I 
111TH CONGRESS 
2D SESSION 
H. R. 5464 
To amend the Internal Revenue Code of 1986 to provide that solar electric 
property need not be located on the property with respect to which 
it is generating electricity in order to qualify for the residential energy 
efficient property credit. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 28, 2010 
Ms. GIFFORDS (for herself, Mr. BLUMENAUER, Mr. THOMPSON of California, 
Mr. POLIS of Colorado, Mr. LUJA´N, Ms. HIRONO, Mr. GARAMENDI, Mr. 
WU, and Mrs. BONO MACK) introduced the following bill; which was re-
ferred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
that solar electric property need not be located on the 
property with respect to which it is generating electricity 
in order to qualify for the residential energy efficient 
property credit. 
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 ‘‘Solar Uniting Neigh-
borhoods Act of 2010’’ or the ‘‘SUN Act’’. 
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SEC. 2. MODIFICATION OF CREDIT FOR RESIDENTIAL EN-
ERGY EFFICIENT PROPERTY. 
(a) CLARIFICATION WITH RESPECT TO LOCATION OF 
SOLAR ELECTRIC PROPERTY.—Section 25D(d)(2) of the 
Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘The term’’ and inserting the 
following: 
‘‘(A) IN GENERAL.—The term’’, and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(B) OFF-SITE PROPERTY.— 
‘‘(i) IN
GENERAL.—Such term shall 
include an expenditure for qualified prop-
erty described in subparagraph (A) not-
withstanding— 
‘‘(I) whether such qualified prop-
erty is located on the same site as the 
dwelling unit for which the electricity 
generated from such property is used, 
and 
‘‘(II) whether the electricity gen-
erated by the qualified property enters 
the electrical grid, so long as such 
electricity enters the grid at any point 
located in the same State within 
which such dwelling unit is connected. 
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‘‘(ii) 
QUALIFIED
PROPERTY.—For 
purposes of this subparagraph, the term 
‘qualified property’ means property— 
‘‘(I) which is not used in a trade 
or business, and 
‘‘(II) the electricity generated 
from which does not give rise to in-
come for the taxable year (or any tax-
able year in the recapture period) in 
excess of amounts that would other-
wise be charged to such taxpayer for 
electricity used at the taxpayer’s resi-
dence during the year. 
‘‘(iii) RECAPTURE.— 
‘‘(I) IN
GENERAL.—The Sec-
retary may provide for the recapture 
of the credit under this subsection 
with respect to any property described 
in this subparagraph which ceases to 
be qualified property during the re-
capture period. 
‘‘(II) RECAPTURE PERIOD.—For 
purposes of this subparagraph, the re-
capture period with respect to any 
qualified property is the first 5 tax-
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able years beginning after the taxable 
year for which a credit is allowed 
under this section with respect to such 
property.’’. 
(b) LIMITATION WITH RESPECT TO OFF-SITE SOLAR 
ELECTRIC PROPERTY.—Subsection (b) of section 25D of 
such Code is amended by adding at the end the following 
new paragraph: 
‘‘(3) MAXIMUM CREDIT FOR OFF-SITE SOLAR 
ELECTRIC PROPERTY.—In the case of any qualified 
solar electric property expenditure with respect to 
property not located on the same site as the dwelling 
unit, the credit allowed under subsection (a) (deter-
mined without regard to subsection (c)) for any tax-
able year shall not exceed $50,000.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Æ 
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