Title: Solar and Geothermal Tax Credit Expansion Act
Policy area: Taxation

Summary:
Solar and Geothermal Tax Credit Expansion Act
This bill extends the energy tax credit for certain renewable resources, including solar and geothermal properties, and the credit for residential energy efficient property for five years.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3229 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 3229

To amend the Internal Revenue Code of 1986 to provide for an extension 
             of the energy credit, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 28, 2020

 Ms. Cortez Masto (for herself and Ms. Rosen) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide for an extension 
             of the energy credit, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Solar and Geothermal Tax Credit 
Expansion Act''.

SEC. 2. EXTENSION AND PHASEOUT OF ENERGY CREDIT.

    (a) Extensions.--Section 48 of the Internal Revenue Code of 1986 is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (2)(A)(i)(II), by striking 
                ``January 1, 2022'' and inserting ``January 1, 2027''; 
                and
                    (B) in paragraph (3)(A)--
                            (i) in clause (ii), by striking ``January 
                        1, 2022'' and inserting ``January 1, 2027''; 
                        and
                            (ii) in clause (vii), by striking ``January 
                        1, 2022'' and inserting ``January 1, 2027''; 
                        and
            (2) in subsection (c)--
                    (A) in paragraph (1)(D), by striking ``January 1, 
                2022'' and inserting ``January 1, 2027'';
                    (B) in paragraph (2)(D), by striking ``January 1, 
                2022'' and inserting ``January 1, 2027'';
                    (C) in paragraph (3)(A)(iv), by striking ``January 
                1, 2022'' and inserting ``January 1, 2027''; and
                    (D) in paragraph (4)(C), by striking ``January 1, 
                2022'' and inserting ``January 1, 2027''.
    (b) Phaseouts.--
            (1) Solar energy property.--Section 48(a)(6) of the 
        Internal Revenue Code of 1986 is amended--
                    (A) in subparagraph (A)--
                            (i) by striking ``January 1, 2022, the 
                        energy percentage'' and inserting ``January 1, 
                        2027, the energy percentage'';
                            (ii) in clause (i), by striking ``after 
                        December 31, 2019, and before January 1, 2021'' 
                        and inserting ``after December 31, 2024, and 
                        before January 1, 2026''; and
                            (iii) in clause (ii), by striking ``after 
                        December 31, 2020, and before January 1, 2022'' 
                        and inserting ``after December 31, 2025, and 
                        before January 1, 2027''; and
                    (B) in subparagraph (B), by striking ``begins 
                before January 1, 2022, and which is not placed in 
                service before January 1, 2024'' and inserting ``begins 
                before January 1, 2027, and which is not placed in 
                service before January 1, 2029''.
            (2) Fiber-optic solar, qualified fuel cell, and qualified 
        small wind energy property.--Section 48(a)(7) of such Code is 
        amended--
                    (A) in subparagraph (A)--
                            (i) in clause (i), by striking ``after 
                        December 31, 2019, and before January 1, 2021'' 
                        and inserting ``after December 31, 2024, and 
                        before January 1, 2026''; and
                            (ii) in clause (ii), by striking ``after 
                        December 31, 2020, and before January 1, 2022'' 
                        and inserting ``after December 31, 2025, and 
                        before January 1, 2027''; and
                    (B) in subparagraph (B), by striking ``January 1, 
                2024'' and inserting ``January 1, 2029''.
    (c) Effective Date.--The amendments made by this section shall 
apply to periods after December 31, 2019.

SEC. 3. ENHANCING THE ENERGY CREDIT FOR MICROTURBINES, COMBINED HEAT 
              AND POWER SYSTEMS, GEOTHERMAL HEAT PUMPS, AND GEOTHERMAL 
              ENERGY.

    (a) In General.--Section 48(a)(2)(A)(i) of the Internal Revenue 
Code of 1986 is amended--
            (1) by striking subclause (I);
            (2) by redesignating subclause (II), as amended by section 
        2 of this Act, as subclause (I);
            (3) by inserting after subclause (I), as redesignated by 
        paragraph (2), the following:
                                    ``(II) energy property described in 
                                paragraph (3)(A)(iii) but only with 
                                respect to property the construction of 
                                which begins before January 1, 2027, 
                                and'';
            (4) by amending subclause (III) to read as follows:
                                    ``(III) energy property described 
                                in clause (ii), (iv), (v), (vi), or 
                                (vii) of paragraph (3)(A), and''; and
            (5) by striking subclause (IV).
    (b) Effective Date.--The amendments made by this section shall 
apply to periods after December 31, 2019, 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 AND PHASEOUT OF CREDIT FOR RESIDENTIAL ENERGY 
              EFFICIENT PROPERTY.

    (a) Applicable Percentage.--Subsection (g) of section 25D of the 
Internal Revenue Code of 1986 is amended--
            (1) in paragraph (1), by striking ``January 1, 2020'' and 
        inserting ``January 1, 2025'';
            (2) in paragraph (2), by striking ``after December 31, 
        2019, and before January 1, 2021'' and inserting ``after 
        December 31, 2024, and before January 1, 2026''; and
            (3) in paragraph (3), by striking ``after December 31, 
        2020, and before January 1, 2022'' and inserting ``after 
        December 31, 2025, and before January 1, 2027''.
    (b) Termination.--Subsection (h) of section 25D of such Code is 
amended by striking ``December 31, 2021'' and inserting ``December 31, 
2026''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2019.
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