H. R. 1424—41 
‘‘(iii) EMPLOYEE
REMAINS
COVERED
EXECUTIVE.— 
If an employee is a covered executive with respect 
to an applicable employer for any applicable taxable 
year, such employee shall be treated as a covered 
executive with respect to such employer for all subse-
quent applicable taxable years and for all subsequent 
taxable years in which deferred deduction executive 
remuneration with respect to services performed in 
all such applicable taxable years would (but for this 
paragraph) be deductible. 
‘‘(E) EXECUTIVE REMUNERATION.—For purposes of this 
paragraph, the term ‘executive remuneration’ means the 
applicable employee remuneration of the covered executive, 
as determined under paragraph (4) without regard to sub-
paragraphs (B), (C), and (D) thereof. Such term shall not 
include any deferred deduction executive remuneration 
with respect to services performed in a prior applicable 
taxable year. 
‘‘(F) DEFERRED
DEDUCTION
EXECUTIVE
REMUNERA-
TION.—For purposes of this paragraph, the term ‘deferred 
deduction executive remuneration’ means remuneration 
which would be executive remuneration for services per-
formed in an applicable taxable year but for the fact that 
the deduction under this chapter (determined without 
regard to this paragraph) for such remuneration is allow-
able in a subsequent taxable year. 
‘‘(G) COORDINATION.—Rules similar to the rules of sub-
paragraphs (F) and (G) of paragraph (4) shall apply for 
purposes of this paragraph. 
‘‘(H) REGULATORY AUTHORITY.—The Secretary may pre-
scribe such guidance, rules, or regulations as are necessary 
to carry out the purposes of this paragraph and the Emer-
gency Economic Stabilization Act of 2008, including the 
extent to which this paragraph applies in the case of any 
acquisition, merger, or reorganization of an applicable 
employer.’’. 
(b) GOLDEN PARACHUTE RULE.—Section 280G of the Internal 
Revenue Code of 1986 is amended— 
(1) by redesignating subsection (e) as subsection (f), and 
(2) by inserting after subsection (d) the following new sub-
section: 
‘‘(e) SPECIAL RULE FOR APPLICATION TO EMPLOYERS PARTICI-
PATING IN THE TROUBLED ASSETS RELIEF PROGRAM.— 
‘‘(1) IN GENERAL.—In the case of the severance from employ-
ment of a covered executive of an applicable employer during 
the period during which the authorities under section 101(a) 
of the Emergency Economic Stabilization Act of 2008 are in 
effect (determined under section 120 of such Act), this section 
shall be applied to payments to such executive with the fol-
lowing modifications: 
‘‘(A) Any reference to a disqualified individual (other 
than in subsection (c)) shall be treated as a reference 
to a covered executive. 
‘‘(B) Any reference to a change described in subsection 
(b)(2)(A)(i) shall be treated as a reference to an applicable 
severance from employment of a covered executive, and 
any reference to a payment contingent on such a change
H. R. 1424—42 
shall be treated as a reference to any payment made during 
an applicable taxable year of the employer on account 
of such applicable severance from employment. 
‘‘(C) Any reference to a corporation shall be treated 
as a reference to an applicable employer. 
‘‘(D) The provisions of subsections (b)(2)(C), (b)(4), 
(b)(5), and (d)(5) shall not apply. 
‘‘(2) DEFINITIONS AND SPECIAL RULES.—For purposes of this 
subsection: 
‘‘(A) DEFINITIONS.—Any term used in this subsection 
which is also used in section 162(m)(5) shall have the 
meaning given such term by such section. 
‘‘(B) APPLICABLE SEVERANCE FROM EMPLOYMENT.—The 
term ‘applicable severance from employment’ means any 
severance from employment of a covered executive— 
‘‘(i) by reason of an involuntary termination of 
the executive by the employer, or 
‘‘(ii) in connection with any bankruptcy, liquida-
tion, or receivership of the employer. 
‘‘(C) COORDINATION AND OTHER RULES.— 
‘‘(i) IN GENERAL.—If a payment which is treated 
as a parachute payment by reason of this subsection 
is also a parachute payment determined without regard 
to this subsection, this subsection shall not apply to 
such payment. 
