I 
113TH CONGRESS 
2D SESSION 
H. R. 5002 
To amend the Internal Revenue Code of 1986 to modify and extend the 
credit for nonbusiness energy property. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 26, 2014 
Mr. GERLACH (for himself and Mr. KIND) 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 modify 
and extend 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 of 2014’’. 
SEC. 2. MODIFICATION AND EXTENSION OF CREDIT FOR 
NONBUSINESS ENERGY PROPERTY. 
(a) CREDIT MADE PERMANENT.—Section 25C of the 
Internal Revenue Code of 1986 is amended by striking 
subsection (g). 
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(b) MODIFICATION TO LIMITATIONS.—Subsection (b) 
of section 25C of the Internal Revenue Code of 1986 is 
amended— 
(1) by striking ‘‘$500’’ in paragraph (1) and in-
serting ‘‘$1,000’’, and 
(2) by striking paragraph (2) and redesignating 
paragraph (3) as paragraph (2). 
(c) LABOR COSTS INCLUDED
IN CREDIT.—Para-
graph (1) of section 25C(c) of the Internal Revenue Code 
of 1986 is amended by adding at the end the following 
flush sentence: 
‘‘Such term includes expenditures for labor costs 
properly allocable to the onsite preparation, assem-
bly, or original installation of the component.’’. 
(d) ROOFS.—Section 25C(c) of the Internal Revenue 
Code of 1986 is amended— 
(1) in paragraph (1), by striking ‘‘a metal roof 
with appropriate pigmented coatings, or an asphalt 
roof with appropriate cooling granules,’’ and insert-
ing ‘‘or a roofing product’’, and 
(2) in paragraph (2)(D), by striking ‘‘any metal 
roof or asphalt roof installed on a dwelling unit, but 
only if such roof has appropriate pigmented coatings 
or cooling granules which are’’ and inserting ‘‘any 
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roofing product installed on a dwelling unit, but only 
if such roofing product is’’. 
(e) MODIFICATIONS TO RESIDENTIAL ENERGY PROP-
ERTY EXPENDITURES.— 
(1) QUALIFIED
NATURAL
GAS, PROPANE, OR 
OIL
FURNACES
OR
HOT
WATER
BOILERS.—Para-
graph (4) of section 25C(d) of the Internal Revenue 
Code of 1986 is amended to read as follows: 
‘‘(4) QUALIFIED NATURAL GAS, PROPANE, OR 
OIL FURNACE OR HOT WATER BOILER.—The term 
‘qualified natural gas, propane, or oil furnace or hot 
water boiler’ means— 
‘‘(A) a natural gas or propane furnace 
which achieves an annual fuel utilization effi-
ciency rate of not less than 95, 
‘‘(B) a natural gas or propane hot water 
boiler which achieves an annual fuel utilization 
efficiency rate of not less than 90, 
‘‘(C) an oil furnace or hot water boiler 
which— 
‘‘(i) achieves an annual fuel utilization 
efficiency rate of not less than 86, and 
‘‘(ii)(I) in the case of a hot water boil-
er, is installed with temperature reset or 
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thermal purge controls and an indirect 
water heater, and 
‘‘(II) in the case of a furnace, is in-
stalled with an electronically commutated 
blower motor.’’. 
(2) WATER HEATERS.— 
(A) IN GENERAL.—Paragraph (3) of sec-
tion 25C(d) of the Internal Revenue Code of 
1986 is amended— 
(i) by striking ‘‘electric heat pump 
water heater’’ in subparagraph (A) and in-
serting ‘‘integrated heat pump water heat-
er’’, 
(ii) by striking ‘‘a natural gas, pro-
pane, or oil water heater’’ in subparagraph 
(D) and inserting ‘‘an oil water heater’’, 
and 
(iii) by redesignating subparagraph 
(E) as subparagraph (G) and inserting 
after subparagraph (D) the following new 
subparagraphs: 
‘‘(E) a natural gas or propane storage 
water heater with an energy factor of at least 
0.67 or a thermal efficiency of at least 90 per-
cent, 
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‘‘(F) a natural gas or propane tankless 
water heater with an energy factor of at least 
0.82 or a thermal efficiency of at least 90 per-
cent, and’’. 
