Sec. 1. Short title; table of contents. 
Sec. 2. Findings. 
TITLE I—CLEAN ENERGY VICTORY BONDS 
Sec. 101. Clean Energy Victory Bonds. 
TITLE II—REVENUE PROVISIONS 
Sec. 201. Extension and modification of energy investment tax credit. 
Sec. 202. Extension of residential energy efficient property credit. 
Sec. 203. Extension and modification of credit for electricity produced from 
certain renewable resources. 
Sec. 204. Extension of credit for nonbusiness energy property. 
Sec. 205. Performance based home energy improvements. 
Sec. 206. Extension of new energy efficient home credit. 
Sec. 207. Extension and modification of energy efficient commercial buildings 
deduction. 
Sec. 208. Plug-in electric vehicle grants in lieu of tax credits. 
SEC. 2. FINDINGS. 
Congress finds the following: 
(1) There is enormous potential for increasing 
renewable energy production and energy efficiency 
installation in the United States. 
(2) A major barrier to rapid expansion of re-
newable energy and energy efficiency is upfront cap-
ital costs. Government tax incentives and other as-
sistance programs have proven beneficial in encour-
aging private sector development, manufacturing 
and installation of renewable energy and energy effi-
ciency projects nationwide. However, these govern-
ment incentives are not currently meeting demand 
from the private sector, and we are not taking full 
advantage of the potential for clean energy and 
transportation, as well as energy efficiency in the 
United States. 
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(3) Other nations, including China and Ger-
many are ahead of the United States in manufac-
turing and deploying various clean energy tech-
nologies, even though the United States invented 
many of these technologies. 
(4) Investments in renewable energy and energy 
efficiency projects in the United States create green 
jobs for U.S. citizens across the United States. Hun-
dreds of thousands of jobs could be created through 
expanded government support for clean energy and 
energy efficiency. 
(5) As Americans choose energy efficiency and 
clean energy and transportation, it reduces our de-
pendence on foreign oil and improves our energy se-
curity. 
(6) Bonds are a low-cost method for encour-
aging clean energy, not requiring direct budget allo-
cations or expenditures. The projects supported 
through Clean Energy Victory Bonds will create jobs 
and business revenues that will increase Federal tax 
revenues, while simultaneously reducing health and 
environmental costs incurred by the Federal Govern-
ment nationwide. 
(7) In World War II, over 80 percent of Amer-
ican households purchased Victory Bonds to support 
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the war effort, raising over $185 billion, or over $2 
trillion in today’s dollars. 
TITLE I—CLEAN ENERGY 
VICTORY BONDS 
SEC. 101. CLEAN ENERGY VICTORY BONDS. 
(a) INITIAL CAPITALIZATION.—The Secretary of the 
Treasury shall issue Clean Energy Victory Bonds in an 
amount not to exceed $7,500,000,000 on the credit of the 
United States for purposes of raising revenue for the ex-
tension of certain energy-related tax benefits extended by 
this Act. 
(b) DENOMINATIONS AND MATURITY.—Clean Energy 
Victory Bonds shall be in the form of United States Sav-
ings Bonds of Series EE or as administered by the Bureau 
of the Public Debt of the Department of the Treasury in 
denominations of $25, and shall mature within such peri-
ods as determined by the Secretary of the Treasury. 
(c) INTEREST.—Clean Energy Victory Bonds shall 
bear interest at the rate the Secretary of the Treasury 
sets for Savings Bonds of Series EE and Series I, plus 
a rate of return determined by the Secretary of the Treas-
ury which is based on the valuation of carbon mitigated 
or energy saved through funded projects funded from the 
proceeds of such bonds. 
(d) PROMOTION.— 
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(1) IN GENERAL.—The Secretary of the Treas-
ury shall take such actions, independently and in 
conjunction with financial institutions offering Clean 
Energy Victory Bonds, to promote the purchase of 
Clean Energy Victory Bonds, including campaigns 
describing the financial and social benefits of pur-
chasing Clean Energy Victory Bonds. 
