Modification and extension of credit for nonbusiness energy property

(a)

Credit made permanent

Section 25C of the Internal Revenue Code of 1986 is amended by striking subsection (g). (b)

Modification to limitations

Subsection (b) of section 25C of the Internal Revenue Code of 1986 is amended— (1)by striking $500 in paragraph (1) and inserting $1,000, and (2)by striking paragraph (2) and redesignating paragraph (3) as paragraph (2). (c)

Labor costs included in credit

Paragraph (1) of section 25C(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following flush sentence:

Such term includes expenditures for labor costs properly allocable to the onsite preparation, assembly, or original installation of the component.

(d)

Roofs

Section 25C(c) of the Internal Revenue Code of 1986 is amended— (1)in paragraph (1), by striking a metal roof with appropriate pigmented coatings, or an asphalt roof with appropriate cooling granules, and inserting or a roofing product, and (2)in paragraph (2)(D), by striking any metal roof or asphalt roof installed on a dwelling unit, but only if such roof has appropriate pigmented coatings or cooling granules which are and inserting any roofing product installed on a dwelling unit, but only if such roofing product is. (e)

Modifications to residential energy property expenditures

(1)

Qualified natural gas, propane, or oil furnaces or hot water boilers

Paragraph (4) of section 25C(d) of the Internal Revenue Code of 1986 is amended to read as follows:

(4)

Qualified natural gas, propane, or oil furnace or hot water boiler

The term qualified natural gas, propane, or oil furnace or hot water boiler means— (A)a natural gas or propane furnace which achieves an annual fuel utilization efficiency rate of not less than 95, (B)a natural gas or propane hot water boiler which achieves an annual fuel utilization efficiency rate of not less than 90, (C)an oil furnace or hot water boiler which— (i)achieves an annual fuel utilization efficiency rate of not less than 86, and (ii)(I)in the case of a hot water boiler, is installed with temperature reset or thermal purge controls and an indirect water heater, and (II)in the case of a furnace, is installed with an electronically commutated blower motor.

(2)

Water heaters

(A)

In general

Paragraph (3) of section 25C(d) of the Internal Revenue Code of 1986 is amended— (i)by striking electric heat pump water heater in subparagraph (A) and inserting integrated heat pump water heater, (ii)by striking a natural gas, propane, or oil water heater in subparagraph (D) and inserting an oil water heater, and (iii)by redesignating subparagraph (E) as subparagraph (G) and inserting after subparagraph (D) the following new subparagraphs:

(E)a natural gas or propane storage water heater with an energy factor of at least 0.67 or a thermal efficiency of at least 90 percent, (F)a natural gas or propane tankless water heater with an energy factor of at least 0.82 or a thermal efficiency of at least 90 percent, and

(B)

Limitation

Paragraph (2) of section 25C(b) of such Code, as redesignated by subsection (b), is amended by striking subparagraphs (A) through (C) and inserting the following:

(A)$1,000 in the case of— (i)any water heater described in subsection (d)(3)(A), (ii)any natural gas storage water heater described in subsection (d)(3)(E) which— (I)has an energy factor of 0.80 or higher, or (II)has a thermal efficiency of at least 90 percent, and (iii)any natural gas tankless water heater described in subsection (d)(3)(F) which— (I)has an energy factor of 0.90 or higher, or (II)has a thermal efficiency of at least 90 percent, and (B)$500 in the case of— (i)any natural gas storage water heater described in subsection (d)(3)(E) which has an energy factor which is at least 0.67 and less than 0.80, and (ii)any natural gas tankless water heater described in subsection (d)(3)(F) which has an energy factor which is at least 0.82 and less than 0.90.

(f)

Documentation requirement

Subsection (e) of section 25C of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

(4)

Documentation

(A)

In general

No credit shall be allowed under subsection (a) for any amount paid or incurred for a qualified energy efficiency improvement or for any residential energy property expenditure unless the taxpayer includes on the return of tax for the taxable year the verifiable product identification number with respect to— (i)in the case of a qualified energy efficiency improvement, the component installed in or on the taxpayer's dwelling unit, and (ii)in the case of a residential energy property expenditure, the qualified energy property. (B)

Verifiable product identification number

For purposes of this paragraph, the term verifiable product identification number means— (i)in the case of any insulation material or system described in subsection (c)(2)(A)— (I)if such material or system is installed by a contractor, a signed and dated statement from the contractor describing the insulation installed, including the thickness, coverage area, R-value, and such other information required by the Secretary, in consultation with the Chairman of the Federal Trade Commission, and (II)in any other case, such information about the material or system installed as the Secretary may require, (ii)in the case of any exterior door, exterior window, or skylight, the National Fenestration Rating Council certified product detail number or such other identification number determined by the Secretary, (iii)in the case of any roof described in subsection (c)(2)(C), the Cool Roof Rating Council rated roofing product identification number or such other identification number determined by the Secretary, and (iv)in the case of any qualified energy property, the Air-Conditioning Heating and Refrigeration Institute certified reference number or such other identification number used for heating, air conditioning, ventilation, or water heating equipment as determined by the Secretary.

(g)

Effective dates

(1)

In general

Except as provided by paragraph (2), the amendments made by this section shall apply to property placed in service after December 31, 2013. (2)

Permanent extension

The amendment made by subsection (a) shall apply to property placed in service after December 31, 2011.