S 1637 ISCommentsClose CommentsPermalink

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

August 7, 2009CommentsClose CommentsPermalink

Ms. SNOWE (for herself, Mrs. FEINSTEIN, and Mr. BINGAMAN) introduced the following bill; which was read twice and referred to the Committee on FinanceCommentsClose CommentsPermalink

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

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

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’.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(c) Table of Contents- The table of contents for this Act is as follows:CommentsClose CommentsPermalink





Sec. 1. Short title; amendment of 1986 Code; table of contents.CommentsClose CommentsPermalink





Sec. 2. Increase in, and extension of, new energy efficient home credit.CommentsClose CommentsPermalink





Sec. 3. Modification of deduction for energy efficient commercial buildings.CommentsClose CommentsPermalink





Sec. 4. Energy ratings of non-business property.CommentsClose CommentsPermalink





Sec. 5. Credit for home performance auditor certifications.CommentsClose CommentsPermalink

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

(a) New Tier; Credit Amount for New Tier-CommentsClose CommentsPermalink





(1) NEW TIER- Subsection (c) of section 45L is amended to read as follows:CommentsClose CommentsPermalink





‘(c) Energy Savings Requirements-CommentsClose CommentsPermalink





‘(1) IN GENERAL- A dwelling unit meets the energy saving requirements of this subsection if such unit is--CommentsClose CommentsPermalink





‘(A) described in paragraph (2),CommentsClose CommentsPermalink





‘(B) described in paragraph (3),CommentsClose CommentsPermalink





‘(C) a manufactured home described in paragraph (4), orCommentsClose CommentsPermalink





‘(D) a manufactured home described in paragraph (5).CommentsClose CommentsPermalink





‘(2) DWELLING UNIT DESCRIBED IN PARAGRAPH (2)- A dwelling unit is described in this paragraph if such unit is certified--CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(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, andCommentsClose CommentsPermalink





‘(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, andCommentsClose CommentsPermalink





‘(B) to have building envelope component improvements account for at least 1/5 of such 50 percent.CommentsClose CommentsPermalink





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.CommentsClose CommentsPermalink





‘(3) DWELLING UNIT DESCRIBED IN PARAGRAPH (3)- A dwelling unit is described in this paragraph if such unit is certified--CommentsClose CommentsPermalink





‘(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, andCommentsClose CommentsPermalink





‘(B) to have building envelope component improvements account for at least 1/5 of such 50 percent.CommentsClose CommentsPermalink





‘(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).CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(A) meets the requirements of--CommentsClose CommentsPermalink





‘(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, orCommentsClose CommentsPermalink





‘(ii) a dwelling unit described in paragraph (3), orCommentsClose CommentsPermalink





‘(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, orCommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(2) CREDIT AMOUNT FOR NEW TIER- Paragraph (2) of section 45L(a) is amended to read as follows:CommentsClose CommentsPermalink





‘(2) APPLICABLE AMOUNT- For purposes of paragraph (1), the applicable amount is an amount equal to--CommentsClose CommentsPermalink





‘(A) in the case of a dwelling unit described in paragraph (2) or (4) of subsection (c), $2,000,CommentsClose CommentsPermalink





‘(B) in the case of a dwelling unit described in paragraph (3) of subsection (c), $5,000,CommentsClose CommentsPermalink





‘(C) in the case of a manufactured home described in paragraph (5)(A)(i) or (5)(B) of subsection (c), $1,500, andCommentsClose CommentsPermalink





‘(D) in the case of a manufactured home described in paragraph (5)(A)(ii) or (5)(C) of subsection (c), $2,500.CommentsClose CommentsPermalink





Nothing in this section shall permit the same dwelling unit or manufactured home to qualify for more than one applicable amount.’.CommentsClose CommentsPermalink





(b) Credit Available for Rental Units, Owner-builders, and Qualified Low-income Buildings; Credit Amount for Qualified Low-income Buildings-CommentsClose CommentsPermalink





(1) IN GENERAL- Paragraph (1) of section 45L(a) is amended to read as follows:CommentsClose CommentsPermalink





