H.R. 1212House109th Congress (2005-2007)In Committee

Save America's Valuable Energy Resources Act of 2005

Introduced March 10, 2005

Legislative Activity

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HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

March 10, 2005

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HouseIntro Referral

Introduced in House

March 10, 2005

HouseIntro Referral

Referred to the House Committee on Ways and Means.

March 10, 2005

Floor Debate

24 members

What members said about H.R. 1212 on the floor

11 Republicans13 Democrats
Edward J. Markey
Rep. Edward J. MarkeyD-MA-7 · Apr 20, 2005

Mr. Chairman, this is truly a bad bill. Every day we have pictures on the screen of consumers pulling up to the gas pump, paying an arm and a leg for gasoline. We have 150,000 young men and women…

Joe Barton
Rep. Joe BartonR-TX-6 · Apr 20, 2005

Mr. Chairman, I yield myself 2 minutes. Mr. Chairman, I rise in strong support of H.R. 6, the Energy Policy Act of 2005. Passage of this comprehensive bill will ensure a more affordable,…

John D. Dingell
Rep. John D. DingellD-MI-15 · Apr 20, 2005

Mr. Chairman, I yield myself 3 minutes. (Mr. DINGELL asked and was given permission to revise and extend his remarks.) Mr. Chairman, we have a bad bill. It is represented as being something which is…

Sheila Jackson Lee
Rep. Sheila Jackson LeeD-TX-18 · Apr 20, 2005

Mr. Chairman, I thank the distinguished gentleman for yielding me this time. First of all, I am grateful that the Committee on Science had an opportunity to provide insight into this legislation. I…

Richard W. Pombo
Rep. Richard W. PomboR-CA-11 · Apr 20, 2005

Madam Chairman, I yield 2 minutes to the gentleman from Nevada (Mr. Gibbons), the subcommittee chairman. Madam Chairman, I yield 1\1/2\ minutes to the gentleman from New Mexico (Mr. Pearce), the…

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Nancy Pelosi
Rep. Nancy PelosiD-CA-8 · Apr 20, 2005

Madam Chairman, I thank the distinguished gentleman from California (Mr. Stark) who I am very proud of for yielding me time and for his leadership. I want to commend four of our ranking members, the…

Christopher Shays
Rep. Christopher ShaysR-CT-4 · Apr 20, 2005

Mr. Chairman, I rise in opposition to the legislation. Mr. Chairman, protecting our environment and promoting energy independence are two of the most important jobs I have as a Member of Congress.…

Sam Farr
Rep. Sam FarrD-CA-17 · Apr 20, 2005

Madam Chairman, I rise in strong opposition to this so- called comprehensive energy bill before us today. This energy package have a new wrapping and bow but it is the same white elephant gift for…

Peter A. DeFazio
Rep. Peter A. DeFazioD-OR-4 · Apr 20, 2005

Madam Chairman, over the past couple of years I have corresponded with the Department of Energy on an issue of particular concern to me. The Department of Energy continues to spend millions of…

Sherwood Boehlert
Rep. Sherwood BoehlertR-NY-24 · Apr 20, 2005

Mr. Chairman, with great regret, but with even greater conviction, I rise in opposition to this bill. While this bill certainly has some worthy provisions, including those reported out by our…

Rick Boucher
Rep. Rick BoucherD-VA-9 · Apr 20, 2005

Mr. Chairman, I want to thank the gentleman from Michigan for yielding this time to me and commend him on his outstanding leadership with regard to the energy bill now before us. I have supported the…

Nick J. Rahall II
Rep. Nick J. Rahall IID-WV-3 · Apr 20, 2005

Madam Chairman, I yield myself such time as I may consume. I rise in opposition to the pending legislation, surprise, because it will do absolutely nothing to lower the price of motor fuel and reduce…

Gene Green
Rep. Gene GreenD-TX-29 · Apr 20, 2005

Mr. Chairman, I thank the gentleman for yielding me this time. There was pressure to rush this bill out of the committee without a markup, but I am glad the committee made the right decision. We had…

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William M. Thomas
Rep. William M. ThomasR-CA-22 · Apr 20, 2005

Madam Chairman, I yield myself such time as I may consume. Once again the House is debating a ``comprehensive energy package.'' I do have to say that as far as the Ways and Means Committee is…

Roy Blunt
Rep. Roy BluntR-MO-7 · Apr 20, 2005

Mr. Chairman, I thank the gentleman from Texas for yielding me this time to speak in favor of this bill, and I thank him for his great leadership to bring this bill to the floor. For 6 years now, the…

