1.
(a)This Act may be cited
as the EXTEND the Energy Efficiency
Incentives Act of 2006
.
(b)Except as otherwise expressly provided, whenever in
this Act an amendment or repeal is expressed in terms of an amendment to, or
repeal of, a section or other provision, the reference shall be considered to
be made to a section or other provision of the Internal Revenue Code of
1986.
(c)The table of contents of this Act is as follows:
Sec. 1. Short title; etc.
TITLE I—Non-business energy improvements
Sec. 101. Performance based energy improvements for
non-business property.
Sec. 102. Extension and modification of credit for nonbusiness
energy property.
Sec. 103. Modification of credit for solar electric property
and solar hot water property.
TITLE II—Business-related energy improvements
Sec. 201. Extension and clarification of new energy efficient
home credit.
Sec. 202. Extension and modification of deduction for energy
efficient commercial buildings.
Sec. 203. Deduction for energy efficient low-rise
buildings.
Sec. 204. Energy efficient property deduction.
Sec. 205. Extension of investment tax credit with respect to
solar energy property and qualified fuel cell property.
TITLE III—Incentives for energy savings
certifications
Sec. 301. Credit for energy savings certifications.
<enum>I</enum><header>Non-business
energy improvements</header>
<section commented="no" display-inline="no-display-inline" id="idF2F091B79E8444679F5B2FCDEEBA3DAA"><enum>101.</enum><header>Performance
based energy improvements for non-business property</header>
<subsection commented="no" display-inline="no-display-inline" id="id66D81BE55B504DCE9389DB8490DB33CD"><enum>(a)</enum><header>In
general</header><text>Subpart A of part IV of subchapter A of chapter 1 is
amended by inserting after section 25D the following new section:</text>
<quoted-block display-inline="no-display-inline" id="id3294F6147C73400CB49017CDA7BEEA40" style="OLC">
<section commented="no" display-inline="no-display-inline" id="idBFA19B249AD44BA9BBD5481A305229E9"><enum>25E.</enum><header>Performance
based energy improvements</header>
<subsection commented="no" display-inline="no-display-inline" id="id072C6494D5944B9D9BE1F25E5F2C5B2C"><enum>(a)</enum><header>In
general</header><text>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 amount of qualified energy efficiency expenditures paid or
incurred by the taxpayer during the taxable year.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idEA8460BCADCD469D93B1386CA6689DB4"><enum>(b)</enum><header>Limitations</header>
<paragraph commented="no" display-inline="no-display-inline" id="id6AF2E5F4CBAC4448A2232F54541AEB85"><enum>(1)</enum><header>In
general</header><text>The amount allowed as a credit under subsection (a) shall
not exceed—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id06DDD14ABF2F4768A4D177B724ED917E"><enum>(A)</enum><text>in the case of a
principal residence that achieves a qualified energy savings of 50 percent or
more, $2,000, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id094C07F6AE4D4C0887AF33E8FCDB6809"><enum>(B)</enum><text>in the case of a
principal residence which achieves a qualified energy savings of less than 50
percent, the product of—</text>
<clause commented="no" display-inline="no-display-inline" id="id6B0992D1A86E4C13AB6A13350F50B02B"><enum>(i)</enum><text>the qualified
energy savings achieved, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idB3AA8C94F2CC40B7BA32E0CC0B183B15"><enum>(ii)</enum><text>$4,000.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id17E0AE0125624ED9B198A4E98CE4D2DF"><enum>(2)</enum><header>Minimum amount
of qualified energy savings</header><text>No credit shall be allowed under
subsection (a) with respect to any principal residence which achieves a
qualified energy savings of less than 20 percent.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id74CEAB7A515847918D6ADB92688081FB"><enum>(c)</enum><header>Qualified
energy efficiency expenditures</header><text>For purposes of this
section:</text>
<paragraph commented="no" display-inline="no-display-inline" id="id9626682E75794857ABFA338723C54036"><enum>(1)</enum><header>In
general</header><text>The term <term>qualified energy efficiency
expenditures</term> means any amount paid or incurred which is related to
producing qualified energy savings in a principal residence of the taxpayer
which is located in the United States.</text>
</paragraph><paragraph id="id3FA5614883984F08A11F8B28D29B96A0"><enum>(2)</enum><header>No double
benefit for certain expenditures</header><text>The term <term>qualified energy
efficiency expenditures</term> shall not include any expenditure for which a
deduction or credit is otherwise allowed to the taxpayer under this
chapter.</text>
</paragraph><paragraph id="ID81A4DB1D6F9443B2810C68C91B71F151"><enum>(3)</enum><header>Principal
residence</header><text>The term <term>principal residence</term> has the same
meaning as when used in section 121, except that—</text>
<subparagraph id="IDAD16CBC122614C149386C916A81224BB"><enum>(A)</enum><text>no ownership
requirement shall be imposed, and</text>
</subparagraph><subparagraph id="ID045B109759CC42E5BDBD653160D30237"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idE36BDAB1843D4345B58537F3666C4345"><enum>(d)</enum><header>Qualified
energy savings</header><text>For purposes of this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id18B0E0E7D4DA477D9FC8993621CB731E"><enum>(1)</enum><header>In
general</header><text>The term <term>qualified energy savings</term> means,
with respect to any principal residence, the amount (measured as a percentage)
by which—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idFA61E8F7074E45F7B72A2B95AF1251C7"><enum>(A)</enum><text>the annual energy
use with respect to the principal residence after qualified energy efficiency
expenditures are made, as certified under paragraph (2), is less than</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id1EA3056AE26E41EEB27AD30C5FBB668D"><enum>(B)</enum><text>the annual energy
use with respect to the principal residence before the qualified energy
efficiency expenditures were made, as certified under paragraph (2).</text>
</subparagraph><continuation-text continuation-text-level="paragraph">In
determining annual energy use under subparagraph (B), any energy efficiency
improvements which are not attributable to qualified energy efficiency
expenditures shall be disregarded.</continuation-text></paragraph><paragraph id="ID72a84a8ad151499c8f55e9e390ce21bc"><enum>(2)</enum><header>Certification</header>
<subparagraph id="ID536be2100d304a4db70ccbd8defcd5cf"><enum>(A)</enum><header>In
general</header><text>The Secretary, in consultation with the Secretary of
Energy, shall prescribe the procedures and methods for the making of
certifications under this paragraph based on the Residential Energy Services
Network (RESNET) Technical Guidelines in effect on the date of the enactment of
this section.</text>
</subparagraph><subparagraph id="ID7ab2e91ed380422c9a36fed909b58469"><enum>(B)</enum><header>Qualified
individuals</header><text>Any certification made under this paragraph may only
be made by an individual who is recognized by an organization certified by the
Secretary for such purposes.</text>
</subparagraph></paragraph></subsection><subsection id="HB6213A40C3F74F8895041412E8F604D9"><enum>(e)</enum><header>Special
rules</header><text>For purposes of this section rules similar to the rules
under paragraphs (4), (5), (6), (7), (8), and (9) of section 25D(e) and section
25C(e)(2) shall apply.</text>
</subsection><subsection id="HAAE30E8A07CC4C3CAE5C74F4DCB4F264"><enum>(f)</enum><header>Basis
adjustments</header><text>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.</text>
