I 

113TH CONGRESS 

2D SESSION H. R. 4426 

To promote the domestic development and deployment of clean energy 

technologies required for the 21st century. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 8, 2014 

Ms. LOFGREN (for herself, Ms. MATSUI, Mr. HONDA, Ms. PINGREE of Maine, 

Mr. CLAY, Ms. NORTON, Ms. CHU, Mr. ISRAEL, Mr. CARTWRIGHT, Ms. 

CLARK of Massachusetts, Mr. QUIGLEY, Mr. HOLT, Ms. TSONGAS, Ms. 

SHEA-PORTER, Mr. CA ́RDENAS, Mrs. CAPPS, Mr. GEORGE MILLER of 

California, and Mr. SCHIFF) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the 

Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions 

as fall within the jurisdiction of the committee concerned 

A BILL 

To promote the domestic development and deployment of 

clean energy technologies required for the 21st century. 

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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Clean Energy Victory Bond Act of 2014’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 


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Sec. 1. Short title; table of contents. 

Sec. 2. Findings. 

TITLE I—CLEAN ENERGY VICTORY BONDS 

Sec. 101. Clean Energy Victory Bonds. 

TITLE II—REVENUE PROVISIONS 

Sec. 201. Extension and modification of energy investment tax credit. 

Sec. 202. Extension of residential energy efficient property credit. 

Sec. 203. Extension and modification of credit for electricity produced from 

certain renewable resources. 

Sec. 204. Extension of credit for nonbusiness energy property. 

Sec. 205. Performance based home energy improvements. 

Sec. 206. Extension of new energy efficient home credit. 

Sec. 207. Extension and modification of energy efficient commercial buildings 

deduction. 

Sec. 208. Plug-in electric vehicle grants in lieu of tax credits. 

1 SEC. 2. FINDINGS. 

2 Congress finds the following: 

3 (1) There is enormous potential for increasing 

4 renewable energy production and energy efficiency 

5 installation in the United States. 

6 (2) A major barrier to rapid expansion of re7 newable energy and energy efficiency is upfront cap8 ital costs. Government tax incentives and other as9 sistance programs have proven beneficial in encour10 aging private sector development, manufacturing 

11 and installation of renewable energy and energy effi12 ciency projects nationwide. However, these govern13 ment incentives are not currently meeting demand 

14 from the private sector, and we are not taking full 

15 advantage of the potential for clean energy and 

16 transportation, as well as energy efficiency in the 

17 United States. 


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1 (3) Other nations, including China and Ger2 many are ahead of the United States in manufac3 turing and deploying various clean energy tech4 nologies, even though the United States invented 

5 many of these technologies. 

6 (4) Investments in renewable energy and energy 

7 efficiency projects in the United States create green 

8 jobs for U.S. citizens across the United States. Hun9 dreds of thousands of jobs could be created through 

10 expanded government support for clean energy and 

11 energy efficiency. 

12 (5) As Americans choose energy efficiency and 

13 clean energy and transportation, it reduces our de14 pendence on foreign oil and improves our energy se15 curity. 

16 (6) Bonds are a low-cost method for encour17 aging clean energy, not requiring direct budget allo18 cations or expenditures. The projects supported 

19 through Clean Energy Victory Bonds will create jobs 

20 and business revenues that will increase Federal tax 

21 revenues, while simultaneously reducing health and 

22 environmental costs incurred by the Federal Govern23 ment nationwide. 

24 (7) In World War II, over 80 percent of Amer25 ican households purchased Victory Bonds to support 


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1 the war effort, raising over $185 billion, or over $2 

2 trillion in today’s dollars. 

3 TITLE I—CLEAN ENERGY 

4 VICTORY BONDS 

5 SEC. 101. CLEAN ENERGY VICTORY BONDS. 

6 (a) INITIAL CAPITALIZATION.—The Secretary of the 

7 Treasury shall issue Clean Energy Victory Bonds in an 

8 amount not to exceed $7,500,000,000 on the credit of the 

9 United States for purposes of raising revenue for the ex10 tension of certain energy-related tax benefits extended by 

11 this Act. 

12 (b) DENOMINATIONS AND MATURITY.—Clean Energy 

13 Victory Bonds shall be in the form of United States Sav14 ings Bonds of Series EE or as administered by the Bureau 

15 of the Public Debt of the Department of the Treasury in 

16 denominations of $25, and shall mature within such peri17 ods as determined by the Secretary of the Treasury. 

18 (c) INTEREST.—Clean Energy Victory Bonds shall 

19 bear interest at the rate the Secretary of the Treasury 

20 sets for Savings Bonds of Series EE and Series I, plus 

21 a rate of return determined by the Secretary of the Treas22 ury which is based on the valuation of carbon mitigated 

23 or energy saved through funded projects funded from the 

24 proceeds of such bonds. 

