[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2588 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
1st Session
S. 2588
To amend the Internal Revenue Code of 1986 to extend and update the
credit for nonbusiness energy property.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 26, 2019
Ms. Hassan (for herself and Ms. Collins) 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 extend and update the
credit for nonbusiness energy property.
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 ``Home Energy Savings Act''.
SEC. 2. EXTENSION OF CREDIT FOR NONBUSINESS ENERGY PROPERTY.
(a) In General.--Subsection (g)(2) of section 25C of the Internal
Revenue Code of 1986 is amended by striking ``December 31, 2017'' and
inserting ``December 31, 2019''.
(b) Effective Date.--The amendments made by this section shall
apply to property placed in service after December 31, 2017.
SEC. 3. UPDATING CREDIT FOR NONBUSINESS ENERGY PROPERTY.
(a) In General.--Section 25C of the Internal Revenue Code of 1986,
as amended by section 2, is amended--
(1) in subsection (a)(1), by striking ``10 percent'' and
inserting ``15 percent'',
(2) in subsection (b)--
(A) in paragraph (1)--
(i) by striking ``$500'' and inserting
``$1,200'', and
(ii) by striking ``December 31, 2005'' and
inserting ``December 31, 2019'', and
(B) by striking paragraphs (2) and (3) and
inserting the following:
``(2) Limitation on insulation material or system.--In the
case of amounts paid or incurred for components described in
subsection (c)(3)(A) by any taxpayer for any taxable year, the
credit allowed under this section with respect to such amounts
for such year shall not exceed the excess (if any) of $600 over
the aggregate credits allowed under this section with respect
to such amounts for all prior taxable years ending after
December 31, 2019.
``(3) Limitation on windows.--
``(A) In general.--
``(i) Energy star most efficient.--In the
case of amounts paid or incurred by any
taxpayer for any taxable year for components
described in subsection (c)(3)(B) which meet
the most efficient certification under
applicable Energy Star program requirements,
the credit allowed under this section with
respect to such amounts for such year shall not
exceed the excess (if any) of $600 over the
aggregate credits allowed under this section
with respect to such amounts for all prior
taxable years ending after December 31, 2019.
``(ii) Energy star.--In the case of amounts
paid or incurred by any taxpayer for any
taxable year for components described in
subsection (c)(3)(B) which do not meet the most
efficient certification under applicable Energy
Star program requirements, the credit allowed
under this section with respect to such amounts
for such year shall not exceed the excess (if
any) of $200 over the aggregate credits allowed
under this section with respect to such amounts
for all prior taxable years ending after
December 31, 2019.
``(B) Election.--
``(i) In general.--For purposes of any
amounts paid or incurred by any taxpayer for
components described in subsection (c)(3)(B),
the credit allowed under this section shall
only be allowed for components described in
clause (i) of subparagraph (A) or clause (ii)
of such subparagraph, but not both, as elected
by the taxpayer during the first taxable year
in which such credit is being claimed by the
taxpayer.
``(ii) Irrevocability.--The Secretary
shall, through such rules, regulations, and
procedures as are determined appropriate,
establish procedures for making an election
under this subparagraph, which shall require
that--
``(I) any election made by the
taxpayer shall be irrevocable, and
``(II) such election shall remain
in effect for all subsequent taxable
years.
``(4) Limitation on doors.--In the case of amounts paid or
incurred for components described in subsection (c)(3)(C) by
any taxpayer for any taxable year, the credit allowed under
this section with respect to such amounts for such year shall
not exceed--
``(A) the excess (if any) of $500 over the
aggregate credits allowed under this section with
respect to such amounts for all prior taxable years
ending after December 31, 2019, or
``(B) $250 for each exterior door.
