110 HR 1385 IH: EXTEND the Energy Efficiency
U.S. House of Representatives
2007-03-07
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.
(a)This Act may be cited
as the EXTEND the Energy Efficiency
Incentives Act of 2007
.
(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.
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.
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="HFC02728B99374C23975D4961340032EE"><enum>101.</enum><header>Performance
based energy improvements for non-business property</header>
<subsection commented="no" display-inline="no-display-inline" id="H553ED9893A47437C97B41633FB9DBA2D"><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="H653E96E13E2A49DB8EC9A04126006FB6" style="OLC">
<section commented="no" display-inline="no-display-inline" id="HB07CF6815DEC42739C3270EF4390AF32"><enum>25E.</enum><header>Performance
based energy improvements</header>
<subsection commented="no" display-inline="no-display-inline" id="HB7C3F74355BC479EA8F011C9AAD817DD"><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="HD6584856A3E24D15A6B9CECCD33600D5"><enum>(b)</enum><header>Limitations</header>
<paragraph commented="no" display-inline="no-display-inline" id="HB791B9B2F5F249FA94D2ABE6271313AE"><enum>(1)</enum><header>In
general</header><text>The amount allowed as a credit under subsection (a) shall
not exceed the product of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H56FFD4EAE0774984AD34BA71A8E53F3"><enum>(A)</enum><text>the qualified
energy savings achieved, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HBE175BE79C3A4A7EB7059E665CF70267"><enum>(B)</enum><text>$4,000.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB276AAB0192E419E9600BA238CD176E8"><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><paragraph commented="no" display-inline="no-display-inline" id="HFE5250D9F0A64C4DAC58D8799234EAD7"><enum>(3)</enum><header>Limitation based
on amount of tax</header><text>In the case of taxable years to which section
26(a)(2) does not apply, the credit allowed under subsection (a) for any
taxable year shall not exceed the excess of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HEA2DE12D5EC940B2A6B484B9C63DB52E"><enum>(A)</enum><text>the sum of the
regular tax liability (as defined in section 26(b)) plus the tax imposed by
section 55, over</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6A03922A680645BC95D38766E98E693B"><enum>(B)</enum><text>the sum of the
credit allowable under this subpart (other than this section and sections 23,
24, and 25B) and section 27 for the taxable year.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H24EA31054DF74BA3938606C87B041046"><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="H848629F3336D4082B800D0CB4851A971"><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="H7175D99C9C8749269CCCE56EF9FD3606"><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="H432736ABFF2E4023A64D7239AE5772E2"><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="HDF147183C933407DAED9CB958C7107A9"><enum>(A)</enum><text>no ownership
requirement shall be imposed, and</text>
</subparagraph><subparagraph id="H243AA4CDF49E4087AEF1B446EA1E32F3"><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="HE3884AD7343048AE88B5370085384200"><enum>(d)</enum><header>Qualified energy
savings</header><text>For purposes of this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HDCACF13377C049D5BE148E31A665AE6F"><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="HC4FB997B2F3241B0A96CF1D76822529C"><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="H616A7E697E4747938756F7A95E68E7"><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="H5FF6B5D119F649C58F004FE83DD60825"><enum>(2)</enum><header>Certification</header>
<subparagraph id="HF3875B860FFA44A9B05F74B63E1BEA60"><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="HC8D163B7265247F598D768A8AAFD1703"><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="HD6D0676BEE7D4FFF94C55E02BF84866"><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="H8B7EEC82DD22402C88C6CD5BF6DEB6F1"><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="HA6BD59AE943142699CE9EE8DE32B20F2"><enum>(g)</enum><header>Termination</header><text>This
section shall not apply with respect to any property placed in service after
December 31,
2011.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H7D17FBB1EAD64414BDA798D4699DDA2"><enum>(b)</enum><header>Interim guidance
on certification</header>
<paragraph commented="no" display-inline="no-display-inline" id="HCFF3436E84AD41D4A4BFDA5460498CF7"><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="H8211020C8F0D4C13A200BF8144773765"><enum>(A)</enum><text>the procedures and
methods for making certifications under sections 25E(d)(2)(A) and 179F(d)(2)(A)
of the Internal Revenue Code of 1986, as added by subsection (a) and section
203, respectively;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4AD6EEE214B6408C82F1004BE2365242"><enum>(B)</enum><text>the recognition of
qualified individuals under sections 25E(d)(2)(B) and 179F(d)(2)(B) of such
Code for the purpose of making such certifications;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC6A6E9D74109412186E1B690DD1957ED"><enum>(C)</enum><text>how participation
in State energy efficiency programs can be used in the procedures and methods
described in subparagraph (A).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H61CB276999C945BE9D4ED6582217F8DD"><enum>(2)</enum><header>Consultation
with stakeholders</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H1C31042423C54490874790632FD84D22"><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="HFE7566765DDD4C25821968F3A3220080"><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="HD6358E0759E54880A620B902B1EEFA52"><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="H81E548E60EA2423400C718F03628CD05"><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="H7DC07353E35A4838874DB80479FB24A1"><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="HA84400D22F7949BE80CB9EC3D7CB6CF"><enum>(c)</enum><header>Alternative
