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fied issuer adopts an official intent to reim-
burse the original expenditure with such 
proceeds, and 
‘‘(iii) the reimbursement is made not 
later than 18 months after the date the 
original expenditure is paid. 
‘‘(D) TREATMENT OF CHANGES IN USE.— 
For purposes of paragraph (1)(B), the proceeds 
of an issue shall not be treated as used for a 
qualified project to the extent that a qualified 
borrower takes any action within its control 
which causes such proceeds not to be used for a 
qualified project. The Secretary shall prescribe 
regulations specifying remedial actions that may 
be taken (including conditions to taking such re-
medial actions) to prevent an action described in 
the preceding sentence from causing a bond to 
fail to be a clean energy coal bond. 
‘‘(e) MATURITY LIMITATIONS.— 
‘‘(1) DURATION OF TERM.—A bond shall not be 
treated as a clean energy coal bond if the maturity 
of such bond exceeds the maximum term determined 
by the Secretary under paragraph (2) with respect to 
such bond.
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‘‘(2) MAXIMUM
TERM.—During each calendar 
month, the Secretary shall determine the maximum 
term permitted under this paragraph for bonds issued 
during the following calendar month. Such maximum 
term shall be the term which the Secretary estimates 
will result in the present value of the obligation to 
repay the principal on the bond being equal to 50 
percent of the face amount of such bond. Such present 
value shall be determined using as a discount rate the 
average annual interest rate of tax of tax-exempt obli-
gations having a term of 10 years or more which are 
issued during the month. If the term as so determined 
is not a multiple of a whole year, such term shall be 
rounded to the next highest whole year. 
‘‘(3) RATABLE
PRINCIPAL
AMORTIZATION
RE-
QUIRED.—A bond shall not be treated as a clean en-
ergy coal bond unless it is part of an issue which pro-
vides for an equal amount of principal to be paid by 
the qualified issuer during each calendar year that 
the issue is outstanding. 
‘‘(f) LIMITATION
ON
AMOUNT
OF
BONDS
DES-
IGNATED.— 
‘‘(1) NATIONAL
LIMITATION.—There is a na-
tional 
clean 
energy 
coal 
bond 
limitation 
of 
$1,000,000,000.
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‘‘(2) ALLOCATION
BY
SECRETARY.—The Sec-
retary shall allocate the amount described in para-
graph (1) among qualified projects in such manner as 
the Secretary determines appropriate. 
‘‘(g) CREDIT INCLUDED IN GROSS INCOME.—Gross in-
come includes the amount of the credit allowed to the tax-
payer under this section (determined without regard to sub-
section (c)) and the amount so included shall be treated as 
interest income. 
‘‘(h) SPECIAL RULES RELATING TO EXPENDITURES.— 
‘‘(1) IN GENERAL.—An issue shall be treated as 
meeting the requirements of this subsection if, as of 
the date of issuance, the qualified issuer reasonably 
expects— 
‘‘(A) at least 95 percent of the proceeds from 
the sale of the issue are to be spent for 1 or more 
qualified projects within the 5-year period begin-
ning on the date of issuance of the clean energy 
bond, 
‘‘(B) a binding commitment with a third 
party to spend at least 10 percent of the proceeds 
from the sale of the issue will be incurred within 
the 6-month period beginning on the date of 
issuance of the clean energy bond or, in the case 
of a clean energy bond the proceeds of which are
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to be loaned to 2 or more qualified borrowers, 
such binding commitment will be incurred with-
in the 6-month period beginning on the date of 
the loan of such proceeds to a qualified borrower, 
and 
‘‘(C) such projects will be completed with 
due diligence and the proceeds from the sale of 
the issue will be spent with due diligence. 
‘‘(2) EXTENSION OF PERIOD.—Upon submission 
of a request prior to the expiration of the period de-
scribed in paragraph (1)(A), the Secretary may ex-
tend such period if the qualified issuer establishes that 
the failure to satisfy the 5-year requirement is due to 
reasonable cause and the related projects will continue 
to proceed with due diligence. 
‘‘(3) FAILURE TO SPEND REQUIRED AMOUNT OF 
BOND PROCEEDS WITHIN 5 YEARS.—To the extent that 
less than 95 percent of the proceeds of such issue are 
expended by the close of the 5-year period beginning 
on the date of issuance (or if an extension has been 
obtained under paragraph (2), by the close of the ex-
tended period), the qualified issuer shall redeem all of 
the nonqualified bonds within 90 days after the end 
of such period. For purposes of this paragraph, the 
amount of the nonqualified bonds required to be re-
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deemed shall be determined in the same manner as 
under section 142. 
