I 

117TH CONGRESS 

1ST SESSION H. R. 3395 

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

credit for nonbusiness energy property. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 20, 2021 

Mr. GOMEZ 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 

and update 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’’. 

6 SEC. 2. UPDATING CREDIT FOR NONBUSINESS ENERGY 

7 PROPERTY. 

8 (a) IN GENERAL.—Section 25C of the Internal Rev9 enue Code of 1986 is amended— 


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1 (1) in subsection (a)(1), by striking ‘‘10 per2 cent’’ and inserting ‘‘15 percent’’, 

3 (2) in subsection (b)— 

4 (A) in paragraph (1)— 

5 (i) by striking ‘‘$500’’ and inserting 

6 ‘‘$1,200’’, and 

7 (ii) by striking ‘‘December 31, 2005’’ 

8 and inserting ‘‘December 31, 2021’’, and 

9 (B) by striking paragraphs (2) and (3) and 

10 inserting the following: 

11 ‘‘(2) LIMITATION ON WINDOW ATTACHMENT

12 PRODUCTS.—In the case of amounts paid or in13 curred for products described in subsection (c)(2)(B) 

14 by any taxpayer for any taxable year, the credit al15 lowed under this section with respect to such 

16 amounts for such year shall not exceed the excess (if 

17 any) of $600 over the aggregate credits allowed 

18 under this section with respect to such amounts for 

19 all prior taxable years ending after December 31, 

20 2021. 

21 ‘‘(3) LIMITATION ON INSULATION MATERIAL OR

22 SYSTEM.—In the case of amounts paid or incurred 

23 for components described in subparagraph (A) or 

24 (D) of subsection (c)(3) by any taxpayer for any tax25 able year, the credit allowed under this section with 


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1 respect to such amounts for such year shall not ex2 ceed the excess (if any) of $600 over the aggregate 

3 credits allowed under this section with respect to 

4 such amounts for all prior taxable years ending after 

5 December 31, 2021. 

6 ‘‘(4) LIMITATION ON WINDOWS.— 

7 ‘‘(A) IN GENERAL.— 

8 ‘‘(i) ENERGY STAR MOST EFFI9 CIENT.—In the case of amounts paid or in10 curred by any taxpayer for any taxable 

11 year for components described in sub12 section (c)(3)(B) which meet the most effi13 cient certification under applicable Energy 

14 Star program requirements, the credit al15 lowed under this section with respect to 

16 such amounts for such year shall not ex17 ceed the excess (if any) of $600 over the 

18 aggregate credits allowed under this sec19 tion with respect to such amounts for all 

20 prior taxable years ending after December 

21 31, 2021. 

22 ‘‘(ii) ENERGY STAR.—In the case of 

23 amounts paid or incurred by any taxpayer 

24 for any taxable year for components de25 scribed in subsection (c)(3)(B) which do 


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1 not meet the most efficient certification 

2 under applicable Energy Star program re3 quirements, the credit allowed under this 

4 section with respect to such amounts for 

5 such year shall not exceed the excess (if 

6 any) of $200 over the aggregate credits al7 lowed under this section with respect to 

8 such amounts for all prior taxable years 

9 ending after December 31, 2021. 

10 ‘‘(B) ELECTION.— 

11 ‘‘(i) IN GENERAL.—For purposes of 

12 any amounts paid or incurred by any tax13 payer for components described in sub14 section (c)(3)(B), the credit allowed under 

15 this section shall only be allowed for com16 ponents described in clause (i) of subpara17 graph (A) or clause (ii) of such subpara18 graph, but not both, as elected by the tax19 payer during the first taxable year in 

20 which such credit is being claimed by the 

21 taxpayer. 

22 ‘‘(ii) IRREVOCABILITY.—The Sec23 retary shall, through such rules, regula24 tions, and procedures as are determined 

25 appropriate, establish procedures for makVerDate Sep 11 2014 16:32 Jul 06, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3395.IH H3395

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1 ing an election under this subparagraph, 

2 which shall require that— 

3 ‘‘(I) any election made by the 

4 taxpayer shall be irrevocable, and 

5 ‘‘(II) such election shall remain 

6 in effect for all subsequent taxable 

7 years. 

8 ‘‘(5) LIMITATION ON DOORS.—In the case of 

9 amounts paid or incurred for components described 

10 in subsection (c)(3)(C) by any taxpayer for any tax11 able year, the credit allowed under this section with 

12 respect to such amounts for such year shall not ex13 ceed— 

14 ‘‘(A) the excess (if any) of $500 over the 

15 aggregate credits allowed under this section 

16 with respect to such amounts for all prior tax17 able years ending after December 31, 2021, or 

18 ‘‘(B) $250 for each exterior door. 

