(a) Exclusion Gross income shall not include the value of any subsidy provided (directly or indirectly) by a public utility to a customer for the purchase or installation of any energy conservation measure.
Amended 1996
- 1996 Pub. L. 104-188 Pub. L. 104–188, § 1617(b)(1), reenacted heading without change and amended text generally, substituting present provisions for former provisions which consisted of general exclusion in par. (1) and limitation for exclusion on nonresidential property in par. (2).
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(b) Denial of double benefit Notwithstanding any other provision of this subtitle, no deduction or credit shall be allowed for, or by reason of, any expenditure to the extent of the amount excluded under subsection (a) for any subsidy which was provided with respect to such expenditure. The adjusted basis of any property shall be reduced by the amount excluded under subsection (a) which was provided with respect to such property.
(c) Energy conservation measure
(1) In general For purposes of this section, the term “energy conservation measure” means any installation or modification primarily designed to reduce consumption of electricity or natural gas or to improve the management of energy demand with respect to a dwelling unit.
Amended 1996
- 1996 Pub. L. 104-188 Pub. L. 104–188, § 1617(a), substituted “energy demand with respect to a dwelling unit.” for “energy demand—
“(A) with respect to a dwelling unit, and
“(B) on or after January 1, 1995, with respect to property other than dwelling units.
The purchase and installation of specially defined energy property shall be treated as an energy conservation measure described in subparagraph (B).”
(2) Other definitions For purposes of this subsection—
Amended 1996
- 1996 Pub. L. 104-188 Pub. L. 104–188, § 1617(b)(2), struck out “and special rules” after “definitions” in heading, redesignated subpars. (B) and (C) as (A) and (B), respectively, and struck out former subpar. (A) which related to “specially defined energy property”.
(A) Dwelling unit The term “dwelling unit” has the meaning given such term by section 280A(f)(1).
(B) Public utility The term “public utility” means a person engaged in the sale of electricity or natural gas to residential, commercial, or industrial customers for use by such customers. For purposes of the preceding sentence, the term “person” includes the Federal Government, a State or local government or any political subdivision thereof, or any instrumentality of any of the foregoing.
(d) Exception This section shall not apply to any payment to or from a qualified cogeneration facility or qualifying small power production facility pursuant to section 210 of the Public Utility Regulatory Policy Act of 1978.