118
‘‘(B) the individual has or will acquire a bene-
ficial property interest (as so determined) in such 
housing or residence. 
‘‘(c) REGULATIONS.—Benefits and assistance under 
this chapter by reason of this section shall be provided in 
accordance with such regulations as the Secretary may pre-
scribe.’’. 
(b) CONFORMING AMENDMENTS.—
(1) REPEAL OF SUPERSEDED AUTHORITY.—Sec-
tion 2101 of such title is amended—
(A) by striking subsection (c); and 
(B) by redesignating subsection (d) as sub-
section (c). 
(2) LIMITATIONS ON ASSISTANCE.—Section 2102 
of such title is amended—
(A) in subsection (a)—
(i) by striking ‘‘veteran’’ each place it 
appears and inserting ‘‘individual’’; and 
(ii) in paragraph (3), by striking ‘‘vet-
eran’s’’ and inserting ‘‘individual’s’’; 
(B) in subsection (b)(1), by striking ‘‘a vet-
eran’’ and inserting ‘‘an individual’’; 
(C) in subsection (c)—
(i) by striking ‘‘a veteran’’ and insert-
ing ‘‘an individual’’; and
119
(ii) by striking ‘‘the veteran’’ each 
place it appears and inserting ‘‘the indi-
vidual’’; and 
(D) in subsection (d), by striking ‘‘a vet-
eran’’ each place it appears and inserting ‘‘an 
individual’’. 
(3) ASSISTANCE FOR INDIVIDUALS TEMPORARILY 
RESIDING IN HOUSING OF FAMILY MEMBER.—Section 
2102A of such title is amended—
(A) by striking ‘‘veteran’’ each place it ap-
pears (other than in subsection (b)) and insert-
ing ‘‘individual’’; 
(B) in subsection (a), by striking ‘‘vet-
eran’s’’ each place it appears and inserting ‘‘in-
dividual’s’’; and 
(C) in subsection (b), by striking ‘‘a vet-
eran’’ each place it appears and inserting ‘‘an 
individual’’. 
(4) FURNISHING
OF
PLANS
AND
SPECIFICA-
TIONS.—Section 2103 of such title is amended by 
striking ‘‘veterans’’ both places it appears and insert-
ing ‘‘individuals’’. 
(5) CONSTRUCTION OF BENEFITS.—Section 2104 
of such title is amended—
120
(A) in subsection (a), by striking ‘‘veteran’’ 
each place it appears and inserting ‘‘indi-
vidual’’; and 
(B) in subsection (b)—
(i) in the first sentence, by striking ‘‘A 
veteran’’ and inserting ‘‘An individual’’; 
(ii) in the second sentence, by striking 
‘‘a veteran’’ and inserting ‘‘an individual’’; 
and 
(iii) by striking ‘‘such veteran’’ each 
place it appears and inserting ‘‘such indi-
vidual’’. 
(6) VETERANS’ MORTGAGE LIFE INSURANCE.—
Section 2106 of such title is amended—
(A) in subsection (a)—
(i) by striking ‘‘any eligible veteran’’ 
and inserting ‘‘any eligible individual’’; 
and 
(ii) by striking ‘‘the veterans’ ’’ and in-
serting ‘‘the individual’s’’; 
(B) in subsection (b), by striking ‘‘an eligi-
ble veteran’’ and inserting ‘‘an eligible indi-
vidual’’; 
(C) in subsection (e), by striking ‘‘an eligi-
ble veteran’’ and inserting ‘‘an individual’’;
121
(D) in subsection (h), by striking ‘‘each vet-
eran’’ and inserting ‘‘each individual’’; 
(E) in subsection (i), by striking ‘‘the vet-
eran’s’’ each place it appears and inserting ‘‘the 
individual’s’’; 
(F) by striking ‘‘the veteran’’ each place it 
appears and inserting ‘‘the individual’’; and 
(G) by striking ‘‘a veteran’’ each place it 
appears and inserting ‘‘an individual’’. 
(7) HEADING AMENDMENTS.—(A) The heading of 
section 2101 of such title is amended to read as fol-
lows: 
‘‘§ 2101. Acquisition and adaptation of housing: eligi-
ble veterans’’. 
(B) The heading of section 2102A of such title is 
amended to read as follows: 
‘‘§ 2102A. Assistance for individuals residing tempo-
rarily in housing owned by a family mem-
ber’’. 
(8) CLERICAL AMENDMENTS.—The table of sec-
tions at the beginning of chapter 21 of such title is 
amended—
(A) by striking the item relating to section 
2101 and inserting the following new item:
‘‘2101. Acquisition and adaptation of housing: eligible veterans.’’;
122
(B) by inserting after the item relating to 
section 2101, as so amended, the following new 
item:
‘‘2101A. Eligibility for benefits and assistance: members of the Armed Forces with 
service-connected disabilities; individuals residing outside the 
United States.’’;
and 
(C) by striking the item relating to section 
2102A and inserting the following new item:
‘‘2102A. Assistance for individuals residing temporarily in housing owned by a 
family member.’’.
SEC. 903. SPECIALLY ADAPTED HOUSING ASSISTANCE FOR 
INDIVIDUALS WITH SEVERE BURN INJURIES. 
Section 2101 of title 38, United States Code, is amend-
ed—
(1) in subsection (a)(2), by adding at the end the 
following new subparagraph: 
‘‘(E) The disability is due to a severe burn in-
jury (as determined pursuant to regulations pre-
scribed by the Secretary).’’; and 
(2) in subsection (b)(2)—
(A) by striking ‘‘either’’ and inserting 
‘‘any’’; and 
(B) by adding at the end the following new 
subparagraph: 
‘‘(C) The disability is due to a severe burn in-
jury (as so determined).’’.
128
considered to be made to a section or other provision of the 
Internal Revenue Code of 1986. 
Subtitle A—Extension of Clean 
Energy Production Incentives 
SEC. 1011. EXTENSION AND MODIFICATION OF RENEWABLE 
ENERGY PRODUCTION TAX CREDIT. 
(a) EXTENSION OF CREDIT.—Each of the following 
provisions of section 45(d) (relating to qualified facilities) 
is amended by striking ‘‘January 1, 2009’’ and inserting 
‘‘January 1, 2010’’: 
(1) Paragraph (1). 
(2) Clauses (i) and (ii) of paragraph (2)(A). 
(3) Clauses (i)(I) and (ii) of paragraph (3)(A). 
(4) Paragraph (4). 
(5) Paragraph (5). 
(6) Paragraph (6). 
(7) Paragraph (7). 
(8) Paragraph (8). 
(9) Subparagraphs (A) and (B) of paragraph 
(9). 
(b) PRODUCTION CREDIT
FOR ELECTRICITY PRO-
DUCED FROM MARINE RENEWABLES.—
(1) IN GENERAL.—Paragraph (1) of section 45(c) 
(relating to resources) is amended by striking ‘‘and’’ 
at the end of subparagraph (G), by striking the period
129
at the end of subparagraph (H) and inserting ‘‘, 
and’’, and by adding at the end the following new 
subparagraph: 
‘‘(I) marine and hydrokinetic renewable en-
ergy.’’. 
(2) MARINE
RENEWABLES.—Subsection (c) of 
section 45 is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(10) MARINE AND HYDROKINETIC RENEWABLE 
ENERGY.—
‘‘(A) IN GENERAL.—The term ‘marine and 
hydrokinetic renewable energy’ means energy de-
rived from—
‘‘(i) waves, tides, and currents in 
oceans, estuaries, and tidal areas, 
‘‘(ii) free flowing water in rivers, lakes, 
and streams, 
‘‘(iii) free flowing water in an irriga-
tion system, canal, or other man-made 
channel, including projects that utilize non-
mechanical structures to accelerate the flow 
of water for electric power production pur-
poses, or 
‘‘(iv) differentials in ocean temperature 
(ocean thermal energy conversion).
130
‘‘(B) EXCEPTIONS.—Such term shall not in-
clude any energy which is derived from any 
source which utilizes a dam, diversionary struc-
ture (except as provided in subparagraph 
(A)(iii)), or impoundment for electric power pro-
duction purposes.’’. 
(3) DEFINITION OF FACILITY.—Subsection (d) of 
section 45 is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(11) MARINE AND HYDROKINETIC RENEWABLE 
ENERGY FACILITIES.—In the case of a facility pro-
ducing electricity from marine and hydrokinetic re-
newable energy, the term ‘qualified facility’ means 
any facility owned by the taxpayer—
‘‘(A) which has a nameplate capacity rat-
ing of at least 150 kilowatts, and 
‘‘(B) which is originally placed in service 
on or after the date of the enactment of this 
paragraph and before January 1, 2010.’’. 
(4) CREDIT RATE.—Subparagraph (A) of section 
45(b)(4) is amended by striking ‘‘or (9)’’ and insert-
ing ‘‘(9), or (11)’’. 
(5) COORDINATION
WITH
SMALL
IRRIGATION 
POWER.—Paragraph (5) of section 45(d), as amended 
by subsection (a), is amended by striking ‘‘January
131
1, 2010’’ and inserting ‘‘the date of the enactment of 
paragraph (11)’’. 
(c) SALES OF ELECTRICITY TO REGULATED PUBLIC 
UTILITIES TREATED
AS SALES
TO UNRELATED PER-
SONS.—Section 45(e)(4) (relating to related persons) is 
amended by adding at the end the following new sentence: 
‘‘A taxpayer shall be treated as selling electricity to an un-
related person if such electricity is sold to a regulated public 
utility (as defined in section 7701(a)(33).’’. 
(d) TRASH FACILITY CLARIFICATION.—Paragraph (7) 
of section 45(d) is amended—
(1) by striking ‘‘facility which burns’’ and in-
serting ‘‘facility (other than a facility described in 
paragraph (6)) which uses’’, and 
(2) by striking ‘‘COMBUSTION’’. 
(e) EFFECTIVE DATES.—
(1) EXTENSION.—The amendments made by sub-
section (a) shall apply to property originally placed 
in service after December 31, 2008. 
(2) MODIFICATIONS.—The amendments made by 
subsections (b) and (c) shall apply to electricity pro-
duced and sold after the date of the enactment of this 
Act, in taxable years ending after such date. 
(3) 
TRASH
FACILITY
CLARIFICATION.—The 
amendments made by subsection (d) shall apply to
132
electricity produced and sold before, on, or after De-
cember 31, 2007. 
SEC. 1012. EXTENSION AND MODIFICATION OF SOLAR EN-
ERGY AND FUEL CELL INVESTMENT TAX 
CREDIT. 
(a) EXTENSION OF CREDIT.—
(1) SOLAR
ENERGY
PROPERTY.—Paragraphs 
(2)(A)(i)(II) and (3)(A)(ii) of section 48(a) (relating 
to energy credit) are each amended by striking ‘‘Jan-
uary 1, 2009’’ and inserting ‘‘January 1, 2017’’. 
(2) FUEL CELL PROPERTY.—Subparagraph (E) 
of section 48(c)(1) (relating to qualified fuel cell prop-
erty) is amended by striking ‘‘December 31, 2008’’ 
and inserting ‘‘December 31, 2017’’. 
(3) QUALIFIED MICROTURBINE PROPERTY.—Sub-
paragraph (E) of section 48(c)(2) (relating to quali-
fied microturbine property) is amended by striking 
‘‘December 31, 2008’’ and inserting ‘‘December 31, 
2017’’. 
(b) ALLOWANCE OF ENERGY CREDIT AGAINST ALTER-
NATIVE MINIMUM TAX.—Subparagraph (B) of section 
38(c)(4) (relating to specified credits) is amended by strik-
ing ‘‘and’’ at the end of clause (iii), by striking the period 
at the end of clause (iv) and inserting ‘‘, and’’, and by add-
ing at the end the following new clause:
133
‘‘(v) the credit determined under sec-
tion 46 to the extent that such credit is at-
tributable to the energy credit determined 
under section 48.’’. 
(c) REPEAL OF DOLLAR PER KILOWATT LIMITATION 
FOR FUEL CELL PROPERTY.—
(1) IN GENERAL.—Section 48(c)(1) (relating to 
qualified fuel cell), as amended by subsection (a)(2), 
is amended by striking subparagraph (B) and by re-
designating subparagraphs (C), (D), and (E) as sub-
paragraphs (B), (C), and (D), respectively. 
(2) CONFORMING AMENDMENT.—Section 48(a)(1) 
is amended by striking ‘‘paragraphs (1)(B) and 
(2)(B) of subsection (c)’’ and inserting ‘‘subsection 
(c)(2)(B)’’. 
(d) PUBLIC ELECTRIC UTILITY PROPERTY TAKEN 
INTO ACCOUNT.—
(1) IN
GENERAL.—Paragraph (3) of section 
48(a) is amended by striking the second sentence 
thereof. 
