I 

113TH CONGRESS 

2D SESSION H. R. 5775 

To amend the Internal Revenue Code of 1986 to extend certain expiring 

energy tax incentives. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 1, 2014 

Mr. KELLY of Pennsylvania (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 extend 

certain expiring energy tax incentives. 

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, ETC. 

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

5 ‘‘Powering American Jobs Act of 2014’’. 

6 (b) AMENDMENT OF 1986 CODE.—Except as other7 wise expressly provided, whenever in this Act an amend8 ment or repeal is expressed in terms of an amendment 

9 to, or repeal of, a section or other provision, the reference 


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1 shall be considered to be made to a section or other provi2 sion of the Internal Revenue Code of 1986. 

3 (c) TABLE OF CONTENTS.—The table of contents for 

4 this Act is as follows: 

Sec. 1. Short title, etc. 

Sec. 2. Extension and modification of credit for nonbusiness energy property. 

Sec. 3. Extension of excise tax credits relating to certain fuels. 

Sec. 4. Extension of credit for alternative fuel vehicle refueling property. 

Sec. 5. Extension of incentives for biodiesel and renewable diesel. 

Sec. 6. Equalization of excise tax on liquefied natural gas and liquefied petroleum gas. 

5 SEC. 2. EXTENSION AND MODIFICATION OF CREDIT FOR 

6 NONBUSINESS ENERGY PROPERTY. 

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

8 is amended by striking ‘‘December 31, 2013’’ and insert9 ing ‘‘December 31, 2015’’. 

10 (b) UPDATED ENERGY STAR REQUIREMENTS FOR

11 WINDOWS, DOORS, SKYLIGHTS, AND ROOFING.— 

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

13 25C(c) is amended by striking ‘‘which meets’’ and 

14 all that follows through ‘‘requirements)’’. 

15 (2) ENERGY EFFICIENT BUILDING ENVELOPE

16 COMPONENT.—Subsection (c) of section 25C is 

17 amended by redesignating paragraphs (2) and (3) as 

18 paragraphs (3) and (4), respectively, and by insert19 ing after paragraph (1) the following new para20 graph: 

21 ‘‘(2) ENERGY EFFICIENT BUILDING ENVELOPE

22 COMPONENT.—The term ‘energy efficient building 


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1 envelope component’ means a building envelope com2 ponent which meets— 

3 ‘‘(A) applicable Energy Star program re4 quirements, in the case of a roof or roof prod5 ucts, 

6 ‘‘(B) version 6.0 Energy Star program re7 quirements, in the case of an exterior window, 

8 a skylight, or an exterior door, and 

9 ‘‘(C) the prescriptive criteria for such com10 ponent established by the 2009 International 

11 Energy Conservation Code, as such Code (in12 cluding supplements) is in effect on the date of 

13 the enactment of the American Recovery and 

14 Reinvestment Tax Act of 2009, in the case of 

15 any other component.’’. 

16 (3) CONFORMING AMENDMENT.—Subparagraph 

17 (D) of section 25C(c)(3), as so redesignated, is 

18 amended to read as follows: 

19 ‘‘(D) any roof or roof products which are 

20 installed on a dwelling unit and are specifically 

21 and primarily designed to reduce the heat gain 

22 of such dwelling unit.’’. 

23 (c) SEPARATE STANDARDS FOR TANKLESS AND

24 STORAGE WATER HEATERS.—Subparagraph (D) of secVerDate Sep 11 2014 19:25 Dec 03, 2014 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5775.IH H5775

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1 tion 25C(d)(3) is amended by striking ‘‘which has either’’ 

2 and all that follows and inserting ‘‘which has— 

3 ‘‘(i) in the case of a natural gas, pro4 pane, or oil storage water heater, an en5 ergy factor of at least 0.80 or a thermal 

6 efficiency of at least 90 percent, 

7 ‘‘(ii) in the case of an electric heat 

8 pump storage water heater, an energy fac9 tor of at least 2.0, 

10 ‘‘(iii) effective April 16, 2015, in the 

11 case of a natural gas, propane, or oil stor12 age water heater, with a rated BTU input 

13 of no more than 75,000 BTU/hr, an en14 ergy factor of at least 0.80 or, with a rated 

15 BTU input greater than 75,000 BTU/hr, a 

16 thermal efficiency of at least 90 percent, 

17 ‘‘(iv) effective April 16, 2015, in the 

18 case of an electric heat pump storage 

19 water heater, with a water storage capacity 

20 equal to or less than 55 gallons, an energy 

21 factor of at least 2.0 or, with a water stor22 age capacity equal to or greater than 55 

23 gallons, an energy factor of at least 2.2, 

24 and 


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1 ‘‘(v) in the case of any other water 

2 heater, an energy factor of at least 0.90 or 

3 a thermal efficiency of at least 90 percent, 

4 and’’. 