‘‘(ii) REGULATORY AUTHORITY.—The Secretary may 
prescribe such guidance, rules, or regulations as are 
necessary— 
‘‘(I) to carry out the purposes of this subsection 
and the Emergency Economic Stabilization Act of 
2008, including the extent to which this subsection 
applies in the case of any acquisition, merger, or 
reorganization of an applicable employer, 
‘‘(II) to apply this section and section 4999 
in cases where one or more payments with respect 
to any individual are treated as parachute pay-
ments by reason of this subsection, and other pay-
ments with respect to such individual are treated 
as parachute payments under this section without 
regard to this subsection, and 
‘‘(III) to prevent the avoidance of the applica-
tion of this section through the mischaracterization 
of a severance from employment as other than 
an applicable severance from employment.’’. 
(c) EFFECTIVE DATES.— 
(1) IN GENERAL.—The amendment made by subsection (a) 
shall apply to taxable years ending on or after the date of 
the enactment of this Act. 
(2) GOLDEN PARACHUTE RULE.—The amendments made by 
subsection (b) shall apply to payments with respect to 
severances occurring during the period during which the 
authorities under section 101(a) of this Act are in effect (deter-
mined under section 120 of this Act).
H. R. 1424—43 
SEC. 303. EXTENSION OF EXCLUSION OF INCOME FROM DISCHARGE 
OF QUALIFIED PRINCIPAL RESIDENCE INDEBTEDNESS. 
(a) EXTENSION.—Subparagraph (E) of section 108(a)(1) of the 
Internal Revenue Code of 1986 is amended by striking ‘‘January 
1, 2010’’ and inserting ‘‘January 1, 2013’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to discharges of indebtedness occurring on or after 
January 1, 2010. 
DIVISION B—ENERGY IMPROVEMENT 
AND EXTENSION ACT OF 2008 
SEC. 1. SHORT TITLE, ETC. 
(a) SHORT TITLE.—This division may be cited as the ‘‘Energy 
Improvement and Extension Act of 2008’’. 
(b) REFERENCE.—Except as otherwise expressly provided, when-
ever in this division an amendment or repeal is expressed in terms 
of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986. 
(c) TABLE OF CONTENTS.—The table of contents for this division 
is as follows: 
Sec. 1. Short title, etc. 
TITLE I—ENERGY PRODUCTION INCENTIVES 
Subtitle A—Renewable Energy Incentives 
Sec. 101. Renewable energy credit. 
Sec. 102. Production credit for electricity produced from marine renewables. 
Sec. 103. Energy credit. 
Sec. 104. Energy credit for small wind property. 
Sec. 105. Energy credit for geothermal heat pump systems. 
Sec. 106. Credit for residential energy efficient property. 
Sec. 107. New clean renewable energy bonds. 
Sec. 108. Credit for steel industry fuel. 
Sec. 109. Special rule to implement FERC and State electric restructuring policy. 
Subtitle B—Carbon Mitigation and Coal Provisions 
Sec. 111. Expansion and modification of advanced coal project investment credit. 
Sec. 112. Expansion and modification of coal gasification investment credit. 
Sec. 113. Temporary increase in coal excise tax; funding of Black Lung Disability 
Trust Fund. 
Sec. 114. Special rules for refund of the coal excise tax to certain coal producers 
and exporters. 
Sec. 115. Tax credit for carbon dioxide sequestration. 
Sec. 116. Certain income and gains relating to industrial source carbon dioxide 
treated as qualifying income for publicly traded partnerships. 
Sec. 117. Carbon audit of the tax code. 
TITLE II—TRANSPORTATION AND DOMESTIC FUEL SECURITY PROVISIONS 
Sec. 201. Inclusion of cellulosic biofuel in bonus depreciation for biomass ethanol 
plant property. 
Sec. 202. Credits for biodiesel and renewable diesel. 
Sec. 203. Clarification that credits for fuel are designed to provide an incentive for 
United States production. 
Sec. 204. Extension and modification of alternative fuel credit. 
Sec. 205. Credit for new qualified plug-in electric drive motor vehicles. 
