I 
109TH CONGRESS 
2D SESSION 
H. R. 4856 
To amend the Internal Revenue Code of 1986 to allow a credit to homeowners 
for Energy Star qualified homes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 2, 2006 
Ms. BEAN 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 allow a 
credit to homeowners for Energy Star qualified homes. 
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 ‘‘Energy Star Homes 
Act of 2006’’. 
SEC. 2. ENERGY STAR HOME CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code (re-
lating to business related credits) is amended by inserting 
after section 45M the following new section: 
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‘‘SEC. 45N. ENERGY STAR HOME CREDIT. 
‘‘(a) ALLOWANCE OF CREDIT.—For purposes of sec-
tion 38, in the case of a homeowner, the Energy Star 
home credit for the taxable year is $10,000 for each En-
ergy Star qualified home which— 
‘‘(1) is owned by the homeowner for use as a 
residence by such homeowner during the taxable 
year, and 
‘‘(2) meets the energy saving requirements of 
subsection (c) for the first time during such taxable 
year. 
‘‘(b) DEFINITIONS.—For purposes of this section— 
‘‘(1) ENERGY
STAR
QUALIFIED
HOME.—The 
term ‘Energy Star qualified home’ means a dwelling 
unit— 
‘‘(A) located in the United States, 
‘‘(B) the construction of which is substan-
tially completed after the date of the enactment 
of this section, and 
‘‘(C) which meets the energy saving re-
quirements of subsection (c). 
‘‘(2) CONSTRUCTION.—The term ‘construction’ 
includes substantial reconstruction and rehabilita-
tion. 
‘‘(c) ENERGY SAVING REQUIREMENTS.—A dwelling 
unit meets the energy saving requirements of this sub-
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section if such unit meets the requirements established by 
the Administrator of the Environmental Protection Agen-
cy under the Energy Star Labeled Homes program as in 
effect on the date of the enactment of this section. 
‘‘(d) BASIS ADJUSTMENT.—For purposes of this sub-
title, if a credit is allowed under this section in connection 
with any expenditure for 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 determined. 
‘‘(e) TERMINATION.—This section shall not apply to 
an Energy Star qualified home which meets the energy 
saving requirements of subsection (c) for the first time 
during a taxable year beginning after December 31, 
2008.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 38(b) of such Code is amended by 
striking ‘‘and’’ at the end of paragraph (29), by 
striking the period at the end of paragraph (30) and 
inserting ‘‘, and’’, and by adding at the end the fol-
lowing: 
‘‘(31) the Energy Star home credit determined 
under section 45N(a).’’. 
(2) The table of sections for subpart D of part 
IV of subchapter A of chapter 1 of such Code is 
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amended by inserting after the item relating to sec-
tion 45M the following new item: 
‘‘Sec. 45N. Energy Star home credit.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2005. 
Æ 
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