</subsection><subsection id="H3AAA6AA2C36040EDB42F73420711E84C"><enum>(g)</enum><header>Termination</header><text>This
section shall not apply with respect to any property placed in service after
December 31,
2010.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idA2A786A2CDAC48A2AFDA3AB84CAD3299"><enum>(b)</enum><header>Interim
guidance on certification</header>
<paragraph commented="no" display-inline="no-display-inline" id="id89AC91FBB2B14D3BA2E501E4352E21CF"><enum>(1)</enum><header>In
general</header><text>Not later than 90 days after the date of the enactment of
this Act, the Secretary of the Treasury, in consultation with the Secretary of
Energy, shall issue interim guidance on—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idC53F6DC9B1F24805B86287B4559B340C"><enum>(A)</enum><text>the procedures
and methods for making certifications under sections 25E(d)(2)(A) and
179E(d)(2)(A) of the Internal Revenue Code of 1986, as added by subsection (a)
and section 203, respectively; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idBEC183E900DD4CB1A8919356FDCE8A3C"><enum>(B)</enum><text>the recognition
of qualified individuals under sections 25E(d)(2)(B) and 179E(d)(2)(B) of such
Code for the purpose of making such certifications.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id31EA5B886D0149118A8DFE1F36AF3EBE"><enum>(2)</enum><header>Consultation
with stakeholders</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id99A16376635648F39DFEAF9BDEECD69D"><enum>(A)</enum><header>In
general</header><text>The Secretary of the Treasury, in issuing guidance
pursuant to paragraph (1), shall consider comments from energy efficiency
experts and other interested parties.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id82ED158C7E4D492DA20AC6790E2E0E99"><enum>(B)</enum><header>Other
considerations</header><text>In the case of guidance issued pursuant to
paragraph (1)(B), the Secretary of the Treasury shall also consider—</text>
<clause commented="no" display-inline="no-display-inline" id="idC60E05BF42AA4C8FBB28B30329C78373"><enum>(i)</enum><text>the Residential
Energy Services Network Technical Guidelines and other pertinent guidelines for
evaluating energy savings;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id009335EF5DE74A6CA5EF95C266941D1E"><enum>(ii)</enum><text>energy modeling
software, including software accredited through the Residential Energy Services
Network; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id25879A0162D64BD88FED2FBF834D42B9"><enum>(iii)</enum><text>quality
assurance procedures of the Building Performance Institute, Home Performance
through Energy Star, and the Residential Energy Services Network.</text>
</clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id5BAD25D1D42D434EA45BE91ECCC0E427"><enum>(c)</enum><header>Alternative
certification methods</header>
<paragraph commented="no" display-inline="no-display-inline" id="id5AB73B2073D344D28A48470A65F4E686"><enum>(1)</enum><header>In
general</header><text>The Secretary of the Treasury shall establish a procedure
for individuals and businesses to petition for the approval of alternative
methods of certification under sections 25E(d)(2)(A) and 179E(d)(2)(A) of the
Internal Revenue Code of 1986, as added by subsection (a) and section 203,
respectively.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id373AB3515F1540A1A2716CD31638F492"><enum>(2)</enum><header>Determination</header><text>The
Secretary of the Treasury shall make a determination on the approval or
disapproval of such alternative methods of certification not later than 90 days
after receiving a petition under paragraph (1).</text>
</paragraph></subsection><subsection commented="no" id="HBE658F820E8A4343B14141F02E3C9B21"><enum>(d)</enum><header>Conforming
amendments</header>
<paragraph commented="no" id="idF8F1A6E51A734D559B1F07047BB97F93"><enum>(1)</enum><text>Section 1016(a)
is amended by striking <quote>and</quote> at the end of paragraph (36), by
striking the period at the end of paragraph (37) and inserting <quote>,
and</quote>, and by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="idA224AFDFC0B74ED9AE11A21812B1DCF7" style="OLC">
<paragraph commented="no" id="id8D5D9AF891AB4165BC53C8AD7990EC49"><enum>(38)</enum><text>to the extent
provided in section
25E(f).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="id313F9BFC67A743C79B4EE0C5B2F0A0A7"><enum>(2)</enum><text>The table of
sections for subpart A of part IV of subchapter A chapter 1 is amended by
inserting after the item relating to section 25D the following new item:</text>
<quoted-block id="id9cb19687-aeb2-476b-b517-8ed5afd5dad1" style="OLC">
<toc>
<toc-entry idref="idBFA19B249AD44BA9BBD5481A305229E9" level="section">Sec. 25E. Performance based energy
improvements.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H5494EC63C2724F8AA041229DF3394435"><enum>(e)</enum><header>Effective
dates</header><text>The amendments made by this section shall apply to amounts
paid or incurred in taxable years beginning after the date of the enactment of
this Act.</text>
</subsection></section><section id="idBE2CB52F035D47EF8F5100D7B2C353D9" section-type="subsequent-section"><enum>102.</enum><header>Extension and
modification of credit for nonbusiness energy property</header>
<subsection commented="no" display-inline="no-display-inline" id="idCE64D8AFDD5644A5AEF1F2684C23E8FE"><enum>(a)</enum><header>Extension</header><text>Subsection
(g) of section 25C of the Internal Revenue Code of 1986 (relating to
termination) is amended by striking <quote>December 31, 2007</quote> and
inserting <quote>December 31, 2010</quote>.</text>
</subsection><subsection id="id88B1C44B92C04BAFB2F97F559F72E5B1"><enum>(b)</enum><header>Modifications
for residential energy efficiency property expenditures</header>
<paragraph id="idFAE3D676F224489C99E45D7B0A0EF6A9"><enum>(1)</enum><header>Increased
limitation for oil furnaces and natural gas, propane, and oil hot water
boilers</header>
<subparagraph id="idA1003E9483A74B32840B295989787F7A"><enum>(A)</enum><header>In
general</header><text>Subparagraphs (B) and (C) of section 25C(b)(3) are
amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id30BF7D8D42D14ABBAC9519ABB512AA5E" style="OLC">
<subparagraph id="id9B71E9A2A6D04BFBAF78444B1242E12A"><enum>(B)</enum><text>$150 for any
qualified natural gas furnace or qualified propane furnace, and</text>
</subparagraph><subparagraph id="id09349B0B44AC4A2F97BD0CCF76E9B9F8"><enum>(C)</enum><text>$300 for—</text>
<clause id="idA74DC857177240978F00E48A835A6C51"><enum>(i)</enum><text>any item of
energy-efficient building property, and</text>
</clause><clause id="id84CCACD1070644C6AF1DE84F688466CE"><enum>(ii)</enum><text>any qualified
oil furnace, qualified natural gas hot water boiler, qualified propane hot
water boiler, or qualified oil hot water
boiler.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="id8E9CD804E46F4C27BE1181E202937381"><enum>(B)</enum><header>Conforming
amendment</header><text>Clause (ii) of section 25C(d)(2)(A) is amended to read
as follows:</text>
<quoted-block display-inline="no-display-inline" id="id3204F245C4824052A4A05A0D35B2BBEB" style="OLC">
<clause id="idB9854B9B38DB4F6A8201168B317A955D"><enum>(ii)</enum><text>any qualified
natural gas furnace, qualified propane furnace, qualified oil furnace,
qualified natural gas hot water boiler, qualified propane hot water boiler, or
qualified oil hot water boiler,
or</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id36693B2E816E46F18FF93BD6A09501E2"><enum>(2)</enum><header>Modifications
of standards for energy-efficient building property</header>
<subparagraph id="id59117E46EE894ED3A93B8D680C16AED0"><enum>(A)</enum><header>Electric heat
pumps</header><text>Subparagraph (B) of section 25C(d)(3) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="id544CE208014042369B3376285D32D422" style="OLC">