(2) 
PROMOTIONAL
ACTIVITIES.—Such 
pro-
motional activities may include advertisements, pam-
phlets, or other promotional materials— 
(A) in periodicals; 
(B) on billboards and other outdoor 
venues; 
(C) on television; 
(D) on radio; 
(E) on the Internet; 
(F) within financial institutions that offer 
Clean Energy Victory Bonds; or 
(G) any other venues or outlets the Sec-
retary of the Treasury may identify. 
(3) LIMITATION.—There are authorized to be 
appropriated for such promotional activities not 
more than— 
(A) $10,000,000 in the first year after the 
date of the enactment of this Act, and 
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(B) $2,000,000 in each year thereafter. 
(e) FUTURE CAPITALIZATION.— 
(1) IN GENERAL.—After the initial capitaliza-
tion limit is reached under subsection (a), the Sec-
retary of the Treasury may issue additional Clean 
Energy Victory Bonds on the credit of the United 
States. 
(2) SINGLE ISSUE LIMITATION.—No such addi-
tional issue may exceed $7,500,000,000. 
(3) AGGREGATE LIMITATIONS.—The aggregate 
of any such additional issues during the 4-year pe-
riod beginning on the day after the initial capitaliza-
tion limit is reached under subsection (a) may not 
exceed $50,000,000,000. The aggregate of any such 
additional issues after the expiration of such 4-year 
period may not exceed $50,000,000,000. 
(f) LAWFUL INVESTMENTS.—Clean Energy Victory 
Bonds shall be lawful investments, and may be accepted 
as security for all fiduciary, trust, and public funds, the 
investment or deposit of which shall be under the author-
ity or control of the United States or any officer or officers 
thereof. 
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TITLE II—REVENUE PROVISIONS 
SEC. 201. EXTENSION AND MODIFICATION OF ENERGY IN-
VESTMENT TAX CREDIT. 
(a) EXTENSION.— 
(1) SOLAR ENERGY.—Paragraphs (2)(A)(i)(II) 
and (3)(A)(ii) of section 48(a) of the Internal Rev-
enue Code of 1986 are each amended by striking 
‘‘January 1, 2017’’ and inserting ‘‘January 1, 
2023’’. 
(2) GEOTHERMAL HEAT PUMPS.—Clause (vii) 
of section 48(a)(3)(A) of such Code is amended by 
striking ‘‘January 1, 2017’’ and inserting ‘‘January 
1, 2023’’. 
(3) FUEL CELL PROPERTY.—Subparagraph (D) 
of section 48(c)(1) of such Code is amended by 
striking ‘‘December 31, 2016’’ and inserting ‘‘De-
cember 31, 2022’’. 
(4) MICROTURBINE PROPERTY.—Subparagraph 
(D) of section 48(c)(2) of such Code is amended by 
striking ‘‘December 31, 2016’’ and inserting ‘‘De-
cember 31, 2022’’. 
(5) COMBINED HEAT AND POWER.—Clause (iv) 
of section 48(c)(3) of such Code is amended by 
striking ‘‘January 1, 2017’’ and inserting ‘‘January 
1, 2023’’. 
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(6) SMALL WIND.—Subparagraph (C) of section 
48(c)(4) of such Code is amended by striking ‘‘De-
cember 31, 2016’’ and inserting ‘‘December 31, 
2022’’. 
(7) OFFSHORE WIND.— 
(A) IN GENERAL.—Clause (ii) of section 
48(a)(5)(C) of such Code is amended— 
(i) by striking ‘‘is placed in service in’’ 
and inserting the following: ‘‘is— 
‘‘(I) except as provided in sub-
clause (II), placed in service in’’, 
(ii) by adding at the end the following 
new subclause: 
‘‘(II) in the case of an offshore 
wind facility, placed in service after 
December 31, 2008, and before Janu-
ary 1, 2021, and’’. 
(B) OFFSHORE
WIND
FACILITY.—Para-
graph (5) of section 48(a) of such Code is 
amended by adding at the end the following 
new subparagraph: 
‘‘(E) OFFSHORE
WIND
FACILITY.—The 
term ‘offshore wind facility’ means any quali-
fied facility described in section 45(d)(1) and 
located in the inland navigable waters of the 
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United States, including the Great Lakes, or in 
the coastal waters of the United States, includ-
ing the territorial seas of the United States, the 
exclusive economic zone of the United States, 
and the outer Continental Shelf of the United 
States.’’. 
