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Sec. 25D. Residential Clean Energy Credit

Editor's Note: Pub. L. 117-169, Sec. 13302, amended Sec. 25D with a delayed effective date as indicated below.
I.R.C. § 25D(a) Allowance Of Credit
In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the applicable percentages of—
I.R.C. § 25D(a)(1)
the qualified solar electric property expenditures,
I.R.C. § 25D(a)(2)
the qualified solar water heating property expenditures,
I.R.C. § 25D(a)(3)
the qualified fuel cell property expenditures,
I.R.C. § 25D(a)(4)
the qualified small wind energy property expenditures,
I.R.C. § 25D(a)(5)
the qualified geothermal heat pump property expenditures, made by the taxpayer during such year, and
Editor's Note: Sec. 25D(a)(6), below, before amendment by Pub. L. 117-169, Sec. 13302(b)(1), is effective for expenditures made before January 1, 2023.
I.R.C. § 25D(a)(6)
the qualified biomass fuel property expenditures, and
Editor's Note: Sec. 25D(a)(6), below, after amendment by Pub. L. 117-169, Sec. 13302(b)(1), is effective for expenditures made after December 31, 2022.
I.R.C. § 25D(a)(6)
the qualified battery storage technology expenditures,
I.R.C. § 25D(b) Limitations
I.R.C. § 25D(b)(1) Maximum Credit For Fuel Cells
In the case of any qualified fuel cell property expenditure, the credit allowed under subsection (a) (determined without regard to subsection (c)) for any taxable year shall not exceed $500 with respect to each half kilowatt of capacity of the qualified fuel cell property (as defined in section 48(c)(1)) to which such expenditure relates.
I.R.C. § 25D(b)(2) Certification Of Solar Water Heating Property
No credit shall be allowed under this section for an item of property described in subsection (d)(1) unless such property is certified for performance by the non-profit Solar Rating Certification Corporation or a comparable entity endorsed by the government of the State in which such property is installed.
I.R.C. § 25D(c) Carryforward Of Unused Credit
If the credit allowable under subsection (a) exceeds the limitation imposed by section 26(a) for such taxable year reduced by the sum of the credits allowable under this subpart (other than this section), such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such succeeding taxable year.
I.R.C. § 25D(d) Definitions
For purposes of this section—
I.R.C. § 25D(d)(1) Qualified Solar Water Heating Property Expenditure
The term “qualified solar water heating property expenditure” means an expenditure for property to heat water for use in a dwelling unit located in the United States and used as a residence by the taxpayer if at least half of the energy used by such property for such purpose is derived from the sun.
I.R.C. § 25D(d)(2) Qualified Solar Electric Property Expenditure
The term “qualified solar electric property expenditure” means an expenditure for property which uses solar energy to generate electricity for use in a dwelling unit located in the United States and used as a residence by the taxpayer.
I.R.C. § 25D(d)(3) Qualified Fuel Cell Property Expenditure
The term “qualified fuel cell property expenditure” means an expenditure for qualified fuel cell property (as defined in section 48(c)(1), without regard to subparagraph (D) thereof) installed on or in connection with a dwelling unit located in the United States and used as a principal residence (within the meaning of section 121) by the taxpayer.
I.R.C. § 25D(d)(4) Qualified Small Wind Energy Property Expenditure
The term “qualified small wind energy property expenditure” means an expenditure for property which uses a wind turbine to generate electricity for use in connection with a dwelling unit located in the United States and used as a residence by the taxpayer.
I.R.C. § 25D(d)(5) Qualified Geothermal Heat Pump Property Expenditure
I.R.C. § 25D(d)(5)(A) In General
The term “qualified geothermal heat pump property expenditure” means an expenditure for qualified geothermal heat pump property installed on or in connection with a dwelling unit located in the United States and used as a residence by the taxpayer.
I.R.C. § 25D(d)(5)(B) Qualified Geothermal Heat Pump Property
The term “qualified geothermal heat pump property” means any equipment which—
I.R.C. § 25D(d)(5)(B)(i)
uses the ground or ground water as a thermal energy source to heat the dwelling unit referred to in subparagraph (A) or as a thermal energy sink to cool such dwelling unit, and
I.R.C. § 25D(d)(5)(B)(ii)
meets the requirements of the Energy Star program which are in effect at the time that the expenditure for such equipment is made.
