Title: Home Energy Savings Act
Policy area: Taxation

Summary:
Home Energy Savings Act
This bill reinstates and extends the tax credit for nonbusiness energy property through 2019. It also increases the rate of such credit from 10% to 15% and the amount of its lifetime limitation.
The bill revises limitations on such credit relating to insulation material, windows, and the Energy Star program.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2588 Introduced in Senate (IS)]

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116th CONGRESS
  1st Session
                                S. 2588

  To amend the Internal Revenue Code of 1986 to extend and update the 
                credit for nonbusiness energy property.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 26, 2019

Ms. Hassan (for herself and Ms. Collins) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to extend and update the 
                credit for nonbusiness energy property.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Home Energy Savings Act''.

SEC. 2. EXTENSION OF CREDIT FOR NONBUSINESS ENERGY PROPERTY.

    (a) In General.--Subsection (g)(2) of section 25C of the Internal 
Revenue Code of 1986 is amended by striking ``December 31, 2017'' and 
inserting ``December 31, 2019''.
    (b) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2017.

SEC. 3. UPDATING CREDIT FOR NONBUSINESS ENERGY PROPERTY.

    (a) In General.--Section 25C of the Internal Revenue Code of 1986, 
as amended by section 2, is amended--
            (1) in subsection (a)(1), by striking ``10 percent'' and 
        inserting ``15 percent'',
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) by striking ``$500'' and inserting 
                        ``$1,200'', and
                            (ii) by striking ``December 31, 2005'' and 
                        inserting ``December 31, 2019'', and
                    (B) by striking paragraphs (2) and (3) and 
                inserting the following:
            ``(2) Limitation on insulation material or system.--In the 
        case of amounts paid or incurred for components described in 
        subsection (c)(3)(A) by any taxpayer for any taxable year, the 
        credit allowed under this section with respect to such amounts 
        for such year shall not exceed the excess (if any) of $600 over 
        the aggregate credits allowed under this section with respect 
        to such amounts for all prior taxable years ending after 
        December 31, 2019.
            ``(3) Limitation on windows.--
                    ``(A) In general.--
                            ``(i) Energy star most efficient.--In the 
                        case of amounts paid or incurred by any 
                        taxpayer for any taxable year for components 
                        described in subsection (c)(3)(B) which meet 
                        the most efficient certification under 
                        applicable Energy Star program requirements, 
                        the credit allowed under this section with 
                        respect to such amounts for such year shall not 
                        exceed the excess (if any) of $600 over the 
                        aggregate credits allowed under this section 
                        with respect to such amounts for all prior 
                        taxable years ending after December 31, 2019.
                            ``(ii) Energy star.--In the case of amounts 
                        paid or incurred by any taxpayer for any 
                        taxable year for components described in 
                        subsection (c)(3)(B) which do not meet the most 
                        efficient certification under applicable Energy 
                        Star program requirements, the credit allowed 
                        under this section with respect to such amounts 
                        for such year shall not exceed the excess (if 
                        any) of $200 over the aggregate credits allowed 
                        under this section with respect to such amounts 
                        for all prior taxable years ending after 
                        December 31, 2019.
                    ``(B) Election.--
                            ``(i) In general.--For purposes of any 
                        amounts paid or incurred by any taxpayer for 
                        components described in subsection (c)(3)(B), 
                        the credit allowed under this section shall 
                        only be allowed for components described in 
                        clause (i) of subparagraph (A) or clause (ii) 
                        of such subparagraph, but not both, as elected 
                        by the taxpayer during the first taxable year 
                        in which such credit is being claimed by the 
                        taxpayer.
                            ``(ii) Irrevocability.--The Secretary 
                        shall, through such rules, regulations, and 
                        procedures as are determined appropriate, 
                        establish procedures for making an election 
                        under this subparagraph, which shall require 
                        that--
                                    ``(I) any election made by the 
                                taxpayer shall be irrevocable, and
                                    ``(II) such election shall remain 
                                in effect for all subsequent taxable 
                                years.
            ``(4) Limitation on doors.--In the case of amounts paid or 
        incurred for components described in subsection (c)(3)(C) by 
        any taxpayer for any taxable year, the credit allowed under 
        this section with respect to such amounts for such year shall 
        not exceed--
                    ``(A) the excess (if any) of $500 over the 
                aggregate credits allowed under this section with 
                respect to such amounts for all prior taxable years 
                ending after December 31, 2019, or
                    ``(B) $250 for each exterior door.
            ``(5) Limitation on residential energy property 
        expenditures.--The amount of the credit allowed under this 
        section by reason of subsection (a)(2) shall not exceed--
                    ``(A) in the case of any energy-efficient building 
                property--
                            ``(i) for any item of property described in 
                        subparagraph (A), (B), or (C) of subsection 
                        (d)(3), $600, and
                            ``(ii) for any item of property described 
                        in subparagraph (D) or (E) of such subsection, 
                        $400, and
                    ``(B) in the case of any qualified natural gas, 
                propane, or oil furnace or hot water boiler (as defined 
