(1) MODIFICATION OF CREDIT AMOUNT.—Para-
graph (2) of section 45L(a) of the Internal Revenue 
Code of 1986 (relating to applicable amount) is 
amended to read as follows: 
‘‘(2) APPLICABLE AMOUNT.—For purposes of 
paragraph (1), the applicable amount is an amount 
equal to— 
‘‘(A) in the case of an Energy Star Home, 
$700, 
‘‘(B) in the case of an Energy Plus Home, 
$2,000, 
‘‘(C) in the case of an Energy Saver 
Home, $5,000, and 
‘‘(D) in the case of Zero Energy Home, 
$10,000.’’. 
(2) MODIFICATION
OF
ENERGY
SAVING
RE-
QUIREMENT.—Subsection (c) of section 45L of such 
Code is amended to read as follows: 
‘‘(c) ENERGY SAVINGS REQUIREMENTS.— 
‘‘(1) IN GENERAL.—A dwelling unit meets the 
energy savings requirements of this subsection if 
such unit is described in paragraph (2). 
‘‘(2) APPLICABLE DWELLING UNITS.—For pur-
poses of this section— 
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‘‘(A) ENERGY
STAR
HOME.—The term 
‘Energy Star Home’ means a dwelling unit 
which meets the requirements established by 
the Administrator of the Environmental Agency 
under the Energy Star Labeled Homes pro-
gram. 
‘‘(B) ENERGY
PLUS
HOME.—The term 
‘Energy Plus Home’ means a dwelling unit 
which is certified under the most recent Mort-
gage Industry National Home Energy Rating 
Systems Standards as having a relative energy 
use index value of more than 50, but not more 
than 70. 
‘‘(C) ENERGY
SAVER
HOME.—The term 
‘Energy Saver Home’ means a dwelling unit 
which meets the requirements of subparagraph 
(B) applied by substituting ‘0’ for ‘50’ and ‘50’ 
for ‘70’. 
‘‘(D) ZERO
ENERGY
HOME.—The term 
‘Zero Energy Home’ means a dwelling unit 
which meets the requirements of subparagraph 
(B) applied by substituting ‘0’ for ‘more than 
50, but not more than 70’.’’. 
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(3) MODIFICATION
OF
TERMINATION.—Sub-
section (g) of section 45L of such Code (relating to 
termination) is amended to read as follows: 
‘‘(g) TERMINATION.—This section shall not apply to 
any qualified new energy efficient home acquired after— 
‘‘(1) in the case of an Energy Star Home, De-
cember 31, 2011, 
‘‘(2) in the case of a Energy Star Home, De-
cember 31, 2013, 
‘‘(3) in the case of a Energy Plus Home, De-
cember 31, 2015, and 
‘‘(4) in the case of a Zero Energy Home, De-
cember 31, 2018.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to new energy efficient homes ac-
quired after December 31, 2008. 
SEC. 3. ENERGY EFFICIENT HOME PURCHASE. 
(a) IN GENERAL.—Part VII of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating addi-
tional itemized deductions for individuals) is amended by 
redesignating section 224 as section 225 and by inserting 
after section 223 the following new section: 
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‘‘SEC. 224. ENERGY EFFICIENT HOME PURCHASE DEDUC-
TION. 
‘‘(a) IN GENERAL.—There shall be allowed as a de-
duction for the taxable year an amount equal to the dif-
ference of— 
‘‘(1) the amount paid or incurred by the tax-
payer for the taxable year in acquiring or con-
structing an energy efficient dwelling unit, over 
‘‘(2) the acquisition or construction cost, as the 
case may be, of a comparable dwelling unit. 
‘‘(b) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section— 
‘‘(1) ENERGY
EFFICIENT
DWELLING
UNIT.— 
The term ‘energy efficient dwelling unit’ means any 
dwelling unit described in section 45L(c)(2) which is 
used as the principal residence (within the meaning 
of section 121) of the taxpayer during the taxable 
year. 
‘‘(2) COST
OF
A
COMPARABLE
DWELLING 
UNIT.—The Secretary shall by regulation prescribe 
such methods for determining the acquisition or con-
struction cost of a comparable dwelling unit as are 
necessary to carry out the purposes of this section. 
‘‘(3) RECAPTURE.—The Secretary shall by reg-
ulation provide for such recapture of the benefit of 
any deduction allowed under subsection (a) as may 
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be necessary to prevent abuse of this section. Such 
rules shall provide exceptions to such recapture as 
may be appropriate, including (if applicable) in the 
case of a sale or exchange by reason of a change in 
place of employment, health, or, to the extend pro-
vided in regulations, unforseen circumstances.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for part VII of subchapter B of chapter 1 of such Code 
is amended by striking the item relating to section 224 
and inserting the following new items: 
‘‘Sec. 224. Energy efficient home purchase deduction. 
‘‘Sec. 225. Cross reference.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Æ 
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