Editor's Note: Sec. 25D(d)(6), below, before amendment by Pub. L. 117-169, Sec. 13302(b)(2), is effective for expenditures made before January 1, 2023.
I.R.C. § 25D(d)(6) Qualified Biomass Fuel Property Expenditure
I.R.C. § 25D(d)(6)(A) In General
The term “qualified biomass fuel property expenditure” means an expenditure for property
I.R.C. § 25D(d)(6)(A)(i)
which uses the burning of biomass fuel to heat a dwelling unit located in the United States and used as a residence by the taxpayer, or to heat water for use in such a dwelling unit, and
I.R.C. § 25D(d)(6)(A)(ii)
which has a thermal efficiency rating of at least 75 percent (measured by the higher heating value of the fuel).
I.R.C. § 25D(d)(6)(B) Biomass Fuel
For purposes of this section, the term “biomass fuel” means any plant-derived fuel available on a renewable or recurring basis.
Editor's Note: Sec. 25D(d)(6), below, after amendment by Pub. L. 117-169, Sec. 13302(b)(2), is effective for expenditures made after December 31, 2022.
I.R.C. § 25D(d)(6) Qualified Battery Storage Technology Expenditure.
The term “qualified battery storage technology expenditure” means an expenditure for battery storage technology which—
I.R.C. § 25D(d)(6)(A)
is installed in connection with a dwelling unit located in the United States and used as a residence by the taxpayer, and
I.R.C. § 25D(d)(6)(B)
has a capacity of not less than 3 kilowatt hours.
I.R.C. § 25D(e) Special Rules
For purposes of this section—
I.R.C. § 25D(e)(1) Labor Costs
Expenditures for labor costs properly allocable to the onsite preparation, assembly, or original installation of the property described in subsection (d) and for piping or wiring to interconnect such property to the dwelling unit shall be taken into account for purposes of this section.
I.R.C. § 25D(e)(2) Solar Panels
No expenditure relating to a solar panel or other property installed as a roof (or portion thereof) shall fail to be treated as property described in paragraph (1) or (2) of subsection (d) solely because it constitutes a structural component of the structure on which it is installed.
I.R.C. § 25D(e)(3) Swimming Pools, Etc., Used As Storage Medium
Expenditures which are properly allocable to a swimming pool, hot tub, or any other energy storage medium which has a function other than the function of such storage shall not be taken into account for purposes of this section.
I.R.C. § 25D(e)(4) Fuel Cell Expenditure Limitations In Case Of Joint Occupancy
In the case of any dwelling unit with respect to which qualified fuel cell property expenditures are made and which is jointly occupied and used during any calendar year as a residence by two or more individuals, the following rules shall apply:
I.R.C. § 25D(e)(4)(A) Maximum Expenditures For Fuel Cells
The maximum amount of such expenditures which may be taken into account under subsection (a) by all such individuals with respect to such dwelling unit during such calendar year shall be $1,667 in the case of each half kilowatt of capacity of qualified fuel cell property (as defined in section 48(c)(1)) with respect to which such expenditures relate.
I.R.C. § 25D(e)(4)(B) Allocation Of Expenditures
The expenditures allocated to any individual for the taxable year in which such calendar year ends shall be an amount equal to the lesser of—
I.R.C. § 25D(e)(4)(B)(i)
the amount of expenditures made by such individual with respect to such dwelling during such calendar year, or
I.R.C. § 25D(e)(4)(B)(ii)
the maximum amount of such expenditures set forth in subparagraph (A) multiplied by a fraction—
I.R.C. § 25D(e)(4)(B)(ii)(I)
the numerator of which is the amount of such expenditures with respect to such dwelling made by such individual during such calendar year, and
I.R.C. § 25D(e)(4)(B)(ii)(II)
the denominator of which is the total expenditures made by all such individuals with respect to such dwelling during such calendar year.
I.R.C. § 25D(e)(5) Tenant-Stockholder In Cooperative Housing Corporation
In the case of an individual who is a tenant-stockholder (as defined in section 216) in a cooperative housing corporation (as defined in such section), such individual shall be treated as having made his tenant-stockholder's proportionate share (as defined in section 216(b)(3)) of any expenditures of such corporation.
