[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5339 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 5339

 To amend the Internal Revenue Code of 1986 to allow a credit against 
           income tax for certain energy-efficient property.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 28, 2000

 Mrs. Johnson of Connecticut (for herself, Mr. McNulty, Mr. Boehlert, 
 Mr. Larson, and Mr. Hunter) introduced the following bill; which was 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to allow a credit against 
           income tax for certain energy-efficient property.

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

SECTION 1. CREDIT FOR CERTAIN ENERGY-EFFICIENT PROPERTY.

    (a) Business Property.--
            (1) In general.--Subparagraph (A) of section 48(a)(3) of 
        the Internal Revenue Code of 1986 (defining energy property) is 
        amended by striking ``or'' at the end of clause (i), by adding 
        ``or'' at the end of clause (ii), and by inserting after clause 
        (ii) the following new clause:
                            ``(iii) energy-efficient building 
                        property,''.
            (2) Energy-Efficient Building Property.--Subsection (a) of 
        section 48 of such Code is amended by redesignating paragraphs 
        (4) and (5) as paragraphs (5) and (6), respectively, and by 
        inserting after paragraph (3) the following new paragraph:
            ``(4) Energy-efficient building property.--For purposes of 
        this subsection--
                    ``(A) In general.--The term `energy-efficient 
                building property' means a fuel cell power plant that--
                            ``(i) generates electricity using an 
                        electrochemical process,
                            ``(ii) has an electricity-only generation 
                        efficiency greater than 30 percent, and
                            ``(iii) has a minimum generating capacity 
                        of 5 kilowatts.
                    ``(B) Limitation.--In the case of energy-efficient 
                building property placed in service during the taxable 
                year, the credit under subsection (a) for such year may 
                not exceed $500 for each kilowatt of capacity.
                    ``(C) Fuel cell power plant.--The term `fuel cell 
                power plant' means an integrated system comprised of a 
                fuel cell stack assembly, a fuel processing unit, and 
                associated balance of plant components that converts a 
                fuel into electricity using electrochemical means.
                    ``(D) Termination.--Such term shall not include any 
                property placed in service after December 31, 2005.''
            (3) Effective date.--The amendments made by this subsection 
        shall apply to property placed in service after December 31, 
        2000, under rules similar to the rules of section 48(m) of the 
        Internal Revenue Code of 1986 (as in effect on the day before 
        the date of the enactment of the Revenue Reconciliation Act of 
        1990).
    (b) Nonbusiness Property.--
            (1) In general.--Subpart A of part IV of subchapter A of 
        chapter 1 of such Code (relating to nonrefundable personal 
        credits) is amended by inserting after section 25A the 
        following new section:

``SEC. 25B. NONBUSINESS ENERGY-EFFICIENT BUILDING PROPERTY.

    ``(a) In General.--In the case of an individual, there shall be 
allowed as a credit against the tax imposed by this chapter for the 
taxable year an amount equal to the nonbusiness energy-efficient 
building property expenditures which are paid or incurred during such 
year.
    ``(b) Nonbusiness Energy-Efficient Building Property 
Expenditures.--For purposes of this section--
            ``(1) In general.--The term `nonbusiness energy-efficient 
        building property expenditures' means expenditures made by the 
        taxpayer for nonbusiness energy-efficient building property 
        installed on or in connection with a dwelling unit--
                    ``(A) which is located in the United States, and
                    ``(B) which is used by the taxpayer as a residence.
        Such term includes expenditures for labor costs properly 
        allocable to the onsite preparation, assembly, or original 
        installation of the property.
            ``(2) Nonbusiness energy-efficient building property.--The 
        term `nonbusiness energy-efficient building property' means 
        energy-efficient building property (as defined in section 
        48(a)(4)) if--
                    ``(A) the original use of such property commences 
                with the taxpayer, and
                    ``(B) such property meets the standards (if any) 
                applicable to such property under section 48(a)(3).
    ``(c) Special Rules.--
            ``(1) Tenant-stockholder in cooperative housing 
        corporation.--In the case of an individual who is a tenant-
        stockholder (as defined in section 216) in a cooperative 
        housing corporation (as defined in such section), such 
        individual shall be treated as having made his tenant-
        stockholder's proportionate share (as defined in section 
        216(b)(3)) of any expenditures of such corporation.
            ``(2) Condominiums.--
                    ``(A) In general.--In the case of an individual who 
                is a member of a condominium management association 
                with respect to a condominium which he owns, such 
                individual shall be treated as having made his 
                proportionate share of any expenditures of such 
                association.
                    ``(B) Condominium management association.--For 
                purposes of this paragraph, the term `condominium 
                management association' means an organization which 
                meets the requirements of paragraph (1) of section 
                528(c) (other than subparagraph (E) thereof) with 
                respect to a condominium project substantially all of 
                the units of which are used as residences.
            ``(3) Allocation in certain cases.--If less than 80 percent 
        of the use of an item is for nonbusiness purposes, only that 
        portion of the expenditures for such item which is properly 
        allocable to use for nonbusiness purposes shall be taken into 
        account.
            ``(4) When expenditure made; amount of expenditure.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), an expenditure with respect to an 
                item shall be treated as made when the original 
                installation of the item is completed.
                    ``(B) Expenditures part of building construction.--
                In the case of an expenditure in connection with the 
                construction or reconstruction of a structure, such 
                expenditure shall be treated as made when the original 
                use of the constructed or reconstructed structure by 
                the taxpayer begins.
                    ``(C) Amount.--The amount of any expenditure shall 
                be the cost thereof.
            ``(5) Property financed by subsidized energy financing.--
        For purposes of determining the amount of nonbusiness energy-
        efficient building property expenditures made by any individual 
        with respect to any dwelling unit, there shall not be taken in 
        to account expenditures which are made from subsidized energy 
        financing (as defined in section 48(a)(4)(A)).
    ``(d) Basis Adjustments.--For purposes of this subtitle, if a 
credit is allowed under this section for any expenditure with respect 
to any property, the increase in the basis of such property which would 
(but for this subsection) result from such expenditure shall be reduced 
by the amount of the credit so allowed.
    ``(e) Termination.--This section shall not apply to any expenditure 
made after December 31, 2005.''
            (2) Conforming Amendments.--
                    (A) Subsection (a) of section 1016 of such Code is 
                amended by striking ``and'' at the end of paragraph 
                (26), by striking the period at the end of paragraph 
                (27) and inserting ``; and'', and by adding at the end 
                the following new paragraph:
            ``(28) to the extent provided in section 25B(d), in the 
        case of amounts with respect to which a credit has been allowed 
        under section 25B.''.
                    (B) The table of sections for subpart A of part IV 
                of subchapter A of chapter 1 of such Code is amended by 
                inserting after the item relating to section 25A the 
                following new item:

                              ``Sec. 25B. Nonbusiness energy-efficient 
                                        building property.''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to expenditures made after December 31, 2000.
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