Sec. 206. Exclusion from heavy truck tax for idling reduction units and advanced 
insulation. 
Sec. 207. Alternative fuel vehicle refueling property credit. 
Sec. 208. Certain income and gains relating to alcohol fuels and mixtures, biodiesel 
fuels and mixtures, and alternative fuels and mixtures treated as quali-
fying income for publicly traded partnerships.
H. R. 1424—44 
Sec. 209. Extension and modification of election to expense certain refineries. 
Sec. 210. Extension of suspension of taxable income limit on percentage depletion 
for oil and natural gas produced from marginal properties. 
Sec. 211. Transportation fringe benefit to bicycle commuters. 
TITLE III—ENERGY CONSERVATION AND EFFICIENCY PROVISIONS 
Sec. 301. Qualified energy conservation bonds. 
Sec. 302. Credit for nonbusiness energy property. 
Sec. 303. Energy efficient commercial buildings deduction. 
Sec. 304. New energy efficient home credit. 
Sec. 305. Modifications of energy efficient appliance credit for appliances produced 
after 2007. 
Sec. 306. Accelerated recovery period for depreciation of smart meters and smart 
grid systems. 
Sec. 307. Qualified green building and sustainable design projects. 
Sec. 308. Special depreciation allowance for certain reuse and recycling property. 
TITLE IV—REVENUE PROVISIONS 
Sec. 401. Limitation of deduction for income attributable to domestic production of 
oil, gas, or primary products thereof. 
Sec. 402. Elimination of the different treatment of foreign oil and gas extraction in-
come and foreign oil related income for purposes of the foreign tax cred-
it. 
Sec. 403. Broker reporting of customer’s basis in securities transactions. 
Sec. 404. 0.2 percent FUTA surtax. 
Sec. 405. Increase and extension of Oil Spill Liability Trust Fund tax. 
TITLE I—ENERGY PRODUCTION 
INCENTIVES 
Subtitle A—Renewable Energy Incentives 
SEC. 101. RENEWABLE ENERGY CREDIT. 
(a) EXTENSION OF CREDIT.— 
(1) 1-YEAR EXTENSION FOR WIND AND REFINED COAL FACILI-
TIES.—Paragraphs (1) and (8) of section 45(d) are each amended 
by striking ‘‘January 1, 2009’’ and inserting ‘‘January 1, 2010’’. 
(2) 2-YEAR EXTENSION FOR CERTAIN OTHER FACILITIES.— 
Each of the following provisions of section 45(d) is amended 
by striking ‘‘January 1, 2009’’ and inserting ‘‘January 1, 2011’’: 
(A) Clauses (i) and (ii) of paragraph (2)(A). 
(B) Clauses (i)(I) and (ii) of paragraph (3)(A). 
(C) Paragraph (4). 
(D) Paragraph (5). 
(E) Paragraph (6). 
(F) Paragraph (7). 
(G) Subparagraphs (A) and (B) of paragraph (9). 
(b) MODIFICATION OF REFINED COAL AS A QUALIFIED ENERGY 
RESOURCE.— 
(1) ELIMINATION OF INCREASED MARKET VALUE TEST.—Sec-
tion 45(c)(7)(A)(i) (defining refined coal), as amended by section 
108, is amended— 
(A) by striking subclause (IV), 
(B) by adding ‘‘and’’ at the end of subclause (II), and 
(C) by striking ‘‘, and’’ at the end of subclause (III) 
and inserting a period. 
(2) INCREASE IN REQUIRED EMISSION REDUCTION.—Section 
45(c)(7)(B) (defining qualified emission reduction) is amended 
by inserting ‘‘at least 40 percent of the emissions of’’ after 
‘‘nitrogen oxide and’’.
H. R. 1424—45 
(c) TRASH FACILITY CLARIFICATION.—Paragraph (7) of section 
45(d) is amended— 
(1) by striking ‘‘facility which burns’’ and inserting ‘‘facility 
(other than a facility described in paragraph (6)) which uses’’, 
and 
(2) by striking ‘‘COMBUSTION’’. 
