[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 1637 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                S. 1637

   To amend the Internal Revenue Code of 1986 to improve and extend 
     certain energy-related tax provisions, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 7, 2009

 Ms. Snowe (for herself, Mrs. Feinstein, and Mr. Bingaman) 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 improve and extend 
     certain energy-related tax provisions, and for other purposes.

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

SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Expanding Building 
Efficiency Incentives Act of 2009''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.
    (c) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; amendment of 1986 Code; table of contents.
Sec. 2. Increase in, and extension of, new energy efficient home 
                            credit.
Sec. 3. Modification of deduction for energy efficient commercial 
                            buildings.
Sec. 4. Energy ratings of non-business property.
Sec. 5. Credit for home performance auditor certifications.

SEC. 2. INCREASE IN, AND EXTENSION OF, NEW ENERGY EFFICIENT HOME 
              CREDIT.

    (a) New Tier; Credit Amount for New Tier.--
            (1) New tier.--Subsection (c) of section 45L is amended to 
        read as follows:
    ``(c) Energy Savings Requirements.--
            ``(1) In general.--A dwelling unit meets the energy saving 
        requirements of this subsection if such unit is--
                    ``(A) described in paragraph (2),
                    ``(B) described in paragraph (3),
                    ``(C) a manufactured home described in paragraph 
                (4), or
                    ``(D) a manufactured home described in paragraph 
                (5).
            ``(2) Dwelling unit described in paragraph (2).--A dwelling 
        unit is described in this paragraph if such unit is certified--
                    ``(A) to have a level of annual heating and cooling 
                energy consumption which is at least 50 percent below 
                the annual level of heating and cooling energy 
                consumption of a comparable dwelling unit--
                            ``(i) which is constructed in accordance 
                        with the standards of chapter 4 of the 2003 
                        International Energy Conservation Code, as such 
                        Code (including supplements) is in effect on 
                        the date of the enactment of the Energy Tax 
                        Incentives Act of 2005, and
                            ``(ii) for which the heating and cooling 
                        equipment efficiencies correspond to the 
                        minimum allowed under the regulations 
                        established by the Department of Energy 
                        pursuant to the National Appliance Energy 
                        Conservation Act of 1987 and in effect at the 
                        time of completion of construction, and
                    ``(B) to have building envelope component 
                improvements account for at least \1/5\ of such 50 
                percent.
        The Secretary, in consultation with the Secretary of Energy 
        shall provide by regulation for the application of this 
        paragraph in the case of a dwelling unit in a multifamily 
        building that is more than 3 stories above grade, or in any 
        other building that is not within the scope of such chapter 4. 
        If, upon the acquisition of such unit by any person described 
        in subsection (a)(1)(A)(ii)(I), the amount of the credit 
        allowed under this section with respect to such unit shall be 
        disclosed to such person.
            ``(3) Dwelling unit described in paragraph (3).--A dwelling 
        unit is described in this paragraph if such unit is certified--
                    ``(A) to have a level of annual total energy 
                consumption (including heating, cooling, water heating, 
                lighting, and appliance energy use) which is at least 
                50 percent below the annual level of total energy 
                consumption of a comparable dwelling unit which is 
                constructed in accordance with the 2004 Supplement of 
                the 2003 International Energy Conservation Code, and
                    ``(B) to have building envelope component 
                improvements account for at least \1/5\ of such 50 
                percent.
            ``(4) Manufactured home described in paragraph (4).--A 
        manufactured home is described in this paragraph if such 
        manufactured home conforms to Federal Manufactured Home 
        Construction and Safety Standards (part 3280 of title 24, Code 
        of Federal Regulations) and meets the requirements of a 
        dwelling unit described in paragraph (2).
            ``(5) Manufactured home described in paragraph (5).--A 
        manufactured home is described in this paragraph if such 
        manufactured home conforms to Federal Manufactured Home 
        Construction and Safety Standards (part 3280 of title 24, Code 
        of Federal Regulations) and--
                    ``(A) meets the requirements of--
                            ``(i) a dwelling unit described in 
                        paragraph (2), applied by substituting `30 
                        percent' for `50 percent' both places it 
                        appears therein and by substituting `\1/3\' for 
                        `\1/5\' in subparagraph (B) thereof, or
                            ``(ii) a dwelling unit described in 
                        paragraph (3), or
                    ``(B) meets the requirements established by the 
