I 
117TH CONGRESS 
1ST SESSION H. R. 5187 
To amend the Internal Revenue Code of 1986 to extend, increase, and 
modify the nonbusiness energy property credit. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 7, 2021 
Mr. GOMEZ (for himself and Mr. BLUMENAUER) introduced the following bill; 
which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to extend, 
increase, and modify the nonbusiness energy property credit. 
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 ‘‘Home Energy Savings 
Act of 2021’’. 
SEC. 2. EXTENSION, INCREASE, AND MODIFICATIONS OF 
NONBUSINESS ENERGY PROPERTY CREDIT. 
(a) EXTENSION OF CREDIT.—Section 25C(g)(2) is 
amended by striking ‘‘December 31, 2021’’ and inserting 
‘‘December 31, 2031’’. 
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(b) INCREASE IN CREDIT PERCENTAGE FOR QUALI-
FIED
ENERGY
EFFICIENCY
IMPROVEMENTS.—Section 
25C(a)(1) is amended by striking ‘‘10 percent’’ and insert-
ing ‘‘30 percent’’. 
(c) APPLICATION OF ANNUAL LIMITATION IN LIEU 
OF LIFETIME LIMITATION.—Section 25C(b) is amended 
to read as follows: 
‘‘(b) LIMITATIONS.— 
‘‘(1) IN GENERAL.—The credit allowed under 
this section with respect to any taxpayer for any tax-
able year shall not exceed $1,200. 
‘‘(2) WINDOWS.—The credit allowed under this 
section by reason of subsection (a)(1) with respect to 
any taxpayer for any taxable year shall not exceed— 
‘‘(A) in the aggregate with respect to all 
exterior windows and skylights which are not 
described in subparagraph (B), $200, 
‘‘(B) in the aggregate with respect to all 
exterior windows and skylights which meet the 
standard for the most efficient certification 
under applicable Energy Star program require-
ments, the excess (if any) of $600 over the 
credit so allowed with respect to all windows 
and skylights taken into account under sub-
paragraph (A). 
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‘‘(3) DOORS.—The credit allowed under this 
section by reason of subsection (a)(1) with respect to 
any taxpayer for any taxable year shall not exceed— 
‘‘(A) $250 in the case of any exterior door, 
and 
‘‘(B) $500 in the aggregate with respect to 
all exterior doors.’’. 
(d) MODIFICATIONS RELATED TO QUALIFIED EN-
ERGY EFFICIENCY IMPROVEMENTS.— 
(1) 
STANDARDS
FOR
ENERGY
EFFICIENT 
BUILDING
ENVELOPE
COMPONENTS.—Section 
25C(c)(2) is amended by striking ‘‘meets—’’ and all 
that follows through the period at the end and in-
serting the following: ‘‘meets— 
‘‘(A) in the case of an exterior window, a 
skylight, or an exterior door, applicable Energy 
Star program requirements, and 
‘‘(B) in the case of any other component, 
the prescriptive criteria for such component es-
tablished by the IECC standard in effect as of 
the beginning of the calendar year which is 2 
years prior to the calendar year in which such 
component is placed in service.’’. 
(2) ROOFS NOT TREATED AS BUILDING ENVE-
LOPE COMPONENTS.—Section 25C(c)(3) is amended 
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by adding ‘‘and’’ at the end of subparagraph (B), by 
striking ‘‘, and’’ at the end of subparagraph (C) and 
inserting a period, and by striking subparagraph 
(D). 
(3) AIR BARRIER INSULATION ADDED TO DEFI-
NITION OF BUILDING ENVELOPE COMPONENT.—Sec-
tion 25C(c)(3)(A) is amended by striking ‘‘material 
or system’’ and inserting ‘‘material or system, in-
cluding air barrier insulation,’’. 
(e) MODIFICATION OF RESIDENTIAL ENERGY PROP-
ERTY EXPENDITURES.—Section 25C(d) is amended to 
read as follows: 
‘‘(d) RESIDENTIAL ENERGY PROPERTY EXPENDI-
TURES.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘residential en-
ergy 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 
used as a residence by the taxpayer, and 
‘‘(B) originally placed in service by the tax-
payer. 
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Such term includes expenditures for labor costs 
properly allocable to the onsite preparation, assem-
bly, or original installation of the property. 
‘‘(2) QUALIFIED
ENERGY
PROPERTY.—The 
term ‘qualified energy property’ means any of the 
following which meet or exceed the highest efficiency 
tier (not including any advanced tier) established by 
the Consortium for Energy Efficiency which is in ef-
fect as of the beginning of the calendar year in 
which the property is placed in service: 
‘‘(A) An electric heat pump water heater. 
‘‘(B) An electric heat pump. 
‘‘(C) A central air conditioner. 
‘‘(D) A natural gas, propane, or oil water 
heater. 
‘‘(E) A natural gas, propane, or oil furnace 
or hot water boiler.’’. 
(f) HOME ENERGY AUDITS.— 
(1) IN GENERAL.—Section 25C(a) is amended 
by striking ‘‘and’’ at the end of paragraph (1), by 
striking the period at the end of paragraph (2) and 
inserting ‘‘, and’’, and by adding at the end the fol-
lowing new paragraph: 
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‘‘(3) 30 percent of the amount paid or incurred 
by the taxpayer during the taxable year for home en-
ergy audits.’’. 
(2) LIMITATION.—Section 25C(b), as amended 
by subsection (c), is amended adding at the end the 
following new paragraph: 
‘‘(5) HOME ENERGY AUDITS.— 
‘‘(A) DOLLAR
LIMITATION.—The amount 
of the credit allowed under this section by rea-
son of subsection (a)(3) shall not exceed $150. 
