II 

110TH CONGRESS 

1ST SESSION S. 1525 

To amend the Internal Revenue Code of 1986 to modify the energy efficient 

appliance credit for appliances produced after 2007. 

IN THE SENATE OF THE UNITED STATES 

MAY 24, 2007 

Mr. SMITH (for himself, Mrs. LINCOLN, Ms. CANTWELL, and Ms. SNOWE) introduced the following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to modify 

the energy efficient appliance credit for appliances produced after 2007. 

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 ‘‘Super-Efficient Appli5 ance Incentives and Market Transformation Act of 2007’’. 


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1 SEC. 2. MODIFICATIONS OF ENERGY EFFICIENT APPLI2 ANCE CREDIT FOR APPLIANCES PRODUCED 

3 AFTER 2007. 

4 (a) IN GENERAL.—Section 45M of the Internal Rev5 enue Code of 1986 is amended to read as follows: 

6 ‘‘SEC. 45M. ENERGY EFFICIENT APPLIANCE CREDIT. 

7 ‘‘(a) GENERAL RULE.— 

8 ‘‘(1) IN GENERAL.—For purposes of section 38, 

9 the energy efficient appliance credit determined 

10 under this section for any taxable year is an amount 

11 equal to the sum of the credit amounts determined 

12 under paragraph (2) for each type of qualified en13 ergy efficient appliance produced by the taxpayer 

14 during the calendar year ending with or within the 

15 taxable year. 

16 ‘‘(2) CREDIT AMOUNTS.—The credit amount 

17 determined for any type of qualified energy efficient 

18 appliance is— 

19 ‘‘(A) the applicable amount determined 

20 under subsection (b) with respect to such type, 

21 multiplied by 

22 ‘‘(B) the eligible production for such type. 

23 ‘‘(b) APPLICABLE AMOUNT.—For purposes of sub24 section (a)— 

25 ‘‘(1) DISHWASHERS.—The applicable amount 

26 is— 


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1 ‘‘(A) $45 in the case of a residential model 

2 dishwasher which— 

3 ‘‘(i) is manufactured in calendar year 

4 2008 or 2009, and 

5 ‘‘(ii) uses not more than 324 kilowatt 

6 hours per year and 5.8 gallons per cycle, 

7 and 

8 ‘‘(B) $75 in the case of a residential model 

9 dishwasher which— 

10 ‘‘(i) is manufactured in calendar year 

11 2008, 2009, or 2010, and 

12 ‘‘(ii) uses not more than 307 kilowatt 

13 hours per year and 5.0 gallons per cycle 

14 (5.5 gallons for dishwashers designed for 

15 greater than 12 place settings). 

16 ‘‘(2) CLOTHES WASHERS.—The applicable 

17 amount is— 

18 ‘‘(A) $75 in the case of a residential model 

19 top-loading clothes washer which— 

20 ‘‘(i) is manufactured in calendar year 

21 2008, and 

22 ‘‘(ii) meets or exceeds a 1.72 MEF 

23 and does not exceed an 8.0 water con24 sumption factor, 


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1 ‘‘(B) $125 in the case of a residential 

2 model top-loading clothes washer which— 

3 ‘‘(i) is manufactured in calendar year 

4 2008 or 2009, and 

5 ‘‘(ii) meets or exceeds a 1.8 MEF and 

6 does not exceed a 7.5 water consumption 

7 factor, 

8 ‘‘(C) $150 in the case of a residential or 

9 commercial model clothes washer which— 

10 ‘‘(i) is manufactured in calendar year 

11 2008, 2009, or 2010, and 

12 ‘‘(ii) meets or exceeds 2.0 MEF and 

13 does not exceed a 6.0 water consumption 

14 factor, and 

15 ‘‘(D) $250 in the case of a residential or 

16 commercial model clothes washer which— 

17 ‘‘(i) is manufactured in calendar year 

18 2008, 2009, or 2010, and 

19 ‘‘(ii) meets or exceeds 2.2 MEF and 

20 does not exceed a 4.5 water consumption 

21 factor. 