Ralph M. Hall
Rep. Ralph M. HallR-TX-4 · Apr 20, 2005

Madam Chairman, I rise as the designee of the chairman and I offer amendment No. 1. Madam Chairman, I yield myself such time as I may consume. Madam Chairman, I offer a manager's amendment which sets…

Devin Nunes
Rep. Devin NunesR-CA-21 · Apr 20, 2005

Madam Chairman, I had an opportunity to go up to and visit in Alaska the gentleman from Alaska's (Chairman Young) district. And I find it really interesting to hear the opposition to this bill…

Don Young
Rep. Don YoungR-AK · Apr 20, 2005

Madam Chairman, I want to thank the gentleman from California (Chairman Pombo) and the gentleman from Texas (Chairman Barton) for their fine work on a good piece of legislation that starts our…

George Miller
Rep. George MillerD-CA-7 · Apr 20, 2005

Madam Chairman, I thank the gentleman for yielding me this time. This bill, first and foremost, should be rejected by this Congress, because it is very bad for the consumers, it is a very bad deal…

Judy Biggert
Rep. Judy BiggertR-IL-13 · Apr 20, 2005

Mr. Chairman, I claim the time on the majority side for the Committee on Science. Mr. Chairman, I yield myself 3 minutes. As chairman of the Science Subcommittee on Energy, I rise today in strong…

Bart Gordon
Rep. Bart GordonD-TN-6 · Apr 20, 2005

Mr. Chairman, I yield myself such time as I may consume. First I would like to thank the gentleman from New York (Mr. Boehlert), chairman of the Committee on Science, and the gentlewoman from…

Jay Inslee
Rep. Jay InsleeD-WA-1 · Apr 20, 2005

Madam Chairman, the best way that I can characterize this bill is that it is a Jurassic Park bill in that it is about dinosaurs, of dinosaurs, and in a sense by dinosaurs. It depends on the hope that…

Cliff Stearns
Rep. Cliff StearnsR-FL-6 · Apr 20, 2005

Mr. Chairman, here we go again. As I said, this is the third time, and it should be a charm. We have passed this comprehensive legislation before; and I know I speak for a lot of my colleagues,…

Jim McDermott
Rep. Jim McDermottD-WA-7 · Apr 20, 2005

Madam Chairman, Friday is Earth Day, but that will not stop the Republicans from passing legislation that will make the Earth dirtier, more polluted and warmer. The Republican legislation favors…

Bill Text

Latest available legislative text

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Latest
Introduced in HouseIssued March 10, 2005

I

109th CONGRESS

1st Session

H. R. 1212

IN THE HOUSE OF REPRESENTATIVES

March 10, 2005

Mr. Weller (for himself and Mr. Cardin) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to provide tax credits for making energy efficiency improvements to existing homes and for constructing new energy efficient homes.

1.

Short title

(a)

Short title

This Act may be cited as the Save America’s Valuable Energy Resources Act of 2005.

(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.

2.

Credit for energy efficiency improvements to existing homes

(a)

In general

Subpart A of part IV of subchapter A of chapter 1 (relating to nonrefundable personal credits) is amended by inserting after section 25B the following new section:

25C.

Energy efficiency improvements to existing homes

(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 an amount equal to 20 percent of the amount paid or incurred by the taxpayer for qualified energy efficiency improvements installed during such taxable year.

(b)

Limitations

(1)

Maximum credit

The credit allowed by this section with respect to a dwelling shall not exceed $2,000.

(2)

Prior credit amounts for taxpayer on same dwelling taken into account

If a credit was allowed to the taxpayer under subsection (a) with respect to a dwelling in 1 or more prior taxable years, the amount of the credit otherwise allowable for the taxable year with respect to that dwelling shall not exceed the amount of $2,000 reduced by the sum of the credits allowed under subsection (a) to the taxpayer with respect to the dwelling for all prior taxable years.

(3)

Limitation based on amount of tax

The credit allowed under subsection (a) for the taxable year shall not exceed the excess of—

(A)

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

(B)

the sum of the credits allowable under this subpart (other than this section and section 23) and section 27 for the taxable year.

(c)

Carryforward of unused credit

If the credit allowable under subsection (a) exceeds the limitation imposed by subsection (b)(3) for such taxable year, such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such succeeding taxable year.

