To amend the Internal Revenue Code of 1986 to increase and extend certain renewable energy and energy efficiency incentives.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Renewable Energy Assistance Act of 
2007''.

SEC. 2. INCREASE AND EXTENSION OF CREDIT FOR RESIDENTIAL ENERGY 
              EFFICIENT PROPERTY.

    (a) Extension.--Subsection (g) of section 25D of the Internal 
Revenue Code of 1986 is amended by striking ``December 31, 2008'' and 
inserting ``December 31, 2016''.
    (b) Repeal of Maximum Dollar Limitation.--
            (1) In general.--Subsection (b) of section 25D of such Code 
        is amended to read as follows:
    ``(b) Certification of Solar Water Heating Property.--No credit 
shall be allowed under this section for an item of property described 
in subsection (d)(1) unless such property is certified for performance 
by the non-profit Solar Rating Certification Corporation or a 
comparable entity endorsed by the government of the State in which such 
property is installed.''.
            (2) Conforming amendments.--
                    (A) Subsection (e) of section 25D of such Code is 
                amended by striking paragraph (4) and by redesignating 
                paragraphs (5) through (9) as paragraphs (4) through 
                (8), respectively.
                    (B) Paragraph (1) of section 25C(e) of such Code is 
                amended by striking ``(8), and (9)'' and inserting 
                ``and (8) (and paragraph (4) as in effect before its 
                repeal)''.
    (c) Credit Allowed Against Alternative Minimum 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 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 succeeding 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 to the credit 
                allowable under subsection (a) for such succeeding 
                taxable year.''.
            (2) Conforming amendments.--
                    (A) Section 23(b)(4)(B) of such Code is amended by 
                inserting ``and section 25D'' after ``this section''.
                    (B) Section 24(b)(3)(B) of such Code is amended by 
                striking ``and 25B'' and inserting ``, 25B, and 25D''.
                    (C) Section 25B(g)(2) of such Code is amended by 
                striking ``section 23'' and inserting ``sections 23 and 
                25D''.
                    (D) Section 26(a)(1) of such Code is amended by 
                striking ``and 25B'' and inserting ``25B, and 25D''.
    (d) Effective Dates.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        expenditures made after the date of the enactment of this Act.
            (2) Extension.--The amendment made by subsection (a) shall 
        apply to property placed in service after December 31, 2008.
            (3) Allowance against alternative minimum tax.--
                    (A) In general.--The amendments made by subsection 
                (c) shall apply to taxable years beginning after the 
                date of the enactment of this Act.
                    (B) Application of egtrra sunset.--The amendments 
                made by subparagraphs (A) and (B) of subsection (c)(2) 
                shall be subject to title IX of the Economic Growth and 
                Tax Relief Reconciliation Act of 2001 in the same 
                manner as the provisions of such Act to which such 
                amendments relate.

SEC. 3. EXTENSION AND MODIFICATION OF ENERGY CREDIT.

    (a) Extension of 30 Percent Credit for Solar Energy.--Subclause 
(II) of section 48(a)(2)(A)(i) of the Internal Revenue Code of 1986 is 
amended by striking ``January 1, 2009'' and inserting ``January 1, 
2017''.
    (b) Extension for Qualified Fuel Cells.--Subparagraph (E) of 
section 48(c)(1) of such Code is amended by striking ``December 31, 
2008'' and inserting ``December 31, 2016''.
    (c) Public Electric Utility Property Taken Into Account.--
            (1) In general.--Paragraph (3) of section 48(a) of such 
        Code is amended by striking the second sentence thereof.
            (2) Conforming amendment.--Paragraph (1) of section 48(c) 
        of such Code, after amendment under subsection (b), is amended 
        by striking subparagraph (D) and redesignating subparagraph (E) 
        as subparagraph (D).
            (3) Effective date.--The amendments made by this subsection 
        shall apply to periods after June 20, 2007, 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. 4. 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, 2015''.

SEC. 5. MODIFICATIONS OF ENERGY EFFICIENT APPLIANCE CREDIT FOR 
              APPLIANCES PRODUCED AFTER 2007.