22 ‘‘(3) REFRIGERATORS.—The applicable amount 

23 is— 

24 ‘‘(A) $50 in the case of a residential model 

25 refrigerator which— 


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1 ‘‘(i) is manufactured in calendar year 

2 2008, and 

3 ‘‘(ii) consumes at least 20 percent, 

4 but not more than 22.9 percent, less kilo5 watt hours per year than the 2001 energy 

6 conservation standards, 

7 ‘‘(B) $75 in the case of a residential model 

8 refrigerator which— 

9 ‘‘(i) is manufactured in calendar year 

10 2008 or 2009, and 

11 ‘‘(ii) consumes at least 23 percent, 

12 but not more than 24.9 percent, less kilo13 watt hours per year than the 2001 energy 

14 conservation standards, 

15 ‘‘(C) $100 in the case of a residential 

16 model refrigerator which— 

17 ‘‘(i) is manufactured in calendar year 

18 2008, 2009, or 2010, and 

19 ‘‘(ii) consumes at least 25 percent, 

20 but not more than 29.9 percent, less kilo21 watt hours per year than the 2001 energy 

22 conservation standards, and 

23 ‘‘(D) $200 in the case of a residential 

24 model refrigerator which— 


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1 ‘‘(i) is manufactured in calendar year 

2 2008, 2009, or 2010, and 

3 ‘‘(ii) consumes at least 30 percent less 

4 kilowatt hours per year than the 2001 en5 ergy conservation standards. 

6 ‘‘(4) DEHUMIDIFIERS.—The applicable amount 

7 is— 

8 ‘‘(A) $15 in the case of a dehumidifier 

9 which— 

10 ‘‘(i) is manufactured in calendar year 

11 2008, and 

12 ‘‘(ii) has a capacity less than or equal 

13 to 45 pints per day and is 7.5 percent 

14 more efficient than the applicable Depart15 ment of Energy energy conservation stand16 ard effective October 2012, and 

17 ‘‘(B) $25 in the case of a dehumidifier 

18 which— 

19 ‘‘(i) is manufactured in calendar year 

20 2008, and 

21 ‘‘(ii) has a capacity greater than 45 

22 pints per day and is 7.5 percent more effi23 cient than such conservation standard. 


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1 ‘‘(c) ELIGIBLE PRODUCTION.—The eligible produc2 tion in a calendar year with respect to each type of quali3 fied energy efficient appliance is the excess of— 

4 ‘‘(1) the number of appliances of such type 

5 which are produced by the taxpayer for sale within 

6 the United States during such calendar year, over 

7 ‘‘(2) the average number of appliances of such 

8 type which were produced by the taxpayer (or any 

9 predecessor) for sale within the United States dur10 ing the preceding 2-calendar year period. 

11 ‘‘(d) TYPES OF QUALIFIED ENERGY EFFICIENT AP12 PLIANCES.—For purposes of this section, the types of 

13 qualified energy efficient appliances are— 

14 ‘‘(1) dishwashers described in subsection (b)(1), 

15 ‘‘(2) clothes washers described in subsection 

16 (b)(2), 

17 ‘‘(3) refrigerators described in subsection 

18 (b)(3), and 

19 ‘‘(4) dehumidifiers described in subsection 

20 (b)(4). 

21 ‘‘(e) LIMITATIONS.— 

22 ‘‘(1) AGGREGATE CREDIT AMOUNT ALLOWED.— 

23 Except as provided in paragraph (2), the aggregate 

24 amount of credit allowed under subsection (a) with 

25 respect to a taxpayer for any taxable year shall not 


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1 exceed $100,000,000 reduced by the amount of the 

2 credit allowed under subsection (a) to the taxpayer 

3 (or any predecessor) for all prior taxable years be4 ginning after December 31, 2007. 

5 ‘‘(2) AMOUNT ALLOWED FOR CERTAIN

6 CLOTHES WASHERS AND REFRIGERATORS.—For 

7 purposes of paragraph (1), clothes washers described 

8 in subsection (b)(2)(D) and refrigerators described 

9 in subsection (b)(3)(D) shall not be taken into ac10 count. 

11 ‘‘(3) LIMITATION BASED ON GROSS RE12 CEIPTS.—The credit allowed under subsection (a) 

13 with respect to a taxpayer for the taxable year shall 

14 not exceed an amount equal to 2 percent of the aver15 age annual gross receipts of the taxpayer for the 3 

16 taxable years preceding the taxable year in which 

17 the credit is determined beginning after December 

18 31, 2007. 

