II 

113TH CONGRESS 

2D SESSION S. 2059 

To amend the Internal Revenue Code of 1986 to allow a credit for the 

purchase of heating and cooling equipment which meets the Energy 

Star program requirements and is used in certain high-cost energy communities, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 27, 2014 

Mr. BEGICH 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 allow a 

credit for the purchase of heating and cooling equipment 

which meets the Energy Star program requirements and 

is used in certain high-cost energy communities, 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 Efficient Heat5 ing and Cooling Tax Credit Act’’. 


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1 SEC. 2. CREDIT FOR CONVERSION OF HOME HEATING 

2 USING OIL FUEL TO USING NATURAL GAS OR 

3 BIOMASS FEEDSTOCKS. 

4 (a) IN GENERAL.—Subsection (a) of section 25C of 

5 the Internal Revenue Code of 1986 (relating to nonbusi6 ness energy property) is amended by striking ‘‘and’’ at 

7 the end of paragraph (1), by striking the period at the 

8 end of paragraph (2) and inserting ‘‘, and’’, and by adding 

9 at the end the following new paragraph: 

10 ‘‘(3) the amount of the qualifying heating con11 version expenditures paid or incurred by the tax12 payer during such taxable year.’’. 

13 (b) DOLLAR LIMITATION.— 

14 (1) IN GENERAL.— 

15 (A) LIMITATION.—Subsection (b) of sec16 tion 25C of the Internal Revenue Code of 1986 

17 is amended by adding at the end the following 

18 new paragraph: 

19 ‘‘(4) LIMITATION ON QUALIFYING HEATING

20 CONVERSION EXPENDITURES.—The amount of the 

21 credit allowed under this section by reason of para22 graph (3) of subsection (a) for any taxable year with 

23 respect to any taxpayer shall not exceed $5,000.’’. 

24 (B) CONFORMING AMENDMENT.—Para25 graph (1) of section 25C(b) of such Code is 

26 amended by inserting ‘‘by reason of paragraphs 


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1 (1) and (2) of subsection (a)’’ after ‘‘The credit 

2 allowed under this section’’. 

3 (2) NO DOUBLE COUNTING.—Section 25C(e) of 

4 such Code (relating to special rules) is amended by 

5 adding at the end the following new paragraph: 

6 ‘‘(4) NO DOUBLE COUNTING.—No amount 

7 taken into account for purposes of determining a 

8 credit under this section by reason of paragraph (3) 

9 of subsection (a) shall be taken into account for pur10 poses of determining a credit under this section by 

11 reason of paragraphs (1) and (2) of subsection (a).’’. 

12 (c) QUALIFYING HEATING CONVERSION EXPENDI13 TURES.—Section 25C of the Internal Revenue Code of 

14 1986 (relating to residential energy property expendi15 tures) is amended by adding at the end the following new 

16 subsection: 

17 ‘‘(h) QUALIFYING HEATING CONVERSION EXPENDI18 TURES.— 

19 ‘‘(1) IN GENERAL.—The term ‘qualifying heat20 ing conversion expenditures’ means expenditures 

21 made by the taxpayer for qualified heating conver22 sion property which— 

23 ‘‘(A) meets the requirements of subpara24 graphs (A) and (B) of subsection (d)(1), and 


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1 ‘‘(B) is used as a heating or cooling system 

2 on a building or structure located in a commu3 nity (as determined under section 19(a)(1) of 

4 the Rural Electrification Act of 1936) in which 

5 the average residential expenditure for home 

6 energy is more than 200 percent of the national 

7 average residential expenditure for home energy 

8 (as determined by the Energy Information 

9 Agency using the most recent data available). 

10 ‘‘(2) AMOUNTS INCLUDED.—The term ‘quali11 fying heating conversion expenditures’ includes ex12 penditures— 

13 ‘‘(A) for labor costs properly allocable to 

14 the onsite preparation, assembly, or original in15 stallation of property described in paragraph 

16 (1), including fuel service connection installa17 tion costs specifically related to fuel service to 

18 the qualified energy property used in such con19 version, and 

20 ‘‘(B) the removal of the fuel oil equipment 

21 (including any storage tank) for such a building 

22 or structure. 

23 ‘‘(3) EXCLUSIONS.—Such term does not include 

24 expenditures for soil cleanup. 


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1 ‘‘(4) QUALIFIED HEATING CONVERSION PROP2 ERTY.—For purposes of paragraph (1), the term 

3 ‘qualified heating conversion property’ means prop4 erty which— 

5 ‘‘(A) is placed in service before January 1, 

6 2019, 

7 ‘‘(B) meets the performance and quality 

8 standards described in subsection (d)(2)(B), 

9 and 

10 ‘‘(C) is a product which qualifies under the 

11 Energy Star program and meets the require12 ments for such property under such program.’’. 

13 (d) CONFORMING AMENDMENT.—Subsection (g) of 

14 section 25C of the Internal Revenue Code of 1986 (relat15 ing to termination) is amended by striking ‘‘This section’’ 

16 and inserting ‘‘Paragraphs (1) and (2) of subsection (a)’’. 

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

18 this section shall apply to property placed in service after 

19 the date of the enactment of this Act. 

Æ 


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