I 
110TH CONGRESS 
1ST SESSION H. R. 1596 
To amend the Internal Revenue Code of 1986 to provide and extend tax 
incentives for renewable energy and conservation. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 20, 2007 
Mr. FERGUSON (for himself, Mr. KUHL of New York, Mr. REICHERT, Mr. 
BURTON of Indiana, and Ms. GINNY BROWN-WAITE of Florida) intro-
duced 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 
and extend tax incentives for renewable energy and con-
servation. 
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 ‘‘Clean and Green Re-
newable Energy Tax Credit Act of 2007’’. 
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SEC. 2. EXTENSION AND MODIFICATION OF INVESTMENT 
TAX CREDIT WITH RESPECT TO SOLAR EN-
ERGY PROPERTY AND QUALIFIED FUEL CELL 
PROPERTY. 
(a) 
SOLAR
ENERGY
PROPERTY.—Paragraphs 
(2)(A)(i)(II) and (3)(A)(ii) of section 48(a) of the Internal 
Revenue Code of 1986 are each amended by striking 
‘‘2009’’ and inserting ‘‘2031’’. 
(b) ELIGIBLE FUEL CELL PROPERTY.—Paragraph 
(1)(E) of section 48(c) of such Code is amended by strik-
ing ‘‘2008’’ and inserting ‘‘2030’’. 
(c) MODIFICATION OF ENERGY PERCENTAGE.— 
(1) 
IN
GENERAL.—Clause 
(i) 
of 
section 
48(a)(2)(A) of such Code is amended by striking 
‘‘30 percent’’ and inserting ‘‘the applicable percent-
age’’. 
(2) APPLICABLE PERCENTAGE.—Paragraph (2) 
of section 48(a) of such Code is amended by adding 
at the end the following new subparagraph: 
‘‘(C) 
APPLICABLE
PERCENTAGE.—For 
purposes of this paragraph, the term ‘applicable 
percentage’ means— 
‘‘(i) 30 percent in the case of any tax-
able year beginning after December 31, 
2006, and before January 1, 2016, 
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‘‘(ii) 25 percent in the case of any 
taxable year beginning after December 31, 
2015, and before January 1, 2022, and 
‘‘(iii) 20 percent in the case of any 
taxable year beginning after December 31, 
2021.’’. 
(d) ENERGY PROPERTY TO INCLUDE EXCESS EN-
ERGY
STORAGE
DEVICE.—Clause 
(i) 
of 
section 
48(a)(3)(A) of such Code is amended to read as follows: 
‘‘(i) equipment which uses solar en-
ergy to generate electricity, to heat or cool 
(or provide hot water for use in) a struc-
ture, or to provide solar process heat, or 
advanced energy storage systems installed 
as an integrated component of the fore-
going, excepting property used to generate 
energy for purposes of heating a swimming 
pool,’’. 
(e) SOLAR LIGHTING EQUIPMENT TO INCLUDE 
SOLAR HYBRID LIGHTING SYSTEMS.—Clause (ii) of sec-
tion 48(a)(3)(A) of such Code is amended to read as fol-
lows: 
‘‘(ii) equipment which uses solar en-
ergy to illuminate the inside of a structure 
using fiber-optic distributed sunlight but 
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only with respect to periods ending before 
January 1, 2031,’’. 
(f) MODIFICATIONS.— 
(1) SOLAR PHOTOVOLTAIC ENERGY PROPERTY 
CREDIT DETERMINED SOLELY BY KILOWATT CAPAC-
ITY.— 
(A) IN GENERAL.—Subsection (a) of sec-
tion 48 of such Code is amended by redesig-
nating paragraph (4) as paragraph (5) and by 
inserting after paragraph (3) the following new 
paragraph: 
‘‘(4) SPECIAL RULE FOR ENERGY CREDIT FOR 
SOLAR PHOTOVOLTAIC ENERGY PROPERTY.— 
‘‘(A) IN GENERAL.—For purposes of sec-
tion 46, the energy credit for any taxable year 
for solar photovoltaic energy property described 
in paragraph (3)(A)(i) which is used to gen-
erate electricity and which is placed in service 
during the taxable year is $1,500 with respect 
to each half kilowatt of capacity of such prop-
erty. Paragraph (2)(A)(ii) shall not apply to 
property to which the preceding sentence ap-
plies. 
