I
106TH CONGRESS
1ST SESSION
H. R. 2380
To amend the Internal Revenue Code of 1986 to provide incentives to reduce
energy consumption.
IN THE HOUSE OF REPRESENTATIVES
JUNE 29, 1999
Mr. MATSUI (for himself, Mr. NEAL of Massachusetts, Mr. LEWIS of Georgia,
Mr. BECERRA, Mrs. THURMAN, Mr. WAXMAN, Ms. DELAURO, Mr.
PALLONE, Mr. BROWN of Ohio, Mr. MINGE, Mr. FROST, Mr. FILNER,
Ms. LOFGREN, Mrs. LOWEY, Ms. LEE, Mr. HINCHEY, Mr. KUCINICH,
Mr. VENTO, Mr. LAFALCE, and Mr. BERMAN) 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 provide
incentives to reduce energy consumption.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Energy Efficient Tech-
nology Tax Act’’.
SEC. 2. CREDIT FOR CERTAIN ENERGY-EFFICIENT PROP-
ERTY USED IN BUSINESS.
(a) IN GENERAL.—Subpart E of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by inserting after section 48 the fol-
lowing new section:
‘‘SEC. 48A. ENERGY CREDIT.
‘‘(a) IN GENERAL.—For purposes of section 46, the
energy credit for any taxable year is the sum of—
‘‘(1) the amount equal to the energy percentage
of the basis of each energy property placed in service
during such taxable year, and
‘‘(2) the credit amount for each qualified hybrid
vehicle placed in service during the taxable year.
‘‘(b) ENERGY PERCENTAGE.—
‘‘(1) IN
GENERAL.—The energy percentage
shall be determined in accordance with the following
table:
‘‘Column A—Description
Column B— Energy
Percentage
Column C—Period
In the case of:
The energy percent-
age is:
For the period:
Beginning on:
Ending on:
Solar energy property (other than elected solar
hot water property and photovoltaic property)
and geothermal energy property .....................
10 percent
1/1/2000
no end date
Elected solar hot water property .........................
15 percent
1/1/2000
12/31/2004
Photovoltaic property ..........................................
15 percent
1/1/2000
12/31/2006
20 percent energy-efficient building property .....
20 percent
1/1/2000
12/31/2003
10 percent energy-efficient building property .....
10 percent
1/1/2000
12/31/2001
Combined heat and power system property ........
8 percent
1/1/2000
12/31/2002.
‘‘(2) PERIODS FOR WHICH PERCENTAGE NOT
SPECIFIED.—In the case of any energy property, the
energy percentage shall be zero for any period for
which an energy percentage is not specified for such
property under paragraph (1).
‘‘(3) COORDINATION WITH REHABILITATION.—
The energy percentage shall not apply to that por-
tion of the basis of any property which is attrib-
utable to qualified rehabilitation expenditures.
‘‘(4) TRANSITIONAL RULES.—Rules similar to
the rules of section 48(m) (as in effect on the day
before the date of the enactment of the Revenue
Reconciliation Act of 1990) shall apply for purposes
of this subsection.
‘‘(c) MAXIMUM CREDIT FOR CERTAIN PROPERTY.—
In the case of property described in the following table,
the amount of the current year business credit under sub-
section (a) for the taxable year for each item of such prop-
erty with respect to a building shall not exceed the amount
specified for such property in such table:
Description of property:
Maximum allowable
credit amount is:
Elected solar hot water property .....................................
$1,000.
Photovoltaic property with respect to which the energy
percentage is greater than 10 percent.
$2,000.
20 percent energy-efficient building property:
fuel cell described in subsection (e)(3)(A) ...............
$ 500 per each
kw/hr of capacity.
natural gas heat pump described in subsection
(e)(3)(D).
$1,000.
20 percent energy-efficient building property (other than
a fuel cell and a natural gas heat pump)
$500.
10 percent energy-efficient building property ..................
$ 250.
‘‘(d) ENERGY PROPERTY DEFINED.—
‘‘(1) IN GENERAL.—For purposes of this sub-
part, the term ‘energy property’ means any
property—
‘‘(A) which is—
‘‘(i) solar energy property,
‘‘(ii) geothermal energy property,
‘‘(iii) 
percent 
energy-efficient
building property,
‘‘(iv) 10 percent energy-efficient build-
ing property, or
‘‘(v) combined heat and power system
property,
‘‘(B)(i) the construction, reconstruction, or
erection of which is completed by the taxpayer,
or
‘‘(ii) which is acquired by the taxpayer if
the original use of such property commences
with the taxpayer,
‘‘(C) with respect to which depreciation (or
amortization in lieu of depreciation) is allow-
able, and
‘‘(D) which meets the performance and
quality standards (if any), and the certification
requirements (if any), which—