<subparagraph id="idA2D4D89188594254886EEAD088CD45CD"><enum>(A)</enum><text>an electric heat
pump which achieves the highest efficiency tier established by the Consortium
for Energy Efficiency, as in effect on January 1,
2007.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="id64A4368ACD8C4538B76AEA1B1E2C696B"><enum>(B)</enum><header>Central air
conditioners</header><text>Section 25C(d)(3)(D) is amended by striking
<quote>2006</quote> and inserting <quote>2007</quote>.</text>
</subparagraph><subparagraph id="idDD919FE3E2964246A168C6BFB825E30C"><enum>(C)</enum><header>Oil furnaces
and hot water boilers</header><text>Paragraph (4) of section 25C(d) is amended
to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id34E72E892DED4780BEBBEBD16C12C395" style="OLC">
<paragraph id="id8BC9B1311D8746339EB582584D6A1C5C"><enum>(4)</enum><header>Qualified
natural gas, propane, and oil furnaces and hot water boilers</header>
<subparagraph id="id2902454B444C4E109A6BA2C4D1433213"><enum>(A)</enum><header>Qualified
natural gas furnace</header><text>The term <term>qualified natural gas
furnace</term> means any natural gas furnace which achieves an annual fuel
utilization efficiency rate of not less than 95.</text>
</subparagraph><subparagraph id="id8283C147023249659A4F27037EA01332"><enum>(B)</enum><header>Qualified
natural gas hot water boiler</header><text>The term <term>qualified natural gas
hot water boiler</term> means any natural gas hot water boiler which achieves
an annual fuel utilization efficiency rate of not less than 95.</text>
</subparagraph><subparagraph id="idC140B36EE62D44638B4BEA50F1E9FAE6"><enum>(C)</enum><header>Qualified
propane furnace</header><text>The term <term>qualified propane furnace</term>
means any propane furnace which achieves an annual fuel utilization efficiency
rate of not less than 95.</text>
</subparagraph><subparagraph id="id5F760AC7ABC14D2D86B78F7781B42DE4"><enum>(D)</enum><header>Qualified
propane hot water boiler</header><text>The term <term>qualified propane hot
water boiler</term> means any propane hot water boiler which achieves an annual
fuel utilization efficiency rate of not less than 95.</text>
</subparagraph><subparagraph id="id371EC18D14464A4C84793C0D544454D3"><enum>(E)</enum><header>Qualified oil
furnaces</header><text>The term <term>qualified oil furnace</term> means any
oil furnace which achieves an annual fuel utilization efficiency rate of not
less than 90.</text>
</subparagraph><subparagraph id="id4CA127DA857541C0B6F76B011FC7EB72"><enum>(F)</enum><header>Qualified oil
hot water boiler</header><text>The term <term>qualified oil hot water
boiler</term> means any oil hot water boiler which achieves an annual fuel
utilization efficiency rate of not less than
90.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idD009D835B76B4483A75E0D7C2E6FA0FA"><enum>(c)</enum><header>Modification of
qualified energy efficiency improvements</header>
<paragraph commented="no" display-inline="no-display-inline" id="id29F7A278CD8044DC81E8F379D9A12145"><enum>(1)</enum><header>In
general</header><text>Paragraph (1) of section 25C(c) is amended by inserting
<quote>, or an asphalt roof with appropriate cooling granules,</quote> before
<quote>which meet the Energy Star program requirements</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1E8EF059EF9240C69A0A7D45216F5025"><enum>(2)</enum><header>Building
envelope component</header><text>Subparagraph (D) of section 25C(c)(2) is
amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id145D76697CBC4C989E9EC1CF16A1A272"><enum>(A)</enum><text>by inserting
<quote>or asphalt roof</quote> after <quote>metal roof</quote>, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF2E63964448E492885E0E6216A6B6776"><enum>(B)</enum><text>by inserting
<quote>or cooling granules</quote> after <quote>pigmented
coatings</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="id83DCFBF40EA342FCAFDCBDECAC9BE84F"><enum>(d)</enum><header>Elimination of
credit for qualified energy efficiency improvements in 2010</header>
<paragraph id="idE417096FA78048408E015CC2B31F7697"><enum>(1)</enum><header>In
general</header><text>Subsection (a) of section 25C of the Internal Revenue
Code of 1986 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id5EC6109027E64285B72AE20AC2D7158B" style="OLC">
<subsection id="id9F27E7C9647B46F1AC343E944AC83C7A"><enum>(a)</enum><header>Allowance of
credit</header><text>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 amount of residential energy property expenditures paid or
incurred by the taxpayer during the taxable
year.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id1B0628BA1EA14E4F979CE67DC0264135"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph id="id6D0CE03F83884A2380D215BCAFE97BD5"><enum>(A)</enum><text>Section 25C(b) of
such Code, as amended by subsection (b)(1), is amended by striking paragraphs
(1) and (2) and by redesignating paragraph (3) as paragraph (1).</text>
</subparagraph><subparagraph id="idDD704DBA3656402FB83CBCA4F7AF8B91"><enum>(B)</enum><text>Section 25C(b)(1)
of such Code, as redesignated by subparagraph (A), is amended by striking
<quote>by reason of subsection (a)(2)</quote>.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id604E042045894D95B92EE362771B5A7B"><enum>(C)</enum><text>Section 25C of
such Code is amended by striking subsection (c).</text>
</subparagraph></paragraph></subsection><subsection id="id8A7248A3DBBC48D9B164F707320FBF5D"><enum>(e)</enum><header>Effective
dates</header>
<paragraph id="id1369E9043B7C4A10AA75F10A157FEEB3"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraphs (2) and (3), the
amendments made by this section shall apply to property placed in service after
the date of the enactment of this Act.</text>
</paragraph><paragraph id="id0CF8432CA03B4FECACE5A01A0F359BFD"><enum>(2)</enum><header>Subsection
<enum-in-header>(b)</enum-in-header></header><text>The amendments made by
subsection (b) shall apply to property placed in service after December 31,
2006.</text>
</paragraph><paragraph id="id22522A667B964E38980DD35CECB2C08F"><enum>(3)</enum><header>Subsection
<enum-in-header>(d)</enum-in-header></header><text>The amendments made by
subsection (d) shall apply to property placed in service after December 31,
2009.</text>
</paragraph></subsection></section><section id="idBE62CBEE37CA4729AD7C350E8F09481F"><enum>103.</enum><header>Modification
of credit for solar electric property and solar hot water property</header>
<subsection id="id223FE55E38254C71BC2270DB3172E811"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subsection (a) of
section 25D (relating to allowance of credit) is amended by striking paragraphs
(1) and (2) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id9147E3EE436B40FFB22C22900DB0A616" style="OLC">
<paragraph id="id56832A7E8B48457EA87E2E7992DF4994"><enum>(1)</enum><text>100 percent of
the qualified solar electric property expenditures made by the taxpayer during
such year,</text>
</paragraph><paragraph id="id535924BD55BA4CC2A6A1BB6E80AAF8D6"><enum>(2)</enum><text>100 percent of
the qualified solar hot water property expenditures made by the taxpayer during
such year,
and</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idC1C57D1AFB7941B0BC231D8D5FBE14D2"><enum>(b)</enum><header>Limitations</header>
<paragraph id="idB49345A209E84ACC8E217C28AFB67DBC"><enum>(1)</enum><header>In
general</header><text>Paragraph (1) of section 25D(b) is amended by striking
subparagraphs (A) and (B) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="idF31C563831EC4A0A8A754F3A0293C3E6" style="OLC">
<subparagraph id="id93A25D63E64243368A24310ED1D87002"><enum>(A)</enum><text>$2 with respect
