SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Next Generation Homes Act of 2008''.

SEC. 2. MODIFICATION OF NEW ENERGY EFFICIENT HOME CREDIT.

    (a) In General.--
            (1) Modification of credit amount.--Paragraph (2) of 
        section 45L(a) of the Internal Revenue Code of 1986 (relating 
        to applicable amount) is amended to read as follows:
            ``(2) Applicable amount.--For purposes of paragraph (1), 
        the applicable amount is an amount equal to--
                    ``(A) in the case of an Energy Star Home, $700,
                    ``(B) in the case of an Energy Plus Home, $2,000,
                    ``(C) in the case of an Energy Saver Home, $5,000, 
                and
                    ``(D) in the case of Zero Energy Home, $10,000.''.
            (2) Modification of energy saving requirement.--Subsection 
        (c) of section 45L of such Code is amended to read as follows:
    ``(c) Energy Savings Requirements.--
            ``(1) In general.--A dwelling unit meets the energy savings 
        requirements of this subsection if such unit is described in 
        paragraph (2).
            ``(2) Applicable dwelling units.--For purposes of this 
        section--
                    ``(A) Energy star home.--The term `Energy Star 
                Home' means a dwelling unit which meets the 
                requirements established by the Administrator of the 
                Environmental Agency under the Energy Star Labeled 
                Homes program.
                    ``(B) Energy plus home.--The term `Energy Plus 
                Home' means a dwelling unit which is certified under 
                the most recent Mortgage Industry National Home Energy 
                Rating Systems Standards as having a relative energy 
                use index value of more than 50, but not more than 70.
                    ``(C) Energy saver home.--The term `Energy Saver 
                Home' means a dwelling unit which meets the 
                requirements of subparagraph (B) applied by 
                substituting `0' for `50' and `50' for `70'.
                    ``(D) Zero energy home.--The term `Zero Energy 
                Home' means a dwelling unit which meets the 
                requirements of subparagraph (B) applied by 
                substituting `0' for `more than 50, but not more than 
                70'.''.
            (3) Modification of termination.--Subsection (g) of section 
        45L of such Code (relating to termination) is amended to read 
        as follows:
    ``(g) Termination.--This section shall not apply to any qualified 
new energy efficient home acquired after--
            ``(1) in the case of an Energy Star Home, December 31, 
        2011,
            ``(2) in the case of a Energy Star Home, December 31, 2013,
            ``(3) in the case of a Energy Plus Home, December 31, 2015, 
        and
            ``(4) in the case of a Zero Energy Home, December 31, 
        2018.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to new energy efficient homes acquired after December 31, 2008.

SEC. 3. ENERGY EFFICIENT HOME PURCHASE.

    (a) In General.--Part VII of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating additional itemized deductions 
for individuals) is amended by redesignating section 224 as section 225 
and by inserting after section 223 the following new section:

``SEC. 224. ENERGY EFFICIENT HOME PURCHASE DEDUCTION.

    ``(a) In General.--There shall be allowed as a deduction for the 
taxable year an amount equal to the difference of--
            ``(1) the amount paid or incurred by the taxpayer for the 
        taxable year in acquiring or constructing an energy efficient 
        dwelling unit, over
            ``(2) the acquisition or construction cost, as the case may 
        be, of a comparable dwelling unit.
    ``(b) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Energy efficient dwelling unit.--The term `energy 
        efficient dwelling unit' means any dwelling unit described in 
        section 45L(c)(2) which is used as the principal residence 
        (within the meaning of section 121) of the taxpayer during the 
        taxable year.
            ``(2) Cost of a comparable dwelling unit.--The Secretary 
        shall by regulation prescribe such methods for determining the 
        acquisition or construction cost of a comparable dwelling unit 
        as are necessary to carry out the purposes of this section.
            ``(3) Recapture.--The Secretary shall by regulation provide 
        for such recapture of the benefit of any deduction allowed 
        under subsection (a) as may be necessary to prevent abuse of 
        this section. Such rules shall provide exceptions to such 
        recapture as may be appropriate, including (if applicable) in 
        the case of a sale or exchange by reason of a change in place 
        of employment, health, or, to the extend provided in 
        regulations, unforseen circumstances.''.
    (b) Clerical Amendment.--The table of sections for part VII of 
subchapter B of chapter 1 of such Code is amended by striking the item 
relating to section 224 and inserting the following new items:

``Sec. 224. Energy efficient home purchase deduction.
``Sec. 225. Cross reference.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
Next Generation Homes Act of 2008 - Amends the Internal Revenue Code to: (1) increase the dollar limits on the new energy efficient home tax credit and revise the energy savings requirements for such credit; and (2) allow a new tax deduction for the purchase of an energy efficient principal residence.
To amend the Internal Revenue Code of 1986 to modify the new energy efficient home credit and to provide a credit against tax for the purchase of certain energy efficient homes.