5 (d) MODIFICATION OF TESTING STANDARDS FOR

6 BIOMASS STOVES.—Subparagraph (E) of section 

7 25C(d)(3) is amended by inserting before the period the 

8 following: ‘‘, when tested using the higher heating value 

9 of the fuel and in accordance with the Canadian Standards 

10 Administration B415.1 test protocol’’. 

11 (e) MODIFICATIONS TO RESIDENTIAL ENERGY PROP12 ERTY EXPENDITURES.— 

13 (1) QUALIFIED NATURAL GAS, PROPANE, OR

14 OIL FURNACES OR HOT WATER BOILERS.—Para15 graph (4) of section 25C(d) is amended to read as 

16 follows: 

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

18 OIL FURNACE OR HOT WATER BOILER.—The term 

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

20 water boiler’ means— 

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

22 which achieves an annual fuel utilization effi23 ciency rate of not less than 95, 


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

2 boiler which achieves an annual fuel utilization 

3 efficiency rate of not less than 90, and 

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

5 which— 

6 ‘‘(i) achieves an annual fuel utilization 

7 efficiency rate of not less than 87, and 

8 ‘‘(ii)(I) in the case of a hot water boil9 er, is installed with an indirect water heat10 er, and 

11 ‘‘(II) in the case of a furnace, is in12 stalled with an electronically commutated 

13 blower motor.’’. 

14 (f) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to property placed in service after 

16 December 31, 2013. 

17 SEC. 3. EXTENSION OF EXCISE TAX CREDITS RELATING TO 

18 CERTAIN FUELS. 

19 (a) EXCISE TAX CREDITS AND OUTLAY PAYMENTS

20 FOR BIODIESEL AND RENEWABLE DIESEL FUEL MIX21 TURES.— 

22 (1) Paragraph (6) of section 6426(c) is amend23 ed by striking ‘‘December 31, 2013’’ and inserting 

24 ‘‘December 31, 2015’’. 


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1 (2) Subparagraph (B) of section 6427(e)(6) is 

2 amended by striking ‘‘December 31, 2013’’ and in3 serting ‘‘December 31, 2015’’. 

4 (b) EXTENSION OF ALTERNATIVE FUELS EXCISE

5 TAX CREDITS.— 

6 (1) IN GENERAL.—Sections 6426(d)(5) and 

7 6426(e)(3) are each amended by striking ‘‘December 

8 31, 2013’’ and inserting ‘‘December 31, 2015’’. 

9 (2) OUTLAY PAYMENTS FOR ALTERNATIVE

10 FUELS.—Subparagraph (C) of section 6427(e)(6) is 

11 amended by striking ‘‘December 31, 2013’’ and in12 serting ‘‘December 31, 2015’’. 

13 (c) EXTENSION OF ALTERNATIVE FUELS EXCISE

14 TAX CREDITS RELATING TO LIQUEFIED HYDROGEN.— 

15 (1) IN GENERAL.—Sections 6426(d)(5) and 

16 6426(e)(3), as amended by subsection (b), are each 

17 amended by striking ‘‘(September 30, 2014 in the 

18 case of any sale or use involving liquefied hydro19 gen)’’. 

20 (2) OUTLAY PAYMENTS FOR ALTERNATIVE

21 FUELS.—Paragraph (6) of section 6427(e) is 

22 amended— 

23 (A) by striking ‘‘except as provided in sub24 paragraph (D), any’’ in subparagraph (C), as 

25 amended by this Act, and inserting ‘‘any’’, 


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1 (B) by striking the comma at the end of 

2 subparagraph (C) and inserting ‘‘, and’’, and 

3 (C) by striking subparagraph (D) and re4 designating subparagraph (E) as subparagraph 

5 (D). 

6 (d) EFFECTIVE DATES.— 

7 (1) IN GENERAL.—Except as provided in para8 graph (2), the amendments made by this section 

9 shall apply to fuel sold or used after December 31, 

10 2013. 

11 (2) LIQUEFIED HYDROGEN.—The amendments 

12 made by subsection (c) shall apply to fuels sold or 

13 used after September 30, 2014. 