certification methods</header>
<paragraph commented="no" display-inline="no-display-inline" id="H550AC45B36A342DC95A9DDE7C58F2CA1"><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 179F(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="HD2AFD981B62F44EC984800E3E497001B"><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="H33F2C7BCBF68499297FB8F7816C6A6AC"><enum>(d)</enum><header>Conforming
amendments</header>
<paragraph commented="no" id="H3C90563339AC4576AB205DFDFDBD8545"><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="H3274221398284D2E8036A51E31DE3C53" style="OLC">
<paragraph commented="no" id="HA1A6D6B33DAA4543B44970EC1674B3C0"><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="HAFE36ACE157340DE9E48F588B5D7941"><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="H528B42F8863347169942F5F9B4C9CADB" style="OLC">
<toc>
<toc-entry idref="HB07CF6815DEC42739C3270EF4390AF32" 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="H9A1491C587F44F9B960071323CE261E"><enum>(e)</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="HFD34F10E9B254B3FAF493D299B9F98CE" 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="HCD5A3B48D2AA4E449646B346A3EFB63"><enum>(a)</enum><header>Extension</header><text>Subsection
(g) of section 25C (relating to termination) is amended by striking
<quote>December 31, 2007</quote> and inserting <quote>December 31,
2011</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HD94334F9DA51473D94F48DD7151D0547"><enum>(b)</enum><header>Labor costs for
qualified energy efficiency improvements</header><text>Section 25C(c)(1) is
amended by adding at the end the following new flush sentence:</text>
<quoted-block display-inline="no-display-inline" id="HE21FC56CF449473293E4AC2895003726" style="OLC">
<quoted-block-continuation-text quoted-block-continuation-text-level="paragraph">The amount
taken into account under subsection (a)(1) with respect to qualified energy
efficiency improvements shall include expenditures for labor costs properly
allocable to the onsite preparation, assembly, or original installation of any
component described in this
paragraph.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HED38F4A919414B6BA3BC5700D9457DC5"><enum>(c)</enum><header>Modifications
for residential energy efficiency property expenditures</header>
<paragraph id="H9CE3B516FFBF4E28B1EA6BC6D2E98039"><enum>(1)</enum><header>Increased
limitation for oil furnaces and natural gas, propane, and oil hot water
boilers</header>
<subparagraph id="H6BEB274B508B400997AE8EE4C42F1F61"><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="H990723AA526946E5A2537DE75EC5003D" style="OLC">
<subparagraph id="H83980E8E4181433BA2165C20FF6BAF45"><enum>(B)</enum><text>$150 for any
qualified natural gas furnace or qualified propane furnace, and</text>
</subparagraph><subparagraph id="H04653B4854B544C400DC6D9FC5EEA517"><enum>(C)</enum><text>$300 for—</text>
<clause id="HED00139C91DB47EBBB6D55B5262948AD"><enum>(i)</enum><text>any item of
energy-efficient building property, and</text>
</clause><clause id="HE2A7F5E38FD040F58636A5C644110060"><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="H1C8C2868570A4E96B0002C3984B0979D"><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="H14C55D68180C4D2DA1D10025B9F49B17" style="OLC">
<clause id="H2233C4EC70D2401195E1675248C618CB"><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="H12A3D71049D24EA69F2CBD4EA4E47DC5"><enum>(2)</enum><header>Modifications of
standards for energy-efficient building property</header>
<subparagraph id="H09827621D0834CCBA6484DCE16DB5F1B"><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="HABA35D4876154D9AAE2417ED5D968617" style="OLC">
<subparagraph id="H73B7278A8FC7493B89B0C81B5CCA4401"><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,
2008.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H487ED1227834443B91842292ACC09CDD"><enum>(B)</enum><header>Central air
conditioners</header><text>Section 25C(d)(3)(D) is amended by striking
<quote>2006</quote> and inserting <quote>2008</quote>.</text>
</subparagraph><subparagraph id="HF7D0E9E5CA89423CBF034C6C5CD9EC00"><enum>(C)</enum><header>Water
Heaters</header><text>Subparagraph (E) of section 25C(d) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H379718F862C34B5CA181D571BFF2B9CD" style="OLC">
<subparagraph id="H8ADF26523C5842B6A66621008DC62CE2"><enum>(E)</enum><text>a natural gas,
propane, or oil water heater which has either an energy factor of at least 0.80
or a thermal efficiency of at least 90
percent.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H488C88BF80D848E100FE6B2744BAF62F"><enum>(D)</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="HE0A5A498AFF64FD7BEAA5B9DD82561D0" style="OLC">
<paragraph id="HF95E4BF65D604415AC82861C8FBB00CF"><enum>(4)</enum><header>Qualified
natural gas, propane, and oil furnaces and hot water boilers</header>
<subparagraph id="H0EF9D660124D44ABADA9948DB85E34CF"><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="H1449822688054389BF7BDE164C9C72C5"><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 90.</text>
</subparagraph><subparagraph id="HCAC4BBEE68264CF4AFFB44DC10CD709"><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="H010A7AB51D8A4C25AD316742F9D6E579"><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 90.</text>
</subparagraph><subparagraph id="HD905AC5A3A1F47F3AA808CF8793EEF27"><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="H10950488D1434E01AC87B69FC9B6798"><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><paragraph id="H763C40B429554FEDB97B476B96437732"><enum>(3)</enum><header>Elimination of
