CREDIT FOR RESIDENTIAL ENERGY EFFICIENT PROPERTY.

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 subsections (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), and122 STAT. 3815(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 expenditures.—(A) In general.—Section 25D(d) is amended by adding at the end the following new paragraph:“(4) Qualified small wind energy property expenditure.—The term ‘qualified small wind energy property expenditure’ 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 residence 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 occupancy.—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 expenditures 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 subsection (c), is amended by striking “and” at the end of subparagraph (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.”.122 STAT. 3816(3) Qualified geothermal heat pump property expenditure.—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 expenditure.—“(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 occupancy.—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 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 122 STAT. 3817 to the credit allowable under subsection (a) for such succeeding taxable year.”.(2) Conforming amendments.—(A) Section 23(b)(4)(B) is amended by inserting “and section 25D” after “this section”.(B) Section 24(b)(3)(B) is amended by striking “and 25B” and inserting “, 25B, and 25D”.(C) Section 25B(g)(2) is amended by striking “section 23” and inserting “sections 23 and 25D”.(D) Section 26(a)(1) is amended by striking “and 25B” and inserting “25B, and 25D”.(f) Effective Date.—(1) In general.—Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 2007.(2) Solar electric property limitation.—The amendments made by subsection (b) shall apply to taxable years beginning after December 31, 2008.(3) Application of egtrra sunset.—The amendments made by subparagraphs (A) and (B) of subsection (e)(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.