(a)
In General- Section 48(a)(3)(A) (defining energy property) is amended by
striking `or' at the end of clause (i), by adding `or' at the end of clause
(ii), and by inserting after clause (ii) the following new clause:
`(iii)
qualified fuel cell property or qualified microturbine property,'.
(b)
Qualified Fuel Cell Property; Qualified Microturbine Property- Section 48
(relating to energy credit) is amended by adding at the end the following new
subsection:
`(c)
Qualified Fuel Cell Property; Qualified Microturbine Property- For purposes of
this subsection--
`(1)
QUALIFIED FUEL CELL PROPERTY-
`(A)
IN GENERAL- The term `qualified fuel cell property' means a fuel cell power
plant which--
`(i)
has a nameplate capacity of at least 0.5 kilowatt of electricity using an
electrochemical process, and
`(ii)
has an electricity-only generation efficiency greater than 30 percent.
`(B)
LIMITATION- In the case of qualified fuel cell property placed in service
during the taxable year, the credit otherwise determined under paragraph (1)
for such year with respect to such property shall not exceed an amount equal to
$500 for each 0.5 kilowatt of capacity of such property.
`(C)
FUEL CELL POWER PLANT- The term `fuel cell power plant' means an integrated
system comprised of a fuel cell stack assembly and associated balance of plant
components which converts a fuel into electricity using electrochemical means.
`(D)
SPECIAL RULE- The first sentence of the matter in subsection (a)(3) which
follows subparagraph (D) thereof shall not apply to qualified fuel cell
property which is used predominantly in the trade or business of the furnishing
or sale of telephone service, telegraph service by means of domestic telegraph
operations, or other telegraph services (other than international telegraph
services).
`(E)
TERMINATION- The term `qualified fuel cell property' shall not include any
property for any period after December 31, 2007.
`(2)
QUALIFIED MICROTURBINE PROPERTY-
`(A)
IN GENERAL- The term `qualified microturbine property' means a stationary
microturbine power plant which--
`(i)
has a nameplate capacity of less than 2,000 kilowatts, and
`(ii)
has an electricity-only generation efficiency of not less than 26 percent at
International Standard Organization conditions.
`(B)
LIMITATION- In the case of qualified microturbine property placed in service
during the taxable year, the credit otherwise determined under paragraph (1)
for such year with respect to such property shall not exceed an amount equal
$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.
`(D)
SPECIAL RULE- The first sentence of the matter in subsection (a)(3) which
follows subparagraph (D) thereof shall not apply to qualified microturbine
property which is used predominantly in the trade or business of the furnishing
or sale of telephone service, telegraph service by means of domestic telegraph
operations, or other telegraph services (other than international telegraph
services).
`(E)
TERMINATION- The term `qualified microturbine property' shall not include any
property for any period after December 31, 2007.'.
(c)
Energy Percentage- Section 48(a)(2)(A) (relating to energy percentage) is
amended to read as follows:
`(A)
IN GENERAL- The energy percentage is--
`(i)
in the case of qualified fuel cell property, 30 percent, and
`(ii)
in the case of any other energy property, 10 percent.'.
(d)
Conforming Amendment- Section 48(a)(1) is amended by inserting `except as
provided in paragraph (1)(B) or (2)(B) of subsection (d),' before `the energy'.
(e)
Effective Date- The amendments made by this section shall apply to periods
after December 31, 2005, 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).
(a)
Increase in Energy Percentage- Section 48(a)(2)(A) (relating to energy
percentage), as amended by this Act, is amended to read as follows:
`(A)
IN GENERAL- The energy percentage is--
`(i)
30 percent in the case of--
`(I)
qualified fuel cell property,
`(II)
energy property described in paragraph (3)(A)(i) but only with respect to
periods ending before January 1, 2008, and
`(III)
energy property described in paragraph (3)(A)(ii), and
`(ii)
in the case of any energy property to which clause (i) does not apply, 10
percent.'.
(b)
Hybrid Solar Lighting Systems- Subparagraph (A) of section 48(a)(3) is amended
by striking `or' at the end of clause (i), by redesignating clause (ii) as
clause (iii), and by inserting after clause (i) the following new clause:
`(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, 2008, or'.
(c)
Limitation on Use of Solar Energy to Heat Swimming Pools- Clause (i) of section
48(a)(3)(A) is amended by inserting `excepting property used to generate energy
for the purposes of heating a swimming pool,' after `solar process heat,'.
(d)
Effective Date- The amendments made by this section shall apply to periods
after December 31, 2005, 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).