‘‘(i) SPECIAL RULES RELATING TO ARBITRAGE.—A 
bond which is part of an issue shall not be treated as a 
clean energy coal bond unless, with respect to the issue of 
which the bond is a part, the qualified issuer satisfies the 
arbitrage requirements of section 148 with respect to pro-
ceeds of the issue. 
‘‘(j) COOPERATIVE ELECTRIC COMPANY; QUALIFIED 
ENERGY TAX CREDIT BOND LENDER; GOVERNMENTAL 
BODY; QUALIFIED BORROWER.—For purposes of this sec-
tion— 
‘‘(1) COOPERATIVE
ELECTRIC
COMPANY.—The 
term ‘cooperative electric company’ means a mutual 
or cooperative electric company described in section 
501(c)(12) or section 1381(a)(2)(C), or a not-for-prof-
it electric utility which has received a loan or loan 
guarantee under the Rural Electrification Act. 
‘‘(2) CLEAN ENERGY BOND LENDER.—The term 
‘clean energy bond lender’ means a lender which is a 
cooperative which is owned by, or has outstanding 
loans to, 100 or more cooperative electric companies 
and is in existence on February 1, 2002, and shall in-
clude any affiliated entity which is controlled by such 
lender.
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‘‘(3) GOVERNMENTAL BODY.—The term ‘govern-
mental body’ means any State, territory, possession of 
the United States, the District of Columbia, Indian 
tribal government, and any political subdivision 
thereof. 
‘‘(4) QUALIFIED
ISSUER.—The term ‘qualified 
issuer’ means— 
‘‘(A) a clean energy bond lender, 
‘‘(B) a cooperative electric company, 
‘‘(C) a governmental body, or 
‘‘(D) the Tennessee Valley Authority. 
‘‘(5) QUALIFIED BORROWER.—The term ‘quali-
fied borrower’ means— 
‘‘(A) a mutual or cooperative electric com-
pany 
described 
in 
section 
501(c)(12) 
or 
1381(a)(2)(C), 
‘‘(B) a governmental body, or 
‘‘(C) the Tennessee Valley Authority. 
‘‘(k) SPECIAL RULES RELATING TO POOL BONDS.— 
No portion of a pooled financing bond may be allocable to 
any loan unless the borrower has entered into a written 
loan commitment for such portion prior to the issue date 
of such issue. 
‘‘(l) OTHER DEFINITIONS AND SPECIAL RULES.—For 
purposes of this section—
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‘‘(1) BOND.—The term ‘bond’ includes any obli-
gation. 
‘‘(2) POOLED
FINANCING
BOND.—The term 
‘pooled financing bond’ shall have the meaning given 
such term by section 149(f)(4)(A). 
‘‘(3) PARTNERSHIP; S CORPORATION; AND OTHER 
PASS-THRU ENTITIES.— 
‘‘(A) IN GENERAL.—Under regulations pre-
scribed by the Secretary, in the case of a part-
nership, trust, S corporation, or other pass-thru 
entity, rules similar to the rules of section 41(g) 
shall apply with respect to the credit allowable 
under subsection (a). 
‘‘(B) NO BASIS ADJUSTMENT.—Rules simi-
lar to the rules under section 1397E(i)(2) shall 
apply. 
‘‘(4) BONDS HELD BY REGULATED INVESTMENT 
COMPANIES.—If any clean energy coal bond is held by 
a regulated investment company, the credit deter-
mined under subsection (a) shall be allowed to share-
holders of such company under procedures prescribed 
by the Secretary. 
‘‘(5) TREATMENT
FOR
ESTIMATED
TAX
PUR-
POSES.—Solely for purposes of sections 6654 and 
6655, the credit allowed by this section to a taxpayer
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by reason of holding a clean energy coal bond on a 
credit allowance date shall be treated as if it were a 
payment of estimated tax made by the taxpayer on 
such date. 
‘‘(6) REPORTING.—Issuers of clean energy coal 
bonds shall submit reports similar to the reports re-
quired under section 149(e). 
‘‘(m) TERMINATION.—This section shall not apply 
with respect to any bond issued after December 31, 2010.’’. 
