I 

113TH CONGRESS 

2D SESSION H. R. 5002 

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

credit for nonbusiness energy property. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 26, 2014 

Mr. GERLACH (for himself and Mr. KIND) 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 modify 

and extend 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 of 2014’’. 

6 SEC. 2. MODIFICATION AND EXTENSION OF CREDIT FOR 

7 NONBUSINESS ENERGY PROPERTY. 

8 (a) CREDIT MADE PERMANENT.—Section 25C of the 

9 Internal Revenue Code of 1986 is amended by striking 

10 subsection (g). 


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1 (b) MODIFICATION TO LIMITATIONS.—Subsection (b) 

2 of section 25C of the Internal Revenue Code of 1986 is 

3 amended— 

4 (1) by striking ‘‘$500’’ in paragraph (1) and in5 serting ‘‘$1,000’’, and 

6 (2) by striking paragraph (2) and redesignating 

7 paragraph (3) as paragraph (2). 

8 (c) LABOR COSTS INCLUDED IN CREDIT.—Para9 graph (1) of section 25C(c) of the Internal Revenue Code 

10 of 1986 is amended by adding at the end the following 

11 flush sentence: 

12 ‘‘Such term includes expenditures for labor costs 

13 properly allocable to the onsite preparation, assem14 bly, or original installation of the component.’’. 

15 (d) ROOFS.—Section 25C(c) of the Internal Revenue 

16 Code of 1986 is amended— 

17 (1) in paragraph (1), by striking ‘‘a metal roof 

18 with appropriate pigmented coatings, or an asphalt 

19 roof with appropriate cooling granules,’’ and insert20 ing ‘‘or a roofing product’’, and 

21 (2) in paragraph (2)(D), by striking ‘‘any metal 

22 roof or asphalt roof installed on a dwelling unit, but 

23 only if such roof has appropriate pigmented coatings 

24 or cooling granules which are’’ and inserting ‘‘any 


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1 roofing product installed on a dwelling unit, but only 

2 if such roofing product is’’. 

3 (e) MODIFICATIONS TO RESIDENTIAL ENERGY PROP4 ERTY EXPENDITURES.— 

5 (1) QUALIFIED NATURAL GAS, PROPANE, OR

6 OIL FURNACES OR HOT WATER BOILERS.—Para7 graph (4) of section 25C(d) of the Internal Revenue 

8 Code of 1986 is amended to read as follows: 

9 ‘‘(4) QUALIFIED NATURAL GAS, PROPANE, OR

10 OIL FURNACE OR HOT WATER BOILER.—The term 

11 ‘qualified natural gas, propane, or oil furnace or hot 

12 water boiler’ means— 

13 ‘‘(A) a natural gas or propane furnace 

14 which achieves an annual fuel utilization effi15 ciency rate of not less than 95, 

16 ‘‘(B) a natural gas or propane hot water 

17 boiler which achieves an annual fuel utilization 

18 efficiency rate of not less than 90, 

19 ‘‘(C) an oil furnace or hot water boiler 

20 which— 

21 ‘‘(i) achieves an annual fuel utilization 

22 efficiency rate of not less than 86, and 

23 ‘‘(ii)(I) in the case of a hot water boil24 er, is installed with temperature reset or 


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1 thermal purge controls and an indirect 

2 water heater, and 

3 ‘‘(II) in the case of a furnace, is in4 stalled with an electronically commutated 

5 blower motor.’’. 

6 (2) WATER HEATERS.— 

7 (A) IN GENERAL.—Paragraph (3) of sec8 tion 25C(d) of the Internal Revenue Code of 

9 1986 is amended— 

10 (i) by striking ‘‘electric heat pump 

11 water heater’’ in subparagraph (A) and in12 serting ‘‘integrated heat pump water heat13 er’’, 

14 (ii) by striking ‘‘a natural gas, pro15 pane, or oil water heater’’ in subparagraph 

16 (D) and inserting ‘‘an oil water heater’’, 

17 and 

18 (iii) by redesignating subparagraph 

19 (E) as subparagraph (G) and inserting 

20 after subparagraph (D) the following new 

21 subparagraphs: 

22 ‘‘(E) a natural gas or propane storage 

23 water heater with an energy factor of at least 

24 0.67 or a thermal efficiency of at least 90 per25 cent, 


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1 ‘‘(F) a natural gas or propane tankless 

2 water heater with an energy factor of at least 

3 0.82 or a thermal efficiency of at least 90 per4 cent, and’’. 