25 (d) PROMOTION.— 


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1 (1) IN GENERAL.—The Secretary of the Treas2 ury shall take such actions, independently and in 

3 conjunction with financial institutions offering Clean 

4 Energy Victory Bonds, to promote the purchase of 

5 Clean Energy Victory Bonds, including campaigns 

6 describing the financial and social benefits of pur7 chasing Clean Energy Victory Bonds. 

8 (2) PROMOTIONAL ACTIVITIES.—Such pro9 motional activities may include advertisements, pam10 phlets, or other promotional materials— 

11 (A) in periodicals; 

12 (B) on billboards and other outdoor 

13 venues; 

14 (C) on television; 

15 (D) on radio; 

16 (E) on the Internet; 

17 (F) within financial institutions that offer 

18 Clean Energy Victory Bonds; or 

19 (G) any other venues or outlets the Sec20 retary of the Treasury may identify. 

21 (3) LIMITATION.—There are authorized to be 

22 appropriated for such promotional activities not 

23 more than— 

24 (A) $10,000,000 in the first year after the 

25 date of the enactment of this Act, and 


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1 (B) $2,000,000 in each year thereafter. 

2 (e) FUTURE CAPITALIZATION.— 

3 (1) IN GENERAL.—After the initial capitaliza4 tion limit is reached under subsection (a), the Sec5 retary of the Treasury may issue additional Clean 

6 Energy Victory Bonds on the credit of the United 

7 States. 

8 (2) SINGLE ISSUE LIMITATION.—No such addi9 tional issue may exceed $7,500,000,000. 

10 (3) AGGREGATE LIMITATIONS.—The aggregate 

11 of any such additional issues during the 4-year pe12 riod beginning on the day after the initial capitaliza13 tion limit is reached under subsection (a) may not 

14 exceed $50,000,000,000. The aggregate of any such 

15 additional issues after the expiration of such 4-year 

16 period may not exceed $50,000,000,000. 

17 (f) LAWFUL INVESTMENTS.—Clean Energy Victory 

18 Bonds shall be lawful investments, and may be accepted 

19 as security for all fiduciary, trust, and public funds, the 

20 investment or deposit of which shall be under the author21 ity or control of the United States or any officer or officers 

22 thereof. 


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1 TITLE II—REVENUE PROVISIONS 

2 SEC. 201. EXTENSION AND MODIFICATION OF ENERGY IN3 VESTMENT TAX CREDIT. 

4 (a) EXTENSION.— 

5 (1) SOLAR ENERGY.—Paragraphs (2)(A)(i)(II) 

6 and (3)(A)(ii) of section 48(a) of the Internal Rev7 enue Code of 1986 are each amended by striking 

8 ‘‘January 1, 2017’’ and inserting ‘‘January 1, 

9 2023’’. 

10 (2) GEOTHERMAL HEAT PUMPS.—Clause (vii) 

11 of section 48(a)(3)(A) of such Code is amended by 

12 striking ‘‘January 1, 2017’’ and inserting ‘‘January 

13 1, 2023’’. 

14 (3) FUEL CELL PROPERTY.—Subparagraph (D) 

15 of section 48(c)(1) of such Code is amended by 

16 striking ‘‘December 31, 2016’’ and inserting ‘‘De17 cember 31, 2022’’. 

18 (4) MICROTURBINE PROPERTY.—Subparagraph 

19 (D) of section 48(c)(2) of such Code is amended by 

20 striking ‘‘December 31, 2016’’ and inserting ‘‘De21 cember 31, 2022’’. 

22 (5) COMBINED HEAT AND POWER.—Clause (iv) 

23 of section 48(c)(3) of such Code is amended by 

24 striking ‘‘January 1, 2017’’ and inserting ‘‘January 

25 1, 2023’’. 


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1 (6) SMALL WIND.—Subparagraph (C) of section 

2 48(c)(4) of such Code is amended by striking ‘‘De3 cember 31, 2016’’ and inserting ‘‘December 31, 

4 2022’’. 

