,,ii #aacth ,,congress #ast ,session ,s4 #abbe ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,june #bf1 #bjac ,mr4 ,udall of ,colorado introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide that solar energy property need not be located on the property with respect to which it is generating electricity in order to qualify for the residential energy efficient property credit4 #a4 ,short title ,this ,act may be cited as the ,solar ,uniting ,neighborhoods 7,,sun7 ,act of #bjac4 #b4 ,clarification with respect to location of solar electric property 7a7 ,in general ,paragraph 7#b7 of section #be;,d7d7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#b7 ,qualified solar electric property expenditure 7,a7 ,in general ,the term qualified solar electric property expenditure means an expenditure for property which uses solar energy to generate electricity-- 7i7 for use in a dwelling unit located in the ,united ,states and used as a residence by the taxpayer1 or 7ii7 which enters the electrical grid at any point which is not more than #ej miles from the point at which such a dwelling unit used as a residence by the taxpayer is connected to such grid1 but only if such property is not used in a trade or business of the taxpayer or in an activity with respect to which a deduction is allowed to the taxpayer under section #afb or paragraph 7#a7 or 7#b7 of section #bab4 7,b7 ,recapture ,the ,secretary may provide for the recapture of the credit under this subsection with respect to any property described in clause 7ii7 of subparagraph 7,a7 which ceases to satisfy the requirements of such clause4 4 7b7 ,limitation with respect to off-,site solar property ,subsection 7b7 of section #be;,d of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#c7 ,maximum credit for off-site solar property ,in the case of any qualified solar electric property expenditure which is such an expenditure by reason of clause 7ii7 of subsection 7d77#b77;,a71 the credit allowed under subsection 7a7 7determined without regard to subsection 7c77 for any taxable year with respect to all such expenditures shall not exceed #ej1jjj4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4 #c4 ,clarification with respect to location of solar water heating property 7a7 ,in general ,section #be;,d7d77#a7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking ,the term and inserting the following3 7,a7 ,in general ,the term 1 and 7#b7 by adding at the end the following new subparagraph3 7,b7 ,off-site property 7i7 ,in general ,such term shall include an expenditure for property described in subparagraph 7,a7 notwithstanding-- 7,i7 whether such property is located on the same site as the dwelling unit for which the energy generated from such property is used1 and 7,,ii7 whether the energy generated by such property displaces the energy used to heat the water load or space heating load for the dwelling1 so long as any such displacement from such property occurs not more than #ej miles from such dwelling unit1 but only if such property is not used in a trade or business of the taxpayer or in an activity with respect to which a deduction is allowed to the taxpayer under section #afb or paragraph 7#a7 or 7#b7 of section #bab4 7ii7 ,recapture ,the ,secretary may provide for the recapture of the credit under this subsection with respect to any property described in clause 7i7 which ceases to satisfy the requirements of such clause4 4 7b7 ,limitation with respect to off-,site solar property ,paragraph 7#c7 of section #be;,d7b7 of the ,internal ,revenue ,code of #aihf1 as added by section #b1 is amended to read as follows3 7#c7 ,maximum credit for off-site solar property ,in the case of-- 7,a7 any qualified solar electric property expenditure which is such an expenditure by reason of clause 7ii7 of subsection 7d77#b77;,a71 and 7,b7 any qualified solar water heating property expenditure which is such an expenditure by reason of subparagraph 7,b7 of subsection 7d77#a71 the credit allowed under subsection 7a7 7determined without regard to subsection 7c77 for any taxable year with respect to all such expenditures shall not exceed #ej1jjj4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4 #d4 ,exclusion of income from qualifying sales 7a7 ,in general ,part ,,iii of subchapter ,b of chapter #a is amended by inserting before section #adj the following new section3 #aci;,e4 ,income from qualifying sales of solar electricity ,for any taxable year1 gross income of any person shall not include any gain from the sale or exchange to the electrical grid during such taxable year of electricity which is generated by property with respect to which any qualified solar electric property expenditures are eligible to be taken into account under section #be;,d1 but only to the extent such gain does not exceed the value of the electricity used at such residence during such taxable year4 4 7b7 ,clerical amendment ,the table of sections for part ,,iii of subchapter ,b of chapter #a of such ,code is amended by inserting before the item relating to section #adj the following new item3 ,sec4 #aci;,e4 ,income from qualifying sales of solar electricity4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4