minium which he owns, such individual shall be
treated as having made his proportionate share
of any expenditures of such association and any
credit shall be allocated appropriately.
‘‘(B) CONDOMINIUM
MANAGEMENT
ASSO-
CIATION.—For purposes of this paragraph, the
term ‘condominium management association’
means an organization which meets the require-
ments of paragraph (1) of section 528(c) (other
than subparagraph (E) thereof) with respect to
a condominium project substantially all of the
units of which are used as residences.
‘‘(4) JOINT OWNERSHIP OF ENERGY ITEMS.—
‘‘(A) IN GENERAL.—Any expenditure oth-
erwise qualifying as a residential energy prop-
erty expenditure shall not be treated as failing
to so qualify merely because such expenditure
was made with respect to 2 or more dwelling
units.
‘‘(B) LIMITS
APPLIED
SEPARATELY.—In
the case of any expenditure described in sub-
paragraph (A), the amount of the credit allow-
able under subsection (a) shall (subject to para-
graph (1)) be computed separately with respect
to the amount of the expenditure made for each
dwelling unit.
‘‘(5) ALLOCATION IN CERTAIN CASES.—If less
than 80 percent of the use of an item is for nonbusi-
ness purposes, only that portion of the expenditures
for such item which is properly allocable to use for
nonbusiness purposes shall be taken into account.
For purposes of this paragraph, use for a swimming
pool shall be treated as use which is not for nonbusi-
ness purposes.
‘‘(6) COORDINATION WITH OTHER CREDITS.—
Property which would, but for this paragraph, be eli-
gible for credit under more than one provision of
this section shall be eligible only under one such pro-
vision, the provision specified by the taxpayer.
‘‘(7) WHEN EXPENDITURE MADE; AMOUNT OF
EXPENDITURE.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), an expenditure with respect
to an item shall be treated as made when the
original installation of the item is completed.
‘‘(B) EXPENDITURES PART OF BUILDING
CONSTRUCTION.—In the case of an expenditure
in connection with the construction of a struc-
ture, such expenditure shall be treated as made
when the original use of the constructed struc-
ture by the taxpayer begins.
‘‘(8) PROPERTY FINANCED BY SUBSIDIZED EN-
ERGY FINANCING.—
‘‘(A) REDUCTION OF EXPENDITURES.—
‘‘(i) IN
GENERAL.—For purposes of
determining the amount of residential en-
ergy property expenditures made by any
individual with respect to any dwelling
unit, there shall not be taken in to account
expenditures which are made from sub-
sidized energy financing.
‘‘(ii) SUBSIDIZED
ENERGY
FINANC-
ING.—For purposes of clause (i), the term
‘subsidized energy financing’ has the same
meaning given such term in section
48(a)(4)(C).
‘‘(B) DOLLAR LIMITS REDUCED.—The dol-
lar amounts in the table contained in subsection
(b)(1) with respect to each property purchased
for such dwelling unit for any taxable year of
such taxpayer shall be reduced proportionately
by an amount equal to the sum of—
‘‘(i) the amount of the expenditures
made by the taxpayer during such taxable
year with respect to such dwelling unit and
not taken into account by reason of sub-
paragraph (A), and
‘‘(ii) the amount of any Federal,
State, or local grant received by the tax-
payer during such taxable year which is
used to make residential energy property
expenditures with respect to the dwelling
unit and is not included in the gross in-
come of such taxpayer.
‘‘(e) BASIS ADJUSTMENTS.—For purposes of this
subtitle, if a credit is allowed under this section for any
expenditure 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) TERMINATION.—This section shall not apply
with respect to any taxable years beginning after Decem-
ber 31, 2006.’’.
(b) CONFORMING AMENDMENTS.—
(1) Subsection (a) of section 1016 of such Code
as amended by section 2(b)(3), is amended by strik-
ing ‘‘and’’ at the end of paragraph (27), by striking
the period at the end of paragraph (28) and insert-
ing ‘‘, and’’, and by adding at the end the following
new paragraph:
‘‘(29) to the extent provided in section 25B(e),
in the case of amounts with respect to which a credit
has been allowed under section 25B.’’.
(2) The table of sections for subpart A of part
IV of subchapter A of chapter 1 of such Code is
amended by inserting after the item relating to sec-
tion 25A the following new item:
‘‘Sec. 25B. Nonbusiness energy property.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to expenditures made after Decem-
ber 31, 2000.
Æ