proval or disapproval of such alternative methods of 
certification not later than 90 days after receiving a 
petition under paragraph (1). 
(d) CONFORMING AMENDMENTS.— 
(1) Section 1016(a) is amended by striking 
‘‘and’’ at the end of paragraph (36), by striking the 
period at the end of paragraph (37) and inserting ‘‘, 
and’’, and by adding at the end the following new 
paragraph: 
‘‘(38) to the extent provided in section 
25E(f).’’. 
(2) The table of sections for subpart A of part 
IV of subchapter A chapter 1 is amended by insert-
ing after the item relating to section 25D the fol-
lowing new item: 
‘‘Sec. 25E. Performance based energy improvements.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred in tax-
able years beginning after the date of the enactment of 
this Act. 
SEC. 212. EXTENSION AND MODIFICATION OF CREDIT FOR 
NONBUSINESS ENERGY PROPERTY. 
(a) EXTENSION.—Subsection (g) of section 25C (re-
lating to termination) is amended by striking ‘‘December 
31, 2007’’ and inserting ‘‘December 31, 2011’’. 
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18:51 Apr 22, 2007
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sroberts on PROD1PC70 with BILLS
(b) LABOR COSTS FOR QUALIFIED ENERGY EFFI-
CIENCY IMPROVEMENTS.—Section 25C(c)(1) is amended 
by adding at the end the following new flush sentence: 
‘‘The amount taken into account under subsection 
(a)(1) with respect to qualified energy efficiency im-
provements shall include expenditures for labor costs 
properly allocable to the onsite preparation, assem-
bly, or original installation of any component de-
scribed in this paragraph.’’. 
(c) MODIFICATIONS FOR RESIDENTIAL ENERGY EF-
FICIENCY PROPERTY EXPENDITURES.— 
(1) INCREASED LIMITATION FOR OIL FURNACES 
AND NATURAL GAS, PROPANE, AND OIL HOT WATER 
BOILERS.— 
(A) IN GENERAL.—Subparagraphs (B) and 
(C) of section 25C(b)(3) are amended to read 
as follows: 
‘‘(B) $150 for any qualified natural gas 
furnace or qualified propane furnace, and 
‘‘(C) $300 for— 
‘‘(i) any item of energy-efficient build-
ing property, and 
‘‘(ii) any qualified oil furnace, quali-
fied natural gas hot water boiler, qualified 
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propane hot water boiler, or qualified oil 
hot water boiler.’’. 
(B) CONFORMING
AMENDMENT.—Clause 
(ii) of section 25C(d)(2)(A) is amended to read 
as follows: 
‘‘(ii) any qualified natural gas fur-
nace, qualified propane furnace, qualified 
oil furnace, qualified natural gas hot water 
boiler, qualified propane hot water boiler, 
or qualified oil hot water boiler, or’’. 
(2) MODIFICATIONS OF STANDARDS FOR EN-
ERGY-EFFICIENT BUILDING PROPERTY.— 
(A) ELECTRIC
HEAT
PUMPS.—Subpara-
graph (B) of section 25C(d)(3) is amended to 
read as follows: 
‘‘(A) an electric heat pump which achieves 
the highest efficiency tier established by the 
Consortium for Energy Efficiency, as in effect 
on January 1, 2008.’’. 
(B) CENTRAL
AIR
CONDITIONERS.—Sec-
tion 25C(d)(3)(D) is amended by striking 
‘‘2006’’ and inserting ‘‘2008’’. 
(C) WATER HEATERS.—Subparagraph (E) 
of section 25C(d) is amended to read as follows: 
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