### Question
How does CREDITS AGAINST TAX define energy property?


### Answer
Under *26 U.S.C. § 48*, **energy property** is defined as:

> any property—


(A) which is—


(i) equipment which uses solar energy to generate electricity, to heat or cool (or provide hot water for use in) a structure, or to provide solar process heat, or


(ii) equipment used to produce, distribute, or use energy derived from a geothermal deposit (within the meaning of section 613(e)(2)), but only, in the case of electricity generated by geothermal power, up to (but not including) the electrical transmission stage,


  

(B)(i) the construction, reconstruction, or erection of which is completed by the taxpayer, or


(ii) which is acquired by the taxpayer if the original use of such property commences with the taxpayer,


(C) with respect to which depreciation (or amortization in lieu of depreciation) is allowable, and


(D) which meets the performance and quality standards (if any) which—


(i) have been prescribed by the Secretary by regulations (after consultation with the Secretary of Energy), and


(ii) are in effect at the time of the acquisition of the property

#### Citation:
  - *26 U.S.C. § 48*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter A-Determination of Tax Liability > PART IV-CREDITS AGAINST TAX > Subpart E-Rules for Computing Investment Credit**

