Applies such credit to: (1) individuals for installations through December 31, 2005; and (2) contractors for dwellings purchased through December 31, 2005.
[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2147 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 2147
To amend the Internal Revenue Code of 1986 to provide tax credits for
making energy efficiency improvements to existing homes and for
constructing new energy efficient homes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 13, 2001
Mr. Weller (for himself, Mr. Johnson of Illinois, Mr. Cardin, Mr.
English, Mr. Ramstad, and Mr. Kerns) introduced the following bill;
which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide tax credits for
making energy efficiency improvements to existing homes and for
constructing new energy efficient homes.
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 ``Save America's Valuable Energy
Resources Act of 2001''.
SEC. 2. CREDIT FOR ENERGY EFFICIENCY IMPROVEMENTS TO EXISTING HOMES.
(a) In General.--Subpart A of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to nonrefundable
personal credits) is amended by inserting after section 25A the
following new section:
``SEC. 25B. ENERGY EFFICIENCY IMPROVEMENTS TO EXISTING HOMES.
``(a) Allowance of Credit.--In the case of an individual, there
shall be allowed as a credit against the tax imposed by this chapter
for the taxable year an amount equal to 20 percent of the amount paid
or incurred by the taxpayer for qualified energy efficiency
improvements installed during such taxable year.
``(b) Limitations.--
``(1) Maximum credit.--The credit allowed by this section
with respect to a dwelling shall not exceed $2,000.
``(2) Prior credit amounts for taxpayer on same dwelling
taken into account.--If a credit was allowed to the taxpayer
under subsection (a) with respect to a dwelling in 1 or more
prior taxable years, the amount of the credit otherwise
allowable for the taxable year with respect to that dwelling
shall not exceed the amount of $2,000 reduced by the sum of the
credits allowed under subsection (a) to the taxpayer with
respect to the dwelling for all prior taxable years.
``(c) Carryforward of Unused Credit.--If the credit allowable under
subsection (a) exceeds the limitation imposed by section 26(a) for such
taxable year reduced by the sum of the credits allowable under subpart
A of part IV of subchapter A (other than this section), such excess
shall be carried to the succeeding taxable year and added to the credit
allowable under subsection (a) for such taxable year.
``(d) Qualified Energy Efficiency Improvements.--For purposes of
this section, the term `qualified energy efficiency improvements' means
any energy efficient building envelope component that is certified to
meet or exceed the prescriptive criteria for such component established
by the 1998 International Energy Conservation Code, if--
``(1) such component is installed in or on a dwelling--
``(A) located in the United States, and
``(B) owned and used by the taxpayer as the
taxpayer's principal residence (within the meaning of
section 121),
``(2) the original use of such component commences with the
taxpayer, and
``(3) such component reasonably can be expected to remain
in use for at least 5 years.
The certification requirement of the preceding sentence shall apply
only to the extent that the aggregate cost of such components exceeds
$2,500.
``(e) Certification.--The certification described in subsection (d)
shall be--
``(1) determined on the basis of the technical
specifications or applicable ratings (including product
labeling requirements) for the measurement of energy
efficiency, based upon energy use or building envelope
component performance, for the energy efficient building
envelope component,
``(2) provided by the contractor who installed such
building envelope component, a local building regulatory
authority, a utility, a manufactured home production inspection
primary inspection agency (IPIA), or an accredited home energy
rating system provider who is accredited by or otherwise
authorized to use approved energy performance measurement
methods by the Home Energy Ratings Systems Council or the
National Association of State Energy Officials, and
``(3) made in writing in a manner that specifies in readily
verifiable fashion the energy efficient building envelope
components installed and their respective energy efficiency
levels.
``(f) Definitions and Special Rules.--
``(1) Tenant-stockholder in cooperative housing
corporation.--In the case of an individual who is a tenant-
stockholder (as defined in section 216) in a cooperative
housing corporation (as defined in such section), such
individual shall be treated as having paid his tenant-
stockholder's proportionate share (as defined in section
216(b)(3)) of the cost of qualified energy efficiency
improvements made by such corporation.
