128 
by inserting after subclause (III) the following new sub-
clause: 
‘‘(IV) qualified small wind energy 
property, and’’. 
(c) QUALIFIED SMALL WIND ENERGY PROPERTY.— 
Section 48(c), as amended by section 103, is amended by 
adding at the end the following new paragraph: 
‘‘(4) QUALIFIED
SMALL
WIND
ENERGY
PROP-
ERTY.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
small wind energy property’ means property 
which uses a qualifying small wind turbine to 
generate electricity. 
‘‘(B) LIMITATION.—In the case of qualified 
small wind energy property placed in service 
during the taxable year, the credit otherwise de-
termined under subsection (a)(1) for such year 
with respect to all such property of the taxpayer 
shall not exceed $4,000. 
‘‘(C) QUALIFYING SMALL WIND TURBINE.— 
The term ‘qualifying small wind turbine’ means 
a wind turbine which has a nameplate capacity 
of not more than 100 kilowatts. 
‘‘(D) TERMINATION.—The term ‘qualified 
small wind energy property’ shall not include
129 
any property for any period after December 31, 
2016.’’. 
(d) CONFORMING AMENDMENT.—Section 48(a)(1), as 
amended by section 103, is amended by striking ‘‘para-
graphs (1)(B), (2)(B), and (3)(B)’’ and inserting ‘‘para-
graphs (1)(B), (2)(B), (3)(B), and (4)(B)’’. 
(e) EFFECTIVE DATE.—The amendments made by this 
section shall apply to periods after the date of the enactment 
of this Act, in taxable years ending after such date, under 
rules similar to the rules of section 48(m) of the Internal 
Revenue Code of 1986 (as in effect on the day before the 
date of the enactment of the Revenue Reconciliation Act of 
1990). 
SEC. 105. ENERGY CREDIT FOR GEOTHERMAL HEAT PUMP 
SYSTEMS. 
(a) IN
GENERAL.—Subparagraph (A) of section 
48(a)(3), as amended by this Act, is amended by striking 
‘‘or’’ at the end of clause (v), by inserting ‘‘or’’ at the end 
of clause (vi), and by adding at the end the following new 
clause: 
‘‘(vii) 
equipment 
which 
uses 
the 
ground or ground water as a thermal en-
ergy source to heat a structure or as a ther-
mal energy sink to cool a structure, but
130 
only with respect to periods ending before 
January 1, 2017,’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to periods after the date of the enactment 
of this Act, in taxable years ending after such date, under 
rules similar to the rules of section 48(m) of the Internal 
Revenue Code of 1986 (as in effect on the day before the 
date of the enactment of the Revenue Reconciliation Act of 
1990). 
SEC. 106. CREDIT FOR RESIDENTIAL ENERGY EFFICIENT 
PROPERTY. 
(a) EXTENSION.—Section 25D(g) is amended by strik-
ing ‘‘December 31, 2008’’ and inserting ‘‘December 31, 
2016’’. 
(b) REMOVAL OF LIMITATION FOR SOLAR ELECTRIC 
PROPERTY.— 
(1) IN GENERAL.—Section 25D(b)(1), as amend-
ed by subsections (c) and (d), is amended— 
(A) by striking subparagraph (A), and 
(B) by redesignating subparagraphs (B) 
through (E) as subparagraphs (A) through and 
(D), respectively. 
(2) 
CONFORMING
AMENDMENT.—Section 
25D(e)(4)(A), as amended by subsections (c) and (d), 
is amended—
131 
(A) by striking clause (i), and 
(B) by redesignating clauses (ii) through (v) 
as clauses (i) and (iv), respectively. 
(c) CREDIT FOR RESIDENTIAL WIND PROPERTY.— 
(1) IN GENERAL.—Section 25D(a) is amended by 
striking ‘‘and’’ at the end of paragraph (2), by strik-
ing the period at the end of paragraph (3) and insert-
ing ‘‘, and’’, and by adding at the end the following 
new paragraph: 
‘‘(4) 30 percent of the qualified small wind en-
ergy property expenditures made by the taxpayer 
during such year.’’. 
