I
107TH CONGRESS
1ST SESSION
H. R. 2322
To amend the Internal Revenue Code of 1986 to provide credits for
individuals and businesses for the installation of certain wind energy property.
IN THE HOUSE OF REPRESENTATIVES
JUNE 26, 2001
Mr. WATTS of Oklahoma (for himself, Mr. WATKINS of Oklahoma, and Mr.
LUCAS of Oklahoma) introduced the following bill; which was referred to
the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to provide
credits for individuals and businesses for the installation
of certain wind energy property.
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 ‘‘Home and Farm Wind
Energy Systems Act of 2001’’.
SEC. 2. CREDIT FOR WIND ENERGY PROPERTY INSTALLED
IN RESIDENCES AND BUSINESSES.
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by inserting after section 30A the fol-
lowing new section:
‘‘SEC. 30B. WIND ENERGY PROPERTY.
‘‘(a) ALLOWANCE OF CREDIT.—There shall be al-
lowed as a credit against the tax imposed by this chapter
for the taxable year an amount equal to 30 percent (10
percent after December 31, 2011) of the amount paid or
incurred by the taxpayer for qualified wind energy prop-
erty placed in service or installed during such taxable year.
‘‘(b) LIMITATION.—No credit shall be allowed under
subsection (a) unless at least 50 percent of the energy pro-
duced annually by the qualified wind energy property is
consumed on the site on which the property is placed in
service or installed.
‘‘(c) QUALIFIED WIND ENERGY PROPERTY.—For
purposes of this section, the term ‘qualified wind energy
property’ means a qualifying wind turbine if—
‘‘(1) in the case of an individual, the property
is installed on or in connection with a dwelling unit
which is located in the United States and which is
owned and used as the taxpayer’s principal resi-
dence,
‘‘(2) the original use of which commences with
the taxpayer, and
‘‘(3) the property carries at least a 5-year lim-
ited warranty covering defects in design, material, or
workmanship, and, for property that is not installed
by the taxpayer, at least a 5-year limited warranty
covering defects in installation.
‘‘(d) OTHER DEFINITIONS.—For purposes of this
section—
‘‘(1) QUALIFYING WIND TURBINE.—The term
‘qualifying wind turbine’ means a wind turbine of 75
kilowatts of rated capacity or less which meets the
latest performance rating standards published by the
American Wind Energy Association and which is
used to generate electricity.
‘‘(2) PRINCIPAL RESIDENCE.—The term ‘prin-
cipal residence’ shall have the same meaning as
when used in section 121.
‘‘(e) LIMITATION BASED ON AMOUNT OF TAX.—
‘‘(1) IN GENERAL.—The credit allowed under
subsection (a) for any 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 im-
posed by section 55, over
‘‘(B) the sum of the credits allowable
under this part (other than under this section
and subpart C thereof, relating to refundable
credits) and section 1397E.
‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the
credit allowable under subsection (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
subsection (a) for such taxable year.
‘‘(f) 
SPECIAL
RULES.—For 
purposes 
of 
this
section—
‘‘(1) TENANT-STOCKHOLDER IN COOPERATIVE
HOUSING CORPORATION.—In the case of an indi-
vidual who is a tenant-stockholder (as defined in sec-
tion 216(b)(2)) in a cooperative housing corporation
(as defined in section 216(b)(1)), such individual
shall be treated as having paid his tenant-stock-
holder’s proportionate share (as defined in section
216(b)(3)) of any expenditures paid or incurred for
qualified wind energy property by such corporation,
and such credit shall be allocated appropriately to
such individual.
‘‘(2) CONDOMINIUMS.—
‘‘(A) IN GENERAL.—In the case of an indi-
vidual who is a member of a condominium man-
agement association with respect to a condo-
minium which he owns, such individual shall be
treated as having paid his proportionate share
of expenditures paid or incurred for qualified
wind energy property by such association, and
such credit shall be allocated appropriately to
such individual.
‘‘(B) CONDOMINIUM
MANAGEMENT
ASSO-
CIATION.—For purposes of this paragraph, the
term ‘condominium management association’
means an organization which meets the require-
ments of section 528(c)(2) with respect to a
condominium project of which substantially all
of the units are used by individuals as resi-
dences.
‘‘(g) BASIS ADJUSTMENT.—For purposes of this sub-
title, if a credit is allowed under this section for any ex-
penditure with respect to a residence or other property,
the basis of such residence or other property shall be re-
duced by the amount of the credit so allowed.
‘‘(h) APPLICATION OF CREDIT.—The credit allowed
under this section shall apply to property placed in service
or installed after December 31, 2001.’’.
(b) CONFORMING AMENDMENT.—Subsection (a) of
section 1016 of such Code (relating to general rule for
adjustments to basis) is amended by striking ‘‘and’’ at the
end of paragraph (27), by striking the period at the end
of paragraph (28) and inserting ‘‘, and’’, and by adding
at the end the following new paragraph:
‘‘(29) in the case of a residence or other prop-
erty with respect to which a credit was allowed
under section 30B, to the extent provided in section
30B(g).’’.
(c) CLERICAL AMENDMENT.—The table of sections
for subpart B of part IV of subchapter A of chapter 1
of such Code is amended by inserting after the item relat-
ing to section 30A the following new item:
‘‘Sec. 30B. Wind energy property.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years ending after De-
cember 31, 2001.
Æ