I 

109TH CONGRESS 

2D SESSION H. R. 4856 

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

for Energy Star qualified homes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 2, 2006 

Ms. BEAN 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 allow a 

credit to homeowners for Energy Star qualified homes. 

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 Star Homes 

5 Act of 2006’’. 

6 SEC. 2. ENERGY STAR HOME CREDIT. 

7 (a) IN GENERAL.—Subpart D of part IV of sub8 chapter A of chapter 1 of the Internal Revenue Code (re9 lating to business related credits) is amended by inserting 

10 after section 45M the following new section: 


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1 ‘‘SEC. 45N. ENERGY STAR HOME CREDIT. 

2 ‘‘(a) ALLOWANCE OF CREDIT.—For purposes of sec3 tion 38, in the case of a homeowner, the Energy Star 

4 home credit for the taxable year is $10,000 for each En5 ergy Star qualified home which— 

6 ‘‘(1) is owned by the homeowner for use as a 

7 residence by such homeowner during the taxable 

8 year, and 

9 ‘‘(2) meets the energy saving requirements of 

10 subsection (c) for the first time during such taxable 

11 year. 

12 ‘‘(b) DEFINITIONS.—For purposes of this section— 

13 ‘‘(1) ENERGY STAR QUALIFIED HOME.—The 

14 term ‘Energy Star qualified home’ means a dwelling 

15 unit— 

16 ‘‘(A) located in the United States, 

17 ‘‘(B) the construction of which is substan18 tially completed after the date of the enactment 

19 of this section, and 

20 ‘‘(C) which meets the energy saving re21 quirements of subsection (c). 

22 ‘‘(2) CONSTRUCTION.—The term ‘construction’ 

23 includes substantial reconstruction and rehabilita24 tion. 

25 ‘‘(c) ENERGY SAVING REQUIREMENTS.—A dwelling 

26 unit meets the energy saving requirements of this subVerDate Aug 31 2005 23:48 Mar 04, 2006 Jkt 049196 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4856.IH H4856

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1 section if such unit meets the requirements established by 

2 the Administrator of the Environmental Protection Agen3 cy under the Energy Star Labeled Homes program as in 

4 effect on the date of the enactment of this section. 

5 ‘‘(d) BASIS ADJUSTMENT.—For purposes of this sub6 title, if a credit is allowed under this section in connection 

7 with any expenditure for any property, the increase in the 

8 basis of such property which would (but for this sub9 section) result from such expenditure shall be reduced by 

10 the amount of the credit so determined. 

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

12 an Energy Star qualified home which meets the energy 

13 saving requirements of subsection (c) for the first time 

14 during a taxable year beginning after December 31, 

15 2008.’’. 

16 (b) CONFORMING AMENDMENTS.— 

17 (1) Section 38(b) of such Code is amended by 

18 striking ‘‘and’’ at the end of paragraph (29), by 

19 striking the period at the end of paragraph (30) and 

20 inserting ‘‘, and’’, and by adding at the end the fol21 lowing: 

22 ‘‘(31) the Energy Star home credit determined 

23 under section 45N(a).’’. 

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

25 IV of subchapter A of chapter 1 of such Code is 


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1 amended by inserting after the item relating to sec2 tion 45M the following new item: 

‘‘Sec. 45N. Energy Star home credit.’’. 

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

4 this section shall apply to taxable years beginning after 

5 December 31, 2005. 

Æ 


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