(2) LIMITATION.—Section 25D(b)(1) is amended 
by striking ‘‘and’’ at the end of subparagraph (B), by 
striking the period at the end of subparagraph (C) 
and inserting ‘‘, and’’, and by adding at the end the 
following new subparagraph: 
‘‘(D) $500 with respect to each half kilowatt 
of capacity (not to exceed $4,000) of wind tur-
bines for which qualified small wind energy 
property expenditures are made.’’. 
(3) QUALIFIED SMALL WIND ENERGY PROPERTY 
EXPENDITURES.—
132 
(A) 
IN
GENERAL.—Section 
25D(d) 
is 
amended by adding at the end the following new 
paragraph: 
‘‘(4) QUALIFIED SMALL WIND ENERGY PROPERTY 
EXPENDITURE.—The term ‘qualified small wind en-
ergy property expenditure’ means an expenditure for 
property which uses a wind turbine to generate elec-
tricity for use in connection with a dwelling unit lo-
cated in the United States and used as a residence by 
the taxpayer.’’. 
(B) 
NO
DOUBLE
BENEFIT.—Section 
45(d)(1) is amended by adding at the end the 
following new sentence: ‘‘Such term shall not in-
clude any facility with respect to which any 
qualified small wind energy property expendi-
ture (as defined in subsection (d)(4) of section 
25D) is taken into account in determining the 
credit under such section.’’. 
(4) MAXIMUM EXPENDITURES IN CASE OF JOINT 
OCCUPANCY.—Section 25D(e)(4)(A) is amended by 
striking ‘‘and’’ at the end of clause (ii), by striking 
the period at the end of clause (iii) and inserting ‘‘, 
and’’, and by adding at the end the following new 
clause:
133 
‘‘(iv) $1,667 in the case of each half 
kilowatt of capacity (not to exceed $13,333) 
of wind turbines for which qualified small 
wind energy property expenditures are 
made.’’. 
(d) CREDIT
FOR GEOTHERMAL HEAT
PUMP SYS-
TEMS.— 
(1) IN GENERAL.—Section 25D(a), as amended 
by subsection (c), is amended by striking ‘‘and’’ at the 
end of paragraph (3), by striking the period at the 
end of paragraph (4) and inserting ‘‘, and’’, and by 
adding at the end the following new paragraph: 
‘‘(5) 30 percent of the qualified geothermal heat 
pump property expenditures made by the taxpayer 
during such year.’’. 
(2) LIMITATION.—Section 25D(b)(1), as amend-
ed by subsection (c), is amended by striking ‘‘and’’ at 
the end of subparagraph (C), by striking the period 
at the end of subparagraph (D) and inserting ‘‘, 
and’’, and by adding at the end the following new 
subparagraph: 
‘‘(E) $2,000 with respect to any qualified 
geothermal heat pump property expenditures.’’. 
(3) QUALIFIED GEOTHERMAL HEAT PUMP PROP-
ERTY EXPENDITURE.—Section 25D(d), as amended by
134 
subsection (c), is amended by adding at the end the 
following new paragraph: 
‘‘(5) QUALIFIED
GEOTHERMAL
HEAT
PUMP 
PROPERTY EXPENDITURE.— 
‘‘(A) IN GENERAL.—The term ‘qualified geo-
thermal heat pump property expenditure’ means 
an expenditure for qualified geothermal heat 
pump property installed on or in connection 
with a dwelling unit located in the United States 
and used as a residence by the taxpayer. 
‘‘(B) QUALIFIED GEOTHERMAL HEAT PUMP 
PROPERTY.—The term ‘qualified geothermal heat 
pump property’ means any equipment which— 
‘‘(i) uses the ground or ground water 
as a thermal energy source to heat the 
dwelling unit referred to in subparagraph 
(A) or as a thermal energy sink to cool such 
dwelling unit, and 
‘‘(ii) meets the requirements of the En-
ergy Star program which are in effect at 
the time that the expenditure for such 
equipment is made.’’. 
(4) MAXIMUM EXPENDITURES IN CASE OF JOINT 
OCCUPANCY.—Section 25D(e)(4)(A), as amended by 
subsection (c), is amended by striking ‘‘and’’ at the
135 
end of clause (iii), by striking the period at the end 
of clause (iv) and inserting ‘‘, and’’, and by adding 
at the end the following new clause: 
‘‘(v) $6,667 in the case of any qualified 
geothermal heat pump property expendi-
tures.’’. 
