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As in effect for 1995, section 38(a)(2) and (b)(1) provides
for a credit against a taxpayer’s income tax in the amount of the
investment credit determined under section 46. Section 46
provides that the amount of the investment credit, as relevant
here, is the amount of the energy credit. The amount of the
energy credit is equal to 10 percent of the basis of the energy
property4 placed in service during the taxable year. Sec.
4Energy property is defined in sec. 48(a)(3) as 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, * * *
* * * * * * *
(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.
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Last modified: May 25, 2011