methods for calculating and verifying energy 
and power consumption and cost, based on Ap-
pendix G of Standard 90.1–2007 (or any subse-
quent version of such Appendix which is in ef-
fect at the time of the certification). 
‘‘(B) COMPUTER SOFTWARE.— 
‘‘(i) IN
GENERAL.—Any calculation 
under subparagraph (A) shall be prepared 
by qualified computer software. 
‘‘(ii) QUALIFIED
COMPUTER
SOFT-
WARE.—For purposes of subparagraph 
(A), the term ‘qualified computer software’ 
means software— 
‘‘(I) which is included (at the 
time of the certification) on the pub-
lished list of qualified software by the 
Department of Energy, 
‘‘(II) which provides such infor-
mation as the Secretary may require, 
including information that allows the 
user to document the energy efficiency 
features of the building and its pro-
jected annual energy costs, and 
‘‘(III) which provides standard-
ized outputs for building energy per-
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formance and, to the maximum extent 
practicable, relies on industry best 
practices and existing guidelines. 
‘‘(4) CERTIFICATIONS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
prescribe the manner and method for the mak-
ing of certifications under this subsection. 
‘‘(B) PROCEDURES.—The Secretary shall 
include as part of the certification process pro-
cedures for inspection and testing by qualified 
individuals described in subparagraph (C) to 
ensure compliance of buildings with energy-sav-
ings plans and targets. Such procedures shall 
be comparable, given the difference between 
commercial and residential buildings, to the re-
quirements in the Mortgage Industry National 
Accreditation Procedures for Home Energy 
Rating Systems. 
‘‘(C) QUALIFIED
INDIVIDUALS.—Individ-
uals qualified to determine compliance shall be 
only those individuals who are recognized by an 
organization certified by the Secretary for such 
purposes. For purposes of the preceding sen-
tence, an individual shall not be qualified with 
respect to a building unless the individual is— 
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‘‘(i) a registered professional engineer, 
‘‘(ii) not a direct employee of the 
owner of the commercial building or multi-
family building, and 
‘‘(iii) licensed in the State in which 
such building is located. 
‘‘(5) STANDARD
90.1–2007.—For purposes of 
this subsection, the term ‘Standard 90.1–2007’ 
means Standard 90.1–2007 of the American Society 
of Heating, Refrigerating, and Air Conditioning En-
gineers and the Illuminating Engineering Society of 
North America (or any subsequent version of such 
Standard which is in effect at the time of the certifi-
cation). 
‘‘(6) ALLOCATION OF CREDIT FOR TAX-EXEMPT 
PROPERTY.—Paragraphs (3) and (4) of section 
50(b), and clause (v) of subsection (c)(2)(B), shall 
not apply to those qualified rehabilitation expendi-
tures that are taken into account for purposes of 
certifying a building as a qualified energy efficient 
rehabilitated building under this subsection. Any re-
habilitation credit which is allowable by reason of 
the preceding sentence may be assigned to any other 
person, and such other person shall be treated as the 
taxpayer with respect thereto. 
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‘‘(7) COORDINATION.—The Secretary shall des-
ignate processes for tracking the numbers and loca-
tions of buildings claiming the rehabilitation by rea-
son of this subsection, as well as providing informa-
tion on projected and actual savings of energy and 
its value over time in coordination with the Depart-
ment of Energy. 
‘‘(8) REGULATIONS.—The Secretary, after con-
sultation with the Administrator of the Environ-
mental Protection Agency and the Secretary of the 
Interior, shall promulgate such regulations as may 
be necessary or appropriate to carry out the pur-
poses of this subsection, including regulations— 
‘‘(A) to take into account new technologies 
regarding energy efficiency and renewable en-
ergy for purposes of determining energy effi-
ciency and savings under this subsection, and 
‘‘(B) to provide for a recapture of the cred-
it determined under this subsection if the de-
sign referred to in paragraph (1)(B) is not fully 
implemented.’’. 
(c) SUBSTANTIAL REHABILITATION REQUIREMENT 
NOT TO APPLY TO ENERGY EFFICIENCY SUPPLEMENT.— 
Subparagraph (A) of section 47(c)(1) of such Code (defin-
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ing qualified rehabilitated building) is amended by adding 
at the end the following new flush sentence: 
‘‘Clause (i) shall not apply to so much of the 
rehabilitation credit as is determined under sub-
section (a)(3).’’. 
(d) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to property placed in service after the 
date of the enactment of this Act. 
(2) WAIVER OF SUBSTANTIAL REHABILITATION 
REQUIREMENT.—The waiver of the requirement of 
section 47(c)(1)(A)(i) of the Internal Revenue Code 
of 1986 made by section 47(f)(1)(A) of such Code, 
as added by this Act, shall apply with respect to re-
habilitations the physical work on which begins after 
the date of the enactment of this Act. 
SEC. 4. MODIFICATION TO DEFINITION OF QUALIFIED RE-
HABILITATION EXPENDITURE. 
(a) IN GENERAL.—Clause (i) of section 47(c)(2)(A) 
of the Internal Revenue Code of 1986 (relating to the defi-
nition of qualified rehabilitation expenditures) is amended 
by striking ‘‘or’’ at the end of subclause (III), by striking 
subclause (IV), and by inserting after subclause (III) the 
following new subclauses: 
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