[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2576 Introduced in Senate (IS)]







110th CONGRESS
  2d Session
                                S. 2576

   To amend the Internal Revenue Code of 1986 to allow a credit for 
qualified expenditures paid or incurred to replace certain wood stoves.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 30, 2008

   Mr. Crapo (for himself, Ms. Collins, Mr. Allard, and Mr. Tester) 
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 allow a credit for 
qualified expenditures paid or incurred to replace certain wood stoves.

    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 ``Clean Stove Act of 2008''.

SEC. 2. CREDIT FOR REPLACEMENT OF WOOD-BURNING STOVES MEETING 
              ENVIRONMENTAL STANDARDS.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to nonrefundable 
personal credits) is amended by inserting after section 25D the 
following new section:

``SEC. 25E. REPLACEMENT OF WOOD-BURNING STOVES.

    ``(a) Allowance of Credit.--In the case of an individual, there 
shall be allowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to the qualified stove replacement 
expenditures paid or incurred by the taxpayer for the taxable year.
    ``(b) Limitation.--The amount of the credit under subsection (a) 
with respect to the replacement of each non-compliant wood stove shall 
not exceed $500.
    ``(c) Qualified Stove Replacement Expenditures.--For purposes of 
this section--
            ``(1) In general.--The term `qualified stove replacement 
        expenditures' means expenditures made by the taxpayer for the 
        purchase and installation of a compliant stove which--
                    ``(A) is installed in a dwelling unit located in 
                the United States, and
                    ``(B) replaces a noncompliant wood stove used in 
                such dwelling unit.
        Such term includes expenditures for labor costs properly 
        allocable to the onsite preparation, assembly, or original 
        installation of the compliant stove.
            ``(2) Compliant stove.--The term `compliant stove' means--
                    ``(A) a wood-burning stove which meets the 
                requirements set forth in the `Standards of Performance 
                for New Residential Wood Heaters' issued by the 
                Environmental Protection Agency, and
                    ``(B) a pellet or corn-burning stove.
            ``(3) Noncompliant wood stove.--The term `noncompliant wood 
        stove' means any wood-burning stove that is not a compliant 
        stove.
    ``(d) Joint Occupancy, Cooperative Housing Corporations, and When 
Expenditure Made.--Rules similar to the rules of paragraphs (4), (5), 
and (8) of section 25D(e) shall apply for purposes of this section.
    ``(e) Basis Adjustment.--For purposes of this subtitle, if a credit 
is allowed under this section for 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.
    ``(f) Termination.--This section shall not apply to expenditures 
made after December 31, 2010.''.
    (b) Conforming Amendments.--
            (1) Subsection (a) of section 1016 of the Internal Revenue 
        Code of 1986 is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (36),
                    (B) by striking the period at the end of paragraph 
                (37) and inserting ``, and'', and
                    (C) by adding at the end the following new 
                paragraph:
            ``(38) to the extent provided in section 25E(e), in the 
        case of amounts with respect to which a credit has been allowed 
        under section 25E.''.
            (2) The table of sections for subpart A of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 25D the following new item:

``Sec. 25E. Replacement of wood-burning stoves.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to expenditures for stoves purchased after the date of the 
enactment of this Act.
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