S.Amdt. 1489

1. Adds SEC. ____. REPLACEMENT NATURAL GAS OR PROPANE FURNACE OR BOILER at the end of title III of division B

   Adds a section

   Inserted: SEC. ____. REPLACEMENT NATURAL GAS OR PROPANE FURNACE OR BOILER.

   Inserted: (a) In General.--Subpart A of part IV of subchapter A of chapter 1 (relating to nonrefundable personal credits), as amended by this Act, is amended by inserting after section 25D the following new section:

   Inserted: "SEC. 25E. REPLACEMENT NATURAL GAS OR PROPANE FURNACE OR BOILER.

   Inserted: "(a) Allowance of Credit.--In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year the cost of each replacement natural gas or propane furnace or boiler installed by the taxpayer during the taxable year in a dwelling unit located in the United States and used as a residence by the taxpayer.

   Inserted: "(b) Limitations.--The credit allowed under subsection (a) for any dwelling unit shall not exceed $300 over the aggregate cost taken into account under subsection (a) with respect to such unit for all preceding taxable years.

   Inserted: "(c) Carryforward of Unused Credit.--If the credit allowable under subsection (a) exceeds the limitation imposed by section 26(a) for such taxable year reduced by the sum of the credits allowable under this subpart (other than this section), such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such succeeding taxable year.

   Inserted: "(d) Replacement Natural Gas or Propane Furnace or Boiler.--

   Inserted: "(1) In general.--For purposes of this section, the term 'replacement natural gas furnace or boiler' means a natural gas or propane furnace or boiler which achieves at least 90 percent annual fuel utilization efficiency (AFUE) and replaces an existing natural gas or propane furnace or boiler which has an AFUE of less than 78 percent or which does not include a power burner or induced draft exhaust.

   Inserted: "(2) Labor costs.--Labor costs properly allocable to the onsite preparation, assembly, or original installation of a replacement natural gas or propane furnace or boiler and for piping or wiring to interconnect such natural gas or propane furnace or boiler to the dwelling unit shall be taken into account for purposes of this section.

   Inserted: "(e) Special Rules.--For purposes of this section--

   Inserted: "(1) Property financed by subsidized energy financing.--No credit shall be allowed under subsection (a) to the extent that the property is paid for by subsidized energy financing (as defined in section 48(a)(5)(C)).

   Inserted: "(2) No double benefit.--The amount of any deduction or other credit allowable under this chapter for any cost taken into account in computing the amount of the credit determined under subsection (a) shall be reduced by the amount of such credit attributable to such cost.

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   Inserted: "(3) Basis Adjustments.--For purposes of this subtitle, the basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit so allowed.

   Inserted: "(4) Joint occupancy, housing cooperatives, etc.--Rules similar to the rules of paragraphs (1), (2), (3), and (5) of section 25C(e) shall apply.

   Inserted: "(f) Termination.--The credit allowed under this section shall not apply to replacement natural gas or propane furnaces or boilers installed after December 31, 2005.".

   Inserted: (b) Credit Allowed Against Regular Tax and Alternative Minimum Tax.--

   Inserted: (1) In general.--Section 25E(b), as added by subsection (a), is amended--

   Inserted: (A) by striking "The credit" and inserting the following:

   Inserted: "(1) Dollar amount.--The credit", and

   Inserted: (B) by adding at the end the following new paragraph:

   Inserted: "(2) Limitation based on amount of tax.--The credit allowed under subsection (a) for the taxable year shall not exceed the excess of--

   Inserted: "(A) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over

   Inserted: "(B) the sum of the credits allowable under this subpart (other than this section) and section 27 for the taxable year.".

   Inserted: (2) Conforming amendments.--

   Inserted: (A) Section 25E(c), as added by subsection (a), is amended by striking "section 26(a) for such taxable year reduced by the sum of the credits allowable under this subpart (other than this section)" and inserting "subsection (b)(2)".

   Inserted: (B) Section 23(b)(4)(B), as amended by this Act, is amended by striking "sections 25C and 25D" and inserting "sections 25C, 25D, and 25E".

   Inserted: (C) Section 24(b)(3)(B), as amended by this Act, is amended by striking "and 25D" and inserting "25D, and 25E".

   Inserted: (D) Section 25(e)(1)(C), as amended by this Act, is amended by inserting "25E," after "25D,".

   Inserted: (E) Section 25B(g)(2), as amended by this Act, is amended by striking "23, 25C, and 25D" and inserting "23, 25C, 25D, and 25E".

   Inserted: (F) Section 26(a)(1), as amended by this Act, is amended by striking "and 25D" and inserting "25D, and 25E".

   Inserted: (G) Section 904(h), as amended by this Act, is amended by striking "and 25D" and inserting "25D, and 25E".

   Inserted: (H) Section 1400C(d), as amended by this Act, is amended by striking "and 25D" and inserting "25D, and 25E".

   Inserted: (c) Additional Conforming Amendments.--

   Inserted: (1) Section 23(c), as in effect for taxable years beginning before January 1, 2004, and as amended by this Act, is amended by inserting ", 25E," after "sections 25D".

   Inserted: (2) Section 25(e)(1)(C), as in effect for taxable years beginning before January 1, 2004, and as amended by this Act, is amended by inserting "25E," after "25D,".

   Inserted: (3) Section 1016(a), as amended by this Act, is amended by striking "and" at the end of paragraph (33), by striking the period at the end of paragraph (34) and inserting "; and", and by adding at the end the following new paragraph:

   Inserted: "(35) to the extent provided in section 25E(e)(3), in the case of amounts with respect to which a credit has been allowed under section 25E.".

   Inserted: (4) Section 1400C(d), as in effect for taxable years beginning before January 1, 2004, and as amended by this Act, is amended by striking "sections 25C and 25D" and inserting "sections 25C, 25D, and 25E".

   Inserted: (5) The table of sections for subpart A of part IV of subchapter A of chapter 1, as amended by this Act, is amended by inserting after the item relating to section 25D the following new item:

   Inserted: "Sec. 25E. Replacement natural gas or propane furnace or boiler.".

   Inserted: (d) Effective Dates.--

   Inserted: (1) In general.--Except as provided by paragraph (2), the amendments made by this section shall apply to property installed after the date of the enactment of this Act, in taxable years ending after such date.

   Inserted: (2) Subsection (b).--The amendments made by subsection (b) shall apply to taxable years beginning after December 31, 2003.

   Original wording

   At the end of title III of Division B, insert the following:

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As printed