sions that comply with the calculation
requirements of subclause (III).
‘‘(C) DETERMINATIONS OF COMPLIANCE.—
A determination of compliance made for the
purposes of this paragraph shall be filed with
the Secretary of Energy within 1 year of the
date of such determination and shall include the
TIN of the certifier, the address of the building
in compliance, and the identity of the person
for whom such determination was performed.
Determinations of compliance filed with the
Secretary of Energy shall be available for in-
spection by the Secretary.
‘‘(D) COMPLIANCE.—
‘‘(i) IN GENERAL.—The Secretary of
Energy in consultation with the Secretary
of the Treasury shall establish require-
ments for certification and compliance pro-
cedures after examining the requirements
for energy consultants and home energy
ratings providers specified by the Mortgage
Industry National Accreditation Proce-
dures for Home Energy Rating Systems.
‘‘(ii) INDIVIDUALS QUALIFIED TO DE-
TERMINE COMPLIANCE.—Individuals quali-
fied to determine compliance shall be only
those individuals who are recognized by an
organization certified by the Secretary of
Energy for such purposes.
‘‘(D) PRINCIPAL
RESIDENCE.—The term
‘principal residence’ has the same meaning as
when used in section 121, except that the pe-
riod for which a building is treated as the prin-
cipal residence of the taxpayer shall also include
the 60-day period ending on the 1st day on
which it would (but for this subparagraph) first
be treated as his principal residence.
‘‘(d) SPECIAL
RULES.—For purposes of this
section—
‘‘(1) DOLLAR AMOUNTS IN CASE OF JOINT OC-
CUPANCY.—In the case of any dwelling unit which if
jointly occupied and used during any calendar year
as a residence by 2 or more individuals the following
shall apply:
‘‘(A) The amount of the credit allowable
under subsection (a) by reason of expenditures
made during such calendar year by any of such
individuals with respect to such dwelling unit
shall be determined by treating all of such indi-
viduals as 1 taxpayer whose taxable year is
such calendar year.
‘‘(B) There shall be allowable with respect
to such expenditures to each of such individ-
uals, a credit under subsection (a) for the tax-
able year in which such calendar year ends in
an amount which bears the same ratio to the
amount determined under subparagraph (A) as
the amount of such expenditures made by such
individual during such calendar year bears to
the aggregate of such expenditures made by all
of such individuals during such calendar year.
‘‘(2) TENANT-STOCKHOLDER IN COOPERATIVE
HOUSING
CORPORATION.—In the case of an indi-
vidual who is a tenant-stockholder (as defined in sec-
tion 216) in a cooperative housing corporation (as
defined in such section), such individual shall be
treated as having made his tenant-stockholder’s pro-
portionate share (as defined in section 216(b)(3)) of
any expenditures of such corporation.
‘‘(3) CONDOMINIUMS.—
‘‘(A) IN GENERAL.—In the case of an indi-
vidual who is a member of a condominium man-
agement association with respect to a condo-
minium which he owns, such individual shall be
treated as having made his proportionate share
of any expenditures of such association.
‘‘(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.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), if less than 80 percent of
the use of an item is for nonbusiness purposes,
only that portion of the expenditures for such
item which is properly allocable to use for non-
business purposes shall be taken into account.
For purposes of this paragraph, use for a swim-
ming pool shall be treated as use which is not
for nonbusiness purposes.
‘‘(B) SPECIAL RULE FOR VEHICLES.—For
purposes of this section and section 48A, a ve-
hicle shall be treated as used entirely for busi-
ness or nonbusiness purposes if the majority of
the use of such vehicle is for business or non-
business purposes, as the case may be.
‘‘(6) DOUBLE BENEFIT; PROPERTY USED OUT-
SIDE UNITED STATES, ETC., NOT QUALIFIED.—No
credit shall be allowed under subsection (a)(1)(B)
with respect to—
‘‘(A) any property for which a credit is al-
lowed under section 30 or 48A,
‘‘(B) any property referred to in section
50(b), and
‘‘(C) the portion of the cost of any prop-
erty taken into account under section 179 or
179A.
‘‘(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.
‘‘(C) AMOUNT.—The amount of any ex-
penditure shall be the cost thereof.
‘‘(8) PROPERTY FINANCED BY SUBSIDIZED EN-
ERGY FINANCING.—
‘‘(A) REDUCTION
OF
EXPENDITURES.—
For purposes of determining the amount of res-
idential energy property expenditures made by
any individual with respect to any dwelling unit,
there shall not be taken in to account expendi-
tures which are made from subsidized energy fi-
nancing (as defined in section 48A(g)(1)).
‘‘(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.’’.
(b) CONFORMING AMENDMENTS.—
(1) Subsection (a) of section 1016 of such Code
is amended by striking ‘‘and’’ at the end of para-
graph (26), by striking the period at the end of
paragraph (27) and inserting ‘‘; and’’, and by add-
ing at the end the following new paragraph:
‘‘(28) 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 after December 31,
1999.
Æ