[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1525 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                S. 1525

    To amend the Internal Revenue Code of 1986 to modify the energy 
     efficient appliance credit for appliances produced after 2007.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 24, 2007

  Mr. Smith (for himself, Mrs. Lincoln, Ms. Cantwell, and Ms. Snowe) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 to modify the energy 
     efficient appliance credit for appliances produced after 2007.

    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 ``Super-Efficient Appliance Incentives 
and Market Transformation Act of 2007''.

SEC. 2. MODIFICATIONS OF ENERGY EFFICIENT APPLIANCE CREDIT FOR 
              APPLIANCES PRODUCED AFTER 2007.

    (a) In General.--Section 45M of the Internal Revenue Code of 1986 
is amended to read as follows:

``SEC. 45M. ENERGY EFFICIENT APPLIANCE CREDIT.

    ``(a) General Rule.--
            ``(1) In general.--For purposes of section 38, the energy 
        efficient appliance credit determined under this section for 
        any taxable year is an amount equal to the sum of the credit 
        amounts determined under paragraph (2) for each type of 
        qualified energy efficient appliance produced by the taxpayer 
        during the calendar year ending with or within the taxable 
        year.
            ``(2) Credit amounts.--The credit amount determined for any 
        type of qualified energy efficient appliance is--
                    ``(A) the applicable amount determined under 
                subsection (b) with respect to such type, multiplied by
                    ``(B) the eligible production for such type.
    ``(b) Applicable Amount.--For purposes of subsection (a)--
            ``(1) Dishwashers.--The applicable amount is--
                    ``(A) $45 in the case of a residential model 
                dishwasher which--
                            ``(i) is manufactured in calendar year 2008 
                        or 2009, and
                            ``(ii) uses not more than 324 kilowatt 
                        hours per year and 5.8 gallons per cycle, and
                    ``(B) $75 in the case of a residential model 
                dishwasher which--
                            ``(i) is manufactured in calendar year 
                        2008, 2009, or 2010, and
                            ``(ii) uses not more than 307 kilowatt 
                        hours per year and 5.0 gallons per cycle (5.5 
                        gallons for dishwashers designed for greater 
                        than 12 place settings).
            ``(2) Clothes washers.--The applicable amount is--
                    ``(A) $75 in the case of a residential model top-
                loading clothes washer which--
                            ``(i) is manufactured in calendar year 
                        2008, and
                            ``(ii) meets or exceeds a 1.72 MEF and does 
                        not exceed an 8.0 water consumption factor,
                    ``(B) $125 in the case of a residential model top-
                loading clothes washer which--
                            ``(i) is manufactured in calendar year 2008 
                        or 2009, and
                            ``(ii) meets or exceeds a 1.8 MEF and does 
                        not exceed a 7.5 water consumption factor,
                    ``(C) $150 in the case of a residential or 
                commercial model clothes washer which--
                            ``(i) is manufactured in calendar year 
                        2008, 2009, or 2010, and
                            ``(ii) meets or exceeds 2.0 MEF and does 
                        not exceed a 6.0 water consumption factor, and
                    ``(D) $250 in the case of a residential or 
                commercial model clothes washer which--
                            ``(i) is manufactured in calendar year 
                        2008, 2009, or 2010, and
                            ``(ii) meets or exceeds 2.2 MEF and does 
                        not exceed a 4.5 water consumption factor.
            ``(3) Refrigerators.--The applicable amount is--
                    ``(A) $50 in the case of a residential model 
                refrigerator which--
                            ``(i) is manufactured in calendar year 
                        2008, and
                            ``(ii) consumes at least 20 percent, but 
                        not more than 22.9 percent, less kilowatt hours 
                        per year than the 2001 energy conservation 
                        standards,
                    ``(B) $75 in the case of a residential model 
                refrigerator which--
                            ``(i) is manufactured in calendar year 2008 
                        or 2009, and
                            ``(ii) consumes at least 23 percent, but 
                        not more than 24.9 percent, less kilowatt hours 
                        per year than the 2001 energy conservation 
                        standards,
                    ``(C) $100 in the case of a residential model 
                refrigerator which--
                            ``(i) is manufactured in calendar year 
                        2008, 2009, or 2010, and
                            ``(ii) consumes at least 25 percent, but 
                        not more than 29.9 percent, less kilowatt hours 
                        per year than the 2001 energy conservation 
                        standards, and
                    ``(D) $200 in the case of a residential model 
                refrigerator which--
                            ``(i) is manufactured in calendar year 
                        2008, 2009, or 2010, and
                            ``(ii) consumes at least 30 percent less 
                        kilowatt hours per year than the 2001 energy 
                        conservation standards.
            ``(4) Dehumidifiers.--The applicable amount is--
                    ``(A) $15 in the case of a dehumidifier which--
                            ``(i) is manufactured in calendar year 
                        2008, and
                            ``(ii) has a capacity less than or equal to 
                        45 pints per day and is 7.5 percent more 
                        efficient than the applicable Department of 
                        Energy energy conservation standard effective 
                        October 2012, and
