II 

110TH CONGRESS 

1ST SESSION S. 822 

To amend the Internal Revenue Code of 1986 to improve and extend certain 

energy-related tax provisions, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 8, 2007 

Ms. SNOWE (for herself, Mrs. FEINSTEIN, Mr. KERRY, Mr. BUNNING, Mr. 

BINGAMAN, Mr. SALAZAR, Mr. COLEMAN, Mr. SMITH, Mr. ALLARD, and 

Mr. CORNYN) introduced the following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to improve 

and extend certain energy-related tax provisions, and 

for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; ETC. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘EXTEND the Energy Efficiency Incentives Act of 

6 2007’’. 

7 (b) AMENDMENT OF 1986 CODE.—Except as other8 wise expressly provided, whenever in this Act an amend9 ment or repeal is expressed in terms of an amendment 


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1 to, or repeal of, a section or other provision, the reference 

2 shall be considered to be made to a section or other provi3 sion of the Internal Revenue Code of 1986. 

4 (c) TABLE OF CONTENTS.—The table of contents of 

5 this Act is as follows: 

Sec. 1. Short title; etc. 

TITLE I—NON-BUSINESS ENERGY IMPROVEMENTS 

Sec. 101. Performance based energy improvements for non-business property. 

Sec. 102. Extension and modification of credit for nonbusiness energy property. 

Sec. 103. Modification of credit for solar electric property and solar hot water 

property. 

TITLE II—BUSINESS-RELATED ENERGY IMPROVEMENTS 

Sec. 201. Extension and modification of new energy efficient home credit. 

Sec. 202. Extension and modification of deduction for energy efficient commercial buildings. 

Sec. 203. Deduction for energy efficient low-rise buildings. 

Sec. 204. Energy efficient property deduction. 

Sec. 205. Extension of investment tax credit with respect to solar energy property and qualified fuel cell property. 

TITLE III—INCENTIVES FOR ENERGY SAVINGS CERTIFICATIONS 

Sec. 301. Credit for energy savings certifications. 

6 TITLE I—NON-BUSINESS 

7 ENERGY IMPROVEMENTS 

8 SEC. 101. PERFORMANCE BASED ENERGY IMPROVEMENTS 

9 FOR NON-BUSINESS PROPERTY. 

10 (a) IN GENERAL.—Subpart A of part IV of sub11 chapter A of chapter 1 is amended by inserting after sec12 tion 25D the following new section: 

13 ‘‘SEC. 25E. PERFORMANCE BASED ENERGY IMPROVE14 MENTS. 

15 ‘‘(a) IN GENERAL.—In the case of an individual, 

16 there shall be allowed as a credit against the tax imposed 


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1 by this chapter for the taxable year an amount equal to 

2 the amount of qualified energy efficiency expenditures 

3 paid or incurred by the taxpayer during the taxable year. 

4 ‘‘(b) LIMITATIONS.— 

5 ‘‘(1) IN GENERAL.—The amount allowed as a 

6 credit under subsection (a) shall not exceed the 

7 product of— 

8 ‘‘(A) the qualified energy savings achieved, 

9 and 

10 ‘‘(B) $4,000. 

11 ‘‘(2) MINIMUM AMOUNT OF QUALIFIED ENERGY

12 SAVINGS.—No credit shall be allowed under sub13 section (a) with respect to any principal residence 

14 which achieves a qualified energy savings of less 

15 than 20 percent. 

16 ‘‘(3) LIMITATION BASED ON AMOUNT OF

17 TAX.—In the case of taxable years to which section 

18 26(a)(2) does not apply, the credit allowed under 

19 subsection (a) for any taxable year shall not exceed 

20 the excess of— 

21 ‘‘(A) the sum of the regular tax liability 

22 (as defined in section 26(b)) plus the tax im23 posed by section 55, over 

24 ‘‘(B) the sum of the credit allowable under 

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1 tions 23, 24, and 25B) and section 27 for the 

2 taxable year. 

3 ‘‘(c) QUALIFIED ENERGY EFFICIENCY EXPENDI4 TURES.—For purposes of this section: 

5 ‘‘(1) IN GENERAL.—The term ‘qualified energy 

6 efficiency expenditures’ means any amount paid or 

7 incurred which is related to producing qualified en8 ergy savings in a principal residence of the taxpayer 

9 which is located in the United States. 

10 ‘‘(2) NO DOUBLE BENEFIT FOR CERTAIN EX11 PENDITURES.—The term ‘qualified energy efficiency 

12 expenditures’ shall not include any expenditure for 

13 which a deduction or credit is otherwise allowed to 

14 the taxpayer under this chapter. 

15 ‘‘(3) PRINCIPAL RESIDENCE.—The term ‘prin16 cipal residence’ has the same meaning as when used 

17 in section 121, except that— 

18 ‘‘(A) no ownership requirement shall be 

19 imposed, and 

20 ‘‘(B) the period for which a building is 

21 treated as used as a principal residence shall 

22 also include the 60-day period ending on the 1st 

23 day on which it would (but for this subpara24 graph) first be treated as used as a principal 

25 residence. 


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1 ‘‘(d) QUALIFIED ENERGY SAVINGS.—For purposes of 

2 this section— 

3 ‘‘(1) IN GENERAL.—The term ‘qualified energy 

4 savings’ means, with respect to any principal resi5 dence, the amount (measured as a percentage) by 

6 which— 

7 ‘‘(A) the annual energy use with respect to 

8 the principal residence after qualified energy ef9 ficiency expenditures are made, as certified 

10 under paragraph (2), is less than 

11 ‘‘(B) the annual energy use with respect to 

12 the principal residence before the qualified en13 ergy efficiency expenditures were made, as cer14 tified under paragraph (2). 

15 In determining annual energy use under subpara16 graph (B), any energy efficiency improvements 

17 which are not attributable to qualified energy effi18 ciency expenditures shall be disregarded. 

19 ‘‘(2) CERTIFICATION.— 

20 ‘‘(A) IN GENERAL.—The Secretary, in con21 sultation with the Secretary of Energy, shall 

22 prescribe the procedures and methods for the 

23 making of certifications under this paragraph 

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1 work (RESNET) Technical Guidelines in effect 

2 on the date of the enactment of this section. 

3 ‘‘(B) QUALIFIED INDIVIDUALS.—Any cer4 tification made under this paragraph may only 

5 be made by an individual who is recognized by 

6 an organization certified by the Secretary for 

7 such purposes. 

8 ‘‘(e) SPECIAL RULES.—For purposes of this section 

9 rules similar to the rules under paragraphs (4), (5), (6), 

10 (7), (8), and (9) of section 25D(e) and section 25C(e)(2) 

11 shall apply. 