``(5) Limitation on residential energy property
expenditures.--The amount of the credit allowed under this
section by reason of subsection (a)(2) shall not exceed--
``(A) in the case of any energy-efficient building
property--
``(i) for any item of property described in
subparagraph (A), (B), or (C) of subsection
(d)(3), $600, and
``(ii) for any item of property described
in subparagraph (D) or (E) of such subsection,
$400, and
``(B) in the case of any qualified natural gas,
propane, or oil furnace or hot water boiler (as defined
in subsection (d)(4)), an amount equal to--
``(i) $600 for a hot water boiler, and
``(ii) in the case of a furnace, an amount
equal to the sum of--
``(I) $300, plus
``(II) if the taxpayer is
converting from a non-condensing
furnace to a condensing furnace,
$300.'',
(3) in subsection (c)--
(A) in paragraph (2)--
(i) by striking subparagraphs (A) and (B)
and inserting the following:
``(A) applicable Energy Star program requirements,
in the case of an exterior window, a skylight, or an
exterior door, and'',
(ii) by redesignating subparagraph (C) as
subparagraph (B), and
(iii) in subparagraph (B), as so
redesignated, by striking ``2009
International'' and all that follows through
``Act of 2009'' and inserting ``2015 IECC (as
defined in section 45L(b)(5))'',
(B) in paragraph (3)--
(i) in subparagraph (B), by adding ``and''
at the end,
(ii) in subparagraph (C), by striking ``,
and'' and inserting a period, and
(iii) by striking subparagraph (D), and
(C) by adding at the end the following new
paragraph:
``(5) Labor costs.--The term `qualified energy efficiency
improvements' includes expenditures for labor costs properly
allocable to the onsite preparation, assembly, or original
installation of any energy efficient building envelope
component.'',
(4) in subsection (d)--
(A) in paragraph (2)(A)--
(i) in clause (i), by adding ``or'' at the
end,
(ii) in clause (ii), by striking ``, or''
and inserting a period, and
(iii) by striking clause (iii),
(B) in paragraph (3)--
(i) by striking subparagraph (A) and
inserting the following:
``(A) an electric heat pump water heater which, in
the standard Department of Energy test procedure,
yields a uniform energy factor of at least 3.0,'',
(ii) in subparagraph (B), by striking
``January 1, 2009'' and inserting ``the date of
enactment of the Home Energy Savings Act'',
(iii) in subparagraph (C), by striking
``January 1, 2009'' and inserting ``the date of
enactment of the Home Energy Savings Act'',
(iv) by striking subparagraph (D) and
inserting the following:
``(D) a natural gas, propane, or oil water heater
which, in the standard Department of Energy test
procedure, yields--
``(i) in the case of a storage tank water
heater--
``(I) in the case of a medium-draw
water heater, a uniform energy factor
of not less than 0.78, and
``(II) in the case of a high-draw
water heater, a uniform energy factor
of not less than 0.80, and
``(ii) in the case of a tankless water
heater--
``(I) in the case of a medium-draw
water heater, a uniform energy factor
of not less than 0.87, and
``(II) in the case of a high-draw
water heater, a uniform energy factor
of not less than 0.90, and'', and
(v) in subparagraph (E), by striking ``of
at least 75 percent'' and inserting the
following: ``(as determined pursuant to the
applicable list published by the Environmental
Protection Agency for certified wood stoves,
hydronic heaters, or forced-air furnaces) of at
least--
``(i) in the case of any stove placed in
service before January 1, 2021, 73 percent, and
``(ii) in the case of any stove placed in
service after December 31, 2020, 75 percent.'',
(C) in paragraph (4), by striking ``not less than
95'' and inserting the following: ``not less than--
``(A) in the case of a furnace, 97 percent, and
``(B) in the case of a hot water boiler, 95
percent.'',
(D) by striking paragraph (5), and
(E) by redesignating paragraph (6) as paragraph
(5),
(5) in subsection (e), by adding the following new
paragraphs at the end:
``(4) Installation standards.--The terms `energy efficient
building envelope component' and `qualified energy property'
shall not include any components or property which are not
installed according to any applicable Air Conditioning
Contractors of America Quality Installation standards which are
in effect at the time that such components or property are
placed in service.
``(5) Replacement of terminated standards.--In the case of
any standard, requirement, or criteria applicable to any energy
efficient building envelope component or qualified energy
property which is terminated after the date of enactment of the
Home Energy Savings Act, the Secretary, in consultation with
the Secretary of Energy, shall identify a similar standard,
requirement, or criteria for purposes of determining the
eligibility of any such component or property for purposes of
credit allowed under this section.'', and
(6) in subsection (g)(2), by striking ``December 31, 2019''
and inserting ``December 31, 2026''.
(b) Effective Date.--The amendments made by this section shall
apply to property placed in service after December 31, 2019.
<all>