(d) EXPANSION OF BIOMASS FACILITIES.— 
(1) OPEN-LOOP BIOMASS FACILITIES.—Paragraph (3) of sec-
tion 45(d) is amended by redesignating subparagraph (B) as 
subparagraph (C) and by inserting after subparagraph (A) the 
following new subparagraph: 
‘‘(B) EXPANSION OF FACILITY.—Such term shall include 
a new unit placed in service after the date of the enactment 
of this subparagraph in connection with a facility described 
in subparagraph (A), but only to the extent of the increased 
amount of electricity produced at the facility by reason 
of such new unit.’’. 
(2) CLOSED-LOOP BIOMASS FACILITIES.—Paragraph (2) of sec-
tion 45(d) is amended by redesignating subparagraph (B) as 
subparagraph (C) and inserting after subparagraph (A) the 
following new subparagraph: 
‘‘(B) EXPANSION OF FACILITY.—Such term shall include 
a new unit placed in service after the date of the enactment 
of this subparagraph in connection with a facility described 
in subparagraph (A)(i), but only to the extent of the 
increased amount of electricity produced at the facility 
by reason of such new unit.’’. 
(e) MODIFICATION OF RULES FOR HYDROPOWER PRODUCTION.— 
Subparagraph (C) of section 45(c)(8) is amended to read as follows: 
‘‘(C) 
NONHYDROELECTRIC
DAM.—For 
purposes 
of 
subparagraph (A), a facility is described in this subpara-
graph if— 
‘‘(i) the hydroelectric project installed on the non-
hydroelectric dam is licensed by the Federal Energy 
Regulatory Commission and meets all other applicable 
environmental, licensing, and regulatory requirements, 
‘‘(ii) the nonhydroelectric dam was placed in service 
before the date of the enactment of this paragraph 
and operated for flood control, navigation, or water 
supply purposes and did not produce hydroelectric 
power on the date of the enactment of this paragraph, 
and 
‘‘(iii) the hydroelectric project is operated so that 
the water surface elevation at any given location and 
time that would have occurred in the absence of the 
hydroelectric project is maintained, subject to any 
license requirements imposed under applicable law 
that change the water surface elevation for the purpose 
of improving environmental quality of the affected 
waterway. 
The Secretary, in consultation with the Federal Energy 
Regulatory Commission, shall certify if a hydroelectric 
project licensed at a nonhydroelectric dam meets the cri-
teria in clause (iii). Nothing in this section shall affect 
the standards under which the Federal Energy Regulatory 
Commission issues licenses for and regulates hydropower 
projects under part I of the Federal Power Act.’’.
H. R. 1424—46 
(f) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as otherwise provided in this sub-
section, the amendments made by this section shall apply to 
property originally placed in service after December 31, 2008. 
(2) REFINED COAL.—The amendments made by subsection 
(b) shall apply to coal produced and sold from facilities placed 
in service after December 31, 2008. 
(3) TRASH
FACILITY
CLARIFICATION.—The amendments 
made by subsection (c) shall apply to electricity produced and 
sold after the date of the enactment of this Act. 
(4) EXPANSION OF BIOMASS FACILITIES.—The amendments 
made by subsection (d) shall apply to property placed in service 
after the date of the enactment of this Act. 
SEC. 102. PRODUCTION CREDIT FOR ELECTRICITY PRODUCED FROM 
MARINE RENEWABLES. 
(a) IN GENERAL.—Paragraph (1) of section 45(c) is amended 
by striking ‘‘and’’ at the end of subparagraph (G), by striking 
the period at the end of subparagraph (H) and inserting ‘‘, and’’, 
and by adding at the end the following new subparagraph: 
‘‘(I) marine and hydrokinetic renewable energy.’’. 
(b) MARINE RENEWABLES.—Subsection (c) of section 45 is 
amended by adding at the end the following new paragraph: 
‘‘(10) MARINE
AND
HYDROKINETIC
RENEWABLE
ENERGY.— 
‘‘(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 irrigation system, 
canal, or other man-made channel, including projects 
that utilize nonmechanical structures to accelerate the 
flow of water for electric power production purposes, 
or 
‘‘(iv) differentials in ocean temperature (ocean 
thermal energy conversion). 
