I 

109TH CONGRESS 

1ST SESSION H. R. 1421 

To amend the Internal Revenue Code of 1986 to allow for an energy efficient 

appliance credit. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 17, 2005 

Mr. NUSSLE (for himself, Mr. TANNER, Mr. LATHAM, Mr. KING of Iowa, Mr. 

BOSWELL, Mrs. JOHNSON of Connecticut, Mr. LEWIS of Kentucky, and 

Mr. WAMP) 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 for 

an energy efficient appliance credit. 

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 of 2005.’’. 

6 SEC. 2. 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 
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1 1986 (relating to business-related credits) is amended by 

2 adding at the end the following new section: 

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

4 ‘‘(a) GENERAL RULE.— 

5 ‘‘(1) IN GENERAL.—For purposes of section 38, 

6 the energy efficient appliance credit determined 

7 under this section for the taxable year is an amount 

8 equal to the sum of the credit amounts determined 

9 for each type of qualified energy efficient appliance. 

10 ‘‘(2) CREDIT AMOUNTS.—The credit amount 

11 determined for a type of qualified energy efficient 

12 appliance is the sum of— 

13 ‘‘(A) the applicable amount determined 

14 under subsection (b) with respect to a qualified 

15 energy efficient appliance, multiplied by 

16 ‘‘(B) the number of such appliances pro17 duced by the taxpayer in the United States dur18 ing the calendar year ending with or within the 

19 taxable year. 

20 ‘‘(b) APPLICABLE AMOUNT; ELIGIBLE PRODUC21 TION.—For purposes of subsection (a)— 

22 ‘‘(1) APPLICABLE AMOUNT.— 

23 ‘‘(A) IN GENERAL.—The applicable 

24 amount determined under this subsection is the 

25 amount determined under the following table: 
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‘‘Qualified Energy Efficient Appliance Produced in calendar 

year— 

Applicable 

amount is— 

Clothes washer with at least 1.42 

MEF.

2005 $50 

Clothes washer with MEF at least 

Energy Star level in effect in 

2007.

2005, 2006, or 2007 $100 

Clothes washer with MEF at least 

Energy Star level in effect in 

2010.

2008, 2009, or 2010 $150 

Dishwasher with EF at least Energy Star level in effect in 2007.2006, 2007, 2008, or 

2009 

$75 

Refrigerator consuming at least 15 

percent less kilowatt hours per 

year than 2001 energy conservation standard.

2005 or 2006 $100 

Refrigerator consuming at least 20 

percent less kilowatt hours per 

year than 2001 energy conservation standard.

2005, 2006, 2007, 

2008, or 2009 

$150 

Refrigerator consuming at least 25 

percent less kilowatt hours per 

year than 2001 energy conservation standard.

2010 $150 

1 ‘‘(B) OTHER APPLIANCES.—In the case of 

2 any appliance not described in the table in sub3 paragraph (A), the applicable amount shall be 

4 zero. 

5 ‘‘(2) ELIGIBLE PRODUCTION.— 

6 ‘‘(A) IN GENERAL.—The eligible produc7 tion in a calendar year with respect to each 

8 type of energy efficient appliance described in 

9 the table in paragraph (1) is the excess of— 

10 ‘‘(i) the number of appliances of such 

11 type which meet the energy efficiency de12 scribed for such type in the table in para13 graph (1) and which are produced by the 

14 taxpayer during such calendar year, over 
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1 ‘‘(ii) the average number of appliances 

2 of such type which meet the energy effi3 ciency described for such type in the table 

4 in paragraph (1) and which were produced 

5 by the taxpayer (or any predecessor) dur6 ing the preceding 3-calendar year period. 

7 ‘‘(B) SPECIAL RULE FOR 2005 PRODUC8 TION.—For purposes of determining eligible 

9 production for calendar year 2005— 

10 ‘‘(i) only production after the date of 

11 enactment of this section shall be taken 

12 into account under subparagraph (A)(i), 

13 and 

14 ‘‘(ii) the amount taken into account 

15 under subparagraph (A)(ii) shall be an 

16 amount which bears the same ratio to the 

17 amount which would (but for this subpara18 graph) be taken into account under sub19 paragraph (A)(ii) as— 

20 ‘‘(I) the number of days in cal21 endar year 2005 after the date of en22 actment of this section, bears to 

23 ‘‘(II) 365. 

24 ‘‘(c) LIMITATIONS.— 
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1 ‘‘(1) AGGREGATE CREDIT AMOUNT ALLOWED.— 

2 The aggregate amount of credit allowed under sub3 section (a) with respect to a taxpayer for all taxable 

4 years shall not exceed $75,000,000, reduced by the 

5 amount of the credit allowed under subsection (a) to 

6 the taxpayer (or any predecessor) for any prior tax7 able year. 

