H. R. 6—428
‘‘(1) the product of— 
‘‘(A) $1.80, and 
‘‘(B) the square footage of the building, over 
‘‘(2) the aggregate amount of the deductions under sub-
section (a) with respect to the building for all prior taxable 
years. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) ENERGY EFFICIENT COMMERCIAL BUILDING PROPERTY.—
The term ‘energy efficient commercial building property’ means 
property— 
‘‘(A) with respect to which depreciation (or amortization 
in lieu of depreciation) is allowable, 
‘‘(B) which is installed on or in any building which 
is— 
‘‘(i) located in the United States, and 
‘‘(ii) within the scope of Standard 90.1–2001, 
‘‘(C) which is installed as part of— 
‘‘(i) the interior lighting systems, 
‘‘(ii) the heating, cooling, ventilation, and hot water 
systems, or 
‘‘(iii) the building envelope, and 
‘‘(D) which is certified in accordance with subsection 
(d)(6) as being installed as part of a plan designed to 
reduce the total annual energy and power costs with respect 
to the interior lighting systems, heating, cooling, ventila-
tion, and hot water systems of the building by 50 percent 
or more in comparison to a reference building which meets 
the minimum requirements of Standard 90.1–2001 using 
methods of calculation under subsection (d)(2). 
‘‘(2) STANDARD 90.1–2001.—The term ‘Standard 90.1–2001’ 
means Standard 90.1–2001 of the American Society of Heating, 
Refrigerating, and Air Conditioning Engineers and the Illu-
minating Engineering Society of North America (as in effect 
on April 2, 2003). 
‘‘(d) SPECIAL RULES.— 
‘‘(1) PARTIAL ALLOWANCE.— 
‘‘(A) IN GENERAL.—Except as provided in subsection 
(f), if— 
‘‘(i) the requirement of subsection (c)(1)(D) is not 
met, but 
‘‘(ii) there is a certification in accordance with para-
graph (6) that any system referred to in subsection 
(c)(1)(C) satisfies the energy-savings targets estab-
lished by the Secretary under subparagraph (B) with 
respect to such system, 
then the requirement of subsection (c)(1)(D) shall be treated 
as met with respect to such system, and the deduction 
under subsection (a) shall be allowed with respect to energy 
efficient commercial building property installed as part 
of such system and as part of a plan to meet such targets, 
except that subsection (b) shall be applied to such property 
by substituting ‘$.60’ for ‘$1.80’. 
‘‘(B) REGULATIONS.—The Secretary, after consultation 
with the Secretary of Energy, shall establish a target for 
each system described in subsection (c)(1)(C) which, if such 
targets were met for all such systems, the building would 
meet the requirements of subsection (c)(1)(D).
H. R. 6—429
‘‘(2) METHODS OF CALCULATION.—The Secretary, after con-
sultation with the Secretary of Energy, shall promulgate regula-
tions which describe in detail methods for calculating and 
verifying energy and power consumption and cost, based on 
the provisions of the 2005 California Nonresidential Alternative 
Calculation Method Approval Manual. 
‘‘(3) COMPUTER SOFTWARE.— 
‘‘(A) IN GENERAL.—Any calculation under paragraph 
(2) shall be prepared by qualified computer software. 
‘‘(B) QUALIFIED
COMPUTER
SOFTWARE.—For purposes 
of this paragraph, the term ‘qualified computer software’ 
means software— 
‘‘(i) for which the software designer has certified 
that the software meets all procedures and detailed 
methods for calculating energy and power consumption 
and costs as required by the Secretary, 
‘‘(ii) which provides such forms as required to be 
filed by the Secretary in connection with energy effi-
ciency of property and the deduction allowed under 
this section, and 
‘‘(iii) which provides a notice form which docu-
ments the energy efficiency features of the building 
and its projected annual energy costs. 
‘‘(4) ALLOCATION OF DEDUCTION FOR PUBLIC PROPERTY.—
In the case of energy efficient commercial building property 
installed on or in property owned by a Federal, State, or local 
government or a political subdivision thereof, the Secretary 
shall promulgate a regulation to allow the allocation of the 
deduction to the person primarily responsible for designing 
the property in lieu of the owner of such property. Such person 
shall be treated as the taxpayer for purposes of this section. 
‘‘(5) NOTICE TO OWNER.—Each certification required under 
this section shall include an explanation to the building owner 
regarding the energy efficiency features of the building and 
its projected annual energy costs as provided in the notice 
under paragraph (3)(B)(iii). 
‘‘(6) CERTIFICATION.— 
‘‘(A) IN GENERAL.—The Secretary shall prescribe the 
manner and method for the making of certifications under 
this section. 
‘‘(B) PROCEDURES.—The Secretary shall include as part 
of the certification process procedures for inspection and 
testing by qualified individuals described in subparagraph 
(C) to ensure compliance of buildings with energy-savings 
plans and targets. Such procedures shall be comparable, 
given the difference between commercial and residential 
buildings, to the requirements in the Mortgage Industry 
National Accreditation Procedures for Home Energy Rating 
Systems. 
‘‘(C) QUALIFIED INDIVIDUALS.—Individuals qualified to 
determine compliance shall be only those individuals who 
are recognized by an organization certified by the Secretary 
for such purposes. 
‘‘(e) BASIS REDUCTION.—For purposes of this subtitle, if a deduc-
tion is allowed under this section with respect to any energy efficient 
commercial building property, the basis of such property shall be 
reduced by the amount of the deduction so allowed.