5 (7) OFFSHORE WIND.— 

6 (A) IN GENERAL.—Clause (ii) of section 

7 48(a)(5)(C) of such Code is amended— 

8 (i) by striking ‘‘is placed in service in’’ 

9 and inserting the following: ‘‘is— 

10 ‘‘(I) except as provided in sub11 clause (II), placed in service in’’, 

12 (ii) by adding at the end the following 

13 new subclause: 

14 ‘‘(II) in the case of an offshore 

15 wind facility, placed in service after 

16 December 31, 2008, and before Janu17 ary 1, 2021, and’’. 

18 (B) OFFSHORE WIND FACILITY.—Para19 graph (5) of section 48(a) of such Code is 

20 amended by adding at the end the following 

21 new subparagraph: 

22 ‘‘(E) OFFSHORE WIND FACILITY.—The 

23 term ‘offshore wind facility’ means any quali24 fied facility described in section 45(d)(1) and 

25 located in the inland navigable waters of the 


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1 United States, including the Great Lakes, or in 

2 the coastal waters of the United States, includ3 ing the territorial seas of the United States, the 

4 exclusive economic zone of the United States, 

5 and the outer Continental Shelf of the United 

6 States.’’. 

7 (b) MODIFICATION OF FUEL CELL PROPERTY.— 

8 Paragraph (1) of section 48(c) of such Code, as amended 

9 by this Act, is amended by redesignating subparagraph 

10 (D) as subparagraph (E) and by inserting after subpara11 graph (C) the following new subparagraph: 

12 ‘‘(D) EXCEPTION FOR FUEL DERIVED

13 FROM FOSSIL FUELS.—The term ‘qualified fuel 

14 cell powerplant’ shall not include any fuel cell 

15 powerplant the fuel of which is derived from, or 

16 is produced by using, any fossil fuel.’’. 

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

18 this section shall take effect on the date of the enactment 

19 of this Act. 

20 SEC. 202. EXTENSION OF RESIDENTIAL ENERGY EFFICIENT 

21 PROPERTY CREDIT. 

22 (a) IN GENERAL.—Subsection (g) of section 25D of 

23 the Internal Revenue Code of 1986 is amended by striking 

24 ‘‘December 31, 2016’’ and inserting ‘‘December 31, 

25 2023’’. 


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1 (b) EFFECTIVE DATE.—The amendment made by 

2 this section shall apply to taxable years beginning after 

3 December 31, 2016. 

4 SEC. 203. EXTENSION AND MODIFICATION OF CREDIT FOR 

5 ELECTRICITY PRODUCED FROM CERTAIN RE6 NEWABLE RESOURCES. 

7 (a) EXTENSION.—Subsection (d) of section 45 of the 

8 Internal Revenue Code of 1986 is amended— 

9 (1) by striking ‘‘January 1, 2013’’ in paragraph 

10 (1) and inserting ‘‘January 1, 2023’’, 

11 (2) by striking ‘‘January 1, 2014’’ each place 

12 it appears in paragraphs (2), (3), (4), (9), and (11) 

13 and inserting ‘‘January 1, 2023’’, and 

14 (3) by striking ‘‘January 1, 2006’’ in paragraph 

15 (4) and inserting ‘‘January 1, 2023’’. 

16 (b) MODIFICATIONS WITH RESPECT TO CLOSED17 LOOP BIOMASS.— 

18 (1) IN GENERAL.—Paragraph (2) of section 

19 45(c) of such Code is amended to read as follows: 

20 ‘‘(2) CLOSED-LOOP BIOMASS.— 

21 ‘‘(A) IN GENERAL.—The term ‘closed-loop 

22 biomass’ means any organic matter from a 

23 plant which— 


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1 ‘‘(i) is planted exclusively for purposes 

2 of being used at a qualified facility to 

3 produce electricity, or 

4 ‘‘(ii) is a byproduct from harvesting 

5 timber (including tops, branches, crooks) 

6 or is invasive woody vegetation that inter7 feres with regeneration or the natural 

8 growth of the forest from which timber is 

9 harvested. 

10 ‘‘(B) LIMITATION.—For purposes of sub11 paragraph (A)(ii), byproduct from harvesting 

12 timber shall not be treated as closed-loop bio13 mass unless— 

14 ‘‘(i) such byproduct does not exceed 

15 30 percent (by weight) of the harvested 

16 timber to which it relates, and 

17 ‘‘(ii) the percentage byproduct re18 moved (by weight) does not exceed— 

19 ‘‘(I) 25 percent in the case of 

20 timber harvested from good soil, and 

21 ‘‘(II) 0 percent in the case of 

22 timber harvested from poor soil. 

23 For purposes of the preceding sentence, soil 

24 quality shall be determined by reference to soil 


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1 classifications by the Natural Resources Con2 servation Service.’’. 

3 (2) QUALIFIED FACILITY.—Paragraph (2) of 

4 section 45(d) of such Code is amended by adding at 

5 the end the following new subparagraph: 

6 ‘‘(D) GREENHOUSE GAS EMISSIONS.—In 

7 the case of a facility placed in service after De8 cember 31, 2014, such term shall not include 

9 any facility unless, with respect to the facility, 

10 the taxpayer annually during the 10-year period 

11 described in subsection (a) demonstrates to the 

12 satisfaction of the Secretary that such facility’s 

13 use of closed-loop biomass will result in a 50- 

14 percent reduction in greenhouse gas emissions 

15 compared to a similar facility using natural gas 

16 combined-cycle generation.’’. 

