[Congressional Record Volume 160, Number 74 (Thursday, May 15, 2014)]
[Senate]
[Pages S3117-S3119]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 3182. Mr. CARDIN (for himself, Mrs. Feinstein, and Mr. Schatz)
submitted an amendment intended to be proposed to amendment SA 3060
proposed by Mr. Wyden to the bill H.R. 3474, to amend the Internal
Revenue Code of 1986 to allow employers to exempt employees with health
coverage under TRICARE or the Veterans Administration from being taken
into account for purposes of the employer mandate under the Patient
Protection and Affordable Care Act; which was ordered to lie on the
table; as follows:
Strike section 151 and insert the following:
SEC. 151. EXTENSION AND MODIFICATION OF CREDIT FOR
NONBUSINESS ENERGY PROPERTY.
(a) Treatment in 2014.--
(1) In general.--Paragraph (2) of section 25C(g) is amended
by striking ``December 31, 2013'' and inserting ``December
31, 2014''.
(2) Updated energy star requirements for windows, doors,
skylights, and roofing.--
(A) In general.--Paragraph (1) of section 25C(c) is amended
by striking ``which meets'' and all that follows through
``requirements)''.
(B) Energy efficient building envelope component.--
Subsection (c) of section 25C is amended by redesignating
paragraphs (2) and (3) as paragraphs (3) and (4),
respectively, and by inserting after paragraph (1) the
following new paragraph:
``(2) Energy efficient building envelope component.--The
term `energy efficient building envelope component' means a
building envelope component which meets--
``(A) applicable Energy Star program requirements, in the
case of a roof or roof products,
``(B) version 6.0 Energy Star program requirements, in the
case of an exterior window, a skylight, or an exterior door,
and
``(C) the prescriptive criteria for such component
established by the 2009 International Energy Conservation
Code, as such Code (including supplements) is in effect on
the date of the enactment of the American Recovery and
Reinvestment Tax Act of 2009, in the case of any other
component.''.
(C) Conforming amendment.--Subparagraph (D) of section
25C(c)(3), as so redesignated, is amended to read as follows:
``(D) any roof or roof products which are installed on a
dwelling unit and are specifically and primarily designed to
reduce the heat gain of such dwelling unit.''.
(3) Separate standards for tankless and storage water
heaters.--
(A) In general.--Subparagraph (D) of section 25C(d)(3) is
amended by striking ``which has either'' and all that follows
and inserting ``which has either--
``(i) in the case of a storage water heater, an energy
factor of at least 0.80 or a thermal efficiency of at least
90 percent, and
``(ii) in the case of any other water heater, an energy
factor of at least 0.90 or a thermal efficiency of at least
90 percent, and''.
[[Page S3118]]
(B) Storage water heaters.--Paragraph (3) of section 25C(d)
is amended by adding at the end the following flush sentence:
``For purposes of subparagraph (D)(i), the term `storage
water heater' means a water heater that has a water storage
capacity of more than 20 gallons but not more than 55
gallons.''.
(4) Modification of testing standards for biomass stoves.--
Subparagraph (E) of section 25C(d)(3) is amended by inserting
before the period the following: ``, when tested using the
higher heating value of the fuel and in accordance with the
Canadian Standards Administration B415.1 test protocol''.
(5) Separate standard for oil hot water boilers.--Paragraph
(4) of section 25C(d) is amended by striking ``95'' and
inserting ``95 (90 in the case of an oil hot water boiler)''.
(6) Effective date.--The amendments made by this subsection
shall apply to property placed in service after December 31,
2013.
(b) Treatment in 2015.--
(1) Performance based home energy improvements.--Subpart A
of part IV of subchapter A of chapter 1 is amended by adding
at the end the following new section:
``SEC. 25E. PERFORMANCE BASED ENERGY IMPROVEMENTS.
``(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 for a qualified whole home
energy efficiency retrofit an amount determined under
subsection (b).
``(b) Amount Determined.--
``(1) In general.--Subject to paragraph (4), the amount
determined under this subsection is equal to--
``(A) the base amount under paragraph (2), increased by
``(B) the amount determined under paragraph (3).
``(2) Base amount.--For purposes of paragraph (1)(A), the
base amount is $2,000, but only if the energy use for the
residence is reduced by at least 20 percent below the
baseline energy use for such residence as calculated
according to paragraph (5).
``(3) Increase amount.--For purposes of paragraph (1)(B),
the amount determined under this paragraph is $500 for each
additional 5 percentage point reduction in energy use.
