To amend the Internal Revenue Code of 1986 to provide that solar energy property need not be located on the property with respect to which it is generating electricity in order to qualify for the residential energy efficient property credit.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Solar Uniting Neighborhoods (SUN) Act of 2011''.
SEC. 2. CLARIFICATION WITH RESPECT TO LOCATION OF SOLAR ELECTRIC PROPERTY.
(a) In General.--Paragraph (2) of section 25D(d) of the Internal Revenue Code of 1986 is amended to read as follows: ``(2) Qualified solar electric property expenditure.-- ``(A) In general.--The term `qualified solar electric property expenditure' means an expenditure for property which uses solar energy to generate electricity-- ``(i) for use in a dwelling unit located in the United States and used as a residence by the taxpayer, or ``(ii) which enters the electrical grid at any point which is not more than 50 miles from the point at which such a dwelling unit used as a residence by the taxpayer is connected to such grid, but only if such property is not used in a trade or business of the taxpayer or in an activity with respect to which a deduction is allowed to the taxpayer under section 162 or paragraph (1) or (2) of section 212. ``(B) Recapture.--The Secretary may provide for the recapture of the credit under this subsection...