5 (B) LIMITATION.—Paragraph (2) of sec6 tion 25C(b) of such Code, as redesignated by 

7 subsection (b), is amended by striking subpara8 graphs (A) through (C) and inserting the fol9 lowing: 

10 ‘‘(A) $1,000 in the case of— 

11 ‘‘(i) any water heater described in 

12 subsection (d)(3)(A), 

13 ‘‘(ii) any natural gas storage water 

14 heater described in subsection (d)(3)(E) 

15 which— 

16 ‘‘(I) has an energy factor of 0.80 

17 or higher, or 

18 ‘‘(II) has a thermal efficiency of 

19 at least 90 percent, and 

20 ‘‘(iii) any natural gas tankless water 

21 heater described in subsection (d)(3)(F) 

22 which— 

23 ‘‘(I) has an energy factor of 0.90 

24 or higher, or 


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1 ‘‘(II) has a thermal efficiency of 

2 at least 90 percent, and 

3 ‘‘(B) $500 in the case of— 

4 ‘‘(i) any natural gas storage water 

5 heater described in subsection (d)(3)(E) 

6 which has an energy factor which is at 

7 least 0.67 and less than 0.80, and 

8 ‘‘(ii) any natural gas tankless water 

9 heater described in subsection (d)(3)(F) 

10 which has an energy factor which is at 

11 least 0.82 and less than 0.90.’’. 

12 (f) DOCUMENTATION REQUIREMENT.—Subsection 

13 (e) of section 25C of the Internal Revenue Code of 1986 

14 is amended by adding at the end the following new para15 graph: 

16 ‘‘(4) DOCUMENTATION.— 

17 ‘‘(A) IN GENERAL.—No credit shall be al18 lowed under subsection (a) for any amount paid 

19 or incurred for a qualified energy efficiency im20 provement or for any residential energy prop21 erty expenditure unless the taxpayer includes on 

22 the return of tax for the taxable year the 

23 verifiable product identification number with re24 spect to— 


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1 ‘‘(i) in the case of a qualified energy 

2 efficiency improvement, the component in3 stalled in or on the taxpayer’s dwelling 

4 unit, and 

5 ‘‘(ii) in the case of a residential en6 ergy property expenditure, the qualified en7 ergy property. 

8 ‘‘(B) VERIFIABLE PRODUCT IDENTIFICA9 TION NUMBER.—For purposes of this para10 graph, the term ‘verifiable product identifica11 tion number’ means— 

12 ‘‘(i) in the case of any insulation ma13 terial or system described in subsection 

14 (c)(2)(A)— 

15 ‘‘(I) if such material or system is 

16 installed by a contractor, a signed and 

17 dated statement from the contractor 

18 describing the insulation installed, in19 cluding the thickness, coverage area, 

20 R-value, and such other information 

21 required by the Secretary, in consulta22 tion with the Chairman of the Federal 

23 Trade Commission, and 

24 ‘‘(II) in any other case, such in25 formation about the material or sysVerDate Mar 15 2010 04:05 Jul 02, 2014 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H5002.IH H5002

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1 tem installed as the Secretary may re2 quire, 

3 ‘‘(ii) in the case of any exterior door, 

4 exterior window, or skylight, the National 

5 Fenestration Rating Council certified prod6 uct detail number or such other identifica7 tion number determined by the Secretary, 

8 ‘‘(iii) in the case of any roof described 

9 in subsection (c)(2)(C), the Cool Roof Rat10 ing Council rated roofing product identi11 fication number or such other identifica12 tion number determined by the Secretary, 

13 and 

14 ‘‘(iv) in the case of any qualified en15 ergy property, the Air-Conditioning Heat16 ing and Refrigeration Institute certified 

17 reference number or such other identifica18 tion number used for heating, air condi19 tioning, ventilation, or water heating 

20 equipment as determined by the Sec21 retary.’’. 

22 (g) EFFECTIVE DATES.— 

23 (1) IN GENERAL.—Except as provided by para24 graph (2), the amendments made by this section 


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1 shall apply to property placed in service after De2 cember 31, 2013. 

3 (2) PERMANENT EXTENSION.—The amendment 

4 made by subsection (a) shall apply to property 

5 placed in service after December 31, 2013. 

Æ 


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