I.R.C. § 25D(e)(6) Condominiums
I.R.C. § 25D(e)(6)(A) In General
In the case of an individual who is a member of a condominium management association with respect to a condominium which the individual owns, such individual shall be treated as having made the individual's proportionate share of any expenditures of such association.
I.R.C. § 25D(e)(6)(B) Condominium Management Association
For purposes of this paragraph, the term “condominium management association” means an organization which meets the requirements of paragraph (1) of section 528(c) (other than subparagraph (E) thereof) with respect to a condominium project substantially all of the units of which are used as residences.
I.R.C. § 25D(e)(7) Allocation In Certain Cases
If less than 80 percent of the use of an item is for nonbusiness purposes, only that portion of the expenditures for such item which is properly allocable to use for nonbusiness purposes shall be taken into account.
I.R.C. § 25D(e)(8) When Expenditure Made; Amount Of Expenditure
I.R.C. § 25D(e)(8)(A) In General
Except as provided in subparagraph (B), an expenditure with respect to an item shall be treated as made when the original installation of the item is completed.
I.R.C. § 25D(e)(8)(B) Expenditures Part Of Building Construction
In the case of an expenditure in connection with the construction or reconstruction of a structure, such expenditure shall be treated as made when the original use of the constructed or reconstructed structure by the taxpayer begins.
I.R.C. § 25D(f) Basis Adjustments
For purposes of this subtitle, if a credit is allowed under this section for any expenditure with respect to any property, the increase in the basis of such property which would (but for this subsection) result from such expenditure shall be reduced by the amount of the credit so allowed.
I.R.C. § 25D(g) Applicable Percentage
For purposes of subsection (a), the applicable percentage shall be—
I.R.C. § 25D(g)(1)
in the case of property placed in service after December 31, 2016, and before January 1, 2020, 30 percent,
I.R.C. § 25D(g)(2)
in the case of property placed in service after December 31, 2019, and before January 1, 2022, 26 percent, and
I.R.C. § 25D(g)(3)
in the case of property placed in service after December 31, 2021, and before January 1, 2033, 30 percent,
I.R.C. § 25D(g)(4)
in the case of property placed in service after December 31, 2032, and before January 1, 2034, 26 percent, and
I.R.C. § 25D(g)(5)
in the case of property placed in service after December 31, 2033, and before January 1, 2035, 22 percent.
I.R.C. § 25D(h) Termination
The credit allowed under this section shall not apply to property placed in service after December 31, 2034.
(Added by Pub. L. 109-58, title XIII, Sec. 1335(a), Aug. 8, 2005, 119 Stat. 594; and amended by Pub. L. 109-135, title IV, Sec. 402(i)(1) and (2), 402(i)(3)(E), Dec. 21, 2005, 119 Stat. 2577; Pub. L. 109-432, div. A, title II, Sec. 206(a), (b), Dec. 20, 2006, 120 Stat. 2922; Pub. L. 110-343, div. B, title I, Sec. 106, Oct. 3, 2008, 122 Stat. 3765; Pub. L. 111-5, div. B, title I, Sec. 1103(b)(2)(B), 1122(a), Feb. 17, 2009, 123 Stat. 115; Pub. L. 112-240, title I, Sec. 104(c)(2)(F), Jan. 2, 2013, 126 Stat. 2313; Pub. L. 114-113, Div. P, Sec. 304(a); Pub. L. 115-123, Div. D, title I, Sec. 40402, Feb. 9, 2018, 132 Stat. 64; Pub. L. 116-260, Div. EE, title I, Sec. 148(a), 148(b), Dec. 27, 2020, 134 Stat. 1182; Pub. L. 117-169, title I, Sec. 13302, Aug. 16, 2022, 136 Stat. 1818.)
BACKGROUND NOTES
AMENDMENTS
2022 — Sec. 25D. Pub. L. 117-169, Sec. 13302(c)(2) amended heading by substituting “Clean Energy Credit” for “Energy Efficient Property”.
Subsec. (a)(6). Pub. L. 117-169, Sec. 13302(b)(1) amended subsec. (a)(6). Before amendment, it read “the qualified biomass fuel property expenditures, and”.
Subsec. (d)(3). Pub. L. 117-169, Sec. 13302(c)(1) inserted “without regard to subparagraph (D) thereof” after “section 48(c)(1)”.
