I
106TH CONGRESS
2D SESSION
H. R. 4977
To amend the Internal Revenue Code of 1986 to provide a credit against
tax for energy efficient appliances.
IN THE HOUSE OF REPRESENTATIVES
JULY 26, 2000
Mr. NUSSLE (for himself, Mr. TANNER, Mr. CAMP, Mr. MATSUI, Mr. CARDIN,
Mr. LEWIS of Georgia, Mr. BOSWELL, Mr. GANSKE, Mr. GILLMOR, Mr.
HUTCHINSON, Mr. LATHAM, Mr. LEACH, Mr. MARKEY, Mr. REGULA, Mr.
SNYDER, and Mr. UPTON) introduced the following bill; which was re-
ferred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to provide
a credit against tax for energy efficient appliances.
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’’.
SEC. 2. TAX 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. 45D. ENERGY EFFICIENT APPLIANCE CREDIT.
‘‘(a) GENERAL RULE.—For purposes of section 38,
the energy efficient appliance credit determined under this
section for the taxable year is an amount equal to the ap-
plicable amount determined under subsection (b) with re-
spect to qualified energy efficient appliances produced by
the taxpayer during the calendar year ending with or with-
in the taxable year.
‘‘(b) APPLICABLE AMOUNT.—For purposes of sub-
section (a), the applicable amount determined under this
subsection with respect to a taxpayer is the sum of—
‘‘(1) in the case of an energy efficient clothes
washer described in subsection (d)(2)(A) or an en-
ergy efficient refrigerator described in subsection
(d)(3)(B)(i), an amount equal to—
‘‘(A) $50, multiplied by
‘‘(B) the number of such washers and re-
frigerators produced by the taxpayer during
such calendar year, and
‘‘(2) in the case of an energy efficient clothes
washer described in subsection (d)(2)(B) or an en-
ergy efficient refrigerator described in subsection
(d)(3)(B)(ii), an amount equal to—
‘‘(A) $100, multiplied by
‘‘(B) the number of such washers and re-
frigerators produced by the taxpayer during
such calendar year.
‘‘(c) LIMITATION ON MAXIMUM CREDIT.—
‘‘(1) IN GENERAL.—The maximum amount of
credit allowed under subsection (a) with respect to
a taxpayer for all taxable years shall be—
‘‘(A) $30,000,000 with respect to the cred-
it determined under subsection (b)(1), and
‘‘(B) $30,000,000 with respect to the cred-
it determined under subsection (b)(2).
‘‘(2) 
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.
‘‘(3) GROSS RECEIPTS.—For purposes of this
subsection, the rules of paragraphs (2) and (3) of
section 448(c) shall apply.
‘‘(d) QUALIFIED ENERGY EFFICIENT APPLIANCE.—
For purposes of this section—
‘‘(1) IN GENERAL.—The term ‘qualified energy
efficient appliance’ means—
‘‘(A) an energy efficient clothes washer, or
‘‘(B) an energy efficient refrigerator.
‘‘(2) ENERGY EFFICIENT CLOTHES WASHER.—
The term ‘energy efficient clothes washer’ means a
residential clothes washer, including a residential
style coin operated washer, which is manufactured
with—
‘‘(A) a 1.26 Modified Energy Factor (re-
ferred to in this paragraph as ‘MEF’) (as de-
termined by the Secretary of Energy), or
‘‘(B) a 1.42 MEF (as determined by the
Secretary of Energy) (1.5 MEF for calendar
years beginning after 2004).
‘‘(3) ENERGY EFFICIENT REFRIGERATOR.—The
term ‘energy efficient refrigerator’ means an auto-
matic defrost refrigerator-freezer which—
‘‘(A) has an internal volume of at least
16.5 cubic feet, and
‘‘(B) consumes—
‘‘(i) 10 percent less kw/hr/yr than the
energy conservation standards promulgated
by the Department of Energy for such re-
frigerator for 2001, or
‘‘(ii) 15 percent less kw/hr/yr than
such energy conservation standards.
‘‘(e) SPECIAL RULES.—
‘‘(1) IN GENERAL.—Rules similar to the rules
of subsections (c), (d), and (e) of section 52 shall
apply for purposes of this section.
‘‘(2) AGGREGATION RULES.—All persons treat-
ed as a single employer under subsection (a) or (b)
of section 52 or subsection (m) or (o) of section 414
shall be treated as one person for purposes of sub-
section (a).
‘‘(f) VERIFICATION.—The taxpayer shall submit such
information or certification as the Secretary, in consulta-
tion with the Secretary of Energy, determines necessary
to claim the credit amount under subsection (a).
‘‘(g) TERMINATION.—This section shall not apply—
‘‘(1) with respect to energy efficient refrig-
erators described in subsection (d)(3)(B)(i) produced
in calendar years beginning after 2004, and
‘‘(2) with respect to all other qualified energy
efficient appliances produced in calendar years be-
ginning after 2006.’’.
(b) LIMITATION ON CARRYBACK.—Section 39(d) of
the Internal Revenue Code of 1986 (relating to transition
rules) is amended by adding at the end the following new
paragraph:
‘‘(9) NO
CARRYBACK
OF
ENERGY
EFFICIENT
APPLIANCE CREDIT BEFORE EFFECTIVE DATE.—No
portion of the unused business credit for any taxable
year which is attributable to the energy efficient ap-
pliance credit determined under section 45D may be
carried to a taxable year ending before the date of
the enactment of section 45D.’’.
(c) 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 (11), by striking the period at the end of
paragraph (12) and inserting ‘‘, plus’’, and by adding at
the end the following new paragraph:
‘‘(13) the energy efficient appliance credit de-
termined under section 45D(a).’’.
(d) 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 in-
serting after the item relating to section 45C the following
new item:
‘‘Sec. 45D. Energy efficient appliance credit.’’.
(e) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2000.
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