(e) CREDIT ALLOWED AGAINST ALTERNATIVE MIN-
IMUM TAX.— 
(1) IN GENERAL.—Subsection (c) of section 25D 
is amended to read as follows: 
‘‘(c) LIMITATION
BASED
ON
AMOUNT
OF
TAX; 
CARRYFORWARD OF UNUSED CREDIT.— 
‘‘(1) LIMITATION BASED ON AMOUNT OF TAX.— 
In the case of a taxable year to which section 26(a)(2) 
does not apply, the credit allowed under subsection 
(a) for the 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 imposed by 
section 55, over 
‘‘(B) the sum of the credits allowable under 
this subpart (other than this section) and section 
27 for the taxable year. 
‘‘(2) CARRYFORWARD OF UNUSED CREDIT.—
136 
‘‘(A) RULE FOR YEARS IN WHICH ALL PER-
SONAL
CREDITS
ALLOWED
AGAINST
REGULAR 
AND ALTERNATIVE MINIMUM TAX.—In the case of 
a taxable year to which section 26(a)(2) applies, 
if the credit allowable under subsection (a) ex-
ceeds the limitation imposed by section 26(a)(2) 
for such taxable year reduced by the sum of the 
credits allowable under this subpart (other than 
this section), such excess shall be carried to the 
succeeding taxable year and added to the credit 
allowable under subsection (a) for such suc-
ceeding taxable year. 
‘‘(B) RULE FOR OTHER YEARS.—In the case 
of a taxable year to which section 26(a)(2) does 
not apply, if the credit allowable under sub-
section (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 sub-
section (a) for such succeeding taxable year.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 23(b)(4)(B) is amended by in-
serting ‘‘and section 25D’’ after ‘‘this section’’.
137 
(B) Section 24(b)(3)(B) is amended by 
striking ‘‘and 25B’’ and inserting ‘‘, 25B, and 
25D’’. 
(C) Section 25B(g)(2) is amended by strik-
ing ‘‘section 23’’ and inserting ‘‘sections 23 and 
25D’’. 
(D) Section 26(a)(1) is amended by striking 
‘‘and 25B’’ and inserting ‘‘25B, and 25D’’. 
(f) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section shall 
apply to taxable years beginning after December 31, 
2007. 
(2) SOLAR ELECTRIC PROPERTY LIMITATION.— 
The amendments made by subsection (b) shall apply 
to taxable years beginning after December 31, 2008. 
(3) APPLICATION
OF
EGTRRA
SUNSET.—The 
amendments made by subparagraphs (A) and (B) of 
subsection (e)(2) shall be subject to title IX of the Eco-
nomic Growth and Tax Relief Reconciliation Act of 
2001 in the same manner as the provisions of such 
Act to which such amendments relate.
138 
SEC. 107. NEW CLEAN RENEWABLE ENERGY BONDS. 
(a) IN GENERAL.—Subpart I of part IV of subchapter 
A of chapter 1 is amended by adding at the end the fol-
lowing new section: 
‘‘SEC. 54C. NEW CLEAN RENEWABLE ENERGY BONDS. 
‘‘(a) NEW CLEAN RENEWABLE ENERGY BOND.—For 
purposes of this subpart, the term ‘new clean renewable en-
ergy bond’ means any bond issued as part of an issue if— 
‘‘(1) 100 percent of the available project proceeds 
of such issue are to be used for capital expenditures 
incurred by governmental bodies, public power pro-
viders, or cooperative electric companies for one or 
more qualified renewable energy facilities, 
‘‘(2) the bond is issued by a qualified issuer, and 
‘‘(3) the issuer designates such bond for purposes 
of this section. 
‘‘(b) REDUCED CREDIT AMOUNT.—The annual credit 
determined under section 54A(b) with respect to any new 
clean renewable energy bond shall be 70 percent of the 
amount so determined without regard to this subsection. 
‘‘(c) LIMITATION
ON
AMOUNT
OF
BONDS
DES-
IGNATED.— 
‘‘(1) IN
GENERAL.—The maximum aggregate 
face amount of bonds which may be designated under 
subsection (a) by any issuer shall not exceed the limi-