                Administrator of the Environmental Protection Agency 
                under the Energy Star Labeled Homes program as in 
                effect on the date of the enactment of the Expanding 
                Building Efficiency Incentives Act of 2009, or
                    ``(C) meets the requirements under the Energy Star 
                Labeled Homes program established after the date of the 
                enactment of the Expanding Building Efficiency 
                Incentives Act of 2009.''.
            (2) Credit amount for new tier.--Paragraph (2) of section 
        45L(a) is amended to read as follows:
            ``(2) Applicable amount.--For purposes of paragraph (1), 
        the applicable amount is an amount equal to--
                    ``(A) in the case of a dwelling unit described in 
                paragraph (2) or (4) of subsection (c), $2,000,
                    ``(B) in the case of a dwelling unit described in 
                paragraph (3) of subsection (c), $5,000,
                    ``(C) in the case of a manufactured home described 
                in paragraph (5)(A)(i) or (5)(B) of subsection (c), 
                $1,500, and
                    ``(D) in the case of a manufactured home described 
                in paragraph (5)(A)(ii) or (5)(C) of subsection (c), 
                $2,500.
        Nothing in this section shall permit the same dwelling unit or 
        manufactured home to qualify for more than one applicable 
        amount.''.
    (b) Credit Available for Rental Units, Owner-builders, and 
Qualified Low-income Buildings; Credit Amount for Qualified Low-income 
Buildings.--
            (1) In general.--Paragraph (1) of section 45L(a) is amended 
        to read as follows:
            ``(1) In general.--For purposes of section 38--
                    ``(A) in the case of an eligible contractor, the 
                new energy efficient home credit for the taxable year 
                is the applicable amount for each qualified new energy 
                efficient home which is--
                            ``(i) constructed by the eligible 
                        contractor, and
                            ``(ii)(I) acquired by a person from such 
                        eligible contractor and used by any person as a 
                        residence during the taxable year, or
                            ``(II) used by such eligible contractor as 
                        a residence during the taxable year, and
                    ``(B) in the case of a taxpayer, the new energy 
                efficient home credit for the taxable year is the 
                applicable amount for each qualified new energy 
                efficient home which is in a qualified low-income 
                building (as defined in section 42(c)(2))--
                            ``(i) placed in service by the taxpayer 
                        during the taxable year, and
                            ``(ii) for which such taxpayer is allowed a 
                        credit under section 42 or a subaward under 
                        section 1602(c) of the American Recovery and 
                        Reinvestment Tax Act of 2009.''.
            (2) Credit amount.--Paragraph (2) of section 45L(a), as 
        amended by this section, is amended by adding at the end the 
        following new flush sentence:
        ``In the case of a dwelling unit in a qualified low-income 
        building (as so defined), the applicable dollar amount for such 
        a dwelling unit described in 1 of the preceding subparagraphs 
        shall be equal to 150 percent of the dollar amount otherwise 
        specified in such preceding subparagraph, except that if the 
        credit under section 42 with respect to such unit is determined 
        by applying section 42(d)(5)(B), then the applicable dollar 
        amount shall be 115 percent of such dollar amount so 
        specified.''.
            (3) No basis adjustment.--Section 45L(e) is amended by 
        inserting ``(other than a qualified low-income building)'' 
        after ``any property''.
    (c) Certification Method for High Rise Multifamily and Mixed Use 
Buildings.--Section 45L(d)(1) is amended by inserting ``, and in the 
case of high rise multifamily and mixed use buildings, after examining 
the methods required for such buildings under section 179D'' after 
``the Secretary of Energy''.
    (d) Credit Allowed Against Alternative Minimum Tax.--Subparagraph 
(B) of section 38(c)(4) is amended--
            (1) by redesignating clauses (vi), (vii), and (viii) as 
        clauses (vii), (viii), and (ix), respectively, and
            (2) by inserting after clause (v) the following new clause:
                            ``(vi) the credit determined under section 
                        45L,''.
    (e) Extension.--Subsection (g) of section 45L is amended to read as 
follows:
    ``(g) Termination.--This section shall not apply to the acquisition 
of any qualified new energy efficient home--
            ``(1) described in subsection (a)(2)(A) after December 31, 
        2012,
            ``(2) described in subsection (a)(2)(B) after December 31, 
        2013,
            ``(3) described in subsection (a)(2)(C) after December 31, 
        2010, and
            ``(4) described in subsection (a)(2)(D) after December 31, 
        2013.''.
    (f) Effective Dates.--
            (1) In general.--The amendments made by this section shall 
        apply to homes constructed and acquired or placed in service 
        after December 31, 2008.
            (2) AMT.--The amendments made by subsection (d) shall apply 
        to credits determined under section 45L of the Internal Revenue 
        Code of 1986 in taxable years beginning after December 31, 
        2008, and to carrybacks of such credits.