(b) MODIFICATION
OF FUEL CELL PROPERTY.— 
Paragraph (1) of section 48(c) of such Code, as amended 
by this Act, is amended by redesignating subparagraph 
(D) as subparagraph (E) and by inserting after subpara-
graph (C) the following new subparagraph: 
‘‘(D) EXCEPTION
FOR
FUEL
DERIVED 
FROM FOSSIL FUELS.—The term ‘qualified fuel 
cell powerplant’ shall not include any fuel cell 
powerplant the fuel of which is derived from, or 
is produced by using, any fossil fuel.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act. 
SEC. 202. EXTENSION OF RESIDENTIAL ENERGY EFFICIENT 
PROPERTY CREDIT. 
(a) IN GENERAL.—Subsection (g) of section 25D of 
the Internal Revenue Code of 1986 is amended by striking 
‘‘December 31, 2016’’ and inserting ‘‘December 31, 
2023’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2016. 
SEC. 203. EXTENSION AND MODIFICATION OF CREDIT FOR 
ELECTRICITY PRODUCED FROM CERTAIN RE-
NEWABLE RESOURCES. 
(a) EXTENSION.—Subsection (d) of section 45 of the 
Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘January 1, 2013’’ in paragraph 
(1) and inserting ‘‘January 1, 2023’’, 
(2) by striking ‘‘January 1, 2014’’ each place 
it appears in paragraphs (2), (3), (4), (9), and (11) 
and inserting ‘‘January 1, 2023’’, and 
(3) by striking ‘‘January 1, 2006’’ in paragraph 
(4) and inserting ‘‘January 1, 2023’’. 
(b) MODIFICATIONS WITH RESPECT
TO CLOSED- 
LOOP BIOMASS.— 
(1) IN
GENERAL.—Paragraph (2) of section 
45(c) of such Code is amended to read as follows: 
‘‘(2) CLOSED-LOOP BIOMASS.— 
‘‘(A) IN GENERAL.—The term ‘closed-loop 
biomass’ means any organic matter from a 
plant which— 
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‘‘(i) is planted exclusively for purposes 
of being used at a qualified facility to 
produce electricity, or 
‘‘(ii) is a byproduct from harvesting 
timber (including tops, branches, crooks) 
or is invasive woody vegetation that inter-
feres with regeneration or the natural 
growth of the forest from which timber is 
harvested. 
‘‘(B) LIMITATION.—For purposes of sub-
paragraph (A)(ii), byproduct from harvesting 
timber shall not be treated as closed-loop bio-
mass unless— 
‘‘(i) such byproduct does not exceed 
30 percent (by weight) of the harvested 
timber to which it relates, and 
‘‘(ii) the percentage byproduct re-
moved (by weight) does not exceed— 
‘‘(I) 25 percent in the case of 
timber harvested from good soil, and 
‘‘(II) 0 percent in the case of 
timber harvested from poor soil. 
For purposes of the preceding sentence, soil 
quality shall be determined by reference to soil 
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classifications by the Natural Resources Con-
servation Service.’’. 
(2) QUALIFIED
FACILITY.—Paragraph (2) of 
section 45(d) of such Code is amended by adding at 
the end the following new subparagraph: 
‘‘(D) GREENHOUSE
GAS
EMISSIONS.—In 
the case of a facility placed in service after De-
cember 31, 2014, such term shall not include 
any facility unless, with respect to the facility, 
the taxpayer annually during the 10-year period 
described in subsection (a) demonstrates to the 
satisfaction of the Secretary that such facility’s 
use of closed-loop biomass will result in a 50- 
percent reduction in greenhouse gas emissions 
compared to a similar facility using natural gas 
combined-cycle generation.’’. 
(c) MODIFICATION OF OPEN-LOOP BIOMASS DEFINI-
TION.—The second sentence of subparagraph (A) of sec-
tion 45(c)(3) of such Code is amended— 
(1) by striking ‘‘or biomass’’ and inserting ‘‘, 
biomass’’, and 
(2) by inserting before the period at the end the 
following: ‘‘, any biomass which is primarily a food 
crop, or biomass derived from any crop that dis-
places any forest existing on the date of the enact-
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ment of the Clean Energy Victory Bond Act of 
2014’’. 
