Solar and Geothermal Tax Credit Expansion Act

II 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 Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Solar and Geothermal 4 Tax Credit Expansion Act’’. 5 SEC. 2. EXTENSION AND PHASEOUT OF ENERGY CREDIT. 6 (a) EXTENSIONS.—Section 48 of the Internal Rev- 7 enue Code of 1986 is amended— 8 (1) in subsection (a)— 9 VerDate Sep 11 2014 22:10 Jan 28, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S3229.IS S3229 kjohnson on DSK79L0C42PROD with BILLS 2 •S 3229 IS (A) in paragraph (2)(A)(i)(II), by striking 1 ‘‘January 1, 2022’’ and inserting ‘‘January 1, 2 2027’’; and 3 (B) in paragraph (3)(A)— 4 (i) in clause (ii), by striking ‘‘January 5 1, 2022’’ and inserting ‘‘January 1, 6 2027’’; and 7 (ii) in clause (vii), by striking ‘‘Janu- 8 ary 1, 2022’’ and inserting ‘‘January 1, 9 2027’’; and 10 (2) in subsection (c)— 11 (A) in paragraph (1)(D), by striking ‘‘Jan- 12 uary 1, 2022’’ and inserting ‘‘January 1, 13 2027’’; 14 (B) in paragraph (2)(D), by striking ‘‘Jan- 15 uary 1, 2022’’ and inserting ‘‘January 1, 16 2027’’; 17 (C) in paragraph (3)(A)(iv), by striking 18 ‘‘January 1, 2022’’ and inserting ‘‘January 1, 19 2027’’; and 20 (D) in paragraph (4)(C), by striking ‘‘Jan- 21 uary 1, 2022’’ and inserting ‘‘January 1, 22 2027’’. 23 (b) PHASEOUTS.— 24 VerDate Sep 11 2014 22:10 Jan 28, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3229.IS S3229 kjohnson on DSK79L0C42PROD with BILLS 3 •S 3229 IS (1) SOLAR ENERGY PROPERTY.—Section 1 48(a)(6) of the Internal Revenue Code of 1986 is 2 amended— 3 (A) in subparagraph (A)— 4 (i) by striking ‘‘January 1, 2022, the 5 energy percentage’’ and inserting ‘‘Janu- 6 ary 1, 2027, the energy percentage’’; 7 (ii) in clause (i), by striking ‘‘after 8 December 31, 2019, and before January 1, 9 2021’’ and inserting ‘‘after December 31, 10 2024, and before January 1, 2026’’; and 11 (iii) in clause (ii), by striking ‘‘after 12 December 31, 2020, and before January 1, 13 2022’’ and inserting ‘‘after December 31, 14 2025, and before January 1, 2027’’; and 15 (B) in subparagraph (B), by striking ‘‘be- 16 gins before January 1, 2022, and which is not 17 placed in service before January 1, 2024’’ and 18 inserting ‘‘begins before January 1, 2027, and 19 which is not placed in service before January 1, 20 2029’’. 21 (2) FIBER-OPTIC SOLAR, QUALIFIED FUEL 22 CELL, AND QUALIFIED SMALL WIND ENERGY PROP- 23 ERTY.—Section 48(a)(7) of such Code is amended— 24 (A) in subparagraph (A)— 25 VerDate Sep 11 2014 22:10 Jan 28, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3229.IS S3229 kjohnson on DSK79L0C42PROD with BILLS 4 •S 3229 IS (i) in clause (i), by striking ‘‘after De- 1 cember 31, 2019, and before January 1, 2 2021’’ and inserting ‘‘after December 31, 3 2024, and before January 1, 2026’’; and 4 (ii) in clause (ii), by striking ‘‘after 5 December 31, 2020, and before January 1, 6 2022’’ and inserting ‘‘after December 31, 7 2025, and before January 1, 2027’’; and 8 (B) in subparagraph (B), by striking 9 ‘‘January 1, 2024’’ and inserting ‘‘January 1, 10 2029’’. 11 (c) EFFECTIVE DATE.—The amendments made by 12 this section shall apply to periods after December 31, 13 2019. 14 SEC. 3. ENHANCING THE ENERGY CREDIT FOR MICROTUR- 15 BINES, COMBINED HEAT AND POWER SYS- 16 TEMS, GEOTHERMAL HEAT PUMPS, AND GEO- 17 THERMAL ENERGY. 18 (a) IN GENERAL.—Section 48(a)(2)(A)(i) of the In- 19 ternal Revenue Code of 1986 is amended— 20 (1) by striking subclause (I); 21 (2) by redesignating subclause (II), as amended 22 by section 2 of this Act, as subclause (I); 23 (3) by inserting after subclause (I), as redesig- 24 nated by paragraph (2), the following: 25 VerDate Sep 11 2014 22:10 Jan 28, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S3229.IS S3229 kjohnson on DSK79L0C42PROD with BILLS 5 •S 3229 IS ‘‘(II) energy property described 1 in paragraph (3)(A)(iii) but only with 2 respect to property the construction of 3 which begins before January 1, 2027, 4 and’’; 5 (4) by amending subclause (III) to read as fol- 6 lows: 7 ‘‘(III) energy property described 8 in clause (ii), (iv), (v), (vi), or (vii) of 9 paragraph (3)(A), and’’; and 10 (5) by striking subclause (IV). 11 (b) EFFECTIVE DATE.—The amendments made by 12 this section shall apply to periods after December 31, 13 2019, in taxable years ending after such date, under rules 14 similar to the rules of section 48(m) of the Internal Rev- 15 enue Code of 1986 (as in effect on the day before the date 16 of the enactment of the Revenue Reconciliation Act of 17 1990). 18 SEC. 4. EXTENSION AND PHASEOUT OF CREDIT FOR RESI- 19 DENTIAL ENERGY EFFICIENT PROPERTY. 20 (a) APPLICABLE PERCENTAGE.—Subsection (g) of 21 section 25D of the Internal Revenue Code of 1986 is 22 amended— 23 (1) in paragraph (1), by striking ‘‘January 1, 24 2020’’ and inserting ‘‘January 1, 2025’’; 25 VerDate Sep 11 2014 22:10 Jan 28, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S3229.IS S3229 kjohnson on DSK79L0C42PROD with BILLS 6 •S 3229 IS (2) in paragraph (2), by striking ‘‘after Decem- 1 ber 31, 2019, and before January 1, 2021’’ and in- 2 serting ‘‘after December 31, 2024, and before Janu- 3 ary 1, 2026’’; and 4 (3) in paragraph (3), by striking ‘‘after Decem- 5 ber 31, 2020, and before January 1, 2022’’ and in- 6 serting ‘‘after December 31, 2025, and before Janu- 7 ary 1, 2027’’. 8 (b) TERMINATION.—Subsection (h) of section 25D of 9 such Code is amended by striking ‘‘December 31, 2021’’ 10 and inserting ‘‘December 31, 2026’’. 11 (c) EFFECTIVE DATE.—The amendments made by 12 this section shall apply to property placed in service after 13 December 31, 2019. 14 Æ VerDate Sep 11 2014 22:10 Jan 28, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\S3229.IS S3229 kjohnson on DSK79L0C42PROD with BILLS