‘‘(ii) for any item of property de-
scribed in subparagraph (D) or (E) of such 
subsection, $400, and 
‘‘(B) in the case of any qualified natural 
gas, propane, or oil furnace or hot water boiler 
(as defined in subsection (d)(4)), an amount 
equal to— 
‘‘(i) $600 for a hot water boiler, and 
‘‘(ii) in the case of a furnace, an 
amount equal to the sum of— 
‘‘(I) $300, plus 
‘‘(II) if the taxpayer is converting 
from a non-condensing furnace to a 
condensing furnace, $300.’’, 
(C) in subsection (c)— 
(i) in paragraph (2)— 
(I) by striking subparagraphs (A) 
and (B) and inserting the following: 
‘‘(A) applicable Energy Star program re-
quirements, in the case of an exterior window, 
a skylight, or an exterior door, and’’, 
(II) by redesignating subpara-
graph (C) as subparagraph (B), and 
(III) in subparagraph (B), as so 
redesignated, by striking ‘‘2009 Inter-
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national’’ and all that follows through 
‘‘Act of 2009’’ and inserting ‘‘2015 
IECC 
(as 
defined 
in 
section 
45L(b)(5))’’, 
(ii) in paragraph (3)— 
(I) in subparagraph (B), by add-
ing ‘‘and’’ at the end, 
(II) in subparagraph (C), by 
striking ‘‘, and’’ and inserting a pe-
riod, and 
(III) by striking subparagraph 
(D), and 
(iii) by adding at the end the fol-
lowing new paragraph: 
‘‘(5) LABOR COSTS.—The term ‘qualified en-
ergy efficiency improvements’ includes expenditures 
for labor costs properly allocable to the onsite prepa-
ration, assembly, or original installation of any en-
ergy efficient building envelope component.’’, 
(D) in subsection (d)— 
(i) in paragraph (2)(A)— 
(I) in clause (i), by adding ‘‘or’’ 
at the end, 
(II) in clause (ii), by striking ‘‘, 
or’’ and inserting a period, and 
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(III) by striking clause (iii), 
(ii) in paragraph (3)— 
(I) by striking subparagraph (A) 
and inserting the following: 
‘‘(A) an electric heat pump water heater 
which, in the standard Department of Energy 
test procedure, yields a uniform energy factor 
of at least 3.0,’’, 
(II) in subparagraph (B), by 
striking ‘‘January 1, 2009’’ and in-
serting ‘‘the date of enactment of the 
Home Energy Savings Act’’, 
(III) in subparagraph (C), by 
striking ‘‘January 1, 2009’’ and in-
serting ‘‘the date of enactment of the 
Home Energy Savings Act’’, 
(IV) by striking subparagraph 
(D) and inserting the following: 
‘‘(D) a natural gas, propane, or oil water 
heater which, in the standard Department of 
Energy test procedure, yields— 
‘‘(i) in the case of a storage tank 
water heater— 
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‘‘(I) in the case of a medium- 
draw water heater, a uniform energy 
factor of not less than 0.78, and 
‘‘(II) in the case of a high-draw 
water heater, a uniform energy factor 
of not less than 0.80, and 
‘‘(ii) in the case of a tankless water 
heater— 
‘‘(I) in the case of a medium- 
draw water heater, a uniform energy 
factor of not less than 0.87, and 
‘‘(II) in the case of a high-draw 
water heater, a uniform energy factor 
of not less than 0.90, and’’, and 
(V) in subparagraph (E), by 
striking ‘‘of at least 75 percent’’ and 
inserting the following: ‘‘(as deter-
mined pursuant to the applicable list 
published by the Environmental Pro-
tection Agency for certified wood 
stoves, hydronic heaters, or forced-air 
furnaces) of at least— 
‘‘(i) in the case of any stove placed in 
service before January 1, 2021, 73 per-
cent, and 
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‘‘(ii) in the case of any stove placed in 
service after December 31, 2020, 75 per-
cent.’’, 
(iii) in paragraph (4), by striking ‘‘not 
less than 95’’ and inserting the following: 
‘‘not less than— 
‘‘(A) in the case of a furnace, 97 percent, 
and 
‘‘(B) in the case of a hot water boiler, 95 
percent.’’, 
(iv) by striking paragraph (5), and 
(v) by redesignating paragraph (6) as 
paragraph (5), and 
(E) in subsection (e), by adding the fol-
lowing new paragraphs at the end: 
‘‘(4) INSTALLATION
STANDARDS.—The terms 
‘energy efficient building envelope component’ and 
‘qualified energy property’ shall not include any 
components or property which are not installed ac-
cording to any applicable Air Conditioning Contrac-
tors of America Quality Installation standards which 
are in effect at the time that such components or 
property are placed in service. 
‘‘(5) REPLACEMENT OF TERMINATED STAND-
ARDS.—In the case of any standard, requirement, or 
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criteria applicable to any energy efficient building 
envelope component or qualified energy property 
which is terminated after the date of enactment of 
the Home Energy Savings Act, the Secretary, in 
consultation with the Secretary of Energy, shall 
identify a similar standard, requirement, or criteria 
for purposes of determining the eligibility of any 
such component or property for purposes of credit 
allowed under this section.’’. 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to property placed in 
service after December 31, 2019. 