SEC. 3. MODIFICATION OF DEDUCTION FOR ENERGY EFFICIENT COMMERCIAL 
              BUILDINGS.

    (a) Increase in Maximum Amount of Deduction.--
            (1) In general.--Subparagraph (A) of section 179D(b)(1) is 
        amended by striking ``$1.80'' and inserting ``$3.00''.
            (2) Partial allowance.--Paragraph (1) of section 179D(d) is 
        amended to read as follows:
            ``(1) Partial allowance.--
                    ``(A) In general.--Except as provided in subsection 
                (f), if--
                            ``(i) the requirement of subsection 
                        (c)(1)(D) is not met, but
                            ``(ii) there is a certification in 
                        accordance with paragraph (6) that--
                                    ``(I) any system referred to in 
                                subsection (c)(1)(C) satisfies the 
                                energy-savings targets established by 
                                the Secretary under subparagraph (B) 
                                with respect to such system, or
                                    ``(II) the systems referred to in 
                                subsection (c)(1)(C)(ii) and subsection 
                                (c)(1)(C)(iii) together satisfy the 
                                energy-savings targets established by 
                                the Secretary under subparagraph (B) 
                                with respect to such systems,
                then the requirement of subsection (c)(1)(D) shall be 
                treated as met with respect to such system or systems, 
                and the deduction under subsection (a) shall be allowed 
                with respect to energy efficient commercial building 
                property installed as part of such system and as part 
                of a plan to meet such targets, except that subsection 
                (b) shall be applied to such property described in 
                clause (ii)(I) by substituting `$1.00' for `$3.00' and 
                to such property described in clause (ii)(II) by 
                substituting `$2.20' for `$3.00'.
                    ``(B) Regulations.--
                            ``(i) In general.--The Secretary, after 
                        consultation with the Secretary of Energy, 
                        shall establish a target for each system 
                        described in subsection (c)(1)(C) which, if 
                        such targets were met for all such systems, the 
                        building would meet the requirements of 
                        subsection (c)(1)(D).
                            ``(ii) Combined systems.--The Secretary, 
                        after consultation with the Secretary of 
                        Energy, shall establish not later than 6 months 
                        after the date of the enactment of the 
                        Expanding Building Efficiency Incentives Act of 
                        2009 a prescriptive partial compliance pathway 
                        for combined envelope and mechanical system 
                        performance that details the appropriate 
                        components, efficiency levels, or other 
                        relevant information for which the required 
                        level of combined savings in both categories 
                        can be deemed to have been achieved.''.
    (b) Denial of Double Benefit.--Section 179D is amended by 
redesignating subsections (g) and (h) as subsections (h) and (i), 
respectively, and by inserting after subsection (f) the following new 
subsection:
    ``(g) Coordination With New Energy Efficient Home Credit.--No 
deduction shall be allowed under this section with respect to any 
building or dwelling unit with respect to which a credit under section 
45L was allowed.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service in taxable years beginning after 
the date of the enactment of this Act.