    (a) In General.--Subsection (b) of section 45M of the Internal 
Revenue Code of 1986 is amended to read as follows:
    ``(b) Applicable Amount.--For purposes of subsection (a)--
            ``(1) Dishwashers.--The applicable amount is--
                    ``(A) $45 in the case of a dishwasher which is 
                manufactured in calendar year 2008 or 2009 and which 
                uses no more than 324 kilowatt hours per year and 5.8 
                gallons per cycle, and
                    ``(B) $75 in the case of a dishwasher which is 
                manufactured in calendar year 2008, 2009, or 2010 and 
                which uses no more than 307 kilowatt hours per year and 
                5.0 gallons per cycle (5.5 gallons per cycle for 
                dishwashers designed for greater than 12 place 
                settings).
            ``(2) Clothes washers.--The applicable amount is--
                    ``(A) $75 in the case of a residential top-loading 
                clothes washer manufactured in calendar year 2008 which 
                meets or exceeds a 1.72 modified energy factor and does 
                not exceed a 8.0 water consumption factor,
                    ``(B) $125 in the case of a residential top-loading 
                clothes washer manufactured in calendar year 2008 or 
                2009 which meets or exceeds a 1.8 modified energy 
                factor and does not exceed a 7.5 water consumption 
                factor,
                    ``(C) $150 in the case of a residential or 
                commercial clothes washer manufactured in calendar year 
                2008, 2009 or 2010 which meets or exceeds 2.0 modified 
                energy factor and does not exceed a 6.0 water 
                consumption factor, and
                    ``(D) $250 in the case of a residential or 
                commercial clothes washer manufactured in calendar year 
                2008, 2009, or 2010 which meets or exceeds 2.2 modified 
                energy factor and does not exceed a 4.5 water 
                consumption factor.
            ``(3) Refrigerators.--The applicable amount is--
                    ``(A) $50 in the case of a refrigerator which is 
                manufactured in calendar year 2008, and consumes at 
                least 20 percent but not more than 22.9 percent less 
                kilowatt hours per year than the 2001 energy 
                conservation standards,
                    ``(B) $75 in the case of a refrigerator which is 
                manufactured in calendar year 2008 or 2009, and 
                consumes at least 23 percent but no more than 24.9 
                percent less kilowatt hours per year than the 2001 
                energy conservation standards,
                    ``(C) $100 in the case of a refrigerator which is 
                manufactured in calendar year 2008, 2009 or 2010, and 
                consumes at least 25 percent but not more than 29.9 
                percent less kilowatt hours per year than the 2001 
                energy conservation standards, and
                    ``(D) $200 in the case of a refrigerator 
                manufactured in calendar year 2008, 2009 or 2010 and 
                which consumes at least 30 percent less energy than the 
                2001 energy conservation standards.
            ``(4) Dehumidifiers.--The applicable amount is--
                    ``(A) $15 in the case of a dehumidifier 
                manufactured in calendar year 2008 that has a capacity 
                less than or equal to 45 pints per day and is 7.5 
                percent more efficient than the applicable Department 
                of Energy energy conservation standard effective 
                October 2012, and
                    ``(B) $25 in the case of a dehumidifier 
                manufactured in calendar year 2008 that has a capacity 
                greater than 45 pints per day and is 7.5 percent more 
                efficient than the applicable Department of Energy 
                energy conservation standard effective October 2012.''.
    (b) Eligible Production.--
            (1) Similar treatment for all appliances.--Subsection (c) 
        of section 45M of such Code is amended--
                    (A) by striking paragraph (2),
                    (B) by striking ``(1) In general'' and all that 
                follows through ``the eligible'' and inserting ``The 
                eligible'', and
                    (C) by moving the text of such subsection in line 
                with the subsection heading and redesignating 
                subparagraphs (A) and (B) as paragraphs (1) and (2), 
                respectively.
            (2) Modification of base period.--Paragraph (2) of section 
        45M(c) of such Code, as amended by paragraph (1) of this 
        section, is amended by striking ``3-calendar year'' and 
        inserting ``2-calendar year''.
    (c) Types of Energy Efficient Appliances.--Subsection (d) of 
section 45M of such Code is amended to read as follows:
    ``(d) Types of Energy Efficient Appliance.--For purposes of this 
section, the types of energy efficient appliances are--
            ``(1) dishwashers described in subsection (b)(1),