12 ‘‘(f) BASIS ADJUSTMENTS.—For purposes of this 

13 subtitle, if a credit is allowed under this section with re14 spect to any expenditure with respect to any property, the 

15 increase in the basis of such property which would (but 

16 for this subsection) result from such expenditure shall be 

17 reduced by the amount of the credit so allowed. 

18 ‘‘(g) TERMINATION.—This section shall not apply 

19 with respect to any property placed in service after Decem20 ber 31, 2011.’’. 

21 (b) INTERIM GUIDANCE ON CERTIFICATION.— 

22 (1) IN GENERAL.—Not later than 90 days after 

23 the date of the enactment of this Act, the Secretary 

24 of the Treasury, in consultation with the Secretary 

25 of Energy, shall issue interim guidance on— 


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1 (A) the procedures and methods for mak2 ing certifications under sections 25E(d)(2)(A) 

3 and 179F(d)(2)(A) of the Internal Revenue 

4 Code of 1986, as added by subsection (a) and 

5 section 203, respectively; 

6 (B) the recognition of qualified individuals 

7 under sections 25E(d)(2)(B) and 

8 179F(d)(2)(B) of such Code for the purpose of 

9 making such certifications; and 

10 (C) how participation in State energy effi11 ciency programs can be used in the procedures 

12 and methods described in subparagraph (A). 

13 (2) CONSULTATION WITH STAKEHOLDERS.— 

14 (A) IN GENERAL.—The Secretary of the 

15 Treasury, in issuing guidance pursuant to para16 graph (1), shall consider comments from energy 

17 efficiency experts and other interested parties. 

18 (B) OTHER CONSIDERATIONS.—In the case 

19 of guidance issued pursuant to paragraph 

20 (1)(B), the Secretary of the Treasury shall also 

21 consider— 

22 (i) the Residential Energy Services 

23 Network Technical Guidelines and other 

24 pertinent guidelines for evaluating energy 

25 savings; 


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1 (ii) energy modeling software, includ2 ing software accredited through the Resi3 dential Energy Services Network; and 

4 (iii) quality assurance procedures of 

5 the Building Performance Institute, Home 

6 Performance through Energy Star, and the 

7 Residential Energy Services Network. 

8 (c) ALTERNATIVE CERTIFICATION METHODS.— 

9 (1) IN GENERAL.—The Secretary of the Treas10 ury shall establish a procedure for individuals and 

11 businesses to petition for the approval of alternative 

12 methods of certification under sections 25E(d)(2)(A) 

13 and 179F(d)(2)(A) of the Internal Revenue Code of 

14 1986, as added by subsection (a) and section 203, 

15 respectively. 

16 (2) DETERMINATION.—The Secretary of the 

17 Treasury shall make a determination on the ap18 proval or disapproval of such alternative methods of 

19 certification not later than 90 days after receiving a 

20 petition under paragraph (1). 

21 (d) CONFORMING AMENDMENTS.— 

22 (1) Section 26(a)(1) is amended by striking 

23 ‘‘and 25B’’ and inserting ‘‘25B, and 25E’’. 

24 (2) Section 1016(a) is amended by striking 

25 ‘‘and’’ at the end of paragraph (36), by striking the 


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1 period at the end of paragraph (37) and inserting ‘‘, 

2 and’’, and by adding at the end the following new 

3 paragraph: 

4 ‘‘(38) to the extent provided in section 

5 25E(f).’’. 

6 (3) The table of sections for subpart A of part 

7 IV of subchapter A chapter 1 is amended by insert8 ing after the item relating to section 25D the fol9 lowing new item: 

‘‘Sec. 25E. Performance based energy improvements.’’. 

10 (e) EFFECTIVE DATES.—The amendments made by 

11 this section shall apply to amounts paid or incurred in tax12 able years beginning after the date of the enactment of 

13 this Act. 

14 SEC. 102. EXTENSION AND MODIFICATION OF CREDIT FOR 

15 NONBUSINESS ENERGY PROPERTY. 

16 (a) EXTENSION.—Subsection (g) of section 25C (re17 lating to termination) is amended by striking ‘‘December 

18 31, 2007’’ and inserting ‘‘December 31, 2011’’. 

19 (b) LABOR COSTS FOR QUALIFIED ENERGY EFFI20 CIENCY IMPROVEMENTS.—Section 25C(c)(1) is amended 

21 by adding at the end the following new flush sentence: 

22 ‘‘The amount taken into account under subsection 

23 (a)(1) with respect to qualified energy efficiency im24 provements shall include expenditures for labor costs 

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1 bly, or original installation of any component de2 scribed in this paragraph.’’. 

3 (c) MODIFICATIONS FOR RESIDENTIAL ENERGY EF4 FICIENCY PROPERTY EXPENDITURES.— 

5 (1) INCREASED LIMITATION FOR OIL FURNACES

6 AND NATURAL GAS, PROPANE, AND OIL HOT WATER

7 BOILERS.— 

8 (A) IN GENERAL.—Subparagraphs (B) and 

9 (C) of section 25C(b)(3) are amended to read 

10 as follows: 

11 ‘‘(B) $150 for any qualified natural gas 

12 furnace or qualified propane furnace, and 

13 ‘‘(C) $300 for— 

14 ‘‘(i) any item of energy-efficient build15 ing property, and 

16 ‘‘(ii) any qualified oil furnace, quali17 fied natural gas hot water boiler, qualified 

18 propane hot water boiler, or qualified oil 

19 hot water boiler.’’. 

20 (B) CONFORMING AMENDMENT.—Clause 

21 (ii) of section 25C(d)(2)(A) is amended to read 

22 as follows: 

23 ‘‘(ii) any qualified natural gas fur24 nace, qualified propane furnace, qualified 

25 oil furnace, qualified natural gas hot water 


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1 boiler, qualified propane hot water boiler, 

2 or qualified oil hot water boiler, or’’. 

3 (2) MODIFICATIONS OF STANDARDS FOR EN4 ERGY-EFFICIENT BUILDING PROPERTY.— 

5 (A) ELECTRIC HEAT PUMPS.—Subpara6 graph (B) of section 25C(d)(3) is amended to 

7 read as follows: 

8 ‘‘(A) an electric heat pump which achieves 

9 the highest efficiency tier established by the 

10 Consortium for Energy Efficiency, as in effect 

11 on January 1, 2008.’’. 

12 (B) CENTRAL AIR CONDITIONERS.—Sec13 tion 25C(d)(3)(D) is amended by striking 

14 ‘‘2006’’ and inserting ‘‘2008’’. 

15 (C) WATER HEATERS.—Subparagraph (E) 

16 of section 25C(d) is amended to read as follows: 

17 ‘‘(E) a natural gas, propane, or oil water 

18 heater which has either an energy factor of at 

19 least 0.80 or a thermal efficiency of at least 90 

20 percent.’’. 