lifetime limitation</header><text>Paragraph (1) of section 25C(b) is amended by
inserting <quote>by reason of subsection (a)(1)</quote> after <quote>under this
section</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB1C991A9A7CB43D3A7DADB6E1FD13EAA"><enum>(d)</enum><header>Modification of
qualified energy efficiency improvements</header>
<paragraph commented="no" display-inline="no-display-inline" id="H7F9B7812804C47C18863AE1B585BB511"><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="H39A8F6F1E5434089B223A7887D24A91C"><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="H4C4F8BB67FDC493DB389C900322DE3C5"><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="H3CD0739552C8489D938B3C6C1EF2AD5B"><enum>(B)</enum><text>by inserting
<quote>or cooling granules</quote> after <quote>pigmented
coatings</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H21E34D6AF8EF49A2BF013FB526AF658B"><enum>(e)</enum><header>Natural gas
fired heat pumps</header><text>Section 25C(d)(3), as amended by this section,
is amended by striking <quote>and</quote> at the end of subparagraph (D), by
striking the period at the end of subparagraph (E) and inserting <quote>,
and</quote>, and by adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HAC1FFA6284364209A88275066F4DE8BE" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HF57B88F4865149D7ACD1AE8D632D4CF5"><enum>(F)</enum><text>a natural gas
fired heat pump with a heating coefficient of performance (COP) of at least
1.1.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H7F8679A15D6D4B2B85BCEFC435E128A7"><enum>(f)</enum><header>Elimination of
credit for qualified energy efficiency improvements in 2010</header>
<paragraph id="H1BD0CADCEDC544BCAED5F467C9BE498E"><enum>(1)</enum><header>In
general</header><text>Subsection (a) of section 25C is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H717B6B25AA224BC3BAF2D069CC5C4246" style="OLC">
<subsection id="H467C7E1650244FE3B1151DBA797F6F5E"><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="H740301338D794831837923CB02D71005"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph id="H26108E0068EC4C91872DD0A7F7001086"><enum>(A)</enum><text>Section 25C(b), as
amended by subsection (b), is amended by striking paragraphs (1) and (2) and by
redesignating paragraph (3) as paragraph (1).</text>
</subparagraph><subparagraph id="H31B055919EC949E5BA7247DA9B18EA84"><enum>(B)</enum><text>Section 25C(b)(1),
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="H2548E69B48F04D049209E1B73E22B9A2"><enum>(C)</enum><text>Section 25C is
amended by striking subsection (c).</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H256FE1208B6D447FAC002E86D3B1EB21"><enum>(g)</enum><header>Clarification of
eligibility of standards for qualified energy property</header><text>Section
25C(d)(2)(C) is amended by striking <quote>and</quote> at the end of clause
(i), by striking the period at the end of clause (ii) and inserting <quote>,
and</quote>, and by adding at the end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="H9504EB8E795C4E1E83A98FCBAD3C35DD" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="HAEEC8AAA21CC403C99D099197FDE18F8"><enum>(iii)</enum><text>shall allow for
the testing of products regardless of the size or capacity of the
product.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HE1A2BEF9EBD24E9C835F00DC00A69E40"><enum>(h)</enum><header>Effective
dates</header>
<paragraph id="H18E8B763EEDF4561A72CC183E6B856B3"><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="H3225F8C41B4A4481BFF07D87B3C33DB8"><enum>(2)</enum><header>Standards for
electric heat pumps and central air conditioners</header><text>The amendments
made by subparagraphs (A) and (B) subsection (c)(2) shall apply to property
placed in service after December 31, 2007.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEBB96F47A7DE46DB00EC96E000F40033"><enum>(3)</enum><header>Elimination of
credit for qualified energy efficiency improvements</header><text>The
amendments made by subsection (f) shall apply to property placed in service
after December 31, 2009.</text>
</paragraph></subsection></section><enum>II</enum><header>Business-related
energy improvements</header>
<section id="HD359C57F569F4D099D5F83867CBA7332"><enum>201.</enum><header>Extension and
clarification of new energy efficient home credit</header>
<subsection id="H6CD554A51CC246E997756F12C29361A9"><enum>(a)</enum><header>Extension</header><text display-inline="yes-display-inline">Subsection (g) of section 45L (relating to
termination), as amended by section 205 of division A of the Tax Relief and
Health Care Act of 2006, is amended by striking <quote>December 31,
2008</quote> and inserting <quote>December 31, 2011</quote>.</text>
</subsection><subsection id="H7247FDF545A4457994E9BFBC337DD804"><enum>(b)</enum><header>Clarification</header>
<paragraph id="H07DBBFA8E48245A8BD825500E7B221E"><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="HFBFA5B6F915D40ABA4EBCF00F4EC619D" style="OLC">
<subparagraph id="HF7BAA06028714E0AA7213D9C096D8092"><enum>(B)</enum><text>acquired by a
person from such eligible contractor, and</text>
</subparagraph><subparagraph id="HCF81AD666AB5461A945EE1A165F8C618"><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="HCACF3CEB6F2249BD8EFA17E5A71FD102"><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="H4E01B7E1991B46F7B1CFF69FFA4EEF02" section-type="subsequent-section"><enum>202.</enum><header>Extension and
modification of deduction for energy efficient commercial buildings</header>
<subsection id="H6DC19D810A37489094BCE67C9E00E55E"><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="HDD8CE30067B14253B7D5197E2EAD8C4D" style="OLC">
