I 
117TH CONGRESS 
1ST SESSION H. R. 3395 
To amend the Internal Revenue Code of 1986 to extend and update the 
credit for nonbusiness energy property. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 20, 2021 
Mr. GOMEZ 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 
and update the credit for nonbusiness energy property. 
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’’. 
SEC. 2. UPDATING CREDIT FOR NONBUSINESS ENERGY 
PROPERTY. 
(a) IN GENERAL.—Section 25C of the Internal Rev-
enue Code of 1986 is amended— 
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(1) in subsection (a)(1), by striking ‘‘10 per-
cent’’ and inserting ‘‘15 percent’’, 
(2) in subsection (b)— 
(A) in paragraph (1)— 
(i) by striking ‘‘$500’’ and inserting 
‘‘$1,200’’, and 
(ii) by striking ‘‘December 31, 2005’’ 
and inserting ‘‘December 31, 2021’’, and 
(B) by striking paragraphs (2) and (3) and 
inserting the following: 
‘‘(2) LIMITATION
ON
WINDOW
ATTACHMENT 
PRODUCTS.—In the case of amounts paid or in-
curred for products described in subsection (c)(2)(B) 
by any taxpayer for any taxable year, the credit al-
lowed under this section with respect to such 
amounts for such year shall not exceed the excess (if 
any) of $600 over the aggregate credits allowed 
under this section with respect to such amounts for 
all prior taxable years ending after December 31, 
2021. 
‘‘(3) LIMITATION ON INSULATION MATERIAL OR 
SYSTEM.—In the case of amounts paid or incurred 
for components described in subparagraph (A) or 
(D) of subsection (c)(3) by any taxpayer for any tax-
able year, the credit allowed under this section with 
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respect to such amounts for such year shall not ex-
ceed the excess (if any) of $600 over the aggregate 
credits allowed under this section with respect to 
such amounts for all prior taxable years ending after 
December 31, 2021. 
‘‘(4) LIMITATION ON WINDOWS.— 
‘‘(A) IN GENERAL.— 
‘‘(i) 
ENERGY
STAR
MOST
EFFI-
CIENT.—In the case of amounts paid or in-
curred by any taxpayer for any taxable 
year for components described in sub-
section (c)(3)(B) which meet the most effi-
cient certification under applicable Energy 
Star program requirements, the credit al-
lowed under this section with respect to 
such amounts for such year shall not ex-
ceed the excess (if any) of $600 over the 
aggregate credits allowed under this sec-
tion with respect to such amounts for all 
prior taxable years ending after December 
31, 2021. 
‘‘(ii) ENERGY STAR.—In the case of 
amounts paid or incurred by any taxpayer 
for any taxable year for components de-
scribed in subsection (c)(3)(B) which do 
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not meet the most efficient certification 
under applicable Energy Star program re-
quirements, the credit allowed under this 
section with respect to such amounts for 
such year shall not exceed the excess (if 
any) of $200 over the aggregate credits al-
lowed under this section with respect to 
such amounts for all prior taxable years 
ending after December 31, 2021. 
‘‘(B) ELECTION.— 
‘‘(i) IN
GENERAL.—For purposes of 
any amounts paid or incurred by any tax-
payer for components described in sub-
section (c)(3)(B), the credit allowed under 
this section shall only be allowed for com-
ponents described in clause (i) of subpara-
graph (A) or clause (ii) of such subpara-
graph, but not both, as elected by the tax-
payer during the first taxable year in 
which such credit is being claimed by the 
taxpayer. 
‘‘(ii) 
IRREVOCABILITY.—The 
Sec-
retary shall, through such rules, regula-
tions, and procedures as are determined 
appropriate, establish procedures for mak-
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ing an election under this subparagraph, 
which shall require that— 
‘‘(I) any election made by the 
taxpayer shall be irrevocable, and 
‘‘(II) such election shall remain 
in effect for all subsequent taxable 
years. 
‘‘(5) LIMITATION ON DOORS.—In the case of 
amounts paid or incurred for components described 
in subsection (c)(3)(C) by any taxpayer for any tax-
able year, the credit allowed under this section with 
respect to such amounts for such year shall not ex-
ceed— 
‘‘(A) the excess (if any) of $500 over the 
aggregate credits allowed under this section 
with respect to such amounts for all prior tax-
able years ending after December 31, 2021, or 
‘‘(B) $250 for each exterior door. 
