I 111th CONGRESS 2d Session H. R. 5518 IN THE HOUSE OF REPRESENTATIVES June 10, 2010 Ms. Titus (for herself, Mr. Heller, Mr. Franks of Arizona, Ms. Giffords, and Ms. Berkley) 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 the energy investment tax credit and the credit for residential energy efficient property with respect to natural gas heat pumps.

1.

Short title

This Act may be cited as the Energy Efficient Heat Pump Tax Parity Act of 2010.

2.

Energy credit for natural gas heat pumps

(a)

In general

Subparagraph (A) of section 48(a)(3) of the Internal Revenue Code of 1986 is amended by striking or at the end of clause (vi), by inserting or at the end of clause (vii), and by adding at the end the following new clause: (viii)equipment which uses natural gas to heat and cool a structure, but only with respect to periods ending before January 1, 2017, . (b)

Effective date

The amendments made by this section shall apply to periods after the date of the enactment of this Act, in taxable years ending after such date, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).

3.

Credit for residential energy efficient property

(a)

In general

Subsection (a) of section 25D of the Internal Revenue Code of 1986 is amended by striking and at the end of paragraph (4), by striking the period at the end of paragraph (5) and inserting , and, and by adding at the end the following new paragraph: (6)30 percent of the qualified natural gas heat pump property expenditures made by the taxpayer during such year. . (b)

Qualified natural gas heat pump property expenditures

Subsection (d) of section 25D of such Code is amended by adding at the end the following new paragraph: (5)

Qualified natural gas heat pump property expenditures

(A)

In general

The term qualified natural gas heat pump property expenditure means an expenditure for qualified natural gas heat pump property installed on or in connection with a dwelling unit located in the United States and used as a residence by the taxpayer. (B)

Qualified natural gas heat pump property

The term qualified natural gas heat pump property means any equipment which— (i)uses natural gas as an energy source to heat and cool a dwelling unit referred to in subparagraph (A), and (ii)has a coefficient of performance in heating of at least 1.4 at 47 degrees Fahrenheit and a coefficient of performance in cooling of at least 1.2 at 95 degrees Fahrenheit. . (c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2010.