[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2105 Introduced in Senate (IS)]








109th CONGRESS
  1st Session
                                S. 2105

  To amend the Internal Revenue Code of 1986 to modify the credit for 
    nonbusiness energy property so that the amount of the credit is 
   determined based on the amount of energy savings achieved by the 
                               taxpayer.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 15, 2005

  Mr. Coleman 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 modify the credit for 
    nonbusiness energy property so that the amount of the credit is 
   determined based on the amount of energy savings achieved by the 
                               taxpayer.

    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 ``Home Energy Savings Incentives Act 
of 2005''.

SEC. 2. MODIFICATION OF CREDIT FOR CERTAIN NONBUSINESS ENERGY PROPERTY.

    (a) In General.--Section 25C of the Internal Revenue Code of 1986 
is amended to read as follows:

``SEC. 25C. NONBUSINESS ENERGY PROPERTY.

    ``(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 sum of--
            ``(1) $10 for each therm of certified natural gas savings 
        attributable to qualified energy efficiency expenditures made 
        during the taxable year, and
            ``(2) $0.65 for each kilowatt hour of certified electricity 
        savings attributable to qualified energy efficiency 
        expenditures made during the taxable year.
    ``(b) Lifetime Limitation.--The credit allowed under this section 
with respect to any taxpayer for any taxable year shall not exceed the 
excess (if any) of $5,000 over the aggregate credits allowed under this 
section with respect to such taxpayer for all prior taxable years.
    ``(c) Qualified Energy Efficiency Expenditures.--For purposes of 
this section--
            ``(1) In general.--The term `qualified energy efficiency 
        expenditures' means expenditures made by the taxpayer, after 
        consultation with a qualified individual described in 
        subsection (d)(2)(C), for the improvement of a dwelling unit of 
        the taxpayer located in the United States and used by the 
        taxpayer as the taxpayer's principal residence.
            ``(2) No double benefit for certain expenditures.--The term 
        `qualified energy efficiency expenditures' shall not include 
        any expenditure for which a deduction or credit is otherwise 
        allowed under this chapter.
            ``(3) Principal residence.--
                    ``(A) In general.--The term `principal residence' 
                has the same meaning as when used in section 121, 
                except that--
                            ``(i) no ownership requirement shall be 
                        imposed, and
                            ``(ii) the period for which a building is 
                        treated as used as a principal residence shall 
                        also include the 60-day period ending on the 
                        1st day on which it would (but for this 
                        subparagraph) first be treated as used as a 
                        principal residence.
                    ``(B) Manufactured housing.--The term `residence' 
                shall include a dwelling unit which is a manufactured 
                home conforming to Federal Manufactured Home 
                Construction and Safety Standards (24 C.F.R. 3280).
    ``(d) Certified Natural Gas Savings; Certified Electricity 
Savings.--
            ``(1) In general.--
                    ``(A) Certified natural gas savings.--The term 
                `certified natural gas savings' means, with respect to 
                any taxable year, the amount, measured in therms on an 
                average annual basis, which is equal to the excess of--
                            ``(i) 85 percent of the amount of natural 
                        gas which would be consumed with respect to the 
                        dwelling unit of the taxpayer if the qualified 
                        energy efficiency expenditures with respect to 
                        such taxable year were not made, as certified 
                        in accordance with paragraph (2), over
                            ``(ii) the amount of such natural gas 
                        consumption with respect to such dwelling unit 
                        determined by taking into account the qualified 
                        energy efficiency expenditures made during such 
                        taxable year, as certified in accordance with 
                        paragraph (2).
                    ``(B) Certified electricity savings.--The term 
                `certified electricity savings' means, with respect to 
                any taxable year, the amount, measured in kilowatt 
                hours on an annual basis, which is equal to the excess 
                of--
                            ``(i) 85 percent of the amount of 
                        electricity which would be consumed with 
                        respect to the dwelling unit of the taxpayer if 
                        the qualified energy efficiency expenditures 
                        with respect to such taxable year were not 
                        made, as certified in accordance with paragraph 
                        (2), over
                            ``(ii) the amount of electricity 
                        consumption with respect to such dwelling unit 
                        determined by taking into account the qualified 
                        energy efficiency expenditures made during such 
                        taxable year, as certified in accordance with 
                        paragraph (2).
            ``(2) Certification.--
                    ``(A) In general.--The Secretary shall prescribe 
                the manner and method for the making of certifications 
                under this paragraph.
                    ``(B) Procedures.--The Secretary shall include as 
                part of the certification process procedures for 
                inspection and testing by qualified individuals 
                described in subparagraph (C) to ensure compliance of 
                dwelling units with the requirements of this section. 
                Such procedures shall be similar to the requirements in 
                the Mortgage Industry National Accreditation Procedures 
                for Home Energy Rating Systems.
                    ``(C) Qualified individuals.--Individuals qualified 
                to determine compliance shall be only those individuals 
                who are recognized by an organization certified by the 
                Secretary for such purposes.
    ``(e) Special Rules.--For purposes of this section, rules similar 
to the rules under paragraphs (4), (5), (6), (7), (8), and (9) of 
section 25D(e) shall apply.
    ``(f) Basis Adjustments.--For purposes of this subtitle, if a 
credit is allowed under this section with respect to 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.
    ``(g) Termination.--This section shall not apply with respect to 
any property placed in service after December 31, 2007.''.
    (b) Conforming Amendment.--Section 1016(a)(34) is amended by 
striking ``25C(e)'' and inserting ``section 25C(f)''.
    (c) Effective Dates.--The amendments made by this section shall 
apply to property placed in service after December 31, 2005.
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