‘‘(B) EXCEPTIONS.—Such term shall not include any 
energy which is derived from any source which utilizes 
a dam, diversionary structure (except as provided in 
subparagraph (A)(iii)), or impoundment for electric power 
production purposes.’’. 
(c) DEFINITION OF FACILITY.—Subsection (d) of section 45 is 
amended by adding at the end the following new paragraph: 
‘‘(11) MARINE
AND
HYDROKINETIC
RENEWABLE
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 rating 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, 2012.’’. 
(d) CREDIT RATE.—Subparagraph (A) of section 45(b)(4) is 
amended by striking ‘‘or (9)’’ and inserting ‘‘(9), or (11)’’. 
(e) COORDINATION WITH SMALL IRRIGATION POWER.—Paragraph 
(5) of section 45(d), as amended by section 101, is amended by
H. R. 1424—47 
striking ‘‘January 1, 2012’’ and inserting ‘‘the date of the enactment 
of paragraph (11)’’. 
(f) EFFECTIVE DATE.—The amendments made by this section 
shall apply to electricity produced and sold after the date of the 
enactment of this Act, in taxable years ending after such date. 
SEC. 103. ENERGY CREDIT. 
(a) EXTENSION OF CREDIT.— 
(1) SOLAR ENERGY PROPERTY.—Paragraphs (2)(A)(i)(II) and 
(3)(A)(ii) of section 48(a) are each amended by striking ‘‘January 
1, 2009’’ and inserting ‘‘January 1, 2017’’. 
(2) FUEL
CELL
PROPERTY.—Subparagraph (E) of section 
48(c)(1) is amended by striking ‘‘December 31, 2008’’ and 
inserting ‘‘December 31, 2016’’. 
(3) MICROTURBINE PROPERTY.—Subparagraph (E) of section 
48(c)(2) is amended by striking ‘‘December 31, 2008’’ and 
inserting ‘‘December 31, 2016’’. 
(b) ALLOWANCE OF ENERGY CREDIT AGAINST ALTERNATIVE MIN-
IMUM TAX.— 
(1) IN GENERAL.—Subparagraph (B) of section 38(c)(4), as 
amended by the Housing Assistance Tax Act of 2008, is 
amended by redesignating clause (vi) as clause (vi) and (vii), 
respectively, and by inserting after clause (iv) 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,’’. 
(2) 
TECHNICAL
AMENDMENT.—Clause 
(vi) 
of 
section 
38(c)(4)(B), as redesignated by paragraph (1), is amended by 
striking ‘‘section 47 to the extent attributable to’’ and inserting 
‘‘section 46 to the extent that such credit is attributable to 
the rehabilitation credit under section 47, but only with respect 
to’’. 
(c) ENERGY CREDIT FOR COMBINED HEAT AND POWER SYSTEM 
PROPERTY.— 
(1) IN GENERAL.—Section 48(a)(3)(A) is amended by striking 
‘‘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) combined heat and power system property,’’. 
(2) COMBINED HEAT AND POWER SYSTEM PROPERTY.—Sub-
section (c) of section 48 is amended— 
(A) by striking ‘‘QUALIFIED FUEL CELL PROPERTY; 
QUALIFIED MICROTURBINE PROPERTY’’ in the heading and 
inserting ‘‘DEFINITIONS’’, and 
(B) by adding at the end the following new paragraph: 
‘‘(3) COMBINED HEAT AND POWER SYSTEM PROPERTY.— 
‘‘(A) COMBINED HEAT AND POWER SYSTEM PROPERTY.— 
The term ‘combined heat and power system property’ means 
property comprising a system— 
‘‘(i) which uses the same energy source for the 
simultaneous or sequential generation of electrical 
power, mechanical shaft power, or both, in combination 
with the generation of steam or other forms of useful 
thermal energy (including heating and cooling applica-
tions), 
‘‘(ii) which produces—
H. R. 1424—48 
‘‘(I) at least 20 percent of its total useful energy 
in the form of thermal energy which is not used 
to produce electrical or mechanical power (or com-
bination thereof), and 
‘‘(II) at least 20 percent of its total useful 
energy in the form of electrical or mechanical 
power (or combination thereof), 
‘‘(iii) the energy efficiency percentage of which 
exceeds 60 percent, and 
‘‘(iv) which is placed in service before January 
1, 2017. 