(b) REPORTING.—Subsection (d) of section 6049 (relat-
ing to returns regarding payments of interest), as amended 
by this Act, is amended by adding at the end the following 
new paragraph: 
‘‘(9) REPORTING OF CREDIT ON CLEAN ENERGY 
COAL BONDS.— 
‘‘(A) IN GENERAL.—For purposes of sub-
section (a), the term ‘interest’ includes amounts 
includible in gross income under section 54A(g) 
and such amounts shall be treated as paid on the 
credit allowance date (as defined in section 
54A(b)(4)). 
‘‘(B) REPORTING TO CORPORATIONS, ETC.— 
Except as otherwise provided in regulations, in 
the case of any interest described in subpara-
graph (A), subsection (b)(4) shall be applied
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without regard to subparagraphs (A), (H), (I), 
(J), (K), and (L)(i) of such subsection. 
‘‘(C) REGULATORY
AUTHORITY.—The Sec-
retary may prescribe such regulations as are nec-
essary or appropriate to carry out the purposes 
of this paragraph, including regulations which 
require more frequent or more detailed report-
ing.’’. 
(c) CLERICAL AMENDMENT.—The table of sections for 
subpart H of part IV of subchapter A of chapter 1, as added 
by this Act, is amended by adding at the end the following 
new item: 
‘‘Sec. 54A. Credit to holders of clean energy coal bonds.’’. 
(d) ISSUANCE OF REGULATIONS.—The Secretary of 
Treasury shall issue regulations required under section 54A 
of the Internal Revenue Code of 1986 (as added by this sec-
tion) not later than 120 days after the date of the enactment 
of this Act. 
(e) EFFECTIVE DATE.—The amendments made by this 
section shall apply to bonds issued after December 31, 2005. 
Subtitle B—Domestic Fossil Fuel 
Security 
SEC. 1511. CREDIT FOR INVESTMENT IN CLEAN COKE/CO-
GENERATION MANUFACTURING FACILITIES. 
(a) ALLOWANCE OF CLEAN COKE/COGENERATION MAN-
UFACTURING FACILITIES CREDIT.—Section 46 (relating to
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amount of credit), as amended by this Act, is amended by 
striking ‘‘and’’ at the end of paragraph (3), by striking the 
period at the end of paragraph (4), and inserting ‘‘, and’’, 
and by adding at the end the following new paragraph: 
‘‘(5) the clean coke/cogeneration manufacturing 
facilities credit.’’. 
(b) AMOUNT OF CLEAN COKE/COGENERATION MANU-
FACTURING FACILITIES CREDIT.—Subpart E of part IV of 
subchapter A of chapter 1 (relating to rules for computing 
investment credit), as amended by this Act, is amended by 
inserting after section 48B the following new section: 
‘‘SEC. 48C. CLEAN COKE/COGENERATION MANUFACTURING 
FACILITIES CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 46, the 
clean coke/cogeneration manufacturing facilities credit for 
any taxable year is an amount equal to 20 percent of the 
qualified investment for such taxable year. 
‘‘(b) QUALIFIED INVESTMENT.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the qualified investment for any taxable year is 
the basis of each clean coke/cogeneration manufac-
turing facilities property placed in service by the tax-
payer during such taxable year. 
‘‘(2) CLEAN
COKE/COGENERATION
MANUFAC-
TURING FACILITIES PROPERTY.—For purposes of this
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section, the term ‘clean coke/cogeneration manufac-
turing facilities property’ means real and tangible 
personal property which— 
‘‘(A) is depreciable under section 167, 
‘‘(B) is located in the United States, 
‘‘(C) is used for the manufacture of met-
allurgical coke or for the production of steam or 
electricity from waste heat generated during the 
production of metallurgical coke, and 
‘‘(D) does not exceed any of the following 
emission limitations— 
‘‘(i) 0.0 percent leaking for any coke 
oven doors unless the operation of ovens is 
under negative pressure, 
‘‘(ii) 0.0 percent leaking for any top-
side port lids, 
‘‘(iii) 0.0 percent leaking for any 
offtake system, 
determined 
as 
provided 
for 
in 
section 
63.303(b)(1)(ii) or 63.309(d)(1) of title 40, Code 
of Federal Regulations. 
‘‘(c) TERMINATION.—This subsection shall not apply 
to property for periods after December 31, 2009.’’. 
(c) 
TECHNICAL
AMENDMENT.—Section 
50(c) 
is 
amended by adding at the end the following new paragraph:
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‘‘(6) SPECIAL
RULE
FOR
COKE/COGENERATION 
FACILITIES.—Paragraphs (1) and (2) shall not apply 
to any property with respect to the credit determined 
under section 48C.’’. 
