II 110th CONGRESS 2d Session S. 2576 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.

1.

Short title

This Act may be cited as the Clean Stove Act of 2008.

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:

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.