``(2) Condominiums.--
``(A) In general.--In the case of an individual who
is a member of a condominium management association
with respect to a condominium which he owns, such
individual shall be treated as having paid his
proportionate share of the cost of qualified energy
efficiency improvements made by such association.
``(B) Condominium management association.--For
purposes of this paragraph, the term `condominium
management association' means an organization which
meets the requirements of paragraph (1) of section 528(c) (other than
subparagraph (E) thereof) with respect to a condominium project
substantially all of the units of which are used as residences.
``(3) Building envelope component.--The term `building
envelope component' means--
``(A) insulation material or system which is
specifically and primarily designed to reduce the heat
loss or gain or a dwelling when installed in or on such
dwelling, and
``(B) exterior windows (including skylights) and
doors.
``(4) Manufactured homes included.--For purposes of this
section, the term `dwelling' includes a manufactured home which
conforms to Federal Manufactured Home Construction and Safety
Standards (24 C.F.R. 3280).
``(g) Basis Adjustment.--For purposes of this subtitle, if a credit
is allowed under this section for any expenditure with respect to any
property, the increase in the basis of such property which would (but
for this subsection) result from such expenditure shall be reduced by
the amount of the credit so allowed.
``(h) Termination.--Subsection (a) shall apply to qualified energy
efficiency improvements installed during the period beginning on
January 1, 2001, and ending on December 31, 2005.''.
(b) Conforming Amendments.--
(1) Subsection (c) of section 23 of such Code is amended by
inserting ``, section 25B, and section 1400C'' after ``other
than this section''.
(2) Subparagraph (C) of section 25(e)(1) of such Code is
amended by striking ``section 23'' and inserting ``sections 23,
25B, and 1400C''.
(3) Subsection (d) of section 1400C of such Code is amended
by inserting ``and section 25B'' after ``other than this
section''.
(4) Subsection (a) of section 1016 of such Code is amended
by striking ``and'' at the end of paragraph (26), by striking
the period at the end of paragraph (27) and inserting ``;
and'', and by adding at the end the following new paragraph:
``(28) to the extent provided in section 25B(f), in the
case of amounts with respect to which a credit has been allowed
under section 25B.''.
(5) The table of sections for subpart A of part IV of
subchapter A of chapter 1 of such Code is amended by inserting
after the item relating to section 25A the following new item:
``Sec. 25B. Energy efficiency
improvements to existing
homes.''
(c) Effective Date.--The amendments made by this section shall
apply to taxable years ending after December 31, 2000.
SEC. 3. BUSINESS CREDIT FOR CONSTRUCTION OF NEW ENERGY EFFICIENT HOME.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to business related
credits) is amended by inserting after section 45F the following new
section:
``SEC. 45G. NEW ENERGY EFFICIENT HOME CREDIT.
``(a) In General.--For purposes of section 38, in the case of an
eligible contractor, the credit determined under this section for the
taxable year is an amount equal to the aggregate adjusted bases of all
energy efficient property installed in a qualified new energy efficient
home during construction of such home.
``(b) Limitations.--
``(1) Maximum credit.--
``(A) In general.--The credit allowed by this
section with respect to a dwelling shall not exceed
$2,000.
``(B) Prior credit amounts on same dwelling taken
into account.--If a credit was allowed under subsection
(a) with respect to a dwelling in 1 or more prior
taxable years, the amount of the credit otherwise
allowable for the taxable year with respect to that
dwelling shall not exceed the amount of $2,000 reduced
by the sum of the credits allowed under subsection (a)
with respect to the dwelling for all prior taxable
years.