‘‘(B) LIMITATION.— 
‘‘(i) IN GENERAL.—In the case of combined heat 
and power system property with an electrical capacity 
in excess of the applicable capacity placed in service 
during the taxable year, the credit under subsection 
(a)(1) (determined without regard to this paragraph) 
for such year shall be equal to the amount which 
bears the same ratio to such credit as the applicable 
capacity bears to the capacity of such property. 
‘‘(ii) APPLICABLE CAPACITY.—For purposes of clause 
(i), the term ‘applicable capacity’ means 15 megawatts 
or a mechanical energy capacity of more than 20,000 
horsepower or an equivalent combination of electrical 
and mechanical energy capacities. 
‘‘(iii) MAXIMUM
CAPACITY.—The term ‘combined 
heat and power system property’ shall not include any 
property comprising a system if such system has a 
capacity in excess of 50 megawatts or a mechanical 
energy capacity in excess of 67,000 horsepower or an 
equivalent combination of electrical and mechanical 
energy capacities. 
‘‘(C) SPECIAL RULES.— 
‘‘(i) ENERGY
EFFICIENCY
PERCENTAGE.—For pur-
poses of this paragraph, the energy efficiency percent-
age of a system is the fraction— 
‘‘(I) the numerator of which is the total useful 
electrical, thermal, and mechanical power pro-
duced by the system at normal operating rates, 
and expected to be consumed in its normal applica-
tion, and 
‘‘(II) the denominator of which is the lower 
heating value of the fuel sources for the system. 
‘‘(ii) DETERMINATIONS MADE ON BTU BASIS.—The 
energy efficiency percentage and the percentages under 
subparagraph (A)(ii) shall be determined on a Btu 
basis. 
‘‘(iii) 
INPUT
AND
OUTPUT
PROPERTY
NOT 
INCLUDED.—The term ‘combined heat and power 
system property’ does not include property used to 
transport the energy source to the facility or to dis-
tribute energy produced by the facility. 
‘‘(D) SYSTEMS USING BIOMASS.—If a system is designed 
to use biomass (within the meaning of paragraphs (2) and 
(3) of section 45(c) without regard to the last sentence 
of paragraph (3)(A)) for at least 90 percent of the energy 
source—
H. R. 1424—49 
‘‘(i) subparagraph (A)(iii) shall not apply, but 
‘‘(ii) the amount of credit determined under sub-
section (a) with respect to such system shall not exceed 
the amount which bears the same ratio to such amount 
of credit (determined without regard to this subpara-
graph) as the energy efficiency percentage of such 
system bears to 60 percent.’’. 
(3) CONFORMING AMENDMENT.—Section 48(a)(1) is amended 
by striking ‘‘paragraphs (1)(B) and (2)(B)’’ and inserting ‘‘para-
graphs (1)(B), (2)(B), and (3)(B)’’. 
(d) INCREASE OF CREDIT LIMITATION FOR FUEL CELL PROP-
ERTY.—Subparagraph (B) of section 48(c)(1) is amended by striking 
‘‘$500’’ and inserting ‘‘$1,500’’. 
(e) PUBLIC 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) is amended by 
striking subparagraph (D) and redesignating subparagraph 
(E) as subparagraph (D). 
(B) Paragraph (2) of section 48(c) is amended by 
striking subparagraph (D) and redesignating subparagraph 
(E) as subparagraph (D). 
(f) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as otherwise provided in this sub-
section, the amendments made by this section shall take effect 
on the date of the enactment of this Act. 
(2) ALLOWANCE AGAINST ALTERNATIVE MINIMUM TAX.—The 
amendments made by subsection (b) shall apply to credits deter-
mined 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) COMBINED HEAT AND POWER AND FUEL CELL PROPERTY.— 
The amendments made by subsections (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). 
(4) PUBLIC UTILITY PROPERTY.—The amendments made by 
subsection (e) shall apply to periods after February 13, 2008, 
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). 