19 ‘‘(6) LIMITATION ON RESIDENTIAL ENERGY

20 PROPERTY EXPENDITURES.—The amount of the 

21 credit allowed under this section by reason of sub22 section (a)(2) shall not exceed— 

23 ‘‘(A) in the case of any energy-efficient 

24 building property— 


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1 ‘‘(i) for any item of property described 

2 in clause (ii) of subparagraph (A) of sub3 section (d)(3), $800, 

4 ‘‘(ii) for any item of property de5 scribed in clause (i) or (iii) of such sub6 paragraph, $600 

7 ‘‘(iii) for any item of property de8 scribed in clause (iv) of such subpara9 graph, $400, and 

10 ‘‘(B) in the case of any qualified natural 

11 gas, propane, or oil furnace or hot water boiler 

12 (as defined in subsection (d)(4)), an amount 

13 equal to— 

14 ‘‘(i) $600 for a hot water boiler, and 

15 ‘‘(ii) in the case of a furnace, an 

16 amount equal to the sum of— 

17 ‘‘(I) $300, plus 

18 ‘‘(II) if the taxpayer is converting 

19 from a non-condensing furnace to a 

20 condensing furnace, $300.’’, 

21 (3) in subsection (c)— 

22 (A) in paragraph (2), by striking subpara23 graphs (A) through (C) and inserting the fol24 lowing: 


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1 ‘‘(A) in the case of an exterior window, a 

2 skylight, or an exterior door, applicable Energy 

3 Star program requirements, 

4 ‘‘(B) in the case of any window attachment 

5 product, the applicable certification require6 ments for such product under the Attachments 

7 Energy Rating Council Certification Program, 

8 and 

9 ‘‘(C) in the case of any other component, 

10 the prescriptive criteria for such component es11 tablished by the International Energy Conserva12 tion Code, as such Code (including supple13 ments) is in effect on January 1 of the calendar 

14 year in which such component is installed.’’, 

15 (B) in paragraph (3), by striking subpara16 graph (D) and inserting the following: 

17 ‘‘(D) any air barrier material, system, or 

18 assembly which is specifically and primarily de19 signed to minimize the passage of air through 

20 the building thermal envelope and its assemblies 

21 when installed in or on a dwelling unit.’’, and 

22 (C) by adding at the end the following new 

23 paragraph: 

24 ‘‘(5) LABOR COSTS.—The term ‘qualified en25 ergy efficiency improvements’ includes expenditures 


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1 for labor costs properly allocable to the onsite prepa2 ration, assembly, or original installation of any en3 ergy efficient building envelope component.’’, 

4 (4) in subsection (d)— 

5 (A) in paragraph (2)— 

6 (i) in subparagraph (A)— 

7 (I) in clause (i), by adding ‘‘or’’ 

8 at the end, 

9 (II) in clause (ii), by striking ‘‘, 

10 or’’ and inserting a period, and 

11 (III) by striking clause (iii), and 

12 (ii) by striking subparagraphs (B) and 

13 (C) and inserting the following: 

14 ‘‘(B) EFFICIENCY STANDARDS.—Property 

15 described in subparagraph (A) shall meet or ex16 ceed the requirements of the highest efficiency 

17 tier (not including any advanced tier) estab18 lished by the Consortium for Energy Efficiency 

19 which are in effect on January 1 of the cal20 endar year in which the property was ac21 quired.’’, 

22 (B) by striking paragraph (3) and insert23 ing the following: 


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1 ‘‘(3) ENERGY-EFFICIENT BUILDING PROP2 ERTY.—The term ‘energy-efficient building property’ 

3 means property which— 

4 ‘‘(A) is— 

5 ‘‘(i) an electric heat pump water heat6 er, 

7 ‘‘(ii) an electric heat pump, 

8 ‘‘(iii) a central air conditioner, or 

9 ‘‘(iv) a natural gas, propane, or oil 

10 water heater, and 

11 ‘‘(B) meets or exceeds the requirements of 

12 the highest efficiency tier (not including any ad13 vanced tier) established by the Consortium for 

14 Energy Efficiency which are in effect on Janu15 ary 1 of the calendar year in which the property 

16 was acquired.’’, 

17 (C) in paragraph (4), by striking ‘‘achieves 

18 an annual fuel utilization efficiency rate of not 

19 less than 95’’ and inserting ‘‘meets or exceeds 

20 the requirements of the highest efficiency tier 

21 (not including any advanced tier) established by 

22 the Consortium for Energy Efficiency which are 

23 in effect on January 1 of the calendar year in 

24 which the property was acquired’’, and 

25 (D) by striking paragraph (5), 


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1 (5) in subsection (e), by adding the following 

2 new paragraphs at the end: 

3 ‘‘(4) INSTALLATION STANDARDS.—The terms 

4 ‘energy efficient building envelope component’ and 

5 ‘qualified energy property’ shall not include any 

6 components or property which are not installed ac7 cording to any applicable Air Conditioning Contrac8 tors of America Quality Installation standards which 

9 are in effect at the time that such components or 

10 property are placed in service. 

11 ‘‘(5) REPLACEMENT OF TERMINATED STAND12 ARDS.—In the case of any standard, requirement, or 

13 criteria applicable to any energy efficient building 

14 envelope component or qualified energy property 

15 which is terminated after the date of enactment of 

16 the Home Energy Savings Act, the Secretary, in 

17 consultation with the Secretary of Energy, shall 

18 identify a similar standard, requirement, or criteria 

19 for purposes of determining the eligibility of any 

20 such component or property for purposes of credit 

21 allowed under this section.’’, and 

22 (6) in subsection (g)(2), by striking ‘‘December 

23 31, 2021’’ and inserting ‘‘December 31, 2028’’. 


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

2 this section shall apply to property placed in service after 

3 December 31, 2021. 

Æ 


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