            ``(2) clothes washers described in subsection (b)(2),
            ``(3) refrigerators described in subsection (b)(3), and
            ``(4) dehumidifiers described in subsection (b)(4).''.
    (d) Aggregate Credit Amount Allowed.--
            (1) Increase in limit.--Paragraph (1) of section 45M(e) of 
        such Code is amended to read as follows:
            ``(1) Aggregate credit amount allowed.--The aggregate 
        amount of credit allowed under subsection (a) with respect to a 
        taxpayer for any taxable year shall not exceed $75,000,000 
        reduced by the amount of the credit allowed under subsection 
        (a) to the taxpayer (or any predecessor) for all prior taxable 
        years beginning after December 31, 2007.''.
            (2) Exception for certain refrigerator and clothes 
        washers.--Paragraph (2) of section 45M(e) of such Code is 
        amended to read as follows:
            ``(2) Amount allowed for certain refrigerators and clothes 
        washers.--Refrigerators described in subsection (b)(3)(D) and 
        clothes washers described in subsection (b)(2)(D) shall not be 
        taken into account under paragraph (1).''.
    (e) Qualified Energy Efficient Appliances.--
            (1) In general.--Paragraph (1) of section 45M(f) of such 
        Code is amended to read as follows:
            ``(1) Qualified energy efficient appliance.--The term 
        `qualified energy efficient appliance' means--
                    ``(A) any dishwasher described in subsection 
                (b)(1),
                    ``(B) any clothes washer described in subsection 
                (b)(2),
                    ``(C) any refrigerator described in subsection 
                (b)(3), and
                    ``(D) any dehumidifier described in subsection 
                (b)(4).''.
            (2) Clothes washer.--Section 45M(f)(3) of such Code is 
        amended by inserting ``commercial'' before ``residential'' the 
        second place it appears.
            (3) Top-loading clothes washer.--Subsection (f) of section 
        45M of such Code is amended by redesignating paragraphs (4), 
        (5), (6), and (7) as paragraphs (5), (6), (7), and (8), 
        respectively, and by inserting after paragraph (3) the 
        following new paragraph:
            ``(4) Top-loading clothes washer.--The term ``top-loading 
        clothes washer'' means a clothes washer which has the clothes 
        container compartment access located on the top of the machine 
        and which operates on a vertical axis.''.
            (4) Dehumidifier.--Subsection (f) of section 45M of such 
        Code, as amended by paragraph (3), is amended by redesignating 
        paragraphs (6), (7), and (8) as paragraphs (7), (8) and (9), 
        respectively, and by inserting after paragraph (5) the 
        following new paragraph:
            ``(6) Dehumidifier.--The term `dehumidifier' means a self-
        contained, electrically operated, and mechanically refrigerated 
        encased assembly consisting of--
                    ``(A) a refrigerated surface that condenses 
                moisture from the atmosphere,
                    ``(B) a refrigerating system, including an electric 
                motor,
                    ``(C) an air-circulating fan, and
                    ``(D) means for collecting or disposing of 
                condensate.''.
            (5) Replacement of energy factor.--Section 45M(f)(7) of 
        such Code, as amended by paragraph (4), is amended to read as 
        follows:
            ``(7) Modified energy factor.--The term `modified energy 
        factor' means the modified energy factor established by the 
        Department of Energy for compliance with the Federal energy 
        conservation standard.''.
            (6) Gallons per cycle; water consumption factor.--Section 
        45M(f) of such Code is amended by adding at the end the 
        following:
            ``(10) Gallons per cycle.--The term `gallons per cycle' 
        means, with respect to a dishwasher, the amount of water, 
        expressed in gallons, required to complete a normal cycle of a 
        dishwasher.
            ``(11) Water consumption factor.--The term `water 
        consumption factor' means, with respect to a clothes washer, 
        the quotient of the total weighted per-cycle water consumption 
        divided by the cubic foot (or liter) capacity of the clothes 
        washer.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to appliances produced after December 31, 2007.

Summary: Renewable Energy Assistance Act of 2007 - Amends the Internal Revenue Code to: (1) eliminate the dollar limitation on the tax credit for residential energy efficiency property expenditures and extend such credit through 2016; (2) extend through 2016 the energy tax credit for solar energy and qualified fuel cell property; (3) allow public electric utility property to qualify for the energy tax credit; (4) extend through 2015 the tax credit for nonbusiness energy property; and (5) modify energy efficient appliance tax credit amounts for appliances (e.g., dishwashers, clothes washers, refrigerators, and dehumidifiers) produced after 2007.