(d)

Qualified energy efficiency improvements

For purposes of this section, the term qualified energy efficiency improvements means any energy efficient building envelope component which meets the prescriptive criteria for such component established by the 1998 International Energy Conservation Code, if—

(1)

such component is installed in or on a dwelling—

(A)

located in the United States, and

(B)

owned and used by the taxpayer as the taxpayer’s principal residence (within the meaning of section 121),

(2)

the original use of such component commences with the taxpayer, and

(3)

such component reasonably can be expected to remain in use for at least 5 years.

If the aggregate cost of such components with respect to any dwelling exceeds $1,000, such components shall be treated as qualified energy efficiency improvements only if such components are also certified in accordance with subsection (e) as meeting such criteria.
(e)

Certification

The certification described in subsection (d) shall be—

(1)

determined on the basis of the technical specifications or applicable ratings (including product labeling requirements) for the measurement of energy efficiency, based upon energy use or building envelope component performance, for the energy efficient building envelope component,

(2)

provided by a local building regulatory authority, a utility, a manufactured home production inspection primary inspection agency (IPIA), or an accredited home energy rating system provider who is accredited by or otherwise authorized to use approved energy performance measurement methods by the Mortgage Industry's Home Energy Rating System (as maintained by National Association of State Energy Officials and the Residential Energy Services Network), and

(3)

made in writing in a manner that specifies in readily verifiable fashion the energy efficient building envelope components installed and their respective energy efficiency levels.

(f)

Definitions and special rules

(1)

Tenant-stockholder in cooperative housing corporation

In the case of an individual who is a tenant-stockholder (as defined in section 216) in a cooperative housing corporation (as defined in such section), such individual shall be treated as having paid his tenant-stockholder’s proportionate share (as defined in section 216(b)(3)) of the cost of qualified energy efficiency improvements made by such corporation.

(2)

Condominiums

(A)

In general

In the case of an individual who is a member of a condominium management association with respect to a condominium which he owns, such individual shall be treated as having paid his proportionate share of the cost of qualified energy efficiency improvements made by such association.

(B)

Condominium management association

For purposes of this paragraph, the term condominium management association means an organization which meets the requirements of paragraph (1) of section 528(c) (other than subparagraph (E) thereof) with respect to a condominium project substantially all of the units of which are used as residences.

(3)

Building envelope component

The term building envelope component means insulation material or system which is specifically and primarily designed to reduce the heat loss or gain of a dwelling when installed in or on such dwelling, exterior windows (including skylights) and doors, and metal roofs with appropriate pigmented coatings which are specifically and primarily designed to reduce the heat gain of a dwelling when installed in or on such dwelling.

(4)

Manufactured homes included

For purposes of this section, the term dwelling includes a manufactured home which conforms to Federal Manufactured Home Construction and Safety Standards (24 CFR 3280).

(g)

Basis adjustment

For purposes of this subtitle, if a credit is allowed under this section for any expenditure with respect to any property, the increase in the basis of such property which would (but for this subsection) result from such expenditure shall be reduced by the amount of the credit so allowed.

(h)

Application of Section

This section shall apply to qualified energy efficiency improvements installed after December 31, 2004 and before January 1, 2010.

.

(b)

Conforming amendments

(1)

Subsection (a) of section 1016 is amended by striking and at the end of paragraph (30), by striking the period at the end of paragraph (31) and inserting , and, and by adding at the end the following new paragraph:

(32)

to the extent provided in section 25C(g), in the case of amounts with respect to which a credit has been allowed under section 25C.

.

(2)

The table of sections for subpart A of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 25B the following new item:

.

(c)

Effective date

The amendments made by this section shall apply to taxable years ending after December 31, 2004.

3.

Business credit for construction of new energy efficient home

(a)

In general

Subpart D of part IV of subchapter A of chapter 1 (relating to business related credits) is amended by inserting after section 45I the following new section:

45J.

New energy efficient home credit

(a)

In general

For purposes of section 38, in the case of an eligible contractor, the credit determined under this section for the taxable year is an amount equal to the aggregate adjusted bases of all energy efficient property installed in a qualified new energy efficient home during construction of such home.

(b)

Limitations

(1)

Maximum credit

(A)

In general

The credit allowed by this section with respect to a dwelling shall not exceed $2,000.