Subsec. (d)(6). Pub. L. 117-169, Sec. 13302(b)(2) amended subsec. (d)(6). Before amendment, it read as follows:
“(6) Qualified Biomass Fuel Property Expenditure.—
“(A) In General.—The term ‘qualified biomass fuel property expenditure' means an expenditure for property
“(i) which uses the burning of biomass fuel to heat a dwelling unit located in the United States and used as a residence by the taxpayer, or to heat water for use in such a dwelling unit, and
“(ii) which has a thermal efficiency rating of at least 75 percent (measured by the higher heating value of the fuel).
“(B) Biomass Fuel.—For purposes of this section, the term ‘biomass fuel' means any plant-derived fuel available on a renewable or recurring basis.”
Subsec. (g)(2). Pub. L. 117-169, Sec. 13302(a)(2)(A) amended subsec. (g)(2) by substituting “before January 1, 2022, 26 percent,” for “before January 1, 2023, 26 percent, and”.
Subsec. (g)(3). Pub. L. 117-169, Sec. 13302(a)(2)(B) amended subsec. (g)(3) and added new par. (4) and (5). Before amendment, par. (3) read as follows:
“(3) in the case of property placed in service after December 31, 2022, and before January 1, 2024, 22 percent.”
Subsec. (h). Pub. L. 117-169, Sec. 13302(a)(1) amended subsec. (h) by substituting “December 31, 2034” for “December 31, 2023”.
2020 — Subsec. (a)(4)–(6). Pub. L. 116-260, Sec. 148(b)(1), amended subsec. (a) by striking “and” at the end of par. (4); by adding “, and” at the end of par. (5); and by adding par. (6).
Subsec. (d). Pub. L. 116-260, Sec. 148(b)(2), amended subsec. (d) by adding par. (6).
Subsec. (g)(2). Pub. L. 116-260, Sec. 148(a)(2)(A), amended par. (2) by substituting “January 1, 2023” for “January 1, 2021”.
Subsec. (g)(3). Pub. L. 116-260, Sec. 148(a)(2)(B), amended par. (3) by substituting “after December 31, 2022, and before January 1, 2024” for “after December 31, 2020, and before January 1, 2022”.
Subsec. (h). Pub. L. 116-260, Sec. 148(a)(1), amended subsec. (h) by substituting “December 31, 2023” for “December 31, 2021”.
2018 — Subsec. (a). Pub. L. 115-123, Sec. 40402(b)(1), amended subsec. (a). Before being amended, subsec. (a) read as follows:
“(a) In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of—
“(1) 30 percent of the qualified solar electric property expenditures made by the taxpayer during such year,
“(2) 30 percent of the qualified solar water heating property expenditures made by the taxpayer during such year,
“(3) 30 percent of the qualified fuel cell property expenditures made by the taxpayer during such year,
“(4) 30 percent of the qualified small wind energy property expenditures made by the taxpayer during such year, and
“(5) 30 percent of the qualified geothermal heat pump property expenditures made by the taxpayer during such year.”
Subsec. (g). Pub. L. 115-123, Sec. 40402(b)(2), amended subsec. (g) by striking “paragraphs (1) and (2) of”.
Subsec. (h). Pub. L. 115-123, Sec. 40402(a), amended subsec. (h) by substituting “December 31, 2021” for “December 31, 2016 (December 31, 2021, in the case of any qualified solar electric property expenditures and qualified solar water heating property expenditures).”.
2015 — Subsec. (a). Pub. L. 114-113, Div. P, Sec. 304(a)(1), amended pars. (1) and (2) by substituting “the applicable percentage” for “30 percent”.
Subsec. (g). Pub. L. 114-113, Div. P, Sec. 304(a)(2), amended subsec. (g) by inserting “(December 31, 2021, in the case of any qualified solar electric property expenditures and qualified water heating property expenditures)” before the period at the end.
Subsec. (g)–(h). Pub. L. 114-113, Div. P, Sec. 304(a)(3)–(4), redesignated subsec. (g) as subsec. (h) and added a new subsec. (g).
2013 — Subsec. (c). Pub. L. 112-240, Sec. 104(c)(2)(F), amended subsec. (c). Prior to amendment, it read as follows:
“(c) Carryforward Of Unused Credit.—
“(1) Limitation Based On Amount Of Tax.—In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for the taxable year shall not exceed the excess of—
“(A) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over
“(B) the sum of the credits allowable under this subpart (other than this section) and section 27 for the taxable year.