‘(1) IN GENERAL- For purposes of section 38--CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(i) constructed by the eligible contractor, andCommentsClose CommentsPermalink





‘(ii)(I) acquired by a person from such eligible contractor and used by any person as a residence during the taxable year, orCommentsClose CommentsPermalink





‘(II) used by such eligible contractor as a residence during the taxable year, andCommentsClose CommentsPermalink





‘(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))--CommentsClose CommentsPermalink





‘(i) placed in service by the taxpayer during the taxable year, andCommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘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.’.CommentsClose CommentsPermalink





(3) NO BASIS ADJUSTMENT- Section 45L(e) is amended by inserting ‘(other than a qualified low-income building)’ after ‘any property’.CommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink





(d) Credit Allowed Against Alternative Minimum Tax- Subparagraph (B) of section 38(c)(4) is amended--CommentsClose CommentsPermalink





(1) by redesignating clauses (vi), (vii), and (viii) as clauses (vii), (viii), and (ix), respectively, andCommentsClose CommentsPermalink





(2) by inserting after clause (v) the following new clause:CommentsClose CommentsPermalink





‘(vi) the credit determined under section 45L,’.CommentsClose CommentsPermalink





(e) Extension- Subsection (g) of section 45L is amended to read as follows:CommentsClose CommentsPermalink





‘(g) Termination- This section shall not apply to the acquisition of any qualified new energy efficient home--CommentsClose CommentsPermalink





‘(1) described in subsection (a)(2)(A) after December 31, 2012,CommentsClose CommentsPermalink





‘(2) described in subsection (a)(2)(B) after December 31, 2013,CommentsClose CommentsPermalink





‘(3) described in subsection (a)(2)(C) after December 31, 2010, andCommentsClose CommentsPermalink





‘(4) described in subsection (a)(2)(D) after December 31, 2013.’.CommentsClose CommentsPermalink





(f) Effective Dates-CommentsClose CommentsPermalink





(1) IN GENERAL- The amendments made by this section shall apply to homes constructed and acquired or placed in service after December 31, 2008.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

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

(a) Increase in Maximum Amount of Deduction-CommentsClose CommentsPermalink





(1) IN GENERAL- Subparagraph (A) of section 179D(b)(1) is amended by striking ‘$1.80’ and inserting ‘$3.00’.CommentsClose CommentsPermalink





(2) PARTIAL ALLOWANCE- Paragraph (1) of section 179D(d) is amended to read as follows:CommentsClose CommentsPermalink





‘(1) PARTIAL ALLOWANCE-CommentsClose CommentsPermalink





‘(A) IN GENERAL- Except as provided in subsection (f), if--CommentsClose CommentsPermalink





‘(i) the requirement of subsection (c)(1)(D) is not met, butCommentsClose CommentsPermalink





‘(ii) there is a certification in accordance with paragraph (6) that--CommentsClose CommentsPermalink





‘(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, orCommentsClose CommentsPermalink





‘(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,CommentsClose CommentsPermalink





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’.CommentsClose CommentsPermalink





‘(B) REGULATIONS-CommentsClose CommentsPermalink





‘(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).CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

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:CommentsClose CommentsPermalink

‘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.CommentsClose CommentsPermalink





‘(b) Limitation- The amount allowed as a credit under subsection (a) with respect to any taxpayer for any taxable year shall not exceed $200.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(d) Termination- This section shall not apply with respect to any rating conducted after December 31, 2011.’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘Sec. 25E. Energy ratings of non-business property.’.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

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:CommentsClose CommentsPermalink

‘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.CommentsClose CommentsPermalink





‘(b) Qualified Training and Certification Costs-CommentsClose CommentsPermalink





‘(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).CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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).CommentsClose CommentsPermalink





‘(c) Special Rules-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(2) DENIAL OF DOUBLE BENEFIT-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘(36) the home performance auditor certification credit determined under section 45R(a).’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘Sec. 45R. Home performance auditor certification credit.’.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink