‘‘(A) IN GENERAL.—The term ‘marine and 
hydrokinetic renewable energy’ means energy 
derived 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 
purposes, or 
‘‘(iv) differentials in ocean tempera-
ture (ocean thermal energy conversion). 
‘‘(B) EXCEPTIONS.—Such term shall not 
include 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 
production purposes.’’. 
(3) DEFINITION OF FACILITY.—Subsection (d) 
of section 45 of such Code is amended by adding at 
the end the following new paragraph: 
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‘‘(11) MARINE
AND
HYDROKINETIC
RENEW-
ABLE ENERGY FACILITIES.—In the case of a facility 
producing electricity from marine and hydrokinetic 
renewable 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 sec-
tion 45(b)(4) of such Code is amended by striking 
‘‘or (9)’’ and inserting ‘‘(9), or (11)’’. 
(5) COORDINATION
WITH
SMALL
IRRIGATION 
POWER.—Paragraph (5) of section 45(d) of such 
Code, as amended by subsection (a), is amended by 
striking ‘‘January 1, 2019’’ 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) of such Code (relating to related 
persons) is amended by adding at the end the following 
new sentence: ‘‘A taxpayer shall be treated as selling elec-
tricity to an unrelated person if such electricity is sold to 
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a regulated public utility (as defined in section 
7701(a)(33).’’. 
(d) TRASH FACILITY CLARIFICATION.—Paragraph 
(7) of section 45(d) of such Code 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 
subsection (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 
produced 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 
electricity produced and sold before, on, or after De-
cember 31, 2007. 
SEC. 2. EXTENSION AND MODIFICATION OF SOLAR ENERGY 
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) of the 
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Internal Revenue Code of 1986 (relating to energy 
credit) are each amended by striking ‘‘January 1, 
2009’’ and inserting ‘‘January 1, 2019’’. 
(2) FUEL CELL PROPERTY.—Subparagraph (E) 
of section 48(c)(1) of such Code (relating to quali-
fied fuel cell property) is amended by striking ‘‘De-
cember 31, 2008’’ and inserting ‘‘December 31, 
2018’’. 
(3) QUALIFIED
MICROTURBINE
PROPERTY.— 
Subparagraph (E) of section 48(c)(2) of such Code 
(relating to qualified microturbine property) is 
amended by striking ‘‘December 31, 2008’’ and in-
serting ‘‘December 31, 2018’’. 
(b) ALLOWANCE OF ENERGY CREDIT AGAINST AL-
TERNATIVE MINIMUM TAX.—Subparagraph (B) of section 
38(c)(4) of such Code (relating to specified credits) is 
amended by striking ‘‘and’’ at the end of clause (iii), by 
striking the period at the end of clause (iv) and inserting 
‘‘, and’’, and by adding at the end the following new 
clause: 
‘‘(v) the credit determined under section 46 to the 
extent that such credit is attributable to the energy credit 
determined under section 48.’’. 
(c) REPEAL OF DOLLAR PER KILOWATT LIMITATION 
FOR FUEL CELL PROPERTY.— 
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(1) IN
GENERAL.—Section 48(c)(1) of such 
Code (relating to qualified fuel cell), as amended by 
subsection (a)(2), is amended by striking subpara-
graph (B) and by redesignating subparagraphs (C), 
(D), and (E) as subparagraphs (B), (C), and (D), 
respectively. 
(2) 
CONFORMING
AMENDMENT.—Section 
48(a)(1) of such Code is amended by striking ‘‘para-
graphs (1)(B) and (2)(B) of subsection (c)’’ and in-
serting ‘‘subsection (c)(2)(B)’’. 
(d) PUBLIC ELECTRIC UTILITY PROPERTY TAKEN 
INTO ACCOUNT.— 
(1) IN
GENERAL.—Paragraph (3) of section 
48(a) of such Code is amended by striking the sec-
ond sentence thereof. 
(2) CONFORMING AMENDMENTS.— 
(A) Paragraph (1) of section 48(c) of such 
Code, as amended by this section, is amended 
by striking subparagraph (C) and redesignating 
subparagraph (D) as subparagraph (C). 
(B) Paragraph (2) of section 48(c) of such 
Code, as amended by subsection (a)(3), is 
amended by striking subparagraph (D) and re-
designating subparagraph (E) as subparagraph 
(D). 
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(e) EFFECTIVE DATES.— 
(1) EXTENSION.—The amendments made by 
subsection (a) shall take effect on the date of the en-
actment of this Act. 
(2) ALLOWANCE AGAINST ALTERNATIVE MIN-
IMUM 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 beginning after the date of the enactment of 
this Act and to carrybacks of such credits. 
(3) FUEL CELL PROPERTY AND PUBLIC ELEC-
TRIC UTILITY PROPERTY.—The amendments made 
by subsections (c) and (d) shall apply to periods 
after the date of the enactment of this Act, in tax-
able years ending after such date, under rules simi-
lar to the rules of section 48(m) of the Internal Rev-
enue Code of 1986 (as in effect on the day before 
the date of the enactment of the Revenue Reconcili-
ation Act of 1990). 
SEC. 3. EXTENSION AND MODIFICATION OF RESIDENTIAL 
ENERGY EFFICIENT PROPERTY CREDIT. 
(a) EXTENSION.—Subsection (g) of section 25D of 
the Internal Revenue Code of 1986 (relating to termi-
nation) is amended by striking ‘‘December 31, 2008’’ and 
inserting ‘‘December 31, 2018’’. 
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(b) NO DOLLAR LIMITATION
FOR CREDIT
FOR 
SOLAR ELECTRIC PROPERTY.— 
(1) IN GENERAL.—Section 25D(b)(1) of such 
Code (relating to maximum credit) is amended by 
striking subparagraph (A) and by redesignating sub-
paragraphs (B) and (C) as subparagraphs (A) and 
(B), respectively. 
(2) 
CONFORMING
AMENDMENTS.—Section 
25D(e)(4) of such Code 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 of such Code is amended to read as follows: 
‘‘(c) LIMITATION BASED
ON AMOUNT
OF TAX; 
CARRYFORWARD OF UNUSED CREDIT.— 
‘‘(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 
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