I 
109TH CONGRESS 
1ST SESSION H. R. 1421 
To amend the Internal Revenue Code of 1986 to allow for an energy efficient 
appliance credit. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 17, 2005 
Mr. NUSSLE (for himself, Mr. TANNER, Mr. LATHAM, Mr. KING of Iowa, Mr. 
BOSWELL, Mrs. JOHNSON of Connecticut, Mr. LEWIS of Kentucky, and 
Mr. WAMP) introduced the following bill; which was referred to the Com-
mittee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to allow for 
an energy efficient appliance credit. 
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 ‘‘Resource Efficient Ap-
pliance Incentives Act of 2005.’’. 
SEC. 2. CREDIT FOR ENERGY EFFICIENT APPLIANCES. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to business-related credits) is amended by 
adding at the end the following new section: 
‘‘SEC. 45J. ENERGY EFFICIENT APPLIANCE CREDIT. 
‘‘(a) GENERAL RULE.— 
‘‘(1) IN GENERAL.—For purposes of section 38, 
the energy efficient appliance credit determined 
under this section for the taxable year is an amount 
equal to the sum of the credit amounts determined 
for each type of qualified energy efficient appliance. 
‘‘(2) CREDIT
AMOUNTS.—The credit amount 
determined for a type of qualified energy efficient 
appliance is the sum of— 
‘‘(A) the applicable amount determined 
under subsection (b) with respect to a qualified 
energy efficient appliance, multiplied by 
‘‘(B) the number of such appliances pro-
duced by the taxpayer in the United States dur-
ing the calendar year ending with or within the 
taxable year. 
‘‘(b) APPLICABLE
AMOUNT; ELIGIBLE
PRODUC-
TION.—For purposes of subsection (a)— 
‘‘(1) APPLICABLE AMOUNT.— 
‘‘(A) 
IN
GENERAL.—The 
applicable 
amount determined under this subsection is the 
amount determined under the following table:
‘‘Qualified Energy Efficient Ap-
pliance 
Produced in calendar 
year— 
Applicable 
amount is— 
Clothes washer with at least 1.42 
MEF.
2005 
$50 
Clothes washer with MEF at least 
Energy Star level in effect in 
2007.
2005, 2006, or 2007 
$100 
Clothes washer with MEF at least 
Energy Star level in effect in 
2010.
2008, 2009, or 2010 
$150 
Dishwasher with EF at least En-
ergy Star level in effect in 2007.
2006, 2007, 2008, or 
2009 
$75 
Refrigerator consuming at least 15 
percent less kilowatt hours per 
year than 2001 energy conserva-
tion standard.
2005 or 2006 
$100 
Refrigerator consuming at least 20 
percent less kilowatt hours per 
year than 2001 energy conserva-
tion standard.
2005, 2006, 2007, 
2008, or 2009 
$150 
Refrigerator consuming at least 25 
percent less kilowatt hours per 
year than 2001 energy conserva-
tion standard.
2010 
$150 
‘‘(B) OTHER APPLIANCES.—In the case of 
any appliance not described in the table in sub-
paragraph (A), the applicable amount shall be 
zero. 
‘‘(2) ELIGIBLE PRODUCTION.— 
‘‘(A) IN GENERAL.—The eligible produc-
tion in a calendar year with respect to each 
type of energy efficient appliance described in 
the table in paragraph (1) is the excess of— 
‘‘(i) the number of appliances of such 
type which meet the energy efficiency de-
scribed for such type in the table in para-
graph (1) and which are produced by the 
taxpayer during such calendar year, over
‘‘(ii) the average number of appliances 
of such type which meet the energy effi-
ciency described for such type in the table 
in paragraph (1) and which were produced 
by the taxpayer (or any predecessor) dur-
ing the preceding 3-calendar year period. 
‘‘(B) SPECIAL
RULE
FOR
2005
PRODUC-
TION.—For purposes of determining eligible 
production for calendar year 2005— 
‘‘(i) only production after the date of 
enactment of this section shall be taken 
into account under subparagraph (A)(i), 
and 
‘‘(ii) the amount taken into account 
under subparagraph (A)(ii) shall be an 
amount which bears the same ratio to the 
amount which would (but for this subpara-
graph) be taken into account under sub-
paragraph (A)(ii) as— 
‘‘(I) the number of days in cal-
endar year 2005 after the date of en-
actment of this section, bears to 
‘‘(II) 365. 
‘‘(c) LIMITATIONS.—
‘‘(1) AGGREGATE CREDIT AMOUNT ALLOWED.— 
The aggregate amount of credit allowed under sub-
section (a) with respect to a taxpayer for all taxable 
years shall not exceed $75,000,000, reduced by the 
amount of the credit allowed under subsection (a) to 
the taxpayer (or any predecessor) for any prior tax-
able year. 
