‘‘(1) IN GENERAL.—If any bond which when
issued purported to be a Residential Solar Energy
Bond ceases to meet the requirements of subsection
(c), the issuer shall pay to the United States (at the
time required by the Secretary) an amount equal to
the aggregate of the credits allowable under this sec-
tion (determined without regard to subsection (e))
for taxable years ending during the calendar year in
which such cessation occurs and the 2 preceding cal-
endar years.
‘‘(2) FAILURE TO PAY.—If the issuer fails to
timely pay the amount required by paragraph (1)
with respect to any issue, the tax imposed by this
chapter on each holder of any bond which is part of
such issue shall be increased (for the taxable year of
the holder in which such cessation occurs) by the ag-
gregate decrease in the credits allowed under this
section to such holder for taxable years beginning in
such 3 calendar years which would have resulted
solely from denying any credit under this section
with respect to such issue for such taxable years.
‘‘(3) SPECIAL RULES.—
‘‘(A) TAX
BENEFIT
RULE.—The tax for
the taxable year shall be increased under para-
graph (2) only with respect to credits allowed
by reason of this section which were used to re-
duce tax liability. In the case of credits not so
used to reduce tax liability, the carryforwards
and carrybacks under section 39 shall be appro-
priately adjusted.
‘‘(B) NO CREDITS AGAINST TAX.—Any in-
crease in tax under paragraph (2) shall not be
treated as a tax imposed by this chapter for
purposes of determining—
‘‘(i) the amount of any credit allow-
able under this part, or
‘‘(ii) the amount of the tax imposed
by section 55.’’
(b) REPORTING.—Subsection (d) of section 6049 of
such Code (relating to returns regarding payments of in-
terest) is amended by adding at the end the following new
paragraph:
‘‘(8) REPORTING OF CREDIT ON RESIDENTIAL
SOLAR ENERGY BONDS.—
‘‘(A) IN GENERAL.—For purposes of sub-
section (a), the term ‘interest’ includes amounts
includible in gross income under section 30B(g)
and such amounts shall be treated as paid on
the credit allowance date (as defined in section
30B(f)(1)).
‘‘(B) 
REPORTING
TO
CORPORATIONS,
ETC.—Except as otherwise provided in regula-
tions, in the case of any interest described in
subparagraph (A) of this paragraph, subsection
(b)(4) of this section shall be applied without
regard to subparagraphs (A), (H), (I), (J), (K),
and (L)(i).
‘‘(C) REGULATORY AUTHORITY.—The Sec-
retary may prescribe such regulations as are
necessary or appropriate to carry out the pur-
poses of this paragraph, including regulations
which require more frequent or more detailed
reporting.’’
(c) CONFORMING AMENDMENT.—The table of sec-
tions for subpart B of part IV of subchapter A of chapter
1 of such Code is amended by adding at the end the fol-
lowing new item:
‘‘Sec. 30B. Credit to holders of Residential Solar Energy Bonds.’’
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to obligations issued after Decem-
ber 31, 2001.
(e) GUIDELINES FOR APPLICATIONS.—Not later than
January 1, 2002, guidelines specifying the criteria to be
used in approving applications under section 30B(d)(3) of
the Internal Revenue Code of 1986 (as added by this Act)
shall be developed and published by the Secretary of En-
ergy in the Federal Register.
Æ