123STA T . 321 PUBLIC LA W 111 –5—FE B.1 7, 2 0 0 9(C)Section48A ( b )( 2 )i sam en d edb y inse r tin g‘ ‘( w it h o u t regard to sub p aragraph ( D ) thereo f ) ’ ’ after ‘‘section 48(a)(4)’’ . (D) Section 48 B (b)(2) is amended by inserting ‘‘(without regard to subparagraph (D) thereof)’’ after ‘‘section 48(a)(4)’’. (c) EF F ECTIV ED A TE. — ( 1 ) ING ENE R A L .—E x cept as pro v ided in paragraph (2) , the amendment made by this section sha l l apply to periods after December 3 1,2 0 08, under rules similar to the rules of section 48(m) of the Internal R evenue Code of 1 9 8 6 (as in effect on the day before the date of the enactment of the Revenue Rec - onciliation Act of 1990). (2) C O NFOR M ING AMEN D MENT S .— T he amendments made by subparagraphs (A) and (B) of subsection (b)(2) shall apply to taxable years beginning after December 31, 2008. SEC.1 1 04 .C O O RDINAT ION W IT H RENEWA BL E ENER GY GRANTS. Section 48 is amended by adding at the end the following new subsection
‘‘(d) COORDINATION W IT H DE P ARTMENT OF TREAS U R YG RANTS.— In the case of any property with respect to which the Secretary ma k es a grant under section 1603 of the American Recovery and Reinvestment Tax Act of 2009— ‘‘(1) DENIAL OF PRODUCTION AND INVESTMENT CREDITS.— N o credit shall be determined under this section or section 4 5 with respect to such property for the taxable year in which such grant is made or any subse q uent taxable year. ‘‘(2) RECAPTURE OF CREDITS FOR PROGRESS E X PENDITURES MADE B EFORE 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 ad j usted so as to recapture the portion of such credit which was not so allowed, and ‘‘(C) the amount of such grant shall be determined without regard to any reduction in the basis of such prop- erty by reason of such credit. ‘‘(3) TREATMENT OF GRANTS.—Any such grant shall— ‘‘(A) not be includible in the gross income of the tax- payer, but ‘‘(B) shall be taken into account in determining the basis of the property to which such grant relates, except that the basis of such property shall be reduced under section 50(c) in the same manner as a credit allowed under subsection (a).’’. Ap p licab ili ty.26USC 2 5 C. 26 USC 48 A.
