[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3657 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3657

  To amend the Internal Revenue Code of 1986 to allow individuals and 
businesses a credit against income tax for the purchase of Energy Star 
                      compliant air conditioners.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 25, 2007

 Mr. Ferguson introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to allow individuals and 
businesses a credit against income tax for the purchase of Energy Star 
                      compliant air conditioners.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Energy Efficient Appliance Tax 
Credit for Air Conditioners Act of 2007''.

SEC. 2. CREDIT AGAINST INCOME TAX FOR PURCHASE OF ENERGY STAR COMPLIANT 
              AIR CONDITIONERS.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to other credits) is 
amended by adding at the end the following new section:

``SEC. 30D. ENERGY STAR COMPLIANT AIR CONDITIONERS.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to 25 percent of the cost of any Energy Star compliant air 
conditioner placed in service by the taxpayer during the taxable year.
    ``(b) Limitation.--The credit allowed by subsection (a) for each 
Energy Star compliant air conditioner shall not exceed $500.
    ``(c) Energy Star Compliant Air Conditioner.--For purposes of this 
section, the term `Energy Star compliant air conditioner' means any air 
conditioner (including room and central units)--
            ``(1) which meets the requirements for the Energy Star 
        program which are in effect at the time the air conditioner is 
        placed in service by the taxpayer, and
            ``(2) the original use of which begins with the taxpayer.
    ``(d) Application With Other Credits.--
            ``(1) Business credit treated as part of general business 
        credit.--So much of the credit which would be allowed under 
        subsection (a) for any taxable year (determined without regard 
        to this subsection) that is attributable to property of a 
        character subject to an allowance for depreciation shall be 
        treated as a credit listed in section 38(b) for such taxable 
        year (and not allowed under subsection (a)).
            ``(2) Personal credit.--The credit allowed under subsection 
        (a) (after the application of paragraph (1)) for any taxable 
        year shall not exceed the excess (if any) of--
                    ``(A) the regular tax liability (as defined in 
                section 26(b)) reduced by the sum of the credits 
                allowable under subpart A and sections 27, 30, 30B, and 
                30C, over
                    ``(B) the tentative minimum tax for the taxable 
                year.
    ``(e) Other Rules To Apply.--Rules similar to the rules of 
paragraphs (2), (3), (4), and (5) of section 30C(e) shall apply for 
purposes of this section.
    ``(f) Basis Adjustment.-- For purposes of this subtitle, the basis 
of any property shall be reduced by the amount of any credit allowed 
under this section with respect to such property.
    ``(g) Termination.--This section shall not apply to property placed 
in service after December 31, 2016.''.
    (b) Conforming Amendments.--
            (1) Subsection (a) of section 1016 of such Code is amended 
        by striking ``and'' at the end of paragraph (36), by striking 
        the period at the end of paragraph (37) and inserting ``, 
        and'', and by adding at the end the following new paragraph:
            ``(38) to the extent provided in section 30D(f).''.
            (2) The table of sections for subpart B of part IV of 
        subchapter A of chapter 1 of such Code is amended by adding at 
        the end the following new item:

``Sec. 30D. Energy Star compliant air conditioners.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.
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