17 (c) MODIFICATION OF OPEN-LOOP BIOMASS DEFINI18 TION.—The second sentence of subparagraph (A) of sec19 tion 45(c)(3) of such Code is amended— 

20 (1) by striking ‘‘or biomass’’ and inserting ‘‘, 

21 biomass’’, and 

22 (2) by inserting before the period at the end the 

23 following: ‘‘, any biomass which is primarily a food 

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1 ment of the Clean Energy Victory Bond Act of 

2 2014’’. 

3 (d) MODIFICATION OF BIOFUEL AS QUALIFIED EN4 ERGY RESOURCE.— 

5 (1) IN GENERAL.—Paragraph (1) of section 

6 45(c) of such Code is amended by striking ‘‘and’’ at 

7 the end of subparagraph (H), by striking the period 

8 at the end of subparagraph (I) and inserting ‘‘, 

9 and’’, and by adding at the end the following new 

10 subparagraph: 

11 ‘‘(J) second generation biomass.’’. 

12 (2) SECOND GENERATION BIOMASS DEFINED.— 

13 Subsection (c) of section 45 of such Code is amend14 ed by adding at the end the following new para15 graph: 

16 ‘‘(11) SECOND GENERATION BIOMASS.—The 

17 term ‘second generation biomass’ means any bio18 mass which is composed of lignocellulosic or 

19 hemicellulosic matter that is available on a renew20 able or recurring basis and that does not replace for21 ested land (other than any fuel described in section 

22 40(b)(6)(E)(iii)).’’. 

23 (3) QUALIFIED FACILITY.—Subsection (d) of 

24 section 45 of such Code is amended by adding at the 

25 end the following new paragraph: 


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1 ‘‘(12) SECOND GENERATION BIOMASS.—In the 

2 case of a facility producing electricity from second 

3 generation biomass, the term ‘qualified facility’ 

4 means any facility owned by the taxpayer which is 

5 originally placed in service on or after the date of 

6 the enactment of this paragraph and before January 

7 1, 2023.’’. 

8 (4) CONFORMING AMENDMENTS.— 

9 (A) Subsection (d) of section 45 of such 

10 Code is amended by striking ‘‘January 1, 

11 2014’’ each place it appears in paragraphs 

12 (2)(A)(i), (3), (6), and (7) and inserting ‘‘the 

13 date of the enactment of the Clean Energy Vic14 tory Bond Act of 2014’’. 

15 (B) Clause (ii) of section 45(d)(2)(A) of 

16 such Code is amended by striking ‘‘January 1, 

17 2014,’’ and inserting ‘‘the date of the enact18 ment of the Clean Energy Victory Bond Act of 

19 2014’’. 

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

21 this section shall apply to property placed in service after 

22 the date of the enactment of this Act. 


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1 SEC. 204. EXTENSION OF CREDIT FOR NONBUSINESS EN2 ERGY PROPERTY. 

3 (a) IN GENERAL.—Paragraph (2) of section 25C(g) 

4 of the Internal Revenue Code of 1986 is amended by strik5 ing ‘‘December 31, 2013’’ and inserting ‘‘December 31, 

6 2022’’. 

7 (b) EFFECTIVE DATE.—The amendment made by 

8 this section shall apply to property placed in service after 

9 December 31, 2013. 

10 SEC. 205. PERFORMANCE BASED HOME ENERGY IMPROVE11 MENTS. 

12 (a) IN GENERAL.—Subpart A of part IV of sub13 chapter A of chapter 1 is amended by adding at the end 

14 the following new section: 

15 ‘‘SEC. 25E. PERFORMANCE BASED ENERGY IMPROVE16 MENTS. 

17 ‘‘(a) IN GENERAL.—In the case of an individual, 

18 there shall be allowed as a credit against the tax imposed 

19 by this chapter for the taxable year for a qualified whole 

20 home energy efficiency retrofit an amount determined 

21 under subsection (b). 

22 ‘‘(b) AMOUNT DETERMINED.— 

23 ‘‘(1) IN GENERAL.—Subject to paragraph (4), 

24 the amount determined under this subsection is 

25 equal to— 


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1 ‘‘(A) the base amount under paragraph 

2 (2), increased by 

3 ‘‘(B) the amount determined under para4 graph (3). 

5 ‘‘(2) BASE AMOUNT.—For purposes of para6 graph (1)(A), the base amount is $2,000, but only 

7 if the energy use for the residence is reduced by at 

8 least 20 percent below the baseline energy use for 

9 such residence as calculated according to paragraph 

10 (5). 