(2) CONFORMING AMENDMENTS.—
(A) Paragraph (1) of section 48(c), as 
amended by this section, is amended by striking 
subparagraph (C) and redesignating subpara-
graph (D) as subparagraph (C).
134
(B) Paragraph (2) of section 48(c), as 
amended by subsection (a)(3), is amended by 
striking subparagraph (D) and redesignating 
subparagraph (E) as subparagraph (D). 
(e) EFFECTIVE DATES.—
(1) EXTENSION.—The amendments made by sub-
section (a) shall take effect on the date of the enact-
ment of this Act. 
(2) ALLOWANCE AGAINST ALTERNATIVE MINIMUM 
TAX.—The amendments made by subsection (b) shall 
apply to credits determined under section 46 of the 
Internal Revenue Code of 1986 in taxable years begin-
ning after the date of the enactment of this Act and 
to carrybacks of such credits. 
(3) FUEL CELL PROPERTY AND PUBLIC ELECTRIC 
UTILITY PROPERTY.—The amendments made by sub-
sections (c) and (d) 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).
135
SEC. 1013. EXTENSION AND MODIFICATION OF RESIDEN-
TIAL ENERGY EFFICIENT PROPERTY CREDIT. 
(a) EXTENSION.—Section 25D(g) (relating to termi-
nation) is amended by striking ‘‘December 31, 2008’’ and 
inserting ‘‘December 31, 2009’’. 
(b) NO DOLLAR LIMITATION FOR CREDIT FOR SOLAR 
ELECTRIC PROPERTY.—
(1) IN GENERAL.—Section 25D(b)(1) (relating to 
maximum credit) is amended by striking subpara-
graph (A) and by redesignating subparagraphs (B) 
and (C) as subparagraphs (A) and (B), respectively. 
(2) 
CONFORMING
AMENDMENTS.—Section 
25D(e)(4) is amended—
(A) by striking clause (i) in subparagraph 
(A), 
(B) by redesignating clauses (ii) and (iii) 
in subparagraph (A) as clauses (i) and (ii), re-
spectively, and 
(C) by striking ‘‘, (2),’’ in subparagraph 
(C). 
(c) 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.—
136
‘‘(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.—
‘‘(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.
137
‘‘(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’’. 
(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’’. 
(d) EFFECTIVE DATE.—
(1) IN
GENERAL.—The amendments made by 
this section shall apply to taxable years beginning 
after December 31, 2007. 
(2) APPLICATION
OF
EGTRRA
SUNSET.—The 
amendments made by subparagraphs (A) and (B) of
140
SEC. 1015. EXTENSION OF SPECIAL RULE TO IMPLEMENT 
FERC RESTRUCTURING POLICY. 
(a) QUALIFYING ELECTRIC TRANSMISSION TRANS-
ACTION.—
(1) IN
GENERAL.—Section 451(i)(3) (defining 
qualifying 
electric 
transmission 
transaction) 
is 
amended by striking ‘‘January 1, 2008’’ and insert-
ing ‘‘January 1, 2010’’. 
(2) EFFECTIVE DATE.—The amendment made by 
this subsection shall apply to transactions after De-
cember 31, 2007. 
(b) INDEPENDENT TRANSMISSION COMPANY.—
(1) IN GENERAL.—Section 451(i)(4)(B)(ii) (de-
fining independent transmission company) is amend-
ed by striking ‘‘December 31, 2007’’ and inserting 
‘‘the date which is 2 years after the date of such 
transaction’’. 
(2) EFFECTIVE DATE.—The amendment made by 
this subsection shall take effect as if included in the 
amendments made by section 909 of the American 
Jobs Creation Act of 2004.
141
Subtitle B—Extension of Incentives 
to Improve Energy Efficiency 
SEC. 1021. EXTENSION AND MODIFICATION OF CREDIT FOR 
ENERGY EFFICIENCY IMPROVEMENTS TO EX-
ISTING HOMES. 
(a) EXTENSION OF CREDIT.—Section 25C(g) (relating 
to termination) is amended by striking ‘‘December 31, 
2007’’ and inserting ‘‘December 31, 2009’’. 