to each peak watt of capacity of qualified solar electric property for which
qualified solar electric property expenditures are made,</text>
</subparagraph><subparagraph id="id4F1FF80BA5B84F94B2FDC47F4A783C86"><enum>(B)</enum><text>in the case of
qualified solar water heating property expenditures, an amount equal to—</text>
<clause id="id94DA611EA29B4423A57CB477B69616DC"><enum>(i)</enum><text>in the case of a
dwelling unit which uses electricity to heat water, $0.35 with respect to each
kilowatt per year of savings of qualified solar hot water property for which
qualified solar water heating property expenditures are made, or</text>
</clause><clause id="id58B1C10F59EC479A942E5B7E558AAA2E"><enum>(ii)</enum><text>in the case of a
dwelling unit which uses natural gas to heat water, $7 with respect to each
annual Therm of natural gas savings of qualified solar hot water property for
which qualified solar water heating property expenditures are made,
and</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id85B174155AB74CE58F61182F849FDBFC"><enum>(2)</enum><header>Determination
of savings</header><text>Paragraph (1) of section 25D(b) is amended by adding
at the end the following new flush sentence:</text>
<quoted-block display-inline="no-display-inline" id="id4DE8ACBB28AF4ACDA874575560A89247" style="OLC">
<quoted-block-continuation-text quoted-block-continuation-text-level="paragraph">For
purposes of subparagraph (B), savings shall be determined under regulations
prescribed by the Secretary based on the OG–300 Standard for the Annual
Performance of OG–300 Certified Systems of the Solar Rating and Certification
Corporation.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id4DC83DE56DD144878569CA06C151E48E"><enum>(c)</enum><header>Definitions</header>
<paragraph id="id8AC82C6DF99847EA9CB82B7472C79B35"><enum>(1)</enum><header>In
general</header><text>Section 25D(d) is amended—</text>
<subparagraph id="id07281A6248B7485C9096DA4FF59F75CF"><enum>(A)</enum><text>by redesignating
paragraph (3) as paragraph (5), and</text>
</subparagraph><subparagraph id="id01464C8595734CCEAED2CC1812E25BF6"><enum>(B)</enum><text>by striking
paragraphs (1) and (2) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id5DA1EA9942A040599355A2D31BB02A84" style="OLC">
<paragraph id="idDB2DC5C317C946809F5266475B489898"><enum>(1)</enum><header>Qualified solar
electric property expenditures</header><text>The term <term> qualified solar
electric property expenditures</term> means any amount paid or incurred for
qualified solar electric property.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idCCEC7AF92E014867B45CEFC5C5FDA192"><enum>(2)</enum><header>Qualified solar
electric property</header><text>The term <term>qualified solar electric
property</term> means solar electric property (as defined in section
179F(c)(2)(B)) installed on or in connection with a dwelling unit located in
the United States and used as a residence by the taxpayer.</text>
</paragraph><paragraph id="id860B2684003B4D4085445FF905AE638D"><enum>(3)</enum><header>Qualified solar
water heating property expenditures</header><text>The term <term>qualified
solar water heating property expenditures</term> means any amount paid or
incurred for qualified solar hot water property.</text>
</paragraph><paragraph id="idBE19FAAD60454707941307875BF1EF3F"><enum>(4)</enum><header>Qualified solar
hot water property</header><text>The term <term>qualified solar hot water
property</term> means solar hot water property (as defined in section
179F(c)(2)(C)) installed on or in connection with a dwelling unit located in
the United States and used as a residence by the
taxpayer.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id0A13D69B131245509DAB4668D11A81D9"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph id="id4B5F3A29B12E46FBB692C5793B316029"><enum>(A)</enum><text>Section 25D(e)(2)
is amended by striking <quote>property described in paragraph (1) and (2) of
subsection (d)</quote> and inserting <quote>qualified solar electric property
or qualified solar hot water property</quote>.</text>
</subparagraph><subparagraph id="id6FFBD85E7B3B42DD9668ADE553FFF888"><enum>(B)</enum><text>Section
25D(e)(4)(C) is amended by striking <quote>paragraphs (1), (2), and (3)</quote>
and inserting <quote>paragraphs (1),(3), and (5)</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="id6A0E8FF23A3142C2B6C1BDA4D62B8839"><enum>(d)</enum><header>Dollar amounts
in case of joint occupancy</header><text>Clauses (i) and (ii) of section
25D(e)(4)(A) are amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id39A9B2578B984519B92A6FE69463D3AB" style="OLC">
<clause id="id6519A2E271774F1BB7973A9C285296A8"><enum>(i)</enum><text>$2 in the case of
each peak watt of capacity of qualified solar electric property for which
qualified solar electric property expenditures are made,</text>
</clause><clause id="idA016046CD4E643EE8D6BD90D5094E3EC"><enum>(ii)</enum><text>in the case of
qualified solar water heating property expenditures, an amount equal to—</text>
<subclause id="id4665B3CF93BC4CA79B5027EF1067D289"><enum>(I)</enum><text>in the case of a
dwelling unit which uses electricity to heat water, $0.35 with respect to each
kilowatt per year of savings of qualified solar hot water property for which
qualified solar water heating property expenditures are made, or</text>
</subclause><subclause id="id79E87FA14CB24614A197BED0CA8113D7"><enum>(II)</enum><text>in the case of a
dwelling unit which uses natural gas to heat water, $7 with respect to each
annual Therm of natural gas savings of qualified solar hot water property for
which qualified solar water heating property expenditures are made,
and</text>
</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idF7D037F532FA41CB960FBC6E33D9B5ED"><enum>(e)</enum><header>Extension of
credit</header><text>Subsection (g) of section 25D is amended by striking
<quote>2007</quote> and inserting <quote>2010</quote>.</text>
</subsection><subsection id="idCAE23DAB72EF41FDB5D2D3CCCB1CF392"><enum>(f)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to property
placed in service after the date of the enactment of this Act.</text>
</subsection></section><enum>II</enum><header>Business-related
energy improvements</header>
<section id="idD547BE378A2A4AEA913CDBB6F29833B9"><enum>201.</enum><header>Extension and
clarification of new energy efficient home credit</header>
<subsection id="idC84E78DB43E448539ED7A21986D4939E"><enum>(a)</enum><header>Extension</header><text display-inline="yes-display-inline">Subsection (g) of section 45L (relating to
termination) is amended by striking <quote>December 31, 2007</quote> and
inserting <quote>December 31, 2010</quote>.</text>
</subsection><subsection id="id5F13DE1F3D584A1980D665FA8770099F"><enum>(b)</enum><header>Clarification</header>
<paragraph id="idC57950A31DC940F5A1543385F4972D49"><enum>(1)</enum><header>In
general</header><text>Paragraph (1) of section 45L(a) is amended by striking
<quote>and</quote> at the end of subparagraph (A) and by striking subparagraph
(B) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id56DB5CEB7FCE4DB1A95A51993A9DBC28" style="OLC">
<subparagraph id="id120702A85F754D45B93335DAB261A8EF"><enum>(B)</enum><text>acquired by a
person from such eligible contractor, and</text>
</subparagraph><subparagraph id="id9B121C9D4B8C451398C76ED5E4744069"><enum>(C)</enum><text>used by any
person as a residence during the taxable
year.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="idA382D4FB8559480FA9F3961351280E91"><enum>(2)</enum><header>Effective
date</header><text>The amendments made by this subsection shall take effect as
if included in section 1332 of the Energy Policy Act of 2005.</text>
</paragraph></subsection></section><section id="idB254A0266F3C4543A55E1B83A9BC43C7" section-type="subsequent-section"><enum>202.</enum><header>Extension and