SEC. 104. ENERGY CREDIT FOR SMALL WIND PROPERTY. 
(a) IN GENERAL.—Section 48(a)(3)(A), as amended by section 
103, is amended by striking ‘‘or’’ at the end of clause (iv), by 
adding ‘‘or’’ at the end of clause (v), and by inserting after clause 
(v) the following new clause: 
‘‘(vi) qualified small wind energy property,’’. 
(b) 30 PERCENT CREDIT.—Section 48(a)(2)(A)(i) is amended by 
striking ‘‘and’’ at the end of subclause (II) and by inserting after 
subclause (III) the following new subclause: 
‘‘(IV) qualified small wind energy property, 
and’’.
H. R. 1424—50 
(c) QUALIFIED SMALL WIND ENERGY PROPERTY.—Section 48(c), 
as amended by section 103, is amended by adding at the end 
the following new paragraph: 
‘‘(4) QUALIFIED SMALL WIND ENERGY PROPERTY.— 
‘‘(A) IN
GENERAL.—The term ‘qualified small wind 
energy property’ means property which uses a qualifying 
small wind turbine to generate electricity. 
‘‘(B) LIMITATION.—In the case of qualified small wind 
energy property placed in service during the taxable year, 
the credit otherwise determined under subsection (a)(1) 
for such year with respect to all such property of the 
taxpayer shall not exceed $4,000. 
‘‘(C) QUALIFYING
SMALL
WIND
TURBINE.—The term 
‘qualifying small wind turbine’ means a wind turbine which 
has a nameplate capacity of not more than 100 kilowatts. 
‘‘(D) TERMINATION.—The term ‘qualified small wind 
energy property’ shall not include any property for any 
period after December 31, 2016.’’. 
(d) CONFORMING AMENDMENT.—Section 48(a)(1), as amended 
by section 103, is amended by striking ‘‘paragraphs (1)(B), (2)(B), 
and (3)(B)’’ and inserting ‘‘paragraphs (1)(B), (2)(B), (3)(B), and 
(4)(B)’’. 
(e) EFFECTIVE DATE.—The amendments made by this section 
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). 
SEC. 105. ENERGY CREDIT FOR GEOTHERMAL HEAT PUMP SYSTEMS. 
(a) IN GENERAL.—Subparagraph (A) of section 48(a)(3), as 
amended by this Act, is amended by striking ‘‘or’’ at the end of 
clause (v), by inserting ‘‘or’’ at the end of clause (vi), and by 
adding at the end the following new clause: 
‘‘(vii) equipment which uses the ground or ground 
water as a thermal energy source to heat a structure 
or as a thermal energy sink to cool a structure, but 
only with respect to periods ending before January 
1, 2017,’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
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). 
SEC. 106. CREDIT FOR RESIDENTIAL ENERGY EFFICIENT PROPERTY. 
(a) EXTENSION.—Section 25D(g) is amended by striking 
‘‘December 31, 2008’’ and inserting ‘‘December 31, 2016’’. 
(b) REMOVAL OF LIMITATION FOR SOLAR ELECTRIC PROPERTY.— 
(1) IN GENERAL.—Section 25D(b)(1), as amended by sub-
sections (c) and (d), is amended— 
(A) by striking subparagraph (A), and 
(B) by redesignating subparagraphs (B) through (E) 
as subparagraphs (A) through and (D), respectively. 
(2) CONFORMING
AMENDMENT.—Section 25D(e)(4)(A), as 
amended by subsections (c) and (d), is amended— 
(A) by striking clause (i), and
H. R. 1424—51 
(B) by redesignating clauses (ii) through (v) as clauses 
(i) and (iv), respectively. 
(c) CREDIT FOR RESIDENTIAL WIND PROPERTY.— 
(1) IN GENERAL.—Section 25D(a) 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 energy property 
expenditures made by the taxpayer during such year.’’. 
(2) LIMITATION.—Section 25D(b)(1) is amended by striking 
‘‘and’’ at the end of subparagraph (B), by striking the period 
at the end of subparagraph (C) and inserting ‘‘, and’’, and 
by adding at the end the following new subparagraph: 
‘‘(D) $500 with respect to each half kilowatt of capacity 
(not to exceed $4,000) of wind turbines for which qualified 
small wind energy property expenditures are made.’’. 