                    ``(B) $25 in the case of a dehumidifier which--
                            ``(i) is manufactured in calendar year 
                        2008, and
                            ``(ii) has a capacity greater than 45 pints 
                        per day and is 7.5 percent more efficient than 
                        such conservation standard.
    ``(c) Eligible Production.--The eligible production in a calendar 
year with respect to each type of qualified energy efficient appliance 
is the excess of--
            ``(1) the number of appliances of such type which are 
        produced by the taxpayer for sale within the United States 
        during such calendar year, over
            ``(2) the average number of appliances of such type which 
        were produced by the taxpayer (or any predecessor) for sale 
        within the United States during the preceding 2-calendar year 
        period.
    ``(d) Types of Qualified Energy Efficient Appliances.--For purposes 
of this section, the types of qualified energy efficient appliances 
are--
            ``(1) dishwashers described in subsection (b)(1),
            ``(2) clothes washers described in subsection (b)(2),
            ``(3) refrigerators described in subsection (b)(3), and
            ``(4) dehumidifiers described in subsection (b)(4).
    ``(e) Limitations.--
            ``(1) Aggregate credit amount allowed.--Except as provided 
        in paragraph (2), the aggregate amount of credit allowed under 
        subsection (a) with respect to a taxpayer for any taxable year 
        shall not exceed $100,000,000 reduced by the amount of the 
        credit allowed under subsection (a) to the taxpayer (or any 
        predecessor) for all prior taxable years beginning after 
        December 31, 2007.
            ``(2) Amount allowed for certain clothes washers and 
        refrigerators.--For purposes of paragraph (1), clothes washers 
        described in subsection (b)(2)(D) and refrigerators described 
        in subsection (b)(3)(D) shall not be taken into account.
            ``(3) Limitation based on gross receipts.--The credit 
        allowed under subsection (a) with respect to a taxpayer for the 
        taxable year shall not exceed an amount equal to 2 percent of 
        the average annual gross receipts of the taxpayer for the 3 
        taxable years preceding the taxable year in which the credit is 
        determined beginning after December 31, 2007.
            ``(4) Gross receipts.--For purposes of this subsection, the 
        rules of paragraphs (2) and (3) of section 448(c) shall apply.
    ``(f) Definitions.--For purposes of this section:
            ``(1) Dishwasher.--The term `dishwasher' means a dishwasher 
        subject to the energy conservation standards established by the 
        Department of Energy.
            ``(2) Clothes washer.--The term `clothes washer' includes a 
        clothes washer subject to the energy conservation standards 
        established by the Department of Energy.
            ``(3) Top-loading clothes washer.--The term `top-loading 
        clothes washer' means a clothes washer with the clothes 
        container compartment access located on the top of the machine.
            ``(4) Refrigerator.--The term `refrigerator' means an 
        automatic defrost refrigerator-freezer which has an internal 
        volume of at least 16.5 cubic feet.
            ``(5) Dehumidifier.--The term `dehumidifier' means a self-
        contained, electrically operated, and mechanically refrigerated 
        encased assembly consisting of--
                    ``(A) a refrigerated surface that condenses 
                moisture from the atmosphere,
                    ``(B) a refrigerating system, including an electric 
                motor,
                    ``(C) an air-circulating fan, and
                    ``(D) means for collecting or disposing of 
                condensate.
            ``(6) Gallons per cycle.--The term `gallons per cycle' 
        means the amount of water, expressed in gallons, required to 
        complete a normal cycle of a dishwasher.
            ``(7) MEF.--The term `MEF' means the modified energy factor 
        established by the Department of Energy for compliance with the 
        Federal energy conservation standard.
            ``(8) Water consumption factor.--The term `water 
        consumption factor' means the quotient of the total weighted 
        per-cycle water consumption divided by the cubic foot capacity 
        of the clothes washer.
            ``(9) 2001 energy conservation standard.--The term `2001 
        energy conservation standard' means the energy conservation 
        standards promulgated by the Department of Energy and effective 
        July 1, 2001.
    ``(g) Special Rules.--For purposes of this section:
            ``(1) In general.--Rules similar to the rules of 
        subsections (c), (d), and (e) of section 52 shall apply.
            ``(2) Controlled group.--
                    ``(A) In general.--All persons treated as a single 
                employer under subsection (a) or (b) of section 52 or 
                subsection (m) or (o) of section 414 shall be treated 
                as a single producer.
                    ``(B) Inclusion of foreign corporations.--For 
                purposes of subparagraph (A), in applying subsections 
                (a) and (b) of section 52 to this section, section 1563 
                shall be applied without regard to subsection (b)(2)(C) 
                thereof.
            ``(3) Verification.--No amount shall be allowed as a credit 
        under subsection (a) with respect to which the taxpayer has not 
        submitted such information or certification as the Secretary, 
        in consultation with the Secretary of Energy, determines 
        necessary.''.
    (b) Credit Allowed Against the Alternative Minimum Tax.--Section 
38(c)(4)(B) of the Internal Revenue Code of 1986 (relating to specified 
credits) is amended--
            (1) by striking ``and'' at the end of clause (i),
            (2) by striking the period at the end of clause (ii)(II) 
        and inserting ``, and'', and
            (3) by adding at the end the following new clause:
                            ``(iii) for taxable years beginning after 
                        December 31, 2007, the credit determined under 
                        section 45M.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to appliances produced after December 31, 2007.
                                 <all>