11 ‘‘(3) INCREASE AMOUNT.—For purposes of 

12 paragraph (1)(B), the amount determined under this 

13 paragraph is $500 for each additional 5 percentage 

14 point reduction in energy use. 

15 ‘‘(4) LIMITATION.—In no event shall the 

16 amount determined under this subsection exceed the 

17 lesser of— 

18 ‘‘(A) $5,000 with respect to any residence, 

19 or 

20 ‘‘(B) 30 percent of the qualified home en21 ergy efficiency expenditures paid or incurred by 

22 the taxpayer under subsection (c) with respect 

23 to such residence. 

24 ‘‘(5) DETERMINATION OF ENERGY USE REDUC25 TION.—For purposes of this subsection— 


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1 ‘‘(A) IN GENERAL.—The reduction in en2 ergy use for any residence shall be determined 

3 by modeling the annual predicted percentage re4 duction in total energy costs for heating, cool5 ing, hot water, and permanent lighting. It shall 

6 be modeled using computer modeling software 

7 approved under subsection (d)(2) and a baseline 

8 energy use calculated according to subsection 

9 (d)(1)(C). 

10 ‘‘(B) ENERGY COSTS.—For purposes of 

11 subparagraph (A), the energy cost per unit of 

12 fuel for each fuel type shall be determined by 

13 dividing the total actual energy bill for the resi14 dence for that fuel type for the most recent 

15 available 12-month period by the total energy 

16 units of that fuel type used over the same pe17 riod. 

18 ‘‘(c) QUALIFIED HOME ENERGY EFFICIENCY EX19 PENDITURES.—For purposes of this section, the term 

20 ‘qualified home energy efficiency expenditures’— 

21 ‘‘(1) means any amount paid or incurred by the 

22 taxpayer during the taxable year for a qualified 

23 whole home energy efficiency retrofit, including the 

24 cost of diagnostic procedures, labor, and modeling, 


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1 ‘‘(2) includes only measures that have an aver2 age estimated life of 5 years or more as determined 

3 by the Secretary, after consultation with the Sec4 retary of Energy, 

5 ‘‘(3) does not include any amount which is paid 

6 or incurred in connection with any expansion of the 

7 building envelope of the residence, and 

8 ‘‘(4) does not include improvements to swim9 ming pools or hot tubs or any other expenditure spe10 cifically excluded by the Secretary, after consultation 

11 with the Secretary of Energy. 

12 ‘‘(d) QUALIFIED WHOLE HOME ENERGY EFFI13 CIENCY RETROFIT.—For purposes of this section— 

14 ‘‘(1) IN GENERAL.—The term ‘qualified whole 

15 home energy efficiency retrofit’ means the implemen16 tation of measures placed in service during the tax17 able year intended to reduce the energy use of the 

18 principal residence of the taxpayer which is located 

19 in the United States. A qualified whole home energy 

20 efficiency retrofit shall— 

21 ‘‘(A) be designed, implemented, and in22 stalled by a contractor which is— 

23 ‘‘(i) accredited by the Building Per24 formance Institute (hereafter in this sec25 tion referred to as ‘BPI’) or a preexisting 


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1 BPI accreditation-based State certification 

2 program with enhancements to achieve 

3 State energy policy, 

4 ‘‘(ii) a Residential Energy Services 

5 Network (hereafter in this section referred 

6 to as ‘RESNET’) accredited Energy Smart 

7 Home Performance Team, or 

8 ‘‘(iii) accredited by an equivalent cer9 tification program approved by the Sec10 retary, after consultation with the Sec11 retary of Energy, for this purpose, 

12 ‘‘(B) install a set of measures modeled to 

13 achieve a reduction in energy use of at least 20 

14 percent below the baseline energy use estab15 lished in subparagraph (C), using computer 

16 modeling software approved under paragraph 

17 (2), 

18 ‘‘(C) establish the baseline energy use by 

19 calibrating the model using sections 3 and 4 

20 and Annex D of BPI Standard BPI–2400–S– 

21 2011: Standardized Qualification of Whole 

22 House Energy Savings Estimates, or an equiva23 lent standard approved by the Secretary, after 

24 consultation with the Secretary of Energy, for 

25 this purpose, 


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1 ‘‘(D) document the measures implemented 

2 in the residence through photographs taken be3 fore and after the retrofit, including photo4 graphs of its visible energy systems and enve5 lope as relevant, and 

6 ‘‘(E) implement a test-out procedure, fol7 lowing guidelines of the applicable certification 

8 program specified under clause (i) or (ii) of 

9 subparagraph (A), or equivalent guidelines ap10 proved by the Secretary, after consultation with 

11 the Secretary of Energy, for this purpose, to 

12 ensure— 

13 ‘‘(i) the safe operation of all systems 

14 post retrofit, and 

15 ‘‘(ii) that all improvements are in16 cluded in, and have been installed accord17 ing to, standards of the applicable certifi18 cation program specified under clause (i) 

19 or (ii) of subparagraph (A), or equivalent 

20 standards approved by the Secretary, after 

21 consultation with the Secretary of Energy, 

22 for this purpose. 