“(2) Carryforward Of Unused Credit.—
“(A) Rule For Years In Which All Personal Credits Allowed Against Regular And Alternative Minimum Tax.—In the case of a taxable year to which section 26(a)(2) applies, if the credit allowable under subsection (a) exceeds the limitation imposed by section 26(a)(2) for such taxable year reduced by the sum of the credits allowable under this subpart (other than this section), such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such succeeding taxable year.
“(B) Rule For Other Years.—In the case of a taxable year to which section 26(a)(2) does not apply, if the credit allowable under subsection (a) exceeds the limitation imposed by paragraph (1) for such taxable year, such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such succeeding taxable year.”
2009 — Subsec. (b)(1). Pub. L. 111-5, Div. B, Sec. 1122(a)(1), amended par. (1). Before amendment, it read as follows:
“(1) Maximum Credit.—The credit allowed under subsection (a) (determined without regard to subsection (c)) for any taxable year shall not exceed—
“(A) $2,000 with respect to any qualified solar water heating property expenditures,
“(B) $500 with respect to each half kilowatt of capacity of qualified fuel cell property (as defined in section 48(c)(1)) for which qualified fuel cell property expenditures are made,
“(C) $500 with respect to each half kilowatt of capacity (not to exceed $4,000) of wind turbines for which qualified small wind energy property expenditures are made, and
“(D) $2,000 with respect to any qualified geothermal heat pump expenditures.”
Subsec. (e)(4). Pub. L. 111-5, Div. B, Sec. 1122(a)(2)(A), amended par. (4) by striking all that preceded subpar. (B) and inserting the language above. Before being struck, it read as follows:
“(4) Dollar Amounts In Case Of Joint Occupancy.—In the case of any dwelling unit which is jointly occupied and used during any calendar year as a residence by 2 or more individuals the following rules shall apply:
“(A) Maximum Expenditures.—The maximum amount of expenditures which may be taken into account under subsection (a) by all such individuals with respect to such dwelling unit during such calendar year shall be—
“(i) $6,667 in the case of any qualified solar water heating property expenditures,)
“(ii) $1,667 in the case of each half kilowatt of capacity of qualified fuel cell property (as defined in section 48(c)(1)) for which qualified fuel cell property expenditures are made,
“(iii) $1,667 in the case of each half kilowatt of capacity (not to exceed $13,333) of wind turbines for which qualified small wind energy property expenditures are made, and
“(iv) $6,667 in the case of any qualified geothermal heat pump property expenditures.”
Subsec. (e)(4)(C). Pub. L. 111-5, Div. B, Sec. 1122(a)(2)(B), struck subpar. (C). Before being struck, it read as follows:
“(C) Subparagraphs (A) and (B) shall be applied separately with respect to expenditures described in paragraphs (1), (2), and (3) of subsection (d).”
Subsec. (e)(9). Pub. L. 111-5, Div. B, Sec. 1103(b)(2)(B), struck par. (9). Before being struck, it read as follows:
“(9) Property Financed By Subsidized Energy Financing.—For purposes of determining the amount of expenditures made by any individual with respect to any dwelling unit, there shall not be taken into account expenditures which are made from subsidized energy financing (as defined in section 48(a)(4)(C)).”
2008 — Subsec. (a)(2)–(4). Pub. L. 110-343, Div. B, Sec. 106(c)(1), amended subsec. (a) by striking “and” at the end of par. (2), by substituting “, and” for the period at the end of par. (3), and by adding par. (4).
Subsec. (a)(3)–(5). Pub. L. 110-343, Div. B, Sec. 106(d)(1), amended subsec. (a) by striking “and” at the end of par. (3), by substituting “, and” for the period at the end of par. (4), and by adding par. (5).
Subsec. (b)(1)(A)–(E). Pub. L. 110-343, Div. B, Sec. 106(b)(1), amended par. (1) by striking subpar. (A) and by redesignating subpars. (B)–(E) as subpars. (A)–(D), respectively. Before being struck, subpar. (A) read as follows:
“(A) $2,000 with respect to any qualified solar electric property expenditures,”.
