COORDINATION WITH RENEWABLE ENERGY GRANTS.

SEC. 1104. COORDINATION WITH RENEWABLE ENERGY GRANTS. Section 48 is amended by adding at the end the following new subsection:“(d) Coordination With Department of Treasury Grants.—In the case of any property with respect to which the Secretary makes a grant under section 1603 of the American Recovery and Reinvestment Tax Act of 2009—“(1) Denial of production and investment credits.—No credit shall be determined under this section or section 45 with respect to such property for the taxable year in which such grant is made or any subsequent taxable year.“(2) Recapture of credits for progress expenditures made before grant.—If a credit was determined under this section with respect to such property for any taxable year ending before such grant is made—“(A) the tax imposed under subtitle A on the taxpayer for the taxable year in which such grant is made shall be increased by so much of such credit as was allowed under section 38,“(B) the general business carryforwards under section 39 shall be adjusted so as to recapture the portion of such credit which was not so allowed, and“(C) the amount of such grant shall be determined without regard to any reduction in the basis of such property by reason of such credit.“(3) Treatment of grants.—Any such grant shall—“(A) not be includible in the gross income of the taxpayer, but“(B) shall be taken into account in determining the basis of the property to which such grant relates, except that the basis of such property shall be reduced under section 50(c) in the same manner as a credit allowed under subsection (a).”.123 STAT. 322