(d) MODIFICATION OF BIOFUEL AS QUALIFIED EN-
ERGY RESOURCE.— 
(1) IN
GENERAL.—Paragraph (1) of section 
45(c) of such Code is amended by striking ‘‘and’’ at 
the end of subparagraph (H), by striking the period 
at the end of subparagraph (I) and inserting ‘‘, 
and’’, and by adding at the end the following new 
subparagraph: 
‘‘(J) second generation biomass.’’. 
(2) SECOND GENERATION BIOMASS DEFINED.— 
Subsection (c) of section 45 of such Code is amend-
ed by adding at the end the following new para-
graph: 
‘‘(11) SECOND
GENERATION
BIOMASS.—The 
term ‘second generation biomass’ means any bio-
mass which is composed of lignocellulosic or 
hemicellulosic matter that is available on a renew-
able or recurring basis and that does not replace for-
ested land (other than any fuel described in section 
40(b)(6)(E)(iii)).’’. 
(3) QUALIFIED
FACILITY.—Subsection (d) of 
section 45 of such Code is amended by adding at the 
end the following new paragraph: 
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‘‘(12) SECOND GENERATION BIOMASS.—In the 
case of a facility producing electricity from second 
generation biomass, the term ‘qualified facility’ 
means any facility owned by the taxpayer which is 
originally placed in service on or after the date of 
the enactment of this paragraph and before January 
1, 2023.’’. 
(4) CONFORMING AMENDMENTS.— 
(A) Subsection (d) of section 45 of such 
Code is amended by striking ‘‘January 1, 
2014’’ each place it appears in paragraphs 
(2)(A)(i), (3), (6), and (7) and inserting ‘‘the 
date of the enactment of the Clean Energy Vic-
tory Bond Act of 2014’’. 
(B) Clause (ii) of section 45(d)(2)(A) of 
such Code is amended by striking ‘‘January 1, 
2014,’’ and inserting ‘‘the date of the enact-
ment of the Clean Energy Victory Bond Act of 
2014’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act. 
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SEC. 204. EXTENSION OF CREDIT FOR NONBUSINESS EN-
ERGY PROPERTY. 
(a) IN GENERAL.—Paragraph (2) of section 25C(g) 
of the Internal Revenue Code of 1986 is amended by strik-
ing ‘‘December 31, 2013’’ and inserting ‘‘December 31, 
2022’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to property placed in service after 
December 31, 2013. 
SEC. 205. PERFORMANCE BASED HOME ENERGY IMPROVE-
MENTS. 
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 is amended by adding at the end 
the following new section: 
‘‘SEC. 
25E. 
PERFORMANCE 
BASED 
ENERGY 
IMPROVE-
MENTS. 
‘‘(a) IN GENERAL.—In the case of an individual, 
there shall be allowed as a credit against the tax imposed 
by this chapter for the taxable year for a qualified whole 
home energy efficiency retrofit an amount determined 
under subsection (b). 
‘‘(b) AMOUNT DETERMINED.— 
‘‘(1) IN GENERAL.—Subject to paragraph (4), 
the amount determined under this subsection is 
equal to— 
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‘‘(A) the base amount under paragraph 
(2), increased by 
‘‘(B) the amount determined under para-
graph (3). 
‘‘(2) BASE
AMOUNT.—For purposes of para-
graph (1)(A), the base amount is $2,000, but only 
if the energy use for the residence is reduced by at 
least 20 percent below the baseline energy use for 
such residence as calculated according to paragraph 
(5). 
‘‘(3) INCREASE
AMOUNT.—For purposes of 
paragraph (1)(B), the amount determined under this 
paragraph is $500 for each additional 5 percentage 
point reduction in energy use. 
‘‘(4) LIMITATION.—In no event shall the 
amount determined under this subsection exceed the 
lesser of— 
‘‘(A) $5,000 with respect to any residence, 
or 
‘‘(B) 30 percent of the qualified home en-
ergy efficiency expenditures paid or incurred by 
the taxpayer under subsection (c) with respect 
to such residence. 
