‘‘(d) CERTIFICATION.—A certification described in
subsection (c)(3)(D) with respect to a dwelling shall be
made by the eligible contractor, a local building regulatory
authority, or a qualified energy consultant (such as a util-
ity or an accredited home energy rating system provider).
‘‘(e) BASIS ADJUSTMENT.—For purposes of this sub-
title, if a credit is allowed under this section for any ex-
penditure 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.
‘‘(f) TERMINATION.—Subsection (a) shall apply to
dwellings purchased during the period beginning on Janu-
ary 1, 1999, and ending on December 31, 2003.’’.
(b) CREDIT MADE PART OF GENERAL BUSINESS
CREDIT.—Subsection (b) of section 38 of such Code (re-
lating to current year business credit) is amended by strik-
ing ‘‘plus’’ at the end of paragraph (11), by striking the
period at the end of paragraph (12) and inserting ‘‘, plus’’,
and by adding at the end thereof the following new para-
graph:
‘‘(13) the new energy efficient home credit de-
termined under section 45D.’’.
(c) DENIAL OF DOUBLE BENEFIT.—Section 280C of
such Code (relating to certain expenses for which credits
are allowable) is amended by adding at the end thereof
the following new subsection:
‘‘(d) NEW ENERGY EFFICIENT HOME EXPENSES.—
No deduction shall be allowed for that portion of expenses
for a new energy efficient home otherwise allowable as a
deduction for the taxable year which is equal to the
amount of the credit determined for such taxable year
under section 45D.’’.
(d) CREDIT ALLOWED AGAINST REGULAR AND MIN-
IMUM TAX.—
(1) IN GENERAL.—Subsection (c) of section 38
of such Code (relating to limitation based on amount
of tax) is amended by redesignating paragraph (3)
as paragraph (4) and by inserting after paragraph
(2) the following new paragraph:
‘‘(3) SPECIAL RULES FOR NEW ENERGY EFFI-
CIENT HOME CREDIT.—
‘‘(A) IN GENERAL.—In the case of the new
energy efficient home credit—
‘‘(i) this section and section 39 shall
be applied separately with respect to the
credit, and
‘‘(ii) in applying paragraph (1) to the
credit—
‘‘(I) subparagraph (A) thereof
shall not apply, and
‘‘(II) the limitation under para-
graph (1) (as modified by subclause
(I)) shall be reduced by the credit al-
lowed under subsection (a) for the
taxable year (other than the new en-
ergy efficient home credit).
‘‘(B) NEW
ENERGY
EFFICIENT
HOME
CREDIT.—For purposes of this subsection, the
term ‘new energy efficient home credit’ means
the credit allowable under subsection (a) by rea-
son of section 45D.’’.
(2) CONFORMING AMENDMENT.—Subclause (II)
of section 38(c)(2)(A)(ii) of such Code is amended
by inserting ‘‘or the new energy efficient home cred-
it’’ after ‘‘employment credit’’.
(e) LIMITATION ON CARRYBACK.—Subsection (d) of
section 39 of such Code is amended by adding at the end
the following new paragraph:
‘‘(9) NO CARRYBACK OF NEW ENERGY EFFI-
CIENT HOME CREDIT BEFORE EFFECTIVE DATE.—
No portion of the unused business credit for any
taxable year which is attributable to the credit deter-
mined under section 45D may be carried back to
any taxable year ending before the date of the enact-
ment of section 45D.’’.
(f) DEDUCTION FOR CERTAIN UNUSED BUSINESS
CREDITS.—Subsection (c) of section 196 of such Code is
amended by striking ‘‘and’’ at the end of paragraph (7),
by striking the period at the end of paragraph (8) and
inserting ‘‘, and’’, and by adding after paragraph (8) the
following new paragraph:
‘‘(9) the new energy efficient home credit deter-
mined under section 45D.’’.
(g) CLERICAL AMENDMENT.—The table of sections
for subpart D of part IV of subchapter A of chapter 1
of such Code is amended by inserting after the item relat-
ing to section 45C the following new item:
‘‘Sec. 45D. New energy efficient home credit.’’.
(h) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years ending after
December 31, 1998.
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