‘‘(f) BASIS ADJUSTMENTS.—For purposes of this 
subtitle, if a credit is allowed under this section with re-
spect to any expenditure with respect to any property, the 
increase in the basis of such property which would (but 
for this subsection) result from such expenditure shall be 
reduced by the amount of the credit so allowed. 
‘‘(g) TERMINATION.—This section shall not apply 
with respect to any property placed in service after Decem-
ber 31, 2011.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 263(a)(1), as amended by section 
404 of division A of the Tax Relief and Health Care 
Act of 2006, the is amended by striking ‘‘or’’ at the 
end of subparagraph (K), by striking the period at 
the end of subparagraph (L) and inserting ‘‘, or’’, 
and by inserting after subparagraph (L) the fol-
lowing new subparagraph: 
‘‘(M) expenditures for which a deduction is 
allowed under section 179F.’’. 
(2) Section 312(k)(3)(B) is amended by strik-
ing ‘‘179, 179A, 179B, 179C, 179D, or 179E’’ each 
place it appears in the heading and text and insert-
ing ‘‘179, 179A, 179B, 179C, 179D, 179E, or 
179F’’. 
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sroberts on PROD1PC70 with BILLS
(3) Section 1016(a), as amended by section 
101, is amended by striking ‘‘and’’ at the end of 
paragraph (37), by striking the period at the end of 
paragraph (38) and inserting ‘‘, and’’, and by add-
ing at the end the following new paragraph: 
‘‘(39) to the extent provided in section 
179F(f).’’. 
(4) Section 1245(a) is amended by inserting 
‘‘179F,’’ after ‘‘179E,’’ both places it appears in 
paragraphs (2)(C) and (3)(C). 
(5) The table of sections for part VI of sub-
chapter B is amended by inserting after the item re-
lating to section 179E the following new item: 
‘‘Sec. 179F. Energy efficient low-rise buildings deduction.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred in tax-
able years beginning after the date of the enactment of 
this Act. 
SEC. 216. ENERGY EFFICIENT PROPERTY DEDUCTION. 
(a) IN GENERAL.—Part VI of subchapter B of chap-
ter 1, as amended by section 203, is amended by inserting 
after section 179F the following new section: 
‘‘SEC. 179G. ENERGY EFFICIENT PROPERTY. 
‘‘(a) IN GENERAL.—There shall be allowed as a de-
duction an amount equal to the energy efficient property 
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expenditures paid or incurred by the taxpayer during the 
taxable year. 
‘‘(b) LIMITATION.—The amount of the deduction al-
lowed under subsection (a) for any taxable years shall not 
exceed— 
‘‘(1) $150 for any advanced main air circu-
lating fan, 
‘‘(2) $450 for any qualified natural gas furnace 
or qualified propane furnace, and 
‘‘(3) $900 for— 
‘‘(A) any item of energy-efficient building 
property, and 
‘‘(B) any qualified oil furnace, qualified 
natural gas hot water boiler, qualified propane 
hot water boiler, or qualified oil hot water boil-
er. 
‘‘(c) ENERGY
EFFICIENT
PROPERTY
EXPENDI-
TURES.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘energy efficient 
property expenditures’ means expenditures paid by 
the taxpayer for qualified energy property which is— 
‘‘(A) of a character subject to the allow-
ance for depreciation, and 
‘‘(B) originally placed in service by the tax-
payer. 
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‘‘(2) QUALIFIED
ENERGY
PROPERTY.—The 
term ‘qualified energy property’ has the meaning 
given such term by section 25C(d)(2). 
‘‘(d) BASIS ADJUSTMENTS.—For purposes of this 
subtitle, if a deduction is allowed under this section with 
respect to any expenditure with respect to any property, 
the increase in the basis of such property which would (but 
for this subsection) result from such expenditure shall be 
reduced by the amount of the deduction so allowed. 
‘‘(e) TERMINATION.—This section shall not apply 
with respect to any property placed in service after Decem-
ber 31, 2011.’’. 
(b) NO DOUBLE BENEFIT.—Section 179D(c) is 
amended by adding at the end the following new para-
graph: 
‘‘(3) CERTAIN
PROPERTY
EXCLUDED.—The 
term ‘energy efficient commercial building property’ 
does not include any property with respect to which 
a credit has been allowed to the taxpayer under sec-
tion 179G.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 263(a)(1), as amended by section 
203, is amended by striking ‘‘or’’ at the end of sub-
paragraph (K), by striking the period at the end of 
subparagraph (L) and inserting ‘‘, or’’, and by in-
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