Internal Revenue Code:Sec. 136. Energy conservation subsidies provided by public utilities
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Location in Internal Revenue Code
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter B - Computation of Taxable Income
PART III - ITEMS SPECIFICALLY EXCLUDED FROM GROSS INCOME
Statute
Sec. 136. Energy conservation subsidies provided by public
utilities
(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.
(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.
(2) Other definitions
For purposes of this subsection -
(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.
Sources
(Added Pub. L. 102-486, title XIX, Sec. 1912(a), Oct. 24, 1992, 106
Stat. 3014; amended Pub. L. 104-188, title I, Sec. 1617(a), (b),
Aug. 20, 1996, 110 Stat. 1858.)
References in Text
REFERENCES IN TEXT
Section 210 of the Public Utility Regulatory Policy Act of 1978,
referred to in subsec. (d), probably means section 210 of the
Public Utility Regulatory Policies Act of 1978, Pub. L. 95-617,
which is classified to section 824a-3 of Title 16, Conservation.
Miscellaneous
PRIOR PROVISIONS
A prior section 136 was renumbered section 140 of this title.
AMENDMENTS
1996 - Subsec. (a). Pub. L. 104-188, Sec. 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).
Subsec. (c)(1). Pub. L. 104-188, Sec. 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).''
Subsec. (c)(2). Pub. L. 104-188, Sec. 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''.
EFFECTIVE DATE OF 1996 AMENDMENT
Section 1617(c) of Pub. L. 104-188 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.''
EFFECTIVE DATE
Section 1912(c) of Pub. L. 102-486 provided that: ''The
amendments made by this section (enacting this section and
renumbering former section 136 as 137) shall apply to amounts
received after December 31, 1992.''
