[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2939 Introduced in Senate (IS)]







106th CONGRESS
  2d Session
                                S. 2939

To amend the Internal Revenue Code of 1986 to provide a credit against 
                  tax for energy efficient appliances.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 26, 2000

  Mr. Grassley (for himself, Mr. Rockefeller, Mr. Jeffords, and Mrs. 
   Lincoln) 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 provide a credit against 
                  tax for energy efficient appliances.

    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 ``Resource Efficient Appliance 
Incentives Act''.

SEC. 2. TAX CREDIT FOR ENERGY EFFICIENT APPLIANCES.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business-related 
credits) is amended by adding at the end the following new section:

``SEC. 45D. ENERGY EFFICIENT APPLIANCE CREDIT.

    ``(a) General Rule.--For purposes of section 38, the energy 
efficient appliance credit determined under this section for the 
taxable year is an amount equal to the applicable amount determined 
under subsection (b) with respect to qualified energy efficient 
appliances produced by the taxpayer during the calendar year ending 
with or within the taxable year.
    ``(b) Applicable Amount.--For purposes of subsection (a), the 
applicable amount determined under this subsection with respect to a 
taxpayer is the sum of--
            ``(1) in the case of an energy efficient clothes washer 
        described in subsection (d)(2)(A) or an energy efficient 
        refrigerator described in subsection (d)(3)(B)(i), an amount 
        equal to--
                    ``(A) $50, multiplied by
                    ``(B) the number of such washers and refrigerators 
                produced by the taxpayer during such calendar year, and
            ``(2) in the case of an energy efficient clothes washer 
        described in subsection (d)(2)(B) or an energy efficient 
        refrigerator described in subsection (d)(3)(B)(ii), an amount 
        equal to--
                    ``(A) $100, multiplied by
                    ``(B) the number of such washers and refrigerators 
                produced by the taxpayer during such calendar year.
    ``(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--
                    ``(A) $30,000,000 with respect to the credit 
                determined under subsection (b)(1), and
                    ``(B) $30,000,000 with respect to the credit 
                determined under subsection (b)(2).
            ``(2) Limitation based on gross receipts.--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 average 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) Qualified Energy Efficient Appliance.--For purposes of this 
section--
            ``(1) In general.--The term `qualified energy efficient 
        appliance' means--
                    ``(A) an energy efficient clothes washer, or
                    ``(B) an energy efficient refrigerator.
            ``(2) Energy efficient clothes washer.--The term `energy 
        efficient clothes washer' means a residential clothes washer, 
        including a residential style coin operated washer, which is 
        manufactured with--
                    ``(A) a 1.26 Modified Energy Factor (referred to in 
                this paragraph as `MEF') (as determined by the 
                Secretary of Energy), or
                    ``(B) a 1.42 MEF (as determined by the Secretary of 
                Energy) (1.5 MEF for calendar years beginning after 
                2004).
            ``(3) Energy efficient refrigerator.--The term `energy 
        efficient refrigerator' means an automatic defrost 
        refrigerator-freezer which--
                    ``(A) has an internal volume of at least 16.5 cubic 
                feet, and
                    ``(B) consumes--
                            ``(i) 10 percent less kw/hr/yr than the 
                        energy conservation standards promulgated by 
                        the Department of Energy for such refrigerator 
                        for 2001, or
                            ``(ii) 15 percent less kw/hr/yr than such 
                        energy conservation standards.
    ``(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 treated as a single 
        employer under subsection (a) or (b) of section 52 or 
        subsection (m) or (o) of section 414 shall be treated as one 
        person for purposes of subsection (a).
    ``(f) Verification.--The taxpayer shall submit such information or 
certification as the Secretary, in consultation with the Secretary of 
Energy, determines necessary to claim the credit amount under 
subsection (a).
    ``(g) Termination.--This section shall not apply--
            ``(1) with respect to energy efficient refrigerators 
        described in subsection (d)(3)(B)(i) produced in calendar years 
        beginning after 2004, and
            ``(2) with respect to all other qualified energy efficient 
        appliances produced in calendar years beginning after 2006.''.
    (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:
            ``(9) 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 appliance credit determined under section 45D may be 
        carried to a taxable year ending before the date of the 
        enactment of section 45D.''.
    (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 (11), by striking the period 
at the end of paragraph (12) and inserting ``, plus'', and by adding at 
the end the following new paragraph:
            ``(13) the energy efficient appliance credit determined 
        under section 45D(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 inserting after the item relating to section 45C the 
following new item:

                              ``Sec. 45D. Energy efficient appliance 
                                        credit.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2000.
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