(c) PERIODIC REPORT TO CONGRESS REGARDING IM-
PROVED STANDARDS.—Not later than 5 years after the 
date of the enactment of this Act (and each 5 years there-
after until the termination of the credit determined under 
section 25C of the Internal Revenue Code of 1986), the 
Secretary of Energy, after consultation with the Secretary 
of Treasury, shall submit a written report to Congress 
evaluating the effectiveness of such credit. Such report 
shall include— 
(1) an evaluation of each standard used under 
such section in determining the eligibility of property 
for credit under such section including whether rel-
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evant higher industry standards have been devel-
oped, and 
(2) recommendations (if any) for higher stand-
ards which would supplement or replace such cur-
rent standards and an analysis of how such higher 
standards would be expected to improve the effec-
tiveness of such credit. 
SEC. 5. IMPROVEMENTS TO NEW ENERGY EFFICIENT HOME 
CREDIT. 
(a) EXTENSION OF CREDIT.— 
(1) IN GENERAL.—Section 45L(g) of the Inter-
nal Revenue Code of 1986 is amended by striking 
‘‘December 31, 2020’’ and inserting ‘‘December 31, 
2050’’. 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to qualified new en-
ergy efficient homes acquired after December 31, 
2020. 
(b) UPDATING NEW ENERGY EFFICIENT HOME 
CREDIT.— 
(1) IN GENERAL.—Section 45L of the Internal 
Revenue Code of 1986 is amended— 
(A) in subsection (a)(2)— 
(i) in subparagraph (A), by striking 
‘‘$2,000’’ and inserting ‘‘$2,500’’; and 
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(ii) in subparagraph (B), by inserting 
‘‘or (4)’’ after ‘‘paragraph (3)’’; 
(B) in subsection (b)— 
(i) in paragraph (2)(B), by striking 
‘‘this section’’ and inserting ‘‘the New 
Home Energy Efficiency Act’’; and 
(ii) by adding at the end the fol-
lowing: 
‘‘(5) 2018 IECC.— 
‘‘(A) IN
GENERAL.—The term ‘2018 
IECC’ means the 2018 International Energy 
Conservation Code, as such Code (including 
supplements) is in effect on the date of the en-
actment of the New Home Energy Efficiency 
Act. 
‘‘(B) SPECIAL
RULE.—For purposes of 
subsection 
(c)(1)(B)(i)(I), 
in 
determining 
whether a dwelling unit has been constructed in 
accordance with the standards of chapter 4 of 
the 2018 IECC by achieving a level of energy 
efficiency 
which 
meets 
Section 
R406.4 
(N1106.4) of such Code, such determination 
shall be made without accounting for on-site en-
ergy generation.’’; and 
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(C) by striking subsection (c) and inserting 
the following: 
‘‘(c) ENERGY SAVING REQUIREMENTS.—A dwelling 
unit meets the energy saving requirements of this sub-
section if such unit— 
‘‘(1)(A) is certified— 
‘‘(i) to have a level of annual heating and 
cooling energy consumption which is at least 60 
percent below the annual level of heating and 
cooling energy consumption of a comparable 
dwelling unit— 
‘‘(I) which is constructed in accord-
ance with the standards of chapter 4 of the 
2006 International Energy Conservation 
Code, as such Code (including supple-
ments) is in effect on January 1, 2006, 
and 
‘‘(II) for which the heating and cool-
ing equipment efficiencies correspond to 
the minimum allowed under the regula-
tions established by the Department of En-
ergy pursuant to the National Appliance 
Energy Conservation Act of 1987 and in 
effect at the time of completion of con-
struction, and 
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‘‘(ii) to have building envelope component 
improvements account for at least 1⁄5 of such 
60 percent, or 
‘‘(B) is certified— 
‘‘(i) to have a level of annual energy con-
sumption which is at least 15 percent below the 
annual level of energy consumption of a com-
parable dwelling unit— 
‘‘(I) which is constructed in accord-
ance with the standards of chapter 4 of the 
2018 IECC, and 
‘‘(II) which meets the requirements 
described in subparagraph (A)(i)(II), and 
‘‘(ii) to have building envelope component 
improvements account for at least 1⁄5 of such 
15 percent, 
‘‘(2) is a manufactured home which— 
‘‘(A) conforms to Federal Manufactured 
Home Construction and Safety Standards (part 
3280 of title 24, Code of Federal Regulations), 
and 
‘‘(B) meets the requirements described in 
subparagraph (A) or (B) of paragraph (1), 
‘‘(3) meets the requirements established by the 
Administrator of the Environmental Protection 
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Agency under the Energy Star Labeled Homes pro-
gram, or 
‘‘(4) is a manufactured home which— 
‘‘(A) conforms to the standards described 
in paragraph (2)(A), and 
‘‘(B) meets the requirements described in 
paragraph (3).’’. 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to qualified new en-
ergy efficient homes acquired after December 31, 
2020. 
(c) PERIODIC REPORT TO CONGRESS REGARDING IM-
PROVED STANDARDS.—Not later than 5 years after the 
date of the enactment of this Act (and each 5 years there-
after until the termination of the credit determined under 
section 45L of the Internal Revenue Code of 1986), the 
Secretary of Energy, after consultation with the Secretary 
of Treasury, shall submit a written report to Congress 
evaluating the effectiveness of such credit. Such report 
shall include— 
(1) an evaluation of each standard used under 
such section in determining the eligibility of property 
for credit under such section including whether rel-
evant higher industry standards have been devel-
oped, and 
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