‘‘(B) APPLICATION OF SPECIAL RULES FOR 
REHABILITATED OR SUBSIDIZED PROPERTY.— 
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Rules similar to the rules of paragraphs (2)(B) 
and (5) shall apply to property to which this 
paragraph applies.’’. 
(B) 
CONFORMING
AMENDMENT.—Sub-
clause (II) of section 48(a)(2)(A)(i) of such 
Code is amended by striking ‘‘described in 
paragraph (3)(A)(i)’’ and inserting ‘‘which is 
described in paragraph (3)(A)(i) and to which 
paragraph (4) does not apply’’. 
(g) CREDIT ALLOWED AGAINST THE ALTERNATIVE 
MINIMUM TAX.—Section 38(c)(4)(B) of such Code (defin-
ing specified credits) is amended by striking the period 
at the end of clause (ii)(II) and inserting ‘‘, and’’, and 
by adding at the end the following new clause: 
‘‘(iii) the portion of the investment 
credit which is attributable to the energy 
credit determined under section 48.’’. 
(h) EFFECTIVE DATES.—The amendments made by 
this section shall apply to property placed in service in 
taxable years beginning after December 31, 2006. 
SEC. 3. EXTENSION AND MODIFICATION OF CREDIT FOR 
RESIDENTIAL 
ENERGY 
EFFICIENT 
PROP-
ERTY. 
(a) EXTENSION.—Subsection (g) of section 25D of 
the Internal Revenue Code of 1986 (relating to termi-
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nation) is amended by striking ‘‘2009’’ and inserting 
‘‘2016’’. 
(b) SOLAR ELECTRIC PROPERTY.—Paragraph (1) of 
section 25D(a) of such Code (relating to allowance of cred-
it) is amended by striking ‘‘30 percent of’’. 
(c) MODIFICATION OF MAXIMUM CREDIT.—Subpara-
graph (A) of section 25D(b)(1) of such Code is amended 
to read as follows: 
‘‘(A) $1,500 with respect to each half kilo-
watt of installed capacity of property described 
in subsection (d)(2) for which qualified solar 
electric property expenditures are made,’’. 
(d) DEFINITION
OF
QUALIFIED
SOLAR
WATER 
HEATING PROPERTY EXPENDITURE.—Paragraph (1) of 
section 25D(d) of such Code is amended by striking ‘‘to 
heat water for use in’’ and inserting ‘‘to heat or cool (or 
provide hot water for use in)’’. 
(e) DEFINITION
OF
QUALIFIED
PHOTOVOLTAIC 
PROPERTY EXPENDITURE.—Paragraph (2) of section 
25D(d) of such Code is amended by inserting ‘‘, including 
advanced energy storage systems installed as an inte-
grated component of the foregoing’’ after ‘‘taxpayer’’. 
(f) CREDIT ALLOWED AGAINST ALTERNATIVE MIN-
IMUM TAX.— 
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(1) IN GENERAL.—Section 25D(b) of such Code 
(as amended by subsection (b)) is amended by add-
ing at the end the following new paragraph: 
‘‘(3) CREDIT ALLOWED AGAINST ALTERNATIVE 
MINIMUM TAX.—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 im-
posed by section 55, over 
‘‘(B) the sum of the credits allowable 
under subpart A of part IV of subchapter A 
(other than this section) and section 27 for the 
taxable year.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Subsection (c) of section 25D of such 
Code is amended to read as follows: 
‘‘(c) CARRYFORWARD OF UNUSED CREDIT.—If the 
credit allowable under subsection (a) for any taxable year 
exceeds the limitation imposed by subsection (b)(3) for 
such taxable year, such excess shall be carried to the suc-
ceeding taxable year and added to the credit allowable 
under subsection (a) for such succeeding taxable year.’’. 
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(B) Section 23(b)(4)(B) of such Code is 
amended by inserting ‘‘and section 25D’’ after 
‘‘this section’’. 
(C) Section 24(b)(3)(B) of such Code is 
amended by striking ‘‘sections 23 and 25B’’ 
and inserting ‘‘sections 23, 25B, and 25D’’. 
(D) Section 26(a)(1) of such Code is 
amended by striking ‘‘and 25B’’ and inserting 
‘‘25B, and 25D’’. 
(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenditures made in taxable 
years beginning after December 31, 2006. 
