SECTION 2. BACKGROUND

Section 46 of the Code provides that the amount of the investment credit for any taxable year includes the energy credit. Section 48(a)(1) of the Code provides that the energy credit for a taxable year is the energy percentage of the basis of each energy property placed in service during the taxable year.

Section 1336 of the Energy Policy Act of 2005, Pub. L. No. 109–58, amended § 48 to add qualified fuel cell property and qualified microturbine property to the list of property that can qualify for the energy credit. The amendment also provides that the energy percentage is 30 percent for qualified fuel cell property and 10 percent for qualified microturbine property.