Internal Revenue Code – Section 136

Sec. 136. Energy conservation subsidies provided by public utilities

-STATUTE-

(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.

 

-SOURCE-

(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.)

 

-REFTEXT-

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.

 

 

-MISC1-

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."

 

-End-