[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 686 Introduced in Senate (IS)]
107th CONGRESS
1st Session
S. 686
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
April 4, 2001
Mrs. Lincoln (for herself, Mr. Allard, and Mr. Grassley) 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. 45E. 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 2005, and
``(2) with respect to all other qualified energy efficient
appliances produced in calendar years beginning after 2007.''.
(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:
``(10) 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 45E may be
carried to a taxable year ending before the date of the
enactment of section 45E.''.
(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 (12), by striking the period
at the end of paragraph (13) and inserting ``, plus'', and by adding at
the end the following new paragraph:
``(14) the energy efficient appliance credit determined
under section 45E(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 45D the
following new item:
``Sec. 45E. Energy efficient appliance
credit.''.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2001.
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