[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2655 Introduced in Senate (IS)]







108th CONGRESS
  2d Session
                                S. 2655

To amend the Internal Revenue Code of 1986 to provide a credit for the 
          production of water and energy efficient appliances.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 14, 2004

   Mr. Smith 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 for the 
          production of water and 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 ``Water and Energy Efficient 
Appliances Act of 2004''.

SEC. 2. CREDIT FOR WATER AND 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. 45G. WATER AND ENERGY EFFICIENT APPLIANCE CREDIT.

    ``(a) Allowance of Credit.--
            ``(1) In general.--For purposes of section 38, the water 
        and energy efficient appliance credit determined under this 
        section for the taxable year is an amount equal to the sum of 
        the amounts determined under paragraph (2) for qualified water 
        and energy efficient appliances produced by the taxpayer during 
        the calendar year ending with or within the taxable year.
            ``(2) Amount.--The amount determined under this paragraph 
        for any category described in subsection (b)(2)(B) shall be the 
        product of the applicable amount for appliances in the category 
        and the eligible production for the category.
    ``(b) Applicable Amount; Eligible Production.--For purposes of 
subsection (a)--
            ``(1) Applicable amount.--The applicable amount is--
                    ``(A) $25, in the case of a dishwasher manufactured 
                with an EF of at least 0.65,
                    ``(B) $50, in the case of a dishwasher manufactured 
                with an EF of at least 0.69,
                    ``(C) $75, in the case of a clothes washer which is 
                manufactured with an MEF of at least a 1.80 and a WF of 
                no more than 7.5,
                    ``(D) $100, in the case of a refrigerator which 
                consumes at least 30 percent less kilowatt hours per 
                year than the energy conservation standards for 
                refrigerators promulgated by the Department of Energy 
                and effective on July 1, 2001, and
                    ``(E) $150, in the case of a clothes washer which 
                is manufactured with an MEF of at least a 1.80 and a WF 
                of no more than 5.5.
            ``(2) Eligible production.--
                    ``(A) In general.--The eligible production of each 
                category of qualified water and energy efficient 
                appliances is the excess of--
                            ``(i) the number of appliances in such 
                        category which are produced by the taxpayer 
                        during such calendar year, over
                            ``(ii) the average number of appliances in 
                        such category which were produced by the 
                        taxpayer during calendar years 2002, 2003, and 
                        2004.
                    ``(B) Categories.--For purposes of subparagraph 
                (A), the categories are--
                            ``(i) dishwashers described in paragraph 
                        (1)(A),
                            ``(ii) dishwashers described in paragraph 
                        (1)(B),
                            ``(iii) clothes washers described in 
                        paragraph (1)(C),
                            ``(iv) clothes washers described in 
                        paragraph (1)(E), and
                            ``(v) refrigerators described in paragraph 
                        (1)(D).
    ``(c) Limitation on Maximum Credit.--
            ``(1) In general.--The amount of credit allowed under 
        subsection (a) with respect to a taxpayer for all taxable years 
        shall not exceed $65,000,000, of which not more than 
        $15,000,000 may be allowed with respect to the credit 
        determined by using the applicable amount under subsections 
        (b)(1)(A) and (b)(1)(B).
            ``(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) Definitions.--For purposes of this section--
            ``(1) Qualified water and energy efficient appliance.--The 
        term `qualified water and energy efficient appliance' means--
                    ``(A) a dishwasher described in subparagraph (A) or 
                (B) or subsection (b)(1),
                    ``(B) a clothes washer described in subparagraph 
                (C) or (E) of subsection (b)(1), or
                    ``(C) a refrigerator described in subparagraph (D) 
                of subsection (b)(1).
            ``(2) Dishwasher.--The term `dishwasher' means a standard 
        residential dishwasher with a capacity of 8 or more place 
        settings plus 6 serving pieces.
            ``(3) Clothes washer.--The term `clothes washer' means a 
        residential clothes washer, including a residential style coin 
        operated washer.
            ``(4) Refrigerator.--The term `refrigerator' means an 
        automatic defrost refrigerator-freezer which has an internal 
        volume of at least 16.5 cubic feet.
            ``(5) EF.--The term `EF' means Energy Factor (as determined 
        by the Secretary of Energy).
            ``(6) MEF.--The term `MEF' means Modified Energy Factor (as 
        determined by the Secretary of Energy).
            ``(7) WF.--The term `WF' means Water Factor (as determined 
        by the Secretary of Energy).
    ``(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 1 
        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 to water and 
energy efficient appliances produced after December 31, 2010.''.
    (b) Credit Made Part of General Business Credit.--Section 38(b) of 
such Code (relating to current year business credit) is amended by 
striking ``plus'' at the end of paragraph (14), by striking the period 
at the end of paragraph (15) and inserting ``, plus'', and by adding at 
the end the following new paragraph:
            ``(16) the water and energy efficient appliance credit 
        determined under section 45G(a).''.
    (c) Limitation on Carryback.--Section 39(d) of such Code (relating 
to transition rules) is amended by adding at the end the following new 
paragraph:
            ``(11) No carryback of water and energy efficient appliance 
        credit before effective date.--No portion of the unused 
        business credit for any taxable year which is attributable to 
        the water and energy efficient appliance credit determined 
        under section 45G may be carried to a taxable year ending 
        before January 1, 2008.''.
    (d) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following new item:

                              ``Sec. 45G. Water and energy efficient 
                                        appliance credit.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to appliances produced after December 31, 2007, in taxable years 
ending after such date.
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