modification of deduction for energy efficient commercial buildings</header>
<subsection id="idB849CEFB26D54DBBAE64AEF858CCCE11"><enum>(a)</enum><header>Extension</header><text display-inline="yes-display-inline">Subsection (h) of section 179D (relating to
termination) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id70D218AA99C2467C8B1ACE0BB220A191" style="OLC">
<subsection id="id981041CF9C71440F80F6C4F741780EC5"><enum>(h)</enum><header>Termination</header><text display-inline="yes-display-inline">This section shall not apply with respect
to property—</text>
<paragraph id="id6C154A54C2434F8B9E430801293BFB86"><enum>(1)</enum><text>which is
certified under subsection (d)(6) after December 31, 2011, or</text>
</paragraph><paragraph id="idD8F8ECD787AF44F3BF468DC72F9ECD83"><enum>(2)</enum><text>which is placed
in service after December 31,
2013.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idE6AFC7A2F3F54796991E9BAA4BBB69BD"><enum>(b)</enum><header>Increase in
maximum amount of deduction</header>
<paragraph id="id521844DAB701453C8C16CAF730E39189"><enum>(1)</enum><header>In
general</header><text>Subparagraph (A) of section 179D(b)(1) is amended by
striking <quote>$1.80</quote> and inserting <quote>$2.25</quote>.</text>
</paragraph><paragraph id="id981E555F4A154469A65369D489DF1579"><enum>(2)</enum><header>Partial
allowance</header><text>Paragraph (1) of section 179D(d) is amended—</text>
<subparagraph id="id8C5A202D4C344CF195AA2D0A01840A3B"><enum>(A)</enum><text>by striking
<quote>$.60</quote> and inserting <quote>$0.75</quote>, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idA0C3190E8E204F9DB2CD2F7D4CB08171"><enum>(B)</enum><text>by striking
<quote>$1.80</quote> and inserting <quote>$2.25</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id1C26B24A9BCF4158B7F86C4C5B309A2E"><enum>(c)</enum><header>Modifications
to certain special rules</header>
<paragraph commented="no" display-inline="no-display-inline" id="idE5B0593B7BD04CE386FE6454B9AC4A2C"><enum>(1)</enum><header>Requirements
for computer software used in calculating energy and power consumption
costs</header><text>Computer software used in preparing a calculation under
section 179D(d)(2) of the Internal Revenue Code of 1986 shall
automatically—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id02FDA5BE69B746CBBCCFCC36095FC721"><enum>(A)</enum><text>generate the
features, energy use, and energy and power consumption costs of a reference
building that meets Standard 90.1–2001 (as defined under section 179D(c)(2) of
such Code), and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idFD87BF9D665E4C0C8000ED9D5975C80B"><enum>(B)</enum><text>compare such
features, energy use, and consumption costs to the features, energy use, and
consumption costs of the building or system with respect to which the
calculation is being made.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idDDAF5656A9354CF790854D466430CF3F"><enum>(2)</enum><header>Targets for
partial allowance of credit</header><text>The targets established by the
Secretary of Treasury under section 179D(b)(1)(B) of the Internal Revenue Code
of 1986 shall be based on prescriptive criteria that can be modeled
explicitly.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id2F6740B9A8DD442AB7BF452115F0717C"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to property
placed in service in taxable years beginning after the date of the enactment of
this Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="idB7514BF5D08E4F9F9E7F1307DA502C99"><enum>203.</enum><header>Deduction for
energy efficient low-rise buildings</header>
<subsection commented="no" display-inline="no-display-inline" id="id96E431BDC9A24E5CA780C51EF0A553F5"><enum>(a)</enum><header>In
general</header><text>Part VI of subchapter B of chapter 1 is amended by
inserting after section 179D the following new section:</text>
<quoted-block display-inline="no-display-inline" id="id16E16B54464845869BFDD7D1E9F054CA" style="OLC">
<section commented="no" display-inline="no-display-inline" id="idE4671575EDE44B4FA85392234BC5BFFD"><enum>179E.</enum><header>Energy
efficient low-rise buildings deduction</header>
<subsection commented="no" display-inline="no-display-inline" id="idBA0CC49BC89F4906B94C729EF58F80AD"><enum>(a)</enum><header>In
general</header><text>There shall be allowed as a deduction an amount equal to
the amount of qualified energy efficiency expenditures paid or incurred by the
taxpayer during the taxable year.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idACC3BFB6575F458D97BDA7FEF888B285"><enum>(b)</enum><header>Limitations</header>
<paragraph commented="no" display-inline="no-display-inline" id="id93724078D7FF4949819AD159E1B4A12A"><enum>(1)</enum><header>In
general</header><text>The amount allowed as a credit under subsection (a) shall
not exceed—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id847FBE35B58E4D0FA14D0AD71CAA23B4"><enum>(A)</enum><text>in the case of a
qualified low-rise building that achieves a qualified energy savings of 50
percent or more, $6,000, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id003C4C45736640A4AF02777AB6B3EC7F"><enum>(B)</enum><text>in the case of a
qualified low-rise building which achieves a qualified energy savings of less
than 50 percent, the product of—</text>
<clause commented="no" display-inline="no-display-inline" id="id1508616BAF204A5CAB229D05152AC6EF"><enum>(i)</enum><text>the qualified
energy savings achieved, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id54F6C51987D346028D6491F65DDA32D8"><enum>(ii)</enum><text>$12,000.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id31A89B06926243C18F2FE2093E97D401"><enum>(2)</enum><header>Minimum amount
of qualified energy savings</header><text>No credit shall be allowed under
subsection (a) with respect to any qualified low-rise building which achieves a
qualified energy savings of less than 20 percent.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id9619EFCD990F459D889A40A0FC2B4B67"><enum>(c)</enum><header>Qualified
energy efficiency expenditures</header><text>For purposes of this
section:</text>
<paragraph commented="no" display-inline="no-display-inline" id="idE92897FBD65040099C31074630D6BAE5"><enum>(1)</enum><header>In
general</header><text>The term <term>qualified energy efficiency
expenditures</term> means any amount paid or incurred which is related to
producing qualified energy savings in a qualified low-rise building of the
taxpayer which is located in the United States.</text>
</paragraph><paragraph commented="no" id="idE1614E89C71B47B7A561554EC444332F"><enum>(2)</enum><header>No double
benefit for certain expenditures</header><text>The term <term>qualified energy
efficiency expenditures</term> shall not include any expenditure for any
property for which a deduction has been allowed to the taxpayer under section
179F.</text>
</paragraph><paragraph id="idEE400862C3D143BE83A7527B27A4E494"><enum>(3)</enum><header>Qualified
low-rise building</header><text>The term <term>qualified low-rise
building</term> means a building—</text>
<subparagraph id="idB0B2348363784FACA109A51FA6E4E3D0"><enum>(A)</enum><text>with respect to
which depreciation is allowable under section 167, and</text>
</subparagraph><subparagraph id="id6CEFC9ED28304062A037386A20F48912"><enum>(B)</enum><text>which is not
within the scope of Standard 90.1–2001 (as defined under section
179D(c)(2)).</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idC524A9E159DB417E8A2BB04D3F8A5626"><enum>(d)</enum><header>Qualified
energy savings</header><text>For purposes of this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idDC6C6027FB924B3280794226A9A0BD82"><enum>(1)</enum><header>In