                in subsection (d)(4)), an amount equal to--
                            ``(i) $600 for a hot water boiler, and
                            ``(ii) in the case of a furnace, an amount 
                        equal to the sum of--
                                    ``(I) $300, plus
                                    ``(II) if the taxpayer is 
                                converting from a non-condensing 
                                furnace to a condensing furnace, 
                                $300.'',
            (3) in subsection (c)--
                    (A) in paragraph (2)--
                            (i) by striking subparagraphs (A) and (B) 
                        and inserting the following:
                    ``(A) applicable Energy Star program requirements, 
                in the case of an exterior window, a skylight, or an 
                exterior door, and'',
                            (ii) by redesignating subparagraph (C) as 
                        subparagraph (B), and
                            (iii) in subparagraph (B), as so 
                        redesignated, by striking ``2009 
                        International'' and all that follows through 
                        ``Act of 2009'' and inserting ``2015 IECC (as 
                        defined in section 45L(b)(5))'',
                    (B) in paragraph (3)--
                            (i) in subparagraph (B), by adding ``and'' 
                        at the end,
                            (ii) in subparagraph (C), by striking ``, 
                        and'' and inserting a period, and
                            (iii) by striking subparagraph (D), and
                    (C) by adding at the end the following new 
                paragraph:
            ``(5) Labor costs.--The term `qualified energy efficiency 
        improvements' includes expenditures for labor costs properly 
        allocable to the onsite preparation, assembly, or original 
        installation of any energy efficient building envelope 
        component.'',
            (4) in subsection (d)--
                    (A) in paragraph (2)(A)--
                            (i) in clause (i), by adding ``or'' at the 
                        end,
                            (ii) in clause (ii), by striking ``, or'' 
                        and inserting a period, and
                            (iii) by striking clause (iii),
                    (B) in paragraph (3)--
                            (i) by striking subparagraph (A) and 
                        inserting the following:
                    ``(A) an electric heat pump water heater which, in 
                the standard Department of Energy test procedure, 
                yields a uniform energy factor of at least 3.0,'',
                            (ii) in subparagraph (B), by striking 
                        ``January 1, 2009'' and inserting ``the date of 
                        enactment of the Home Energy Savings Act'',
                            (iii) in subparagraph (C), by striking 
                        ``January 1, 2009'' and inserting ``the date of 
                        enactment of the Home Energy Savings Act'',
                            (iv) by striking subparagraph (D) and 
                        inserting the following:
                    ``(D) a natural gas, propane, or oil water heater 
                which, in the standard Department of Energy test 
                procedure, yields--
                            ``(i) in the case of a storage tank water 
                        heater--
                                    ``(I) in the case of a medium-draw 
                                water heater, a uniform energy factor 
                                of not less than 0.78, and
                                    ``(II) in the case of a high-draw 
                                water heater, a uniform energy factor 
                                of not less than 0.80, and
                            ``(ii) in the case of a tankless water 
                        heater--
                                    ``(I) in the case of a medium-draw 
                                water heater, a uniform energy factor 
                                of not less than 0.87, and
                                    ``(II) in the case of a high-draw 
                                water heater, a uniform energy factor 
                                of not less than 0.90, and'', and
                            (v) in subparagraph (E), by striking ``of 
                        at least 75 percent'' and inserting the 
                        following: ``(as determined pursuant to the 
                        applicable list published by the Environmental 
                        Protection Agency for certified wood stoves, 
                        hydronic heaters, or forced-air furnaces) of at 
                        least--
                            ``(i) in the case of any stove placed in 
                        service before January 1, 2021, 73 percent, and
                            ``(ii) in the case of any stove placed in 
                        service after December 31, 2020, 75 percent.'',
                    (C) in paragraph (4), by striking ``not less than 
                95'' and inserting the following: ``not less than--
                    ``(A) in the case of a furnace, 97 percent, and
                    ``(B) in the case of a hot water boiler, 95 
                percent.'',
                    (D) by striking paragraph (5), and
                    (E) by redesignating paragraph (6) as paragraph 
                (5),
            (5) in subsection (e), by adding the following new 
        paragraphs at the end:
            ``(4) Installation standards.--The terms `energy efficient 
        building envelope component' and `qualified energy property' 
        shall not include any components or property which are not 
        installed according to any applicable Air Conditioning 
        Contractors of America Quality Installation standards which are 
        in effect at the time that such components or property are 
        placed in service.
            ``(5) Replacement of terminated standards.--In the case of 
        any standard, requirement, or criteria applicable to any energy 
        efficient building envelope component or qualified energy 
        property which is terminated after the date of enactment of the 
        Home Energy Savings Act, the Secretary, in consultation with 
        the Secretary of Energy, shall identify a similar standard, 
        requirement, or criteria for purposes of determining the 
        eligibility of any such component or property for purposes of 
        credit allowed under this section.'', and
            (6) in subsection (g)(2), by striking ``December 31, 2019'' 
        and inserting ``December 31, 2026''.
    (b) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2019.
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