21 (D) OIL FURNACES AND HOT WATER BOIL22 ERS.—Paragraph (4) of section 25C(d) is 

23 amended to read as follows: 

24 ‘‘(4) QUALIFIED NATURAL GAS, PROPANE, AND

25 OIL FURNACES AND HOT WATER BOILERS.— 


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1 ‘‘(A) QUALIFIED NATURAL GAS FUR2 NACE.—The term ‘qualified natural gas fur3 nace’ means any natural gas furnace which 

4 achieves an annual fuel utilization efficiency 

5 rate of not less than 95. 

6 ‘‘(B) QUALIFIED NATURAL GAS HOT

7 WATER BOILER.—The term ‘qualified natural 

8 gas hot water boiler’ means any natural gas hot 

9 water boiler which achieves an annual fuel utili10 zation efficiency rate of not less than 90. 

11 ‘‘(C) QUALIFIED PROPANE FURNACE.— 

12 The term ‘qualified propane furnace’ means any 

13 propane furnace which achieves an annual fuel 

14 utilization efficiency rate of not less than 95. 

15 ‘‘(D) QUALIFIED PROPANE HOT WATER

16 BOILER.—The term ‘qualified propane hot 

17 water boiler’ means any propane hot water boil18 er which achieves an annual fuel utilization effi19 ciency rate of not less than 90. 

20 ‘‘(E) QUALIFIED OIL FURNACES.—The 

21 term ‘qualified oil furnace’ means any oil fur22 nace which achieves an annual fuel utilization 

23 efficiency rate of not less than 90. 

24 ‘‘(F) QUALIFIED OIL HOT WATER BOIL25 ER.—The term ‘qualified oil hot water boiler’ 


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1 means any oil hot water boiler which achieves 

2 an annual fuel utilization efficiency rate of not 

3 less than 90.’’. 

4 (3) ELIMINATION OF LIFETIME LIMITATION.— 

5 Paragraph (1) of section 25C(b) is amended by in6 serting ‘‘by reason of subsection (a)(1)’’ after 

7 ‘‘under this section’’. 

8 (d) MODIFICATION OF QUALIFIED ENERGY EFFI9 CIENCY IMPROVEMENTS.— 

10 (1) IN GENERAL.—Paragraph (1) of section 

11 25C(c) is amended by inserting ‘‘, or an asphalt roof 

12 with appropriate cooling granules,’’ before ‘‘which 

13 meet the Energy Star program requirements’’. 

14 (2) BUILDING ENVELOPE COMPONENT.—Sub15 paragraph (D) of section 25C(c)(2) is amended— 

16 (A) by inserting ‘‘or asphalt roof’’ after 

17 ‘‘metal roof’’, and 

18 (B) by inserting ‘‘or cooling granules’’ 

19 after ‘‘pigmented coatings’’. 

20 (e) NATURAL GAS FIRED HEAT PUMPS.—Section 

21 25C(d)(3), as amended by this section, is amended by 

22 striking ‘‘and’’ at the end of subparagraph (D), by strik23 ing the period at the end of subparagraph (E) and insert24 ing ‘‘, and’’, and by adding at the end the following new 

25 subparagraph: 


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1 ‘‘(F) a natural gas fired heat pump with a 

2 heating coefficient of performance (COP) of at 

3 least 1.1.’’. 

4 (f) ELIMINATION OF CREDIT FOR QUALIFIED EN5 ERGY EFFICIENCY IMPROVEMENTS IN 2010.— 

6 (1) IN GENERAL.—Subsection (a) of section 

7 25C is amended to read as follows: 

8 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in9 dividual, there shall be allowed as a credit against the tax 

10 imposed by this chapter for the taxable year an amount 

11 equal to the amount of residential energy property expend12 itures paid or incurred by the taxpayer during the taxable 

13 year.’’. 

14 (2) CONFORMING AMENDMENTS.— 

15 (A) Section 25C(b), as amended by sub16 section (b), is amended by striking paragraphs 

17 (1) and (2) and by redesignating paragraph (3) 

18 as paragraph (1). 

19 (B) Section 25C(b)(1), as redesignated by 

20 subparagraph (A), is amended by striking ‘‘by 

21 reason of subsection (a)(2)’’. 

22 (C) Section 25C is amended by striking 

23 subsection (c). 

24 (g) CLARIFICATION OF ELIGIBILITY OF STANDARDS

25 FOR QUALIFIED ENERGY PROPERTY.—Section 


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1 25C(d)(2)(C) is amended by striking ‘‘and’’ at the end of 

2 clause (i), by striking the period at the end of clause (ii) 

3 and inserting ‘‘, and’’, and by adding at the end the fol4 lowing new clause: 

5 ‘‘(iii) shall allow for the testing of 

6 products regardless of the size or capacity 

7 of the product.’’. 

8 (h) EFFECTIVE DATES.— 

9 (1) IN GENERAL.—Except as provided in para10 graphs (2) and (3), the amendments made by this 

11 section shall apply to property placed in service after 

12 the date of the enactment of this Act. 

13 (2) STANDARDS FOR ELECTRIC HEAT PUMPS

14 AND CENTRAL AIR CONDITIONERS.—The amend15 ments made by subparagraphs (A) and (B) sub16 section (c)(2) shall apply to property placed in serv17 ice after December 31, 2007. 

18 (3) ELIMINATION OF CREDIT FOR QUALIFIED

19 ENERGY EFFICIENCY IMPROVEMENTS.—The amend20 ments made by subsection (f) shall apply to property 

21 placed in service after December 31, 2009. 


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1 SEC. 103. MODIFICATION OF CREDIT FOR SOLAR ELECTRIC 

2 PROPERTY AND SOLAR HOT WATER PROP3 ERTY. 

4 (a) IN GENERAL.—Subsection (a) of section 25D (re5 lating to allowance of credit) is amended by striking para6 graphs (1) and (2) and inserting the following: 

7 ‘‘(1) 100 percent of the qualified solar electric 

8 property expenditures made by the taxpayer during 

9 such year, 

10 ‘‘(2) 100 percent of the qualified solar hot 

11 water property expenditures made by the taxpayer 

12 during such year, and’’. 

13 (b) LIMITATIONS.— 

14 (1) IN GENERAL.—Paragraph (1) of section 

15 25D(b) is amended by striking subparagraphs (A) 

16 and (B) and inserting the following: 

17 ‘‘(A) $2 with respect to each peak watt of 

18 capacity of qualified solar electric property for 

19 which qualified solar electric property expendi20 tures are made, 

21 ‘‘(B) in the case of qualified solar water 

22 heating property expenditures, an amount equal 

23 to— 

24 ‘‘(i) in the case of a dwelling unit 

25 which uses electricity to heat water, $0.35 

26 with respect to each kilowatt per year of 


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1 savings of qualified solar hot water prop2 erty for which qualified solar water heating 

3 property expenditures are made, or 

4 ‘‘(ii) in the case of a dwelling unit 

5 which uses natural gas to heat water, $7 

6 with respect to each annual Therm of nat7 ural gas savings of qualified solar hot 

8 water property for which qualified solar 

9 water heating property expenditures are 

10 made, and’’. 