general</header><text>The term <term>qualified energy savings</term> means,
with respect to any qualified low-rise building, the amount (measured as a
percentage) by which—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id78715D5CD8B84B11A177395B7E0C727D"><enum>(A)</enum><text>the annual energy
use with respect to the qualified low-rise building after qualified energy
efficiency expenditures are made, as certified under paragraph (2), is less
than</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id46A636FEBCCE4FBDBAB93E855E1A09C3"><enum>(B)</enum><text>the annual energy
use with respect to the qualified low-rise building before the qualified energy
efficiency expenditures were made, as certified under paragraph (2).</text>
</subparagraph><continuation-text continuation-text-level="paragraph">In
determining annual energy use under subparagraph (B), any energy efficiency
improvements which are not attributable to qualified energy efficiency
expenditures shall be disregarded.</continuation-text></paragraph><paragraph id="id91162CDD70DB43E585CB76D3A8E23B68"><enum>(2)</enum><header>Certification</header>
<subparagraph id="id39BC4F3A3EF64B38BC46A773EE7410F1"><enum>(A)</enum><header>In
general</header><text>The Secretary, in consultation with the Secretary of
Energy, shall prescribe the procedures and method for the making of
certifications under this paragraph based on the Residential Energy Services
Network (RESNET) Technical Guidelines in effect on the date of the enactment of
this Act.</text>
</subparagraph><subparagraph id="id5C03219A973F4C26BE91E1AC8A346F84"><enum>(B)</enum><header>Qualified
individuals</header><text>Any certification made under this paragraph may only
be made by an individual who is recognized by an organization certified by the
Secretary for such purposes.</text>
</subparagraph></paragraph></subsection><subsection id="idB44EA62550EC4D2BBC5003F64381F221"><enum>(e)</enum><header>Special
rules</header><text>For purposes of this section, rules similar to the rules
under paragraphs (8) and (9) of section 25D(e) shall apply.</text>
</subsection><subsection id="id3BD4961681964852864F52BEBFFDCB8E"><enum>(f)</enum><header>Basis
adjustments</header><text>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.</text>
</subsection><subsection id="id78407550CF904018AA96DDCFEAAC1663"><enum>(g)</enum><header>Termination</header><text>This
section shall not apply with respect to any property placed in service after
December 31,
2010.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idDE73C933F633479DA491810687E684B4"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph commented="no" id="id4DB8871077AE46EA91D0F8C7E6CE25C5"><enum>(1)</enum><text>Section 1016(a),
as amended by section 101, is amended by striking <quote>and</quote> at the end
of paragraph (37), by striking the period at the end of paragraph (38) and
inserting <quote>, and</quote>, and by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="idEB0EBEB1CF7346BF8DCE250D04324518" style="OLC">
<paragraph commented="no" id="id05DFF529892D448598E7BD9B2C89F607"><enum>(39)</enum><text>to the extent
provided in section
179E(f).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDDF8F13372B1441C6B75CECFF3C6B8A1D"><enum>(2)</enum><text>Section 1245(a)
is amended by inserting <quote>179E,</quote> after <quote>179D,</quote> both
places it appears in paragraphs (2)(C) and (3)(C).</text>
</paragraph><paragraph commented="no" id="ID9FE329E3CEC442BEACA94C9EC61E3C85"><enum>(3)</enum><text>Section
1250(b)(3) is amended by inserting <quote>or 179E</quote> after <quote>section
179D</quote>.</text>
</paragraph><paragraph id="ID414CFC3F9D8C420F9FF46F7BB85028B4"><enum>(4)</enum><text>Section 263(a)(1)
is amended by striking <quote>or</quote> at the end of subparagraph (J), by
striking the period at the end of subparagraph (K) and inserting <quote>,
or</quote>, and by inserting after subparagraph (K) the following new
subparagraph:</text>
<quoted-block id="IDFAA52E7A0DED4C5D860F0A12300E14BE">
<subparagraph id="ID4D4CB73208D04939BD32A9F7E31CE67F"><enum>(L)</enum><text>expenditures for
which a deduction is allowed under section
179E.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDDDBC1527CCEF46518DB21389BCE59D10"><enum>(5)</enum><text>Section
312(k)(3)(B) is amended by striking <quote>179, 179A, 179B, 179C, or
179D</quote> each place it appears in the heading and text and inserting
<quote>179, 179A, 179B, 179C, 179D, or 179E</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id99CA3EDA8D3F401CBB39CAF0FADDEB85"><enum>(6)</enum><text>The table of
sections for part VI of subchapter B is amended by inserting after the item
relating to section 179D the following new item:</text>
<quoted-block id="id1fe58280-54ba-4752-bffb-c36397615e36" style="OLC">
<toc>
<toc-entry idref="idE4671575EDE44B4FA85392234BC5BFFD" level="section">Sec. 179E. Energy efficient low-rise buildings
deduction.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id67BA73BC527F4CDCBCA2885D970BF195"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to amounts
paid or incurred in taxable years beginning after the date of the enactment of
this Act.</text>
</subsection></section><section id="id84C1A7177C8E426BBC6377256EF7F087"><enum>204.</enum><header>Energy
efficient property deduction</header>
<subsection commented="no" display-inline="no-display-inline" id="id64D994A997CB4E7D8AA4974BFC431581"><enum>(a)</enum><header>In
general</header><text>Part VI of subchapter B of chapter 1, as amended by
section 203, is amended by inserting after section 179E the following new
section:</text>
<quoted-block display-inline="no-display-inline" id="id4EC37E93F0AE4127942AB8B78F5E4748" style="OLC">
<section commented="no" display-inline="no-display-inline" id="id6717D21B064C40FDB23411D16A4086B4"><enum>179F.</enum><header>Energy
efficient property</header>
<subsection commented="no" display-inline="no-display-inline" id="id1EAD65184640418D9E62C2ACE009081A"><enum>(a)</enum><header>In
general</header><text>There shall be allowed as a deduction an amount equal to
the energy efficient property expenditures paid or incurred by the taxpayer
during the taxable year</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id263C5598B5ED4270B09AC22DE1769A10"><enum>(b)</enum><header>Limitation</header><text>The
amount of the deduction allowed under subsection (a) for any taxable years
shall not exceed—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idC23EE49141F34BB78B641F30A43139D4"><enum>(1)</enum><text>$150 for any
advanced main air circulating fan,</text>
</paragraph><paragraph id="id595F1116887B4124B9871551CFD2CD1E"><enum>(2)</enum><text>$450 for any
qualified natural gas furnace or qualified propane furnace,</text>
</paragraph><paragraph id="idBF72CC8ACCD346ABB992F174F335E71E"><enum>(3)</enum><text>$900 for—</text>
<subparagraph id="id1159BE5E30AE47D68C43A296BDEF829A"><enum>(A)</enum><text>any item of
energy-efficient building property, and</text>
</subparagraph><subparagraph id="idC179587DA97049B58C169F688F8FF49C"><enum>(B)</enum><text>any qualified oil
furnace, qualified natural gas hot water boiler, qualified propane hot water
boiler, or qualified oil hot water boiler.</text>
</subparagraph></paragraph><paragraph id="idC3BE768AC7B84C5DBD4D7742C51EFA97"><enum>(4)</enum><text>$9 with respect
to each peak watt of capacity of solar electric property,</text>
</paragraph><paragraph id="idE13125AE096F4CABA45853812E432984"><enum>(5)</enum><text>in the case of
solar hot water property, an amount equal to—</text>
<subparagraph id="id12CB53681DAC4EF7B47302051FB710A4"><enum>(A)</enum><text>in the case of a
dwelling unit which uses electricity to heat water, $1 with respect to each
kilowatt per year of savings of such solar hot water property, or</text>
