I 
110TH CONGRESS 
1ST SESSION H. R. 2441 
To amend the Internal Revenue Code of 1986 to allow public school districts 
to receive no interest loans for the purchase of renewable energy systems, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 22, 2007 
Mr. MATHESON (for himself, Ms. BERKLEY, Mr. UDALL of Colorado, Mr. 
BISHOP of Utah, Mr. SALAZAR, and Mr. CANNON) introduced the fol-
lowing bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to allow public 
school districts to receive no interest loans for the pur-
chase of renewable energy systems, and for other pur-
poses. 
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 ‘‘Renewable Schools En-
ergy Act of 2007’’. 
SEC. 2. QUALIFIED RENEWABLE SCHOOL ENERGY BONDS. 
(a) IN GENERAL.—Subchapter U of chapter 1 of the 
Internal Revenue Code of 1986 (relating to incentives for 
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education zones) is amended by redesignating section 
1397F as section 1397G and by adding at the end of part 
IV of such subchapter the following new section: 
‘‘SEC. 1397F. QUALIFIED RENEWABLE SCHOOL ENERGY 
BONDS. 
‘‘(a) ALLOWANCE OF CREDIT.—If a taxpayer holds 
a qualified renewable school energy bond on 1 or more 
credit allowance dates of the bond occurring during any 
taxable year, there shall be allowed as a credit against the 
tax imposed by this chapter for the taxable year an 
amount equal to the sum of the credits determined under 
subsection (b) with respect to such dates. 
‘‘(b) AMOUNT OF CREDIT.— 
‘‘(1) IN GENERAL.—The amount of the credit 
determined under this subsection with respect to any 
credit allowance date for a qualified renewable 
school energy bond is 25 percent of the annual cred-
it determined with respect to such bond. 
‘‘(2) ANNUAL CREDIT.—The annual credit de-
termined with respect to any qualified renewable 
school energy bond is the product of— 
‘‘(A) the credit rate determined by the Sec-
retary under paragraph (3) for the day on 
which such bond was sold, multiplied by 
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‘‘(B) the outstanding face amount of the 
bond. 
‘‘(3) DETERMINATION.—For purposes of para-
graph (2), with respect to any qualified renewable 
school energy bond, the Secretary shall determine 
daily or cause to be determined daily a credit rate 
which shall apply to the first day on which there is 
a binding, written contract for the sale or exchange 
of the bond. The credit rate for any day is the credit 
rate which the Secretary or the Secretary’s designee 
estimates will permit the issuance of qualified renew-
able school energy bonds with a specified maturity 
or redemption date without discount and without in-
terest cost to the qualified issuer. 
‘‘(4) CREDIT ALLOWANCE DATE.—For purposes 
of this section, the term ‘credit allowance date’ 
means— 
‘‘(A) March 15, 
‘‘(B) June 15, 
‘‘(C) September 15, and 
‘‘(D) December 15. 
Such term also includes the last day on which the 
bond is outstanding. 
‘‘(5) SPECIAL RULE FOR ISSUANCE AND RE-
DEMPTION.—In the case of a bond which is issued 
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during the 3-month period ending on a credit allow-
ance date, the amount of the credit determined 
under this subsection with respect to such credit al-
lowance date shall be a ratable portion of the credit 
otherwise determined based on the portion of the 3- 
month period during which the bond is outstanding. 
A similar rule shall apply when the bond is redeemed 
or matures. 
‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.—The 
credit allowed under subsection (a) for any taxable year 
shall not exceed the excess of— 
‘‘(1) the sum of the regular tax liability (as de-
fined in section 26(b)) plus the tax imposed by sec-
tion 55, over 
‘‘(2) the sum of the credits allowable under part 
IV of subchapter A (other than subpart C thereof, 
relating to refundable credits, subpart H thereof, 
section 1400N(l), and this section). 
‘‘(d) QUALIFIED
RENEWABLE
SCHOOL
ENERGY 
BOND.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘renewable school 
energy bond’ means any bond issued as part of an 
issue if— 
‘‘(A) 95 percent or more of the proceeds of 
such issue are to be used for a qualified pur-
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