(B)

Prior credit amounts on same dwelling taken into account

If a credit was allowed under subsection (a) with respect to a dwelling in 1 or more prior taxable years, the amount of the credit otherwise allowable for the taxable year with respect to that dwelling shall not exceed the amount of $2,000 reduced by the sum of the credits allowed under subsection (a) with respect to the dwelling for all prior taxable years.

(2)

Coordination with rehabilitation and energy credits

For purposes of this section—

(A)

the basis of any property referred to in subsection (a) shall be reduced by that portion of the basis of any property which is attributable to qualified rehabilitation expenditures (as defined in section 47(c)(2)) or to the energy percentage of energy property (as determined under section 48(a)), and

(B)

expenditures taken into account under either section 47 or 48(a) shall not be taken into account under this section.

(c)

Definitions

For purposes of this section—

(1)

Eligible contractor

The term eligible contractor means the person who constructed the new energy efficient home, or in the case of a manufactured home which conforms to Federal Manufactured Home Construction and Safety Standards (24 CFR 3280), the manufactured home producer of such home.

(2)

Energy efficient property

The term energy efficient property means any energy efficient building envelope component, and any energy efficient heating or cooling appliance.

(3)

Qualified new energy efficient home

The term qualified new energy efficient home means a dwelling—

(A)

located in the United States,

(B)

the construction of which is substantially completed after December 31, 2004,

(C)

the original use of which is as a principal residence (within the meaning of section 121) which commences with the person who acquires such dwelling from the eligible contractor, and

(D)

which is certified to have a level of annual heating and cooling energy consumption that is at least 30 percent below the annual level of heating and cooling energy consumption of a comparable dwelling constructed in accordance with the standards of the 1998 International Energy Conservation Code and to have building envelope component improvements account for 1/3 of such 30 percent.

(4)

Construction

The term construction includes reconstruction and rehabilitation.

(5)

Acquire

The term acquire includes purchase and, in the case of reconstruction and rehabilitation, such term includes a binding written contract for such reconstruction or rehabilitation.

(6)

Building envelope component

The term building envelope component means insulation material or system which is specifically and primarily designed to reduce the heat loss or gain of a dwelling when installed in or on such dwelling, exterior windows (including skylights) and doors, and metal roofs with appropriate pigmented coatings which are specifically and primarily designed to reduce the heat gain of a dwelling when installed in or on such dwelling.

(7)

Manufactured home included

The term dwelling includes a manufactured home conforming to Federal Manufactured Home Construction and Safety Standards (24 CFR 3280).

(d)

Certification

(1)

Method

A certification described in subsection (c)(3)(D) shall be determined on the basis of one of the following methods:

(A)

The technical specifications or applicable ratings (including product labeling requirements) for the measurement of energy efficiency for the energy efficient building envelope component or energy efficient heating or cooling appliance, based upon energy use or building envelope component performance.

(B)

An energy performance measurement method that utilizes computer software approved by organizations designated by the Secretary.

(2)

Provider

Such certification shall be provided by—

(A)

in the case of a method described in paragraph (1)(A), a local building regulatory authority, a utility, a manufactured home production inspection primary inspection agency (IPIA), or an accredited home energy rating systems provider who is accredited by, or otherwise authorized to use, approved energy performance measurement methods by the Mortgage Industry's Home Energy Rating System (as maintained by National Association of State Energy Officials and the Residential Energy Services Network), or

(B)

in the case of a method described in paragraph (1)(B), an individual recognized by an organization designated by the Secretary for such purposes.

(3)

Form

Such certification shall be made in writing in a manner that specifies in readily verifiable fashion the energy efficient building envelope components and energy efficient heating or cooling appliances installed and their respective energy efficiency levels, and in the case of a method described in subparagraph (B) of paragraph (1), accompanied by written analysis documenting the proper application of a permissible energy performance measurement method to the specific circumstances of such dwelling.

(4)

Regulations

(A)

In general

In prescribing regulations under this subsection for energy performance measurement methods, the Secretary shall prescribe procedures for calculating annual energy costs for heating and cooling and cost savings and for the reporting of the results. Such regulations shall—

(i)

be based on the National Home Energy Rating Technical Guidelines of the National Association of State Energy Officials, the Mortgage Industry's Home Energy Rating System (as maintained by National Association of State Energy Officials and the Residential Energy Services Network), or the modified 1998 California Residential ACM manual,

(ii)

provide that any calculation procedures be developed such that the same energy efficiency measures allow a home to qualify for the credit under this section regardless of whether the house uses a gas or oil furnace or boiler or an electric heat pump, and

(iii)

require that any computer software allow for the printing of the Federal tax forms necessary for the credit under this section and explanations for the homebuyer of the energy efficient features that were used to comply with the requirements of this section.