</subparagraph><subparagraph id="id287971F9587349518FE0419F6AAF1F57"><enum>(B)</enum><text>in the case of a
dwelling unit which uses natural gas to heat water, $21 with respect to each
annual Therm of natural gas savings of such solar hot water property.</text>
</subparagraph></paragraph><continuation-text continuation-text-level="subsection">For
purposes of paragraph (5), savings shall be determined under regulations
prescribed by the Secretary based on the OG–300 Standard for the Annual
Performance of OG–300 Certified Systems of the Solar Rating and Certification
Corporation.</continuation-text></subsection><subsection commented="no" display-inline="no-display-inline" id="idBAEFD42E24F24C11912DB5F3B1E83904"><enum>(c)</enum><header>Energy
efficient property expenditures</header><text>For purposes of this
section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id6FB0E23479CC49FAA1596242F8E58899"><enum>(1)</enum><header>In
general</header><text>The term <term>energy efficient property
expenditures</term> means expenditures paid by the taxpayer for qualified
energy property which is—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idB0C107FF465A4A9C82E1FCE0502559B9"><enum>(A)</enum><text>of a character
subject to the allowance for depreciation, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id99F378DF5C8440019EF628BCD2C4AC3F"><enum>(B)</enum><text>originally placed
in service by the taxpayer.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1D89691A1C9F4C2D83E8419C73387505"><enum>(2)</enum><header>Qualified
energy property</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id9FAA7855DA2D4720B83C1E6E5A2EC0A1"><enum>(A)</enum><header>In
general</header><text>The term <term>qualified energy property</term> has the
meaning given such term by section 25C(d)(2), except that such term shall
include solar electric property and solar hot water property.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idFCD7A667356043569531F67EB752EACC"><enum>(B)</enum><header>Solar electric
property</header><text>The term <term>solar electric property</term> means
property which uses solar energy to generate electricity.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id1A28989175CE4598AEE11B0090DC85D9"><enum>(C)</enum><header>Solar hot water
property</header><text>The term <term>solar hot water property</term> means
property used to heat water if at least half of the energy used by such
property for such purpose is derived from the sun.</text>
</subparagraph></paragraph></subsection><subsection id="id53BDDD06FA494BE0B6A696437F87C048"><enum>(d)</enum><header>Basis
adjustments</header><text>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.</text>
</subsection><subsection id="id6CF860D1868D4C85AF6ABEEC0C7EBABA"><enum>(e)</enum><header>Termination</header><text>This
section shall not apply with respect to any property placed in service after
December 31,
2010.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idAC099FFF1E1643B8BF165EFC9BA7679A"><enum>(b)</enum><header>No double
benefit</header><text>Section 179D(c) is amended by adding at the end the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id983D235C853F41ABAA6F09566AC8927D" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="id8EB4284E538A4FAFAA7EFEB2A6360475"><enum>(3)</enum><header>Certain
property excluded</header><text>The term <term>energy efficient commercial
building property</term> does not include any property with respect to which a
credit has been allowed to the taxpayer under section
179F.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id8ADCF98F53C54E9B8E7BB7F12AEA9CC6"><enum>(c)</enum><header>Conforming
amendments</header>
<paragraph commented="no" id="idD7E69279C2364FE19C76A1407A47CB21"><enum>(1)</enum><text>Section 1016(a),
as amended by section 203, is amended by striking <quote>and</quote> at the end
of paragraph (38), by striking the period at the end of paragraph (39) and
inserting <quote>, and</quote>, and by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id1BD77CB6D5CC4BF09F3EEA3054542749" style="OLC">
<paragraph commented="no" id="idE12ECA30697F41FA90F7A3224100F421"><enum>(40)</enum><text>to the extent
provided in section
179E(e).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id251091EEDC574AA295DBBB452D0E20A2"><enum>(2)</enum><text>Section 1245(a),
as amended by section 203 is amended by inserting <quote>179F,</quote> after
<quote>179E,</quote> both places it appears in paragraphs (2)(C) and
(3)(C).</text>
</paragraph><paragraph commented="no" id="idA2ECD8DB187548AE85A81B12DDEE10AB"><enum>(3)</enum><text>Section
1250(b)(3), as amended by section 203, is amended by inserting <quote>or
179F</quote> after <quote>section 179E</quote>.</text>
</paragraph><paragraph id="id23CA9AD37E56495D8B72FC02F090F654"><enum>(4)</enum><text>Section
263(a)(1), as amended by section 203, is amended by striking <quote>or</quote>
at the end of subparagraph (K), by striking the period at the end of
subparagraph (L) and inserting <quote>, or</quote>, and by inserting after
subparagraph (L) the following new subparagraph:</text>
<quoted-block id="id6C7EE3E037C145CA9BFB3B525F170907">
<subparagraph id="id5A0EC972E49B46128BE5CB5B2882A0BE"><enum>(M)</enum><text>expenditures for
which a deduction is allowed under section
179F.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4EBDDA05D1C54169B749318EED275133"><enum>(5)</enum><text>Section
312(k)(3)(B), as amended by section 203, is amended by striking <quote>179,
179A, 179B, 179C, 179D, or 179E</quote> each place it appears in the heading
and text and inserting <quote>179, 179A, 179B, 179C, 179D, 179E, or
179F</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id3E304C6797AF437CB5A14CCBC0B0AA6B"><enum>(6)</enum><text>The table of
sections for part VI of subchapter B is amended by inserting after the item
relating to section 179E the following new item:</text>
<quoted-block id="id25B6616CEF684C9FAEDE231481B49FA4" style="OLC">
<toc>
<toc-entry idref="idE4671575EDE44B4FA85392234BC5BFFD" level="section">Sec. 179F. Energy efficient
property.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idD94D276E97494E06BE302409D4EDD67F"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to property
placed in service in taxable years beginning after the date of the enactment of
this Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id640391158BA74044AC05C7AA2395AC8A" section-type="subsequent-section"><enum>205.</enum><header>Extension of
investment tax credit with respect to solar energy property and qualified fuel
cell property</header>
<subsection commented="no" display-inline="no-display-inline" id="id9AE4A5D7322E49A2A79B996E8CD5EE63"><enum>(a)</enum><header>Solar energy
property</header><text display-inline="yes-display-inline">Paragraphs
(2)(A)(i)(II) and (3)(A)(ii) of section 48(a) are each amended by striking
<quote>2008</quote> and inserting <quote>2012</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id64A06CDE1093486F97F936FE25A20E9A"><enum>(b)</enum><header>Eligible fuel
cell property</header><text display-inline="yes-display-inline">Paragraph
(1)(E) of section 48(c) is amended by striking <quote>2007</quote> and
inserting <quote>2011</quote>.</text>
</subsection></section><enum>III</enum><header>Incentives for
energy savings certifications</header>
<section id="id5219426D421B48F3969CD47415B60063"><enum>301.</enum><header>Credit for
energy savings certifications</header>
<subsection id="id7AC189AC7EDC461FA4BEB45731A9A849"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subpart D of part IV
of subchapter A of chapter 1 is amended by adding at the end the following new
section:</text>
<quoted-block display-inline="no-display-inline" id="idD1C0D4C1ED9C4442B12FEDDBFC6894A3" style="OLC">
<section id="idA8A5C84BF26E405485A9D7367A9A9CDA"><enum>45N.</enum><header>Energy savings
