I 

116TH CONGRESS 

1ST SESSION H. R. 4506 

To amend the Internal Revenue Code of 1986 to extend and update the 

credit for nonbusiness energy property. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 26, 2019 

Mr. GOMEZ (for himself and Mr. KELLY of Pennsylvania) 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 extend 

and update the credit for nonbusiness energy property. 

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 ‘‘Home Energy Savings 

5 Act’’. 

6 SEC. 2. EXTENSION OF CREDIT FOR NONBUSINESS ENERGY 

7 PROPERTY. 

8 (a) IN GENERAL.—Subsection (g)(2) of section 25C 

9 of the Internal Revenue Code of 1986 is amended by strikVerDate Sep 11 2014 19:11 Oct 28, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H4506.IH H4506

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1 ing ‘‘December 31, 2017’’ and inserting ‘‘December 31, 

2 2019’’. 

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

4 this section shall apply to property placed in service after 

5 December 31, 2017. 

6 SEC. 3. UPDATING CREDIT FOR NONBUSINESS ENERGY 

7 PROPERTY. 

8 (a) IN GENERAL.—Section 25C of the Internal Rev9 enue Code of 1986, as amended by section 2, is amend10 ed— 

11 (1) in subsection (a)(1), by striking ‘‘10 per12 cent’’ and inserting ‘‘15 percent’’, 

13 (2) in subsection (b)— 

14 (A) in paragraph (1)— 

15 (i) by striking ‘‘$500’’ and inserting 

16 ‘‘$1,200’’, and 

17 (ii) by striking ‘‘December 31, 2005’’ 

18 and inserting ‘‘December 31, 2019’’, and 

19 (B) by striking paragraphs (2) and (3) and 

20 inserting the following: 

21 ‘‘(2) LIMITATION ON INSULATION MATERIAL OR

22 SYSTEM.—In the case of amounts paid or incurred 

23 for components described in subsection (c)(3)(A) by 

24 any taxpayer for any taxable year, the credit allowed 

25 under this section with respect to such amounts for 


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1 such year shall not exceed the excess (if any) of 

2 $600 over the aggregate credits allowed under this 

3 section with respect to such amounts for all prior 

4 taxable years ending after December 31, 2019. 

5 ‘‘(3) LIMITATION ON WINDOWS.— 

6 ‘‘(A) IN GENERAL.— 

7 ‘‘(i) ENERGY STAR MOST EFFI8 CIENT.—In the case of amounts paid or in9 curred by any taxpayer for any taxable 

10 year for components described in sub11 section (c)(3)(B) which meet the most effi12 cient certification under applicable Energy 

13 Star program requirements, the credit al14 lowed under this section with respect to 

15 such amounts for such year shall not ex16 ceed the excess (if any) of $600 over the 

17 aggregate credits allowed under this sec18 tion with respect to such amounts for all 

19 prior taxable years ending after December 

20 31, 2019. 

21 ‘‘(ii) ENERGY STAR.—In the case of 

22 amounts paid or incurred by any taxpayer 

23 for any taxable year for components de24 scribed in subsection (c)(3)(B) which do 

25 not meet the most efficient certification 


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1 under applicable Energy Star program re2 quirements, the credit allowed under this 

3 section with respect to such amounts for 

4 such year shall not exceed the excess (if 

5 any) of $200 over the aggregate credits al6 lowed under this section with respect to 

7 such amounts for all prior taxable years 

8 ending after December 31, 2019. 

9 ‘‘(B) ELECTION.— 

10 ‘‘(i) IN GENERAL.—For purposes of 

11 any amounts paid or incurred by any tax12 payer for components described in sub13 section (c)(3)(B), the credit allowed under 

14 this section shall only be allowed for com15 ponents described in clause (i) of subpara16 graph (A) or clause (ii) of such subpara17 graph, but not both, as elected by the tax18 payer during the first taxable year in 

19 which such credit is being claimed by the 

20 taxpayer. 

21 ‘‘(ii) IRREVOCABILITY.—The Sec22 retary shall, through such rules, regula23 tions, and procedures as are determined 

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1 ing an election under this subparagraph, 

2 which shall require that— 

3 ‘‘(I) any election made by the 

4 taxpayer shall be irrevocable, and 

5 ‘‘(II) such election shall remain 

6 in effect for all subsequent taxable 

7 years. 

8 ‘‘(4) LIMITATION ON DOORS.—In the case of 

9 amounts paid or incurred for components described 

10 in subsection (c)(3)(C) by any taxpayer for any tax11 able year, the credit allowed under this section with 

12 respect to such amounts for such year shall not ex13 ceed— 

14 ‘‘(A) the excess (if any) of $500 over the 

15 aggregate credits allowed under this section 

16 with respect to such amounts for all prior tax17 able years ending after December 31, 2019, or 

18 ‘‘(B) $250 for each exterior door. 