‘‘(5) DETERMINATION OF ENERGY USE REDUC-
TION.—For purposes of this subsection— 
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‘‘(A) IN GENERAL.—The reduction in en-
ergy use for any residence shall be determined 
by modeling the annual predicted percentage re-
duction in total energy costs for heating, cool-
ing, hot water, and permanent lighting. It shall 
be modeled using computer modeling software 
approved under subsection (d)(2) and a baseline 
energy use calculated according to subsection 
(d)(1)(C). 
‘‘(B) ENERGY
COSTS.—For purposes of 
subparagraph (A), the energy cost per unit of 
fuel for each fuel type shall be determined by 
dividing the total actual energy bill for the resi-
dence for that fuel type for the most recent 
available 12-month period by the total energy 
units of that fuel type used over the same pe-
riod. 
‘‘(c) QUALIFIED HOME ENERGY EFFICIENCY EX-
PENDITURES.—For purposes of this section, the term 
‘qualified home energy efficiency expenditures’— 
‘‘(1) means any amount paid or incurred by the 
taxpayer during the taxable year for a qualified 
whole home energy efficiency retrofit, including the 
cost of diagnostic procedures, labor, and modeling, 
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‘‘(2) includes only measures that have an aver-
age estimated life of 5 years or more as determined 
by the Secretary, after consultation with the Sec-
retary of Energy, 
‘‘(3) does not include any amount which is paid 
or incurred in connection with any expansion of the 
building envelope of the residence, and 
‘‘(4) does not include improvements to swim-
ming pools or hot tubs or any other expenditure spe-
cifically excluded by the Secretary, after consultation 
with the Secretary of Energy. 
‘‘(d) QUALIFIED WHOLE HOME ENERGY EFFI-
CIENCY RETROFIT.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified whole 
home energy efficiency retrofit’ means the implemen-
tation of measures placed in service during the tax-
able year intended to reduce the energy use of the 
principal residence of the taxpayer which is located 
in the United States. A qualified whole home energy 
efficiency retrofit shall— 
‘‘(A) be designed, implemented, and in-
stalled by a contractor which is— 
‘‘(i) accredited by the Building Per-
formance Institute (hereafter in this sec-
tion referred to as ‘BPI’) or a preexisting 
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BPI accreditation-based State certification 
program with enhancements to achieve 
State energy policy, 
‘‘(ii) a Residential Energy Services 
Network (hereafter in this section referred 
to as ‘RESNET’) accredited Energy Smart 
Home Performance Team, or 
‘‘(iii) accredited by an equivalent cer-
tification program approved by the Sec-
retary, after consultation with the Sec-
retary of Energy, for this purpose, 
‘‘(B) install a set of measures modeled to 
achieve a reduction in energy use of at least 20 
percent below the baseline energy use estab-
lished in subparagraph (C), using computer 
modeling software approved under paragraph 
(2), 
‘‘(C) establish the baseline energy use by 
calibrating the model using sections 3 and 4 
and Annex D of BPI Standard BPI–2400–S– 
2011: Standardized Qualification of Whole 
House Energy Savings Estimates, or an equiva-
lent standard approved by the Secretary, after 
consultation with the Secretary of Energy, for 
this purpose, 
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‘‘(D) document the measures implemented 
in the residence through photographs taken be-
fore and after the retrofit, including photo-
graphs of its visible energy systems and enve-
lope as relevant, and 
‘‘(E) implement a test-out procedure, fol-
lowing guidelines of the applicable certification 
program specified under clause (i) or (ii) of 
subparagraph (A), or equivalent guidelines ap-
proved by the Secretary, after consultation with 
the Secretary of Energy, for this purpose, to 
ensure— 
‘‘(i) the safe operation of all systems 
post retrofit, and 
‘‘(ii) that all improvements are in-
cluded in, and have been installed accord-
ing to, standards of the applicable certifi-
cation program specified under clause (i) 
or (ii) of subparagraph (A), or equivalent 
standards approved by the Secretary, after 
consultation with the Secretary of Energy, 
for this purpose. 
For purposes of subparagraph (A)(iii), an orga-
nization or State may submit an equivalent cer-
tification program for approval by the Sec-
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retary, in consultation with the Secretary of 
Energy. The Secretary shall approve or deny 
such submission not later than 180 days after 
receipt, and, if the Secretary fails to respond in 
that time period, the submitted equivalent cer-
tification program shall be considered approved. 