Subsec. (b)(1)(B)–(D). Pub. L. 110-343, Div. B, Sec. 106(c)(2), amended par. (1) by striking “and” at the end of subpar. (B), by substituting “, and” for the period at the end of subpar. (C), and by adding subpar. (D).
Subsec. (b)(1)(C)–(E). Pub. L. 110-343, Div. B, Sec. 106(d)(2), amended par. (1) by striking “and” at the end of subpar. (C), by substituting “, and” for the period at the end of subpar. (D), and by adding subpar. (E).
Subsec. (c). Pub. L. 110-343, Div. B, Sec. 106(e)(1). amended subsec. (c). Before amendment, it read as follows:
“(c) Limitation Based On Amount Of Tax; Carryforward Of Unused Credit.—
“(1) Rule For Years In Which All Personal Credits Allowed Against Regular And Alternative Minimum Tax.— In the case of a taxable year to which section 26(a)(2) applies, if the credit allowable under subsection (a) exceeds the limitation imposed by section 26(a)(2) for such taxable year reduced by the sum of the credits allowable under this subpart (other than this section), such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such succeeding taxable year.
“(2) Rule For Other Years.—In the case of a taxable year to which section 26(a)(2) does not apply, if the credit allowable under subsection (a) exceeds the limitation imposed by section 26(a)(1) for such taxable year reduced by the sum of the credits allowable under this subpart (other than this section and sections 23, 24, and 25B), such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such succeeding taxable year.”
Subsec. (d)(1). Pub. L. 110-343, Div. B, Sec. 106(c)(3)(B), amended par. (1) by adding the sentence at the end.
Subsec. (d)(4). Pub. L. 110-343, Div. B, Sec. 106(c)(3)(A), amended subsec. (d) by adding par. (4).
Subsec. (d)(5). Pub. L. 110-343, Div. B, Sec. 106(d)(3), amended subsec. (d) by adding par. (5).
Subsec. (e)(4)(A)(ii)–(iv). Pub. L. 110-343, Div. B, Sec. 106(c)(4), amended subpar. (A) by striking “and” at the end of clause (ii), by substituting “, and” for the period at the end of clause (iii), and by adding clause (iv).
Subsec. (e)(4)(A)(iii)–(v). Pub. L. 110-343, Div. B, Sec. 106(d)(4), amended subpar. (A) by striking “and” at the end of clause (iii), by substituting “, and” for the period at the end of clause (iv), and by adding clause (v).
Subsec. (e)(4)(A)(i)–(v). Pub. L. 110-343, Div. B, Sec. 106(b)(2), amended subpar. (A) by striking clause (i) and by redesignating clauses (ii)–(v) as clauses (i)–(iv), respectively. Before being struck, clause (i) read as follows:
“(i) $6,667 in the case of any qualified solar electric property expenditures,”.
Subsec. (g). Pub. L. 110-343, Div. B, Sec. 106(a), amended subsec. (g) by substituting “December 31, 2016” for “December 31, 2008”.
2006 — Subsec. (a)(1). Pub. L. 109-432, Sec. 206(b)(1), amended par. (1) by substituting “qualified solar electric property expenditures” for “qualified photovoltaic property expenditures”.
Subsec. (b)(1)(A). Pub. L. 109-432, Sec. 206(b)(1), amended subpar. (A) by substituting “qualified solar electric property expenditures” for “qualified photovoltaic property expenditures”.
Subsec. (d)(2). Pub. L. 109-432, Sec. 206(b)(2), amended par. (2) by substituting “qualified solar electric property expenditures” for “qualified photovoltaic property expenditure” in the heading and the text.
Subsec. (e)(4)(A)(i). Pub. L. 109-432, Sec. 206(b)(1), amended clause (i) by substituting “qualified solar electric property expenditures” for “qualified photovoltaic property expenditures”.
Subsec. (g). Pub. L. 109-432, Sec. 206(a), amended subsec. (g) by substituting “December 31, 2008” for “December 31, 2007”.
2005 — Subsec. (b)(1). Pub. L. 109-135, Sec. 402(i)(1), amended par. (1) by inserting “(determined without regard to subsection (c))” after “subsection (a)”.