11 (2) DETERMINATION OF SAVINGS.—Paragraph 

12 (1) of section 25D(b) is amended by adding at the 

13 end the following new flush sentence: 

14 ‘‘For purposes of subparagraph (B), savings shall be 

15 determined under regulations prescribed by the Sec16 retary based on the OG–300 Standard for the An17 nual Performance of OG–300 Certified Systems of 

18 the Solar Rating and Certification Corporation.’’. 

19 (c) DEFINITIONS.— 

20 (1) IN GENERAL.—Section 25D(d) is amend21 ed— 

22 (A) by redesignating paragraph (3) as 

23 paragraph (5), and 

24 (B) by striking paragraphs (1) and (2) and 

25 inserting the following: 


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1 ‘‘(1) QUALIFIED SOLAR ELECTRIC PROPERTY

2 EXPENDITURES.—The term ‘qualified solar electric 

3 property expenditures’ means any amount paid or 

4 incurred for qualified solar electric property. 

5 ‘‘(2) QUALIFIED SOLAR ELECTRIC PROPERTY.— 

6 The term ‘qualified solar electric property’ means 

7 solar electric property (as defined in section 

8 179G(c)(2)(B)) installed on or in connection with a 

9 dwelling unit located in the United States and used 

10 as a residence by the taxpayer. 

11 ‘‘(3) QUALIFIED SOLAR WATER HEATING PROP12 ERTY EXPENDITURES.—The term ‘qualified solar 

13 water heating property expenditures’ means any 

14 amount paid or incurred for qualified solar hot 

15 water property. 

16 ‘‘(4) QUALIFIED SOLAR HOT WATER PROP17 ERTY.—The term ‘qualified solar hot water property’ 

18 means solar hot water property (as defined in sec19 tion 179G(c)(2)(C)) installed on or in connection 

20 with a dwelling unit located in the United States 

21 and used as a residence by the taxpayer.’’. 

22 (2) CONFORMING AMENDMENTS.— 

23 (A) Section 25D(e)(2) is amended by strik24 ing ‘‘property described in paragraph (1) and 

25 (2) of subsection (d)’’ and inserting ‘‘qualified 


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1 solar electric property or qualified solar hot 

2 water property’’. 

3 (B) Section 25D(e)(4)(C) is amended by 

4 striking ‘‘paragraphs (1), (2), and (3)’’ and in5 serting ‘‘paragraphs (1),(3), and (5)’’. 

6 (d) DOLLAR AMOUNTS IN CASE OF JOINT OCCU7 PANCY.—Clauses (i) and (ii) of section 25D(e)(4)(A) are 

8 amended to read as follows: 

9 ‘‘(i) $2 in the case of each peak watt 

10 of capacity of qualified solar electric prop11 erty for which qualified solar electric prop12 erty expenditures are made, 

13 ‘‘(ii) in the case of qualified solar 

14 water heating property expenditures, an 

15 amount equal to— 

16 ‘‘(I) in the case of a dwelling unit 

17 which uses electricity to heat water, 

18 $0.35 with respect to each kilowatt 

19 per year of savings of qualified solar 

20 hot water property for which qualified 

21 solar water heating property expendi22 tures are made, or 

23 ‘‘(II) in the case of a dwelling 

24 unit which uses natural gas to heat 

25 water, $7 with respect to each annual 


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1 Therm of natural gas savings of quali2 fied solar hot water property for 

3 which qualified solar water heating 

4 property expenditures are made, and’’. 

5 (e) EXTENSION OF CREDIT.—Subsection (g) of sec6 tion 25D is amended by striking ‘‘2007’’ and inserting 

7 ‘‘2010’’. 

8 (f) EFFECTIVE DATE.—The amendments made by 

9 this section shall apply to property placed in service after 

10 the date of the enactment of this Act. 

11 TITLE II—BUSINESS-RELATED 

12 ENERGY IMPROVEMENTS 

13 SEC. 201. EXTENSION AND MODIFICATION OF NEW ENERGY 

14 EFFICIENT HOME CREDIT. 

15 (a) EXTENSION.—Subsection (g) of section 45L (re16 lating to termination), as amended by section 205 of divi17 sion A of the Tax Relief and Health Care Act of 2006, 

18 is amended by striking ‘‘December 31, 2008’’ and insert19 ing ‘‘December 31, 2011’’. 

20 (b) MODIFICATION.— 

21 (1) IN GENERAL.—Subparagraph (B) of section 

22 45L(a)(1) is amended to read as follows: 

23 ‘‘(B)(i) acquired by a person from such eli24 gible contractor and used by any person as a 

25 residence during the taxable year, or 


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1 ‘‘(ii) used by such eligible contractor as a 

2 residence during the taxable year.’’. 

3 (2) EFFECTIVE DATE.—The amendments made 

4 by this subsection shall take effect as if included in 

5 section 1332 of the Energy Policy Act of 2005. 

6 SEC. 202. EXTENSION AND MODIFICATION OF DEDUCTION 

7 FOR ENERGY EFFICIENT COMMERCIAL 

8 BUILDINGS. 

9 (a) EXTENSION.—Subsection (h) of section 179D 

10 (relating to termination) is amended to read as follows: 

11 ‘‘(h) TERMINATION.—This section shall not apply 

12 with respect to property— 

13 ‘‘(1) which is certified under subsection (d)(6) 

14 after December 31, 2012, or 

15 ‘‘(2) which is placed in service after December 

16 31, 2014. 

17 A provisional certification shall be treated as meeting the 

18 requirements of paragraph (1) if it is based on the build19 ing plans, subject to inspection and testing after installa20 tion.’’. 

21 (b) INCREASE IN MAXIMUM AMOUNT OF DEDUC22 TION.— 

23 (1) IN GENERAL.—Subparagraph (A) of section 

24 179D(b)(1) is amended by striking ‘‘$1.80’’ and in25 serting ‘‘$2.25’’. 


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1 (2) PARTIAL ALLOWANCE.—Paragraph (1) of 

2 section 179D(d) is amended— 

3 (A) by striking ‘‘$.60’’ and inserting 

4 ‘‘$0.75’’, and 

5 (B) by striking ‘‘$1.80’’ and inserting 

6 ‘‘$2.25’’. 