<subsection id="HD63A4C182C8945AEB342E8E100FEC3B4"><enum>(h)</enum><header>Termination</header><text display-inline="yes-display-inline">This section shall not apply with respect
to property—</text>
<paragraph id="HD0AAF7289A0A4927BA0064A85CA77E4D"><enum>(1)</enum><text>which is certified
under subsection (d)(6) after December 31, 2012, or</text>
</paragraph><paragraph id="H839345D5D3A14EF8920077AC24A9D4DB"><enum>(2)</enum><text>which is placed in
service after December 31, 2014.</text>
</paragraph><continuation-text continuation-text-level="subsection">A
provisional certification shall be treated as meeting the requirements of
paragraph (1) if it is based on the building plans, subject to inspection and
testing after
installation.</continuation-text></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H86E7722123BA48F8A06C659BFC845AC"><enum>(b)</enum><header>Increase in
maximum amount of deduction</header>
<paragraph id="HB9096DC837D747D092DF21FB0069E9DA"><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>$2.25</quote>.</text>
</paragraph><paragraph id="H455FB1E1DB3A4E9B91544500E93F942C"><enum>(2)</enum><header>Partial
allowance</header><text>Paragraph (1) of section 179D(d) is amended—</text>
<subparagraph id="H1AAB0B8EB70F4BB2B30020D6B171FDCD"><enum>(A)</enum><text>by striking
<quote>$.60</quote> and inserting <quote>$0.75</quote>, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H445DD274BD0F4E5F9813DC29433112FD"><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="H2FCE6873CBC4428B9CCD28C4173EC3AD"><enum>(c)</enum><header>Modifications to
certain special rules</header>
<paragraph commented="no" display-inline="no-display-inline" id="HCCF6240648B74B6A945C269B949E45F1"><enum>(1)</enum><header>Methods of
calculating energy savings</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H754F2B25018B4467BEFC5FB2D6EAE543"><enum>(A)</enum><header>In
general</header><text>Paragraph (2) of section 179D(d) is amended—</text>
<clause commented="no" display-inline="no-display-inline" id="H4881881FCB3145C7A6AC372F2D07A0FE"><enum>(i)</enum><text>by inserting
<quote>in detail</quote> after <quote>based</quote>,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H5A7F872ECBAB402B968723958814CB1C"><enum>(ii)</enum><text>by inserting
<quote>, except that the Secretary shall use Standard 90.1–2001 in lieu of the
California title 24 energy standards and the tables contained therein and the
Secretary may add requirements from Standard 90.1–2001 (or any successor
standard)</quote> before the period at the end, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H56220B5CDBA142FF8DAEEEA300AB8C62"><enum>(iii)</enum><text>by adding at the
end the following new sentence: <quote>The calculation methods contained in
such regulations shall also provide for the calculation of appropriate energy
savings for design methods and technologies not otherwise credited in such
manual or standard, including energy savings associated with natural
ventilation, evaporative cooling, automatic lighting controls (such as
occupancy sensors, photocells, and time clocks), day lighting, designs
utilizing semi-conditioned spaces which maintain adequate comfort conditions
without air conditioning or without heating, improved fan system efficiency
(including reductions in static pressure), advanced unloading mechanisms for
mechanical cooling (such as multiple or variable speed compressors), on-site
generation of electricity (including combined heat and power systems, fuel
cells, and renewable energy generation such as solar energy), and wiring with
lower energy losses than wiring satisfying Standard 90.1–2001 requirements for
building power distribution systems.</quote>.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1DBC598506E94FF3958B1C6D082D6F50"><enum>(B)</enum><header>Requirements for
computer software used in calculating energy and power consumption
costs</header><text>Paragraph (3)(B) of section 179D(d) is amended by striking
<quote>and</quote> at the end of clause (ii), by striking the period at the end
of clause (iii) and inserting <quote>, and</quote>, and by adding at the end
the following:</text>
<quoted-block display-inline="no-display-inline" id="H22F8403308044BED86BA13D108DC006D" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="H66FEEA21A800440C87959F008C2FECDB"><enum>(iv)</enum><text>which
automatically—</text>
<subclause commented="no" display-inline="no-display-inline" id="H1CEAE7E421154FCEB7270800B495E5C"><enum>(I)</enum><text>generates the
features, energy use, and energy and power consumption costs of a reference
building which meets Standard 90.1–2001,</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HB8B4281B081B4EC6ACE353A1B71EE070"><enum>(II)</enum><text>generates the
features, energy use, and energy and power consumption costs of a compliant
building or system which reduces the annual energy and power costs by 50
percent compared to Standard 90.1–2001, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HBDE4E858E4424A1183E69BBA7747E19"><enum>(III)</enum><text>compares 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>
</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB1436CCB76F74EC19373704E26D2323"><enum>(2)</enum><header>Targets for
partial allowance of credit</header><text>Paragraph (1)(B) of section 179D(d)
is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H49E70C8A4BEB49CD9700ADDCCFCDA51E"><enum>(A)</enum><text>by striking
<quote>The Secretary</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HB8E923F103D54D058963F164C260B6C5" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="H1AD3B0C05EA04E3F8B9914B47B05A261"><enum>(i)</enum><header>In
general</header><text>The Secretary</text>
</clause><after-quoted-block>,