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1 retary, in consultation with the Secretary of 

2 Energy. The Secretary shall approve or deny 

3 such submission not later than 180 days after 

4 receipt, and, if the Secretary fails to respond in 

5 that time period, the submitted equivalent cer6 tification program shall be considered approved. 

7 ‘‘(2) APPROVED MODELING SOFTWARE.—For 

8 purposes of paragraph (1)(B), the contractor shall 

9 use modeling software certified by RESNET as fol10 lowing the software verification test suites in section 

11 4.2.1 of RESNET Publication No. 06–001 or cer12 tified by an alternative organization as following an 

13 equivalent standard, as approved by the Secretary, 

14 after consultation with the Secretary of Energy, for 

15 this purpose. 

16 ‘‘(3) DOCUMENTATION.—The Secretary, after 

17 consultation with the Secretary of Energy, shall pre18 scribe regulations directing what specific documenta19 tion is required to be retained or submitted by the 

20 taxpayer in order to claim the credit under this sec21 tion, which shall include, in addition to the photo22 graphs under paragraph (1)(D), a form approved by 

23 the Secretary that is completed and signed by the 

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1 tractor under penalties of perjury. Such form shall 

2 include— 

3 ‘‘(A) a statement that the contractor fol4 lowed the specified procedures for establishing 

5 baseline energy use and estimating reduction in 

6 energy use, 

7 ‘‘(B) the name of the software used for 

8 calculating the baseline energy use and reduc9 tion in energy use, the percentage reduction in 

10 projected energy savings achieved, and a state11 ment that such software was certified for this 

12 program by the Secretary, after consultation 

13 with the Secretary of Energy, 

14 ‘‘(C) a statement that the contractor will 

15 retain the details of the calculations and under16 lying energy bills for 5 years and will make 

17 such details available for inspection by the Sec18 retary or the Secretary of Energy, if so re19 quested, 

20 ‘‘(D) a list of measures installed and a 

21 statement that all measures included in the re22 duction in energy use estimate are included in, 

23 and installed according to, standards of the ap24 plicable certification program specified under 

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1 alent standards approved by the Secretary, 

2 after consultation with the Secretary of Energy, 

3 ‘‘(E) a statement that the contractor meets 

4 the requirements of paragraph (1)(A), and 

5 ‘‘(F) documentation of the total cost of the 

6 project in order to comply with the limitation 

7 under subsection (b)(4)(B). 

8 ‘‘(e) ADDITIONAL RULES.—For purposes of this sec9 tion— 

10 ‘‘(1) NO DOUBLE BENEFIT.— 

11 ‘‘(A) IN GENERAL.—With respect to any 

12 residence, no credit shall be allowed under this 

13 section for any taxable year in which the tax14 payer claims a credit under section 25C. 

15 ‘‘(B) RENEWABLE ENERGY SYSTEMS AND

16 APPLIANCES.—In the case of a renewable en17 ergy system or appliance that qualifies for an18 other credit under this chapter, the resulting re19 duction in energy use shall not be taken into 

20 account in determining the percentage energy 

21 use reductions under subsection (b). 

22 ‘‘(C) NO DOUBLE BENEFIT FOR CERTAIN

23 EXPENDITURES.—The term ‘qualified home en24 ergy efficiency expenditures’ shall not include 

25 any expenditure for which a deduction or credit 


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1 is claimed by the taxpayer under this chapter 

2 for the taxable year or with respect to which 

3 the taxpayer receives any Federal energy effi4 ciency rebate. 

5 ‘‘(2) PRINCIPAL RESIDENCE.—The term ‘prin6 cipal residence’ has the same meaning as when used 

7 in section 121. 

8 ‘‘(3) SPECIAL RULES.—Rules similar to the 

9 rules under paragraphs (4), (5), (6), (7), and (8) of 

10 section 25D(e) and section 25C(e)(2) shall apply, as 

11 determined by the Secretary, after consultation with 

12 the Secretary of Energy. 

13 ‘‘(4) BASIS ADJUSTMENTS.—For purposes of 

14 this subtitle, if a credit is allowed under this section 

15 with respect to any expenditure with respect to any 

16 property, the increase in the basis of such property 

17 which would (but for this paragraph) result from 

18 such expenditure shall be reduced by the amount of 

19 the credit so allowed. 

