§ 136. Energy conservation subsidies provided by public utilities

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1992

   Energy Policy Act of 1992

   Pub. L. 102–486 title XIX § 1912(a) · 106 Stat. 2776

   Enacted · 26 U.S.C. § 136

   Added Pub. L. 102–486, title XIX, § 1912(a), Oct. 24, 1992, 106 Stat. 3014

   Source evidence

   Code source credit
   Added Pub. L. 102–486, title XIX, § 1912(a), Oct. 24, 1992, 106 Stat. 3014

   Enacted provision · exact public law section
   (a) General Rule.— Part III of subchapter B of chapter 1 (relating to amounts specifically excluded from gross income) is amended by redesignating section 136 as section 137 and by inserting after section 135 the following new section: “SEC. 136. ENERGY CONSERVATION SUBSIDIES PROVIDED BY PUBLIC UTILITIES. “(a) Exclusion.— “(1) In general.— 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. “(2) Limitation on exclusion for nonresidential property.— “(A) In general.— In the case of any subsidy provided with respect to any energy conservation measure referred to in subsection (c)(1)(B), only the applicable percentage of such subsidy shall be excluded from gross income under paragraph (1). “(B) Applicable percentage.— For purposes of subparagraph (A), the term ‘applicable percentage’ means— “(i) 40 percent in the case of subsidies provided during 1995, “(ii) 50 percent in the case of subsidies provided during 1996, and “(iii) 65 percent in the case of subsidies provided after 1996. “(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— “(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 and special rules.— For purposes of this subsection— “(A) Specially defined energy property.— The term ‘specially defined energy property’ means— “(i) a recuperator, “(ii) a heat wheel, “(iii) a regenerator, “(iv) a heat exchanger, “(v) a waste heat boiler, “(vi) a heat pipe, “(vii) an automatic energy control system, “(viii) a turbulator, “(ix) a preheater, “(x) a combustible gas recovery system, “(xi) an economizer, “(xii) modifications to alumina electrolytic cells, “(xiii) modifications to chlor-alkali electrolytic cells, or “(xiv) any other property of a kind specified by the Secretary by regulations, the principal purpose of which is reducing the amount of energy consumed in any existing industrial or commercial process and which is installed in connection with an existing industrial or commercial facility. “(B) Dwelling unit.— The term ‘dwelling unit’ has the meaning given such term by section 280A(f)(1). “(C) 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.”

2. 1996

   Small Business Job Protection Act of 1996

   Pub. L. 104–188 § 1617(b)(1) · 110 Stat. 1755

   1. Amended · 26 U.S.C. § 136(a)

      Pub. L. 104–188, § 1617(b)(1), reenacted heading without change and amended text generally

   2. Substituted · 26 U.S.C. § 136(a)

      Pub. L. 104–188, § 1617(b)(1), reenacted heading without change and substituting present provisions for former provisions which consisted of general exclusion in par. (1) and limitation for exclusion on nonresidential property in par. (2)

   Source evidence

   Code amendment note
   Subsec. (a). 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).

   Enacted provision · exact public law section
   (1) Subsection (a) of section 136 is amended to read as follows: “(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.”.

   Effective date note
   Pub. L. 104–188, title I, § 1617(c), Aug. 20, 1996, 110 Stat. 1858, provided that: “The amendments made by this section [amending this section] shall apply to amounts received after December 31, 1996, unless received pursuant to a written binding contract in effect on September 13, 1995, and at all times thereafter.”

3. 1996

   Small Business Job Protection Act of 1996

   Pub. L. 104–188 § 1617(a) · 110 Stat. 1755

   Substituted · 26 U.S.C. § 136(c)(1)

   Pub. L. 104–188, § 1617(a), substituted “energy demand with respect to a dwelling unit.” for “energy demand—

   Source evidence

   Code amendment note
   Subsec. (c)(1). 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).”

   Enacted provision · exact public law section
   (a) In General.— Paragraph (1) of section 136(c) (defining energy conservation measure) is amended by striking “energy demand—” and all that follows and inserting “energy demand with respect to a dwelling unit.”.

   Effective date note
   Pub. L. 104–188, title I, § 1617(c), Aug. 20, 1996, 110 Stat. 1858, provided that: “The amendments made by this section [amending this section] shall apply to amounts received after December 31, 1996, unless received pursuant to a written binding contract in effect on September 13, 1995, and at all times thereafter.”

4. 1996

   Small Business Job Protection Act of 1996

   Pub. L. 104–188 § 1617(b)(2) · 110 Stat. 1755

   1. Struck · 26 U.S.C. § 136(c)(2)

      Pub. L. 104–188, § 1617(b)(2), struck out “and special rules” after “definitions” in heading

   2. Redesignated · 26 U.S.C. § 136(c)(2)

      Pub. L. 104–188, § 1617(b)(2), redesignated subpars. (B) and (C) as (A) and (B), respectively

   3. Struck · 26 U.S.C. § 136(c)(2)

      Pub. L. 104–188, § 1617(b)(2), struck out former subpar. (A) which related to “specially defined energy property”

   Source evidence

   Code amendment note
   Subsec. (c)(2). 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”.

   Enacted provision · exact public law section
   “(2) Paragraph (2) of section 136(c) is amended— (A) by striking subparagraph (A) and by redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively, and (B) by striking “AND SPECIAL RULES” in the paragraph heading.

   Effective date note
   Pub. L. 104–188, title I, § 1617(c), Aug. 20, 1996, 110 Stat. 1858, provided that: “The amendments made by this section [amending this section] shall apply to amounts received after December 31, 1996, unless received pursuant to a written binding contract in effect on September 13, 1995, and at all times thereafter.”

7 of 7 references resolved to an enrolled provision