SEC. 2. CREDIT AGAINST INCOME TAX FOR PURCHASE OF 
ENERGY 
STAR 
COMPLIANT 
AIR 
CONDI-
TIONERS. 
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to other credits) is amended by adding at 
the end the following new section: 
‘‘SEC. 30D. ENERGY STAR COMPLIANT AIR CONDITIONERS. 
‘‘(a) ALLOWANCE OF CREDIT.—There shall be al-
lowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to 25 percent of the 
cost of any Energy Star compliant air conditioner placed 
in service by the taxpayer during the taxable year. 
‘‘(b) LIMITATION.—The credit allowed by subsection 
(a) for each Energy Star compliant air conditioner shall 
not exceed $500. 
‘‘(c) 
ENERGY
STAR
COMPLIANT
AIR
CONDI-
TIONER.—For purposes of this section, the term ‘Energy 
Star compliant air conditioner’ means any air conditioner 
(including room and central units)— 
‘‘(1) which meets the requirements for the En-
ergy Star program which are in effect at the time 
the air conditioner is placed in service by the tax-
payer, and 
‘‘(2) the original use of which begins with the 
taxpayer. 
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‘‘(d) APPLICATION WITH OTHER CREDITS.— 
‘‘(1) BUSINESS CREDIT TREATED AS PART OF 
GENERAL BUSINESS CREDIT.—So much of the credit 
which would be allowed under subsection (a) for any 
taxable year (determined without regard to this sub-
section) that is attributable to property of a char-
acter subject to an allowance for depreciation shall 
be treated as a credit listed in section 38(b) for such 
taxable year (and not allowed under subsection (a)). 
‘‘(2) PERSONAL
CREDIT.—The credit allowed 
under subsection (a) (after the application of para-
graph (1)) for any taxable year shall not exceed the 
excess (if any) of— 
‘‘(A) the regular tax liability (as defined in 
section 26(b)) reduced by the sum of the credits 
allowable under subpart A and sections 27, 30, 
30B, and 30C, over 
‘‘(B) the tentative minimum tax for the 
taxable year. 
‘‘(e) OTHER RULES TO APPLY.—Rules similar to the 
rules of paragraphs (2), (3), (4), and (5) of section 30C(e) 
shall apply for purposes of this section. 
‘‘(f) BASIS ADJUSTMENT.— For purposes of this sub-
title, the basis of any property shall be reduced by the 
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amount of any credit allowed under this section with re-
spect to such property. 
‘‘(g) TERMINATION.—This section shall not apply to 
property placed in service after December 31, 2016.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Subsection (a) of section 1016 of such Code 
is amended by striking ‘‘and’’ at the end of para-
graph (36), by striking the period at the end of 
paragraph (37) and inserting ‘‘, and’’, and by add-
ing at the end the following new paragraph: 
‘‘(38) to the extent provided in section 
30D(f).’’. 
(2) The table of sections for subpart B of part 
IV of subchapter A of chapter 1 of such Code is 
amended by adding at the end the following new 
item: 
‘‘Sec. 30D. Energy Star compliant air conditioners.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act. 
Æ 
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