‘‘(2) AMOUNT ALLOWED FOR CERTAIN APPLI-
ANCES.— 
‘‘(A) IN GENERAL.—In the case of appli-
ances described in subparagraph (B), the aggre-
gate amount of the credit allowed under sub-
section (a) with respect to a taxpayer for all 
taxable years shall not exceed $35,000,000, re-
duced by the amount of the credit allowed 
under subsection (a) to the taxpayer (or any 
predecessor) for any prior taxable year with re-
spect to such appliances. 
‘‘(B) APPLIANCES DESCRIBED.—The appli-
ances described in this subparagraph are— 
‘‘(i) clothes washers with at least a 
1.42 MEF, as described in the table in 
subsection (b)(1), 
‘‘(ii) refrigerators which consume at 
least 15 percent less kilowatt hours per
year than applicable energy conservation 
standards, as described in such table, and 
‘‘(iii) dishwashers described in such 
table. 
‘‘(3) 
LIMITATION
BASED
ON
GROSS
RE-
CEIPTS.—The credit allowed under subsection (a) 
with respect to a taxpayer for the taxable year shall 
not exceed an amount equal to 2 percent of the aver-
age annual gross receipts of the taxpayer for the 3 
taxable years preceding the taxable year in which 
the credit is determined. 
‘‘(4) GROSS RECEIPTS.—For purposes of this 
subsection, the rules of paragraphs (2) and (3) of 
section 448(c) shall apply. 
‘‘(d) DEFINITIONS.—For purposes of this section— 
‘‘(1) QUALIFIED
ENERGY
EFFICIENT
APPLI-
ANCE.—The term ‘qualified energy efficient appli-
ance’ means an appliance described in the table in 
subsection (b)(1). 
‘‘(2) CLOTHES
WASHER.—The term ‘clothes 
washer’ means a residential model clothes washer, 
including a residential style coin operated washer. 
‘‘(3) REFRIGERATOR.—The term ‘refrigerator’ 
means a residential model automatic defrost refrig-
erator-freezer which has an internal volume of at 
least 16.5 cubic feet. 
‘‘(4) DISHWASHER.—The term ‘dishwasher’ 
means a residential dishwasher subject to the energy 
conservation standards established by the Depart-
ment of Energy. 
‘‘(5) MEF.—The term ‘MEF’ means the modi-
fied energy factor, as determined by the Secretary of 
Energy. 
‘‘(6) ENERGY FACTOR.—The term ‘EF’ means 
the energy factor established by the Department of 
Energy for compliance with the Federal energy con-
servation standards. 
‘‘(7) PRODUCED.—The term ‘produced’ in-
cludes manufactured. 
‘‘(8) 2001 
ENERGY
CONSERVATION
STAND-
ARD.—The term ‘2001 energy conservation stand-
ard’ means the energy conservation standards pro-
mulgated by the Department of Energy and effective 
July 1, 2001. 
‘‘(e) SPECIAL RULES.—For purposes of this sec-
tion— 
‘‘(1) IN GENERAL.—Rules similar to the rules 
of subsections (c), (d), and (e) of section 52 shall 
apply.
‘‘(2) CONTROLLED GROUP.— 
‘‘(A) IN GENERAL.—All persons treated as 
a single employer under subsection (a) or (b) of 
section 52 or subsection (m) or (o) of section 
414 shall be treated as a single producer. 
‘‘(B) INCLUSION
OF
FOREIGN
CORPORA-
TIONS.—For purposes of subparagraph (A), in 
applying subsections (a) and (b) of section 52 
to this section, section 1563 shall be applied 
without regard to subsection (b)(2)(C) thereof. 
‘‘(3) VERIFICATION.—No amount shall be al-
lowed as a credit under subsection (a) with respect 
to which the the taxpayer has not submitted such in-
formation or certification as the Secretary, in con-
sultation with the Secretary of Energy, determines 
necessary.’’. 
(b) CONFORMING AMENDMENT.—Section 38(b) of 
the Internal Revenue Code of 1986 (relating to general 
business credit) is amended by striking ‘‘plus’’ at the end 
of paragraph (18), by striking the period at the end of 
paragraph (19) and inserting ‘‘, plus’’, and by adding at 
the end the following new paragraph: 
‘‘(20) the energy efficient appliance credit de-
termined under section 45J(a).’’.
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following new item: 
‘‘Sec. 45J. Energy efficient appliance credit.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to appliances produced after De-
cember 31, 2004, in taxable years ending after such date. 
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