20 ‘‘(5) ELECTION NOT TO CLAIM CREDIT.—No 

21 credit shall be determined under subsection (a) for 

22 the taxable year if the taxpayer elects not to have 

23 subsection (a) apply to such taxable year. 

24 ‘‘(6) MULTIPLE YEAR RETROFITS.—If the tax25 payer has claimed a credit under this section in a 


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1 previous taxable year, the baseline energy use for the 

2 calculation of reduced energy use must be estab3 lished after the previous retrofit has been placed in 

4 service. 

5 ‘‘(f) TERMINATION.—This section shall not apply 

6 with respect to any costs paid or incurred after December 

7 31, 2022. 

8 ‘‘(g) SECRETARY REVIEW.—The Secretary, after con9 sultation with the Secretary of Energy, shall establish a 

10 review process for the retrofits performed, including an es11 timate of the usage of the credit and a statistically valid 

12 analysis of the average actual energy use reductions, uti13 lizing utility bill data collected on a voluntary basis, and 

14 report to Congress not later than June 30, 2016, any find15 ings and recommendations for— 

16 ‘‘(1) improvements to the effectiveness of the 

17 credit under this section, and 

18 ‘‘(2) expansion of the credit under this section 

19 to rental units.’’. 

20 (b) CONFORMING AMENDMENTS.— 

21 (1) Section 1016(a) is amended— 

22 (A) by striking ‘‘and’’ at the end of para23 graph (36), 

24 (B) by striking the period at the end of 

25 paragraph (37) and inserting ‘‘, and’’, and 


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

2 paragraph: 

3 ‘‘(38) to the extent provided in section 

4 25E(e)(4), in the case of amounts with respect to 

5 which a credit has been allowed under section 

6 25E.’’. 

7 (2) Section 6501(m) is amended by inserting 

8 ‘‘25E(e)(5),’’ after ‘‘section’’. 

9 (3) The table of sections for subpart A of part 

10 IV of subchapter A chapter 1 is amended by insert11 ing after the item relating to section 25D the fol12 lowing new item: 

‘‘Sec. 25E. Performance based energy improvements.’’. 

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

14 this section shall apply to amounts paid or incurred for 

15 a qualified whole home energy efficiency retrofit placed in 

16 service after December 31, 2013. 

17 SEC. 206. EXTENSION OF NEW ENERGY EFFICIENT HOME 

18 CREDIT. 

19 (a) IN GENERAL.—Subsection (g) of section 45L of 

20 the Internal Revenue Code of 1986 is amended by striking 

21 ‘‘December 31, 2013’’ and inserting ‘‘December 31, 

22 2022’’. 

23 (b) EFFECTIVE DATE.—The amendment made by 

24 this section shall apply to homes acquired after December 

25 31, 2013. 


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1 SEC. 207. EXTENSION AND MODIFICATION OF ENERGY EF2 FICIENT COMMERCIAL BUILDINGS DEDUC3 TION. 

4 (a) IN GENERAL.—Subsection (h) of section 179D of 

5 the Internal Revenue Code of 1986 is amended by striking 

6 ‘‘December 31, 2013’’ and inserting ‘‘December 31, 

7 2022’’. 

8 (b) INCREASE IN DEDUCTION LIMITATIONS.— 

9 (1) IN GENERAL.—Subparagraph (A) of section 

10 179D(b)(1) of such Code is amended by striking 

11 ‘‘$1.80’’ and inserting ‘‘$3.00’’. 

12 (2) PARTIAL PAY.—Subparagraph (A) of sec13 tion 179D(d)(1) is amended by striking ‘‘sub14 stituting ‘$.60’ for ‘$1.80’.’’ and inserting ‘‘sub15 stituting ‘$1.00’ for ‘$3.00’.’’. 

16 (3) REDUCED AMOUNT FOR LOWER EFFICIENCY

17 PROPERTY.—Subsection (d) of section 179D of such 

18 Code is amended by adding at the end the following 

19 new paragraph: 

20 ‘‘(1) 30 TO 50 PERCENT PROPERTY.—In the 

21 case of property which would be energy efficient 

22 commercial building property were subsection 

23 (c)(1)(D) applied by substituting ‘more than 30 per24 cent and less than 50 percent’ for ‘50 percent or 

25 more’, subsection (b) shall be applied to such prop26 erty by substituting ‘$1.80’ for ‘$3.00’.’’. 


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1 (c) UPDATING PARTIAL ALLOWANCE REGULA2 TIONS.—Subparagraph (B) of section 179D(d)(1) of such 

3 Code is amended by adding at the end the following: ‘‘Not 

4 later than 1 year after the date of the enactment of the 

5 Clean Energy Victory Bond Act of 2014, and every three 

6 years thereafter, the Secretary shall, after consultation 

7 with the Secretary of Energy, update the targets for such 

8 systems in such a manner as the Secretary determines will 

9 encourage innovation in commercial building energy effi10 ciency.’’. 

