II
109th CONGRESS
1st Session
S. 2105
IN THE SENATE OF THE UNITED STATES
December 15, 2005
Mr. Coleman introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to modify the credit for nonbusiness energy property so that the amount of the credit is determined based on the amount of energy savings achieved by the taxpayer.
Short title
This Act may be cited as
the Home Energy Savings Incentives Act
of 2005
.
Modification of credit for certain nonbusiness energy property
In general
Section 25C of the Internal Revenue Code of 1986 is amended to read as follows:
Nonbusiness energy property
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 the sum of—
$10 for each therm of certified natural gas savings attributable to qualified energy efficiency expenditures made during the taxable year, and
$0.65 for each kilowatt hour of certified electricity savings attributable to qualified energy efficiency expenditures made during the taxable year.
Lifetime limitation
The credit allowed under this section with respect to any taxpayer for any taxable year shall not exceed the excess (if any) of $5,000 over the aggregate credits allowed under this section with respect to such taxpayer for all prior taxable years.
Qualified energy efficiency expenditures
For purposes of this section—
In general
The term qualified energy efficiency expenditures means expenditures made by the taxpayer, after consultation with a qualified individual described in subsection (d)(2)(C), for the improvement of a dwelling unit of the taxpayer located in the United States and used by the taxpayer as the taxpayer’s principal residence.
No double benefit for certain expenditures
The term qualified energy efficiency expenditures shall not include any expenditure for which a deduction or credit is otherwise allowed under this chapter.
Principal residence
In general
The term principal residence has the same meaning as when used in section 121, except that—
no ownership requirement shall be imposed, and
the period for which a building is treated as used as a principal residence shall also include the 60-day period ending on the 1st day on which it would (but for this subparagraph) first be treated as used as a principal residence.
Manufactured housing
The term residence shall include a dwelling unit which is a manufactured home conforming to Federal Manufactured Home Construction and Safety Standards (24 C.F.R. 3280).
Certified natural gas savings; certified electricity savings
In general
Certified natural gas savings
The term certified natural gas savings means, with respect to any taxable year, the amount, measured in therms on an average annual basis, which is equal to the excess of—
85 percent of the amount of natural gas which would be consumed with respect to the dwelling unit of the taxpayer if the qualified energy efficiency expenditures with respect to such taxable year were not made, as certified in accordance with paragraph (2), over
the amount of such natural gas consumption with respect to such dwelling unit determined by taking into account the qualified energy efficiency expenditures made during such taxable year, as certified in accordance with paragraph (2).
Certified electricity savings
The term certified electricity savings means, with respect to any taxable year, the amount, measured in kilowatt hours on an annual basis, which is equal to the excess of—
85 percent of the amount of electricity which would be consumed with respect to the dwelling unit of the taxpayer if the qualified energy efficiency expenditures with respect to such taxable year were not made, as certified in accordance with paragraph (2), over
the amount of electricity consumption with respect to such dwelling unit determined by taking into account the qualified energy efficiency expenditures made during such taxable year, as certified in accordance with paragraph (2).
Certification
In general
The Secretary shall prescribe the manner and method for the making of certifications under this paragraph.
Procedures
The Secretary shall include as part of the certification process procedures for inspection and testing by qualified individuals described in subparagraph (C) to ensure compliance of dwelling units with the requirements of this section. Such procedures shall be similar to the requirements in the Mortgage Industry National Accreditation Procedures for Home Energy Rating Systems.
Qualified individuals
Individuals qualified to determine compliance shall be only those individuals who are recognized by an organization certified by the Secretary for such purposes.
Special rules
For purposes of this section, rules similar to the rules under paragraphs (4), (5), (6), (7), (8), and (9) of section 25D(e) shall apply.
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 subsection) result from such expenditure shall be reduced by the amount of the credit so allowed.
Termination
This section shall not apply with respect to any property placed in service after December 31, 2007.
.
Conforming amendment
Section 1016(a)(34) is amended by striking
25C(e)
and inserting section 25C(f)
.
Effective dates
The amendments made by this section shall apply to property placed in service after December 31, 2005.