‘‘(iii) require that any computer soft-
ware allow for the printing of the Federal 
tax forms necessary for the credit under 
this section and explanations for the home-
buyer of the energy efficient features that 
were used to comply with the requirements 
of this section. 
‘‘(B) PROVIDERS.—For purposes of para-
graph (2)(B), the Secretary shall establish re-
quirements for the designation of individuals 
based on the requirements for energy consult-
ants and home energy raters specified by the 
National Association of State Energy Officials. 
‘‘(e) BASIS ADJUSTMENT.—For purposes of this sub-
title, if a credit is allowed under this section for any ex-
penditure with respect to any property, the increase in the 
basis of such property which would (but for this sub-
section) result from such expenditure shall be reduced by 
the amount of the credit so allowed. 
‘‘(f) APPLICATION OF SECTION.—Subsection (a) shall 
apply to dwellings purchased during the period beginning 
on January 1, 2005, and ending on December 31, 2009.’’. 
(b) CREDIT MADE PART OF GENERAL BUSINESS 
CREDIT.—Subsection (b) of section 38 (relating to current 
year business credit) is amended by striking ‘‘plus’’ at the
end of paragraph (18), by striking the period at the end 
of paragraph (19) and inserting ‘‘, plus’’, and by adding 
at the end thereof the following new paragraph: 
‘‘(20) the new energy efficient home credit de-
termined under section 45J.’’. 
(c) DENIAL OF DOUBLE BENEFIT.—Section 280C 
(relating to certain expenses for which credits are allow-
able) is amended by adding at the end thereof the fol-
lowing new subsection: 
‘‘(e) NEW ENERGY EFFICIENT HOME EXPENSES.— 
No deduction shall be allowed for that portion of expenses 
for a new energy efficient home otherwise allowable as a 
deduction for the taxable year which is equal to the 
amount of the credit determined for such taxable year 
under section 45J.’’. 
(d) DEDUCTION FOR CERTAIN UNUSED BUSINESS 
CREDITS.—Subsection (c) of section 196 is amended by 
striking ‘‘and’’ at the end of paragraph (11), by striking 
the period at the end of paragraph (12) and inserting ‘‘, 
and’’, and by adding after paragraph (12) the following 
new paragraph: 
‘‘(13) the new energy efficient home credit de-
termined under section 45J.’’. 
(e) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1
is amended by inserting after the item relating to section 
45I the following new item: 
‘‘Sec. 45J. New energy efficient home credit.’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending after De-
cember 31, 2004. 
SEC. 4. ALLOWANCE OF DEDUCTION FOR ENERGY EFFI-
CIENT COMMERCIAL BUILDING PROPERTY. 
(a) IN GENERAL.—Part VI of subchapter B of chap-
ter 1 (relating to itemized deductions for individuals and 
corporations) is amended by inserting after section 179B 
the following new section: 
‘‘SEC. 179C. DEDUCTION FOR ENERGY EFFICIENT COMMER-
CIAL BUILDING PROPERTY. 
‘‘(a) ALLOWANCE OF DEDUCTION.— 
‘‘(1) IN GENERAL.—There shall be allowed as a 
deduction an amount equal to energy efficient com-
mercial building property expenditures made by a 
taxpayer for the taxable year. 
‘‘(2) MAXIMUM AMOUNT OF DEDUCTION.—The 
amount of energy efficient commercial building prop-
erty expenditures taken into account under para-
graph (1) shall not exceed an amount equal to the 
product of— 
‘‘(A) $2.25, and
‘‘(B) the square footage of the building 
with respect to which the expenditures are 
made. 
‘‘(3) YEAR DEDUCTION ALLOWED.—The deduc-
tion under paragraph (1) shall be allowed for the 
taxable year in which the building is placed in serv-
ice. 
‘‘(b) ENERGY EFFICIENT COMMERCIAL BUILDING 
PROPERTY EXPENDITURES.—For purposes of this sec-
tion, the term ‘energy efficient commercial building prop-
erty expenditures’ means an amount paid or incurred for 
energy efficient commercial building property installed on 
or in connection with new construction or reconstruction 
of property— 
‘‘(1) for which depreciation is allowable under 
section 167, 
‘‘(2) which is located in the United States, and 
‘‘(3) the construction or erection of which is 
completed by the taxpayer. 
Such property includes all residential rental property, in-
cluding low-rise multifamily structures and single family 
housing property which is not within the scope of Stand-
ard 90.1–1999 (described in subsection (c)). Such term 
includes expenditures for labor costs properly allocable to