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:

45J.

Energy efficient appliance credit

(a)

General rule

(1)

In general

For purposes of section 38, the energy efficient appliance credit determined under this section for the taxable year is an amount equal to the sum of the credit amounts determined for each type of qualified energy efficient appliance. (2)

Credit amounts

The credit amount determined for a type of qualified energy efficient appliance is the sum of— (A)the applicable amount determined under subsection (b) with respect to a qualified energy efficient appliance, multiplied by (B)the number of such appliances produced by the taxpayer in the United States during the calendar year ending with or within the taxable year. (b)

Applicable amount; eligible production

For purposes of subsection (a)— (1)

Applicable amount

(A)

In general

The applicable amount determined under this subsection is the amount determined under the following table: Qualified Energy Efficient ApplianceProduced in calendar year—Applicable amount is—Clothes washer with at least 1.42 MEF2005$50Clothes washer with MEF at least Energy Star level in effect in 20072005, 2006, or 2007$100Clothes washer with MEF at least Energy Star level in effect in 20102008, 2009, or 2010$150Dishwasher with EF at least Energy Star level in effect in 20072006, 2007, 2008, or 2009$75Refrigerator consuming at least 15 percent less kilowatt hours per year than 2001 energy conservation standard2005 or 2006$100Refrigerator consuming at least 20 percent less kilowatt hours per year than 2001 energy conservation standard2005, 2006, 2007, 2008, or 2009$150Refrigerator consuming at least 25 percent less kilowatt hours per year than 2001 energy conservation standard2010$150

(B)

Other appliances

In the case of any appliance not described in the table in subparagraph (A), the applicable amount shall be zero. (2)

Eligible production

(A)

In general

The eligible production in a calendar year with respect to each type of energy efficient appliance described in the table in paragraph (1) is the excess of— (i)the number of appliances of such type which meet the energy efficiency described for such type in the table in paragraph (1) and which are produced by the taxpayer during such calendar year, over (ii)the average number of appliances of such type which meet the energy efficiency described for such type in the table in paragraph (1) and which were produced by the taxpayer (or any predecessor) during the preceding 3-calendar year period. (B)

Special rule for 2005 production

For purposes of determining eligible production for calendar year 2005— (i)only production after the date of enactment of this section shall be taken into account under subparagraph (A)(i), and (ii)the amount taken into account under subparagraph (A)(ii) shall be an amount which bears the same ratio to the amount which would (but for this subparagraph) be taken into account under subparagraph (A)(ii) as— (I)the number of days in calendar year 2005 after the date of enactment of this section, bears to (II)365. (c)

Limitations

(1)

Aggregate credit amount allowed

The aggregate amount of credit allowed under subsection (a) with respect to a taxpayer for all taxable years shall not exceed $75,000,000, reduced by the amount of the credit allowed under subsection (a) to the taxpayer (or any predecessor) for any prior taxable year. (2)

Amount allowed for certain appliances

(A)

In general

In the case of appliances described in subparagraph (B), the aggregate amount of the credit allowed under subsection (a) with respect to a taxpayer for all taxable years shall not exceed $35,000,000, reduced by the amount of the credit allowed under subsection (a) to the taxpayer (or any predecessor) for any prior taxable year with respect to such appliances. (B)

Appliances described

The appliances described in this subparagraph are— (i)clothes washers with at least a 1.42 MEF, as described in the table in subsection (b)(1), (ii)refrigerators which consume at least 15 percent less kilowatt hours per year than applicable energy conservation standards, as described in such table, and (iii)dishwashers described in such table. (3)

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. (4)

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 energy efficient appliance

The term qualified energy efficient appliance means an appliance described in the table in subsection (b)(1). (2)

Clothes washer

The term clothes washer means a residential model clothes washer, including a residential style coin operated washer. (3)

Refrigerator

The term refrigerator means a residential model automatic defrost refrigerator-freezer which has an internal volume of at least 16.5 cubic feet. (4)

Dishwasher

The term dishwasher means a residential dishwasher subject to the energy conservation standards established by the Department of Energy. (5)

MEF

The term MEF means the modified energy factor, as determined by the Secretary of Energy. (6)

Energy factor

The term EF means the energy factor established by the Department of Energy for compliance with the Federal energy conservation standards. (7)

Produced

The term produced includes manufactured. (8)

2001 energy conservation standard

The term 2001 energy conservation standard means the energy conservation standards promulgated by the Department of Energy and effective July 1, 2001. (e)

Special rules

For purposes of this section— (1)

In general

Rules similar to the rules of subsections (c), (d), and (e) of section 52 shall apply. (2)

Controlled group

(A)

In general

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 a single producer. (B)

Inclusion of foreign corporations

For purposes of subparagraph (A), in applying subsections (a) and (b) of section 52 to this section, section 1563 shall be applied without regard to subsection (b)(2)(C) thereof. (3)

Verification

No amount shall be allowed as a credit under subsection (a) with respect to which the the taxpayer has not submitted such information or certification as the Secretary, in consultation with the Secretary of Energy, determines necessary.

(b)

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 (18), by striking the period at the end of paragraph (19) and inserting , plus, and by adding at the end the following new paragraph:

(20)the energy efficient appliance credit determined under section 45J(a).

(c)

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 adding at the end the following new item:

Sec. 45J. Energy efficient appliance credit

(d)

Effective date

The amendments made by this section shall apply to appliances produced after December 31, 2004, in taxable years ending after such date.