14 (e) SPECIAL RULE FOR CERTAIN PERIODS DURING

15 2014.—Notwithstanding any other provision of law, in the 

16 case of— 

17 (1) any biodiesel mixture credit properly deter18 mined under section 6426(c) of the Internal Revenue 

19 Code of 1986 for periods after December 31, 2013, 

20 and before the date of the enactment of this Act, 

21 and 

22 (2) any alternative fuel credit properly deter23 mined under section 6426(d) of such Code for such 

24 periods, 


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1 such credit shall be allowed, and any refund or payment 

2 attributable to such credit (including any payment under 

3 section 6427(e) of such Code) shall be made, only in such 

4 manner as the Secretary of the Treasury (or the Sec5 retary’s delegate) shall provide. Such Secretary shall issue 

6 guidance within 30 days after the date of the enactment 

7 of this Act providing for a one-time submission of claims 

8 covering periods described in the preceding sentence. Such 

9 guidance shall provide for a 180-day period for the sub10 mission of such claims (in such manner as prescribed by 

11 such Secretary) to begin not later than 30 days after such 

12 guidance is issued. Such claims shall be paid by such Sec13 retary not later than 60 days after receipt. If such Sec14 retary has not paid pursuant to a claim filed under this 

15 subsection within 60 days after the date of the filing of 

16 such claim, the claim shall be paid with interest from such 

17 date determined by using the overpayment rate and meth18 od under section 6621 of such Code. 

19 SEC. 4. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL 

20 VEHICLE REFUELING PROPERTY. 

21 (a) IN GENERAL.—Subsection (g) of section 30C is 

22 amended by striking ‘‘placed in service’’ and all that fol23 lows and inserting ‘‘placed in service after December 31, 

24 2015.’’. 


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

2 this section shall apply to property placed in service after 

3 December 31, 2013. 

4 SEC. 5. EXTENSION OF INCENTIVES FOR BIODIESEL AND 

5 RENEWABLE DIESEL. 

6 (a) CREDITS FOR BIODIESEL AND RENEWABLE DIE7 SEL USED AS FUEL.—Subsection (g) of section 40A is 

8 amended by striking ‘‘December 31, 2013’’ and inserting 

9 ‘‘December 31, 2015’’. 

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

11 this section shall apply to fuel sold or used after December 

12 31, 2013. 

13 SEC. 6. EQUALIZATION OF EXCISE TAX ON LIQUEFIED NAT14 URAL GAS AND LIQUEFIED PETROLEUM GAS. 

15 (a) LIQUEFIED PETROLEUM GAS.— 

16 (1) IN GENERAL.—Subparagraph (B) of section 

17 4041(a)(2) of the Internal Revenue Code of 1986 is 

18 amended by striking ‘‘and’’ at the end of clause (i), 

19 by redesignating clause (ii) as clause (iii), and by in20 serting after clause (i) the following new clause: 

21 ‘‘(ii) in the case of liquefied petroleum 

22 gas, 18.3 cents per energy equivalent of a 

23 gallon of gasoline, and’’. 

24 (2) ENERGY EQUIVALENT OF A GALLON OF

25 GASOLINE.—Paragraph (2) of section 4041(a) of the 


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1 Internal Revenue Code of 1986 is amended by add2 ing at the end the following: 

3 ‘‘(C) ENERGY EQUIVALENT OF A GALLON

4 OF GASOLINE.—For purposes of this para5 graph, the term ‘energy equivalent of a gallon 

6 of gasoline’ means, with respect to a liquefied 

7 petroleum gas fuel, the amount of such fuel 

8 having a Btu content of 115,400 (lower heating 

9 value).’’. 

10 (b) LIQUEFIED NATURAL GAS.— 

11 (1) IN GENERAL.—Subparagraph (B) of section 

12 4041(a)(2) of the Internal Revenue Code of 1986, as 

13 amended by subsection (a)(1), is amended by strik14 ing ‘‘and’’ at the end of clause (ii), by striking the 

15 period at the end of clause (iii) and inserting ‘‘, 

16 and’’ and by inserting after clause (iii) the following 

17 new clause: 

18 ‘‘(iv) in the case of liquefied natural 

19 gas, 24.3 cents per energy equivalent of a 

20 gallon of diesel.’’. 

21 (2) ENERGY EQUIVALENT OF A GALLON OF

22 DIESEL.—Paragraph (2) of section 4041(a) of the 

23 Internal Revenue Code of 1986, as amended by sub24 section (a)(2), is amended by adding at the end the 

25 following: 


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1 ‘‘(D) ENERGY EQUIVALENT OF A GALLON

2 OF DIESEL.—For purposes of this paragraph, 

3 the term ‘energy equivalent of a gallon of diesel’ 

4 means, with respect to a liquefied natural gas 

5 fuel, the amount of such fuel having a Btu con6 tent of 128,700 (lower heating value).’’. 

7 (3) CONFORMING AMENDMENTS.—Section 

8 4041(a)(2)(B)(iv) of the Internal Revenue Code of 

9 1986, as redesignated by subsection (a)(1) and para10 graph (1), is amended— 

11 (A) by striking ‘‘liquefied natural gas,’’, 

12 and 

13 (B) by striking ‘‘peat), and’’ and inserting 

14 ‘‘peat) and’’. 

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

16 this section shall apply to any sale or use of fuel after 

17 September 30, 2014. 

Æ 


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