(at least 1.5 MEF for washers produced 
after 2003 and before 2008), or 
‘‘(ii) a refrigerator produced after 
2002 and before 2007 which consumes at 
least 15 percent less kWh per year (at 
least 20 percent less kWh per year for re-
frigerators produced in 2007) than such 
energy conservation standards, and 
‘‘(C) $150, in the case of a refrigerator 
which consumes at least 20 percent less kWh 
per year than such energy conservation stand-
ards and is produced after 2002 and before 
2007. 
‘‘(2) ELIGIBLE PRODUCTION.—
‘‘(A) IN GENERAL.—The eligible produc-
tion of each category of qualified energy effi-
cient appliances is the excess of—
‘‘(i) the number of appliances in such 
category which are produced by the tax-
payer during such calendar year, over 
‘‘(ii) the average number of appliances 
in such category which were produced by 
the taxpayer during calendar years 2000, 
2001, and 2002.
‘‘(B) CATEGORIES.—For purposes of sub-
paragraph (A), the categories are—
‘‘(i) clothes washers described in para-
graph (1)(A)(i), 
‘‘(ii) clothes washers described in 
paragraph (1)(B)(i), 
‘‘(iii) refrigerators described in para-
graph (1)(A)(ii), 
‘‘(iv) refrigerators described in para-
graph (1)(B)(ii), and 
‘‘(v) refrigerators described in para-
graph (1)(C). 
‘‘(C) SPECIAL
RULE
FOR
2003
PRODUC-
TION.—For purposes of determining eligible 
production for calendar year 2003—
‘‘(i) only production after the date of 
enactment of this section shall be taken 
into account under subparagraph (A)(i), 
and 
‘‘(ii) the amount taken into account 
under subparagraph (A)(ii) shall be an 
amount which bears the same ratio to the 
amount which would (but for this subpara-
graph) be taken into account under sub-
paragraph (A)(ii) as—
‘‘(I) the number of days in cal-
endar year 2003 after the date of en-
actment of this section, bears to 
‘‘(II) 365. 
‘‘(c) LIMITATION ON MAXIMUM CREDIT.—
‘‘(1) IN GENERAL.—The maximum amount of 
credit allowed under subsection (a) with respect to 
a taxpayer for all taxable years shall be $60,000,000 
except that not more than $30,000,000 shall be al-
lowed for production of any combination of clothes 
washers produced with a 1.26 MEF (described in 
subsection (b)(1)(A)(i)) and refrigerators described 
in subsection (b)(1)(A)(ii). 
‘‘(2) 
LIMITATION
BASED
ON
GROSS
RE-
CEIPTS.—The credit allowed under subsection (a) 
with respect to a taxpayer for the taxable year shall 
not exceed an amount equal to 2 percent of the aver-
age annual gross receipts of the taxpayer for the 3 
taxable years preceding the taxable year in which 
the credit is determined. 
‘‘(3) GROSS RECEIPTS.—For purposes of this 
subsection, the rules of paragraphs (2) and (3) of 
section 448(c) shall apply. 
‘‘(d) DEFINITIONS.—For purposes of this section—
‘‘(1) QUALIFIED
ENERGY
EFFICIENT
APPLI-
ANCE.—The term ‘qualified energy efficient appli-
ance’ means—
‘‘(A) a clothes washer described in sub-
paragraph (A)(i) or (B)(i) of subsection (b)(1), 
or 
‘‘(B) a refrigerator described in subpara-
graph (A)(ii), (B)(ii) or (C) of subsection 
(b)(1). 
‘‘(2) CLOTHES
WASHER.—The term ‘clothes 
washer’ means a residential clothes washer, includ-
ing a residential style coin operated washer. 
‘‘(3) REFRIGERATOR.—The term ‘refrigerator’ 
means an automatic defrost refrigerator-freezer 
which has an internal volume of at least 16.5 cubic 
feet. 
‘‘(4) MEF.—The term ‘MEF’ means Modified 
Energy Factor (as determined by the Secretary of 
Energy). 
‘‘(e) SPECIAL RULES.—
‘‘(1) IN GENERAL.—Rules similar to the rules 
of subsections (c), (d), and (e) of section 52 shall 
apply for purposes of this section. 
‘‘(2) AGGREGATION RULES.—All persons treat-
ed as a single employer under subsection (a) or (b)
of section 52 or subsection (m) or (o) of section 414 
shall be treated as 1 person for purposes of sub-
section (a). 
‘‘(f) VERIFICATION.—The taxpayer shall submit such 
information or certification as the Secretary, in consulta-
tion with the Secretary of Energy, determines necessary 
to claim the credit amount under subsection (a).’’. 
(b) LIMITATION ON CARRYBACK.—Section 39(d) of 
the Internal Revenue Code of 1986 (relating to transition 
rules) is amended by adding at the end the following new 
paragraph: 
‘‘(11) NO CARRYBACK OF ENERGY EFFICIENT 
APPLIANCE CREDIT BEFORE EFFECTIVE DATE.—No 
portion of the unused business credit for any taxable 
year which is attributable to the energy efficient ap-
pliance credit determined under section 45G may be 
carried to a taxable year ending before January 1, 
2003.’’. 
(c) CONFORMING AMENDMENT.—Section 38(b) of 
the Internal Revenue Code of 1986 (relating to general 
business credit) is amended by striking ‘‘plus’’ at the end 
of paragraph (14), by striking the period at the end of 
paragraph (15) and inserting ‘‘, plus’’, and by adding at 
the end the following new paragraph:
‘‘(16) the energy efficient appliance credit de-
termined under section 45G(a).’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following new item:
‘‘Sec. 45G. Energy efficient appliance credit.’’.
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to appliances produced after De-
cember 31, 2002, in taxable years ending after such date.
Æ