``(4) Limitation.--In no event shall the amount determined
under this subsection exceed the lesser of--
``(A) $5,000 with respect to any residence, or
``(B) 30 percent of the qualified home energy efficiency
expenditures paid or incurred by the taxpayer under
subsection (c) with respect to such residence.
``(5) Determination of energy use reduction.--For purposes
of this subsection--
``(A) In general.--The reduction in energy use for any
residence shall be determined by modeling the annual
predicted percentage reduction in total energy costs for
heating, cooling, hot water, and permanent lighting. It shall
be modeled using computer modeling software approved under
subsection (d)(2) and a baseline energy use calculated
according to subsection (d)(1)(C).
``(B) Energy costs.--For purposes of subparagraph (A), the
energy cost per unit of fuel for each fuel type shall be
determined by dividing the total actual energy bill for the
residence for that fuel type for the most recent available
12-month period by the total energy units of that fuel type
used over the same period.
``(c) Qualified Home Energy Efficiency Expenditures.--For
purposes of this section, the term `qualified home energy
efficiency expenditures'--
``(1) means any amount paid or incurred by the taxpayer
during the taxable year for a qualified whole home energy
efficiency retrofit, including the cost of diagnostic
procedures, labor, and modeling,
``(2) includes only measures that have an average estimated
life of 5 years or more as determined by the Secretary, after
consultation with the Secretary of Energy, and
``(3) does not include any amount which is paid or incurred
in connection with any expansion of the building envelope of
the residence.
``(d) Qualified Whole Home Energy Efficiency Retrofit.--For
purposes of this section--
``(1) In general.--The term `qualified whole home energy
efficiency retrofit' means the implementation of measures
placed in service during the taxable year intended to reduce
the energy use of the principal residence of the taxpayer
which is located in the United States. A qualified whole home
energy efficiency retrofit shall--
``(A) subject to paragraph (4), be designed, implemented,
and installed by a contractor which is--
``(i) accredited by the Building Performance Institute
(hereafter in this section referred to as `BPI') or a
preexisting BPI accreditation-based State certification
program with enhancements to achieve State energy policy,
``(ii) a Residential Energy Services Network (hereafter in
this section referred to as `RESNET') accredited Energy Smart
Home Performance Team, or
``(iii) accredited by an equivalent certification program
approved by the Secretary, after consultation with the
Secretary of Energy, for this purpose,
``(B) install a set of measures modeled to achieve a
reduction in energy use of at least 20 percent below the
baseline energy use established in subparagraph (C), using
computer modeling software approved under paragraph (2),
``(C) establish the baseline energy use by calibrating the
model using sections 3 and 4 and Annex D of BPI Standard BPI-
2400-S-2011: Standardized Qualification of Whole House Energy
Savings Estimates, or an equivalent standard approved by the
Secretary, after consultation with Secretary of Energy, for
this purpose,
``(D) document the measures implemented in the residence
through photographs taken before and after the retrofit,
including photographs of its visible energy systems and
envelope as relevant, and
``(E) implement a test-out procedure, following guidelines
of the applicable certification program specified under
clause (i) or (ii) of subparagraph (A), or equivalent
guidelines approved by the Secretary, after consultation with
the Secretary of Energy, for this purpose, to ensure--
``(i) the safe operation of all systems post retrofit, and
``(ii) that all improvements are included in, and have been
installed according to, standards of the applicable
certification program specified under clause (i) or (ii) of
subparagraph (A), or equivalent standards approved by the
Secretary, after consultation with the Secretary of Energy,
for this purpose.
For purposes of subparagraph (A)(iii), an organization or
State may submit an equivalent certification program for
approval by the Secretary, in consultation with the Secretary
of Energy. The Secretary shall approve or deny such
submission not later than 180 days after receipt, and, if the
Secretary fails to respond in that time period, the submitted
equivalent certification program shall be considered
approved.
``(2) Approved modeling software.--For purposes of
paragraph (1)(B), the contractor (or, if applicable, the
person described in paragraph (4)) shall use modeling
software certified by RESNET as following the software
verification test suites in section 4.2.1 of RESNET
Publication No. 06-001 or certified by an alternative
organization as following an equivalent standard, as approved
by the Secretary, after consultation with the Secretary of
Energy, for this purpose.
