I 
113TH CONGRESS 
2D SESSION 
H. R. 5655 
To amend the Internal Revenue Code of 1986 to expand the rehabilitation 
credit, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 18, 2014 
Mr. SCHOCK (for himself, Mr. BLUMENAUER, Mr. KELLY of Pennsylvania, 
and Mr. KIND) 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 expand 
the rehabilitation credit, 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 ‘‘Creating American 
Prosperity through Preservation Act’’. 
SEC. 2. INCREASE IN THE REHABILITATION CREDIT FOR 
CERTAIN SMALLER PROJECTS. 
(a) IN GENERAL.—Section 47 of the Internal Rev-
enue Code of 1986 (relating to rehabilitation credit) is 
VerDate Sep 11 2014 
00:48 Oct 04, 2014
Jkt 039200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H5655.IH
H5655
SSpencer on DSK4SPTVN1PROD with BILLS
amended by adding at the end the following new sub-
section: 
‘‘(e) SPECIAL RULE REGARDING CERTAIN SMALLER 
PROJECTS.— 
‘‘(1) IN GENERAL.—In the case of any qualified 
rehabilitated building or portion thereof— 
‘‘(A) which is placed in service after the 
date of the enactment of this subsection, and 
‘‘(B) which is a smaller project, 
subsection (a)(2) shall be applied by substituting ‘30 
percent’ for ‘20 percent’. 
‘‘(2) MAXIMUM
CREDIT.—The credit deter-
mined under this subsection with respect to any 
smaller project for all taxable years shall not exceed 
$1,500,000. 
‘‘(3) SMALLER PROJECT DEFINED.— 
‘‘(A) IN GENERAL.—For purposes of this 
subsection, the term ‘smaller project’ means 
any qualified rehabilitated building or portion 
thereof if— 
‘‘(i) the qualified rehabilitation ex-
penditures taken into account for purposes 
of this section (or would have been so 
taken into account if this subsection had 
been in effect for all prior periods) with re-
VerDate Sep 11 2014 
00:48 Oct 04, 2014
Jkt 039200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H5655.IH
H5655
SSpencer on DSK4SPTVN1PROD with BILLS
spect to the rehabilitation are not over 
$7,500,000, and 
‘‘(ii) no credit was allowed under this 
section for either of the 2 prior taxable 
years with respect to such building. 
‘‘(B) PROGRESS
EXPENDITURES.—Credit 
allowable by reason of subsection (d) shall not 
be taken into account under subparagraph 
(A)(ii).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to periods after the date of the 
enactment of this Act, under rules similar to the rules of 
section 48(m) of the Internal Revenue Code of 1986 (as 
in effect on the day before the date of the enactment of 
the Revenue Reconciliation Act of 1990). 
SEC. 3. ADDITION OF ENERGY EFFICIENCY SUPPLEMENT 
TO REHABILITATION CREDIT. 
(a) IN GENERAL.—Subsection (a) of section 47 of the 
Internal Revenue Code of 1986 is amended by striking 
‘‘and’’ at the end of paragraph (1), by striking the period 
at the end of paragraph (2) and inserting ‘‘, and’’, and 
by adding at the end the following new paragraph: 
‘‘(3) 2 percent of the qualified rehabilitation ex-
penditures if the building is a qualified energy effi-
cient rehabilitated building.’’. 
VerDate Sep 11 2014 
00:48 Oct 04, 2014
Jkt 039200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H5655.IH
H5655
SSpencer on DSK4SPTVN1PROD with BILLS
(b) QUALIFIED ENERGY EFFICIENT REHABILITATED 
BUILDING.—Section 47 of such Code, as amended by sec-
tion 2, is amended by adding at the end the following new 
subsection: 
‘‘(f) QUALIFIED
ENERGY
EFFICIENT
REHABILI-
TATED BUILDING.— 
‘‘(1) IN GENERAL.—The term ‘qualified energy 
efficient rehabilitated building’ means any building 
(and its structural components) if— 
‘‘(A) the building is a qualified rehabili-
tated building, and 
‘‘(B)(i) the rehabilitation is certified (in 
accordance with paragraph (4)) as being de-
signed to achieve at least a 30 percent energy 
use reduction in the building’s energy use, or 
‘‘(ii) the building meets the requirements 
of paragraph (2)(B)(ii) and is determined under 
paragraph (2)(B) to achieve at least a 30 per-
cent energy use reduction after being rehabili-
tated. 
