SECTION 1. CREDIT FOR ENERGY EFFICIENT APPLIANCES.

    (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 adding at the end the following new section:

``SEC. 45G. ENERGY EFFICIENT APPLIANCE CREDIT.

    ``(a) General Rule.--For purposes of section 38, the energy 
efficient appliance credit determined under this section for the 
taxable year is an amount equal to the applicable amount determined 
under subsection (b) with respect to the eligible production of 
qualified energy efficient appliances produced by the taxpayer during 
the calendar year ending with or within the taxable year.
    ``(b) Applicable Amount; Eligible Production.--For purposes of 
subsection (a)--
            ``(1) Applicable amount.--The applicable amount is--
                    ``(A) $50, in the case of--
                            ``(i) a clothes washer which is produced in 
                        2003 with at least a 1.26 MEF (at least 1.42 
                        MEF for washers produced after 2003 but not 
                        after 2006), or
                            ``(ii) a refrigerator produced in 2003 
                        which consumes at least 10 percent less kWh per 
                        year than the energy conservation standards for 
                        refrigerators promulgated by the Department of 
                        Energy effective July 1, 2001,
                    ``(B) $100, in the case of--
                            ``(i) a clothes washer which is produced in 
                        2003 with at least a 1.42 MEF (at least 1.5 MEF 
                        for washers produced after 2003 and before 
                        2008), or
                            ``(ii) a refrigerator produced after 2002 
                        and before 2007 which consumes at least 15 
                        percent less kWh per year (at least 20 percent 
                        less kWh per year for refrigerators produced in 
                        2007) than such energy conservation standards, 
                        and
                    ``(C) $150, in the case of a refrigerator which 
                consumes at least 20 percent less kWh per year than 
                such energy conservation standards and is produced 
                after 2002 and before 2007.
            ``(2) Eligible production.--
                    ``(A) In general.--The eligible production of each 
                category of qualified energy efficient appliances is 
                the excess of--
                            ``(i) the number of appliances in such 
                        category which are produced by the taxpayer 
                        during such calendar year, over
                            ``(ii) the average number of appliances in 
                        such category which were produced by the 
                        taxpayer during calendar years 2000, 2001, and 
                        2002.
                    ``(B) Categories.--For purposes of subparagraph 
                (A), the categories are--
                            ``(i) clothes washers described in 
                        paragraph (1)(A)(i),
                            ``(ii) clothes washers described in 
                        paragraph (1)(B)(i),
                            ``(iii) refrigerators described in 
                        paragraph (1)(A)(ii),
                            ``(iv) refrigerators described in paragraph 
                        (1)(B)(ii), and
                            ``(v) refrigerators described in paragraph 
                        (1)(C).
                    ``(C) Special rule for 2003 production.--For 
                purposes of determining eligible production for 
                calendar year 2003--
                            ``(i) only production after the date of 
                        enactment of this section shall be taken into 
                        account under subparagraph (A)(i), and
                            ``(ii) the amount taken into account under 
                        subparagraph (A)(ii) shall be an amount which 
                        bears the same ratio to the amount which would 
                        (but for this subparagraph) be taken into 
                        account under subparagraph (A)(ii) as--
                                    ``(I) the number of days in 
                                calendar year 2003 after the date of 
                                enactment of this section, bears to
                                    ``(II) 365.
    ``(c) Limitation on Maximum Credit.--
            ``(1) In general.--The maximum amount of credit allowed 
        under subsection (a) with respect to a taxpayer for all taxable 
        years shall be $60,000,000 except that not more than 
        $30,000,000 shall be allowed for production of any combination 
        of clothes washers produced with a 1.26 MEF (described in 
        subsection (b)(1)(A)(i)) and refrigerators described in 
        subsection (b)(1)(A)(ii).
            ``(2) Limitation based on gross receipts.--The credit 
        allowed under subsection (a) with respect to a taxpayer for the 
        taxable year shall not exceed an amount equal to 2 percent of 
        the average annual gross receipts of the taxpayer for the 3 
        taxable years preceding the taxable year in which the credit is 
        determined.
            ``(3) Gross receipts.--For purposes of this subsection, the 
        rules of paragraphs (2) and (3) of section 448(c) shall apply.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Qualified energy efficient appliance.--The term 
        `qualified energy efficient appliance' means--
                    ``(A) a clothes washer described in subparagraph 
                (A)(i) or (B)(i) of subsection (b)(1), or
                    ``(B) a refrigerator described in subparagraph 
                (A)(ii), (B)(ii) or (C) of subsection (b)(1).
            ``(2) Clothes washer.--The term `clothes washer' means a 
        residential clothes washer, including a residential style coin 
        operated washer.
            ``(3) Refrigerator.--The term `refrigerator' means an 
        automatic defrost refrigerator-freezer which has an internal 
        volume of at least 16.5 cubic feet.
            ``(4) MEF.--The term `MEF' means Modified Energy Factor (as 
        determined by the Secretary of Energy).
    ``(e) Special Rules.--
            ``(1) In general.--Rules similar to the rules of 
        subsections (c), (d), and (e) of section 52 shall apply for 
        purposes of this section.
            ``(2) Aggregation rules.--All persons treated as a single 
        employer under subsection (a) or (b) of section 52 or 
        subsection (m) or (o) of section 414 shall be treated as 1 
        person for purposes of subsection (a).
    ``(f) Verification.--The taxpayer shall submit such information or 
certification as the Secretary, in consultation with the Secretary of 
Energy, determines necessary to claim the credit amount under 
subsection (a).''.
    (b) Limitation on Carryback.--Section 39(d) of the Internal Revenue 
Code of 1986 (relating to transition rules) is amended by adding at the 
end the following new paragraph:
            ``(11) No carryback of energy efficient appliance credit 
        before effective date.--No portion of the unused business 
        credit for any taxable year which is attributable to the energy 
        efficient appliance credit determined under section 45G may be 
        carried to a taxable year ending before January 1, 2003.''.
    (c) Conforming Amendment.--Section 38(b) of the Internal Revenue 
Code of 1986 (relating to general business credit) is amended by 
striking ``plus'' at the end of paragraph (14), by striking the period 
at the end of paragraph (15) and inserting ``, plus'', and by adding at 
the end the following new paragraph:
            ``(16) the energy efficient appliance credit determined 
        under section 45G(a).''.
    (d) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new item:

                              ``Sec. 45G. Energy efficient appliance 
                                        credit.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to appliances produced after December 31, 2002, in taxable years 
ending after such date.
Amends the Internal Revenue Code to establish a limited energy efficient appliance credit for the eligible production of qualified energy efficient appliances produced by a taxpayer.
To amend the Internal Revenue Code of 1986 to allow for an energy efficient appliance credit.