``(2) Coordination with rehabilitation and energy
credits.--For purposes of this section--
``(A) the basis of any property referred to in
subsection (a) shall be reduced by that portion of the
basis of any property which is attributable to
qualified rehabilitation expenditures (as defined in
section 47(c)(2)) or to the energy percentage of energy
property (as determined under section 48(a)), and
``(B) expenditures taken into account under either
section 47 or 48(a) shall not be taken into account
under this section.
``(c) Definitions.--For purposes of this section--
``(1) Eligible contractor.--The term `eligible contractor'
means the person who constructed the new energy efficient home,
or in the case of a manufactured home which conforms to Federal
Manufactured Home Construction and Safety Standards (24 C.F.R.
3280), the manufactured home producer of such home.
``(2) Energy efficient property.--The term `energy
efficient property' means any energy efficient building
envelope component, and any energy efficient heating or cooling
appliance.
``(3) Qualified new energy efficient home.--The term
`qualified new energy efficient home' means a dwelling--
``(A) located in the United States,
``(B) the construction of which is substantially
completed after December 31, 2000,
``(C) the original use of which is as a principal
residence (within the meaning of section 121) which
commences with the person who acquires such dwelling
from the eligible contractor, and
``(D) which is certified to have a level of annual
heating and cooling energy consumption that is at least
30 percent below the annual level of heating and
cooling energy consumption of a comparable dwelling
constructed in accordance with the standards of the
1998 International Energy Conservation Code.
``(4) Construction.--The term `construction' includes
reconstruction and rehabilitation.
``(5) Acquire.--The term `acquire' includes purchase and,
in the case of reconstruction and rehabilitation, such term
includes a binding written contract for such reconstruction or
rehabilitation.
``(6) Building envelope component.--The term `building
envelope component' means--
``(A) insulation material or system which is
specifically and primarily designed to reduce the heat
loss or gain of a dwelling when installed in or on such
dwelling, and
``(B) exterior windows (including skylights) and
doors.
``(7) Manufactured home included.--The term `dwelling'
includes a manufactured home conforming to Federal Manufactured
Home Construction and Safety Standards (24 C.F.R. 3280).
``(d) Certification.--
``(1) Method.--A certification described in subsection
(c)(3)(D) shall be determined on the basis of one of the
following methods:
``(A) The technical specifications or applicable
ratings (including product labeling requirements) for
the measurement of energy efficiency for the energy
efficient building envelope component or energy
efficient heating or cooling appliance, based upon
energy use or building envelope component performance.
``(B) An energy performance measurement method that
utilizes computer software approved by organizations
designated by the Secretary.
``(2) Provider.--Such certification shall be provided by--
``(A) in the case of a method described in
paragraph (1)(A), the eligible contractor, a local
building regulatory authority, a utility, a
manufactured home production inspection primary
inspection agency (IPIA), or an accredited home energy
rating systems provider who is accredited by, or
otherwise authorized to use, approved energy
performance measurement methods by the Home Energy
Ratings Systems Council or the National Association of
State Energy Officials, or
``(B) in the case of a method described in
paragraph (1)(B), an individual recognized by an
organization designated by the Secretary for such
purposes.
``(3) Form.--Such certification shall be made in writing in
a manner that specifies in readily verifiable fashion the
energy efficient building envelope components and energy
efficient heating or cooling appliances installed and their
respective energy efficiency levels, and in the case of a
method described in subparagraph (B) of paragraph (1),
accompanied by written analysis documenting the proper
application of a permissible energy performance measurement
method to the specific circumstances of such dwelling.
``(4) Regulations.--
``(A) In general.--In prescribing regulations under
this subsection for energy performance measurement
methods, the Secretary shall prescribe procedures for
calculating annual energy costs for heating and cooling
and cost savings and for the reporting of the results.