(B) LIMITATION.—Paragraph (2) of sec-
tion 25C(b) of such Code, as redesignated by 
subsection (b), is amended by striking subpara-
graphs (A) through (C) and inserting the fol-
lowing: 
‘‘(A) $1,000 in the case of— 
‘‘(i) any water heater described in 
subsection (d)(3)(A), 
‘‘(ii) any natural gas storage water 
heater described in subsection (d)(3)(E) 
which— 
‘‘(I) has an energy factor of 0.80 
or higher, or 
‘‘(II) has a thermal efficiency of 
at least 90 percent, and 
‘‘(iii) any natural gas tankless water 
heater described in subsection (d)(3)(F) 
which— 
‘‘(I) has an energy factor of 0.90 
or higher, or 
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‘‘(II) has a thermal efficiency of 
at least 90 percent, and 
‘‘(B) $500 in the case of— 
‘‘(i) any natural gas storage water 
heater described in subsection (d)(3)(E) 
which has an energy factor which is at 
least 0.67 and less than 0.80, and 
‘‘(ii) any natural gas tankless water 
heater described in subsection (d)(3)(F) 
which has an energy factor which is at 
least 0.82 and less than 0.90.’’. 
(f) DOCUMENTATION
REQUIREMENT.—Subsection 
(e) of section 25C of the Internal Revenue Code of 1986 
is amended by adding at the end the following new para-
graph: 
‘‘(4) DOCUMENTATION.— 
‘‘(A) IN GENERAL.—No credit shall be al-
lowed under subsection (a) for any amount paid 
or incurred for a qualified energy efficiency im-
provement or for any residential energy prop-
erty expenditure unless the taxpayer includes on 
the return of tax for the taxable year the 
verifiable product identification number with re-
spect to— 
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‘‘(i) in the case of a qualified energy 
efficiency improvement, the component in-
stalled in or on the taxpayer’s dwelling 
unit, and 
‘‘(ii) in the case of a residential en-
ergy property expenditure, the qualified en-
ergy property. 
‘‘(B) VERIFIABLE
PRODUCT
IDENTIFICA-
TION
NUMBER.—For purposes of this para-
graph, the term ‘verifiable product identifica-
tion number’ means— 
‘‘(i) in the case of any insulation ma-
terial or system described in subsection 
(c)(2)(A)— 
‘‘(I) if such material or system is 
installed by a contractor, a signed and 
dated statement from the contractor 
describing the insulation installed, in-
cluding the thickness, coverage area, 
R-value, and such other information 
required by the Secretary, in consulta-
tion with the Chairman of the Federal 
Trade Commission, and 
‘‘(II) in any other case, such in-
formation about the material or sys-
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tem installed as the Secretary may re-
quire, 
‘‘(ii) in the case of any exterior door, 
exterior window, or skylight, the National 
Fenestration Rating Council certified prod-
uct detail number or such other identifica-
tion number determined by the Secretary, 
‘‘(iii) in the case of any roof described 
in subsection (c)(2)(C), the Cool Roof Rat-
ing Council rated roofing product identi-
fication number or such other identifica-
tion number determined by the Secretary, 
and 
‘‘(iv) in the case of any qualified en-
ergy property, the Air-Conditioning Heat-
ing and Refrigeration Institute certified 
reference number or such other identifica-
tion number used for heating, air condi-
tioning, ventilation, or water heating 
equipment as determined by the Sec-
retary.’’. 
(g) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided by para-
graph (2), the amendments made by this section 
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shall apply to property placed in service after De-
cember 31, 2013. 
(2) PERMANENT EXTENSION.—The amendment 
made by subsection (a) shall apply to property 
placed in service after December 31, 2013. 
Æ 
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