(d) CONFORMING AMENDMENTS.— 
(1) Section 49(a)(1)(C), as amended by this Act, 
is amended by striking ‘‘and’’ at the end of clause 
(iii), by striking the period at the end of clause (iv) 
and inserting ‘‘, and’’, and by adding at the end the 
following new clause: 
‘‘(v) the basis of any clean coke/cogen-
eration manufacturing facilities property.’’ 
(2) The table of sections for subpart E of part IV 
of subchapter A of chapter 1, as amended by this Act, 
is amended by inserting after the item relating to sec-
tion 48B the following new item: 
‘‘48C. Clean coke/cogeneration manufacturing facilities credit.’’. 
(e) EFFECTIVE DATE.—The amendments made by this 
section shall apply to periods after December 31, 2004, 
under rules similar to the rules of section 48(m) of the In-
ternal Revenue Code of 1986 (as in effect on the day before 
the date of the enactment of the Revenue Reconciliation Act 
of 1990).
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SEC. 1512. TEMPORARY EXPENSING FOR EQUIPMENT USED 
IN REFINING OF LIQUID FUELS. 
(A) IN GENERAL.—Part VI of subchapter B of chapter 
1 is amended by inserting after section 179B the following 
new section: 
‘‘SEC. 179C. ELECTION TO EXPENSE CERTAIN REFINERIES. 
‘‘(a) TREATMENT AS EXPENSES.—A taxpayer may 
elect to treat the cost of any qualified refinery property as 
an expense which is not chargeable to capital account. Any 
cost so treated shall be allowed as a deduction for the taxable 
year in which the qualified refinery is placed in service. 
‘‘(b) ELECTION.— 
‘‘(1) IN GENERAL.—An election under this sec-
tion for any taxable year shall be made on the tax-
payer’s return of the tax imposed by this chapter for 
the taxable year. Such election shall be made in such 
manner as the Secretary may by regulations pre-
scribe. 
‘‘(2) ELECTION
IRREVOCABLE.—Any election 
made under this section may not be revoked except 
with the consent of the Secretary. 
‘‘(c) QUALIFIED REFINERY PROPERTY.—The term 
‘qualified refinery property’ means any refinery or portion 
of a refinery— 
‘‘(1) the original use of which commences with 
the taxpayer,
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‘‘(2) the construction of which— 
‘‘(A) except as provided in subparagraph 
(B), is subject to a binding construction contract 
entered into after June 14, 2005, and before Jan-
uary 1, 2008, but only if there was no written 
binding construction contract entered into on or 
before June 14, 2005, or 
‘‘(B) in the case of self-constructed property, 
began after June 14, 2005, 
‘‘(3) which is placed in service by the taxpayer 
after the date of the enactment of this section and be-
fore January 1, 2012, 
‘‘(4) in the case of any portion of a refinery, 
which meets the requirements of subsection (d), and 
‘‘(5) which meets all applicable environmental 
laws in effect on the date such refinery or portion 
thereof was placed in service. 
A waiver under the Clean Air Act shall not be taken into 
account in determining whether the requirements of para-
graph (5) are met. 
‘‘(d) PRODUCTION CAPACITY.—The requirements of 
this subsection are met if the portion of the refinery— 
‘‘(1) increases the rated capacity of the existing 
refinery by 5 percent or more over the capacity of
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such refinery as reported by the Energy Information 
Agency on January 1, 2005, or 
‘‘(2) enables the existing refinery to process 
qualified fuels (as defined in section 29(c)) at a rate 
which is equal to or greater than 25 percent of the 
total throughput of such refinery on an average daily 
basis. 
‘‘(e) ELECTION TO ALLOCATE DEDUCTION TO COOP-
ERATIVE OWNER.—If— 
‘‘(1) a taxpayer to which subsection (a) applies 
is an organization to which part I of subchapter T 
applies, and 
‘‘(2) one or more persons directly holding an 
ownership interest in the taxpayer are organizations 
to which part I of subchapter T apply, 
the taxpayer may elect to allocate all or a portion of the 
deduction allowable under subsection (a) to such persons. 
Such allocation shall be equal to the person’s ratable share 
of the total amount allocated, determined on the basis of 
the person’s ownership interest in the taxpayer. The taxable 
income of the taxpayer shall not be reduced under section 
1382 by reason of any amount to which the preceding sen-
tence applies.