‘‘(2) DETERMINATION OF ENERGY USE REDUC-
TION.—For purposes of paragraph (1)— 
‘‘(A) DESIGN-BASED STANDARDS.— 
‘‘(i) BUILDINGS WITHIN THE SCOPE 
OF STANDARD 90.1–2007.—If the building 
VerDate Sep 11 2014 
00:48 Oct 04, 2014
Jkt 039200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H5655.IH
H5655
SSpencer on DSK4SPTVN1PROD with BILLS
is within the scope of Standard 90.1–2007, 
the designed reduction in energy use shall 
be determined using methods of calculation 
under paragraph (3) in comparison to a 
reference building which meets the min-
imum requirements of such standard. 
‘‘(ii) RESNET BUILDINGS.—If the 
building is within the scope of RESNET, 
the designed reduction in energy use shall 
be determined using methods prescribed by 
the Secretary which are based on the Resi-
dential Energy Services Network Technical 
Guidelines. 
‘‘(iii) OTHER BUILDINGS.—If neither 
clause (i) or (ii) apply to the building, the 
designed reduction in energy use shall be 
determined using methods of calculation 
prescribed by the Secretary in a manner 
which is consistent with principles under 
paragraph (3). 
‘‘(B) MEASURED REDUCTIONS.— 
‘‘(i) IN
GENERAL.—In the case of 
buildings which meet the requirements of 
clause (ii), the taxpayer may determine the 
reduction in energy usage by comparing 
VerDate Sep 11 2014 
00:48 Oct 04, 2014
Jkt 039200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H5655.IH
H5655
SSpencer on DSK4SPTVN1PROD with BILLS
the energy usage during the period selected 
by the taxpayer under clause (ii)(I) with 
the energy usage during the period selected 
by the taxpayer under clause (ii)(II). 
‘‘(ii) BUILDING
REQUIREMENTS.—A 
building meets the requirements of this 
clause if— 
‘‘(I) the building is at least 75 
percent occupied during any period 
(but not less than 12 months) selected 
by the taxpayer which ends during the 
5-year period ending on the date that 
the rehabilitation begins, and 
‘‘(II) the building is at least 75 
percent occupied during the com-
parable period selected by the tax- 
payer which begins during the 5-year 
period beginning on the date that the 
rehabilitation is completed. 
‘‘(iii) ENERGY STAR BUILDINGS.—The 
reduction in energy use for buildings with-
in the scope of Energy Star Portfolio Man-
ager may be determined for purposes of 
this subparagraph by using the Energy 
VerDate Sep 11 2014 
23:16 Oct 06, 2014
Jkt 049200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H5655.IH
H5655
SSpencer on DSK4SPTVN1PROD with BILLS
Star Portfolio Manager Buildings Bench-
mark Tool. 
‘‘(iv) SPECIAL RULES.—The Secretary 
shall prescribe regulations which preclude 
the use of this subparagraph, or modify 
the methods otherwise applicable under 
this subparagraph, in circumstance where 
vacancies, changes in use, and other fac-
tors which might otherwise yield in materi-
ally misleading results. 
‘‘(v) YEAR CREDIT ALLOWABLE.—In 
the case of a building which is a qualified 
energy efficient rehabilitated building sole-
ly by reason of this subparagraph, the in-
crease in the credit under subsection (a)(3) 
with respect to such building shall be 
taken into account for the taxable year 
which includes the end of the period se-
lected by the taxpayer under clause (ii)(II) 
in lieu of the taxable year in which the re-
habilitated building is placed in service. 
‘‘(3) METHODS OF CALCULATIONS.— 
‘‘(A) IN GENERAL.—The Secretary, after 
consultation with the Secretary of Energy, shall 
promulgate regulations which describe in detail 
VerDate Sep 11 2014 
00:48 Oct 04, 2014
Jkt 039200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H5655.IH
H5655
SSpencer on DSK4SPTVN1PROD with BILLS