7 (c) MODIFICATIONS TO CERTAIN SPECIAL RULES.— 

8 (1) METHODS OF CALCULATING ENERGY SAV9 INGS.— 

10 (A) IN GENERAL.—Paragraph (2) of sec11 tion 179D(d) is amended— 

12 (i) by striking ‘‘based on’’ and insert13 ing ‘‘in accordance with’’, 

14 (ii) by inserting ‘‘, except as necessary 

15 to carry out the requirements of this sec16 tion, to accommodate a reference to Stand17 ard 90.1-2001, to extend the applicability 

18 of such manual to national conditions, or 

19 to update technical standards based on 

20 new information’’ before the period at the 

21 end, and 

22 (iii) by adding at the end the fol23 lowing new sentence: ‘‘The calculation 

24 methods contained in such regulations 

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1 propriate energy savings for design meth2 ods and technologies not otherwise credited 

3 in such manual or standard, including en4 ergy savings associated with natural ven5 tilation, evaporative cooling, automatic 

6 lighting controls (such as occupancy sen7 sors, photocells, and timeclocks), 

8 daylighting, designs utilizing semi-condi9 tioned spaces which maintain adequate 

10 comfort conditions without air conditioning 

11 or without heating, improved fan system 

12 efficiency (including reductions in static 

13 pressure), advanced unloading mechanisms 

14 for mechanical cooling (such as multiple or 

15 variable speed compressors), on-site gen16 eration of electricity (including combined 

17 heat and power systems, fuel cells, and re18 newable energy generation such as solar 

19 energy), and wiring with lower energy 

20 losses than wiring satisfying Standard 

21 90.1-2001 requirements for building power 

22 distribution systems.’’. 

23 (B) REQUIREMENTS FOR COMPUTER SOFT24 WARE USED IN CALCULATING ENERGY AND

25 POWER CONSUMPTION COSTS.—Paragraph 


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1 (3)(B) of section 179D(d) is amended by strik2 ing ‘‘and’’ at the end of clause (ii), by striking 

3 the period at the end of clause (iii) and insert4 ing ‘‘, and’’, and by adding at the end the fol5 lowing: 

6 ‘‘(iv) which automatically— 

7 ‘‘(I) generates the features, en8 ergy use, and energy and power con9 sumption costs of a reference building 

10 which meets Standard 90.1–2001, 

11 ‘‘(II) generates the features, en12 ergy use, and energy and power con13 sumption costs of a compliant build14 ing or system which reduces the an15 nual energy and power costs by 50 

16 percent compared to Standard 90.1– 

17 2001, and 

18 ‘‘(III) compares such features, 

19 energy use, and consumption costs to 

20 the features, energy use, and con21 sumption costs of the building or sys22 tem with respect to which the calcula23 tion is being made.’’. 


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1 (2) TARGETS FOR PARTIAL ALLOWANCE OF

2 CREDIT.—Paragraph (1)(B) of section 179D(d) is 

3 amended— 

4 (A) by striking ‘‘The Secretary’’ and in5 serting the following: 

6 ‘‘(i) IN GENERAL.—The Secretary’’, 

7 and 

8 (B) by adding at the end the following: 

9 ‘‘(ii) ADDITIONAL REQUIREMENTS.— 

10 For purposes of clause (i)— 

11 ‘‘(I) the Secretary shall deter12 mine prescriptive criteria that can be 

13 modeled explicitly for reference build14 ings which meet the requirements of 

15 subsection (c)(1)(D) for different 

16 building types and regions, 

17 ‘‘(II) a system may be certified 

18 as meeting the target under subpara19 graph (A)(ii) if the appropriate ref20 erence building either meets the re21 quirements of subsection (c)(1)(D) 

22 with such system rather than the 

23 comparable reference system (using 

24 the calculation under paragraph (2)) 


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1 or meets the relevant prescriptive cri2 teria under subclause (I), and 

3 ‘‘(III) the lighting system target 

4 shall be based on lighting power den5 sity, except that it shall allow lighting 

6 controls credits that trade off for 

7 lighting power density savings based 

8 on Section 3.2.2 of the 2005 Cali9 fornia Nonresidential Alternative Cal10 culation Method Approval Manual. 

11 ‘‘(iii) PUBLICATION.—The Secretary 

12 shall publish in the Federal Register the 

13 bases for the target levels established in 

14 the regulations under clause (i).’’. 

15 (d) ALTERNATIVE STANDARDS.—Section 179D(d) is 

16 amended by adding at the end the following new para17 graph: 

18 ‘‘(7) ALTERNATIVE STANDARDS PENDING

19 FINAL REGULATIONS.—Until such time as the Sec20 retary issues final regulations under paragraph 

21 (1)(B)— 

22 ‘‘(A) in the case of property which is part 

23 of a building envelope, the building envelope 

24 system target under paragraph (1)(A)(ii) shall 

25 be a 7 percent reduction in total annual energy 


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1 and power costs (determined in the same man2 ner as under subsection (c)(1)(D)), and 

3 ‘‘(B) in the case of property which is part 

4 of the heating, cooling, ventilation, and hot 

5 water systems, the heating, cooling, ventilation, 

6 and hot water system shall be treated as meet7 ing the target under paragraph (1)(A)(ii) if it 

8 would meet the requirement in subsection 

9 (c)(1)(D) if combined with a building envelope 

10 system and lighting system which met their re11 spective targets under paragraph(1)(A)(ii) (in12 cluding interim targets in effect under sub13 sections (f) and subparagraph (A)).’’. 

14 (e) MODIFICATIONS TO LIGHTING STANDARDS.— 

15 (1) STANDARDS TO BE ALTERNATE STAND16 ARDS.—Subsection (f) of section 179D is amended 

17 by— 

18 (A) striking ‘‘INTERIM’’ in the heading and 

19 inserting ‘‘ALTERNATIVE’’, and 

20 (B) inserting ‘‘, or, if the taxpayer elects, 

21 in lieu of the target set forth in such final regu22 lations’’ after ‘‘lighting system’’ at the end of 

23 the matter preceding paragraph (1). 

24 (2) QUALIFIED INDIVIDUALS.—Section 

25 179D(d)(6)(C) is amended by adding at the end the 


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1 following: ‘‘For purposes of certification of whether 

2 the alternative target for lighting systems under 

3 subsection (f) is met, individuals qualified to deter4 mine compliance shall include individuals who are 

5 certified as Lighting Certified (LC) by the National 

6 Council on Qualifications for the Lighting Profes7 sions, Certified Energy Managers (CEM) by the As8 sociation of Energy Engineers, and LEED Accred9 ited Professionals (AP) by the U.S. Green Buildings 

10 Council.’’. 

11 (3) REQUIREMENT FOR BILEVEL SWITCHING.— 

12 Section 179D(f)(2) is amended by adding at the end 

13 the following new subparagraph: 

14 ‘‘(3) APPLICATION OF SUBSECTION TO BILEVEL

15 SWITCHING.— 

16 ‘‘(A) IN GENERAL.—Notwithstanding para17 graph (2)(C)(i), this subsection shall apply to a 

18 system which does not include provisions for 

19 bilevel switching if the reduction in lighting 

20 power density is at least 37.5 percent of the 

21 minimum requirements in Table 9.3.1.1 or 

22 Table 9.3.1.2. (not including additional interior 

23 lighting allowances) of Standard 90.1–2001. 

