§ 48. Energy credit
(a)
Energy credit
(2)
Energy percentage
(3)
Energy property
For purposes of this subpart, the term “energy property” means any property—
(A)
which is—
(i)
equipment which uses solar energy to generate electricity, to heat or cool (or provide hot water for use in) a structure, or to provide solar process heat, excepting property used to generate energy for the purposes of heating a swimming pool,
(ii)
equipment which uses solar energy to illuminate the inside of a structure using fiber-optic distributed sunlight but only with respect to periods ending before January 1, 2017,
(D)
which meets the performance and quality standards (if any) which—
(i)
have been prescribed by the Secretary by regulations (after consultation with the Secretary of Energy), and
Such term shall not include any property which is part of a facility the production from which is allowed as a credit under section
45 for the taxable year or any prior taxable year.
(4)
Special rule for property financed by subsidized energy financing or industrial development bonds
(A)
Reduction of basis
For purposes of applying the energy percentage to any property, if such property is financed in whole or in part by—
(ii)
the proceeds of a private activity bond (within the meaning of section
141) the interest on which is exempt from tax under section
103,
the amount taken into account as the basis of such property shall not exceed the amount which (but for this subparagraph) would be so taken into account multiplied by the fraction determined under subparagraph (B).
(B)
Determination of fraction
For purposes of subparagraph (A), the fraction determined under this subparagraph is 1 reduced by a fraction—
(5)
Election to treat qualified facilities as energy property
(A)
In general
In the case of any qualified property which is part of a qualified investment credit facility—
(B)
Denial of production credit
No credit shall be allowed under section
45 for any taxable year with respect to any qualified investment credit facility.
(C)
Qualified investment credit facility
For purposes of this paragraph, the term “qualified investment credit facility” means any of the following facilities if no credit has been allowed under section
45 with respect to such facility and the taxpayer makes an irrevocable election to have this paragraph apply to such facility:
(b)
Certain progress expenditure rules made applicable
Rules similar to the rules of subsections (c)(4) and (d) of section
46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of subsection (a).
(c)
Definitions
For purposes of this section—
(1)
Qualified fuel cell property
(A)
In general
The term “qualified fuel cell property” means a fuel cell power plant which—
(B)
Limitation
In the case of qualified fuel cell property placed in service during the taxable year, the credit otherwise determined under subsection (a) for such year with respect to such property shall not exceed an amount equal to $1,500 for each 0.5 kilowatt of capacity of such property.
(2)
Qualified microturbine property
(A)
In general
The term “qualified microturbine property” means a stationary microturbine power plant which—
(B)
Limitation
In the case of qualified microturbine property placed in service during the taxable year, the credit otherwise determined under subsection (a) for such year with respect to such property shall not exceed an amount equal [2] $200 for each kilowatt of capacity of such property.
(C)
Stationary microturbine power plant
The term “stationary microturbine power plant” means an integrated system comprised of a gas turbine engine, a combustor, a recuperator or regenerator, a generator or alternator, and associated balance of plant components which converts a fuel into electricity and thermal energy. Such term also includes all secondary components located between the existing infrastructure for fuel delivery and the existing infrastructure for power distribution, including equipment and controls for meeting relevant power standards, such as voltage, frequency, and power factors.
(3)
Combined heat and power system property
(A)
Combined heat and power system property
The term “combined heat and power system property” means property comprising a system—
(i)
which uses the same energy source for the simultaneous or sequential generation of electrical power, mechanical shaft power, or both, in combination with the generation of steam or other forms of useful thermal energy (including heating and cooling applications),
(B)
Limitation
(i)
In general
In the case of combined heat and power system property with an electrical capacity in excess of the applicable capacity placed in service during the taxable year, the credit under subsection (a)(1) (determined without regard to this paragraph) for such year shall be equal to the amount which bears the same ratio to such credit as the applicable capacity bears to the capacity of such property.
(ii)
Applicable capacity
For purposes of clause (i), the term “applicable capacity” means 15 megawatts or a mechanical energy capacity of more than 20,000 horsepower or an equivalent combination of electrical and mechanical energy capacities.
(iii)
Maximum capacity
The term “combined heat and power system property” shall not include any property comprising a system if such system has a capacity in excess of 50 megawatts or a mechanical energy capacity in excess of 67,000 horsepower or an equivalent combination of electrical and mechanical energy capacities.
(C)
Special rules
(i)
Energy efficiency percentage
For purposes of this paragraph, the energy efficiency percentage of a system is the fraction—
(4)
Qualified small wind energy property
(A)
In general
The term “qualified small wind energy property” means property which uses a qualifying small wind turbine to generate electricity.
(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
[1] See References in Text note below.
[2] So in original. Probably should be followed by “to”.
[3] So in original. The word “shall” probably should not appear.