Energy Efficient Heating and Cooling Tax Credit Act

To amend the Internal Revenue Code of 1986 to allow a credit for the purchase of heating and cooling equipment which meets the Energy Star program requirements and is used in certain high-cost energy communities, and for other purposes. 1. Short title This Act may be cited as the Energy Efficient Heating and Cooling Tax Credit Act 2. Credit for conversion of home heating using oil fuel to using natural gas or biomass feedstocks (a) In general Subsection (a) of section 25C of the Internal Revenue Code of 1986 (relating to nonbusiness energy property) is amended by striking and , and (3) the amount of the qualifying heating conversion expenditures paid or incurred by the taxpayer during such taxable year. . (b) Dollar limitation (1) In general (A) Limitation Subsection (b) of section 25C of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (4) Limitation on qualifying heating conversion expenditures The amount of the credit allowed under this section by reason of paragraph (3) of subsection (a) for any taxable year with respect to any taxpayer shall not exceed $5,000. . (B) Conforming amendment Paragraph (1) of section 25C(b) of such Code is amended by inserting by reason of paragraphs (1) and (2) of subsection (a) The credit allowed under this section (2) No double counting Section 25C(e) of such Code (relating to special rules) is amended by adding at the end the following new paragraph: (4) No double counting No amount taken into account for purposes of determining a credit under this section by reason of paragraph (3) of subsection (a) shall be taken into account for purposes of determining a credit under this section by reason of paragraphs (1) and (2) of subsection (a). . (c) Qualifying heating conversion expenditures Section 25C of the Internal Revenue Code of 1986 (relating to residential energy property expenditures) is amended by adding at the end the following new subsection: (h) Qualifying heating conversion expenditures (1) In general The term qualifying heating conversion expenditures (A) meets the requirements of subparagraphs (A) and (B) of subsection (d)(1), and (B) is used as a heating or cooling system on a building or structure located in a community (as determined under section 19(a)(1) of the Rural Electrification Act of 1936) in which the average residential expenditure for home energy is more than 200 percent of the national average residential expenditure for home energy (as determined by the Energy Information Agency using the most recent data available). (2) Amounts included The term qualifying heating conversion expenditures (A) for labor costs properly allocable to the onsite preparation, assembly, or original installation of property described in paragraph (1), including fuel service connection installation costs specifically related to fuel service to the qualified energy property used in such conversion, and (B) the removal of the fuel oil equipment (including any storage tank) for such a building or structure. (3) Exclusions Such term does not include expenditures for soil cleanup. (4) Qualified heating conversion property For purposes of paragraph (1), the term qualified heating conversion property (A) is placed in service before January 1, 2019, (B) meets the performance and quality standards described in subsection (d)(2)(B), and (C) is a product which qualifies under the Energy Star program and meets the requirements for such property under such program. . (d) Conforming amendment Subsection (g) of section 25C of the Internal Revenue Code of 1986 (relating to termination) is amended by striking This section Paragraphs (1) and (2) of subsection (a) (e) Effective date The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.

Summary: Energy Efficient Heating and Cooling Tax Credit Act - Amends the Internal Revenue Code to expand the tax credit for nonbusiness energy property expenditures to allow a credit for up to $5,000 in a taxable year&nbsp;of qualifying heating conversion expenditures for a principal residence. Defines "qualifying heating conversion expenditures" as expenditures, other than for soil cleanup, for property that is placed in service before January 1, 2019, and used as a heating or cooling system on a building or structure located in a community in which the average residential expenditure for home energy is more than 200% of the national average (as determined by the Energy Information Agency).