‘‘(2) APPROVED
MODELING
SOFTWARE.—For 
purposes of paragraph (1)(B), the contractor shall 
use modeling software certified by RESNET as fol-
lowing the software verification test suites in section 
4.2.1 of RESNET Publication No. 06–001 or cer-
tified by an alternative organization as following an 
equivalent standard, as approved by the Secretary, 
after consultation with the Secretary of Energy, for 
this purpose. 
‘‘(3) DOCUMENTATION.—The Secretary, after 
consultation with the Secretary of Energy, shall pre-
scribe regulations directing what specific documenta-
tion is required to be retained or submitted by the 
taxpayer in order to claim the credit under this sec-
tion, which shall include, in addition to the photo-
graphs under paragraph (1)(D), a form approved by 
the Secretary that is completed and signed by the 
qualified whole home energy efficiency retrofit con-
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tractor under penalties of perjury. Such form shall 
include— 
‘‘(A) a statement that the contractor fol-
lowed the specified procedures for establishing 
baseline energy use and estimating reduction in 
energy use, 
‘‘(B) the name of the software used for 
calculating the baseline energy use and reduc-
tion in energy use, the percentage reduction in 
projected energy savings achieved, and a state-
ment that such software was certified for this 
program by the Secretary, after consultation 
with the Secretary of Energy, 
‘‘(C) a statement that the contractor will 
retain the details of the calculations and under-
lying energy bills for 5 years and will make 
such details available for inspection by the Sec-
retary or the Secretary of Energy, if so re-
quested, 
‘‘(D) a list of measures installed and a 
statement that all measures included in the re-
duction in energy use estimate are included in, 
and installed according to, standards of the ap-
plicable certification program specified under 
clause (i) or (ii) of subparagraph (A), or equiv-
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alent standards approved by the Secretary, 
after consultation with the Secretary of Energy, 
‘‘(E) a statement that the contractor meets 
the requirements of paragraph (1)(A), and 
‘‘(F) documentation of the total cost of the 
project in order to comply with the limitation 
under subsection (b)(4)(B). 
‘‘(e) ADDITIONAL RULES.—For purposes of this sec-
tion— 
‘‘(1) NO DOUBLE BENEFIT.— 
‘‘(A) IN GENERAL.—With respect to any 
residence, no credit shall be allowed under this 
section for any taxable year in which the tax-
payer claims a credit under section 25C. 
‘‘(B) RENEWABLE ENERGY SYSTEMS AND 
APPLIANCES.—In the case of a renewable en-
ergy system or appliance that qualifies for an-
other credit under this chapter, the resulting re-
duction in energy use shall not be taken into 
account in determining the percentage energy 
use reductions under subsection (b). 
‘‘(C) NO DOUBLE BENEFIT FOR CERTAIN 
EXPENDITURES.—The term ‘qualified home en-
ergy efficiency expenditures’ shall not include 
any expenditure for which a deduction or credit 
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is claimed by the taxpayer under this chapter 
for the taxable year or with respect to which 
the taxpayer receives any Federal energy effi-
ciency rebate. 
‘‘(2) PRINCIPAL RESIDENCE.—The term ‘prin-
cipal residence’ has the same meaning as when used 
in section 121. 
‘‘(3) SPECIAL
RULES.—Rules similar to the 
rules under paragraphs (4), (5), (6), (7), and (8) of 
section 25D(e) and section 25C(e)(2) shall apply, as 
determined by the Secretary, after consultation with 
the Secretary of Energy. 
‘‘(4) BASIS
ADJUSTMENTS.—For purposes of 
this subtitle, if a credit is allowed under this section 
with respect to any expenditure with respect to any 
property, the increase in the basis of such property 
which would (but for this paragraph) result from 
such expenditure shall be reduced by the amount of 
the credit so allowed. 
‘‘(5) ELECTION
NOT
TO
CLAIM
CREDIT.—No 
credit shall be determined under subsection (a) for 
the taxable year if the taxpayer elects not to have 
subsection (a) apply to such taxable year. 