24 ‘‘(B) REDUCTION IN DEDUCTION.—In the 

25 case of a system to which this subsection apVerDate Aug 31 2005 22:16 Mar 10, 2007 Jkt 059196 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\S822.IS S822

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1 plies by reason of subparagraph (A), paragraph 

2 (2) shall be applied— 

3 ‘‘(i) by substituting ‘50 percent’ for 

4 ‘40 percent’ in subparagraph (A) thereof, 

5 and 

6 ‘‘(ii) in subparagraph (B)(ii) there7 of— 

8 ‘‘(I) by substituting ‘37.5 per9 centage points’ for ‘25 percentage 

10 points’, and 

11 ‘‘(II) by substituting ‘12.5’ for 

12 ‘15’.’’. 

13 (f) PUBLIC PROPERTY.—Paragraph (4) of section 

14 179(d) is amended by striking ‘‘the Secretary shall pro15 mulgate a regulation to allow the allocation of the deduc16 tion’’ and inserting ‘‘the deduction under this section shall 

17 be allowed’’. 

18 (g) EFFECTIVE DATE.—The amendments made by 

19 this section shall apply to property placed in service in 

20 taxable years beginning after the date of the enactment 

21 of this Act. 

22 SEC. 203. DEDUCTION FOR ENERGY EFFICIENT LOW-RISE 

23 BUILDINGS. 

24 (a) IN GENERAL.—Part VI of subchapter B of chap25 ter 1, as amended by section 404 of division A of the Tax 


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1 Relief and Health Care Act of 2006, is amended by insert2 ing after section 179E the following new section: 

3 ‘‘SEC. 179F. ENERGY EFFICIENT LOW-RISE BUILDINGS DE4 DUCTION. 

5 ‘‘(a) IN GENERAL.—There shall be allowed as a de6 duction an amount equal to the amount of qualified energy 

7 efficiency expenditures paid or incurred by the taxpayer 

8 during the taxable year. 

9 ‘‘(b) LIMITATIONS.— 

10 ‘‘(1) IN GENERAL.—The amount allowed as a 

11 credit under subsection (a) with respect to any 

12 dwelling unit shall not exceed the product of— 

13 ‘‘(A) the qualified energy savings achieved, 

14 and 

15 ‘‘(B) $12,000. 

16 ‘‘(2) MINIMUM AMOUNT OF QUALIFIED ENERGY

17 SAVINGS.—No credit shall be allowed under sub18 section (a) with respect to any dwelling unit in a 

19 qualified low-rise building which achieves a qualified 

20 energy savings of less than 20 percent. 

21 ‘‘(c) QUALIFIED ENERGY EFFICIENCY EXPENDI22 TURES.—For purposes of this section— 

23 ‘‘(1) IN GENERAL.—The term ‘qualified energy 

24 efficiency expenditures’ means any amount paid or 

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1 ergy savings in any dwelling unit located in a quali2 fied low-rise building of the taxpayer which is lo3 cated in the United States. 

4 ‘‘(2) NO DOUBLE BENEFIT FOR CERTAIN EX5 PENDITURES.—The term ‘qualified energy efficiency 

6 expenditures’ shall not include any expenditure for 

7 any property for which a deduction has been allowed 

8 to the taxpayer under section 179F. 

9 ‘‘(3) QUALIFIED LOW-RISE BUILDING.—The 

10 term ‘qualified low-rise building’ means a building— 

11 ‘‘(A) with respect to which depreciation is 

12 allowable under section 167, 

13 ‘‘(B) which is used for multifamily hous14 ing, and 

15 ‘‘(C) which is not within the scope of 

16 Standard 90.1–2001 (as defined under section 

17 179D(c)(2)). 

18 ‘‘(d) QUALIFIED ENERGY SAVINGS.—For purposes of 

19 this section— 

20 ‘‘(1) IN GENERAL.—The term ‘qualified energy 

21 savings’ means, with respect to any dwelling unit in 

22 a qualified low-rise building, the amount (measured 

23 as a percentage) by which— 

24 ‘‘(A) the annual energy use with respect to 

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1 ciency expenditures are made, as certified under 

2 paragraph (2), is less than 

3 ‘‘(B) the annual energy use with respect to 

4 such dwelling unit before the qualified energy 

5 efficiency expenditures were made, as certified 

6 under paragraph (2). 

7 In determining annual energy use under subpara8 graph (B), any energy efficiency improvements 

9 which are not attributable to qualified energy effi10 ciency expenditures shall be disregarded. 

11 ‘‘(2) CERTIFICATION.— 

12 ‘‘(A) IN GENERAL.—The Secretary, in con13 sultation with the Secretary of Energy, shall 

14 prescribe the procedures and method for the 

15 making of certifications under this paragraph 

16 based on the Residential Energy Services Net17 work (RESNET) Technical Guidelines in effect 

18 on the date of the enactment of this Act. 

19 ‘‘(B) QUALIFIED INDIVIDUALS.—Any cer20 tification made under this paragraph may only 

21 be made by an individual who is recognized by 

22 an organization certified by the Secretary for 

23 such purposes. 


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1 ‘‘(e) SPECIAL RULES.—For purposes of this section, 

2 rules similar to the rules under paragraphs (8) and (9) 

3 of section 25D(e) shall apply. 

4 ‘‘(f) BASIS ADJUSTMENTS.—For purposes of this 

5 subtitle, if a credit is allowed under this section with re6 spect to any expenditure with respect to any property, the 

7 increase in the basis of such property which would (but 

8 for this subsection) result from such expenditure shall be 

9 reduced by the amount of the credit so allowed. 

10 ‘‘(g) TERMINATION.—This section shall not apply 

11 with respect to any property placed in service after Decem12 ber 31, 2011.’’. 

13 (b) CONFORMING AMENDMENTS.— 

14 (1) Section 263(a)(1), as amended by section 

15 404 of division A of the Tax Relief and Health Care 

16 Act of 2006, the is amended by striking ‘‘or’’ at the 

17 end of subparagraph (K), by striking the period at 

18 the end of subparagraph (L) and inserting ‘‘, or’’, 

19 and by inserting after subparagraph (L) the fol20 lowing new subparagraph: 

21 ‘‘(M) expenditures for which a deduction is 

22 allowed under section 179F.’’. 

23 (2) Section 312(k)(3)(B) is amended by strik24 ing ‘‘179, 179A, 179B, 179C, 179D, or 179E’’ each 

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1 ing ‘‘179, 179A, 179B, 179C, 179D, 179E, or 

2 179F’’. 