SEC. 4. ENERGY RATINGS OF NON-BUSINESS PROPERTY.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
is amended by inserting after section 25D the following new section:

``SEC. 25E. ENERGY RATINGS OF NON-BUSINESS PROPERTY.

    ``(a) In General.--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 amount paid or incurred by the 
taxpayer for a qualified home energy rating conducted during such 
taxable year.
    ``(b) Limitation.--The amount allowed as a credit under subsection 
(a) with respect to any taxpayer for any taxable year shall not exceed 
$200.
    ``(c) Qualified Home Energy Rating.--For purposes of this section, 
the term `qualified home energy rating' means a home energy rating 
conducted with respect to any residence of the taxpayer by a home 
performance auditor certified by a provider accredited by the Building 
Performance Institute (BPI), the Residential Energy Services Network 
(RESNET), or equivalent rating system as determined by the Secretary of 
Energy.
    ``(d) Termination.--This section shall not apply with respect to 
any rating conducted after December 31, 2011.''.
    (b) Clerical Amendment.--The table of sections for subpart A of 
part IV of subchapter A chapter 1 is amended by inserting after the 
item relating to section 25D the following new item:

``Sec. 25E. Energy ratings of non-business property.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred in taxable years beginning after the 
date of the enactment of this Act.

SEC. 5. CREDIT FOR HOME PERFORMANCE AUDITOR CERTIFICATIONS.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
is amended by adding at the end the following new section:

``SEC. 45R. HOME PERFORMANCE AUDITOR CERTIFICATION CREDIT.

    ``(a)  In General.--For purposes of section 38, the home 
performance auditor certification credit determined under this section 
for any taxable year is an amount equal to the qualified training and 
certification costs paid or incurred by the taxpayer which may be taken 
into account for such taxable year.
    ``(b) Qualified Training and Certification Costs.--
            ``(1) In general.--The term `qualified training and 
        certification costs' means costs paid or incurred for training 
        which is required for the taxpayer or employees of the taxpayer 
        to be certified as home performance auditors for purposes of 
        providing qualified home energy ratings under section 25E(c).
            ``(2) Limitation.--The qualified training and certification 
        costs taken into account under subsection (a)(1) for the 
        taxable year with respect to any individual shall not exceed 
        $500 reduced by the amount of the credit allowed under 
        subsection (a)(1) to the taxpayer (or any predecessor) with 
        respect to such individual for all prior taxable years.
            ``(3) Year costs taken into account.--Qualified training 
        and certifications costs with respect to any individual shall 
        not be taken into account under subsection (a)(1) before the 
        taxable year in which the individual with respect to whom such 
        costs are paid or incurred has performed 25 qualified home 
        energy ratings under section 25E(c).
    ``(c) Special Rules.--
            ``(1) Aggregation rules.--For purposes of this section, all 
        persons treated as a single employer under subsections (a) and 
        (b) of section 52 shall be treated as 1 person.
            ``(2) Denial of double benefit.--
                    ``(A) In general.--No deduction shall be allowed 
                for that portion of the expenses otherwise allowable as 
                a deduction for the taxable year which is equal to the 
                amount taken into account under subsection (a) for such 
                taxable year.
                    ``(B) Amount previously deducted.--No credit shall 
                be allowed under subsection (a) with respect to any 
                amount for which a deduction has been allowed in any 
                preceding taxable year.''.
    (b) Credit Treated as Part of General Business Credit.--Section 
38(b) is amended by striking ``plus'' at the end of paragraph (34), by 
striking the period at the end of paragraph (35) and inserting 
``plus'', and by adding at the end the following new paragraph:
            ``(36) the home performance auditor certification credit 
        determined under section 45R(a).''.
    (c) Conforming Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 is amended by inserting after the 
item relating to section 45Q the following new item:

``Sec. 45R. Home performance auditor certification credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after the date of the enactment of 
this Act.
                                 <all>