[Congressional Record Volume 155, Number 178 (Thursday, December 3, 2009)]
[Senate]
[Page S12324]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. WYDEN (for himself, Ms. Stabenow, and Mrs. Gillibrand):
  S. 2829. A bill to amend the Internal Revenue Code of 1986 to allow 
the cost of labor for building envelope improvements to be included for 
purposes of the nonbusiness energy property tax credit; to the 
Committee on Finance.
  Mr. WYDEN. Mr. President, the Federal tax code is in great need of an 
overhaul and today I am introducing legislation to fix one small piece 
of it. My legislation will help struggling homeowners who are seeing 
their money literally going out the window as their heating costs go 
through the roof.
  The current tax code gives homeowners a tax credit for installing 
energy efficiency improvements, which is all well and good, but it only 
allows labor costs to be included for improvements inside their homes. 
If the homeowner is installing a new energy efficient furnace, labor 
costs are included in the expenses eligible for the tax credit. But for 
improvements like installing energy efficient windows, or doors, or 
insulation, or energy efficient roofing materials--improvements where 
labor is a major part of the cost, the tax credit only covers the cost 
of the materials and not the labor to install them. If this seems 
counterintuitive and counterproductive, that's because it is. Tilting 
the tax code to favor some types of home improvements over others is 
not a sound foundation for tax policy or energy policy.
  This legislation, which Senators Stabenow and Gillibrand have joined 
with me to coponsor, will fix this problem by including labor costs for 
all eligible energy efficiency improvements whether to the heating 
system or to the roof Our legislation doesn't change the amount of the 
overall credit or the kinds of energy efficiency improvements that can 
be made. It just makes it clear that the credit applies equally to 
labor costs to install all of the qualifying residential energy 
efficiency improvements, not just some. This will create a level 
playing field for homeowners when they are trying to decide which 
improvements to make especially for more labor intensive projects like 
installing insulation or new energy efficient roofing. It will also 
make all of these building energy saving opportunities more affordable. 
Most importantly, it will help Americans actually save energy and it 
will create jobs for those workers manufacturing and installing new, 
energy efficiency products.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2829

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

     SECTION 1. MODIFICATION TO NONBUSINESS ENERGY PROPERTY 
                   CREDIT.

       (a) In General.--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.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act.
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