3 (3) Section 1016(a), as amended by section 

4 101, is amended by striking ‘‘and’’ at the end of 

5 paragraph (37), by striking the period at the end of 

6 paragraph (38) and inserting ‘‘, and’’, and by add7 ing at the end the following new paragraph: 

8 ‘‘(39) to the extent provided in section 

9 179F(f).’’. 

10 (4) Section 1245(a) is amended by inserting 

11 ‘‘179F,’’ after ‘‘179E,’’ both places it appears in 

12 paragraphs (2)(C) and (3)(C). 

13 (5) The table of sections for part VI of sub14 chapter B is amended by inserting after the item re15 lating to section 179E the following new item: 

‘‘Sec. 179F. Energy efficient low-rise buildings deduction.’’. 

16 (c) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to amounts paid or incurred in tax18 able years beginning after the date of the enactment of 

19 this Act. 

20 SEC. 204. ENERGY EFFICIENT PROPERTY DEDUCTION. 

21 (a) IN GENERAL.—Part VI of subchapter B of chap22 ter 1, as amended by section 203, is amended by inserting 

23 after section 179F the following new section: 


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1 ‘‘SEC. 179G. ENERGY EFFICIENT PROPERTY. 

2 ‘‘(a) ALLOWANCE OF DEDUCTION.—There shall be 

3 allowed as a deduction an amount equal to the energy effi4 cient property expenditures paid or incurred by the tax5 payer during the taxable year. 

6 ‘‘(b) LIMITATION.—The amount of the deduction al7 lowed under subsection (a) for any taxable years shall not 

8 exceed— 

9 ‘‘(1) $150 for any advanced main air circu10 lating fan, 

11 ‘‘(2) $450 for any qualified natural gas furnace 

12 or qualified propane furnace, 

13 ‘‘(3) $900 for— 

14 ‘‘(A) any item of energy-efficient building 

15 property, and 

16 ‘‘(B) any qualified oil furnace, qualified 

17 natural gas hot water boiler, qualified propane 

18 hot water boiler, or qualified oil hot water boil19 er, 

20 ‘‘(4) $9 with respect to each peak watt of ca21 pacity of solar electric property, 

22 ‘‘(5) in the case of solar hot water property, an 

23 amount equal to— 

24 ‘‘(A) in the case of a dwelling unit which 

25 uses electricity to heat water, $1 with respect to 


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1 each kilowatt per year of savings of such solar 

2 hot water property, or 

3 ‘‘(B) in the case of a dwelling unit which 

4 uses natural gas to heat water, $21 with re5 spect to each annual Therm of natural gas sav6 ings of such solar hot water property. 

7 For purposes of paragraph (5), savings shall be deter8 mined under regulations prescribed by the Secretary based 

9 on the OG–300 Standard for the Annual Performance of 

10 OG–300 Certified Systems of the Solar Rating and Cer11 tification Corporation. 

12 ‘‘(c) ENERGY EFFICIENT PROPERTY EXPENDI13 TURES.—For purposes of this section— 

14 ‘‘(1) IN GENERAL.—The term ‘energy efficient 

15 property expenditures’ means expenditures paid by 

16 the taxpayer for qualified energy property which is— 

17 ‘‘(A) of a character subject to the allow18 ance for depreciation, and 

19 ‘‘(B) originally placed in service by the tax20 payer. 

21 ‘‘(2) QUALIFIED ENERGY PROPERTY.— 

22 ‘‘(A) IN GENERAL.—The term ‘qualified 

23 energy property’ has the meaning given such 

24 term by section 25C(d)(2), except that such 


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1 term shall include solar electric property and 

2 solar hot water property. 

3 ‘‘(B) SOLAR ELECTRIC PROPERTY.—The 

4 term ‘solar electric property’ means property 

5 which uses solar energy to generate electricity. 

6 ‘‘(C) SOLAR HOT WATER PROPERTY.—The 

7 term ‘solar hot water property’ means property 

8 used to heat water if at least half of the energy 

9 used by such property for such purpose is de10 rived from the sun. 

11 ‘‘(d) BASIS ADJUSTMENTS.—For purposes of this 

12 subtitle, if a credit is allowed under this section with re13 spect to any expenditure with respect to any property, the 

14 increase in the basis of such property which would (but 

15 for this subsection) result from such expenditure shall be 

16 reduced by the amount of the credit so allowed. 

17 ‘‘(e) TERMINATION.—This section shall not apply 

18 with respect to any property placed in service after Decem19 ber 31, 2010.’’. 

20 (b) NO DOUBLE BENEFIT.—Section 179D(c) is 

21 amended by adding at the end the following new para22 graph: 

23 ‘‘(3) CERTAIN PROPERTY EXCLUDED.—The 

24 term ‘energy efficient commercial building property’ 

25 does not include any property with respect to which 


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•S 822 IS

1 a credit has been allowed to the taxpayer under sec2 tion 179G.’’. 

3 (c) CONFORMING AMENDMENTS.— 

4 (1) Section 263(a)(1), as amended by section 

5 203, is amended by striking ‘‘or’’ at the end of sub6 paragraph (K), by striking the period at the end of 

7 subparagraph (L) and inserting ‘‘, or’’, and by in8 serting after subparagraph (L) the following new 

9 subparagraph: 

10 ‘‘(M) expenditures for which a deduction is 

11 allowed under section 179G.’’. 

12 (2) Section 312(k)(3)(B), as amended by sec13 tion 203, is amended by striking ‘‘179, 179A, 179B, 

14 179C, 179D, 179E, or 179F’’ each place it appears 

15 in the heading and text and inserting ‘‘179, 179A, 

16 179B, 179C, 179D, 179E, 179F, or 179G’’. 

17 (3) Section 1016(a), as amended by section 

18 203, is amended by striking ‘‘and’’ at the end of 

19 paragraph (38), by striking the period at the end of 

20 paragraph (39) and inserting ‘‘, and’’, and by add21 ing at the end the following new paragraph: 

22 ‘‘(40) to the extent provided in section 

23 179G(e).’’. 


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1 (4) Section 1245(a), as amended by section 203 

2 is amended by inserting ‘‘179G,’’ after ‘‘179F,’’ both 

3 places it appears in paragraphs (2)(C) and (3)(C). 

4 (5) The table of sections for part VI of sub5 chapter B is amended by inserting after the item re6 lating to section 179F the following new item: 

‘‘Sec. 179G. Energy efficient property.’’. 

7 (d) EFFECTIVE DATE.—The amendments made by 

8 this section shall apply to property placed in service in 

9 taxable years beginning after the date of the enactment 

10 of this Act. 