(b) QUALIFIED BIOMASS FUEL PROPERTY.—
(1) IN GENERAL.—Section 25C(d)(3) is amend-
ed—
(A) by striking ‘‘and’’ at the end of sub-
paragraph (D), 
(B) by striking the period at the end of sub-
paragraph (E) and inserting ‘‘, and’’, and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(F) a stove which uses the burning of bio-
mass fuel to heat a dwelling unit located in the 
United States and used as a residence by the 
taxpayer, or to heat water for use in such a 
dwelling unit, and which has a thermal effi-
ciency rating of at least 75 percent.’’.
142
(2) BIOMASS FUEL.—Section 25C(d) (relating to 
residential energy property expenditures) is amended 
by adding at the end the following new paragraph: 
‘‘(6) BIOMASS FUEL.—The term ‘biomass fuel’ 
means any plant-derived fuel available on a renew-
able or recurring basis, including agricultural crops 
and trees, wood and wood waste and residues (includ-
ing wood pellets), plants (including aquatic plants), 
grasses, residues, and fibers.’’. 
(c) MODIFICATIONS OF STANDARDS FOR ENERGY-EF-
FICIENT BUILDING PROPERTY.—
(1) ELECTRIC HEAT PUMPS.—Subparagraph (B) 
of section 25C(d)(3) is amended to read as follows: 
‘‘(A) an electric heat pump which achieves 
the highest efficiency tier established by the Con-
sortium for Energy Efficiency, as in effect on 
January 1, 2008.’’. 
(2) 
CENTRAL
AIR
CONDITIONERS.—Section 
25C(d)(3)(D) is amended by striking ‘‘2006’’ and in-
serting ‘‘2008’’. 
(3) WATER
HEATERS.—Subparagraph (E) of 
section 25C(d) is amended to read as follows: 
‘‘(E) a natural gas, propane, or oil water 
heater which has either an energy factor of at
143
least 0.80 or a thermal efficiency of at least 90 
percent.’’. 
(4) OIL FURNACES AND HOT WATER BOILERS.—
Paragraph (4) of section 25C(d) is amended to read 
as follows: 
‘‘(4) QUALIFIED NATURAL GAS, PROPANE, AND 
OIL FURNACES AND HOT WATER BOILERS.—
‘‘(A) QUALIFIED NATURAL GAS FURNACE.—
The term ‘qualified natural gas furnace’ means 
any natural gas furnace which achieves an an-
nual fuel utilization efficiency rate of not less 
than 95. 
‘‘(B) QUALIFIED NATURAL GAS HOT WATER 
BOILER.—The term ‘qualified natural gas hot 
water boiler’ means any natural gas hot water 
boiler which achieves an annual fuel utilization 
efficiency rate of not less than 90. 
‘‘(C) QUALIFIED PROPANE FURNACE.—The 
term ‘qualified propane furnace’ means any pro-
pane furnace which achieves an annual fuel uti-
lization efficiency rate of not less than 95. 
‘‘(D) QUALIFIED
PROPANE
HOT
WATER 
BOILER.—The term ‘qualified propane hot water 
boiler’ means any propane hot water boiler
144
which achieves an annual fuel utilization effi-
ciency rate of not less than 90. 
‘‘(E) QUALIFIED OIL FURNACES.—The term 
‘qualified oil furnace’ means any oil furnace 
which achieves an annual fuel utilization effi-
ciency rate of not less than 90. 
‘‘(F) QUALIFIED OIL HOT WATER BOILER.—
The term ‘qualified oil hot water boiler’ means 
any oil hot water boiler which achieves an an-
nual fuel utilization efficiency rate of not less 
than 90.’’. 
(d) EFFECTIVE DATE.—The amendments made this 
section shall apply to expenditures made after December 31, 
2007. 
SEC. 1022. EXTENSION AND MODIFICATION OF TAX CREDIT 
FOR ENERGY EFFICIENT NEW HOMES. 
(a) EXTENSION OF CREDIT.—Subsection (g) of section 
45L (relating to termination) is amended by striking ‘‘De-
cember 31, 2008’’ and inserting ‘‘December 31, 2010’’. 
(b) ALLOWANCE FOR CONTRACTOR’S PERSONAL RESI-
DENCE.—Subparagraph (B) of section 45L(a)(1) is amend-
ed to read as follows: 
‘‘(B)(i) acquired by a person from such eli-
gible contractor and used by any person as a res-
idence during the taxable year, or