I
107TH CONGRESS
1ST SESSION
H. R. 1797
To amend the Internal Revenue Code of 1986 to provide a credit against
tax for qualified energy management devices, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 10, 2001
Ms. DUNN of Washington 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
a credit against tax for qualified energy management
devices, and for other purposes.
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 Efficiency and
Conservation Incentives Act of 2001’’.
SEC. 2. ALLOWANCE OF DEDUCTION FOR QUALIFIED EN-
ERGY MANAGEMENT DEVICES AND RETRO-
FITTED QUALIFIED METERS.
(a) IN GENERAL.—Part VI of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to
itemized deductions for individuals and corporations) is
amended by inserting after section 179A the following new
section:
‘‘SEC. 179B. DEDUCTION FOR QUALIFIED ENERGY MANAGE-
MENT DEVICES AND RETROFITTED METERS.
‘‘(a) ALLOWANCE OF DEDUCTION.—There shall be
allowed as a deduction—
‘‘(1) an amount equal to $30 for each qualified
energy management device originally placed in serv-
ice during the taxable year, and
‘‘(2) for each qualified retrofitted meter origi-
nally placed in service during the taxable year, an
amount equal to the lesser of—
‘‘(A) $30, or
‘‘(B) the adjusted basis of such meter.
‘‘(b) DEFINITIONS.—
‘‘(1) QUALIFIED
ENERGY
MANAGEMENT
DE-
VICE.—For purposes of this section, the term ‘quali-
fied energy management device’ means any meter or
metering device acquired and used by an electric en-
ergy or natural gas supplier or service provider to
enable consumers or others to manage their pur-
chase, sale, or use of electricity or natural gas in re-
sponse to energy price and usage signals.
‘‘(2) QUALIFIED
RETROFITTED
METER.—For
purposes of this section, the term ‘qualified retro-
fitted meter’ means an electric energy or natural gas
meter or metering device that has been modified by
the addition of equipment designed to enable users
to manage the purchase, sale, or use of electricity
and natural gas in response to energy price and
usage signals.
‘‘(3) PLACED
IN
SERVICE.—For purposes of
this section, the term ‘placed in service’ means inter-
connected with other devices in a manner that per-
mits reading of energy price and usage signals on at
least a daily basis.
‘‘(4) COST OF METERS INCLUDES COST OF IN-
STALLATION.—The cost of any qualified energy
management device or qualified retrofitted meter re-
ferred to in paragraph (1) or (2) shall include the
cost of the original installation of such property.
‘‘(c) DEVICES INSTALLED OUTSIDE
THE UNITED
STATES NOT QUALIFIED.—No deduction shall be allowed
under subsection (a) with respect to any qualified energy
management device or qualified retrofitted meter placed
in service outside the United States.
‘‘(d) BASIS REDUCTION.—
‘‘(1) IN GENERAL.—For purposes of this title,
the basis of any property shall be reduced by the
amount of the deduction with respect to such prop-
erty which is allowed by subsection (a).
‘‘(2) ORDINARY
INCOME
RECAPTURE.—For
purposes of section 1245, the amount of the deduc-
tion allowable under subsection (a) with respect to
any property that is of a character subject to the al-
lowance for depreciation shall be treated as a deduc-
tion allowed for depreciation under section 167.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 263(a)(1) of such Code is amended
by striking ‘‘or’’ at the end of subparagraph (G), by
striking the period at the end of subparagraph (H)
and inserting ‘‘, or’’, and by inserting after subpara-
graph (H) the following new subparagraph:
‘‘(I) expenditures for which a deduction is
allowed under section 179B.’’.
(2) Section 312(k)(3)(B) of such Code is
amended by striking ‘‘or 179A’’ each place it ap-
pears in the heading and text and inserting ‘‘, 179A,
or 179B’’.
(3) Section 1016(a) of such Code is amended
by striking ‘‘and’’ at the end of paragraph (26), by
striking the period at the end of paragraph (27) and
inserting ‘‘, and’’, and by inserting after paragraph
(27) the following new paragraph:
‘‘(28) to the extent provided in section
179B(d)(1),’’.
(4) Section 1245(a) of such Code is amended
by inserting ‘‘179B,’’ after ‘‘179A,’’ both places it
appears in paragraphs (2)(C) and (3)(C).
(5) The table of contents for subpart B of part
IV of subchapter A of chapter 1 of such Code is
amended by inserting after the item relating to sec-
tion 179A the following new item:
‘‘Sec. 179B. Deduction for qualified energy management devices
and retrofitted meters.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to qualified energy management
devices placed in service after the date of the enactment
of this Act and to qualified retrofitted meters that are
placed in service after, or that are in use as of, the date
of the enactment of this Act.
SEC. 3. 3-YEAR APPLICABLE RECOVERY PERIOD FOR DE-
PRECIATION OF QUALIFIED ENERGY MAN-
AGEMENT DEVICES.
(a) IN GENERAL.—Subparagraph (A) of section
168(e)(3) of the Internal Revenue Code of 1986 (relating
to classification of property) is amended by striking ‘‘and’’
at the end of clause (ii), by striking the period at the end
of clause (iii) and inserting ‘‘, and’’, and by adding at the
end the following new clause:
‘‘(iv) any qualified energy manage-
ment device.’’.
(b) DEFINITION OF QUALIFIED ENERGY MANAGE-
MENT DEVICE.—Section 168(i) of such Code (relating to
definitions and special rules) is amended by inserting at
the end the following new paragraph:
‘‘(15) QUALIFIED
ENERGY
MANAGEMENT
DE-
VICE.—The term ‘qualified energy management de-
vice’ means a meter or metering device that is ac-
quired and used by an electric energy or natural gas
supplier or service provider to enable consumers and
others to manage their purchase, sale, and use of
electricity or natural gas in response to energy price
and usage signals that are readable on at least a
daily basis. For purposes of the preceding sentence,
the cost of any qualified energy management device
shall (at the election of the taxpayer) include the
cost of the original installation of such property.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to property placed in service after
December 31, 2000.
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