Such regulations shall--
``(i) be based on the National Home Energy
Rating Technical Guidelines of the National
Association of State Energy Officials, the Home
Energy Rating Guidelines of the Home Energy
Rating Systems Council, or the modified 1998
California Residential ACM manual,
``(ii) provide that any calculation
procedures be developed such that the same
energy efficiency measures allow a home to
qualify for the credit under this section
regardless of whether the house uses a gas or
oil furnace or boiler or an electric heat pump,
and
``(iii) require that any computer software
allow for the printing of the Federal tax forms
necessary for the credit under this section and
explanations for the homebuyer of the energy
efficient features that were used to comply
with the requirements of this section.
``(B) Providers.--For purposes of paragraph (2)(B),
the Secretary shall establish requirements for the
designation of individuals based on the requirements
for energy consultants and home energy raters specified
by the National Association of State Energy Officials.
``(e) Basis Adjustment.--For purposes of this subtitle, if a credit
is allowed under this section for any expenditure with respect to any
property, the increase in the basis of such property which would (but
for this subsection) result from such expenditure shall be reduced by
the amount of the credit so allowed.
``(f) Termination.--Subsection (a) shall apply to dwellings
purchased during the period beginning on January 1, 2001, and ending on
December 31, 2005.''
(b) Credit Made Part of General Business Credit.--Subsection (b) of
section 38 of such Code (relating to current year business credit) is
amended by striking ``plus'' at the end of paragraph (13), by striking
the period at the end of paragraph (14) and inserting ``, plus'', and
by adding at the end thereof the following new paragraph:
``(16) the new energy efficient home credit determined
under section 45G.''.
(c) Denial of Double Benefit.--Section 280C of such Code (relating
to certain expenses for which credits are allowable) is amended by
adding at the end thereof the following new subsection:
``(d) New Energy Efficient Home Expenses.--No deduction shall be
allowed for that portion of expenses for a new energy efficient home
otherwise allowable as a deduction for the taxable year which is equal
to the amount of the credit determined for such taxable year under
section 45G.''.
(d) Credit Allowed Against Regular and Minimum Tax.--
(1) In general.--Subsection (c) of section 38 of such Code
(relating to limitation based on amount of tax) is amended by
redesignating paragraph (3) as paragraph (4) and by inserting
after paragraph (2) the following new paragraph:
``(3) Special rules for new energy efficient home credit.--
``(A) In general.--In the case of the new energy
efficient home credit--
``(i) this section and section 39 shall be
applied separately with respect to the credit,
and
``(ii) in applying paragraph (1) to the
credit--
``(I) subparagraph (A) thereof
shall not apply, and
``(II) the limitation under
paragraph (1) (as modified by subclause
(I)) shall be reduced by the credit
allowed under subsection (a) for the
taxable year (other than the new energy
efficient home credit).
``(B) New energy efficient home credit.--For
purposes of this subsection, the term `new energy
efficient home credit' means the credit allowable under
subsection (a) by reason of section 45G.''.
(2) Conforming amendment.--Subclause (II) of section
38(c)(2)(A)(ii) of such Code is amended by inserting ``or the
new energy efficient home credit'' after ``employment credit''.
(e) Limitation on Carryback.--Subsection (d) of section 39 of such
Code is amended by adding at the end the following new paragraph:
``(11) No carryback of new energy efficient home credit
before effective date.--No portion of the unused business
credit for any taxable year which is attributable to the credit
determined under section 45G may be carried back to any taxable
year ending before the date of the enactment of section 45G.''.
(f) Deduction for Certain Unused Business Credits.--Subsection (c)
of section 196 of such Code is amended by striking ``and'' at the end
of paragraph (9), by striking the period at the end of paragraph (10)
and inserting ``, and'', and by adding after paragraph (10) the
following new paragraph:
``(11) the new energy efficient home credit determined
under section 45G.''.
(g) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such Code is amended by
inserting after the item relating to section 45F the following new
item:
``Sec. 45G. New energy efficient home
credit.''.
(h) Effective Date.--The amendments made by this section shall
apply to taxable years ending after December 31, 2000.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
Sponsor introductory remarks on measure. (CR E1568-1569)
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