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Bill
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Solar and Geothermal Tax Credit Expansion Act

S. 3229 · 116th Congress · Jan 28, 2020 · Lineage

A BILL

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

1. Short title

This Act may be cited as the “Solar and Geothermal Tax Credit Expansion Act”.

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.

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”

(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).

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.