‘‘(6) MULTIPLE YEAR RETROFITS.—If the tax-
payer has claimed a credit under this section in a 
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previous taxable year, the baseline energy use for the 
calculation of reduced energy use must be estab-
lished after the previous retrofit has been placed in 
service. 
‘‘(f) TERMINATION.—This section shall not apply 
with respect to any costs paid or incurred after December 
31, 2022. 
‘‘(g) SECRETARY REVIEW.—The Secretary, after con-
sultation with the Secretary of Energy, shall establish a 
review process for the retrofits performed, including an es-
timate of the usage of the credit and a statistically valid 
analysis of the average actual energy use reductions, uti-
lizing utility bill data collected on a voluntary basis, and 
report to Congress not later than June 30, 2016, any find-
ings and recommendations for— 
‘‘(1) improvements to the effectiveness of the 
credit under this section, and 
‘‘(2) expansion of the credit under this section 
to rental units.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 1016(a) is amended— 
(A) by striking ‘‘and’’ at the end of para-
graph (36), 
(B) by striking the period at the end of 
paragraph (37) and inserting ‘‘, and’’, and 
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(C) by adding at the end the following new 
paragraph: 
‘‘(38) to the extent provided in section 
25E(e)(4), in the case of amounts with respect to 
which a credit has been allowed under section 
25E.’’. 
(2) Section 6501(m) is amended by inserting 
‘‘25E(e)(5),’’ after ‘‘section’’. 
(3) The table of sections for subpart A of part 
IV of subchapter A chapter 1 is amended by insert-
ing after the item relating to section 25D the fol-
lowing new item: 
‘‘Sec. 25E. Performance based energy improvements.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred for 
a qualified whole home energy efficiency retrofit placed in 
service after December 31, 2013. 
SEC. 206. EXTENSION OF NEW ENERGY EFFICIENT HOME 
CREDIT. 
(a) IN GENERAL.—Subsection (g) of section 45L of 
the Internal Revenue Code of 1986 is amended by striking 
‘‘December 31, 2013’’ and inserting ‘‘December 31, 
2022’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to homes acquired after December 
31, 2013. 
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SEC. 207. EXTENSION AND MODIFICATION OF ENERGY EF-
FICIENT COMMERCIAL BUILDINGS DEDUC-
TION. 
(a) IN GENERAL.—Subsection (h) of section 179D of 
the Internal Revenue Code of 1986 is amended by striking 
‘‘December 31, 2013’’ and inserting ‘‘December 31, 
2022’’. 
(b) INCREASE IN DEDUCTION LIMITATIONS.— 
(1) IN GENERAL.—Subparagraph (A) of section 
179D(b)(1) of such Code is amended by striking 
‘‘$1.80’’ and inserting ‘‘$3.00’’. 
(2) PARTIAL PAY.—Subparagraph (A) of sec-
tion 179D(d)(1) is amended by striking ‘‘sub-
stituting ‘$.60’ for ‘$1.80’.’’ and inserting ‘‘sub-
stituting ‘$1.00’ for ‘$3.00’.’’. 
(3) REDUCED AMOUNT FOR LOWER EFFICIENCY 
PROPERTY.—Subsection (d) of section 179D of such 
Code is amended by adding at the end the following 
new paragraph: 
‘‘(1) 30 TO
PERCENT
PROPERTY.—In the 
case of property which would be energy efficient 
commercial 
building 
property 
were 
subsection 
(c)(1)(D) applied by substituting ‘more than 30 per-
cent and less than 50 percent’ for ‘50 percent or 
more’, subsection (b) shall be applied to such prop-
erty by substituting ‘$1.80’ for ‘$3.00’.’’. 
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(c) UPDATING
PARTIAL
ALLOWANCE
REGULA-
TIONS.—Subparagraph (B) of section 179D(d)(1) of such 
Code is amended by adding at the end the following: ‘‘Not 
later than 1 year after the date of the enactment of the 
Clean Energy Victory Bond Act of 2014, and every three 
years thereafter, the Secretary shall, after consultation 
with the Secretary of Energy, update the targets for such 
systems in such a manner as the Secretary determines will 
encourage innovation in commercial building energy effi-
ciency.’’. 