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‘‘(f) INELIGIBLE REFINERIES.—No deduction shall be 
allowed under subsection (a) for any qualified refinery 
property— 
‘‘(1) the primary purpose of which is for use as 
a topping plant, asphalt plant, lube oil facility, crude 
or product terminal, or blending facility, or 
‘‘(2) which is built solely to comply with Feder-
ally mandated projects or consent decrees. 
‘‘(g) REPORTING.—No deduction shall be allowed 
under subsection (a) to any taxpayer for any taxable year 
unless such taxpayer files with the Secretary a report con-
taining such information with respect to the operation of 
the refineries of the taxpayer as the Secretary shall re-
quire.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 1245(a) is amended by inserting 
‘‘179C,’’ after ‘‘179B,’’ both places it appears in para-
graphs (2)(C) and (3)(C). 
(2) Section 263(a)(1) is amended by striking 
‘‘or’’ at the end of subparagraph (H), by striking the 
period at the end of subparagraph (I) and inserting 
‘‘, or’’, and by inserting after subparagraph (I) the 
following new subparagraph: 
‘‘(J) expenditures for which a deduction is 
allowed under section 179C.’’.
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(3) Section 312(k)(3)(B) is amended by striking 
‘‘179 179A, or 179B’’ each place it appears in the 
heading and text and inserting ‘‘179, 179A, 179B, or 
179C’’. 
(4) The table of sections for part VI of sub-
chapter B of chapter 1 is amended by inserting after 
the item relating to section 179B the following new 
item: 
‘‘Sec. 179C. Election to expense certain refineries.’’. 
(c) EFFECTIVE DATE.— The amendments made by 
this section shall apply to properties placed in service after 
the date of the enactment of this Act. 
SEC. 1513. PASS THROUGH TO OWNERS OF DEDUCTION FOR 
CAPITAL COSTS INCURRED BY SMALL RE-
FINER COOPERATIVES IN COMPLYING WITH 
ENVIRONMENTAL PROTECTION AGENCY SUL-
FUR REGULATIONS. 
(a) IN GENERAL.—Section 179B (relating to deduc-
tion for capital costs incurred in complying with Environ-
mental Protection Agency sulfur regulations) is amended 
by adding at the end the following new subsection: 
‘‘(e) ELECTION TO ALLOCATE DEDUCTION TO COOP-
ERATIVE OWNER.—If— 
‘‘(1) a small business refiner to which subsection 
(a) applies is an organization to which part I of sub-
chapter T applies, and
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‘‘(2) one or more persons directly holding an 
ownership interest in the refiner are organizations to 
which part I of subchapter T apply, 
the refiner may elect to allocate all or a portion of the de-
duction allowable under subsection (a) to such persons. 
Such allocation shall be equal to the person’s ratable share 
of the total amount allocated, determined on the basis of 
the person’s ownership interest in the taxpayer. The taxable 
income of the refiner shall not be reduced under section 
1382 by reason of any amount to which the preceding sen-
tence applies.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall take effect as if included in the amendment 
made by section 338(a) of the American Jobs Creation Act 
of 2004. 
SEC. 1514. MODIFICATIONS TO ENHANCED OIL RECOVERY 
CREDIT. 
(a) ENHANCED CREDIT FOR CARBON DIOXIDE INJEC-
TIONS.—Section 43 is amended by adding at the end the 
following new subsection: 
‘‘(f) ENHANCED CREDIT FOR PROJECTS USING QUALI-
FIED CARBON DIOXIDE.— 
‘‘(1) IN GENERAL.—In the case of any qualified 
enhanced oil recovery project described in paragraph
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(2), subsection (a) shall be applied by substituting ‘20 
percent’ for ‘15 percent’. 
‘‘(2) SPECIFIED QUALIFIED ENHANCED OIL RE-
COVERY PROJECT.— 
‘‘(A) IN GENERAL.—A qualified enhanced 
oil recovery project is described in this para-
graph if— 
‘‘(i) the project begins or is substan-
tially expanded after December 31, 2005, 
and 
‘‘(ii) the project uses qualified carbon 
dioxide in an oil recovery method which in-
volves flooding or injection. 
‘‘(B) 
QUALIFIED
CARBON
DIOXIDE.—For 
purposes of this subsection, the term ‘qualified 
carbon dioxide’ means carbon dioxide that is— 
‘‘(i) from an industrial source, or 
‘‘(ii) separated from natural gas and 
natural gas liquids at a natural gas proc-
essing plant. 
‘‘(3) TERMINATION.—This subsection shall not 
apply to costs paid or incurred for any qualified en-
hanced oil recovery project after December 31, 2009.’’. 