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3FBDEA2C200542A7A4F136F74B9FD867"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H99A5F5300F89490799CA0909436C68E0" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="H8FFC5DE7161845A5BC00E800BE8FD719"><enum>(ii)</enum><header>Additional
requirements</header><text>For purposes of clause (i)—</text>
<subclause commented="no" display-inline="no-display-inline" id="HBF443250A27C4732B0040000A44DE530"><enum>(I)</enum><text>the Secretary
shall determine prescriptive criteria that can be modeled explicitly for
reference buildings which meet the requirements of subsection (c)(1)(D) for
different building types and regions,</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HB3CC4A9DA58346CBAE15C80902332E06"><enum>(II)</enum><text>a system may be
certified as meeting the target under subparagraph (A)(ii) if the appropriate
reference building either meets the requirements of subsection (c)(1)(D) with
such system rather than the comparable reference system (using the calculation
under paragraph (2)) or meets the relevant prescriptive criteria under
subclause (I), and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H3675B05BE9E946E2A2708C791C1CD3DD"><enum>(III)</enum><text>the lighting
system target shall be based on lighting power density, except that it shall
allow lighting controls credits that trade off for lighting power density
savings based on Section 3.2.2 of the 2005 California Nonresidential
Alternative Calculation Method Approval Manual.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H28D481F28EDC4B1FB96D494E7FEA7548"><enum>(iii)</enum><header>Publication</header><text>The
Secretary shall publish in the Federal Register the bases for the target levels
established in the regulations under clause
(i).</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HFE64FAB05FC4453DACC3B2005310EEEC"><enum>(d)</enum><header>Alternative
standards</header><text>Section 179D(d) is amended by adding at the end the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H7AD5FE5D99454F5EB6DC6910B15CAC67" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HE3170B93A57D4CEFB2EF5D74E5F1F6B1"><enum>(7)</enum><header>Alternative
standards pending final regulations</header><text>Until such time as the
Secretary issues final regulations under paragraph (1)(B)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HBC067C0567C74C9E9691ED2F33E142C4"><enum>(A)</enum><text>in the case of
property which is part of a building envelope, the building envelope system
target under paragraph (1)(A)(ii) shall be a 7 percent reduction in total
annual energy and power costs (determined in the same manner as under
subsection (c)(1)(D)), and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9CD6D5C37692401A9647DAAF00B91B5C"><enum>(B)</enum><text>in the case of
property which is part of the heating, cooling, ventilation, and hot water
systems, the heating, cooling, ventilation, and hot water system shall be
treated as meeting the target under paragraph (1)(A)(ii) if it would meet the
requirement in subsection (c)(1)(D) if combined with a building envelope system
and lighting system which met their respective targets under
paragraph(1)(A)(ii) (including interim targets in effect under subsections (f)
and subparagraph
(A)).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H324D3F86EA23485C00512BC3B8979B9D"><enum>(e)</enum><header>Modifications to
lighting standards</header>
<paragraph commented="no" display-inline="no-display-inline" id="H8162C50A5D4745D49C36E7A5479EDFBE"><enum>(1)</enum><header>Standards to be
alternate standards</header><text>Subsection (f) of section 179D is amended
by—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H0EF5380A41934F70A202345B051C30FE"><enum>(A)</enum><text>striking
<quote><header-in-text level="subsection" style="OLC">Interim</header-in-text></quote> in the heading and inserting
<quote><header-in-text level="subsection" style="OLC">Alternative</header-in-text></quote>, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2F92254492424B1EAAE82BBAAD41DE6B"><enum>(B)</enum><text>inserting <quote>,
or, if the taxpayer elects, in lieu of the target set forth in such final
regulations </quote> after <quote>lighting system</quote> at the end of the
matter preceding paragraph (1).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1F26650CA167412ABA003B4386CDDA08"><enum>(2)</enum><header>Qualified
individuals</header><text>Section 179D(d)(6)(C) is amended by adding at the end
the following: <quote>For purposes of certification of whether the alternative
target for lighting systems under subsection (f) is met, individuals qualified
to determine compliance shall include individuals who are certified as Lighting
Certified (LC) by the National Council on Qualifications for the Lighting
Professions, Certified Energy Managers (CEM) by the Association of Energy
Engineers, and LEED Accredited Professionals (AP) by the U.S. Green Buildings
Council.</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC04A82C0361D459300F05548A5F092DE"><enum>(3)</enum><header>Requirement for
bilevel switching</header><text>Section 179D(f)(2) is amended by adding at the
end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H981D9C49813A4E8E9881BEC3A57E11AC" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HAB30311A2CDE49299C2BC5C9B0D9BE1"><enum>(3)</enum><header display-inline="yes-display-inline">Application of subsection to bilevel
switching</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H6B1BCD110EE841F4A7C4D883D05EF758"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Notwithstanding
paragraph (2)(C)(i), this subsection shall apply to a system which does not
include provisions for bilevel switching if the reduction in lighting power
density is at least 37.5 percent of the minimum requirements in Table 9.3.1.1
