EXTENSION AND PHASEOUT OF CREDITS WITH RESPECT TO QUALIFIED SOLAR ELECTRIC PROPERTY AND QUALIFIED SOLAR WATER HEATING PROPERTY.

SEC. 304. EXTENSION AND PHASEOUT OF CREDITS WITH RESPECT TO QUALIFIED SOLAR ELECTRIC PROPERTY AND QUALIFIED SOLAR WATER HEATING PROPERTY. (a) In general.—Section 25D of the Internal Revenue Code of 1986 is amended— (1) in paragraphs (1) and (2) of subsection (a), by striking “30 percent” each place it appears and inserting “the applicable percentage”, (2) in subsection (g), by inserting “(December 31, 2021, in the case of any qualified solar electric property expenditures and qualified solar water heating property expenditures)” before the period at the end, (3) by redesignating subsection (g), as amended by paragraph (2), as subsection (h), and (4) by inserting after subsection (f) the following new subsection: “(g) Applicable Percentage.—For purposes of paragraphs (1) and (2) of subsection (a), the applicable percentage shall be— “(1) in the case of property placed in service after December 31, 2016, and before January 1, 2020, 30 percent, “(2) in the case of property placed in service after December 31, 2019, and before January 1, 2021, 26 percent, and “(3) in the case of property placed in service after December 31, 2020, and before January 1, 2022, 22 percent.” . (b) [26 U.S.C. 25D note] Effective Date.—The amendments made by this section shall take effect on January 1, 2017.