(b) DEEP GAS WELL PROJECTS.—Section 43(c) is 
amended by adding at the end the following new paragraph:
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‘‘(6) APPLICATION
OF
SECTION
TO
QUALIFIED 
DEEP GAS WELL PROJECTS.— 
‘‘(A) IN
GENERAL.—For purposes of this 
section, the taxpayer’s qualified deep gas well 
project costs for any taxable year shall be treated 
in the same manner as if they were qualified en-
hanced oil recovery costs. 
‘‘(B) QUALIFIED DEEP GAS WELL PROJECT 
COSTS.—For purposes of this paragraph, the 
term ‘qualified deep gas well project costs’ shall 
be the costs determined under paragraph (1) by 
substituting ‘qualified deep gas well project’ for 
‘qualified enhanced oil recovery project’ each 
place it appears. 
‘‘(C) 
QUALIFIED
DEEP
GAS
WELL 
PROJECT.—For purposes of this paragraph, the 
term ‘qualified deep gas well project’ means any 
project— 
‘‘(i) which involves the production of 
natural gas from onshore formations deeper 
than 20,000 feet, and 
‘‘(ii) which is located in the United 
States.
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‘‘(D) TERMINATION.—This paragraph shall 
not apply to qualified deep gas well project costs 
paid or incurred after December 31, 2009.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to costs paid or incurred in taxable 
years ending after December 31, 2005. 
SEC. 1515. NATURAL GAS DISTRIBUTION LINES TREATED AS 
15-YEAR PROPERTY. 
(a) IN GENERAL.—Section 168(e)(3)(E) (defining 15- 
year property) is amended by striking ‘‘and’’ at the end 
of clause (v), by striking the period at the end of clause 
(vi) and by inserting ‘‘, and’’, and by adding at the end 
the following new clause: 
‘‘(vii) any natural gas distribution 
line the original use of which commences 
with the taxpayer and which is placed in 
service before January 1, 2008.’’. 
(b) ALTERNATIVE SYSTEM.—The table contained in 
section 168(g)(3)(B) (relating to special rule for certain 
property assigned to classes) is amended by adding after 
the item relating to subparagraph (E)(vi) the following new 
item: 
‘‘(E)(vii) ............................................................................................................
35’’. 
(c) EFFECTIVE DATE.—
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(1) IN
GENERAL.—The amendments made by 
this section shall apply to property placed in service 
after the date of the enactment of this Act. 
(2) EXCEPTION.—The amendments made by this 
section shall not apply to any property with respect 
to which the taxpayer or a related party has entered 
into a binding contract for the construction thereof on 
or before June 14, 2005, or, in the case of self-con-
structed property, has started construction on or be-
fore such date. 
Subtitle C—Conservation and 
Energy Efficiency Provisions 
SEC. 1521. ENERGY EFFICIENT COMMERCIAL BUILDINGS 
DEDUCTION. 
(a) IN GENERAL.—Part VI of subchapter B of chapter 
1 (relating to itemized deductions for individuals and cor-
porations), as amended by this Act, is amended by inserting 
after section 179C the following new section: 
‘‘SEC. 179D. ENERGY EFFICIENT COMMERCIAL BUILDINGS 
DEDUCTION. 
‘‘(a) IN GENERAL.—There shall be allowed as a deduc-
tion an amount equal to the cost of energy efficient commer-
cial building property placed in service during the taxable 
year.
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‘‘(b) MAXIMUM AMOUNT OF DEDUCTION.—The deduc-
tion under subsection (a) with respect to any building for 
any taxable year shall not exceed the excess (if any) of— 
‘‘(1) the product of— 
‘‘(A) $2.25, and 
‘‘(B) the square footage of the building, over 
‘‘(2) the aggregate amount of the deductions 
under subsection (a) with respect to the building for 
all prior taxable years. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) ENERGY EFFICIENT COMMERCIAL BUILDING 
PROPERTY.—The term ‘energy efficient commercial 
building property’ means property— 
‘‘(A) with respect to which depreciation (or 
amortization in lieu of depreciation) is allow-
able, 
‘‘(B) which is installed on or in any build-
ing which is— 
‘‘(i) located in the United States, and 
‘‘(ii) within the scope of Standard 
90.1–2001, 
‘‘(C) which is installed as part of— 
‘‘(i) the interior lighting systems, 
‘‘(ii) the heating, cooling, ventilation, 
and hot water systems, or