‘‘(B) SUBSTANTIATION
REQUIREMENT.— 
No credit shall be allowed under this section by 
reason of subsection (a)(3) unless the taxpayer 
includes with the taxpayer’s return of tax such 
information or documentation as the Secretary 
may require.’’. 
(3) HOME ENERGY AUDITS.— 
(A) IN GENERAL.—Section 25C, as amend-
ed by subsection (a), is amended by redesig-
nating subsections (e), (f), and (g), as sub-
sections (f), (g), and (h), respectively, and by 
inserting after subsection (d) the following new 
subsection: 
‘‘(e) HOME ENERGY AUDITS.—For purposes of this 
section, the term ‘home energy audit’ means an inspection 
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and written report with respect to a dwelling unit located 
in the United States and owned or used by the taxpayer 
as the taxpayer’s principal residence (within the meaning 
of section 121) which— 
‘‘(1) identifies the most significant and cost-ef-
fective energy efficiency improvements with respect 
to such dwelling unit, including an estimate of the 
energy and cost savings with respect to each such 
improvement, and 
‘‘(2) is conducted and prepared by a home en-
ergy auditor that meets the certification or other re-
quirements specified by the Secretary (after con-
sultation with the Secretary of Energy, and not later 
than 180 days after the date of the enactment of 
this subsection) in regulations or other guidance.’’. 
(B) CONFORMING
AMENDMENT.—Section 
1016(a)(33) is amended by striking ‘‘section 
25C(f)’’ and inserting ‘‘section 25C(g)’’. 
(4) LACK
OF
SUBSTANTIATION
TREATED
AS 
MATHEMATICAL
OR
CLERICAL
ERROR.—Section 
6213(g)(2) is amended— 
(A) in subparagraph (P), by striking 
‘‘and’’ at the end, 
(B) in subparagraph (Q), by striking the 
period at the end and inserting ‘‘, and’’, and 
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(C) by adding at the end the following: 
‘‘(R) an omission of correct information or 
documentation 
required 
under 
section 
25C(b)(5)(B) (relating to home energy audits) 
to be included on a return.’’. 
(g) IDENTIFICATION NUMBER REQUIREMENT.— 
(1) IN GENERAL.—Section 25C, as amended by 
subsections (a) and (f), is amended by redesignating 
subsection (h) as subsection (i) and by inserting 
after subsection (g) the following new subsection: 
‘‘(h) PRODUCT IDENTIFICATION NUMBER REQUIRE-
MENT.— 
‘‘(1) IN GENERAL.—No credit shall be allowed 
under subsection (a) with respect to any item of 
specified property placed in service after December 
31, 2023, unless— 
‘‘(A) such item is produced by a qualified 
manufacturer, and 
‘‘(B) the taxpayer includes the qualified 
product identification number of such item on 
the return of tax for the taxable year. 
‘‘(2) QUALIFIED
PRODUCT
IDENTIFICATION 
NUMBER.—For purposes of this section, the term 
‘qualified product identification number’ means, with 
respect to any item of specified property, the prod-
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uct identification number assigned to such item by 
the qualified manufacturer pursuant to the method-
ology referred to in paragraph (3). 
‘‘(3) QUALIFIED
MANUFACTURER.—For pur-
poses of this section, the term ‘qualified manufac-
turer’ means any manufacturer of specified property 
which enters into an agreement with the Secretary 
which provides that such manufacturer will— 
‘‘(A) assign a product identification num-
ber to each item of specified property produced 
by such manufacturer utilizing a methodology 
that will ensure that such number (including 
any alphanumeric) is unique to each such item 
(by utilizing numbers or letters which are 
unique to such manufacturer or by such other 
method as the Secretary may provide), 
‘‘(B) label such item with such number in 
such manner as the Secretary may provide, and 
‘‘(C) make periodic written reports to the 
Secretary (at such times and in such manner as 
the Secretary may provide) of the product iden-
tification numbers so assigned and including 
such information as the Secretary may require 
with respect to the item of specified property to 
which such number was so assigned. 
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‘‘(4) SPECIFIED PROPERTY.—For purposes of 
this subsection, the term ‘specified property’ means 
any qualified energy property and any property de-
scribed in subparagraph (B) or (C) of subsection 
(c)(3).’’. 
(2) OMISSION OF CORRECT PRODUCT IDENTI-
FICATION NUMBER TREATED AS MATHEMATICAL OR 
CLERICAL ERROR.—Section 6213(g)(2), as amended 
by the preceding provisions of this Act, is amend-
ed— 
(A) in subparagraph (Q), by striking 
‘‘and’’ at the end, 
(B) in subparagraph (R), by striking the 
period at the end and inserting ‘‘, and’’, and 
(C) by adding at the end the following: 
‘‘(S) an omission of a correct product iden-
tification number required under section 25C(h) 
(relating to credit for nonbusiness energy prop-
erty) to be included on a return.’’. 
(h) EFFECTIVE DATES.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided by this subsection, the amendments made by 
this section shall apply to property placed in service 
after December 31, 2021. 
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(2) HOME ENERGY AUDITS.—The amendments 
made by subsection (f) shall apply to amounts paid 
or incurred after December 31, 2021. 
(3) IDENTIFICATION NUMBER REQUIREMENT.— 
The amendments made subsection (g) shall apply to 
property placed in service after December 31, 2023. 
Æ 
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