H. R. 6—440
‘‘(B) INCLUSION OF FOREIGN CORPORATIONS.—For pur-
poses of subparagraph (A), in applying subsections (a) and 
(b) of section 52 to this section, section 1563 shall be 
applied without regard to subsection (b)(2)(C) thereof. 
‘‘(3) VERIFICATION.—No amount shall be allowed as a credit 
under subsection (a) with respect to which the taxpayer has 
not submitted such information or certification as the Secretary, 
in consultation with the Secretary of Energy, determines nec-
essary.’’. 
(b) CONFORMING AMENDMENT.—Section 38(b) (relating to gen-
eral business credit), as amended by this Act, is amended by striking 
‘‘plus’’ at the end of paragraph (22), by striking the period at 
the end of paragraph (23) and inserting ‘‘, plus’’, and by adding 
at the end the following new paragraph: 
‘‘(24) the energy efficient appliance credit determined under 
section 45M(a).’’. 
(c) CLERICAL AMENDMENT.—The table of sections for subpart 
D of part IV of subchapter A of chapter 1, as amended by this 
Act, is amended by adding at the end the following new item:
‘‘Sec. 45M. Energy efficient appliance credit.’’.
(d) EFFECTIVE DATE.—The amendments made by this section 
shall apply to appliances produced after December 31, 2005. 
SEC. 1335. CREDIT FOR RESIDENTIAL ENERGY EFFICIENT PROPERTY. 
(a) IN GENERAL.—Subpart A of part IV of subchapter A of 
chapter 1 (relating to nonrefundable personal credits), as amended 
by this Act, is amended by inserting after section 25C the following 
new section: 
‘‘SEC. 25D. RESIDENTIAL ENERGY EFFICIENT PROPERTY. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an individual, there 
shall be allowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to the sum of— 
‘‘(1) 30 percent of the qualified photovoltaic property 
expenditures made by the taxpayer during such year, 
‘‘(2) 30 percent of the qualified solar water heating property 
expenditures made by the taxpayer during such year, and 
‘‘(3) 30 percent of the qualified fuel cell property expendi-
tures made by the taxpayer during such year. 
‘‘(b) LIMITATIONS.— 
‘‘(1) MAXIMUM
CREDIT.—The credit allowed under sub-
section (a) for any taxable year shall not exceed— 
‘‘(A) $2,000 with respect to any qualified photovoltaic 
property expenditures, 
‘‘(B) $2,000 with respect to any qualified solar water 
heating property expenditures, and 
‘‘(C) $500 with respect to each half kilowatt of capacity 
of qualified fuel cell property (as defined in section 48(c)(1)) 
for which qualified fuel cell property expenditures are 
made. 
‘‘(2) CERTIFICATION OF SOLAR WATER HEATING PROPERTY.—
No credit shall be allowed under this section for an item of 
property described in subsection (d)(1) unless such property 
is certified for performance by the non-profit Solar Rating Cer-
tification Corporation or a comparable entity endorsed by the 
government of the State in which such property is installed.
H. R. 6—441
‘‘(c) CARRYFORWARD OF UNUSED CREDIT.—If the credit allowable 
under subsection (a) exceeds the limitation imposed by section 
26(a) for such taxable year reduced by the sum of the credits 
allowable under this subpart (other than this section), such excess 
shall be carried to the succeeding taxable year and added to the 
credit allowable under subsection (a) for such succeeding taxable 
year. 
‘‘(d) DEFINITIONS.—For purposes of this section— 
‘‘(1) QUALIFIED SOLAR WATER HEATING PROPERTY EXPENDI-
TURE.—The term ‘qualified solar water heating property 
expenditure’ means an expenditure for property to heat water 
for use in a dwelling unit located in the United States and 
used as a residence by the taxpayer if at least half of the 
energy used by such property for such purpose is derived from 
the sun. 
‘‘(2) QUALIFIED
PHOTOVOLTAIC
PROPERTY
EXPENDITURE.—
The term ‘qualified photovoltaic property expenditure’ means 
an expenditure for property which uses solar energy to generate 
electricity for use in a dwelling unit located in the United 
States and used as a residence by the taxpayer. 
‘‘(3) QUALIFIED FUEL CELL PROPERTY EXPENDITURE.—The 
term ‘qualified fuel cell property expenditure’ means an 
expenditure for qualified fuel cell property (as defined in section 
48(c)(1)) installed on or in connection with a dwelling unit 
located in the United States and used as a principal residence 
(within the meaning of section 121) by the taxpayer. 
‘‘(e) SPECIAL RULES.—For purposes of this section— 
‘‘(1) LABOR COSTS.—Expenditures for labor costs properly 
allocable to the onsite preparation, assembly, or original 
installation of the property described in subsection (d) and 
for piping or wiring to interconnect such property to the 
dwelling unit shall be taken into account for purposes of this 
section. 
‘‘(2) SOLAR PANELS.—No expenditure relating to a solar 
panel or other property installed as a roof (or portion thereof) 
shall fail to be treated as property described in paragraph 
(1) or (2) of subsection (d) solely because it constitutes a struc-
tural component of the structure on which it is installed. 
‘‘(3) SWIMMING POOLS, ETC., USED AS STORAGE MEDIUM.—
Expenditures which are properly allocable to a swimming pool, 
hot tub, or any other energy storage medium which has a 
function other than the function of such storage shall not be 
taken into account for purposes of this section. 
‘‘(4) DOLLAR AMOUNTS IN CASE OF JOINT OCCUPANCY.—In 
the case of any dwelling unit which is jointly occupied and 
used during any calendar year as a residence by two or more 
individuals the following rules shall apply: 
‘‘(A) The amount of the credit allowable, under sub-
section (a) by reason of expenditures (as the case may 
be) made during such calendar year by any of such individ-
uals with respect to such dwelling unit shall be determined 
by treating all of such individuals as 1 taxpayer whose 
taxable year is such calendar year. 
‘‘(B) There shall be allowable, with respect to such 
expenditures to each of such individuals, a credit under 
subsection (a) for the taxable year in which such calendar 
year ends in an amount which bears the same ratio to