11 SEC. 205. EXTENSION OF INVESTMENT TAX CREDIT WITH 

12 RESPECT TO SOLAR ENERGY PROPERTY AND 

13 QUALIFIED FUEL CELL PROPERTY. 

14 (a) SOLAR ENERGY PROPERTY.—Paragraphs 

15 (2)(A)(i)(II) and (3)(A)(ii) of section 48(a), as amended 

16 by section 207 of division A of the Tax Relief and Health 

17 Care Act of 2006, are each amended by striking ‘‘2009’’ 

18 and inserting ‘‘2012’’. 

19 (b) ELIGIBLE FUEL CELL PROPERTY.—Paragraph 

20 (1)(E) of section 48(c), as so amended, is amended by 

21 striking ‘‘2008’’ and inserting ‘‘2011’’. 


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1 TITLE III—INCENTIVES FOR EN2 ERGY SAVINGS CERTIFI3 CATIONS 

4 SEC. 301. CREDIT FOR ENERGY SAVINGS CERTIFICATIONS. 

5 (a) IN GENERAL.—Subpart D of part IV of sub6 chapter A of chapter 1, as amended by section 405 of divi7 sion A of the Tax Relief and Health Care Act of 2006, 

8 is amended by adding at the end the following new section: 

9 ‘‘SEC. 45O. ENERGY SAVINGS CERTIFICATION CREDIT. 

10 ‘‘(a) IN GENERAL.—For purposes of section 38, the 

11 energy savings certification credit determined under this 

12 section for any taxable year is an amount equal to the 

13 sum of— 

14 ‘‘(1) the qualified training and certification 

15 costs paid or incurred by the taxpayer which may be 

16 taken into account for such taxable year, plus 

17 ‘‘(2) the qualified certification equipment ex18 penditures paid or incurred by the taxpayer which 

19 may be taken into account for such taxable year. 

20 ‘‘(b) QUALIFIED TRAINING AND CERTIFICATION

21 COSTS.— 

22 ‘‘(1) IN GENERAL.—The term ‘qualified train23 ing and certification costs’ means costs paid or in24 curred for training which is required for the tax25 payer or employees of the taxpayer to be certified by 


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•S 822 IS

1 the Secretary under section 25D(d)(2)(B) or 

2 179F(d)(2)(B) for the purpose of certifying energy 

3 savings. 

4 ‘‘(2) LIMITATION.—The qualified training and 

5 certification costs taken into account under sub6 section (a)(1) for the taxable year with respect to 

7 any individual shall not exceed $500 reduced by the 

8 amount of the credit allowed under subsection (a)(1) 

9 to the taxpayer (or any predecessor) with respect to 

10 such individual for all prior taxable years. 

11 ‘‘(3) YEAR COSTS TAKEN INTO ACCOUNT.— 

12 Qualified training and certifications costs with re13 spect to any individual shall not be taken into ac14 count under subsection (a)(1) before the taxable 

15 year in which the individual with respect to whom 

16 such costs are paid or incurred has performed 25 

17 certifications under sections 25E(d)(2)(A) and 

18 179F(d)(2)(A). 

19 ‘‘(c) QUALIFIED CERTIFICATION EQUIPMENT EX20 PENDITURES.— 

21 ‘‘(1) IN GENERAL.—The term ‘qualified train22 ing equipment expenditures’ means costs paid or in23 curred for— 

24 ‘‘(A) blower doors, 

25 ‘‘(B) duct leakage testing equipment, 


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1 ‘‘(C) flue gas combustion equipment, and 

2 ‘‘(D) digital manometers. 

3 ‘‘(2) LIMITATION.— 

4 ‘‘(A) IN GENERAL.—The qualified certifi5 cation equipment expenditures taken into ac6 count under subsection (a)(2) with respect to 

7 any taxpayer for any taxable year shall not ex8 ceed $1,000. 

9 ‘‘(B) LIMITATION ON INDIVIDUAL

10 ITEMS.—The qualified certification equipment 

11 expenditures taken into account under sub12 section (a)(2) shall not exceed— 

13 ‘‘(i) $500 with respect to any blower 

14 door or duct leakage testing equipment, 

15 and 

16 ‘‘(ii) $100 with respect to any flue gas 

17 combustion equipment or digital manom18 eter. 

19 ‘‘(3) YEAR EXPENDITURES TAKEN INTO AC20 COUNT.—The qualified certification equipment ex21 penditures of any taxpayer shall not be taken into 

22 account under subsection (a)(2) before the taxable 

23 year in which the taxpayer has performed 25 certifi24 cations under sections 25E(d)(2)(A) and 

25 179F(d)(2)(A). 


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1 ‘‘(d) SPECIAL RULES.— 

2 ‘‘(1) AGGREGATION RULES.—For purposes of 

3 this section, all persons treated as a single employer 

4 under subsections (a) and (b) of section 52 shall be 

5 treated as 1 person. 

6 ‘‘(2) BASIS REDUCTION.—The basis of any 

7 property shall be reduced by the portion of the cost 

8 of such property taken into account under sub9 section (a). 

10 ‘‘(3) DENIAL OF DOUBLE BENEFIT.— 

11 ‘‘(A) IN GENERAL.—No deduction shall be 

12 allowed for that portion of the expenses other13 wise allowable as a deduction for the taxable 

14 year which is equal to the amount taken into 

15 account under subsection (a) for such taxable 

16 year. 

17 ‘‘(B) AMOUNT PREVIOUSLY DEDUCTED.— 

18 No credit shall be allowed under subsection (a) 

19 with respect to any amount for which a deduc20 tion has been allowed in any preceding taxable 

21 year.’’. 

22 (b) CREDIT TREATED AS PART OF GENERAL BUSI23 NESS CREDIT.—Section 38(b) is amended by striking 

24 ‘‘plus’’ at the end of paragraph (30), by striking the period 


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•S 822 IS

1 at the end of paragraph (31) and inserting ‘‘plus’’, and 

2 by adding at the end the following new paragraph: 

3 ‘‘(32) the energy savings certification credit de4 termined under section 45O(a).’’. 

5 (c) CONFORMING AMENDMENTS.— 

6 (1) Section 1016(a), as amended by this Act, is 

7 amended by striking ‘‘and’’ at the end of paragraph 

8 (39), by striking the period at the end of paragraph 

9 (40) and inserting ‘‘and’’, and by adding at the end 

10 the following new paragraph: 

11 ‘‘(41) to the extent provided in section 

12 45O(d)(2).’’. 

13 (2) The table of sections for subpart D of part 

14 IV of subchapter A of chapter 1 is amended by in15 serting after the item relating to section 45N the 

16 following new item: 

‘‘Sec. 45O. Energy savings certification credit.’’. 

17 (d) EFFECTIVE DATE.—The amendments made by 

18 this section shall apply to amounts paid or incurred after 

19 the date of the enactment of this Act. 

Æ 


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