Subsec. (c). Pub. L. 109-135, Sec. 402(i)(3)(E), amended subsec. (c). Before amendment, subsec. (c) would have read as follows (Note that this version of subsec. (c) never went into effect due to its effective date):
“(c) Carryforward Of Unused Credit.—
“If the credit allowable under subsection (a) exceeds the limitation imposed by section 26(a) for such taxable year reduced by the sum of the credits allowable under this subpart (other than this section), such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such succeeding taxable year.”
Subsec. (e)(4)(A)–(B). Pub. L. 109-135, Sec. 402(i)(2), amended subpars. (A)–(B). Before amendment, they would have read as follows (Note that this version of subpars. (A)–(B) never went into effect due to its effective date):
“(A) The amount of the credit allowable, under subsection (a) by reason of expenditures (as the case may be) made during such calendar year by any of such individuals with respect to such dwelling unit shall be determined by treating all of such individuals as 1 taxpayer whose taxable year is such calendar year.”
“(B) There shall be allowable, with respect to such expenditures to each of such individuals, a credit under subsection (a) for the taxable year in which such calendar year ends in an amount which bears the same ratio to the amount determined under subparagraph (A) as the amount of such expenditures made by such individual during such calendar year bears to the aggregate of such expenditures made by all of such individuals during such calendar year.”
EFFECTIVE DATE OF 2022 AMENDMENTS
Amendments by Pub. L. 117-169, Sec. 13302(a) shall apply to expenditures made after December 31, 2021.
Amendments by Pub. L. 117-169, Sec. 13302(b) shall apply to expenditures made after December 31, 2022.
Amendments by Pub. L. 117-169, Sec. 13302(c)(2) shall apply to expenditures made after December 31, 2022.
Amendments by Pub. L. 117-169, Sec. 13302(c)(1) shall apply to expenditures made after December 31, 2022.
EFFECTIVE DATE OF 2020 AMENDMENTS
Amendments by Pub. L. 116-260, Sec. 148(a), effective for property placed in service after December 31, 2020.
Amendments by Pub. L. 116-260, Sec. 148(b), effective for expenditures paid or incurred in tax years beginning after December 31, 2020.
EFFECTIVE DATE OF 2018 AMENDMENTS
Amendments by Pub. L. 115-123, Sec. 40402, effective for property placed in service after December 31, 2016.
EFFECTIVE DATE OF 2015 AMENDMENTS
Amendments by Sec. 304 of Pub. L. 114-113, Div. P, effective on January 1, 2017.
EFFECTIVE DATE OF 2013 AMENDMENT
Amendment by Sec. 104(c)(2)(F) of Pub. L. 112-240 effective for taxable years beginning after December 31, 2011.
EFFECTIVE DATE OF 2009 AMENDMENT
Amendment by Div. B, Sec. 1103(b)(2)(B) of Pub. L. 111-5 effective for taxable years beginning after December 31, 2008.
Amendments by Div. B, Sec. 1122(a) of Pub. L. 111-5 effective for taxable years beginning after December 31, 2008.
EFFECTIVE DATE OF 2008 AMENDMENTS
Amendments by Div. B, Sec. 106(a), (c)–(e) of Pub. L. 110-343 effective for taxable years beginning after December 31, 2007. Pub. L. 110-343, Div. B, Sec. 106(f)(3) provided that:
“(3) APPLICATION OF EGTRRA SUNSET.—The amendments made by subparagraphs (A) and (B) of subsection (e)(2) shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 in the same manner as the provisions of such Act to which such amendments relate.”
Amendments by Div. B, Sec. 106(b) of Pub. L. 110-343 effective for taxable years beginning after December 31, 2008.
EFFECTIVE DATE OF 2006 AMENDMENTS
Amendments by Sec. 206 of Pub. L. 109-432 effective on the date of the enactment of this Act [Enacted: Dec. 20, 2006].
EFFECTIVE DATE OF 2005 AMENDMENTS
Amendments by Sec. 402(i)(1) and (2) of Pub. L. 109-135 effective as if included in the provisions of the Energy Act of 2005 [Pub. L. 109-58, Sec. 1335] to which they relate [Effective for property placed in service after December 31, 2005 in taxable years ending after such date].
Amendment by Sec. 402(i)(3)(E) of Pub. L. 109-135 effective for taxable years beginning after December 31, 2005.
EFFECTIVE DATE
Effective for property placed in service after December 31, 2005 in taxable years ending after such date.