8 ‘‘(2) AMOUNT ALLOWED FOR CERTAIN APPLI9 ANCES.— 

10 ‘‘(A) IN GENERAL.—In the case of appli11 ances described in subparagraph (B), the aggre12 gate amount of the credit allowed under sub13 section (a) with respect to a taxpayer for all 

14 taxable years shall not exceed $35,000,000, re15 duced by the amount of the credit allowed 

16 under subsection (a) to the taxpayer (or any 

17 predecessor) for any prior taxable year with re18 spect to such appliances. 

19 ‘‘(B) APPLIANCES DESCRIBED.—The appli20 ances described in this subparagraph are— 

21 ‘‘(i) clothes washers with at least a 

22 1.42 MEF, as described in the table in 

23 subsection (b)(1), 

24 ‘‘(ii) refrigerators which consume at 

25 least 15 percent less kilowatt hours per 
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1 year than applicable energy conservation 

2 standards, as described in such table, and 

3 ‘‘(iii) dishwashers described in such 

4 table. 

5 ‘‘(3) LIMITATION BASED ON GROSS RE6 CEIPTS.—The credit allowed under subsection (a) 

7 with respect to a taxpayer for the taxable year shall 

8 not exceed an amount equal to 2 percent of the aver9 age annual gross receipts of the taxpayer for the 3 

10 taxable years preceding the taxable year in which 

11 the credit is determined. 

12 ‘‘(4) GROSS RECEIPTS.—For purposes of this 

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

14 section 448(c) shall apply. 

15 ‘‘(d) DEFINITIONS.—For purposes of this section— 

16 ‘‘(1) QUALIFIED ENERGY EFFICIENT APPLI17 ANCE.—The term ‘qualified energy efficient appli18 ance’ means an appliance described in the table in 

19 subsection (b)(1). 

20 ‘‘(2) CLOTHES WASHER.—The term ‘clothes 

21 washer’ means a residential model clothes washer, 

22 including a residential style coin operated washer. 

23 ‘‘(3) REFRIGERATOR.—The term ‘refrigerator’ 

24 means a residential model automatic defrost refrig-
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1 erator-freezer which has an internal volume of at 

2 least 16.5 cubic feet. 

3 ‘‘(4) DISHWASHER.—The term ‘dishwasher’ 

4 means a residential dishwasher subject to the energy 

5 conservation standards established by the Depart6 ment of Energy. 

7 ‘‘(5) MEF.—The term ‘MEF’ means the modi8 fied energy factor, as determined by the Secretary of 

9 Energy. 

10 ‘‘(6) ENERGY FACTOR.—The term ‘EF’ means 

11 the energy factor established by the Department of 

12 Energy for compliance with the Federal energy con13 servation standards. 

14 ‘‘(7) PRODUCED.—The term ‘produced’ in15 cludes manufactured. 

16 ‘‘(8) 2001 ENERGY CONSERVATION STAND17 ARD.—The term ‘2001 energy conservation stand18 ard’ means the energy conservation standards pro19 mulgated by the Department of Energy and effective 

20 July 1, 2001. 

21 ‘‘(e) SPECIAL RULES.—For purposes of this sec22 tion— 

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

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

25 apply. 
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1 ‘‘(2) CONTROLLED GROUP.— 

2 ‘‘(A) IN GENERAL.—All persons treated as 

3 a single employer under subsection (a) or (b) of 

4 section 52 or subsection (m) or (o) of section 

5 414 shall be treated as a single producer. 

6 ‘‘(B) INCLUSION OF FOREIGN CORPORA7 TIONS.—For purposes of subparagraph (A), in 

8 applying subsections (a) and (b) of section 52 

9 to this section, section 1563 shall be applied 

10 without regard to subsection (b)(2)(C) thereof. 

11 ‘‘(3) VERIFICATION.—No amount shall be al12 lowed as a credit under subsection (a) with respect 

13 to which the the taxpayer has not submitted such in14 formation or certification as the Secretary, in con15 sultation with the Secretary of Energy, determines 

16 necessary.’’. 

17 (b) CONFORMING AMENDMENT.—Section 38(b) of 

18 the Internal Revenue Code of 1986 (relating to general 

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

20 of paragraph (18), by striking the period at the end of 

21 paragraph (19) and inserting ‘‘, plus’’, and by adding at 

22 the end the following new paragraph: 

23 ‘‘(20) the energy efficient appliance credit de24 termined under section 45J(a).’’. 
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1 (c) CLERICAL AMENDMENT.—The table of sections 

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

3 of the Internal Revenue Code of 1986 is amended by add4 ing at the end the following new item: 

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

5 (d) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to appliances produced after De7 cember 31, 2004, in taxable years ending after such date. 

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