(B)

Providers

For purposes of paragraph (2)(B), the Secretary shall establish requirements for the designation of individuals based on the requirements for energy consultants and home energy raters specified by the National Association of State Energy Officials.

(e)

Basis adjustment

For purposes of this subtitle, if a credit is allowed under this section for any expenditure with respect to any property, the increase in the basis of such property which would (but for this subsection) result from such expenditure shall be reduced by the amount of the credit so allowed.

(f)

Application of Section

Subsection (a) shall apply to dwellings purchased during the period beginning on January 1, 2005, and ending on December 31, 2009.

.

(b)

Credit made part of general business credit

Subsection (b) of section 38 (relating to current year business credit) is amended by striking plus at the end of paragraph (18), by striking the period at the end of paragraph (19) and inserting , plus, and by adding at the end thereof the following new paragraph:

(20)

the new energy efficient home credit determined under section 45J.

.

(c)

Denial of double benefit

Section 280C (relating to certain expenses for which credits are allowable) is amended by adding at the end thereof the following new subsection:

(e)

New energy efficient home expenses

No deduction shall be allowed for that portion of expenses for a new energy efficient home otherwise allowable as a deduction for the taxable year which is equal to the amount of the credit determined for such taxable year under section 45J.

.

(d)

Deduction for certain unused business credits

Subsection (c) of section 196 is amended by striking and at the end of paragraph (11), by striking the period at the end of paragraph (12) and inserting , and, and by adding after paragraph (12) the following new paragraph:

(13)

the new energy efficient home credit determined under section 45J.

.

(e)

Clerical 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 45I the following new item:

.

(f)

Effective date

The amendments made by this section shall apply to taxable years ending after December 31, 2004.

4.

Allowance of deduction for energy efficient commercial building property

(a)

In general

Part VI of subchapter B of chapter 1 (relating to itemized deductions for individuals and corporations) is amended by inserting after section 179B the following new section:

179C.

Deduction for energy efficient commercial building property

(a)

Allowance of deduction

(1)

In general

There shall be allowed as a deduction an amount equal to energy efficient commercial building property expenditures made by a taxpayer for the taxable year.

(2)

Maximum amount of deduction

The amount of energy efficient commercial building property expenditures taken into account under paragraph (1) shall not exceed an amount equal to the product of—

(A)

$2.25, and

(B)

the square footage of the building with respect to which the expenditures are made.

(3)

Year deduction allowed

The deduction under paragraph (1) shall be allowed for the taxable year in which the building is placed in service.

(b)

Energy efficient commercial building property expenditures

For purposes of this section, the term energy efficient commercial building property expenditures means an amount paid or incurred for energy efficient commercial building property installed on or in connection with new construction or reconstruction of property—

(1)

for which depreciation is allowable under section 167,

(2)

which is located in the United States, and

(3)

the construction or erection of which is completed by the taxpayer.

Such property includes all residential rental property, including low-rise multifamily structures and single family housing property which is not within the scope of Standard 90.1–1999 (described in subsection (c)). Such term includes expenditures for labor costs properly allocable to the onsite preparation, assembly, or original installation of the property.
(c)

Energy efficient commercial building property

For purposes of subsection (b)—

(1)

In general

The term energy efficient commercial building property means any property which reduces total annual energy and power costs with respect to the lighting, heating, cooling, ventilation, and hot water supply systems of the building by 50 percent or more in comparison to a reference building which meets the requirements of Standard 90.1–1999 of the American Society of Heating, Refrigerating, and Air Conditioning Engineers and the Illuminating Engineering Society of North America using methods of calculation under paragraph (2) and certified by qualified professionals as provided under subsection (f).

(2)

Methods of calculation

The Secretary, in consultation with the Secretary of Energy, shall promulgate regulations which describe in detail methods for calculating and verifying energy and power consumption and cost, taking into consideration the provisions of the 1998 California Nonresidential ACM Manual. These procedures shall meet the following requirements:

(A)

In calculating tradeoffs and energy performance, the regulations shall prescribe the costs per unit of energy and power, such as kilowatt hour, kilowatt, gallon of fuel oil, and cubic foot or Btu of natural gas, which may be dependent on time of usage.