(3) QUALIFIED
SMALL
WIND
ENERGY
PROPERTY
EXPENDI-
TURES.— 
(A) IN GENERAL.—Section 25D(d) is amended by adding 
at the end the following new paragraph: 
‘‘(4) QUALIFIED SMALL WIND ENERGY PROPERTY EXPENDI-
TURE.—The term ‘qualified small wind energy property expendi-
ture’ means an expenditure for property which uses a wind 
turbine to generate electricity for use in connection with a 
dwelling unit located in the United States and used as a resi-
dence by the taxpayer.’’. 
(B) NO DOUBLE BENEFIT.—Section 45(d)(1) is amended 
by adding at the end the following new sentence: ‘‘Such 
term shall not include any facility with respect to which 
any qualified small wind energy property expenditure (as 
defined in subsection (d)(4) of section 25D) is taken into 
account in determining the credit under such section.’’. 
(4) MAXIMUM
EXPENDITURES
IN
CASE
OF
JOINT
OCCU-
PANCY.—Section 25D(e)(4)(A) is amended by striking ‘‘and’’ at 
the end of clause (ii), by striking the period at the end of 
clause (iii) and inserting ‘‘, and’’, and by adding at the end 
the following new clause: 
‘‘(iv) $1,667 in the case of each half kilowatt of 
capacity (not to exceed $13,333) of wind turbines for 
which qualified small wind energy property expendi-
tures are made.’’. 
(d) CREDIT FOR GEOTHERMAL HEAT PUMP SYSTEMS.— 
(1) IN GENERAL.—Section 25D(a), as amended by subsection 
(c), is amended by striking ‘‘and’’ at the end of paragraph 
(3), by striking the period at the end of paragraph (4) and 
inserting ‘‘, and’’, and by adding at the end the following new 
paragraph: 
‘‘(5) 30 percent of the qualified geothermal heat pump 
property expenditures made by the taxpayer during such year.’’. 
(2) LIMITATION.—Section 25D(b)(1), as amended by sub-
section (c), is amended by striking ‘‘and’’ at the end of subpara-
graph (C), by striking the period at the end of subparagraph 
(D) and inserting ‘‘, and’’, and by adding at the end the following 
new subparagraph: 
‘‘(E) $2,000 with respect to any qualified geothermal 
heat pump property expenditures.’’.
H. R. 1424—52 
(3) QUALIFIED GEOTHERMAL HEAT PUMP PROPERTY EXPENDI-
TURE.—Section 25D(d), as amended by subsection (c), is 
amended by adding at the end the following new paragraph: 
‘‘(5) QUALIFIED GEOTHERMAL HEAT PUMP PROPERTY EXPENDI-
TURE.— 
‘‘(A) IN GENERAL.—The term ‘qualified geothermal heat 
pump property expenditure’ means an expenditure for 
qualified geothermal heat pump property installed on or 
in connection with a dwelling unit located in the United 
States and used as a residence by the taxpayer. 
‘‘(B) QUALIFIED GEOTHERMAL HEAT PUMP PROPERTY.— 
The term ‘qualified geothermal heat pump property’ means 
any equipment which— 
‘‘(i) uses the ground or ground water as a thermal 
energy source to heat the dwelling unit referred to 
in subparagraph (A) or as a thermal energy sink to 
cool such dwelling unit, and 
‘‘(ii) meets the requirements of the Energy Star 
program which are in effect at the time that the 
expenditure for such equipment is made.’’. 
(4) MAXIMUM
EXPENDITURES
IN
CASE
OF
JOINT
OCCU-
PANCY.—Section 25D(e)(4)(A), as amended by subsection (c), 
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) $6,667 in the case of any qualified geothermal 
heat pump property expenditures.’’. 
(e) CREDIT ALLOWED AGAINST ALTERNATIVE MINIMUM 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.— 
‘‘(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 PERSONAL 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) exceeds 
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. 
‘‘(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 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