or Table 9.3.1.2 (not including additional interior lighting allowances) of
Standard 90.1–2001.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD3D346C485DB4931B0E616EF00C3F41D"><enum>(B)</enum><header>Reduction in
deduction</header><text display-inline="yes-display-inline">In the case of a
system to which this subsection applies by reason of subparagraph (A),
paragraph (2) shall be applied—</text>
<clause commented="no" display-inline="no-display-inline" id="H7FFF9F28E710470100ACF6B728B4987E"><enum>(i)</enum><text display-inline="yes-display-inline">by substituting <quote>50 percent</quote>
for <quote>40 percent</quote> in subparagraph (A) thereof, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HFA001B7A46524A1D81ACDEA0A26E5C78"><enum>(ii)</enum><text display-inline="yes-display-inline">in subparagraph (B)(ii) thereof—</text>
<subclause commented="no" display-inline="no-display-inline" id="H01C42EC9486844DB9865BAF956207518"><enum>(I)</enum><text display-inline="yes-display-inline">by substituting <quote>37.5 percentage
points</quote> for <quote>25 percentage points</quote>, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HF09150BBC9CE47DBA44B073F15BC247F"><enum>(II)</enum><text display-inline="yes-display-inline">by substituting <quote>12.5</quote> for
<quote>15</quote>.</text>
</subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H9D9AF9944B684E34B253F397E4D3840"><enum>(f)</enum><header>Public
property</header><text>Paragraph (4) of section 179(d) is amended by striking
<quote>the Secretary shall promulgate a regulation to allow the allocation of
the deduction</quote> and inserting <quote>the deduction under this section
shall be allowed</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H769BB290F7C5489EBE091BF0A3D13900"><enum>(g)</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="HCBEC1AA9BB1146BB008DE217E3D219F"><enum>203.</enum><header>Deduction for
energy efficient low-rise buildings</header>
<subsection commented="no" display-inline="no-display-inline" id="HDFEDAE554AF84CD0B82611EEC74406FC"><enum>(a)</enum><header>In
general</header><text>Part VI of subchapter B of chapter 1, as amended by
section 404 of division A of the Tax Relief and Health Care Act of 2006, is
amended by inserting after section 179E the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H248731CFC60246E099B94DD65386444E" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H1211BA83FB8B4BEBB9EA295570550046"><enum>179F.</enum><header>Energy
efficient low-rise buildings deduction</header>
<subsection commented="no" display-inline="no-display-inline" id="H039D1A02D1A84A5EAE818938804C30E5"><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="H6D804D625E6C47359005349E00463D05"><enum>(b)</enum><header>Limitations</header>
<paragraph commented="no" display-inline="no-display-inline" id="H862DA5D7D37E40F5BE147F1891D00465"><enum>(1)</enum><header>In
general</header><text>The amount allowed as a credit under subsection (a) with
respect to any dwelling unit shall not exceed the product of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H7CE1022FEB85431AA4D244004862C673"><enum>(A)</enum><text>the qualified
energy savings achieved, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H53A6D6BC764D4AADBE48B8805748D144"><enum>(B)</enum><text>$12,000.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6ACEC537B538444192A839A25816259F"><enum>(2)</enum><header>Minimum amount
of qualified energy savings</header><text>No credit shall be allowed under
subsection (a) with respect to any dwelling unit in a 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="H032DE58014954D55AD001CB407D3FB5"><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="H47F9B286B5D84A47991976B9005231C5"><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 any dwelling unit located in a qualified
low-rise building of the taxpayer which is located in the United States.</text>
</paragraph><paragraph commented="no" id="H44435843723342E2B07CE49330B455FC"><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
179G.</text>
</paragraph><paragraph id="HD2FB2A9705A94B6DB4936D15E9F84739"><enum>(3)</enum><header>Qualified
low-rise building</header><text>The term <term>qualified low-rise
building</term> means a building—</text>
<subparagraph id="HD15F4FCE354843E3814BA6B21F4F9DFB"><enum>(A)</enum><text>with respect to
which depreciation is allowable under section 167,</text>
</subparagraph><subparagraph id="H03B0C4A8729B4EEF004F966C19F22CBE"><enum>(B)</enum><text>which is used for
multifamily housing, and</text>
</subparagraph><subparagraph id="HCF96A98A7F1A4660A0245097A074A031"><enum>(C)</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="H58A348D2B6694CF1922406303CBFE39"><enum>(d)</enum><header>Qualified energy
savings</header><text>For purposes of this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HB7CECA2FBC8E47C3A016F430AD00637E"><enum>(1)</enum><header>In
general</header><text>The term <term>qualified energy savings</term> means,
with respect to any dwelling unit in a qualified low-rise building, the amount
(measured as a percentage) by which—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HE226F53D9ABB44E8BE89C578BD594963"><enum>(A)</enum><text>the annual energy
use with respect to such dwelling unit 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="HC62B02972E3D4CAA954F8CBA69B77255"><enum>(B)</enum><text>the annual energy
use with respect to such dwelling unit 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="HD9C1FBF1557849388EEA49D8DD8ACC"><enum>(2)</enum><header>Certification</header>
<subparagraph id="H536FC5024B9E4F1EA814EDDE9DC95D4"><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="H4D43F681CF624698A6C349A04120263D"><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="H641C0B82B79D4F548DA3E1BD30AE027B"><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="HDB98A63A0D10488AAA977BF22D72323F"><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="H3CD2D878E80F40409DE9D16C5F3801C0"><enum>(g)</enum><header>Termination</header><text>This