19 ‘‘(4) GROSS RECEIPTS.—For purposes of this 

20 subsection, the rules of paragraphs (2) and (3) of 

21 section 448(c) shall apply. 

22 ‘‘(f) DEFINITIONS.—For purposes of this section: 

23 ‘‘(1) DISHWASHER.—The term ‘dishwasher’ 

24 means a dishwasher subject to the energy conservaVerDate Aug 31 2005 20:37 May 27, 2007 Jkt 059196 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1525.IS S1525

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1 tion standards established by the Department of En2 ergy. 

3 ‘‘(2) CLOTHES WASHER.—The term ‘clothes 

4 washer’ includes a clothes washer subject to the en5 ergy conservation standards established by the De6 partment of Energy. 

7 ‘‘(3) TOP-LOADING CLOTHES WASHER.—The 

8 term ‘top-loading clothes washer’ means a clothes 

9 washer with the clothes container compartment ac10 cess located on the top of the machine. 

11 ‘‘(4) REFRIGERATOR.—The term ‘refrigerator’ 

12 means an automatic defrost refrigerator-freezer 

13 which has an internal volume of at least 16.5 cubic 

14 feet. 

15 ‘‘(5) DEHUMIDIFIER.—The term ‘dehumidifier’ 

16 means a self-contained, electrically operated, and 

17 mechanically refrigerated encased assembly con18 sisting of— 

19 ‘‘(A) a refrigerated surface that condenses 

20 moisture from the atmosphere, 

21 ‘‘(B) a refrigerating system, including an 

22 electric motor, 

23 ‘‘(C) an air-circulating fan, and 

24 ‘‘(D) means for collecting or disposing of 

25 condensate. 


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1 ‘‘(6) GALLONS PER CYCLE.—The term ‘gallons 

2 per cycle’ means the amount of water, expressed in 

3 gallons, required to complete a normal cycle of a 

4 dishwasher. 

5 ‘‘(7) MEF.—The term ‘MEF’ means the modi6 fied energy factor established by the Department of 

7 Energy for compliance with the Federal energy con8 servation standard. 

9 ‘‘(8) WATER CONSUMPTION FACTOR.—The 

10 term ‘water consumption factor’ means the quotient 

11 of the total weighted per-cycle water consumption di12 vided by the cubic foot capacity of the clothes wash13 er. 

14 ‘‘(9) 2001 ENERGY CONSERVATION STAND15 ARD.—The term ‘2001 energy conservation stand16 ard’ means the energy conservation standards pro17 mulgated by the Department of Energy and effective 

18 July 1, 2001. 

19 ‘‘(g) SPECIAL RULES.—For purposes of this section: 

20 ‘‘(1) IN GENERAL.—Rules similar to the rules 

21 of subsections (c), (d), and (e) of section 52 shall 

22 apply. 

23 ‘‘(2) CONTROLLED GROUP.— 

24 ‘‘(A) IN GENERAL.—All persons treated as 

25 a single employer under subsection (a) or (b) of 


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1 section 52 or subsection (m) or (o) of section 

2 414 shall be treated as a single producer. 

3 ‘‘(B) INCLUSION OF FOREIGN CORPORA4 TIONS.—For purposes of subparagraph (A), in 

5 applying subsections (a) and (b) of section 52 

6 to this section, section 1563 shall be applied 

7 without regard to subsection (b)(2)(C) thereof. 

8 ‘‘(3) VERIFICATION.—No amount shall be al9 lowed as a credit under subsection (a) with respect 

10 to which the taxpayer has not submitted such infor11 mation or certification as the Secretary, in consulta12 tion with the Secretary of Energy, determines nec13 essary.’’. 

14 (b) CREDIT ALLOWED AGAINST THE ALTERNATIVE

15 MINIMUM TAX.—Section 38(c)(4)(B) of the Internal Rev16 enue Code of 1986 (relating to specified credits) is amend17 ed— 

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

19 (2) by striking the period at the end of clause 

20 (ii)(II) and inserting ‘‘, and’’, and 

21 (3) by adding at the end the following new 

22 clause: 

23 ‘‘(iii) for taxable years beginning after 

24 December 31, 2007, the credit determined 

25 under section 45M.’’. 


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

2 this section shall apply to appliances produced after De3 cember 31, 2007. 

Æ 


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