``(3) Documentation.--The Secretary, after consultation
with the Secretary of Energy, shall prescribe regulations
directing what specific documentation is required to be
retained or submitted by the taxpayer in order to claim the
credit under this section, which shall include, in addition
to the photographs under paragraph (1)(D), a form approved by
the Secretary that is completed and signed by the qualified
whole home energy efficiency retrofit contractor under
penalties of perjury. Such form shall include--
``(A) a statement that the contractor (or, if applicable,
the person described in paragraph (4)) followed the specified
procedures for establishing baseline energy use and
estimating reduction in energy use,
``(B) the name of the software used for calculating the
baseline energy use and reduction in energy use, the
percentage reduction in projected energy savings achieved,
and a statement that such software was certified for this
program by the Secretary, after consultation with the
Secretary of Energy,
``(C) a statement that the contractor (or, if applicable,
the person described in paragraph (4)) will retain the
details of the calculations and underlying energy bills for 5
years and will make such details available for inspection by
the Secretary or the Secretary of Energy, if so requested,
``(D) a list of measures installed and a statement that all
measures included in the reduction in energy use estimate are
included in, and installed according to, standards of the
applicable certification program specified under clause (i)
or (ii) of subparagraph (A), or equivalent standards approved
by the Secretary, after consultation with the Secretary of
Energy,
``(E) a statement that the contractor (or, if applicable,
the person described in paragraph (4)) meets the requirements
of paragraph (1)(A), and
``(F) documentation of the total cost of the project in
order to comply with the limitation under subsection
(b)(4)(B).
``(4) Certified home energy rater.--For purposes of
paragraph (1)(A), a contractor shall be deemed to have
satisfied the accreditation requirement under such paragraph
if the contractor enters into a contract with a person that
satisfies such accreditation requirement for purposes of
modeling the energy use reduction described in paragraph
(1)(B).
``(e) Additional Rules.--For purposes of this section--
``(1) No double benefit.--
``(A) In general.--With respect to any residence, no credit
shall be allowed under this section for any taxable year in
which the taxpayer claims a credit under section 25C.
``(B) Renewable energy systems and appliances.--In the case
of a renewable energy system or appliance that qualifies for
another credit under this chapter, the resulting reduction in
energy use shall not be taken into account in determining the
percentage energy use reductions under subsection (b).
``(C) No double benefit for certain expenditures.--The term
`qualified home energy efficiency expenditures' shall not
include any expenditure for which a deduction or credit is
claimed by the taxpayer under
[[Page S3119]]
this chapter for the taxable year or with respect to which
the taxpayer receives any Federal energy efficiency rebate.
``(2) Principal residence.--The term `principal residence'
has the same meaning as when used in section 121.
``(3) Special rules.--Rules similar to the rules under
paragraphs (4), (5), (6), (7), and (8) of section 25D(e) and
section 25C(e)(2) shall apply, as determined by the
Secretary, after consultation with the Secretary of Energy.
``(4) Basis adjustments.--For purposes of this subtitle, if
a credit is allowed under this section with respect to any
expenditure with respect to any property, the increase in the
basis of such property which would (but for this paragraph)
result from such expenditure shall be reduced by the amount
of the credit so allowed.
``(5) Election not to claim credit.--No credit shall be
determined under subsection (a) for the taxable year if the
taxpayer elects not to have subsection (a) apply to such
taxable year.
``(6) Multiple year retrofits.--If the taxpayer has claimed
a credit under this section in a previous taxable year, the
baseline energy use for the calculation of reduced energy use
must be established after the previous retrofit has been
placed in service.
``(f) Termination.--This section shall not apply with
respect to any costs paid or incurred after December 31,
2015.
``(g) Secretary Review.--The Secretary, after consultation
with the Secretary of Energy, shall establish a review
process for the retrofits performed, including an estimate of
the usage of the credit and a statistically valid analysis of
the average actual energy use reductions, utilizing utility
bill data collected on a voluntary basis, and report to
Congress not later than June 30, 2015, any findings and
recommendations for--
``(1) improvements to the effectiveness of the credit under
this section, and
``(2) expansion of the credit under this section to rental
units.''.
(2) Conforming amendments.--
(A) Section 1016(a) is amended--
(i) by striking ``and'' at the end of paragraph (36),
(ii) by striking the period at the end of paragraph (37)
and inserting ``, and'', and
(iii) by adding at the end the following new paragraph:
``(38) to the extent provided in section 25E(e)(4), in the
case of amounts with respect to which a credit has been
allowed under section 25E.''.
(B) Section 6501(m) is amended by inserting ``25E(e)(5),''
after ``section''.
(C) 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. Performance based energy improvements.''.
(3) Effective date.--The amendments made by this subsection
shall apply to amounts paid or incurred for a qualified whole
home energy efficiency retrofit placed in service after
December 31, 2014.
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