section shall not apply with respect to any property placed in service after
December 31,
2011.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HDA300A060E914F4BB4728369EE605C98"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="HF1F4DDBFA9A840FA80DFDF65CA089C55"><enum>(1)</enum><text>Section 263(a)(1),
as amended by section 404 of division A of the Tax Relief and Health Care Act
of 2006, the 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="HBB70963E4677423B0081D9C9252376D8">
<subparagraph id="HDEDAE19A497E4EB2BF1100AA473430F6"><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="HF123E84F916C449492DCF488CAC639"><enum>(2)</enum><text>Section 312(k)(3)(B)
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" id="HFBF443F1B2C24CD6916D4D72A6BCFE9"><enum>(3)</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="HBF4B20DB8557466A96C6955DF8DBF8E4" style="OLC">
<paragraph commented="no" id="H4D49632383424CEBB9A7F2EEC9FF6F"><enum>(39)</enum><text>to the extent
provided in section
179F(f).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H758211124D514E10BF69C2DF27D7CF4"><enum>(4)</enum><text>Section 1245(a) 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" display-inline="no-display-inline" id="H6AD0CBAAD62449A8967700678BAF4745"><enum>(5)</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="H0CBF80AD41B34EF0A57B711205A061DB" style="OLC">
<toc>
<toc-entry idref="H1211BA83FB8B4BEBB9EA295570550046" level="section">Sec. 179F. Energy efficient low-rise buildings
deduction.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H070B5A631E3B443F82F0F00E7276B99"><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="HA5A90D2E294C405993BFFAA604F04464"><enum>204.</enum><header>Energy
efficient property deduction</header>
<subsection commented="no" display-inline="no-display-inline" id="H3B917E31C2EC41F59409662285BCE135"><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 179F the following new
section:</text>
<quoted-block display-inline="no-display-inline" id="H46E68B5021664FFCB2F5762937268F66" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H5E23AA7C491A435FB8BF6200E9FB672F"><enum>179G.</enum><header>Energy
efficient property</header>
<subsection commented="no" display-inline="no-display-inline" id="HF1D4969DDECE4FC68DE3A66200A16E32"><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="HD22D7A86409F44EF91C8C45E059C5434"><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="H8C1F44B2D2254A4D9BC7F32B9615D5E1"><enum>(1)</enum><text>$150 for any
advanced main air circulating fan,</text>
</paragraph><paragraph id="H3044461490BB466FB199464685DDC92C"><enum>(2)</enum><text>$450 for any
qualified natural gas furnace or qualified propane furnace, and</text>
</paragraph><paragraph id="H7712BFB0E3024A07ACC8904B30A5FE67"><enum>(3)</enum><text>$900 for—</text>
<subparagraph id="H648917B2D78D46BB901C1B4BF069C270"><enum>(A)</enum><text>any item of
energy-efficient building property, and</text>
</subparagraph><subparagraph id="H9249853CA25E44B6A40999A60639EBC"><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></subsection><subsection commented="no" display-inline="no-display-inline" id="HAE2DE90B77F440909FBE300045C13C44"><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="HF9875AE54355479F9892AA756691D78C"><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="H65C513D27290403A92B5FB20C5616569"><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="HF285423869BB49FAA9736563F052C46E"><enum>(B)</enum><text>originally placed
in service by the taxpayer.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3C44B1BEACF048EFA5E462A3BC4F9364"><enum>(2)</enum><header>Qualified energy
property</header><text>The term <term>qualified energy property</term> has the
meaning given such term by section 25C(d)(2).</text>
</paragraph></subsection><subsection id="H6421B0E064314589BDA3B09F17C8CDC0"><enum>(d)</enum><header>Basis
adjustments</header><text>For purposes of this subtitle, if a deduction 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
deduction so allowed.</text>
</subsection><subsection id="H598B3A446E5C4C0A86076CCBC4E348BF"><enum>(e)</enum><header>Termination</header><text>This
section shall not apply with respect to any property placed in service after
December 31,
2011.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HC73E689B2FCE4634BEC08E7246EEDDF"><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="H0DCE1EA5BA174B6D9F7B00E8E79B4C8B" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HEC57886065CA4E0D996D9700372F4069"><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
179G.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HD27FE34F61A7487AB8B94DA952578ED"><enum>(c)</enum><header>Conforming
amendments</header>
<paragraph id="HC82B26DB636B44B2A157DE94C5186969"><enum>(1)</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="H9721F33058314819B21F6563C8847FF1">
<subparagraph id="HC5017B071FF14C7E0040709403D5DA01"><enum>(M)</enum><text>expenditures for
which a deduction is allowed under section
179G.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H86E0C4E23AD4486F8471007F4B9B2860"><enum>(2)</enum><text>Section
312(k)(3)(B), as amended by section 203, is amended by striking <quote>179,
179A, 179B, 179C, 179D, 179E, or 179F</quote> each place it appears in the
heading and text and inserting <quote>179, 179A, 179B, 179C, 179D, 179E, 179F,
or 179G</quote>.</text>
</paragraph><paragraph commented="no" id="H7E59F03A7AD8465CB38500D004507100"><enum>(3)</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="H9D72B658FAE6480A82F034EAC079543B" style="OLC">