(B)

The calculational methodology shall require that compliance be demonstrated for a whole building. If some systems of the building, such as lighting, are designed later than other systems of the building, the method shall provide that either—

(i)

the expenses taken into account under subsection (a) shall not occur until the date designs for all energy-using systems of the building are completed,

(ii)

the energy performance of all systems and components not yet designed shall be assumed to comply minimally with the requirements of such Standard 90.1–1999, or

(iii)

the expenses taken into account under subsection (a) shall be a fraction of such expenses based on the performance of less than all energy-using systems in accordance with subparagraph (C).

(C)

The expenditures in connection with the design of subsystems in the building, such as the envelope, the heating, ventilation, air conditioning and water heating system, and the lighting system shall be allocated to the appropriate building subsystem based on system-specific energy cost savings targets in regulations promulgated by the Secretary of Energy which are equivalent, using the calculation methodology, to the whole building requirement of 50 percent savings.

(D)

The calculational methods under this subparagraph need not comply fully with section 11 of such Standard 90.1–1999.

(E)

The calculational methods shall be fuel neutral, such that the same energy efficiency features shall qualify a building for the deduction under this subsection regardless of whether the heating source is a gas or oil furnace or an electric heat pump.

(F)

The calculational methods shall provide appropriate calculated energy savings for design methods and technologies not otherwise credited in either such Standard 90.1–1999 or in the 1998 California Nonresidential ACM Manual, including the following:

(i)

Natural ventilation.

(ii)

Evaporative cooling.

(iii)

Automatic lighting controls such as occupancy sensors, photocells, and timeclocks.

(iv)

Daylighting.

(v)

Designs utilizing semi-conditioned spaces that maintain adequate comfort conditions without air conditioning or without heating.

(vi)

Improved fan system efficiency, including reductions in static pressure.

(vii)

Advanced unloading mechanisms for mechanical cooling, such as multiple or variable speed compressors.

(viii)

The calculational methods may take into account the extent of commissioning in the building, and allow the taxpayer to take into account measured performance that exceeds typical performance.

(3)

Computer software

(A)

In general

Any calculation under this subsection shall be prepared by qualified computer software.

(B)

Qualified computer software

For purposes of this paragraph, the term qualified computer software means software—

(i)

for which the software designer has certified that the software meets all procedures and detailed methods for calculating energy and power consumption and costs as required by the Secretary,

(ii)

which provides such forms as required to be filed by the Secretary in connection with energy efficiency of property and the deduction allowed under this section, and

(iii)

which provides a notice form which summarizes the energy efficiency features of the building and its projected annual energy costs.

(d)

Allocation of deduction for public property

In the case of energy efficient commercial building property installed on or in public property, the Secretary shall promulgate a regulation to allow the allocation of the deduction to the person primarily responsible for designing the property in lieu of the public entity which is the owner of such property. Such person shall be treated as the taxpayer for purposes of this section.

(e)

Notice to owner

The qualified individual shall provide an explanation to the owner of the building regarding the energy efficiency features of the building and its projected annual energy costs as provided in the notice under subsection (c)(3)(B)(iii).

(f)

Certification

The Secretary, in consultation with the Secretary of Energy, shall establish requirements for certification and compliance procedures similar to the procedures under section 45J(d).

(g)

Basis reduction

For purposes of this title, the basis of any property shall be reduced by the amount of the deduction with respect to such property which is allowed by subsection (a).

(h)

Termination

This section shall not apply to property placed in service after December 31, 2009.

.

(b)

Conforming amendments

(1)

Section 1016(a) is amended by striking and at the end of paragraph (31), by striking the period at the end of paragraph (32) and inserting , and, and by inserting the following new paragraph:

(33)

to the extent provided in section 179C(g).

.

(2)

Section 1245(a) is amended by inserting 179C, after 179B, both places it appears in paragraphs (2)(C) and (3)(C).

(3)

Section 1250(b)(3) is amended by inserting before the period at the end of the first sentence or by section 179C.

(4)

Section 263(a)(1) is amended by striking or at the end of subparagraph (H), by striking the period at the end of subparagraph (I) and inserting , or, and by inserting after subparagraph (I) the following new subparagraph:

(J)

expenditures for which a deduction is allowed under section 179C.

.

(5)

Section 312(k)(3)(B) is amended by striking or 179B each place it appears in the heading and text and inserting , 179B, or 179C.

(c)

Clerical amendment

The table of sections for part VI of subchapter B of chapter 1 is amended by adding after section 179B the following new item:

.

(d)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2004.