I 
111TH CONGRESS 
1ST SESSION H. R. 4155 
To amend the Internal Revenue Code of 1986 to permit the issuance of 
tax-exempt bonds for financing clean energy improvements under State 
and local property assessed clean energy programs. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 19, 2009 
Mr. SARBANES introduced the following bill; which was referred to the 
Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to permit 
the issuance of tax-exempt bonds for financing clean 
energy improvements under State and local property as-
sessed clean energy programs. 
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 ‘‘Property Assessed 
Clean Energy Tax Benefits Act of 2009’’. 
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SEC. 2. PROPERTY ASSESSED CLEAN ENERGY BONDS. 
(a) IN GENERAL.—Section 144 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(d) 
PROPERTY
ASSESSED
CLEAN
ENERGY 
BONDS.—For purposes of this part— 
‘‘(1) IN
GENERAL.—The term ‘property as-
sessed clean energy bond’ means any bond issued as 
part of an issue 95 percent or more of the net pro-
ceeds of which are to be used to finance clean energy 
improvements under a qualified property assessed 
clean energy program. 
‘‘(2) QUALIFIED PROPERTY ASSESSED CLEAN 
ENERGY
PROGRAM.—For purposes of this sub-
section— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
property assessed clean energy program’ means 
a program of a State or local government (or 
a political subdivision thereof) under which such 
State or local government finances clean energy 
improvements with respect to any building in 
exchange for an assessment with respect to 
such building under an agreement which— 
‘‘(i) is between the State or local gov-
ernment and the owner of the building, 
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as determined in the energy audit de-
scribed in subparagraph (A)(ii). 
‘‘(ii) SPECIAL
RULE
RELATING
TO 
DISTRIBUTED
GENERATION
RENEWABLE 
ENERGY SOURCES.—A distributed genera-
tion renewable energy source shall not be 
treated as a clean energy improvement 
with respect to a building unless energy ef-
ficiency improvements or water efficiency 
improvements are made with respect to 
such building under the program.’’. 
(b) TREATED AS QUALIFIED BOND.—Paragraph (1) 
of section 141(e) of such Code is amended by striking ‘‘or’’ 
at the end of subparagraph (F), by striking the period 
at the end of subparagraph (G) and inserting ‘‘, or’’, and 
by adding at the end the following new subparagraph: 
‘‘(H) a property assessed clean energy 
bond.’’. 
(c) CLERICAL AMENDMENTS.— 
(1) The heading of section 144 of such Code is 
amended by striking ‘‘BOND.’’ and inserting 
‘‘BOND; PROPERTY ASSESSED CLEAN ENERGY 
BOND.’’ 
(2) The item relating to section 144 in the table 
of sections for subpart A of part IV of subchapter 
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B of chapter 1 of such Code is amended to read as 
follows: 
‘‘Sec. 144. Qualified small issuer bond; qualified student loan bond; qualified 
development bond; property assessed clean energy bond.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to bonds issued after the date of 
the enactment of this Act. 
Æ 
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