II

106TH CONGRESS

2D SESSION S. 2939

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

tax for energy efficient appliances.

IN THE SENATE OF THE UNITED STATES

JULY 26, 2000

Mr. GRASSLEY (for himself, Mr. ROCKEFELLER, Mr. JEFFORDS, and Mrs.

LINCOLN) 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 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

9 1986 (relating to business-related credits) is amended by

10 adding at the end the following new section:
2

•S 2939 IS

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

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

3 the energy efficient appliance credit determined under this

4 section for the taxable year is an amount equal to the ap5 plicable amount determined under subsection (b) with re6 spect to qualified energy efficient appliances produced by

7 the taxpayer during the calendar year ending with or with8 in the taxable year.

9 ‘‘(b) APPLICABLE AMOUNT.—For purposes of sub10 section (a), the applicable amount determined under this

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

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

13 washer described in subsection (d)(2)(A) or an en14 ergy efficient refrigerator described in subsection

15 (d)(3)(B)(i), an amount equal to—

16 ‘‘(A) $50, multiplied by

17 ‘‘(B) the number of such washers and re18 frigerators produced by the taxpayer during

19 such calendar year, and

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

21 washer described in subsection (d)(2)(B) or an en22 ergy efficient refrigerator described in subsection

23 (d)(3)(B)(ii), an amount equal to—

24 ‘‘(A) $100, multiplied by
3

•S 2939 IS

1 ‘‘(B) the number of such washers and re2 frigerators produced by the taxpayer during

3 such calendar year.

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

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

6 credit allowed under subsection (a) with respect to

7 a taxpayer for all taxable years shall be—

8 ‘‘(A) $30,000,000 with respect to the cred9 it determined under subsection (b)(1), and

10 ‘‘(B) $30,000,000 with respect to the cred11 it determined under subsection (b)(2).

12 ‘‘(2) LIMITATION BASED ON GROSS RE13 CEIPTS.—The credit allowed under subsection (a)

14 with respect to a taxpayer for the taxable year shall

15 not exceed an amount equal to 2 percent of the aver16 age annual gross receipts of the taxpayer for the 3

17 taxable years preceding the taxable year in which

18 the credit is determined.

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

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

21 section 448(c) shall apply.

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

23 For purposes of this section—

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

25 efficient appliance’ means—
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1 ‘‘(A) an energy efficient clothes washer, or

2 ‘‘(B) an energy efficient refrigerator.

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

4 The term ‘energy efficient clothes washer’ means a

5 residential clothes washer, including a residential

6 style coin operated washer, which is manufactured

7 with—

8 ‘‘(A) a 1.26 Modified Energy Factor (re9 ferred to in this paragraph as ‘MEF’) (as de10 termined by the Secretary of Energy), or

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

12 Secretary of Energy) (1.5 MEF for calendar

13 years beginning after 2004).

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

15 term ‘energy efficient refrigerator’ means an auto16 matic defrost refrigerator-freezer which—

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

18 16.5 cubic feet, and

19 ‘‘(B) consumes—

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

21 energy conservation standards promulgated

22 by the Department of Energy for such re23 frigerator for 2001, or

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

25 such energy conservation standards.
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•S 2939 IS

1 ‘‘(e) SPECIAL RULES.—

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

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

4 apply for purposes of this section.

5 ‘‘(2) AGGREGATION RULES.—All persons treat6 ed as a single employer under subsection (a) or (b)

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

8 shall be treated as one person for purposes of sub9 section (a).

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

11 information or certification as the Secretary, in consulta12 tion with the Secretary of Energy, determines necessary

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

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

15 ‘‘(1) with respect to energy efficient refrig16 erators described in subsection (d)(3)(B)(i) produced

17 in calendar years beginning after 2004, and

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

19 efficient appliances produced in calendar years be20 ginning after 2006.’’.

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

22 the Internal Revenue Code of 1986 (relating to transition

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

24 paragraph:
6

•S 2939 IS

1 ‘‘(9) NO CARRYBACK OF ENERGY EFFICIENT

2 APPLIANCE CREDIT BEFORE EFFECTIVE DATE.—No

3 portion of the unused business credit for any taxable

4 year which is attributable to the energy efficient ap5 pliance credit determined under section 45D may be

6 carried to a taxable year ending before the date of

7 the enactment of section 45D.’’.

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

9 the Internal Revenue Code of 1986 (relating to general

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

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

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

13 the end the following new paragraph:

14 ‘‘(13) the energy efficient appliance credit de15 termined under section 45D(a).’’.

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

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

18 of the Internal Revenue Code of 1986 is amended by in19 serting after the item relating to section 45C the following

20 new item:

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

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

22 this section shall apply to taxable years beginning after

23 December 31, 2000.

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