SEC. 4. 3-YEAR ACCELERATED DEPRECIATION PERIOD FOR 
SOLAR ENERGY PROPERTY AND FUEL CELL 
PROPERTY. 
(a) IN GENERAL.—Subparagraph (A) of section 
168(e)(3) of the Internal Revenue Code of 1986 is amend-
ed by striking ‘‘and’’ at the end of clause (ii), by striking 
the period at the end of clause (iii) and inserting a comma, 
and by inserting after clause (iii) the following new clause: 
‘‘(iv) any property which is described 
in clause (i) or (ii) of section 48(a)(3)(A) 
(or would be so described if the last sen-
tence of such section did not apply to such 
clause), and 
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‘‘(v) any property which is described 
in clause (iv) of section 48(a)(3)(A).’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
168(e)(3)(B)(vi)(I) of such Code is amended to read as 
follows: 
‘‘(I) would be described in sub-
paragraph (A) of section 48(a)(3) if 
‘wind energy’ were substituted for 
‘solar energy’ in clause (i) thereof and 
the last sentence of such section did 
not apply to such subparagraph,’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2006. 
SEC. 5. 5-YEAR EXTENSION OF CREDIT FOR ELECTRICITY 
PRODUCED FROM CERTAIN RENEWABLE RE-
SOURCES. 
Section 45(d) of the Internal Revenue Code of 1986 
(relating to qualified facilities) is amended by striking 
‘‘2009’’ each place it appears and inserting ‘‘2014’’. 
SEC. 6. INVESTMENT CREDIT FOR SMALL WIND SYSTEMS. 
(a) ENERGY CREDIT FOR BUSINESSES.— 
(1) IN GENERAL.—Subparagraph (A) of section 
48(a)(3) of the Internal Revenue Code of 1986 (re-
lating to energy property) is amended by striking 
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‘‘or’’ at the end of clause (iii), by inserting ‘‘or’’ at 
the end of clause (iv), and by adding at the end the 
following new clause: 
‘‘(v) equipment which uses wind to 
generate electricity if such equipment is 
rated at 100 kW or less,’’. 
(2) 30 PERCENT CREDIT.—Clause (i) of section 
48(a)(2)(A) of such Code is amended by striking 
‘‘and’’ at the end of subclause (II) and by inserting 
after subclause (III) the following new subclause: 
‘‘(IV) energy property described 
in paragraph (3)(A)(v), and’’. 
(b) RESIDENTIAL ENERGY EFFICIENT PROPERTY 
CREDIT FOR INDIVIDUALS.— 
(1) IN
GENERAL.—Subsection (a) of section 
25D of such Code is amended by striking ‘‘and’’ at 
the end of paragraph (2), by striking the period at 
the end of paragraph (3) and inserting ‘‘, and’’, and 
by adding at the end the following new paragraph: 
‘‘(4) 30 percent of the qualified small wind sys-
tem expenditures made by the taxpayer during the 
taxable year.’’. 
(2) MAXIMUM CREDIT.—Paragraph (1) of sec-
tion 25D(b) of such Code is amended by striking 
‘‘and’’ at the end of paragraph (2), by striking the 
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period at the end of paragraph (3) and inserting ‘‘, 
and’’, and by adding at the end the following new 
paragraph: 
‘‘(4) $1,500 with respect to each half kilowatt 
of installed capacity of equipment described in sub-
section (d)(4) for which qualified small wind system 
expenditures are made,’’. 
(3) QUALIFIED SMALL WIND SYSTEM EXPENDI-
TURES.—Subsection (d) of section 25D of such Code 
is amended by adding at the end the following new 
paragraph: 
‘‘(4) QUALIFIED SMALL WIND SYSTEM EXPEND-
ITURES.—The term ‘qualified small wind system ex-
penditures’ means an expenditure for equipment 
which uses wind to generate electricity for use in a 
dwelling unit located in the United States and used 
as a residence by the taxpayers if such equipment is 
rated at 100 kW or less.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2006. 
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SEC. 7. EXTENSION OF CREDIT FOR NONBUSINESS ENERGY 
PROPERTY. 
Subsection (g) of section 25C of the Internal Revenue 
Code of 1986 is amended by striking ‘‘December 31, 
2007’’ and inserting ‘‘December 31, 2009’’. 
Æ 
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