ity with a service obligation (as such terms are 
defined in section 217 of the Federal Power 
Act, as in effect on the date of the enactment 
of this paragraph),’’ after ‘‘thereof),’’, 
(B) in paragraph (2), by inserting ‘‘other 
than a mutual or cooperative electric company 
described in section 50(c)(12) of such Code’’ 
after ‘‘such Code’’, and 
(C) by striking paragraph (3) and redesig-
nating paragraph (4) as paragraph (3). 
(2) CONFORMING AMENDMENT.—Paragraph (3) 
of section 1603(g) of division B of such Act, as re-
designated by paragraph (1)(C), is amended by 
striking ‘‘paragraph (1), (2), or (3)’’ and inserting 
‘‘paragraph (1) or (2)’’. 
(b) NO GRANTS FOR PORTION OF PROPERTY FI-
NANCED WITH CREBS OR TAX-EXEMPT BONDS.—Sec-
tion 1603 of division B of such Act, as amended by section 
2, is amended by redesignating subsections (h), (i), and 
(j) as subsections (i), (j), and (k), respectively, and by in-
serting after subsection (g) the following new subsection: 
‘‘(h) SPECIAL RULE FOR BOND FINANCED PROP-
ERTY.—The amount of any grant under this section with 
respect to any specified energy property shall not exceed 
an amount equal to— 
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‘‘(1) the basis of such property, over 
‘‘(2) the portion of the basis of such property 
which is allocable to proceeds of any bond which is 
designated as a new clean renewable energy bond 
under section 54C of such Code or any bond the in-
terest on which is exempt from tax under section 
103 of such Code.’’. 
(c) TREATMENT
OF GRANTS
FOR COOPERATIVE 
ELECTRIC
COMPANIES.—Paragraph (12) of section 
501(c) of the Internal Revenue Code of 1986 is amended 
by adding at the end the following new subparagraph: 
‘‘(I) In the case of a mutual or cooperative 
electric company described in this paragraph or 
an 
organization 
described 
in 
section 
1381(a)(2)(C), subparagraph (A) shall be ap-
plied without taking into account any grant re-
ceived under section 1603 of division B of the 
American Recovery and Reinvestment Act of 
2009.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act. 
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SEC. 4. CREDIT FOR QUALIFIED SOLAR MANUFACTURING 
PROJECT PROPERTY. 
(a) IN GENERAL.—Subparagraph (A) of section 
48(a)(3) of the Internal Revenue Code of 1986 is amended 
by striking ‘‘or’’ at the end of clause (vi), by inserting 
‘‘or’’ at the end of clause (vii), and by inserting after 
clause (vii) the following new clause: 
‘‘(viii) qualified solar manufacturing 
project property,’’. 
(b) CREDIT PERCENTAGE.—Subclause (II) of section 
48(a)(2)(A)(i) of such Code is amended by striking ‘‘para-
graph (3)(A)(i)’’ and inserting ‘‘clause (i) or (viii) of para-
graph (3)(A)’’. 
(c) QUALIFIED
SOLAR
MANUFACTURING
PROP-
ERTY.—Section 48(c) of such Code is amended by adding 
at the end the following new paragraph: 
‘‘(5) 
QUALIFIED
SOLAR
MANUFACTURING 
PROJECT
PROPERTY.—The term ‘qualified solar 
manufacturing project property’ means any tangible 
personal property (not including a building or its 
structural components) purchased to re-equip, ex-
pand, or establish a manufacturing facility for the 
production of property described in subsection 
(a)(3)(A)(i), but only if such property is used as an 
integral part of the production process. Such term 
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shall not include any property if such property has 
been certified for a credit under section 48C.’’. 
(d) PROPERTY ELIGIBLE FOR GRANT.—Subsection 
(d) of section 1603 of division B of the American Recovery 
and Reinvestment Act of 2009 is amended by inserting 
after paragraph (8) the following new paragraph: 
‘‘(9) 
QUALIFIED
SOLAR
MANUFACTURING 
PROJECT PROPERTY.—Any qualified solar manufac-
turing project property (as defined in section 
48(c)(5) of such Code).’’. 
