I

106TH CONGRESS

2D SESSION H. R. 4977

To amend the Internal Revenue Code of 1986 to provide a credit against

tax for energy efficient appliances.

IN THE HOUSE OF REPRESENTATIVES

JULY 26, 2000

Mr. NUSSLE (for himself, Mr. TANNER, Mr. CAMP, Mr. MATSUI, Mr. CARDIN,

Mr. LEWIS of Georgia, Mr. BOSWELL, Mr. GANSKE, Mr. GILLMOR, Mr.

HUTCHINSON, Mr. LATHAM, Mr. LEACH, Mr. MARKEY, Mr. REGULA, Mr.

SNYDER, and Mr. UPTON) 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

a credit against tax for energy efficient appliances.

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.

4 This Act may be cited as the ‘‘Resource Efficient Ap5 pliance Incentives Act’’.

6 SEC. 2. TAX CREDIT FOR ENERGY EFFICIENT APPLIANCES.

7 (a) IN GENERAL.—Subpart D of part IV of sub8 chapter A of chapter 1 of the Internal Revenue Code of
2

•HR 4977 IH

1 1986 (relating to business-related credits) is amended by

2 adding at the end the following new section:

3 ‘‘SEC. 45D. ENERGY EFFICIENT APPLIANCE CREDIT.

4 ‘‘(a) GENERAL RULE.—For purposes of section 38,

5 the energy efficient appliance credit determined under this

6 section for the taxable year is an amount equal to the ap7 plicable amount determined under subsection (b) with re8 spect to qualified energy efficient appliances produced by

9 the taxpayer during the calendar year ending with or with10 in the taxable year.

11 ‘‘(b) APPLICABLE AMOUNT.—For purposes of sub12 section (a), the applicable amount determined under this

13 subsection with respect to a taxpayer is the sum of—

14 ‘‘(1) in the case of an energy efficient clothes

15 washer described in subsection (d)(2)(A) or an en16 ergy efficient refrigerator described in subsection

17 (d)(3)(B)(i), an amount equal to—

18 ‘‘(A) $50, multiplied by

19 ‘‘(B) the number of such washers and re20 frigerators produced by the taxpayer during

21 such calendar year, and

22 ‘‘(2) in the case of an energy efficient clothes

23 washer described in subsection (d)(2)(B) or an en24 ergy efficient refrigerator described in subsection

25 (d)(3)(B)(ii), an amount equal to—
3

•HR 4977 IH

1 ‘‘(A) $100, multiplied by

2 ‘‘(B) the number of such washers and re3 frigerators produced by the taxpayer during

4 such calendar year.

5 ‘‘(c) LIMITATION ON MAXIMUM CREDIT.—

6 ‘‘(1) IN GENERAL.—The maximum amount of

7 credit allowed under subsection (a) with respect to

8 a taxpayer for all taxable years shall be—

9 ‘‘(A) $30,000,000 with respect to the cred10 it determined under subsection (b)(1), and

11 ‘‘(B) $30,000,000 with respect to the cred12 it determined under subsection (b)(2).

13 ‘‘(2) LIMITATION BASED ON GROSS RE14 CEIPTS.—The credit allowed under subsection (a)

15 with respect to a taxpayer for the taxable year shall

16 not exceed an amount equal to 2 percent of the aver17 age annual gross receipts of the taxpayer for the 3

18 taxable years preceding the taxable year in which

19 the credit is determined.

20 ‘‘(3) GROSS RECEIPTS.—For purposes of this

21 subsection, the rules of paragraphs (2) and (3) of

22 section 448(c) shall apply.

23 ‘‘(d) QUALIFIED ENERGY EFFICIENT APPLIANCE.—

24 For purposes of this section—
4

•HR 4977 IH

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

2 efficient appliance’ means—

3 ‘‘(A) an energy efficient clothes washer, or

4 ‘‘(B) an energy efficient refrigerator.

5 ‘‘(2) ENERGY EFFICIENT CLOTHES WASHER.—

6 The term ‘energy efficient clothes washer’ means a

7 residential clothes washer, including a residential

8 style coin operated washer, which is manufactured

9 with—

10 ‘‘(A) a 1.26 Modified Energy Factor (re11 ferred to in this paragraph as ‘MEF’) (as de12 termined by the Secretary of Energy), or

13 ‘‘(B) a 1.42 MEF (as determined by the

14 Secretary of Energy) (1.5 MEF for calendar

15 years beginning after 2004).

16 ‘‘(3) ENERGY EFFICIENT REFRIGERATOR.—The

17 term ‘energy efficient refrigerator’ means an auto18 matic defrost refrigerator-freezer which—

19 ‘‘(A) has an internal volume of at least

20 16.5 cubic feet, and

21 ‘‘(B) consumes—

22 ‘‘(i) 10 percent less kw/hr/yr than the

23 energy conservation standards promulgated

24 by the Department of Energy for such re25 frigerator for 2001, or
5

•HR 4977 IH

1 ‘‘(ii) 15 percent less kw/hr/yr than

2 such energy conservation standards.

3 ‘‘(e) SPECIAL RULES.—

4 ‘‘(1) IN GENERAL.—Rules similar to the rules

5 of subsections (c), (d), and (e) of section 52 shall

6 apply for purposes of this section.

7 ‘‘(2) AGGREGATION RULES.—All persons treat8 ed as a single employer under subsection (a) or (b)

9 of section 52 or subsection (m) or (o) of section 414

10 shall be treated as one person for purposes of sub11 section (a).

12 ‘‘(f) VERIFICATION.—The taxpayer shall submit such

13 information or certification as the Secretary, in consulta14 tion with the Secretary of Energy, determines necessary

15 to claim the credit amount under subsection (a).

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

17 ‘‘(1) with respect to energy efficient refrig18 erators described in subsection (d)(3)(B)(i) produced

19 in calendar years beginning after 2004, and

20 ‘‘(2) with respect to all other qualified energy

21 efficient appliances produced in calendar years be22 ginning after 2006.’’.

23 (b) LIMITATION ON CARRYBACK.—Section 39(d) of

24 the Internal Revenue Code of 1986 (relating to transition
6

•HR 4977 IH

1 rules) is amended by adding at the end the following new

2 paragraph:

3 ‘‘(9) NO CARRYBACK OF ENERGY EFFICIENT

4 APPLIANCE CREDIT BEFORE EFFECTIVE DATE.—No

5 portion of the unused business credit for any taxable

6 year which is attributable to the energy efficient ap7 pliance credit determined under section 45D may be

8 carried to a taxable year ending before the date of

9 the enactment of section 45D.’’.

10 (c) CONFORMING AMENDMENT.—Section 38(b) of

11 the Internal Revenue Code of 1986 (relating to general

12 business credit) is amended by striking ‘‘plus’’ at the end

13 of paragraph (11), by striking the period at the end of

14 paragraph (12) and inserting ‘‘, plus’’, and by adding at

15 the end the following new paragraph:

16 ‘‘(13) the energy efficient appliance credit de17 termined under section 45D(a).’’.

18 (d) CLERICAL AMENDMENT.—The table of sections

19 for subpart D of part IV of subchapter A of chapter 1

20 of the Internal Revenue Code of 1986 is amended by in21 serting after the item relating to section 45C the following

22 new item:

‘‘Sec. 45D. Energy efficient appliance credit.’’.
7

•HR 4977 IH

1 (e) EFFECTIVE DATE.—The amendments made by

2 this section shall apply to taxable years beginning after

3 December 31, 2000.

Æ