‘‘(6) LIMITATION
ON
RESIDENTIAL
ENERGY 
PROPERTY
EXPENDITURES.—The amount of the 
credit allowed under this section by reason of sub-
section (a)(2) shall not exceed— 
‘‘(A) in the case of any energy-efficient 
building property— 
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‘‘(i) for any item of property described 
in clause (ii) of subparagraph (A) of sub-
section (d)(3), $800, 
‘‘(ii) for any item of property de-
scribed in clause (i) or (iii) of such sub-
paragraph, $600 
‘‘(iii) for any item of property de-
scribed in clause (iv) of such subpara-
graph, $400, and 
‘‘(B) in the case of any qualified natural 
gas, propane, or oil furnace or hot water boiler 
(as defined in subsection (d)(4)), an amount 
equal to— 
‘‘(i) $600 for a hot water boiler, and 
‘‘(ii) in the case of a furnace, an 
amount equal to the sum of— 
‘‘(I) $300, plus 
‘‘(II) if the taxpayer is converting 
from a non-condensing furnace to a 
condensing furnace, $300.’’, 
(3) in subsection (c)— 
(A) in paragraph (2), by striking subpara-
graphs (A) through (C) and inserting the fol-
lowing: 
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‘‘(A) in the case of an exterior window, a 
skylight, or an exterior door, applicable Energy 
Star program requirements, 
‘‘(B) in the case of any window attachment 
product, the applicable certification require-
ments for such product under the Attachments 
Energy Rating Council Certification Program, 
and 
‘‘(C) in the case of any other component, 
the prescriptive criteria for such component es-
tablished by the International Energy Conserva-
tion Code, as such Code (including supple-
ments) is in effect on January 1 of the calendar 
year in which such component is installed.’’, 
(B) in paragraph (3), by striking subpara-
graph (D) and inserting the following: 
‘‘(D) any air barrier material, system, or 
assembly which is specifically and primarily de-
signed to minimize the passage of air through 
the building thermal envelope and its assemblies 
when installed in or on a dwelling unit.’’, and 
(C) by adding at the end the following new 
paragraph: 
‘‘(5) LABOR COSTS.—The term ‘qualified en-
ergy efficiency improvements’ includes expenditures 
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for labor costs properly allocable to the onsite prepa-
ration, assembly, or original installation of any en-
ergy efficient building envelope component.’’, 
(4) in subsection (d)— 
(A) in paragraph (2)— 
(i) in subparagraph (A)— 
(I) in clause (i), by adding ‘‘or’’ 
at the end, 
(II) in clause (ii), by striking ‘‘, 
or’’ and inserting a period, and 
(III) by striking clause (iii), and 
(ii) by striking subparagraphs (B) and 
(C) and inserting the following: 
‘‘(B) EFFICIENCY STANDARDS.—Property 
described in subparagraph (A) shall meet or ex-
ceed the requirements of the highest efficiency 
tier (not including any advanced tier) estab-
lished by the Consortium for Energy Efficiency 
which are in effect on January 1 of the cal-
endar year in which the property was ac-
quired.’’, 
(B) by striking paragraph (3) and insert-
ing the following: 
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‘‘(3) 
ENERGY-EFFICIENT
BUILDING
PROP-
ERTY.—The term ‘energy-efficient building property’ 
means property which— 
‘‘(A) is— 
‘‘(i) an electric heat pump water heat-
er, 
‘‘(ii) an electric heat pump, 
‘‘(iii) a central air conditioner, or 
‘‘(iv) a natural gas, propane, or oil 
water heater, and 
‘‘(B) meets or exceeds the requirements of 
the highest efficiency tier (not including any ad-
vanced tier) established by the Consortium for 
Energy Efficiency which are in effect on Janu-
ary 1 of the calendar year in which the property 
was acquired.’’, 
(C) in paragraph (4), by striking ‘‘achieves 
an annual fuel utilization efficiency rate of not 
less than 95’’ and inserting ‘‘meets or exceeds 
the requirements of the highest efficiency tier 
(not including any advanced tier) established by 
the Consortium for Energy Efficiency which are 
in effect on January 1 of the calendar year in 
which the property was acquired’’, and 
(D) by striking paragraph (5), 
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(5) in subsection (e), by adding the following 
new paragraphs at the end: 
‘‘(4) INSTALLATION
STANDARDS.—The terms 
‘energy efficient building envelope component’ and 
‘qualified energy property’ shall not include any 
components or property which are not installed ac-
cording to any applicable Air Conditioning Contrac-
tors of America Quality Installation standards which 
are in effect at the time that such components or 
property are placed in service. 
‘‘(5) REPLACEMENT OF TERMINATED STAND-
ARDS.—In the case of any standard, requirement, or 
criteria applicable to any energy efficient building 
envelope component or qualified energy property 
which is terminated after the date of enactment of 
the Home Energy Savings Act, the Secretary, in 
consultation with the Secretary of Energy, shall 
identify a similar standard, requirement, or criteria 
for purposes of determining the eligibility of any 
such component or property for purposes of credit 
allowed under this section.’’, and 
(6) in subsection (g)(2), by striking ‘‘December 
31, 2021’’ and inserting ‘‘December 31, 2028’’. 
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(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2021. 
Æ 
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