11 (d) EFFECTIVE DATE.—The amendment made by 

12 this section shall apply to property placed in service after 

13 December 31, 2013. 

14 SEC. 208. PLUG-IN ELECTRIC VEHICLE GRANTS IN LIEU OF 

15 TAX CREDITS. 

16 (a) IN GENERAL.—The Secretary of Energy, in con17 sultation with the Secretary of the Treasury, shall estab18 lish a voluntary program through which the Secretary of 

19 Energy shall— 

20 (1) authorize the issuance of an electronic 

21 voucher to offset the purchase price of a qualified 

22 plug-in electric vehicle or a new qualified plug-in 

23 electric drive motor vehicle purchased from a dealer 

24 participating in the program; 


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1 (2) register dealers for participation in the pro2 gram and require that all dealers so registered ac3 cept such vouchers as partial payment or down pay4 ment for the purchase of any such vehicle offered for 

5 sale by such dealer; 

6 (3) make electronic payments to dealers for eli7 gible transactions by such dealers; and 

8 (4) in consultation with the Inspector General 

9 of the Department of Transportation establish and 

10 provide for the enforcement of measures to prevent 

11 and penalize fraud under the program. 

12 (b) VOUCHER LIMITATIONS.—A voucher issued 

13 under the program shall have a value that may be applied 

14 to offset the purchase price of a vehicle by— 

15 (1) in the case of a qualified plug-in electric ve16 hicle, $2,500; or 

17 (2) in the case of a new qualified plug-in elec18 tric drive motor vehicle, $2,500 plus an amount de19 termined with respect to the vehicle under section 

20 30D(b)(3) of the Internal Revenue Code of 1986. 

21 (c) TREATED AS ADVANCE PAYMENT OF CREDIT.— 

22 Use of a voucher under the program to offset the purchase 

23 price of a vehicle shall, for purposes of the Internal Rev24 enue Code of 1986, be treated as advance payment of the 

25 credit allowed under section 30 or 30D of such Code, as 


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1 the case may be, and the amount of credit which would 

2 (but for this paragraph) be allowable with respect to such 

3 vehicle under either such section shall be reduced (but not 

4 below zero) by the amount of the voucher so used. 

5 (d) DEFINITIONS AND SPECIAL RULES.—For pur6 poses of this section— 

7 (1) QUALIFIED PLUG-IN ELECTRIC VEHICLE.— 

8 The term ‘‘qualified plug-in electric vehicle’’ shall 

9 have the meaning given such term by section 30(d) 

10 of the Internal Revenue Code of 1986. 

11 (2) NEW QUALIFIED PLUG-IN ELECTRIC DRIVE

12 MOTOR VEHICLE.—The term ‘‘new qualified plug-in 

13 electric drive motor vehicle’’ shall have the meaning 

14 given such term by section 30D(d) of such Code. 

15 (3) NO COMBINATION OF VOUCHERS.—Only 1 

16 voucher issued under the program may be applied 

17 toward the purchase of a single vehicle. 

18 (4) COMBINATION WITH OTHER INCENTIVES

19 PERMITTED.—The availability or use of a Federal, 

20 State, or local incentive or a State-issued voucher 

21 for the purchase of any vehicle shall not limit the 

22 value or issuance of a voucher under the program to 

23 any person otherwise eligible to receive such a 

24 voucher. 


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1 (5) NO ADDITIONAL FEES.—A dealer partici2 pating in the program may not charge a person pur3 chasing a vehicle any additional fees associated with 

4 the use of a voucher under the program. 

5 (6) APPLICATION OF CERTAIN RULES.—Rules 

6 similar to the rules of paragraphs (1), (2), (3), (4), 

7 and (5) of section 30(e) of such Code shall apply for 

8 purposes of this section. 

9 (e) TERMINATION AND PHASEOUT.— 

10 (1) TERMINATION FOR QUALIFIED PLUG-IN

11 ELECTRIC VEHICLES.—This section shall not apply 

12 to any qualified plug-in electric vehicle acquired 

13 after December 31, 2017. 

14 (2) PHASEOUT FOR NEW QUALIFIED PLUG-IN

15 ELECTRIC DRIVE MOTOR VEHICLE.—The amount of 

16 any voucher with respect to any new qualified plug 

17 in electric drive motor vehicle shall be reduced as 

18 provided in section 30D(e) of the Internal Revenue 

19 Code of 1986. 

20 (f) REGULATIONS.—The Secretary of Energy, in con21 sultation with the Secretary of the Treasury, shall pre22 scribe such regulations as may be necessary or appropriate 

23 to carry out the purposes of this section. 

Æ 


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