H. R. 6—434
‘‘(1) LIFETIME LIMITATION.—The credit allowed under this 
section with respect to any taxpayer for any taxable year shall 
not exceed the excess (if any) of $500 over the aggregate credits 
allowed under this section with respect to such taxpayer for 
all prior taxable years. 
‘‘(2) WINDOWS.—In the case of amounts paid or incurred 
for components described in subsection (c)(3)(B) by any taxpayer 
for any taxable year, the credit allowed under this section 
with respect to such amounts for such year shall not exceed 
the excess (if any) of $200 over the aggregate credits allowed 
under this section with respect to such amounts for all prior 
taxable years. 
‘‘(3) 
LIMITATION
ON
RESIDENTIAL
ENERGY
PROPERTY 
EXPENDITURES.—The amount of the credit allowed under this 
section by reason of subsection (a)(2) shall not exceed— 
‘‘(A) $50 for any advanced main air circulating fan, 
‘‘(B) $150 for any qualified natural gas, propane, or 
oil furnace or hot water boiler, and 
‘‘(C) $300 for any item of energy-efficient building prop-
erty. 
‘‘(c) QUALIFIED ENERGY EFFICIENCY IMPROVEMENTS.—For pur-
poses of this section— 
‘‘(1) IN
GENERAL.—The term ‘qualified energy efficiency 
improvements’ means any energy efficient building envelope 
component which meets the prescriptive criteria for such compo-
nent established by the 2000 International Energy Conservation 
Code, as such Code (including supplements) is in effect on 
the date of the enactment of this section (or, in the case of 
a metal roof with appropriate pigmented coatings which meet 
the Energy Star program requirements), if— 
‘‘(A) such component is installed in or on a dwelling 
unit located in the United States and owned and used 
by the taxpayer as the taxpayer’s principal residence 
(within the meaning of section 121), 
‘‘(B) the original use of such component commences 
with the taxpayer, and 
‘‘(C) such component reasonably can be expected to 
remain in use for at least 5 years. 
‘‘(2) BUILDING ENVELOPE COMPONENT.—The term ‘building 
envelope component’ means— 
‘‘(A) any insulation material or system which is specifi-
cally and primarily designed to reduce the heat loss or 
gain of a dwelling unit when installed in or on such 
dwelling unit, 
‘‘(B) exterior windows (including skylights), 
‘‘(C) exterior doors, and 
‘‘(D) any metal roof installed on a dwelling unit, but 
only if such roof has appropriate pigmented coatings which 
are specifically and primarily designed to reduce the heat 
gain of such dwelling unit. 
‘‘(3) MANUFACTURED HOMES INCLUDED.—The term ‘dwelling 
unit’ includes a manufactured home which conforms to Federal 
Manufactured Home Construction and Safety Standards (sec-
tion 3280 of title 24, Code of Federal Regulations). 
‘‘(d) RESIDENTIAL ENERGY PROPERTY EXPENDITURES.—For pur-
poses of this section—
H. R. 6—435
‘‘(1) IN GENERAL.—The term ‘residential energy property 
expenditures’ means expenditures made by the taxpayer for 
qualified energy property which is— 
‘‘(A) installed on or in connection with a dwelling unit 
located in the United States and owned and used by the 
taxpayer as the taxpayer’s principal residence (within the 
meaning of section 121), and 
‘‘(B) originally placed in service by the taxpayer. 
Such term includes expenditures for labor costs properly allo-
cable to the onsite preparation, assembly, or original installa-
tion of the property. 
‘‘(2) QUALIFIED ENERGY PROPERTY.— 
‘‘(A) IN GENERAL.—The term ‘qualified energy property’ 
means— 
‘‘(i) energy-efficient building property, 
‘‘(ii) a qualified natural gas, propane, or oil furnace 
or hot water boiler, or 
‘‘(iii) an advanced main air circulating fan. 
‘‘(B) PERFORMANCE AND QUALITY STANDARDS.—Property 
described under subparagraph (A) shall meet the perform-
ance and quality standards, and the certification require-
ments (if any), which— 
‘‘(i) have been prescribed by the Secretary by regu-
lations (after consultation with the Secretary of Energy 
or the Administrator of the Environmental Protection 
Agency, as appropriate), and 
‘‘(ii) are in effect at the time of the acquisition 
of the property, or at the time of the completion of 
the construction, reconstruction, or erection of the prop-
erty, as the case may be. 
‘‘(C) REQUIREMENTS FOR STANDARDS.—The standards 
and requirements prescribed by the Secretary under 
subparagraph (B)— 
‘‘(i) in the case of the energy efficiency ratio (EER) 
for central air conditioners and electric heat pumps— 
‘‘(I) shall require measurements to be based 
on published data which is tested by manufactur-
ers at 95 degrees Fahrenheit, and 
‘‘(II) may be based on the certified data of 
the Air Conditioning and Refrigeration Institute 
that are prepared in partnership with the Consor-
tium for Energy Efficiency, and 
‘‘(ii) in the case of geothermal heat pumps— 
‘‘(I) shall be based on testing under the condi-
tions of ARI/ISO Standard 13256–1 for Water 
Source Heat Pumps or ARI 870 for Direct Expan-
sion GeoExchange Heat Pumps (DX), as appro-
priate, and 
‘‘(II) shall include evidence that water heating 
services 
have 
been 
provided 
through 
a 
desuperheater or integrated water heating system 
connected to the storage water heater tank. 
‘‘(3) ENERGY-EFFICIENT
BUILDING
PROPERTY.—The term 
‘energy-efficient building property’ means— 
‘‘(A) an electric heat pump water heater which yields 
an energy factor of at least 2.0 in the standard Department 
of Energy test procedure,