[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3928 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 3928

   To amend the Internal Revenue Code of 1986 to allow a credit for 
qualified expenditures paid or incurred to replace certain wood stoves.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 28, 2005

 Mr. Murphy (for himself and Ms. Hart) 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 for 
qualified expenditures paid or incurred to replace certain wood stoves.

    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 Wood Stove Replacement Act of 
2005''.

SEC. 2. CREDIT FOR REPLACEMENT STOVES MEETING ENVIRONMENTAL STANDARDS 
              IN NONATTAINMENT AREAS.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to nonrefundable 
personal credits) is amended by inserting after section 25D the 
following new section:

``SEC. 25E. REPLACEMENT WOOD BURNING STOVES IN AREAS WITH POOR AIR 
              QUALITY.

    ``(a) Allowance of Credit.--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 qualified stove replacement 
expenditures paid or incurred by taxpayer during the taxable year.
    ``(b) Limitation.--The amount of the credit under subsection (a) 
with respect to the replacement of each noncompliant wood stove shall 
not exceed $500.
    ``(c) Qualified Stove Replacement Expenditures.--For purposes of 
this section--
            ``(1) In general.--The term `qualified stove replacement 
        expenditures' means an expenditure for the purchase and 
        installation of a compliant stove which--
                    ``(A) is installed in a dwelling unit which--
                            ``(i) is located in the United States in an 
                        area which, at the time of the installation, is 
                        designated by the Environmental Protection 
                        Agency as--
                                    ``(I) a non-attainment area for 
                                particulate matter less than 2.5 
                                micrometers in diameter, or
                                    ``(II) a non-attainment area for 
                                particulate matter less than 10 
                                micrometers in diameter, and
                            ``(ii) is used as a residence, and
                    ``(B) replaces a noncompliant wood stove used in 
                such dwelling unit.
        Such term includes expenditures for labor costs properly 
        allocable to the onsite preparation, assembly, or original 
        installation of the compliant stove.
            ``(2) Compliant stove.--The term `compliant stove' means a 
        wood burning stove which meets the requirements set forth in 
        the `Standards of Performance for New Residential Wood Heaters' 
        issued by the Environmental Protection Agency.
            ``(3) Noncompliant wood stove.--The term `noncompliant wood 
        stove' means any wood burning stove that is not a compliant 
        stove.
    ``(d) Joint Occupancy, Cooperative Housing Corporations, and When 
Expenditure Made.--Rules similar to the rules of paragraphs (4), (5), 
and (8) of section 25D(e) shall apply for purposes of this section.
    ``(e) Basis Adjustment.--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.
    ``(f) Termination.--This section shall not apply to expenditures 
made after December 31, 2008.''.
    (b) Conforming Amendments.--
            (1) Subsection (a) of section 1016 of such Code is amended 
        by striking ``and'' at the end of paragraph (36), by striking 
        the period at the end of paragraph (37) and inserting ``, 
        and'', and by adding at the end the following new paragraph:
            ``(38) in the case of property with respect to which a 
        credit has been allowed under 25E, to the extent provided in 
        section 25E(e).''.
            (2) 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 items relating to section 25D the following new item:

``Sec. 25E. Replacement stoves in areas with poor air quality.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to expenditures for stoves purchased after the date of enactment 
of this Act.
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