II 

118TH CONGRESS 

1ST SESSION S. 611 

To amend the Internal Revenue Code of 1986 to increase the low-income 

housing credit for rehabilitation expenditures for buildings achieving enhanced energy performance, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 1, 2023 

Ms. KLOBUCHAR (for herself, Mr. VAN HOLLEN, Ms. WARREN, and Ms. 

SMITH) 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 increase 

the low-income housing credit for rehabilitation expenditures for buildings achieving enhanced energy performance, 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. 

4 This Act may be cited as the ‘‘Energy Efficiency for 

5 Affordable Housing Act’’. 


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1 SEC. 2. INCREASE OF CREDIT. 

2 (a) IN GENERAL.—Paragraph (2) of section 42(e) of 

3 the Internal Revenue Code of 1986 is amended by adding 

4 at the end the following new subparagraph: 

5 ‘‘(C) INCREASE IN CREDIT FOR BUILDINGS

6 ACHIEVING ENHANCED ENERGY PERFORM7 ANCE.— 

8 ‘‘(i) IN GENERAL.—In the case of any 

9 existing building to which subsection (b)(2) 

10 does not apply which achieves enhanced 

11 energy performance, the rehabilitation ex12 penditures taken into account under sub13 paragraph (A) shall be 130 percent of such 

14 expenditures determined without regard to 

15 this subparagraph. 

16 ‘‘(ii) ENHANCED ENERGY PERFORM17 ANCE.—For purposes of clause (i), a build18 ing achieves enhanced energy performance 

19 if it meets either of the following: 

20 ‘‘(I) The minimum requirements 

21 of an advanced building construction 

22 standard which shall be determined by 

23 the Secretary of Energy using pre24 scriptive or performance methods of 

25 calculation and promulgated by the 

26 Secretary of Energy within 180 days 


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1 of the date of the enactment of this 

2 subparagraph. 

3 ‘‘(II) In the case of a taxpayer 

4 which elects (at such time and in such 

5 manner as the Secretary may provide) 

6 the application of this subclause with 

7 respect to the building, a qualified ret8 rofit plan. 

9 ‘‘(iii) DEFINITIONS.—For purposes of 

10 this subparagraph— 

11 ‘‘(I) QUALIFIED RETROFIT

12 PLAN.—The term ‘qualified retrofit 

13 plan’ means a written plan prepared 

14 and stamped by a qualified profes15 sional which specifies modifications to 

16 a building which, in the aggregate, are 

17 expected to reduce such building’s site 

18 energy usage intensity by 50 percent 

19 or more in comparison to the baseline 

20 energy usage intensity of such build21 ing. Such plan shall require a quali22 fied professional to certify— 

23 ‘‘(aa) the baseline energy 

24 usage intensity of the building, 


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1 ‘‘(bb) that the modifications 

2 are expected to reduce such 

3 building’s site energy usage in4 tensity by 50 percent or more in 

5 comparison to the baseline en6 ergy usage intensity of such 

7 building, and 

8 ‘‘(cc) as of any date fol9 lowing installation of building 

10 modifications, that such modi11 fications have been installed. 

12 ‘‘(II) BASELINE ENERGY USAGE

13 INTENSITY.—The term ‘baseline en14 ergy usage intensity’ means the site 

15 energy usage intensity as of any date 

16 during the 24-month period imme17 diately preceding the building modi18 fications described in the qualified ret19 rofit plan. 

20 ‘‘(III) SITE ENERGY USAGE IN21 TENSITY.—The site energy usage in22 tensity shall be determined for the en23 tire building in accordance with such 

24 regulations or other guidance as the 

25 Secretary may provide and measured 


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1 in British thermal units per square 

2 foot per year. 

3 ‘‘(IV) QUALIFIED PROFES4 SIONAL.—The term ‘qualified profes5 sional’ means an individual who is a 

6 licensed architect or a licensed engi7 neer or meets such other requirements 

8 as the Secretary of Energy may pro9 vide.’’. 

10 (b) INCREASE FOR BUILDINGS IN HIGH-COST

11 AREAS.—Paragraph (2) of section 42(e) of the Internal 

12 Revenue Code of 1986, as amended by subsection (a), is 

13 further amended by adding at the end the following new 

14 subparagraph: 

15 ‘‘(D) SPECIAL RULE FOR BUILDINGS IN

16 HIGH-COST AREAS WHICH ACHIEVE ENHANCED

17 ENERGY PERFORMANCE.—In the case of an ex18 isting building to which both subparagraph (C) 

19 and subsection (d)(5)(B) apply (but for this 

20 subparagraph)— 

21 ‘‘(i) subsection (d)(5)(B)(i)(II) shall 

22 not apply, and 

23 ‘‘(ii) the rehabilitation expenditures 

24 taken into account under subparagraph 

25 (A) shall be 160 percent of such expendiVerDate Sep 11 2014 04:15 Mar 11, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S611.IS S611

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1 tures determined without regard to this 

2 subparagraph.’’. 

3 (c) EFFECTIVE DATE.— 

4 (1) IN GENERAL.—Except as provided in para5 graph (2), the amendments made by this section 

6 shall apply to buildings with respect to which hous7 ing credit dollar amounts are allocated after Decem8 ber 31, 2023. 

9 (2) BOND-FINANCED PROJECTS.—In the case of 

10 any building some portion of which, or of the land 

11 on which the building is located, is financed by an 

12 obligation which is described in section 42(h)(4)(A) 

13 of the Internal Revenue Code of 1986, the amend14 ments made by this section shall apply to any such 

15 building financed by such an obligation which is part 

16 of an issue the issue date of which is after December 

17 31, 2023. 

Æ 


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