19 ‘‘(5) LIMITATION ON RESIDENTIAL ENERGY

20 PROPERTY EXPENDITURES.—The amount of the 

21 credit allowed under this section by reason of sub22 section (a)(2) shall not exceed— 

23 ‘‘(A) in the case of any energy-efficient 

24 building property— 


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1 ‘‘(i) for any item of property described 

2 in subparagraph (A), (B), or (C) of sub3 section (d)(3), $600, and 

4 ‘‘(ii) for any item of property de5 scribed in subparagraph (D) or (E) of such 

6 subsection, $400, and 

7 ‘‘(B) in the case of any qualified natural 

8 gas, propane, or oil furnace or hot water boiler 

9 (as defined in subsection (d)(4)), an amount 

10 equal to— 

11 ‘‘(i) $600 for a hot water boiler, and 

12 ‘‘(ii) in the case of a furnace, an 

13 amount equal to the sum of— 

14 ‘‘(I) $300, plus 

15 ‘‘(II) if the taxpayer is converting 

16 from a non-condensing furnace to a 

17 condensing furnace, $300.’’, 

18 (3) in subsection (c)— 

19 (A) in paragraph (2)— 

20 (i) by striking subparagraphs (A) and 

21 (B) and inserting the following: 

22 ‘‘(A) applicable Energy Star program re23 quirements, in the case of an exterior window, 

24 a skylight, or an exterior door, and’’, 


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1 (ii) by redesignating subparagraph 

2 (C) as subparagraph (B), and 

3 (iii) in subparagraph (B), as so redes4 ignated, by striking ‘‘2009 International’’ 

5 and all that follows through ‘‘Act of 2009’’ 

6 and inserting ‘‘2015 IECC (as defined in 

7 section 45L(b)(5))’’, 

8 (B) in paragraph (3)— 

9 (i) in subparagraph (B), by adding 

10 ‘‘and’’ at the end, 

11 (ii) in subparagraph (C), by striking 

12 ‘‘, and’’ and inserting a period, and 

13 (iii) by striking subparagraph (D), 

14 and 

15 (C) by adding at the end the following new 

16 paragraph: 

17 ‘‘(5) LABOR COSTS.—The term ‘qualified en18 ergy efficiency improvements’ includes expenditures 

19 for labor costs properly allocable to the onsite prepa20 ration, assembly, or original installation of any en21 ergy efficient building envelope component.’’, 

22 (4) in subsection (d)— 

23 (A) in paragraph (2)(A)— 

24 (i) in clause (i), by adding ‘‘or’’ at the 

25 end, 


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1 (ii) in clause (ii), by striking ‘‘, or’’ 

2 and inserting a period, and 

3 (iii) by striking clause (iii), 

4 (B) in paragraph (3)— 

5 (i) by striking subparagraph (A) and 

6 inserting the following: 

7 ‘‘(A) an electric heat pump water heater 

8 which, in the standard Department of Energy 

9 test procedure, yields a uniform energy factor 

10 of at least 3.0,’’, 

11 (ii) in subparagraph (B), by striking 

12 ‘‘January 1, 2009’’ and inserting ‘‘the date 

13 of enactment of the Home Energy Savings 

14 Act’’, 

15 (iii) in subparagraph (C), by striking 

16 ‘‘January 1, 2009’’ and inserting ‘‘the date 

17 of enactment of the Home Energy Savings 

18 Act’’, 

19 (iv) by striking subparagraph (D) and 

20 inserting the following: 

21 ‘‘(D) a natural gas, propane, or oil water 

22 heater which, in the standard Department of 

23 Energy test procedure, yields— 

24 ‘‘(i) in the case of a storage tank 

25 water heater— 


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1 ‘‘(I) in the case of a medium2 draw water heater, a uniform energy 

3 factor of not less than 0.78, and 

4 ‘‘(II) in the case of a high-draw 

5 water heater, a uniform energy factor 

6 of not less than 0.80, and 

7 ‘‘(ii) in the case of a tankless water 

8 heater— 

9 ‘‘(I) in the case of a medium10 draw water heater, a uniform energy 

11 factor of not less than 0.87, and 

12 ‘‘(II) in the case of a high-draw 

13 water heater, a uniform energy factor 

14 of not less than 0.90, and’’, and 

15 (v) in subparagraph (E), by striking 

16 ‘‘of at least 75 percent’’ and inserting the 

17 following: ‘‘(as determined pursuant to the 

18 applicable list published by the Environ19 mental Protection Agency for certified 

20 wood stoves, hydronic heaters, or forced-air 

21 furnaces) of at least— 

22 ‘‘(i) in the case of any stove placed in 

23 service before January 1, 2021, 73 per24 cent, and 


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1 ‘‘(ii) in the case of any stove placed in 

2 service after December 31, 2020, 75 per3 cent.’’, 

4 (C) in paragraph (4), by striking ‘‘not less 

5 than 95’’ and inserting the following: ‘‘not less 

6 than— 

7 ‘‘(A) in the case of a furnace, 97 percent, 

8 and 

9 ‘‘(B) in the case of a hot water boiler, 95 

10 percent.’’, 

11 (D) by striking paragraph (5), and 

12 (E) by redesignating paragraph (6) as 

13 paragraph (5), 

14 (5) in subsection (e), by adding the following 

15 new paragraphs at the end: 

16 ‘‘(4) INSTALLATION STANDARDS.—The terms 

17 ‘energy efficient building envelope component’ and 

18 ‘qualified energy property’ shall not include any 

19 components or property which are not installed ac20 cording to any applicable Air Conditioning Contrac21 tors of America Quality Installation standards which 

22 are in effect at the time that such components or 

23 property are placed in service. 

24 ‘‘(5) REPLACEMENT OF TERMINATED STAND25 ARDS.—In the case of any standard, requirement, or 


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1 criteria applicable to any energy efficient building 

2 envelope component or qualified energy property 

3 which is terminated after the date of enactment of 

4 the Home Energy Savings Act, the Secretary, in 

5 consultation with the Secretary of Energy, shall 

6 identify a similar standard, requirement, or criteria 

7 for purposes of determining the eligibility of any 

8 such component or property for purposes of credit 

9 allowed under this section.’’, and 

10 (6) in subsection (g)(2), by striking ‘‘December 

11 31, 2019’’ and inserting ‘‘December 31, 2026’’. 

12 (b) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to property placed in service after 

14 December 31, 2019. 

Æ 


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