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taxpayer for qualified energy efficiency improvements in-
stalled during such taxable year.
‘‘(b) LIMITATIONS.—
‘‘(1) MAXIMUM CREDIT.—The credit allowed by
this section with respect to a dwelling shall not exceed
$300.
‘‘(2) PRIOR CREDIT AMOUNTS FOR TAXPAYER ON
SAME DWELLING TAKEN INTO ACCOUNT.—If a credit
was allowed to the taxpayer under subsection (a) with
respect to a dwelling in 1 or more prior taxable years,
the amount of the credit otherwise allowable for the
taxable year with respect to that dwelling shall not
exceed the amount of $300 reduced by the sum of the
credits allowed under subsection (a) to the taxpayer
with respect to the dwelling for all prior taxable
years.
‘‘(c) CARRYFORWARD
OF UNUSED CREDIT.—If the
credit allowable under subsection (a) exceeds the limitation
imposed by section 26(a) for such taxable year reduced by
the sum of the credits allowable under this subpart (other
than this section) for any taxable year, such excess shall
be carried to the succeeding taxable year and added to the
credit allowable under subsection (a) for such succeeding
taxable year.
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‘‘(d) QUALIFIED
ENERGY
EFFICIENCY
IMPROVE-
MENTS.—For purposes of this section, the term ‘qualified
energy efficiency improvements’ means any energy efficient
building envelope component which is certified to meet or
exceed the prescriptive criteria for such component in the
2000 International Energy Conservation Code, any energy
efficient building envelope component which is described in
subsection (f)(4)(B) and is certified by the Energy Star pro-
gram managed jointly by the Environmental Protection
Agency and the Department of Energy, or any combination
of energy efficiency measures which are certified as achiev-
ing at least a 30 percent reduction in heating and cooling
energy usage for the dwelling (as measured in terms of en-
ergy cost to the taxpayer), if—
‘‘(1) such component or combination of measures
is installed in or on a dwelling—
‘‘(A) located in the United States, and
‘‘(B) owned and used by the taxpayer as the
taxpayer’s principal residence (within the mean-
ing of section 121),
‘‘(2) the original use of such component or com-
bination of measures commences with the taxpayer,
and
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‘‘(3) such component or combination of measures
reasonably can be expected to remain in use for at
least 5 years.
‘‘(e) CERTIFICATION.—
‘‘(1) METHODS OF CERTIFICATION.—
‘‘(A) 
COMPONENT-BASED
METHOD.—The
certification described in subsection (d) for any
component described in such subsection shall be
determined on the basis of applicable energy effi-
ciency ratings (including product labeling re-
quirements) for affected building envelope compo-
nents.
‘‘(B) PERFORMANCE-BASED METHOD.—
‘‘(i) IN
GENERAL.—The certification
described in subsection (d) for any combina-
tion of measures described in such sub-
section shall be—
‘‘(I) determined by comparing the
projected heating and cooling energy
usage for the dwelling to such usage for
such dwelling in its original condition,
and
‘‘(II) accompanied by a written
analysis documenting the proper ap-
plication of a permissible energy per-
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formance calculation method to the
specific circumstances of such dwelling.
‘‘(ii) 
COMPUTER
SOFTWARE.—Com-
puter software shall be used in support of a
performance-based 
method 
certification
under clause (i). Such software shall meet
procedures and methods for calculating en-
ergy and cost savings in regulations pro-
mulgated by the Secretary of Energy. Such
regulations on the specifications for software
and verification protocols shall be based on
the 2001 California Residential Alternative
Calculation Method Approval Manual.
‘‘(2) PROVIDER.—A certification described in
subsection (d) shall be provided by—
‘‘(A) in the case of the method described in
paragraph (1)(A), by a third party, such as a
local building regulatory authority, a utility, a
manufactured home production inspection pri-
mary inspection agency (IPIA), or a home en-
ergy rating organization, or
‘‘(B) in the case of the method described in
paragraph (1)(B), an individual recognized by
an organization designated by the Secretary for
such purposes.
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‘‘(3) FORM.—A certification described in sub-
section (d) shall be made in writing on forms which
specify in readily inspectable fashion the energy effi-
cient components and other measures and their re-
spective efficiency ratings, and which include a per-
manent label affixed to the electrical distribution
panel of the dwelling.
‘‘(4) REGULATIONS.—
‘‘(A) IN GENERAL.—In prescribing regula-
tions under this subsection for certification meth-
ods described in paragraph (1)(B), the Secretary,
after examining the requirements for energy con-
sultants and home energy ratings providers spec-
ified by the Mortgage Industry National Accredi-
tation Procedures for Home Energy Rating Sys-
tems, shall prescribe procedures for calculating
annual energy usage and cost reductions for
heating and cooling and for the reporting of the
results. Such regulations shall—
‘‘(i) provide that any calculation pro-
cedures be fuel neutral such that the same
energy efficiency measures allow a dwelling
to be eligible for the credit under this sec-
tion regardless of whether such dwelling uses