I 
108TH CONGRESS 
1ST SESSION H. R. 2113
To amend the Internal Revenue Code of 1986 to allow a credit against 
income tax for certain energy efficient property placed in service or 
installed in an existing principal residence or property used by businesses. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 15, 2003
Mr. TERRY (for himself, Mr. ENGEL, Mr. GRAVES, Ms. KILPATRICK, Mr. 
BILIRAKIS, Mr. SANDERS, and Mr. TOWNS) 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 allow a 
credit against income tax for certain energy efficient 
property placed in service or installed in an existing 
principal residence or property used by businesses.
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 In-
vestment Act of 2003’’.
(as defined in section 216(b)(1)), such individual 
shall be treated as having paid his tenant-stock-
holder’s proportionate share (as defined in section 
216(b)(3)) of any expenditures paid or incurred for 
qualified energy property by such corporation, and 
such credit shall be allocated appropriately to such 
individual. 
‘‘(2) CONDOMINIUMS.—
‘‘(A) IN GENERAL.—In the case of an indi-
vidual who is a member of a condominium man-
agement association with respect to a condo-
minium which he owns, such individual shall be 
treated as having paid his proportionate share 
of expenditures paid or incurred for qualified 
energy property by such association, and such 
credit shall be allocated appropriately to such 
individual. 
‘‘(B) CONDOMINIUM
MANAGEMENT
ASSO-
CIATION.—For purposes of this paragraph, the 
term ‘condominium management association’ 
means an organization which meets the require-
ments of section 528(c)(2) with respect to a 
condominium project of which substantially all 
of the units are used by individuals as resi-
dences.
‘‘(3) EXPENDITURES FOR LABOR INCLUDED.—
For purposes of this section, the amount paid or in-
curred by the taxpayer for qualified energy property 
shall also include expenditures for labor costs prop-
erly allocable to the onsite preparation, assembly, 
and installation of such property. 
‘‘(4) ALLOCATION
TO
NONBUSINESS
USE
IN 
CERTAIN CASES.—In the case of an individual, if 
less than 80 percent of the use of qualified energy 
property placed in service or installed is for nonbusi-
ness purposes, only that portion of the expenditure 
paid or incurred for such property which is properly 
allocable to use for nonbusiness purposes shall be el-
igible for the credit provided by this section. 
‘‘(f) BASIS ADJUSTMENT.—For purposes of this sub-
title, if a credit is allowed under this section for any ex-
penditure with respect to a residence or other property, 
the basis of such residence or other property shall be re-
duced by the amount of the credit so allowed. 
‘‘(g) APPLICABILITY.—Subsection (a) shall apply to 
qualified energy property placed in service or installed on 
or after January 1, 2004.’’. 
(b) CONFORMING AMENDMENT.—Subsection (a) of 
section 1016 of such Code (relating to general rule for 
adjustments to basis) 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 adding 
at the end the following new paragraph: 
‘‘(28) in the case of a residence or other prop-
erty with respect to which a credit was allowed 
under section 30B, to the extent provided in section 
30B(f).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart B of part IV of subchapter A of chapter 1 
of such Code is amended by inserting after the item relat-
ing to section 30A the following new item:
‘‘Sec. 30B. Certain energy efficient property in residences and 
businesses.’’.
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending after De-
cember 31, 2003.
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