certification credit</header>
<subsection id="id60D541427F384DE2A81A99AB483E9FC6"><enum>(a)</enum><header> In
general</header><text>For purposes of section 38, the energy savings
certification credit determined under this section for any taxable year is an
amount equal to the sum of—</text>
<paragraph id="id3F0E1515AD2D4935AD537987FBB2D330"><enum>(1)</enum><text>the qualified
training and certification costs paid or incurred by the taxpayer which may be
taken into account for such taxable year, plus</text>
</paragraph><paragraph id="idA66FACCB414849589D6E941E7A86353D"><enum>(2)</enum><text>the qualified
certification equipment expenditures paid or incurred by the taxpayer which may
be taken into account for such taxable year.</text>
</paragraph></subsection><subsection id="idE31F146A2065475981232967C8305644"><enum>(b)</enum><header>Qualified
training and certification costs</header>
<paragraph id="id6E3EF64EB78E4A1E89A088AFE6CE8D7C"><enum>(1)</enum><header>In
general</header><text>The term <term>qualified training and certification
costs</term> means costs paid or incurred for training which is required for
the taxpayer or employees of the taxpayer to be certified by the Secretary
under section 25D(d)(2)(B) or 179E(d)(2)(B) for the purpose of certifying
energy savings.</text>
</paragraph><paragraph id="id1BED93EE5CE149F7A1A7C01A4A18CA97"><enum>(2)</enum><header>Limitation</header><text>The
qualified training and certification costs taken into account under subsection
(a)(1) for the taxable year with respect to any individual shall not exceed
$500 reduced by the amount of the credit allowed under subsection (a)(1) to the
taxpayer (or any predecessor) with respect to such individual for all prior
taxable years.</text>
</paragraph><paragraph id="idDB6C878B1E0249619E3855EB22942362"><enum>(3)</enum><header>Year costs
taken into account</header><text>Qualified training and certifications costs
with respect to any individual shall not be taken into account under subsection
(a)(1) before the taxable year in which the individual with respect to whom
such costs are paid or incurred has performed 25 certifications under sections
25E(d)(2)(A) and 179E(d)(2)(A).</text>
</paragraph></subsection><subsection id="idE0F8DD000AFF46829504CA270119CE1A"><enum>(c)</enum><header>Qualified
certification equipment expenditures</header>
<paragraph id="idFD816C6DC576495EA0DA20772C05975A"><enum>(1)</enum><header>In
general</header><text>The term <term>qualified training equipment
expenditures</term> means costs paid or incurred for—</text>
<subparagraph id="id6788406BE81C4662835DCF42E761F1F3"><enum>(A)</enum><text>blower
doors,</text>
</subparagraph><subparagraph id="id281A9295F97A470BA12419AF05EFA3F9"><enum>(B)</enum><text>duct leakage
testing equipment,</text>
</subparagraph><subparagraph id="idAC6DD36E602A4D62991A958FFCA4A25C"><enum>(C)</enum><text>flue gas
combustion equipment, and</text>
</subparagraph><subparagraph id="idBB559F29CAEB41E68A77B453DB3E4CF5"><enum>(D)</enum><text>digital
manometers.</text>
</subparagraph></paragraph><paragraph id="idEE25052E9EE949FFB37E31A5F60F66BC"><enum>(2)</enum><header>Limitation</header>
<subparagraph id="id6636A9A461C642E398146009882DDEDF"><enum>(A)</enum><header>In
general</header><text>The qualified certification equipment expenditures taken
into account under subsection (a)(2) with respect to any taxpayer for any
taxable year shall not exceed $1,000.</text>
</subparagraph><subparagraph id="id7F0FF4107E0C4C07A2B4540638F23A9D"><enum>(B)</enum><header>Limitation on
individual items</header><text>The qualified certification equipment
expenditures taken into account under subsection (a)(2) shall not
exceed—</text>
<clause id="id425FAF68D05E428DBD0DDA8086C7782B"><enum>(i)</enum><text>$500 with respect
to any blower door or duct leakage testing equipment, and</text>
</clause><clause id="idB97EAE7381AB4CD7B7F02B24A1D69572"><enum>(ii)</enum><text>$100 with
respect to any flue gas combustion equipment or digital manometer.</text>
</clause></subparagraph></paragraph><paragraph id="id40AA073269674AAE80435F04FE92E720"><enum>(3)</enum><header>Year
expenditures taken into account</header><text>The qualified certification
equipment expenditures of any taxpayer shall not be taken into account under
subsection (a)(2) before the taxable year in which the taxpayer has performed
25 certifications under sections 25E(d)(2)(A) and 179E(d)(2)(A).</text>
</paragraph></subsection><subsection id="idD4983CFEABC944BFB2C93CBE8AA71856"><enum>(d)</enum><header>Special
rules</header>
<paragraph id="idFD2DB763C3664F5CAE5AB8360DCE3E98"><enum>(1)</enum><header>Aggregation
rules</header><text>For purposes of this section, all persons treated as a
single employer under subsections (a) and (b) of section 52 shall be treated as
1 person.</text>
</paragraph><paragraph id="id48C0D968742E437A9F8025870DA5D2D4"><enum>(2)</enum><header>Basis
reduction</header><text>The basis of any property shall be reduced by the
portion of the cost of such property taken into account under subsection
(a).</text>
</paragraph><paragraph id="id28150B0CF09B44929825C3471B2421D6"><enum>(3)</enum><header>Denial of
double benefit</header>
<subparagraph id="id6ABCA963BEA2460AAF6252D87A8696BA"><enum>(A)</enum><header>In
general</header><text>No deduction shall be allowed for that portion of the
expenses otherwise allowable as a deduction for the taxable year which is equal
to the amount taken into account under subsection (a) for such taxable
year.</text>
</subparagraph><subparagraph id="id07F32C894CF54F339031BB2B02787755"><enum>(B)</enum><header>Amount
previously deducted</header><text>No credit shall be allowed under subsection
(a) with respect to any amount for which a deduction has been allowed in any
preceding taxable
year.</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idADCD5A9B43934654B0E7D577C6824A6A"><enum>(b)</enum><header>Credit treated
as part of general business credit</header><text>Section 38(b) is amended by
striking <quote>and</quote> at the end of paragraph (29), by striking the
period at the end of paragraph (30) and inserting <quote>plus</quote>, and by
adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="idCFEAFC01BE4543068552B08352D65872" style="OLC">
<paragraph id="id317E4570CCE244DEABA132F595E48CE2"><enum>(31)</enum><text>the energy
savings certification credit determined under section
45N(a).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id2E2B365F54B4456F8DFD85DD590FB8F6"><enum>(c)</enum><header>Conforming
amendments</header>
<paragraph id="id277DCED1114340C19C5DEFE2F5CD5F95"><enum>(1)</enum><text>Section 1016(a),
as amended by this Act, is amended by striking <quote>and</quote> at the end of
paragraph (39), by striking the period at the end of paragraph (40) and
inserting <quote>and</quote>, and by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="idC4071BF27BAC4553BB4F9AB3E14E6461" style="OLC">
<paragraph id="id80B75BFCB4EF406FA39FEC4785EB2AA9"><enum>(41)</enum><text>to the extent
provided in section
45N(d)(2).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id0F817C8B67D140AF9EA78C8DCAB8E1DF"><enum>(2)</enum><text>The table of
sections for subpart D of part IV of subchapter A of chapter 1 is amended by
inserting after the item relating to section 45M the following new item:</text>
<quoted-block id="id497a42d4-29f1-4ad2-855d-32bcbc077cd5" style="OLC">
<toc>
<toc-entry idref="idA8A5C84BF26E405485A9D7367A9A9CDA" level="section">Sec. 45N. Energy savings certification
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="idD0775950D75E4107977D0DB4BEFC9B3A"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to amounts
paid or incurred after the date of the enactment of this Act.</text>
</subsection></section>