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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5002 Introduced in House (IH)]

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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Home Energy Savings Act of 2014''.

SEC. 2. MODIFICATION AND EXTENSION OF CREDIT FOR NONBUSINESS ENERGY 
              PROPERTY.

    (a) Credit Made Permanent.--Section 25C of the Internal Revenue 
Code of 1986 is amended by striking subsection (g).
    (b) Modification to Limitations.--Subsection (b) of section 25C of 
the Internal Revenue Code of 1986 is amended--
            (1) by striking ``$500'' in paragraph (1) and inserting 
        ``$1,000'', and
            (2) by striking paragraph (2) and redesignating paragraph 
        (3) as paragraph (2).
    (c) Labor Costs Included in Credit.--Paragraph (1) of section 
25C(c) of the Internal Revenue Code of 1986 is amended by adding at the 
end the following flush sentence:
        ``Such term includes expenditures for labor costs properly 
        allocable to the onsite preparation, assembly, or original 
        installation of the component.''.
    (d) Roofs.--Section 25C(c) of the Internal Revenue Code of 1986 is 
amended--
            (1) in paragraph (1), by striking ``a metal roof with 
        appropriate pigmented coatings, or an asphalt roof with 
        appropriate cooling granules,'' and inserting ``or a roofing 
        product'', and
            (2) in paragraph (2)(D), by striking ``any metal roof or 
        asphalt roof installed on a dwelling unit, but only if such 
        roof has appropriate pigmented coatings or cooling granules 
        which are'' and inserting ``any roofing product installed on a 
        dwelling unit, but only if such roofing product is''.
    (e) Modifications to Residential Energy Property Expenditures.--
            (1) Qualified natural gas, propane, or oil furnaces or hot 
        water boilers.--Paragraph (4) of section 25C(d) of the Internal 
        Revenue Code of 1986 is amended to read as follows:
            ``(4) Qualified natural gas, propane, or oil furnace or hot 
        water boiler.--The term `qualified natural gas, propane, or oil 
        furnace or hot water boiler' means--
                    ``(A) a natural gas or propane furnace which 
                achieves an annual fuel utilization efficiency rate of 
                not less than 95,
                    ``(B) a natural gas or propane hot water boiler 
                which achieves an annual fuel utilization efficiency 
                rate of not less than 90,
                    ``(C) an oil furnace or hot water boiler which--
                            ``(i) achieves an annual fuel utilization 
                        efficiency rate of not less than 86, and
                            ``(ii)(I) in the case of a hot water 
                        boiler, is installed with temperature reset or 
                        thermal purge controls and an indirect water 
                        heater, and
                            ``(II) in the case of a furnace, is 
                        installed with an electronically commutated 
                        blower motor.''.
            (2) Water heaters.--
                    (A) In general.--Paragraph (3) of section 25C(d) of 
                the Internal Revenue Code of 1986 is amended--
                            (i) by striking ``electric heat pump water 
                        heater'' in subparagraph (A) and inserting 
                        ``integrated heat pump water heater'',
                            (ii) by striking ``a natural gas, propane, 
                        or oil water heater'' in subparagraph (D) and 
                        inserting ``an oil water heater'', and
                            (iii) by redesignating subparagraph (E) as 
                        subparagraph (G) and inserting after 
                        subparagraph (D) the following new 
                        subparagraphs:
                    ``(E) a natural gas or propane storage water heater 
                with an energy factor of at least 0.67 or a thermal 
                efficiency of at least 90 percent,
                    ``(F) a natural gas or propane tankless water 
                heater with an energy factor of at least 0.82 or a 
                thermal efficiency of at least 90 percent, and''.
                    (B) Limitation.--Paragraph (2) of section 25C(b) of 
                such Code, as redesignated by subsection (b), is 
                amended by striking subparagraphs (A) through (C) and 
                inserting the following:
                    ``(A) $1,000 in the case of--
                            ``(i) any water heater described in 
                        subsection (d)(3)(A),
                            ``(ii) any natural gas storage water heater 
                        described in subsection (d)(3)(E) which--
                                    ``(I) has an energy factor of 0.80 
                                or higher, or
                                    ``(II) has a thermal efficiency of 
                                at least 90 percent, and
                            ``(iii) any natural gas tankless water 
                        heater described in subsection (d)(3)(F) 
                        which--
                                    ``(I) has an energy factor of 0.90 
                                or higher, or
                                    ``(II) has a thermal efficiency of 
                                at least 90 percent, and
                    ``(B) $500 in the case of--
                            ``(i) any natural gas storage water heater 
                        described in subsection (d)(3)(E) which has an 
                        energy factor which is at least 0.67 and less 
                        than 0.80, and
                            ``(ii) any natural gas tankless water 
                        heater described in subsection (d)(3)(F) which 
                        has an energy factor which is at least 0.82 and 
                        less than 0.90.''.
    (f) Documentation Requirement.--Subsection (e) of section 25C of 
the Internal Revenue Code of 1986 is amended by adding at the end the 
following new paragraph:
            ``(4) Documentation.--
                    ``(A) In general.--No credit shall be allowed under 
                subsection (a) for any amount paid or incurred for a 
                qualified energy efficiency improvement or for any 
                residential energy property expenditure unless the 
                taxpayer includes on the return of tax for the taxable 
                year the verifiable product identification number with 
                respect to--
                            ``(i) in the case of a qualified energy 
                        efficiency improvement, the component installed 
                        in or on the taxpayer's dwelling unit, and
                            ``(ii) in the case of a residential energy 
                        property expenditure, the qualified energy 
                        property.
                    ``(B) Verifiable product identification number.--
                For purposes of this paragraph, the term `verifiable 
                product identification number' means--
                            ``(i) in the case of any insulation 
                        material or system described in subsection 
                        (c)(2)(A)--
                                    ``(I) if such material or system is 
                                installed by a contractor, a signed and 
                                dated statement from the contractor 
                                describing the insulation installed, 
                                including the thickness, coverage area, 
                                R-value, and such other information 
                                required by the Secretary, in 
                                consultation with the Chairman of the 
                                Federal Trade Commission, and
                                    ``(II) in any other case, such 
                                information about the material or 
                                system installed as the Secretary may 
                                require,
                            ``(ii) in the case of any exterior door, 
                        exterior window, or skylight, the National 
                        Fenestration Rating Council certified product 
                        detail number or such other identification 
                        number determined by the Secretary,
                            ``(iii) in the case of any roof described 
                        in subsection (c)(2)(C), the Cool Roof Rating 
                        Council rated roofing product identification 
                        number or such other identification number 
                        determined by the Secretary, and
                            ``(iv) in the case of any qualified energy 
                        property, the Air-Conditioning Heating and 
                        Refrigeration Institute certified reference 
                        number or such other identification number used 
                        for heating, air conditioning, ventilation, or 
                        water heating equipment as determined by the 
                        Secretary.''.
    (g) Effective Dates.--
            (1) In general.--Except as provided by paragraph (2), the 
        amendments made by this section shall apply to property placed 
        in service after December 31, 2013.
            (2) Permanent extension.--The amendment made by subsection 
        (a) shall apply to property placed in service after December 
        31, 2013.
                                 <all>
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