) or (ii) of section 
48(a)(3)(A).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to obligations issued after the date 
of the enactment of this Act. 
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