Renewable Energy and Energy Conservation Tax Act

Renewable Energy and Energy Conservation Tax Act - Allows an income tax credit for 30 percent of the expenditures not exceeding $750 which the taxpayer paid or incurred during the taxable year for the installation of insulation or energy-conserving components which improve heating plant efficiency in his principal residence. Limits the application of this credit to expenditures paid or incurred for installations made between 1976 and 1982 in pre-existing dwellings.

Allows an income tax credit for 40 percent of the first $1,000, and a secondary credit for 25 percent of the next $6,400 paid or incurred by the taxpayer during the taxable year for the installation of qualified solar, wind and geothermal energy equipment in his principal residence. Allows an income tax credit for 20 percent of the first $1,000, and a secondary credit for 12.5 percent of the next $6,400 paid or incurred for the installation of wood stove, heat pump, or burner equipment in connection with new solar, wind or geothermal energy equipment which will be the principal source of space heat in the taxpayer's principal residence. Reduces these limitations in subsequent tax years by subtracting the amounts taken into account for these credits in previous tax years. Limits these credits to equipment installed between 1976 and 1982 in the case of solar, geothermal or wind energy equipment, and between 1976 and 1979 for other equipment unless the expenditures are obligated under a binding contract concluded before the end of that period.

Prorates each of the above credits for residential improvements among joint owners and cooperative shareholders according to their proportionate interests in the residential property. Provides for the carryover of any allowable credit which exceeds the taxpayer's current income tax liability.

Allows an investment tax credit for 20 percent of the qualified investment cost of depreciable geothermal, solar or wind energy equipment placed in service between 1976 and 1980. Provides an investment tax credit for ten percent of the qualified investment costs of wind, solar and geothermal energy equipment placed in service between 1980 and 1982, and of depreciable insulation placed in service between 1976 and 1980. Allows such a credit for 12 percent of the qualified costs of depreciable waste and organic fuel conversion equipment which is placed in service between 1976 and 1980. Provides that the qualified investment in such equipment shall be: one-third of the cost of equipment having a useful life of three to five years; two-thirds of the cost of equipment having a useful life of five to seven years; and 100 percent of the cost of equipment having a useful life longer than seven years. Allows an additional investment credit for expenditures by certain corporations with employee stock plans.

Allows an income tax deduction for 22 percent of the gross income from a taxpayer's geothermal energy property after excluding rent or royalties paid in respect of the property. Limits this deduction to 50 percent of the taxable income from such property. Provides that the deduction shall be equitably apportioned between the lessor and lessee of such property. Treats the life tenants of geothermal property as the absolute owners thereof for the purposes of this deduction. Apportions the allowable deduction between the beneficiaries of estates and trusts according to their proportionate interests in the estate or trust income. Disallows any depletion or exploration deductions for the production of geothermal energy.

Makes costs incurred for air conditioners or heating units placed in service predominantly for purposes of human comfort ineligible for the investment tax credit.

Defines each type of equipment for which credits are allowable under this Act, providing that such equipment must: (1) have a useful life of at least three years; (2) have its original use commence with the taxpayer (with the exception of waste and organic fuel conversion equipment); and (3) meet specified performance criteria to be established by the Department of the Treasury, the Department of Housing and Urban Development, the Federal Energy Administration, or the Environmental Protection Agency.

Directs the Secretary of the Treasury to make a comprehensive study and report to the President and Congress, in cooperation with the Administrator of the Environmental Protection Agency, on the proper role of the Federal Government in encouraging the recycling of solid waste materials through tax incentives and other devices.