(d) EFFECTIVE DATE.—The amendment made by 
this section shall apply to property placed in service after 
December 31, 2013. 
SEC. 208. PLUG-IN ELECTRIC VEHICLE GRANTS IN LIEU OF 
TAX CREDITS. 
(a) IN GENERAL.—The Secretary of Energy, in con-
sultation with the Secretary of the Treasury, shall estab-
lish a voluntary program through which the Secretary of 
Energy shall— 
(1) authorize the issuance of an electronic 
voucher to offset the purchase price of a qualified 
plug-in electric vehicle or a new qualified plug-in 
electric drive motor vehicle purchased from a dealer 
participating in the program; 
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(2) register dealers for participation in the pro-
gram and require that all dealers so registered ac-
cept such vouchers as partial payment or down pay-
ment for the purchase of any such vehicle offered for 
sale by such dealer; 
(3) make electronic payments to dealers for eli-
gible transactions by such dealers; and 
(4) in consultation with the Inspector General 
of the Department of Transportation establish and 
provide for the enforcement of measures to prevent 
and penalize fraud under the program. 
(b) VOUCHER
LIMITATIONS.—A voucher issued 
under the program shall have a value that may be applied 
to offset the purchase price of a vehicle by— 
(1) in the case of a qualified plug-in electric ve-
hicle, $2,500; or 
(2) in the case of a new qualified plug-in elec-
tric drive motor vehicle, $2,500 plus an amount de-
termined with respect to the vehicle under section 
30D(b)(3) of the Internal Revenue Code of 1986. 
(c) TREATED AS ADVANCE PAYMENT OF CREDIT.— 
Use of a voucher under the program to offset the purchase 
price of a vehicle shall, for purposes of the Internal Rev-
enue Code of 1986, be treated as advance payment of the 
credit allowed under section 30 or 30D of such Code, as 
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the case may be, and the amount of credit which would 
(but for this paragraph) be allowable with respect to such 
vehicle under either such section shall be reduced (but not 
below zero) by the amount of the voucher so used. 
(d) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section— 
(1) QUALIFIED PLUG-IN ELECTRIC VEHICLE.— 
The term ‘‘qualified plug-in electric vehicle’’ shall 
have the meaning given such term by section 30(d) 
of the Internal Revenue Code of 1986. 
(2) NEW QUALIFIED PLUG-IN ELECTRIC DRIVE 
MOTOR VEHICLE.—The term ‘‘new qualified plug-in 
electric drive motor vehicle’’ shall have the meaning 
given such term by section 30D(d) of such Code. 
(3) NO COMBINATION OF VOUCHERS.—Only 1 
voucher issued under the program may be applied 
toward the purchase of a single vehicle. 
(4) COMBINATION
WITH
OTHER
INCENTIVES 
PERMITTED.—The availability or use of a Federal, 
State, or local incentive or a State-issued voucher 
for the purchase of any vehicle shall not limit the 
value or issuance of a voucher under the program to 
any person otherwise eligible to receive such a 
voucher. 
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(5) NO ADDITIONAL FEES.—A dealer partici-
pating in the program may not charge a person pur-
chasing a vehicle any additional fees associated with 
the use of a voucher under the program. 
(6) APPLICATION OF CERTAIN RULES.—Rules 
similar to the rules of paragraphs (1), (2), (3), (4), 
and (5) of section 30(e) of such Code shall apply for 
purposes of this section. 
(e) TERMINATION AND PHASEOUT.— 
(1) TERMINATION
FOR
QUALIFIED
PLUG-IN 
ELECTRIC VEHICLES.—This section shall not apply 
to any qualified plug-in electric vehicle acquired 
after December 31, 2017. 
(2) PHASEOUT FOR NEW QUALIFIED PLUG-IN 
ELECTRIC DRIVE MOTOR VEHICLE.—The amount of 
any voucher with respect to any new qualified plug 
in electric drive motor vehicle shall be reduced as 
provided in section 30D(e) of the Internal Revenue 
Code of 1986. 
(f) REGULATIONS.—The Secretary of Energy, in con-
sultation with the Secretary of the Treasury, shall pre-
scribe such regulations as may be necessary or appropriate 
to carry out the purposes of this section. 
Æ 
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