‘‘(E) a natural gas, propane, or oil water 
heater which has either an energy factor of at 
least 0.80 or a thermal efficiency of at least 90 
percent.’’. 
(D) OIL FURNACES AND HOT WATER BOIL-
ERS.—Paragraph (4) of section 25C(d) is 
amended to read as follows: 
‘‘(4) QUALIFIED NATURAL GAS, PROPANE, AND 
OIL FURNACES AND HOT WATER BOILERS.— 
‘‘(A) QUALIFIED
NATURAL
GAS
FUR-
NACE.—The term ‘qualified natural gas fur-
nace’ means any natural gas furnace which 
achieves an annual fuel utilization efficiency 
rate of not less than 95. 
‘‘(B) 
QUALIFIED
NATURAL
GAS
HOT 
WATER
BOILER.—The term ‘qualified natural 
gas hot water boiler’ means any natural gas hot 
water boiler which achieves an annual fuel utili-
zation efficiency rate of not less than 90. 
‘‘(C) QUALIFIED
PROPANE
FURNACE.— 
The term ‘qualified propane furnace’ means any 
propane furnace which achieves an annual fuel 
utilization efficiency rate of not less than 95. 
‘‘(D) QUALIFIED
PROPANE
HOT
WATER 
BOILER.—The term ‘qualified propane hot 
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water boiler’ means any propane hot water boil-
er which achieves an annual fuel utilization effi-
ciency rate of not less than 90. 
‘‘(E) QUALIFIED
OIL
FURNACES.—The 
term ‘qualified oil furnace’ means any oil fur-
nace which achieves an annual fuel utilization 
efficiency rate of not less than 90. 
‘‘(F) QUALIFIED
OIL
HOT
WATER
BOIL-
ER.—The term ‘qualified oil hot water boiler’ 
means any oil hot water boiler which achieves 
an annual fuel utilization efficiency rate of not 
less than 90.’’. 
(3) ELIMINATION OF LIFETIME LIMITATION.— 
Paragraph (1) of section 25C(b) is amended by in-
serting ‘‘by reason of subsection (a)(1)’’ after 
‘‘under this section’’. 
(d) MODIFICATION OF QUALIFIED ENERGY EFFI-
CIENCY IMPROVEMENTS.— 
(1) IN
GENERAL.—Paragraph (1) of section 
25C(c) is amended by inserting ‘‘, or an asphalt roof 
with appropriate cooling granules,’’ before ‘‘which 
meet the Energy Star program requirements’’. 
(2) BUILDING
ENVELOPE
COMPONENT.—Sub-
paragraph (D) of section 25C(c)(2) is amended— 
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(A) by inserting ‘‘or asphalt roof’’ after 
‘‘metal roof’’, and 
(B) by inserting ‘‘or cooling granules’’ 
after ‘‘pigmented coatings’’. 
(e) NATURAL GAS FIRED HEAT PUMPS.—Section 
25C(d)(3), as amended by this section, is amended by 
striking ‘‘and’’ at the end of subparagraph (D), by strik-
ing the period at the end of subparagraph (E) and insert-
ing ‘‘, and’’, and by adding at the end the following new 
subparagraph: 
‘‘(F) a natural gas fired heat pump with a 
heating coefficient of performance (COP) of at 
least 1.1.’’. 
(f) ELIMINATION OF CREDIT FOR QUALIFIED EN-
ERGY EFFICIENCY IMPROVEMENTS IN 2010.— 
(1) IN
GENERAL.—Subsection (a) of section 
25C is amended to read as follows: 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual, there shall be allowed as a credit against the tax 
imposed by this chapter for the taxable year an amount 
equal to the amount of residential energy property expend-
itures paid or incurred by the taxpayer during the taxable 
year.’’. 
(2) CONFORMING AMENDMENTS.— 
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(A) Section 25C(b), as amended by sub-
section (b), is amended by striking paragraphs 
(1) and (2) and by redesignating paragraph (3) 
as paragraph (1). 
(B) Section 25C(b)(1), as redesignated by 
subparagraph (A), is amended by striking ‘‘by 
reason of subsection (a)(2)’’. 
(C) Section 25C is amended by striking 
subsection (c). 
(g) CLARIFICATION OF ELIGIBILITY OF STANDARDS 
FOR
QUALIFIED
ENERGY
PROPERTY.—Section 
25C(d)(2)(C) is amended by striking ‘‘and’’ at the end of 
clause (i), by striking the period at the end of clause (ii) 
and inserting ‘‘, and’’, and by adding at the end the fol-
lowing new clause: 
‘‘(iii) shall allow for the testing of 
products regardless of the size or capacity 
of the product.’’. 
(h) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in para-
graphs (2) and (3), the amendments made by this 
section shall apply to property placed in service after 
the date of the enactment of this Act. 
(2) STANDARDS FOR ELECTRIC HEAT PUMPS 
AND
CENTRAL
AIR
CONDITIONERS.—The amend-
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