(e) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
subsections (a), (b), and (c) shall apply to periods 
after the date of the enactment of this Act, under 
rules similar to the rules of section 48(m) of the In-
ternal Revenue Code of 1986 (as in effect on the day 
before the date of the enactment of the Revenue 
Reconciliation Act of 1990). 
(2) GRANTS.—The amendment made by sub-
section (d) shall apply to property placed in service 
after the date of the enactment of this Act. 
SEC. 5. CREDIT FOR HIGH SOLARITY DISTURBED PRIVATE 
LAND CONSOLIDATION. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
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1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 45S. HIGH SOLARITY DISTURBED PRIVATE LAND 
CONSOLIDATION CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 38, the 
high solarity disturbed private land consolidation credit 
for any taxable year is an amount equal to 30 percent 
of any amounts paid during the taxable year to purchase 
more than 2 sections of contiguous high solarity disturbed 
private land for the purpose of consolidating the lands into 
a contiguous block suitable for the production of solar en-
ergy for use in a trade or business. 
‘‘(b) HIGH SOLARITY DISTURBED PRIVATE LAND.— 
The term ‘high solarity disturbed private land’ means real 
property which— 
‘‘(1) is located in the United States, 
‘‘(2) was acquired in units that averaged less 
than 100 contiguous acres from any private person, 
‘‘(3) is in a location identified on the July 2007 
Concentrating Solar Power Resources Maps pub-
lished by the National Renewable Energy Labora-
tory as— 
‘‘(A) having a solar resource of 7 kwh per 
square meter per year or higher, at 3 percent 
or less grade, and 
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‘‘(B) outside of a sensitive environmental 
or urban area, 
‘‘(4) was previously disturbed either by residen-
tial or retail development, agriculture, industrial use, 
mining, or other mechanical disturbance, and 
‘‘(5) will be primarily used for generating solar 
electricity from property which is described in sec-
tion 48(a)(3)(A)(i) within 5 years of the date of pur-
chase. 
‘‘(c) REDUCTION IN BASIS.—If a credit is determined 
under this section with respect to any property by reason 
of expenditures described in subsection (a), the basis of 
such property shall be reduced by the amount of the credit 
so determined. 
‘‘(d) PROPERTY USED BY TAX-EXEMPT PERSONS.— 
For purposes of this section, rules similar to the rules of 
paragraphs (3) and (4) of section 50(b) shall apply. 
‘‘(e) RECAPTURE IN CASE OF DISPOSITION.—The 
Secretary shall provide for the recapture of the amount 
of any credit allowed under this section if the property 
is not used for the production of solar energy in a trade 
or business within 5 years of the date of purchase.’’. 
(b) CREDIT ALLOWED AS BUSINESS CREDIT.—Sec-
tion 38(b) of such Code is amended by striking ‘‘plus’’ 
at the end of paragraph (35), by striking the period at 
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the end of paragraph (36) and inserting ‘‘, plus’’, and by 
adding at the end the following new paragraph: 
‘‘(37) the high solarity disturbed private land 
consolidation 
credit 
determined 
under 
section 
45S(a).’’. 
(c) BASIS ADJUSTMENT.—Section 1016(a) of such 
Code is amended by striking ‘‘and’’ at the end of para-
graph (36), by striking the period at the end of paragraph 
(37) and inserting ‘‘, and’’, and by adding at the end the 
following: 
‘‘(38) in the case of a facility with respect to 
which a credit was allowed under section 45S, to the 
extent provided in section 45S(c).’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following new item: 
‘‘Sec. 45S. High solarity disturbed private land consolidation 
credit.’’. 
(e) 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. 6. ENERGY CREDIT ALLOWED FOR WATER HEATERS 
IN POOLS LOCATED ON COMMERCIAL PROP-
ERTY. 
(a) IN GENERAL.—Section 48(a)(3)(A)(i) of the In-
ternal Revenue Code of 1986 is amended by inserting ‘‘lo-
cated at a single family residence’’ after ‘‘swimming pool’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act. 
Æ 
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