<paragraph commented="no" id="HD4FA20B772E04B7F8D84B87750DB9B49"><enum>(40)</enum><text>to the extent
provided in section
179G(e).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H18AF065A03AF451F8CB6315F7798E0CD"><enum>(4)</enum><text>Section 1245(a),
as amended by section 203 is amended by inserting <quote>179G,</quote> after
<quote>179F,</quote> both places it appears in paragraphs (2)(C) and
(3)(C).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4114DBC6BADB4BC492113153D2300A6"><enum>(5)</enum><text>The table of
sections for part VI of subchapter B is amended by inserting after the item
relating to section 179F the following new item:</text>
<quoted-block id="H909C41ADCFC6416D8220920159B2F320" style="OLC">
<toc>
<toc-entry idref="H1211BA83FB8B4BEBB9EA295570550046" level="section">Sec. 179G. 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="H475C17722DF94F51A8736C26F3DE10D"><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><enum>III</enum><header>Incentives for
energy savings certifications</header>
<section id="HB21CC7815B9843F8816C4C69057F6F57"><enum>301.</enum><header>Credit for
energy savings certifications</header>
<subsection id="H8251A07F1A3A40F5ADD3B94785F6A32E"><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="H08A1A03160E04A8CB70067A07294F52E" style="OLC">
<section id="HF0A8A3D8CD0941F6A235725E22943FC2"><enum>45O.</enum><header>Energy savings
certification credit</header>
<subsection id="H78F7C85CA4574D17B07D5D5D33F5B5A0"><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="H597774BAD6BA451995AE07053CA60C1"><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="H9CA8EDBF1BA2467B95803C564CC2AAE7"><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="H36A796F869BE4E79BA971BC7A64E8E58"><enum>(b)</enum><header>Qualified
training and certification costs</header>
<paragraph id="H2C28C926D54444D39F2365AD31C1C2F2"><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 179F(d)(2)(B) for the purpose of certifying
energy savings.</text>
</paragraph><paragraph id="H6F05FE1E49FC46228954355700008C9D"><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="H0243C7AA7C334C8E00FAEF93E93618E"><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 179F(d)(2)(A).</text>
</paragraph></subsection><subsection id="H8B453BA24B93428B87C08E013D3C111C"><enum>(c)</enum><header>Qualified
certification equipment expenditures</header>
<paragraph id="H78E3D7969DA443AEB05653F4D71E8321"><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="HC04C354EC1CF4296806BE26FCD4EB050"><enum>(A)</enum><text>blower
doors,</text>
</subparagraph><subparagraph id="H7F0FC560877C4109830032007C101254"><enum>(B)</enum><text>duct leakage
testing equipment,</text>
</subparagraph><subparagraph id="HF19DDA54FA694B93A25DD2806E6796C7"><enum>(C)</enum><text>flue gas
combustion equipment, and</text>
</subparagraph><subparagraph id="HA0F025AAC73642E49E451869005415DC"><enum>(D)</enum><text>digital
manometers.</text>
</subparagraph></paragraph><paragraph id="H8D0D8D299CA6406E875CF1D06FBC0046"><enum>(2)</enum><header>Limitation</header>
<subparagraph id="HDCBAF3DD080E4B519F321FCE8C835B37"><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="H019CC0C010F047DE8C11C818BF13DCD6"><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="HA04D6925927F45FF8DC8B3B6939CEEF8"><enum>(i)</enum><text>$500 with respect
to any blower door or duct leakage testing equipment, and</text>
</clause><clause id="H2AB44CCAAB754A8A00D5971D7BC0033C"><enum>(ii)</enum><text>$100 with respect
to any flue gas combustion equipment or digital manometer.</text>
</clause></subparagraph></paragraph><paragraph id="HB8A840425A7C4AC0AA16EA8441250882"><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 179F(d)(2)(A).</text>
</paragraph></subsection><subsection id="HD015618A130F42EBA40188A5DB4C8F72"><enum>(d)</enum><header>Special
rules</header>
<paragraph id="HB2E9F6446F774F2BB60309280292A4CF"><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="H9925E5D276C04AB39DDC2B79DF189D3D"><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="HC45C21FECFE3478D8CEB5219F345D66C"><enum>(3)</enum><header>Denial of double
benefit</header>
<subparagraph id="H0FE7E00C45BD45849085FCBA7F00AF"><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="H4CD446BD7D034D38A28B17E4AE3BA060"><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="H08FC6D5EBE9641FE87DDFB41AE77F865"><enum>(b)</enum><header>Credit treated
as part of general business credit</header><text>Section 38(b) is amended by
striking <quote>plus</quote> at the end of paragraph (30), by striking the
period at the end of paragraph (31) and inserting <quote>plus</quote>, and by
adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HFED0018523974F05BCAC3257852887BF" style="OLC">
<paragraph id="HD30B04E9802E4235A24F7B4CCC8FB3B6"><enum>(32)</enum><text>the energy
savings certification credit determined under section
45O(a).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HC2DC3AFCE1BE444997CD11540605F3B7"><enum>(c)</enum><header>Conforming
amendments</header>
<paragraph id="H7457D943A3DF4A1DB3741D8FC7129642"><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="H28C889B4D09045938EA8501D53604FEB" style="OLC">
<paragraph id="H0C8847291224435CB2F3CEF9CB20521E"><enum>(41)</enum><text>to the extent
provided in section
45O(d)(2).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H8E6924AA44AA44ACBE48877D34D97940"><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 45N the following new item:</text>
<quoted-block id="HBEF5065D21BE44BD90E2B8FB6161C876" style="OLC">
<toc>
<toc-entry idref="HF0A8A3D8CD0941F6A235725E22943FC2" level="section">Sec. 45O. Energy savings certification
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HC36CFFD697E242CFB1004CEA22F971F9"><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>