II 

116TH CONGRESS 

1ST SESSION S. 1197 

To amend the Internal Revenue Code of 1986 to establish a tax credit 

for construction of new all-electric homes. 

IN THE SENATE OF THE UNITED STATES 

APRIL 11, 2019 

Mr. MARKEY 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 establish 

a tax credit for construction of new all-electric homes. 

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 ‘‘All-Electric Homes Act 

5 of 2019’’. 

6 SEC. 2. CREDIT FOR NEW ALL-ELECTRIC HOMES. 

7 (a) IN GENERAL.—Subpart D of part IV of sub8 chapter A of chapter 1 of the Internal Revenue Code of 

9 1986 is amended by adding at the end the following new 

10 section: 


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•S 1197 IS

1 ‘‘SEC. 45T. NEW ALL-ELECTRIC HOME CREDIT. 

2 ‘‘(a) ALLOWANCE OF CREDIT.— 

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

4 in the case of an eligible contractor, the new all-elec5 tric home credit for the taxable year is the applicable 

6 amount for each qualified new all-electric home 

7 which is— 

8 ‘‘(A) constructed by the eligible contractor, 

9 and 

10 ‘‘(B) acquired by a person from such eligi11 ble contractor for use as a residence during the 

12 taxable year. 

13 ‘‘(2) APPLICABLE AMOUNT.—For purposes of 

14 paragraph (1), the applicable amount is an amount 

15 equal to— 

16 ‘‘(A) in the case of a qualified new all-elec17 tric home which is a single-family residence, 

18 $5,000, and 

19 ‘‘(B) in the case of a qualified new all-elec20 tric home which is a multi-family residence, an 

21 amount equal to the product of— 

22 ‘‘(i) $1750, multiplied by 

23 ‘‘(ii) the total number of residential 

24 units. 

25 ‘‘(b) DEFINITIONS.—For purposes of this section— 


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1 ‘‘(1) ELIGIBLE CONTRACTOR.—The term ‘eligi2 ble contractor’ means the person who constructed 

3 the qualified new all-electric home. 

4 ‘‘(2) QUALIFIED NEW ALL-ELECTRIC HOME.— 

5 The term ‘qualified new all-electric home’ means a 

6 dwelling unit— 

7 ‘‘(A) located in the United States, 

8 ‘‘(B) the construction of which is substan9 tially completed after the date of the enactment 

10 of this section, 

11 ‘‘(C) for which all appliances and mechan12 ical systems are powered solely by electricity, 

13 ‘‘(D) which does not have any gas line or 

14 gas service to such dwelling unit, and 

15 ‘‘(E) which meets the highest energy effi16 ciency standards for the United States (as de17 termined by the Secretary, in consultation with 

18 the Secretary of Energy and the Administrator 

19 of the Environmental Protection Agency) for 

20 purposes of the building envelope and any ap21 pliances and mechanical systems within the 

22 dwelling unit. 

23 ‘‘(3) CONSTRUCTION.—The term ‘construction’ 

24 includes substantial reconstruction and rehabilita25 tion. 


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1 ‘‘(4) ACQUIRE.—The term ‘acquire’ includes 

2 purchase. 

3 ‘‘(c) BASIS ADJUSTMENT.—For purposes of this sub4 title, if a credit is allowed under this section in connection 

5 with any expenditure for any property, the increase in the 

6 basis of such property which would (but for this sub7 section) result from such expenditure shall be reduced by 

8 the amount of the credit so determined. 

9 ‘‘(d) COORDINATION WITH INVESTMENT CREDIT.— 

10 For purposes of this section, expenditures taken into ac11 count under section 47 or 48(a) shall not be taken into 

12 account under this section.’’. 

13 (b) CONFORMING AMENDMENTS.— 

14 (1) Section 38(b) of the Internal Revenue Code 

15 of 1986 is amended by striking ‘‘plus’’ at the end of 

16 paragraph (31), by striking the period at the end of 

17 paragraph (32) and inserting ‘‘, plus’’, and by add18 ing at the end the following new paragraph: 

19 ‘‘(33) the new all-electric home credit deter20 mined under section 45T(a).’’. 

21 (2) Section 196(c) of such Code is amended by 

22 striking ‘‘and’’ at the end of paragraph (13), by 

23 striking the period at the end of paragraph (14) and 

24 inserting ‘‘, and’’, and by adding at the end the fol25 lowing new paragraph: 


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1 ‘‘(15) the new all-electric home credit deter2 mined under section 45T(a).’’. 

3 (3) Section 1016(a) of such Code is amended 

4 by striking ‘‘and’’ at the end of paragraph (37), by 

5 striking the period at the end of paragraph (38) and 

6 inserting ‘‘, and’’, and by inserting after paragraph 

7 (38) the following new paragraph: 

8 ‘‘(39) to the extent provided in section 45T(c), 

9 in the case of amounts with respect to which a credit 

10 has been allowed under section 45T.’’. 

11 (4) The table of sections for subpart D of part 

12 IV of subchapter A of chapter 1 of such Code is 

13 amended by inserting after the item relating to sec14 tion 45S the following new item: 

‘‘45T. New All-Electric Home Credit.’’. 

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

16 this section shall apply to qualified new all-electric homes 

17 acquired after December 31, 2019, in taxable years ending 

18 after such date. 

Æ 


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