Page:United States Statutes at Large Volume 104 Part 2.djvu/950

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104 STAT. 1388-542 PUBLIC LAW 101-508 —NOV. 5, 1990 "(1) IN GENERAL.—For purposes of section 46, the energy credit for any taxable year is the energy percentage of the basis of each energy property placed in service during such taxable year. "(2) ENERGY PERCENTAGE.— "(A) IN GENERAL. —Except as provided in subparagraph (B), the energy percentage is 10 percent. "(B) TERMINATION.—Effective with respect to periods after December 31, 1991, the energy percentage is zero. For purposes of the preceding sentence, rules similar to the rules of section 48(m) (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply. " (C) COORDINATION WITH REHABILITATION CREDIT. — The energy percentage shall not apply to that portion of the basis of any property which is attributable to qualified rehabilitation expenditures. "(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, or "(ii) equipment used to produce, distribute, or use energy derived from a geothermal deposit (within the meaning of section 613(e)(2)), but only, in the case of electricity generated by geothermal power, up to (but not including) the electrical transmission stage, "(B)(i) the construction, reconstruction, or erection of which is completed by the taxpayer, or "(ii) which is acquired by the taxpayer if the original use of such property commences with the taxpayer, "(C) with respect to which depreciation (or amortization in lieu of depreciation) is allowable, and "(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 "(ii) are in effect at the time of the acquisition of the property. The term 'energy property' shall not include any property which is public utility property (as defined in section 46(fK5) as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990). " (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— "(i) subsidized energy financing, or "(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 subpara-