A bill to amend the Internal Revenue Code of 1954 to provide that expenditures by homeowners for energy conservation shall be eligible for a 50 percent residential energy credit and for other reasons.

Amends the Internal Revenue Code to increase the residential energy credit from 15 to 50 percent of energy conservation expenditures not in excess of $2,000. Qualifies energy efficient replacement furnaces or boilers and wood burning stoves for the residential energy credit.

Allows an additional ten percent investment tax credit for small business investment in energy property. Includes "energy conservation expenditures" within the definition of energy property for purposes of the investment tax credit.